H. R. 2419 

One Hundred Tenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Thursday, 

the third day of January, two thousand and eight 

An Act 

To provide for the continuation of agricultural programs through fiscal year 2012, 

and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Food, Conservation, and Energy Act of 2008’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act 

is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Secretary. 

TITLE I—COMMODITY PROGRAMS 

Sec. 1001. Definitions. 

Subtitle A—Direct Payments and Counter-Cyclical Payments 

Sec. 1101. Base acres. 

Sec. 1102. Payment yields. 

Sec. 1103. Availability of direct payments. 

Sec. 1104. Availability of counter-cyclical payments. 

Sec. 1105. Average crop revenue election program. 

Sec. 1106. Producer agreement required as condition of provision of payments. 

Sec. 1107. Planting flexibility. 

Sec. 1108. Special rule for long grain and medium grain rice. 

Sec. 1109. 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. Adjustments of loans. 

Subtitle C—Peanuts 

Sec. 1301. Definitions. 

Sec. 1302. Base acres for peanuts for a farm. 

Sec. 1303. Availability of direct payments for peanuts. 

Sec. 1304. Availability of counter-cyclical payments for peanuts. 

Sec. 1305. Producer agreement required as condition on provision of payments. 

Sec. 1306. Planting flexibility. 

Sec. 1307. Marketing assistance loans and loan deficiency payments for peanuts. 

Sec. 1308. Adjustments of loans. 

Subtitle D—Sugar 

Sec. 1401. Sugar program. 
H. R. 2419—2 

Sec. 1402. United States membership in the International Sugar Organization. 

Sec. 1403. Flexible marketing allotments for sugar. 

Sec. 1404. Storage facility loans. 

Sec. 1405. Commodity Credit Corporation storage payments. 

Subtitle E—Dairy 

Sec. 1501. Dairy product price support program. 

Sec. 1502. Dairy forward pricing program. 

Sec. 1503. Dairy export incentive program. 

Sec. 1504. Revision of Federal marketing order amendment procedures. 

Sec. 1505. Dairy indemnity program. 

Sec. 1506. Milk income loss contract program. 

Sec. 1507. Dairy promotion and research program. 

Sec. 1508. Report on Department of Agriculture reporting procedures for nonfat dry 

milk. 

Sec. 1509. Federal Milk Marketing Order Review Commission. 

Sec. 1510. Mandatory reporting of dairy commodities. 

Subtitle F—Administration 

Sec. 1601. Administration generally. 

Sec. 1602. Suspension of permanent price support authority. 

Sec. 1603. Payment limitations. 

Sec. 1604. Adjusted gross income limitation. 

Sec. 1605. Availability of quality incentive payments for covered oilseed producers. 

Sec. 1606. Personal liability of producers for deficiencies. 

Sec. 1607. Extension of existing administrative authority regarding loans. 

Sec. 1608. Assignment of payments. 

Sec. 1609. Tracking of benefits. 

Sec. 1610. Government publication of cotton price forecasts. 

Sec. 1611. Prevention of deceased individuals receiving payments under farm commodity programs. 

Sec. 1612. Hard white wheat development program. 

Sec. 1613. Durum wheat quality program. 

Sec. 1614. Storage facility loans. 

Sec. 1615. State, county, and area committees. 

Sec. 1616. Prohibition on charging certain fees. 

Sec. 1617. Signature authority. 

Sec. 1618. Modernization of Farm Service Agency. 

Sec. 1619. Information gathering. 

Sec. 1620. Leasing of office space. 

Sec. 1621. Geographically disadvantaged farmers and ranchers. 

Sec. 1622. Implementation. 

Sec. 1623. Repeals. 

TITLE II—CONSERVATION 

Subtitle A—Definitions and Highly Erodible Land and Wetland Conservation 

Sec. 2001. Definitions relating to conservation title of Food Security Act of 1985. 

Sec. 2002. Review of good faith determinations related to highly erodible land conservation. 

Sec. 2003. Review of good faith determinations related to wetland conservation. 

Subtitle B—Conservation Reserve Program 

Sec. 2101. Extension of conservation reserve program. 

Sec. 2102. Land eligible for enrollment in conservation reserve. 

Sec. 2103. Maximum enrollment of acreage in conservation reserve. 

Sec. 2104. Designation of conservation priority areas. 

Sec. 2105. Treatment of multi-year grasses and legumes. 

Sec. 2106. Revised pilot program for enrollment of wetland and buffer acreage in 

conservation reserve. 

Sec. 2107. Additional duty of participants under conservation reserve contracts. 

Sec. 2108. Managed haying, grazing, or other commercial use of forage on enrolled 

land and installation of wind turbines. 

Sec. 2109. Cost sharing payments relating to trees, windbreaks, shelterbelts, and 

wildlife corridors. 

Sec. 2110. Evaluation and acceptance of contract offers, annual rental payments, 

and payment limitations. 

Sec. 2111. Conservation reserve program transition incentives for beginning farmers or ranchers and socially disadvantaged farmers or ranchers. 

Subtitle C—Wetlands Reserve Program 

Sec. 2201. Establishment and purpose of wetlands reserve program. 
H. R. 2419—3 

Sec. 2202. Maximum enrollment and enrollment methods. 

Sec. 2203. Duration of wetlands reserve program and lands eligible for enrollment. 

Sec. 2204. Terms of wetlands reserve program easements. 

Sec. 2205. Compensation for easements under wetlands reserve program. 

Sec. 2206. Wetlands reserve enhancement program and reserved rights pilot program. 

Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve program. 

Sec. 2208. Payment limitations under wetlands reserve contracts and agreements. 

Sec. 2209. Repeal of payment limitations exception for State agreements for wetlands reserve enhancement. 

Sec. 2210. Report on implications of long-term nature of conservation easements. 

Subtitle D—Conservation Stewardship Program 

Sec. 2301. Conservation stewardship program. 

Subtitle E—Farmland Protection and Grassland Reserve 

Sec. 2401. Farmland protection program. 

Sec. 2402. Farm viability program. 

Sec. 2403. Grassland reserve program. 

Subtitle F—Environmental Quality Incentives Program 

Sec. 2501. Purposes of environmental quality incentives program. 

Sec. 2502. Definitions. 

Sec. 2503. Establishment and administration of environmental quality incentives 

program. 

Sec. 2504. Evaluation of applications. 

Sec. 2505. Duties of producers under environmental quality incentives program. 

Sec. 2506. Environmental quality incentives program plan. 

Sec. 2507. Duties of the Secretary. 

Sec. 2508. Limitation on environmental quality incentives program payments. 

Sec. 2509. Conservation innovation grants and payments. 

Sec. 2510. Agricultural water enhancement program. 

Subtitle G—Other Conservation Programs of the Food Security Act of 1985 

Sec. 2601. Conservation of private grazing land. 

Sec. 2602. Wildlife habitat incentive program. 

Sec. 2603. Grassroots source water protection program. 

Sec. 2604. Great Lakes Basin Program for soil erosion and sediment control. 

Sec. 2605. Chesapeake Bay watershed program. 

Sec. 2606. Voluntary public access and habitat incentive program. 

Subtitle H—Funding and Administration of Conservation Programs 

Sec. 2701. Funding of conservation programs under Food Security Act of 1985. 

Sec. 2702. Authority to accept contributions to support conservation programs. 

Sec. 2703. Regional equity and flexibility. 

Sec. 2704. Assistance to certain farmers and ranchers to improve their access to 

conservation programs. 

Sec. 2705. Report regarding enrollments and assistance under conservation programs. 

Sec. 2706. Delivery of conservation technical assistance. 

Sec. 2707. Cooperative conservation partnership initiative. 

Sec. 2708. Administrative requirements for conservation programs. 

Sec. 2709. Environmental services markets. 

Sec. 2710. Agriculture conservation experienced services program. 

Sec. 2711. Establishment of State technical committees and their responsibilities. 

Subtitle I—Conservation Programs Under Other Laws 

Sec. 2801. Agricultural management assistance program. 

Sec. 2802. Technical assistance under Soil Conservation and Domestic Allotment 

Act. 

Sec. 2803. Small watershed rehabilitation program. 

Sec. 2804. Amendments to Soil and Water Resources Conservation Act of 1977. 

Sec. 2805. Resource Conservation and Development Program. 

Sec. 2806. Use of funds in Basin Funds for salinity control activities upstream of 

Imperial Dam. 

Sec. 2807. Desert terminal lakes. 

Subtitle J—Miscellaneous Conservation Provisions 

Sec. 2901. High Plains water study. 

Sec. 2902. Naming of National Plant Materials Center at Beltsville, Maryland, in 

honor of Norman A. Berg. 
H. R. 2419—4 

Sec. 2903. Transition. 

Sec. 2904. Regulations. 

TITLE III—TRADE 

Subtitle A—Food for Peace Act 

Sec. 3001. Short title. 

Sec. 3002. United States policy. 

Sec. 3003. Food aid to developing countries. 

Sec. 3004. Trade and development assistance. 

Sec. 3005. Agreements regarding eligible countries and private entities. 

Sec. 3006. Use of local currency payments. 

Sec. 3007. General authority. 

Sec. 3008. Provision of agricultural commodities. 

Sec. 3009. Generation and use of currencies by private voluntary organizations and 

cooperatives. 

Sec. 3010. Levels of assistance. 

Sec. 3011. Food Aid Consultative Group. 

Sec. 3012. Administration. 

Sec. 3013. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods. 

Sec. 3014. General authorities and requirements. 

Sec. 3015. Definitions. 

Sec. 3016. Use of Commodity Credit Corporation. 

Sec. 3017. Administrative provisions. 

Sec. 3018. Consolidation and modification of annual reports regarding agricultural 

trade issues. 

Sec. 3019. Expiration of assistance. 

Sec. 3020. Authorization of appropriations. 

Sec. 3021. Minimum level of nonemergency food assistance. 

Sec. 3022. Coordination of foreign assistance programs. 

Sec. 3023. Micronutrient fortification programs. 

Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. 

Subtitle B—Agricultural Trade Act of 1978 and Related Statutes 

Sec. 3101. Export credit guarantee program. 

Sec. 3102. Market access program. 

Sec. 3103. Export enhancement program. 

Sec. 3104. Foreign market development cooperator program. 

Sec. 3105. Food for Progress Act of 1985. 

Sec. 3106. McGovern-Dole International Food for Education and Child Nutrition 

Program. 

Subtitle C—Miscellaneous 

Sec. 3201. Bill Emerson Humanitarian Trust. 

Sec. 3202. Global Crop Diversity Trust. 

Sec. 3203. Technical assistance for specialty crops. 

Sec. 3204. Emerging markets and facility guarantee loan program. 

Sec. 3205. Consultative Group to Eliminate the Use of Child Labor and Forced 

Labor in Imported Agricultural Products. 

Sec. 3206. Local and regional food aid procurement projects. 

Subtitle D—Softwood Lumber 

Sec. 3301. Softwood lumber. 

TITLE IV—NUTRITION 

Subtitle A—Food Stamp Program 

PART I—RENAMING OF FOOD STAMP ACT AND PROGRAM

Sec. 4001. Renaming of Food Stamp Act and program. 

Sec. 4002. Conforming amendments. 

PART II—BENEFIT IMPROVEMENTS

Sec. 4101. Exclusion of certain military payments from income. 

Sec. 4102. Strengthening the food purchasing power of low-income Americans. 

Sec. 4103. Supporting working families with child care expenses. 

Sec. 4104. Asset indexation, education, and retirement accounts. 

Sec. 4105. Facilitating simplified reporting. 

Sec. 4106. Transitional benefits option. 

Sec. 4107. Increasing the minimum benefit. 
H. R. 2419—5 

Sec. 4108. Employment, training, and job retention. 

PART III—PROGRAM OPERATIONS

Sec. 4111. Nutrition education. 

Sec. 4112. Technical clarification regarding eligibility. 

Sec. 4113. Clarification of split issuance. 

Sec. 4114. Accrual of benefits. 

Sec. 4115. Issuance and use of program benefits. 

Sec. 4116. Review of major changes in program design. 

Sec. 4117. Civil rights compliance. 

Sec. 4118. Codification of access rules. 

Sec. 4119. State option for telephonic signature. 

Sec. 4120. Privacy protections. 

Sec. 4121. Preservation of access and payment accuracy. 

Sec. 4122. Funding of employment and training programs. 

PART IV—PROGRAM INTEGRITY

Sec. 4131. Eligibility disqualification. 

Sec. 4132. Civil penalties and disqualification of retail food stores and wholesale 

food concerns. 

Sec. 4133. Major systems failures. 

PART V—MISCELLANEOUS

Sec. 4141. Pilot projects to evaluate health and nutrition promotion in the supplemental nutrition assistance program. 

Sec. 4142. Study on comparable access to supplemental nutrition assistance for 

Puerto Rico. 

Subtitle B—Food Distribution Programs 

PART I—EMERGENCY FOOD ASSISTANCE PROGRAM

Sec. 4201. Emergency food assistance. 

Sec. 4202. Emergency food program infrastructure grants. 

PART II—FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS

Sec. 4211. Assessing the nutritional value of the FDPIR food package. 

PART III—COMMODITY SUPPLEMENTAL FOOD PROGRAM

Sec. 4221. Commodity supplemental food program. 

PART IV—SENIOR FARMERS’ MARKET NUTRITION PROGRAM

Sec. 4231. Seniors farmers’ market nutrition program. 

Subtitle C—Child Nutrition and Related Programs 

Sec. 4301. State performance on enrolling children receiving program benefits for 

free school meals. 

Sec. 4302. Purchases of locally produced foods. 

Sec. 4303. Healthy food education and program replicability. 

Sec. 4304. Fresh fruit and vegetable program. 

Sec. 4305. Whole grain products. 

Sec. 4306. Buy American requirements. 

Sec. 4307. Survey of foods purchased by school food authorities. 

Subtitle D—Miscellaneous 

Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland International 

Hunger Fellows. 

Sec. 4402. Assistance for community food projects. 

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

Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and nuts to support 

domestic nutrition assistance programs. 

Sec. 4405. Hunger-free communities. 

Sec. 4406. Reauthorization of Federal food assistance programs. 

Sec. 4407. Effective and implementation dates. 

TITLE V—CREDIT 

Subtitle A—Farm Ownership Loans 

Sec. 5001. Direct loans. 

Sec. 5002. Conservation loan and loan guarantee program. 

Sec. 5003. Limitations on amount of farm ownership loans. 
H. R. 2419—6 

Sec. 5004. Down payment loan program. 

Sec. 5005. Beginning farmer or rancher and socially disadvantaged farmer or 

rancher contract land sales program. 

Subtitle B—Operating Loans 

Sec. 5101. Farming experience as eligibility requirement. 

Sec. 5102. Limitations on amount of operating loans. 

Sec. 5103. Suspension of limitation on period for which borrowers are eligible for 

guaranteed assistance. 

Subtitle C—Emergency Loans 

Sec. 5201. Eligibility of equine farmers and ranchers for emergency loans. 

Subtitle D—Administrative Provisions 

Sec. 5301. Beginning farmer and rancher individual development accounts pilot 

program. 

Sec. 5302. Inventory sales preferences; loan fund set-asides. 

Sec. 5303. Loan authorization levels. 

Sec. 5304. Transition to private commercial or other sources of credit. 

Sec. 5305. Extension of the right of first refusal to reacquire homestead property 

to immediate family members of borrower-owner. 

Sec. 5306. Rural development and farm loan program activities. 

Subtitle E—Farm Credit 

Sec. 5401. Farm Credit System Insurance Corporation. 

Sec. 5402. Technical correction. 

Sec. 5403. Bank for cooperatives voting stock. 

Sec. 5404. Premiums. 

Sec. 5405. Certification of premiums. 

Sec. 5406. Rural utility loans. 

Sec. 5407. Equalization of loan-making powers of certain district associations. 

Subtitle F—Miscellaneous 

Sec. 5501. Loans to purchasers of highly fractioned land. 

TITLE VI—RURAL DEVELOPMENT 

Subtitle A—Consolidated Farm and Rural Development Act 

Sec. 6001. Water, waste disposal, and wastewater facility grants. 

Sec. 6002. SEARCH grants. 

Sec. 6003. Rural business opportunity grants. 

Sec. 6004. Child day care facility grants, loans, and loan guarantees. 

Sec. 6005. Community facility grants to advance broadband. 

Sec. 6006. Rural water and wastewater circuit rider program. 

Sec. 6007. Tribal College and University essential community facilities. 

Sec. 6008. Emergency and imminent community water assistance grant program. 

Sec. 6009. Water systems for rural and native villages in Alaska. 

Sec. 6010. 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. 6011. Interest rates for water and waste disposal facilities loans. 

Sec. 6012. Cooperative equity security guarantee. 

Sec. 6013. Rural cooperative development grants. 

Sec. 6014. Grants to broadcasting systems. 

Sec. 6015. Locally or regionally produced agricultural food products. 

Sec. 6016. Appropriate technology transfer for rural areas. 

Sec. 6017. Rural economic area partnership zones. 

Sec. 6018. Definitions. 

Sec. 6019. National rural development partnership. 

Sec. 6020. Historic barn preservation. 

Sec. 6021. Grants for NOAA weather radio transmitters. 

Sec. 6022. Rural microentrepreneur assistance program. 

Sec. 6023. Grants for expansion of employment opportunities for individuals with 

disabilities in rural areas. 

Sec. 6024. Health care services. 

Sec. 6025. Delta Regional Authority. 

Sec. 6026. Northern Great Plains Regional Authority. 

Sec. 6027. Rural Business Investment Program. 

Sec. 6028. Rural Collaborative Investment Program. 

Sec. 6029. Funding of pending rural development loan and grant applications. 
H. R. 2419—7 

Subtitle B—Rural Electrification Act of 1936 

Sec. 6101. Energy efficiency programs. 

Sec. 6102. Reinstatement of Rural Utility Services direct lending. 

Sec. 6103. Deferment of payments to allows loans for improved energy efficiency 

and demand reduction and for energy efficiency and use audits. 

Sec. 6104. Rural electrification assistance. 

Sec. 6105. Substantially underserved trust areas. 

Sec. 6106. Guarantees for bonds and notes issued for electrification or telephone 

purposes. 

Sec. 6107. Expansion of 911 access. 

Sec. 6108. Electric loans for renewable energy. 

Sec. 6109. Bonding requirements. 

Sec. 6110. Access to broadband telecommunications services in rural areas. 

Sec. 6111. National Center for Rural Telecommunications Assessment. 

Sec. 6112. Comprehensive rural broadband strategy. 

Sec. 6113. Study on rural electric power generation. 

Subtitle C—Miscellaneous 

Sec. 6201. Distance learning and telemedicine. 

Sec. 6202. Value-added agricultural market development program grants. 

Sec. 6203. Agriculture innovation center demonstration program. 

Sec. 6204. Rural firefighters and emergency medical service assistance program. 

Sec. 6205. Insurance of loans for housing and related facilities for domestic farm 

labor. 

Sec. 6206. Study of rural transportation issues. 

Subtitle D—Housing Assistance Council 

Sec. 6301. Short title. 

Sec. 6302. Assistance to Housing Assistance Council. 

Sec. 6303. Audits and reports. 

Sec. 6304. Persons not lawfully present in the United States. 

Sec. 6305. Limitation on use of authorized amounts. 

TITLE VII—RESEARCH AND RELATED MATTERS 

Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of 

1977 

Sec. 7101. Definitions. 

Sec. 7102. National Agricultural Research, Extension, Education, and Economics 

Advisory Board. 

Sec. 7103. Specialty crop committee report. 

Sec. 7104. Renewable energy committee. 

Sec. 7105. Veterinary medicine loan repayment. 

Sec. 7106. Eligibility of University of the District of Columbia for grants and fellowships for food and agricultural sciences education. 

Sec. 7107. Grants to 1890 schools to expand extension capacity. 

Sec. 7108. Expansion of food and agricultural sciences awards. 

Sec. 7109. Grants and fellowships for food and agricultural sciences education. 

Sec. 7110. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products. 

Sec. 7111. Policy research centers. 

Sec. 7112. Education grants to Alaska Native-serving institutions and Native Hawaiian-serving institutions. 

Sec. 7113. Emphasis of human nutrition initiative. 

Sec. 7114. Human nutrition intervention and health promotion research program. 

Sec. 7115. Pilot research program to combine medical and agricultural research. 

Sec. 7116. Nutrition education program. 

Sec. 7117. Continuing animal health and disease research programs. 

Sec. 7118. Cooperation among eligible institutions. 

Sec. 7119. Appropriations for research on national or regional problems. 

Sec. 7120. Animal health and disease research program. 

Sec. 7121. Authorization level for extension at 1890 land-grant colleges. 

Sec. 7122. Authorization level for agricultural research at 1890 land-grant colleges. 

Sec. 7123. Grants to upgrade agricultural and food sciences facilities at 1890 landgrant colleges, including Tuskegee University. 

Sec. 7124. Grants to upgrade agriculture and food sciences facilities at the District 

of Columbia land-grant university. 

Sec. 7125. Grants to upgrade agriculture and food sciences facilities and equipment 

at insular area land-grant institutions. 

Sec. 7126. National research and training virtual centers. 
H. R. 2419—8 

Sec. 7127. Matching funds requirement for research and extension activities of 

1890 institutions. 

Sec. 7128. Hispanic-serving institutions. 

Sec. 7129. Hispanic-serving agricultural colleges and universities. 

Sec. 7130. International agricultural research, extension, and education. 

Sec. 7131. Competitive grants for international agricultural science and education 

programs. 

Sec. 7132. Administration. 

Sec. 7133. Research equipment grants. 

Sec. 7134. University research. 

Sec. 7135. Extension Service. 

Sec. 7136. Supplemental and alternative crops. 

Sec. 7137. New Era Rural Technology Program. 

Sec. 7138. Capacity building grants for NLGCA Institutions. 

Sec. 7139. Borlaug international agricultural science and technology fellowship program. 

Sec. 7140. Aquaculture assistance programs. 

Sec. 7141. Rangeland research grants. 

Sec. 7142. Special authorization for biosecurity planning and response. 

Sec. 7143. Resident instruction and distance education grants program for insular 

area institutions of higher education. 

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

Sec. 7201. National genetics resources program. 

Sec. 7202. National Agricultural Weather Information System. 

Sec. 7203. Partnerships. 

Sec. 7204. High-priority research and extension areas. 

Sec. 7205. Nutrient management research and extension initiative. 

Sec. 7206. Organic Agriculture Research and Extension Initiative. 

Sec. 7207. Agricultural bioenergy feedstock and energy efficiency research and extension initiative. 

Sec. 7208. Farm business management and benchmarking. 

Sec. 7209. Agricultural telecommunications program. 

Sec. 7210. Assistive technology program for farmers with disabilities. 

Sec. 7211. Research on honey bee diseases. 

Sec. 7212. National Rural Information Center Clearinghouse. 

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998 

Sec. 7301. Peer and merit review. 

Sec. 7302. Partnerships for high-value agricultural product quality research. 

Sec. 7303. Precision agriculture. 

Sec. 7304. Biobased products. 

Sec. 7305. Thomas Jefferson Initiative for Crop Diversification. 

Sec. 7306. Integrated research, education, and extension competitive grants program. 

Sec. 7307. Fusarium graminearum grants. 

Sec. 7308. Bovine Johne’s disease control program. 

Sec. 7309. Grants for youth organizations. 

Sec. 7310. Agricultural biotechnology research and development for developing 

countries. 

Sec. 7311. Specialty crop research initiative. 

Sec. 7312. Food animal residue avoidance database program. 

Sec. 7313. Office of pest management policy. 

Subtitle D—Other Laws 

Sec. 7401. Critical Agricultural Materials Act. 

Sec. 7402. Equity in Educational Land-Grant Status Act of 1994. 

Sec. 7403. Smith-Lever Act. 

Sec. 7404. Hatch Act of 1887. 

Sec. 7405. Agricultural Experiment Station Research Facilities Act. 

Sec. 7406. Agriculture and food research initiative. 

Sec. 7407. Agricultural Risk Protection Act of 2000. 

Sec. 7408. Exchange or sale authority. 

Sec. 7409. Enhanced use lease authority pilot program. 

Sec. 7410. Beginning farmer and rancher development program. 

Sec. 7411. Public education regarding use of biotechnology in producing food for 

human consumption. 

Sec. 7412. McIntire-Stennis Cooperative Forestry Act. 

Sec. 7413. Renewable Resources Extension Act of 1978. 

Sec. 7414. National Aquaculture Act of 1980. 

Sec. 7415. Construction of Chinese Garden at the National Arboretum. 
H. R. 2419—9 

Sec. 7416. National Agricultural Research, Extension, and Teaching Policy Act 

Amendments of 1985. 

Sec. 7417. Eligibility of University of the District of Columbia for certain landgrant university assistance. 

Subtitle E—Miscellaneous 

PART I—GENERAL PROVISIONS

Sec. 7501. Definitions. 

Sec. 7502. Grazinglands research laboratory. 

Sec. 7503. Fort Reno Science Park Research Facility. 

Sec. 7504. Roadmap. 

Sec. 7505. Review of plan of work requirements. 

Sec. 7506. Budget submission and funding. 

PART II—RESEARCH, EDUCATION, AND ECONOMICS

Sec. 7511. Research, education, and economics. 

PART III—NEW GRANT AND RESEARCH PROGRAMS

Sec. 7521. Research and education grants for the study of antibiotic-resistant bacteria. 

Sec. 7522. Farm and ranch stress assistance network. 

Sec. 7523. Seed distribution. 

Sec. 7524. Live virus foot and mouth disease research. 

Sec. 7525. Natural products research program. 

Sec. 7526. Sun grant program. 

Sec. 7527. Study and report on food deserts. 

Sec. 7528. Demonstration project authority for temporary positions. 

Sec. 7529. Agricultural and rural transportation research and education. 

TITLE VIII—FORESTRY 

Subtitle A—Amendments to 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. Community forest and open space conservation program. 

Sec. 8004. Assistance to the Federated States of Micronesia, the Republic of the 

Marshall Islands, and the Republic of Palau. 

Sec. 8005. Changes to Forest Resource Coordinating Committee. 

Sec. 8006. Changes to State Forest Stewardship Coordinating Committees. 

Sec. 8007. Competition in programs under Cooperative Forestry Assistance Act of 

1978. 

Sec. 8008. Competitive allocation of funds for cooperative forest innovation partnership projects. 

Subtitle B—Cultural and Heritage Cooperation Authority 

Sec. 8101. Purposes. 

Sec. 8102. Definitions. 

Sec. 8103. Reburial of human remains and cultural items. 

Sec. 8104. Temporary closure for traditional and cultural purposes. 

Sec. 8105. Forest products for traditional and cultural purposes. 

Sec. 8106. Prohibition on disclosure. 

Sec. 8107. Severability and savings provisions. 

Subtitle C—Amendments to Other Forestry-Related Laws 

Sec. 8201. Rural revitalization technologies. 

Sec. 8202. Office of International Forestry. 

Sec. 8203. Emergency forest restoration program. 

Sec. 8204. Prevention of illegal logging practices. 

Sec. 8205. Healthy forests reserve program. 

Subtitle D—Boundary Adjustments and Land Conveyance Provisions 

Sec. 8301. Green Mountain National Forest boundary adjustment. 

Sec. 8302. Land conveyances, Chihuahuan Desert Nature Park, New Mexico, and 

George Washington National Forest, Virginia. 

Sec. 8303. Sale and exchange of National Forest System land, Vermont. 

Subtitle E—Miscellaneous Provisions 

Sec. 8401. Qualifying timber contract options. 

Sec. 8402. Hispanic-serving institution agricultural land national resources leadership program. 
H. R. 2419—10 

TITLE IX—ENERGY 

Sec. 9001. Energy. 

Sec. 9002. Biofuels infrastructure study. 

Sec. 9003. Renewable fertilizer study. 

TITLE X—HORTICULTURE AND ORGANIC AGRICULTURE 

Sec. 10001. Definitions. 

Subtitle A—Horticulture Marketing and Information 

Sec. 10101. Independent evaluation of Department of Agriculture commodity purchase process. 

Sec. 10102. Quality requirements for clementines. 

Sec. 10103. Inclusion of specialty crops in census of agriculture. 

Sec. 10104. Mushroom promotion, research, and consumer information. 

Sec. 10105. Food safety education initiatives. 

Sec. 10106. Farmers’ market promotion program. 

Sec. 10107. Specialty crops market news allocation. 

Sec. 10108. Expedited marketing order for Hass avocados for grades and standards 

and other purposes. 

Sec. 10109. Specialty crop block grants. 

Subtitle B—Pest and Disease Management 

Sec. 10201. Plant pest and disease management and disaster prevention. 

Sec. 10202. National Clean Plant Network. 

Sec. 10203. Plant protection. 

Sec. 10204. Regulations to improve management and oversight of certain regulated 

articles. 

Sec. 10205. Pest and Disease Revolving Loan Fund. 

Sec. 10206. Cooperative agreements relating to plant pest and disease prevention 

activities. 

Subtitle C—Organic Agriculture 

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

Sec. 10302. Organic production and market data initiatives. 

Sec. 10303. National Organic Program. 

Subtitle D—Miscellaneous 

Sec. 10401. National Honey Board. 

Sec. 10402. Identification of honey. 

Sec. 10403. Grant program to improve movement of specialty crops. 

Sec. 10404. Market loss assistance for asparagus producers. 

TITLE XI—LIVESTOCK 

Sec. 11001. Livestock mandatory reporting. 

Sec. 11002. Country of origin labeling. 

Sec. 11003. Agricultural Fair Practices Act of 1967 definitions. 

Sec. 11004. Annual report. 

Sec. 11005. Production contracts. 

Sec. 11006. Regulations. 

Sec. 11007. Sense of Congress regarding pseudorabies eradication program. 

Sec. 11008. Sense of Congress regarding the cattle fever tick eradication program. 

Sec. 11009. National Sheep Industry Improvement Center. 

Sec. 11010. Trichinae certification program. 

Sec. 11011. Low pathogenic diseases. 

Sec. 11012. Animal protection. 

Sec. 11013. National Aquatic Animal Health Plan. 

Sec. 11014. Study on bioenergy operations. 

Sec. 11015. Interstate shipment of meat and poultry inspected by Federal and 

State agencies for certain small establishments. 

Sec. 11016. Inspection and grading. 

Sec. 11017. Food safety improvement. 

TITLE XII—CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS 

Subtitle A—Crop Insurance and Disaster Assistance 

Sec. 12001. Definition of organic crop. 

Sec. 12002. General powers. 

Sec. 12003. Reduction in loss ratio. 

Sec. 12004. Premiums adjustments. 

Sec. 12005. Controlled business insurance. 
H. R. 2419—11 

Sec. 12006. Administrative fee. 

Sec. 12007. Time for payment. 

Sec. 12008. Catastrophic coverage reimbursement rate. 

Sec. 12009. Grain sorghum price election. 

Sec. 12010. Premium reduction authority. 

Sec. 12011. Enterprise and whole farm units. 

Sec. 12012. Payment of portion of premium for area revenue plans. 

Sec. 12013. Denial of claims. 

Sec. 12014. Settlement of crop insurance claims on farm-stored production. 

Sec. 12015. Time for reimbursement. 

Sec. 12016. Reimbursement rate. 

Sec. 12017. Renegotiation of Standard Reinsurance Agreement. 

Sec. 12018. Change in due date for Corporation payments for underwriting gains. 

Sec. 12019. Malting barley. 

Sec. 12020. Crop production on native sod. 

Sec. 12021. Information management. 

Sec. 12022. Research and development. 

Sec. 12023. Contracts for additional policies and studies. 

Sec. 12024. Funding from insurance fund. 

Sec. 12025. Pilot programs. 

Sec. 12026. Risk management education for beginning farmers or ranchers. 

Sec. 12027. Coverage for aquaculture under noninsured crop assistance program. 

Sec. 12028. Increase in service fees for noninsured crop assistance program. 

Sec. 12029. Determination of certain sweet potato production. 

Sec. 12030. Declining yield report. 

Sec. 12031. Definition of basic unit. 

Sec. 12032. Crop insurance mediation. 

Sec. 12033. Supplemental agricultural disaster assistance. 

Sec. 12034. Fisheries disaster assistance. 

Subtitle B—Small Business Disaster Loan Program 

Sec. 12051. Short title. 

Sec. 12052. Definitions. 

PART I—DISASTER PLANNING AND RESPONSE

Sec. 12061. Economic injury disaster loans to nonprofits. 

Sec. 12062. Coordination of disaster assistance programs with FEMA. 

Sec. 12063. Public awareness of disaster declaration and application periods. 

Sec. 12064. Consistency between administration regulations and standard operating procedures. 

Sec. 12065. Increasing collateral requirements. 

Sec. 12066. Processing disaster loans. 

Sec. 12067. Information tracking and follow-up system. 

Sec. 12068. Increased deferment period. 

Sec. 12069. Disaster processing redundancy. 

Sec. 12070. Net earnings clauses prohibited. 

Sec. 12071. Economic injury disaster loans in cases of ice storms and blizzards. 

Sec. 12072. Development and implementation of major disaster response plan. 

Sec. 12073. Disaster planning responsibilities. 

Sec. 12074. Assignment of employees of the office of disaster assistance and disaster cadre. 

Sec. 12075. Comprehensive disaster response plan. 

Sec. 12076. Plans to secure sufficient office space. 

Sec. 12077. Applicants that have become a major source of employment due to 

changed economic circumstances. 

Sec. 12078. Disaster loan amounts. 

Sec. 12079. Small business bonding threshold. 

PART II—DISASTER LENDING

Sec. 12081. Eligibility for additional disaster assistance. 

Sec. 12082. Additional economic injury disaster loan assistance. 

Sec. 12083. Private disaster loans. 

Sec. 12084. Immediate Disaster Assistance program. 

Sec. 12085. Expedited disaster assistance loan program. 

Sec. 12086. Gulf Coast Disaster Loan Refinancing Program. 

PART III—MISCELLANEOUS

Sec. 12091. Reports on disaster assistance. 

TITLE XIII—COMMODITY FUTURES 

Sec. 13001. Short title. 
H. R. 2419—12 

Subtitle A—General Provisions 

Sec. 13101. Commission authority over agreements, contracts or transactions in 

foreign currency. 

Sec. 13102. Anti-fraud authority over principal-to-principal transactions. 

Sec. 13103. Criminal and civil penalties. 

Sec. 13104. Authorization of appropriations. 

Sec. 13105. Technical and conforming amendments. 

Sec. 13106. Portfolio margining and security index issues. 

Subtitle B—Significant Price Discovery Contracts on Exempt Commercial Markets 

Sec. 13201. Significant price discovery contracts. 

Sec. 13202. Large trader reporting. 

Sec. 13203. Conforming amendments. 

Sec. 13204. Effective date. 

TITLE XIV—MISCELLANEOUS 

Subtitle A—Socially Disadvantaged Producers and Limited Resource Producers 

Sec. 14001. Improved program delivery by Department of Agriculture on Indian 

reservations. 

Sec. 14002. Foreclosure. 

Sec. 14003. Receipt for service or denial of service from certain Department of Agriculture agencies. 

Sec. 14004. Outreach and technical assistance for socially disadvantaged farmers or 

ranchers. 

Sec. 14005. Accurate documentation in the Census of Agriculture and certain studies. 

Sec. 14006. Transparency and accountability for socially disadvantaged farmers or 

ranchers. 

Sec. 14007. Oversight and compliance. 

Sec. 14008. Minority Farmer Advisory Committee. 

Sec. 14009. National Appeals Division. 

Sec. 14010. Report of civil rights complaints, resolutions, and actions. 

Sec. 14011. Sense of Congress relating to claims brought by socially disadvantaged 

farmers or ranchers. 

Sec. 14012. Determination on merits of Pigford claims. 

Sec. 14013. Office of Advocacy and Outreach. 

Subtitle B—Agricultural Security 

Sec. 14101. Short title. 

Sec. 14102. Definitions. 

CHAPTER 1—AGRICULTURAL SECURITY

Sec. 14111. Office of Homeland Security. 

Sec. 14112. Agricultural biosecurity communication center. 

Sec. 14113. Assistance to build local capacity in agricultural biosecurity planning, 

preparedness, and response. 

CHAPTER 2—OTHER PROVISIONS

Sec. 14121. Research and development of agricultural countermeasures. 

Sec. 14122. Agricultural biosecurity grant program. 

Subtitle C—Other Miscellaneous Provisions 

Sec. 14201. Cotton classification services. 

Sec. 14202. Designation of States for cotton research and promotion. 

Sec. 14203. Grants to reduce production of methamphetamines from anhydrous ammonia. 

Sec. 14204. Grants to improve supply, stability, safety, and training of agricultural 

labor force. 

Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978. 

Sec. 14206. Report on stored quantities of propane. 

Sec. 14207. Prohibitions on dog fighting ventures. 

Sec. 14208. Department of Agriculture conference transparency. 

Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act amendments. 

Sec. 14210. Importation of live dogs. 

Sec. 14211. Permanent debarment from participation in Department of Agriculture 

programs for fraud. 

Sec. 14212. Prohibition on closure or relocation of county offices for the Farm Service Agency. 

Sec. 14213. USDA Graduate School. 
H. R. 2419—13 

Sec. 14214. Fines for violations of the Animal Welfare Act. 

Sec. 14215. Definition of central filing system. 

Sec. 14216. Consideration of proposed recommendations of study on use of cats and 

dogs in Federal research. 

Sec. 14217. Regional economic and infrastructure development. 

Sec. 14218. Coordinator for chronically underserved rural areas. 

Sec. 14219. Elimination of statute of limitations applicable to collection of debt by 

administrative offset. 

Sec. 14220. Availability of excess and surplus computers in rural areas. 

Sec. 14221. Repeal of section 3068 of the Water Resources Development Act of 

2007. 

Sec. 14222. Domestic food assistance programs. 

Sec. 14223. Technical correction. 

TITLE XV—TRADE AND TAX PROVISIONS 

Sec. 15001. Short title; etc. 

Subtitle A—Supplemental Agricultural Disaster Assistance From the Agricultural 

Disaster Relief Trust Fund 

Sec. 15101. Supplemental agricultural disaster assistance. 

Subtitle B—Revenue Provisions for Agriculture Programs 

Sec. 15201. Customs User Fees. 

Sec. 15202. Time for payment of corporate estimated taxes. 

Subtitle C—Tax Provisions 

PART I—CONSERVATION

SUBPART A—LAND AND SPECIES PRESERVATION PROVISIONS

Sec. 15301. Exclusion of conservation reserve program payments from SECA tax 

for certain individuals. 

Sec. 15302. Two-year extension of special rule encouraging contributions of capital 

gain real property for conservation purposes. 

Sec. 15303. Deduction for endangered species recovery expenditures. 

SUBPART B—TIMBER PROVISIONS

Sec. 15311. Temporary reduction in rate of tax on qualified timber gain of corporations. 

Sec. 15312. Timber REIT modernization. 

Sec. 15313. Mineral royalty income qualifying income for timber REITs. 

Sec. 15314. Modification of taxable REIT subsidiary asset test for timber REITs. 

Sec. 15315. Safe harbor for timber property. 

Sec. 15316. Qualified forestry conservation bonds. 

PART II—ENERGY PROVISIONS

SUBPART A—CELLULOSIC BIOFUEL

Sec. 15321. Credit for production of cellulosic biofuel. 

Sec. 15322. Comprehensive study of biofuels. 

SUBPART B—REVENUE PROVISIONS

Sec. 15331. Modification of alcohol credit. 

Sec. 15332. Calculation of volume of alcohol for fuel credits. 

Sec. 15333. Ethanol tariff extension. 

Sec. 15334. Limitations on duty drawback on certain imported ethanol. 

PART III—AGRICULTURAL PROVISIONS

Sec. 15341. Increase in loan limits on agricultural bonds. 

Sec. 15342. Allowance of section 1031 treatment for exchanges involving certain 

mutual ditch, reservoir, or irrigation company stock. 

Sec. 15343. Agricultural chemicals security credit. 

Sec. 15344. 3-year depreciation for race horses that are 2-years old or younger. 

Sec. 15345. Temporary tax relief for Kiowa County, Kansas and surrounding area. 

Sec. 15346. Competitive certification awards modification authority. 

PART IV—OTHER REVENUE PROVISIONS

Sec. 15351. Limitation on excess farm losses of certain taxpayers. 

Sec. 15352. Modification to optional method of computing net earnings from selfemployment. 
H. R. 2419—14 

Sec. 15353. Information reporting for Commodity Credit Corporation transactions. 

PART V—PROTECTION OF SOCIAL SECURITY

Sec. 15361. Protection of social security. 

Subtitle D—Trade Provisions 

PART I—EXTENSION OF CERTAIN TRADE BENEFITS

Sec. 15401. Short title. 

Sec. 15402. Benefits for apparel and other textile articles. 

Sec. 15403. Labor Ombudsman and technical assistance improvement and compliance needs assessment and remediation program. 

Sec. 15404. Petition process. 

Sec. 15405. Conditions regarding enforcement of circumvention. 

Sec. 15406. Presidential proclamation authority. 

Sec. 15407. Regulations and procedures. 

Sec. 15408. Extension of CBTPA. 

Sec. 15409. Sense of Congress on interpretation of textile and apparel provisions 

for Haiti. 

Sec. 15410. Sense of Congress on trade mission to Haiti. 

Sec. 15411. Sense of Congress on visa systems. 

Sec. 15412. Effective date. 

PART II—MISCELLANEOUS TRADE PROVISIONS

Sec. 15421. Unused merchandise drawback. 

Sec. 15422. Requirements relating to determination of transaction value of imported merchandise. 

SEC. 2. DEFINITION OF SECRETARY. 

In this Act, the term ‘‘Secretary’’ means the Secretary of Agriculture. 

TITLE I—COMMODITY PROGRAMS 

SEC. 1001. DEFINITIONS. 

In this title (other than subtitle C): 

(1) AVERAGE CROP REVENUE ELECTION PAYMENT.—The term 

‘‘average crop revenue election payment’’ means a payment 

made to producers on a farm under section 1105. 

(2) BASE ACRES.— (A) IN GENERAL.—The term ‘‘base acres’’, with respect 

to a covered commodity on a farm, means the number 

of acres established under section 1101 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911) 

as in effect on September 30, 2007, subject to any adjustment under section 1101 of this Act. 

(B) PEANUTS.—The term ‘‘base acres for peanuts’’ has 

the meaning given the term in section 1301. 

(3) COUNTER-CYCLICAL PAYMENT.—The term ‘‘countercyclical payment’’ means a payment made to producers on 

a farm under section 1104. 

(4) COVERED COMMODITY.—The term ‘‘covered commodity’’ 

means wheat, corn, grain sorghum, barley, oats, upland cotton, 

long grain rice, medium grain rice, pulse crops, soybeans, and 

other oilseeds. 

(5) DIRECT PAYMENT.—The term ‘‘direct payment’’ means 

a payment made to producers on a farm under section 1103. 

(6) EFFECTIVE PRICE.—The term ‘‘effective price’’, with 

respect to a covered commodity for a crop year, means the 

price calculated by the Secretary under section 1104 to determine whether counter-cyclical payments are required to be 

made for that crop year. 
H. R. 2419—15 

(7) EXTRA LONG STAPLE COTTON.—The term ‘‘extra long 

staple cotton’’ means cotton that— 

(A) is produced from pure strain varieties of the 

Barbadense species or any hybrid of the species, or other 

similar types of extra long staple cotton, designated by 

the Secretary, having characteristics needed for various 

end uses for which United States upland cotton is not 

suitable and grown in irrigated cotton-growing regions of 

the United States designated by the Secretary or other 

areas designated by the Secretary as suitable for the 

production of the varieties or types; and 

(B) is ginned on a roller-type gin or, if authorized 

by the Secretary, ginned on another type gin for experimental purposes. 

(8) LOAN COMMODITY.—The term ‘‘loan commodity’’ means 

wheat, corn, grain sorghum, barley, oats, upland cotton, extra 

long staple cotton, long grain rice, medium grain rice, soybeans, 

other oilseeds, graded wool, nongraded wool, mohair, honey, 

dry peas, lentils, small chickpeas, and large chickpeas. 

(9) MEDIUM GRAIN RICE.—The term ‘‘medium grain rice’’ 

includes short grain rice. 

(10) OTHER OILSEED.—The term ‘‘other oilseed’’ means a 

crop of sunflower seed, rapeseed, canola, safflower, flaxseed, 

mustard seed, crambe, sesame seed, or any oilseed designated 

by the Secretary. 

(11) PAYMENT ACRES.—The term ‘‘payment acres’’ means, 

in the case of direct payments and counter-cyclical payments— 

(A) except as provided in subparagraph (B), 85 percent 

of the base acres of a covered commodity on a farm on 

which direct payments or counter-cyclical payments are 

made; and 

(B) in the case of direct payments for each of the 

2009 through 2011 crop years, 83.3 percent of the base 

acres for the covered commodity on a farm on which direct 

payments are made. 

(12) PAYMENT YIELD.—The term ‘‘payment yield’’ means 

the yield established for direct payments and the yield established for counter-cyclical payments under section 1102 of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

7912) as in effect on September 30, 2007, or under section 

1102 of this Act, for a farm for a covered commodity. 

(13) PRODUCER.— 

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

owner, operator, landlord, tenant, or sharecropper that 

shares in the risk of producing a crop and is entitled 

to share in the crop available for marketing from the farm, 

or would have shared had the crop been produced. 

(B) HYBRID SEED.—In determining whether a grower 

of hybrid seed is a producer, the Secretary shall— 

(i) not take into consideration the existence of a 

hybrid seed contract; and 

(ii) ensure that program requirements do not 

adversely affect the ability of the grower to receive 

a payment under this title. 

(14) PULSE CROP.—The term ‘‘pulse crop’’ means dry peas, 

lentils, small chickpeas, and large chickpeas. 

(15) STATE.—The term ‘‘State’’ means— 
H. R. 2419—16 

(A) a State; 

(B) the District of Columbia; 

(C) the Commonwealth of Puerto Rico; and 

(D) any other territory or possession of the United 

States. 

(16) TARGET PRICE.—The term ‘‘target price’’ means the 

price per bushel, pound, or hundredweight (or other appropriate 

unit) of a covered commodity used to determine the payment 

rate for counter-cyclical payments. 

(17) UNITED STATES.—The term ‘‘United States’’, when used 

in a geographical sense, means all of the States. 

(18) UNITED STATES PREMIUM FACTOR.—The term ‘‘United 

States Premium Factor’’ means the percentage by which the 

difference in the United States loan schedule premiums for 

Strict Middling (SM) 11⁄8-inch upland cotton and for Middling 

(M) 13⁄32-inch upland cotton exceeds the difference in the 

applicable premiums for comparable international qualities. 

Subtitle A—Direct Payments and CounterCyclical Payments 

SEC. 1101. BASE ACRES. 

(a) ADJUSTMENT OF BASE ACRES.— (1) IN GENERAL.—The Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities 

for a farm whenever any of the following circumstances occurs: 

(A) A conservation reserve contract entered into under 

section 1231 of the Food Security Act of 1985 (16 U.S.C. 

3831) with respect to the farm expires or is voluntarily 

terminated, or was terminated or expired during the period 

beginning on October 1, 2007, and ending on the date 

of enactment of this Act. 

(B) Cropland is released from coverage under a conservation reserve contract by the Secretary, or was released 

during the period beginning on October 1, 2007, and ending 

on the date of enactment of this Act. 

(C) The producer has eligible pulse crop acreage, which 

shall be determined in the same manner as eligible oilseed 

acreage under section 1101(a)(2) of the Farm Security and 

Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 

(D) The producer has eligible oilseed acreage as the 

result of the Secretary designating additional oilseeds, 

which shall be determined in the same manner as eligible 

oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 

(2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT

RULES.—For the crop year in which a base acres adjustment 

under subparagraph (A) or (B) of paragraph (1) is first made, 

the owner of the farm shall elect to receive either direct payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated 

payment under the conservation reserve contract, but not both. 

(b) PREVENTION OF EXCESS BASE ACRES.— (1) REQUIRED REDUCTION.—If the sum of the base acres 

for a farm, together with the acreage described in paragraph 
H. R. 2419—17 

(2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered 

commodities for the farm or the base acres for peanuts for 

the farm so that the sum of the base acres and acreage 

described in paragraph (2) does not exceed the actual cropland 

acreage of the farm. 

(2) OTHER ACREAGE.—For purposes of paragraph (1), the 

Secretary shall include the following: 

(A) Any base acres for peanuts for the farm. 

(B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under 

chapter 1 of subtitle D of title XII of the Food Security 

Act of 1985 (16 U.S.C. 3830 et seq.). 

(C) Any other acreage on the farm enrolled in a Federal 

conservation program for which payments are made in 

exchange for not producing an agricultural commodity on 

the acreage. 

(D) Any eligible pulse crop acreage, which shall be 

determined in the same manner as eligible oilseed acreage 

under section 1101(a)(2) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 

(E) If the Secretary designates additional oilseeds, any 

eligible oilseed acreage, which shall be determined in the 

same manner as eligible oilseed acreage under section 

1101(a)(2) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 7911(a)(2)). 

(3) SELECTION OF ACRES.—The Secretary shall give the 

owner of the farm the opportunity to select the base acres 

for a covered commodity or the base acres for peanuts for 

the farm against which the reduction required by paragraph 

(1) will be made. 

(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE.—In 

applying paragraph (1), the Secretary shall make an exception 

in the case of double cropping, as determined by the Secretary. 

(5) COORDINATED APPLICATION OF REQUIREMENTS.—The 

Secretary shall take into account section 1302(b) when applying 

the requirements of this subsection. 

(c) REDUCTION IN BASE ACRES.— 

(1) REDUCTION AT OPTION OF OWNER.— 

(A) IN GENERAL.—The owner of a farm may reduce, 

at any time, the base acres for any covered commodity 

for the farm. 

(B) EFFECT OF REDUCTION.—A reduction under 

subparagraph (A) shall be permanent and made in a 

manner prescribed by the Secretary. 

(2) REQUIRED ACTION BY SECRETARY.— 

(A) IN GENERAL.—The Secretary shall proportionately 

reduce base acres on a farm for covered commodities for 

land that has been subdivided and developed for multiple 

residential units or other nonfarming uses if the size of 

the tracts and the density of the subdivision is such that 

the land is unlikely to return to the previous agricultural 

use, unless the producers on the farm demonstrate that 

the land— 

(i) remains devoted to commercial agricultural 

production; or 
H. R. 2419—18 

(ii) is likely to be returned to the previous agricultural use. 

(B) REQUIREMENT.—The Secretary shall establish 

procedures to identify land described in subparagraph (A). 

(3) REVIEW AND REPORT.—Each year, to ensure, to the 

maximum extent practicable, that payments are received only 

by producers, the Secretary shall submit to Congress a report 

that describes the results of the actions taken under paragraph 

(2). 

(d) TREATMENT OF FARMS WITH LIMITED BASE ACRES.— 

(1) PROHIBITION ON PAYMENTS.—Except as provided in 

paragraph (2) and notwithstanding any other provision of this 

title, a producer on a farm may not receive direct payments, 

counter-cyclical payments, or average crop revenue election payments if the sum of the base acres of the farm is 10 acres 

or less, as determined by the Secretary. 

(2) EXCEPTIONS.—Paragraph (1) shall not apply to a farm 

owned by— 

(A) a socially disadvantaged farmer or rancher (as 

defined in section 355(e) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2003(e)); or 

(B) a limited resource farmer or rancher, as defined 

by the Secretary. 

(3) DATA COLLECTION AND PUBLICATION.—The Secretary 

shall— 

(A) collect and publish segregated data and survey 

information about the farm profiles, utilization of land, 

and crop production; and 

(B) perform an evaluation on the supply and price 

of fruits and vegetables based on the effects of suspension 

of base acres under this section. 

SEC. 1102. PAYMENT YIELDS. 

(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making 

direct payments and counter-cyclical payments under this subtitle, 

the Secretary shall provide for the establishment of a yield for 

each farm for any designated oilseed or eligible pulse crop for 

which a payment yield was not established under section 1102 

of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

7912) in accordance with this section. 

(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS AND ELIGIBLE

PULSE CROPS.— 

(1) DETERMINATION OF AVERAGE YIELD.—In the case of designated oilseeds and eligible pulse crops, the Secretary shall 

determine the average yield per planted acre for the designated 

oilseed or pulse crop on a farm for the 1998 through 2001 

crop years, excluding any crop year in which the acreage 

planted to the designated oilseed or pulse crop was zero. 

(2) ADJUSTMENT FOR PAYMENT YIELD.— 

(A) IN GENERAL.—The payment yield for a farm for 

a designated oilseed or eligible pulse crop shall be equal 

to the product of the following: 

(i) The average yield for the designated oilseed 

or pulse crop determined under paragraph (1). 

(ii) The ratio resulting from dividing the national 

average yield for the designated oilseed or pulse crop 
H. R. 2419—19 

for the 1981 through 1985 crops by the national average yield for the designated oilseed or pulse crop for 

the 1998 through 2001 crops. 

(B) NO NATIONAL AVERAGE YIELD INFORMATION AVAILABLE.—To the extent that national average yield information for a designated oilseed or pulse crop is not available, 

the Secretary shall use such information as the Secretary 

determines to be fair and equitable to establish a national 

average yield under this section. 

(3) USE OF PARTIAL COUNTY AVERAGE YIELD.—If the yield 

per planted acre for a crop of a designated oilseed or pulse 

crop for a farm for any of the 1998 through 2001 crop years 

was less than 75 percent of the county yield for that designated 

oilseed or pulse crop, the Secretary shall assign a yield for 

that crop year equal to 75 percent of the county yield for 

the purpose of determining the average under paragraph (1). 

(4) NO HISTORIC YIELD DATA AVAILABLE.—In the case of 

establishing yields for designated oilseeds and eligible pulse 

crops, if historic yield data is not available, the Secretary shall 

use the ratio for dry peas calculated under paragraph (2)(A)(ii) 

in determining the yields for designated oilseeds and eligible 

pulse crops, as determined to be fair and equitable by the 

Secretary. 

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS. 

(a) PAYMENT REQUIRED.—For each of the 2008 through 2012 

crop years of each covered commodity (other than pulse crops), 

the Secretary shall make direct payments to producers on farms 

for which base acres and payment yields are established. 

(b) PAYMENT RATE.—Except as provided in section 1105, the 

payment rates used to make direct payments with respect to covered 

commodities for a crop year shall be as follows: (1) Wheat, $0.52 per bushel. 

(2) Corn, $0.28 per bushel. 

(3) Grain sorghum, $0.35 per bushel. 

(4) Barley, $0.24 per bushel. 

(5) Oats, $0.024 per bushel. 

(6) Upland cotton, $0.0667 per pound. 

(7) Long grain rice, $2.35 per hundredweight. 

(8) Medium grain rice, $2.35 per hundredweight. 

(9) Soybeans, $0.44 per bushel. 

(10) Other oilseeds, $0.80 per hundredweight. 

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

be paid to the producers on a farm for a covered commodity for 

a crop year shall be equal to the product of the following: 

(1) The payment rate specified in subsection (b). 

(2) The payment acres of the covered commodity on the 

farm. 

(3) The payment yield for the covered commodity for the 

farm. 

(d) TIME FOR PAYMENT.— 

(1) IN GENERAL.—Except as provided in paragraph (2), in 

the case of each of the 2008 through 2012 crop years, the 

Secretary may not make direct payments before October 1 

of the calendar year in which the crop of the covered commodity 

is harvested. 

(2) ADVANCE PAYMENTS.— 
H. R. 2419—20 

(A) OPTION.— 

(i) IN GENERAL.—At the option of the producers 

on a farm, the Secretary shall pay in advance up 

to 22 percent of the direct payment for a covered commodity for any of the 2008 through 2011 crop years 

to the producers on a farm. 

(ii) 2008 CROP YEAR.—If the producers on a farm 

elect to receive advance direct payments under clause 

(i) for a covered commodity for the 2008 crop year, 

as soon as practicable after the election, the Secretary 

shall make the advance direct payment to the producers on the farm. 

(B) MONTH.— 

(i) SELECTION.—Subject to clauses (ii) and (iii), 

the producers on a farm shall select the month during 

which the advance payment for a crop year will be 

made. 

(ii) OPTIONS.—The month selected may be any 

month during the period— 

(I) beginning on December 1 of the calendar 

year before the calendar year in which the crop 

of the covered commodity is harvested; and 

(II) ending during the month within which 

the direct payment would otherwise be made. 

(iii) CHANGE.—The producers on a farm may 

change the selected month for a subsequent advance 

payment by providing advance notice to the Secretary. 

(3) REPAYMENT OF ADVANCE PAYMENTS.—If a producer on 

a farm that receives an advance direct payment for a crop 

year ceases to be a producer on that farm, or the extent to 

which the producer shares in the risk of producing a crop 

changes, before the date the remainder of the direct payment 

is made, the producer shall be responsible for repaying the 

Secretary the applicable amount of the advance payment, as 

determined by the Secretary. 

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS. 

(a) PAYMENT REQUIRED.—Except as provided in section 1105, 

for each of the 2008 through 2012 crop years for each covered 

commodity, the Secretary shall make counter-cyclical payments to 

producers on farms for which payment yields and base acres are 

established with respect to the covered commodity if the Secretary 

determines that the effective price for the covered commodity is 

less than the target price for the covered commodity. 

(b) EFFECTIVE PRICE.— 

(1) COVERED COMMODITIES OTHER THAN RICE.—Except as 

provided in paragraph (2), for purposes of subsection (a), the 

effective price for a covered commodity is equal to the sum 

of the following: 

(A) The higher of the following: 

(i) The national average market price received by 

producers during the 12-month marketing year for the 

covered commodity, as determined by the Secretary. 

(ii) The national average loan rate for a marketing 

assistance loan for the covered commodity in effect 

for the applicable period under subtitle B. 
H. R. 2419—21 

(B) The payment rate in effect for the covered commodity under section 1103 for the purpose of making direct 

payments with respect to the covered commodity. 

(2) RICE.—In the case of long grain rice and medium grain 

rice, for purposes of subsection (a), the effective price for each 

type or class of rice is equal to the sum of the following: 

(A) The higher of the following: 

(i) The national average market price received by 

producers during the 12-month marketing year for the 

type or class of rice, as determined by the Secretary. 

(ii) The national average loan rate for a marketing 

assistance loan for the type or class of rice in effect 

for the applicable period under subtitle B. 

(B) The payment rate in effect for the type or class 

of rice under section 1103 for the purpose of making direct 

payments with respect to the type or class of rice. 

(c) TARGET PRICE.— (1) 2008 CROP YEAR.—For purposes of the 2008 crop year, 

the target prices for covered commodities shall be as follows: (A) Wheat, $3.92 per bushel. 

(B) Corn, $2.63 per bushel. 

(C) Grain sorghum, $2.57 per bushel. 

(D) Barley, $2.24 per bushel. 

(E) Oats, $1.44 per bushel. 

(F) Upland cotton, $0.7125 per pound. 

(G) Long grain rice, $10.50 per hundredweight. 

(H) Medium grain rice, $10.50 per hundredweight. 

(I) Soybeans, $5.80 per bushel. 

(J) Other oilseeds, $10.10 per hundredweight. 

(2) 2009 CROP YEAR.—For purposes of the 2009 crop year, 

the target prices for covered commodities shall be as follows: (A) Wheat, $3.92 per bushel. 

(B) Corn, $2.63 per bushel. 

(C) Grain sorghum, $2.57 per bushel. 

(D) Barley, $2.24 per bushel. 

(E) Oats, $1.44 per bushel. 

(F) Upland cotton, $0.7125 per pound. 

(G) Long grain rice, $10.50 per hundredweight. 

(H) Medium grain rice, $10.50 per hundredweight. 

(I) Soybeans, $5.80 per bushel. 

(J) Other oilseeds, $10.10 per hundredweight. 

(K) Dry peas, $8.32 per hundredweight. 

(L) Lentils, $12.81 per hundredweight. 

(M) Small chickpeas, $10.36 per hundredweight. 

(N) Large chickpeas, $12.81 per hundredweight. 

(3) SUBSEQUENT CROP YEARS.—For purposes of each of the 

2010 through 2012 crop years, the target prices for covered 

commodities shall be as follows: 

(A) Wheat, $4.17 per bushel. 

(B) Corn, $2.63 per bushel. 

(C) Grain sorghum, $2.63 per bushel. 

(D) Barley, $2.63 per bushel. 

(E) Oats, $1.79 per bushel. 

(F) Upland cotton, $0.7125 per pound. 

(G) Long grain rice, $10.50 per hundredweight. 

(H) Medium grain rice, $10.50 per hundredweight. 

(I) Soybeans, $6.00 per bushel. 
H. R. 2419—22 

(J) Other oilseeds, $12.68 per hundredweight. 

(K) Dry peas, $8.32 per hundredweight. 

(L) Lentils, $12.81 per hundredweight. 

(M) Small chickpeas, $10.36 per hundredweight. 

(N) Large chickpeas, $12.81 per hundredweight. 

(d) PAYMENT RATE.—The payment rate used to make countercyclical payments with respect to a covered commodity for a crop 

year shall be equal to the difference between— 

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

(2) the effective price determined under subsection (b) for 

the covered commodity. 

(e) PAYMENT AMOUNT.—If counter-cyclical payments are 

required to be paid under this section for any of the 2008 through 

2012 crop years of a covered commodity, the amount of the countercyclical payment to be paid to the producers on a farm for that 

crop year shall be equal to the product of the following: 

(1) The payment rate specified in subsection (d). 

(2) The payment acres of the covered commodity on the 

farm. 

(3) The payment yield for the covered commodity for the 

farm. 

(f) TIME FOR PAYMENTS.— 

(1) GENERAL RULE.—Except as provided in paragraph (2), 

if the Secretary determines under subsection (a) that countercyclical payments are required to be made under this section 

for the crop of a covered commodity, beginning October 1, 

or as soon as practicable thereafter, after the end of the marketing year for the covered commodity, the Secretary shall 

make the counter-cyclical payments for the crop. 

(2) AVAILABILITY OF PARTIAL PAYMENTS.— 

(A) IN GENERAL.—If, before the end of the 12-month 

marketing year for a covered commodity, the Secretary 

estimates that counter-cyclical payments will be required 

for the crop of the covered commodity, the Secretary shall 

give producers on a farm the option to receive partial 

payments of the counter-cyclical payment projected to be 

made for that crop of the covered commodity. 

(B) ELECTION.— 

(i) IN GENERAL.—The Secretary shall allow producers on a farm to make an election to receive partial 

payments for a covered commodity under subparagraph 

(A) at any time but not later than 60 days prior to 

the end of the marketing year for that covered commodity. 

(ii) DATE OF ISSUANCE.—The Secretary shall issue 

the partial payment after the date of an announcement 

by the Secretary but not later than 30 days prior 

to the end of the marketing year. 

(3) TIME FOR PARTIAL PAYMENTS.—When the Secretary 

makes partial payments for a covered commodity for any of 

the 2008 through 2010 crop years— 

(A) the first partial payment shall be made after 

completion of the first 180 days of the marketing year 

for the covered commodity; and 

(B) the final partial payment shall be made beginning 

October 1, or as soon as practicable thereafter, after the 
H. R. 2419—23 

end of the applicable marketing year for the covered commodity. 

(4) AMOUNT OF PARTIAL PAYMENT.— 

(A) FIRST PARTIAL PAYMENT.—For each of the 2008 

through 2010 crops of a covered commodity, the first partial 

payment under paragraph (3) to the producers on a farm 

may not exceed 40 percent of the projected counter-cyclical 

payment for the covered commodity for the crop year, as 

determined by the Secretary. 

(B) FINAL PAYMENT.—The final payment for a covered 

commodity for a crop year shall be equal to the difference 

between— 

(i) the actual counter-cyclical payment to be made 

to the producers for the covered commodity for that 

crop year; and 

(ii) the amount of the partial payment made to 

the producers under subparagraph (A). 

(5) REPAYMENT.—The producers on a farm that receive 

a partial payment under this subsection for a crop year shall 

repay to the Secretary the amount, if any, by which the total 

of the partial payments exceed the actual counter-cyclical payment to be made for the covered commodity for that crop 

year. 

SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM. 

(a) AVAILABILITY AND ELECTION OF ALTERNATIVE APPROACH.— (1) AVAILABILITY OF AVERAGE CROP REVENUE ELECTION PAY- MENTS.—As an alternative to receiving counter-cyclical payments under section 1104 or 1304 and in exchange for a 20- 

percent reduction in direct payments under section 1103 or 

1303 and a 30-percent reduction in marketing assistance loan 

rates under section 1202 or 1307, with respect to all covered 

commodities and peanuts on a farm, during each of the 2009, 

2010, 2011, and 2012 crop years, the Secretary shall give the 

producers on the farm an opportunity to make an irrevocable 

election to instead receive average crop revenue election 

(referred to in this section as ‘‘ACRE’’) payments under this 

section for the initial crop year for which the election is made 

through the 2012 crop year. 

(2) LIMITATION.— (A) IN GENERAL.—The total number of planted acres 

for which the producers on a farm may receive ACRE 

payments under this section may not exceed the total base 

acreage for all covered commodities and peanuts on the 

farm. 

(B) ELECTION.—If the total number of planted acres 

to all covered commodities and peanuts of the producers 

on a farm exceeds the total base acreage of the farm, 

the producers on the farm may choose which planted acres 

to enroll in the program under this section. 

(3) ELECTION; TIME FOR ELECTION.— 

(A) IN GENERAL.—The Secretary shall provide notice 

to producers regarding the opportunity to make each of 

the elections described in paragraph (1). 

(B) NOTICE REQUIREMENTS.—The notice shall include— 

(i) notice of the opportunity of the producers on 

a farm to make the election; and 
H. R. 2419—24 

(ii) information regarding the manner in which 

the election must be made and the time periods and 

manner in which notice of the election must be submitted to the Secretary. 

(4) ELECTION DEADLINE.—Within the time period and in 

the manner prescribed pursuant to paragraph (3), all of the 

producers on a farm shall submit to the Secretary notice of 

an election made under paragraph (1). 

(5) EFFECT OF FAILURE TO MAKE ELECTION.—If all of the 

producers on a farm fail to make an election under paragraph 

(1), make different elections under paragraph (1), or fail to 

timely notify the Secretary of the election made, as required 

by paragraph (4), all of the producers on the farm shall be 

deemed to have made the election to receive counter-cyclical 

payments under section 1104 or 1304 for all covered commodities and peanuts on the farm, and to otherwise not have 

made the election described in paragraph (1), for the applicable 

crop years. 

(b) PAYMENTS REQUIRED.— 

(1) IN GENERAL.—In the case of producers on a farm who 

make an election under subsection (a) to receive ACRE payments for any of the 2009 through 2012 crop years for all 

covered commodities and peanuts, the Secretary shall make 

ACRE payments available to the producers on a farm in accordance with this subsection. 

(2) ACRE PAYMENT.— 

(A) IN GENERAL.—Subject to paragraph (3), in the case 

of producers on a farm described in paragraph (1), the 

Secretary shall make ACRE payments available to the 

producers on a farm for each crop year if— 

(i) the actual State revenue for the crop year for 

the covered commodity or peanuts in the State determined under subsection (c); is less than 

(ii) the ACRE program guarantee for the crop year 

for the covered commodity or peanuts in the State 

determined under subsection (d). 

(B) INDIVIDUAL LOSS.—The Secretary shall make ACRE 

payments available to the producers on a farm in a State 

for a crop year only if (as determined by the Secretary)— 

(i) the actual farm revenue for the crop year for 

the covered commodity or peanuts, as determined 

under subsection (e); is less than 

(ii) the farm ACRE benchmark revenue for the 

crop year for the covered commodity or peanuts, as 

determined under subsection (f). 

(3) TIME FOR PAYMENTS.—In the case of each of the 2009 

through 2012 crop years, the Secretary shall make ACRE payments beginning October 1, or as soon as practicable thereafter, 

after the end of the applicable marketing year for the covered 

commodity or peanuts. 

(c) ACTUAL STATE REVENUE.— 

(1) IN GENERAL.—For purposes of subsection (b)(2)(A), the 

amount of the actual State revenue for a crop year of a covered 

commodity or peanuts shall equal the product obtained by 

multiplying— 
H. R. 2419—25 

(A) the actual State yield for each planted acre for 

the crop year for the covered commodity or peanuts determined under paragraph (2); and 

(B) the national average market price for the crop 

year for the covered commodity or peanuts determined 

under paragraph (3). 

(2) ACTUAL STATE YIELD.—For purposes of paragraph (1)(A), 

the actual State yield for each planted acre for a crop year 

for a covered commodity or peanuts in a State shall equal 

(as determined by the Secretary)— 

(A) the quantity of the covered commodity or peanuts 

that is produced in the State during the crop year; divided 

by 

(B) the number of acres that are planted to the covered 

commodity or peanuts in the State during the crop year. 

(3) NATIONAL AVERAGE MARKET PRICE.—For purposes of 

paragraph (1)(B), the national average market price for a crop 

year for a covered commodity or peanuts in a State shall 

equal the greater of— 

(A) the national average market price received by producers during the 12-month marketing year for the covered 

commodity or peanuts, as determined by the Secretary; 

or 

(B) the marketing assistance loan rate for the covered 

commodity or peanuts under section 1202 or 1307, as 

reduced under subsection (a)(1). 

(d) ACRE PROGRAM GUARANTEE.— (1) AMOUNT.— (A) IN GENERAL.—For purposes of subsection (b)(2)(A) 

and subject to subparagraph (B), the ACRE program guarantee for a crop year for a covered commodity or peanuts 

in a State shall equal 90 percent of the product obtained 

by multiplying— 

(i) the benchmark State yield for each planted 

acre for the crop year for the covered commodity or 

peanuts in a State determined under paragraph (2); 

and 

(ii) the ACRE program guarantee price for the 

crop year for the covered commodity or peanuts determined under paragraph (3). 

(B) MINIMUM AND MAXIMUM GUARANTEE.—In the case 

of each of the 2010 through 2012 crop years, the ACRE 

program guarantee for a crop year for a covered commodity 

or peanuts under subparagraph (A) shall not decrease or 

increase more than 10 percent from the guarantee for 

the preceding crop year. 

(2) BENCHMARK STATE YIELD.— 

(A) IN GENERAL.—For purposes of paragraph (1)(A)(i), 

subject to subparagraph (B), the benchmark State yield 

for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal the average yield 

per planted acre for the covered commodity or peanuts 

in the State for the most recent 5 crop year yields, excluding 

each of the crop years with the highest and lowest yields, 

using National Agricultural Statistics Service data. 

(B) ASSIGNED YIELD.—If the Secretary cannot establish 

the benchmark State yield for each planted acre for a 
H. R. 2419—26 

crop year for a covered commodity or peanuts in a State 

in accordance with subparagraph (A) or if the yield determined under subparagraph (A) is an unrepresentative average yield for the State (as determined by the Secretary), 

the Secretary shall assign a benchmark State yield for 

each planted acre for the crop year for the covered commodity or peanuts in the State on the basis of— 

(i) previous average yields for a period of 5 crop 

years, excluding each of the crop years with the highest 

and lowest yields; or 

(ii) benchmark State yields for planted acres for 

the crop year for the covered commodity or peanuts 

in similar States. 

(3) ACRE PROGRAM GUARANTEE PRICE.—For purposes of 

paragraph (1)(A)(ii), the ACRE program guarantee price for 

a crop year for a covered commodity or peanuts in a State 

shall be the simple average of the national average market 

price received by producers of the covered commodity or peanuts 

for the most recent 2 crop years, as determined by the Secretary. 

(4) STATES WITH IRRIGATED AND NONIRRIGATED LAND.—In 

the case of a State in which at least 25 percent of the acreage 

planted to a covered commodity or peanuts in the State is 

irrigated and at least 25 percent of the acreage planted to 

the covered commodity or peanuts in the State is not irrigated, 

the Secretary shall calculate a separate ACRE program guarantee for the irrigated and nonirrigated areas of the State 

for the covered commodity or peanuts. 

(e) ACTUAL FARM REVENUE.—For purposes of subsection 

(b)(2)(B)(i), the amount of the actual farm revenue for a crop year 

for a covered commodity or peanuts shall equal the amount determined by multiplying— 

(1) the actual yield for the covered commodity or peanuts 

of the producers on the farm; and 

(2) the national average market price for the crop year 

for the covered commodity or peanuts determined under subsection (c)(3). 

(f) FARM ACRE BENCHMARK REVENUE.—For purposes of subsection (b)(2)(B)(ii), the farm ACRE benchmark revenue for the 

crop year for a covered commodity or peanuts shall equal the 

sum obtained by adding— 

(1) the amount determined by multiplying— 

(A) the average yield per planted acre for the covered 

commodity or peanuts of the producers on the farm for 

the most recent 5 crop years, excluding each of the crop 

years with the highest and lowest yields; and 

(B) the ACRE program guarantee price for the 

applicable crop year for the covered commodity or peanuts 

in a State determined under subsection (d)(3); and 

(2) the amount of the per acre crop insurance premium 

required to be paid by the producers on the farm for the 

applicable crop year for the covered commodity or peanuts 

on the farm. 

(g) PAYMENT AMOUNT.—If ACRE payments are required to 

be paid for any of the 2009 through 2012 crop years of a covered 

commodity or peanuts under this section, the amount of the ACRE 

payment to be paid to the producers on the farm for the crop 
H. R. 2419—27 

year under this section shall be equal to the product obtained 

by multiplying— 

(1) the lesser of— 

(A) the difference between— 

(i) the ACRE program guarantee for the crop year 

for the covered commodity or peanuts in the State 

determined under subsection (d); and 

(ii) the actual State revenue from the crop year 

for the covered commodity or peanuts in the State 

determined under subsection (c); and 

(B) 25 percent of the ACRE program guarantee for 

the crop year for the covered commodity or peanuts in 

the State determined under subsection (d); 

(2)(A) for each of the 2009 through 2011 crop years, 83.3 

percent of the acreage planted or considered planted to the 

covered commodity or peanuts for harvest on the farm in the 

crop year; and 

(B) for the 2012 crop year, 85 percent of the acreage planted 

or considered planted to the covered commodity or peanuts 

for harvest on the farm in the crop year; and 

(3) the quotient obtained by dividing— 

(A) the average yield per planted acre for the covered 

commodity or peanuts of the producers on the farm for 

the most recent 5 crop years, excluding each of the crop 

years with the highest and lowest yields; by 

(B) the benchmark State yield for the crop year, as 

determined under subsection (d)(2). 

SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF 

PROVISION OF PAYMENTS. 

(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

(1) REQUIREMENTS.—Before the producers on a farm may 

receive direct payments, counter-cyclical payments, or average 

crop revenue election payments with respect to the farm, the 

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

(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security 

Act of 1985 (16 U.S.C. 3811 et seq.); 

(B) to comply with applicable wetland protection 

requirements under subtitle C of title XII of that Act (16 

U.S.C. 3821 et seq.); 

(C) to comply with the planting flexibility requirements 

of section 1107; 

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

to the attributable base acres for the farm and any base 

acres for peanuts for the farm under subtitle C, for an 

agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as 

determined by the Secretary; and 

(E) to effectively control noxious weeds and otherwise 

maintain the land in accordance with sound agricultural 

practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any 

portion of the land referred to in subparagraph (D). 
H. R. 2419—28 

(2) COMPLIANCE.—The Secretary may issue such rules as 

the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1). 

(3) MODIFICATION.—At the request of the transferee or 

owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives 

of this subsection, as determined by the Secretary. 

(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 

(1) TERMINATION.— 

(A) IN GENERAL.—Except as provided in paragraph (2), 

a transfer of (or change in) the interest of the producers 

on a farm in base acres for which direct payments or 

counter-cyclical payments are made, or on which average 

crop revenue election payments are based, shall result in 

the termination of the direct payments, counter-cyclical 

payments, or average crop revenue election payments to 

the extent the payments are made or based on the base 

acres, unless the transferee or owner of the acreage agrees 

to assume all obligations under subsection (a). 

(B) EFFECTIVE DATE.—The termination shall take effect 

on the date determined by the Secretary. 

(2) EXCEPTION.—If a producer entitled to a direct payment, 

counter-cyclical payment, or average crop revenue election payment dies, becomes incompetent, or is otherwise unable to 

receive the payment, the Secretary shall make the payment, 

in accordance with rules issued by the Secretary. 

(c) REPORTS.— 

(1) ACREAGE REPORTS.—As a condition on the receipt of 

any benefits under this subtitle or subtitle B, the Secretary 

shall require producers on a farm to submit to the Secretary 

annual acreage reports with respect to all cropland on the 

farm. 

(2) PRODUCTION REPORTS.—As a condition on the receipt 

of any benefits under this subtitle or subtitle B, the Secretary 

shall require producers on a farm that receive payments under 

section 1105 to submit to the Secretary annual production 

reports with respect to all covered commodities and peanuts 

produced on the farm. 

(3) PENALTIES.—No penalty with respect to benefits under 

this subtitle or subtitle B shall be assessed against the producers on a farm for an inaccurate acreage or production report 

unless the producers on the farm knowingly and willfully falsified the acreage or production report. 

(d) TENANTS AND SHARECROPPERS.—In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect 

the interests of tenants and sharecroppers. 

(e) SHARING OF PAYMENTS.—The Secretary shall provide for 

the sharing of direct payments, counter-cyclical payments, or average crop revenue election payments among the producers on a 

farm on a fair and equitable basis. 

SEC. 1107. PLANTING FLEXIBILITY. 

(a) PERMITTED CROPS.—Subject to subsection (b), any commodity or crop may be planted on base acres on a farm. 

(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.— (1) GENERAL LIMITATION.—The planting of an agricultural 

commodity specified in paragraph (3) shall be prohibited on 
H. R. 2419—29 

base acres unless the commodity, if planted, is destroyed before 

harvest. 

(2) TREATMENT OF TREES AND OTHER PERENNIALS.—The 

planting of an agricultural commodity specified in paragraph 

(3) that is produced on a tree or other perennial plant shall 

be prohibited on base acres. 

(3) COVERED AGRICULTURAL COMMODITIES.—Paragraphs (1) 

and (2) apply to the following agricultural commodities: 

(A) Fruits. 

(B) Vegetables (other than mung beans and pulse 

crops). 

(C) Wild rice. 

(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall 

not limit the planting of an agricultural commodity specified in 

paragraph (3) of that subsection— 

(1) in any region in which there is a history of doublecropping of covered commodities with agricultural commodities 

specified in subsection (b)(3), as determined by the Secretary, 

in which case the double-cropping shall be permitted; 

(2) on a farm that the Secretary determines has a history 

of planting agricultural commodities specified in subsection 

(b)(3) on base acres, except that direct payments and countercyclical payments shall be reduced by an acre for each acre 

planted to such an agricultural commodity; or 

(3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that— 

(A) the quantity planted may not exceed the average 

annual planting history of such agricultural commodity 

by the producers on the farm in the 1991 through 1995 

or 1998 through 2001 crop years (excluding any crop year 

in which no plantings were made), as determined by the 

Secretary; and 

(B) direct payments and counter-cyclical payments 

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

agricultural commodity. 

(d) PLANTING TRANSFERABILITY PILOT PROJECT.— 

(1) PILOT PROJECT AUTHORIZED.—Notwithstanding paragraphs (1) and (2) of subsection (b) and in addition to the 

exceptions provided in subsection (c), the Secretary shall carry 

out a pilot project to permit the planting of cucumbers, green 

peas, lima beans, pumpkins, snap beans, sweet corn, and tomatoes grown for processing on base acres during each of the 

2009 through 2012 crop years. 

(2) PILOT PROJECT STATES AND ACRES.—The number of base 

acres eligible during each crop year for the pilot project under 

paragraph (1) shall be— 

(A) 9,000 acres in the State of Illinois; 

(B) 9,000 acres in the State of Indiana; 

(C) 1,000 acres in the State of Iowa; 

(D) 9,000 acres in the State of Michigan; 

(E) 34,000 acres in the State of Minnesota; 

(F) 4,000 acres in the State of Ohio; and 

(G) 9,000 acres in the State of Wisconsin. 

(3) CONTRACT AND MANAGEMENT REQUIREMENTS.—To be 

eligible for selection to participate in the pilot project, the 

producers on a farm shall— 
H. R. 2419—30 

(A) demonstrate to the Secretary that the producers 

on the farm have entered into a contract to produce a 

crop of a commodity specified in paragraph (1) for processing; 

(B) agree to produce the crop as part of a program 

of crop rotation on the farm to achieve agronomic and 

pest and disease management benefits; and 

(C) provide evidence of the disposition of the crop. 

(4) TEMPORARY REDUCTION IN BASE ACRES.—The base acres 

on a farm for a crop year shall be reduced by an acre for 

each acre planted under the pilot program. 

(5) DURATION OF REDUCTIONS.—The reduction in the base 

acres of a farm for a crop year under paragraph (4) shall 

expire at the end of the crop year. 

(6) RECALCULATION OF BASE ACRES.— 

(A) IN GENERAL.—If the Secretary recalculates base 

acres for a farm while the farm is included in the pilot 

project, the planting and production of a crop of a commodity specified in paragraph (1) on base acres for which 

a temporary reduction was made under this section shall 

be considered to be the same as the planting and production 

of a covered commodity. 

(B) PROHIBITION.—Nothing in this paragraph provides 

authority for the Secretary to recalculate base acres for 

a farm. 

(7) PILOT IMPACT EVALUATION.— 

(A) IN GENERAL.—The Secretary shall periodically 

evaluate the pilot project conducted under this subsection 

to determine the effects of the pilot project on the supply 

and price of— 

(i) fresh fruits and vegetables; and 

(ii) fruits and vegetables for processing. 

(B) DETERMINATION.—An evaluation under subparagraph (A) shall include a determination as to whether— 

(i) producers of fresh fruits and vegetables are 

being negatively impacted; and 

(ii) existing production capacities are being supplanted. 

(C) REPORT.—As soon as practicable after conducting 

an evaluation under subparagraph (A), the Secretary shall 

submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes 

the results of the evaluation. 

SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE. 

(a) CALCULATION METHOD.—Subject to subsections (b) and (c), 

for the purposes of determining the amount of the counter-cyclical 

payments to be paid to the producers on a farm for long grain 

rice and medium grain rice under section 1104, the base acres 

of rice on the farm shall be apportioned using the 4-year average 

of the percentages of acreage planted in the applicable State to 

long grain rice and medium grain rice during the 2003 through 

2006 crop years, as determined by the Secretary. 

(b) PRODUCER ELECTION.—As an alternative to the calculation 

method described in subsection (a), the Secretary shall provide 
H. R. 2419—31 

producers on a farm the opportunity to elect to apportion rice 

base acres on the farm using the 4-year average of— 

(1) the percentages of acreage planted on the farm to long 

grain rice and medium grain rice during the 2003 through 

2006 crop years; 

(2) the percentages of any acreage on the farm that the 

producers were prevented from planting to long grain rice and 

medium grain rice during the 2003 through 2006 crop years 

because of drought, flood, other natural disaster, or other condition beyond the control of the producers, as determined by 

the Secretary; and 

(3) in the case of a crop year for which a producer on 

a farm elected not to plant to long grain and medium grain 

rice during the 2003 through 2006 crop years, the percentages 

of acreage planted in the applicable State to long grain rice 

and medium grain rice, as determined by the Secretary. 

(c) LIMITATION.—In carrying out this section, the Secretary 

shall use the same total base acres, payment acres, and payment 

yields established with respect to rice under sections 1101 and 

1102 of the Farm Security and Rural Investment Act of 2002 

(7 U.S.C. 7911, 7912), as in effect on September 30, 2007, subject 

to any adjustment under section 1101 of this Act. 

SEC. 1109. PERIOD OF EFFECTIVENESS. 

This subtitle shall be effective beginning with the 2008 crop 

year of each covered commodity through the 2012 crop year. 

Subtitle B—Marketing Assistance Loans 

and Loan Deficiency Payments 

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 

LOANS FOR LOAN COMMODITIES. 

(a) NONRECOURSE LOANS AVAILABLE.— 

(1) AVAILABILITY.—For each of the 2008 through 2012 crops 

of each loan commodity, the Secretary shall make available 

to producers on a farm nonrecourse marketing assistance loans 

for loan commodities produced on the farm. 

(2) TERMS AND CONDITIONS.—The marketing assistance 

loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under 

section 1202 for the loan commodity. 

(b) ELIGIBLE PRODUCTION.—The producers on a farm shall be 

eligible for a marketing assistance loan under subsection (a) for 

any quantity of a loan commodity produced on the farm. 

(c) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS.—As a condition of the receipt of a marketing assistance 

loan under subsection (a), the producer shall comply with applicable 

conservation requirements under subtitle B of title XII of the Food 

Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland 

protection requirements under subtitle C of title XII of that Act 

(16 U.S.C. 3821 et seq.) during the term of the loan. 
H. R. 2419—32 

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 

LOANS. 

(a) 2008 CROP YEAR.—For purposes of the 2008 crop year, 

the loan rate for a marketing assistance loan under section 1201 

for a loan commodity shall be equal to the following: (1) In the case of wheat, $2.75 per bushel. 

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

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

(4) In the case of barley, $1.85 per bushel. 

(5) In the case of oats, $1.33 per bushel. 

(6) In the case of base quality of upland cotton, $0.52 

per pound. (7) In the case of extra long staple cotton, $0.7977 per 

pound. (8) In the case of long grain rice, $6.50 per hundredweight. 

(9) In the case of medium grain rice, $6.50 per hundredweight. (10) In the case of soybeans, $5.00 per bushel. 

(11) In the case of other oilseeds, $9.30 per hundredweight 

for each of the following kinds of oilseeds: 

(A) Sunflower seed. 

(B) Rapeseed. 

(C) Canola. 

(D) Safflower. 

(E) Flaxseed. 

(F) Mustard seed. 

(G) Crambe. 

(H) Sesame seed. 

(I) Other oilseeds designated by the Secretary. 

(12) In the case of dry peas, $6.22 per hundredweight. 

(13) In the case of lentils, $11.72 per hundredweight. 

(14) In the case of small chickpeas, $7.43 per hundredweight. 

(15) In the case of graded wool, $1.00 per pound. 

(16) In the case of nongraded wool, $0.40 per pound. 

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

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

(b) 2009 CROP YEAR.—Except as provided in section 1105, for 

purposes of the 2009 crop year, the loan rate for a marketing 

assistance loan under section 1201 for a loan commodity shall 

be equal to the following: 

(1) In the case of wheat, $2.75 per bushel. 

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

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

(4) In the case of barley, $1.85 per bushel. 

(5) In the case of oats, $1.33 per bushel. 

(6) In the case of base quality of upland cotton, $0.52 

per pound. (7) In the case of extra long staple cotton, $0.7977 per 

pound. (8) In the case of long grain rice, $6.50 per hundredweight. 

(9) In the case of medium grain rice, $6.50 per hundredweight. (10) In the case of soybeans, $5.00 per bushel. 

(11) In the case of other oilseeds, $9.30 per hundredweight 

for each of the following kinds of oilseeds: 

(A) Sunflower seed. 
H. R. 2419—33 

(B) Rapeseed. 

(C) Canola. 

(D) Safflower. 

(E) Flaxseed. 

(F) Mustard seed. 

(G) Crambe. 

(H) Sesame seed. 

(I) Other oilseeds designated by the Secretary. 

(12) In the case of dry peas, $5.40 per hundredweight. 

(13) In the case of lentils, $11.28 per hundredweight. 

(14) In the case of small chickpeas, $7.43 per hundredweight. 

(15) In the case of large chickpeas, $11.28 per hundredweight. 

(16) In the case of graded wool, $1.00 per pound. 

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

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

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

(c) 2010 THROUGH 2012 CROP YEARS.—Except as provided in 

section 1105, for purposes of each of the 2010 through 2012 crop 

years, the loan rate for a marketing assistance loan under section 

1201 for a loan commodity shall be equal to the following: 

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

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

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

(4) In the case of barley, $1.95 per bushel. 

(5) In the case of oats, $1.39 per bushel. 

(6) In the case of base quality of upland cotton, $0.52 

per pound. 

(7) In the case of extra long staple cotton, $0.7977 per 

pound. 

(8) In the case of long grain rice, $6.50 per hundredweight. 

(9) In the case of medium grain rice, $6.50 per hundredweight. 

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

(11) In the case of other oilseeds, $10.09 per hundredweight 

for each of the following kinds of oilseeds: 

(A) Sunflower seed. 

(B) Rapeseed. 

(C) Canola. 

(D) Safflower. 

(E) Flaxseed. 

(F) Mustard seed. 

(G) Crambe. 

(H) Sesame seed. 

(I) Other oilseeds designated by the Secretary. 

(12) In the case of dry peas, $5.40 per hundredweight. 

(13) In the case of lentils, $11.28 per hundredweight. 

(14) In the case of small chickpeas, $7.43 per hundredweight. 

(15) In the case of large chickpeas, $11.28 per hundredweight. 

(16) In the case of graded wool, $1.15 per pound. 

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

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

(19) In the case of honey, $0.69 per pound. 
H. R. 2419—34 

(d) SINGLE COUNTY LOAN RATE FOR OTHER OILSEEDS.—The 

Secretary shall establish a single loan rate in each county for 

each kind of other oilseeds described in subsections (a)(11), (b)(11), 

and (c)(11). 

SEC. 1203. TERM OF LOANS. 

(a) TERM OF LOAN.—In the case of each loan commodity, a 

marketing assistance loan under section 1201 shall have a term 

of 9 months beginning on the first day of the first month after 

the month in which the loan is made. 

(b) EXTENSIONS PROHIBITED.—The Secretary may not extend 

the term of a marketing assistance loan for any loan commodity. 

SEC. 1204. REPAYMENT OF LOANS. 

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

on a farm to repay a marketing assistance loan under section 

1201 for a loan commodity (other than upland cotton, long grain 

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

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

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

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 

163 of the Federal Agriculture Improvement and Reform Act 

of 1996 (7 U.S.C. 7283)); 

(2) a rate (as determined by the Secretary) that— 

(A) is calculated based on average market prices for 

the loan commodity during the preceding 30-day period; 

and 

(B) will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; 

or 

(3) a rate that the Secretary may develop using alternative 

methods for calculating a repayment rate for a loan commodity 

that the Secretary determines will— 

(A) minimize potential loan forfeitures; 

(B) minimize the accumulation of stocks of the commodity by the Federal Government; 

(C) minimize the cost incurred by the Federal Government in storing the commodity; 

(D) allow the commodity produced in the United States 

to be marketed freely and competitively, both domestically 

and internationally; and 

(E) minimize discrepancies in marketing loan benefits 

across State boundaries and across county boundaries. 

(b) REPAYMENT RATES FOR UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary shall permit producers 

to repay a marketing assistance loan under section 1201 for upland 

cotton, long grain rice, and medium grain rice at a rate that is 

the lesser of— 

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 

163 of the Federal Agriculture Improvement and Reform Act 

of 1996 (7 U.S.C. 7283)); or 

(2) the prevailing world market price for the commodity, 

as determined and adjusted by the Secretary in accordance 

with this section. 

(c) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON.— 

Repayment of a marketing assistance loan for extra long staple 
H. R. 2419—35 

cotton shall be at the loan rate established for the commodity 

under section 1202, plus interest (determined in accordance with 

section 163 of the Federal Agriculture Improvement and Reform 

Act of 1996 (7 U.S.C. 7283)). 

(d) PREVAILING WORLD MARKET PRICE.—For purposes of this 

section and section 1207, the Secretary shall prescribe by regulation— 

(1) a formula to determine the prevailing world market 

price for each of upland cotton, long grain rice, and medium 

grain rice; and 

(2) a mechanism by which the Secretary shall announce 

periodically those prevailing world market prices. 

(e) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR

UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.— (1) RICE.—The prevailing world market price for long grain 

rice and medium grain rice determined under subsection (d) 

shall be adjusted to United States quality and location. 

(2) COTTON.—The prevailing world market price for upland 

cotton determined under subsection (d)— 

(A) shall be adjusted to United States quality and 

location, with the adjustment to include— 

(i) a reduction equal to any United States Premium 

Factor for upland cotton of a quality higher than Middling (M) 13⁄32-inch; and 

(ii) the average costs to market the commodity, 

including average transportation costs, as determined 

by the Secretary; and 

(B) may be further adjusted, during the period beginning on the date of enactment of this Act and ending 

on July 31, 2013, if the Secretary determines the adjustment is necessary to— 

(i) minimize potential loan forfeitures; 

(ii) minimize the accumulation of stocks of upland 

cotton by the Federal Government; 

(iii) ensure that upland cotton produced in the 

United States can be marketed freely and competitively, both domestically and internationally; and 

(iv) ensure an appropriate transition between current-crop and forward-crop price quotations, except 

that the Secretary may use forward-crop price 

quotations prior to July 31 of a marketing year only 

if— 

(I) there are insufficient current-crop price 

quotations; and 

(II) the forward-crop price quotation is the 

lowest such quotation available. 

(3) GUIDELINES FOR ADDITIONAL ADJUSTMENTS.—In making 

adjustments under this subsection, the Secretary shall establish 

a mechanism for determining and announcing the adjustments 

in order to avoid undue disruption in the United States market. 

(f) REPAYMENT RATES FOR CONFECTIONERY AND OTHER KINDS

OF SUNFLOWER SEEDS.—The Secretary shall permit the producers 

on a farm to repay a marketing assistance loan under section 

1201 for confectionery and each other kind of sunflower seed (other 

than oil sunflower seed) at a rate that is the lesser of— 

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 
H. R. 2419—36 

163 of the Federal Agriculture Improvement and Reform Act 

of 1996 (7 U.S.C. 7283)); or 

(2) the repayment rate established for oil sunflower seed. 

(g) PAYMENT OF COTTON STORAGE COSTS.— 

(1) 2008 THROUGH 2011 CROP YEARS.—Effective for each 

of the 2008 through 2011 crop years, the Secretary shall provide 

cotton storage payments in the same manner, and at the same 

rates as the Secretary provided storage payments for the 2006 

crop of cotton, except that the rates shall be reduced by 10 

percent. 

(2) SUBSEQUENT CROP YEARS.—Beginning with the 2012 

crop year, the Secretary shall provide cotton storage payments 

in the same manner, and at the same rates as the Secretary 

provided storage payments for the 2006 crop of cotton, except 

that the rates shall be reduced by 20 percent. 

(h) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT RATES.— 

(1) ADJUSTMENT AUTHORITY.—In the event of a severe 

disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise 

applicable under this section for marketing assistance loans 

under section 1201 for a loan commodity. 

(2) DURATION.—Any adjustment made under paragraph (1) 

in the repayment rate for marketing assistance loans for a 

loan commodity shall be in effect on a short-term and temporary 

basis, as determined by the Secretary. 

SEC. 1205. LOAN DEFICIENCY PAYMENTS. 

(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— 

(1) IN GENERAL.—Except as provided in subsection (d), the 

Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing 

assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity 

in return for loan deficiency payments under this section. 

(2) UNSHORN PELTS, HAY, AND SILAGE.— 

(A) MARKETING ASSISTANCE LOANS.—Subject to 

subparagraph (B), nongraded wool in the form of unshorn 

pelts and hay and silage derived from a loan commodity 

are not eligible for a marketing assistance loan under section 1201. 

(B) LOAN DEFICIENCY PAYMENT.—Effective for the 2008 

through 2012 crop years, the Secretary may make loan 

deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and 

silage derived from a loan commodity. 

(b) COMPUTATION.—A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying— 

(1) the payment rate determined under subsection (c) for 

the commodity; by 

(2) the quantity of the commodity produced by the eligible 

producers, excluding any quantity for which the producers 

obtain a marketing assistance loan under section 1201. 

(c) PAYMENT RATE.— 

(1) IN GENERAL.—In the case of a loan commodity, the 

payment rate shall be the amount by which— 
H. R. 2419—37 

(A) the loan rate established under section 1202 for 

the loan commodity; exceeds 

(B) the rate at which a marketing assistance loan 

for the loan commodity may be repaid under section 1204. 

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

payment rate shall be the amount by which— 

(A) the loan rate established under section 1202 for 

ungraded wool; exceeds 

(B) the rate at which a marketing assistance loan 

for ungraded wool may be repaid under section 1204. 

(3) HAY AND SILAGE.—In the case of hay or silage derived 

from a loan commodity, the payment rate shall be the amount 

by which— 

(A) the loan rate established under section 1202 for 

the loan commodity from which the hay or silage is derived; 

exceeds 

(B) the rate at which a marketing assistance loan 

for the loan commodity may be repaid under section 1204. 

(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.—This section 

shall not apply with respect to extra long staple cotton. 

(e) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.—The 

Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm 

with respect to a quantity of a loan commodity or commodity 

referred to in subsection (a)(2) using the payment rate in effect 

under subsection (c) as of the date the producers request the payment. 

SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 

GRAZED ACREAGE. 

(a) ELIGIBLE PRODUCERS.— 

(1) IN GENERAL.—Effective for the 2008 through 2012 crop 

years, in the case of a producer that would be eligible for 

a loan deficiency payment under section 1205 for wheat, barley, 

or oats, but that elects to use acreage planted to the wheat, 

barley, or oats for the grazing of livestock, the Secretary shall 

make a payment to the producer under this section if the 

producer enters into an agreement with the Secretary to forgo 

any other harvesting of the wheat, barley, or oats on that 

acreage. 

(2) GRAZING OF TRITICALE ACREAGE.—Effective for the 2008 

through 2012 crop years, with respect to a producer on a 

farm that uses acreage planted to triticale for the grazing 

of livestock, the Secretary shall make a payment to the producer 

under this section if the producer enters into an agreement 

with the Secretary to forgo any other harvesting of triticale 

on that acreage. 

(b) PAYMENT AMOUNT.— 

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

this section to a producer on a farm described in subsection 

(a)(1) shall be equal to the amount determined by multiplying— 

(A) the loan deficiency payment rate determined under 

section 1205(c) in effect, as of the date of the agreement, 

for the county in which the farm is located; by 

(B) the payment quantity determined by multiplying— 
H. R. 2419—38 

(i) the quantity of the grazed acreage on the farm 

with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and 

(ii) the payment yield in effect for the calculation 

of direct payments under subtitle A with respect to 

that loan commodity on the farm or, in the case of 

a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary in a manner consistent with section 1102 of 

the Farm Security and Rural Investment Act of 2002 

(7 U.S.C. 7912). 

(2) GRAZING OF TRITICALE ACREAGE.—The amount of a payment made under this section to a producer on a farm described 

in subsection (a)(2) shall be equal to the amount determined 

by multiplying— 

(A) the loan deficiency payment rate determined under 

section 1205(c) in effect for wheat, as of the date of the 

agreement, for the county in which the farm is located; 

by 

(B) the payment quantity determined by multiplying— 

(i) the quantity of the grazed acreage on the farm 

with respect to which the producer elects to forgo harvesting of triticale; and 

(ii) the payment yield in effect for the calculation 

of direct payments under subtitle A with respect to 

wheat on the farm or, in the case of a farm without 

a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with 

section 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912). 

(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— (1) TIME AND MANNER.—A payment under this section shall 

be made at the same time and in the same manner as loan 

deficiency payments are made under section 1205. 

(2) AVAILABILITY.— 

(A) IN GENERAL.—The Secretary shall establish an 

availability period for the payments authorized by this 

section. 

(B) CERTAIN COMMODITIES.—In the case of wheat, 

barley, and oats, the availability period shall be consistent 

with the availability period for the commodity established 

by the Secretary for marketing assistance loans authorized 

by this subtitle. 

(d) PROHIBITION ON CROP INSURANCE INDEMNITY OR NONINSURED CROP ASSISTANCE.—A 2008 through 2012 crop of wheat, 

barley, oats, or triticale planted on acreage that a producer elects, 

in the agreement required by subsection (a), to use for the grazing 

of livestock in lieu of any other harvesting of the crop shall not 

be eligible for an indemnity under a policy or plan of insurance 

authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 

et seq.) or noninsured crop assistance under section 196 of the 

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

7333). 

SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 

COTTON. 

(a) SPECIAL IMPORT QUOTA.— 
H. R. 2419—39 

(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this subsection, the term ‘‘special import quota’’ means a quantity of 

imports that is not subject to the over-quota tariff rate of 

a tariff-rate quota. 

(2) ESTABLISHMENT.— 

(A) IN GENERAL.—The President shall carry out an 

import quota program during the period beginning on the 

date of enactment of this Act through July 31, 2013, as 

provided in this subsection. 

(B) PROGRAM REQUIREMENTS.—Whenever the Secretary 

determines and announces that for any consecutive 4-week 

period, the Friday through Thursday average price 

quotation for the lowest-priced United States growth, as 

quoted for Middling (M) 13⁄32-inch cotton, delivered to a 

definable and significant international market, as determined by the Secretary, exceeds the prevailing world 

market price, there shall immediately be in effect a special 

import quota. 

(3) QUANTITY.—The quota shall be equal to 1 week’s 

consumption of cotton by domestic mills at the seasonally 

adjusted average rate of the most recent 3 months for which 

data are available. 

(4) APPLICATION.—The quota shall apply to upland cotton 

purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into 

the United States not later than 180 days after that date. 

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

that overlaps any existing quota period if required by paragraph 

(2), except that a special quota period may not be established 

under this subsection if a quota period has been established 

under subsection (b). 

(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under 

a special import quota shall be considered to be an in-quota 

quantity for purposes of— 

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

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

(B) section 204 of the Andean Trade Preference Act 

(19 U.S.C. 3203); 

(C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 

2463(d)); and 

(D) General Note 3(a)(iv) to the Harmonized Tariff 

Schedule. 

(7) LIMITATION.—The quantity of cotton entered into the 

United States during any marketing year under the special 

import quota established under this subsection may not exceed 

the equivalent of 10 week’s consumption of upland cotton by 

domestic mills at the seasonally adjusted average rate of the 

3 months immediately preceding the first special import quota 

established in any marketing year. 

(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON.— 

(1) DEFINITIONS.—In this subsection: 

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

latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury— 

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

of the marketing year (adjusted to 480-pound bales) 

in which the quota is established; 
H. R. 2419—40 

(ii) production of the current crop; and 

(iii) imports to the latest date available during 

the marketing year. 

(B) DEMAND.—The term ‘‘demand’’ means— 

(i) the average seasonally adjusted annual rate 

of domestic mill consumption of cotton during the most 

recent 3 months for which data are available; and 

(ii) the larger of— 

(I) average exports of upland cotton during 

the preceding 6 marketing years; or 

(II) cumulative exports of upland cotton plus 

outstanding export sales for the marketing year 

in which the quota is established. 

(C) LIMITED GLOBAL IMPORT QUOTA.—The term ‘‘limited 

global import quota’’ means a quantity of imports that 

is not subject to the over-quota tariff rate of a tariff-rate 

quota. 

(2) PROGRAM.—The President shall carry out an import 

quota program that provides that whenever the Secretary determines and announces that the average price of the base quality 

of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of 

the average price of the quality of cotton in the markets for 

the preceding 36 months, notwithstanding any other provision 

of law, there shall immediately be in effect a limited global 

import quota subject to the following conditions: 

(A) QUANTITY.—The quantity of the quota shall be 

equal to 21 days of domestic mill consumption of upland 

cotton at the seasonally adjusted average rate of the most 

recent 3 months for which data are available or as estimated by the Secretary. 

(B) QUANTITY IF PRIOR QUOTA.—If a quota has been 

established under this subsection during the preceding 12 

months, the quantity of the quota next established under 

this subsection shall be the smaller of 21 days of domestic 

mill consumption calculated under subparagraph (A) or 

the quantity required to increase the supply to 130 percent 

of the demand. 

(C) PREFERENTIAL TARIFF TREATMENT.—The quantity 

under a limited global import quota shall be considered 

to be an in-quota quantity for purposes of— 

(i) section 213(d) of the Caribbean Basin Economic 

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

(ii) section 204 of the Andean Trade Preference 

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

(iii) section 503(d) of the Trade Act of 1974 (19 

U.S.C. 2463(d)); and 

(iv) General Note 3(a)(iv) to the Harmonized Tariff 

Schedule. 

(D) QUOTA ENTRY PERIOD.—When a quota is established under this subsection, cotton may be entered under 

the quota during the 90-day period beginning on the date 

the quota is established by the Secretary. 

(3) NO OVERLAP.—Notwithstanding paragraph (2), a quota 

period may not be established that overlaps an existing quota 

period or a special quota period established under subsection 

(a). 
H. R. 2419—41 

(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS OF UPLAND

COTTON.— 

(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

shall, on a monthly basis, provide economic adjustment assistance to domestic users of upland cotton in the form of payments 

for all documented use of that upland cotton during the previous 

monthly period regardless of the origin of the upland cotton. 

(2) VALUE OF ASSISTANCE.— 

(A) BEGINNING PERIOD.—During the period beginning 

on August 1, 2008, and ending on July 31, 2012, the value 

of the assistance provided under paragraph (1) shall be 

4 cents per pound. 

(B) SUBSEQUENT PERIOD.—Effective beginning on 

August 1, 2012, the value of the assistance provided under 

paragraph (1) shall be 3 cents per pound. 

(3) ALLOWABLE PURPOSES.—Economic adjustment assistance under this subsection shall be made available only to 

domestic users of upland cotton that certify that the assistance 

shall be used only to acquire, construct, install, modernize, 

develop, convert, or expand land, plant, buildings, equipment, 

facilities, or machinery. 

(4) REVIEW OR AUDIT.—The Secretary may conduct such 

review or audit of the records of a domestic user under this 

subsection as the Secretary determines necessary to carry out 

this subsection. 

(5) IMPROPER USE OF ASSISTANCE.—If the Secretary determines, after a review or audit of the records of the domestic 

user, that economic adjustment assistance under this subsection 

was not used for the purposes specified in paragraph (3), the 

domestic user shall be— 

(A) liable to repay the assistance to the Secretary, 

plus interest, as determined by the Secretary; and 

(B) ineligible to receive assistance under this subsection for a period of 1 year following the determination 

of the Secretary. 

SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG 

STAPLE COTTON. 

(a) COMPETITIVENESS PROGRAM.—Notwithstanding any other 

provision of law, during the period beginning on the date of enactment of this Act through July 31, 2013, the Secretary shall carry 

out a program— 

(1) to maintain and expand the domestic use of extra long 

staple cotton produced in the United States; 

(2) to increase exports of extra long staple cotton produced 

in the United States; and 

(3) to ensure that extra long staple cotton produced in 

the United States remains competitive in world markets. 

(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under the program, 

the Secretary shall make payments available under this section 

whenever— 

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

for the lowest priced competing growth of extra long staple 

cotton (adjusted to United States quality and location and 

for other factors affecting the competitiveness of such cotton), 

as determined by the Secretary, is below the prevailing United 
H. R. 2419—42 

States price for a competing growth of extra long staple cotton; 

and 

(2) the lowest priced competing growth of extra long staple 

cotton (adjusted to United States quality and location and 

for other factors affecting the competitiveness of such cotton), 

as determined by the Secretary, is less than 134 percent of 

the loan rate for extra long staple cotton. 

(c) ELIGIBLE RECIPIENTS.—The Secretary shall make payments 

available under this section to domestic users of extra long staple 

cotton produced in the United States and exporters of extra long 

staple cotton produced in the United States that enter into an 

agreement with the Commodity Credit Corporation to participate 

in the program under this section. 

(d) PAYMENT AMOUNT.—Payments under this section shall be 

based on the amount of the difference in the prices referred to 

in subsection (b)(1) during the fourth week of the consecutive 4- 

week period multiplied by the amount of documented purchases 

by domestic users and sales for export by exporters made in the 

week following such a consecutive 4-week period. 

SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 

FEED GRAINS AND SEED COTTON. 

(a) HIGH MOISTURE FEED GRAINS.— (1) DEFINITION OF HIGH MOISTURE STATE.—In this subsection, the term ‘‘high moisture state’’ means corn or grain 

sorghum having a moisture content in excess of Commodity 

Credit Corporation standards for marketing assistance loans 

made by the Secretary under section 1201. 

(2) RECOURSE LOANS AVAILABLE.—For each of the 2008 

through 2012 crops of corn and grain sorghum, the Secretary 

shall make available recourse loans, as determined by the 

Secretary, to producers on a farm that— 

(A) normally harvest all or a portion of their crop 

of corn or grain sorghum in a high moisture state; 

(B) present— 

(i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, 

feedlot, feed mill, distillery, or other similar entity 

approved by the Secretary, pursuant to regulations 

issued by the Secretary; or 

(ii) field or other physical measurements of the 

standing or stored crop in regions of the United States, 

as determined by the Secretary, that do not have certified commercial scales from which certified scale 

tickets may be obtained within reasonable proximity 

of harvest operation; 

(C) certify that they were the owners of the feed grain 

at the time of delivery to, and that the quantity to be 

placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, 

or commercial or on-farm high-moisture storage facility, 

or to a facility maintained by the users of corn and grain 

sorghum in a high moisture state; and 

(D) comply with deadlines established by the Secretary 

for harvesting the corn or grain sorghum and submit 

applications for loans under this subsection within deadlines established by the Secretary. 
H. R. 2419—43 

(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under 

this subsection shall be made on a quantity of corn or grain 

sorghum of the same crop acquired by the producer equivalent 

to a quantity determined by multiplying— 

(A) the acreage of the corn or grain sorghum in a 

high moisture state harvested on the producer’s farm; by 

(B) the lower of the farm program payment yield used 

to make counter-cyclical payments under subtitle A or the 

actual yield on a field, as determined by the Secretary, 

that is similar to the field from which the corn or grain 

sorghum was obtained. 

(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON.—For each 

of the 2008 through 2012 crops of upland cotton and extra long 

staple cotton, the Secretary shall make available recourse seed 

cotton loans, as determined by the Secretary, on any production. 

(c) REPAYMENT RATES.—Repayment of a recourse loan made 

under this section shall be at the loan rate established for the 

commodity by the Secretary, plus interest (determined in accordance 

with section 163 of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7283)). 

SEC. 1210. ADJUSTMENTS OF LOANS. 

(a) ADJUSTMENT AUTHORITY.—Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for 

any loan commodity (other than cotton) for differences in grade, 

type, quality, location, and other factors. 

(b) MANNER OF ADJUSTMENT.—The adjustments under subsection (a) shall, to the maximum extent practicable, be made 

in such a manner that the average loan level for the commodity 

will, on the basis of the anticipated incidence of the factors, be 

equal to the level of support determined in accordance with this 

subtitle and subtitles B through E. 

(c) ADJUSTMENT ON COUNTY BASIS.— (1) IN GENERAL.—The Secretary may establish loan rates 

for a crop for producers in individual counties in a manner 

that results in the lowest loan rate being 95 percent of the 

national average loan rate, if those loan rates do not result 

in an increase in outlays. 

(2) PROHIBITION.—Adjustments under this subsection shall 

not result in an increase in the national average loan rate 

for any year. 

(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 

(1) IN GENERAL.—The Secretary may make appropriate 

adjustments in the loan rate for cotton for differences in quality 

factors. 

(2) REVISIONS TO QUALITY ADJUSTMENTS FOR UPLAND

COTTON.— 

(A) IN GENERAL.—Not later than 180 days after the 

date of enactment of this Act, the Secretary shall implement revisions in the administration of the marketing 

assistance loan program for upland cotton to more 

accurately and efficiently reflect market values for upland 

cotton. 

(B) MANDATORY REVISIONS.—Revisions under subparagraph (A) shall include— 

(i) the elimination of warehouse location differentials; 
H. R. 2419—44 

(ii) the establishment of differentials for the various quality factors and staple lengths of cotton based 

on a 3-year, weighted moving average of the weighted 

designated spot market regions, as determined by 

regional production; 

(iii) the elimination of any artificial split in the 

premium or discount between upland cotton with a 

32 or 33 staple length due to micronaire; and 

(iv) a mechanism to ensure that no premium or 

discount is established that exceeds the premium or 

discount associated with a leaf grade that is 1 better 

than the applicable color grade. 

(C) DISCRETIONARY REVISIONS.—Revisions under 

subparagraph (A) may include— 

(i) the use of non-spot market price data, in addition to spot market price data, that would enhance 

the accuracy of the price information used in determining quality adjustments under this subsection; 

(ii) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 

or above due to micronaire with the goal of eliminating 

any unnecessary artificial splits in the calculations 

of the premiums or discounts; and 

(iii) such other adjustments as the Secretary determines appropriate, after consultations conducted in 

accordance with paragraph (3). 

(3) CONSULTATION WITH PRIVATE SECTOR.— (A) PRIOR TO REVISION.—In making adjustments to 

the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall 

consult with representatives of the United States cotton 

industry. 

(B) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE

ACT.—The Federal Advisory Committee Act (5 U.S.C. App.) 

shall not apply to consultations under this subsection. 

(4) REVIEW OF ADJUSTMENTS.—The Secretary may review 

the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further 

revisions to the administration of the loan program for upland 

cotton, by— 

(A) revoking or revising any actions taken under paragraph (2)(B); or 

(B) revoking or revising any actions taken or authorized to be taken under paragraph (2)(C). 

(e) RICE.—The Secretary shall not make adjustments in the 

loan rates for long grain rice and medium grain rice, except for 

differences in grade and quality (including milling yields). 

Subtitle C—Peanuts 

SEC. 1301. DEFINITIONS. 

In this subtitle: 

(1) BASE ACRES FOR PEANUTS.— (A) IN GENERAL.—The term ‘‘base acres for peanuts’’ 

means the number of acres assigned to a farm pursuant 

to section 1302 of the Farm Security and Rural Investment 
H. R. 2419—45 

Act of 2002 (7 U.S.C. 7952), as in effect on September 

30, 2007, subject to any adjustment under section 1302 

of this Act. 

(B) COVERED COMMODITIES.—The term ‘‘base acres’’, 

with respect to a covered commodity, has the meaning 

given the term in section 1101. 

(2) COUNTER-CYCLICAL PAYMENT.—The term ‘‘countercyclical payment’’ means a payment made to producers on 

a farm under section 1304. 

(3) DIRECT PAYMENT.—The term ‘‘direct payment’’ means 

a direct payment made to producers on a farm under section 

1303. 

(4) EFFECTIVE PRICE.—The term ‘‘effective price’’ means 

the price calculated by the Secretary under section 1304 for 

peanuts to determine whether counter-cyclical payments are 

required to be made under that section for a crop year. 

(5) PAYMENT ACRES.—The term ‘‘payment acres’’ means, 

in the case of direct payments and counter-cyclical payments— 

(A) except as provided in subparagraph (B), 85 percent 

of the base acres of peanuts on a farm on which direct 

payments or counter-cyclical payments are made; and 

(B) in the case of direct payments for each of the 

2009 through 2011 crop years, 83.3 percent of the base 

acres for peanuts on a farm on which direct payments 

are made. 

(6) PAYMENT YIELD.—The term ‘‘payment yield’’ means the 

yield established for direct payments and the yield established 

for counter-cyclical payments under section 1302 of the Farm 

Security and Rural Investment Act of 2002 (7 U.S.C. 7952), 

as in effect on September 30, 2007, for a farm for peanuts. 

(7) PRODUCER.— 

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

owner, operator, landlord, tenant, or sharecropper that 

shares in the risk of producing a crop on a farm and 

is entitled to share in the crop available for marketing 

from the farm, or would have shared had the crop been 

produced. 

(B) HYBRID SEED.—In determining whether a grower 

of hybrid seed is a producer, the Secretary shall— 

(i) not take into consideration the existence of a 

hybrid seed contract; and 

(ii) ensure that program requirements do not 

adversely affect the ability of the grower to receive 

a payment under this subtitle. 

(8) STATE.—The term ‘‘State’’ means— 

(A) a State; 

(B) the District of Columbia; 

(C) the Commonwealth of Puerto Rico; and 

(D) any other territory or possession of the United 

States. 

(9) TARGET PRICE.—The term ‘‘target price’’ means the price 

per ton of peanuts used to determine the payment rate for 

counter-cyclical payments. 

(10) UNITED STATES.—The term ‘‘United States’’, when used 

in a geographical sense, means all of the States. 
H. R. 2419—46 

SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM. 

(a) ADJUSTMENT OF BASE ACREAGE FOR PEANUTS.— (1) IN GENERAL.—The Secretary shall provide for an adjustment, as appropriate, in the base acres for peanuts for a farm 

whenever any of the following circumstances occur: 

(A) A conservation reserve contract entered into under 

section 1231 of the Food Security Act of 1985 (16 U.S.C. 

3831) with respect to the farm expires or is voluntarily 

terminated, or was terminated or expired during the period 

beginning on October 1, 2007, and ending on the date 

of enactment of this Act. 

(B) Cropland is released from coverage under a conservation reserve contract by the Secretary, or was released 

during the period beginning on October 1, 2007, and ending 

on the date of enactment of this Act. 

(C) The producer has eligible pulse crop acreage, which 

shall be determined in the same manner as eligible oilseed 

acreage under section 1101(a)(2) of the Farm Security and 

Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 

(D) The producer has eligible oilseed acreage as the 

result of the Secretary designating additional oilseeds, 

which shall be determined in the same manner as eligible 

oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 

(2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT

RULES.—For the crop year in which a base acres for peanuts 

adjustment under subparagraph (A) or (B) of paragraph (1) 

is first made, the owner of the farm shall elect to receive 

either direct payments and counter-cyclical payments with 

respect to the acreage added to the farm under this subsection 

or a prorated payment under the conservation reserve contract, 

but not both. 

(b) PREVENTION OF EXCESS BASE ACRES FOR PEANUTS.— 

(1) REQUIRED REDUCTION.—If the sum of the base acres 

for peanuts for a farm, together with the acreage described 

in paragraph (2), exceeds the actual cropland acreage of the 

farm, the Secretary shall reduce the base acres for peanuts 

for the farm or the base acres for 1 or more covered commodities 

for the farm so that the sum of the base acres for peanuts 

and acreage described in paragraph (2) does not exceed the 

actual cropland acreage of the farm. 

(2) OTHER ACREAGE.—For purposes of paragraph (1), the 

Secretary shall include the following: 

(A) Any base acres for the farm for a covered commodity. 

(B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under 

chapter 1 of subtitle D of title XII of the Food Security 

Act of 1985 (16 U.S.C. 3830 et seq.). 

(C) Any other acreage on the farm enrolled in a Federal 

conservation program for which payments are made in 

exchange for not producing an agricultural commodity on 

the acreage. 

(D) Any eligible pulse crop acreage, which shall be 

determined in the same manner as eligible oilseed acreage 

under section 1101(a)(2) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 
H. R. 2419—47 

(E) If the Secretary designates additional oilseeds, any 

eligible oilseed acreage, which shall be determined in the 

same manner as eligible oilseed acreage under section 

1101(a)(2) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 7911(a)(2)). 

(3) SELECTION OF ACRES.—The Secretary shall give the 

owner of the farm the opportunity to select the base acres 

for peanuts or the base acres for covered commodities against 

which the reduction required by paragraph (1) will be made. 

(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE.—In 

applying paragraph (1), the Secretary shall make an exception 

in the case of double cropping, as determined by the Secretary. 

(5) COORDINATED APPLICATION OF REQUIREMENTS.—The 

Secretary shall take into account section 1101(b) when applying 

the requirements of this subsection. 

(c) REDUCTION IN BASE ACRES.— (1) REDUCTION AT OPTION OF OWNER.— (A) IN GENERAL.—The owner of a farm may reduce, 

at any time, the base acres for peanuts for the farm. 

(B) EFFECT OF REDUCTION.—A reduction under 

subparagraph (A) shall be permanent and made in a 

manner prescribed by the Secretary. 

(2) REQUIRED ACTION BY SECRETARY.— (A) IN GENERAL.—The Secretary shall proportionately 

reduce base acres on a farm for peanuts for land that 

has been subdivided and developed for multiple residential 

units or other nonfarming uses if the size of the tracts 

and the density of the subdivision is such that the land 

is unlikely to return to the previous agricultural use, unless 

the producers on the farm demonstrate that the land— 

(i) remains devoted to commercial agricultural 

production; or 

(ii) is likely to be returned to the previous agricultural use. 

(B) REQUIREMENT.—The Secretary shall establish 

procedures to identify land described in subparagraph (A). 

(3) REVIEW AND REPORT.—Each year, to ensure, to the 

maximum extent practicable, that payments are received only 

by producers, the Secretary shall submit to Congress a report 

that describes the results of the actions taken under paragraph 

(2). 

(d) TREATMENT OF FARMS WITH LIMITED BASE ACRES.— (1) PROHIBITION ON PAYMENTS.—Except as provided in 

paragraph (2) and notwithstanding any other provision of this 

title, a producer on a farm may not receive direct payments, 

counter-cyclical payments, or average crop revenue election payments if the sum of the base acres of the farm is 10 acres 

or less, as determined by the Secretary. 

(2) EXCEPTIONS.—Paragraph (1) shall not apply to a farm 

owned by— 

(A) a socially disadvantaged farmer or rancher (as 

defined in section 355(e) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2003(e)); or 

(B) a limited resource farmer or rancher, as defined 

by the Secretary. 

(3) DATA COLLECTION AND PUBLICATION.—The Secretary 

shall— 
H. R. 2419—48 

(A) collect and publish segregated data and survey 

information about the farm profiles, utilization of land, 

and crop production; and 

(B) perform an evaluation on the supply and price 

of fruits and vegetables based on the effects of suspension 

of base acres under this section. 

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS. 

(a) PAYMENT REQUIRED.—For each of the 2008 through 2012 

crop years for peanuts, the Secretary shall make direct payments 

to the producers on a farm for which a payment yield and base 

acres for peanuts are established. 

(b) PAYMENT RATE.—Except as provided in section 1105, the 

payment rate used to make direct payments with respect to peanuts 

for a crop year shall be equal to $36 per ton. 

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

be paid to the producers on a farm for peanuts for a crop year 

shall be equal to the product of the following: 

(1) The payment rate specified in subsection (b). 

(2) The payment acres on the farm. 

(3) The payment yield for the farm. 

(d) TIME FOR PAYMENT.— (1) IN GENERAL.—Except as provided in paragraph (2), in 

the case of each of the 2008 through 2012 crop years, the 

Secretary may not make direct payments under this section 

before October 1 of the calendar year in which the crop is 

harvested. 

(2) ADVANCE PAYMENTS.— (A) OPTION.— (i) IN GENERAL.—At the option of the producers 

on a farm, the Secretary shall pay in advance up 

to 22 percent of the direct payment for peanuts for 

any of the 2008 through 2011 crop years to the producers on a farm. 

(ii) 2008 CROP YEAR.—If the producers on a farm 

elect to receive advance direct payments under clause 

(i) for peanuts for the 2008 crop year, as soon as 

practicable after the election, the Secretary shall make 

the advance direct payment to the producers on the 

farm. 

(B) MONTH.— 

(i) SELECTION.—Subject to clauses (ii) and (iii), 

the producers on a farm shall select the month during 

which the advance payment for a crop year will be 

made. 

(ii) OPTIONS.—The month selected may be any 

month during the period— 

(I) beginning on December 1 of the calendar 

year before the calendar year in which the crop 

of peanuts is harvested; and 

(II) ending during the month within which 

the direct payment would otherwise be made. 

(iii) CHANGE.—The producers on a farm may 

change the selected month for a subsequent advance 

payment by providing advance notice to the Secretary. 

(3) REPAYMENT OF ADVANCE PAYMENTS.—If a producer on 

a farm that receives an advance direct payment for a crop 
H. R. 2419—49 

year ceases to be a producer on that farm, or the extent to 

which the producer shares in the risk of producing a crop 

changes, before the date the remainder of the direct payment 

is made, the producer shall be responsible for repaying the 

Secretary the applicable amount of the advance payment, as 

determined by the Secretary. 

SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS. 

(a) PAYMENT REQUIRED.—Except as provided in section 1105, 

for each of the 2008 through 2012 crop years for peanuts, the 

Secretary shall make counter-cyclical payments to producers on 

farms for which payment yields and base acres for peanuts are 

established if the Secretary determines that the effective price 

for peanuts is less than the target price for peanuts. 

(b) EFFECTIVE PRICE.—For purposes of subsection (a), the effective price for peanuts is equal to the sum of the following: 

(1) The higher of the following: 

(A) The national average market price for peanuts 

received by producers during the 12-month marketing year 

for peanuts, as determined by the Secretary. 

(B) The national average loan rate for a marketing 

assistance loan for peanuts in effect for the applicable 

period under this subtitle. 

(2) The payment rate in effect for peanuts under section 

1303 for the purpose of making direct payments. 

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

price for peanuts shall be equal to $495 per ton. 

(d) PAYMENT RATE.—The payment rate used to make countercyclical payments for a crop year shall be equal to the difference 

between— 

(1) the target price for peanuts; and 

(2) the effective price determined under subsection (b) for 

peanuts. 

(e) PAYMENT AMOUNT.—If counter-cyclical payments are 

required to be paid for any of the 2008 through 2012 crops of 

peanuts, the amount of the counter-cyclical payment to be paid 

to the producers on a farm for that crop year shall be equal 

to the product of the following: 

(1) The payment rate specified in subsection (d). 

(2) The payment acres on the farm. 

(3) The payment yield for the farm. 

(f) TIME FOR PAYMENTS.— 

(1) GENERAL RULE.—Except as provided in paragraph (2), 

if the Secretary determines under subsection (a) that countercyclical payments are required to be made under this section 

for a crop of peanuts, beginning October 1, or as soon as 

practicable after the end of the marketing year, the Secretary 

shall make the counter-cyclical payments for the crop. 

(2) AVAILABILITY OF PARTIAL PAYMENTS.— (A) IN GENERAL.—If, before the end of the 12-month 

marketing year, the Secretary estimates that countercyclical payments will be required under this section for 

a crop year, the Secretary shall give producers on a farm 

the option to receive partial payments of the countercyclical payment projected to be made for the crop. 

(B) ELECTION.— 
H. R. 2419—50 

(i) IN GENERAL.—The Secretary shall allow producers on a farm to make an election to receive partial 

payments under subparagraph (A) at any time but 

not later than 60 days prior to the end of the marketing 

year for the crop. 

(ii) DATE OF ISSUANCE.—The Secretary shall issue 

the partial payment after the date of an announcement 

by the Secretary but not later than 30 days prior 

to the end of the marketing year. 

(3) TIME FOR PARTIAL PAYMENTS.—When the Secretary 

makes partial payments for any of the 2008 through 2010 

crop years— 

(A) the first partial payment shall be made after 

completion of the first 180 days of the marketing year 

for that crop; and 

(B) the final partial payment shall be made beginning 

October 1, or as soon as practicable thereafter, after the 

end of the applicable marketing year for that crop. 

(4) AMOUNT OF PARTIAL PAYMENTS.— 

(A) FIRST PARTIAL PAYMENT.—For each of the 2008 

through 2010 crop years, the first partial payment under 

paragraph (3) to the producers on a farm may not exceed 

40 percent of the projected counter-cyclical payment for 

the crop year, as determined by the Secretary. 

(B) FINAL PAYMENT.—The final payment for a crop 

year shall be equal to the difference between— 

(i) the actual counter-cyclical payment to be made 

to the producers for that crop year; and 

(ii) the amount of the partial payment made to 

the producers under subparagraph (A). 

(5) REPAYMENT.—The producers on a farm that receive 

a partial payment under this subsection for a crop year shall 

repay to the Secretary the amount, if any, by which the total 

of the partial payments exceed the actual counter-cyclical payment to be made for that crop year. 

SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON 

PROVISION OF PAYMENTS. 

(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

(1) REQUIREMENTS.—Before the producers on a farm may 

receive direct payments or counter-cyclical payments under this 

subtitle, or average crop revenue election payments under section 1105, with respect to the farm, the producers shall agree, 

during the crop year for which the payments are made and 

in exchange for the payments— 

(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security 

Act of 1985 (16 U.S.C. 3811 et seq.); 

(B) to comply with applicable wetland protection 

requirements under subtitle C of title XII of that Act (16 

U.S.C. 3821 et seq.); 

(C) to comply with the planting flexibility requirements 

of section 1306; 

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

to the attributable base acres for peanuts and any base 

acres for the farm under subtitle A, for an agricultural 
H. R. 2419—51 

or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as determined by the 

Secretary; and 

(E) to effectively control noxious weeds and otherwise 

maintain the land in accordance with sound agricultural 

practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any 

portion of the land referred to in subparagraph (D). 

(2) COMPLIANCE.—The Secretary may issue such rules as 

the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1). 

(3) MODIFICATION.—At the request of the transferee or 

owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives 

of this subsection, as determined by the Secretary. 

(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— (1) TERMINATION.— (A) IN GENERAL.—Except as provided in paragraph (2), 

a transfer of (or change in) the interest of the producers 

on a farm in the base acres for peanuts for which direct 

payments or counter-cyclical payments are made, or on 

which average crop revenue election payments are based, 

shall result in the termination of the direct payments, 

counter-cyclical payments, or average crop revenue election 

payments to the extent the payments are made or based 

on the base acres, unless the transferee or owner of the 

acreage agrees to assume all obligations under subsection 

(a). 

(B) EFFECTIVE DATE.—The termination shall take effect 

on the date determined by the Secretary. 

(2) EXCEPTION.—If a producer entitled to a direct payment, 

counter-cyclical payment, or average crop revenue election payment dies, becomes incompetent, or is otherwise unable to 

receive the payment, the Secretary shall make the payment, 

in accordance with rules issued by the Secretary. 

(c) ACREAGE REPORTS.— 

(1) IN GENERAL.—As a condition on the receipt of any 

benefits under this subtitle, the Secretary shall require producers on a farm to submit to the Secretary annual acreage 

reports with respect to all cropland on the farm. 

(2) PENALTIES.—No penalty with respect to benefits under 

this subtitle shall be assessed against the producers on a farm 

for an inaccurate acreage report unless the producers on the 

farm knowingly and willfully falsified the acreage report. 

(d) TENANTS AND SHARECROPPERS.—In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect 

the interests of tenants and sharecroppers. 

(e) SHARING OF PAYMENTS.—The Secretary shall provide for 

the sharing of direct payments, counter-cyclical payments, or average crop revenue election payments under section 1105 among 

the producers on a farm on a fair and equitable basis. 

SEC. 1306. PLANTING FLEXIBILITY. 

(a) PERMITTED CROPS.—Subject to subsection (b), any commodity or crop may be planted on the base acres for peanuts 

on a farm. 

(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.— 
H. R. 2419—52 

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

commodity specified in paragraph (3) shall be prohibited on 

base acres for peanuts unless the commodity, if planted, is 

destroyed before harvest. 

(2) TREATMENT OF TREES AND OTHER PERENNIALS.—The 

planting of an agricultural commodity specified in paragraph 

(3) that is produced on a tree or other perennial plant shall 

be prohibited on base acres for peanuts. 

(3) COVERED AGRICULTURAL COMMODITIES.—Paragraphs (1) 

and (2) apply to the following agricultural commodities: 

(A) Fruits. 

(B) Vegetables (other than mung beans and pulse 

crops). 

(C) Wild rice. 

(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall 

not limit the planting of an agricultural commodity specified in 

paragraph (3) of that subsection— 

(1) in any region in which there is a history of doublecropping of peanuts with agricultural commodities specified 

in subsection (b)(3), as determined by the Secretary, in which 

case the double-cropping shall be permitted; 

(2) on a farm that the Secretary determines has a history 

of planting agricultural commodities specified in subsection 

(b)(3) on the base acres for peanuts, except that direct payments 

and counter-cyclical payments shall be reduced by an acre 

for each acre planted to such an agricultural commodity; or 

(3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that— 

(A) the quantity planted may not exceed the average 

annual planting history of such agricultural commodity 

by the producers on the farm in the 1991 through 1995 

or 1998 through 2001 crop years (excluding any crop year 

in which no plantings were made), as determined by the 

Secretary; and 

(B) direct payments and counter-cyclical payments 

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

agricultural commodity. 

SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 

PAYMENTS FOR PEANUTS. 

(a) NONRECOURSE LOANS AVAILABLE.— 

(1) AVAILABILITY.—For each of the 2008 through 2012 crops 

of peanuts, the Secretary shall make available to producers 

on a farm nonrecourse marketing assistance loans for peanuts 

produced on the farm. 

(2) TERMS AND CONDITIONS.—The loans shall be made 

under terms and conditions that are prescribed by the Secretary 

and at the loan rate established under subsection (b). 

(3) ELIGIBLE PRODUCTION.—The producers on a farm shall 

be eligible for a marketing assistance loan under this subsection 

for any quantity of peanuts produced on the farm. 

(4) OPTIONS FOR OBTAINING LOAN.—A marketing assistance 

loan under this subsection, and loan deficiency payments under 

subsection (e), may be obtained at the option of the producers 

on a farm through— 
H. R. 2419—53 

(A) a designated marketing association or marketing 

cooperative of producers that is approved by the Secretary; 

or 

(B) the Farm Service Agency. 

(5) STORAGE OF LOAN PEANUTS.—As a condition on the 

Secretary’s approval of an individual or entity to provide storage 

for peanuts for which a marketing assistance loan is made 

under this section, the individual or entity shall agree— 

(A) to provide such storage on a nondiscriminatory 

basis; and 

(B) to comply with such additional requirements as 

the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section. 

(6) STORAGE, HANDLING, AND ASSOCIATED COSTS.— (A) IN GENERAL.—Beginning with the 2008 crop of 

peanuts, to ensure proper storage of peanuts for which 

a loan is made under this section, the Secretary shall 

pay handling and other associated costs (other than storage 

costs) incurred at the time at which the peanuts are placed 

under loan, as determined by the Secretary. 

(B) REDEMPTION AND FORFEITURE.—The Secretary 

shall— 

(i) require the repayment of handling and other 

associated costs paid under subparagraph (A) for all 

peanuts pledged as collateral for a loan that is 

redeemed under this section; and 

(ii) pay storage, handling, and other associated 

costs for all peanuts pledged as collateral that are 

forfeited under this section. 

(7) MARKETING.—A marketing association or cooperative 

may market peanuts for which a loan is made under this 

section in any manner that conforms to consumer needs, 

including the separation of peanuts by type and quality. 

(b) LOAN RATE.—Except as provided in section 1105, the loan 

rate for a marketing assistance loan for peanuts under subsection 

(a) shall be equal to $355 per ton. 

(c) TERM OF LOAN.— 

(1) IN GENERAL.—A marketing assistance loan for peanuts 

under subsection (a) shall have a term of 9 months beginning 

on the first day of the first month after the month in which 

the loan is made. 

(2) EXTENSIONS PROHIBITED.—The Secretary may not 

extend the term of a marketing assistance loan for peanuts 

under subsection (a). 

(d) REPAYMENT RATE.— 

(1) IN GENERAL.—The Secretary shall permit producers on 

a farm to repay a marketing assistance loan for peanuts under 

subsection (a) at a rate that is the lesser of— 

(A) the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with 

section 163 of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7283)); or 

(B) a rate that the Secretary determines will— 

(i) minimize potential loan forfeitures; 

(ii) minimize the accumulation of stocks of peanuts 

by the Federal Government; 
H. R. 2419—54 

(iii) minimize the cost incurred by the Federal 

Government in storing peanuts; and 

(iv) allow peanuts produced in the United States 

to be marketed freely and competitively, both domestically and internationally. 

(2) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT

RATES.— 

(A) ADJUSTMENT AUTHORITY.—In the event of a severe 

disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate 

otherwise applicable under this subsection for marketing 

assistance loans for peanuts under subsection (a). 

(B) DURATION.—An adjustment made under subparagraph (A) in the repayment rate for marketing assistance 

loans for peanuts shall be in effect on a short-term and 

temporary basis, as determined by the Secretary. 

(e) LOAN DEFICIENCY PAYMENTS.— 

(1) AVAILABILITY.—The Secretary may make loan deficiency 

payments available to producers on a farm that, although 

eligible to obtain a marketing assistance loan for peanuts under 

subsection (a), agree to forgo obtaining the loan for the peanuts 

in return for loan deficiency payments under this subsection. 

(2) COMPUTATION.—A loan deficiency payment under this 

subsection shall be computed by multiplying— 

(A) the payment rate determined under paragraph (3) 

for peanuts; by 

(B) the quantity of the peanuts produced by the producers, excluding any quantity for which the producers 

obtain a marketing assistance loan under subsection (a). 

(3) PAYMENT RATE.—For purposes of this subsection, the 

payment rate shall be the amount by which— 

(A) the loan rate established under subsection (b); 

exceeds 

(B) the rate at which a loan may be repaid under 

subsection (d). 

(4) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.— 

The Secretary shall determine the amount of the loan deficiency 

payment to be made under this subsection to the producers 

on a farm with respect to a quantity of peanuts using the 

payment rate in effect under paragraph (3) as of the date 

the producers request the payment. 

(f) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS.—As a condition of the receipt of a marketing assistance 

loan under subsection (a), the producer shall comply with applicable 

conservation requirements under subtitle B of title XII of the Food 

Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland 

protection requirements under subtitle C of title XII of that Act 

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

(g) REIMBURSABLE AGREEMENTS AND PAYMENT OF ADMINISTRATIVE EXPENSES.—The Secretary may implement any reimbursable 

agreements or provide for the payment of administrative expenses 

under this subtitle only in a manner that is consistent with such 

activities in regard to other commodities. 
H. R. 2419—55 

SEC. 1308. ADJUSTMENTS OF LOANS. 

(a) ADJUSTMENT AUTHORITY.—The Secretary may make appropriate adjustments in the loan rates for peanuts for differences 

in grade, type, quality, location, and other factors. 

(b) MANNER OF ADJUSTMENT.—The adjustments under subsection (a) shall, to the maximum extent practicable, be made 

in such a manner that the average loan level for peanuts will, 

on the basis of the anticipated incidence of the factors, be equal 

to the level of support determined in accordance with this subtitle 

and subtitles B, D, and E. 

(c) ADJUSTMENT ON COUNTY BASIS.— 

(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

may establish loan rates for a crop of peanuts for producers 

in individual counties in a manner that results in the lowest 

loan rate being 95 percent of the national average loan rate, 

if those loan rates do not result in an increase in outlays. 

(2) PROHIBITION.—Adjustments under this subsection shall 

not result in an increase in the national average loan rate 

for any year. 

Subtitle D—Sugar 

SEC. 1401. SUGAR PROGRAM. 

(a) IN GENERAL.—Section 156 of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended 

to read as follows: 

‘‘SEC. 156. SUGAR PROGRAM. 

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

to processors of domestically grown sugarcane at a rate equal to— 

‘‘(1) 18.00 cents per pound for raw cane sugar for the 

2008 crop year; 

‘‘(2) 18.25 cents per pound for raw cane sugar for the 

2009 crop year; 

‘‘(3) 18.50 cents per pound for raw cane sugar for the 

2010 crop year; 

‘‘(4) 18.75 cents per pound for raw cane sugar for the 

2011 crop year; and 

‘‘(5) 18.75 cents per pound for raw cane sugar for the 

2012 crop year. 

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

to processors of domestically grown sugar beets at a rate equal 

to— 

‘‘(1) 22.9 cents per pound for refined beet sugar for the 

2008 crop year; and 

‘‘(2) a rate that is equal to 128.5 percent of the loan rate 

per pound of raw cane sugar for the applicable crop year under 

subsection (a) for each of the 2009 through 2012 crop years. 

‘‘(c) TERM OF LOANS.— 

‘‘(1) IN GENERAL.—A loan under this section during any 

fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of— 

‘‘(A) the end of the 9-month period beginning on the 

first day of the first month after the month in which 

the loan is made; or 
H. R. 2419—56 

‘‘(B) the end of the fiscal year in which the loan is 

made. 

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

under this section in the last 3 months of a fiscal year, the 

processor may repledge the sugar as collateral for a second 

loan in the subsequent fiscal year, except that the second 

loan shall— 

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

the first loan was made; and 

‘‘(B) mature in 9 months less the quantity of time 

that the first loan was in effect. 

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

‘‘(1) NONRECOURSE LOANS.—The Secretary shall carry out 

this section through the use of nonrecourse loans. 

‘‘(2) PROCESSOR ASSURANCES.— 

‘‘(A) IN GENERAL.—The Secretary shall obtain from 

each processor that receives a loan under this section such 

assurances as the Secretary considers adequate to ensure 

that the processor will provide payments to producers that 

are proportional to the value of the loan received by the 

processor for the sugar beets and sugarcane delivered by 

producers to the processor. 

‘‘(B) MINIMUM PAYMENTS.— 

‘‘(i) IN GENERAL.—Subject to clause (ii), the Secretary may establish appropriate minimum payments 

for purposes of this paragraph. 

‘‘(ii) LIMITATION.—In the case of sugar beets, the 

minimum payment established under clause (i) shall 

not exceed the rate of payment provided for under 

the applicable contract between a sugar beet producer 

and a sugar beet processor. 

‘‘(3) ADMINISTRATION.—The Secretary may not impose or 

enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, 

that has the effect of preventing a processor from electing 

to forfeit the loan collateral (of an acceptable grade and quality) 

on the maturity of the loan. 

‘‘(e) LOANS FOR IN-PROCESS SUGAR.— 

‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND SYRUPS.—In 

this subsection, the term ‘in-process sugars and syrups’ does 

not include raw sugar, liquid sugar, invert sugar, invert syrup, 

or other finished product that is otherwise eligible for a loan 

under subsection (a) or (b). 

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

loans available to processors of a crop of domestically grown 

sugarcane and sugar beets for in-process sugars and syrups 

derived from the crop. 

‘‘(3) LOAN RATE.—The loan rate shall be equal to 80 percent 

of the loan rate applicable to raw cane sugar or refined beet 

sugar, as determined by the Secretary on the basis of the 

source material for the in-process sugars and syrups. 

‘‘(4) FURTHER PROCESSING ON FORFEITURE.— 

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

in-process sugars and syrups serving as collateral for a 

loan under paragraph (2), the processor shall, within such 

reasonable time period as the Secretary may prescribe 
H. R. 2419—57 

and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar 

or refined beet sugar of acceptable grade and quality for 

sugars eligible for loans under subsection (a) or (b). 

‘‘(B) TRANSFER TO CORPORATION.—Once the in-process 

sugars and syrups are fully processed into raw cane sugar 

or refined beet sugar, the processor shall transfer the sugar 

to the Commodity Credit Corporation. 

‘‘(C) PAYMENT TO PROCESSOR.—On transfer of the 

sugar, the Secretary shall make a payment to the processor 

in an amount equal to the amount obtained by multiplying— 

‘‘(i) the difference between— 

‘‘(I) the loan rate for raw cane sugar or refined 

beet sugar, as appropriate; and 

‘‘(II) the loan rate the processor received under 

paragraph (3); by 

‘‘(ii) the quantity of sugar transferred to the Secretary. 

‘‘(5) LOAN CONVERSION.—If the processor does not forfeit 

the collateral as described in paragraph (4), but instead further 

processes the in-process sugars and syrups into raw cane sugar 

or refined beet sugar and repays the loan on the in-process 

sugars and syrups, the processor may obtain a loan under 

subsection (a) or (b) for the raw cane sugar or refined beet 

sugar, as appropriate. 

‘‘(6) TERM OF LOAN.—The term of a loan made under this 

subsection for a quantity of in-process sugars and syrups, when 

combined with the term of a loan made with respect to the 

raw cane sugar or refined beet sugar derived from the inprocess sugars and syrups, may not exceed 9 months, consistent 

with subsection (c). 

‘‘(f) AVOIDING FORFEITURES; CORPORATION INVENTORY DISPOSITION.— 

‘‘(1) IN GENERAL.—Subject to subsection (d)(3), to the maximum extent practicable, the Secretary shall operate the program established under this section at no cost to the Federal 

Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation. 

‘‘(2) INVENTORY DISPOSITION.— 

‘‘(A) IN GENERAL.—To carry out paragraph (1), the 

Commodity Credit Corporation may accept bids to obtain 

raw cane sugar or refined beet sugar in the inventory 

of the Commodity Credit Corporation from (or otherwise 

make available such commodities, on appropriate terms 

and conditions, to) processors of sugarcane and processors 

of sugar beets (acting in conjunction with the producers 

of the sugarcane or sugar beets processed by the processors) 

in return for the reduction of production of raw cane sugar 

or refined beet sugar, as appropriate. 

‘‘(B) BIOENERGY FEEDSTOCK.—If a reduction in the 

quantity of production accepted under subparagraph (A) 

involves sugar beets or sugarcane that has already been 

planted, the sugar beets or sugarcane so planted may not 

be used for any commercial purpose other than as a bioenergy feedstock. 
H. R. 2419—58 

‘‘(C) ADDITIONAL AUTHORITY.—The authority provided 

under this paragraph is in addition to any authority of 

the Commodity Credit Corporation under any other law. 

‘‘(g) INFORMATION REPORTING.— 

‘‘(1) DUTY OF PROCESSORS AND REFINERS TO REPORT.—A 

sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such 

information as the Secretary may require to administer sugar 

programs, including the quantity of purchases of sugarcane, 

sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar. 

‘‘(2) DUTY OF PRODUCERS TO REPORT.— 

‘‘(A) PROPORTIONATE SHARE STATES.—As a condition 

of a loan made to a processor for the benefit of a producer, 

the Secretary shall require each producer of sugarcane 

located in a State (other than the Commonwealth of Puerto 

Rico) in which there are in excess of 250 producers of 

sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane 

of the producer. 

‘‘(B) OTHER STATES.—The Secretary may require each 

producer of sugarcane or sugar beets not covered by 

subparagraph (A) to report, in a manner prescribed by 

the Secretary, the yields of, and acres planted to, sugarcane 

or sugar beets, respectively, of the producer. 

‘‘(3) DUTY OF IMPORTERS TO REPORT.— 

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

(B), the Secretary shall require an importer of sugars, 

syrups, or molasses to be used for human consumption 

or to be used for the extraction of sugar for human 

consumption to report, in the manner prescribed by the 

Secretary, the quantities of the products imported by the 

importer and the sugar content or equivalent of the products. 

‘‘(B) TARIFF-RATE QUOTAS.—Subparagraph (A) shall not 

apply to sugars, syrups, or molasses that are within the 

quantities of tariff-rate quotas that are subject to the lower 

rate of duties. 

‘‘(4) COLLECTION OF INFORMATION ON MEXICO.— 

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

‘‘(i) information on the production, consumption, 

stocks, and trade of sugar in Mexico, including United 

States exports of sugar to Mexico; and 

‘‘(ii) publicly available information on Mexican 

production, consumption, and trade of high fructose 

corn syrups. 

‘‘(B) PUBLICATION.—The data collected under subparagraph (A) shall be published in each edition of the World 

Agricultural Supply and Demand Estimates. 

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

furnish the information required to be reported by paragraph 

(1), (2), or (3), or furnishing willfully false information, shall 

be subject to a civil penalty of not more than $10,000 for 

each such violation. 

‘‘(6) MONTHLY REPORTS.—Taking into consideration the 

information received under this subsection, the Secretary shall 
H. R. 2419—59 

publish on a monthly basis composite data on production, 

imports, distribution, and stock levels of sugar. 

‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule 

of the United States and the reexport programs and polyhydric 

alcohol program administered by the Secretary, all refined sugars 

(whether derived from sugar beets or sugarcane) produced by cane 

sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under 

those programs. 

‘‘(i) EFFECTIVE PERIOD.—This section shall be effective only 

for the 2008 through 2012 crops of sugar beets and sugarcane.’’. 

(b) TRANSITION.—The Secretary shall make loans for raw cane 

sugar and refined beet sugar available for the 2007 crop year 

on the terms and conditions provided in section 156 of the Federal 

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

as in effect on the day before the date of enactment of this Act. 

SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL 

SUGAR ORGANIZATION. 

The Secretary shall work with the Secretary of State to restore 

United States membership in the International Sugar Organization 

not later than 1 year after the date of enactment of this Act. 

SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR. 

(a) DEFINITIONS.—Section 359a of the Agricultural Adjustment 

Act of 1938 (7 U.S.C. 1359aa) is amended— 

(1) by redesignating paragraphs (1), (2), (3), and (4) as 

paragraphs (2), (4), (5), and (6), respectively; 

(2) by inserting before paragraph (2) (as so redesignated) 

the following: 

‘‘(1) HUMAN CONSUMPTION.—The term ‘human consumption’, when used in the context of a reference to sugar (whether 

in the form of sugar, in-process sugar, syrup, molasses, or 

in some other form) for human consumption, includes sugar 

for use in human food, beverages, or similar products.’’; and 

(3) by inserting after paragraph (2) (as so redesignated) 

the following: 

‘‘(3) MARKET.— ‘‘(A) IN GENERAL.—The term ‘market’ means to sell 

or otherwise dispose of in commerce in the United States. 

‘‘(B) INCLUSIONS.—The term ‘market’ includes— 

‘‘(i) the forfeiture of sugar under the loan program 

for sugar established under section 156 of the Federal 

Agriculture Improvement and Reform Act of 1996 (7 

U.S.C. 7272); 

‘‘(ii) with respect to any integrated processor and 

refiner, the movement of raw cane sugar into the 

refining process; and 

‘‘(iii) the sale of sugar for the production of ethanol 

or other bioenergy product, if the disposition of the 

sugar is administered by the Secretary under section 

9010 of the Farm Security and Rural Investment Act 

of 2002. 

‘‘(C) MARKETING YEAR.—Forfeited sugar described in 

subparagraph (B)(i) shall be considered to have been marketed during the crop year for which a loan is made under 

the loan program described in that subparagraph.’’. 
H. R. 2419—60 

(b) FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.—Section 

359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) 

is amended to read as follows: 

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

‘‘(a) SUGAR ESTIMATES.— 

‘‘(1) IN GENERAL.—Not later than August 1 before the beginning of each of the 2008 through 2012 crop years for sugarcane 

and sugar beets, the Secretary shall estimate— 

‘‘(A) the quantity of sugar that will be subject to human 

consumption in the United States during the crop year; 

‘‘(B) the quantity of sugar that would provide for 

reasonable carryover stocks; 

‘‘(C) the quantity of sugar that will be available from 

carry-in stocks for human consumption in the United States 

during the crop year; 

‘‘(D) the quantity of sugar that will be available from 

the domestic processing of sugarcane, sugar beets, and 

in-process beet sugar; and 

‘‘(E) the quantity of sugars, syrups, and molasses that 

will be imported for human consumption or to be used 

for the extraction of sugar for human consumption in the 

United States during the crop year, whether the articles 

are under a tariff-rate quota or are in excess or outside 

of a tariff-rate quota. 

‘‘(2) EXCLUSION.—The estimates under this subsection shall 

not apply to sugar imported for the production of polyhydric 

alcohol or to any sugar refined and reexported in refined form 

or in products containing sugar. 

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

of sugar consumption, stocks, production, and imports for a 

crop year as necessary, but not later than the beginning of 

each of the second through fourth quarters of the crop year. 

‘‘(b) SUGAR ALLOTMENTS.— 

‘‘(1) ESTABLISHMENT.—By the beginning of each crop year, 

the Secretary shall establish for that crop year appropriate 

allotments under section 359c for the marketing by processors 

of sugar processed from sugar cane or sugar beets or in-process 

beet sugar (whether the sugar beets or in-process beet sugar 

was produced domestically or imported) at a level that is— 

‘‘(A) sufficient to maintain raw and refined sugar prices 

above forfeiture levels so that there will be no forfeitures 

of sugar to the Commodity Credit Corporation under the 

loan program for sugar established under section 156 of 

the Federal Agriculture Improvement and Reform Act of 

1996 (7 U.S.C. 7272); but 

‘‘(B) not less than 85 percent of the estimated quantity 

of sugar for domestic human consumption for the crop 

year. 

‘‘(2) PRODUCTS.—The Secretary may include sugar products, 

the majority content of which is sucrose for human consumption, derived from sugar cane, sugar beets, molasses, or sugar 

in the allotments established under paragraph (1) if the Secretary determines it to be appropriate for purposes of this 

part. 

‘‘(c) COVERAGE OF ALLOTMENTS.— 
H. R. 2419—61 

‘‘(1) IN GENERAL.—The marketing allotments under this 

part shall apply to the marketing by processors of sugar 

intended for domestic human consumption that has been processed from sugar cane, sugar beets, or in-process beet sugar, 

whether such sugar beets or in-process beet sugar was produced 

domestically or imported. 

‘‘(2) EXCEPTIONS.—Consistent with the administration of 

marketing allotments for each of the 2002 through 2007 crop 

years, the marketing allotments shall not apply to sugar sold— 

‘‘(A) to facilitate the exportation of the sugar to a 

foreign country, except that the exports of sugar shall 

not be eligible to receive credits under reexport programs 

for refined sugar or sugar containing products administered 

by the Secretary; 

‘‘(B) to enable another processor to fulfill an allocation 

established for that processor; or 

‘‘(C) for uses other than domestic human consumption, 

except for the sale of sugar for the production of ethanol 

or other bioenergy if the disposition of the sugar is administered by the Secretary under section 9010 of the Farm 

Security and Rural Investment Act of 2002. 

‘‘(3) REQUIREMENT.—The sale of sugar described in paragraph (2)(B) shall be— 

‘‘(A) made prior to May 1; and 

‘‘(B) reported to the Secretary. 

‘‘(d) PROHIBITIONS.— ‘‘(1) IN GENERAL.—During all or part of any crop year 

for which marketing allotments have been established, no processor of sugar beets or sugarcane shall market for domestic 

human consumption a quantity of sugar in excess of the allocation established for the processor, except— 

‘‘(A) to enable another processor to fulfill an allocation 

established for that other processor; or 

‘‘(B) to facilitate the exportation of the sugar. 

‘‘(2) CIVIL PENALTY.—Any processor who knowingly violates 

paragraph (1) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the 

United States market value, at the time of the commission 

of the violation, of that quantity of sugar involved in the violation.’’. 

(c) ESTABLISHMENT OF FLEXIBLE MARKETING ALLOTMENTS.— 

Section 359c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 

1359cc) is amended— 

(1) by striking subsection (b) and inserting the following: 

‘‘(b) OVERALL ALLOTMENT QUANTITY.— 

‘‘(1) IN GENERAL.—The Secretary shall establish the overall 

quantity of sugar to be allotted for the crop year (referred 

to in this part as the ‘overall allotment quantity’) at a level 

that is— 

‘‘(A) sufficient to maintain raw and refined sugar prices 

above forfeiture levels to avoid forfeiture of sugar to the 

Commodity Credit Corporation; but 

‘‘(B) not less than a quantity equal to 85 percent of 

the estimated quantity of sugar for domestic human 

consumption for the crop year. 

‘‘(2) ADJUSTMENT.—Subject to paragraph (1), the Secretary 

shall adjust the overall allotment quantity to maintain— 
H. R. 2419—62 

‘‘(A) raw and refined sugar prices above forfeiture levels 

to avoid the forfeiture of sugar to the Commodity Credit 

Corporation; and 

‘‘(B) adequate supplies of raw and refined sugar in 

the domestic market.’’; 

(2) in subsection (d)(2), by inserting ‘‘or in-process beet 

sugar’’ before the period at the end; 

(3) in subsection (g)(1)— 

(A) by striking ‘‘(1) IN GENERAL.—The Secretary’’ and 

inserting the following: 

‘‘(1) ADJUSTMENTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary’’; and 

(B) by adding at the end the following: 

‘‘(B) LIMITATION.—In carrying out subparagraph (A), 

the Secretary may not reduce the overall allotment quantity 

to a quantity of less than 85 percent of the estimated 

quantity of sugar for domestic human consumption for 

the crop year.’’; and 

(4) by striking subsection (h). 

(d) ALLOCATION OF MARKETING ALLOTMENTS.—Section 359d(b) 

of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) 

is amended— 

(1) in paragraph (1)(F), by striking ‘‘Except as otherwise 

provided in section 359f(c)(8), if’’ and inserting ‘‘If’’; and 

(2) in paragraph (2), by striking subparagraphs (G), (H), 

and (I) and inserting the following: 

‘‘(G) SALE OF FACTORIES OF A PROCESSOR TO ANOTHER

PROCESSOR.— 

‘‘(i) EFFECT OF SALE.—Subject to subparagraphs 

(E) and (F), if 1 or more factories of a processor of 

beet sugar (but not all of the assets of the processor) 

are sold to another processor of beet sugar during 

a crop year, the Secretary shall assign a pro rata 

portion of the allocation of the seller to the allocation 

of the buyer to reflect the historical contribution of 

the production of the sold 1 or more factories to the 

total allocation of the seller, unless the buyer and 

the seller have agreed upon the transfer of a different 

portion of the allocation of the seller, in which case, 

the Secretary shall transfer that portion agreed upon 

by the buyer and seller. 

‘‘(ii) APPLICATION OF ALLOCATION.—The assignment of the allocation under clause (i) shall apply— 

‘‘(I) during the remainder of the crop year 

for which the sale described in clause (i) occurs; 

and 

‘‘(II) during each subsequent crop year. 

‘‘(iii) USE OF OTHER FACTORIES TO FILL ALLOCATION.—If the assignment of the allocation under clause 

(i) to the buyer for the 1 or more purchased factories 

cannot be filled by the production of the 1 or more 

purchased factories, the remainder of the allocation 

may be filled by beet sugar produced by the buyer 

from other factories of the buyer. 
H. R. 2419—63 

‘‘(H) NEW ENTRANTS STARTING PRODUCTION, 

REOPENING, OR ACQUIRING AN EXISTING FACTORY WITH

PRODUCTION HISTORY.— 

‘‘(i) DEFINITION OF NEW ENTRANT.— 

‘‘(I) IN GENERAL.—In this subparagraph, the 

term ‘new entrant’ means an individual, corporation, or other entity that— 

‘‘(aa) does not have an allocation of the 

beet sugar allotment under this part; 

‘‘(bb) is not affiliated with any other individual, corporation, or entity that has an 

allocation of beet sugar under this part 

(referred to in this clause as a ‘third party’); 

and 

‘‘(cc) will process sugar beets produced by 

sugar beet growers under contract with the 

new entrant for the production of sugar at 

the new or re-opened factory that is the basis 

for the new entrant allocation. 

‘‘(II) AFFILIATION.—For purposes of subclause 

(I)(bb), a new entrant and a third party shall be 

considered to be affiliated if— 

‘‘(aa) the third party has an ownership 

interest in the new entrant; 

‘‘(bb) the new entrant and the third party 

have owners in common; 

‘‘(cc) the third party has the ability to 

exercise control over the new entrant by 

organizational rights, contractual rights, or 

any other means; 

‘‘(dd) the third party has a contractual 

relationship with the new entrant by which 

the new entrant will make use of the facilities 

or assets of the third party; or 

‘‘(ee) there are any other similar circumstances by which the Secretary determines 

that the new entrant and the third party are 

affiliated. 

‘‘(ii) ALLOCATION FOR A NEW ENTRANT THAT HAS

CONSTRUCTED A NEW FACTORY OR REOPENED A FACTORY

THAT WAS NOT OPERATED SINCE BEFORE 1998.—If a new 

entrant constructs a new sugar beet processing factory, 

or acquires and reopens a sugar beet processing factory 

that last processed sugar beets prior to the 1998 crop 

year and there is no allocation currently associated 

with the factory, the Secretary shall— 

‘‘(I) assign an allocation for beet sugar to the 

new entrant that provides a fair and equitable 

distribution of the allocations for beet sugar so 

as to enable the new entrant to achieve a factory 

utilization rate comparable to the factory utilization rates of other similarly-situated processors; 

and 

‘‘(II) reduce the allocations for beet sugar of 

all other processors on a pro rata basis to reflect 

the allocation to the new entrant. 
H. R. 2419—64 

‘‘(iii) ALLOCATION FOR A NEW ENTRANT THAT HAS

ACQUIRED AN EXISTING FACTORY WITH A PRODUCTION

HISTORY.— 

‘‘(I) IN GENERAL.—If a new entrant acquires 

an existing factory that has processed sugar beets 

from the 1998 or subsequent crop year and has 

a production history, on the mutual agreement 

of the new entrant and the company currently 

holding the allocation associated with the factory, 

the Secretary shall transfer to the new entrant 

a portion of the allocation of the current allocation 

holder to reflect the historical contribution of the 

production of the 1 or more sold factories to the 

total allocation of the current allocation holder, 

unless the new entrant and current allocation 

holder have agreed upon the transfer of a different 

portion of the allocation of the current allocation 

holder, in which case, the Secretary shall transfer 

that portion agreed upon by the new entrant and 

the current allocation holder. 

‘‘(II) PROHIBITION.—In the absence of a mutual 

agreement described in subclause (I), the new 

entrant shall be ineligible for a beet sugar allocation. 

‘‘(iv) APPEALS.—Any decision made under this subsection may be appealed to the Secretary in accordance 

with section 359i.’’. 

(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended 

in paragraphs (1)(D) and (2)(C), by inserting ‘‘of raw cane sugar’’ 

after ‘‘imports’’ each place it appears. 

(f) PROVISIONS APPLICABLE TO PRODUCERS.—Section 359f(c) of 

the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is 

amended— 

(1) by striking paragraph (8); 

(2) by redesignating paragraphs (1) through (7) as paragraphs (2) through (8), respectively; 

(3) by inserting before paragraph (2) (as so redesignated) 

the following: 

‘‘(1) DEFINITION OF SEED.— 

‘‘(A) IN GENERAL.—In this subsection, the term ‘seed’ 

means only those varieties of seed that are dedicated to 

the production of sugarcane from which is produced sugar 

for human consumption. 

‘‘(B) EXCLUSION.—The term ‘seed’ does not include seed 

of a high-fiber cane variety dedicated to other uses, as 

determined by the Secretary’’; 

(4) in paragraph (3) (as so redesignated)— 

(A) in the first sentence— 

(i) by striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (2)’’; and 

(ii) by inserting ‘‘sugar produced from’’ after 

‘‘quantity of’’; and 

(B) in the second sentence, by striking ‘‘paragraph 

(7)’’ and inserting ‘‘paragraph (8)’’; 
H. R. 2419—65 

(5) in the first sentence of paragraph (6)(C) (as so redesignated), by inserting ‘‘for sugar’’ before ‘‘in excess of the farm’s 

proportionate share’’; and 

(6) in paragraph (8) (as so redesignated), by inserting 

‘‘sugar from’’ after ‘‘the amount of’’. 

(g) SPECIAL RULES.—Section 359g of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended— 

(1) by striking subsection (a) and inserting the following: 

‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.— 

‘‘(1) TRANSFER AUTHORIZED.—For the purpose of establishing proportionate shares for sugarcane farms under section 

359f(c), the Secretary, on application of any producer, with 

the written consent of all owners of a farm, may transfer 

the acreage base history of the farm to any other parcels 

of land of the applicant. 

‘‘(2) CONVERTED ACREAGE BASE.— 

‘‘(A) IN GENERAL.—Sugarcane acreage base established 

under section 359f(c) that has been or is converted to 

nonagricultural use on or after May 13, 2002, may be 

transferred to other land suitable for the production of 

sugarcane that can be delivered to a processor in a proportionate share State in accordance with this paragraph. 

‘‘(B) NOTIFICATION.—Not later than 90 days after the 

Secretary becomes aware of a conversion of any sugarcane 

acreage base to a nonagricultural use, the Secretary shall 

notify the 1 or more affected landowners of the transferability of the applicable sugarcane acreage base. 

‘‘(C) INITIAL TRANSFER PERIOD.—The owner of the base 

attributable to the acreage at the time of the conversion 

shall be afforded 90 days from the date of the receipt 

of the notification under subparagraph (B) to transfer the 

base to 1 or more farms owned by the owner. 

‘‘(D) GROWER OF RECORD.—If a transfer under subparagraph (C) cannot be accomplished during the period specified in that subparagraph, the grower of record with regard 

to the acreage base on the date on which the acreage 

was converted to nonagricultural use shall— 

‘‘(i) be notified; and 

‘‘(ii) have 90 days from the date of the receipt 

of the notification to transfer the base to 1 or more 

farms operated by the grower. 

‘‘(E) POOL DISTRIBUTION.— 

‘‘(i) IN GENERAL.—If transfers under subparagraphs (B) and (C) cannot be accomplished during the 

periods specified in those subparagraphs, the county 

committee of the Farm Service Agency for the 

applicable county shall place the acreage base in a 

pool for possible assignment to other farms. 

‘‘(ii) ACCEPTANCE OF REQUESTS.—After providing 

reasonable notice to farm owners, operators, and 

growers of record in the county, the county committee 

shall accept requests from owners, operators, and 

growers of record in the county. 

‘‘(iii) ASSIGNMENT.—The county committee shall 

assign the acreage base to other farms in the county 

that are eligible and capable of accepting the acreage 
H. R. 2419—66 

base, based on a random drawing from among the 

requests received under clause (ii). 

‘‘(F) STATEWIDE REALLOCATION.— 

‘‘(i) IN GENERAL.—Any acreage base remaining 

unassigned after the transfers and processes described 

in subparagraphs (A) through (E) shall be made available to the State committee of the Farm Service Agency 

for allocation among the remaining county committees 

in the State representing counties with farms eligible 

for assignment of the base, based on a random drawing. 

‘‘(ii) ALLOCATION.—Any county committee receiving 

acreage base under this subparagraph shall allocate 

the acreage base to eligible farms using the process 

described in subparagraph (E). 

‘‘(G) STATUS OF REASSIGNED BASE.—After acreage base 

has been reassigned in accordance with this subparagraph, 

the acreage base shall— 

‘‘(i) remain on the farm; and 

‘‘(ii) be subject to the transfer provisions of paragraph (1).’’; and 

(2) in subsection (d)— 

(A) in paragraph (1)— 

(i) by inserting ‘‘affected’’ before ‘‘crop-share 

owners’’ each place it appears; and 

(ii) by striking ‘‘, and from the processing company 

holding the applicable allocation for such shares,’’; and 

(B) in paragraph (2), by striking ‘‘based on’’ and all 

that follows through the end of subparagraph (B) and 

inserting ‘‘based on— 

‘‘(A) the number of acres of sugarcane base being transferred; and 

‘‘(B) the pro rata amount of allocation at the processing 

company holding the applicable allocation that equals the 

contribution of the grower to allocation of the processing 

company for the sugarcane acreage base being transferred.’’. 

(h) APPEALS.—Section 359i of the Agricultural Adjustment Act 

of 1938 (7 U.S.C. 1359ii) is amended— 

(1) in subsection (a), by inserting ‘‘or 359g(d)’’ after ‘‘359f’’; 

and 

(2) by striking subsection (c). 

(i) REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS.—Section 

359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) 

is repealed. 

(j) ADMINISTRATION OF TARIFF RATE QUOTAS.—Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 

(7 U.S.C. 1359aa) (as amended by subsection (i)) is amended by 

adding at the end the following: 

‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 

‘‘(a) ESTABLISHMENT.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2) 

and notwithstanding any other provision of law, at the beginning of the quota year, the Secretary shall establish the tariffrate quotas for raw cane sugar and refined sugars at the 

minimum level necessary to comply with obligations under 
H. R. 2419—67 

international trade agreements that have been approved by 

Congress. 

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to specialty 

sugar. 

‘‘(b) ADJUSTMENT.— ‘‘(1) BEFORE APRIL 1.—Before April 1 of each fiscal year, 

if there is an emergency shortage of sugar in the United States 

market that is caused by a war, flood, hurricane, or other 

natural disaster, or other similar event as determined by the 

Secretary— 

‘‘(A) the Secretary shall take action to increase the 

supply of sugar in accordance with sections 359c(b)(2) and 

359e(b), including an increase in the tariff-rate quota for 

raw cane sugar to accommodate the reassignment to 

imports; and 

‘‘(B) if there is still a shortage of sugar in the United 

States market, and marketing of domestic sugar has been 

maximized, and domestic raw cane sugar refining capacity 

has been maximized, the Secretary may increase the tariffrate quota for refined sugars sufficient to accommodate 

the supply increase, if the further increase will not threaten 

to result in the forfeiture of sugar pledged as collateral 

for a loan under section 156 of the Federal Agriculture 

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

‘‘(2) ON OR AFTER APRIL 1.—On or after April 1 of each 

fiscal year— 

‘‘(A) the Secretary may take action to increase the 

supply of sugar in accordance with sections 359c(b)(2) and 

359e(b), including an increase in the tariff-rate quota for 

raw cane sugar to accommodate the reassignment to 

imports; and 

‘‘(B) if there is still a shortage of sugar in the United 

States market, and marketing of domestic sugar has been 

maximized, the Secretary may increase the tariff-rate quota 

for raw cane sugar if the further increase will not threaten 

to result in the forfeiture of sugar pledged as collateral 

for a loan under section 156 of the Federal Agriculture 

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

(k) PERIOD OF EFFECTIVENESS.—Part VII of subtitle B of title 

III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) 

(as amended by subsection (j)) is amended by adding at the end 

the following: 

‘‘SEC. 359l. PERIOD OF EFFECTIVENESS. 

‘‘(a) IN GENERAL.—This part shall be effective only for the 

2008 through 2012 crop years for sugar. 

‘‘(b) TRANSITION.—The Secretary shall administer flexible marketing allotments for sugar for the 2007 crop year for sugar on 

the terms and conditions provided in this part as in effect on 

the day before the date of enactment of this section.’’. 

SEC. 1404. STORAGE FACILITY LOANS. 

Section 1402(c) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 7971(c)) is amended— 

(1) in paragraph (1), by striking ‘‘and’’ at the end; 

(2) by redesignating paragraph (2) as paragraph (3); 

(3) by inserting after paragraph (1) the following: 

‘‘(2) not include any penalty for prepayment; and’’; and 
H. R. 2419—68 

(4) in paragraph (3) (as redesignated by paragraph (2)), 

by inserting ‘‘other’’ after ‘‘on such’’. 

SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS. 

Subtitle E of the Federal Agriculture Improvement and Reform 

Act of 1996 (7 U.S.C. 7281 et seq.) is amended by adding at 

the end the following: 

‘‘SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS. 

‘‘(a) INITIAL CROP YEARS.—Notwithstanding any other provision 

of law, for each of the 2008 through 2011 crop years, the Commodity 

Credit Corporation shall establish rates for the storage of forfeited 

sugar in an amount that is not less than— 

‘‘(1) in the case of refined sugar, 15 cents per hundredweight of refined sugar per month; and 

‘‘(2) in the case of raw cane sugar, 10 cents per hundredweight of raw cane sugar per month. 

‘‘(b) SUBSEQUENT CROP YEARS.—For each of the 2012 and subsequent crop years, the Commodity Credit Corporation shall establish 

rates for the storage of forfeited sugar in the same manner as 

was used on the day before the date of enactment of this section.’’. 

Subtitle E—Dairy 

SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM. 

(a) DEFINITION OF NET REMOVALS.—In this section, the term 

‘‘net removals’’ means— 

(1) the sum of— 

(A) the quantity of a product described in subsection 

(b) purchased by the Commodity Credit Corporation under 

this section; and 

(B) the quantity of the product exported under section 

153 of the Food Security Act of 1985 (15 U.S.C. 713a– 

14); less 

(2) the quantity of the product sold for unrestricted use 

by the Commodity Credit Corporation. 

(b) SUPPORT ACTIVITIES.—During the period beginning on 

January 1, 2008, and ending December 31, 2012, the Secretary 

shall support the price of cheddar cheese, butter, and nonfat dry 

milk through the purchase of such products made from milk produced in the United States. 

(c) PURCHASE PRICE.—To carry out subsection (b) during the 

period specified in that subsection, the Secretary shall purchase— 

(1) cheddar cheese in blocks at not less than $1.13 per 

pound; (2) cheddar cheese in barrels at not less than $1.10 per 

pound; (3) butter at not less than $1.05 per pound; and 

(4) nonfat dry milk at not less than $0.80 per pound. 

(d) TEMPORARY PRICE ADJUSTMENT TO AVOID EXCESS INVEN- TORIES.— 

(1) ADJUSTMENTS AUTHORIZED.—The Secretary may adjust 

the minimum purchase prices established under subsection (c) 

only as permitted under this subsection. 

(2) CHEESE INVENTORIES IN EXCESS OF 200,000,000 POUNDS.— 

If net removals for a period of 12 consecutive months exceed 

200,000,000 pounds of cheese, but do not exceed 400,000,000 
H. R. 2419—69 

pounds, the Secretary may reduce the purchase prices under 

paragraphs (1) and (2) of subsection (c) during the immediately 

following month by not more than 10 cents per pound. 

(3) CHEESE INVENTORIES IN EXCESS OF 400,000,000 POUNDS.— 

If net removals for a period of 12 consecutive months exceed 

400,000,000 pounds of cheese, the Secretary may reduce the 

purchase prices under paragraphs (1) and (2) of subsection 

(c) during the immediately following month by not more than 

20 cents per pound. 

(4) BUTTER INVENTORIES IN EXCESS OF 450,000,000 POUNDS.— 

If net removals for a period of 12 consecutive months exceed 

450,000,000 pounds of butter, but do not exceed 650,000,000 

pounds, the Secretary may reduce the purchase price under 

subsection (c)(3) during the immediately following month by 

not more than 10 cents per pound. 

(5) BUTTER INVENTORIES IN EXCESS OF 650,000,000 POUNDS.— 

If net removals for a period of 12 consecutive months exceed 

650,000,000 pounds of butter, the Secretary may reduce the 

purchase price under subsection (c)(3) during the immediately 

following month by not more than 20 cents per pound. 

(6) NONFAT DRY MILK INVENTORIES IN EXCESS OF 600,000,000

POUNDS.—If net removals for a period of 12 consecutive months 

exceed 600,000,000 pounds of nonfat dry milk, but do not exceed 

800,000,000 pounds, the Secretary may reduce the purchase 

price under subsection (c)(4) during the immediately following 

month by not more than 5 cents per pound. 

(7) NONFAT DRY MILK INVENTORIES IN EXCESS OF 800,000,000

POUNDS.—If net removals for a period of 12 consecutive months 

exceed 800,000,000 pounds of nonfat dry milk, the Secretary 

may reduce the purchase price under subsection (c)(4) during 

the immediately following month by not more than 10 cents 

per pound. 

(e) UNIFORM PURCHASE PRICE.—The prices that the Secretary 

pays for cheese, butter, or nonfat dry milk, respectively, under 

subsection (b) shall be uniform for all regions of the United States. 

(f) SALES FROM INVENTORIES.—In the case of each commodity 

specified in subsection (c) that is available for unrestricted use 

in the inventory of the Commodity Credit Corporation, the Secretary 

may sell the commodity at the market prices prevailing for that 

commodity at the time of sale, except that the sale price may 

not be less than 110 percent of the minimum purchase price specified in subsection (c) for that commodity. 

SEC. 1502. DAIRY FORWARD PRICING PROGRAM. 

(a) PROGRAM REQUIRED.—The Secretary shall establish a program under which milk producers and cooperative associations of 

producers are authorized to voluntarily enter into forward price 

contracts with milk handlers. 

(b) MINIMUM MILK PRICE REQUIREMENTS.—Payments made by 

milk handlers to milk producers and cooperative associations of 

producers, and prices received by milk producers and cooperative 

associations, in accordance with the terms of a forward price contract authorized by subsection (a), shall be treated as satisfying— 

(1) all uniform and minimum milk price requirements of 

subparagraphs (B) and (F) of paragraph (5) of section 8c of 

the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
H. R. 2419—70 

with amendments by the Agricultural Marketing Agreement 

Act of 1937; and 

(2) the total payment requirement of subparagraph (C) 

of that paragraph. 

(c) MILK COVERED BY PROGRAM.— 

(1) COVERED MILK.—The program shall apply only with 

respect to the marketing of federally regulated milk that— 

(A) is not classified as Class I milk or otherwise 

intended for fluid use; and 

(B) is in the current of interstate or foreign commerce 

or directly burdens, obstructs, or affects interstate or foreign commerce in federally regulated milk. 

(2) RELATION TO CLASS I MILK.—To assist milk handlers 

in complying with paragraph (1)(A) without having to segregate 

or otherwise individually track the source and disposition of 

milk, a milk handler may allocate milk receipts from producers, 

cooperatives, and other sources that are not subject to a forward 

contract to satisfy the obligations of the handler with regard 

to Class I milk usage. 

(d) VOLUNTARY PROGRAM.— 

(1) IN GENERAL.—A milk handler may not require participation in a forward pricing contract as a condition of the handler 

receiving milk from a producer or cooperative association of 

producers. 

(2) PRICING.—A producer or cooperative association 

described in paragraph (1) may continue to have their milk 

priced in accordance with the minimum payment provisions 

of the Federal milk marketing order. 

(3) COMPLAINTS.— 

(A) IN GENERAL.—The Secretary shall investigate complaints made by producers or cooperative associations of 

coercion by handlers to enter into forward contracts. 

(B) ACTION.—If the Secretary finds evidence of coercion, the Secretary shall take appropriate action. 

(e) DURATION.— 

(1) NEW CONTRACTS.—No forward price contract may be 

entered into under the program established under this section 

after September 30, 2012. 

(2) APPLICATION.—No forward contract entered into under 

the program may extend beyond September 30, 2015. 

SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM. 

(a) EXTENSION.—Section 153(a) of the Food Security Act of 

1985 (15 U.S.C. 713a–14(a)) is amended by striking ‘‘2007’’ and 

inserting ‘‘2012’’. 

(b) COMPLIANCE WITH TRADE AGREEMENTS.—Section 153 of 

the Food Security Act of 1985 (15 U.S.C. 713a–14) is amended— 

(1) in subsection (c), by striking paragraph (3) and inserting 

the following: 

‘‘(3) the maximum volume of dairy product exports allowable consistent with the obligations of the United States under 

the Uruguay Round Agreements approved under section 101 

of the Uruguay Round Agreements Act (19 U.S.C. 3511) is 

exported under the program each year (minus the volume sold 

under section 1163 of this Act during that year), except to 

the extent that the export of such a volume under the program 
H. R. 2419—71 

would, in the judgment of the Secretary, exceed the limitations 

on the value permitted under subsection (f); and’’; and. 

(2) in subsection (f), by striking paragraph (1) and inserting 

the following: 

‘‘(1) FUNDS AND COMMODITIES.—Except as provided in paragraph (2), the Commodity Credit Corporation shall in each 

year use money and commodities for the program under this 

section in the maximum amount consistent with the obligations 

of the United States under the Uruguay Round Agreements 

approved under section 101 of the Uruguay Round Agreements 

Act (19 U.S.C. 3511), minus the amount expended under section 

1163 of this Act during that year.’’. 

SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT 

PROCEDURES. 

Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), 

reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking subsection (17) and 

inserting the following: 

‘‘(17) PROVISIONS APPLICABLE TO AMENDMENTS.— 

‘‘(A) APPLICABILITY TO AMENDMENTS.—The provisions 

of this section and section 8d applicable to orders shall 

be applicable to amendments to orders. 

‘‘(B) SUPPLEMENTAL RULES OF PRACTICE.— 

‘‘(i) IN GENERAL.—Not later than 60 days after 

the date of enactment of this subparagraph, the Secretary shall issue, using informal rulemaking, supplemental rules of practice to define guidelines and timeframes for the rulemaking process relating to amendments to orders. 

‘‘(ii) ISSUES.—At a minimum, the supplemental 

rules of practice shall establish— 

‘‘(I) proposal submission requirements; 

‘‘(II) pre-hearing information session specifications; 

‘‘(III) written testimony and data request 

requirements; 

‘‘(IV) public participation timeframes; and 

‘‘(V) electronic document submission standards. 

‘‘(iii) EFFECTIVE DATE.—The supplemental rules of 

practice shall take effect not later than 120 days after 

the date of enactment of this subparagraph, as determined by the Secretary. 

‘‘(C) HEARING TIMEFRAMES.— 

‘‘(i) IN GENERAL.—Not more than 30 days after 

the receipt of a proposal for an amendment hearing 

regarding a milk marketing order, the Secretary 

shall— 

‘‘(I) issue a notice providing an action plan 

and expected timeframes for completion of the 

hearing not more than 120 days after the date 

of the issuance of the notice; 

‘‘(II)(aa) issue a request for additional information to be used by the Secretary in making a 

determination regarding the proposal; and 
H. R. 2419—72 

‘‘(bb) if the additional information is not provided to the Secretary within the timeframe 

requested by the Secretary, issue a denial of the 

request; or 

‘‘(III) issue a denial of the request. 

‘‘(ii) REQUIREMENT.—A post-hearing brief may be 

filed under this paragraph not later than 60 days after 

the date of an amendment hearing regarding a milk 

marketing order. 

‘‘(iii) RECOMMENDED DECISIONS.—A recommended 

decision on a proposed amendment to an order shall 

be issued not later than 90 days after the deadline 

for the submission of post-hearing briefs. 

‘‘(iv) FINAL DECISIONS.—A final decision on a proposed amendment to an order shall be issued not later 

than 60 days after the deadline for submission of comments and exceptions to the recommended decision 

issued under clause (iii). 

‘‘(D) INDUSTRY ASSESSMENTS.—If the Secretary determines it is necessary to improve or expedite rulemaking 

under this subsection, the Secretary may impose an assessment on the affected industry to supplement appropriated 

funds for the procurement of service providers, such as 

court reporters. 

‘‘(E) USE OF INFORMAL RULEMAKING.—The Secretary 

may use rulemaking under section 553 of title 5, United 

States Code, to amend orders, other than provisions of 

orders that directly affect milk prices. 

‘‘(F) AVOIDING DUPLICATION.—The Secretary shall not 

be required to hold a hearing on any amendment proposed 

to be made to a milk marketing order in response to an 

application for a hearing on the proposed amendment if— 

‘‘(i) the application requesting the hearing is 

received by the Secretary not later than 90 days after 

the date on which the Secretary has announced the 

decision on a previously proposed amendment to that 

order; and 

‘‘(ii) the 2 proposed amendments are essentially 

the same, as determined by the Secretary. 

‘‘(G) MONTHLY FEED AND FUEL COSTS FOR MAKE ALLOW- ANCES.—As part of any hearing to adjust make allowances 

under marketing orders commencing prior to September 

30, 2012, the Secretary shall— 

‘‘(i) determine the average monthly prices of feed 

and fuel incurred by dairy producers in the relevant 

marketing area; 

‘‘(ii) consider the most recent monthly feed and 

fuel price data available; and 

‘‘(iii) consider those prices in determining whether 

or not to adjust make allowances.’’. 

SEC. 1505. DAIRY INDEMNITY PROGRAM. 

Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM. 

(a) DEFINITIONS.—In this section: 
H. R. 2419—73 

(1) CLASS I MILK.—The term ‘‘Class I milk’’ means milk 

(including milk components) classified as Class I milk under 

a Federal milk marketing order. 

(2) ELIGIBLE PRODUCTION.—The term ‘‘eligible production’’ 

means milk produced by a producer in a participating State. 

(3) FEDERAL MILK MARKETING ORDER.—The term ‘‘Federal 

milk marketing order’’ means an order issued under section 

8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 

with amendments by the Agricultural Marketing Agreement 

Act of 1937. 

(4) PARTICIPATING STATE.—The term ‘‘participating State’’ 

means each State. 

(5) PRODUCER.—The term ‘‘producer’’ means an individual 

or entity that directly or indirectly (as determined by the Secretary)— 

(A) shares in the risk of producing milk; and 

(B) makes contributions (including land, labor, 

management, equipment, or capital) to the dairy farming 

operation of the individual or entity that are at least 

commensurate with the share of the individual or entity 

of the proceeds of the operation. 

(b) PAYMENTS.—The Secretary shall offer to enter into contracts 

with producers on a dairy farm located in a participating State 

under which the producers receive payments on eligible production. 

(c) AMOUNT.—Payments to a producer under this section shall 

be calculated by multiplying (as determined by the Secretary)— 

(1) the payment quantity for the producer during the 

applicable month established under subsection (e); 

(2) the amount equal to— 

(A) $16.94 per hundredweight, as adjusted under subsection (d); less 

(B) the Class I milk price per hundredweight in Boston 

under the applicable Federal milk marketing order; by 

(3)(A) for the period beginning October 1, 2007, and ending 

September 30, 2008, 34 percent; 

(B) for the period beginning October 1, 2008, and ending 

August 31, 2012, 45 percent; and 

(C) for the period beginning September 1, 2012, and thereafter, 34 percent. 

(d) PAYMENT RATE ADJUSTMENT FOR FEED PRICES.— 

(1) INITIAL ADJUSTMENT AUTHORITY.—During the period 

beginning on January 1, 2008, and ending on August 31, 2012, 

if the National Average Dairy Feed Ration Cost for a month 

during that period is greater than $7.35 per hundredweight, 

the amount specified in subsection (c)(2)(A) used to determine 

the payment rate for that month shall be increased by 45 

percent of the percentage by which the National Average Dairy 

Feed Ration Cost exceeds $7.35 per hundredweight. 

(2) SUBSEQUENT ADJUSTMENT AUTHORITY.—For any month 

beginning on or after September 1, 2012, if the National Average Dairy Feed Ration Cost for the month is greater than 

$9.50 per hundredweight, the amount specified in subsection 

(c)(2)(A) used to determine the payment rate for that month 

shall be increased by 45 percent of the percentage by which 

the National Average Dairy Feed Ration Cost exceeds $9.50 

per hundredweight. 
H. R. 2419—74 

(3) NATIONAL AVERAGE DAIRY FEED RATION COST.—For each 

month, the Secretary shall calculate a National Average Dairy 

Feed Ration Cost per hundredweight using the same procedures 

(adjusted to a hundredweight basis) used to calculate the feed 

components of the estimated price of 16% Mixed Dairy Feed 

per pound noted on page 33 of the USDA March 2008 Agricultural Prices publication (including the data and factors noted 

in footnote 4). 

(e) PAYMENT QUANTITY.— 

(1) IN GENERAL.—Subject to paragraph (2), the payment 

quantity for a producer during the applicable month under 

this section shall be equal to the quantity of eligible production 

marketed by the producer during the month. 

(2) LIMITATION.— 

(A) IN GENERAL.—The payment quantity for all producers on a single dairy operation for which the producers 

receive payments under subsection (b) shall not exceed— 

(i) for the period beginning October 1, 2007, and 

ending September 30, 2008, 2,400,000 pounds; 

(ii) for the period beginning October 1, 2008, and 

ending August 31, 2012, 2,985,000 pounds for each 

fiscal year; and 

(iii) effective beginning September 1, 2012, 

2,400,000 pounds per fiscal year. 

(B) STANDARDS.—For purposes of determining whether 

producers are producers on separate dairy operations or 

a single dairy operation, the Secretary shall apply the 

same standards as were applied in implementing the dairy 

program under section 805 of the Agriculture, Rural 

Development, Food and Drug Administration, and Related 

Agencies Appropriations Act, 2001 (as enacted into law 

by Public Law 106–387; 114 Stat. 1549A–50). 

(3) RECONSTITUTION.—The Secretary shall ensure that a 

producer does not reconstitute a dairy operation for the sole 

purpose of receiving additional payments under this section. 

(f) PAYMENTS.—A payment under a contract under this section 

shall be made on a monthly basis not later than 60 days after 

the last day of the month for which the payment is made. 

(g) SIGNUP.—The Secretary shall offer to enter into contracts 

under this section during the period beginning on the date that 

is 90 days after the date of enactment of this Act and ending 

on September 30, 2012. 

(h) DURATION OF CONTRACT.— 

(1) IN GENERAL.—Except as provided in paragraph (2), any 

contract entered into by producers on a dairy farm under this 

section shall cover eligible production marketed by the producers on the dairy farm during the period starting with the 

first day of month the producers on the dairy farm enter into 

the contract and ending on September 30, 2012. 

(2) VIOLATIONS.—If a producer violates the contract, the 

Secretary may— 

(A) terminate the contract and allow the producer to 

retain any payments received under the contract; or 

(B) allow the contract to remain in effect and require 

the producer to repay a portion of the payments received 

under the contract based on the severity of the violation. 
H. R. 2419—75 

SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM. 

(a) EXTENSION OF DAIRY PROMOTION AND RESEARCH

AUTHORITY.—Section 113(e)(2) of the Dairy Production Stabilization 

Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ‘‘2007’’ 

and inserting ‘‘2012’’. 

(b) DEFINITION OF UNITED STATES FOR PROMOTION PROGRAM.— 

Section 111 of the Dairy Production Stabilization Act of 1983 (7 

U.S.C. 4502) is amended— 

(1) by striking subsection (l) and inserting the following: 

‘‘(l) the term ‘United States’, when used in a geographical 

sense, means all of the States, the District of Columbia, and the 

Commonwealth of Puerto Rico;’’; and 

(2) in subsection (m), by striking ‘‘(as defined in subsection 

(l))’’. 

(c) DEFINITION OF UNITED STATES FOR RESEARCH PROGRAM.— 

Section 130 of the Dairy Production Stabilization Act of 1983 (7 

U.S.C. 4531)) is amended by striking paragraph (12) and inserting 

the following: 

‘‘(12) the term ‘United States’, when used in a geographical 

sense, means all of the States, the District of Columbia, and 

the Commonwealth of Puerto Rico.’’. 

(d) ASSESSMENT RATE FOR IMPORTED DAIRY PRODUCTS.—Section 

113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 

4504(g)) is amended by striking paragraph (3) and inserting the 

following: 

‘‘(3) RATE.— 

‘‘(A) IN GENERAL.—The rate of assessment for milk 

produced in the United States prescribed by the order 

shall be 15 cents per hundredweight of milk for commercial 

use or the equivalent thereof, as determined by the Secretary. 

‘‘(B) IMPORTED DAIRY PRODUCTS.—The rate of assessment for imported dairy products prescribed by the order 

shall be 7.5 cents per hundredweight of milk for commercial 

use or the equivalent thereof, as determined by the Secretary.’’. 

(e) TIME AND METHOD OF IMPORTER PAYMENTS.—Section 

113(g)(6) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 

4504(g)(6)) is amended— 

(1) by striking subparagraph (B); and 

(2) by redesignating subparagraph (C) as subparagraph 

(B). 

(f) REFUND OF ASSESSMENTS ON CERTAIN IMPORTED DAIRY

PRODUCTS.—Section 113(g) of the Dairy Production Stabilization 

Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end 

the following: 

‘‘(7) REFUND OF ASSESSMENTS ON CERTAIN IMPORTED PRODUCTS.— 

‘‘(A) IN GENERAL.—An importer shall be entitled to 

a refund of any assessment paid under this subsection 

on imported dairy products imported under a contract 

entered into prior to the date of enactment of the Food, 

Conservation, and Energy Act of 2008. 

‘‘(B) EXPIRATION.—Refunds under subparagraph (A) 

shall expire 1 year after the date of enactment of the 

Food, Conservation, and Energy Act of 2008.’’. 
H. R. 2419—76 

SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING 

PROCEDURES FOR NONFAT DRY MILK. 

Not later than 90 days after the date of enactment of this 

Act, the Secretary shall submit to the Committee on Agriculture 

of the House of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate a report regarding Department of Agriculture reporting procedures for nonfat dry milk and 

the impact of the procedures on Federal milk marketing order 

minimum prices during the period beginning on July 1, 2006, and 

ending on the date of enactment of this Act. 

SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION. 

(a) ESTABLISHMENT.—Subject to the availability of appropriations to carry out this section, the Secretary shall establish a 

commission to be known as the ‘‘Federal Milk Marketing Order 

Review Commission’’ (referred to in this section as the ‘‘commission’’), which shall conduct a comprehensive review and evaluation 

of— 

(1) the Federal milk marketing order system in effect on 

the date of establishment of the commission; and 

(2) non-Federal milk marketing order systems. 

(b) ELEMENTS OF REVIEW AND EVALUATION.—As part of the 

review and evaluation under subsection (a), the commission shall 

consider legislative and regulatory options for— 

(1) ensuring that the competitiveness of dairy products 

with other competing products in the marketplace is preserved 

and enhanced; 

(2) enhancing the competitiveness of American dairy producers in world markets; 

(3) ensuring the competitiveness and transparency in dairy 

pricing; 

(4) streamlining and expediting the process by which 

amendments to Federal milk market orders are adopted; 

(5) simplifying the Federal milk marketing order system; 

(6) evaluating whether the Federal milk marketing order 

system serves the interests of dairy producers, consumers, and 

dairy processors; and 

(7) evaluating the nutritional composition of milk, including 

the potential benefits and costs of adjusting the milk content 

standards. 

(c) MEMBERSHIP.— (1) COMPOSITION.—The commission shall consist of 14 members. 

(2) MEMBERS.—As soon as practicable after the date on 

which funds are first made available to carry out this section, 

the Secretary shall appoint members to the commission 

according to the following requirements: 

(A) At least 1 member shall represent a national consumer organization. 

(B) At least 4 members shall represent land-grant 

universities or NLGCA Institutions (as defined in section 

1404 of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103)) with accredited 

dairy economic programs, with at least 2 of those members 

being experts in the field of economics. 

(C) At least 1 member shall represent the food and 

beverage retail sector. 
H. R. 2419—77 

(D) 4 dairy producers and 4 dairy processors, appointed 

so as to balance geographical distribution of milk production and dairy processing, reflect all segments of dairy 

processing, and represent all regions of the United States 

equitably, including States that operate outside of a Federal 

milk marketing order. 

(3) CHAIR.—The commission shall elect 1 of the appointed 

members of the commission to serve as chairperson for the 

duration of the proceedings of the commission. 

(4) VACANCY.—Any vacancy occurring before the termination of the commission shall be filled in the same manner 

as the original appointment. 

(5) COMPENSATION.—Members of the commission shall 

serve without compensation, but shall be reimbursed by the 

Secretary from existing budget authority for necessary and 

reasonable expenses incurred in the performance of the duties 

of the commission. 

(d) REPORT.— 

(1) IN GENERAL.—Not later than 2 years after the date 

of the first meeting of the commission, the commission shall 

submit to Congress and the Secretary a report describing the 

results of the review and evaluation conducted under this section, including such recommendations regarding the legislative 

and regulatory options considered under subsection (b) as the 

commission considers to be appropriate. 

(2) OPINIONS.—The report findings shall reflect, to the maximum extent practicable, a consensus opinion of the commission 

members, but the report may include majority and minority 

findings regarding those matters for which consensus was not 

reached. 

(e) ADVISORY NATURE.—The commission is wholly advisory in 

nature, and the recommendations of the commission are nonbinding. 

(f) NO EFFECT ON EXISTING PROGRAMS.—The Secretary shall 

not allow the existence of the commission to impede, delay, or 

otherwise affect any decisionmaking process of the Department 

of Agriculture, including any rulemaking procedures planned, proposed, or near completion. 

(g) ADMINISTRATIVE ASSISTANCE.—The Secretary shall provide 

administrative support to the commission, and expend to carry 

out this section such funds as necessary from budget authority 

available to the Secretary. 

(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section. 

(i) TERMINATION.—The commission shall terminate effective on 

the date of the submission of the report under subsection (d). 

SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES. 

(a) ELECTRONIC REPORTING.—Section 273 of the Agricultural 

Marketing Act of 1946 (7 U.S.C. 1637b) is amended— 

(1) by redesignating subsection (d) as subsection (e); and 

(2) by inserting after subsection (c) the following: 

‘‘(d) ELECTRONIC REPORTING.— 

‘‘(1) IN GENERAL.—Subject to the availability of funds under 

paragraph (3), the Secretary shall establish an electronic 

reporting system to carry out this section. 
H. R. 2419—78 

‘‘(2) FREQUENCY OF REPORTS.—After the establishment of 

the electronic reporting system in accordance with paragraph 

(1), the Secretary shall increase the frequency of the reports 

required under this section. 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated such sums as are necessary to 

carry out this subsection.’’. 

(b) QUARTERLY AUDITS.—Section 273(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking 

paragraph (3) and inserting the following: 

‘‘(3) VERIFICATION.— 

‘‘(A) IN GENERAL.—The Secretary shall take such 

actions as the Secretary considers necessary to verify the 

accuracy of the information submitted or reported under 

this subtitle. 

‘‘(B) QUARTERLY AUDITS.—The Secretary shall quarterly conduct an audit of information submitted or reported 

under this subtitle and compare such information with 

other related dairy market statistics.’’. 

Subtitle F—Administration 

SEC. 1601. ADMINISTRATION GENERALLY. 

(a) USE OF COMMODITY CREDIT CORPORATION.—Except as otherwise provided in this title, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry 

out this title. 

(b) DETERMINATIONS BY SECRETARY.—A determination made 

by the Secretary under this title shall be final and conclusive. 

(c) REGULATIONS.— (1) IN GENERAL.—Except as otherwise provided in this subsection, not later than 90 days after the date of enactment 

of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are 

necessary to implement this title and the amendments made 

by this title. 

(2) PROCEDURE.—The promulgation of the regulations and 

administration of this title and the amendments made by this 

title shall be made without regard to— 

(A) chapter 35 of title 44, United States Code (commonly known as the ‘‘Paperwork Reduction Act’’); 

(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), 

relating to notices of proposed rulemaking and public 

participation in rulemaking; and 

(C) the notice and comment provisions of section 553 

of title 5, United States Code. 

(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In 

carrying out this subsection, the Secretary shall use the 

authority provided under section 808 of title 5, United States 

Code. 

(4) INTERIM REGULATIONS.—Notwithstanding paragraphs 

(1) and (2), the Secretary shall implement the amendments 

made by sections 1603 and 1604 for the 2009 crop, fiscal, 

or program year, as appropriate, through the promulgation 

of an interim rule. 
H. R. 2419—79 

(d) ADJUSTMENT AUTHORITY RELATED TO TRADE AGREEMENTS

COMPLIANCE.— 

(1) REQUIRED DETERMINATION; ADJUSTMENT.—If the Secretary determines that expenditures under this title that are 

subject to the total allowable domestic support levels under 

the Uruguay Round Agreements (as defined in section 2 of 

the Uruguay Round Agreements Act (19 U.S.C. 3501)) will 

exceed such allowable levels for any applicable reporting period, 

the Secretary shall, to the maximum extent practicable, make 

adjustments in the amount of such expenditures during that 

period to ensure that such expenditures do not exceed such 

allowable levels. 

(2) CONGRESSIONAL NOTIFICATION.—Before making any 

adjustment under paragraph (1), the Secretary shall submit 

to the Committee on Agriculture of the House of Representatives or the Committee on Agriculture, Nutrition, and Forestry 

of the Senate a report describing the determination made under 

that paragraph and the extent of the adjustment to be made. 

(e) TREATMENT OF ADVANCE PAYMENT OPTION.—Section 1601(d) 

of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

7991(d)) is amended— 

(1) in paragraph (1), by striking ‘‘and’’ at the end; 

(2) in paragraph (2), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(3) the advance payment of direct payments and countercyclical payments under title I of the Food, Conservation, and 

Energy Act of 2008.’’. 

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY. 

(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The following 

provisions of the Agricultural Adjustment Act of 1938 shall not 

be applicable to the 2008 through 2012 crops of covered commodities, peanuts, and sugar and shall not be applicable to milk during 

the period beginning on the date of enactment of this Act through 

December 31, 2012: 

(1) Parts II through V of subtitle B of title III (7 U.S.C. 

1326 et seq.). 

(2) In the case of upland cotton, section 377 (7 U.S.C. 

1377). 

(3) Subtitle D of title III (7 U.S.C. 1379a et seq.). 

(4) Title IV (7 U.S.C. 1401 et seq.). 

(b) AGRICULTURAL ACT OF 1949.—The following provisions of 

the Agricultural Act of 1949 shall not be applicable to the 2008 

through 2012 crops of covered commodities, peanuts, and sugar 

and shall not be applicable to milk during the period beginning 

on the date of enactment of this Act and through December 31, 

2012: 

(1) Section 101 (7 U.S.C. 1441). 

(2) Section 103(a) (7 U.S.C. 1444(a)). 

(3) Section 105 (7 U.S.C. 1444b). 

(4) Section 107 (7 U.S.C. 1445a). 

(5) Section 110 (7 U.S.C. 1445e). 

(6) Section 112 (7 U.S.C. 1445g). 

(7) Section 115 (7 U.S.C. 1445k). 

(8) Section 201 (7 U.S.C. 1446). 

(9) Title III (7 U.S.C. 1447 et seq.). 
H. R. 2419—80 

(10) Title IV (7 U.S.C. 1421 et seq.), other than sections 

404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431). 

(11) Title V (7 U.S.C. 1461 et seq.). 

(12) Title VI (7 U.S.C. 1471 et seq.). 

(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—The joint resolution entitled ‘‘A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as 

amended’’, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall 

not be applicable to the crops of wheat planted for harvest in 

the calendar years 2008 through 2012. 

SEC. 1603. PAYMENT LIMITATIONS. 

(a) EXTENSION OF LIMITATIONS.—Sections 1001 and 1001C(a) 

of the Food Security Act of 1985 (7 U.S.C. 1308, 1308–3(a)) are 

amended by striking ‘‘Farm Security and Rural Investment Act 

of 2002’’ each place it appears and inserting ‘‘Food, Conservation, 

and Energy Act of 2008’’. 

(b) REVISION OF LIMITATIONS.— 

(1) DEFINITIONS.—Section 1001(a) of the Food Security Act 

of 1985 (7 U.S.C. 1308(a)) is amended— 

(A) in the matter preceding paragraph (1), by inserting 

‘‘through section 1001F’’after ‘‘section’’; 

(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (5); and 

(C) by inserting after paragraph (1) the following: 

‘‘(2) FAMILY MEMBER.—The term ‘family member’ means 

a person to whom a member in the farming operation is related 

as lineal ancestor, lineal descendant, sibling, spouse, or otherwise by marriage. 

‘‘(3) LEGAL ENTITY.—The term ‘legal entity’ means an entity 

that is created under Federal or State law and that— 

‘‘(A) owns land or an agricultural commodity; or 

‘‘(B) produces an agricultural commodity. 

‘‘(4) PERSON.—The term ‘person’ means a natural person, 

and does not include a legal entity.’’. 

(2) LIMITATION ON DIRECT PAYMENTS AND COUNTERCYCLICAL PAYMENTS.—Section 1001 of the Food Security Act 

of 1985 (7 U.S.C. 1308) is amended by striking subsections 

(b), (c), and (d) and inserting the following: 

‘‘(b) LIMITATION ON DIRECT PAYMENTS, COUNTER-CYCLICAL PAYMENTS, AND ACRE PAYMENTS FOR COVERED COMMODITIES (OTHER

THAN PEANUTS).— 

‘‘(1) DIRECT PAYMENTS.—The total amount of direct payments received, directly or indirectly, by a person or legal 

entity (except a joint venture or a general partnership) for 

any crop year under subtitle A of title I of the Food, Conservation, and Energy Act of 2008 for 1 or more covered commodities 

(except for peanuts) may not exceed— 

‘‘(A) in the case of a person or legal entity that does 

not participate in the average crop revenue election program under section 1105 of that Act, $40,000; or 

‘‘(B) in the case of a person or legal entity that participates in the average crop revenue election program under 

section 1105 of that Act, an amount equal to— 

‘‘(i) the payment limit specified in subparagraph 

(A); less 
H. R. 2419—81 

‘‘(ii) the amount of the reduction in direct payments 

under section 1105(a)(1) of that Act. 

‘‘(2) COUNTER-CYCLICAL PAYMENTS.—In the case of a person 

or legal entity (except a joint venture or a general partnership) 

that does not participate in the average crop revenue election 

program under section 1105 of the Food, Conservation, and 

Energy Act of 2008, the total amount of counter-cyclical payments received, directly or indirectly, by the person or legal 

entity for any crop year under subtitle A of title I of that 

Act for 1 or more covered commodities (except for peanuts) 

may not exceed $65,000. 

‘‘(3) ACRE AND COUNTER-CYCLICAL PAYMENTS.—In the case 

of a person or legal entity (except a joint venture or a general 

partnership) that participates in the average crop revenue election program under section 1105 of the Food, Conservation, 

and Energy Act of 2008, the total amount of average crop 

revenue election payments and counter-cyclical payments 

received, directly or indirectly, by the person or legal entity 

for any crop year for 1 or more covered commodities (except 

for peanuts) may not exceed the sum of— 

‘‘(A) $65,000; and 

‘‘(B) the amount by which the direct payment limitation 

is reduced under paragraph (1)(B). 

‘‘(c) LIMITATION ON DIRECT PAYMENTS, COUNTER-CYCLICAL PAY- MENTS, AND ACRE PAYMENTS FOR PEANUTS.— ‘‘(1) DIRECT PAYMENTS.—The total amount of direct payments received, directly or indirectly, by a person or legal 

entity (except a joint venture or a general partnership) for 

any crop year under subtitle C of title I of the Food, Conservation, and Energy Act of 2008 for peanuts may not exceed— 

‘‘(A) in the case of a person or legal entity that does 

not participate in the average crop revenue election program under section 1105 of that Act, $40,000; or 

‘‘(B) in the case of a person or legal entity that participates in the average crop revenue election program under 

section 1105 of that Act, an amount equal to— 

‘‘(i) the payment limit specified in subparagraph 

(A); less 

‘‘(ii) the amount of the reduction in direct payments 

under section 1105(a)(1) of that Act. 

‘‘(2) COUNTER-CYCLICAL PAYMENTS.—In the case of a person 

or legal entity (except a joint venture or a general partnership) 

that does not participate in the average crop revenue election 

program under section 1105 of the Food, Conservation, and 

Energy Act of 2008, the total amount of counter-cyclical payments received, directly or indirectly, by the person or legal 

entity for any crop year under subtitle C of title I of that 

Act for peanuts may not exceed $65,000. 

‘‘(3) ACRE AND COUNTER-CYCLICAL PAYMENTS.—In the case 

of a person or legal entity (except a joint venture or a general 

partnership) that participates in the average crop revenue election program under section 1105 of the Food, Conservation, 

and Energy Act of 2008, the total amount of average crop 

revenue election payments received, directly or indirectly, by 

the person or legal entity for any crop year for peanuts may 

not exceed the sum of— 

‘‘(A) $65,000; and 
H. R. 2419—82 

‘‘(B) the amount by which the direct payment limitation 

is reduced under paragraph (1)(B). 

‘‘(d) LIMITATION ON APPLICABILITY.—Nothing in this section 

authorizes any limitation on any benefit associated with the marketing assistance loan program or the loan deficiency payment 

program under title I of the Food, Conservation, and Energy Act 

of 2008.’’. 

(3) DIRECT ATTRIBUTION.—Section 1001 of the Food Security 

Act of 1985 (7 U.S.C. 1308) is amended— 

(A) by striking subsections (e) and (f) and redesignating 

subsection (g) as subsection (h); and 

(B) by inserting after subsection (d) the following: 

‘‘(e) ATTRIBUTION OF PAYMENTS.— 

‘‘(1) IN GENERAL.—In implementing subsections (b) and (c) 

and a program described in paragraphs (1)(C) and (2)(B) of 

section 1001D(b), the Secretary shall issue such regulations 

as are necessary to ensure that the total amount of payments 

are attributed to a person by taking into account the direct 

and indirect ownership interests of the person in a legal entity 

that is eligible to receive the payments. 

‘‘(2) PAYMENTS TO A PERSON.—Each payment made directly 

to a person shall be combined with the pro rata interest of 

the person in payments received by a legal entity in which 

the person has a direct or indirect ownership interest unless 

the payments of the legal entity have been reduced by the 

pro rata share of the person. 

‘‘(3) PAYMENTS TO A LEGAL ENTITY.— ‘‘(A) IN GENERAL.—Each payment made to a legal entity 

shall be attributed to those persons who have a direct 

or indirect ownership interest in the legal entity unless 

the payment to the legal entity has been reduced by the 

pro rata share of the person. 

‘‘(B) ATTRIBUTION OF PAYMENTS.— ‘‘(i) PAYMENT LIMITS.—Except as provided in clause 

(ii), payments made to a legal entity shall not exceed 

the amounts specified in subsections (b) and (c). 

‘‘(ii) EXCEPTION FOR JOINT VENTURES AND GENERAL

PARTNERSHIPS.—Payments made to a joint venture or 

a general partnership shall not exceed, for each payment specified in subsections (b) and (c), the amount 

determined by multiplying the maximum payment 

amount specified in subsections (b) and (c) by the 

number of persons and legal entities (other than joint 

ventures and general partnerships) that comprise the 

ownership of the joint venture or general partnership. 

‘‘(iii) REDUCTION.—Payments made to a legal entity 

shall be reduced proportionately by an amount that 

represents the direct or indirect ownership in the legal 

entity by any person or legal entity that has otherwise 

exceeded the applicable maximum payment limitation. 

‘‘(4) 4 LEVELS OF ATTRIBUTION FOR EMBEDDED LEGAL ENTITIES.— 

‘‘(A) IN GENERAL.—Attribution of payments made to 

legal entities shall be traced through 4 levels of ownership 

in legal entities. 

‘‘(B) FIRST LEVEL.—Any payments made to a legal 

entity (a first-tier legal entity) that is owned in whole 
H. R. 2419—83 

or in part by a person shall be attributed to the person 

in an amount that represents the direct ownership in the 

first-tier legal entity by the person. 

‘‘(C) SECOND LEVEL.— 

‘‘(i) IN GENERAL.—Any payments made to a firsttier legal entity that is owned (in whole or in part) 

by another legal entity (a second-tier legal entity) shall 

be attributed to the second-tier legal entity in proportion to the ownership of the second-tier legal entity 

in the first-tier legal entity. 

‘‘(ii) OWNERSHIP BY A PERSON.—If the second-tier 

legal entity is owned (in whole or in part) by a person, 

the amount of the payment made to the first-tier legal 

entity shall be attributed to the person in the amount 

that represents the indirect ownership in the firsttier legal entity by the person. 

‘‘(D) THIRD AND FOURTH LEVELS.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), the Secretary shall attribute payments at the third 

and fourth tiers of ownership in the same manner 

as specified in subparagraph (C). 

‘‘(ii) FOURTH-TIER OWNERSHIP.—If the fourth-tier 

of ownership is that of a fourth-tier legal entity and 

not that of a person, the Secretary shall reduce the 

amount of the payment to be made to the first-tier 

legal entity in the amount that represents the indirect 

ownership in the first-tier legal entity by the fourthtier legal entity. 

‘‘(f) SPECIAL RULES.— 

‘‘(1) MINOR CHILDREN.— 

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

(B), payments received by a child under the age of 18 

shall be attributed to the parents of the child. 

‘‘(B) REGULATIONS.—The Secretary shall issue regulations specifying the conditions under which payments 

received by a child under the age of 18 will not be attributed 

to the parents of the child. 

‘‘(2) MARKETING COOPERATIVES.—Subsections (b) and (c) 

shall not apply to a cooperative association of producers with 

respect to commodities produced by the members of the association that are marketed by the association on behalf of the 

members of the association but shall apply to the producers 

as persons. 

‘‘(3) TRUSTS AND ESTATES.— 

‘‘(A) IN GENERAL.—With respect to irrevocable trusts 

and estates, the Secretary shall administer this section 

through section 1001F in such manner as the Secretary 

determines will ensure the fair and equitable treatment 

of the beneficiaries of the trusts and estates. 

‘‘(B) IRREVOCABLE TRUST.— 

‘‘(i) IN GENERAL.—In order for a trust to be considered an irrevocable trust, the terms of the trust agreement shall not— 

‘‘(I) allow for modification or termination of 

the trust by the grantor; 
H. R. 2419—84 

‘‘(II) allow for the grantor to have any future, 

contingent, or remainder interest in the corpus 

of the trust; or 

‘‘(III) except as provided in clause (ii), provide 

for the transfer of the corpus of the trust to the 

remainder beneficiary in less than 20 years beginning on the date the trust is established. 

‘‘(ii) EXCEPTION.—Clause (i)(III) shall not apply in 

a case in which the transfer is— 

‘‘(I) contingent on the remainder beneficiary 

achieving at least the age of majority; or 

‘‘(II) contingent on the death of the grantor 

or income beneficiary. 

‘‘(C) REVOCABLE TRUST.—For the purposes of this section through section 1001F, a revocable trust shall be 

considered to be the same person as the grantor of the 

trust. 

‘‘(4) CASH RENT TENANTS.— 

‘‘(A) DEFINITION.—In this paragraph, the term ‘cash 

rent tenant’ means a person or legal entity that rents 

land— 

‘‘(i) for cash; or 

‘‘(ii) for a crop share guaranteed as to the amount 

of the commodity to be paid in rent. 

‘‘(B) RESTRICTION.—A cash rent tenant who makes a 

significant contribution of active personal management, but 

not of personal labor, with respect to a farming operation 

shall be eligible to receive a payment described in subsection (b) or (c) only if the tenant makes a significant 

contribution of equipment to the farming operation. 

‘‘(5) FEDERAL AGENCIES.— 

‘‘(A) IN GENERAL.—Notwithstanding subsection (d), a 

Federal agency shall not be eligible to receive any payment, 

benefit, or loan under title I of the Food, Conservation, 

and Energy Act of 2008 or title XII of this Act. 

‘‘(B) LAND RENTAL.—A lessee of land owned by a Federal agency may receive a payment described in subsection 

(b), (c), or (d) if the lessee otherwise meets all applicable 

criteria. 

‘‘(6) STATE AND LOCAL GOVERNMENTS.— 

‘‘(A) IN GENERAL.—Notwithstanding subsection (d), 

except as provided in subsection (g), a State or local government, or political subdivision or agency of the government, 

shall not be eligible to receive any payment, benefit, or 

loan under title I of the Food, Conservation, and Energy 

Act of 2008 or title XII of this Act. 

‘‘(B) TENANTS.—A lessee of land owned by a State 

or local government, or political subdivision or agency of 

the government, may receive payments described in subsections (b), (c), and (d) if the lessee otherwise meets all 

applicable criteria. 

‘‘(7) CHANGES IN FARMING OPERATIONS.— 

‘‘(A) IN GENERAL.—In the administration of this section 

through section 1001F, the Secretary may not approve 

any change in a farming operation that otherwise will 

increase the number of persons to which the limitations 
H. R. 2419—85 

under this section are applied unless the Secretary determines that the change is bona fide and substantive. 

‘‘(B) FAMILY MEMBERS.—The addition of a family 

member to a farming operation under the criteria set out 

in section 1001A shall be considered a bona fide and substantive change in the farming operation. 

‘‘(8) DEATH OF OWNER.— 

‘‘(A) IN GENERAL.—If any ownership interest in land 

or a commodity is transferred as the result of the death 

of a program participant, the new owner of the land or 

commodity may, if the person is otherwise eligible to 

participate in the applicable program, succeed to the contract of the prior owner and receive payments subject to 

this section without regard to the amount of payments 

received by the new owner. 

‘‘(B) LIMITATIONS ON PRIOR OWNER.—Payments made 

under this paragraph shall not exceed the amount to which 

the previous owner was entitled to receive under the terms 

of the contract at the time of the death of the prior owner. 

‘‘(g) PUBLIC SCHOOLS.— 

‘‘(1) IN GENERAL.—Notwithstanding subsection (f)(6)(A), a 

State or local government, or political subdivision or agency 

of the government, shall be eligible, subject to the limitation 

in paragraph (2), to receive a payment described in subsection 

(b) or (c) for land owned by the State or local government, 

or political subdivision or agency of the government, that is 

used to maintain a public school. 

‘‘(2) LIMITATION.— 

‘‘(A) IN GENERAL.—For each State, the total amount 

of payments described in subsections (b) and (c) that are 

received collectively by the State and local government 

and all political subdivisions or agencies of those governments shall not exceed $500,000. 

‘‘(B) EXCEPTION.—The limitation in subparagraph (A) 

shall not apply to States with a population of less than 

1,500,000.’’. 

(c) REPEAL OF 3-ENTITY RULE.—Section 1001A of the Food 

Security Act of 1985 (7 U.S.C. 1308–1) is amended— 

(1) in the section heading, by striking ‘‘PREVENTION OF

CREATION OF ENTITIES TO QUALIFY AS SEPARATE PERSONS’’ 

and inserting ‘‘NOTIFICATION OF INTERESTS’’; and 

(2) by striking subsection (a) and inserting the following: 

‘‘(a) NOTIFICATION OF INTERESTS.—To facilitate administration 

of section 1001 and this section, each person or legal entity receiving 

payments described in subsections (b) and (c) of section 1001 as 

a separate person or legal entity shall separately provide to the 

Secretary, at such times and in such manner as prescribed by 

the Secretary— 

‘‘(1) the name and social security number of each person, 

or the name and taxpayer identification number of each legal 

entity, that holds or acquires an ownership interest in the 

separate person or legal entity; and 

‘‘(2) the name and taxpayer identification number of each 

legal entity in which the person or legal entity holds an ownership interest.’’. 
H. R. 2419—86 

(d) AMENDMENT FOR CONSISTENCY.—Section 1001A of the Food 

Security Act of 1985 (7 U.S.C. 1308–1) is amended by striking 

subsection (b) and inserting the following: 

‘‘(b) ACTIVELY ENGAGED.— 

‘‘(1) IN GENERAL.—To be eligible to receive a payment 

described in subsection (b) or (c) of section 1001, a person 

or legal entity shall be actively engaged in farming with respect 

to a farming operation as provided in this subsection or subsection (c). 

‘‘(2) CLASSES ACTIVELY ENGAGED.—Except as provided in 

subsections (c) and (d)— 

‘‘(A) a person (including a person participating in a 

farming operation as a partner in a general partnership, 

a participant in a joint venture, a grantor of a revocable 

trust, or a participant in a similar entity, as determined 

by the Secretary) shall be considered to be actively engaged 

in farming with respect to a farming operation if— 

‘‘(i) the person makes a significant contribution 

(based on the total value of the farming operation) 

to the farming operation of— 

‘‘(I) capital, equipment, or land; and 

‘‘(II) personal labor or active personal management; 

‘‘(ii) the person’s share of the profits or losses 

from the farming operation is commensurate with the 

contributions of the person to the farming operation; 

and 

‘‘(iii) the contributions of the person are at risk; 

‘‘(B) a legal entity that is a corporation, joint stock 

company, association, limited partnership, charitable 

organization, or other similar entity determined by the 

Secretary (including any such legal entity participating 

in the farming operation as a partner in a general partnership, a participant in a joint venture, a grantor of a revocable trust, or as a participant in a similar legal entity 

as determined by the Secretary) shall be considered as 

actively engaged in farming with respect to a farming 

operation if— 

‘‘(i) the legal entity separately makes a significant 

contribution (based on the total value of the farming 

operation) of capital, equipment, or land; 

‘‘(ii) the stockholders or members collectively make 

a significant contribution of personal labor or active 

personal management to the operation; and 

‘‘(iii) the standards provided in clauses (ii) and 

(iii) of subparagraph (A), as applied to the legal entity, 

are met by the legal entity; 

‘‘(C) if a legal entity that is a general partnership, 

joint venture, or similar entity, as determined by the Secretary, separately makes a significant contribution (based 

on the total value of the farming operation involved) of 

capital, equipment, or land, and the standards provided 

in clauses (ii) and (iii) of subparagraph (A), as applied 

to the legal entity, are met by the legal entity, the partners 

or members making a significant contribution of personal 

labor or active personal management shall be considered 
H. R. 2419—87 

to be actively engaged in farming with respect to the 

farming operation involved; and 

‘‘(D) in making determinations under this subsection 

regarding equipment and personal labor, the Secretary 

shall take into consideration the equipment and personal 

labor normally and customarily provided by farm operators 

in the area involved to produce program crops. 

‘‘(c) SPECIAL CLASSES ACTIVELY ENGAGED.— 

‘‘(1) LANDOWNER.—A person or legal entity that is a landowner contributing the owned land to a farming operation 

shall be considered to be actively engaged in farming with 

respect to the farming operation if— 

‘‘(A) the landowner receives rent or income for the 

use of the land based on the production on the land or 

the operating results of the operation; and 

‘‘(B) the person or legal entity meets the standards 

provided in clauses (ii) and (iii) of subsection (b)(2)(A). 

‘‘(2) ADULT FAMILY MEMBER.—If a majority of the participants in a farming operation are family members, an adult 

family member shall be considered to be actively engaged in 

farming with respect to the farming operation if the person— 

‘‘(A) makes a significant contribution, based on the 

total value of the farming operation, of active personal 

management or personal labor; and 

‘‘(B) with respect to such contribution, meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A). 

‘‘(3) SHARECROPPER.—A sharecropper who makes a significant contribution of personal labor to a farming operation shall 

be considered to be actively engaged in farming with respect 

to the farming operation if the contribution meets the standards 

provided in clauses (ii) and (iii) of subsection (b)(2)(A). 

‘‘(4) GROWERS OF HYBRID SEED.—In determining whether 

a person or legal entity growing hybrid seed under contract 

shall be considered to be actively engaged in farming, the 

Secretary shall not take into consideration the existence of 

a hybrid seed contract. 

‘‘(5) CUSTOM FARMING SERVICES.— 

‘‘(A) IN GENERAL.—A person or legal entity receiving 

custom farming services shall be considered separately 

eligible for payment limitation purposes if the person or 

legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (4) of this subsection. 

‘‘(B) PROHIBITION.—No other rules with respect to custom farming shall apply. 

‘‘(6) SPOUSE.—If 1 spouse (or estate of a deceased spouse) 

is determined to be actively engaged, the other spouse shall 

be determined to have met the requirements of subsection 

(b)(2)(A)(i)(II). 

‘‘(d) CLASSES NOT ACTIVELY ENGAGED.— 

‘‘(1) CASH RENT LANDLORD.—A landlord contributing land 

to a farming operation shall not be considered to be actively 

engaged in farming with respect to the farming operation if 

the landlord receives cash rent, or a crop share guaranteed 

as to the amount of the commodity to be paid in rent, for 

the use of the land. 
H. R. 2419—88 

‘‘(2) OTHER PERSONS AND LEGAL ENTITIES.—Any other person or legal entity that the Secretary determines does not 

meet the standards described in subsections (b)(2) and (c) shall 

not be considered to be actively engaged in farming with respect 

to a farming operation.’’. 

(e) DENIAL OF PROGRAM BENEFITS.—Section 1001B of the Food 

Security Act of 1985 (7 U.S.C. 1308–2) is amended to read as 

follows: 

‘‘SEC. 1001B. DENIAL OF PROGRAM BENEFITS. 

‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A person or legal 

entity shall be ineligible to receive payments specified in subsections 

(b) and (c) of section 1001 for the crop year, and the succeeding 

crop year, in which the Secretary determines that the person or 

legal entity— 

‘‘(1) failed to comply with section 1001A(b) and adopted 

or participated in adopting a scheme or device to evade the 

application of section 1001, 1001A, or 1001C; or 

‘‘(2) intentionally concealed the interest of the person or 

legal entity in any farm or legal entity engaged in farming. 

‘‘(b) EXTENDED INELIGIBILITY.—If the Secretary determines that 

a person or legal entity, for the benefit of the person or legal 

entity or the benefit of any other person or legal entity, has knowingly engaged in, or aided in the creation of a fraudulent document, 

failed to disclose material information relevant to the administration of sections 1001 through 1001F, or committed other equally 

serious actions (as identified in regulations issued by the Secretary), 

the Secretary may for a period not to exceed 5 crop years deny 

the issuance of payments to the person or legal entity. 

‘‘(c) PRO RATA DENIAL.— ‘‘(1) IN GENERAL.—Payments otherwise owed to a person 

or legal entity described in subsections (a) or (b) shall be 

denied in a pro rata manner based on the ownership interest 

of the person or legal entity in a farm. 

‘‘(2) CASH RENT TENANT.—Payments otherwise payable to 

a person or legal entity shall be denied in a pro rata manner 

if the person or legal entity is a cash rent tenant on a farm 

owned or under the control of a person or legal entity with 

respect to which a determination has been made under subsection (a) or (b). 

‘‘(d) JOINT AND SEVERAL LIABILITY.—Any legal entity (including 

partnerships and joint ventures) and any member of any legal 

entity determined to have knowingly participated in a scheme or 

device to evade, or that has the purpose of evading, sections 1001, 

1001A, or 1001C shall be jointly and severally liable for any 

amounts that are payable to the Secretary as the result of the 

scheme or device (including amounts necessary to recover those 

amounts). 

‘‘(e) RELEASE.—The Secretary may partially or fully release 

from liability any person or legal entity who cooperates with the 

Secretary in enforcing sections 1001, 1001A, and 1001C, and this 

section.’’. 

(f) CONFORMING AMENDMENT TO APPLY DIRECT ATTRIBUTION

TO NAP.— 

(1) IN GENERAL.—Section 196(i) of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is 

amended— 
H. R. 2419—89 

(A) by striking paragraphs (1) and (2) and inserting 

the following: 

‘‘(1) DEFINITIONS.—In this subsection, the terms ‘legal 

entity’ and ‘person’ have the meanings given those terms in 

section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 

1308(a)). 

‘‘(2) PAYMENT LIMITATION.—The total amount of payments 

received, directly or indirectly, by a person or legal entity 

(excluding a joint venture or general partnership) for any crop 

year may not exceed $100,000.’’; 

(B) by striking paragraph (4) and inserting the following: 

‘‘(4) ADJUSTED GROSS INCOME LIMITATION.—A person or 

legal entity that has an average adjusted gross income in 

excess of the average adjusted gross income limitation 

applicable under section 1001D(b)(1)(A) of the Food Security 

Act of 1985 (7 U.S.C. 1308–3a(b)(1)(A)), or a successor provision, 

shall not be eligible to receive noninsured crop disaster assistance under this section.’’; and 

(C) in paragraph (5)— 

(i) by striking ‘‘necessary to ensure’’ and inserting 

‘‘necessary— 

‘‘(A) to ensure’’; and 

(ii) by striking ‘‘this subsection.’’ and inserting the 

following: ‘‘this subsection; and 

‘‘(B) to ensure that payments under this section are 

attributed to a person or legal entity (excluding a joint 

venture or general partnership) in accordance with the 

terms and conditions of sections 1001 through 1001D of 

the Food Security Act of 1985 (7 U.S.C. 1308 et seq.), 

as determined by the Secretary.’’. 

(2) TRANSITION.—Section 196(i) of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as 

in effect on September 30, 2007, shall apply with respect to 

the 2007 and 2008 crops of any eligible crop. 

(g) CONFORMING AMENDMENTS.— 

(1) Section 1009(e) of the Food Security Act of 1985 (7 

U.S.C. 1308a(e)) is amended in the second sentence by striking 

‘‘of $50,000’’. 

(2) Section 609(b)(1) of the Emergency Livestock Feed 

Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by 

inserting ‘‘(before the amendment made by section 1703(a) of 

the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1985’’. 

(3) Section 524(b)(3) of the Federal Crop Insurance Act 

(7 U.S.C. 1524(b)(3)) is amended by inserting ‘‘(before the 

amendment made by section 1703(a) of the Food, Conservation, 

and Energy Act of 2008)’’ after ‘‘1308(5)))’’. 

(4) Section 10204(c)(1) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by 

inserting ‘‘(before the amendment made by section 1703(a) of 

the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1308)’’. 

(5) Section 1271(c)(3)(A) of the Food, Agriculture, Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) is 

amended by inserting ‘‘(before the amendment made by section 

1703(a) of the Food, Conservation, and Energy Act of 2008)’’ 

after ‘‘1308)’’. 
H. R. 2419—90 

(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 

2401(2)) is amended by inserting ‘‘(before the amendment made 

by section 1703(a) of the Food, Conservation, and Energy Act 

of 2008)’’ before the period at the end. 

(h) TRANSITION.—Section 1001, 1001A, and 1001B of the Food 

Security Act of 1985 (7 U.S.C. 1308, 1308–1, 1308–2), as in effect 

on September 30, 2007, shall continue to apply with respect to 

the 2007 and 2008 crops of any covered commodity or peanuts. 

SEC. 1604. ADJUSTED GROSS INCOME LIMITATION. 

(a) IN GENERAL.—Section 1001D of the Food Security Act of 

1985 (7 U.S.C. 1308–3a(e)) is amended to read as follows: 

‘‘SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION. 

‘‘(a) DEFINITIONS.— ‘‘(1) IN GENERAL.—In this section: 

‘‘(A) AVERAGE ADJUSTED GROSS INCOME.—The term 

‘average adjusted gross income’, with respect to a person 

or legal entity, means the average of the adjusted gross 

income or comparable measure of the person or legal entity 

over the 3 taxable years preceding the most immediately 

preceding complete taxable year, as determined by the 

Secretary. 

‘‘(B) AVERAGE ADJUSTED GROSS FARM INCOME.—The 

term ‘average adjusted gross farm income’, with respect 

to a person or legal entity, means the average of the 

portion of adjusted gross income of the person or legal 

entity that is attributable to activities related to farming, 

ranching, or forestry for the 3 taxable years described 

in subparagraph (A), as determined by the Secretary in 

accordance with subsection (c). 

‘‘(C) AVERAGE ADJUSTED GROSS NONFARM INCOME.— The term ‘average adjusted gross nonfarm income’, with 

respect to a person or legal entity, means the difference 

between— 

‘‘(i) the average adjusted gross income of the person 

or legal entity; and 

‘‘(ii) the average adjusted gross farm income of 

the person or legal entity. 

‘‘(2) SPECIAL RULES FOR CERTAIN PERSONS AND LEGAL ENTI- TIES.—In the case of a legal entity that is not required to 

file a Federal income tax return or a person or legal entity 

that did not have taxable income in 1 or more of the taxable 

years used to determine the average under subparagraph (A) 

or (B) of paragraph (1), the Secretary shall provide, by regulation, a method for determining the average adjusted gross 

income, the average adjusted gross farm income, and the average adjusted gross nonfarm income of the person or legal entity 

for purposes of this section. 

‘‘(3) ALLOCATION OF INCOME.—On the request of any person 

filing a joint tax return, the Secretary shall provide for the 

allocation of average adjusted gross income, average adjusted 

gross farm income, and average adjusted gross nonfarm income 

among the persons filing the return if— 

‘‘(A) the person provides a certified statement by a 

certified public accountant or attorney that specifies the 

method by which the average adjusted gross income, average adjusted gross farm income, and average adjusted gross 
H. R. 2419—91 

nonfarm income would have been declared and reported 

had the persons filed 2 separate returns; and 

‘‘(B) the Secretary determines that the method 

described in the statement is consistent with the information supporting the filed joint tax return. 

‘‘(b) LIMITATIONS.— 

‘‘(1) COMMODITY PROGRAMS.— 

‘‘(A) NONFARM LIMITATION.—Notwithstanding any 

other provision of law, a person or legal entity shall not 

be eligible to receive any benefit described in subparagraph 

(C) during a crop, fiscal, or program year, as appropriate, 

if the average adjusted gross nonfarm income of the person 

or legal entity exceeds $500,000. 

‘‘(B) FARM LIMITATION.—Notwithstanding any other 

provision of law, a person or legal entity shall not be 

eligible to receive a direct payment under subtitle A or 

C of title I of the Food, Conservation, and Energy Act 

of 2008 during a crop year, if the average adjusted gross 

farm income of the person or legal entity exceeds $750,000. 

‘‘(C) COVERED BENEFITS.—Subparagraph (A) applies 

with respect to the following: 

‘‘(i) A direct payment or counter-cyclical payment 

under subtitle A or C of title I of the Food, Conservation, and Energy Act of 2008 or an average crop revenue election payment under subtitle A of title I of 

that Act. 

‘‘(ii) A marketing loan gain or loan deficiency payment under subtitle B or C of title I of the Food, 

Conservation, and Energy Act of 2008. 

‘‘(iii) A payment or benefit under section 196 of 

the Federal Agriculture Improvement and Reform Act 

of 1996 (7 U.S.C. 7333). 

‘‘(iv) A payment or benefit under section 1506 of 

the Food, Conservation, and Energy Act of 2008. 

‘‘(v) A payment or benefit under title IX of the 

Trade Act of 1974 or subtitle B of the Federal Crop 

Insurance Act. 

‘‘(2) CONSERVATION PROGRAMS.— 

‘‘(A) LIMITS.— 

‘‘(i) IN GENERAL.—Notwithstanding any other 

provision of law, except as provided in clause (ii), a 

person or legal entity shall not be eligible to receive 

any benefit described in subparagraph (B) during a 

crop, fiscal, or program year, as appropriate, if the 

average adjusted gross nonfarm income of the person 

or legal entity exceeds $1,000,000, unless not less than 

66.66 percent of the average adjusted gross income 

of the person or legal entity is average adjusted gross 

farm income. 

‘‘(ii) EXCEPTION.—The Secretary may waive the 

limitation established under clause (i) on a case-bycase basis if the Secretary determines that environmentally sensitive land of special significance would 

be protected. 

‘‘(B) COVERED BENEFITS.—Subparagraph (A) applies 

with respect to the following: 
H. R. 2419—92 

‘‘(i) A payment or benefit under title XII of this 

Act. 

‘‘(ii) A payment or benefit under title II of the 

Farm Security and Rural Investment Act of 2002 

(Public Law 107–171; 116 Stat. 223) or title II of the 

Food, Conservation, and Energy Act of 2008. 

‘‘(iii) A payment or benefit under section 524(b) 

of the Federal Crop Insurance Act (7 U.S.C. 1524(b)). 

‘‘(c) INCOME DETERMINATION.— 

‘‘(1) IN GENERAL.—In determining the average adjusted 

gross farm income of a person or legal entity, the Secretary 

shall include income or benefits derived from or related to— 

‘‘(A) the production of crops, including specialty crops 

(as defined in section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108– 

465)) and unfinished raw forestry products; 

‘‘(B) the production of livestock (including cattle, elk, 

reindeer, bison, horses, deer, sheep, goats, swine, poultry, 

fish, and other aquacultural products used for food, honeybees, and other animals designated by the Secretary) and 

products produced by, or derived from, livestock; 

‘‘(C) the production of farm-based renewable energy 

(as defined in section 9001 of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 8101)); 

‘‘(D) the sale, including the sale of easements and 

development rights, of farm, ranch, or forestry land, water 

or hunting rights, or environmental benefits; 

‘‘(E) the rental or lease of land or equipment used 

for farming, ranching, or forestry operations, including 

water or hunting rights; 

‘‘(F) the processing (including packing), storing 

(including shedding), and transporting of farm, ranch, and 

forestry commodities, including renewable energy; 

‘‘(G) the feeding, rearing, or finishing of livestock; 

‘‘(H) the sale of land that has been used for agriculture; 

‘‘(I) payments or other benefits received under any 

program authorized under title I of the Farm Security 

and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.) 

or title I of the Food, Conservation, and Energy Act of 

2008; 

‘‘(J) payments or other benefits received under any 

program authorized under title XII of this Act, title II 

of the Farm Security and Rural Investment Act of 2002 

(Public Law 107–171; 116 Stat. 223), or title II of the 

Food, Conservation, and Energy Act of 2008; 

‘‘(K) payments or other benefits received under section 

196 of the Federal Agriculture Improvement and Reform 

Act of 1996 (7 U.S.C. 7333); 

‘‘(L) payments or other benefits received under title 

IX of the Trade Act of 1974 or subtitle B of the Federal 

Crop Insurance Act; 

‘‘(M) risk management practices, including benefits 

received under a program authorized under the Federal 

Crop Insurance Act (7 U.S.C. 1501 et seq.) (including a 

catastrophic risk protection plan offered under section 

508(b) of that Act (7 U.S.C. 1508(b))); and 
H. R. 2419—93 

‘‘(N) any other activity related to farming, ranching, 

or forestry, as determined by the Secretary. 

‘‘(2) INCOME DERIVED FROM FARMING, RANCHING, OR FORESTRY.—In determining the average adjusted gross farm income 

of a person or legal entity, in addition to the inclusions 

described in paragraph (1), the Secretary shall include any 

income reported on the Schedule F or other schedule used 

by the person or legal entity to report income from farming, 

ranching, or forestry operations to the Internal Revenue 

Service, to the extent such income is not already included 

under paragraph (1). 

‘‘(3) SPECIAL RULE.—If not less than 66.66 percent of the 

average adjusted gross income of a person or legal entity is 

derived from farming, ranching, or forestry operations described 

in paragraphs (1) and (2), in determining the average adjusted 

gross farm income of the person or legal entity, the Secretary 

shall also include— 

‘‘(A) the sale of equipment to conduct farm, ranch, 

or forestry operations; and 

‘‘(B) the provision of production inputs and services 

to farmers, ranchers, foresters, and farm operations. 

‘‘(d) ENFORCEMENT.— ‘‘(1) IN GENERAL.—To comply with subsection (b), at least 

once every 3 years a person or legal entity shall provide to 

the Secretary— 

‘‘(A) a certification by a certified public accountant 

or another third party that is acceptable to the Secretary 

that the average adjusted gross income, average adjusted 

gross farm income, and average adjusted gross nonfarm 

income of the person or legal entity does not exceed the 

applicable limitation specified in that subsection; or 

‘‘(B) information and documentation regarding the 

average adjusted gross income, average adjusted gross farm 

income, and average adjusted gross nonfarm income of 

the person or legal entity through other procedures established by the Secretary. 

‘‘(2) DENIAL OF PROGRAM BENEFITS.—If the Secretary determines that a person or legal entity has failed to comply with 

this section, the Secretary shall deny the issuance of applicable 

payments and benefits specified in paragraphs (1)(C) and (2)(B) 

of subsection (b) to the person or legal entity, under similar 

terms and conditions as described in section 1001B. 

‘‘(3) AUDIT.—The Secretary shall establish statistically valid 

procedures under which the Secretary shall conduct targeted 

audits of such persons or legal entities as the Secretary determines are most likely to exceed the limitations under subsection 

(b). 

‘‘(e) COMMENSURATE REDUCTION.—In the case of a payment 

or benefit described in paragraphs (1)(C) and (2)(B) of subsection 

(b) made in a crop, program, or fiscal year, as appropriate, to 

an entity, general partnership, or joint venture, the amount of 

the payment or benefit shall be reduced by an amount that is 

commensurate with the direct and indirect ownership interest in 

the entity, general partnership, or joint venture of each person 

who has an average adjusted gross income, average adjusted gross 

farm income, or average adjusted gross nonfarm income in excess 

of the applicable limitation specified in subsection (b). 
H. R. 2419—94 

‘‘(f) EFFECTIVE PERIOD.—This section shall apply only during 

the 2009 through 2012 crop, program, or fiscal years, as appropriate.’’. 

(b) TRANSITION.—Section 1001D of the Food Security Act of 

1985 (7 U.S.C. 1308–3a), as in effect on September 30, 2007, shall 

apply with respect to the 2007 and 2008 crop, fiscal, or program 

year, as appropriate, for each program described in paragraphs 

(1)(C) and (2)(B) of subsection (b) of that section (as amended 

by subsection (a)). 

SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COVERED OILSEED PRODUCERS. 

(a) INCENTIVE PAYMENTS REQUIRED.—Subject to subsection (b) 

and the availability of appropriations under subsection (h), the 

Secretary shall use funds made available under subsection (h) to 

provide quality incentive payments for the production of oilseeds 

with specialized traits that enhance human health, as determined 

by the Secretary. 

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

under this section only for the production of an oilseed variety 

that has, as determined by the Secretary— 

(1) been demonstrated to improve the health profile of 

the oilseed for use in human consumption by— 

(A) reducing or eliminating the need to partially hydrogenate the oil derived from the oilseed for use in human 

consumption; or 

(B) adopting new technology traits; and 

(2) 1 or more impediments to commercialization. 

(c) REQUEST FOR PROPOSALS.— 

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

this section for a crop year, the Secretary shall issue a request 

for proposals for payments under this section. 

(2) MULTIYEAR PROPOSALS.—A proponent may submit a 

multiyear proposal for payments under this section. 

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

under this section shall include a description of— 

(A) how use of the oilseed enhances human health; 

(B) the impediments to commercial use of the oilseed; 

(C) each oilseed variety described in subsection (b) 

and the value of the oilseed variety as a matter of public 

policy; 

(D) a range for the base price and premiums per bushel 

or hundredweight to be paid to producers; 

(E) a per bushel or hundredweight amount of incentive 

payments requested for each year under this section that 

does not exceed 1⁄3 of the total premium offered for any 

year; 

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

which incentive payments are to be provided to producers; 

and 

(G) the targeted total quantity of production and estimated acres needed to produce the targeted quantity for 

each year under this section. 

(d) CONTRACTS FOR PRODUCTION.— 

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

proposals submitted under subsection (c) on a timely basis. 
H. R. 2419—95 

(2) TIMING OF PAYMENTS.—The Secretary shall make payments to producers under this section after the Secretary 

receives documentation that the premium required under a 

contract has been paid to covered producers. 

(e) ADMINISTRATION.— 

(1) IN GENERAL.—If funding provided for a crop year is 

not fully allocated under the initial request for proposals under 

subsection (c), the Secretary shall issue additional requests 

for proposals for subsequent crop years under this section. 

(2) PRORATED PAYMENTS.—If funding provided for a crop 

year is less than the amount otherwise approved by the Secretary or for which approval is sought, the Secretary shall 

prorate the payments or approvals in a manner determined 

by the Secretary so that the total payments do not exceed 

the funding level. 

(f) PROPRIETARY INFORMATION.—The Secretary shall protect 

proprietary information provided to the Secretary for the purpose 

of administering this section. 

(g) PROGRAM COMPLIANCE AND PENALTIES.— (1) GUARANTEE.—The proponent, if approved, shall be 

required to guarantee that the oilseed on which a payment 

is made by the Secretary under this section is used for human 

consumption as described in the proposal, as approved by the 

Secretary. 

(2) NONCOMPLIANCE.—If oilseeds on which a payment is 

made by the Secretary under this section are not actually 

used for the purpose the payment is made, the proponent 

shall be required to pay to the Secretary an amount equal 

to, as determined by the Secretary— 

(A) in the case of an inadvertent failure, twice the 

amount of the payment made by the Secretary under this 

section to the producer of the oilseeds; and 

(B) in any other case, up to twice the full value of 

the oilseeds involved. 

(3) DOCUMENTATION.—The Secretary may require such 

assurances and documentation as may be needed to enforce 

the guarantee. 

(4) ADDITIONAL PENALTIES.— (A) IN GENERAL.—In addition to payments required 

under paragraph (2), the Secretary may impose penalties 

on additional persons that use oilseeds the use of which 

is restricted under this section for a purpose other than 

the intended use. 

(B) AMOUNT.—The amount of a penalty under this 

paragraph shall— 

(i) be in an amount determined appropriated by 

the Secretary; but 

(ii) not to exceed twice the full value of the oilseeds. 

(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2009 through 2012. 

SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES. 

Section 164 of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7284) is amended by striking ‘‘and 

title I of the Farm Security and Rural Investment Act of 2002’’ 

each place it appears and inserting ‘‘title I of the Farm Security 
H. R. 2419—96 

and Rural Investment Act of 2002, and title I of the Food, Conservation, and Energy Act of 2008’’. 

SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY 

REGARDING LOANS. 

Section 166 of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7286) is amended— 

(1) by striking ‘‘and subtitle B and C of title I of the 

Farm Security and Rural Investment Act of 2002’’ each place 

it appears and inserting ‘‘, title I of the Farm Security and 

Rural Investment Act of 2002, and title I of the Food, Conservation, and Energy Act of 2008’’; and 

(2) in subsection (c), by adding at the end the following: 

‘‘(3) TERMINATION OF AUTHORITY.—The authority to carry 

out paragraph (1) terminates effective ending with the 2009 

crop year.’’. 

SEC. 1608. ASSIGNMENT OF PAYMENTS. 

(a) IN GENERAL.—The provisions of section 8(g) of the Soil 

Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 

relating to assignment of payments, shall apply to payments made 

under this title. 

(b) NOTICE.—The producer making the assignment, or the 

assignee, shall provide the Secretary with notice, in such manner 

as the Secretary may require, of any assignment made under this 

section. 

SEC. 1609. TRACKING OF BENEFITS. 

As soon as practicable after the date of enactment of this 

Act, the Secretary may track the benefits provided, directly or 

indirectly, to individuals and entities under titles I and II and 

the amendments made by those titles. 

SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS. 

Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) 

is amended— 

(1) by striking subsection (d); and 

(2) by redesignating subsections (e) through (g) as subsections (d) through (f), respectively. 

SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER FARM COMMODITY PROGRAMS. 

(a) REGULATIONS.—Not later than 180 days after the date of 

enactment of this Act, the Secretary shall promulgate regulations 

that— 

(1) describe the circumstances under which, in order to 

allow for the settlement of estates and for related purposes, 

payments may be issued in the name of a deceased individual; 

and 

(2) preclude the issuance of payments to, and on behalf 

of, deceased individuals that were not eligible for the payments. 

(b) COORDINATION.—At least twice each year, the Secretary 

shall reconcile the social security numbers of all individuals who 

receive payments under this title, whether directly or indirectly, 

with the Social Security Administration to determine if the individuals are alive. 
H. R. 2419—97 

SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE HARD WHITE WHEAT SEED.—The term ‘‘eligible 

hard white wheat seed’’ means hard white wheat seed that, 

as determined by the Secretary, is— 

(A) certified; 

(B) of a variety that is suitable for the State in which 

the seed will be planted; 

(C) rated at least superior with respect to quality; 

and 

(D) specifically approved under a seed establishment 

program established by the State Department of Agriculture and the State Wheat Commission of the 1 or more 

States in which the seed will be planted. 

(2) PROGRAM.—The term ‘‘program’’ means the hard white 

wheat development program established under subsection 

(b)(1). 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Agriculture, in consultation with the State Departments 

of Agriculture and the State Wheat Commissions of the States 

in regions in which hard white wheat is produced, as determined by the Secretary. 

(b) ESTABLISHMENT.— (1) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall establish a hard white wheat development program in accordance with paragraph (2) to promote 

the establishment of hard white wheat as a viable market 

class of wheat in the United States by encouraging production 

of at least 240,000,000 bushels of hard white wheat by 2012. 

(2) PAYMENTS.— 

(A) IN GENERAL.—Subject to subparagraphs (B) and 

(C) and subsection (c), if funds are made available for 

any of the 2009 through 2012 crops of hard white wheat, 

the Secretary shall make available incentive payments to 

producers of those crops. 

(B) ACREAGE LIMITATION.—The Secretary shall carry 

out subparagraph (A) subject to a regional limitation determined by the Secretary on the number of acres for which 

payments may be received that takes into account planting 

history and potential planting, but does not exceed a total 

of 2,900,000 acres or the equivalent volume of production 

based on a yield of 50 bushels per acre. 

(C) PAYMENT LIMITATIONS.—Payments to producers on 

a farm described in subparagraph (A) shall be— 

(i) in an amount that is not less than $0.20 per 

bushel; and 

(ii) in an amount that is not less than $2.00 per 

acre for planting eligible hard white wheat seed. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section $35,000,000 for the 

period of fiscal years 2009 through 2012. 

SEC. 1613. DURUM WHEAT QUALITY PROGRAM. 

(a) IN GENERAL.—Subject to the availability of funds under 

subsection (c), the Secretary shall provide compensation to producers of durum wheat in an amount not to exceed 50 percent 

of the actual cost of fungicides applied to a crop of durum wheat 
H. R. 2419—98 

of the producers to control Fusarium head blight (wheat scab) 

on acres certified to have been planted to Durum wheat in a 

crop year. 

(b) INSUFFICIENT FUNDS.—If the total amount of funds appropriated for a fiscal year under subsection (c) are insufficient to 

fulfill all eligible requests for compensation under this section, 

the Secretary shall prorate the compensation payments in a manner 

determined by the Secretary to be equitable. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $10,000,000 for each 

of fiscal years 2009 through 2012. 

SEC. 1614. STORAGE FACILITY LOANS. 

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary shall establish a storage facility 

loan program to provide funds for producers of grains, oilseeds, 

pulse crops, hay, renewable biomass, and other storable commodities (other than sugar), as determined by the Secretary, to construct 

or upgrade storage and handling facilities for the commodities. 

(b) ELIGIBLE PRODUCERS.—A storage facility loan under this 

section shall be made available to any producer described in subsection (a) that, as determined by the Secretary— 

(1) has a satisfactory credit history; 

(2) has a need for increased storage capacity; and 

(3) demonstrates an ability to repay the loan. 

(c) TERM OF LOANS.—A storage facility loan under this section 

shall have a maximum term of 12 years. 

(d) LOAN AMOUNT.—The maximum principal amount of a storage facility loan under this section shall be $500,000. 

(e) LOAN DISBURSEMENTS.—The Secretary shall provide for 1 

partial disbursement of loan principal and 1 final disbursement 

of loan principal, as determined to be appropriate and subject 

to acceptable documentation, to facilitate the purchase and construction of eligible facilities. 

(f) LOAN SECURITY.—Approval of a storage facility loan under 

this section shall— 

(1) require the borrower to provide loan security to the 

Secretary, in the form of— 

(A) a lien on the real estate parcel on which the storage 

facility is located; or 

(B) such other security as is acceptable to the Secretary; 

(2) under such rules and regulations as the Secretary may 

prescribe, not require a severance agreement from the holder 

of any prior lien on the real estate parcel on which the storage 

facility is located, if the borrower— 

(A) agrees to increase the down payment on the storage 

facility by an amount determined appropriate by the Secretary; or 

(B) provides other security acceptable to the Secretary; 

and 

(3) allow a borrower, upon the approval of the Secretary, 

to define a subparcel of real estate as security for the storage 

facility loan if the subparcel is— 

(A) of adequate size and value to adequately secure 

the loan; and 
H. R. 2419—99 

(B) not subject to any other liens or mortgages that 

are superior to the lien interest of the Commodity Credit 

Corporation. 

SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES. 

Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic 

Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended— 

(1) by redesignating subclauses (I) and (II) as items (aa) 

and (bb), respectively, and indenting appropriately; 

(2) in the matter preceding item (aa) (as redesignated by 

paragraph (1)), by striking ‘‘A committee established’’ and 

inserting the following: 

‘‘(I) IN GENERAL.—Except as provided in subclause (II), a committee established’’; and 

(3) by adding at the end the following: 

‘‘(II) COMBINATION OR CONSOLIDATION OF

AREAS.—A committee established by combining or 

consolidating 2 or more county or area committees 

shall consist of not fewer than 3 nor more than 

11 members that— 

‘‘(aa) are fairly representative of the agricultural producers within the area covered by 

the county, area, or local committee; and 

‘‘(bb) are elected by the agricultural producers that participate or cooperate in programs administered within the area under the 

jurisdiction of the county, area, or local committee. 

‘‘(III) REPRESENTATION OF SOCIALLY DISADVAN- TAGED FARMERS AND RANCHERS.—The Secretary 

shall develop procedures to maintain representation of socially disadvantaged farmers and 

ranchers on combined or consolidated committees. 

‘‘(IV) ELIGIBILITY FOR MEMBERSHIP.—Notwithstanding any other producer eligibility requirements for service on county or area committees, 

if a county or area is consolidated or combined, 

a producer shall be eligible to serve only as a 

member of the county or area committee that the 

producer elects to administer the farm records of 

the producer.’’. 

SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES. 

Public Law 108–470 (7 U.S.C. 7416a) is amended— 

(1) in subsection (a), by striking ‘‘may’’ and inserting ‘‘shall’’; 

and 

(2) by adding at the end the following: 

‘‘(c) PROHIBITION ON CHARGING CERTAIN FEES.—The Secretary 

may not charge any fees or related costs for the collection of commodity assessments pursuant to this Act.’’. 

SEC. 1617. SIGNATURE AUTHORITY. 

(a) IN GENERAL.—In carrying out this title and title II and 

amendments made by those titles, if the Secretary approves a 

document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority 

of any person signing the document on behalf of the applicant 

or any other individual, entity, general partnership, or joint venture, 
H. R. 2419—100 

or the documents relied upon were determined inadequate or 

invalid, unless the person signing the program document knowingly 

and willfully falsified the evidence of signature authority or a 

signature. 

(b) AFFIRMATION.— 

(1) IN GENERAL.—Nothing in this section prohibits the Secretary from asking a proper party to affirm any document 

that otherwise would be considered approved under subsection 

(a). 

(2) NO RETROACTIVE EFFECT.—A denial of benefits based 

on a lack of affirmation under paragraph (1) shall not be 

retroactive with respect to third-party producers who were not 

the subject of the erroneous representation of authority, if 

the third-party producers— 

(A) relied on the prior approval by the Secretary of 

the documents in good faith; and 

(B) substantively complied with all program requirements 

SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY. 

Not later than 180 days after the date of enactment of this 

Act, the Secretary shall transmit to the Committee on Agriculture 

and the Committee on Appropriations of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry 

and the Committee on Appropriations of the Senate a report prepared by a third party that describes— 

(1) the data processing and information technology challenges experienced in local offices of the Farm Service Agency; 

(2) the impact of those challenges on service to producers, 

on efficiency of personnel, and on implementation of this Act; 

(3) the need for information technology system upgrades 

of the Farm Service Agency relative to other agencies of the 

Department of Agriculture; 

(4) the detailed plan needed to fulfill the needs of the 

Department that are identified in paragraph (3), including 

hardware, software, and infrastructure requirements; 

(5) the estimated cost and timeframe for long-term modernization and stabilization of Farm Service Agency information 

technology systems; 

(6) the benefits associated with such modernization and 

stabilization; and 

(7) an evaluation of the existence of appropriate oversight 

within the Department to ensure that funds needed for systems 

upgrades can be appropriately managed. 

SEC. 1619. INFORMATION GATHERING. 

(a) GEOSPATIAL SYSTEMS.—The Secretary shall ensure that all 

the geospatial data of the agencies of the Department of Agriculture 

are portable and standardized. 

(b) LIMITATION ON DISCLOSURES.— 

(1) DEFINITION OF AGRICULTURAL OPERATION.—In this subsection, the term ‘‘agricultural operation’’ includes the production and marketing of agricultural commodities and livestock. 

(2) PROHIBITION.—Except as provided in paragraphs (3) 

and (4), the Secretary, any officer or employee of the Department of Agriculture, or any contractor or cooperator of the 

Department, shall not disclose— 
H. R. 2419—101 

(A) information provided by an agricultural producer 

or owner of agricultural land concerning the agricultural 

operation, farming or conservation practices, or the land 

itself, in order to participate in programs of the Department; or 

(B) geospatial information otherwise maintained by the 

Secretary about agricultural land or operations for which 

information described in subparagraph (A) is provided. 

(3) AUTHORIZED DISCLOSURES.— 

(A) LIMITED RELEASE OF INFORMATION.—If the Secretary determines that the information described in paragraph (2) will not be subsequently disclosed except in 

accordance with paragraph (4), the Secretary may release 

or disclose the information to a person or Federal, State, 

local, or tribal agency working in cooperation with the 

Secretary in any Department program— 

(i) when providing technical or financial assistance 

with respect to the agricultural operation, agricultural 

land, or farming or conservation practices; or 

(ii) when responding to a disease or pest threat 

to agricultural operations, if the Secretary determines 

that a threat to agricultural operations exists and the 

disclosure of information to a person or cooperating 

government entity is necessary to assist the Secretary 

in responding to the disease or pest threat as authorized by law. 

(4) EXCEPTIONS.—Nothing in this subsection affects— 

(A) the disclosure of payment information (including 

payment information and the names and addresses of 

recipients of payments) under any Department program 

that is otherwise authorized by law; 

(B) the disclosure of information described in paragraph (2) if the information has been transformed into 

a statistical or aggregate form without naming any— 

(i) individual owner, operator, or producer; or 

(ii) specific data gathering site; or 

(C) the disclosure of information described in paragraph (2) pursuant to the consent of the agricultural producer or owner of agricultural land. 

(5) CONDITION OF OTHER PROGRAMS.—The participation of 

the agricultural producer or owner of agricultural land in, 

or receipt of any benefit under, any program administered 

by the Secretary may not be conditioned on the consent of 

the agricultural producer or owner of agricultural land under 

paragraph (4)(C). 

(6) WAIVER OF PRIVILEGE OR PROTECTION.—The disclosure 

of information under paragraph (2) shall not constitute a waiver 

of any applicable privilege or protection under Federal law, 

including trade secret protection. 

SEC. 1620. LEASING OF OFFICE SPACE. 

Not later than 1 year after the date of enactment of this 

Act, the Secretary shall submit to the Committee on Agriculture 

and the Committee on Appropriations of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry 

and the Committee on Appropriations of the Senate a report that 

describes— 
H. R. 2419—102 

(1) the costs and time associated with complying with 

leasing procedures of the General Services Administration relative to the previous independent leasing procedures of the 

Department of Agriculture; 

(2) the additional staffing needs associated with complying 

with those procedures; and 

(3) the value added to the leasing process and the ability 

of the Department to secure best-value leases by complying 

with the General Services Administration leasing procedures. 

SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND 

RANCHERS. 

(a) DEFINITIONS.—In this section: 

(1) AGRICULTURAL COMMODITY.—The term ‘‘agricultural 

commodity’’ has the meaning given the term in section 102 

of the Agricultural Trade Act of 1978 (7 U.S.C. 5602). 

(2) GEOGRAPHICALLY DISADVANTAGED FARMER OR

RANCHER.—The term ‘‘geographically disadvantaged farmer or 

rancher’’ has the meaning given the term in section 10906(a) 

of the Farm Security and Rural Investment Act of 2002 (7 

U.S.C. 2204 note; Public Law 107–171). 

(b) AUTHORIZATION.—Subject to the availability of funds under 

subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for 

activities described in subsection (c). 

(c) TRANSPORTATION.— 

(1) IN GENERAL.—Subject to paragraphs (2) and (3), the 

Secretary may provide direct reimbursement payments to a 

geographically disadvantaged farmer or rancher to transport 

an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year. 

(2) PROOF OF ELIGIBILITY.—To be eligible to receive assistance under paragraph (1), a geographically disadvantaged 

farmer or rancher shall demonstrate to the Secretary that 

transportation of the agricultural commodity or inputs occurred 

over a distance of more than 30 miles, as determined by the 

Secretary. 

(3) AMOUNT.— 

(A) IN GENERAL.—Subject to paragraph (2), the amount 

of direct reimbursement payments made to a geographically 

disadvantaged farmer or rancher under this section for 

a fiscal year shall equal the product obtained by multiplying— 

(i) the amount of costs incurred by the geographically disadvantaged farmer or rancher for transportation of the agricultural commodity or inputs during 

the fiscal year; and 

(ii)(I) the percentage of the allowance for that fiscal 

year under section 5941 of title 5, United States Code, 

for Federal employees stationed in Alaska and Hawaii; 

or 

(II) in the case of an insular area (as defined 

in section 1404 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3103)), a comparable percentage of the allowance for 

the fiscal year, as determined by the Secretary. 
H. R. 2419—103 

(B) LIMITATION.—The total amount of direct reimbursement payments provided by the Secretary under this section shall not exceed $15,000,000 for a fiscal year. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2009 through 2012. 

SEC. 1622. IMPLEMENTATION. 

The Secretary shall make available to the Farm Service Agency 

to carry out this title $50,000,000. 

SEC. 1623. REPEALS. 

(a) COMMISSION ON APPLICATION OF PAYMENT LIMITATIONS.— 

Section 1605 of the Farm Security and Rural Investment Act of 

2002 (7 U.S.C. 7993) is repealed. 

(b) RENEWED AVAILABILITY OF MARKET LOSS ASSISTANCE AND

CERTAIN EMERGENCY ASSISTANCE TO PERSONS THAT FAILED TO

RECEIVE ASSISTANCE UNDER EARLIER AUTHORITIES.—Section 1617 

of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

8000) is repealed. 

TITLE II—CONSERVATION 

Subtitle A—Definitions and Highly 

Erodible Land and Wetland Conservation 

SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD 

SECURITY ACT OF 1985. 

(a) BEGINNING FARMER OR RANCHER.—Section 1201(a) of the 

Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended— 

(1) by redesignating paragraphs (2) through (6), (7) through 

(11), (12), (13) through (15), (16), (17), and (18) as paragraphs 

(3) through (7), (9) through (13), (15), (20) through (22), (24), 

(26), and (27), respectively; and 

(2) by inserting after paragraph (1) the following new paragraph: 

‘‘(2) BEGINNING FARMER OR RANCHER.—The term ‘beginning 

farmer or rancher’ has the meaning given the term in section 

343(a)(8) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1991(a)(8)).’’. 

(b) FARM.—Section 1201(a) of the Food Security Act of 1985 

(16 U.S.C. 3801(a)) is amended by inserting after paragraph (7), 

as redesignated by subsection (a)(1), the following new paragraph: 

‘‘(8) FARM.—The term ‘farm’ means a farm that— 

‘‘(A) is under the general control of one operator; 

‘‘(B) has one or more owners; 

‘‘(C) consists of one or more tracts of land, whether 

or not contiguous; 

‘‘(D) is located within a county or region, as determined 

by the Secretary; and 

‘‘(E) may contain lands that are incidental to the 

production of perennial crops, including conserving uses, 

forestry, and livestock, as determined by the Secretary.’’. 

(c) INDIAN TRIBE.—Section 1201(a) of the Food Security Act 

of 1985 (16 U.S.C. 3801(a)) is amended by inserting after paragraph 
H. R. 2419—104 

(13), as redesignated by subsection (a)(1), the following new paragraph: 

‘‘(14) INDIAN TRIBE.—The term ‘Indian tribe’ has the 

meaning given the term in section 4(e) of the Indian SelfDetermination and Education Assistance Act (25 U.S.C. 

450b(e)).’’. 

(d) INTEGRATED PEST MANAGEMENT; LIVESTOCK; NONINDUSTRIAL PRIVATE FOREST LAND; PERSON AND LEGAL ENTITY.—Section 

1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 

amended by inserting after paragraph (15), as redesignated by 

subsection (a)(1), the following new paragraphs: 

‘‘(16) INTEGRATED PEST MANAGEMENT.—The term 

‘integrated pest management’ means a sustainable approach 

to managing pests by combining biological, cultural, physical, 

and chemical tools in a way that minimizes economic, health, 

and environmental risks. 

‘‘(17) LIVESTOCK.—The term ‘livestock’ means all animals 

raised on farms, as determined by the Secretary. 

‘‘(18) NONINDUSTRIAL PRIVATE FOREST LAND.—The term 

‘nonindustrial private forest land’ means rural land, as determined by the Secretary, that— 

‘‘(A) has existing tree cover or is suitable for growing 

trees; and 

‘‘(B) is owned by any nonindustrial private individual, 

group, association, corporation, Indian tribe, or other private legal entity that has definitive decisionmaking 

authority over the land. 

‘‘(19) PERSON AND LEGAL ENTITY.—For purposes of applying 

payment limitations under subtitle D, the terms ‘person’ and 

‘legal entity’ have the meanings given those terms in section 

1001(a) of this Act (7 U.S.C. 1308(a)).’’. 

(e) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—Section 

1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 

amended by inserting after paragraph (22), as redesignated by 

subsection (a)(1), the following new paragraph: 

‘‘(23) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 

term ‘socially disadvantaged farmer or rancher’ has the 

meaning given the term in section 2501(e)(2) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(e)(2)).’’. 

(f) TECHNICAL ASSISTANCE.—Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after 

paragraph (24), as redesignated by subsection (a)(1), the following 

new paragraph: 

‘‘(25) TECHNICAL ASSISTANCE.—The term ‘technical assistance’ means technical expertise, information, and tools necessary for the conservation of natural resources on land active 

in agricultural, forestry, or related uses. The term includes 

the following: 

‘‘(A) Technical services provided directly to farmers, 

ranchers, and other eligible entities, such as conservation 

planning, technical consultation, and assistance with 

design and implementation of conservation practices. 

‘‘(B) Technical infrastructure, including activities, processes, tools, and agency functions needed to support 

delivery of technical services, such as technical standards, 
H. R. 2419—105 

resource inventories, training, data, technology, monitoring, 

and effects analyses.’’. 

SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO 

HIGHLY ERODIBLE LAND CONSERVATION. 

Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) 

is amended by striking subsection (f) and inserting the following 

new subsection: 

‘‘(f) GRADUATED PENALTIES.— 

‘‘(1) INELIGIBILITY.—No person shall become ineligible 

under section 1211 for program loans, payments, and benefits 

as a result of the failure of the person to actively apply a 

conservation plan, if the Secretary determines that the person 

has acted in good faith and without an intent to violate this 

subtitle. 

‘‘(2) ELIGIBLE REVIEWERS.—A determination of the Secretary, or a designee of the Secretary, under paragraph (1) 

shall be reviewed by the applicable— 

‘‘(A) State Executive Director, with the technical 

concurrence of the State Conservationist; or 

‘‘(B) district director, with the technical concurrence 

of the area conservationist. 

‘‘(3) PERIOD FOR IMPLEMENTATION.—A person who meets 

the requirements of paragraph (1) shall be allowed a reasonable 

period of time, as determined by the Secretary, but not to 

exceed 1 year, during which to implement the measures and 

practices necessary to be considered to be actively applying 

the conservation plan of the person. 

‘‘(4) PENALTIES.— 

‘‘(A) APPLICATION.—This paragraph applies if the Secretary determines that— 

‘‘(i) a person has failed to comply with section 

1211 with respect to highly erodible cropland, and 

has acted in good faith and without an intent to violate 

section 1211; or 

‘‘(ii) the violation— 

‘‘(I) is technical and minor in nature; and 

‘‘(II) has a minimal effect on the erosion control 

purposes of the conservation plan applicable to 

the land on which the violation has occurred. 

‘‘(B) REDUCTION.—If this paragraph applies under 

subparagraph (A), the Secretary shall, in lieu of applying 

the ineligibility provisions of section 1211, reduce program 

benefits described in section 1211 that the producer would 

otherwise be eligible to receive in a crop year by an amount 

commensurate with the seriousness of the violation, as 

determined by the Secretary. 

‘‘(5) SUBSEQUENT CROP YEARS.—Any person whose benefits 

are reduced for any crop year under this subsection shall continue to be eligible for all of the benefits described in section 

1211 for any subsequent crop year if, prior to the beginning 

of the subsequent crop year, the Secretary determines that 

the person is actively applying a conservation plan according 

to the schedule specified in the plan.’’. 
H. R. 2419—106 

SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO 

WETLAND CONSERVATION. 

Section 1222(h) of the Food Security Act of 1985 (16 U.S.C. 

3822(h)) is amended— 

(1) by redesignating paragraph (2) as paragraph (3); 

(2) by inserting after paragraph (1) the following new paragraph: 

‘‘(2) ELIGIBLE REVIEWERS.—A determination of the Secretary, or a designee of the Secretary, under paragraph (1) 

shall be reviewed by the applicable— 

‘‘(A) State Executive Director, with the technical 

concurrence of the State Conservationist; or 

‘‘(B) district director, with the technical concurrence 

of the area conservationist.’’; and 

(3) in paragraph (3) (as redesignated by paragraph (1)), 

by inserting ‘‘be’’ before ‘‘actively’’. 

Subtitle B—Conservation Reserve Program 

SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM. 

Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 

3831(a)) is amended— 

(1) by striking ‘‘2007 calendar year’’ and inserting ‘‘2012 

fiscal year’’; and 

(2) by inserting before the period the following: ‘‘and to 

address issues raised by State, regional, and national conservation initiatives’’; and 

SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION 

RESERVE. 

Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 

3831(b)) is amended— 

(1) in paragraph (1)(B)— 

(A) by striking ‘‘Farm Security and Rural Investment 

Act of 2002’’ and inserting ‘‘Food, Conservation, and Energy 

Act of 2008’’; and 

(B) by striking the period at the end and inserting 

a semicolon; and 

(2) in paragraph (4)— 

(A) in subparagraph (C), by striking ‘‘; or’’ and inserting 

a semicolon; 

(B) in subparagraph (D), by striking ‘‘and’’ at the end 

and inserting ‘‘or’’; and 

(C) in subparagraph (E), by inserting ‘‘or’’ after the 

semicolon at the end. 

SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION 

RESERVE. 

Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 

3831(d)) is amended— 

(1) by striking ‘‘2007 calendar years’’ and inserting ‘‘2009 

fiscal years’’; 

(2) by striking ‘‘( 16 U.S.C.’’ and inserting ‘‘(16 U.S.C.’’; 

and 

(3) by adding at the end the following new sentence: 

‘‘During fiscal years 2010, 2011, and 2012, the Secretary may 
H. R. 2419—107 

maintain up to 32,000,000 acres in the conservation reserve 

at any 1 time.’’. 

SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS. 

Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 

3831(f)) is amended by striking ‘‘the Chesapeake Bay Region 

(Pennsylvania, Maryland, and Virginia)’’ and inserting ‘‘the Chesapeake Bay Region’’. 

SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES. 

Subsection (g) of section 1231 of the Food Security Act of 

1985 (16 U.S.C. 3831) is amended to read as follows: 

‘‘(g) MULTI-YEAR GRASSES AND LEGUMES.— 

‘‘(1) IN GENERAL.—For purposes of this subchapter, alfalfa 

and other multi-year grasses and legumes in a rotation practice, 

approved by the Secretary, shall be considered agricultural 

commodities. 

‘‘(2) CROPPING HISTORY.—Alfalfa, when grown as part of 

a rotation practice, as determined by the Secretary, is an agricultural commodity subject to the cropping history criteria 

under subsection (b)(1)(B) for the purpose of determining 

whether highly erodible cropland has been planted or considered planted for 4 of the 6 years referred to in such subsection.’’. 

SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND 

AND BUFFER ACREAGE IN CONSERVATION RESERVE. 

(a) REVISED PROGRAM.— (1) IN GENERAL.—Title XII of the Food Security Act of 

1985 is amended by inserting after section 1231 (16 U.S.C. 

3831) the following new section: 

‘‘SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND 

BUFFER ACREAGE IN CONSERVATION RESERVE. 

‘‘(a) PROGRAM REQUIRED.— ‘‘(1) IN GENERAL.—During the 2008 through 2012 fiscal 

years, the Secretary shall carry out a program in each State 

under which the Secretary shall enroll eligible acreage 

described in subsection (b). 

‘‘(2) PARTICIPATION AMONG STATES.—The Secretary shall 

ensure, to the maximum extent practicable, that owners and 

operators in each State have an equitable opportunity to participate in the program established under this section. 

‘‘(b) ELIGIBLE ACREAGE.— 

‘‘(1) WETLAND AND RELATED LAND.—Subject to subsections 

(c) and (d), an owner or operator may enroll in the conservation 

reserve, pursuant to the program established under this section, 

land— 

‘‘(A) that is wetland (including a converted wetland 

described in section 1222(b)(1)(A)) that had a cropping history during at least 3 of the immediately preceding 10 

crop years; 

‘‘(B) on which a constructed wetland is to be developed 

that will receive flow from a row crop agriculture drainage 

system and is designed to provide nitrogen removal in 

addition to other wetland functions; 

‘‘(C) that was devoted to commercial pond-raised aquaculture in any year during the period of calendar years 

2002 through 2007; or 
H. R. 2419—108 

‘‘(D) that, after January 1, 1990, and before December 

31, 2002, was— 

‘‘(i) cropped during at least 3 of 10 crop years; 

and 

‘‘(ii) subject to the natural overflow of a prairie 

wetland. 

‘‘(2) BUFFER ACREAGE.—Subject to subsections (c) and (d), 

an owner or operator may enroll in the conservation reserve, 

pursuant to the program established under this section, buffer 

acreage that— 

‘‘(A) with respect to land described in subparagraph 

(A), (B), or (C) of paragraph (1)— 

‘‘(i) is contiguous to such land 

‘‘(ii) is used to protect such land; and 

‘‘(iii) is of such width as the Secretary determines 

is necessary to protect such land, taking into consideration and accommodating the farming practices 

(including the straightening of boundaries to accommodate machinery) used with respect to the cropland 

that surrounds such land; and 

‘‘(B) with respect to land described in subparagraph 

(D) of paragraph (1), enhances a wildlife benefit to the 

extent practicable in terms of upland to wetland ratios, 

as determined by the Secretary. 

‘‘(c) PROGRAM LIMITATIONS.— 

‘‘(1) ACREAGE LIMITATION.—The Secretary may enroll in 

the conservation reserve, pursuant to the program established 

under this section, not more than— 

‘‘(A) 100,000 acres in any State; and 

‘‘(B) a total of 1,000,000 acres. 

‘‘(2) RELATIONSHIP TO MAXIMUM ENROLLMENT.—Subject to 

paragraph (3), any acreage enrolled in the conservation reserve 

under this section shall be considered acres maintained in 

the conservation reserve. 

‘‘(3) RELATIONSHIP TO OTHER ENROLLED ACREAGE.—Acreage 

enrolled in the conservation reserve under this section shall 

not affect for any fiscal year the quantity of— 

‘‘(A) acreage enrolled to establish conservation buffers 

as part of the program announced on March 24, 1998 

(63 Fed. Reg. 14109); or 

‘‘(B) acreage enrolled into the conservation reserve 

enhancement program announced on May 27, 1998 (63 

Fed. Reg. 28965). 

‘‘(4) REVIEW; POTENTIAL INCREASE IN ENROLLMENT ACREAGE.—The Secretary shall conduct a review of the program 

established under this section with respect to each State that 

has enrolled land in the conservation reserve pursuant to the 

program. As a result of the review, the Secretary may increase 

the number of acres that may be enrolled in a State under 

the program to not more than 200,000 acres, notwithstanding 

paragraph (1)(A). 

‘‘(d) OWNER OR OPERATOR ENROLLMENT LIMITATIONS.— 

‘‘(1) WETLAND AND RELATED LAND.— 

‘‘(A) WETLANDS AND CONSTRUCTED WETLANDS.—The 

maximum size of any land described in subparagraph (A) 

or (B) of subsection (b)(1) that an owner or operator may 
H. R. 2419—109 

enroll in the conservation reserve, pursuant to the program 

established under this section, shall be 40 contiguous acres. 

‘‘(B) FLOODED FARMLAND.—The maximum size of any 

land described in subparagraph (D) of subsection (b)(1) 

that an owner or operator may enroll in the conservation 

reserve, pursuant to the program established under this 

section, shall be 20 contiguous acres. 

‘‘(C) COVERAGE.—All acres described in subparagraph 

(A) or (B), including acres that are ineligible for payment, 

shall be covered by the conservation contract. 

‘‘(2) BUFFER ACREAGE.—The maximum size of any buffer 

acreage described in subsection (b)(2) that an owner or operator 

may enroll in the conservation reserve under this section shall 

be determined by the Secretary in consultation with the State 

Technical Committee. 

‘‘(3) TRACTS.—Except for land described in subsection 

(b)(1)(C) and buffer acreage related to such land, the maximum 

size of any eligible acreage described in subsection (b)(1) in 

a tract of an owner or operator enrolled in the conservation 

reserve under this section shall be 40 acres. 

‘‘(e) DUTIES OF OWNERS AND OPERATORS.—During the term 

of a contract entered into under the program established under 

this section, an owner or operator shall agree— 

‘‘(1) to restore the hydrology of the wetland within the 

eligible acreage to the maximum extent practicable, as determined by the Secretary; 

‘‘(2) to establish vegetative cover (which may include 

emerging vegetation in water and bottomland hardwoods, 

cypress, and other appropriate tree species) on the eligible 

acreage, as determined by the Secretary; 

‘‘(3) to a general prohibition of commercial use of the 

enrolled land; and 

‘‘(4) to carry out other duties described in section 1232. 

‘‘(f) DUTIES OF THE SECRETARY.— 

‘‘(1) IN GENERAL.—Except as provided in paragraphs (2) 

and (3), in return for a contract entered into under this section, 

the Secretary shall— 

‘‘(A) make payments to the owner or operator based 

on rental rates for cropland; and 

‘‘(B) provide assistance to the owner or operator in 

accordance with sections 1233 and 1234. 

‘‘(2) CONTRACT OFFERS AND PAYMENTS.—The Secretary shall 

use the method of determination described in section 

1234(c)(2)(B) to determine the acceptability of contract offers 

and the amount of rental payments under this section. 

‘‘(3) INCENTIVES.—The amounts payable to owners and 

operators in the form of rental payments under contracts 

entered into under this section shall reflect incentives that 

are provided to owners and operators to enroll filterstrips in 

the conservation reserve under section 1234.’’. 

(2) REPEAL OF SUPERCEDED PROGRAM.—Section 1231 of the 

Food Security Act of 1985 (16 U.S.C. 3831) is amended— 

(A) by striking subsection (h); and 

(B) by redesignating subsections (i) and (j) as subsections (h) and (i), respectively. 
H. R. 2419—110 

(b) CONFORMING CHANGES TO EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.—Subsection (k) of section 1231 of 

the Food Security Act of 1985 (16 U.S.C. 3831) is amended— 

(1) by striking ‘‘(k) EMERGENCY FORESTRY CONSERVATION

RESERVE PROGRAM.—’’ and inserting the following: 

‘‘SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.’’; 

(2) by striking ‘‘subsection’’ each place it appears (other 

than paragraph (3)(C)(ii)) and inserting ‘‘section’’; 

(3) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively; 

(4) in subsection (a), as so redesignated, by redesignating 

subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; and 

(5) in subsection (c), as so redesignated— 

(A) by redesignating subparagraphs (A) through (I) 

as paragraphs (1) through (9), respectively; 

(B) in paragraph (1), as so redesignated, by striking 

‘‘subparagraph (B)’’ and ‘‘subparagraph (G)’’ and inserting 

‘‘paragraph (2)’’ and ‘‘paragraph (7)’’, respectively; 

(C) in paragraph (3), as so redesignated— 

(i) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and 

(ii) by striking ‘‘subsection (d)’’ and inserting ‘‘section 1231(d)’’; 

(D) in paragraph (4), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), 

respectively; 

(E) in paragraph (5), as so redesignated— 

(i) by redesignating clauses (i) through (v) as subparagraphs (A) through (E), respectively, and subclauses (I) and (II) as clauses (i) and (ii), respectively; 

(ii) in subparagraph (B), as so redesignated, by 

striking ‘‘clause (i)(I)’’ and inserting ‘‘subparagraph 

(A)(i)’’; and 

(iii) in subparagraph (C), as so redesignated, by 

striking ‘‘clause (i)(II)’’ and inserting ‘‘subparagraph 

(A)(ii)’’; and 

(F) in paragraph (9), as so redesignated, by redesignating clauses (i) through (iii) as subparagraphs (A) 

through (C), respectively, and subclauses (I) through (III) 

as clauses (i) through (iii), respectively. 

SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION RESERVE CONTRACTS. 

Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 

3832(a)) is amended— 

(1) by redesignating paragraphs (5) through (10) as paragraphs (6) through (11), respectively; and 

(2) by inserting after paragraph (4) the following new paragraph: 

‘‘(5) to undertake management on the land as needed 

throughout the term of the contract to implement the conservation plan;’’. 
H. R. 2419—111 

SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE 

OF FORAGE ON ENROLLED LAND AND INSTALLATION OF 

WIND TURBINES. 

(a) GENERAL PROHIBITION; EXCEPTIONS.—Section 1232(a) of the 

Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended by striking 

paragraph (8), as redesignated by section 2107, and inserting the 

following new paragraph: 

‘‘(8) not to conduct any harvesting or grazing, nor otherwise 

make commercial use of the forage, on land that is subject 

to the contract, nor adopt any similar practice specified in 

the contract by the Secretary as a practice that would tend 

to defeat the purposes of the contract, except that the Secretary 

may permit, consistent with the conservation of soil, water 

quality, and wildlife habitat (including habitat during nesting 

seasons for birds in the area)— 

‘‘(A) managed harvesting (including the managed harvesting of biomass), except that in permitting managed 

harvesting, the Secretary, in coordination with the State 

technical committee— 

‘‘(i) shall develop appropriate vegetation management requirements; and 

‘‘(ii) shall identify periods during which managed 

harvesting may be conducted; 

‘‘(B) harvesting and grazing or other commercial use 

of the forage on the land that is subject to the contract 

in response to a drought or other emergency; 

‘‘(C) routine grazing or prescribed grazing for the control of invasive species, except that in permitting such 

routine grazing or prescribed grazing, the Secretary, in 

coordination with the State technical committee— 

‘‘(i) shall develop appropriate vegetation management requirements and stocking rates for the land 

that are suitable for continued routine grazing; and 

‘‘(ii) shall establish the frequency during which 

routine grazing may be conducted, taking into consideration regional differences such as— 

‘‘(I) climate, soil type, and natural resources; 

‘‘(II) the number of years that should be 

required between routine grazing activities; and 

‘‘(III) how often during a year in which routine 

grazing is permitted that routine grazing should 

be allowed to occur; and 

‘‘(D) the installation of wind turbines, except that in 

permitting the installation of wind turbines, the Secretary 

shall determine the number and location of wind turbines 

that may be installed, taking into account— 

‘‘(i) the location, size, and other physical characteristics of the land; 

‘‘(ii) the extent to which the land contains wildlife 

and wildlife habitat; and 

‘‘(iii) the purposes of the conservation reserve program under this subchapter;’’. 

(b) RENTAL PAYMENT REDUCTION.—Section 1232 of the Food 

Security Act of 1985 (16 U.S.C. 3832) is amended by adding at 

the end the following new subsection: 

‘‘(d) RENTAL PAYMENT REDUCTION FOR CERTAIN AUTHORIZED

USES OF ENROLLED LAND.—In the case of an authorized activity 
H. R. 2419—112 

under subsection (a)(8) on land that is subject to a contract under 

this subchapter, the Secretary shall reduce the rental payment 

otherwise payable under the contract by an amount commensurate 

with the economic value of the authorized activity.’’. 

SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, 

WINDBREAKS, SHELTERBELTS, AND WILDLIFE CORRIDORS. 

Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 

3834(b)) is amended by striking paragraph (3) and inserting the 

following new paragraph: 

‘‘(3) TREES, WINDBREAKS, SHELTERBELTS, AND WILDLIFE CORRIDORS.— 

‘‘(A) APPLICABILITY.—This paragraph applies to— 

‘‘(i) land devoted to the production of hardwood 

trees, windbreaks, shelterbelts, or wildlife corridors 

under a contract entered into under this subchapter 

after November 28, 1990; 

‘‘(ii) land converted to such production under section 1235A; and 

‘‘(iii) land on which an owner or operator agrees 

to conduct thinning authorized by section 1232(a)(9), 

if the thinning is necessary to improve the condition 

of resources on the land. 

‘‘(B) PAYMENTS.— ‘‘(i) PERCENTAGE.—In making cost share payments 

to an owner or operator of land described in subparagraph (A), the Secretary shall pay 50 percent of the 

reasonable and necessary costs incurred by the owner 

or operator for maintaining trees or shrubs, including 

the cost of replanting (if the trees or shrubs were 

lost due to conditions beyond the control of the owner 

or operator) or thinning. 

‘‘(ii) DURATION.—The Secretary shall make payments as described in clause (i) for a period of not 

less than 2 years, but not more than 4 years, beginning 

on the date of— 

‘‘(I) the planting of the trees or shrubs; or 

‘‘(II) the thinning of existing stands to improve 

the condition of resources on the land.’’. 

SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, 

ANNUAL RENTAL PAYMENTS, AND PAYMENT LIMITATIONS. 

(a) EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS.—Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) 

is amended by striking paragraph (3) and inserting the following 

new paragraph: 

‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.— ‘‘(A) EVALUATION OF OFFERS.—In determining the 

acceptability of contract offers, the Secretary may take 

into consideration the extent to which enrollment of the 

land that is the subject of the contract offer would improve 

soil resources, water quality, or wildlife habitat or provide 

other environmental benefits. 

‘‘(B) ESTABLISHMENT OF DIFFERENT CRITERIA IN VARIOUS STATES AND REGIONS.—The Secretary may establish 
H. R. 2419—113 

different criteria for determining the acceptability of contract offers in various States and regions of the United 

States based on the extent to which water quality or wildlife habitat may be improved or erosion may be abated. 

‘‘(C) LOCAL PREFERENCE.—In determining the acceptability of contract offers for new enrollments, the Secretary 

shall accept, to the maximum extent practicable, an offer 

from an owner or operator that is a resident of the county 

in which the land is located or of a contiguous county 

if, as determined by the Secretary, the land would provide 

at least equivalent conservation benefits to land under 

competing offers.’’. 

(b) ANNUAL SURVEY OF DRYLAND AND IRRIGATED CASH RENTAL

RATES.— (1) ANNUAL ESTIMATES REQUIRED.—Section 1234(c) of the 

Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by 

adding at the end the following new paragraph: 

‘‘(5) RENTAL RATES.— ‘‘(A) ANNUAL ESTIMATES.—The Secretary (acting 

through the National Agricultural Statistics Service) shall 

conduct an annual survey of per acre estimates of county 

average market dryland and irrigated cash rental rates 

for cropland and pastureland in all counties or equivalent 

subdivisions within each State that have 20,000 acres or 

more of cropland and pastureland. 

‘‘(B) PUBLIC AVAILABILITY OF ESTIMATES.—The estimates derived from the annual survey conducted under 

subparagraph (A) shall be maintained on a website of the 

Department of Agriculture for use by the general public.’’. 

(2) FIRST SURVEY.—The first survey required by paragraph 

(5) of section 1234(c) of the Food Security Act of 1985 (16 

U.S.C. 3834(c)), as added by subsection (a), shall be conducted 

not later than 1 year after the date of enactment of this Act. 

(c) PAYMENT LIMITATIONS.—Section 1234(f) of the Food Security 

Act of 1985 (16 U.S.C. 3834(f)) is amended— 

(1) in paragraph (1), by striking ‘‘made to a person’’ and 

inserting ‘‘received by a person or legal entity, directly or 

indirectly,’’; 

(2) by striking paragraph (2); and 

(3) in paragraph (4), by striking ‘‘any person’’ and inserting 

‘‘any person or legal entity’’. 

SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR BEGINNING FARMERS OR RANCHERS AND 

SOCIALLY DISADVANTAGED FARMERS OR RANCHERS. 

(a) CONTRACT MODIFICATION AUTHORITY.—Section 1235(c)(1)(B) 

of the Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is 

amended— 

(1) in clause (ii), by striking ‘‘or’’ at the end; 

(2) by redesignating clause (iii) as clause (iv); and 

(3) by inserting after clause (ii) the following new clause: 

‘‘(iii) to facilitate a transition of land subject to 

the contract from a retired or retiring owner or operator to a beginning farmer or rancher or socially disadvantaged farmer or rancher for the purpose of 

returning some or all of the land into production using 

sustainable grazing or crop production methods; or’’. 
H. R. 2419—114 

(b) TRANSITION OPTION.—Section 1235 of the Food Security 

Act of 1985 (16 U.S.C. 3835) is amended by adding at the end 

the following new subsection: 

‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR RANCHERS.— 

‘‘(1) DUTIES OF THE SECRETARY.—In the case of a contract 

modification approved in order to facilitate the transfer, as 

described in subsection (c)(1)(B)(iii), of land to a beginning 

farmer or rancher or socially disadvantaged farmer or rancher 

(in this subsection referred to as a ‘covered farmer or rancher’), 

the Secretary shall— 

‘‘(A) beginning on the date that is 1 year before the 

date of termination of the contract— 

‘‘(i) allow the covered farmer or rancher, in 

conjunction with the retired or retiring owner or operator, to make conservation and land improvements; 

and 

‘‘(ii) allow the covered farmer or rancher to begin 

the certification process under the Organic Foods 

Production Act of 1990 (7 U.S.C. 6501 et seq.); 

‘‘(B) beginning on the date of termination of the contract, require the retired or retiring owner or operator 

to sell or lease (under a long-term lease or a lease with 

an option to purchase) to the covered farmer or rancher 

the land subject to the contract for production purposes; 

‘‘(C) require the covered farmer or rancher to develop 

and implement a conservation plan; 

‘‘(D) provide to the covered farmer or rancher an opportunity to enroll in the conservation stewardship program 

or the environmental quality incentives program by not 

later than the date on which the farmer or rancher takes 

possession of the land through ownership or lease; and 

‘‘(E) continue to make annual payments to the retired 

or retiring owner or operator for not more than an additional 2 years after the date of termination of the contract, 

if the retired or retiring owner or operator is not a family 

member (as defined in section 1001A(b)(3)(B) of this Act) 

of the covered farmer or rancher. 

‘‘(2) REENROLLMENT.—The Secretary shall provide a covered farmer or rancher with the option to reenroll any 

applicable partial field conservation practice that— 

‘‘(A) is eligible for enrollment under the continuous 

signup requirement of section 1231(h)(4)(B); and 

‘‘(B) is part of an approved conservation plan.’’. 

Subtitle C—Wetlands Reserve Program 

SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE 

PROGRAM. 

Subsection (a) of section 1237 of the Food Security Act of 

1985 (16 U.S.C. 3837) is amended to read as follows: 

‘‘(a) ESTABLISHMENT AND PURPOSES.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall establish a wetlands reserve program to assist owners of eligible lands in 

restoring and protecting wetlands. 
H. R. 2419—115 

‘‘(2) PURPOSES.—The purposes of the wetlands reserve program are to restore, protect, or enhance wetlands on private 

or tribal lands that are eligible under subsections (c) and (d).’’. 

SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS. 

Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 

3837(b)) is amended— 

(1) by striking paragraph (1) and inserting the following 

new paragraph: 

‘‘(1) MAXIMUM ENROLLMENT.—The total number of acres 

enrolled in the wetlands reserve program shall not exceed 

3,041,200 acres.’’; 

(2) in paragraph (2), by striking ‘‘The Secretary’’ and 

inserting ‘‘Subject to paragraph (3), the Secretary’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In the case of 

acreage owned by an Indian tribe, the Secretary shall enroll 

acreage into the wetlands reserve program through the use 

of— 

‘‘(A) a 30-year contract (the value of which shall be 

equivalent to the value of a 30-year easement); 

‘‘(B) restoration cost-share agreements; or 

‘‘(C) any combination of the options described in subparagraphs (A) and (B).’’. 

SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS 

ELIGIBLE FOR ENROLLMENT. 

(a) IN GENERAL.—Section 1237(c) of the Food Security Act 

of 1985 (16 U.S.C. 3837(c)) is amended— 

(1) in the matter preceding paragraph (1)— 

(A) by striking ‘‘2007 calendar’’ and inserting ‘‘2012 

fiscal’’; and 

(B) by inserting ‘‘private or tribal’’ before ‘‘land’’ the 

second place it appears; 

(2) by striking paragraph (2) and inserting the following 

new paragraph: 

‘‘(2) such land is— 

‘‘(A) farmed wetland or converted wetland, together 

with the adjacent land that is functionally dependent on 

the wetlands, except that converted wetland with respect 

to which the conversion was not commenced prior to 

December 23, 1985, shall not be eligible to be enrolled 

in the program under this section; or 

‘‘(B) cropland or grassland that was used for agricultural production prior to flooding from the natural overflow 

of a closed basin lake or pothole, as determined by the 

Secretary, together (where practicable) with the adjacent 

land that is functionally dependent on the cropland or 

grassland; and’’. 

(b) CHANGE OF OWNERSHIP.—Section 1237E(a) of the Food Security Act of 1985 (16 U.S.C. 3837e(a)) is amended by striking ‘‘in 

the preceding 12 months’’ and inserting ‘‘during the preceding 7- 

year period’’. 

(c) ANNUAL SURVEY AND REALLOCATION.—Section 1237F of the 

Food Security Act of 1985 (16 U.S.C. 3837f) is amended by adding 

at the end the following new subsection: 

‘‘(c) PRAIRIE POTHOLE REGION SURVEY AND REALLOCATION.— 
H. R. 2419—116 

‘‘(1) SURVEY.—The Secretary shall conduct a survey during 

fiscal year 2008 and each subsequent fiscal year for the purpose 

of determining interest and allocations for the Prairie Pothole 

Region to enroll eligible land described in section 1237(c)(2)(B). 

‘‘(2) ANNUAL ADJUSTMENT.—The Secretary shall make an 

adjustment to the allocation for an interested State for a fiscal 

year, based on the results of the survey conducted under paragraph (1) for the State during the previous fiscal year.’’. 

SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS. 

Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16 

U.S.C. 3837a(b)(2)(B)) is amended— 

(1) in clause (i), by striking ‘‘or’’ at the end; 

(2) in clause (ii), by striking ‘‘; and’’ and inserting ‘‘; or’’; 

and 

(3) by adding at the end the following new clause: 

‘‘(iii) to meet habitat needs of specific wildlife species; and’’. 

SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS 

RESERVE PROGRAM. 

Subsection (f) of section 1237A of the Food Security Act of 

1985 (16 U.S.C. 3837a) is amended to read as follows: 

‘‘(f) COMPENSATION.— ‘‘(1) DETERMINATION.—Effective on the date of the enactment of the Food, Conservation, and Energy Act of 2008, the 

Secretary shall pay as compensation for a conservation easement acquired under this subchapter the lowest of— 

‘‘(A) the fair market value of the land, as determined 

by the Secretary, using the Uniform Standards of Professional Appraisal Practices or an area-wide market analysis 

or survey; 

‘‘(B) the amount corresponding to a geographical cap, 

as determined by the Secretary in regulations; or 

‘‘(C) the offer made by the landowner. 

‘‘(2) FORM OF PAYMENT.—Compensation for an easement 

shall be provided by the Secretary in the form of a cash payment, in an amount determined under paragraph (1) and specified in the easement agreement. 

‘‘(3) PAYMENT SCHEDULE FOR EASEMENTS.— 

‘‘(A) EASEMENTS VALUED AT $500,000 OR LESS.—For easements valued at $500,000 or less, the Secretary may provide easement payments in not more than 30 annual payments. 

‘‘(B) EASEMENTS IN EXCESS OF $500,000.—For easements 

valued at more than $500,000, the Secretary may provide 

easement payments in at least 5, but not more than 30 

annual payments, except that, if the Secretary determines 

it would further the purposes of the program, the Secretary 

may make a lump sum payment for such an easement. 

‘‘(4) RESTORATION AGREEMENT PAYMENT LIMITATION.—Payments made to a person or legal entity, directly or indirectly, 

pursuant to a restoration cost-share agreement under this subchapter may not exceed, in the aggregate, $50,000 per year. 

‘‘(5) ENROLLMENT PROCEDURE.—Lands may be enrolled 

under this subchapter through the submission of bids under 

a procedure established by the Secretary.’’. 
H. R. 2419—117 

SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND 

RESERVED RIGHTS PILOT PROGRAM. 

Section 1237A of the Food Security Act of 1985 (16 U.S.C. 

3837a) is amended by adding at the end the following new subsection: 

‘‘(h) WETLANDS RESERVE ENHANCEMENT PROGRAM.— 

‘‘(1) PROGRAM AUTHORIZED.—The Secretary may enter into 

1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or 

Indian tribe to carry out a special wetlands reserve enhancement program that the Secretary determines would advance 

the purposes of this subchapter. 

‘‘(2) RESERVED RIGHTS PILOT PROGRAM.— ‘‘(A) RESERVATION OF GRAZING RIGHTS.—As part of the 

wetlands reserve enhancement program, the Secretary 

shall carry out a pilot program for land in which a landowner may reserve grazing rights in the warranty easement 

deed restriction if the Secretary determines that the reservation and use of the grazing rights— 

‘‘(i) is compatible with the land subject to the easement; 

‘‘(ii) is consistent with the long-term wetland 

protection and enhancement goals for which the easement was established; and 

‘‘(iii) complies with a conservation plan. 

‘‘(B) DURATION.—The pilot program established under 

this paragraph shall terminate on September 30, 2012.’’. 

SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS RESERVE PROGRAM. 

Section 1237C of the Food Security Act of 1985 (16 U.S.C. 

3837c) is amended— 

(1) in subsection (a)(1), by inserting ‘‘including necessary 

maintenance activities,’’ after ‘‘values,’’; and 

(2) by striking subsection (c) and inserting the following 

new subsection: 

‘‘(c) RANKING OF OFFERS.— ‘‘(1) CONSERVATION BENEFITS AND FUNDING CONSIDER- ATIONS.—When evaluating offers from landowners, the Secretary may consider— 

‘‘(A) the conservation benefits of obtaining an easement 

or other interest in the land; 

‘‘(B) the cost-effectiveness of each easement or other 

interest in eligible land, so as to maximize the environmental benefits per dollar expended; and 

‘‘(C) whether the landowner or another person is 

offering to contribute financially to the cost of the easement 

or other interest in the land to leverage Federal funds. 

‘‘(2) ADDITIONAL CONSIDERATIONS.—In determining the 

acceptability of easement offers, the Secretary may take into 

consideration— 

‘‘(A) the extent to which the purposes of the easement 

program would be achieved on the land; 

‘‘(B) the productivity of the land; and 

‘‘(C) the on-farm and off-farm environmental threats 

if the land is used for the production of agricultural 

commodities.’’. 
H. R. 2419—118 

SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CONTRACTS AND AGREEMENTS. 

Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C. 

3837d(c)(1)) is amended— 

(1) by striking ‘‘The total amount of easement payments 

made to a person’’ and inserting ‘‘The total amount of payments 

that a person or legal entity may receive, directly or indirectly,’’; 

and 

(2) by inserting ‘‘or under 30-year contracts’’ before the 

period at the end. 

SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE 

AGREEMENTS FOR WETLANDS RESERVE ENHANCEMENT. 

Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 

3837d(c)) is amended by striking paragraph (4). 

SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CONSERVATION EASEMENTS. 

(a) REPORT REQUIRED.—Not later than January 1, 2010, the 

Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate a report that 

evaluates the implications of the long-term nature of conservation 

easements granted under section 1237A of the Food Security Act 

of 1985 (16 U.S.C. 3837a) on resources of the Department of Agriculture. 

(b) INCLUSIONS.—The report required by subsection (a) shall 

include the following: 

(1) Data relating to the number and location of conservation 

easements granted under that section that the Secretary holds 

or has a significant role in monitoring or managing. 

(2) An assessment of the extent to which the oversight 

of the conservation easement agreements impacts the availability of resources, including technical assistance. 

(3) An assessment of the uses and value of agreements 

with partner organizations. 

(4) Any other relevant information relating to costs or 

other effects that would be helpful to the Committees referred 

to in subsection (a). 

Subtitle D—Conservation Stewardship 

Program 

SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM.—Chapter 2 of subtitle D of 

title XII of the Food Security Act of 1985 is amended— 

(1) by redesignating subchapters B (farmland protection 

program) and C (grassland reserve program) as subchapters 

C and D, respectively; and 

(2) by inserting after subchapter A the following new subchapter: 

‘‘Subchapter B—Conservation Stewardship Program 

‘‘SEC. 1238D. DEFINITIONS. 

‘‘In this subchapter: 
H. R. 2419—119 

‘‘(1) CONSERVATION ACTIVITIES.— 

‘‘(A) IN GENERAL.—The term ‘conservation activities’ 

means conservation systems, practices, or management 

measures that are designed to address a resource concern. 

‘‘(B) INCLUSIONS.—The term ‘conservation activities’ 

includes— 

‘‘(i) structural measures, vegetative measures, and 

land management measures, including agriculture 

drainage management systems, as determined by the 

Secretary; and 

‘‘(ii) planning needed to address a resource concern. 

‘‘(2) CONSERVATION MEASUREMENT TOOLS.—The term ‘conservation measurement tools’ means procedures to estimate 

the level of environmental benefit to be achieved by a producer 

in implementing conservation activities, including indices or 

other measures developed by the Secretary. 

‘‘(3) CONSERVATION STEWARDSHIP PLAN.—The term ‘conservation stewardship plan’ means a plan that— 

‘‘(A) identifies and inventories resource concerns; 

‘‘(B) establishes benchmark data and conservation 

objectives; 

‘‘(C) describes conservation activities to be implemented, managed, or improved; and 

‘‘(D) includes a schedule and evaluation plan for the 

planning, installation, and management of the new and 

existing conservation activities. 

‘‘(4) PRIORITY RESOURCE CONCERN.—The term ‘priority 

resource concern’ means a resource concern that is identified 

at the State level, in consultation with the State Technical 

Committee, as a priority for a particular watershed or area 

of the State. 

‘‘(5) PROGRAM.—The term ‘program’ means the conservation 

stewardship program established by this subchapter. 

‘‘(6) RESOURCE CONCERN.—The term ‘resource concern’ 

means a specific natural resource impairment or problem, as 

determined by the Secretary, that— 

‘‘(A) represents a significant concern in a State or 

region; and 

‘‘(B) is likely to be addressed successfully through the 

implementation of conservation activities by producers on 

land eligible for enrollment in the program. 

‘‘(7) STEWARDSHIP THRESHOLD.—The term ‘stewardship 

threshold’ means the level of natural resource conservation 

and environmental management required, as determined by 

the Secretary using conservation measurement tools, to improve 

and conserve the quality and condition of a resource concern. 

‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 

‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of fiscal years 

2009 through 2012, the Secretary shall carry out a conservation 

stewardship program to encourage producers to address resource 

concerns in a comprehensive manner— 

‘‘(1) by undertaking additional conservation activities; and 

‘‘(2) by improving, maintaining and managing existing conservation activities. 

‘‘(b) ELIGIBLE LAND.— 
H. R. 2419—120 

‘‘(1) IN GENERAL.—Except as provided in subsection (c), 

the following land is eligible for enrollment in the program: 

‘‘(A) Private agricultural land (including cropland, 

grassland, prairie land, improved pastureland, rangeland, 

and land used for agro-forestry). 

‘‘(B) Agricultural land under the jurisdiction of an 

Indian tribe. 

‘‘(C) Forested land that is an incidental part of an 

agricultural operation. 

‘‘(D) Other private agricultural land (including cropped 

woodland, marshes, and agricultural land used for the 

production of livestock) on which resource concerns related 

to agricultural production could be addressed by enrolling 

the land in the program, as determined by the Secretary. 

‘‘(2) SPECIAL RULE FOR NONINDUSTRIAL PRIVATE FOREST

LAND.—Nonindustrial private forest land is eligible for enrollment in the program, except that not more than 10 percent 

of the annual acres enrolled nationally in any fiscal year may 

be nonindustrial private forest land. 

‘‘(3) AGRICULTURAL OPERATION.—Eligible land shall include 

all acres of an agricultural operation of a producer, whether 

or not contiguous, that are under the effective control of the 

producer at the time the producer enters into a stewardship 

contract, and is operated by the producer with equipment, 

labor, management, and production or cultivation practices that 

are substantially separate from other agricultural operations, 

as determined by the Secretary. 

‘‘(c) EXCLUSIONS.— 

‘‘(1) LAND ENROLLED IN OTHER CONSERVATION PROGRAMS.— 

Subject to paragraph (2), the following land is not be eligible 

for enrollment in the program: 

‘‘(A) Land enrolled in the conservation reserve program. 

‘‘(B) Land enrolled in the wetlands reserve program. 

‘‘(C) Land enrolled in the grassland reserve program. 

‘‘(2) CONVERSION TO CROPLAND.—Land used for crop production after the date of enactment of the Food, Conservation, 

and Energy Act of 2008 that had not been planted, considered 

to be planted, or devoted to crop production for at least 4 

of the 6 years preceding that date shall not be the basis for 

any payment under the program, unless the land does not 

meet the requirement because— 

‘‘(A) the land had previously been enrolled in the conservation reserve program; 

‘‘(B) the land has been maintained using long-term 

crop rotation practices, as determined by the Secretary; 

or 

‘‘(C) the land is incidental land needed for efficient 

operation of the farm or ranch, as determined by the Secretary. 

‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 

‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eligible to 

participate in the conservation stewardship program, a producer 

shall submit to the Secretary for approval a contract offer that— 

‘‘(1) demonstrates to the satisfaction of the Secretary that 

the producer, at the time of the contract offer, is meeting 
H. R. 2419—121 

the stewardship threshold for at least one resource concern; 

and 

‘‘(2) would, at a minimum, meet or exceed the stewardship 

threshold for at least 1 priority resource concern by the end 

of the stewardship contract by— 

‘‘(A) installing and adopting additional conservation 

activities; and 

‘‘(B) improving, maintaining, and managing conservation activities in place at the operation of the producer 

at the time the contract offer is accepted by the Secretary. 

‘‘(b) EVALUATION OF CONTRACT OFFERS.— 

‘‘(1) RANKING OF APPLICATIONS.—In evaluating contract 

offers made by producers to enter into contracts under the 

program, the Secretary shall rank applications based on— 

‘‘(A) the level of conservation treatment on all 

applicable priority resource concerns at the time of application, based to the maximum extent practicable on conservation measurement tools; 

‘‘(B) the degree to which the proposed conservation 

treatment on applicable priority resource concerns effectively increases conservation performance, based to the 

maximum extent possible on conservation measurement 

tools; 

‘‘(C) the number of applicable priority resource concerns 

proposed to be treated to meet or exceed the stewardship 

threshold by the end of the contract; 

‘‘(D) the extent to which other resource concerns, in 

addition to priority resource concerns, will be addressed 

to meet or exceed the stewardship threshold by the end 

of the contract period; and 

‘‘(E) the extent to which the actual and anticipated 

environmental benefits from the contract are provided at 

the least cost relative to other similarly beneficial contract 

offers. 

‘‘(2) PROHIBITION.—The Secretary may not assign a higher 

priority to any application because the applicant is willing 

to accept a lower payment than the applicant would otherwise 

be eligible to receive. 

‘‘(3) ADDITIONAL CRITERIA.—The Secretary may develop and 

use such additional criteria for evaluating applications to enroll 

in the program that the Secretary determines are necessary 

to ensure that national, State, and local conservation priorities 

are effectively addressed. 

‘‘(c) ENTERING INTO CONTRACTS.—After a determination that 

a producer is eligible for the program under subsection (a), and 

a determination that the contract offer ranks sufficiently high under 

the evaluation criteria under subsection (b), the Secretary shall 

enter into a conservation stewardship contract with the producer 

to enroll the land to be covered by the contract. 

‘‘(d) CONTRACT PROVISIONS.— 

‘‘(1) TERM.—A conservation stewardship contract shall be 

for a term of 5 years. 

‘‘(2) PROVISIONS.—The conservation stewardship contract 

of a producer shall— 

‘‘(A) state the amount of the payment the Secretary 

agrees to make to the producer for each year of the conservation stewardship contract under section 1238G(e); 
H. R. 2419—122 

‘‘(B) require the producer— 

‘‘(i) to implement during the term of the conservation stewardship contract the conservation stewardship 

plan approved by the Secretary; 

‘‘(ii) to maintain, and make available to the Secretary at such times as the Secretary may request, 

appropriate records showing the effective and timely 

implementation of the conservation stewardship contract; and 

‘‘(iii) not to engage in any activity during the term 

of the conservation stewardship contract on the eligible 

land covered by the contract that would interfere with 

the purposes of the conservation stewardship contract; 

‘‘(C) permit all economic uses of the land that— 

‘‘(i) maintain the agricultural nature of the land; 

and 

‘‘(ii) are consistent with the conservation purposes 

of the conservation stewardship contract; 

‘‘(D) include a provision to ensure that a producer 

shall not be considered in violation of the contract for 

failure to comply with the contract due to circumstances 

beyond the control of the producer, including a disaster 

or related condition, as determined by the Secretary; and 

‘‘(E) include such other provisions as the Secretary 

determines necessary to ensure the purposes of the program are achieved. 

‘‘(e) CONTRACT RENEWAL.—At the end of an initial conservation 

stewardship contract of a producer, the Secretary may allow the 

producer to renew the contract for one additional five-year period 

if the producer— 

‘‘(1) demonstrates compliance with the terms of the existing 

contract; and 

‘‘(2) agrees to adopt new conservation activities, as determined by the Secretary. 

‘‘(f) MODIFICATION.—The Secretary may allow a producer to 

modify a stewardship contract if the Secretary determines that 

the modification is consistent with achieving the purposes of the 

program. 

‘‘(g) CONTRACT TERMINATION.— 

‘‘(1) VOLUNTARY TERMINATION.—A producer may terminate 

a conservation stewardship contract if the Secretary determines 

that termination would not defeat the purposes of the program. 

‘‘(2) INVOLUNTARY TERMINATION.—The Secretary may 

terminate a contract under this subchapter if the Secretary 

determines that the producer violated the contract. 

‘‘(3) REPAYMENT.—If a contract is terminated, the Secretary 

may, consistent with the purposes of the program— 

‘‘(A) allow the producer to retain payments already 

received under the contract; or 

‘‘(B) require repayment, in whole or in part, of payments already received and assess liquidated damages. 

‘‘(4) CHANGE OF INTEREST IN LAND SUBJECT TO A CONTRACT.— 

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

(B), a change in the interest of a producer in land covered 

by a contract under this chapter shall result in the termination of the contract with regard to that land. 
H. R. 2419—123 

‘‘(B) TRANSFER OF DUTIES AND RIGHTS.—Subparagraph 

(A) shall not apply if— 

‘‘(i) within a reasonable period of time (as determined by the Secretary) after the date of the change 

in the interest in land covered by a contract under 

the program, the transferee of the land provides written notice to the Secretary that all duties and rights 

under the contract have been transferred to, and 

assumed by, the transferee; and 

‘‘(ii) the transferee meets the eligibility requirements of the program. 

‘‘(h) COORDINATION WITH ORGANIC CERTIFICATION.—The Secretary shall establish a transparent means by which producers 

may initiate organic certification under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.) while participating in 

a contract under this subchapter. 

‘‘(i) ON-FARM RESEARCH AND DEMONSTRATION OR PILOT

TESTING.—The Secretary may approve a contract offer under this 

subchapter that includes— 

‘‘(1) on-farm conservation research and demonstration 

activities; and 

‘‘(2) pilot testing of new technologies or innovative conservation practices. 

‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 

‘‘(a) IN GENERAL.—To achieve the conservation goals of a contract under the conservation stewardship program, the Secretary 

shall— 

‘‘(1) make the program available to eligible producers on 

a continuous enrollment basis with 1 or more ranking periods, 

one of which shall occur in the first quarter of each fiscal 

year; 

‘‘(2) identify not less than 3 nor more than 5 priority 

resource concerns in a particular watershed or other appropriate region or area within a State; and 

‘‘(3) develop reliable conservation measurement tools for 

purposes of carrying out the program. 

‘‘(b) ALLOCATION TO STATES.—The Secretary shall allocate acres 

to States for enrollment, based— 

‘‘(1) primarily on each State’s proportion of eligible acres 

under section 1238E(b)(1) to the total number of eligible acres 

in all States; and 

‘‘(2) also on consideration of— 

‘‘(A) the extent and magnitude of the conservation 

needs associated with agricultural production in each State; 

‘‘(B) the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and 

‘‘(C) other considerations to achieve equitable 

geographic distribution of funds, as determined by the Secretary. 

‘‘(c) SPECIALTY CROP AND ORGANIC PRODUCERS.—The Secretary 

shall ensure that outreach and technical assistance are available, 

and program specifications are appropriate to enable specialty crop 

and organic producers to participate in the program. 
H. R. 2419—124 

‘‘(d) ACREAGE ENROLLMENT LIMITATION.—During the period 

beginning on October 1, 2008, and ending on September 30, 2017, 

the Secretary shall, to the maximum extent practicable— 

‘‘(1) enroll in the program an additional 12,769,000 acres 

for each fiscal year; and 

‘‘(2) manage the program to achieve a national average 

rate of $18 per acre, which shall include the costs of all financial 

assistance, technical assistance, and any other expenses associated with enrollment or participation in the program. 

‘‘(e) CONSERVATION STEWARDSHIP PAYMENTS.— 

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall provide a payment under the program to compensate the producer 

for— 

‘‘(A) installing and adopting additional conservation 

activities; and 

‘‘(B) improving, maintaining, and managing conservation activities in place at the operation of the producer 

at the time the contract offer is accepted by the Secretary. 

‘‘(2) PAYMENT AMOUNT.—The amount of the conservation 

stewardship payment shall be determined by the Secretary 

and based, to the maximum extent practicable, on the following 

factors: 

‘‘(A) Costs incurred by the producer associated with 

planning, design, materials, installation, labor, management, maintenance, or training. 

‘‘(B) Income forgone by the producer. 

‘‘(C) Expected environmental benefits as determined 

by conservation measurement tools. 

‘‘(3) EXCLUSIONS.—A payment to a producer under this 

subsection shall not be provided for— 

‘‘(A) the design, construction, or maintenance of animal 

waste storage or treatment facilities or associated waste 

transport or transfer devices for animal feeding operations; 

or 

‘‘(B) conservation activities for which there is no cost 

incurred or income forgone to the producer. 

‘‘(4) TIMING OF PAYMENTS.— ‘‘(A) IN GENERAL.—The Secretary shall make payments 

as soon as practicable after October 1 of each fiscal year 

for activities carried out in the previous fiscal year. 

‘‘(B) ADDITIONAL ACTIVITIES.—The Secretary shall 

make payments to compensate producers for installation 

of additional practices at the time at which the practices 

are installed and adopted. 

‘‘(f) SUPPLEMENTAL PAYMENTS FOR RESOURCE-CONSERVING

CROP ROTATIONS.— 

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall provide additional payments to producers that, in participating 

in the program, agree to adopt resource-conserving crop rotations to achieve beneficial crop rotations as appropriate for 

the land of the producers. 

‘‘(2) BENEFICIAL CROP ROTATIONS.—The Secretary shall 

determine whether a resource-conserving crop rotation is a 

beneficial crop rotation eligible for additional payments under 

paragraph (1), based on whether the resource-conserving crop 

rotation is designed to provide natural resource conservation 

and production benefits. 
H. R. 2419—125 

‘‘(3) ELIGIBILITY.—To be eligible to receive a payment 

described in paragraph (1), a producer shall agree to adopt 

and maintain beneficial resource-conserving crop rotations for 

the term of the contract. 

‘‘(4) RESOURCE-CONSERVING CROP ROTATION.—In this subsection, the term ‘resource-conserving crop rotation’ means a 

crop rotation that— 

‘‘(A) includes at least 1 resource conserving crop (as 

defined by the Secretary); 

‘‘(B) reduces erosion; 

‘‘(C) improves soil fertility and tilth; 

‘‘(D) interrupts pest cycles; and 

‘‘(E) in applicable areas, reduces depletion of soil moisture or otherwise reduces the need for irrigation. 

‘‘(g) PAYMENT LIMITATIONS.—A person or legal entity may not 

receive, directly or indirectly, payments under this subchapter that, 

in the aggregate, exceed $200,000 for all contracts entered into 

during any 5-year period, excluding funding arrangements with 

federally recognized Indian tribes or Alaska Native corporations, 

regardless of the number of contracts entered into under the program by the person or entity. 

‘‘(h) REGULATIONS.—The Secretary shall promulgate regulations 

that— 

‘‘(1) prescribe such other rules as the Secretary determines 

to be necessary to ensure a fair and reasonable application 

of the limitations established under subsection (g); and 

‘‘(2) otherwise enable the Secretary to carry out the program. 

‘‘(i) DATA.—The Secretary shall maintain detailed and segmented data on contracts and payments under the program to 

allow for quantification of the amount of payments made for— 

‘‘(1) the installation and adoption of additional conservation 

activities and improvements to conservation activities in place 

on the operation of a producer at the time the conservation 

stewardship offer is accepted by the Secretary; 

‘‘(2) participation in research, demonstration, and pilot 

projects; and 

‘‘(3) the development and periodic assessment and evaluation of conservation plans developed under this subchapter.’’. 

(b) TERMINATION OF CONSERVATION SECURITY PROGRAM

AUTHORITY; EFFECT ON EXISTING CONTRACTS.—Section 1238A of 

the Food Security Act of 1985 (16 U.S.C. 3838a) is amended by 

adding at the end the following new subsection: 

‘‘(g) PROHIBITION ON CONSERVATION SECURITY PROGRAM CONTRACTS; EFFECT ON EXISTING CONTRACTS.— 

‘‘(1) PROHIBITION.—A conservation security contract may 

not be entered into or renewed under this subchapter after 

September 30, 2008. 

‘‘(2) EXCEPTION.—This subchapter, and the terms and 

conditions of the conservation security program, shall continue 

to apply to— 

‘‘(A) conservation security contracts entered into on 

or before September 30, 2008; and 

‘‘(B) any conservation security contract entered into 

after that date, but for which the application for the contract was received during the 2008 sign-up period. 
H. R. 2419—126 

‘‘(3) EFFECT ON PAYMENTS.—The Secretary shall make payments under this subchapter with respect to conservation security contracts described in paragraph (2) during the remaining 

term of the contracts. 

‘‘(4) REGULATIONS.—A contract described in paragraph (2) 

may not be administered under the regulations issued to carry 

out the conservation stewardship program.’’. 

(c) REFERENCE TO REDESIGNATED SUBCHAPTER.—Section 

1238A(b)(3)(C) of title XII of the Food Security Act of 1985 (16 

U.S.C. 3838a(b)(3)(C)) is amended by striking ‘‘subchapter C’’ and 

inserting ‘‘subchapter D’’. 

Subtitle E—Farmland Protection and 

Grassland Reserve 

SEC. 2401. FARMLAND PROTECTION PROGRAM. 

(a) DEFINITIONS.—Section 1238H of the Food Security Act of 

1985 (16 U.S.C. 3838h) is amended— 

(1) by striking paragraph (1) and inserting the following 

new paragraph: 

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means— 

‘‘(A) any agency of any State or local government or 

an Indian tribe (including a farmland protection board 

or land resource council established under State law); or 

‘‘(B) any organization that— 

‘‘(i) is organized for, and at all times since the 

formation of the organization has been operated principally for, 1 or more of the conservation purposes 

specified in clause (i), (ii), (iii), or (iv) of section 

170(h)(4)(A) of the Internal Revenue Code of 1986; 

‘‘(ii) is an organization described in section 

501(c)(3) of that Code that is exempt from taxation 

under section 501(a) of that Code; and 

‘‘(iii) is— 

‘‘(I) described in paragraph (1) or (2) of section 

509(a) of that Code; or 

‘‘(II) described in section 509(a)(3), and is controlled by an organization described in section 

509(a)(2), of that Code.’’; and 

(2) in paragraph (2)— 

(A) in subparagraph (A)— 

(i) by striking ‘‘that—’’ and inserting ‘‘that is subject to a pending offer for purchase from an eligible 

entity and—’’; and 

(ii) by striking clauses (i) and (ii) and inserting 

the following new clauses: 

‘‘(i) has prime, unique, or other productive soil; 

‘‘(ii) contains historical or archaeological resources; 

or 

‘‘(iii) the protection of which will further a State 

or local policy consistent with the purposes of the program.’’; and 

(B) in subparagraph (B)— 

(i) in clause (iv), by striking ‘‘and’’ at the end; 

and 
H. R. 2419—127 

(ii) by striking clause (v) and inserting the following new clauses: 

‘‘(v) forest land that— 

‘‘(I) contributes to the economic viability of 

an agricultural operation; or 

‘‘(II) serves as a buffer to protect an agricultural operation from development; and 

‘‘(vi) land that is incidental to land described in 

clauses (i) through (v), if such land is necessary for 

the efficient administration of a conservation easement, 

as determined by the Secretary.’’. 

(b) FARMLAND PROTECTION.—Section 1238I of the Food Security 

Act of 1985 (16 U.S.C. 3838i) is amended to read as follows: 

‘‘SEC. 1238I. FARMLAND PROTECTION PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish and carry 

out a farmland protection program under which the Secretary shall 

facilitate and provide funding for the purchase of conservation 

easements or other interests in eligible land. 

‘‘(b) PURPOSE.—The purpose of the program is to protect the 

agricultural use and related conservation values of eligible land 

by limiting nonagricultural uses of that land. 

‘‘(c) COST-SHARE ASSISTANCE.— ‘‘(1) PROVISION OF ASSISTANCE.—The Secretary shall provide cost-share assistance to eligible entities for purchasing 

a conservation easement or other interest in eligible land. 

‘‘(2) FEDERAL SHARE.—The share of the cost provided by 

the Secretary for purchasing a conservation easement or other 

interest in eligible land shall not exceed 50 percent of the 

appraised fair market value of the conservation easement or 

other interest in eligible land. 

‘‘(3) NON-FEDERAL SHARE.— ‘‘(A) SHARE PROVIDED BY ELIGIBLE ENTITY.—The eligible 

entity shall provide a share of the cost of purchasing a 

conservation easement or other interest in eligible land 

in an amount that is not less than 25 percent of the 

acquisition purchase price. 

‘‘(B) LANDOWNER CONTRIBUTION.—As part of the nonFederal share of the cost of purchasing a conservation 

easement or other interest in eligible land, an eligible 

entity may include a charitable donation or qualified conservation contribution (as defined by section 170(h) of the 

Internal Revenue Code of 1986) from the private landowner 

from which the conservation easement or other interest 

in land will be purchased. 

‘‘(d) DETERMINATION OF FAIR MARKET VALUE.—Effective on the 

date of enactment of the Food, Conservation, and Energy Act of 

2008, the fair market value of the conservation easement or other 

interest in eligible land shall be determined on the basis of an 

appraisal using an industry approved method, selected by the 

eligible entity and approved by the Secretary. 

‘‘(e) BIDDING DOWN PROHIBITED.—If the Secretary determines 

that 2 or more applications for cost-share assistance are comparable 

in achieving the purpose of the program, the Secretary shall not 

assign a higher priority to any 1 of those applications solely on 

the basis of lesser cost to the program. 

‘‘(f) CONDITION ON ASSISTANCE.— 
H. R. 2419—128 

‘‘(1) CONSERVATION PLAN.—Any highly erodible cropland 

for which a conservation easement or other interest is purchased using cost-share assistance provided under the program 

shall be subject to a conservation plan that requires, at the 

option of the Secretary, the conversion of the cropland to less 

intensive uses. 

‘‘(2) CONTINGENT RIGHT OF ENFORCEMENT.—The Secretary 

shall require the inclusion of a contingent right of enforcement 

for the Secretary in the terms of a conservation easement 

or other interest in eligible land that is purchased using costshare assistance provided under the program. 

‘‘(g) AGREEMENTS WITH ELIGIBLE ENTITIES.— 

‘‘(1) IN GENERAL.—The Secretary shall enter into agreements with eligible entities to stipulate the terms and conditions under which the eligible entity is permitted to use costshare assistance provided under subsection (c). 

‘‘(2) LENGTH OF AGREEMENTS.—An agreement under this 

subsection shall be for a term that is— 

‘‘(A) in the case of an eligible entity certified under 

the process described in subsection (h), a minimum of five 

years; and 

‘‘(B) for all other eligible entities, at least three, but 

not more than five years. 

‘‘(3) SUBSTITUTION OF QUALIFIED PROJECTS.—An agreement 

shall allow, upon mutual agreement of the parties, substitution 

of qualified projects that are identified at the time of the 

proposed substitution. 

‘‘(4) MINIMUM REQUIREMENTS.—An eligible entity shall be 

authorized to use its own terms and conditions, as approved 

by the Secretary, for conservation easements and other purchases of interests in land, so long as such terms and conditions— 

‘‘(A) are consistent with the purposes of the program; 

‘‘(B) permit effective enforcement of the conservation 

purposes of such easements or other interests; and 

‘‘(C) include a limit on the impervious surfaces to be 

allowed that is consistent with the agricultural activities 

to be conducted. 

‘‘(5) EFFECT OF VIOLATION.—If a violation occurs of a term 

or condition of an agreement entered into under this subsection— 

‘‘(A) the agreement shall remain in force; and 

‘‘(B) the Secretary may require the eligible entity to 

refund all or part of any payments received by the entity 

under the program, with interest on the payments as determined appropriate by the Secretary. 

‘‘(h) CERTIFICATION OF ELIGIBLE ENTITIES.— 

‘‘(1) CERTIFICATION PROCESS.—The Secretary shall establish 

a process under which the Secretary may— 

‘‘(A) directly certify eligible entities that meet established criteria; 

‘‘(B) enter into long-term agreements with certified 

entities, as authorized by subsection (g)(2)(A); and 

‘‘(C) accept proposals for cost-share assistance to certified entities for the purchase of conservation easements 

or other interests in eligible land throughout the duration 

of such agreements. 
H. R. 2419—129 

‘‘(2) CERTIFICATION CRITERIA.—In order to be certified, an 

eligible entity shall demonstrate to the Secretary that the entity 

will maintain, at a minimum, for the duration of the agreement— 

‘‘(A) a plan for administering easements that is consistent with the purpose of this subchapter; 

‘‘(B) the capacity and resources to monitor and enforce 

conservation easements or other interests in land; and 

‘‘(C) policies and procedures to ensure— 

‘‘(i) the long-term integrity of conservation easements or other interests in eligible land; 

‘‘(ii) timely completion of acquisitions of easements 

or other interests in eligible land; and 

‘‘(iii) timely and complete evaluation and reporting 

to the Secretary on the use of funds provided by the 

Secretary under the program. 

‘‘(3) REVIEW AND REVISION.— ‘‘(A) REVIEW.—The Secretary shall conduct a review 

of eligible entities certified under paragraph (1) every three 

years to ensure that such entities are meeting the criteria 

established under paragraph (2). 

‘‘(B) REVOCATION.—If the Secretary finds that the certified entity no longer meets the criteria established under 

paragraph (2), the Secretary may— 

‘‘(i) allow the certified entity a specified period 

of time, at a minimum 180 days, in which to take 

such actions as may be necessary to meet the criteria; 

and 

‘‘(ii) revoke the certification of the entity, if after 

the specified period of time, the certified entity does 

not meet the criteria established in paragraph (2).’’. 

SEC. 2402. FARM VIABILITY PROGRAM. 

Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C. 

3838j(b)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 2403. GRASSLAND RESERVE PROGRAM. 

Subchapter D of chapter 2 of subtitle D of title XII of the 

Food Security Act of 1985 (16 U.S.C. 3838n et seq.), as redesignated 

by section 2301(a)(1), is amended to read as follows: 

‘‘Subchapter D—Grassland Reserve Program 

‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM. 

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish a grassland reserve program (referred to in this subchapter 

as the ‘program’) for the purpose of assisting owners and operators 

in protecting grazing uses and related conservation values by 

restoring and conserving eligible land through rental contracts, 

easements, and restoration agreements. 

‘‘(b) ENROLLMENT OF ACREAGE.— ‘‘(1) ACREAGE ENROLLED.—The Secretary shall enroll an 

additional 1,220,000 acres of eligible land in the program during 

fiscal years 2009 through 2012. 

‘‘(2) METHODS OF ENROLLMENT.—The Secretary shall enroll 

eligible land in the program through the use of; 

‘‘(A) a 10-year, 15-year, or 20-year rental contract; 

‘‘(B) a permanent easement; or 
H. R. 2419—130 

‘‘(C) in a State that imposes a maximum duration 

for easements, an easement for the maximum duration 

allowed under the law of that State. 

‘‘(3) LIMITATION.—Of the total amount of funds expended 

under the program to acquire rental contracts and easements 

described in paragraph (2), the Secretary shall use, to the 

extent practicable— 

‘‘(A) 40 percent for rental contacts; and 

‘‘(B) 60 percent for easements. 

‘‘(4) ENROLLMENT OF CONSERVATION RESERVE LAND.— 

‘‘(A) PRIORITY.—Upon expiration of a contract under 

subchapter B of chapter 1 of this subtitle, the Secretary 

shall give priority for enrollment in the program to land 

previously enrolled in the conservation reserve program 

if— 

‘‘(i) the land is eligible land, as defined in subsection (c); and 

‘‘(ii) the Secretary determines that the land is of 

high ecological value and under significant threat of 

conversion to uses other than grazing. 

‘‘(B) MAXIMUM ENROLLMENT.—The number of acres of 

land enrolled under the priority described in subparagraph 

(A) in a calendar year shall not exceed 10 percent of the 

total number of acres enrolled in the program in that 

calendar year. 

‘‘(c) ELIGIBLE LAND DEFINED.—For purposes of the program, 

the term ‘eligible land’ means private or tribal land that— 

‘‘(1) is grassland, land that contains forbs, or shrubland 

(including improved rangeland and pastureland) for which 

grazing is the predominant use; 

‘‘(2) is located in an area that has been historically dominated by grassland, forbs, or shrubland, and the land— 

‘‘(A) could provide habitat for animal or plant populations of significant ecological value if the land— 

‘‘(i) is retained in its current use; or 

‘‘(ii) is restored to a natural condition; 

‘‘(B) contains historical or archaeological resources; or 

‘‘(C) would address issues raised by State, regional, 

and national conservation priorities; or 

‘‘(3) is incidental to land described in paragraph (1) or 

(2), if the incidental land is determined by the Secretary to 

be necessary for the efficient administration of a rental contract 

or easement under the program. 

‘‘SEC. 1238O. DUTIES OF OWNERS AND OPERATORS. 

‘‘(a) RENTAL CONTRACTS.—To be eligible to enroll eligible land 

in the program under a rental contract, the owner or operator 

of the land shall agree— 

‘‘(1) to comply with the terms of the contract and, when 

applicable, a restoration agreement; 

‘‘(2) to suspend any existing cropland base and allotment 

history for the land under another program administered by 

the Secretary; and 

‘‘(3) to implement a grazing management plan, as approved 

by the Secretary, which may be modified upon mutual agreement of the parties. 
H. R. 2419—131 

‘‘(b) EASEMENTS.—To be eligible to enroll eligible land in the 

program through an easement, the owner of the land shall agree— 

‘‘(1) to grant an easement to the Secretary or to an eligible 

entity described in section 1238Q; 

‘‘(2) to create and record an appropriate deed restriction 

in accordance with applicable State law to reflect the easement; 

‘‘(3) to provide a written statement of consent to the easement signed by persons holding a security interest or any 

vested interest in the land; 

‘‘(4) to provide proof of unencumbered title to the underlying fee interest in the land that is the subject of the easement; 

‘‘(5) to comply with the terms of the easement and, when 

applicable, a restoration agreement; 

‘‘(6) to implement a grazing management plan, as approved 

by the Secretary, which may be modified upon mutual agreement of the parties; and 

‘‘(7) to eliminate any existing cropland base and allotment 

history for the land under another program administered by 

the Secretary. 

‘‘(c) RESTORATION AGREEMENTS.— 

‘‘(1) WHEN APPLICABLE.—To be eligible for cost-share assistance to restore eligible land subject to a rental contract or 

an easement under the program, the owner or operator of 

the land shall agree to comply with the terms of a restoration 

agreement. 

‘‘(2) TERMS AND CONDITIONS.—The Secretary shall prescribe 

the terms and conditions of a restoration agreement by which 

eligible land that is subject to a rental contract or easement 

under the program shall be restored. 

‘‘(3) DUTIES.—The restoration agreement shall describe the 

respective duties of the owner or operator and the Secretary, 

including the Federal share of restoration payments and technical assistance. 

‘‘(d) TERMS AND CONDITIONS APPLICABLE TO RENTAL CONTRACTS

AND EASEMENTS.— 

‘‘(1) PERMISSIBLE ACTIVITIES.—The terms and conditions 

of a rental contract or easement under the program shall 

permit— 

‘‘(A) common grazing practices, including maintenance 

and necessary cultural practices, on the land in a manner 

that is consistent with maintaining the viability of grassland, forb, and shrub species appropriate to that locality; 

‘‘(B) haying, mowing, or harvesting for seed production, 

subject to appropriate restrictions during the nesting season for birds in the local area that are in significant decline 

or are conserved in accordance with Federal or State law, 

as determined by the State Conservationist; 

‘‘(C) fire presuppression, rehabilitation, and construction of fire breaks; and 

‘‘(D) grazing related activities, such as fencing and 

livestock watering. 

‘‘(2) PROHIBITIONS.—The terms and conditions of a rental 

contract or easement under the program shall prohibit— 

‘‘(A) the production of crops (other than hay), fruit 

trees, vineyards, or any other agricultural commodity that 

is inconsistent with maintaining grazing land; and 
H. R. 2419—132 

‘‘(B) except as permitted under a restoration plan, the 

conduct of any other activity that would be inconsistent 

with maintaining grazing land enrolled in the program. 

‘‘(3) ADDITIONAL TERMS AND CONDITIONS.—A rental contract 

or easement under the program shall include such additional 

provisions as the Secretary determines are appropriate to carry 

out or facilitate the purposes and administration of the program. 

‘‘(e) VIOLATIONS.—On a violation of the terms or conditions 

of a rental contract, easement, or restoration agreement entered 

into under this section— 

‘‘(1) the contract or easement shall remain in force; and 

‘‘(2) the Secretary may require the owner or operator to 

refund all or part of any payments received under the program, 

with interest on the payments as determined appropriate by 

the Secretary. 

‘‘SEC. 1238P. DUTIES OF SECRETARY. 

‘‘(a) EVALUATION AND RANKING OF APPLICATIONS.— 

‘‘(1) CRITERIA.—The Secretary shall establish criteria to 

evaluate and rank applications for rental contracts and easements under the program . 

‘‘(2) CONSIDERATIONS.—In establishing the criteria, the Secretary shall emphasize support for— 

‘‘(A) grazing operations; 

‘‘(B) plant and animal biodiversity; and 

‘‘(C) grassland, land that contains forbs, and shrubland 

under the greatest threat of conversion to uses other than 

grazing. 

‘‘(b) PAYMENTS.— 

‘‘(1) IN GENERAL.—In return for the execution of a rental 

contract or the granting of an easement by an owner or operator 

under the program, the Secretary shall— 

‘‘(A) make rental contract or easement payments to 

the owner or operator in accordance with paragraphs (2) 

and (3); and 

‘‘(B) make payments to the owner or operator under 

a restoration agreement for the Federal share of the cost 

of restoration in accordance with paragraph (4). 

‘‘(2) RENTAL CONTRACT PAYMENTS.— 

‘‘(A) PERCENTAGE OF GRAZING VALUE OF LAND.—In 

return for the execution of a rental contract by an owner 

or operator under the program, the Secretary shall make 

annual payments during the term of the contract in an 

amount, subject to subparagraph (B), that is not more 

than 75 percent of the grazing value of the land covered 

by the contract. 

‘‘(B) PAYMENT LIMITATION.—Payments made under 1 

or more rental contracts to a person or legal entity, directly 

or indirectly, may not exceed, in the aggregate, $50,000 

per year. 

‘‘(3) EASEMENT PAYMENTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), in 

return for the granting of an easement by an owner under 

the program, the Secretary shall make easement payments 

in an amount not to exceed the fair market value of the 
H. R. 2419—133 

land less the grazing value of the land encumbered by 

the easement. 

‘‘(B) METHOD FOR DETERMINATION OF COMPENSATION.— 

In making a determination under subparagraph (A), the 

Secretary shall pay as compensation for a easement 

acquired under the program the lowest of— 

‘‘(i) the fair market value of the land encumbered 

by the easement, as determined by the Secretary, 

using— 

‘‘(I) the Uniform Standards of Professional 

Appraisal Practices; or 

‘‘(II) an area-wide market analysis or survey; 

‘‘(ii) the amount corresponding to a geographical 

cap, as determined by the Secretary in regulations; 

or 

‘‘(iii) the offer made by the landowner. 

‘‘(C) SCHEDULE.—Easement payments may be provided 

in up to 10 annual payments of equal or unequal amount, 

as agreed to by the Secretary and the owner. 

‘‘(4) RESTORATION AGREEMENT PAYMENTS.— ‘‘(A) FEDERAL SHARE OF RESTORATION.—The Secretary 

shall make payments to an owner or operator under a 

restoration agreement of not more than 50 percent of the 

costs of carrying out measures and practices necessary 

to restore functions and values of that land. 

‘‘(B) PAYMENT LIMITATION.—Payments made under 1 

or more restoration agreements to a person or legal entity, 

directly or indirectly, may not exceed, in the aggregate, 

$50,000 per year. 

‘‘(5) PAYMENTS TO OTHERS.—If an owner or operator who 

is entitled to a payment under the program dies, becomes 

incompetent, is otherwise unable to receive the payment, or 

is succeeded by another person who renders or completes the 

required performance, the Secretary shall make the payment, 

in accordance with regulations promulgated by the Secretary 

and without regard to any other provision of law, in such 

manner as the Secretary determines is fair and reasonable 

in light of all the circumstances. 

‘‘SEC. 1238Q. DELEGATION OF DUTY. 

‘‘(a) AUTHORITY TO DELEGATE.—The Secretary may delegate 

a duty under the program— 

‘‘(1) by transferring title of ownership to an easement to 

an eligible entity to hold and enforce; or 

‘‘(2) by entering into a cooperative agreement with an 

eligible entity for the eligible entity to own, write, and enforce 

an easement. 

‘‘(b) ELIGIBLE ENTITY DEFINED.—In this section, the term 

‘eligible entity’ means— 

‘‘(1) an agency of State or local government or an Indian 

tribe; or 

‘‘(2) an organization that— 

‘‘(A) is organized for, and at all times since the formation of the organization has been operated principally for, 

one or more of the conservation purposes specified in clause 

(i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal 

Revenue Code of 1986; 
H. R. 2419—134 

‘‘(B) is an organization described in section 501(c)(3) 

of that Code that is exempt from taxation under section 

501(a) of that Code; and 

‘‘(C) is described in— 

‘‘(i) paragraph (1) or (2) of section 509(a) of that 

Code; or 

‘‘(ii) in section 509(a)(3) of that Code, and is controlled by an organization described in section 509(a)(2) 

of that Code. 

‘‘(c) TRANSFER OF TITLE OF OWNERSHIP.— 

‘‘(1) TRANSFER.—The Secretary may transfer title of ownership to an easement to an eligible entity to hold and enforce, 

in lieu of the Secretary, subject to the right of the Secretary 

to conduct periodic inspections and enforce the easement, if— 

‘‘(A) the Secretary determines that the transfer will 

promote protection of grassland, land that contains forbs, 

or shrubland; 

‘‘(B) the owner authorizes the eligible entity to hold 

or enforce the easement; and 

‘‘(C) the eligible entity agrees to assume the costs 

incurred in administering and enforcing the easement, 

including the costs of restoration or rehabilitation of the 

land as specified by the owner and the eligible entity. 

‘‘(2) APPLICATION.—An eligible entity that seeks to hold 

and enforce an easement shall apply to the Secretary for 

approval. 

‘‘(3) APPROVAL BY SECRETARY.—The Secretary may approve 

an application described in paragraph (2) if the eligible entity— 

‘‘(A) has the relevant experience necessary, as appropriate for the application, to administer an easement on 

grassland, land that contains forbs, or shrubland; 

‘‘(B) has a charter that describes a commitment to 

conserving ranchland, agricultural land, or grassland for 

grazing and conservation purposes; and 

‘‘(C) has the resources necessary to effectuate the purposes of the charter. 

‘‘(d) COOPERATIVE AGREEMENTS.— ‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.—The Secretary 

shall establish the terms and conditions of a cooperative agreement under which an eligible entity shall use funds provided 

by the Secretary to own, write, and enforce an easement, in 

lieu of the Secretary. 

‘‘(2) MINIMUM REQUIREMENTS.—At a minimum, the cooperative agreement shall— 

‘‘(A) specify the qualification of the eligible entity to 

carry out the entity’s responsibilities under the program, 

including acquisition, monitoring, enforcement, and 

implementation of management policies and procedures 

that ensure the long-term integrity of the easement protections; 

‘‘(B) require the eligible entity to assume the costs 

incurred in administering and enforcing the easement, 

including the costs of restoration or rehabilitation of the 

land as specified by the owner and the eligible entity; 

‘‘(C) specify the right of the Secretary to conduct periodic inspections to verify the eligible entity’s enforcement 

of the easement; 
H. R. 2419—135 

‘‘(D) subject to subparagraph (E), identify a specific 

project or a range of projects to be funded under the agreement; 

‘‘(E) allow, upon mutual agreement of the parties, 

substitution of qualified projects that are identified at the 

time of substitution; 

‘‘(F) specify the manner in which the eligible entity 

will evaluate and report the use of funds to the Secretary; 

‘‘(G) allow the eligible entity flexibility to develop and 

use terms and conditions for easements, if the Secretary 

finds the terms and conditions consistent with the purposes 

of the program and adequate to enable effective enforcement of the easements; 

‘‘(H) if applicable, allow an eligible entity to include 

a charitable donation or qualified conservation contribution 

(as defined by section 170(h) of the Internal Revenue Code 

of 1986) from the landowner from which the easement 

will be purchased as part of the entity’s share of the cost 

to purchase an easement; and 

‘‘(I) provide for a schedule of payments to an eligible 

entity, as agreed to by the Secretary and the eligible entity. 

‘‘(3) COST SHARING.— ‘‘(A) IN GENERAL.—As part of a cooperative agreement 

with an eligible entity under this subsection, the Secretary 

may provide a share of the purchase price of an easement 

under the program. 

‘‘(B) MINIMUM SHARE BY ELIGIBLE ENTITY.—The eligible 

entity shall be required to provide a share of the purchase 

price at least equivalent to that provided by the Secretary. 

‘‘(C) PRIORITY.—The Secretary may accord a higher 

priority to proposals from eligible entities that leverage 

a greater share of the purchase price of the easement. 

‘‘(4) VIOLATION.—If an eligible entity violates the terms 

or conditions of a cooperative agreement entered into under 

this subsection— 

‘‘(A) the cooperative agreement shall remain in force; 

and 

‘‘(B) the Secretary may require the eligible entity to 

refund all or part of any payments received by the eligible 

entity under the program, with interest on the payments 

as determined appropriate by the Secretary. 

‘‘(e) PROTECTION OF FEDERAL INVESTMENT.—When delegating 

a duty under this section, the Secretary shall ensure that the 

terms of an easement include a contingent right of enforcement 

for the Department.’’. 

Subtitle F—Environmental Quality 

Incentives Program 

SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. 

(a) REVISED PURPOSES.—Section 1240 of the Food Security Act 

of 1985 (16 U.S.C. 3839aa) is amended— 

(1) in the matter preceding paragraph (1), by inserting 

‘‘, forest management,’’ after ‘‘agricultural production’’; and 
H. R. 2419—136 

(2) by striking paragraphs (3) and (4) and inserting the 

following new paragraphs: 

‘‘(3) providing flexible assistance to producers to install 

and maintain conservation practices that sustain food and fiber 

production while— 

‘‘(A) enhancing soil, water, and related natural 

resources, including grazing land, forestland, wetland, and 

wildlife; and 

‘‘(B) conserving energy; 

‘‘(4) assisting producers to make beneficial, cost effective 

changes to production systems (including conservation practices 

related to organic production), grazing management, fuels 

management, forest management, nutrient management associated with livestock, pest or irrigation management, or other 

practices on agricultural and forested land; and’’. 

(b) TECHNICAL CORRECTION.—The Food Security Act of 1985 

is amended by inserting immediately before section 1240 (16 U.S.C. 

3839aa) the following: 

‘‘CHAPTER 4—ENVIRONMENTAL QUALITY INCENTIVES 

PROGRAM’’. 

SEC. 2502. DEFINITIONS. 

Section 1240A of the Food Security Act of 1985 (16 U.S.C. 

3839aa–1) is amended to read as follows: 

‘‘SEC. 1240A. DEFINITIONS. 

‘‘In this chapter: 

‘‘(1) ELIGIBLE LAND.— 

‘‘(A) IN GENERAL.—The term ‘eligible land’ means land 

on which agricultural commodities, livestock, or forestrelated products are produced. 

‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes the 

following: 

‘‘(i) Cropland. 

‘‘(ii) Grassland. 

‘‘(iii) Rangeland. 

‘‘(iv) Pasture land. 

‘‘(v) Nonindustrial private forest land. 

‘‘(vi) Other agricultural land (including cropped 

woodland, marshes, and agricultural land used for the 

production of livestock) on which resource concerns 

related to agricultural production could be addressed 

through a contract under the program, as determined 

by the Secretary. 

‘‘(2) NATIONAL ORGANIC PROGRAM.—The term ‘national 

organic program’ means the national organic program established under the Organic Foods Production Act of 1990 (7 

U.S.C. 6501 et. seq.). 

‘‘(3) ORGANIC SYSTEM PLAN.—The term ‘organic system plan’ 

means an organic plan approved under the national organic 

program. 

‘‘(4) PAYMENT.—The term ‘payment’ means financial assistance provided to a producer for performing practices under 

this chapter, including compensation for— 
H. R. 2419—137 

‘‘(A) incurred costs associated with planning, design, 

materials, equipment, installation, labor, management, 

maintenance, or training; and 

‘‘(B) income forgone by the producer. 

‘‘(5) PRACTICE.—The term ‘practice’ means 1 or more 

improvements and conservation activities that are consistent 

with the purposes of the program under this chapter, as determined by the Secretary, including— 

‘‘(A) improvements to eligible land of the producer, 

including— 

‘‘(i) structural practices; 

‘‘(ii) land management practices; 

‘‘(iii) vegetative practices; 

‘‘(iv) forest management; and 

‘‘(v) other practices that the Secretary determines 

would further the purposes of the program; and 

‘‘(B) conservation activities involving the development 

of plans appropriate for the eligible land of the producer, 

including— 

‘‘(i) comprehensive nutrient management planning; 

and 

‘‘(ii) other plans that the Secretary determines 

would further the purposes of the program under this 

chapter. 

‘‘(6) PROGRAM.—The term ‘program’ means the environmental quality incentives program established by this chapter.’’. 

SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. 

Section 1240B of the Food Security Act of 1985 (16 U.S.C. 

3839aa–2) is amended to read as follows: 

‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION. 

‘‘(a) ESTABLISHMENT.—During each of the 2002 through 2012 

fiscal years, the Secretary shall provide payments to producers 

that enter into contracts with the Secretary under the program. 

‘‘(b) PRACTICES AND TERM.— 

‘‘(1) PRACTICES.—A contract under the program may apply 

to the performance of one or more practices. 

‘‘(2) TERM.—A contract under the program shall have a 

term that— 

‘‘(A) at a minimum, is equal to the period beginning 

on the date on which the contract is entered into and 

ending on the date that is one year after the date on 

which all practices under the contract have been implemented; but 

‘‘(B) not to exceed 10 years. 

‘‘(c) BIDDING DOWN.—If the Secretary determines that the 

environmental values of two or more applications for payments 

are comparable, the Secretary shall not assign a higher priority 

to the application only because it would present the least cost 

to the program. 

‘‘(d) PAYMENTS.— 

‘‘(1) AVAILABILITY OF PAYMENTS.—Payments are provided 

to a producer to implement one or more practices under the 

program. 
H. R. 2419—138 

‘‘(2) LIMITATION ON PAYMENT AMOUNTS.—A payment to a 

producer for performing a practice may not exceed, as determined by the Secretary— 

‘‘(A) 75 percent of the costs associated with planning, 

design, materials, equipment, installation, labor, management, maintenance, or training; 

‘‘(B) 100 percent of income foregone by the producer; 

or 

‘‘(C) in the case of a practice consisting of elements 

covered under subparagraphs (A) and (B)— 

‘‘(i) 75 percent of the costs incurred for those elements covered under subparagraph (A); and 

‘‘(ii) 100 percent of income foregone for those elements covered under subparagraph (B). 

‘‘(3) SPECIAL RULE INVOLVING PAYMENTS FOR FOREGONE

INCOME.—In determining the amount and rate of payments 

under paragraph (2)(B), the Secretary may accord great significance to a practice that, as determined by the Secretary, promotes— 

‘‘(A) residue management; 

‘‘(B) nutrient management; 

‘‘(C) air quality management; 

‘‘(D) invasive species management; 

‘‘(E) pollinator habitat; 

‘‘(F) animal carcass management technology; or 

‘‘(G) pest management. 

‘‘(4) INCREASED PAYMENTS FOR CERTAIN PRODUCERS.— 

‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), in 

the case of a producer that is a limited resource, socially 

disadvantaged farmer or rancher or a beginning farmer 

or rancher, the Secretary shall increase the amount that 

would otherwise be provided to a producer under this subsection— 

‘‘(i) to not more than 90 percent of the costs associated with planning, design, materials, equipment, 

installation, labor, management, maintenance, or 

training; and 

‘‘(ii) to not less than 25 percent above the otherwise 

applicable rate. 

‘‘(B) ADVANCE PAYMENTS.—Not more than 30 percent 

of the amount determined under subparagraph (A) may 

be provided in advance for the purpose of purchasing materials or contracting. 

‘‘(5) FINANCIAL ASSISTANCE FROM OTHER SOURCES.—Except 

as provided in paragraph (6), any payments received by a 

producer from a State or private organization or person for 

the implementation of one or more practices on eligible land 

of the producer shall be in addition to the payments provided 

to the producer under this subsection. 

‘‘(6) OTHER PAYMENTS.—A producer shall not be eligible 

for payments for practices on eligible land under the program 

if the producer receives payments or other benefits for the 

same practice on the same land under another program under 

this subtitle. 

‘‘(e) MODIFICATION OR TERMINATION OF CONTRACTS.— 
H. R. 2419—139 

‘‘(1) VOLUNTARY MODIFICATION OR TERMINATION.—The Secretary may modify or terminate a contract entered into with 

a producer under the program if— 

‘‘(A) the producer agrees to the modification or termination; and 

‘‘(B) the Secretary determines that the modification 

or termination is in the public interest. 

‘‘(2) INVOLUNTARY TERMINATION.—The Secretary may 

terminate a contract under the program if the Secretary determines that the producer violated the contract. 

‘‘(f) ALLOCATION OF FUNDING.—For each of fiscal years 2002 

through 2012, 60 percent of the funds made available for payments 

under the program shall be targeted at practices relating to livestock production. 

‘‘(g) FUNDING FOR FEDERALLY RECOGNIZED NATIVE AMERICAN

INDIAN TRIBES AND ALASKA NATIVE CORPORATIONS.—The Secretary 

may enter into alternative funding arrangements with federally 

recognized Native American Indian Tribes and Alaska Native Corporations (including their affiliated membership organizations) if 

the Secretary determines that the goals and objectives of the program will be met by such arrangements, and that statutory limitations regarding contracts with individual producers will not be 

exceeded by any Tribal or Native Corporation member. 

‘‘(h) WATER CONSERVATION OR IRRIGATION EFFICIENCY PRACTICE.— 

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary may provide payments under this subsection to a producer for a water 

conservation or irrigation practice. 

‘‘(2) PRIORITY.—In providing payments to a producer for 

a water conservation or irrigation practice, the Secretary shall 

give priority to applications in which— 

‘‘(A) consistent with the law of the State in which 

the eligible land of the producer is located, there is a 

reduction in water use in the operation of the producer; 

or 

‘‘(B) the producer agrees not to use any associated 

water savings to bring new land, other than incidental 

land needed for efficient operations, under irrigated production, unless the producer is participating in a watershedwide project that will effectively conserve water, as determined by the Secretary. 

‘‘(i) PAYMENTS FOR CONSERVATION PRACTICES RELATED TO

ORGANIC PRODUCTION.— 

‘‘(1) PAYMENTS AUTHORIZED.—The Secretary shall provide 

payments under this subsection for conservation practices, on 

some or all of the operations of a producer, related— 

‘‘(A) to organic production; and 

‘‘(B) to the transition to organic production. 

‘‘(2) ELIGIBILITY REQUIREMENTS.—As a condition for 

receiving payments under this subsection, a producer shall 

agree— 

‘‘(A) to develop and carry out an organic system plan; 

or 

‘‘(B) to develop and implement conservation practices 

for certified organic production that are consistent with 

an organic system plan and the purposes of this chapter. 
H. R. 2419—140 

‘‘(3) PAYMENT LIMITATIONS.—Payments under this subsection to a person or legal entity, directly or indirectly, may 

not exceed, in the aggregate, $20,000 per year or $80,000 during 

any 6-year period. In applying these limitations, the Secretary 

shall not take into account payments received for technical 

assistance. 

‘‘(4) EXCLUSION OF CERTAIN ORGANIC CERTIFICATION

COSTS.—Payments may not be made under this subsection to 

cover the costs associated with organic certification that are 

eligible for cost-share payments under section 10606 of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

6523). 

‘‘(5) TERMINATION OF CONTRACTS.—The Secretary may 

cancel or otherwise nullify a contract to provide payments 

under this subsection if the Secretary determines that the 

producer— 

‘‘(A) is not pursuing organic certification; or 

‘‘(B) is not in compliance with the Organic Foods 

Production Act of 1990 (7 U.S.C. 6501 et seq).’’. 

SEC. 2504. EVALUATION OF APPLICATIONS. 

Section 1240C of the Food Security Act of 1985 (16 U.S.C. 

3839aa–3) is amended to read as follows: 

‘‘SEC. 1240C. EVALUATION OF APPLICATIONS. 

‘‘(a) EVALUATION CRITERIA.—The Secretary shall develop criteria for evaluating applications that will ensure that national, 

State, and local conservation priorities are effectively addressed. 

‘‘(b) PRIORITIZATION OF APPLICATIONS.—In evaluating applications under this chapter, the Secretary shall prioritize applications— 

‘‘(1) based on their overall level of cost-effectiveness to 

ensure that the conservation practices and approaches proposed 

are the most efficient means of achieving the anticipated 

environmental benefits of the project; 

‘‘(2) based on how effectively and comprehensively the 

project addresses the designated resource concern or resource 

concerns; 

‘‘(3) that best fulfill the purpose of the environmental 

quality incentives program specified in section 1240(1); and 

‘‘(4) that improve conservation practices or systems in place 

on the operation at the time the contract offer is accepted 

or that will complete a conservation system. 

‘‘(c) GROUPING OF APPLICATIONS.—To the greatest extent practicable, the Secretary shall group applications of similar crop or 

livestock operations for evaluation purposes or otherwise evaluate 

applications relative to other applications for similar farming operations.’’. 

SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY 

INCENTIVES PROGRAM. 

Section 1240D of the Food Security Act of 1985 (16 U.S.C. 

3839aa–4) is amended— 

(1) in the matter preceding paragraph (1), by striking ‘‘technical assistance, cost-share payments, or incentive’’; 

(2) in paragraph (2), by striking ‘‘farm or ranch’’ and 

inserting ‘‘farm, ranch, or forest land’’; and 
H. R. 2419—141 

(3) in paragraph (4), by striking ‘‘cost-share payments and 

incentive’’. 

SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN. 

(a) PLAN OF OPERATIONS.—Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa–5(a)) is amended— 

(1) in the subsection heading, by striking ‘‘IN GENERAL’’ 

and inserting ‘‘PLAN OF OPERATIONS’’; 

(2) in matter preceding paragraph (1), by striking ‘‘costshare payments or incentive’’; 

(3) in paragraph (2), by striking ‘‘and’’ after the semicolon 

at the end; 

(4) in paragraph (3), by striking the period at the end 

and inserting ‘‘; and’’; and 

(5) by adding at the end the following new paragraph: 

‘‘(4) in the case of forest land, is consistent with the provisions of a forest management plan that is approved by the 

Secretary, which may include— 

‘‘(A) a forest stewardship plan described in section 

5 of the Cooperative Forestry Assistance Act of 1978 (16 

U.S.C. 2103a); 

‘‘(B) another practice plan approved by the State forester; or 

‘‘(C) another plan determined appropriate by the Secretary.’’. 

(b) AVOIDANCE OF DUPLICATION.—Subsection (b) of section 

1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa–5) 

is amended to read as follows: 

‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary shall— 

‘‘(1) consider a plan developed in order to acquire a permit 

under a water or air quality regulatory program as the equivalent of a plan of operations under subsection (a), if the plan 

contains elements equivalent to those elements required by 

a plan of operations; and 

‘‘(2) to the maximum extent practicable, eliminate duplication of planning activities under the program under this chapter 

and comparable conservation programs.’’. 

SEC. 2507. DUTIES OF THE SECRETARY. 

Section 1240F(1) of the Food Security Act of 1985 (16 U.S.C. 

3839aa–6(1)) is amended by striking ‘‘cost-share payments or incentive’’. 

SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES 

PROGRAM PAYMENTS. 

Section 1240G of the Food Security Act of 1985 (16 U.S.C. 

3839aa–7) is amended— 

(1) by striking ‘‘An individual or entity’’ and inserting ‘‘(a) 

LIMITATION.—Subject to subsection (b), a person or legal 

entity’’; (2) by striking ‘‘$450,000’’ and inserting ‘‘$300,000’’; 

(3) by striking ‘‘the individual’’ both places it appears and 

inserting ‘‘the person’’; and 

(4) by adding at the end the following new subsection: 

‘‘(b) WAIVER AUTHORITY.—In the case of contracts under this 

chapter for projects of special environmental significance (including 

projects involving methane digesters), as determined by the Secretary, the Secretary may— 
H. R. 2419—142 

‘‘(1) waive the limitation otherwise applicable under subsection (a); and 

‘‘(2) raise the limitation to not more than $450,000 during 

any six-year period.’’. 

SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS. 

Section 1240H of the Food Security Act of 1985 (16 U.S.C. 

3839aa–8) is amended to read as follows: 

‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS. 

‘‘(a) COMPETITIVE GRANTS FOR INNOVATIVE CONSERVATION

APPROACHES.— 

‘‘(1) GRANTS.—Out of the funds made available to carry 

out this chapter, the Secretary may pay the cost of competitive 

grants that are intended to stimulate innovative approaches 

to leveraging the Federal investment in environmental enhancement and protection, in conjunction with agricultural production or forest resource management, through the program. 

‘‘(2) USE.—The Secretary may provide grants under this 

subsection to governmental and non-governmental organizations and persons, on a competitive basis, to carry out projects 

that— 

‘‘(A) involve producers who are eligible for payments 

or technical assistance under the program; 

‘‘(B) leverage Federal funds made available to carry 

out the program under this chapter with matching funds 

provided by State and local governments and private 

organizations to promote environmental enhancement and 

protection in conjunction with agricultural production; 

‘‘(C) ensure efficient and effective transfer of innovative 

technologies and approaches demonstrated through projects 

that receive funding under this section, such as market 

systems for pollution reduction and practices for the storage 

of carbon in soil; and 

‘‘(D) provide environmental and resource conservation 

benefits through increased participation by producers of 

specialty crops. 

‘‘(b) AIR QUALITY CONCERNS FROM AGRICULTURAL OPERATIONS.— 

‘‘(1) IMPLEMENTATION ASSISTANCE.—The Secretary shall 

provide payments under this subsection to producers to implement practices to address air quality concerns from agricultural 

operations and to meet Federal, State, and local regulatory 

requirements. The funds shall be made available on the basis 

of air quality concerns in a State and shall be used to provide 

payments to producers that are cost effective and reflect innovative technologies. 

‘‘(2) FUNDING.—Of the funds made available to carry out 

this chapter, the Secretary shall carry out this subsection using 

$37,500,000 for each of fiscal years 2009 through 2012.’’. 

SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM. 

Section 1240I of the Food Security Act of 1985 (16 U.S.C. 

3839aa–9) is amended to read as follows: 

‘‘SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 
H. R. 2419—143 

‘‘(1) AGRICULTURAL WATER ENHANCEMENT ACTIVITY.—The 

term ‘agricultural water enhancement activity’ includes the 

following activities carried out with respect to agricultural land: 

‘‘(A) Water quality or water conservation plan development, including resource condition assessment and modeling. 

‘‘(B) Water conservation restoration or enhancement 

projects, including conversion to the production of less 

water-intensive agricultural commodities or dryland 

farming. 

‘‘(C) Water quality or quantity restoration or enhancement projects. 

‘‘(D) Irrigation system improvement and irrigation efficiency enhancement. 

‘‘(E) Activities designed to mitigate the effects of 

drought. 

‘‘(F) Related activities that the Secretary determines 

will help achieve water quality or water conservation benefits on agricultural land. 

‘‘(2) PARTNER.—The term ‘partner’ means an entity that 

enters into a partnership agreement with the Secretary to 

carry out agricultural water enhancement activities on a 

regional basis, including— 

‘‘(A) an agricultural or silvicultural producer association or other group of such producers; 

‘‘(B) a State or unit of local government; or 

‘‘(C) a federally recognized Indian tribe. 

‘‘(3) PARTNERSHIP AGREEMENT.—The term ‘partnership 

agreement’ means an agreement between the Secretary and 

a partner. 

‘‘(4) PROGRAM.—The term ‘program’ means the agricultural 

water enhancement program established under subsection (b). 

‘‘(b) ESTABLISHMENT OF PROGRAM.—Beginning in fiscal year 

2009, the Secretary shall carry out, in accordance with this section 

and using such procedures as the Secretary determines to be appropriate, an agricultural water enhancement program as part of the 

environmental quality incentives program to promote ground and 

surface water conservation and improve water quality on agricultural lands— 

‘‘(1) by entering into contracts with, and making payments 

to, producers to carry out agricultural water enhancement 

activities; or 

‘‘(2) by entering into partnership agreements with partners, 

in accordance with subsection (c), on a regional level to benefit 

working agricultural land. 

‘‘(c) PARTNERSHIP AGREEMENTS.— 

‘‘(1) AGREEMENTS AUTHORIZED.—The Secretary may enter 

into partnership agreements to meet the objectives of the program described in subsection (b). 

‘‘(2) APPLICATIONS.—An application to the Secretary to 

enter into a partnership agreement under paragraph (1) shall 

include the following: 

‘‘(A) A description of the geographical area to be covered by the partnership agreement. 

‘‘(B) A description of the agricultural water quality 

or water conservation issues to be addressed by the partnership agreement. 
H. R. 2419—144 

‘‘(C) A description of the agricultural water enhancement objectives to be achieved through the partnership. 

‘‘(D) A description of the partners collaborating to 

achieve the project objectives and the roles, responsibilities, 

and capabilities of each partner. 

‘‘(E) A description of the program resources, including 

payments the Secretary is requested to make. 

‘‘(F) Such other such elements as the Secretary considers necessary to adequately evaluate and competitively 

select applications for partnership agreements. 

‘‘(3) DUTIES OF PARTNERS.—A partner under a partnership 

agreement shall— 

‘‘(A) identify producers participating in the project and 

act on their behalf in applying for the program; 

‘‘(B) leverage funds provided by the Secretary with 

additional funds to help achieve project objectives; 

‘‘(C) conduct monitoring and evaluation of project 

effects; and 

‘‘(D) at the conclusion of the project, report to the 

Secretary on project results. 

‘‘(d) AGRICULTURAL WATER ENHANCEMENT ACTIVITIES BY PRODUCERS.—The Secretary shall select agricultural water enhancement activities proposed by producers according to applicable 

requirements under the environmental quality incentives program. 

‘‘(e) AGRICULTURAL WATER ENHANCEMENT ACTIVITIES BY PARTNERS.— 

‘‘(1) COMPETITIVE PROCESS.—The Secretary shall conduct 

a competitive process to select partners. In carrying out the 

process, the Secretary shall make public the criteria used in 

evaluating applications. 

‘‘(2) AUTHORITY TO GIVE PRIORITY TO CERTAIN PROPOSALS.— 

The Secretary may give a higher priority to proposals from 

partners that— 

‘‘(A) include high percentages of agricultural land and 

producers in a region or other appropriate area; 

‘‘(B) result in high levels of applied agricultural water 

quality and water conservation activities; 

‘‘(C) significantly enhance agricultural activity; 

‘‘(D) allow for monitoring and evaluation; and 

‘‘(E) assist producers in meeting a regulatory requirement that reduces the economic scope of the producer’s 

operation. 

‘‘(3) PRIORITY TO PROPOSALS FROM STATES WITH WATER

QUANTITY CONCERNS.—The Secretary shall give a higher priority to proposals from partners that— 

‘‘(A) include the conversion of agricultural land from 

irrigated farming to dryland farming; 

‘‘(B) leverage Federal funds provided under the program with funds provided by partners; and 

‘‘(C) assist producers in States with water quantity 

concerns, as determined by the Secretary. 

‘‘(4) ADMINISTRATION.—In carrying out this subsection, the 

Secretary shall— 

‘‘(A) accept qualified applications— 

‘‘(i) directly from partners applying on behalf of 

producers; or 
H. R. 2419—145 

‘‘(ii) from producers applying through a partner 

as part of a regional agricultural water enhancement 

project; and 

‘‘(B) ensure that resources made available for regional 

agricultural water enhancement activities are delivered in 

accordance with applicable program rules. 

‘‘(f) AREAS EXPERIENCING EXCEPTIONAL DROUGHT.—Notwithstanding the purposes described in section 1240, the Secretary 

shall consider as an eligible agricultural water enhancement activity 

the use of a water impoundment to capture surface water runoff 

on agricultural land if the agricultural water enhancement 

activity— 

‘‘(1) is located in an area that is experiencing or has experienced exceptional drought conditions during the previous two 

calendar years; and 

‘‘(2) will capture surface water runoff through the construction, improvement, or maintenance of irrigation ponds or small, 

on-farm reservoirs. 

‘‘(g) WAIVER AUTHORITY.—To assist in the implementation of 

agricultural water enhancement activities under the program, the 

Secretary shall waive the applicability of the limitation in section 

1001D(b)(2)(B) of this Act for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program. 

‘‘(h) PAYMENTS UNDER PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall provide appropriate 

payments to producers participating in agricultural water 

enhancement activities in an amount determined by the secretary to be necessary to achieve the purposes of the program 

described in subsection (b). 

‘‘(2) PAYMENTS TO PRODUCERS IN STATES WITH WATER

QUANTITY CONCERNS.—The Secretary shall provide payments 

for a period of five years to producers participating in agricultural water enhancement activities under proposals described 

in subsection (e)(3) in an amount sufficient to encourage producers to convert from irrigated farming to dryland farming. 

‘‘(i) CONSISTENCY WITH STATE LAW.—Any agricultural water 

enhancement activity conducted under the program shall be conducted in a manner consistent with State water law. 

‘‘(j) FUNDING.— 

‘‘(1) AVAILABILITY OF FUNDS.—In addition to funds made 

available to carry out this chapter under section 1241(a), the 

Secretary shall carry out the program using, of the funds of 

the Commodity Credit Corporation— 

‘‘(A) $73,000,000 for each of fiscal years 2009 and 2010; 

‘‘(B) $74,000,000 for fiscal year 2011; and 

‘‘(C) $60,000,000 for fiscal year 2012 and each fiscal 

year thereafter. 

‘‘(2) LIMITATION ON ADMINISTRATIVE EXPENSES.—None of 

the funds made available for regional agricultural water conservation activities under the program may be used to pay 

for the administrative expenses of partners.’’. 
H. R. 2419—146 

Subtitle G—Other Conservation Programs 

of the Food Security Act of 1985 

SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND. 

Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C. 

3839bb(e)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM. 

(a) ELIGIBILITY.—Section 1240N of the Food Security Act of 

1985 (16 U.S.C. 3839bb–1) is amended— 

(1) in subsection (a), by inserting before the period at 

the end the following: ‘‘for the development of wildlife habitat 

on private agricultural land, nonindustrial private forest land, 

and tribal lands’’. 

(2) in subsection (b)(1), by striking ‘‘landowners’’ and 

inserting ‘‘owners of lands referred to in subsection (a)’’. 

(b) INCLUSION OF PIVOT CORNERS AND IRREGULAR AREAS.— 

Section 1240N(b)(1)(E) of the Food Security Act of 1985 (16 U.S.C. 

3839bb–1(b)(1)(E)) is amended by inserting before the period at 

the end the following: ‘‘, including habitat developed on pivot corners 

and irregular areas’’. 

(c) COST SHARE FOR LONG-TERM AGREEMENTS.—Section 

1240N(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C. 3839bb– 

1(b)(2)(B)) is amended by striking ‘‘15 percent’’ and inserting ‘‘25 

percent’’. 

(d) PRIORITY FOR CERTAIN CONSERVATION INITIATIVES; PAYMENT

LIMITATION.—Section 1240N of the Food Security Act of 1985 (16 

U.S.C. 3839bb–1) is amended by adding at the end the following 

new subsections: 

‘‘(d) PRIORITY FOR CERTAIN CONSERVATION INITIATIVES.—In carrying out this section, the Secretary may give priority to projects 

that would address issues raised by State, regional, and national 

conservation initiatives. 

‘‘(e) PAYMENT LIMITATION.—Payments made to a person or legal 

entity, directly or indirectly, under the program may not exceed, 

in the aggregate, $50,000 per year.’’. 

SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM. 

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 

3839bb–2(b)) is amended by striking ‘‘$5,000,000 for each of fiscal 

years 2002 through 2007’’ and inserting ‘‘$20,000,000 for each of 

fiscal years 2008 through 2012’’. 

SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND 

SEDIMENT CONTROL. 

Section 1240P of the Food Security Act of 1985 (16 U.S.C. 

3839bb–3) is amended to read as follows: 

‘‘SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND 

SEDIMENT CONTROL. 

‘‘(a) PROGRAM AUTHORIZED.—The Secretary may carry out the 

Great Lakes basin program for soil erosion and sediment control 

(referred to in this section as the ‘program’), including providing 

assistance to implement the recommendations of the Great Lakes 

Regional Collaboration Strategy to Restore and Protect the Great 

Lakes. 
H. R. 2419—147 

‘‘(b) CONSULTATION AND COOPERATION.—The Secretary shall 

carry out the program in consultation with the Great Lakes 

Commission created by Article IV of the Great Lakes Basin Compact 

(82 Stat. 415) and in cooperation with the Administrator of the 

Environmental Protection Agency and the Secretary of the Army. 

‘‘(c) ASSISTANCE.—In carrying out the program, the Secretary 

may— 

‘‘(1) provide project demonstration grants, provide technical 

assistance, and carry out information and educational programs 

to improve water quality in the Great Lakes basin by reducing 

soil erosion and improving sediment control; and 

‘‘(2) establish a priority for projects and activities that— 

‘‘(A) directly reduce soil erosion or improve sediment 

control; 

‘‘(B) reduce soil loss in degraded rural watersheds; 

or 

‘‘(C) improve water quality for downstream watersheds. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out the program 

$5,000,000 for each of fiscal years 2008 through 2012.’’. 

SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM. 

Chapter 5 of subtitle D of title XII of the Food Security Act 

of 1985 is amended by inserting after section 1240P (16 U.S.C. 

3839bb–3) the following new section: 

‘‘SEC. 1240Q. CHESAPEAKE BAY WATERSHED. 

‘‘(a) CHESAPEAKE BAY WATERSHED DEFINED.—In this section, 

the term ‘Chesapeake Bay watershed’ means all tributaries, backwaters, and side channels, including their watersheds, draining 

into the Chesapeake Bay. 

‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall assist 

producers in implementing conservation activities on agricultural 

lands in the Chesapeake Bay watershed for the purposes of— 

‘‘(1) improving water quality and quantity in the Chesapeake Bay watershed; and 

‘‘(2) restoring, enhancing, and preserving soil, air, and 

related resources in the Chesapeake Bay watershed. 

‘‘(c) CONSERVATION ACTIVITIES.—The Secretary shall deliver the 

funds made available to carry out this section through applicable 

programs under this subtitle to assist producers in enhancing land 

and water resources— 

‘‘(1) by controlling erosion and reducing sediment and 

nutrient levels in ground and surface water; and 

‘‘(2) by planning, designing, implementing, and evaluating 

habitat conservation, restoration, and enhancement measures 

where there is significant ecological value if the lands are— 

‘‘(A) retained in their current use; or 

‘‘(B) restored to their natural condition. 

‘‘(d) AGREEMENTS.— ‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) enter into agreements with producers to carry 

out the purposes of this section; and 

‘‘(B) use the funds made available to carry out this 

section to cover the costs of the program involved with 

each agreement. 

‘‘(2) SPECIAL CONSIDERATIONS.—In entering into agreements under this subsection, the Secretary shall give special 
H. R. 2419—148 

consideration to, and begin evaluating, applications with producers in the following river basins: 

‘‘(A) The Susquehanna River. 

‘‘(B) The Shenandoah River. 

‘‘(C) The Potomac River (including North and South 

Potomac). 

‘‘(D) The Patuxent River. 

‘‘(e) DUTIES OF THE SECRETARY.—In carrying out the purposes 

in this section, the Secretary shall— 

‘‘(1) where available, use existing plans, models, and assessments to assist producers in implementing conservation activities; and 

‘‘(2) proceed expeditiously with the implementation of any 

agreement with a producer that is consistent with State strategies for the restoration of the Chesapeake Bay watershed. 

‘‘(f) CONSULTATION.—The Secretary, in consultation with appropriate Federal agencies, shall ensure conservation activities carried 

out under this section complement Federal and State programs, 

including programs that address water quality, in the Chesapeake 

Bay watershed. 

‘‘(g) SENSE OF CONGRESS REGARDING CHESAPEAKE BAY EXECU- TIVE COUNCIL.—It is the sense of Congress that the Secretary 

should be a member of the Chesapeake Bay Executive Council, 

and is authorized to do so under section 1(3) of the Soil Conservation 

and Domestic Allotment Act (16 U.S.C. 590a(3)). 

‘‘(h) FUNDING.— ‘‘(1) AVAILABILITY.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall use, to the maximum extent 

practicable— ‘‘(A) $23,000,000 for fiscal year 2009; 

‘‘(B) $43,000,000 for fiscal year 2010; 

‘‘(C) $72,000,000 for fiscal year 2011; and 

‘‘(D) $50,000,000 for fiscal year 2012. 

‘‘(2) DURATION OF AVAILABILITY.—Funds made available 

under paragraph (1) shall remain available until expended.’’ 

SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM. 

Chapter 5 of subtitle D of title XII of the Food Security Act 

of 1985 (16 U.S.C. 3839bb et seq.) is amended by inserting after 

section 1240Q, as added by section 2605, the following new section: 

‘‘SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 

PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a voluntary 

public access program under which States and tribal governments 

may apply for grants to encourage owners and operators of privately-held farm, ranch, and forest land to voluntarily make that 

land available for access by the public for wildlife-dependent recreation, including hunting or fishing under programs administered 

by the States and tribal governments. 

‘‘(b) APPLICATIONS.—In submitting applications for a grant 

under the program, a State or tribal government shall describe— 

‘‘(1) the benefits that the State or tribal government intends 

to achieve by encouraging public access to private farm and 

ranch land for— 

‘‘(A) hunting and fishing; and 
H. R. 2419—149 

‘‘(B) to the maximum extent practicable, other recreational purposes; and 

‘‘(2) the methods that will be used to achieve those benefits. 

‘‘(c) PRIORITY.—In approving applications and awarding grants 

under the program, the Secretary shall give priority to States 

and tribal governments that propose— 

‘‘(1) to maximize participation by offering a program the 

terms of which are likely to meet with widespread acceptance 

among landowners; 

‘‘(2) to ensure that land enrolled under the State or tribal 

government program has appropriate wildlife habitat; 

‘‘(3) to strengthen wildlife habitat improvement efforts on 

land enrolled in a special conservation reserve enhancement 

program described in section 1234(f)(4) by providing incentives 

to increase public hunting and other recreational access on 

that land; 

‘‘(4) to use additional Federal, State, tribal government, 

or private resources in carrying out the program; and 

‘‘(5) to make available to the public the location of land 

enrolled. 

‘‘(d) RELATIONSHIP TO OTHER LAWS.— ‘‘(1) NO PREEMPTION.—Nothing in this section preempts 

a State or tribal government law, including any State or tribal 

government liability law. 

‘‘(2) EFFECT OF INCONSISTENT OPENING DATES FOR MIGRA- TORY BIRD HUNTING.—The Secretary shall reduce by 25 percent 

the amount of a grant otherwise determined for a State under 

the program if the opening dates for migratory bird hunting 

in the State are not consistent for residents and non-residents. 

‘‘(e) REGULATIONS.—The Secretary shall promulgate such regulations as are necessary to carry out this section. 

‘‘(f) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use, to the maximum extent practicable, 

$50,000,000 for the period of fiscal years 2009 through 2012.’’. 

Subtitle H—Funding and Administration of 

Conservation Programs 

SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD 

SECURITY ACT OF 1985. 

(a) IN GENERAL.—Section 1241(a) of the Food Security Act 

of 1985 (16 U.S.C. 3841(a)) is amended in the matter preceding 

paragraph (1), by striking ‘‘2007’’ and inserting ‘‘2012’’. 

(b) CONSERVATION RESERVE PROGRAM.—Paragraph (1) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) 

is amended by striking the period at the end and inserting the 

following: ‘‘, including to the maximum extent practicable— 

‘‘(A) $100,000,000 for the period of fiscal years 2009 

through 2012 to provide cost share payments under paragraph (3) of section 1234(b) in connection with thinning 

activities conducted on land described in subparagraph 

(A)(iii) of such paragraph; and 

‘‘(B) $25,000,000 for the period of fiscal years 2009 

through 2012 to carry out section 1235(f) to facilitate the 

transfer of land subject to contracts from retired or retiring 
H. R. 2419—150 

owners and operators to beginning farmers or ranchers 

and socially disadvantaged farmers or ranchers.’’. 

(c) CONSERVATION SECURITY AND CONSERVATION STEWARDSHIP

PROGRAMS.—Paragraph (3) of section 1241(a) of the Food Security 

Act of 1985 (16 U.S.C. 3841(a)) is amended to read as follows: 

‘‘(3)(A) CONSERVATION SECURITY PROGRAM.—The conservation security program under subchapter A of chapter 2, using 

such sums as are necessary to administer contracts entered 

into before September 30, 2008. 

‘‘(B) CONSERVATION STEWARDSHIP PROGRAM.—The conservation stewardship program under subchapter B of chapter 2.’’. 

(d) FARMLAND PROTECTION PROGRAM.—Paragraph (4) of section 

1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 

amended to read as follows: 

‘‘(4) The farmland protection program under subchapter 

C of chapter 2, using, to the maximum extent practicable— ‘‘(A) $97,000,000 in fiscal year 2008; 

‘‘(B) $121,000,000 in fiscal year 2009; 

‘‘(C) $150,000,000 in fiscal year 2010; 

‘‘(D) $175,000,000 in fiscal year 2011; and 

‘‘(E) $200,000,000 in fiscal year 2012.’’. 

(e) GRASSLAND RESERVE PROGRAM.—Paragraph (5) of section 

1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 

amended to read as follows: 

‘‘(5) The grassland reserve program under subchapter D 

of chapter 2.’’. 

(f) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.—Paragraph (6) of section 1241(a) of the Food Security Act of 1985 (16 

U.S.C. 3841(a)) is amended to read as follows: 

‘‘(6) The environmental quality incentives program under 

chapter 4, using, to the maximum extent practicable— ‘‘(A) $1,200,000,000 in fiscal year 2008; 

‘‘(B) $1,337,000,000 in fiscal year 2009; 

‘‘(C) $1,450,000,000 in fiscal year 2010; 

‘‘(D) $1,588,000,000 in fiscal year 2011; and 

‘‘(E) $1,750,000,000 in fiscal year 2012.’’. 

(g) WILDLIFE HABITAT INCENTIVES PROGRAM.—Paragraph (7)(D) 

of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 

3841(a)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT CONSERVATION PROGRAMS. 

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) 

is amended by adding at the end the following new subsection: 

‘‘(e) ACCEPTANCE AND USE OF CONTRIBUTIONS.— 

‘‘(1) AUTHORITY TO ESTABLISH CONTRIBUTION ACCOUNTS.— 

Subject to paragraph (2), the Secretary may establish a subaccount for each conservation program administered by the 

Secretary under subtitle D to accept contributions of non-Federal funds to support the purposes of the program. 

‘‘(2) DEPOSIT AND USE OF CONTRIBUTIONS.—Contributions 

of non-Federal funds received for a conservation program 

administered by the Secretary under subtitle D shall be deposited into the sub-account established under this subsection 

for the program and shall be available to the Secretary, without 

further appropriation and until expended, to carry out the 

program.’’. 
H. R. 2419—151 

SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY. 

(a) REGIONAL EQUITY AND FLEXIBILITY.—Section 1241(d) of the 

Food Security Act of 1985 (16 U.S.C. 3841(d)) is amended— 

(1) by striking ‘‘Before April 1’’ and inserting the following: 

‘‘(1) PRIORITY FUNDING TO PROMOTE EQUITY.—Before April 

1’’; 

(2) by striking ‘‘$12,000,000’’ and inserting ‘‘$15,000,000’’; 

and 

(3) by adding at the end the following new paragraph: 

‘‘(2) SPECIFIC FUNDING ALLOCATIONS.—In determining the 

specific funding allocations for States under paragraph (1), 

the Secretary shall consider the respective demand in each 

State for each program covered by such paragraph.’’. 

(b) ALLOCATIONS REVIEW AND UPDATE.—Section 1241 of the 

Food Security Act of 1985 (16 U.S.C. 3841) is amended by inserting 

after subsection (e), as added by section 2702, the following new 

subsection: 

‘‘(f) ALLOCATIONS REVIEW AND UPDATE.— 

‘‘(1) REVIEW.—Not later than January 1, 2012, the Secretary shall conduct a review of conservation programs and 

authorities under this title that utilize allocation formulas to 

determine the sufficiency of the formulas in accounting for 

State-level economic factors, level of agricultural infrastructure, 

or related factors that affect conservation program costs. 

‘‘(2) UPDATE.—The Secretary shall improve conservation 

program allocation formulas as necessary to ensure that the 

formulas adequately reflect the costs of carrying out the conservation programs.’’. 

SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO 

IMPROVE THEIR ACCESS TO CONSERVATION PROGRAMS. 

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) 

is amended by inserting after subsection (f), as added by section 

2703(b), the following new subsection: 

‘‘(g) ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR CONSERVATION ACCESS.— 

‘‘(1) ASSISTANCE.—Of the funds made available for each 

of fiscal years 2009 through 2012 to carry out the environmental 

quality incentives program and the acres made available for 

each of such fiscal years to carry out the conservation stewardship program, the Secretary shall use, to the maximum extent 

practicable— 

‘‘(A) 5 percent to assist beginning farmers or ranchers; 

and 

‘‘(B) 5 percent to assist socially disadvantaged farmers 

or ranchers. 

‘‘(2) REPOOLING OF FUNDS.—In any fiscal year, amounts 

not obligated under paragraph (1) by a date determined by 

the Secretary shall be available for payments and technical 

assistance to all persons eligible for payments or technical 

assistance in that fiscal year under the environmental quality 

incentives program. 

‘‘(3) REPOOLING OF ACRES.—In any fiscal year, acres not 

obligated under paragraph (1) by a date determined by the 

Secretary shall be available for use in that fiscal year under 

the conservation stewardship program.’’. 
H. R. 2419—152 

SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE 

UNDER CONSERVATION PROGRAMS. 

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) 

is amended by inserting after subsection (g), as added by section 

2704, the following new subsection: 

‘‘(h) REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE.— 

Beginning in calendar year 2009, and each year thereafter, the 

Secretary shall submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a semiannual report containing 

statistics by State related to enrollments in conservation programs 

under this subtitle, as follows: 

‘‘(1) Payments made under the wetlands reserve program 

for easements valued at $250,000 or greater. 

‘‘(2) Payments made under the farmland protection program for easements in which the Federal share is $250,000 

or greater. 

‘‘(3) Payments made under the grassland reserve program 

valued at $250,000 or greater. 

‘‘(4) Payments made under the environmental quality incentives program for land determined to have special environmental significance pursuant to section 1240G(b). 

‘‘(5) Payments made under the agricultural water enhancement program subject to the waiver of adjusted gross income 

limitations pursuant to section 1240I(g). 

‘‘(6) Waivers granted by the Secretary under section 

1001D(b)(2) of this Act in order to protect environmentally 

sensitive land of special significance.’’. 

SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE. 

Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) 

is amended to read as follows: 

‘‘SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE. 

‘‘(a) DEFINITION OF ELIGIBLE PARTICIPANT.—In this section, the 

term ‘eligible participant’ means a producer, landowner, or entity 

that is participating in, or seeking to participate in, programs 

for which the producer, landowner, or entity is otherwise eligible 

to participate in under this title or the agricultural management 

assistance program under section 524 of the Federal Crop Insurance 

Act (7 U.S.C. 1524). 

‘‘(b) PURPOSE OF TECHNICAL ASSISTANCE.—The purpose of technical assistance authorized by this section is to provide eligible 

participants with consistent, science-based, site-specific practices 

designed to achieve conservation objectives on land active in agricultural, forestry, or related uses. 

‘‘(c) PROVISION OF TECHNICAL ASSISTANCE.—The Secretary shall 

provide technical assistance under this title to an eligible participant— 

‘‘(1) directly; 

‘‘(2) through an agreement with a third-party provider; 

or 

‘‘(3) at the option of the eligible participant, through a 

payment, as determined by the Secretary, to the eligible participant for an approved third-party provider, if available. 

‘‘(d) NON-FEDERAL ASSISTANCE.—The Secretary may request 

the services of, and enter into cooperative agreements or contracts 
H. R. 2419—153 

with, other agencies within the Department or non-Federal entities 

to assist the Secretary in providing technical assistance necessary 

to assist in implementing conservation programs under this title. 

‘‘(e) CERTIFICATION OF THIRD-PARTY PROVIDERS.— 

‘‘(1) PURPOSE.—The purpose of the third-party provider 

program is to increase the availability and range of technical 

expertise available to eligible participants to plan and implement conservation measures. 

‘‘(2) REGULATIONS.—Not later than 180 days after the date 

of the enactment of the Food, Conservation, and Energy Act 

of 2008, the Secretary shall promulgate such regulations as 

are necessary to carry out this section. 

‘‘(3) EXPERTISE.—In promulgating such regulations, the 

Secretary, to the maximum extent practicable, shall— 

‘‘(A) ensure that persons with expertise in the technical 

aspects of conservation planning, watershed planning, and 

environmental engineering, including commercial entities, 

nonprofit entities, State or local governments or agencies, 

and other Federal agencies, are eligible to become approved 

providers of the technical assistance; 

‘‘(B) provide national criteria for the certification of 

third party providers; and 

‘‘(C) approve any unique certification standards established at the State level. 

‘‘(f) ADMINISTRATION.— ‘‘(1) FUNDING.—Effective for fiscal year 2008 and each subsequent fiscal year, funds of the Commodity Credit Corporation 

made available to carry out technical assistance for each of 

the programs specified in section 1241 shall be available for 

the provision of technical assistance from third-party providers 

under this section. 

‘‘(2) TERM OF AGREEMENT.—An agreement with a thirdparty provider under this section shall have a term that— 

‘‘(A) at a minimum, is equal to the period beginning 

on the date on which the agreement is entered into and 

ending on the date that is 1 year after the date on which 

all activities performed pursuant to the agreement have 

been completed; 

‘‘(B) does not exceed 3 years; and 

‘‘(C) can be renewed, as determined by the Secretary. 

‘‘(3) REVIEW OF CERTIFICATION REQUIREMENTS.—Not later 

than 1 year after the date of enactment of the Food, Conservation, and Energy Act of 2008, the Secretary shall— 

‘‘(A) review certification requirements for third-party 

providers; and 

‘‘(B) make any adjustments considered necessary by 

the Secretary to improve participation. 

‘‘(4) ELIGIBLE ACTIVITIES.— ‘‘(A) INCLUSION OF ACTIVITIES.—The Secretary may 

include as activities eligible for payments to a third party 

provider— 

‘‘(i) technical services provided directly to eligible 

participants, such as conservation planning, education 

and outreach, and assistance with design and 

implementation of conservation practices; and 

‘‘(ii) related technical assistance services that accelerate conservation program delivery. 
H. R. 2419—154 

‘‘(B) EXCLUSIONS.—The Secretary shall not designate 

as an activity eligible for payments to a third party provider 

any service that is provided by a business, or equivalent, 

in connection with conducting business and that is customarily provided at no cost. 

‘‘(5) PAYMENT AMOUNTS.—The Secretary shall establish fair 

and reasonable amounts of payments for technical services 

provided by third-party providers. 

‘‘(g) AVAILABILITY OF TECHNICAL SERVICES.— 

‘‘(1) IN GENERAL.—In carrying out the programs under this 

title and the agricultural management assistance program 

under section 524 of the Federal Crop Insurance Act (7 U.S.C. 

1524), the Secretary shall make technical services available 

to all eligible participants who are installing an eligible practice. 

‘‘(2) TECHNICAL SERVICE CONTRACTS.—In any case in which 

financial assistance is not provided under a program referred 

to in paragraph (1), the Secretary may enter into a technical 

service contract with the eligible participant for the purposes 

of assisting in the planning, design, or installation of an eligible 

practice. 

‘‘(h) REVIEW OF CONSERVATION PRACTICE STANDARDS.— ‘‘(1) REVIEW REQUIRED.—The Secretary shall— 

‘‘(A) review conservation practice standards, including 

engineering design specifications, in effect on the date of 

the enactment of the Food, Conservation, and Energy Act 

of 2008; 

‘‘(B) ensure, to the maximum extent practicable, the 

completeness and relevance of the standards to local agricultural, forestry, and natural resource needs, including 

specialty crops, native and managed pollinators, bioenergy 

crop production, forestry, and such other needs as are 

determined by the Secretary; and 

‘‘(C) ensure that the standards provide for the optimal 

balance between meeting site-specific conservation needs 

and minimizing risks of design failure and associated costs 

of construction and installation. 

‘‘(2) CONSULTATION.—In conducting the review under paragraph (1), the Secretary shall consult with eligible participants, 

crop consultants, cooperative extension and land grant universities, nongovernmental organizations, and other qualified entities. 

‘‘(3) EXPEDITED REVISION OF STANDARDS.—If the Secretary 

determines under paragraph (1) that revisions to the conservation practice standards, including engineering design specifications, are necessary, the Secretary shall establish an administrative process for expediting the revisions. 

‘‘(i) ADDRESSING CONCERNS OF SPECIALITY CROP, ORGANIC, AND

PRECISION AGRICULTURE PRODUCERS.— 

‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) to the maximum extent practicable, fully incorporate specialty crop production, organic crop production, 

and precision agriculture into the conservation practice 

standards; and 

‘‘(B) provide for the appropriate range of conservation 

practices and resource mitigation measures available to 

producers involved with organic or specialty crop production or precision agriculture. 
H. R. 2419—155 

‘‘(2) AVAILABILITY OF ADEQUATE TECHNICAL ASSISTANCE.— 

‘‘(A) IN GENERAL.—The Secretary shall ensure that adequate technical assistance is available for the implementation of conservation practices by producers involved with 

organic, specialty crop production, or precision agriculture 

through Federal conservation programs. 

‘‘(B) REQUIREMENTS.—In carrying out subparagraph 

(A), the Secretary shall develop— 

‘‘(i) programs that meet specific needs of producers 

involved with organic, specialty crop production or 

precision agriculture through cooperative agreements 

with other agencies and nongovernmental organizations; and 

‘‘(ii) program specifications that allow for innovative approaches to engage local resources in providing 

technical assistance for planning and implementation 

of conservation practices.’’. 

SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE. 

(a) TRANSFER OF EXISTING PROVISIONS.—Subsections (a), (c), 

and (d) of section 1243 of the Food Security Act of 1985 (16 U.S.C. 

3843) are— 

(1) redesignated as subsections (c), (d), and (e), respectively; 

and 

(2) transferred to appear at the end of section 1244 of 

such Act (16 U.S.C. 3844). 

(b) ESTABLISHMENT OF PARTNERSHIP INITIATIVE.—Section 1243 

of the Food Security Act of 1985 (16 U.S.C. 3843), as amended 

by subsection (a), is amended to read as follows: 

‘‘SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE. 

‘‘(a) ESTABLISHMENT OF INITIATIVE.—The Secretary shall establish a cooperative conservation partnership initiative (in this section 

referred to as the ‘Initiative’) to work with eligible partners to 

provide assistance to producers enrolled in a program described 

in subsection (c)(1) that will enhance conservation outcomes on 

agricultural and nonindustrial private forest land. 

‘‘(b) PURPOSES.—The purposes of a partnership entered into 

under the Initiative shall be— 

‘‘(1) to address conservation priorities involving agriculture 

and nonindustrial private forest land on a local, State, multiState, or regional level; 

‘‘(2) to encourage producers to cooperate in meeting 

applicable Federal, State, and local regulatory requirements 

related to production involving agriculture and nonindustrial 

private forest land; 

‘‘(3) to encourage producers to cooperate in the installation 

and maintenance of conservation practices that affect multiple 

agricultural or nonindustrial private forest operations; or 

‘‘(4) to promote the development and demonstration of 

innovative conservation practices and delivery methods, 

including those for specialty crop and organic production and 

precision agriculture producers. 

‘‘(c) INITIATIVE PROGRAMS.— ‘‘(1) COVERED PROGRAMS.—Except as provided in paragraph 

(2), the Initiative applies to all conservation programs under 

subtitle D. 
H. R. 2419—156 

‘‘(2) EXCLUDED PROGRAMS.—The Initiative shall not include 

the following programs: 

‘‘(A) Conservation reserve program. 

‘‘(B) Wetlands reserve program. 

‘‘(C) Farmland protection program 

‘‘(D) Grassland reserve program. 

‘‘(d) ELIGIBLE PARTNERS.—The Secretary may enter into a partnership under the Initiative with one or more of the following: 

‘‘(1) States and local governments. 

‘‘(2) Indian tribes. 

‘‘(3) Producer associations. 

‘‘(4) Farmer cooperatives. 

‘‘(5) Institutions of higher education. 

‘‘(6) Nongovernmental organizations with a history of 

working cooperatively with producers to effectively address conservation priorities related to agricultural production and nonindustrial private forest land. 

‘‘(e) IMPLEMENTATION AGREEMENTS.—The Secretary shall carry 

out the Initiative— 

‘‘(1) by selecting, through a competitive process, eligible 

partners from among applications submitted under subsection 

(f); and 

‘‘(2) by entering into multi-year agreements with eligible 

partners so selected for a period not to exceed 5 years. 

‘‘(f) APPLICATIONS.— 

‘‘(1) REQUIRED INFORMATION.—An application to enter into 

a partnership agreement under the Initiative shall include the 

following: 

‘‘(A) A description of the area covered by the agreement, 

conservation priorities in the area, conservation objectives 

to be achieved, and the expected level of participation by 

agricultural producers and nonindustrial private forest 

landowners. 

‘‘(B) A description of the partner, or partners, collaborating to achieve the objectives of the agreement, and the 

roles, responsibilities, and capabilities of the partner. 

‘‘(C) A description of the resources that are requested 

from the Secretary, and the non-Federal resources that 

will be leveraged by the Federal contribution. 

‘‘(D) A description of the plan for monitoring, evaluating, and reporting on progress made towards achieving 

the objectives of the agreement. 

‘‘(E) Such other information that may be required by 

the Secretary. 

‘‘(2) PRIORITIES.—The Secretary shall give priority to 

applications for agreements that— 

‘‘(A) have a high percentage of producers involved and 

working agricultural or nonindustrial private forest land 

included in the area covered by the agreement; 

‘‘(B) significantly leverage non-Federal financial and 

technical resources and coordinate with other local, State, 

or Federal efforts; 

‘‘(C) deliver high percentages of applied conservation 

to address water quality, water conservation, or State, 

regional, or national conservation initiatives; 
H. R. 2419—157 

‘‘(D) provide innovation in conservation methods and 

delivery, including outcome-based performance measures 

and methods; or 

‘‘(E) meet other factors, as determined by the Secretary. 

‘‘(g) RELATIONSHIP TO COVERED PROGRAMS.— 

‘‘(1) COMPLIANCE WITH PROGRAM RULES.—Except as provided in paragraph (2), the Secretary shall ensure that 

resources made available under the Initiative are delivered 

in accordance with the applicable rules of programs specified 

in subsection (c)(1) through normal program mechanisms 

relating to program functions, including rules governing 

appeals, payment limitations, and conservation compliance. 

‘‘(2) ADJUSTMENT.—The Secretary may adjust the elements 

of any program specified in subsection (c)(1)— 

‘‘(A) to better reflect unique local circumstances and 

purposes if the Secretary determines such adjustments are 

necessary to achieve the purposes of the Initiative; and 

‘‘(B) to provide preferential enrollment to producers 

who are eligible for the applicable program and to participate in the Initiative. 

‘‘(h) TECHNICAL AND FINANCIAL ASSISTANCE.—The Secretary 

shall provide appropriate technical and financial assistance to producers participating in the Initiative in an amount determined 

to be necessary to achieve the purposes of the Initiative. 

‘‘(i) FUNDING.— 

‘‘(1) RESERVATION.—Of the funds and acres made available 

for each of fiscal years 2009 through 2012 to implement the 

programs described in subsection (c)(1), the Secretary shall 

reserve 6 percent of the funds and acres to ensure an adequate 

source of funds and acres for the Initiative. 

‘‘(2) ALLOCATION REQUIREMENTS.—Of the funds and acres 

reserved for the Initiative for a fiscal year, the Secretary shall 

allocate— 

‘‘(A) 90 percent of the funds and acres to projects 

based on the direction of State conservationists, with the 

advice of State technical committees; and 

‘‘(B) 10 percent of the funds and acres to projects 

based on a national competitive process established by 

the Secretary. 

‘‘(3) UNUSED FUNDING.—Any funds and acres reserved for 

a fiscal year under paragraph (1) that are not obligated by 

April 1 of that fiscal year may be used to carry out other 

activities under the program that is the source of the funds 

or acres during the remainder of that fiscal year. 

‘‘(4) ADMINISTRATIVE COSTS OF PARTNERS.—Overhead or 

administrative costs of partners may not be covered by funds 

provided through the Initiative.’’. 

SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 

PROGRAMS. 

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844), 

as amended by section 2707, is further amended— 

(1) by striking subsection (a) and inserting the following 

new subsection: 

‘‘(a) INCENTIVES FOR CERTAIN FARMERS AND RANCHERS AND

INDIAN TRIBES.— 
H. R. 2419—158 

‘‘(1) INCENTIVES AUTHORIZED.—In carrying out any conservation program administered by the Secretary, the Secretary 

may provide to a person or entity specified in paragraph (2) 

incentives to participate in the conservation program— 

‘‘(A) to foster new farming and ranching opportunities; 

and 

‘‘(B) to enhance long-term environmental goals. 

‘‘(2) COVERED PERSONS.—Incentives authorized by paragraph (1) may be provided to the following: 

‘‘(A) Beginning farmers or ranchers. 

‘‘(B) Socially disadvantaged farmers or ranchers. 

‘‘(C) Limited resource farmers or ranchers. 

‘‘(D) Indian tribes.’’; and 

(2) by adding at the end the following new subsections: 

‘‘(f) ACREAGE LIMITATIONS.— ‘‘(1) LIMITATIONS.— ‘‘(A) ENROLLMENTS.—The Secretary shall not enroll 

more than 25 percent of the cropland in any county in 

the programs administered under subchapters B and C 

of chapter 1 of subtitle D. 

‘‘(B) EASEMENTS.—Not more than 10 percent of the 

cropland in a country may be subject to an easement 

acquired under subchapter C of chapter 1 of subtitle D. 

‘‘(2) EXCEPTIONS.—The Secretary may exceed the limitation 

in paragraph (1)(A), if the Secretary determines that— 

‘‘(A) the action would not adversely affect the local 

economy of a county; and 

‘‘(B) operators in the county are having difficulties 

complying with conservation plans implemented under section 1212. 

‘‘(3) WAIVER TO EXCLUDE CERTAIN ACREAGE.—The Secretary 

may grant a waiver to exclude acreage enrolled under subsection (c)(2)(B) or (f)(4) of section 1234 from the limitations 

in paragraph (1)(A) with the concurrence of the county government of the county involved. 

‘‘(4) SHELTERBELTS AND WINDBREAKS.—The limitations 

established under paragraph (1) shall not apply to cropland 

that is subject to an easement under subchapter C of chapter 

1 that is used for the establishment of shelterbelts and 

windbreaks. 

‘‘(g) COMPLIANCE AND PERFORMANCE.—For each conservation 

program under subtitle D, the Secretary shall develop procedures— 

‘‘(1) to monitor compliance with program requirements; 

‘‘(2) to measure program performance; 

‘‘(3) to demonstrate whether the long-term conservation 

benefits of the program are being achieved; 

‘‘(4) to track participation by crop and livestock types; and 

‘‘(5) to coordinate activities described in this subsection 

with the national conservation program authorized under section 5 of the Soil and Water Resources Conservation Act of 

1977 (16 U.S.C. 2004). 

‘‘(h) ENCOURAGEMENT OF POLLINATOR HABITAT DEVELOPMENT

AND PROTECTION.—In carrying out any conservation program 

administered by the Secretary, the Secretary may, as appropriate, 

encourage— 

‘‘(1) the development of habitat for native and managed 

pollinators; and 
H. R. 2419—159 

‘‘(2) the use of conservation practices that benefit native 

and managed pollinators. 

‘‘(i) STREAMLINED APPLICATION PROCESS.— ‘‘(1) IN GENERAL.—In carrying out each conservation program under this title, the Secretary shall ensure that the 

application process used by producers and landowners is 

streamlined to minimize complexity and eliminate redundancy. 

‘‘(2) REVIEW AND STREAMLINING.— ‘‘(A) REVIEW.—The Secretary shall carry out a review 

of the application forms and processes for each conservation 

program covered by this subsection. 

‘‘(B) STREAMLINING.—On completion of the review the 

Secretary shall revise application forms and processes, as 

necessary, to ensure that— 

‘‘(i) all required application information is essential 

for the efficient, effective, and accountable implementation of conservation programs; 

‘‘(ii) conservation program applicants are not 

required to provide information that is readily available to the Secretary through existing information systems of the Department of Agriculture; 

‘‘(iii) information provided by the applicant is managed and delivered efficiently for use in all stages 

of the application process, or for multiple applications; 

and 

‘‘(iv) information technology is used effectively to 

minimize data and information input requirements. 

‘‘(3) IMPLEMENTATION AND NOTIFICATION.—Not later than 

1 year after the date of enactment of the Food, Conservation, 

and Energy Act of 2008, the Secretary shall submit to Congress 

a written notification of completion of the requirements of this 

subsection.’’. 

SEC. 2709. ENVIRONMENTAL SERVICES MARKETS. 

Subtitle E of title XII of the Food Security Act of 1985 is 

amended by inserting after section 1244 (16 U.S.C. 3844) the following new section: 

‘‘SEC. 1245. ENVIRONMENTAL SERVICES MARKETS. 

‘‘(a) TECHNICAL GUIDELINES REQUIRED.—The Secretary shall 

establish technical guidelines that outline science-based methods 

to measure the environmental services benefits from conservation 

and land management activities in order to facilitate the participation of farmers, ranchers, and forest landowners in emerging 

environmental services markets. The Secretary shall give priority 

to the establishment of guidelines related to farmer, rancher, and 

forest landowner participation in carbon markets. 

‘‘(b) ESTABLISHMENT.—The Secretary shall establish guidelines 

under subsection (a) for use in developing the following: 

‘‘(1) A procedure to measure environmental services benefits. 

‘‘(2) A protocol to report environmental services benefits. 

‘‘(3) A registry to collect, record and maintain the benefits 

measured. 

‘‘(c) VERIFICATION REQUIREMENTS.— 

‘‘(1) VERIFICATION OF REPORTS.—The Secretary shall establish guidelines for a process to verify that a farmer, rancher, 

or forest landowner who reports an environmental services 
H. R. 2419—160 

benefit pursuant to the protocol required by paragraph (2) 

of subsection (b) for inclusion in the registry required by paragraph (3) of such subsection has implemented the conservation 

or land management activity covered by the report. 

‘‘(2) ROLE OF THIRD PARTIES.—In establishing the 

verification guidelines required by paragraph (1), the Secretary 

shall consider the role of third-parties in conducting independent verification of benefits produced for environmental 

services markets and other functions, as determined by the 

Secretary. 

‘‘(d) USE OF EXISTING INFORMATION.—In carrying out subsection 

(b), the Secretary shall build on activities or information in existence 

on the date of the enactment of the Food, Conservation, and Energy 

Act of 2008 regarding environmental services markets. 

‘‘(e) CONSULTATION.—In carrying out this section, the Secretary 

shall consult with the following: 

‘‘(1) Federal and State government agencies. 

‘‘(2) Nongovernmental interests including— 

‘‘(A) farm, ranch, and forestry producers; 

‘‘(B) financial institutions involved in environmental 

services trading; 

‘‘(C) institutions of higher education with relevant 

expertise or experience; 

‘‘(D) nongovernmental organizations with relevant 

expertise or experience; and 

‘‘(E) private sector representatives with relevant expertise or experience. 

‘‘(3) Other interested persons, as determined by the Secretary.’’. 

SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES 

PROGRAM. 

Subtitle F of title XII of the Food Security Act of 1985 is 

amended by inserting after section 1251 (16 U.S.C. 2005a) the 

following new section: 

‘‘SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES 

PROGRAM. 

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish a conservation experienced services program (in this section 

referred to as the ‘ACES Program’) for the purpose of utilizing 

the talents of individuals who are age 55 or older, but who are 

not employees of the Department of Agriculture or a State agriculture department, to provide technical services in support of the 

conservation-related programs and authorities carried out by the 

Secretary. Such technical services may include conservation planning assistance, technical consultation, and assistance with design 

and implementation of conservation practices. 

‘‘(b) PROGRAM AGREEMENTS.— ‘‘(1) RELATION TO OLDER AMERICAN COMMUNITY SERVICE

EMPLOYMENT PROGRAM.—Notwithstanding any other provision 

of law relating to Federal grants, cooperative agreements, or 

contracts, to carry out the ACES program during a fiscal year, 

the Secretary may enter into agreements with nonprofit private 

agencies and organizations eligible to receive grants for that 

fiscal year under the Community Service Senior Opportunities 

Act (42 U.S.C. 3056 et seq.) to secure participants for the 
H. R. 2419—161 

ACES program who will provide technical services under the 

ACES program. 

‘‘(2) REQUIRED DETERMINATION.—Before entering into an 

agreement under paragraph (1), the Secretary shall ensure 

that the agreement would not— 

‘‘(A) result in the displacement of individuals employed 

by the Department, including partial displacement through 

reduction of non-overtime hours, wages, or employment 

benefits; 

‘‘(B) result in the use of an individual under the ACES 

program for a job or function in a case in which a Federal 

employee is in a layoff status from the same or a substantially-equivalent job or function with the Department; or 

‘‘(C) affect existing contracts for services. 

‘‘(c) FUNDING SOURCE.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

the Secretary may carry out the ACES program using funds 

made available to carry out each program under this title. 

‘‘(2) EXCLUSIONS.—Funds made available to carry out the 

following programs may not be used to carry out the ACES 

program: 

‘‘(A) The conservation reserve program. 

‘‘(B) The wetlands reserve program. 

‘‘(C) The grassland reserve program. 

‘‘(D) The conservation stewardship program. 

‘‘(d) LIABILITY.—An individual providing technical services 

under the ACES program is deemed to be an employee of the 

United States Government for purposes of chapter 171 of title 

28, United States Code, if the individual— 

‘‘(1) is providing technical services pursuant to an agreement entered into under subsection (b); and 

‘‘(2) is acting within the scope of the agreement.’’. 

SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND 

THEIR RESPONSIBILITIES. 

Subtitle G of title XII of the Farm Security Act of 1985 (16 

U.S.C. 3861, 3862) is amended to read as follows: 

‘‘Subtitle G—State Technical Committees 

‘‘SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a technical 

committee in each State to assist the Secretary in the considerations 

relating to implementation and technical aspects of the conservation 

programs under this title. 

‘‘(b) STANDARDS.—Not later than 180 days after the date of 

enactment of the Food, Conservation, and Energy Act of 2008, 

the Secretary shall develop— 

‘‘(1) standard operating procedures to standardize the operations of State technical committees; and 

‘‘(2) standards to be used by State technical committees 

in the development of technical guidelines under section 1262(b) 

for the implementation of the conservation provisions of this 

title. 

‘‘(c) COMPOSITION.—Each State technical committee shall be 

composed of agricultural producers and other professionals that 
H. R. 2419—162 

represent a variety of disciplines in the soil, water, wetland, and 

wildlife sciences. The technical committee for a State shall include 

representatives from among the following: 

‘‘(1) The Natural Resources Conservation Service. 

‘‘(2) The Farm Service Agency. 

‘‘(3) The Forest Service. 

‘‘(4) The National Institute of Food and Agriculture. 

‘‘(5) The State fish and wildlife agency. 

‘‘(6) The State forester or equivalent State official. 

‘‘(7) The State water resources agency. 

‘‘(8) The State department of agriculture. 

‘‘(9) The State association of soil and water conservation 

districts. 

‘‘(10) Agricultural producers representing the variety of 

crops and livestock or poultry raised within the State. 

‘‘(11) Owners of nonindustrial private forest land. 

‘‘(12) Nonprofit organizations within the meaning of section 

501(c)(3) of the Internal Revenue Code of 1986 with demonstrable conservation expertise and experience working with 

agriculture producers in the State. 

‘‘(13) Agribusiness. 

‘‘SEC. 1262. RESPONSIBILITIES. 

‘‘(a) IN GENERAL.—Each State technical committee established 

under section 1261 shall meet regularly to provide information, 

analysis, and recommendations to appropriate officials of the 

Department of Agriculture who are charged with implementing 

the conservation provisions of this title. 

‘‘(b) PUBLIC NOTICE AND ATTENDANCE.—Each State technical 

committee shall provide public notice of, and permit public attendance at, meetings considering issues of concern related to carrying 

out this title. 

‘‘(c) ROLE.— 

‘‘(1) IN GENERAL.—The role of State technical committees 

is advisory in nature, and such committees shall have no 

implementation or enforcement authority. However, the Secretary shall give strong consideration to the recommendations 

of such committees in administering the programs under this 

title. 

‘‘(2) ADVISORY ROLE IN ESTABLISHING PROGRAM PRIORITIES

AND CRITERIA.—Each State technical committee shall advise 

the Secretary in establishing priorities and criteria for the 

programs in this title, including the review of whether local 

working groups are addressing those priorities. 

‘‘(d) FACA REQUIREMENTS.— 

‘‘(1) EXEMPTION.—Each State technical committee shall be 

exempt from the Federal Advisory Committee Act (5 U.S.C. 

App.). 

‘‘(2) LOCAL WORKING GROUPS.—For purposes of the Federal 

Advisory Committee Act (5 U.S.C. App.), any local working 

group established under this subtitle shall be considered to 

be a subcommittee of the applicable State technical committee.’’. 
H. R. 2419—163 

Subtitle I—Conservation Programs Under 

Other Laws 

SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM. 

(a) ELIGIBLE STATES.—Section 524(b)(1) of the Federal Crop 

Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting 

‘‘Hawaii,’’ after ‘‘Delaware,’’. 

(b) FUNDING.—Section 524(b)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended— 

(1) in clause (i), by striking ‘‘Except as provided in clauses 

(ii) and (iii)’’ and inserting ‘‘Except as provided in clause (ii)’’; 

and 

(2) by striking clauses (ii) and (iii) and inserting the following new clause: 

‘‘(ii) EXCEPTION FOR FISCAL YEARS 2008 THROUGH

2012.—For each of fiscal years 2008 through 2012, the 

Commodity Credit Corporation shall make available 

to carry out this subsection $15,000,000.’’. 

(c) CERTAIN USES.—Section 524(b)(4) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)) is amended by adding at the end 

the following new subparagraph: 

‘‘(C) CERTAIN USES.—Of the amounts made available 

to carry out this subsection for a fiscal year, the Commodity 

Credit Corporation shall use not less than— 

‘‘(i) 50 percent to carry out subparagraphs (A), 

(B), and (C) of paragraph (2) through the Natural 

Resources Conservation Service; 

‘‘(ii) 10 percent to provide organic certification cost 

share assistance through the Agricultural Marketing 

Service; and 

‘‘(iii) 40 percent to conduct activities to carry out 

subparagraph (F) of paragraph (2) through the Risk 

Management Agency.’’. 

SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND 

DOMESTIC ALLOTMENT ACT. 

(a) PREVENTION OF SOIL EROSION.— 

(1) IN GENERAL.—The first section of the Soil Conservation 

and Domestic Allotment Act (16 U.S.C. 590a) is amended— 

(A) by striking ‘‘That it’’ and inserting the following: 

‘‘SECTION 1. PURPOSE. 

‘‘It’’; and 

(B) in the matter preceding paragraph (1), by striking 

‘‘and thereby to preserve natural resources,’’ and inserting 

‘‘to preserve soil, water, and related resources, promote 

soil and water quality,’’. 

(2) POLICIES AND PURPOSES.—Section 7(a)(1) of the Soil 

Conservation and Domestic Allotment Act (16 U.S.C. 590g(a)(1)) 

is amended by striking ‘‘fertility’’ and inserting ‘‘and water 

quality and related resources’’. 

(b) DEFINITIONS.—Section 10 of the Soil Conservation and 

Domestic Allotment Act (16 U.S.C. 590j) is amended to read as 

follows: 
H. R. 2419—164 

‘‘SEC. 10. DEFINITIONS. 

‘‘In this Act: 

‘‘(1) AGRICULTURAL COMMODITY.—The term ‘agricultural 

commodity’ means— 

‘‘(A) an agricultural commodity; and 

‘‘(B) any regional or market classification, type, or 

grade of an agricultural commodity. 

‘‘(2) TECHNICAL ASSISTANCE.— 

‘‘(A) IN GENERAL.—The term ‘technical assistance’ 

means technical expertise, information, and tools necessary 

for the conservation of natural resources on land active 

in agricultural, forestry, or related uses. 

‘‘(B) INCLUSIONS.—The term ‘technical assistance’ 

includes— 

‘‘(i) technical services provided directly to farmers, 

ranchers, and other eligible entities, such as conservation planning, technical consultation, and assistance 

with design and implementation of conservation practices; and 

‘‘(ii) technical infrastructure, including activities, 

processes, tools, and agency functions needed to support delivery of technical services, such as technical 

standards, resource inventories, training, data, technology, monitoring, and effects analyses.’’. 

SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM. 

(a) AVAILABILITY OF FUNDS.—Section 14(h)(1) of the Watershed 

Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is 

amended by adding at the end the following new subparagraph: ‘‘(G) $100,000,000 for fiscal year 2009, to be available 

until expended.’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 14(h)(2)(E) of 

the Watershed Protection and Flood Prevention Act (16 U.S.C. 

1012(h)(2)(E)) is amended by striking ‘‘fiscal year 2007’’ and 

inserting ‘‘each of fiscal years 2008 through 2012’’. 

SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES CONSERVATION ACT OF 1977. 

(a) CONGRESSIONAL FINDINGS.—Section 2 of the Soil and Water 

Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended— 

(1) in paragraph (2), by striking ‘‘base, of the’’ and inserting 

‘‘base of the’’; and 

(2) in paragraph (3), by striking ‘‘(3)’’ and all that follows 

through ‘‘Since individual’’ and inserting the following: 

‘‘(3) Appraisal and inventory of resources, assessment and 

inventory of conservation needs, evaluation of the effects of 

conservation practices, and analyses of alternative approaches 

to existing conservation programs are basic to effective soil, 

water, and related natural resource conservation. 

‘‘(4) Since individual’’. 

(b) CONTINUING APPRAISAL OF SOIL, WATER, AND RELATED

RESOURCES.—Section 5 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2004) is amended— 

(1) in subsection (a)— 

(A) in paragraph (5), by striking ‘‘and’’ at the end; 

(B) in paragraph (6), by striking the period at the 

end and inserting ‘‘; and’’; and 
H. R. 2419—165 

(C) by adding at the end the following new paragraph: 

‘‘(7) data on conservation plans, conservation practices 

planned or implemented, environmental outcomes, economic 

costs, and related matters under conservation programs 

administered by the Secretary.’’; 

(2) by redesignating subsection (d) as subsection (e); 

(3) by inserting after subsection (c) the following new subsection: 

‘‘(d) EVALUATION OF APPRAISAL.—In conducting the appraisal 

described in subsection (a), the Secretary shall concurrently solicit 

and evaluate recommendations for improving the appraisal, 

including the content, scope, process, participation in, and other 

elements of the appraisal, as determined by the Secretary.’’; and 

(4) in subsection (e), as redesignated by paragraph (2), 

by striking the first sentence and inserting the following: ‘‘The 

Secretary shall conduct comprehensive appraisals under this 

section, to be completed by December 31, 2010, and December 

31, 2015.’’. 

(c) SOIL AND WATER CONSERVATION PROGRAM.—Section 6 of 

the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 

2005) is amended— 

(1) by redesignating subsection (b) as subsection (d); 

(2) by inserting after subsection (a) the following new subsections: 

‘‘(b) EVALUATION OF EXISTING CONSERVATION PROGRAMS.—In 

evaluating existing conservation programs, the Secretary shall 

emphasize demonstration, innovation, and monitoring of specific 

program components in order to encourage further development 

and adoption of practices and performance-based standards. 

‘‘(c) IMPROVEMENT TO PROGRAM.—In developing a national soil 

and water conservation program under subsection (a), the Secretary 

shall solicit and evaluate recommendations for improving the program, including the content, scope, process, participation in, and 

other elements of the program, as determined by the Secretary.’’; 

and 

(3) in subsection (d), as redesignated by paragraph (1), 

by striking ‘‘December 31, 1979’’ and all that follows through 

‘‘December 31, 2007’’ and inserting ‘‘December 31, 2011, and 

December 31, 2016’’. 

(d) REPORTS TO CONGRESS.—Section 7 of the Soil and Water 

Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended 

to read as follows: 

‘‘SEC. 7. REPORTS TO CONGRESS. 

‘‘(a) APPRAISAL.—Not later than the date on which Congress 

convenes in 2011 and 2016, the President shall transmit to the 

Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the Senate 

the appraisal developed under section 5 and completed before the 

end of the previous year. 

‘‘(b) PROGRAM AND STATEMENT OF POLICY.—Not later than the 

date on which Congress convenes in 2012 and 2017, the President 

shall transmit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and 

Forestry of the Senate— 
H. R. 2419—166 

‘‘(1) the initial program or updated program developed 

under section 6 and completed before the end of the previous 

year; 

‘‘(2) a detailed statement of policy regarding soil and water 

conservation activities of the Department of Agriculture; and 

‘‘(3) a special evaluation of the status, conditions, and 

trends of soil quality on cropland in the United States that 

addresses the challenges and opportunities for reducing soil 

erosion to tolerance levels. 

‘‘(c) IMPROVEMENTS TO APPRAISAL AND PROGRAM.—Not later 

than the date on which Congress convenes in 2012, the Secretary 

shall submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and 

Forestry of the Senate a report describing the plans of the Department of Agriculture for improving the resource appraisal and 

national conservation program required under this Act, based on 

the recommendations received under sections 5(d) and 6(c).’’. 

(e) TERMINATION OF PROGRAM.—Section 10 of the Soil and 

Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is 

amended by striking ‘‘2008’’ and inserting ‘‘2018’’. 

SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM. 

(a) LOCALLY LED PLANNING PROCESS.—Section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451) is amended— 

(1) in paragraph (1), in the matter preceding subparagraph 

(A), by striking ‘‘planning process’’ and inserting ‘‘locally led 

planning process’’; 

(2) by redesignating paragraphs (8) and (9) as paragraphs 

(9) and (8), respectively, and moving those paragraphs so as 

to appear in numerical order; 

(3) in paragraph (8) (as so redesignated)— 

(A) by striking ‘‘PLANNING PROCESS’’ and inserting 

‘‘LOCALLY LED PLANNING PROCESS’’; and 

(B) by striking ‘‘council’’ and inserting ‘‘locally led 

council’’. 

(b) AUTHORIZED TECHNICAL ASSISTANCE.—Section 1528(13) of 

the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is 

amended by striking subparagraphs (C) and (D) and inserting the 

following new subparagraphs: 

‘‘(C) providing assistance for the implementation of 

area plans and projects; and 

‘‘(D) providing services that involve the resources of 

Department of Agriculture programs in a local community, 

as defined in the locally led planning process.’’. 

(c) IMPROVED PROVISION OF TECHNICAL ASSISTANCE.—Section 

1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454) 

is amended— 

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘In carrying’’; 

and 

(2) by adding at the end the following new subsection: 

‘‘(b) COORDINATOR.— 

‘‘(1) IN GENERAL.—To improve the provision of technical 

assistance to councils under this subtitle, the Secretary shall 

designate for each council an individual to be the coordinator 

for the council. 
H. R. 2419—167 

‘‘(2) RESPONSIBILITY.—A coordinator for a council shall be 

directly responsible for the provision of technical assistance 

to the council.’’. 

(d) PROGRAM EVALUATION.—Section 1534 of the Agriculture 

and Food Act of 1981 (16 U.S.C. 3457) is repealed. 

SEC. 2806. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL 

ACTIVITIES UPSTREAM OF IMPERIAL DAM. 

(a) IN GENERAL.—Section 202(a) of the Colorado River Basin 

Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding 

at the end the following new paragraph: 

‘‘(7) BASIN STATES PROGRAM.— 

‘‘(A) IN GENERAL.—A Basin States Program that the 

Secretary, acting through the Bureau of Reclamation, shall 

implement to carry out salinity control activities in the 

Colorado River Basin using funds made available under 

section 205(f). 

‘‘(B) ASSISTANCE.—The Secretary, in consultation with 

the Colorado River Basin Salinity Control Advisory Council, 

shall carry out this paragraph using funds described in 

subparagraph (A) directly or by providing grants, grant 

commitments, or advance funds to Federal or non-Federal 

entities under such terms and conditions as the Secretary 

may require. 

‘‘(C) ACTIVITIES.—Funds described in subparagraph (A) 

shall be used to carry out, as determined by the Secretary— 

‘‘(i) cost-effective measures and associated works 

to reduce salinity from saline springs, leaking wells, 

irrigation sources, industrial sources, erosion of public 

and private land, or other sources; 

‘‘(ii) operation and maintenance of salinity control 

features constructed under the Colorado River Basin 

salinity control program; and 

‘‘(iii) studies, planning, and administration of 

salinity control activities. 

‘‘(D) REPORT.— 

‘‘(i) IN GENERAL.—Not later than 30 days before 

implementing the program established under this paragraph, the Secretary shall submit to the appropriate 

committees of Congress a planning report that 

describes the proposed implementation of the program. 

‘‘(ii) IMPLEMENTATION.—The Secretary may not 

expend funds to implement the program established 

under this paragraph before the expiration of the 30- 

day period beginning on the date on which the Secretary submits the report, or any revision to the report, 

under clause (i).’’. 

(b) CONFORMING AMENDMENTS.— (1) Section 202 of the Colorado River Basin Salinity Control 

Act (43 U.S.C. 1592) is amended— 

(A) in subsection (a), in the matter preceding paragraph 

(1), by striking ‘‘program’’ and inserting ‘‘programs’’; and 

(B) in subsection (b)(4)— 

(i) by striking ‘‘program’’ and inserting ‘‘programs’’; 

and 

(ii) by striking ‘‘and (6)’’ and inserting ‘‘(6), and 

(7)’’. 
H. R. 2419—168 

(2) Section 205 of the Colorado River Basin Salinity Control 

Act (43 U.S.C. 1595) is amended by striking subsection (f) 

and inserting the following new subsection: 

‘‘(f) UP-FRONT COST SHARE.— 

‘‘(1) IN GENERAL.—Effective beginning on the date of enactment of this paragraph, subject to paragraph (3), the cost 

share obligations required by this section shall be met through 

an up-front cost share from the Basin Funds, in the same 

proportions as the cost allocations required under subsection 

(a), as provided in paragraph (2). 

‘‘(2) BASIN STATES PROGRAM.—The Secretary shall expend 

the required cost share funds described in paragraph (1) 

through the Basin States Program for salinity control activities 

established under section 202(a)(7). 

‘‘(3) EXISTING SALINITY CONTROL ACTIVITIES.—The cost 

share contribution required by this section shall continue to 

be met through repayment in a manner consistent with this 

section for all salinity control activities for which repayment 

was commenced prior to the date of enactment of this paragraph.’’. 

SEC. 2807. DESERT TERMINAL LAKES. 

Section 2507 of the Farm Security and Rural Investment Act 

of 2002 (43 U.S.C. 2211 note; Public Law 107–171) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘(a)’’ and all that follows through 

‘‘$200,000,000’’ and inserting ‘‘(a) TRANSFER.—Subject to 

subsection (b) and paragraph (1) of section 207(a) of Public 

Law 108–7 (117 Stat. 146), notwithstanding paragraph (3) 

of that section, on the date of enactment of the Food, 

Conservation, and Energy Act of 2008, the Secretary of 

Agriculture shall transfer $175,000,000’’; and 

(B) by striking the quotation marks at the beginning 

of paragraphs (1) and (2); and 

(2) by striking subsection (b) and inserting the following 

new subsection: 

‘‘(b) PERMITTED USES.—In any case in which there are willing 

sellers, the funds described in subsection (a) may be used— 

‘‘(1) to lease water; or 

‘‘(2) to purchase land, water appurtenant to the land, and 

related interests in the Walker River Basin in accordance with 

section 208(a)(1)(A) of the Energy and Water Development 

Appropriations Act, 2006 (Public Law 109–103; 119 Stat. 

2268).’’. 

Subtitle J—Miscellaneous Conservation 

Provisions 

SEC. 2901. HIGH PLAINS WATER STUDY. 

Notwithstanding any other provision of this Act, no person 

shall become ineligible for any program benefits under this Act 

or an amendment made by this Act solely as a result of participating 

in a 1-time study of recharge potential for the Ogallala Aquifer 

in the High Plains of the State of Texas. 
H. R. 2419—169 

SEC. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT 

BELTSVILLE, MARYLAND, IN HONOR OF NORMAN A. BERG. 

The National Plant Materials Center at Beltsville, Maryland, 

referenced in section 613.5(a) of title 7, Code of Federal Regulations, 

shall be known and designated as the ‘‘Norman A. Berg National 

Plant Materials Center’’. Any reference in a law, map, regulation, 

document, paper, or other record of the United States to such 

National Plant Materials Center shall be deemed to be a reference 

to the Norman A. Berg National Plant Materials Center. 

SEC. 2903. TRANSITION. 

(a) CONTINUATION OF PROGRAMS IN FISCAL YEAR 2008.—Except 

as otherwise provided by an amendment made by this title, the 

Secretary of Agriculture shall continue to carry out any program 

or activity covered by title XII of the Food Security Act (16 U.S.C. 

3801 et seq.) until September 30, 2008, using the provisions of 

law applicable to the program or activity as they existed on the 

day before the date of the enactment of this Act and using funds 

made available under such title for fiscal year 2008 for the program 

or activity. 

(b) GROUND AND SURFACE WATER CONSERVATION PROGRAM.— 

During the period beginning on the date of the enactment of this 

Act and ending on September 30, 2008, the Secretary of Agriculture 

shall continue to carry out the ground and surface water conservation program under section 1240I of the Food Security Act of 1985 

(16 U.S.C. 3839aa–9), as in effect before the amendment made 

by section 2510, using the terms, conditions, and funds available 

to the Secretary to carry out such program on the day before 

the date of the enactment of this Act. 

SEC. 2904. REGULATIONS. 

(a) ISSUANCE.—Except as otherwise provided in this title or 

an amendment made by this title, not later than 90 days after 

the date of enactment of this Act, the Secretary of Agriculture, 

in consultation with the Commodity Credit Corporation, shall 

promulgate such regulations as are necessary to implement this 

title. 

(b) APPLICABLE AUTHORITY.—The promulgation of regulations 

under subsection (a) and administration of this title— 

(1) shall be carried out without regard to— 

(A) chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act); and 

(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804) relating 

to notices of proposed rulemaking and public participation 

in rulemaking; and 

(2) may— 

(A) be promulgated with an opportunity for notice and 

comment; or 

(B) if determined to be appropriate by the Secretary 

of Agriculture or the Commodity Credit Corporation, as 

an interim rule effective on publication with an opportunity 

for notice and comment. 

(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In carrying out this section, the Secretary shall use the authority provided 

under section 808(2) of title 5, United States Code. 
H. R. 2419—170 

TITLE IV—NUTRITION 

Subtitle A—Food Stamp Program 

PART I—RENAMING OF FOOD STAMP ACT AND 

PROGRAM 

SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM. 

(a) SHORT TITLE.—The first section of the Food Stamp Act 

of 1977 (7 U.S.C. 2011 note; Public Law 88–525) is amended by 

striking ‘‘Food Stamp Act of 1977’’ and inserting ‘‘Food and Nutrition Act of 2008’’. 

(b) PROGRAM.—The Food and Nutrition Act of 2008 (7 U.S.C. 

2011 et seq.) (as amended by subsection (a)) is amended by striking 

‘‘food stamp program’’ each place it appears and inserting ‘‘supplemental nutrition assistance program’’. 

SEC. 4002. CONFORMING AMENDMENTS. 

(a) IN GENERAL.— 

(1) Section 4 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2013) is amended in the section heading by striking 

‘‘FOOD STAMP PROGRAM’’ and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’. 

(2) Section 5(h)(2)(A) of the Food and Nutrition Act of 

2008 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ‘‘Food 

Stamp Disaster Task Force’’ and inserting ‘‘Disaster Task 

Force’’. 

(3) Section 6 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2015) is amended— 

(A) in subsection (d)(3), by striking ‘‘for food stamps’’; 

(B) in subsection (j), in the subsection heading, by 

striking ‘‘FOOD STAMP’’; and 

(C) in subsection (o)— 

(i) in paragraph (2), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutrition assistance 

program benefits’’; and 

(ii) in paragraph (6)— 

(I) in subparagraph (A)— 

(aa) in clause (i), by striking ‘‘food stamps’’ 

and inserting ‘‘supplemental nutrition assistance program benefits’’; and 

(bb) in clause (ii)— 

(AA) in the matter preceding subclause (I), by striking ‘‘a food stamp 

recipient’’ and inserting ‘‘a member of a 

household that receives supplemental 

nutrition assistance program benefits’’; 

and 

(BB) by striking ‘‘food stamp benefits’’ 

each place it appears and inserting 

‘‘supplemental nutrition assistance program benefits’’; and 

(II) in subparagraphs (D) and (E), by striking 

‘‘food stamp recipients’’ each place it appears and 

inserting ‘‘members of households that receive 
H. R. 2419—171 

supplemental nutrition assistance program benefits’’. 

(4) Section 7 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2016) is amended— 

(A) in subsection (i)— 

(i) in paragraph (3)(B)(ii), by striking ‘‘food stamp 

households’’ and inserting ‘‘households receiving 

supplemental nutrition assistance program benefits’’; 

and 

(ii) in paragraph (7), by striking ‘‘food stamp 

issuance’’ and inserting ‘‘supplemental nutrition assistance issuance’’; and 

(B) in subsection (k)— 

(i) in paragraph (2), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutrition assistance 

program benefits’’; and 

(ii) in paragraph (3), by striking ‘‘food stamp retail’’ 

and inserting ‘‘retail’’. 

(5) Section 9(b)(1) of that Food and Nutrition Act of 2008 

(7 U.S.C. 2018(b)(1)) is amended by striking ‘‘food stamp households’’ and inserting ‘‘households that receive supplemental 

nutrition assistance program benefits’’. 

(6) Section 11 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2020) is amended— 

(A) in subsection (e)— 

(i) by striking ‘‘food stamps’’ each place it appears 

and inserting ‘‘supplemental nutrition assistance program benefits’’; 

(ii) by striking ‘‘food stamp offices’’ each place it 

appears and inserting ‘‘supplemental nutrition assistance program offices’’; 

(iii) by striking ‘‘food stamp office’’ each place it 

appears and inserting ‘‘supplemental nutrition assistance program office’’; and 

(iv) in paragraph (25)— 

(I) in the matter preceding subparagraph (A), 

by striking ‘‘Simplified Food Stamp Program’’ and 

inserting ‘‘Simplified Supplemental Nutrition 

Assistance Program’’; and 

(II) in subparagraph (A), by striking ‘‘food 

stamp benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; 

(B) in subsection (k), by striking ‘‘may issue, upon 

request by the State agency, food stamps’’ and inserting 

‘‘may provide, on request by the State agency, supplemental 

nutrition assistance program benefits’’; 

(C) in subsection (l), by striking ‘‘food stamp participation’’ and inserting ‘‘supplemental nutrition assistance program participation’’; 

(D) in subsections (q) and (r), in the subsection 

headings, by striking ‘‘FOOD STAMPS’’ each place it appears 

and inserting ‘‘BENEFITS’’; 

(E) in subsection (s), by striking ‘‘food stamp benefits’’ 

each place it appears and inserting ‘‘supplemental nutrition 

assistance program benefits’’; and 

(F) in subsection (t)(1)— 
H. R. 2419—172 

(i) in subparagraph (A), by striking ‘‘food stamp 

application’’ and inserting ‘‘supplemental nutrition 

assistance program application’’; and 

(ii) in subparagraph (B), by striking ‘‘food stamp 

benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’. 

(7) Section 14(b) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2023(b)) is amended by striking ‘‘food stamp’’. 

(8) Section 16 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2025) is amended— 

(A) in subsection (a)(4), by striking ‘‘food stamp 

informational activities’’ and inserting ‘‘informational 

activities relating to the supplemental nutrition assistance 

program’’; 

(B) in subsection (c)(9)(C), by striking ‘‘food stamp caseload’’ and inserting ‘‘the caseload under the supplemental 

nutrition assistance program’’; and 

(C) in subsection (h)(1)(E)(i), by striking ‘‘food stamp 

recipients’’ and inserting ‘‘members of households receiving 

supplemental nutrition assistance program benefits’’. 

(9) Section 17 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2026) is amended— 

(A) in subsection (a)(2), by striking ‘‘food stamp benefits’’ each place it appears and inserting ‘‘supplemental 

nutrition assistance program benefits’’; 

(B) in subsection (b)— 

(i) in paragraph (1)— 

(I) in subparagraph (A), by striking ‘‘food 

stamp benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; and 

(II) in subparagraph (B)— 

(aa) in clause (ii)(II), by striking ‘‘food 

stamp recipients’’ and inserting ‘‘supplemental 

nutrition assistance program recipients’’; 

(bb) in clause (iii)(I), by striking ‘‘the 

State’s food stamp households’’ and inserting 

‘‘the number of households in the State 

receiving supplemental nutrition assistance 

program benefits’’; and 

(cc) in clause (iv)(IV)(bb), by striking ‘‘food 

stamp deductions’’ and inserting ‘‘supplemental nutrition assistance program deductions’’; 

(ii) in paragraph (2), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutrition assistance 

program benefits’’; and 

(iii) in paragraph (3)— 

(I) in subparagraph (A), by striking ‘‘food 

stamp employment’’ and inserting ‘‘supplemental 

nutrition assistance program employment’’; 

(II) in subparagraph (B), by striking ‘‘food 

stamp recipients’’ and inserting ‘‘supplemental 

nutrition assistance program recipients’’; 

(III) in subparagraph (C), by striking ‘‘food 

stamps’’ and inserting ‘‘supplemental nutrition 

assistance program benefits’’; and 
H. R. 2419—173 

(IV) in subparagraph (D), by striking ‘‘food 

stamp benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; 

(C) in subsection (c), by striking ‘‘food stamps’’ and 

inserting ‘‘supplemental nutrition assistance’’; 

(D) in subsection (d)— 

(i) in paragraph (1)(B), by striking ‘‘food stamp 

benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; 

(ii) in paragraph (2)— 

(I) in subparagraph (A), by striking ‘‘food 

stamp allotments’’ each place it appears and 

inserting ‘‘allotments’’; and 

(II) in subparagraph (C)(ii), by striking ‘‘food 

stamp benefit’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; and 

(iii) in paragraph (3)(E), by striking ‘‘food stamp 

benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; 

(E) in subsections (e) and (f), by striking ‘‘food stamp 

benefits’’ each place it appears and inserting ‘‘supplemental 

nutrition assistance program benefits’’; 

(F) in subsection (g), in the first sentence, by striking 

‘‘receipt of food stamp’’ and inserting ‘‘receipt of supplemental nutrition assistance program’’; and 

(G) in subsection (j), by striking ‘‘food stamp agencies’’ 

and inserting ‘‘supplemental nutrition assistance program 

agencies’’. 

(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking ‘‘food 

stamps’’ and inserting ‘‘supplemental nutrition assistance program benefits’’. 

(11) Section 22 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2031) is amended— 

(A) in the section heading, by striking ‘‘FOOD STAMP

PORTION OF MINNESOTA FAMILY INVESTMENT PLAN’’ and 

inserting ‘‘MINNESOTA FAMILY INVESTMENT PROJECT’’; 

(B) in subsections (b)(12) and (d)(3), by striking ‘‘the 

Food Stamp Act, as amended,’’ each place it appears and 

inserting ‘‘this Act’’; and 

(C) in subsection (g)(1), by striking ‘‘the Food Stamp 

Act of 1977 (7 U.S.C. 2011 et seq.)’’ and inserting ‘‘this 

Act’’. 

(12) Section 26 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2035) is amended— 

(A) in the section heading, by striking ‘‘SIMPLIFIED

FOOD STAMP PROGRAM’’ and inserting ‘‘SIMPLIFIED

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’; and 

(B) in subsection (b), by striking ‘‘simplified food stamp 

program’’ and inserting ‘‘simplified supplemental nutrition 

assistance program’’. 

(b) CONFORMING CROSS-REFERENCES.— 

(1) IN GENERAL.—Each provision of law described in paragraph (2) is amended (as applicable)— 

(A) by striking ‘‘food stamp program’’ each place it 

appears and inserting ‘‘supplemental nutrition assistance 

program’’; 
H. R. 2419—174 

(B) by striking ‘‘Food Stamp Act of 1977’’ each place 

it appears and inserting ‘‘Food and Nutrition Act of 2008’’; 

(C) by striking ‘‘Food Stamp Act’’ each place it appears 

and inserting ‘‘Food and Nutrition Act of 2008’’; 

(D) by striking ‘‘food stamp’’ each place it appears 

and inserting ‘‘supplemental nutrition assistance program 

benefits’’; 

(E) by striking ‘‘food stamps’’ each place it appears 

and inserting ‘‘supplemental nutrition assistance program 

benefits’’; 

(F) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking ‘‘FOOD STAMP

ACT’’ each place it appears and inserting ‘‘FOOD AND NUTRITION ACT OF 2008’’; 

(G) in each applicable subsection and appropriations 

heading, by striking ‘‘FOOD STAMP ACT’’ each place it 

appears and inserting ‘‘FOOD AND NUTRITION ACT OF 2008’’; 

(H) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking ‘‘FOOD STAMP ACT’’ each place 

it appears and inserting ‘‘FOOD AND NUTRITION ACT OF

2008’’; 

(I) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking ‘‘FOOD STAMP

PROGRAM’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’; 

(J) in each applicable subsection and appropriations 

heading, by striking ‘‘FOOD STAMP PROGRAM’’ each place 

it appears and inserting ‘‘SUPPLEMENTAL NUTRITION

ASSISTANCE PROGRAM’’; 

(K) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking ‘‘FOOD STAMP PROGRAM’’ each 

place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION

ASSISTANCE PROGRAM’’; 

(L) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking ‘‘FOOD STAMPS’’ 

each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’; 

(M) in each applicable subsection and appropriations 

heading, by striking ‘‘FOOD STAMPS’’ each place it appears 

and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’; and 

(N) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking ‘‘FOOD STAMPS’’ each place it 

appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’. 

(2) PROVISIONS OF LAW.—The provisions of law referred 

to in paragraph (1) are the following: 

(A) The Hunger Prevention Act of 1988 (Public Law 

100–435; 102 Stat. 1645). 

(B) The Food Stamp Program Improvements Act of 

1994 (Public Law 103–225; 108 Stat. 106). 

(C) Title IV of the Farm Security and Rural Investment 

Act of 2002 (Public Law 107–171; 116 Stat. 305). 
H. R. 2419—175 

(D) Section 2 of Public Law 103–205 (7 U.S.C. 2012 

note). 

(E) Section 807(b) of the Stewart B. McKinney Homeless Assistance Act (7 U.S.C. 2014 note; Public Law 100– 

77). 

(F) The Electronic Benefit Transfer Interoperability 

and Portability Act of 2000 (Public Law 106–171; 114 Stat. 

3). 

(G) Section 502(b) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 2025 

note; Public Law 105–185). 

(H) The National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.). 

(I) The Emergency Food Assistance Act of 1983 (7 

U.S.C. 7501 et seq.). 

(J) The Immigration and Nationality Act (8 U.S.C. 

1101 et seq.). 

(K) Section 8119 of the Department of Defense Appropriations Act, 1999 (10 U.S.C. 113 note; Public Law 105– 

262). 

(L) The Armored Car Industry Reciprocity Act of 1993 

(15 U.S.C. 5901 et seq.). 

(M) Title 18, United States Code. 

(N) The Higher Education Act of 1965 (20 U.S.C. 1001 

et seq.). 

(O) The Internal Revenue Code of 1986. 

(P) Section 650 of the Treasury and General Government Appropriations Act, 2000 (26 U.S.C. 7801 note; Public 

Law 106–58). 

(Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.). 

(R) The Workforce Investment Act of 1998 (29 U.S.C. 

2801 et seq.). 

(S) Title 31, United States Code. 

(T) Title 37, United States Code. 

(U) The Public Health Service Act (42 U.S.C. 201 et 

seq.). 

(V) Titles II through XIX of the Social Security Act 

(42 U.S.C. 401 et seq.). 

(W) Section 406 of the Family Support Act of 1988 

(Public Law 100–485; 102 Stat. 2400). 

(X) Section 232 of the Social Security Act Amendments 

of 1994 (42 U.S.C. 1314a). 

(Y) The United States Housing Act of 1937 (42 U.S.C. 

1437 et seq.). 

(Z) The Richard B. Russell National School Lunch Act 

(42 U.S.C. 1751 et seq.). 

(AA) The Child Nutrition Act of 1966 (42 U.S.C. 1771 

et seq.). 

(BB) The Older Americans Act of 1965 (42 U.S.C. 3001 

et seq.). 

(CC) Section 208 of the Intergovernmental Personnel 

Act of 1970 (42 U.S.C. 4728). 

(DD) The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

(EE) The Low-Income Home Energy Assistance Act 

of 1981 (42 U.S.C. 8621 et seq.). 
H. R. 2419—176 

(FF) Section 658K of the Child Care and Development 

Block Grant Act of 1990 (42 U.S.C. 9858i). 

(GG) The Alaska Native Claims Settlement Act (43 

U.S.C. 1601 et seq.). 

(HH) Public Law 95–348 (92 Stat. 487). 

(II) The Agriculture and Food Act of 1981 (Public Law 

97–98; 95 Stat. 1213). 

(JJ) The Disaster Assistance Act of 1988 (Public Law 

100–387; 102 Stat. 924). 

(KK) The Food, Agriculture, Conservation, and Trade 

Act of 1990 (Public Law 101–624; 104 Stat. 3359). 

(LL) The Cranston-Gonzalez National Affordable 

Housing Act (Public Law 101–625; 104 Stat. 4079). 

(MM) Section 388 of the Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991 

(Public Law 102–25; 105 Stat. 98). 

(NN) The Food, Agriculture, Conservation, and Trade 

Act Amendments of 1991 (Public Law 102–237; 105 Stat. 

1818). 

(OO) The Act of March 26, 1992 (Public Law 102– 

265; 106 Stat. 90). 

(PP) Public Law 105–379 (112 Stat. 3399). 

(QQ) Section 101(c) of the Emergency Supplemental 

Act, 2000 (Public Law 106–246; 114 Stat. 528). 

(c) REFERENCES.—Any reference in any Federal, State, tribal, 

or local law (including regulations) to the ‘‘food stamp program’’ 

established under the Food and Nutrition Act of 2008 (7 U.S.C. 

2011 et seq.) shall be considered to be a reference to the ‘‘supplemental nutrition assistance program’’ established under that Act. 

PART II—BENEFIT IMPROVEMENTS 

SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM 

INCOME. 

Section 5(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2014(d)) is amended— 

(1) by striking ‘‘(d) Household’’ and inserting ‘‘(d) EXCLU- SIONS FROM INCOME.—Household’’; 

(2) by striking ‘‘only (1) any’’ and inserting ‘‘only— 

‘‘(1) any’’; 

(3) by indenting each of paragraphs (2) through (18) so 

as to align with the margin of paragraph (1) (as amended 

by paragraph (2)); 

(4) by striking the comma at the end of each of paragraphs 

(1) through (16) and inserting a semicolon; 

(5) in paragraph (3)— 

(A) by striking ‘‘like (A) awarded’’ and inserting ‘‘like— 

‘‘(A) awarded’’; 

(B) by striking ‘‘thereof, (B) to’’ and inserting ‘‘thereof; 

‘‘(B) to’’; and 

(C) by striking ‘‘program, and (C) to’’ and inserting 

‘‘program; and 

‘‘(C) to’’; 

(6) in paragraph (11), by striking ‘‘)), or (B) a’’ and inserting 

‘‘)); or 

‘‘(B) a’’; 
H. R. 2419—177 

(7) in paragraph (17), by striking ‘‘, and’’ at the end and 

inserting a semicolon; 

(8) in paragraph (18), by striking the period at the end 

and inserting ‘‘; and’’; and 

(9) by adding at the end the following: 

‘‘(19) any additional payment under chapter 5 of title 37, 

United States Code, or otherwise designated by the Secretary 

to be appropriate for exclusion under this paragraph, that 

is received by or from a member of the United States Armed 

Forces deployed to a designated combat zone, if the additional 

pay— 

‘‘(A) is the result of deployment to or service in a 

combat zone; and 

‘‘(B) was not received immediately prior to serving 

in a combat zone.’’. 

SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOWINCOME AMERICANS. 

Section 5(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2014(e)(1)) is amended— 

(1) in subparagraph (A)(ii), by striking ‘‘not less than $134’’ 

and all that follows through the end of the clause and inserting 

the following: ‘‘not less than— ‘‘(I) for fiscal year 2009, $144, $246, $203, and $127, respectively; and 

‘‘(II) for fiscal year 2010 and each fiscal year 

thereafter, an amount that is equal to the amount 

from the previous fiscal year adjusted to the 

nearest lower dollar increment to reflect changes 

for the 12-month period ending on the preceding 

June 30 in the Consumer Price Index for All Urban 

Consumers published by the Bureau of Labor 

Statistics of the Department of Labor, for items 

other than food.’’; 

(2) in subparagraph (B)(ii), by striking ‘‘not less than $269’’ 

and all that follows through the end of the clause and inserting 

the following: ‘‘not less than— ‘‘(I) for fiscal year 2009, $289; and 

‘‘(II) for fiscal year 2010 and each fiscal year 

thereafter, an amount that is equal to the amount 

from the previous fiscal year adjusted to the 

nearest lower dollar increment to reflect changes 

for the 12-month period ending on the preceding 

June 30 in the Consumer Price Index for All Urban 

Consumers published by the Bureau of Labor 

Statistics of the Department of Labor, for items 

other than food.’’; and 

(3) by adding at the end the following: 

‘‘(C) REQUIREMENT.—Each adjustment under subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be based on the 

unrounded amount for the prior 12-month period.’’. 

SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE 

EXPENSES. 

Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘, the maximum allowable level of which shall be $200 per month for each dependent 
H. R. 2419—178 

child under 2 years of age and $175 per month for each other 

dependent,’’. 

SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT 

ACCOUNTS. 

(a) ADJUSTING COUNTABLE RESOURCES FOR INFLATION.—Section 

(5)(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) 

is amended— 

(1) by striking ‘‘(g)(1) The Secretary’’ and inserting the 

following: 

‘‘(g) ALLOWABLE FINANCIAL RESOURCES.— 

‘‘(1) TOTAL AMOUNT.— 

‘‘(A) IN GENERAL.—The Secretary’’. 

(2) in subparagraph (A) (as so designated by paragraph 

(1))— 

(A) by inserting ‘‘(as adjusted in accordance with 

subparagraph (B))’’ after ‘‘$2,000’’; and 

(B) by inserting ‘‘(as adjusted in accordance with 

subparagraph (B))’’ after ‘‘$3,000’’; and 

(3) by adding at the end the following: 

‘‘(B) ADJUSTMENT FOR INFLATION.— 

‘‘(i) IN GENERAL.—Beginning on October 1, 2008, 

and each October 1 thereafter, the amounts specified 

in subparagraph (A) shall be adjusted and rounded 

down to the nearest $250 increment to reflect changes 

for the 12-month period ending the preceding June 

in the Consumer Price Index for All Urban Consumers 

published by the Bureau of Labor Statistics of the 

Department of Labor. 

‘‘(ii) REQUIREMENT.—Each adjustment under 

clause (i) shall be based on the unrounded amount 

for the prior 12-month period.’’. 

(b) EXCLUSION OF RETIREMENT ACCOUNTS FROM ALLOWABLE

FINANCIAL RESOURCES.— 

(1) IN GENERAL.—Section 5(g)(2)(B)(v) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) is amended 

by striking ‘‘or retirement account (including an individual 

account)’’ and inserting ‘‘account’’. 

(2) MANDATORY AND DISCRETIONARY EXCLUSIONS.—Section 

5(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) 

is amended by adding at the end the following: 

‘‘(7) EXCLUSION OF RETIREMENT ACCOUNTS FROM ALLOWABLE

FINANCIAL RESOURCES.— 

‘‘(A) MANDATORY EXCLUSIONS.—The Secretary shall 

exclude from financial resources under this subsection the 

value of— 

‘‘(i) any funds in a plan, contract, or account, 

described in sections 401(a), 403(a), 403(b), 408, 408A, 

457(b), and 501(c)(18) of the Internal Revenue Code 

of 1986 and the value of funds in a Federal Thrift 

Savings Plan account as provided in section 8439 of 

title 5, United States Code; and 

‘‘(ii) any retirement program or account included 

in any successor or similar provision that may be 

enacted and determined to be exempt from tax under 

the Internal Revenue Code of 1986. 
H. R. 2419—179 

‘‘(B) DISCRETIONARY EXCLUSIONS.—The Secretary may 

exclude from financial resources under this subsection the 

value of any other retirement plans, contracts, or accounts 

(as determined by the Secretary).’’. 

(c) EXCLUSION OF EDUCATION ACCOUNTS FROM ALLOWABLE

FINANCIAL RESOURCES.—Section 5(g) of the Food and Nutrition 

Act of 2008 (7 U.S.C. 2014(g)) (as amended by subsection (b)) 

is amended by adding at the end the following: 

‘‘(8) EXCLUSION OF EDUCATION ACCOUNTS FROM ALLOWABLE

FINANCIAL RESOURCES.— 

‘‘(A) MANDATORY EXCLUSIONS.—The Secretary shall 

exclude from financial resources under this subsection the 

value of any funds in a qualified tuition program described 

in section 529 of the Internal Revenue Code of 1986 or 

in a Coverdell education savings account under section 

530 of that Code. 

‘‘(B) DISCRETIONARY EXCLUSIONS.—The Secretary may 

exclude from financial resources under this subsection the 

value of any other education programs, contracts, or 

accounts (as determined by the Secretary).’’. 

SEC. 4105. FACILITATING SIMPLIFIED REPORTING. 

Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2015(c)(1)(A)) is amended— 

(1) by striking ‘‘reporting by’’ and inserting ‘‘reporting’’; 

(2) in clause (i), by inserting ‘‘for periods shorter than 

4 months by’’ before ‘‘migrant’’; 

(3) in clause (ii), by inserting ‘‘for periods shorter than 

4 months by’’ before ‘‘households’’; and 

(4) in clause (iii), by inserting ‘‘for periods shorter than 

1 year by’’ before ‘‘households’’. 

SEC. 4106. TRANSITIONAL BENEFITS OPTION. 

Section 11(s)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020(s)(1)) is amended— 

(1) by striking ‘‘benefits to a household’’; and inserting 

‘‘benefits— 

‘‘(A) to a household’’; 

(2) by striking the period at the end and inserting ‘‘; or’’; 

and 

(3) by adding at the end the following: 

‘‘(B) at the option of the State, to a household with 

children that ceases to receive cash assistance under a 

State-funded public assistance program.’’. 

SEC. 4107. INCREASING THE MINIMUM BENEFIT. 

Section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2017(a)) is amended by striking ‘‘$10 per month’’ and inserting 

‘‘8 percent of the cost of the thrifty food plan for a household 

containing 1 member, as determined by the Secretary under section 

3, rounded to the nearest whole dollar increment’’. 

SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION. 

Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2015(d)(4)) is amended— 

(1) in subparagraph (B)— 

(A) by redesignating clause (vii) as clause (viii); and 

(B) by inserting after clause (vi) the following: 
H. R. 2419—180 

‘‘(vii) Programs intended to ensure job retention 

by providing job retention services, if the job retention 

services are provided for a period of not more than 

90 days after an individual who received employment 

and training services under this paragraph gains 

employment.’’; and 

(2) in subparagraph (F), by adding at the end the following: 

‘‘(iii) Any individual voluntarily electing to participate in a program under this paragraph shall not 

be subject to the limitations described in clauses (i) 

and (ii).’’. 

PART III—PROGRAM OPERATIONS 

SEC. 4111. NUTRITION EDUCATION. 

(a) AUTHORITY TO PROVIDE NUTRITION EDUCATION.—Section 

4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) 

is amended in the first sentence by inserting ‘‘and, through an 

approved State plan, nutrition education’’ after ‘‘an allotment’’. 

(b) IMPLEMENTATION.—Section 11 of the Food and Nutrition 

Act of 2008 (7 U.S.C. 2020) is amended by striking subsection 

(f) and inserting the following: 

‘‘(f) NUTRITION EDUCATION.— 

‘‘(1) IN GENERAL.—State agencies may implement a nutrition education program for individuals eligible for program 

benefits that promotes healthy food choices consistent with 

the most recent Dietary Guidelines for Americans published 

under section 301 of the National Nutrition Monitoring and 

Related Research Act of 1990 (7 U.S.C. 5341). 

‘‘(2) DELIVERY OF NUTRITION EDUCATION.—State agencies 

may deliver nutrition education directly to eligible persons or 

through agreements with the National Institute of Food and 

Agriculture, including through the expanded food and nutrition 

education program under section 3(d) of the Act of May 8, 

1914 (7 U.S.C. 343(d)), and other State and community health 

and nutrition providers and organizations. 

‘‘(3) NUTRITION EDUCATION STATE PLANS.— 

‘‘(A) IN GENERAL.—A State agency that elects to provide 

nutrition education under this subsection shall submit a 

nutrition education State plan to the Secretary for 

approval. 

‘‘(B) REQUIREMENTS.—The plan shall— 

‘‘(i) identify the uses of the funding for local 

projects; and 

‘‘(ii) conform to standards established by the Secretary through regulations or guidance. 

‘‘(C) REIMBURSEMENT.—State costs for providing nutrition education under this subsection shall be reimbursed 

pursuant to section 16(a). 

‘‘(4) NOTIFICATION.—To the maximum extent practicable, 

State agencies shall notify applicants, participants, and eligible 

program participants of the availability of nutrition education 

under this subsection.’’. 

SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY. 

Section 6(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2015(k)) is amended— 
H. R. 2419—181 

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; 

(2) by striking ‘‘No member’’ and inserting the following: 

‘‘(1) IN GENERAL.—No member’’; and 

(3) by adding at the end the following: 

‘‘(2) PROCEDURES.—The Secretary shall— 

‘‘(A) define the terms ‘fleeing’ and ‘actively seeking’ 

for purposes of this subsection; and 

‘‘(B) ensure that State agencies use consistent procedures established by the Secretary that disqualify individuals whom law enforcement authorities are actively seeking 

for the purpose of holding criminal proceedings against 

the individual.’’. 

SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE. 

Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2016(h)) is amended by striking paragraph (2) and inserting the 

following: 

‘‘(2) REQUIREMENTS.— ‘‘(A) IN GENERAL.—Any procedure established under 

paragraph (1) shall— 

‘‘(i) not reduce the allotment of any household for 

any period; and 

‘‘(ii) ensure that no household experiences an 

interval between issuances of more than 40 days. 

‘‘(B) MULTIPLE ISSUANCES.—The procedure may include 

issuing benefits to a household in more than 1 issuance 

during a month only when a benefit correction is necessary.’’. 

SEC. 4114. ACCRUAL OF BENEFITS. 

Section 7(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2016(i)) is amended by adding at the end the following: 

‘‘(12) RECOVERING ELECTRONIC BENEFITS.— ‘‘(A) IN GENERAL.—A State agency shall establish a 

procedure for recovering electronic benefits from the 

account of a household due to inactivity. 

‘‘(B) BENEFIT STORAGE.—A State agency may store 

recovered electronic benefits off-line in accordance with 

subparagraph (D), if the household has not accessed the 

account after 6 months. 

‘‘(C) BENEFIT EXPUNGING.—A State agency shall 

expunge benefits that have not been accessed by a household after a period of 12 months. 

‘‘(D) NOTICE.—A State agency shall— 

‘‘(i) send notice to a household the benefits of which 

are stored under subparagraph (B); and 

‘‘(ii) not later than 48 hours after request by the 

household, make the stored benefits available to the 

household.’’. 

SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS. 

(a) IN GENERAL.—Section 7 of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2016) is amended— 

(1) by striking the section designation and heading and 

all that follows through ‘‘subsection (j)) shall be’’ and inserting 

the following: 
H. R. 2419—182 

‘‘SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS. 

‘‘(a) IN GENERAL.—Except as provided in subsection (i), EBT 

cards shall be’’; 

(2) in subsection (b)— 

(A) by striking ‘‘(b) Coupons’’ and inserting the following: 

‘‘(b) USE.—Benefits’’; and 

(B) by striking the second proviso; 

(3) in subsection (c)— 

(A) by striking ‘‘(c) Coupons’’ and inserting the following: 

‘‘(c) DESIGN.— ‘‘(1) IN GENERAL.—EBT cards’’; 

(B) in the first sentence, by striking ‘‘and define their 

denomination’’; and 

(C) by striking the second sentence and inserting the 

following: 

‘‘(2) PROHIBITION.—The name of any public official shall 

not appear on any EBT card.’’; 

(4) by striking subsection (d); 

(5) in subsection (e)— 

(A) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; and 

(B) by striking ‘‘coupon issuers’’ each place it appears 

and inserting ‘‘benefit issuers’’; 

(6) in subsection (f)— 

(A) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; 

(B) by striking ‘‘coupon issuer’’ and inserting ‘‘benefit 

issuers’’; 

(C) by striking ‘‘including any losses’’ and all that 

follows through ‘‘section 11(e)(20),’’; and 

(D) by striking ‘‘and allotments’’; 

(7) by striking subsection (g) and inserting the following: 

‘‘(g) ALTERNATIVE BENEFIT DELIVERY.— 

‘‘(1) IN GENERAL.—If the Secretary determines, in consultation with the Inspector General of the Department of Agriculture, that it would improve the integrity of the supplemental 

nutrition assistance program, the Secretary shall require a 

State agency to issue or deliver benefits using alternative 

methods. 

‘‘(2) NO IMPOSITION OF COSTS.—The cost of documents or 

systems that may be required by this subsection may not be 

imposed upon a retail food store participating in the supplemental nutrition assistance program. 

‘‘(3) DEVALUATION AND TERMINATION OF ISSUANCE OF PAPER

COUPONS.— 

‘‘(A) COUPON ISSUANCE.—Effective on the date of enactment of the Food, Conservation, and Energy Act of 2008, 

no State shall issue any coupon, stamp, certificate, or 

authorization card to a household that receives supplemental nutrition assistance under this Act. 

‘‘(B) EBT CARDS.—Effective beginning on the date that 

is 1 year after the date of enactment of the Food, Conservation, and Energy Act of 2008, only an EBT card issued 

under subsection (i) shall be eligible for exchange at any 

retail food store. 
H. R. 2419—183 

‘‘(C) DE-OBLIGATION OF COUPONS.—Coupons not 

redeemed during the 1-year period beginning on the date 

of enactment of the Food, Conservation, and Energy Act 

of 2008 shall— 

‘‘(i) no longer be an obligation of the Federal 

Government; and 

‘‘(ii) not be redeemable.’’; 

(8) in subsection (h)(1), by striking ‘‘coupons’’ and inserting 

‘‘benefits’’; 

(9) in subsection (i), by adding at the end the following: 

‘‘(12) INTERCHANGE FEES.—No interchange fees shall apply 

to electronic benefit transfer transactions under this subsection.’’; 

(10) in subsection (j)— 

(A) in paragraph (2)(A)(ii), by striking ‘‘printing, shipping, and redeeming coupons’’ and inserting ‘‘issuing and 

redeeming benefits’’; and 

(B) in paragraph (5), by striking ‘‘coupon’’ and inserting 

‘‘benefit’’; 

(11) in subsection (k)— 

(A) by striking ‘‘coupons in the form of’’ each place 

it appears and inserting ‘‘program benefits in the form 

of’’; 

(B) by striking ‘‘a coupon issued in the form of’’ each 

place it appears and inserting ‘‘program benefits in the 

form of’’; and 

(C) in subparagraph (A), by striking ‘‘subsection 

(i)(11)(A)’’ and inserting ‘‘subsection (h)(11)(A)’’; and 

(12) by redesignating subsections (e) through (k) as subsections (d) through (j), respectively. 

(b) CONFORMING AMENDMENTS.— (1) Section 3 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2012) is amended— 

(A) in subsection (a), by striking ‘‘coupons’’ and 

inserting ‘‘benefits’’; 

(B) by striking subsection (b) and inserting the following: 

‘‘(b) BENEFIT.—The term ‘benefit’ means the value of supplemental nutrition assistance provided to a household by means of— 

‘‘(1) an electronic benefit transfer under section 7(i); or 

‘‘(2) other means of providing assistance, as determined 

by the Secretary.’’; 

(C) in subsection (c), in the first sentence, by striking 

‘‘authorization cards’’ and inserting ‘‘benefits’’; 

(D) in subsection (d), by striking ‘‘or access device’’ 

and all that follows through the end of the subsection 

and inserting a period; 

(E) in subsection (e)— 

(i) by striking ‘‘(e) ‘Coupon issuer’ means’’ and 

inserting the following: 

‘‘(e) BENEFIT ISSUER.—The term ‘benefit issuer’ means’’; and 

(ii) by striking ‘‘coupons’’ and inserting ‘‘benefits’’; 

(F) in subsection (g)(7), by striking ‘‘subsection (r)’’ 

and inserting ‘‘subsection (j)’’; 

(G) in subsection (i)(5)— 

(i) in subparagraph (B), by striking ‘‘subsection 

(r)’’ and inserting ‘‘subsection (j)’’; and 
H. R. 2419—184 

(ii) in subparagraph (D), by striking ‘‘coupons’’ and 

inserting ‘‘benefits’’; 

(H) in subsection (j), by striking ‘‘(as that term is 

defined in subsection (p))’’; 

(I) in subsection (k)— 

(i) in paragraph (1)(A), by striking ‘‘subsection 

(u)(1)’’ and inserting ‘‘subsection (r)(1)’’; 

(ii) in paragraph (2), by striking ‘‘subsections (g)(3), 

(4), (5), (7), (8), and (9) of this section’’ and inserting 

‘‘paragraphs (3), (4), (5), (7), (8), and (9) of subsection 

(k)’’; and 

(iii) in paragraph (3), by striking ‘‘subsection (g)(6) 

of this section’’ and inserting ‘‘subsection (k)(6)’’; 

(J) in subsection (t), by inserting ‘‘, including point 

of sale devices,’’ after ‘‘other means of access’’; 

(K) in subsection (u), by striking ‘‘(as defined in subsection (g))’’; 

(L) by adding at the end the following: 

‘‘(v) EBT CARD.—The term ‘EBT card’ means an electronic 

benefit transfer card issued under section 7(i).’’; and 

(M) by redesignating subsections (a) through (v) as 

subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o), (p), 

(q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and (i), respectively, 

and moving the subsections so as to appear in alphabetical 

order. 

(2) Section 4(a) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2013(a)) is amended— 

(A) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; and 

(B) by striking ‘‘Coupons issued’’ and inserting ‘‘benefits 

issued’’. 

(3) Section 5 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2014) is amended— 

(A) in subsection (a), by striking ‘‘section 3(i)(4)’’ and 

inserting ‘‘section 3(n)(4)’’; 

(B) in subsection (h)(3)(B), in the second sentence, by 

striking ‘‘section 7(i)’’ and inserting ‘‘section 7(h)’’; and 

(C) in subsection (i)(2)(E), by striking ‘‘, as defined 

in section 3(i) of this Act,’’. 

(4) Section 6 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2015) is amended— 

(A) in subsection (b)(1)— 

(i) in subparagraph (B), by striking ‘‘coupons or 

authorization cards’’ and inserting ‘‘program benefits’’; 

and 

(ii) by striking ‘‘coupons’’ each place it appears 

and inserting ‘‘benefits’’; and 

(B) in subsection (d)(4)(L), by striking ‘‘section 

11(e)(22)’’ and inserting ‘‘section 11(e)(19)’’. 

(5) Section 8 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2017) is amended— 

(A) in subsection (b), by striking ‘‘, whether through 

coupons, access devices, or otherwise’’; and 

(B) in subsections (e)(1) and (f), by striking ‘‘section 

3(i)(5)’’ each place it appears and inserting ‘‘section 3(n)(5)’’. 

(6) Section 9 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2018) is amended— 
H. R. 2419—185 

(A) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; 

(B) in subsection (a)— 

(i) in paragraph (1), by striking ‘‘coupon business’’ 

and inserting ‘‘benefit transactions’’; and 

(ii) by striking paragraph (3) and inserting the 

following: 

‘‘(3) AUTHORIZATION PERIODS.—The Secretary shall establish specific time periods during which authorization to accept 

and redeem benefits shall be valid under the supplemental 

nutrition assistance program.’’; and 

(C) in subsection (g), by striking ‘‘section 3(g)(9)’’ and 

inserting ‘‘section 3(k)(9)’’. 

(7) Section 10 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2019) is amended— 

(A) by striking the section designation and heading 

and all that follows through ‘‘Regulations’’ and inserting 

the following: 

‘‘SEC. 10. REDEMPTION OF PROGRAM BENEFITS. 

‘‘Regulations’’; 

(B) by striking ‘‘section 3(k)(4) of this Act’’ and inserting 

‘‘section 3(p)(4)’’; 

(C) by striking ‘‘section 7(i)’’ and inserting ‘‘section 

7(h)’’; and 

(D) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’. 

(8) Section 11 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2020) is amended— 

(A) in subsection (d)— 

(i) by striking ‘‘section 3(n)(1) of this Act’’ each 

place it appears and inserting ‘‘section 3(t)(1)’’; and 

(ii) by striking ‘‘section 3(n)(2) of this Act’’ each 

place it appears and inserting ‘‘section 3(t)(2)’’; 

(B) in subsection (e)— 

(i) in paragraph (8)(E), by striking ‘‘paragraph (16) 

or (20)(B)’’ and inserting ‘‘paragraph (15) or (18)(B)’’; 

(ii) by striking paragraphs (15) and (19); 

(iii) by redesignating paragraphs (16) through (18) 

and (20) through (25) as paragraphs (15) through (17) 

and (18) through (23), respectively; and 

(iv) in paragraph (17) (as so redesignated), by 

striking ‘‘(described in section 3(n)(1) of this Act)’’ and 

inserting ‘‘described in section 3(t)(1)’’; 

(C) in subsection (h), by striking ‘‘coupon or coupons’’ 

and inserting ‘‘benefits’’; 

(D) by striking ‘‘coupon’’ each place it appears and 

inserting ‘‘benefit’’; 

(E) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; and 

(F) in subsection (q), by striking ‘‘section 11(e)(20)(B)’’ 

and inserting ‘‘subsection (e)(18)(B)’’. 

(9) Section 13 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2022) is amended by striking ‘‘coupons’’ each place it 

appears and inserting ‘‘benefits’’. 

(10) Section 15 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2024) is amended— 
H. R. 2419—186 

(A) in subsection (a), by striking ‘‘coupons’’ and 

inserting ‘‘benefits’’; 

(B) in subsection (b)(1)— 

(i) by striking ‘‘coupons, authorization cards, or 

access devices’’ each place it appears and inserting 

‘‘benefits’’; 

(ii) by striking ‘‘coupons or authorization cards’’ 

and inserting ‘‘benefits’’; and 

(iii) by striking ‘‘access device’’ each place it 

appears and inserting ‘‘benefit’’; 

(C) in subsection (c), by striking ‘‘coupons’’ each place 

it appears and inserting ‘‘benefits’’; 

(D) in subsection (d), by striking ‘‘Coupons’’ and 

inserting ‘‘Benefits’’; 

(E) by striking subsections (e) and (f); 

(F) by redesignating subsections (g) and (h) as subsections (e) and (f), respectively; and 

(G) in subsection (e) (as so redesignated), by striking 

‘‘coupon, authorization cards or access devices’’ and 

inserting ‘‘benefits’’. 

(11) Section 16(a) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2025(a)) is amended by striking ‘‘coupons’’ each place 

it appears and inserting ‘‘benefits’’. 

(12) Section 17 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2026) is amended— 

(A) in subsection (a)(2), by striking ‘‘coupon’’ and 

inserting ‘‘benefit’’; 

(B) in subsection (b)(1)— 

(i) in subparagraph (B)— 

(I) in clause (iv)— 

(aa) in subclause (I), inserting ‘‘or otherwise providing benefits in a form not restricted 

to the purchase of food’’ after ‘‘of cash’’; 

(bb) in subclause (III)(aa), by striking ‘‘section 3(i)’’ and inserting ‘‘section 3(n)’’; and 

(cc) in subclause (VII), by striking ‘‘section 

7(j)’’ and inserting ‘‘section 7(i)’’; and 

(II) in clause (v)— 

(aa) by striking ‘‘countersigned food coupons or similar’’; and 

(bb) by striking ‘‘food coupons’’ and 

inserting ‘‘EBT cards’’; and 

(ii) in subparagraph (C)(i)(I), by striking ‘‘coupons’’ 

and inserting ‘‘EBT cards’’; 

(C) in subsection (f), by striking ‘‘section 7(g)(2)’’ and 

inserting ‘‘section 7(f)(2)’’; and 

(D) in subsection (j), by striking ‘‘coupon’’ and inserting 

‘‘benefit’’. 

(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ‘‘section 3(o)(4)’’ and inserting ‘‘section 3(u)(4)’’. 

(14) Section 21 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2030) is repealed. 

(15) Section 22 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2031) is amended— 

(A) by striking ‘‘food coupons’’ each place it appears 

and inserting ‘‘benefits’’; 
H. R. 2419—187 

(B) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; and 

(C) in subsection (g)(1)(A), by striking ‘‘coupon’’ and 

inserting ‘‘benefits’’. 

(16) Section 26(f)(3) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2035(f)(3)) is amended— 

(A) in subparagraph (A), by striking ‘‘subsections (a) 

through (g)’’ and inserting ‘‘subsections (a) through (f)’’; 

and 

(B) in subparagraph (E), by striking ‘‘(16), (18), (20), 

(24), and (25)’’ and inserting ‘‘(15), (17), (18), (22), and 

(23)’’. 

(c) CONFORMING CROSS-REFERENCES.— 

(1) IN GENERAL.— (A) USE OF TERMS.—Each provision of law described 

in subparagraph (B) is amended (as applicable)— 

(i) by striking ‘‘coupons’’ each place it appears and 

inserting ‘‘benefits’’; 

(ii) by striking ‘‘coupon’’ each place it appears and 

inserting ‘‘benefit’’; 

(iii) by striking ‘‘food coupons’’ each place it 

appears and inserting ‘‘benefits’’; 

(iv) in each section heading, by striking ‘‘FOOD

COUPONS’’ each place it appears and inserting ‘‘BENE- FITS’’; 

(v) by striking ‘‘food stamp coupon’’ each place 

it appears and inserting ‘‘benefit’’; and 

(vi) by striking ‘‘food stamps’’ each place it appears 

and inserting ‘‘benefits’’. 

(B) PROVISIONS OF LAW.—The provisions of law referred 

to in subparagraph (A) are the following: 

(i) Section 2 of Public Law 103–205 (7 U.S.C. 2012 

note; 107 Stat. 2418). 

(ii) Section 1956(c)(7)(D) of title 18, United States 

Code. 

(iii) Titles II through XIX of the Social Security 

Act (42 U.S.C. 401 et seq.). 

(iv) Section 401(b)(3) of the Social Security Amendments of 1972 (42 U.S.C. 1382e note; Public Law 92– 

603). 

(v) The Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

(vi) Section 802(d)(2)(A)(i)(II) of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 

8011(d)(2)(A)(i)(II)). 

(2) DEFINITION REFERENCES.— 

(A) Section 2 of Public Law 103–205 (7 U.S.C. 2012 

note; 107 Stat. 2418) is amended by striking ‘‘section 

3(k)(1)’’ and inserting ‘‘section 3(p)(1)’’. 

(B) Section 205 of the Food Stamp Program Improvements Act of 1994 (7 U.S.C. 2012 note; Public Law 103– 

225) is amended by striking ‘‘section 3(k) of such Act (as 

amended by section 201)’’ and inserting ‘‘section 3(p) of 

that Act’’. 

(C) Section 115 of the Personal Responsibility and 

Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 

862a) is amended— 
H. R. 2419—188 

(i) by striking ‘‘section 3(h)’’ each place it appears 

and inserting ‘‘section 3(l)’’; and 

(ii) in subsection (e)(2), by striking ‘‘section 3(m)’’ 

and inserting ‘‘section 3(s)’’. 

(D) Section 402(a) of the Personal Responsibility and 

Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 

1612(a)) is amended— 

(i) in paragraph (2)(F)(ii), by striking ‘‘section 3(r)’’ 

and inserting ‘‘section 3(j)’’; and 

(ii) in paragraph (3)(B), by striking ‘‘section 3(h)’’ 

and inserting ‘‘section 3(l)’’. 

(E) Section 3803(c)(2)(C)(vii) of title 31, United States 

Code, is amended by striking ‘‘section 3(h)’’ and inserting 

‘‘section 3(l)’’. 

(F) Section 303(d)(4) of the Social Security Act (42 

U.S.C. 503(d)(4)) is amended by striking ‘‘section 3(n)(1)’’ 

and inserting ‘‘section 3(t)(1)’’. 

(G) Section 404 of the Social Security Act (42 U.S.C. 

604) is amended by striking ‘‘section 3(h)’’ each place it 

appears and inserting ‘‘section 3(l)’’. 

(H) Section 531 of the Social Security Act (42 U.S.C. 

654) is amended by striking ‘‘section 3(h)’’ each place it 

appears and inserting ‘‘section 3(l)’’. 

(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez 

National Affordable Housing Act (42 U.S.C. 

8011(d)(2)(A)(i)(II)) is amended by striking ‘‘(as defined in 

section 3(e) of such Act)’’. 

(d) REFERENCES.—Any reference in any Federal, State, tribal, 

or local law (including regulations) to a ‘‘coupon’’, ‘‘authorization 

card’’, or other access device provided under the Food and Nutrition 

Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be 

a reference to a ‘‘benefit’’ provided under that Act. 

SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN. 

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020) is amended by striking the section enumerator and heading 

and subsection (a) and inserting the following: 

‘‘SEC. 11. ADMINISTRATION. 

‘‘(a) STATE RESPONSIBILITY.— ‘‘(1) IN GENERAL.—The State agency of each participating 

State shall have responsibility for certifying applicant households and issuing EBT cards. 

‘‘(2) LOCAL ADMINISTRATION.—The responsibility of the 

agency of the State government shall not be affected by whether 

the program is operated on a State-administered or countyadministered basis, as provided under section 3(t)(1). 

‘‘(3) RECORDS.— ‘‘(A) IN GENERAL.—Each State agency shall keep such 

records as may be necessary to determine whether the 

program is being conducted in compliance with this Act 

(including regulations issued under this Act). 

‘‘(B) INSPECTION AND AUDIT.—Records described in 

subparagraph (A) shall— 

‘‘(i) be available for inspection and audit at any 

reasonable time; 

‘‘(ii) subject to subsection (e)(8), be available for 

review in any action filed by a household to enforce 
H. R. 2419—189 

any provision of this Act (including regulations issued 

under this Act); and 

‘‘(iii) be preserved for such period of not less than 

3 years as may be specified in regulations. 

‘‘(4) REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.— ‘‘(A) IN GENERAL.—The Secretary shall develop standards for identifying major changes in the operations of 

a State agency, including— 

‘‘(i) large or substantially-increased numbers of 

low-income households that do not live in reasonable 

proximity to an office performing the major functions 

described in subsection (e); 

‘‘(ii) substantial increases in reliance on automated 

systems for the performance of responsibilities previously performed by personnel described in subsection 

(e)(6)(B); 

‘‘(iii) changes that potentially increase the difficulty of reporting information under subsection (e) 

or section 6(c); and 

‘‘(iv) changes that may disproportionately increase 

the burdens on any of the types of households described 

in subsection (e)(2)(A). 

‘‘(B) NOTIFICATION.—If a State agency implements a 

major change in operations, the State agency shall— 

‘‘(i) notify the Secretary; and 

‘‘(ii) collect such information as the Secretary shall 

require to identify and correct any adverse effects on 

program integrity or access, including access by any 

of the types of households described in subsection 

(e)(2)(A).’’. 

SEC. 4117. CIVIL RIGHTS COMPLIANCE. 

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020) is amended by striking subsection (c) and inserting the following: 

‘‘(c) CIVIL RIGHTS COMPLIANCE.— ‘‘(1) IN GENERAL.—In the certification of applicant households for the supplemental nutrition assistance program, there 

shall be no discrimination by reason of race, sex, religious 

creed, national origin, or political affiliation. 

‘‘(2) RELATION TO OTHER LAWS.—The administration of the 

program by a State agency shall be consistent with the rights 

of households under the following laws (including implementing 

regulations): 

‘‘(A) The Age Discrimination Act of 1975 (42 U.S.C. 

6101 et seq.). 

‘‘(B) Section 504 of the Rehabilitation Act of 1973 (29 

U.S.C. 794). 

‘‘(C) The Americans with Disabilities Act of 1990 (42 

U.S.C. 12101 et seq.). 

‘‘(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 

2000d et seq.).’’. 

SEC. 4118. CODIFICATION OF ACCESS RULES. 

Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020(e)(1)) is amended— 

(1) by striking ‘‘shall (A) at’’ and inserting ‘‘shall— 

‘‘(A) at’’; and 
H. R. 2419—190 

(2) by striking ‘‘and (B) use’’ and inserting ‘‘and 

‘‘(B) comply with regulations of the Secretary requiring 

the use of’’. 

SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE. 

Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2020(e)(2)(C)) is amended— 

(1) by striking ‘‘(C) Nothing in this Act’’ and inserting 

the following: 

‘‘(C) ELECTRONIC AND AUTOMATED SYSTEMS.— 

‘‘(i) IN GENERAL.—Nothing in this Act’’; and 

(2) by adding at the end the following: 

‘‘(ii) STATE OPTION FOR TELEPHONIC SIGNATURE.— A State agency may establish a system by which an 

applicant household may sign an application through 

a recorded verbal assent over the telephone. 

‘‘(iii) REQUIREMENTS.—A system established under 

clause (ii) shall— 

‘‘(I) record for future reference the verbal 

assent of the household member and the information to which assent was given; 

‘‘(II) include effective safeguards against 

impersonation, identity theft, and invasions of privacy; 

‘‘(III) not deny or interfere with the right of 

the household to apply in writing; 

‘‘(IV) promptly provide to the household 

member a written copy of the completed application, with instructions for a simple procedure for 

correcting any errors or omissions; 

‘‘(V) comply with paragraph (1)(B); 

‘‘(VI) satisfy all requirements for a signature 

on an application under this Act and other laws 

applicable to the supplemental nutrition assistance 

program, with the date on which the household 

member provides verbal assent considered as the 

date of application for all purposes; and 

‘‘(VII) comply with such other standards as 

the Secretary may establish.’’. 

SEC. 4120. PRIVACY PROTECTIONS. 

Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020(e)(8)) is amended— 

(1) in the matter preceding subparagraph (A)— 

(A) by striking ‘‘limit’’ and inserting ‘‘prohibit’’; and 

(B) by striking ‘‘to persons’’ and all that follows through 

‘‘State programs’’; 

(2) by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F), respectively; 

(3) by inserting before subparagraph (B) (as so redesignated) the following: 

‘‘(A) the safeguards shall permit— 

‘‘(i) the disclosure of such information to persons 

directly connected with the administration or enforcement of the provisions of this Act, regulations issued 

pursuant to this Act, Federal assistance programs, or 

federally-assisted State programs; and 
H. R. 2419—191 

‘‘(ii) the subsequent use of the information by persons described in clause (i) only for such administration 

or enforcement;’’; and 

(4) in subparagraph (F) (as so redesignated) by inserting 

‘‘or subsection (u)’’ before the semicolon at the end. 

SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY. 

Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2025) is amended by striking subsection (g) and inserting the following: 

‘‘(g) COST SHARING FOR COMPUTERIZATION.— 

‘‘(1) IN GENERAL.—Except as provided in paragraphs (2) 

and (3), the Secretary is authorized to pay to each State agency 

the amount provided under subsection (a)(6) for the costs 

incurred by the State agency in the planning, design, development, or installation of 1 or more automatic data processing 

and information retrieval systems that the Secretary determines— 

‘‘(A) would assist in meeting the requirements of this 

Act; 

‘‘(B) meet such conditions as the Secretary prescribes; 

‘‘(C) are likely to provide more efficient and effective 

administration of the supplemental nutrition assistance 

program; 

‘‘(D) would be compatible with other systems used in 

the administration of State programs, including the program funded under part A of title IV of the Social Security 

Act (42 U.S.C. 601 et seq.); 

‘‘(E) would be tested adequately before and after 

implementation, including through pilot projects in limited 

areas for major systems changes as determined under rules 

promulgated by the Secretary, data from which shall be 

thoroughly evaluated before the Secretary approves the 

system to be implemented more broadly; and 

‘‘(F) would be operated in accordance with an adequate 

plan for— 

‘‘(i) continuous updating to reflect changed policy 

and circumstances; and 

‘‘(ii) testing the effect of the system on access for 

eligible households and on payment accuracy. 

‘‘(2) LIMITATION.—The Secretary shall not make payments 

to a State agency under paragraph (1) to the extent that the 

State agency— 

‘‘(A) is reimbursed for the costs under any other Federal program; or 

‘‘(B) uses the systems for purposes not connected with 

the supplemental nutrition assistance program.’’. 

SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS. 

Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by striking 

‘‘to remain available until expended’’ and inserting ‘‘to remain available for 15 months’’. 
H. R. 2419—192 

PART IV—PROGRAM INTEGRITY 

SEC. 4131. ELIGIBILITY DISQUALIFICATION. 

Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2015) is amended by adding at the end the following: 

‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DESTROYING

FOOD AND COLLECTING DEPOSITS.—Subject to any requirements 

established by the Secretary, any person who has been found by 

a State or Federal court or administrative agency in a hearing 

under subsection (b) to have intentionally obtained cash by purchasing products with supplemental nutrition assistance program 

benefits that have containers that require return deposits, discarding the product, and returning the container for the deposit 

amount shall be ineligible for benefits under this Act for such 

period of time as the Secretary shall prescribe by regulation. 

‘‘(q) DISQUALIFICATION FOR SALE OF FOOD PURCHASED WITH

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS.—Subject to any requirements established by the Secretary, any person 

who has been found by a State or Federal court or administrative 

agency in a hearing under subsection (b) to have intentionally 

sold any food that was purchased using supplemental nutrition 

assistance program benefits shall be ineligible for benefits under 

this Act for such period of time as the Secretary shall prescribe 

by regulation.’’. 

SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 

STORES AND WHOLESALE FOOD CONCERNS. 

Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2021) is amended— 

(1) by striking the section designation and heading and 

all that follows through the end of subsection (a) and inserting 

the following: 

‘‘SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 

STORES AND WHOLESALE FOOD CONCERNS. 

‘‘(a) DISQUALIFICATION.— ‘‘(1) IN GENERAL.—An approved retail food store or wholesale food concern that violates a provision of this Act or a 

regulation under this Act may be— 

‘‘(A) disqualified for a specified period of time from 

further participation in the supplemental nutrition assistance program; ‘‘(B) assessed a civil penalty of up to $100,000 for 

each violation; or 

‘‘(C) both. 

‘‘(2) REGULATIONS.—Regulations promulgated under this 

Act shall provide criteria for the finding of a violation of, 

the suspension or disqualification of and the assessment of 

a civil penalty against a retail food store or wholesale food 

concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption 

data, or evidence obtained through a transaction report under 

an electronic benefit transfer system.’’; 

(2) in subsection (b)— 

(A) by striking ‘‘(b) Disqualification’’ and inserting the 

following: 
H. R. 2419—193 

‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to subsection (c), 

a disqualification’’; 

(B) in paragraph (1), by striking ‘‘of no less than six 

months nor more than five years’’ and inserting ‘‘not to 

exceed 5 years’’; 

(C) in paragraph (2), by striking ‘‘of no less than twelve 

months nor more than ten years’’ and inserting ‘‘not to 

exceed 10 years’’; 

(D) in paragraph (3)(B)— 

(i) by inserting ‘‘or a finding of the unauthorized 

redemption, use, transfer, acquisition, alteration, or 

possession of EBT cards’’ after ‘‘concern’’ the first place 

it appears; and 

(ii) by striking ‘‘civil money penalties’’ and 

inserting ‘‘civil penalties’’; and 

(E) by striking ‘‘civil money penalty’’ each place it 

appears and inserting ‘‘civil penalty’’; 

(3) in subsection (c)— 

(A) by striking ‘‘(c) The action’’ and inserting the following: 

‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICATION AND PEN- ALTY DETERMINATIONS.— ‘‘(1) CIVIL PENALTY.—In addition to a disqualification under 

this section, the Secretary may assess a civil penalty in an 

amount not to exceed $100,000 for each violation. 

‘‘(2) REVIEW.—The action’’; and 

(B) in paragraph (2) (as designated by subparagraph 

(A)), by striking ‘‘civil money penalty’’ and inserting ‘‘civil 

penalty’’; 

(4) in subsection (d)— 

(A) by striking ‘‘(d)’’ and all that follows through ‘‘. 

The Secretary shall’’ and inserting the following: 

‘‘(d) CONDITIONS OF AUTHORIZATION.— ‘‘(1) IN GENERAL.—As a condition of authorization to accept 

and redeem benefits, the Secretary may require a retail food 

store or wholesale food concern that, pursuant to subsection 

(a), has been disqualified for more than 180 days, or has been 

subjected to a civil penalty in lieu of a disqualification period 

of more than 180 days, to furnish a collateral bond or irrevocable letter of credit for a period of not more than 5 years 

to cover the value of benefits that the store or concern may 

in the future accept and redeem in violation of this Act. 

‘‘(2) COLLATERAL.—The Secretary also may require a retail 

food store or wholesale food concern that has been sanctioned 

for a violation and incurs a subsequent sanction regardless 

of the length of the disqualification period to submit a collateral 

bond or irrevocable letter of credit. 

‘‘(3) BOND REQUIREMENTS.—The Secretary shall’’; 

(B) by striking ‘‘If the Secretary finds’’ and inserting 

the following 

‘‘(4) FORFEITURE.—If the Secretary finds’’; and 

(C) by striking ‘‘Such store or concern’’ and inserting 

the following: 

‘‘(5) HEARING.—A store or concern described in paragraph 

(4)’’; 

(5) in subsection (e), by striking ‘‘civil money penalty’’ each 

place it appears and inserting ‘‘civil penalty’’; and 
H. R. 2419—194 

(6) by adding at the end the following: 

‘‘(h) FLAGRANT VIOLATIONS.— 

‘‘(1) IN GENERAL.—The Secretary, in consultation with the 

Inspector General of the Department of Agriculture, shall establish procedures under which the processing of program benefit 

redemptions for a retail food store or wholesale food concern 

may be immediately suspended pending administrative action 

to disqualify the retail food store or wholesale food concern. 

‘‘(2) REQUIREMENTS.—Under the procedures described in 

paragraph (1), if the Secretary, in consultation with the 

Inspector General, determines that a retail food store or wholesale food concern is engaged in flagrant violations of this Act 

(including regulations promulgated under this Act), unsettled 

program benefits that have been redeemed by the retail food 

store or wholesale food concern— 

‘‘(A) may be suspended; and 

‘‘(B)(i) if the program disqualification is upheld, may 

be subject to forfeiture pursuant to section 15(g); or 

‘‘(ii) if the program disqualification is not upheld, shall 

be released to the retail food store or wholesale food concern. 

‘‘(3) NO LIABILITY FOR INTEREST.—The Secretary shall not 

be liable for the value of any interest on funds suspended 

under this subsection.’’. 

SEC. 4133. MAJOR SYSTEMS FAILURES. 

Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2022(b)) is amended by adding at the end the following: 

‘‘(5) OVERISSUANCES CAUSED BY SYSTEMIC STATE ERRORS.— 

‘‘(A) IN GENERAL.—If the Secretary determines that 

a State agency overissued benefits to a substantial number 

of households in a fiscal year as a result of a major systemic 

error by the State agency, as defined by the Secretary, 

the Secretary may prohibit the State agency from collecting 

these overissuances from some or all households. 

‘‘(B) PROCEDURES.— 

‘‘(i) INFORMATION REPORTING BY STATES.—Every 

State agency shall provide to the Secretary all information requested by the Secretary concerning the issuance 

of benefits to households by the State agency in the 

applicable fiscal year. 

‘‘(ii) FINAL DETERMINATION.—After reviewing relevant information provided by a State agency, the Secretary shall make a final determination— 

‘‘(I) whether the State agency overissued benefits to a substantial number of households as a 

result of a systemic error in the applicable fiscal 

year; and 

‘‘(II) as to the amount of the overissuance in 

the applicable fiscal year for which the State 

agency is liable. 

‘‘(iii) ESTABLISHING A CLAIM.—Upon determining 

under clause (ii) that a State agency has overissued 

benefits to households due to a major systemic error 

determined under subparagraph (A), the Secretary 

shall establish a claim against the State agency equal 
H. R. 2419—195 

to the value of the overissuance caused by the systemic 

error. 

‘‘(iv) ADMINISTRATIVE AND JUDICIAL REVIEW.— Administrative and judicial review, as provided in section 14, shall apply to the final determinations by 

the Secretary under clause (ii). 

‘‘(v) REMISSION TO THE SECRETARY.— ‘‘(I) DETERMINATION NOT APPEALED.—If the 

determination of the Secretary under clause (ii) 

is not appealed, the State agency shall, as soon 

as practicable, remit to the Secretary the dollar 

amount specified in the claim under clause (iii). 

‘‘(II) DETERMINATION APPEALED.—If the determination of the Secretary under clause (ii) is 

appealed, upon completion of administrative and 

judicial review under clause (iv), and a finding 

of liability on the part of the State, the appealing 

State agency shall, as soon as practicable, remit 

to the Secretary a dollar amount subject to the 

finding made in the administrative and judicial 

review. 

‘‘(vi) ALTERNATIVE METHOD OF COLLECTION.— 

‘‘(I) IN GENERAL.—If a State agency fails to 

make a payment under clause (v) within a reasonable period of time, as determined by the Secretary, the Secretary may reduce any amount due 

to the State agency under any other provision 

of this Act by the amount due. 

‘‘(II) ACCRUAL OF INTEREST.—During the 

period of time determined by the Secretary to be 

reasonable under subclause (I), interest in the 

amount owed shall not accrue. 

‘‘(vii) LIMITATION.—Any liability amount established under section 16(c)(1)(C) shall be reduced by 

the amount of the claim established under this 

subparagraph.’’. 

PART V—MISCELLANEOUS 

SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION 

PROMOTION IN THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM. 

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2026) is amended by adding at the end the following: 

‘‘(k) PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION

PROMOTION IN THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall carry out, under 

such terms and conditions as the Secretary considers to be 

appropriate, pilot projects to develop and test methods— 

‘‘(A) of using the supplemental nutrition assistance 

program to improve the dietary and health status of households eligible for or participating in the supplemental nutrition assistance program; and 

‘‘(B) to reduce overweight, obesity (including childhood 

obesity), and associated co-morbidities in the United States. 

‘‘(2) GRANTS.— 
H. R. 2419—196 

‘‘(A) IN GENERAL.—In carrying out this subsection, the 

Secretary may enter into competitively awarded contracts 

or cooperative agreements with, or provide grants to, public 

or private organizations or agencies (as defined by the 

Secretary), for use in accordance with projects that meet 

the strategy goals of this subsection. 

‘‘(B) APPLICATION.—To be eligible to receive a contract, 

cooperative agreement, or grant under this paragraph, an 

organization shall submit to the Secretary an application 

at such time, in such manner, and containing such information as the Secretary may require. 

‘‘(C) SELECTION CRITERIA.—Pilot projects shall be evaluated against publicly disseminated criteria that may 

include— 

‘‘(i) identification of a low-income target audience 

that corresponds to individuals living in households 

with incomes at or below 185 percent of the poverty 

level; 

‘‘(ii) incorporation of a scientifically based strategy 

that is designed to improve diet quality through more 

healthful food purchases, preparation, or consumption; 

‘‘(iii) a commitment to a pilot project that allows 

for a rigorous outcome evaluation, including data 

collection; 

‘‘(iv) strategies to improve the nutritional value 

of food served during school hours and during afterschool hours; 

‘‘(v) innovative ways to provide significant improvement to the health and wellness of children; 

‘‘(vi) other criteria, as determined by the Secretary. 

‘‘(D) USE OF FUNDS.—Funds provided under this paragraph shall not be used for any project that limits the 

use of benefits under this Act. 

‘‘(3) PROJECTS.—Pilot projects carried out under paragraph 

(1) may include projects to determine whether healthier food 

purchases by and healthier diets among households participating in the supplemental nutrition assistance program result 

from projects that— 

‘‘(A) increase the supplemental nutrition assistance 

purchasing power of the participating households by providing increased supplemental nutrition assistance program benefit allotments to the participating households; 

‘‘(B) increase access to farmers markets by participating households through the electronic redemption of 

supplemental nutrition assistance program benefits at 

farmers’ markets; 

‘‘(C) provide incentives to authorized supplemental 

nutrition assistance program retailers to increase the availability of healthy foods to participating households; 

‘‘(D) subject authorized supplemental nutrition assistance program retailers to stricter retailer requirements 

with respect to carrying and stocking healthful foods; 

‘‘(E) provide incentives at the point of purchase to 

encourage households participating in the supplemental 

nutrition assistance program to purchase fruits, vegetables, 

or other healthful foods; or 
H. R. 2419—197 

‘‘(F) provide to participating households integrated 

communication and education programs, including the 

provision of funding for a portion of a school-based nutrition 

coordinator to implement a broad nutrition action plan 

and parent nutrition education programs in elementary 

schools, separately or in combination with pilot projects 

carried out under subparagraphs (A) through (E). 

‘‘(4) EVALUATION AND REPORTING.— 

‘‘(A) EVALUATION.— 

‘‘(i) INDEPENDENT EVALUATION.— 

‘‘(I) IN GENERAL.—The Secretary shall provide 

for an independent evaluation of projects selected 

under this subsection that measures the impact 

of the pilot program on health and nutrition as 

described in paragraph (1). 

‘‘(II) REQUIREMENT.—The independent evaluation under subclause (I) shall use rigorous methodologies, particularly random assignment or other 

methods that are capable of producing scientifically valid information regarding which activities 

are effective. 

‘‘(ii) COSTS.—The Secretary may use funds provided to carry out this section to pay costs associated 

with monitoring and evaluating each pilot project. 

‘‘(B) REPORTING.—Not later than 90 days after the 

last day of fiscal year 2009 and each fiscal year thereafter 

until the completion of the last evaluation under subparagraph (A), the Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the 

Senate a report that includes a description of— 

‘‘(i) the status of each pilot project; 

‘‘(ii) the results of the evaluation completed during 

the previous fiscal year; and 

‘‘(iii) to the maximum extent practicable— 

‘‘(I) the impact of the pilot project on appropriate health, nutrition, and associated behavioral 

outcomes among households participating in the 

pilot project; 

‘‘(II) baseline information relevant to the 

stated goals and desired outcomes of the pilot 

project; and 

‘‘(III) equivalent information about similar or 

identical measures among control or comparison 

groups that did not participate in the pilot project. 

‘‘(C) PUBLIC DISSEMINATION.—In addition to the 

reporting requirements under subparagraph (B), evaluation 

results shall be shared broadly to inform policy makers, 

service providers, other partners, and the public in order 

to promote wide use of successful strategies. 

‘‘(5) FUNDING.— 

‘‘(A) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated such sums as are necessary 

to carry out this section for each of fiscal years 2008 

through 2012. 
H. R. 2419—198 

‘‘(B) MANDATORY FUNDING.—Out of any funds made 

available under section 18, on October 1, 2008, the Secretary shall make available $20,000,000 to carry out a 

project described in paragraph (3)(E), to remain available 

until expended.’’. 

SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL 

NUTRITION ASSISTANCE FOR PUERTO RICO. 

(a) IN GENERAL.—The Secretary shall carry out a study of 

the feasibility and effects of including the Commonwealth of Puerto 

Rico in the definition of the term ‘‘State’’ under section 3 of the 

Food and Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing 

block grants under section 19 of that Act (7 U.S.C. 2028). 

(b) INCLUSIONS.—The study shall include— 

(1) an assessment of the administrative, financial management, and other changes that would be necessary for the 

Commonwealth to establish a comparable supplemental nutrition assistance program, including compliance with appropriate 

program rules under the Food and Nutrition Act of 2008 (7 

U.S.C. 2011 et seq.), such as— 

(A) benefit levels under section 3(u) of that Act (7 

U.S.C. 2012(u)); 

(B) income eligibility standards under sections 5(c) and 

6 of that Act (7 U.S.C. 2014(c), 2015); and 

(C) deduction levels under section 5(e) of that Act 

(7 U.S.C. 2014(e)); 

(2) an estimate of the impact on Federal and Commonwealth benefit and administrative costs; 

(3) an assessment of the impact of the program on lowincome Puerto Ricans, as compared to the program under section 19 of that Act (7 U.S.C. 2028); and 

(4) such other matters as the Secretary considers to be 

appropriate. 

(c) REPORT.—Not later than 2 years after the date of enactment 

of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate a report that 

describes the results of the study conducted under this section. 

(d) FUNDING.— 

(1) IN GENERAL.—On October 1, 2008, out of any funds 

in the Treasury not otherwise appropriated, the Secretary of 

the Treasury shall transfer to the Secretary to carry out this 

section $1,000,000, to remain available until expended. 

(2) RECEIPT AND ACCEPTANCE.—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this 

section the funds transferred under paragraph (1), without 

further appropriation. 

Subtitle B—Food Distribution Programs 

PART I—EMERGENCY FOOD ASSISTANCE 

PROGRAM 

SEC. 4201. EMERGENCY FOOD ASSISTANCE. 

(a) PURCHASE OF COMMODITIES.—Section 27(a) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by – 
H. R. 2419—199 

(1) by striking ‘‘(A) PURCHASE OF COMMODITIES’’ and all 

that follows through ‘‘$140,000,000 of’’ and inserting the following: 

‘‘(a) PURCHASE OF COMMODITIES.— 

‘‘(1) IN GENERAL.—From amounts made available to carry 

out this Act, for each of the fiscal years 2008 through 2012, 

the Secretary shall purchase a dollar amount described in paragraph (2) of’’; and 

(2) by adding at the end the following: 

‘‘(2) AMOUNTS.—The Secretary shall use to carry out paragraph (1)— 

‘‘(A) for fiscal year 2008, $190,000,000; 

‘‘(B) for fiscal year 2009, $250,000,000; and 

‘‘(C) for each of fiscal years 2010 through 2012, the 

dollar amount of commodities specified in subparagraph 

(B) adjusted by the percentage by which the thrifty food 

plan has been adjusted under section 3(u)(4) between June 

30, 2008, and June 30 of the immediately preceding fiscal 

year.’’. 

(b) STATE PLANS.—Section 202A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking subsection 

(a) and inserting the following: 

‘‘(a) PLANS.— ‘‘(1) IN GENERAL.—To receive commodities under this Act, 

a State shall submit to the Secretary an operation and administration plan for the provision of benefits under this Act. 

‘‘(2) UPDATES.—A State shall submit to the Secretary for 

approval any amendment to a plan submitted under paragraph 

(1) in any case in which the State proposes to make a change 

to the operation or administration of a program described in 

the plan.’’. 

(c) AUTHORIZATION AND APPROPRIATIONS.—Section 204(a)(1) of 

the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 

is amended in the first sentence— 

(1) by striking ‘‘$60,000,000’’ and inserting ‘‘$100,000,000’’; 

and 

(2) by inserting ‘‘and donated wild game’’ before the period 

at the end. 

SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS. 

The Emergency Food Assistance Act of 1983 is amended by 

inserting after section 208 (7 U.S.C. 7511) the following: 

‘‘SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS. 

‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 

‘eligible entity’ means an emergency feeding organization. 

‘‘(b) PROGRAM AUTHORIZED.— 

‘‘(1) IN GENERAL.—The Secretary shall use funds made 

available under subsection (d) to make grants to eligible entities 

to pay the costs of an activity described in subsection (c). 

‘‘(2) RURAL PREFERENCE.—The Secretary shall use not less 

than 50 percent of the funds described in paragraph (1) for 

a fiscal year to make grants to eligible entities that serve 

predominantly rural communities for the purposes of— 

‘‘(A) expanding the capacity and infrastructure of food 

banks, State-wide food bank associations, and food bank 

collaboratives that operate in rural areas; and 
H. R. 2419—200 

‘‘(B) improving the capacity of the food banks to procure, receive, store, distribute, track, and deliver timesensitive or perishable food products. 

‘‘(c) USE OF FUNDS.—An eligible entity shall use a grant 

received under this section for any fiscal year to carry out activities 

of the eligible entity, including— 

‘‘(1) the development and maintenance of a computerized 

system for the tracking of time-sensitive food products; 

‘‘(2) capital, infrastructure, and operating costs associated 

with the collection, storage, distribution, and transportation 

of time-sensitive and perishable food products; 

‘‘(3) improving the security and diversity of the emergency 

food distribution and recovery systems of the United States 

through the support of small or mid-size farms and ranches, 

fisheries, and aquaculture, and donations from local food producers and manufacturers to persons in need; 

‘‘(4) providing recovered foods to food banks and similar 

nonprofit emergency food providers to reduce hunger in the 

United States; 

‘‘(5) improving the identification of— 

‘‘(A) potential providers of donated foods; 

‘‘(B) potential nonprofit emergency food providers; and 

‘‘(C) persons in need of emergency food assistance in 

rural areas; and 

‘‘(6) constructing, expanding, or repairing a facility or equipment to support hunger relief agencies in the community. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $15,000,000 for each 

of fiscal years 2008 through 2012.’’. 

PART II—FOOD DISTRIBUTION PROGRAM ON 

INDIAN RESERVATIONS 

SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD 

PACKAGE. 

(a) IN GENERAL.—Section 4 of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2013) is amended by striking subsection (b) 

and inserting the following: 

‘‘(b) FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.— ‘‘(1) IN GENERAL.—Distribution of commodities, with or 

without the supplemental nutrition assistance program, shall 

be made whenever a request for concurrent or separate food 

program operations, respectively, is made by a tribal organization. 

‘‘(2) ADMINISTRATION.— ‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and 

(C), in the event of distribution on all or part of an Indian 

reservation, the appropriate agency of the State government in the area involved shall be responsible for the 

distribution. 

‘‘(B) ADMINISTRATION BY TRIBAL ORGANIZATION.—If the 

Secretary determines that a tribal organization is capable 

of effectively and efficiently administering a distribution 

described in paragraph (1), then the tribal organization 

shall administer the distribution. 

‘‘(C) PROHIBITION.—The Secretary shall not approve 

any plan for a distribution described in paragraph (1) that 
H. R. 2419—201 

permits any household on any Indian reservation to participate simultaneously in the supplemental nutrition assistance program and the program established under this subsection. 

‘‘(3) DISQUALIFIED PARTICIPANTS.—An individual who is disqualified from participation in the food distribution program 

on Indian reservations under this subsection is not eligible 

to participate in the supplemental nutrition assistance program 

under this Act for a period of time to be determined by the 

Secretary. 

‘‘(4) ADMINISTRATIVE COSTS.—The Secretary is authorized 

to pay such amounts for administrative costs and distribution 

costs on Indian reservations as the Secretary finds necessary 

for effective administration of such distribution by a State 

agency or tribal organization. 

‘‘(5) BISON MEAT.—Subject to the availability of appropriations to carry out this paragraph, the Secretary may purchase 

bison meat for recipients of food distributed under this subsection, including bison meat from— 

‘‘(A) Native American bison producers; and 

‘‘(B) producer–owned cooperatives of bison ranchers. 

‘‘(6) TRADITIONAL AND LOCALLY-GROWN FOOD FUND.— 

‘‘(A) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall establish a fund for use in 

purchasing traditional and locally-grown foods for recipients of food distributed under this subsection. 

‘‘(B) NATIVE AMERICAN PRODUCERS.—Where practicable, of the food provided under subparagraph (A), at 

least 50 percent shall be produced by Native American 

farmers, ranchers, and producers. 

‘‘(C) DEFINITION OF TRADITIONAL AND LOCALLY

GROWN.—The Secretary shall determine the definition of 

the term ‘traditional and locally-grown’ with respect to 

food distributed under this paragraph. 

‘‘(D) SURVEY.—In carrying out this paragraph, the Secretary shall— 

‘‘(i) survey participants of the food distribution program on Indian reservations established under this 

subsection to determine which traditional foods are 

most desired by those participants; and 

‘‘(ii) purchase or offer to purchase those traditional 

foods that may be procured cost-effectively. 

‘‘(E) REPORT.—Not later than 1 year after the date 

of enactment of this paragraph, and annually thereafter, 

the Secretary shall submit to the Committee on Agriculture 

of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate a report 

describing the activities carried out under this paragraph 

during the preceding calendar year. 

‘‘(F) AUTHORIZATION OF APPROPRIATIONS.—There is 

authorized to be appropriated to the Secretary to carry 

out this paragraph $5,000,000 for each of fiscal years 2008 

through 2012.’’. 

(b) FDPIR FOOD PACKAGE.—Not later than 180 days after 

the date of enactment of this Act, the Secretary shall submit to 

the Committee on Agriculture of the House of Representatives 
H. R. 2419—202 

and the Committee on Agriculture, Nutrition, and Forestry of the 

Senate a report that describes— 

(1) how the Secretary derives the process for determining 

the food package under the food distribution program on Indian 

reservations established under section 4(b) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2013(b)) (referred to in this 

subsection as the ‘‘food package’’); 

(2) the extent to which the food package— 

(A) addresses the nutritional needs of low-income 

Native Americans compared to the supplemental nutrition 

assistance program, particularly for very low-income households; 

(B) conforms (or fails to conform) to the 2005 Dietary 

Guidelines for Americans published under section 301 of 

the National Nutrition Monitoring and Related Research 

Act of 1990 (7 U.S.C. 5341); 

(C) addresses (or fails to address) the nutritional and 

health challenges that are specific to Native Americans; 

and 

(D) is limited by distribution costs or challenges in 

infrastructure; and 

(3)(A) any plans of the Secretary to revise and update 

the food package to conform with the most recent Dietary 

Guidelines for Americans, including any costs associated with 

the planned changes; or 

(B) if the Secretary does not plan changes to the food 

package, the rationale of the Secretary for retaining the food 

package. 

PART III—COMMODITY SUPPLEMENTAL FOOD 

PROGRAM 

SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 

Section 5 of the Agriculture and Consumer Protection Act of 

1973 (7 U.S.C. 612c note; Public Law 93–86) is amended by striking 

subsection (g) and inserting the following: 

‘‘(g) PROHIBITION.—Notwithstanding any other provision of law 

(including regulations), the Secretary may not require a State or 

local agency to prioritize assistance to a particular group of individuals that are— 

‘‘(1) low-income persons aged 60 and older; or 

‘‘(2) women, infants, and children.’’. 

PART IV—SENIOR FARMERS’ MARKET 

NUTRITION PROGRAM 

SEC. 4231. SENIORS FARMERS’ MARKET NUTRITION PROGRAM. 

Section 4402 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 3007) is amended— 

(1) in subsection (b)(1), by inserting ‘‘honey,’’ after ‘‘vegetables,’’; 

(2) by striking subsection (c) and inserting the following: 

‘‘(c) EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY FOR

OTHER PROGRAMS.—The value of any benefit provided to any eligible 

seniors farmers’ market nutrition program recipient under this 
H. R. 2419—203 

section shall not be considered to be income or resources for any 

purposes under any Federal, State, or local law.’’; and 

(3) by adding at the end the following: 

‘‘(d) PROHIBITION ON COLLECTION OF SALES TAX.—Each State 

shall ensure that no State or local tax is collected within the 

State on a purchase of food with a benefit distributed under the 

seniors farmers’ market nutrition program. 

‘‘(e) REGULATIONS.—The Secretary may promulgate such regulations as the Secretary considers to be necessary to carry out the 

seniors farmers’ market nutrition program.’’. 

Subtitle C—Child Nutrition and Related 

Programs 

SEC. 4301. STATE PERFORMANCE ON ENROLLING CHILDREN 

RECEIVING PROGRAM BENEFITS FOR FREE SCHOOL 

MEALS. 

(a) IN GENERAL.—Not later than December 31, 2008 and June 

30 of each year thereafter, the Secretary shall submit to the 

Committees on Agriculture and Education and Labor of the House 

of Representatives and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate a report that assesses the effectiveness 

of each State in enrolling school-aged children in households 

receiving program benefits under the Food and Nutrition Act of 

2008 (7 U.S.C. 2011 et seq.) (referred to in this section as ‘‘program 

benefits’’) for free school meals using direct certification. 

(b) SPECIFIC MEASURES.—The assessment of the Secretary of 

the performance of each State shall include— 

(1) an estimate of the number of school-aged children, 

by State, who were members of a household receiving program 

benefits at any time in July, August, or September of the 

prior year; 

(2) an estimate of the number of school-aged children, 

by State, who were directly certified as eligible for free lunches 

under the Richard B. Russell National School Lunch Act (42 

U.S.C. 1751 et seq.), based on receipt of program benefits, 

as of October 1 of the prior year; and 

(3) an estimate of the number of school-aged children, 

by State, who were members of a household receiving program 

benefits at any time in July, August, or September of the 

prior year who were not candidates for direct certification 

because on October 1 of the prior year the children attended 

a school operating under the special assistance provisions of 

section 11(a)(1) of the Richard B. Russell National School Lunch 

Act (42 U.S.C. 1759a(a)(1)) that is not operating in a base 

year. 

(c) PERFORMANCE INNOVATIONS.—The report of the Secretary 

shall describe best practices from States with the best performance 

or the most improved performance from the previous year. 

SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS. 

Section 9(j) of the Richard B. Russell National School Lunch 

Act (42 U.S.C. 1758(j)) is amended to read as follows: 

‘‘(j) PURCHASES OF LOCALLY PRODUCED FOODS.—The Secretary 

shall— 
H. R. 2419—204 

‘‘(1) encourage institutions receiving funds under this Act 

and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 

to purchase unprocessed agricultural products, both locally 

grown and locally raised, to the maximum extent practicable 

and appropriate; 

‘‘(2) advise institutions participating in a program described 

in paragraph (1) of the policy described in that paragraph 

and paragraph (3) and post information concerning the policy 

on the website maintained by the Secretary; and 

‘‘(3) allow institutions receiving funds under this Act and 

the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 

including the Department of Defense Fresh Fruit and Vegetable 

Program, to use a geographic preference for the procurement 

of unprocessed agricultural products, both locally grown and 

locally raised.’’. 

SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM 

REPLICABILITY. 

Section 18(h) of the Richard B. Russell National School Lunch 

Act (42 U.S.C. 1769(h)) is amended— 

(1) in paragraph (1)(C), by inserting ‘‘promotes healthy 

food education in the school curriculum and’’ before ‘‘incorporates’’; 

(2) by redesignating paragraph (2) as paragraph (4); and 

(3) by inserting after paragraph (1) the following: 

‘‘(2) ADMINISTRATION.—In providing grants under paragraph (1), the Secretary shall give priority to projects that 

can be replicated in schools. 

‘‘(3) PILOT PROGRAM FOR HIGH-POVERTY SCHOOLS.— 

‘‘(A) DEFINITIONS.—In this paragraph: 

‘‘(i) ELIGIBLE PROGRAM.—The term ‘eligible program’ means— 

‘‘(I) a school-based program with hands-on 

vegetable gardening and nutrition education that 

is incorporated into the curriculum for 1 or more 

grades at 2 or more eligible schools; or 

‘‘(II) a community-based summer program 

with hands-on vegetable gardening and nutrition 

education that is part of, or coordinated with, a 

summer enrichment program at 2 or more eligible 

schools. 

‘‘(ii) ELIGIBLE SCHOOL.—The term ‘eligible school’ 

means a public school, at least 50 percent of the students of which are eligible for free or reduced price 

meals under this Act. 

‘‘(B) ESTABLISHMENT.—The Secretary shall carry out 

a pilot program under which the Secretary shall provide 

to nonprofit organizations or public entities in not more 

than 5 States grants to develop and run, through eligible 

programs, community gardens at eligible schools in the 

States that would— 

‘‘(i) be planted, cared for, and harvested by students at the eligible schools; and 

‘‘(ii) teach the students participating in the community gardens about agriculture production practices and 

diet. 
H. R. 2419—205 

‘‘(C) PRIORITY STATES.—Of the States in which grantees 

under this paragraph are located— 

‘‘(i) at least 1 State shall be among the 15 largest 

States, as determined by the Secretary; 

‘‘(ii) at least 1 State shall be among the 16th 

to 30th largest States, as determined by the Secretary; 

and 

‘‘(iii) at least 1 State shall be a State that is 

not described in clause (i) or (ii). 

‘‘(D) USE OF PRODUCE.—Produce from a community 

garden provided a grant under this paragraph may be— 

‘‘(i) used to supplement food provided at the eligible 

school; 

‘‘(ii) distributed to students to bring home to the 

families of the students; or 

‘‘(iii) donated to a local food bank or senior center 

nutrition program. 

‘‘(E) NO COST-SHARING REQUIREMENT.—A nonprofit 

organization or public entity that receives a grant under 

this paragraph shall not be required to share the cost 

of carrying out the activities assisted under this paragraph. 

‘‘(F) EVALUATION.—A nonprofit organization or public 

entity that receives a grant under this paragraph shall 

be required to cooperate in an evaluation in accordance 

with paragraph (1)(H).’’. 

SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM. 

(a) PROGRAM.— 

(1) IN GENERAL.—The Richard B. Russell National School 

Lunch Act is amended by inserting after section 18 (42 U.S.C. 

1769) the following: 

‘‘SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM. 

‘‘(a) IN GENERAL.—For the school year beginning July 2008 

and each subsequent school year, the Secretary shall provide grants 

to States to carry out a program to make free fresh fruits and 

vegetables available in elementary schools (referred to in this section as the ‘program’). 

‘‘(b) PROGRAM.—A school participating in the program shall 

make free fresh fruits and vegetables available to students throughout the school day (or at such other times as are considered appropriate by the Secretary) in 1 or more areas designated by the 

school. 

‘‘(c) FUNDING TO STATES.— 

‘‘(1) MINIMUM GRANT.—Except as provided in subsection 

(i)(2), the Secretary shall provide to each of the 50 States 

and the District of Columbia an annual grant in an amount 

equal to 1 percent of the funds made available for a year 

to carry out the program. 

‘‘(2) ADDITIONAL FUNDING.—Of the funds remaining after 

grants are made under paragraph (1), the Secretary shall allocate additional funds to each State that is operating a school 

lunch program under section 4 based on the proportion that— 

‘‘(A) the population of the State; bears to 

‘‘(B) the population of the United States. 

‘‘(d) SELECTION OF SCHOOLS.— 
H. R. 2419—206 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2) 

of this subsection and section 4304(a)(2) of the Food, Conservation, and Energy Act of 2008, each year, in selecting schools 

to participate in the program, each State shall— 

‘‘(A) ensure that each school chosen to participate in 

the program is a school— 

‘‘(i) in which not less than 50 percent of the students are eligible for free or reduced price meals under 

this Act; and 

‘‘(ii) that submits an application in accordance with 

subparagraph (D); 

‘‘(B) to the maximum extent practicable, give the 

highest priority to schools with the highest proportion of 

children who are eligible for free or reduced price meals 

under this Act; 

‘‘(C) ensure that each school selected is an elementary 

school (as defined in section 9101 of the Elementary and 

Secondary Education Act of 1965 (20 U.S.C. 7801)); 

‘‘(D) solicit applications from interested schools that 

include— 

‘‘(i) information pertaining to the percentage of 

students enrolled in the school submitting the application who are eligible for free or reduced price school 

lunches under this Act; 

‘‘(ii) a certification of support for participation in 

the program signed by the school food manager, the 

school principal, and the district superintendent (or 

equivalent positions, as determined by the school); 

‘‘(iii) a plan for implementation of the program, 

including efforts to integrate activities carried out 

under this section with other efforts to promote sound 

health and nutrition, reduce overweight and obesity, 

or promote physical activity; and 

‘‘(iv) such other information as may be requested 

by the Secretary; and 

‘‘(E) encourage applicants to submit a plan for 

implementation of the program that includes a partnership 

with 1 or more entities that will provide non-Federal 

resources (including entities representing the fruit and 

vegetable industry). 

‘‘(2) EXCEPTION.—Clause (i) of paragraph (1)(A) shall not 

apply to a State if all schools that meet the requirements 

of that clause have been selected and the State does not have 

a sufficient number of additional schools that meet the requirement of that clause. 

‘‘(3) OUTREACH TO LOW-INCOME SCHOOLS.— 

‘‘(A) IN GENERAL.—Prior to making decisions regarding 

school participation in the program, a State agency shall 

inform the schools within the State with the highest proportion of free and reduced price meal eligibility, including 

Native American schools, of the eligibility of the schools 

for the program with respect to priority granted to schools 

with the highest proportion of free and reduced price eligibility under paragraph (1)(B). 

‘‘(B) REQUIREMENT.—In providing information to 

schools in accordance with subparagraph (A), a State 
H. R. 2419—207 

agency shall inform the schools that would likely be chosen 

to participate in the program under paragraph (1)(B). 

‘‘(e) NOTICE OF AVAILABILITY.—If selected to participate in the 

program, a school shall widely publicize within the school the availability of free fresh fruits and vegetables under the program. 

‘‘(f) PER-STUDENT GRANT.—The per-student grant provided to 

a school under this section shall be— 

‘‘(1) determined by a State agency; and 

‘‘(2) not less than $50, nor more than $75. 

‘‘(g) LIMITATION.—To the maximum extent practicable, each 

State agency shall ensure that in making the fruits and vegetables 

provided under this section available to students, schools offer 

the fruits and vegetables separately from meals otherwise provided 

at the school under this Act or the Child Nutrition Act of 1966 

(42 U.S.C. 1771 et seq.). 

‘‘(h) EVALUATION AND REPORTS.— ‘‘(1) IN GENERAL.—The Secretary shall conduct an evaluation of the program, including a determination as to whether 

children experienced, as a result of participating in the program— 

‘‘(A) increased consumption of fruits and vegetables; 

‘‘(B) other dietary changes, such as decreased consumption of less nutritious foods; and 

‘‘(C) such other outcomes as are considered appropriate 

by the Secretary. 

‘‘(2) REPORT.—Not later than September 30, 2011, the Secretary shall submit to the Committee on Education and Labor 

of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that 

describes the results of the evaluation under paragraph (1). 

‘‘(i) FUNDING.— ‘‘(1) IN GENERAL.—Out of the funds made available under 

subsection (b)(2)(A) of section 14222 of the Food, Conservation, 

and Energy Act of 2008, the Secretary shall use the following 

amounts to carry out this section: ‘‘(A) On October 1, 2008, $40,000,000. 

‘‘(B) On July 1, 2009, $65,000,000. 

‘‘(C) On July 1, 2010, $101,000,000. 

‘‘(D) On July 1, 2011, $150,000,000. 

‘‘(E) On July 1, 2012, and each July 1 thereafter, 

the amount made available for the preceding fiscal year, 

as adjusted to reflect changes for the 12-month period 

ending the preceding April 30 in the Consumer Price Index 

for All Urban Consumers published by the Bureau of Labor 

Statistics of the Department of Labor, for items other than 

food. 

‘‘(2) MAINTENANCE OF EXISTING FUNDING.—In allocating 

funding made available under paragraph (1) among the States 

in accordance with subsection (c), the Secretary shall ensure 

that each State that received funding under section 18(f) on 

the day before the date of enactment of the Food, Conservation, 

and Energy Act of 2008 shall continue to receive sufficient 

funding under this section to maintain the caseload level of 

the State under that section as in effect on that date. 

‘‘(3) EVALUATION FUNDING.—On October 1, 2008, out of 

any funds made available under subsection (b)(2)(A) of section 

14222 of the Food, Conservation, and Energy Act of 2008, 
H. R. 2419—208 

the Secretary shall use to carry out the evaluation required 

under subsection (h), $3,000,000, to remain available for obligation until September 30, 2010. 

‘‘(4) RECEIPT AND ACCEPTANCE.—The Secretary shall be 

entitled to receive, shall accept, and shall use to carry out 

this section any funds transferred for that purpose, without 

further appropriation. 

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

any other amounts made available to carry out this section, 

there are authorized to be appropriated such sums as are 

necessary to expand the program established under this section. 

‘‘(6) ADMINISTRATIVE COSTS.— 

‘‘(A) IN GENERAL.—Of funds made available to carry 

out this section for a fiscal year, the Secretary may use 

not more than $500,000 for the administrative costs of 

carrying out the program. 

‘‘(B) RESERVATION OF FUNDS.—The Secretary shall 

allow each State to reserve such funding as the Secretary 

determines to be necessary to administer the program in 

the State (with adjustments for the size of the State and 

the grant amount), but not to exceed the amount required 

to pay the costs of 1 full-time coordinator for the program 

in the State. 

‘‘(7) REALLOCATION.— 

‘‘(A) AMONG STATES.—The Secretary may reallocate any 

amounts made available to carry out this section that are 

not obligated or expended by a date determined by the 

Secretary. 

‘‘(B) WITHIN STATES.—A State that receives a grant 

under this section may reallocate any amounts made available under the grant that are not obligated or expended 

by a date determined by the Secretary.’’. 

(2) TRANSITION OF EXISTING SCHOOLS.— 

(A) EXISTING SECONDARY SCHOOLS.—Section 19(d)(1)(C) 

of the Richard B. Russell National School Lunch Act (as 

amended by paragraph (1)) may be waived by a State 

until July 1, 2010, for each secondary school in the State 

that has been awarded funding under section 18(f) of that 

Act (42 U.S.C. 1769(f)) for the school year beginning July 

1, 2008. 

(B) SCHOOL YEAR BEGINNING JULY 1, 2008.—To facilitate 

transition from the program authorized under section 18(f) 

of the Richard B. Russell National School Lunch Act (42 

U.S.C. 1769(f)) (as in effect on the day before the date 

of enactment of this Act) to the program established under 

section 19 of that Act (as amended by paragraph (1))— 

(i) for the school year beginning July 1, 2008, 

the Secretary may permit any school selected for 

participation under section 18(f) of that Act (42 U.S.C. 

1769(f)) for that school year to continue to participate 

under section 19 of that Act until the end of that 

school year; and 

(ii) funds made available under that Act for fiscal 

year 2009 may be used to support the participation 

of any schools selected to participate in the program 

authorized under section 18(f) of that Act (42 U.S.C. 
H. R. 2419—209 

1769(f)) (as in effect on the day before the date of 

enactment of this Act). 

(b) CONFORMING AMENDMENTS.—Section 18 of the Richard B. 

Russell National School Lunch Act (42 U.S.C. 1769) is amended— 

(1) by striking subsection (f); and 

(2) by redesignating subsections (g) through (j) as subsections (f) through (i), respectively. 

SEC. 4305. WHOLE GRAIN PRODUCTS. 

(a) PURPOSE.—The purpose of this section is to encourage 

greater awareness and interest in the number and variety of whole 

grain products available to schoolchildren, as recommended by the 

2005 Dietary Guidelines for Americans. 

(b) DEFINITION OF ELIGIBLE WHOLE GRAINS AND WHOLE GRAIN

PRODUCTS.—In this section, the terms ‘‘whole grains’’ and ‘‘whole 

grain products’’ have the meaning given the terms by the Food 

and Nutrition Service in the HealthierUS School Challenge. 

(c) PURCHASE OF WHOLE GRAINS AND WHOLE GRAIN PRODUCTS.—In addition to the commodities delivered under section 6 

of the Richard B. Russell National School Lunch Act (42 U.S.C. 

1755), the Secretary shall purchase whole grains and whole grain 

products for use in— 

(1) the school lunch program established under the Richard 

B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); 

and 

(2) the school breakfast program established by section 

4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). 

(d) EVALUATION.—Not later than September 30, 2011, the Secretary shall conduct an evaluation of the activities conducted under 

subsection (c) that includes— 

(1) an evaluation of whether children participating in the 

school lunch and breakfast programs increased their consumption of whole grains; 

(2) an evaluation of which whole grains and whole grain 

products are most acceptable for use in the school lunch and 

breakfast programs; 

(3) any recommendations of the Secretary regarding the 

integration of whole grain products in the school lunch and 

breakfast programs; and 

(4) an evaluation of any other outcomes determined to 

be appropriate by the Secretary. 

(e) REPORT.—As soon as practicable after the completion of 

the evaluation under subsection (d), the Secretary shall submit 

to the Committee on Agriculture, Nutrition, and Forestry of the 

Senate and the Committee on Education and Labor of the House 

of Representative a report describing the results of the evaluation. 

SEC. 4306. BUY AMERICAN REQUIREMENTS. 

(a) FINDINGS.—The Congress finds the following: 

(1) Federal law requires that commodities and products 

purchased with Federal funds be, to the extent practicable, 

of domestic origin. 

(2) Federal Buy American statutory requirements seek to 

ensure that purchases made with Federal funds benefit 

domestic producers. 

(3) The Richard B. Russell National School Lunch Act 

(42 U.S.C. 1751 et seq.) requires the use of domestic food 
H. R. 2419—210 

products for all meals served under the program, including 

food products purchased with local funds. 

(b) BUY AMERICAN STATUTORY REQUIREMENTS.—The Department of Agriculture should undertake training, guidance, and 

enforcement of the various current Buy American statutory requirements and regulations, including those of the Richard B. Russell 

National School Lunch Act (42 U.S.C. 1751 et seq.). 

SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES. 

(a) IN GENERAL.—For fiscal year 2009, the Secretary shall 

carry out a nationally representative survey of the foods purchased 

during the most recent school year for which data is available 

by school authorities participating in the school lunch program 

established under the Richard B. Russell National School Lunch 

Act (42 U.S.C. 1751 et seq.). 

(b) REPORT.— (1) IN GENERAL.—On completion of the survey, the Secretary shall submit to the Committees on Agriculture and Education and Labor of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the 

Senate a report that describes the results of the survey. 

(2) INTERIM REQUIREMENT.—If the initial report required 

under paragraph (1) is not submitted to the Committees 

referred to in that paragraph by June 30, 2009, the Secretary 

shall submit to the Committees an interim report that describes 

the relevant survey data, or a sample of such data, available 

to the Secretary as of that date. 

(c) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section not more 

than $3,000,000. 

Subtitle D—Miscellaneous 

SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 

LELAND INTERNATIONAL HUNGER FELLOWS. 

Section 4404 of the Farm Security and Rural Investment Act 

of 2002 (2 U.S.C. 1161) is amended to read as follows: 

‘‘SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 

LELAND INTERNATIONAL HUNGER FELLOWS. 

‘‘(a) SHORT TITLE.—This section may be cited as the ‘Bill 

Emerson National Hunger Fellows and Mickey Leland International 

Hunger Fellows Program Act of 2008’. 

‘‘(b) DEFINITIONS.—In this subsection: 

‘‘(1) DIRECTOR.—The term ‘Director’ means the head of 

the Congressional Hunger Center. 

‘‘(2) FELLOW.—The term ‘fellow’ means— 

‘‘(A) a Bill Emerson Hunger Fellow; or 

‘‘(B) Mickey Leland Hunger Fellow. 

‘‘(3) FELLOWSHIP PROGRAMS.—The term ‘Fellowship Programs’ means the Bill Emerson National Hunger Fellowship 

Program and the Mickey Leland International Hunger Fellowship Program established under subsection (c)(1). 

‘‘(c) FELLOWSHIP PROGRAMS.— 
H. R. 2419—211 

‘‘(1) IN GENERAL.—There is established the Bill Emerson 

National Hunger Fellowship Program and the Mickey Leland 

International Hunger Fellowship Program. 

‘‘(2) PURPOSES.— 

‘‘(A) IN GENERAL.—The purposes of the Fellowship Programs are— 

‘‘(i) to encourage future leaders of the United 

States— 

‘‘(I) to pursue careers in humanitarian and 

public service; 

‘‘(II) to recognize the needs of low-income 

people and hungry people; 

‘‘(III) to provide assistance to people in need; 

and 

‘‘(IV) to seek public policy solutions to the 

challenges of hunger and poverty; 

‘‘(ii) to provide training and development 

opportunities for such leaders through placement in 

programs operated by appropriate organizations or 

entities; and 

‘‘(iii) to increase awareness of the importance of 

public service. 

‘‘(B) BILL EMERSON HUNGER FELLOWSHIP PROGRAM.— The purpose of the Bill Emerson Hunger Fellowship Program is to address hunger and poverty in the United States. 

‘‘(C) MICKEY LELAND HUNGER FELLOWSHIP PROGRAM.— The purpose of the Mickey Leland Hunger Fellowship Program is to address international hunger and other humanitarian needs. 

‘‘(3) ADMINISTRATION.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary shall offer to provide a grant to the Congressional 

Hunger Center to administer the Fellowship Programs. 

‘‘(B) TERMS OF GRANT.—The terms of the grant provided under subparagraph (A), including the length of the 

grant and provisions for the alteration or termination of 

the grant, shall be determined by the Secretary in accordance with this section. 

‘‘(d) FELLOWSHIPS.— 

‘‘(1) IN GENERAL.—The Director shall make available Bill 

Emerson Hunger Fellowships and Mickey Leland Hunger 

Fellowships in accordance with this subsection. 

‘‘(2) CURRICULUM.— 

‘‘(A) IN GENERAL.—The Fellowship Programs shall provide experience and training to develop the skills necessary 

to train fellows to carry out the purposes described in 

subsection (c)(2), including— 

‘‘(i) training in direct service programs for the 

hungry and other anti-hunger programs in conjunction 

with community-based organizations through a program of field placement; and 

‘‘(ii) providing experience in policy development 

through placement in a governmental entity or nongovernmental, nonprofit, or private sector organization. 

‘‘(B) WORK PLAN.—To carry out subparagraph (A) and 

assist in the evaluation of the fellowships under paragraph 

(6), the Director shall, for each fellow, approve a work 
H. R. 2419—212 

plan that identifies the target objectives for the fellow 

in the fellowship, including specific duties and responsibilities relating to those objectives. 

‘‘(3) PERIOD OF FELLOWSHIP.— 

‘‘(A) BILL EMERSON HUNGER FELLOW.—A Bill Emerson 

Hunger Fellowship awarded under this section shall be 

for not more than 15 months. 

‘‘(B) MICKEY LELAND HUNGER FELLOW.—A Mickey 

Leland Hunger Fellowship awarded under this section shall 

be for not more than 2 years. 

‘‘(4) SELECTION OF FELLOWS.— 

‘‘(A) IN GENERAL.—Fellowships shall be awarded pursuant to a nationwide competition established by the Director. 

‘‘(B) QUALIFICATIONS.—A successful program applicant 

shall be an individual who has demonstrated— 

‘‘(i) an intent to pursue a career in humanitarian 

services and outstanding potential for such a career; 

‘‘(ii) leadership potential or actual leadership 

experience; 

‘‘(iii) diverse life experience; 

‘‘(iv) proficient writing and speaking skills; 

‘‘(v) an ability to live in poor or diverse communities; and 

‘‘(vi) such other attributes as are considered to 

be appropriate by the Director. 

‘‘(5) AMOUNT OF AWARD.— ‘‘(A) IN GENERAL.—A fellow shall receive— 

‘‘(i) a living allowance during the term of the 

Fellowship; and 

‘‘(ii) subject to subparagraph (B), an end-of-service 

award. 

‘‘(B) REQUIREMENT FOR SUCCESSFUL COMPLETION OF

FELLOWSHIP.—Each fellow shall be entitled to receive an 

end-of-service award at an appropriate rate for each month 

of satisfactory service completed, as determined by the 

Director. 

‘‘(C) TERMS OF FELLOWSHIP.—A fellow shall not be 

considered an employee of— 

‘‘(i) the Department of Agriculture; 

‘‘(ii) the Congressional Hunger Center; or 

‘‘(iii) a host agency in the field or policy placement 

of the fellow. 

‘‘(D) RECOGNITION OF FELLOWSHIP AWARD.— 

‘‘(i) EMERSON FELLOW.—An individual awarded a 

fellowship from the Bill Emerson Hunger Fellowship 

shall be known as an ‘Emerson Fellow’. 

‘‘(ii) LELAND FELLOW.—An individual awarded a 

fellowship from the Mickey Leland Hunger Fellowship 

shall be known as a ‘Leland Fellow’. 

‘‘(6) EVALUATIONS AND AUDITS.—Under terms stipulated 

in the contract entered into under subsection (c)(3), the Director 

shall— 

‘‘(A) conduct periodic evaluations of the Fellowship Programs; and 

‘‘(B) arrange for annual independent financial audits 

of expenditures under the Fellowship Programs. 

‘‘(e) AUTHORITY.— 
H. R. 2419—213 

‘‘(1) IN GENERAL.—Subject to paragraph (2), in carrying 

out this section, the Director may solicit, accept, use, and 

dispose of gifts, bequests, or devises of services or property, 

both real and personal, for the purpose of facilitating the work 

of the Fellowship Programs. 

‘‘(2) LIMITATION.—Gifts, bequests, or devises of money and 

proceeds from sales of other property received as gifts, bequests, 

or devises shall be used exclusively for the purposes of the 

Fellowship Programs. 

‘‘(f) REPORT.—The Director shall annually submit to the Secretary of Agriculture, the Committee on Agriculture of the House 

of Representatives, and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate a report that— 

‘‘(1) describes the activities and expenditures of the Fellowship Programs during the preceding fiscal year, including 

expenditures made from funds made available under subsection 

(g); and 

‘‘(2) includes the results of evaluations and audits required 

by subsection (d). 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary such sums as are necessary 

to carry out this section, to remain available until expended.’’. 

SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2034) is amended— 

(1) by striking subsection (a) and inserting the following: 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) COMMUNITY FOOD PROJECT.—In this section, the term 

‘community food project’ means a community-based project 

that— 

‘‘(A) requires a 1-time contribution of Federal assistance to become self-sustaining; and 

‘‘(B) is designed— 

‘‘(i)(I) to meet the food needs of low-income individuals; 

‘‘(II) to increase the self-reliance of communities 

in providing for the food needs of the communities; 

and 

‘‘(III) to promote comprehensive responses to local 

food, farm, and nutrition issues; or 

‘‘(ii) to meet specific State, local, or neighborhood 

food and agricultural needs, including needs relating 

to— 

‘‘(I) infrastructure improvement and development; 

‘‘(II) planning for long-term solutions; or 

‘‘(III) the creation of innovative marketing 

activities that mutually benefit agricultural producers and low-income consumers. 

‘‘(2) CENTER.—The term ‘Center’ means the healthy urban 

food enterprise development center established under subsection (h). 

‘‘(3) UNDERSERVED COMMUNITY.—The term ‘underserved 

community’ means a community (including an urban or rural 

community or an Indian tribe) that, as determined by the 

Secretary, has— 
H. R. 2419—214 

‘‘(A) limited access to affordable, healthy foods, 

including fresh fruits and vegetables; 

‘‘(B) a high incidence of a diet-related disease (including 

obesity) as compared to the national average; 

‘‘(C) a high rate of hunger or food insecurity; or 

‘‘(D) severe or persistent poverty.’’; 

(2) by redesignating subsection (h) as subsection (i); and 

(3) by inserting after subsection (g) the following: 

‘‘(h) HEALTHY URBAN FOOD ENTERPRISE DEVELOPMENT

CENTER.— 

‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In this subsection, 

the term ‘eligible entity’ means— 

‘‘(A) a nonprofit organization; 

‘‘(B) a cooperative; 

‘‘(C) a commercial entity; 

‘‘(D) an agricultural producer; 

‘‘(E) an academic institution; 

‘‘(F) an individual; and 

‘‘(G) such other entities as the Secretary may designate. 

‘‘(2) ESTABLISHMENT.—The Secretary shall offer to provide 

a grant to a nonprofit organization to establish and support 

a healthy urban food enterprise development center to carry 

out the purpose described in paragraph (3). 

‘‘(3) PURPOSE.—The purpose of the Center is to increase 

access to healthy affordable foods, including locally produced 

agricultural products, to underserved communities. 

‘‘(4) ACTIVITIES.— 

‘‘(A) TECHNICAL ASSISTANCE AND INFORMATION.—The 

Center shall collect, develop, and provide technical assistance and information to small and medium-sized agricultural producers, food wholesalers and retailers, schools, 

and other individuals and entities regarding best practices 

and the availability of assistance for aggregating, storing, 

processing, and marketing locally produced agricultural 

products and increasing the availability of such products 

in underserved communities. 

‘‘(B) AUTHORITY TO SUBGRANT.—The Center may provide subgrants to eligible entities— 

‘‘(i) to carry out feasibility studies to establish 

businesses for the purpose described in paragraph (3); 

and 

‘‘(ii) to establish and otherwise assist enterprises 

that process, distribute, aggregate, store, and market 

healthy affordable foods. 

‘‘(5) PRIORITY.—In providing technical assistance and 

grants under paragraph (4), the Center shall give priority to 

applications that include projects— 

‘‘(A) to benefit underserved communities; and 

‘‘(B) to develop market opportunities for small and 

mid-sized farm and ranch operations. 

‘‘(6) REPORT.—For each fiscal year for which the nonprofit 

organization described in paragraph (2) receives funds, the 

organization shall submit to the Secretary a report describing 

the activities carried out in the preceding fiscal year, 

including— 

‘‘(A) a description of technical assistance provided by 

the Center; 
H. R. 2419—215 

‘‘(B) the total number and a description of the subgrants provided under paragraph (4)(B); 

‘‘(C) a complete listing of cases in which the activities 

of the Center have resulted in increased access to healthy, 

affordable foods, such as fresh fruit and vegetables, particularly for school-aged children and individuals in low-income 

communities; and 

‘‘(D) a determination of whether the activities identified 

in subparagraph (C) are sustained during the years following the initial provision of technical assistance and subgrants under this section. 

‘‘(7) COMPETITIVE AWARD PROCESS.—The Secretary shall 

use a competitive process to award funds to establish the 

Center. 

‘‘(8) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more 

than 10 percent of the total amount allocated for this subsection 

in a given fiscal year may be used for administrative expenses. 

‘‘(9) FUNDING.— ‘‘(A) IN GENERAL.—Out of any funds in the Treasury 

not otherwise appropriated, the Secretary of the Treasury 

shall transfer to the Secretary to carry out this subsection 

$1,000,000 for each of fiscal years 2009 through 2011. 

‘‘(B) ADDITIONAL FUNDING.—There is authorized to be 

appropriated $2,000,000 to carry out this subsection for 

fiscal year 2012.’’. 

SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH 

ACTIVITIES. 

The Secretary and the Secretary of Health and Human Services 

shall continue to provide jointly for national nutrition monitoring 

and related research activities carried out as of the date of enactment of this Act— 

(1) to collect continuous dietary, health, physical activity, 

and diet and health knowledge data on a nationally representative sample; 

(2) to periodically collect data on special at-risk populations, 

as identified by the Secretaries; 

(3) to distribute information on health, nutrition, the 

environment, and physical activity to the public in a timely 

fashion; 

(4) to analyze new data that becomes available; 

(5) to continuously update food composition tables; and 

(6) to research and develop data collection methods and 

standards. 

SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETABLES, AND NUTS TO SUPPORT DOMESTIC NUTRITION 

ASSISTANCE PROGRAMS. 

(a) FUNDING FOR ADDITIONAL PURCHASES OF FRUITS, VEGETA- BLES, AND NUTS.—In addition to the purchases of fruits, vegetables, 

and nuts required by section 10603 of the Farm Security and 

Rural Investment Act of 2002 (7 U.S.C. 612c–4), the Secretary 

of Agriculture shall purchase fruits, vegetables, and nuts for the 

purpose of providing nutritious foods for use in domestic nutrition 

assistance programs, using, of the funds made available under 

section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), the 

following amounts: 

(1) $190,000,000 for fiscal year 2008. 
H. R. 2419—216 

(2) $193,000,000 for fiscal year 2009. 

(3) $199,000,000 for fiscal year 2010. 

(4) $203,000,000 for fiscal year 2011. 

(5) $206,000,000 for fiscal year 2012 and each fiscal year 

thereafter. 

(b) FORM OF PURCHASES.—Fruits, vegetables, and nuts may 

be purchased under this section in the form of frozen, canned, 

dried, or fresh fruits, vegetables, and nuts. 

(c) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—Section 10603 of 

the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

612c–4) is amended by striking subsection (b) and inserting the 

following: 

‘‘(b) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—The Secretary 

of Agriculture shall purchase fresh fruits and vegetables for distribution to schools and service institutions in accordance with 

section 6(a) of the Richard B. Russell National School Lunch Act 

(42 U.S.C. 1755(a)) using, of the amount specified in subsection 

(a), not less than $50,000,000 for each of fiscal years 2008 through 

2012.’’. 

SEC. 4405. HUNGER-FREE COMMUNITIES. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a 

public food program service provider or nonprofit organization, 

including an emergency feeding organization, that has collaborated, or will collaborate, with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal. 

(2) EMERGENCY FEEDING ORGANIZATION.—The term ‘‘emergency feeding organization’’ has the meaning given the term 

in section 201A of the Emergency Food Assistance Act of 1983 

(7 U.S.C. 7501). 

(3) HUNGER-FREE COMMUNITIES GOAL.—The term ‘‘hungerfree communities goal’’ means any of the 14 goals described 

in the H. Con. Res. 302 (102nd Congress). 

(b) HUNGER-FREE COMMUNITIES COLLABORATIVE GRANTS.— 

(1) PROGRAM.— 

(A) IN GENERAL.—The Secretary shall use not more 

than 50 percent of any funds made available under subsection (e) to make grants to eligible entities to pay the 

Federal share of the costs of an activity described in paragraph (2). 

(B) FEDERAL SHARE.—The Federal share of the cost 

of carrying out an activity under this subsection shall not 

exceed 80 percent. 

(C) NON-FEDERAL SHARE.— 

(i) CALCULATION.—The non-Federal share of the 

cost of an activity under this subsection may be provided in cash or fairly evaluated in-kind contributions, 

including facilities, equipment, or services. 

(ii) SOURCES.—Any entity may provide the nonFederal share of the cost of an activity under this 

subsection through a State government, a local government, or a private source. 
H. R. 2419—217 

(2) USE OF FUNDS.—An eligible entity in a community 

shall use a grant received under this subsection for any fiscal 

year for hunger relief activities, including— 

(A) meeting the immediate needs of people who experience hunger in the community served by the eligible entity 

by— 

(i) distributing food; 

(ii) providing community outreach to assist in 

participation in federally assisted nutrition programs, 

including— 

(I) the school breakfast program established 

by section 4 of the Child Nutrition Act of 1966 

(42 U.S.C. 1773); 

(II) the school lunch program established 

under the Richard B. Russell National School 

Lunch Act (42 U.S.C. 1751 et seq.); 

(III) the summer food service program for children established under section 13 of that Act; and 

(IV) other Federal programs that provide food 

for children in child care facilities and homeless 

and older individuals; or 

(iii) improving access to food as part of a comprehensive service; and 

(B) developing new resources and strategies to help 

reduce hunger in the community and prevent hunger in 

the future by— 

(i) developing creative food resources, such as 

community gardens, buying clubs, food cooperatives, 

community-owned and operated grocery stores, and 

farmers’ markets; 

(ii) coordinating food services with park and recreation programs and other community-based outlets to 

reduce barriers to access; or 

(iii) creating nutrition education programs for atrisk populations to enhance food-purchasing and foodpreparation skills and to heighten awareness of the 

connection between diet and health. 

(c) HUNGER-FREE COMMUNITIES INFRASTRUCTURE GRANTS.— 

(1) PROGRAM AUTHORIZED.— 

(A) IN GENERAL.—The Secretary shall use not more 

than 50 percent of any funds made available for a fiscal 

year under subsection (e) to make grants to eligible entities 

to pay the Federal share of the costs of an activity described 

in paragraph (2). 

(B) FEDERAL SHARE.—The Federal share of the cost 

of carrying out an activity under this subsection shall not 

exceed 80 percent. 

(2) APPLICATION.— 

(A) IN GENERAL.—To receive a grant under this subsection, an eligible entity shall submit an application at 

such time, in such form, and containing such information 

as the Secretary may prescribe. 

(B) CONTENTS.—Each application submitted under 

subparagraph (A) shall— 

(i) identify any activity described in paragraph 

(3) that the grant will be used to fund; and 
H. R. 2419—218 

(ii) describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity. 

(C) PRIORITY.—In making grants under this subsection, 

the Secretary shall give priority to eligible entities that 

demonstrate 2 or more of the following: 

(i) The eligible entity serves a community in which 

the rates of food insecurity, hunger, poverty, or 

unemployment are demonstrably higher than national 

average rates. 

(ii) The eligible entity serves a community that 

has successfully carried out long-term efforts to reduce 

hunger in the community. 

(iii) The eligible entity serves a community that 

provides public support for the efforts of the eligible 

entity. 

(iv) The eligible entity is committed to achieving 

more than 1 hunger-free communities goal. 

(3) USE OF FUNDS.—An eligible entity shall use a grant 

received under this subsection to construct, expand, or repair 

a facility or equipment to support hunger relief efforts in the 

community. 

(d) REPORT.—If funds are made available under subsection 

(e) to carry out this section, not later than September 30, 2012, 

the Secretary shall submit to Congress a report that describes— 

(1) each grant made under this section, including— 

(A) a description of any activity funded; and 

(B) the degree of success of each activity funded in 

achieving hunger free-communities goals; and 

(2) the degree of success of all activities funded under 

this section in achieving domestic hunger goals. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2008 through 2012. 

SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS. 

(a) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— 

(1) AUTHORIZATION OF APPROPRIATIONS.—Section 18(a)(1) 

of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) 

is amended in the first sentence by striking ‘‘for each of the 

fiscal years 2003 through 2007’’ and inserting ‘‘for each of 

fiscal years 2008 through 2012’’. 

(2) GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY

DETERMINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS.— 

Section 11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020(t)(1)) is amended by striking ‘‘For each of fiscal years 

2003 through 2007’’ and inserting ‘‘Subject to the availability 

of appropriations under section 18(a), for each fiscal year’’. 

(3) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.— 

Section 16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2025(h)(1)) is amended— 

(A) in subparagraph (A), by striking ‘‘the amount of— 

’’ and all that follows through the end of the subparagraph 

and inserting ‘‘, $90,000,000 for each fiscal year.’’; and 
H. R. 2419—219 

(B) in subparagraph (E)(i), by striking ‘‘for each of 

fiscal years 2002 through 2007’’ and inserting ‘‘for each 

fiscal year’’. 

(4) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.— 

Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2025(k)(3)) is amended— 

(A) in the first sentence of subparagraph (A), by 

striking ‘‘effective for each of fiscal years 1999 through 

2007,’’; and 

(B) in subparagraph (B)(ii), by striking ‘‘through fiscal 

year 2007’’. 

(5) CASH PAYMENT PILOT PROJECTS.—Section 17(b)(1)(B)(vi) 

of the Food and Nutrition Act of 2008 (7 U.S.C. 

2026(b)(1)(B)(vi)) is amended— 

(A) by striking ‘‘Any pilot’’ and inserting ‘‘Subject to 

the availability of appropriations under section 18(a), any 

pilot’’; and 

(B) by striking ‘‘through October 1, 2007,’’. 

(6) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND

AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by 

striking ‘‘for each of fiscal years 2004 through 2007’’ and 

inserting ‘‘subject to the availability of appropriations under 

section 18(a), for each fiscal year thereafter’’. 

(7) ASSISTANCE FOR COMMUNITY FOOD PROJECTS.—Section 

25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) 

is amended— 

(A) in subsection (b)(2)(B), by striking ‘‘for each of 

fiscal years 1997 through 2007’’ and inserting ‘‘for fiscal 

year 2008 and each fiscal year thereafter’’; and 

(B) in subsection (i)(4) (as redesignated by section 

4402), by striking ‘‘of fiscal years 2003 through 2007’’ and 

inserting ‘‘fiscal year thereafter’’. 

(b) COMMODITY DISTRIBUTION.— 

(1) EMERGENCY FOOD ASSISTANCE.—Section 204(a)(1) of the 

Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 

is amended in the first sentence by striking ‘‘for each of the 

fiscal years 2003 through 2007’’ and inserting ‘‘for fiscal year 

2008 and each fiscal year thereafter’’. 

(2) COMMODITY DISTRIBUTION PROGRAM.—Section 4(a) of 

the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 

612c note; Public Law 93–86) is amended in the first sentence 

by striking ‘‘years 1991 through 2007’’ and inserting ‘‘years 

2008 through 2012’’. 

(3) COMMODITY SUPPLEMENTAL FOOD PROGRAM.—Section 5 

of the Agriculture and Consumer Protection Act of 1973 (7 

U.S.C. 612c note; Public Law 93–86) is amended— 

(A) in subsection (a)— 

(i) in paragraph (1), by striking ‘‘each of fiscal 

years 2003 through 2007’’ and inserting ‘‘each of fiscal 

years 2008 through 2012’’; and 

(ii) in paragraph (2)(B), by striking the subparagraph designation and heading and all that follows 

through ‘‘2007’’ and inserting the following: 

‘‘(B) SUBSEQUENT FISCAL YEARS.—For each of fiscal 

years 2004 through 2012’’; and 
H. R. 2419—220 

(B) in subsection (d)(2), by striking ‘‘each of the fiscal 

years 1991 through 2007’’ and inserting ‘‘each of fiscal 

years 2008 through 2012’’. 

(4) DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL

NUTRITION PROJECTS.—Section 1114(a)(2)(A) of the Agriculture 

and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in 

the first sentence by striking ‘‘Effective through September 

30, 2007’’ and inserting ‘‘For each of fiscal years 2008 through 

2012’’. 

(c) FARM SECURITY AND RURAL INVESTMENT.— (1) SENIORS FARMERS’ MARKET NUTRITION PROGRAM.—Section 4402 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 3007) is amended by striking by striking 

subsection (a) and inserting the following: 

‘‘(a) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall use to carry out and expand 

the seniors farmers’ market nutrition program $20,600,000 for each 

of fiscal years 2008 through 2012.’’. 

(2) NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.—Section 4403(f) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171) 

is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES. 

Except as otherwise provided in this title, this title and the 

amendments made by this title take effect on October 1, 2008. 

TITLE V—CREDIT 

Subtitle A—Farm Ownership Loans 

SEC. 5001. DIRECT LOANS. 

Section 302 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1922) is amended— 

(1) by striking the section designation and heading and 

all that follows through ‘‘(a) The Secretary is authorized to’’ 

and inserting the following: 

‘‘SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS. 

‘‘(a) IN GENERAL.—The Secretary may’’; and 

(2) in subsection (a)(2), by inserting ‘‘, taking into consideration all farming experience of the applicant, without regard 

to any lapse between farming experiences’’ after ‘‘farming operations’’. 

SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 

Section 304 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1924) is amended to read as follows: 

‘‘SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 

‘‘(a) IN GENERAL.—The Secretary may make or guarantee qualified conservation loans to eligible borrowers under this section. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) QUALIFIED CONSERVATION LOAN.—The term ‘qualified 

conservation loan’ means a loan, the proceeds of which are 

used to cover the costs to the borrower of carrying out a 

qualified conservation project. 
H. R. 2419—221 

‘‘(2) QUALIFIED CONSERVATION PROJECT.—The term ‘qualified conservation project’ means conservation measures that 

address provisions of a conservation plan of the eligible borrower. 

‘‘(3) CONSERVATION PLAN.—The term ‘conservation plan’ 

means a plan, approved by the Secretary, that, for a farming 

or ranching operation, identifies the conservation activities that 

will be addressed with loan funds provided under this section, 

including— 

‘‘(A) the installation of conservation structures to 

address soil, water, and related resources; 

‘‘(B) the establishment of forest cover for sustained 

yield timber management, erosion control, or shelter belt 

purposes; 

‘‘(C) the installation of water conservation measures; 

‘‘(D) the installation of waste management systems; 

‘‘(E) the establishment or improvement of permanent 

pasture; 

‘‘(F) compliance with section 1212 of the Food Security 

Act of 1985; and 

‘‘(G) other purposes consistent with the plan, including 

the adoption of any other emerging or existing conservation 

practices, techniques, or technologies approved by the Secretary. 

‘‘(c) ELIGIBILITY.— 

‘‘(1) IN GENERAL.—The Secretary may make or guarantee 

loans to farmers or ranchers in the United States, farm cooperatives, private domestic corporations, partnerships, joint operations, trusts, or limited liability companies that are controlled 

by farmers or ranchers and engaged primarily and directly 

in agricultural production in the United States. 

‘‘(2) REQUIREMENTS.—To be eligible for a loan under this 

section, applicants shall meet the requirements in paragraphs 

(1) and (2) of section 302(a). 

‘‘(d) PRIORITY.—In making or guaranteeing loans under this 

section, the Secretary shall give priority to— 

‘‘(1) qualified beginning farmers or ranchers and socially 

disadvantaged farmers or ranchers; 

‘‘(2) owners or tenants who use the loans to convert to 

sustainable or organic agricultural production systems; and 

‘‘(3) producers who use the loans to build conservation 

structures or establish conservation practices to comply with 

section 1212 of the Food Security Act of 1985. 

‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARANTEES.—The portion of a loan that the Secretary may guarantee under this section 

shall be 75 percent of the principal amount of the loan. 

‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary shall ensure, 

to the maximum extent practicable, that loans made or guaranteed 

under this section are distributed across diverse geographic regions. 

‘‘(g) CREDIT ELIGIBILITY.—The provisions of paragraphs (1) and 

(3) of section 333 shall not apply to loans made or guaranteed 

under this section. 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For each of fiscal 

years 2008 through 2012, there are authorized to be appropriated 

to the Secretary such funds as are necessary to carry out this 

section.’’. 
H. R. 2419—222 

SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS. 

Section 305(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(a)(2)) is amended by striking ‘‘$200,000’’ 

and inserting ‘‘$300,000’’. 

SEC. 5004. DOWN PAYMENT LOAN PROGRAM. 

Section 310E of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1935) is amended— 

(1) in subsection (a)(1), by striking ‘‘and ranchers’’ and 

inserting ‘‘or ranchers and socially disadvantaged farmers or 

ranchers’’; 

(2) in subsection (b)— 

(A) by striking paragraph (1) and inserting the following; 

‘‘(1) PRINCIPAL.—Each loan made under this section shall 

be in an amount that does not exceed 45 percent of the least 

of— 

‘‘(A) the purchase price of the farm or ranch to be 

acquired; 

‘‘(B) the appraised value of the farm or ranch to be 

acquired; or 

‘‘(C) $500,000. 

‘‘(2) INTEREST RATE.—The interest rate on any loan made 

by the Secretary under this section shall be a rate equal to 

the greater of— 

‘‘(A) the difference obtained by subtracting 4 percent 

from the interest rate for farm ownership loans under 

this subtitle; or 

‘‘(B) 1.5 percent.’’; and 

(B) in paragraph (3), by striking ‘‘15’’ and inserting 

‘‘20’’; 

(3) in subsection (c)— 

(A) in paragraph (1), by striking ‘‘10’’ and inserting 

‘‘5’’; 

(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and 

(C) in paragraph (2)(B) (as so redesignated), by striking 

‘‘15-year’’ and inserting ‘‘20-year’’; 

(4) in subsection (d)— 

(A) in paragraph (3)— 

(i) by inserting ‘‘and socially disadvantaged 

farmers or ranchers’’ after ‘‘ranchers’’; and 

(ii) by striking ‘‘and’’ at the end; 

(B) in paragraph (4), by striking ‘‘and ranchers.’’ and 

inserting ‘‘ or ranchers or socially disadvantaged farmers 

or ranchers; and’’; and 

(C) by adding at the end the following: 

‘‘(5) establish annual performance goals to promote the 

use of the down payment loan program and other joint financing 

arrangements as the preferred choice for direct real estate 

loans made by any lender to a qualified beginning farmer 

or rancher or socially disadvantaged farmer or rancher.’’; and 

(5) by adding at the end the following: 

‘‘(e) SOCIALLY DISADVANTAGED FARMER OR RANCHER DEFINED.— 

In this section, the term ‘socially disadvantaged farmer or rancher’ 

has the meaning given that term in section 355(e)(2).’’. 
H. R. 2419—223 

SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED FARMER OR RANCHER CONTRACT LAND 

SALES PROGRAM. 

Section 310F of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1936) is amended to read as follows: 

‘‘SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED FARMER OR RANCHER CONTRACT LAND 

SALES PROGRAM. 

‘‘(a) IN GENERAL.—The Secretary shall, in accordance with this 

section, guarantee a loan made by a private seller of a farm or 

ranch to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher (as defined in section 355(e)(2)) on 

a contract land sales basis. 

‘‘(b) ELIGIBILITY.—In order to be eligible for a loan guarantee 

under subsection (a)— 

‘‘(1) the qualified beginning farmer or rancher or socially 

disadvantaged farmer or rancher shall— 

‘‘(A) on the date the contract land sale that is subject 

of the loan is complete, own and operate the farm or 

ranch that is the subject of the contract land sale; 

‘‘(B) have a credit history that— 

‘‘(i) includes a record of satisfactory debt repayment, as determined by the Secretary; and 

‘‘(ii) is acceptable to the Secretary; and 

‘‘(C) demonstrate to the Secretary that the farmer or 

rancher, as the case may be, is unable to obtain sufficient 

credit without a guarantee to finance any actual need 

of the farmer or rancher, as the case may be, at a reasonable rate or term; and 

‘‘(2) the loan shall meet applicable underwriting criteria, 

as determined by the Secretary. 

‘‘(c) LIMITATIONS.— 

‘‘(1) DOWN PAYMENT.—The Secretary shall not provide a 

loan guarantee under subsection (a) if the contribution of the 

qualified beginning farmer or rancher or socially disadvantaged 

farmer or rancher to the down payment for the farm or ranch 

that is the subject of the contract land sale would be less 

than 5 percent of the purchase price of the farm or ranch. 

‘‘(2) MAXIMUM PURCHASE PRICE.—The Secretary shall not 

provide a loan guarantee under subsection (a) if the purchase 

price or the appraisal value of the farm or ranch that is the 

subject of the contract land sale is greater than $500,000. 

‘‘(d) PERIOD OF GUARANTEE.—The period during which a loan 

guarantee under this section is in effect shall be the 10-year period 

beginning with the date the guarantee is provided. 

‘‘(e) GUARANTEE PLAN.— ‘‘(1) SELECTION OF PLAN.—A private seller of a farm or 

ranch who makes a loan that is guaranteed by the Secretary 

under subsection (a) may select— 

‘‘(A) a prompt payment guarantee plan, which shall 

cover— 

‘‘(i) 3 amortized annual installments; or 

‘‘(ii) an amount equal to 3 annual installments 

(including an amount equal to the total cost of any 

tax and insurance incurred during the period covered 

by the annual installments); or 
H. R. 2419—224 

‘‘(B) a standard guarantee plan, which shall cover an 

amount equal to 90 percent of the outstanding principal 

of the loan. 

‘‘(2) ELIGIBLITY FOR STANDARD GUARANTEE PLAN.—In order 

for a private seller to be eligible for a standard guarantee 

plan referred to in paragraph (1)(B), the private seller shall— 

‘‘(A) secure a commercial lending institution or similar 

entity, as determined by the Secretary, to serve as an 

escrow agent; or 

‘‘(B) in cooperation with the farmer or rancher, use 

an appropriate alternate arrangement, as determined by 

the Secretary. 

‘‘(f) TRANSITION FROM PILOT PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary may phase-in the 

implementation of the changes to the Beginning Farmer and 

Rancher and Socially Disadvantaged Farmer or Rancher Contract Land Sales Program provided for in this section. 

‘‘(2) LIMITATION.—All changes to the Beginning Farmer 

and Rancher and Socially Disadvantaged Farmer or Rancher 

Contract Land Sales Program must be implemented for the 

2011 Fiscal Year.’’. 

Subtitle B—Operating Loans 

SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT. 

Section 311 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1941) is amended— 

(1) by striking the section designation and all that follows 

through ‘‘(a) The Secretary is authorized to’’ and inserting 

the following: 

‘‘SEC. 311. PERSONS ELIGIBLE FOR LOANS. 

‘‘(a) IN GENERAL.—The Secretary may’’; 

(2) in subsection (a)(2), by inserting ‘‘, taking into consideration all farming experience of the applicant, without regard 

to any lapse between farming experiences’’ after ‘‘farming operations’’. 

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS. 

Section 313(a)(1) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1943(a)(1)) is amended by striking ‘‘$200,000’’ 

and inserting ‘‘$300,000’’. 

SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE. 

Section 5102 of the Farm Security And Rural Investment Act 

of 2002 (7 U.S.C. 1949 note; Public Law 107–171) is amended 

by striking ‘‘September 30, 2007’’ and inserting ‘‘December 31, 

2010’’. 

Subtitle C—Emergency Loans 

SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR 

EMERGENCY LOANS. 

Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended— 
H. R. 2419—225 

(1) in paragraph (1), by striking ‘‘farmers, ranchers’’ and 

inserting ‘‘farmers or ranchers (including equine farmers or 

ranchers)’’; and 

(2) in paragraph (2)(A), by striking ‘‘farming, ranching,’’ 

and inserting ‘‘farming or ranching (including equine farming 

or ranching)’’. 

Subtitle D—Administrative Provisions 

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT PROGRAM. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981–2008r) is amended by inserting after section 

333A the following: 

‘‘SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL 

DEVELOPMENT ACCOUNTS PILOT PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) DEMONSTRATION PROGRAM.—The term ‘demonstration 

program’ means a demonstration program carried out by a 

qualified entity under the pilot program established in subsection (b)(1). 

‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligible participant’ 

means a qualified beginning farmer or rancher that— 

‘‘(A) lacks significant financial resources or assets; and 

‘‘(B) has an income that is less than— 

‘‘(i) 80 percent of the median income of the State 

in which the farmer or rancher resides; or 

‘‘(ii) 200 percent of the most recent annual Federal 

Poverty Income Guidelines published by the Department of Health and Human Services for the State. 

‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The term ‘individual development account’ means a savings account described 

in subsection (b)(4)(A). 

‘‘(4) QUALIFIED ENTITY.— 

‘‘(A) IN GENERAL.—The term ‘qualified entity’ means— 

‘‘(i) 1 or more organizations— 

‘‘(I) described in section 501(c)(3) of the 

Internal Revenue Code of 1986; and 

‘‘(II) exempt from taxation under section 501(a) 

of such Code; or 

‘‘(ii) a State, local, or tribal government submitting 

an application jointly with an organization described 

in clause (i). 

‘‘(B) NO PROHIBITION ON COLLABORATION.—An 

organization described in subparagraph (A)(i) may collaborate with a financial institution or for-profit community 

development corporation to carry out the purposes of this 

section. 

‘‘(b) PILOT PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall establish a pilot 

program to be known as the ‘New Farmer Individual Development Accounts Pilot Program’ under which the Secretary shall 

work through qualified entities to establish demonstration programs— 

‘‘(A) of at least 5 years in duration; and 
H. R. 2419—226 

‘‘(B) in at least 15 States. 

‘‘(2) COORDINATION.—The Secretary shall operate the pilot 

program through, and in coordination with the farm loan programs of, the Farm Service Agency. 

‘‘(3) RESERVE FUNDS.— 

‘‘(A) IN GENERAL.—A qualified entity carrying out a 

demonstration program under this section shall establish 

a reserve fund consisting of a non-Federal match of 50 

percent of the total amount of the grant awarded to the 

demonstration program under this section. 

‘‘(B) FEDERAL FUNDS.—After the qualified entity has 

deposited the non-Federal matching funds described in 

subparagraph (A) in the reserve fund, the Secretary shall 

provide the total amount of the grant awarded under this 

section to the demonstration program for deposit in the 

reserve fund. 

‘‘(C) USE OF FUNDS.—Of the funds deposited under 

subparagraph (B) in the reserve fund established for a 

demonstration program, the qualified entity carrying out 

the demonstration program— 

‘‘(i) may use up to 10 percent for administrative 

expenses; and 

‘‘(ii) shall use the remainder in making matching 

awards described in paragraph (4)(B)(ii)(I). 

‘‘(D) INTEREST.—Any interest earned on amounts in 

a reserve fund established under subparagraph (A) may 

be used by the qualified entity as additional matching 

funds for, or to administer, the demonstration program. 

‘‘(E) GUIDANCE.—The Secretary shall issue guidance 

regarding the investment requirements of reserve funds 

established under this paragraph. 

‘‘(F) REVERSION.—On the date on which all funds 

remaining in any individual development account established by a qualified entity have reverted under paragraph 

(5)(B)(ii) to the reserve fund established by the qualified 

entity, there shall revert to the Treasury of the United 

States a percentage of the amount (if any) in the reserve 

fund equal to— 

‘‘(i) the amount of Federal funds deposited in the 

reserve fund under subparagraph (B) that were not 

used for administrative expenses; divided by 

‘‘(ii) the total amount of funds deposited in the 

reserve fund. 

‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 

‘‘(A) IN GENERAL.—A qualified entity receiving a grant 

under this section shall establish and administer individual 

development accounts for eligible participants. 

‘‘(B) CONTRACT REQUIREMENTS.—To be eligible to 

receive funds under this section from a qualified entity, 

an eligible participant shall enter into a contract with 

only 1 qualified entity under which— 

‘‘(i) the eligible participant agrees— 

‘‘(I) to deposit a certain amount of funds of 

the eligible participant in a personal savings 

account, as prescribed by the contractual agreement between the eligible participant and the 

qualified entity; 
H. R. 2419—227 

‘‘(II) to use the funds described in subclause 

(I) only for 1 or more eligible expenditures 

described in paragraph (5)(A); and 

‘‘(III) to complete financial training; and 

‘‘(ii) the qualified entity agrees— 

‘‘(I) to deposit, not later than 1 month after 

an amount is deposited pursuant to clause (i)(I), 

at least a 100-percent, and up to a 200-percent, 

match of that amount into the individual development account established for the eligible participant; and 

‘‘(II) with uses of funds proposed by the eligible 

participant. 

‘‘(C) LIMITATION.— ‘‘(i) IN GENERAL.—A qualified entity administering 

a demonstration program under this section may provide not more than $6,000 for each fiscal year in 

matching funds to the individual development account 

established by the qualified entity for an eligible 

participant. 

‘‘(ii) TREATMENT OF AMOUNT.—An amount provided 

under clause (i) shall not be considered to be a gift 

or loan for mortgage purposes. 

‘‘(5) ELIGIBLE EXPENDITURES.— ‘‘(A) IN GENERAL.—An eligible expenditure described 

in this subparagraph is an expenditure— 

‘‘(i) to purchase farmland or make a down payment 

on an accepted purchase offer for farmland; 

‘‘(ii) to make mortgage payments on farmland purchased pursuant to clause (i), for up to 180 days after 

the date of the purchase; 

‘‘(iii) to purchase breeding stock, fruit or nut trees, 

or trees to harvest for timber; and 

‘‘(iv) for other similar expenditures, as determined 

by the Secretary. 

‘‘(B) TIMING.— 

‘‘(i) IN GENERAL.—An eligible participant may 

make an eligible expenditure at any time during the 

2-year period beginning on the date on which the last 

matching funds are provided under paragraph 

(4)(B)(ii)(I) to the individual development account 

established for the eligible participant. 

‘‘(ii) UNEXPENDED FUNDS.—At the end of the period 

described in clause (i), any funds remaining in an 

individual development account established for an 

eligible participant shall revert to the reserve fund 

of the demonstration program under which the account 

was established. 

‘‘(c) APPLICATIONS.— ‘‘(1) IN GENERAL.—A qualified entity that seeks to carry 

out a demonstration program under this section may submit 

to the Secretary an application at such time, in such form, 

and containing such information as the Secretary may prescribe. 

‘‘(2) CRITERIA.—In considering whether to approve an 

application to carry out a demonstration program under this 

section, the Secretary shall assess— 
H. R. 2419—228 

‘‘(A) the degree to which the demonstration program 

described in the application is likely to aid eligible participants in successfully pursuing new farming opportunities; 

‘‘(B) the experience and ability of the qualified entity 

to responsibly administer the demonstration program; 

‘‘(C) the experience and ability of the qualified entity 

in recruiting, educating, and assisting eligible participants 

to increase economic independence and pursue or advance 

farming opportunities; 

‘‘(D) the aggregate amount of direct funds from nonFederal public sector and private sources that are formally 

committed to the demonstration program as matching contributions; 

‘‘(E) the adequacy of the plan of the qualified entity 

to provide information relevant to an evaluation of the 

demonstration program; and 

‘‘(F) such other factors as the Secretary considers to 

be appropriate. 

‘‘(3) PREFERENCES.—In considering an application to conduct a demonstration program under this section, the Secretary 

shall give preference to an application from a qualified entity 

that demonstrates— 

‘‘(A) a track record of serving clients targeted by the 

program, including, as appropriate, socially disadvantaged 

farmers or ranchers (as defined in section 355(e)(2)); and 

‘‘(B) expertise in dealing with financial management 

aspects of farming. 

‘‘(4) APPROVAL.—Not later than 1 year after the date of 

enactment of this section, in accordance with this section, the 

Secretary shall, on a competitive basis, approve such applications to conduct demonstration programs as the Secretary considers appropriate. 

‘‘(5) TERM OF AUTHORITY.—If the Secretary approves an 

application to carry out a demonstration program, the Secretary 

shall authorize the applicant to carry out the project for a 

period of 5 years, plus an additional 2 years to make eligible 

expenditures in accordance with subsection (b)(5)(B). 

‘‘(d) GRANT AUTHORITY.— 

‘‘(1) IN GENERAL.—The Secretary shall make a grant to 

a qualified entity authorized to carry out a demonstration program under this section. 

‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The aggregate amount 

of grant funds provided to a demonstration program carried 

out under this section shall not exceed $250,000. 

‘‘(3) TIMING OF GRANT PAYMENTS.—The Secretary shall pay 

the amounts awarded under a grant made under this section— 

‘‘(A) on the awarding of the grant; or 

‘‘(B) pursuant to such payment plan as the qualified 

entity may specify. 

‘‘(e) REPORTS.— 

‘‘(1) ANNUAL PROGRESS REPORTS.— 

‘‘(A) IN GENERAL.—Not later than 60 days after the 

end of the calendar year in which the Secretary authorizes 

a qualified entity to carry out a demonstration program 

under this section, and annually thereafter until the conclusion of the demonstration program, the qualified entity 
H. R. 2419—229 

shall prepare an annual report that includes, for the period 

covered by the report— 

‘‘(i) an evaluation of the progress of the demonstration program; 

‘‘(ii) information about the demonstration program, 

including the eligible participants and the individual 

development accounts that have been established; and 

‘‘(iii) such other information as the Secretary may 

require. 

‘‘(B) SUBMISSION OF REPORTS.—A qualified entity shall 

submit each report required under subparagraph (A) to 

the Secretary. 

‘‘(2) REPORTS BY THE SECRETARY.—Not later than 1 year 

after the date on which all demonstration programs under 

this section are concluded, the Secretary shall submit to Congress a final report that describes the results and findings 

of all reports and evaluations carried out under this section. 

‘‘(f) ANNUAL REVIEW.—The Secretary may conduct an annual 

review of the financial records of a qualified entity— 

‘‘(1) to assess the financial soundness of the qualified entity; 

and 

‘‘(2) to determine the use of grant funds made available 

to the qualified entity under this section. 

‘‘(g) REGULATIONS.—In carrying out this section, the Secretary 

may promulgate regulations to ensure that the program includes 

provisions for— 

‘‘(1) the termination of demonstration programs; 

‘‘(2) control of the reserve funds in the case of such a 

termination; 

‘‘(3) transfer of demonstration programs to other qualified 

entities; and 

‘‘(4) remissions from a reserve fund to the Secretary in 

a case in which a demonstration program is terminated without 

transfer to a new qualified entity. 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $5,000,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES. 

(a) INVENTORY SALES PREFERENCES.—Section 335(c) of the 

Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) 

is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (B)— 

(i) in the subparagraph heading, by inserting ‘‘; 

SOCIALLY DISADVANTAGED FARMER OR RANCHER’’ after 

‘‘OR RANCHER’’; 

(ii) in clause (i), by inserting ‘‘ or a socially disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 

(iii) in clause (ii), by inserting ‘‘or socially disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 

(iv) in clause (iii), by inserting ‘‘or a socially disadvantaged farmer or rancher’’ after ‘‘or rancher’’; and 

(v) in clause (iv), by striking ‘‘and ranchers’’ and 

inserting ‘‘or ranchers and socially disadvantaged 

farmers or ranchers’’; and 
H. R. 2419—230 

(B) in subparagraph (C), by inserting ‘‘or a socially 

disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 

(2) in paragraph (5)(B)— 

(A) in clause (i)— 

(i) in the clause heading, by inserting ‘‘; SOCIALLY

DISADVANTAGED FARMER OR RANCHER’’ after ‘‘OR

RANCHER’’; 

(ii) by inserting ‘‘or a socially disadvantaged farmer 

or rancher’’ after ‘‘a beginning farmer or rancher’’; and 

(iii) by inserting ‘‘or the socially disadvantaged 

farmer or rancher’’ after ‘‘the beginning farmer or 

rancher’’; and 

(B) in clause (ii)— 

(i) in the matter preceding subclause (I), by 

inserting ‘‘or a socially disadvantaged farmer or 

rancher’’ after ‘‘or rancher’’; and 

(ii) in subclause (II), by inserting ‘‘or the socially 

disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 

and 

(3) in paragraph (6)— 

(A) in subparagraph (A), by inserting ‘‘or a socially 

disadvantaged farmer or rancher’’ after ‘‘or rancher’’; and 

(B) in subparagraph (C)— 

(i) in clause (i)(I), by striking ‘‘and ranchers’’ and 

inserting ‘‘or ranchers and socially disadvantaged 

farmers or ranchers’’; and 

(ii) in clause (ii), by inserting ‘‘or socially disadvantaged farmers or ranchers’’ after ‘‘or ranchers’’. 

(b) LOAN FUND SET-ASIDES.—Section 346(b)(2) of such Act (7 

U.S.C. 1994(b)(2)) is amended— 

(1) in subparagraph (A)— 

(A) in clause (i)— 

(i) in subclause (I), by striking ‘‘70 percent’’ and 

inserting ‘‘an amount that is not less than 75 percent 

of the total amount’’; and 

(ii) in subclause (II)— 

(I) in the subclause heading, by inserting ‘‘; 

JOINT FINANCING ARRANGEMENTS’’ after ‘‘PAYMENT

LOANS’’; 

(II) by striking ‘‘60 percent’’ and inserting ‘‘an 

amount not less than 2⁄3 of the amount’’; and 

(III) by inserting ‘‘and joint financing arrangements under section 307(a)(3)(D)’’ after ‘‘section 

310E’’; and 

(B) in clause (ii)(III), by striking ‘‘2003 through 2007, 

35 percent’’ and inserting ‘‘2008 through 2012, an amount 

that is not less than 50 percent of the total amount’’; 

and 

(2) in subparagraph (B)(i), by striking ‘‘25 percent’’ and 

inserting ‘‘an amount that is not less than 40 percent of the 

total amount’’. 

SEC. 5303. LOAN AUTHORIZATION LEVELS. 

Section 346(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(1)) is amended— 

(1) in the matter preceding subparagraph (A), by striking 

‘‘$3,796,000,000 for each of fiscal years 2003 through 2007’’ 
H. R. 2419—231 

and inserting ‘‘$4,226,000,000 for each of fiscal years 2008 

through 2012’’; and 

(2) in subparagraph (A)— 

(A) in the matter preceding clause (i), by striking 

‘‘$770,000,000’’ and inserting ‘‘$1,200,000,000’’; 

(B) in clause (i), by striking ‘‘$205,000,000’’ and 

inserting ‘‘$350,000,000’’; and 

(C) in clause (ii), by striking ‘‘$565,000,000’’ and 

inserting ‘‘$850,000,000’’. 

SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 

OF CREDIT. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981–2008r) is amended by inserting after section 

344 the following: 

‘‘SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 

OF CREDIT. 

‘‘(a) IN GENERAL.—In making or insuring a farm loan under 

subtitle A or B, the Secretary shall establish a plan and promulgate 

regulations (including performance criteria) that promote the goal 

of transitioning borrowers to private commercial credit and other 

sources of credit in the shortest period of time practicable. 

‘‘(b) COORDINATION.—In carrying out this section, the Secretary 

shall integrate and coordinate the transition policy described in 

subsection (a) with— 

‘‘(1) the borrower training program established by section 

359; 

‘‘(2) the loan assessment process established by section 

360; 

‘‘(3) the supervised credit requirement established by section 361; 

‘‘(4) the market placement program established by section 

362; and 

‘‘(5) other appropriate programs and authorities, as determined by the Secretary.’’. 

SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO 

REACQUIRE HOMESTEAD PROPERTY TO IMMEDIATE 

FAMILY MEMBERS OF BORROWER-OWNER. 

Section 352(c)(4)(B) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 2000(c)(4)(B)) is amended— 

(1) in the 1st sentence, by striking ‘‘, the borrower-owner’’ 

inserting ‘‘of a borrower-owner who is a socially disadvantaged 

farmer or rancher (as defined in section 355(e)(2)), the borrowerowner or a member of the immediate family of the borrowerowner’’; and 

(2) in the 2nd sentence, by inserting ‘‘or immediate family 

member, as the case may be,’’ before ‘‘from’’. 

SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981–2008r) is amended by inserting after section 

364 the following: 
H. R. 2419—232 

‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES. 

‘‘The Secretary may not complete a study of, or enter into 

a contract with a private party to carry out, without specific 

authorization in a subsequent Act of Congress, a competitive 

sourcing activity of the Secretary, including support personnel of 

the Department of Agriculture, relating to rural development or 

farm loan programs.’’. 

Subtitle E—Farm Credit 

SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION. 

(a) IN GENERAL.—Section 1.12(b) of the Farm Credit Act of 

1971 (12 U.S.C. 2020(b)) is amended— 

(1) in the first sentence, by striking ‘‘Each Farm’’ and 

inserting the following; 

‘‘(1) IN GENERAL.—Each Farm’’; and 

(2) by striking the second sentence and inserting the following: 

‘‘(2) COMPUTATION.—The assessment on any association or 

other financing institution described in paragraph (1) for any 

period shall be computed in an equitable manner, as determined 

by the Corporation.’’. 

(b) RULES AND REGULATIONS.—Section 5.58(10) of such Act 

(12 U.S.C. 2277a-7(10)) is amended by inserting ‘‘and section 

1.12(b)’’ after ‘‘part’’. 

SEC. 5402. TECHNICAL CORRECTION. 

Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b)) 

is amended in the first sentence by striking ‘‘per’’ and inserting 

‘‘par’’. 

SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK. 

(a) IN GENERAL.—Section 3.3(c) of the Farm Credit Act of 

1971 (12 U.S.C. 2124(c)) is amended by striking ‘‘and (ii)’’ and 

inserting ‘‘(ii) other categories of persons and entities described 

in sections 3.7 and 3.8 eligible to borrow from the bank, as determined by the bank’s board of directors; and (iii)’’. 

(b) CONFORMING AMENDMENTS.—Section 4.3A(c)(1)(D) of such 

Act (12 U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses 

(ii) and (iii) as clauses (iii) and (iv), respectively, and inserting 

after clause (i) the following: 

‘‘(ii) persons and entities eligible to borrow from 

the banks for cooperatives, as described in section 

3.3(c)(ii);’’. 

SEC. 5404. PREMIUMS. 

(a) AMOUNT IN FUND NOT EXCEEDING SECURE BASE AMOUNT.— Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a4(a)) is amended— 

(1) in paragraph (1)— 

(A) in the matter preceding subparagraph (A)— 

(i) by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’; and 

(ii) by striking ‘‘annual’’ ; and 

(B) by striking subparagraphs (A) through (D) and 

inserting the following: 
H. R. 2419—233 

‘‘(A) the average outstanding insured obligations issued 

by the bank for the calendar year, after deducting from 

the obligations the percentages of the guaranteed portions 

of loans and investments described in paragraph (2), multiplied by 0.0020; and 

‘‘(B) the product obtained by multiplying— 

‘‘(i) the sum of— 

‘‘(I) the average principal outstanding for the 

calendar year on loans made by the bank that 

are in nonaccrual status; and 

‘‘(II) the average amount outstanding for the 

calendar year of other-than-temporarily impaired 

investments made by the bank; by 

‘‘(ii) 0.0010.’’; 

(2) by striking paragraph (4); 

(3) by redesignating paragraphs (2) and (3) as paragraphs 

(3) and (4), respectively; 

(4) by inserting after paragraph (1) the following: 

‘‘(2) DEDUCTIONS FROM AVERAGE OUTSTANDING INSURED

OBLIGATIONS.—The average outstanding insured obligations 

issued by the bank for the calendar year referred to in paragraph (1)(A) shall be reduced by deducting from the obligations 

the sum of (as determined by the Corporation)— 

‘‘(A) 90 percent of each of— 

‘‘(i) the average principal outstanding for the calendar year on the guaranteed portions of Federal 

government-guaranteed loans made by the bank that 

are in accrual status; and 

‘‘(ii) the average amount outstanding for the calendar year of the guaranteed portions of Federal 

government-guaranteed investments made by the bank 

that are not permanently impaired; and 

‘‘(B) 80 percent of each of— 

‘‘(i) the average principal outstanding for the calendar year on the guaranteed portions of State government-guaranteed loans made by the bank that are 

in accrual status; and 

‘‘(ii) the average amount outstanding for the calendar year of the guaranteed portions of State government-guaranteed investments made by the bank that 

are not permanently impaired.’’; 

(5) in paragraph (3) (as so redesignated by paragraph (3) 

of this subsection), by striking ‘‘annual’’; and 

(6) in paragraph (4) (as so redesignated by paragraph (3) 

of this subsection)— 

(A) in the paragraph heading, by inserting ‘‘OR INVESTMENTS’’ after ‘‘LOANS’’ ; and 

(B) in the matter preceding subparagraph (A), by 

striking ‘‘As used’’ and all that follows through ‘‘guaranteed—’’ and inserting ‘‘In this section, the term ‘government-guaranteed’, when applied to a loan or an investment, 

means a loan, credit, or investment, or portion of a loan, 

credit, or investment, that is guaranteed—’’. 

(b) AMOUNT IN FUND EXCEEDING SECURE BASE AMOUNT.—Section 5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by 

striking ‘‘annual’’. 
H. R. 2419—234 

(c) SECURE BASE AMOUNT.—Section 5.55(c) of such Act (12 

U.S.C. 2277a-4(c)) is amended— 

(1) by striking ‘‘For purposes’’ and inserting the following: 

‘‘(1) IN GENERAL.—For purposes’’; 

(2) by striking ‘‘(adjusted downward’’ and all that follows 

through ‘‘by the Corporation)’’ and inserting ‘‘(as adjusted under 

paragraph (2))’’; and 

(3) by adding at the end the following: 

‘‘(2) ADJUSTMENT.—The aggregate outstanding insured 

obligations of all insured System banks under paragraph (1) 

shall be adjusted downward to exclude an amount equal to 

the sum of (as determined by the corporation)— 

‘‘(A) 90 percent of each of— 

‘‘(i) the guaranteed portions of principal outstanding on Federal government-guaranteed loans in 

accrual status made by the banks; and 

‘‘(ii) the guaranteed portions of the amount of Federal government-guaranteed investments made by the 

banks that are not permanently impaired; and 

‘‘(B) 80 percent of each of— 

‘‘(i) the guaranteed portions of principal outstanding on State government-guaranteed loans in 

accrual status made by the banks; and 

‘‘(ii) the guaranteed portions of the amount of State 

government-guaranteed investments made by the 

banks that are not permanently impaired.’’. 

(d) DETERMINATION OF LOAN AND INVESTMENT AMOUNTS.—Section 5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended— 

(1) in the subsection heading, by striking ‘‘PRINCIPAL OUT- STANDING’’ and inserting ‘‘LOAN AND INVESTMENT AMOUNTS’’; 

(2) in the matter preceding paragraph (1), by striking ‘‘For 

the purpose’’ and all that follows through ‘‘made—’’ and 

inserting ‘‘For the purpose of subsections (a) and (c), the principal outstanding on all loans made by an insured System 

bank, and the amount outstanding on all investments made 

by an insured System bank, shall be determined based on— 

’’; 

(3) in each of paragraphs (1), (2), and (3), by inserting 

‘‘all loans or investments made’’ before ‘‘by’’ the first place 

it appears; and 

(4) in each of paragraphs (1) and (2), by inserting ‘‘or 

investments’’ after ‘‘that is able to make such loans’’ each 

place it appears. 

(e) ALLOCATION TO SYSTEM INSTITUTIONS OF EXCESS

RESERVES.—Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is 

amended— 

(1) in paragraph (3), by striking ‘‘the average secure base 

amount for the calendar year (as calculated on an average 

daily balance basis)’’ and inserting ‘‘the secure base amount’’; 

(2) in paragraph (4), by striking subparagraph (B) and 

inserting the following: 

‘‘(B) there shall be credited to the allocated insurance 

reserves account of each insured system bank an amount 

that bears the same ratio to the total amount (less any 

amount credited under subparagraph (A)) as— 

‘‘(i) the average principal outstanding for the calendar year on insured obligations issued by the bank 
H. R. 2419—235 

(after deducting from the principal the percentages 

of the guaranteed portions of loans and investments 

described in subsection (a)(2)); bears to 

‘‘(ii) the average principal outstanding for the calendar year on insured obligations issued by all insured 

System banks (after deducting from the principal the 

percentages of the guaranteed portions of loans and 

investments described in subsection (a)(2)).’’; and 

(3) in paragraph (6)— 

(A) in subparagraph (A)— 

(i) in the matter preceding clause (i), by striking 

‘‘beginning more’’ and all that follows through ‘‘January 

1, 2005’’; 

(ii) by striking clause (i) and inserting the following: 

‘‘(i) subject to subparagraph (D), pay to each 

insured System bank, in a manner determined by the 

Corporation, an amount equal to the balance in the 

Allocated Insurance Reserves Account of the System 

bank; and’’; and 

(iii) in clause (ii)— 

(I) by striking ‘‘subparagraphs (C), (E), and 

(F)’’ and inserting ‘‘subparagraphs (C) and (E)’’; 

and 

(II) by striking ‘‘, of the lesser of—’’ and all 

that follows through the end of subclause (II) and 

inserting ‘‘at the time of the termination of the 

Financial Assistance Corporation, of the balance 

in the Allocated Insurance Reserves Account established under paragraph (1)(B).’’; 

(B) in subparagraph (C)— 

(i) in clause (i), by striking ‘‘(in addition to the 

amounts described in subparagraph (F)(ii))’’; and 

(ii) by striking clause (ii) and inserting the following: 

‘‘(ii) TERMINATION OF ACCOUNT.—On disbursement 

of an amount equal to $56,000,000, the Corporation 

shall— 

‘‘(I) close the account established under paragraph (1)(B); and 

‘‘(II) transfer any remaining funds in the 

Account to the remaining Allocated Insurance 

Reserves Accounts in accordance with paragraph 

(4)(B) for the calendar year in which the transfer 

occurs.’’; and 

(C) by striking subparagraph (F). 

SEC. 5405. CERTIFICATION OF PREMIUMS. 

(a) FILING CERTIFIED STATEMENT.—Section 5.56 of the Farm 

Credit Act of 1971 (12 U.S.C. 2277a–5) is amended by striking 

subsection (a) and inserting the following: 

‘‘(a) FILING CERTIFIED STATEMENT.—On a date to be determined 

in the sole discretion of the Board of Directors of the Corporation, 

each insured System bank that became insured before the beginning 

of the period for which premiums are being assessed (referred 

to in this section as the ‘period’) shall file with the Corporation 

a certified statement showing— 
H. R. 2419—236 

‘‘(1) the average outstanding insured obligations for the 

period issued by the bank; 

‘‘(2)(A) the average principal outstanding for the period 

on the guaranteed portion of Federal government-guaranteed 

loans that are in accrual status; and 

‘‘(B) the average amount outstanding for the period of 

Federal government-guaranteed investments that are not 

permanently impaired (as defined in section 5.55(a)(4)); 

‘‘(3)(A) the average principal outstanding for the period 

on State government-guaranteed loans that are in accrual 

status; and 

‘‘(B) the average amount outstanding for the period of 

State government-guaranteed investments that are not permanently impaired (as defined in section 5.55(a)(4)); 

‘‘(4)(A) the average principal outstanding for the period 

on loans that are in nonaccrual status; and 

‘‘(B) the average amount outstanding for the period of 

other-than-temporarily impaired investments; and 

‘‘(5) the amount of the premium due the Corporation from 

the bank for the period.’’. 

(b) PREMIUM PAYMENTS.—Section 5.56 of such Act (12 U.S.C. 

2277a–5) is amended by striking subsection (c) and inserting the 

following: 

‘‘(c) PREMIUM PAYMENTS.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

each insured System bank shall pay to the Corporation the 

premium payments required under subsection (a), not more 

frequently than once in each calendar quarter, in such manner 

and at such 1 or more times as the Board of Directors shall 

prescribe. 

‘‘(2) PREMIUM AMOUNT.—The amount of the premium shall 

be established not later than 60 days after filing the certified 

statement specifying the amount of the premium.’’. 

(c) SUBSEQUENT PREMIUM PAYMENTS.—Section 5.56 of such Act 

(12 U.S.C. 2277a–5) is amended— 

(1) by striking subsection (d); and 

(2) by redesignating subsection (e) as subsection (d). 

SEC. 5406. RURAL UTILITY LOANS. 

(a) DEFINITION OF QUALIFIED LOAN.—Section 8.0(9) of the Farm 

Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended— 

(1) in subparagraph (A)(iii), by striking ‘‘or’’ at the end; 

(2) in subparagraph (B)(ii), by striking the period at the 

end and inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(C) that is a loan, or an interest in a loan, for an 

electric or telephone facility by a cooperative lender to 

a borrower that has received, or is eligible to receive, 

a loan under the Rural Electrification Act of 1936 (7 U.S.C. 

901 et seq.).’’. 

(b) GUARANTEE OF QUALIFIED LOANS.—Section 8.6(a)(1) of such 

Act (12 U.S.C. 2279aa–6(a)(1)) is amended by inserting ‘‘applicable’’ 

before ‘‘standards’’ each place it appears in subparagraphs (A) and 

(B)(i). 

(c) STANDARDS FOR QUALIFIED LOANS.—Section 8.8 of such Act 

(12 U.S.C. 2279aa–8) is amended— 

(1) in subsection (a)— 
H. R. 2419—237 

(A) by striking the first sentence and inserting the 

following: 

‘‘(1) IN GENERAL.—The Corporation shall establish underwriting, security appraisal, and repayment standards for qualified loans taking into account the nature, risk profile, and 

other differences between different categories of qualified loans. 

‘‘(2) SUPERVISION, EXAMINATION, AND REPORT OF CONDI- TION.—The standards shall be subject to the authorities of 

the Farm Credit Administration under section 8.11.’’; and 

(B) in the last sentence, by striking ‘‘In establishing’’ 

and inserting the following: 

‘‘(3) MORTGAGE LOANS.—In establishing’’; 

(2) in subsection (b)— 

(A) in the matter preceding paragraph (1), by inserting 

‘‘with respect to loans secured by agricultural real estate’’ 

after ‘‘subsection (a)’’; and 

(B) in paragraph (5)— 

(i) by striking ‘‘borrower’’ the first place it appears 

and inserting ‘‘farmer or rancher’’; and 

(ii) by striking ‘‘site’’ and inserting ‘‘farm or ranch’’; 

(3) in subsection (c)(1), by inserting ‘‘secured by agricultural 

real estate’’ after ‘‘A loan’’; 

(4) by striking subsection (d); and 

(5) by redesignating subsection (e) as subsection (d). 

(d) RISK-BASED CAPITAL LEVELS.—Section 8.32(a)(1) of such 

Act (12 U.S.C. 2279bb–1(a)(1)) is amended— 

(1) by striking ‘‘With respect’’ and inserting the following: 

‘‘(A) IN GENERAL.—With respect’’; and 

(2) by adding at the end the following: 

‘‘(B) RURAL UTILITY LOANS.—With respect to securities 

representing an interest in, or obligation backed by, a 

pool of qualified loans described in section 8.0(9)(C) owned 

or guaranteed by the Corporation, losses occur at a rate 

of default and severity reasonably related to risks in electric 

and telephone facility loans (as applicable), as determined 

by the Director.’’. 

SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT ASSOCIATIONS. 

(a) IN GENERAL.—The Farm Credit Act of 1971 is amended 

by inserting after section 7.6 (12 U.S.C. 2279b) the following: 

‘‘SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT ASSOCIATIONS. 

‘‘(a) EQUALIZATION OF LOAN-MAKING POWERS.— ‘‘(1) IN GENERAL.— ‘‘(A) FEDERAL LAND BANK ASSOCIATIONS.—Subject to 

paragraph (2), any association that owns a Federal land 

bank association authorized as of January 1, 2007, to make 

long-term loans under title I in its chartered territory 

within the geographic area described in subsection (b) may 

make short- and intermediate-term loans and otherwise 

operate as a production credit association under title II 

within that same chartered territory. 

‘‘(B) PRODUCTION CREDIT ASSOCIATIONS.—Subject to 

paragraph (2), any association that under its charter has 

title I lending authority and that owns a production credit 

association authorized as of January 1, 2007, to make 
H. R. 2419—238 

short- and intermediate-term loans under title II in the 

geographic area described in subsection (b) may make longterm loans and otherwise operate, directly or through a 

subsidiary association, as a Federal land bank association 

or Federal land credit association under title I in the 

geographic area. 

‘‘(C) FARM CREDIT BANK.—Notwithstanding section 

5.17(a), the Farm Credit Bank with which any association 

had a written financing agreement as of January 1, 2007, 

may make loans and extend other comparable financial 

assistance with respect to, and may purchase, any loans 

made under the new authority provided under subparagraph (A) or (B) by an association exercising such authority. 

‘‘(2) REQUIRED APPROVALS.—An association may exercise 

the additional authority provided for in paragraph (1) only 

after the exercise of the authority is approved by— 

‘‘(A) the board of directors of the association; and 

‘‘(B) a majority of the voting stockholders of the association (or, if the association is a subsidiary of another association, the voting stockholders of the parent association) 

voting, in person or by proxy, at a duly authorized meeting 

of stockholders in accordance with the process described 

in section 7.11. 

‘‘(b) APPLICABILITY.—This section applies only to associations 

the chartered territory of which was within the geographic area 

served by the Federal intermediate credit bank immediately prior 

to its merger with a Farm Credit Bank under section 410(e)(1) 

of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public 

Law 100–233).’’. 

(b) CHARTER AMENDMENTS.—Section 5.17(a) of the Farm Credit 

Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the end 

the following: 

‘‘(15)(A) Approve amendments to the charters of institutions 

of the Farm Credit System to implement the equalization of 

loan-making powers of a Farm Credit System association under 

section 7.7. 

‘‘(B) Amendments described in subparagraph (A) to the 

charters of an association and the related Farm Credit Bank 

shall be approved by the Farm Credit Administration, subject 

to any conditions of approval imposed, by not later than 30 

days after the date on which the Farm Credit Administration 

receives all approvals required by section 7.7(a)(2).’’. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 

U.S.C. 2252(a)(2)) is amended— 

(A) by striking ‘‘(2)(A)’’ and inserting ‘‘(2)’’; and 

(B) by striking subparagraphs (B) and (C). 

(2) SECTION 410 OF THE 1987 ACT.—Section 410(e)(1)(A)(iii) 

of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; 

Public Law 100–233) is amended by inserting ‘‘(except section 

7.7 of that Act)’’ after ‘‘(12 U.S.C. 2001 et seq.)’’. 

(3) SECTION 401 OF THE 1992 ACT.—Section 401(b) of the 

Farm Credit Banks and Associations Safety and Soundness 

Act of 1992 (12 U.S.C. 2011 note; Public Law 102–552) is 

amended— 

(A) by inserting ‘‘(except section 7.7 of the Farm Credit 

Act of 1971)’’ after ‘‘provision of law’’; and 
H. R. 2419—239 

(B) by striking ‘‘, subject to such limitations’’ and all 

that follows through the end of the paragraph and inserting 

a period. 

(d) EFFECTIVE DATE.—The amendments made by this section 

take effect on January 1, 2010. 

Subtitle F—Miscellaneous 

SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND. 

The first section of Public Law 91–229 (25 U.S.C. 488) is 

amended— 

(1) by striking ‘‘That the Secretary’’ and inserting the following: 

‘‘SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND. 

‘‘(a) IN GENERAL.—The Secretary’’; and 

(2) by adding at the end the following: 

‘‘(b) HIGHLY FRACTIONATED LAND.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

of Agriculture may make and insure loans in accordance with 

section 309 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1929) to eligible purchasers of highly fractionated 

land pursuant to section 205(c) of the Indian Land Consolidation Act (25 U.S.C. 2204(c)). 

‘‘(2) EXCLUSION.—Section 4 shall not apply to trust land, 

restricted tribal land, or tribal corporation land that is mortgaged in accordance with paragraph (1).’’. 

TITLE VI—RURAL DEVELOPMENT 

Subtitle A—Consolidated Farm and Rural 

Development Act 

SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY 

GRANTS. 

Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking 

‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’. 

SEC. 6002. SEARCH GRANTS. 

(a) IN GENERAL.—Section 306(a)(2) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by 

adding at the end the following: 

‘‘(C) SPECIAL EVALUATION ASSISTANCE FOR RURAL

COMMUNITIES AND HOUSEHOLDS PROGRAM.— 

‘‘(i) IN GENERAL.—The Secretary may establish the 

Special Evaluation Assistance for Rural Communities 

and Households (SEARCH) program, to make 

predevelopment planning grants for feasibility studies, 

design assistance, and technical assistance, to financially distressed communities in rural areas with populations of 2,500 or fewer inhabitants for water and 

waste disposal projects described in paragraph (1), this 

paragraph, and paragraph (24). 

‘‘(ii) TERMS.— 
H. R. 2419—240 

‘‘(I) DOCUMENTATION.—With respect to grants 

made under this subparagraph, the Secretary shall 

require the lowest amount of documentation practicable. 

‘‘(II) MATCHING.—Notwithstanding any other 

provisions in this subsection, the Secretary may 

fund up to 100 percent of the eligible costs of 

grants provided under this subparagraph, as determined by the Secretary. 

‘‘(iii) FUNDING.—The Secretary may use not more 

than 4 percent of the total amount of funds made 

available for a fiscal year for water, waste disposal, 

and essential community facility activities under this 

title to carry out this subparagraph. 

‘‘(iv) RELATIONSHIP TO OTHER AUTHORITY.—The 

funds and authorities provided under this subparagraph are in addition to any other funds or authorities 

the Secretary may have to carry out activities described 

in clause (i).’’. 

(b) CONFORMING AMENDMENT.—Subtitle D of title VI of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee 

et seq.) is repealed. 

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS. 

Section 306(a)(11)(D) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking 

‘‘1996 through 2007’’ and inserting ‘‘2008 through 2012’’. 

SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN 

GUARANTEES. 

Section 306(a)(19)(C)(ii) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended by striking 

‘‘April’’ and inserting ‘‘June’’. 

SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND. 

Section 306(a)(20)(E) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1926(a)(20)(E)) is amended— 

(1) by striking ‘‘state’’ and inserting ‘‘State’’; and 

(2) by striking ‘‘dial-up Internet access or’’. 

SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM. 

Section 306(a)(22)(C) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking 

‘‘$15,000,000 for fiscal year 2003’’ and inserting ‘‘$25,000,000 for 

fiscal year 2008’’. 

SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 

FACILITIES. 

Section 306(a)(25) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(25)) is amended— 

(1) in subparagraph (A)— 

(A) by striking ‘‘tribal colleges and universities’’ and 

inserting ‘‘an entity that is a Tribal College or University’’; 

and 

(B) by striking ‘‘tribal college or university’’ and 

inserting ‘‘Tribal College or University’’; 
H. R. 2419—241 

(2) by striking subparagraph (B) and inserting the following: 

‘‘(B) FEDERAL SHARE.—The Secretary shall establish 

the maximum percentage of the cost of the facility that 

may be covered by a grant under this paragraph, except 

that the Secretary may not require non-Federal financial 

support in an amount that is greater than 5 percent of 

the total cost of the facility.’’; and 

(3) in subparagraph (C), by striking ‘‘2003 through 2007’’ 

and inserting ‘‘2008 through 2012’’. 

SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT PROGRAM. 

Section 306A(i)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking ‘‘2003 

through 2007’’ and inserting ‘‘2008 through 2012’’. 

SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 

ALASKA. 

(a) IN GENERAL.—Section 306D(d)(1) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by 

striking ‘‘2001 through 2007’’ and inserting ‘‘2008 through 2012’’. 

(b) RURAL COMMUNITIES ASSISTANCE.—Section 4009 of the Solid 

Waste Disposal Act (42 U.S.C. 6949) is amended by adding at 

the end the following: 

‘‘(e) ADDITIONAL APPROPRIATIONS.— ‘‘(1) IN GENERAL.—There are authorized to be appropriated 

to carry out this section for the Denali Commission to provide 

assistance to municipalities in the State of Alaska $1,500,000 

for each of fiscal years 2008 through 2012. 

‘‘(2) ADMINISTRATION.—For the purpose of carrying out this 

subsection, the Denali Commission shall— 

‘‘(A) be considered a State; and 

‘‘(B) comply with all other requirements and limitations 

of this section.’’. 

SEC. 6010. 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. 

Section 306E of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1926e) is amended— 

(1) in subsection (b)(2)(C), by striking ‘‘$8,000’’ and 

inserting ‘‘$11,000’’; and 

(2) in subsection (d), by striking ‘‘2003 through 2007’’ and 

inserting ‘‘2008 through 2012’’. 

SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES LOANS. 

Section 307(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end 

the following: 

‘‘(E) INTEREST RATES FOR WATER AND WASTE DISPOSAL

FACILITIES LOANS.— ‘‘(i) IN GENERAL.—Except as provided in clause 

(ii) and notwithstanding subparagraph (A), in the case 

of a direct loan for a water or waste disposal facility— 
H. R. 2419—242 

‘‘(I) in the case of a loan that would be subject 

to the 5 percent interest rate limitation under 

subparagraph (A), the Secretary shall establish 

the interest rate at a rate that is equal to 60 

percent of the current market yield for outstanding 

municipal obligations with remaining periods to 

maturity comparable to the average maturity of 

the loan, adjusted to the nearest 1⁄8 of 1 percent; 

and 

‘‘(II) in the case of a loan that would be subject 

to the 7 percent limitation under subparagraph 

(A), the Secretary shall establish the interest rate 

at a rate that is equal to 80 percent of the current 

market yield for outstanding municipal obligations 

with remaining periods to maturity comparable 

to the average maturity of the loan, adjusted to 

the nearest 1⁄8 of 1 percent. 

‘‘(ii) EXCEPTION.—Clause (i) does not apply to a 

loan for a specific project that is the subject of a 

loan that has been approved, but not closed, as of 

the date of enactment of this subparagraph.’’. 

SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE. 

(a) IN GENERAL.—Section 310B of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1932) is amended— 

(1) by striking ‘‘SEC. 310B. (a)’’ and inserting the following: 

‘‘SEC. 310B. ASSISTANCE FOR RURAL ENTITIES. 

‘‘(a) LOANS TO PRIVATE BUSINESS ENTERPRISES.— ‘‘(1) DEFINITIONS.—In this subsection:’’; 

(2) in subsection (a)— 

(A) by moving the second and fourth sentences so 

as to appear as the second and first sentences, respectively; 

(B) in the sentence beginning ‘‘As used in this subsection, the’’ (as moved by subparagraph (A)), by striking 

‘‘As used in this subsection, the’’ and inserting the following: 

‘‘(A) AQUACULTURE.—The’’; 

(C) in the sentence beginning ‘‘For the purposes of 

this subsection, the’’, by striking ‘‘For the purposes of this 

subsection, the’’ and inserting the following: 

‘‘(B) SOLAR ENERGY.—The’’; 

(D) in the sentence beginning ‘‘The Secretary may 

also’’— 

(i) by striking ‘‘The Secretary may also’’ and 

inserting the following: 

‘‘(2) LOAN PURPOSES.—The Secretary may’’; 

(ii) by inserting ‘‘and private investment funds that 

invest primarily in cooperative organizations’’ after ‘‘or 

nonprofit’’; 

(iii) by striking ‘‘of (1) improving’’ and inserting 

‘‘of— 

‘‘(A) improving’’; 

(iv) by striking ‘‘control, (2) the’’ and inserting 

‘‘control; 

‘‘(B) the’’; 

(v) by striking ‘‘areas, (3) reducing’’ and inserting 

‘‘areas; 
H. R. 2419—243 

‘‘(C) reducing’’; 

(vi) by striking ‘‘areas, and (4) to’’ and inserting 

‘‘areas; and 

‘‘(D) to’’; 

(E) in the sentence beginning ‘‘Such loans,’’, by striking 

‘‘Such loans,’’ and inserting the following: 

‘‘(3) LOAN GUARANTEES.—Loans described in paragraph 

(2),’’; and 

(F) in the last sentence, by striking ‘‘No loan’’ and 

inserting the following: 

‘‘(4) MAXIMUM AMOUNT OF PRINCIPAL.—No loan’’; and 

(3) in subsection (g)— 

(A) in paragraph (1), by inserting ‘‘, including guarantees described in paragraph (3)(A)(ii)’’ before the period 

at the end; 

(B) in paragraph (3)(A)— 

(i) by striking ‘‘(A) IN GENERAL.—The Secretary’’ 

and inserting the following: 

‘‘(A) ELIGIBILITY.— 

‘‘(i) IN GENERAL.—The Secretary’’; and 

(ii) by adding at the end the following: 

‘‘(ii) EQUITY.—The Secretary may guarantee a loan 

made for the purchase of preferred stock or similar 

equity issued by a cooperative organization or a fund 

that invests primarily in cooperative organizations, if 

the guarantee significantly benefits 1 or more entities 

eligible for assistance for the purposes described in 

subsection (a)(1), as determined by the Secretary.’’; 

and 

(C) in paragraph (8)(A)(ii), by striking ‘‘a project— 

’’ and all that follows through the end of subclause (II) 

and inserting ‘‘a project that— 

‘‘(I)(aa) is in a rural area; and 

‘‘(bb) provides for the value-added processing 

of agricultural commodities; or 

‘‘(II) significantly benefits 1 or more entities 

eligible for assistance for the purposes described 

in subsection (a)(1), as determined by the Secretary.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by 

striking clause (ii) and inserting the following: 

‘‘(ii) section 310B(a)(2)(A); and’’. 

(2) Section 310B(g) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1932(g)) is amended by striking 

‘‘subsection (a)(1)’’ each place it appears in paragraphs (1), 

(6)(A)(iii), and (8)(C) and inserting ‘‘subsection (a)(2)(A)’’. 

(3) Section 333A(g)(1)(B) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended 

by striking ‘‘section 310B(a)(1)’’ and inserting ‘‘section 

310B(a)(2)(A)’’. 

(4) Section 381E(d)(3)(B) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended 

by striking ‘‘section 310B(a)(1)’’ and inserting ‘‘section 

310B(a)(2)(A)’’. 
H. R. 2419—244 

SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS. 

(a) ELIGIBILITY.—Section 310B(e)(5) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 1932(e)(5)) is amended— 

(1) in subparagraph (A), by striking ‘‘administering a 

nationally coordinated, regionally or State-wide operated 

project’’ and inserting ‘‘carrying out activities to promote and 

assist the development of cooperatively and mutually owned 

businesses’’; 

(2) in subparagraph (B), by inserting ‘‘to promote and assist 

the development of cooperatively and mutually owned 

businesses’’ before the semicolon; 

(3) by striking subparagraph (D); 

(4) by redesignating subparagraph (E) as subparagraph 

(D); 

(5) in subparagraph (D) (as so redesignated), by striking 

‘‘and’’ at the end; 

(6) by inserting after subparagraph (D) (as so redesignated) 

the following: 

‘‘(E) demonstrate a commitment to— 

‘‘(i) networking with and sharing the results of 

the efforts of the center with other cooperative development centers and other organizations involved in rural 

economic development efforts; and 

‘‘(ii) developing multiorganization and multistate 

approaches to addressing the economic development 

and cooperative needs of rural areas; and’’; and 

(7) in subparagraph (F), by striking ‘‘providing greater 

than’’ and inserting ‘‘providing’’. 

(b) AUTHORITY TO AWARD MULTIYEAR GRANTS.—Section 310B(e) 

of the Consolidated Farm and Rural Development Act (7 U.S.C. 

1932(e)) is amended by striking paragraph (6) and inserting the 

following: 

‘‘(6) GRANT PERIOD.— 

‘‘(A) IN GENERAL.—A grant awarded to a center that 

has received no prior funding under this subsection shall 

be made for a period of 1 year. 

‘‘(B) MULTIYEAR GRANTS.—If the Secretary determines 

it to be in the best interest of the program, the Secretary 

shall award grants for a period of more than 1 year, but 

not more than 3 years, to a center that has successfully 

met the parameters described in paragraph (5), as determined by the Secretary.’’. 

(c) AUTHORITY TO EXTEND GRANT PERIOD.—Section 310B(e) 

of the Consolidated Farm and Rural Development Act (7 U.S.C. 

1932(e)) is amended— 

(1) by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (12), respectively; and 

(2) by inserting after paragraph (6) the following: 

‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.—The Secretary 

may extend for 1 additional 12-month period the period in 

which a grantee may use a grant made under this subsection.’’. 

(d) COOPERATIVE RESEARCH PROGRAM.—Section 310B(e) of the 

Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) 

is amended by inserting after paragraph (9) (as redesignated by 

subsection (c)(1)) the following: 

‘‘(10) COOPERATIVE RESEARCH PROGRAM.—The Secretary 

shall enter into a cooperative research agreement with 1 or 
H. R. 2419—245 

more qualified academic institutions in each fiscal year to conduct research on the effects of all types of cooperatives on 

the national economy.’’. 

(e) ADDRESSING NEEDS OF MINORITY COMMUNITIES.—Section 

310B(e) of the Consolidated Farm and Rural Development Act (7 

U.S.C. 1932(e)) is amended by inserting after paragraph (10) (as 

added by subsection (d)) the following: 

‘‘(11) ADDRESSING NEEDS OF MINORITY COMMUNITIES.— ‘‘(A) DEFINITION OF SOCIALLY DISADVANTAGED GROUP.— In this paragraph, the term ‘socially disadvantaged group’ 

has the meaning given the term in section 355(e). 

‘‘(B) RESERVATION OF FUNDS.— ‘‘(i) IN GENERAL.—If the total amount appropriated 

under paragraph (12) for a fiscal year exceeds 

$7,500,000, the Secretary shall reserve an amount 

equal to 20 percent of the total amount appropriated 

for grants for cooperative development centers, individual cooperatives, or groups of cooperatives— 

‘‘(I) that serve socially disadvantaged groups; 

and 

‘‘(II) a majority of the boards of directors or 

governing boards of which are comprised of individuals who are members of socially disadvantaged 

groups. 

‘‘(ii) INSUFFICIENT APPLICATIONS.—To the extent 

there are insufficient applications to carry out clause 

(i), the Secretary shall use the funds as otherwise 

authorized by this subsection.’’. 

(f) AUTHORIZATION OF APPROPRIATIONS.—Paragraph (12) of section 310B(e) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1932(e)) (as redesignated by subsection (c)(1)) is 

amended by striking ‘‘1996 through 2007’’ and inserting ‘‘2008 

through 2012’’. 

SEC. 6014. GRANTS TO BROADCASTING SYSTEMS. 

Section 310B(f)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(f)(3)) is amended by striking ‘‘2002 through 

2007’’ and inserting ‘‘2008 through 2012’’. 

SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL 

FOOD PRODUCTS. 

Section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)) is amended by adding at the end 

the following: 

‘‘(9) LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL

FOOD PRODUCTS.— ‘‘(A) DEFINITIONS.—In this paragraph: 

‘‘(i) LOCALLY OR REGIONALLY PRODUCED AGRICUL- TURAL FOOD PRODUCT.—The term ‘locally or regionally 

produced agricultural food product’ means any agricultural food product that is raised, produced, and distributed in— 

‘‘(I) the locality or region in which the final 

product is marketed, so that the total distance 

that the product is transported is less than 400 

miles from the origin of the product; or 

‘‘(II) the State in which the product is produced. 
H. R. 2419—246 

‘‘(ii) UNDERSERVED COMMUNITY.—The term ‘underserved community’ means a community (including an 

urban or rural community and an Indian tribal community) that has, as determined by the Secretary— 

‘‘(I) limited access to affordable, healthy foods, 

including fresh fruits and vegetables, in grocery 

retail stores or farmer-to-consumer direct markets; 

and 

‘‘(II) a high rate of hunger or food insecurity 

or a high poverty rate. 

‘‘(B) LOAN AND LOAN GUARANTEE PROGRAM.— 

‘‘(i) IN GENERAL.—The Secretary shall make or 

guarantee loans to individuals, cooperatives, cooperative organizations, businesses, and other entities to 

establish and facilitate enterprises that process, distribute, aggregate, store, and market locally or regionally produced agricultural food products to support 

community development and farm and ranch income. 

‘‘(ii) REQUIREMENT.—The recipient of a loan or loan 

guarantee under clause (i) shall include in an appropriate agreement with retail and institutional facilities 

to which the recipient sells locally or regionally produced agricultural food products a requirement to 

inform consumers of the retail or institutional facilities 

that the consumers are purchasing or consuming 

locally or regionally produced agricultural food products. 

‘‘(iii) PRIORITY.—In making or guaranteeing a loan 

under clause (i), the Secretary shall give priority to 

projects that have components benefitting underserved 

communities. 

‘‘(iv) REPORTS.—Not later than 2 years after the 

date of enactment of this paragraph and annually 

thereafter, the Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry 

of the Senate a report that describes projects carried 

out using loans or loan guarantees made under clause 

(i), including— 

‘‘(I) the characteristics of the communities 

served; and 

‘‘(II) resulting benefits. 

‘‘(v) RESERVATION OF FUNDS.— 

‘‘(I) IN GENERAL.—For each of fiscal years 2008 

through 2012, the Secretary shall reserve not less 

than 5 percent of the funds made available to 

carry out this subsection to carry out this subparagraph. 

‘‘(II) AVAILABILITY OF FUNDS.—Funds reserved 

under subclause (I) for a fiscal year shall be 

reserved until April 1 of the fiscal year.’’. 

SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS. 

Section 310B of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1932) is amended by adding at the end the following: 

‘‘(i) APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS

PROGRAM.— 
H. R. 2419—247 

‘‘(1) DEFINITION OF NATIONAL NONPROFIT AGRICULTURAL

ASSISTANCE INSTITUTION.—In this subsection, the term ‘national 

nonprofit agricultural assistance institution’ means an 

organization that— 

‘‘(A) is described in section 501(c)(3) of the Internal 

Revenue Code of 1986 and exempt from taxation under 

501(a) of that Code; 

‘‘(B) has staff and offices in multiple regions of the 

United States; 

‘‘(C) has experience and expertise in operating national 

agriculture technical assistance programs; 

‘‘(D) expands markets for the agricultural commodities 

produced by producers through the use of practices that 

enhance the environment, natural resource base, and 

quality of life; and 

‘‘(E) improves the economic viability of agricultural 

operations. 

‘‘(2) ESTABLISHMENT.—The Secretary shall establish a 

national appropriate technology transfer for rural areas program to assist agricultural producers that are seeking information to— 

‘‘(A) reduce input costs; 

‘‘(B) conserve energy resources; 

‘‘(C) diversify operations through new energy crops and 

energy generation facilities; and 

‘‘(D) expand markets for agricultural commodities produced by the producers by using practices that enhance 

the environment, natural resource base, and quality of 

life. 

‘‘(3) IMPLEMENTATION.— 

‘‘(A) IN GENERAL.—The Secretary shall carry out the 

program under this subsection by making a grant to, or 

offering to enter into a cooperative agreement with, a 

national nonprofit agricultural assistance institution. 

‘‘(B) GRANT AMOUNT.—A grant made, or cooperative 

agreement entered into, under subparagraph (A) shall provide 100 percent of the cost of providing information 

described in paragraph (2). 

‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to carry out this subsection 

$5,000,000 for each of fiscal years 2008 through 2012.’’. 

SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 

Section 310B of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1932) (as amended by section 6016) is amended 

by adding at the end the following: 

‘‘(j) RURAL ECONOMIC AREA PARTNERSHIP ZONES.—Effective 

beginning on the date of enactment of this subsection through 

September 30, 2012, the Secretary shall carry out those rural economic area partnership zones administratively in effect on the 

date of enactment of this subsection in accordance with the terms 

and conditions contained in the memorandums of agreement entered 

into by the Secretary for the rural economic area partnership zones, 

except as otherwise provided in this subsection.’’. 
H. R. 2419—248 

SEC. 6018. DEFINITIONS. 

(a) RURAL AREA.—Section 343(a) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 1991(a)) is amended by 

striking paragraph (13) and inserting the following: 

‘‘(13) RURAL AND RURAL AREA.— ‘‘(A) IN GENERAL.—Subject to subparagraphs (B) 

through (G), the terms ‘rural’ and ‘rural area’ mean any 

area other than— 

‘‘(i) a city or town that has a population of greater 

than 50,000 inhabitants; and 

‘‘(ii) any urbanized area contiguous and adjacent 

to a city or town described in clause (i). 

‘‘(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT

AND GUARANTEED LOANS.—For the purpose of water and 

waste disposal grants and direct and guaranteed loans 

provided under paragraphs (1), (2), and (24) of section 

306(a), the terms ‘rural’ and ‘rural area’ mean a city, town, 

or unincorporated area that has a population of no more 

than 10,000 inhabitants. 

‘‘(C) COMMUNITY FACILITY LOANS AND GRANTS.—For the 

purpose of community facility direct and guaranteed loans 

and grants under paragraphs (1), (19), (20), (21), and (24) 

of section 306(a), the terms ‘rural’ and ‘rural area’ mean 

any area other than a city, town, or unincorporated area 

that has a population of greater than 20,000 inhabitants. 

‘‘(D) AREAS RURAL IN CHARACTER.— 

‘‘(i) APPLICATION.—This subparagraph applies to— 

‘‘(I) an urbanized area described in subparagraphs (A)(ii) and (F) that— 

‘‘(aa) has 2 points on its boundary that 

are at least 40 miles apart; and 

‘‘(bb) is not contiguous or adjacent to a 

city or town that has a population of greater 

than 150,000 inhabitants or an urbanized area 

of such city or town; and 

‘‘(II) an area within an urbanized area 

described in subparagraphs (A)(ii) and (F) that 

is within 1⁄4-mile of a rural area described in 

subparagraph (A). 

‘‘(ii) DETERMINATION.—Notwithstanding any other 

provision of this paragraph, on the petition of a unit 

of local government in an area described in clause 

(i) or on the initiative of the Under Secretary for Rural 

Development, the Under Secretary may determine that 

a part of an area described in clause (i) is a rural 

area for the purposes of this paragraph, if the Under 

Secretary finds that the part is rural in character, 

as determined by the Under Secretary. 

‘‘(iii) ADMINISTRATION.—In carrying out this 

subparagraph, the Under Secretary for Rural Development shall— 

‘‘(I) not delegate the authority to carry out 

this subparagraph; 

‘‘(II) consult with the applicable rural development State or regional director of the Department 

of Agriculture and the governor of the respective 

State; 
H. R. 2419—249 

‘‘(III) provide to the petitioner an opportunity 

to appeal to the Under Secretary a determination 

made under this subparagraph; 

‘‘(IV) release to the public notice of a petition 

filed or initiative of the Under Secretary under 

this subparagraph not later than 30 days after 

receipt of the petition or the commencement of 

the initiative, as appropriate; 

‘‘(V) make a determination under this subparagraph not less than 15 days, and not more than 

60 days, after the release of the notice under subclause (IV); 

‘‘(VI) submit to the Committee on Agriculture 

of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the 

Senate an annual report on actions taken to carry 

out this subparagraph; and 

‘‘(VII) terminate a determination under this 

subparagraph that part of an area is a rural area 

on the date that data is available for the next 

decennial census conducted under section 141(a) 

of title 13, United States Code. 

‘‘(E) EXCLUSIONS.—Notwithstanding any other provision of this paragraph, in determining which census blocks 

in an urbanized area are not in a rural area (as defined 

in this paragraph), the Secretary shall exclude any cluster 

of census blocks that would otherwise be considered not 

in a rural area only because the cluster is adjacent to 

not more than 2 census blocks that are otherwise considered not in a rural area under this paragraph. 

‘‘(F) URBAN AREA GROWTH.— ‘‘(i) APPLICATION.—This subparagraph applies to— 

‘‘(I) any area that— 

‘‘(aa) is a collection of census blocks that 

are contiguous to each other; 

‘‘(bb) has a housing density that the Secretary estimates is greater than 200 housing 

units per square mile; and 

‘‘(cc) is contiguous or adjacent to an 

existing boundary of a rural area; and 

‘‘(II) any urbanized area contiguous and adjacent to a city or town described in subparagraph 

(A)(i). 

‘‘(ii) ADJUSTMENTS.—The Secretary may, by regulation only, consider— 

‘‘(I) an area described in clause (i)(I) not to 

be a rural area for purposes of subparagraphs 

(A) and (C); and 

‘‘(II) an area described in clause (i)(II) not 

to be a rural area for purposes of subparagraph 

(C). 

‘‘(iii) APPEALS.—A program applicant may appeal 

an estimate made under clause (i)(I) based on appropriate data for an area, as determined by the Secretary. 

‘‘(G) HAWAII AND PUERTO RICO.—Notwithstanding any 

other provision of this paragraph, within the areas of the 

County of Honolulu, Hawaii, and the Commonwealth of 
H. R. 2419—250 

Puerto Rico, the Secretary may designate any part of the 

areas as a rural area if the Secretary determines that 

the part is not urban in character, other than any area 

included in the Honolulu Census Designated Place or the 

San Juan Census Designated Place.’’. 

(b) REPORT.—Not later than 2 years after the date of enactment 

of this Act, the Secretary shall prepare and submit to the Committee 

on Agriculture of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a report 

that— 

(1) assesses the various definitions of the term ‘‘rural’’ 

and ‘‘rural area’’ that are used with respect to programs 

administered by the Secretary; 

(2) describes the effects that the variations in those definitions have on those programs; 

(3) make recommendations for ways to better target funds 

provided through rural development programs; and 

(4) determines the effect of the amendment made by subsection (a) on the level of rural development funding and participation in those programs in each State. 

SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP. 

Section 378 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 2008m) is amended— 

(1) in subsection (g)(1), by striking ‘‘2003 through 2007’’ 

and inserting ‘‘2008 through 2012’’; and 

(2) in subsection (h), by striking ‘‘the date that is 5 years 

after the date of enactment of this section’’ and inserting ‘‘September 30, 2012’’. 

SEC. 6020. HISTORIC BARN PRESERVATION. 

(a) GRANT PRIORITY.—Section 379A(c) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 2008o(c)) is amended— 

(1) in paragraph (2)— 

(A) in subparagraphs (A) and (B), by striking ‘‘a historic 

barn’’ each place it appears and inserting ‘‘historic barns’’; 

and 

(B) in subparagraph (C), by striking ‘‘on a historic 

barn’’ and inserting ‘‘on historic barns (including surveys)’’; 

(2) by redesignating paragraphs (3) and (4) as paragraphs 

(4) and (5), respectively; and 

(3) by inserting after paragraph (2) the following: 

‘‘(3) PRIORITY.—In making grants under this subsection, 

the Secretary shall give the highest priority to funding projects 

described in paragraph (2)(C).’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 379A(c)(5) of 

the Consolidated Farm and Rural Development Act (7 U.S.C. 

2008o(c)(5)) (as redesignated by subsection (a)(2)) is amended by 

striking ‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’. 

SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS. 

Section 379B(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008p(d)) is amended by striking ‘‘2002 through 

2007’’ and inserting ‘‘2008 through 2012’’. 
H. R. 2419—251 

SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981 et seq.) is amended by adding at the end 

the following: 

‘‘SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 

given the term in section 4 of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b). 

‘‘(2) MICROENTREPRENEUR.—The term ‘microentrepreneur’ 

means an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under 

this section, as determined by the Secretary. 

‘‘(3) MICROENTERPRISE DEVELOPMENT ORGANIZATION.—The 

term ‘microenterprise development organization’ means an 

organization that— 

‘‘(A) is— 

‘‘(i) a nonprofit entity; 

‘‘(ii) an Indian tribe, the tribal government of which 

certifies to the Secretary that— 

‘‘(I) no microenterprise development organization serves the Indian tribe; and 

‘‘(II) no rural microentrepreneur assistance 

program exists under the jurisdiction of the Indian 

tribe; or 

‘‘(iii) a public institution of higher education; 

‘‘(B) provides training and technical assistance to rural 

microentrepreneurs; 

‘‘(C) facilitates access to capital or another service 

described in subsection (b) for rural microenterprises; and 

‘‘(D) has a demonstrated record of delivering services 

to rural microentrepreneurs, or an effective plan to develop 

a program to deliver services to rural microentrepreneurs, 

as determined by the Secretary. 

‘‘(4) MICROLOAN.—The term ‘microloan’ means a business 

loan of not more than $50,000 that is provided to a rural 

microenterprise. 

‘‘(5) PROGRAM.—The term ‘program’ means the rural microentrepreneur assistance program established under subsection 

(b). 

‘‘(6) RURAL MICROENTERPRISE.—The term ‘rural microenterprise’ means— 

‘‘(A) a sole proprietorship located in a rural area; or 

‘‘(B) a business entity with not more than 10 fulltime-equivalent employees located in a rural area. 

‘‘(b) RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall establish a rural 

microentrepreneur assistance program to provide loans and 

grants to support microentrepreneurs in the development and 

ongoing success of rural microenterprises. 

‘‘(2) PURPOSE.—The purpose of the program is to provide 

microentrepreneurs with— 

‘‘(A) the skills necessary to establish new rural microenterprises; and 
H. R. 2419—252 

‘‘(B) continuing technical and financial assistance 

related to the successful operation of rural microenterprises. 

‘‘(3) LOANS.— 

‘‘(A) IN GENERAL.—The Secretary shall make loans to 

microenterprise development organizations for the purpose 

of providing fixed interest rate microloans to microentrepreneurs for startup and growing rural microenterprises. 

‘‘(B) LOAN TERMS.—A loan made by the Secretary to 

a microenterprise development organization under this 

paragraph shall— 

‘‘(i) be for a term not to exceed 20 years; and 

‘‘(ii) bear an annual interest rate of at least 1 

percent. 

‘‘(C) LOAN LOSS RESERVE FUND.—The Secretary shall 

require each microenterprise development organization 

that receives a loan under this paragraph to— 

‘‘(i) establish a loan loss reserve fund; and 

‘‘(ii) maintain the reserve fund in an amount equal 

to at least 5 percent of the outstanding balance of 

such loans owed by the microenterprise development 

organization, until all obligations owed to the Secretary 

under this paragraph are repaid. 

‘‘(D) DEFERRAL OF INTEREST AND PRINCIPAL.—The Secretary may permit the deferral of payments on principal 

and interest due on a loan to a microenterprise development organization made under this paragraph for a 2- 

year period beginning on the date the loan is made. 

‘‘(4) GRANTS.— 

‘‘(A) GRANTS TO SUPPORT RURAL MICROENTERPRISE

DEVELOPMENT.— 

‘‘(i) IN GENERAL.—The Secretary shall make grants 

to microenterprise development organizations to— 

‘‘(I) provide training, operational support, business planning, and market development assistance, and other related services to rural microentrepreneurs; and 

‘‘(II) carry out such other projects and activities as the Secretary determines appropriate to 

further the purposes of the program. 

‘‘(ii) SELECTION.—In making grants under clause 

(i), the Secretary shall— 

‘‘(I) place an emphasis on microenterprise 

development organizations that serve microentrepreneurs that are located in rural areas that have 

suffered significant outward migration, as determined by the Secretary; and 

‘‘(II) ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations— 

‘‘(aa) of varying sizes; and 

‘‘(bb) that serve racially and ethnically 

diverse populations. 

‘‘(B) GRANTS TO ASSIST MICROENTREPRENEURS.— 
H. R. 2419—253 

‘‘(i) IN GENERAL.—The Secretary shall make grants 

to microenterprise development organizations to provide marketing, management, and other technical 

assistance to microentrepreneurs that— 

‘‘(I) received a loan from the microenterprise 

development organization under paragraph (3); or 

‘‘(II) are seeking a loan from the microenterprise development organization under paragraph 

(3). 

‘‘(ii) MAXIMUM AMOUNT OF GRANT.—A microenterprise development organization shall be eligible to 

receive an annual grant under this subparagraph in 

an amount equal to not more than 25 percent of the 

total outstanding balance of microloans made by the 

microenterprise development organization under paragraph (3), as of the date the grant is awarded. 

‘‘(C) ADMINISTRATIVE EXPENSES.—Not more than 10 

percent of a grant received by a microenterprise development organization for a fiscal year under this paragraph 

may be used to pay administrative expenses. 

‘‘(c) ADMINISTRATION.— 

‘‘(1) COST SHARE.— 

‘‘(A) FEDERAL SHARE.—Subject to subparagraph (B), 

the Federal share of the cost of a project funded under 

this section shall not exceed 75 percent. 

‘‘(B) MATCHING REQUIREMENT.—As a condition of any 

grant made under this subparagraph, the Secretary shall 

require the microenterprise development organization to 

match not less than 15 percent of the total amount of 

the grant in the form of matching funds, indirect costs, 

or in-kind goods or services. 

‘‘(C) FORM OF NON-FEDERAL SHARE.—The non-Federal 

share of the cost of a project funded under this section 

may be provided— 

‘‘(i) in cash (including through fees, grants 

(including community development block grants), and 

gifts); or 

‘‘(ii) in the form of in-kind contributions. 

‘‘(2) OVERSIGHT.—At a minimum, not later than December 

1 of each fiscal year, a microenterprise development organization that receives a loan or grant under this section shall 

provide to the Secretary such information as the Secretary 

may require to ensure that assistance provided under this 

section is used for the purposes for which the loan or grant 

was made. 

‘‘(d) FUNDING.— 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to carry out this 

section, to remain available until expended— 

‘‘(A) $4,000,000 for each of fiscal years 2009 through 

2011; and 

‘‘(B) $3,000,000 for fiscal year 2012. 

‘‘(2) DISCRETIONARY FUNDING.—In addition to amounts 

made available under paragraph (1), there are authorized to 

be appropriated to carry out this section $40,000,000 for each 

of fiscal years 2009 through 2012.’’. 
H. R. 2419—254 

SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES 

FOR INDIVIDUALS WITH DISABILITIES IN RURAL AREAS. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is amended 

by adding at the end the following: 

‘‘SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES IN RURAL 

AREAS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) INDIVIDUAL WITH A DISABILITY.—The term ‘individual 

with a disability’ means an individual with a disability (as 

defined in section 3 of the Americans with Disabilities Act 

of 1990 (42 U.S.C. 12102)). 

‘‘(2) INDIVIDUALS WITH DISABILITIES.—The term ‘individuals 

with disabilities’ means more than 1 individual with a disability. 

‘‘(b) GRANTS.—The Secretary shall make grants to nonprofit 

organizations, or to a consortium of nonprofit organizations, to 

expand and enhance employment opportunities for individuals with 

disabilities in rural areas. 

‘‘(c) ELIGIBILITY.—To be eligible to receive a grant under this 

section, a nonprofit organization or consortium of nonprofit 

organizations shall have— 

‘‘(1) a significant focus on serving the needs of individuals 

with disabilities; 

‘‘(2) demonstrated knowledge and expertise in— 

‘‘(A) employment of individuals with disabilities; and 

‘‘(B) advising private entities on accessibility issues 

involving individuals with disabilities; 

‘‘(3) expertise in removing barriers to employment for 

individuals with disabilities, including access to transportation, 

assistive technology, and other accommodations; and 

‘‘(4) existing relationships with national organizations 

focused primarily on the needs of rural areas. 

‘‘(d) USES.—A grant received under this section may be used 

only to expand or enhance— 

‘‘(1) employment opportunities for individuals with disabilities in rural areas by developing national technical assistance 

and education resources to assist small businesses in a rural 

area to recruit, hire, accommodate, and employ individuals 

with disabilities; and 

‘‘(2) self-employment and entrepreneurship opportunities 

for individuals with disabilities in a rural area. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $2,000,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 6024. HEALTH CARE SERVICES. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981 et seq.) (as amended by section 6023) is amended 

by adding at the end the following: 
H. R. 2419—255 

‘‘SEC. 379G. HEALTH CARE SERVICES. 

‘‘(a) PURPOSE.—The purpose of this section is to address the 

continued unmet health needs in the Delta region through cooperation among health care professionals, institutions of higher education, research institutions, and other individuals and entities 

in the region. 

‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 

‘eligible entity’ means a consortium of regional institutions of higher 

education, academic health and research institutes, and economic 

development entities located in the Delta region that have experience in addressing the health care issues in the region. 

‘‘(c) GRANTS.—To carry out the purpose described in subsection 

(a), the Secretary may award a grant to an eligible entity for 

– 

‘‘(1) the development of – 

‘‘(A) health care services; 

‘‘(B) health education programs; and 

‘‘(C) health care job training programs; and 

‘‘(2) the development and expansion of public health-related 

facilities in the Delta region to address longstanding and unmet 

health needs of the region. 

‘‘(d) USE.—As a condition of the receipt of the grant, the eligible 

entity shall use the grant to fund projects and activities described 

in subsection (c), based on input solicited from local governments, 

public health care providers, and other entities in the Delta region. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section, 

$3,000,000 for each of fiscal years 2008 through 2012.’’. 

SEC. 6025. DELTA REGIONAL AUTHORITY. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 382M(a) of 

the Consolidated Farm and Rural Development Act (7 U.S.C. 

2009aa–12(a)) is amended by striking ‘‘2001 through 2007’’ and 

inserting ‘‘2008 through 2012’’. 

(b) TERMINATION OF AUTHORITY.—Section 382N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa–13) is 

amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

(c) EXPANSION.—Section 4(2) of the Delta Development Act 

(42 U.S.C. 3121 note; Public Law 100–460) is amended— 

(1) in subparagraph (D), by inserting ‘‘Beauregard, 

Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red 

River, St. Mary, Vermillion, Webster,’’ after ‘‘St. James,’’; and 

(2) in subparagraph (E)— 

(A) by inserting ‘‘Jasper,’’ after ‘‘Copiah,’’; and 

(B) by inserting ‘‘Smith,’’ after ‘‘Simpson,’’. 

SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY. 

(a) DEFINITION OF REGION.—Section 383A(4) of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 2009bb(4)) is amended 

by inserting ‘‘Missouri (other than counties included in the Delta 

Regional Authority),’’ after ‘‘Minnesota,’’. 

(b) ESTABLISHMENT.—Section 383B of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 2009bb–1) is amended— 

(1) in subsection (a), by adding at the end the following: 

‘‘(4) FAILURE TO CONFIRM.— 

‘‘(A) FEDERAL MEMBER.—Notwithstanding any other 

provision of this section, if a Federal member described 
H. R. 2419—256 

in paragraph (2)(A) has not been confirmed by the Senate 

by not later than 180 days after the date of enactment 

of this paragraph, the Authority may organize and operate 

without the Federal member. 

‘‘(B) INDIAN CHAIRPERSON.—In the case of the Indian 

Chairperson, if no Indian Chairperson is confirmed by the 

Senate, the regional authority shall consult and coordinate 

with the leaders of Indian tribes in the region concerning 

the activities of the Authority, as appropriate.’’; 

(2) in subsection (d)— 

(A) in paragraph (1), by striking ‘‘to establish priorities 

and’’ and inserting ‘‘for multistate cooperation to advance 

the economic and social well-being of the region and to’’; 

(B) in paragraph (3), by striking ‘‘local development 

districts,’’ and inserting ‘‘regional and local development 

districts or organizations, regional boards established under 

subtitle I,’’; 

(C) in paragraph (4), by striking ‘‘cooperation;’’ and 

inserting ‘‘cooperation for— 

‘‘(i) renewable energy development and transmission; 

‘‘(ii) transportation planning and economic development; 

‘‘(iii) information technology; 

‘‘(iv) movement of freight and individuals within 

the region; 

‘‘(v) federally-funded research at institutions of 

higher education; and 

‘‘(vi) conservation land management;’’; 

(D) by striking paragraph (6) and inserting the following: 

‘‘(6) enhance the capacity of, and provide support for, 

multistate development and research organizations, local 

development organizations and districts, and resource conservation districts in the region;’’; and 

(E) in paragraph (7), by inserting ‘‘renewable energy,’’ 

after ‘‘commercial,’’. 

(3) in subsection (f)(2), by striking ‘‘the Federal cochairperson’’ and inserting ‘‘a cochairperson’’; 

(4) in subsection (g)(1), by striking subparagraphs (A) 

through (C) and inserting the following: 

‘‘(A) for each of fiscal years 2008 and 2009, 100 percent; 

‘‘(B) for fiscal year 2010, 75 percent; and 

‘‘(C) for fiscal year 2011 and each fiscal year thereafter, 

50 percent.’’. 

(c) INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND

EFFICIENCY.— 

(1) IN GENERAL.—Subtitle G of the Consolidated Farm and 

Rural Development Act is amended— 

(A) by redesignating sections 383C through 383N (7 

U.S.C. 2009bb–2 through 2009bb–13) as sections 383D 

through 383O, respectively; and 

(B) by inserting after section 383B (7 U.S.C. 2009bb– 

1) the following: 
H. R. 2419—257 

‘‘SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND EFFICIENCY. 

‘‘(a) IN GENERAL.—The Authority shall provide assistance to 

States in developing regional plans to address multistate economic 

issues, including plans— 

‘‘(1) to develop a regional transmission system for movement of renewable energy to markets outside the region; 

‘‘(2) to address regional transportation concerns, including 

the establishment of a Northern Great Plains Regional 

Transportation Working Group; 

‘‘(3) to encourage and support interstate collaboration on 

federally-funded research that is in the national interest; and 

‘‘(4) to establish a Regional Working Group on Agriculture 

Development and Transportation. 

‘‘(b) ECONOMIC ISSUES.—The multistate economic issues 

referred to in subsection (a) shall include— 

‘‘(1) renewable energy development and transmission; 

‘‘(2) transportation planning and economic development; 

‘‘(3) information technology; 

‘‘(4) movement of freight and individuals within the region; 

‘‘(5) federally-funded research at institutions of higher education; and 

‘‘(6) conservation land management.’’. 

(2) CONFORMING AMENDMENTS.— 

(A) Section 383B(c)(3)(B) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2009bb–1(c)(3)(B)) is 

amended by striking ‘‘383I’’ and inserting ‘‘383J’’. 

(B) Section 383D(a) of the Consolidated Farm and 

Rural Development Act (as redesignated by paragraph 

(1)(A)) is amended by striking ‘‘383I’’ and inserting ‘‘383J’’. 

(C) Section 383E of the Consolidated Farm and Rural 

Development Act (as so redesignated) is amended— 

(i) in subsection (b)(1), by striking ‘‘383F(b)’’ and 

inserting ‘‘383G(b)’’; and 

(ii) in subsection (c)(2)(A), by striking ‘‘383I’’ and 

inserting ‘‘383J’’. 

(D) Section 383G of the Consolidated Farm and Rural 

Development Act (as so redesignated) is amended— 

(i) in subsection (b)— 

(I) in paragraph (1), by striking ‘‘383M’’ and 

inserting ‘‘383N’’; and 

(II) in paragraph (2), by striking ‘‘383D(b)’’ 

and inserting ‘‘383E(b)’’; 

(ii) in subsection (c)(2)(A), by striking ‘‘383E(b)’’ 

and inserting ‘‘383F(b)’’; and 

(iii) in subsection (d)— 

(I) by striking ‘‘383M’’ and inserting ‘‘383N’’; 

and 

(II) by striking ‘‘383C(a)’’ and inserting 

‘‘383D(a)’’. 

(E) Section 383J(c)(2) of the Consolidated Farm and 

Rural Development Act (as so redesignated) is amended 

by striking ‘‘383H’’ and inserting ‘‘383I’’. 

(d) ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.—Section 383D of the Consolidated Farm and Rural Development Act 

(as redesignated by subsection (c)(1)(A)) is amended— 

(1) in subsection (a)— 
H. R. 2419—258 

(A) in paragraph (1), by striking ‘‘transportation and 

telecommunication’’ and inserting ‘‘transportation, renewable energy transmission, and telecommunication’’; and 

(B) by redesignating paragraphs (1) and (2) as paragraphs (2) and (1), respectively, and moving those paragraphs so as to appear in numerical order; and 

(2) in subsection (b)(2), by striking ‘‘the activities in the 

following order or priority’’ and inserting ‘‘the following activities’’. 

(e) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—Section 

383E(a) of the Consolidated Farm and Rural Development Act 

(as redesignated by subsection (c)(1)(A)) is amended by striking 

‘‘, including local development districts,’’. 

(f) MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND

ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.—Section 383F 

of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended— 

(1) by striking the section heading and inserting 

‘‘MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND

ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.’’; and 

(2) by striking subsections (a) through (c) and inserting 

the following: 

‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVELOPMENT DISTRICT OR ORGANIZATION.—In this section, the term ‘multistate and 

local development district or organization’ means an entity— 

‘‘(1) that— 

‘‘(A) is a planning district in existence on the date 

of enactment of this subtitle that is recognized by the 

Economic Development Administration of the Department 

of Commerce; or 

‘‘(B) is— 

‘‘(i) organized and operated in a manner that 

ensures broad-based community participation and an 

effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; 

‘‘(ii) a nonprofit incorporated body organized or 

chartered under the law of the State in which the 

entity is located; 

‘‘(iii) a nonprofit agency or instrumentality of a 

State or local government; 

‘‘(iv) a public organization established before the 

date of enactment of this subtitle under State law 

for creation of multijurisdictional, area-wide planning 

organizations; 

‘‘(v) a nonprofit agency or instrumentality of a 

State that was established for the purpose of assisting 

with multistate cooperation; or 

‘‘(vi) a nonprofit association or combination of 

bodies, agencies, and instrumentalities described in 

clauses (ii) through (v); and 

‘‘(2) that has not, as certified by the Authority (in consultation with the Federal cochairperson or Secretary, as appropriate)— 

‘‘(A) inappropriately used Federal grant funds from 

any Federal source; or 
H. R. 2419—259 

‘‘(B) appointed an officer who, during the period in 

which another entity inappropriately used Federal grant 

funds from any Federal source, was an officer of the other 

entity. 

‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS.— 

‘‘(1) IN GENERAL.—The Authority may make grants for 

administrative expenses under this section to multistate, local, 

and regional development districts and organizations. 

‘‘(2) CONDITIONS FOR GRANTS.— 

‘‘(A) MAXIMUM AMOUNT.—The amount of any grant 

awarded under paragraph (1) shall not exceed 80 percent 

of the administrative expenses of the multistate, local, or 

regional development district or organization receiving the 

grant. 

‘‘(B) MAXIMUM PERIOD.—No grant described in paragraph (1) shall be awarded for a period greater than 3 

years. 

‘‘(3) LOCAL SHARE.—The contributions of a multistate, local, 

or regional development district or organization for administrative expenses may be in cash or in kind, fairly evaluated, 

including space, equipment, and services. 

‘‘(c) DUTIES.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

a local development district shall operate as a lead organization 

serving multicounty areas in the region at the local level. 

‘‘(2) DESIGNATION.—The Federal cochairperson may designate an Indian tribe or multijurisdictional organization to 

serve as a lead organization in such cases as the Federal 

cochairperson or Secretary, as appropriate, determines appropriate.’’. 

(g) DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED

COUNTIES.—Section 383G of the Consolidated Farm and Rural 

Development Act (as redesignated by subsection (c)(1)(A)) is 

amended— 

(1) in subsection (b)(1), by striking ‘‘75’’ and inserting ‘‘50’’; 

(2) by striking subsection (c); 

(3) by redesignating subsection (d) as subsection (c); and 

(4) in subsection (c) (as so redesignated)— 

(A) in the subsection heading, by inserting ‘‘RENEW- ABLE ENERGY,’’ after‘‘TELECOMMUNICATION’’; and 

(B) by inserting ‘‘, renewable energy,’’ after ‘‘telecommunication,’’. 

(h) DEVELOPMENT PLANNING PROCESS.—Section 383H of the 

Consolidated Farm and Rural Development Act (as redesignated 

by subsection (c)(1)(A)) is amended— 

(1) in subsection (c)(1), by striking subparagraph (A) and 

inserting the following: 

‘‘(A) multistate, regional, and local development districts and organizations; and’’; and 

(2) in subsection (d)(1), by striking ‘‘State and local development districts’’ and inserting ‘‘multistate, regional, and local 

development districts and organizations’’. 

(i) PROGRAM DEVELOPMENT CRITERIA.—Section 383I(a)(1) of the 

Consolidated Farm and Rural Development Act (as redesignated 

by subsection (c)(1)(A)) is amended by inserting ‘‘multistate or’’ 

before ‘‘regional’’. 
H. R. 2419—260 

(j) AUTHORIZATION OF APPROPRIATIONS.—Section 383N(a) of the 

Consolidated Farm and Rural Development Act (as redesignated 

by subsection (c)(1)(A)) is amended by striking ‘‘2002 through 2007’’ 

and inserting ‘‘2008 through 2012’’. 

(k) TERMINATION OF AUTHORITY.—Section 383O of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM. 

(a) ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.—Section 384F(b)(3)(A) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 2009cc–5(b)(3)(A)) is amended by striking ‘‘In the 

event’’ and inserting the following: 

‘‘(i) AUTHORITY TO PREPAY.—A debenture may be 

prepaid at any time without penalty. 

‘‘(ii) REDUCTION OF GUARANTEE.—Subject to clause 

(i), if’’. 

(b) FEES.—Section 384G of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 2009cc–6) is amended— 

(1) in subsection (a), by striking ‘‘such fees as the Secretary 

considers appropriate’’ and inserting ‘‘a fee that does not exceed 

$500’’; 

(2) in subsection (b), by striking ‘‘approved by the Secretary’’ and inserting ‘‘that does not exceed $500’’; and 

(3) in subsection (c)— 

(A) in paragraph (1), by striking ‘‘The’’ and inserting 

‘‘Except as provided in paragraph (3), the’’; 

(B) in paragraph (2)— 

(i) in subparagraph (A), by striking ‘‘and’’ at the 

end; 

(ii) in subparagraph (B), by striking the period 

at the end and inserting ‘‘; and’’; and 

(iii) by adding at the end the following: 

‘‘(C) shall not exceed $500 for any fee collected under 

this subsection.’’; and 

(C) by adding at the end the following: 

‘‘(3) PROHIBITION ON COLLECTION OF CERTAIN FEES.—In the 

case of a license described in paragraph (1) that was approved 

before July 1, 2007, the Secretary shall not collect any fees 

due on or after the date of enactment of this paragraph.’’. 

(c) RURAL BUSINESS INVESTMENT COMPANIES.—Section 384I(c) 

of the Consolidated Farm and Rural Development Act (7 U.S.C. 

2009cc–8(c)) is amended— 

(1) by redesignating paragraph (3) as paragraph (4); and 

(2) by inserting after paragraph (2) the following: 

‘‘(3) TIME FRAME.—Each rural business investment company shall have a period of 2 years to meet the capital requirements of this subsection.’’. 

(d) FINANCIAL INSTITUTION INVESTMENTS.—Section 384J of the 

Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc– 

9) is amended— 

(1) in subsection (a)(1), by inserting ‘‘, including an investment pool created entirely by such bank or savings association’’ 

before the period at the end; and 

(2) in subsection (c), by striking ‘‘15’’ and inserting ‘‘25’’. 
H. R. 2419—261 

(e) CONTRACTING OF FUNCTIONS.—Section 384Q of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc–16) is 

repealed. 

(f) FUNDING.—The Consolidated Farm and Rural Development 

Act is amended by striking section 384S (7 U.S.C. 2009cc–18) and 

inserting the following: 

‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS. 

‘‘There is authorized to be appropriated to carry out this subtitle 

$50,000,000 for the period of fiscal years 2008 through 2012.’’. 

SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM. 

Subtitle I of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 2009dd et seq.) is amended to read as follows: 

‘‘Subtitle I—Rural Collaborative 

Investment Program 

‘‘SEC. 385A. PURPOSE. 

‘‘The purpose of this subtitle is to establish a regional rural 

collaborative investment program— 

‘‘(1) to provide rural regions with a flexible investment 

vehicle, allowing for local control with Federal oversight, assistance, and accountability; 

‘‘(2) to provide rural regions with incentives and resources 

to develop and implement comprehensive strategies for 

achieving regional competitiveness, innovation, and prosperity; 

‘‘(3) to foster multisector community and economic development collaborations that will optimize the asset-based competitive advantages of rural regions with particular emphasis on 

innovation, entrepreneurship, and the creation of quality jobs; 

‘‘(4) to foster collaborations necessary to provide the professional technical expertise, institutional capacity, and economies 

of scale that are essential for the long-term competitiveness 

of rural regions; and 

‘‘(5) to better use Department of Agriculture and other 

Federal, State, and local governmental resources, and to leverage those resources with private, nonprofit, and philanthropic 

investments, in order to achieve measurable community and 

economic prosperity, growth, and sustainability. 

‘‘SEC. 385B. DEFINITIONS. 

‘‘In this subtitle: 

‘‘(1) BENCHMARK.—The term ‘benchmark’ means an annual 

set of goals and performance measures established for the 

purpose of assessing performance in meeting a regional investment strategy of a Regional Board. 

‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 

given the term in section 4 of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b). 

‘‘(3) NATIONAL BOARD.—The term ‘National Board’ means 

the National Rural Investment Board established under section 

385C(c). 
H. R. 2419—262 

‘‘(4) NATIONAL INSTITUTE.—The term ‘National Institute’ 

means the National Institute on Regional Rural Competitiveness and Entrepreneurship established under section 

385C(b)(2). 

‘‘(5) REGIONAL BOARD.—The term ‘Regional Board’ means 

a Regional Rural Investment Board described in section 

385D(a). 

‘‘(6) REGIONAL INNOVATION GRANT.—The term ‘regional 

innovation grant’ means a grant made by the Secretary to 

a certified Regional Board under section 385F. 

‘‘(7) REGIONAL INVESTMENT STRATEGY GRANT.—The term 

‘regional investment strategy grant’ means a grant made by 

the Secretary to a certified Regional Board under section 385E. 

‘‘(8) RURAL HERITAGE.— ‘‘(A) IN GENERAL.—The term ‘rural heritage’ means 

historic sites, structures, and districts. 

‘‘(B) INCLUSIONS.—The term ‘rural heritage’ includes 

historic rural downtown areas and main streets, neighborhoods, farmsteads, scenic and historic trails, heritage areas, 

and historic landscapes. 

‘‘SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL 

COLLABORATIVE INVESTMENT PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a Rural 

Collaborative Investment Program to support comprehensive 

regional investment strategies for achieving rural competitiveness. 

‘‘(b) DUTIES OF SECRETARY.—In carrying out this subtitle, the 

Secretary shall— 

‘‘(1) appoint and provide administrative and program support to the National Board; 

‘‘(2) establish a national institute, to be known as the 

‘National Institute on Regional Rural Competitiveness and 

Entrepreneurship’, to provide technical assistance to the Secretary and the National Board regarding regional competitiveness and rural entrepreneurship, including technical assistance 

for— 

‘‘(A) the development of rigorous analytic programs 

to assist Regional Boards in determining the challenges 

and opportunities that need to be addressed to receive 

the greatest regional competitive advantage; 

‘‘(B) the provision of support for best practices developed by the Regional Boards; 

‘‘(C) the establishment of programs to support the 

development of appropriate governance and leadership 

skills in the applicable regions; and 

‘‘(D) the evaluation of the progress and performance 

of the Regional Boards in achieving benchmarks established in a regional investment strategy; 

‘‘(3) work with the National Board to develop a national 

rural investment plan that shall— 

‘‘(A) create a framework to encourage and support a 

more collaborative and targeted rural investment portfolio 

in the United States; 

‘‘(B) establish a Rural Philanthropic Initiative, to work 

with rural communities to create and enhance the pool 

of permanent philanthropic resources committed to rural 

community and economic development; 
H. R. 2419—263 

‘‘(C) cooperate with the Regional Boards and State 

and local governments, organizations, and entities to 

ensure investment strategies are developed that take into 

consideration existing rural assets; and 

‘‘(D) encourage the organization of Regional Boards; 

‘‘(4) certify the eligibility of Regional Boards to receive 

regional investment strategy grants and regional innovation 

grants; 

‘‘(5) provide grants for Regional Boards to develop and 

implement regional investment strategies; 

‘‘(6) provide technical assistance to Regional Boards on 

issues, best practices, and emerging trends relating to rural 

development, in cooperation with the National Rural Investment Board; and 

‘‘(7) provide analytic and programmatic support for regional 

rural competitiveness through the National Institute, 

including— 

‘‘(A) programs to assist Regional Boards in determining 

the challenges and opportunities that must be addressed 

to receive the greatest regional competitive advantage; 

‘‘(B) support for best practices development by the 

regional investment boards; 

‘‘(C) programs to support the development of appropriate governance and leadership skills in the region; and 

‘‘(D) a review and evaluation of the performance of 

the Regional Boards (including progress in achieving benchmarks established in a regional investment strategy) in 

an annual report submitted to— 

‘‘(i) the Committee on Agriculture of the House 

of Representatives; and 

‘‘(ii) the Committee on Agriculture, Nutrition, and 

Forestry of the Senate. 

‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The Secretary shall 

establish within the Department of Agriculture a board to be known 

as the ‘National Rural Investment Board’. 

‘‘(d) DUTIES OF NATIONAL BOARD.—The National Board shall— 

‘‘(1) not later than 180 days after the date of establishment 

of the National Board, develop rules relating to the operation 

of the National Board; and 

‘‘(2) provide advice to— 

‘‘(A) the Secretary and subsequently review the design, 

development, and execution of the National Rural Investment Plan; 

‘‘(B) Regional Boards on issues, best practices, and 

emerging trends relating to rural development; and 

‘‘(C) the Secretary and the National Institute on the 

development and execution of the program under this subtitle. 

‘‘(e) MEMBERSHIP.— ‘‘(1) IN GENERAL.—The National Board shall consist of 14 

members appointed by the Secretary not later than 180 days 

after the date of enactment of the Food, Conservation, and 

Energy Act of 2008. 

‘‘(2) SUPERVISION.—The National Board shall be subject 

to the general supervision and direction of the Secretary. 

‘‘(3) SECTORS REPRESENTED.—The National Board shall consist of representatives from each of— 
H. R. 2419—264 

‘‘(A) nationally recognized entrepreneurship organizations; 

‘‘(B) regional strategy and development organizations; 

‘‘(C) community-based organizations; 

‘‘(D) elected members of local governments; 

‘‘(E) members of State legislatures; 

‘‘(F) primary, secondary, and higher education, job 

skills training, and workforce development institutions; 

‘‘(G) the rural philanthropic community; 

‘‘(H) financial, lending, venture capital, entrepreneurship, and other related institutions; 

‘‘(I) private sector business organizations, including 

chambers of commerce and other for-profit business 

interests; 

‘‘(J) Indian tribes; and 

‘‘(K) cooperative organizations. 

‘‘(4) SELECTION OF MEMBERS.— 

‘‘(A) IN GENERAL.—In selecting members of the 

National Board, the Secretary shall consider recommendations made by— 

‘‘(i) the chairman and ranking member of each 

of the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate; 

‘‘(ii) the Majority Leader and Minority Leader of 

the Senate; and 

‘‘(iii) the Speaker and Minority Leader of the House 

of Representatives. 

‘‘(B) EX-OFFICIO MEMBERS.—In consultation with the 

chairman and ranking member of each of the Committee 

on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the 

Senate, the Secretary may appoint not more than 3 other 

officers or employees of the Executive Branch to serve 

as ex-officio, nonvoting members of the National Board. 

‘‘(5) TERM OF OFFICE.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

term of office of a member of the National Board appointed 

under paragraph (1)(A) shall be for a period of not more 

than 4 years. 

‘‘(B) STAGGERED TERMS.—The members of the National 

Board shall be appointed to serve staggered terms. 

‘‘(6) INITIAL APPOINTMENTS.—Not later than 1 year after 

the date of enactment of the Food, Conservation, and Energy 

Act of 2008, the Secretary shall appoint the initial members 

of the National Board. 

‘‘(7) VACANCIES.—A vacancy on the National Board shall 

be filled in the same manner as the original appointment. 

‘‘(8) COMPENSATION.—A member of the National Board 

shall receive no compensation for service on the National Board, 

but shall be reimbursed for related travel and other expenses 

incurred in carrying out the duties of the member of the 

National Board in accordance with section 5702 and 5703 of 

title 5, United States Code. 

‘‘(9) CHAIRPERSON.—The National Board shall select a 

chairperson from among the members of the National Board. 
H. R. 2419—265 

‘‘(10) FEDERAL STATUS.—For purposes of Federal law, a 

member of the National Board shall be considered a special 

Government employee (as defined in section 202(a) of title 

18, United States Code). 

‘‘(f) ADMINISTRATIVE SUPPORT.—The Secretary, on a reimbursable basis from funds made available under section 385H, may 

provide such administrative support to the National Board as the 

Secretary determines is necessary. 

‘‘SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS. 

‘‘(a) IN GENERAL.—A Regional Rural Investment Board shall 

be a multijurisdictional and multisectoral group that— 

‘‘(1) represents the long-term economic, community, and 

cultural interests of a region; 

‘‘(2) is certified by the Secretary to establish a rural investment strategy and compete for regional innovation grants; 

‘‘(3) is composed of residents of a region that are broadly 

representative of diverse public, nonprofit, and private sector 

interests in investment in the region, including (to the maximum extent practicable) representatives of— 

‘‘(A) units of local, multijurisdictional, or State government, including not more than 1 representative from each 

State in the region; 

‘‘(B) nonprofit community-based development organizations, including community development financial institutions and community development corporations; 

‘‘(C) agricultural, natural resource, and other assetbased related industries; 

‘‘(D) in the case of regions with federally recognized 

Indian tribes, Indian tribes; 

‘‘(E) regional development organizations; 

‘‘(F) private business organizations, including chambers 

of commerce; 

‘‘(G)(i) institutions of higher education (as defined in 

section 101(a) of the Higher Education Act of 1965 (20 

U.S.C. 1001(a))); 

‘‘(ii) tribally controlled colleges or universities (as 

defined in section 2(a) of Tribally Controlled College or 

University Assistance Act of 1978 (25 U.S.C. 1801(a))); 

and 

‘‘(iii) tribal technical institutions; 

‘‘(H) workforce and job training organizations; 

‘‘(I) other entities and organizations, as determined 

by the Regional Board; 

‘‘(J) cooperatives; and 

‘‘(K) consortia of entities and organizations described 

in subparagraphs (A) through (J); 

‘‘(4) represents a region inhabited by— 

‘‘(A) more than 25,000 individuals, as determined in 

the latest available decennial census conducted under section 141(a) of title 13, United States Code; or 

‘‘(B) in the case of a region with a population density 

of less than 2 individuals per square mile, at least 10,000 

individuals, as determined in that latest available decennial census; 

‘‘(5) has a membership of which not less than 25 percent, 

nor more than 40 percent, represents— 
H. R. 2419—266 

‘‘(A) units of local government and Indian tribes 

described in subparagraphs (A) and (D) of paragraph (3); 

‘‘(B) nonprofit community and economic development 

organizations and institutions of higher education described 

in subparagraphs (B) and (G) of paragraph (3); or 

‘‘(C) private business (including chambers of commerce 

and cooperatives) and agricultural, natural resource, and 

other asset-based related industries described in subparagraphs (C) and (F) of paragraph (3); 

‘‘(6) has a membership that may include an officer or 

employee of a Federal agency, serving as an ex-officio, nonvoting 

member of the Regional Board to represent the agency; and 

‘‘(7) has organizational documents that demonstrate that 

the Regional Board will— 

‘‘(A) create a collaborative public-private strategy 

process; 

‘‘(B) develop, and submit to the Secretary for approval, 

a regional investment strategy that meets the requirements 

of section 385E, with benchmarks— 

‘‘(i) to promote investment in rural areas through 

the use of grants made available under this subtitle; 

and 

‘‘(ii) to provide financial and technical assistance 

to promote a broad-based regional development program aimed at increasing and diversifying economic 

growth, improved community facilities, and improved 

quality of life; 

‘‘(C) implement the approved regional investment 

strategy; 

‘‘(D) provide annual reports to the Secretary and the 

National Board on progress made in achieving the benchmarks of the regional investment strategy, including an 

annual financial statement; and 

‘‘(E) select a non-Federal organization (such as a 

regional development organization) in the local area served 

by the Regional Board that has previous experience in 

the management of Federal funds to serve as fiscal manager of any funds of the Regional Board. 

‘‘(b) URBAN AREAS.—A resident of an urban area may serve 

as an ex-officio member of a Regional Board. 

‘‘(c) DUTIES.—A Regional Board shall— 

‘‘(1) create a collaborative planning process for public-private investment within a region; 

‘‘(2) develop, and submit to the Secretary for approval, 

a regional investment strategy; 

‘‘(3) develop approaches that will create permanent 

resources for philanthropic giving in the region, to the maximum extent practicable; 

‘‘(4) implement an approved strategy; and 

‘‘(5) provide annual reports to the Secretary and the 

National Board on progress made in achieving the strategy, 

including an annual financial statement. 
H. R. 2419—267 

‘‘SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS. 

‘‘(a) IN GENERAL.—The Secretary shall make regional investment strategy grants available to Regional Boards for use in developing, implementing, and maintaining regional investment strategies. 

‘‘(b) REGIONAL INVESTMENT STRATEGY.—A regional investment 

strategy shall provide— 

‘‘(1) an assessment of the competitive advantage of a region, 

including— 

‘‘(A) an analysis of the economic conditions of the 

region; 

‘‘(B) an assessment of the current economic performance of the region; 

‘‘(C) an overview of the population, geography, 

workforce, transportation system, resources, environment, 

and infrastructure needs of the region; and 

‘‘(D) such other pertinent information as the Secretary 

may request; 

‘‘(2) an analysis of regional economic and community 

development challenges and opportunities, including— 

‘‘(A) incorporation of relevant material from other 

government-sponsored or supported plans and consistency 

with applicable State, regional, and local workforce investment strategies or comprehensive economic development 

plans; and 

‘‘(B) an identification of past, present, and projected 

Federal and State economic and community development 

investments in the region; 

‘‘(3) a section describing goals and objectives necessary 

to solve regional competitiveness challenges and meet the 

potential of the region; 

‘‘(4) an overview of resources available in the region for 

use in— 

‘‘(A) establishing regional goals and objectives; 

‘‘(B) developing and implementing a regional action 

strategy; 

‘‘(C) identifying investment priorities and funding 

sources; and 

‘‘(D) identifying lead organizations to execute portions 

of the strategy; 

‘‘(5) an analysis of the current state of collaborative public, 

private, and nonprofit participation and investment, and of 

the strategic roles of public, private, and nonprofit entities 

in the development and implementation of the regional investment strategy; 

‘‘(6) a section identifying and prioritizing vital projects, 

programs, and activities for consideration by the Secretary, 

including— 

‘‘(A) other potential funding sources; and 

‘‘(B) recommendations for leveraging past and potential 

investments; 

‘‘(7) a plan of action to implement the goals and objectives 

of the regional investment strategy; 

‘‘(8) a list of performance measures to be used to evaluate 

implementation of the regional investment strategy, including— 
H. R. 2419—268 

‘‘(A) the number and quality of jobs, including selfemployment, created during implementation of the regional 

rural investment strategy; 

‘‘(B) the number and types of investments made in 

the region; 

‘‘(C) the growth in public, private, and nonprofit investment in the human, community, and economic assets of 

the region; 

‘‘(D) changes in per capita income and the rate of 

unemployment; and 

‘‘(E) other changes in the economic environment of 

the region; 

‘‘(9) a section outlining the methodology for use in integrating the regional investment strategy with the economic 

priorities of the State; and 

‘‘(10) such other information as the Secretary determines 

to be appropriate. 

‘‘(c) MAXIMUM AMOUNT OF GRANT.—A regional investment 

strategy grant shall not exceed $150,000. 

‘‘(d) COST SHARING.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), of the share 

of the costs of developing, maintaining, evaluating, implementing, and reporting with respect to a regional investment 

strategy funded by a grant under this section— 

‘‘(A) not more than 40 percent may be paid using 

funds from the grant; and 

‘‘(B) the remaining share shall be provided by the 

applicable Regional Board or other eligible grantee. 

‘‘(2) FORM.—A Regional Board or other eligible grantee 

shall pay the share described in paragraph (1)(B) in the form 

of cash, services, materials, or other in-kind contributions, on 

the condition that not more than 50 percent of that share 

is provided in the form of services, materials, and other inkind contributions. 

‘‘SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM. 

‘‘(a) GRANTS.— 

‘‘(1) IN GENERAL.—The Secretary shall provide, on a 

competitive basis, regional innovation grants to Regional 

Boards for use in implementing projects and initiatives that 

are identified in a regional rural investment strategy approved 

under section 385E. 

‘‘(2) TIMING.—After October 1, 2008, the Secretary shall 

provide awards under this section on a quarterly funding cycle. 

‘‘(b) ELIGIBILITY.—To be eligible to receive a regional innovation 

grant, a Regional Board shall demonstrate to the Secretary that— 

‘‘(1) the regional rural investment strategy of a Regional 

Board has been reviewed by the National Board prior to 

approval by the Secretary; 

‘‘(2) the management and organizational structure of the 

Regional Board is sufficient to oversee grant projects, including 

management of Federal funds; and 

‘‘(3) the Regional Board has a plan to achieve, to the 

maximum extent practicable, the performance-based benchmarks of the project in the regional rural investment strategy. 

‘‘(c) LIMITATIONS.— 
H. R. 2419—269 

‘‘(1) AMOUNT RECEIVED.—A Regional Board may not receive 

more than $6,000,000 in regional innovation grants under this 

section during any 5-year period. 

‘‘(2) DETERMINATION OF AMOUNT.—The Secretary shall 

determine the amount of a regional innovation grant based 

on— 

‘‘(A) the needs of the region being addressed by the 

applicable regional rural investment strategy consistent 

with the purposes described in subsection (f)(2); and 

‘‘(B) the size of the geographical area of the region. 

‘‘(3) GEOGRAPHIC DIVERSITY.—The Secretary shall ensure 

that not more than 10 percent of funding made available under 

this section is provided to Regional Boards in any State. 

‘‘(d) COST-SHARING.— 

‘‘(1) LIMITATION.—Subject to paragraph (2), the amount 

of a grant made under this section shall not exceed 50 percent 

of the cost of the project. 

‘‘(2) WAIVER OF GRANTEE SHARE.—The Secretary may waive 

the limitation in paragraph (1) under special circumstances, 

as determined by the Secretary, including— 

‘‘(A) a sudden or severe economic dislocation; 

‘‘(B) significant chronic unemployment or poverty; 

‘‘(C) a natural disaster; or 

‘‘(D) other severe economic, social, or cultural duress. 

‘‘(3) OTHER FEDERAL ASSISTANCE.—For the purpose of determining cost-share limitations for any other Federal program, 

funds provided under this section shall be considered to be 

non-Federal funds. 

‘‘(e) PREFERENCES.—In providing regional innovation grants 

under this section, the Secretary shall give— 

‘‘(1) a high priority to strategies that demonstrate significant leverage of capital and quality job creation; and 

‘‘(2) a preference to an application proposing projects and 

initiatives that would— 

‘‘(A) advance the overall regional competitiveness of 

a region; 

‘‘(B) address the priorities of a regional rural investment strategy, including priorities that— 

‘‘(i) promote cross-sector collaboration, public-private partnerships, or the provision of interim financing 

or seed capital for program implementation; 

‘‘(ii) exhibit collaborative innovation and 

entrepreneurship, particularly within a public-private 

partnership; and 

‘‘(iii) represent a broad coalition of interests 

described in section 385D(a); 

‘‘(C) include a strategy to leverage public non-Federal 

and private funds and existing assets, including agricultural, natural resource, and public infrastructure assets, 

with substantial emphasis placed on the existence of real 

financial commitments to leverage available funds; 

‘‘(D) create quality jobs; 

‘‘(E) enhance the role, relevance, and leveraging potential of community and regional foundations in support of 

regional investment strategies; 
H. R. 2419—270 

‘‘(F) demonstrate a history, or involve organizations 

with a history, of successful leveraging of capital for economic development and public purposes; 

‘‘(G) address gaps in existing basic services, including 

technology, within a region; 

‘‘(H) address economic diversification, including agricultural and non-agriculturally based economies, within 

a regional framework; 

‘‘(I) improve the overall quality of life in the region; 

‘‘(J) enhance the potential to expand economic development successes across diverse stakeholder groups within 

the region; 

‘‘(K) include an effective working relationship with 1 

or more institutions of higher education, tribally controlled 

colleges or universities, or tribal technical institutions; 

‘‘(L) help to meet the other regional competitiveness 

needs identified by a Regional Board; or 

‘‘(M) protect and promote rural heritage. 

‘‘(f) USES.— ‘‘(1) LEVERAGE.—A Regional Board shall prioritize projects 

and initiatives carried out using funds from a regional innovation grant provided under this section, based in part on the 

degree to which members of the Regional Board are able to 

leverage additional funds for the implementation of the projects. 

‘‘(2) PURPOSES.—A Regional Board may use a regional 

innovation grant— 

‘‘(A) to support the development of critical infrastructure (including technology deployment and services) necessary to facilitate the competitiveness of a region; 

‘‘(B) to provide assistance to entities within the region 

that provide essential public and community services; 

‘‘(C) to enhance the value-added production, marketing, 

and use of agricultural and natural resources within the 

region, including activities relating to renewable and alternative energy production and usage; 

‘‘(D) to assist with entrepreneurship, job training, 

workforce development, housing, educational, or other 

quality of life services or needs, relating to the development 

and maintenance of strong local and regional economies; 

‘‘(E) to assist in the development of unique new 

collaborations that link public, private, and philanthropic 

resources, including community foundations; 

‘‘(F) to provide support for business and entrepreneurial investment, strategy, expansion, and development, 

including feasibility strategies, technical assistance, peer 

networks, business development funds, and other activities 

to strengthen the economic competitiveness of the region; 

‘‘(G) to provide matching funds to enable community 

foundations located within the region to build endowments 

which provide permanent philanthropic resources to implement a regional investment strategy; and 

‘‘(H) to preserve and promote rural heritage. 

‘‘(3) AVAILABILITY OF FUNDS.—The funds made available 

to a Regional Board or any other eligible grantee through 

a regional innovation grant shall remain available for the 7- 

year period beginning on the date on which the award is 

provided, on the condition that the Regional Board or other 
H. R. 2419—271 

grantee continues to be certified by the Secretary as making 

adequate progress toward achieving established benchmarks. 

‘‘(g) COST SHARING.— 

‘‘(1) WAIVER OF GRANTEE SHARE.—The Secretary may waive 

the share of a grantee of the costs of a project funded by 

a regional innovation grant under this section if the Secretary 

determines that such a waiver is appropriate, including with 

respect to special circumstances within tribal regions, in the 

event an area experiences— 

‘‘(A) a sudden or severe economic dislocation; 

‘‘(B) significant chronic unemployment or poverty; 

‘‘(C) a natural disaster; or 

‘‘(D) other severe economic, social, or cultural duress. 

‘‘(2) OTHER FEDERAL PROGRAMS.—For the purpose of determining cost-sharing requirements for any other Federal program, funds provided as a regional innovation grant under 

this section shall be considered to be non-Federal funds. 

‘‘(h) NONCOMPLIANCE.—If a Regional Board or other eligible 

grantee fails to comply with any requirement relating to the use 

of funds provided under this section, the Secretary may— 

‘‘(1) take such actions as are necessary to obtain reimbursement of unused grant funds; and 

‘‘(2) reprogram the recaptured funds for purposes relating 

to implementation of this subtitle. 

‘‘(i) PRIORITY TO AREAS WITH AWARDS AND APPROVED STRATE- GIES.— ‘‘(1) IN GENERAL.—Subject to paragraph (3), in providing 

rural development assistance under other programs, the Secretary shall give a high priority to areas that receive innovation 

grants under this section. 

‘‘(2) CONSULTATION.—The Secretary shall consult with the 

heads of other Federal agencies to promote the development 

of priorities similar to those described in paragraph (1). 

‘‘(3) EXCLUSION OF CERTAIN PROGRAMS.—Paragraph (1) 

shall not apply to the provision of rural development assistance 

under any program relating to basic health, safety, or infrastructure, including broadband deployment or minimum 

environmental needs. 

‘‘SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM. 

‘‘(a) IN GENERAL.—The Secretary may provide long-term loans 

to eligible community foundations to assist in the implementation 

of regional investment strategies. 

‘‘(b) ELIGIBLE COMMUNITY FOUNDATIONS.—To be eligible to 

receive a loan under this section, a community foundation shall— 

‘‘(1) be located in an area that is covered by a regional 

investment strategy; 

‘‘(2) match the amount of the loan with an amount that 

is at least 250 percent of the amount of the loan; and 

‘‘(3) use the loan and the matching amount to carry out 

the regional investment strategy in a manner that is targeted 

to community and economic development, including through 

the development of community foundation endowments. 

‘‘(c) TERMS.—A loan made under this section shall— 

‘‘(1) have a term of not less than 10, nor more than 20, 

years; 

‘‘(2) bear an interest rate of 1 percent per annum; and 
H. R. 2419—272 

‘‘(3) be subject to such other terms and conditions as are 

determined appropriate by the Secretary. 

‘‘SEC. 385H. AUTHORIZATION OF APPROPRIATIONS. 

‘‘There are authorized to be appropriated to carry out this 

subtitle $135,000,000 for the period of fiscal years 2009 through 

2012.’’. 

SEC. 6029. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND 

GRANT APPLICATIONS. 

(a) DEFINITION OF APPLICATION.—In this section, the term 

‘‘application’’ does not include an application for a loan or grant 

that, as of the date of enactment of this Act, is in the preapplication 

phase of consideration under regulations of the Secretary in effect 

on the date of enactment of this Act. 

(b) USE OF FUNDS.—Subject to subsection (c), the Secretary 

shall use funds made available under subsection (d) to provide 

funds for applications that are pending on the date of enactment 

of this Act for— 

(1) water or waste disposal grants or direct loans under 

paragraph (1) or (2) of section 306(a) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 1926(a)); and 

(2) emergency community water assistance grants under 

section 306A of that Act (7 U.S.C. 1926a). 

(c) LIMITATIONS.— 

(1) APPROPRIATED AMOUNTS.—Funds made available under 

this section shall be available to the Secretary to provide funds 

for applications for loans and grants described in subsection 

(b) that are pending on the date of enactment of this Act 

only to the extent that funds for the loans and grants appropriated in the annual appropriations Act for fiscal year 2007 

have been exhausted. 

(2) PROGRAM REQUIREMENTS.—The Secretary may use 

funds made available under this section to provide funds for 

a pending application for a loan or grant described in subsection 

(b) only if the Secretary processes, reviews, and approves the 

application in accordance with regulations in effect on the date 

of enactment of this Act. 

(3) PRIORITY.—In providing funding under this section for 

pending applications for loans or grants described in subsection 

(b), the Secretary shall provide funding in the following order 

of priority (until funds made available under this section are 

exhausted): 

(A) Pending applications for water systems. 

(B) Pending applications for waste disposal systems. 

(d) FUNDING.—Notwithstanding any other provision of law, of 

the funds of the Commodity Credit Corporation, the Secretary shall 

use to carry out this section $120,000,000, to remain available 

until expended. 
H. R. 2419—273 

Subtitle B—Rural Electrification Act of 

1936 

SEC. 6101. ENERGY EFFICIENCY PROGRAMS. 

Sections 2(a) and 4 of the Rural Electrification Act of 1936 

(7 U.S.C. 902(a), 904) are amended by inserting ‘‘efficiency and’’ 

before ‘‘conservation’’ each place it appears. 

SEC. 6102. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT 

LENDING. 

(a) IN GENERAL.—Section 4 of the Rural Electrification Act 

of 1936 (7 U.S.C. 904) is amended— 

(1) by designating the first, second, and third sentences 

as subsections (a), (b), and (d), respectively; and 

(2) by inserting after subsection (b) (as so designated) the 

following: 

‘‘(c) DIRECT LOANS.— 

‘‘(1) DIRECT HARDSHIP LOANS.—Direct hardship loans under 

this section shall be for the same purposes and on the same 

terms and conditions as hardship loans made under section 

305(c)(1). 

‘‘(2) OTHER DIRECT LOANS.—All other direct loans under 

this section shall bear interest at a rate equal to the then 

current cost of money to the Government of the United States 

for loans of similar maturity, plus 1⁄8 of 1 percent.’’. 

(b) ELIMINATION OF FEDERAL FINANCING BANK GUARANTEED

LOANS.—Section 306 of the Rural Electrification Act of 1936 (7 

U.S.C. 936) is amended— 

(1) in the third sentence, by striking ‘‘guarantee, accommodation, or subordination’’ and inserting ‘‘accommodation or 

subordination’’; and 

(2) by striking the fourth sentence. 

SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR 

IMPROVED ENERGY EFFICIENCY AND DEMAND REDUCTION AND FOR ENERGY EFFICIENCY AND USE AUDITS. 

Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 

912) is amended by adding at the end the following: 

‘‘(c) DEFERMENT OF PAYMENTS ON LOANS.— 

‘‘(1) IN GENERAL.—The Secretary shall allow borrowers to 

defer payment of principal and interest on any direct loan 

made under this Act to enable the borrower to make loans 

to residential, commercial, and industrial consumers— 

‘‘(A) to conduct energy efficiency and use audits; and 

‘‘(B) to install energy efficient measures or devices 

that reduce the demand on electric systems. 

‘‘(2) AMOUNT.—The total amount of a deferment under 

this subsection shall not exceed the sum of the principal and 

interest on the loans made to a customer of the borrower, 

as determined by the Secretary. 

‘‘(3) TERM.—The term of a deferment under this subsection 

shall not exceed 60 months.’’. 

SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE. 

Section 13 of the Rural Electrification Act of 1936 (7 U.S.C. 

913) is amended to read as follows: 
H. R. 2419—274 

‘‘SEC. 13. DEFINITIONS. 

‘‘In this Act: 

‘‘(1) FARM.—The term ‘farm’ means a farm, as defined 

by the Bureau of the Census. 

‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 

given the term in section 4 of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b). 

‘‘(3) RURAL AREA.—Except as provided otherwise in this 

Act, the term ‘rural area’ means the farm and nonfarm population of— 

‘‘(A) any area described in section 343(a)(13)(C) of the 

Consolidated Farm and Rural Development Act (7 U.S.C. 

1991(a)(13)(C)); and 

‘‘(B) any area within a service area of a borrower 

for which a borrower has an outstanding loan made under 

titles I through V as of the date of enactment of this 

paragraph. 

‘‘(4) TERRITORY.—The term ‘territory’ includes any insular 

possession of the United States. 

‘‘(5) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Agriculture.’’. 

SEC. 6105. SUBSTANTIALLY UNDERSERVED TRUST AREAS. 

The Rural Electrification Act of 1936 is amended by inserting 

after section 306E (7 U.S.C. 936e) the following: 

‘‘SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ELIGIBLE PROGRAM.—The term ‘eligible program’ means 

a program administered by the Rural Utilities Service and 

authorized in— 

‘‘(A) this Act; or 

‘‘(B) paragraph (1), (2), (14), (22), or (24) of section 

306(a) or section 306A, 306C, 306D, or 306E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a), 

1926a, 1926c, 1926d, 1926e). 

‘‘(2) SUBSTANTIALLY UNDERSERVED TRUST AREA.—The term 

‘substantially underserved trust area’ means a community in 

‘trust land’ (as defined in section 3765 of title 38, United 

States Code) with respect to which the Secretary determines 

has a high need for the benefits of an eligible program. 

‘‘(b) INITIATIVE.—The Secretary, in consultation with local 

governments and Federal agencies, may implement an initiative 

to identify and improve the availability of eligible programs in 

communities in substantially underserved trust areas. 

‘‘(c) AUTHORITY OF SECRETARY.—In carrying out subsection (b), 

the Secretary— 

‘‘(1) may make available from loan or loan guarantee programs administered by the Rural Utilities Service to qualified 

utilities or applicants financing with an interest rate as low 

as 2 percent, and with extended repayment terms; 

‘‘(2) may waive nonduplication restrictions, matching fund 

requirements, or credit support requirements from any loan 

or grant program administered by the Rural Utilities Service 

to facilitate the construction, acquisition, or improvement of 

infrastructure; 
H. R. 2419—275 

‘‘(3) may give the highest funding priority to designated 

projects in substantially underserved trust areas; and 

‘‘(4) shall only make loans or loan guarantees that are 

found to be financially feasible and that provide eligible program benefits to substantially underserved trust areas. 

‘‘(d) REPORT.—Not later than 1 year after the date of enactment 

of this section and annually thereafter, the Secretary shall submit 

to Congress a report that describes— 

‘‘(1) the progress of the initiative implemented under subsection (b); and 

‘‘(2) recommendations for any regulatory or legislative 

changes that would be appropriate to improve services to 

substantially underserved trust areas.’’. 

SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR TELEPHONE PURPOSES. 

(a) IN GENERAL.—Section 313A of the Rural Electrification 

Act of 1936 (7 U.S.C. 940c–1) is amended— 

(1) in subsection (b)— 

(A) in paragraph (1), by striking ‘‘for electrification’’ 

and all that follows through the end and inserting ‘‘for 

eligible electrification or telephone purposes consistent with 

this Act.’’; and 

(B) by striking paragraph (4) and inserting the following: 

‘‘(4) ANNUAL AMOUNT.—The total amount of guarantees 

provided by the Secretary under this section during a fiscal 

year shall not exceed $1,000,000,000, subject to the availability 

of funds under subsection (e).’’; 

(2) in subsection (c), by striking paragraphs (2) and (3) 

and inserting the following: 

‘‘(2) AMOUNT.— 

‘‘(A) IN GENERAL.—The amount of the annual fee paid 

for the guarantee of a bond or note under this section 

shall be equal to 30 basis points of the amount of the 

unpaid principal of the bond or note guaranteed under 

this section. 

‘‘(B) PROHIBITION.—Except as otherwise provided in 

this subsection and subsection (e)(2), no other fees shall 

be assessed. 

‘‘(3) PAYMENT.— 

‘‘(A) IN GENERAL.—A lender shall pay the fees required 

under this subsection on a semiannual basis. 

‘‘(B) STRUCTURED SCHEDULE.—The Secretary shall, 

with the consent of the lender, structure the schedule for 

payment of the fee to ensure that sufficient funds are 

available to pay the subsidy costs for note or bond guarantees as provided for in subsection (e)(2).’’; and 

(3) in subsection (f), by striking ‘‘2007’’ and inserting ‘‘2012’’. 

(b) ADMINISTRATION.—The Secretary shall continue to carry 

out section 313A of the Rural Electrification Act of 1936 (7 U.S.C. 

940c–1) in the same manner as on the day before the date of 

enactment of this Act, except without regard to the limitations 

prescribed in subsection (b)(1) of that section, until such time as 

any regulations necessary to carry out the amendments made by 

this section are fully implemented. 
H. R. 2419—276 

SEC. 6107. EXPANSION OF 911 ACCESS. 

Section 315 of the Rural Electrification Act of 1936 (7 U.S.C. 

940e) is amended to read as follows: 

‘‘SEC. 315. EXPANSION OF 911 ACCESS. 

‘‘(a) IN GENERAL.—Subject to subsection (c) and such terms 

and conditions as the Secretary may prescribe, the Secretary may 

make loans under this title to entities eligible to borrow from 

the Rural Utilities Service, State or local governments, Indian tribes 

(as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)), or other public entities 

for facilities and equipment to expand or improve in rural areas— 

‘‘(1) 911 access; 

‘‘(2) integrated interoperable emergency communications, 

including multiuse networks that provide commercial or 

transportation information services in addition to emergency 

communications services; 

‘‘(3) homeland security communications; 

‘‘(4) transportation safety communications; or 

‘‘(5) location technologies used outside an urbanized area. 

‘‘(b) LOAN SECURITY.—Government-imposed fees related to 

emergency communications (including State or local 911 fees) may 

be considered to be security for a loan under this section. 

‘‘(c) EMERGENCY COMMUNICATIONS EQUIPMENT PROVIDERS.— 

The Secretary may make a loan under this section to an emergency 

communication equipment provider to expand or improve 911 access 

or other communications or technologies described in subsection 

(a) if the local government that has jurisdiction over the project 

is not allowed to acquire the debt resulting from the loan. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—The Secretary shall 

use to make loans under this section any funds otherwise made 

available for telephone loans for each of fiscal years 2008 through 

2012.’’. 

SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY. 

Title III of the Rural Electrification Act of 1936 is amended 

by inserting after section 316 (7 U.S.C. 940f) the following: 

‘‘SEC. 317. ELECTRIC LOANS FOR RENEWABLE ENERGY. 

‘‘(a) DEFINITION OF RENEWABLE ENERGY SOURCE.—In this section, the term ‘renewable energy source’ means an energy conversion 

system fueled from a solar, wind, hydropower, biomass, or geothermal source of energy. 

‘‘(b) LOANS.—In addition to any other funds or authorities otherwise made available under this Act, the Secretary may make electric 

loans under this title for electric generation from renewable energy 

resources for resale to rural and nonrural residents. 

‘‘(c) RATE.—The rate of a loan under this section shall be 

equal to the average tax-exempt municipal bond rate of similar 

maturities.’’. 

SEC. 6109. BONDING REQUIREMENTS. 

Title III of the Rural Electrification Act of 1936 is amended 

by inserting after section 317 (as added by section 6108) the following: 
H. R. 2419—277 

‘‘SEC. 318. BONDING REQUIREMENTS. 

‘‘The Secretary shall review the bonding requirements for all 

programs administered by the Rural Utilities Service under this 

Act to ensure that bonds are not required if— 

‘‘(1) the interests of the Secretary are adequately protected 

by product warranties; or 

‘‘(2) the costs or conditions associated with a bond exceed 

the benefit of the bond.’’. 

SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES 

IN RURAL AREAS. 

(a) IN GENERAL.—Section 601 of the Rural Electrification Act 

of 1936 (7 U.S.C. 950bb) is amended to read as follows: 

‘‘SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES 

IN RURAL AREAS. 

‘‘(a) PURPOSE.—The purpose of this section is to provide loans 

and loan guarantees to provide funds for the costs of the construction, improvement, and acquisition of facilities and equipment for 

broadband service in rural areas. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) BROADBAND SERVICE.—The term ‘broadband service’ 

means any technology identified by the Secretary as having 

the capacity to transmit data to enable a subscriber to the 

service to originate and receive high-quality voice, data, 

graphics, and video. 

‘‘(2) INCUMBENT SERVICE PROVIDER.—The term ‘incumbent 

service provider’, with respect to an application submitted under 

this section, means an entity that, as of the date of submission 

of the application, is providing broadband service to not less 

than 5 percent of the households in the service territory proposed in the application. 

‘‘(3) RURAL AREA.— 

‘‘(A) IN GENERAL.—The term ‘rural area’ means any 

area other than— 

‘‘(i) an area described in clause (i) or (ii) of section 

343(a)(13)(A) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1991(a)(13)(A)); and 

‘‘(ii) a city, town, or incorporated area that has 

a population of greater than 20,000 inhabitants. 

‘‘(B) URBAN AREA GROWTH.—The Secretary may, by 

regulation only, consider an area described in section 

343(a)(13)(F)(i)(I) of that Act to not be a rural area for 

purposes of this section. 

‘‘(c) LOANS AND LOAN GUARANTEES.— ‘‘(1) IN GENERAL.—The Secretary shall make or guarantee 

loans to eligible entities described in subsection (d) to provide 

funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in 

rural areas. 

‘‘(2) PRIORITY.—In making or guaranteeing loans under 

paragraph (1), the Secretary shall give the highest priority 

to applicants that offer to provide broadband service to the 

greatest proportion of households that, prior to the provision 

of the broadband service, had no incumbent service provider. 

‘‘(d) ELIGIBILITY.— 

‘‘(1) ELIGIBLE ENTITIES.— 
H. R. 2419—278 

‘‘(A) IN GENERAL.—To be eligible to obtain a loan or 

loan guarantee under this section, an entity shall— 

‘‘(i) demonstrate the ability to furnish, improve, 

or extend a broadband service to a rural area; 

‘‘(ii) submit to the Secretary a loan application 

at such time, in such manner, and containing such 

information as the Secretary may require; and 

‘‘(iii) agree to complete buildout of the broadband 

service described in the loan application by not later 

than 3 years after the initial date on which proceeds 

from the loan made or guaranteed under this section 

are made available. 

‘‘(B) LIMITATION.—An eligible entity that provides telecommunications or broadband service to at least 20 percent 

of the households in the United States may not receive 

an amount of funds under this section for a fiscal year 

in excess of 15 percent of the funds authorized and appropriated under subsection (k) for the fiscal year. 

‘‘(2) ELIGIBLE PROJECTS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), the proceeds of a loan made or guaranteed under this section may be used to carry out a project 

in a proposed service territory only if, as of the date on 

which the application for the loan or loan guarantee is 

submitted— 

‘‘(i) not less than 25 percent of the households 

in the proposed service territory is offered broadband 

service by not more than 1 incumbent service provider; 

and 

‘‘(ii) broadband service is not provided in any part 

of the proposed service territory by 3 or more incumbent service providers. 

‘‘(B) EXCEPTION TO 25 PERCENT REQUIREMENT.— Subparagraph (A)(i) shall not apply to the proposed service 

territory of a project if a loan or loan guarantee has been 

made under this section to the applicant to provide 

broadband service in the proposed service territory. 

‘‘(C) EXCEPTION TO 3 OR MORE INCUMBENT SERVICE

PROVIDER REQUIREMENT.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), subparagraph (A)(ii) shall not apply to an incumbent service provider that is upgrading broadband 

service to the existing territory of the incumbent 

service provider. 

‘‘(ii) EXCEPTION.—Clause (i) shall not apply if the 

applicant is eligible for funding under another title 

of this Act. 

‘‘(3) EQUITY AND MARKET SURVEY REQUIREMENTS.— ‘‘(A) IN GENERAL.—The Secretary may require an entity 

to provide a cost share in an amount not to exceed 10 

percent of the amount of the loan or loan guarantee 

requested in the application of the entity, unless the Secretary determines that a higher percentage is required 

for financial feasibility. 

‘‘(B) MARKET SURVEY.— ‘‘(i) IN GENERAL.—The Secretary may require an 

entity that proposes to have a subscriber projection 
H. R. 2419—279 

of more than 20 percent of the broadband service 

market in a rural area to submit to the Secretary 

a market survey. 

‘‘(ii) LESS THAN 20 PERCENT.—The Secretary may 

not require an entity that proposes to have a subscriber 

projection of less than 20 percent of the broadband 

service market in a rural area to submit to the Secretary a market survey. 

‘‘(4) STATE AND LOCAL GOVERNMENTS AND INDIAN TRIBES.— 

Subject to paragraph (1), a State or local government (including 

any agency, subdivision, or instrumentality thereof (including 

consortia thereof)) and an Indian tribe shall be eligible for 

a loan or loan guarantee under this section to provide 

broadband services to a rural area. 

‘‘(5) NOTICE REQUIREMENT.—The Secretary shall publish 

a notice of each application for a loan or loan guarantee under 

this section describing the application, including— 

‘‘(A) the identity of the applicant; 

‘‘(B) each area proposed to be served by the applicant; 

and 

‘‘(C) the estimated number of households without 

terrestrial-based broadband service in those areas. 

‘‘(6) PAPERWORK REDUCTION.—The Secretary shall take 

steps to reduce, to the maximum extent practicable, the cost 

and paperwork associated with applying for a loan or loan 

guarantee under this section by first-time applicants (particularly first-time applicants who are small and start-up 

broadband service providers), including by providing for a new 

application that maintains the ability of the Secretary to make 

an analysis of the risk associated with the loan involved. 

‘‘(7) PREAPPLICATION PROCESS.—The Secretary shall establish a process under which a prospective applicant may seek 

a determination of area eligibility prior to preparing a loan 

application under this section. 

‘‘(e) BROADBAND SERVICE.— 

‘‘(1) IN GENERAL.—The Secretary shall, from time to time 

as advances in technology warrant, review and recommend 

modifications of rate-of-data transmission criteria for purposes 

of the identification of broadband service technologies under 

subsection (b)(1). 

‘‘(2) PROHIBITION.—The Secretary shall not establish 

requirements for bandwidth or speed that have the effect of 

precluding the use of evolving technologies appropriate for rural 

areas. 

‘‘(f) TECHNOLOGICAL NEUTRALITY.—For purposes of determining 

whether to make a loan or loan guarantee for a project under 

this section, the Secretary shall use criteria that are technologically 

neutral. 

‘‘(g) TERMS AND CONDITIONS FOR LOANS AND LOAN GUARANTEES.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

law, a loan or loan guarantee under this section shall— 

‘‘(A) bear interest at an annual rate of, as determined 

by the Secretary— 

‘‘(i) in the case of a direct loan, a rate equivalent 

to— 
H. R. 2419—280 

‘‘(I) the cost of borrowing to the Department 

of the Treasury for obligations of comparable maturity; or 

‘‘(II) 4 percent; and 

‘‘(ii) in the case of a guaranteed loan, the current 

applicable market rate for a loan of comparable maturity; and 

‘‘(B) have a term of such length, not exceeding 35 

years, as the borrower may request, if the Secretary determines that the loan is adequately secured. 

‘‘(2) TERM.—In determining the term of a loan or loan 

guarantee, the Secretary shall consider whether the recipient 

is or would be serving an area that is not receiving broadband 

services. 

‘‘(3) RECURRING REVENUE.—The Secretary shall consider 

the existing recurring revenues of the entity at the time of 

application in determining an adequate level of credit support. 

‘‘(h) ADEQUACY OF SECURITY.— 

‘‘(1) IN GENERAL.—The Secretary shall ensure that the type 

and amount of, and method of security used to secure, any 

loan or loan guarantee under this section is commensurate 

to the risk involved with the loan or loan guarantee, particularly in any case in which the loan or loan guarantee is issued 

to a financially strong and stable entity, as determined by 

the Secretary. 

‘‘(2) DETERMINATION OF AMOUNT AND METHOD OF SECURITY.—In determining the amount of, and method of security 

used to secure, a loan or loan guarantee under this section, 

the Secretary shall consider reducing the security in a rural 

area that does not have broadband service. 

‘‘(i) USE OF LOAN PROCEEDS TO REFINANCE LOANS FOR DEPLOYMENT OF BROADBAND SERVICE.—Notwithstanding any other provision of this Act, the proceeds of any loan made or guaranteed 

by the Secretary under this Act may be used by the recipient 

of the loan for the purpose of refinancing an outstanding obligation 

of the recipient on another telecommunications loan made under 

this Act if the use of the proceeds for that purpose will support 

the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas. 

‘‘(j) REPORTS.—Not later than 1 year after the date of enactment 

of the Food, Conservation, and Energy Act of 2008, and annually 

thereafter, the Administrator shall submit to Congress a report 

that describes the extent of participation in the loan and loan 

guarantee program under this section for the preceding fiscal year, 

including a description of — 

‘‘(1) the number of loans applied for and provided under 

this section; 

‘‘(2)(A) the communities proposed to be served in each 

loan application submitted for the fiscal year; and 

‘‘(B) the communities served by projects funded by loans 

and loan guarantees provided under this section; 

‘‘(3) the period of time required to approve each loan 

application under this section; 

‘‘(4) any outreach activities carried out by the Secretary 

to encourage entities in rural areas without broadband service 

to submit applications under this section; 
H. R. 2419—281 

‘‘(5) the method by which the Secretary determines that 

a service enables a subscriber to originate and receive highquality voice, data, graphics, and video for purposes of subsection (b)(1); and 

‘‘(6) each broadband service, including the type and speed 

of broadband service, for which assistance was sought, and 

each broadband service for which assistance was provided, 

under this section. 

‘‘(k) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out this 

section $25,000,000 for each of fiscal years 2008 through 2012, 

to remain available until expended. 

‘‘(2) ALLOCATION OF FUNDS.— ‘‘(A) IN GENERAL.—From amounts made available for 

each fiscal year under this subsection, the Secretary shall— 

‘‘(i) establish a national reserve for loans and loan 

guarantees to eligible entities in States under this 

section; and 

‘‘(ii) allocate amounts in the reserve to each State 

for each fiscal year for loans and loan guarantees to 

eligible entities in the State. 

‘‘(B) AMOUNT.—The amount of an allocation made to 

a State for a fiscal year under subparagraph (A) shall 

bear the same ratio to the amount of allocations made 

for all States for the fiscal year as— 

‘‘(i) the number of communities with a population 

of 2,500 inhabitants or less in the State; bears to 

‘‘(ii) the number of communities with a population 

of 2,500 inhabitants or less in all States. 

‘‘(C) UNOBLIGATED AMOUNTS.—Any amounts in the 

reserve established for a State for a fiscal year under 

subparagraph (B) that are not obligated by April 1 of 

the fiscal year shall be available to the Secretary to make 

loans and loan guarantees under this section to eligible 

entities in any State, as determined by the Secretary. 

‘‘(l) TERMINATION OF AUTHORITY.—No loan or loan guarantee 

may be made under this section after September 30, 2012.’’. 

(b) REGULATIONS.—The Secretary may implement the amendment made by subsection (a) through the promulgation of an interim 

regulation. 

(c) APPLICATION.—The amendment made by subsection (a) shall 

not apply to— 

(1) an application submitted under section 601 of the Rural 

Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed before 

the amendment made by subsection (a)) that— 

(A) was pending on the date that is 45 days prior 

to the date of enactment of this Act; and 

(B) is pending on the date of enactment of this Act; 

or 

(2) a petition for reconsideration of a decision on an application described in paragraph (1). 

SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS 

ASSESSMENT. 

Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 

950bb et seq.) is amended by adding at the end the following: 
H. R. 2419—282 

‘‘SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS 

ASSESSMENT. 

‘‘(a) DESIGNATION OF CENTER.—The Secretary shall designate 

an entity to serve as the National Center for Rural Telecommunications Assessment (referred to in this section as the ‘Center’). 

‘‘(b) CRITERIA.—In designating the Center under subsection (a), 

the Secretary shall take into consideration the following criteria: 

‘‘(1) The Center shall be an entity that demonstrates to 

the Secretary— 

‘‘(A) a focus on rural policy research; and 

‘‘(B) a minimum of 5 years of experience relating to 

rural telecommunications research and assessment. 

‘‘(2) The Center shall be capable of assessing broadband 

services in rural areas. 

‘‘(3) The Center shall have significant experience involving 

other rural economic development centers and organizations 

with respect to the assessment of rural policies and the formulation of policy solutions at the Federal, State, and local levels. 

‘‘(c) BOARD OF DIRECTORS.—The Center shall be managed by 

a board of directors, which shall be responsible for the duties 

of the Center described in subsection (d). 

‘‘(d) DUTIES.—The Center shall— 

‘‘(1) assess the effectiveness of programs carried out under 

this title in increasing broadband penetration and purchase 

in rural areas, especially in rural communities identified by 

the Secretary as having no broadband service before the provision of a loan or loan guarantee under this title; 

‘‘(2) work with existing rural development centers selected 

by the Center to identify policies and initiatives at the Federal, 

State, and local levels that have increased broadband penetration and purchase in rural areas and provide recommendations 

to Federal, State, and local policymakers on effective strategies 

to bring affordable broadband services to residents of rural 

areas, particularly residents located outside of the municipal 

boundaries of a rural city or town; and 

‘‘(3) develop and publish reports describing the activities 

carried out by the Center under this section. 

‘‘(e) REPORTING REQUIREMENTS.—Not later than December 1 

of each applicable fiscal year, the board of directors of the Center 

shall submit to Congress and the Secretary a report describing 

the activities carried out by the Center during the preceding fiscal 

year and the results of any research conducted by the Center 

during that fiscal year, including— 

‘‘(1) an assessment of each program carried out under this 

title; and 

‘‘(2) an assessment of the effects of the policy initiatives 

identified under subsection (d)(2). 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section 

$1,000,000 for each of fiscal years 2008 through 2012.’’. 

SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY. 

(a) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Chairman of the Federal Communications 

Commission, in coordination with the Secretary, shall submit to 

Congress a report describing a comprehensive rural broadband 

strategy that includes— 
H. R. 2419—283 

(1) recommendations— 

(A) to promote interagency coordination of Federal 

agencies in regards to policies, procedures, and targeted 

resources, and to streamline or otherwise improve and 

streamline the policies, programs, and services; 

(B) to coordinate existing Federal rural broadband or 

rural initiatives; 

(C) to address both short- and long-term needs assessments and solutions for a rapid build-out of rural 

broadband solutions and application of the recommendations for Federal, State, regional, and local government 

policymakers; and 

(D) to identify how specific Federal agency programs 

and resources can best respond to rural broadband requirements and overcome obstacles that currently impede rural 

broadband deployment; and 

(2) a description of goals and timeframes to achieve the 

purposes of the report. 

(b) UPDATES.—The Chairman of the Federal Communications 

Commission, in coordination with the Secretary, shall update and 

evaluate the report described in subsection (a) during the third 

year after the date of enactment of this Act. 

SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION. 

(a) IN GENERAL.—The Secretary shall conduct a study on the 

electric power generation needs in rural areas of the United States. 

(b) COMPONENTS.—The study shall include an examination of— 

(1) generation in various areas in rural areas of the United 

States, particularly by rural electric cooperatives;; 

(2) financing available for capacity, including financing 

available through programs authorized under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.); 

(3) the impact of electricity costs on consumers and local 

economic development; 

(4) the ability of fuel feedstock technology to meet regulatory requirements, such as carbon capture and sequestration; 

and 

(5) any other factors that the Secretary considers appropriate. 

(c) REPORT.—Not later than 60 days after the date of enactment 

of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate a report containing the findings of the study under this section. 

Subtitle C—Miscellaneous 

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE. 

(a) IN GENERAL.—Section 2333(c)(1) of the Food, Agriculture, 

Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa–2(a)(1)) 

is amended— 

(1) in subparagraph (A), by striking ‘‘and’’ at the end; 

(2) in subparagraph (B), by striking the period at the 

end and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(C) libraries.’’. 
H. R. 2419—284 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 2335A of the 

Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

950aaa–5) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

(c) CONFORMING AMENDMENT.—Section 1(b) of Public Law 102– 

551 (7 U.S.C. 950aaa note; Public Law 102–551) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT 

PROGRAM GRANTS. 

(a) DEFINITIONS.—Section 231 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) is 

amended by striking subsection (a) and inserting the following: 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BEGINNING FARMER OR RANCHER.—The term ‘beginning 

farmer or rancher’ has the meaning given the term in section 

343(a) of the Consolidated Farm and Rural Development Act 

(7 U.S.C. 1991(a)). 

‘‘(2) FAMILY FARM.—The term ‘family farm’ has the meaning 

given the term in section 761.2 of title 7, Code of Federal 

Regulations (as in effect on December 30, 2007). 

‘‘(3) MID-TIER VALUE CHAIN.—The term ‘mid-tier value 

chain’ means local and regional supply networks that link 

independent producers with businesses and cooperatives that 

market value-added agricultural products in a manner that— 

‘‘(A) targets and strengthens the profitability and 

competitiveness of small and medium-sized farms and 

ranches that are structured as a family farm; and 

‘‘(B) obtains agreement from an eligible agricultural 

producer group, farmer or rancher cooperative, or majoritycontrolled producer-based business venture that is engaged 

in the value chain on a marketing strategy. 

‘‘(4) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 

term ‘socially disadvantaged farmer or rancher’ has the 

meaning given the term in section 355(e) of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 2003(e)). 

‘‘(5) VALUE-ADDED AGRICULTURAL PRODUCT.—The term 

‘value-added agricultural product’ means any agricultural commodity or product that— 

‘‘(A)(i) has undergone a change in physical state; 

‘‘(ii) was produced in a manner that enhances the 

value of the agricultural commodity or product, as demonstrated through a business plan that shows the enhanced 

value, as determined by the Secretary; 

‘‘(iii) is physically segregated in a manner that results 

in the enhancement of the value of the agricultural commodity or product; 

‘‘(iv) is a source of farm- or ranch-based renewable 

energy, including E–85 fuel; or 

‘‘(v) is aggregated and marketed as a locally-produced 

agricultural food product; and 

‘‘(B) as a result of the change in physical state or the 

manner in which the agricultural commodity or product was 

produced, marketed, or segregated— 

‘‘(i) the customer base for the agricultural commodity 

or product is expanded; and 

‘‘(ii) a greater portion of the revenue derived from 

the marketing, processing, or physical segregation of the 
H. R. 2419—285 

agricultural commodity or product is available to the producer of the commodity or product.’’. 

(b) GRANT PROGRAM.—Section 231(b) of the Agricultural Risk 

Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) 

is amended— 

(1) in paragraph (1), by striking ‘‘paragraph (4)’’ and 

inserting ‘‘paragraph (7)’’; and 

(2) by striking paragraph (4) and inserting the following: 

‘‘(4) TERM.—A grant under this subsection shall have a 

term that does not exceed 3 years. 

‘‘(5) SIMPLIFIED APPLICATION.—The Secretary shall offer a 

simplified application form and process for project proposals 

requesting less than $50,000. 

‘‘(6) PRIORITY.—In awarding grants under this subsection, 

the Secretary shall give priority to projects that contribute 

to increasing opportunities for— 

‘‘(A) beginning farmers or ranchers; 

‘‘(B) socially disadvantaged farmers or ranchers; and 

‘‘(C) operators of small- and medium-sized farms and 

ranches that are structured as a family farm. 

‘‘(7) FUNDING.— ‘‘(A) MANDATORY FUNDING.—On October 1, 2008, of 

the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection 

$15,000,000, to remain available until expended. 

‘‘(B) DISCRETIONARY FUNDING.—There is authorized to 

be appropriated to carry out this subsection $40,000,000 

for each of fiscal years 2008 through 2012. 

‘‘(C) RESERVATION OF FUNDS FOR PROJECTS TO BENEFIT

BEGINNING FARMERS OR RANCHERS, SOCIALLY DISADVAN- TAGED FARMERS OR RANCHERS, AND MID-TIER VALUE

CHAINS.— 

‘‘(i) IN GENERAL.—The Secretary shall reserve 10 

percent of the amounts made available for each fiscal 

year under this paragraph to fund projects that benefit 

beginning farmers or ranchers or socially disadvantaged farmers or ranchers. 

‘‘(ii) MID-TIER VALUE CHAINS.—The Secretary shall 

reserve 10 percent of the amounts made available for 

each fiscal year under this paragraph to fund applications of eligible entities described in paragraph (1) 

that propose to develop mid-tier value chains. 

‘‘(iii) UNOBLIGATED AMOUNTS.—Any amounts in the 

reserves for a fiscal year established under clauses 

(i) and (ii) that are not obligated by June 30 of the 

fiscal year shall be available to the Secretary to make 

grants under this subsection to eligible entities in any 

State, as determined by the Secretary.’’. 

SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM. 

Section 6402 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 1621 note; Public Law 107–171) is amended 

by striking subsection (i) and inserting the following: 

‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section 

$6,000,000 for each of fiscal years 2008 through 2012.’’. 
H. R. 2419—286 

SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 

ASSISTANCE PROGRAM. 

Section 6405 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 2655) is amended to read as follows: 

‘‘SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL 

SERVICE ASSISTANCE PROGRAM. 

‘‘(a) DEFINITION OF EMERGENCY MEDICAL SERVICES.—In this 

section: 

‘‘(1) IN GENERAL.—The term ‘emergency medical services’ 

means resources used by a public or nonprofit entity to deliver 

medical care outside of a medical facility under emergency 

conditions that occur as a result of— 

‘‘(A) the condition of a patient; or 

‘‘(B) a natural disaster or related condition. 

‘‘(2) INCLUSION.—The term ‘emergency medical services’ 

includes services (whether compensated or volunteer) delivered 

by an emergency medical services provider or other provider 

recognized by the State involved that is licensed or certified 

by the State as— 

‘‘(A) an emergency medical technician or the equivalent 

(as determined by the State); 

‘‘(B) a registered nurse; 

‘‘(C) a physician assistant; or 

‘‘(D) a physician that provides services similar to services provided by such an emergency medical services provider. 

‘‘(b) GRANTS.—The Secretary shall award grants to eligible entities— 

‘‘(1) to enable the entities to provide for improved emergency medical services in rural areas; and 

‘‘(2) to pay the cost of training firefighters and emergency 

medical personnel in firefighting, emergency medical practices, 

and responding to hazardous materials and bioagents in rural 

areas. 

‘‘(c) ELIGIBILITY.—To be eligible to receive a grant under this 

section, an entity shall— 

‘‘(1) be— 

‘‘(A) a State emergency medical services office; 

‘‘(B) a State emergency medical services association; 

‘‘(C) a State office of rural health or an equivalent 

agency; 

‘‘(D) a local government entity; 

‘‘(E) an Indian tribe (as defined in section 4 of the 

Indian Self-Determination and Education Assistance Act 

(25 U.S.C. 450b)); 

‘‘(F) a State or local ambulance provider; or 

‘‘(G) any other public or nonprofit entity determined 

appropriate by the Secretary; and 

‘‘(2) prepare and submit to the Secretary an application 

at such time, in such manner, and containing such information 

as the Secretary may require, that includes— 

‘‘(A) a description of the activities to be carried out 

under the grant; and 

‘‘(B) an assurance that the applicant will comply with 

the matching requirement of subsection (f). 
H. R. 2419—287 

‘‘(d) USE OF FUNDS.—An entity shall use amounts received 

under a grant made under subsection (b) only in a rural area— 

‘‘(1) to hire or recruit emergency medical service personnel; 

‘‘(2) to recruit or retain volunteer emergency medical service 

personnel; 

‘‘(3) to train emergency medical service personnel in emergency response, injury prevention, safety awareness, or other 

topics relevant to the delivery of emergency medical services; 

‘‘(4) to fund training to meet State or Federal certification 

requirements; 

‘‘(5) to provide training for firefighters or emergency medical personnel for improvements to the training facility, equipment, curricula, or personnel; 

‘‘(6) to develop new ways to educate emergency health 

care providers through the use of technology-enhanced educational methods (such as distance learning); 

‘‘(7) to acquire emergency medical services vehicles, 

including ambulances; 

‘‘(8) to acquire emergency medical services equipment, 

including cardiac defibrillators; 

‘‘(9) to acquire personal protective equipment for emergency 

medical services personnel as required by the Occupational 

Safety and Health Administration; or 

‘‘(10) to educate the public concerning cardiopulmonary 

resuscitation (CPR), first aid, injury prevention, safety awareness, illness prevention, or other related emergency preparedness topics. 

‘‘(e) PREFERENCE.—In awarding grants under this section, the 

Secretary shall give preference to— 

‘‘(1) applications that reflect a collaborative effort by 2 

or more of the entities described in subparagraphs (A) through 

(G) of subsection (c)(1); and 

‘‘(2) applications submitted by entities that intend to use 

amounts provided under the grant to fund activities described 

in any of paragraphs (1) through (5) of subsection (d). 

‘‘(f) MATCHING REQUIREMENT.—The Secretary may not make 

a grant under this section to an entity unless the entity makes 

available (directly or through contributions from other public or 

private entities) non-Federal contributions toward the activities 

to be carried out under the grant in an amount equal to at least 

5 percent of the amount received under the grant. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 

‘‘(1) IN GENERAL.—There is authorized to be appropriated 

to the Secretary to carry out this section not more than 

$30,000,000 for each of fiscal years 2008 through 2012. 

‘‘(2) ADMINISTRATIVE COSTS.—Not more than 5 percent of 

the amount appropriated under paragraph (1) for a fiscal year 

may be used for administrative expenses incurred in carrying 

out this section.’’. 

SEC. 6205. INSURANCE OF LOANS FOR HOUSING AND RELATED FACILITIES FOR DOMESTIC FARM LABOR. 

Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 

1484(f)(3)) is amended by striking ‘‘or the handling of such commodities in the unprocessed stage’’ and inserting ‘‘, the handling of 

agricultural or aquacultural commodities in the unprocessed stage, 

or the processing of agricultural or aquacultural commodities’’. 
H. R. 2419—288 

SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES. 

(a) IN GENERAL.—The Secretary of Agriculture and the Secretary of Transportation shall jointly conduct a study of transportation issues regarding the movement of agricultural products, 

domestically produced renewable fuels, and domestically produced 

resources for the production of electricity for rural areas of the 

United States, and economic development in those areas. 

(b) INCLUSIONS.—The study shall include an examination of— 

(1) the importance of freight transportation, including rail, 

truck, and barge, to— 

(A) the delivery of equipment, seed, fertilizer, and other 

such products important to the development of agricultural 

commodities and products; 

(B) the movement of agricultural commodities and 

products to market; 

(C) the delivery of ethanol and other renewable fuels; 

(D) the delivery of domestically produced resources 

for use in the generation of electricity for rural areas; 

(E) the location of grain elevators, ethanol plants, and 

other facilities; 

(F) the development of manufacturing facilities in rural 

areas; and 

(G) the vitality and economic development of rural 

communities; 

(2) the sufficiency in rural areas of transportation capacity, 

the sufficiency of competition in the transportation system, 

the reliability of transportation services, and the reasonableness 

of transportation rates; 

(3) the sufficiency of facility investment in rural areas 

necessary for efficient and cost-effective transportation; and 

(4) the accessibility to shippers in rural areas of Federal 

processes for the resolution of grievances arising within various 

transportation modes. 

(c) REPORT TO CONGRESS.—Not later than 1 year after the 

date of enactment of this Act, the Secretary and the Secretary 

of Transportation shall submit to Congress a report that contains 

the results of the study required by subsection (a). 

Subtitle D—Housing Assistance Council 

SEC. 6301. SHORT TITLE. 

This subtitle may be cited as the ‘‘Housing Assistance Council 

Authorization Act of 2008’’. 

SEC. 6302. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL. 

(a) USE.—The Secretary of Housing and Urban Development 

may provide financial assistance to the Housing Assistance Council 

for use by the Council to develop the ability and capacity of community-based housing development organizations to undertake community development and affordable housing projects and programs 

in rural areas. Assistance provided by the Secretary under this 

section may be used by the Housing Assistance Council for— 

(1) technical assistance, training, support, research, and 

advice to develop the business and administrative capabilities 

of rural community-based housing development organizations; 
H. R. 2419—289 

(2) loans, grants, or other financial assistance to rural 

community-based housing development organizations to carry 

out community development and affordable housing activities 

for low- and moderate-income families; and 

(3) such other activities as may be determined by the 

Secretary of Housing and Urban Development and the Housing 

Assistance Council. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated for financial assistance under this section for 

the Housing Assistance Council $10,000,000 for each of fiscal years 

2009 through 2011. 

SEC. 6303. AUDITS AND REPORTS. 

(a) AUDIT.— 

(1) IN GENERAL.—The financial transactions and activities 

of the Housing Assistance Council shall be audited annually 

by an independent certified public accountant or an independent licensed public accountant certified or licensed by a 

regulatory authority of a State or other political subdivision 

of the United States. 

(2) REQUIREMENTS OF AUDITS.—The Comptroller General 

of the United States may rely on any audit completed under 

paragraph (1), if the audit complies with— 

(A) the annual programmatic and financial examination requirements established in OMB Circular A-133; and 

(B) generally accepted government auditing standards. 

(3) REPORT TO CONGRESS.—The Comptroller General shall 

submit to the Committee on Banking, Housing, and Urban 

Affairs of the Senate and the Committee on Financial Services 

of the House of Representative a report detailing each audit 

completed under paragraph (1). 

(b) GAO REPORT.—The Comptroller General of the United 

States shall conduct a study and submit a report to the Committee 

on Banking, Housing, and Urban Affairs of the Senate and the 

Committee on Financial Services of the House of Representative 

on the use of any funds appropriated to the Housing Assistance 

Council over the past 7 years. 

SEC. 6304. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES. 

Aliens who are not lawfully present in the United States shall 

be ineligible for financial assistance under this subtitle, as provided 

and defined by section 214 of the Housing and Community Development Act of 1980 (42 U.S.C. 1436a). Nothing in this subtitle shall 

be construed to alter the restrictions or definitions in such section 

214. 

SEC. 6305. LIMITATION ON USE OF AUTHORIZED AMOUNTS. 

None of the amounts authorized by this subtitle may be used 

to lobby or retain a lobbyist for the purpose of influencing a Federal, 

State, or local governmental entity or officer. 
H. R. 2419—290 

TITLE VII—RESEARCH AND RELATED 

MATTERS 

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

Act of 1977 

SEC. 7101. DEFINITIONS. 

(a) IN GENERAL.—Section 1404 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3103) is amended— 

(1) in paragraph (4)— 

(A) by redesignating subparagraphs (A) through (E) 

as clauses (i) through (v), respectively; 

(B) by striking ‘‘(4) The terms’’ and inserting the following: 

‘‘(4) COLLEGE AND UNIVERSITY.— 

‘‘(A) IN GENERAL.—The terms’’; and 

(C) by adding at the end the following: 

‘‘(B) INCLUSIONS.—The terms ‘college’ and ‘university’ 

include a research foundation maintained by a college or 

university described in subparagraph (A).’’; 

(2) by redesignating paragraphs (5) through (8), (9) through 

(11), (12) through (14), (15), (16), (17), and (18) as paragraphs 

(6) through (9), (11) through (13), (15) through (17), (20), (5), 

(18), and (19), respectively, and moving the paragraphs so 

as to appear in alphabetical and numerical order; 

(3) in paragraph (9) (as redesignated by paragraph (2))— 

(A) by striking ‘‘renewable natural resources’’ and 

inserting ‘‘renewable energy and natural resources’’; and 

(B) by striking subparagraph (F) and inserting the 

following: 

‘‘(F) Soil, water, and related resource conservation and 

improvement.’’; 

(4) by inserting after paragraph (9) (as so redesignated) 

the following: 

‘‘(10) HISPANIC-SERVING AGRICULTURAL COLLEGES AND

UNIVERSITIES.— 

‘‘(A) IN GENERAL.—The term ‘Hispanic-serving agricultural colleges and universities’ means colleges or universities that— 

‘‘(i) qualify as Hispanic-serving institutions; and 

‘‘(ii) offer associate, bachelors, or other accredited 

degree programs in agriculture-related fields. 

‘‘(B) EXCEPTION.—The term ‘Hispanic-serving agricultural colleges and universities’ does not include 1862 

institutions (as defined in section 2 of the Agricultural 

Research, Extension, and Education Reform Act of 1998 

(7 U.S.C. 7601)).’’; 

(5) by striking paragraph (11) (as so redesignated) and 

inserting the following: 

‘‘(11) HISPANIC-SERVING INSTITUTION.—The term ‘Hispanicserving institution’ has the meaning given the term in section 
H. R. 2419—291 

502 of the Higher Education Act of 1965 (20 U.S.C. 1101a).’’; 

and 

(6) by inserting after paragraph (13) (as so redesignated) 

the following: 

‘‘(14) NLGCA INSTITUTION; NON-LAND-GRANT COLLEGE OF

AGRICULTURE.— 

‘‘(A) IN GENERAL.—The terms ‘NLGCA Institution’ and 

‘non-land-grant college of agriculture’ mean a public college 

or university offering a baccalaureate or higher degree 

in the study of agriculture or forestry. 

‘‘(B) EXCLUSIONS.—The terms ‘NLGCA Institution’ and 

‘non-land-grant college of agriculture’ do not include— 

‘‘(i) Hispanic-serving agricultural colleges and 

universities; or 

‘‘(ii) any institution designated under— 

‘‘(I) the Act of July 2, 1862 (commonly known 

as the ‘First Morrill Act’; 7 U.S.C. 301 et seq.); 

‘‘(II) the Act of August 30, 1890 (commonly 

known as the ‘Second Morrill Act’) (7 U.S.C. 321 

et seq.); 

‘‘(III) the Equity in Educational Land-Grant 

Status Act of 1994 (Public Law 103–382; 7 U.S.C. 

301 note); or 

‘‘(IV) Public Law 87–788 (commonly known 

as the ‘McIntire-Stennis Cooperative Forestry Act’) 

(16 U.S.C. 582a et seq.).’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 2(3) of the Research Facilities Act (7 U.S.C. 

390(3)) is amended by striking ‘‘section 1404(8) of the National 

Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3103(8))’’ and inserting ‘‘section 1404 of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3103)’’. 

(2) Section 2(k) of the Competitive, Special, and Facilities 

Research Grant Act (7 U.S.C. 450i(k)) is amended in the second 

sentence by striking ‘‘section 1404(17) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 

(7 U.S.C. 3103(17))’’ and inserting ‘‘section 1404 of the National 

Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3103)’’. 

(3) Section 18(a)(3)(B) of the Food and Nutrition Act of 

2008 (7 U.S.C. 2027(a)(3)(B)) is amended by striking ‘‘section 

1404(5) of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103(5)))’’ and inserting 

‘‘section 1404 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3103))’’. 

(4) Section 1473 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) 

is amended in the first sentence by striking ‘‘section 1404(16) 

of this title’’ and inserting ‘‘section 1404(18)’’. 

(5) Section 1619(b) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended— 

(A) in paragraph (1), by striking ‘‘section 1404(17) of 

the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103(17))’’ and 

inserting ‘‘section 1404 of the National Agricultural 
H. R. 2419—292 

Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3103)’’; 

(B) in paragraph (5), by striking ‘‘section 1404(7) of 

the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103(7))’’ and 

inserting ‘‘section 1404 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3103)’’; and 

(C) in paragraph (8), by striking ‘‘section 1404(13) of 

the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103(13))’’ and 

inserting ‘‘section 1404 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3103)’’. 

(6) Section 125(c)(1)(C) of Public Law 100–238 (5 U.S.C. 

8432 note) is amended by striking ‘‘section 1404(5) of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3103(5))’’ and inserting ‘‘section 1404 

of the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3103)’’. 

SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND ECONOMICS ADVISORY BOARD. 

(a) IN GENERAL.—Section 1408 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3123) is amended— 

(1) in subsection (b)— 

(A) in paragraph (1), by striking ‘‘31’’ and inserting 

‘‘25’’; and 

(B) by striking paragraph (3) and inserting the following: 

‘‘(3) MEMBERSHIP CATEGORIES.—The Advisory Board shall 

consist of members from each of the following categories: 

‘‘(A) 1 member representing a national farm organization. 

‘‘(B) 1 member representing farm cooperatives. 

‘‘(C) 1 member actively engaged in the production of 

a food animal commodity, recommended by a coalition of 

national livestock organizations. 

‘‘(D) 1 member actively engaged in the production of 

a plant commodity, recommended by a coalition of national 

crop organizations. 

‘‘(E) 1 member actively engaged in aquaculture, recommended by a coalition of national aquacultural organizations. 

‘‘(F) 1 member representing a national food animal 

science society. 

‘‘(G) 1 member representing a national crop, soil, 

agronomy, horticulture, plant pathology, or weed science 

society. 

‘‘(H) 1 member representing a national food science 

organization. 

‘‘(I) 1 member representing a national human health 

association. 

‘‘(J) 1 member representing a national nutritional 

science society. 
H. R. 2419—293 

‘‘(K) 1 member representing the land-grant colleges 

and universities eligible to receive funds under the Act 

of July 2, 1862 (7 U.S.C. 301 et seq.). 

‘‘(L) 1 member representing the land-grant colleges 

and universities eligible to receive funds under the Act 

of August 30, 1890 (7 U.S.C. 321 et seq.), including 

Tuskegee University. 

‘‘(M) 1 member representing the 1994 Institutions (as 

defined in section 532 of the Equity in Educational LandGrant Status Act of 1994 (7 U.S.C. 301 note; Public Law 

103–382)). 

‘‘(N) 1 member representing NLGCA Institutions. 

‘‘(O) 1 member representing Hispanic-serving institutions. 

‘‘(P) 1 member representing the American Colleges of 

Veterinary Medicine. 

‘‘(Q) 1 member engaged in the transportation of food 

and agricultural products to domestic and foreign markets. 

‘‘(R) 1 member representing food retailing and marketing interests. 

‘‘(S) 1 member representing food and fiber processors. 

‘‘(T) 1 member actively engaged in rural economic 

development. 

‘‘(U) 1 member representing a national consumer 

interest group. 

‘‘(V) 1 member representing a national forestry group. 

‘‘(W) 1 member representing a national conservation 

or natural resource group. 

‘‘(X) 1 member representing private sector organizations involved in international development. 

‘‘(Y) 1 member representing a national social science 

association.’’; 

(2) in subsection (g)(1), by striking ‘‘$350,000’’ and inserting 

‘‘$500,000’’; and 

(3) in subsection (h), by striking ‘‘2007’’ and inserting 

‘‘2012’’. 

(b) NO EFFECT ON TERMS.—Nothing in this section or any 

amendment made by this section affects the term of any member 

of the National Agricultural Research, Extension, Education, and 

Economics Advisory Board serving as of the date of enactment 

of this Act. 

SEC. 7103. SPECIALTY CROP COMMITTEE REPORT. 

Section 1408A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended 

by adding at the end the following: 

‘‘(4) Analyses of changes in macroeconomic conditions, technologies, and policies on specialty crop production and consumption, with particular focus on the effect of those changes on 

the financial stability of producers. 

‘‘(5) Development of data that provide applied information 

useful to specialty crop growers, their associations, and other 

interested beneficiaries in evaluating that industry from a 

regional and national perspective.’’. 
H. R. 2419—294 

SEC. 7104. RENEWABLE ENERGY COMMITTEE. 

The National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 is amended by inserting after section 1408A 

(7 U.S.C. 3123a) the following: 

‘‘SEC. 1408B. RENEWABLE ENERGY COMMITTEE. 

‘‘(a) INITIAL MEMBERS.—Not later than 90 days after the date 

of enactment of this section, the executive committee of the Advisory 

Board shall establish and appoint the initial members of a permanent renewable energy committee. 

‘‘(b) DUTIES.—The permanent renewable energy committee shall 

study the scope and effectiveness of research, extension, and 

economics programs affecting the renewable energy industry. 

‘‘(c) NONADVISORY BOARD MEMBERS.— 

‘‘(1) IN GENERAL.—An individual who is not a member 

of the Advisory Board may be appointed as a member of the 

renewable energy committee. 

‘‘(2) SERVICE.—A member of the renewable energy committee shall serve at the discretion of the executive committee. 

‘‘(d) REPORT BY RENEWABLE ENERGY COMMITTEE.—Not later 

than 180 days after the date of establishment of the renewable 

energy committee, and annually thereafter, the renewable energy 

committee shall submit to the Advisory Board a report that contains 

the findings and any recommendations of the renewable energy 

committee with respect to the study conducted under subsection 

(b). 

‘‘(e) CONSULTATION.—In carrying out the duties described in 

subsection (b), the renewable energy committee shall consult with 

the Biomass Research and Development Technical Advisory Committee established under section 9008(d) of the Biomass Research 

and Development Act of 2000 (7 U.S.C. 8605). 

‘‘(f) MATTERS TO BE CONSIDERED IN BUDGET RECOMMENDA- TION.—In preparing the annual budget recommendations for the 

Department, the Secretary shall take into consideration those 

findings and recommendations contained in the most recent report 

of the renewable energy committee under subsection (d) that are 

developed by the Advisory Committee. 

‘‘(g) REPORT BY THE SECRETARY.—In the budget material submitted to Congress by the Secretary in connection with the budget 

submitted pursuant to section 1105 of title 31, United States Code, 

for a fiscal year, the Secretary shall include a report that describes 

the ways in which the Secretary addressed each recommendation 

of the renewable energy committee described in subsection (f).’’. 

SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT. 

(a) IN GENERAL.—Section 1415A of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3151a) is amended— 

(1) by striking subsection (b) and inserting the following: 

‘‘(b) DETERMINATION OF VETERINARIAN SHORTAGE SITUATIONS.— 

In determining ‘veterinarian shortage situations’, the Secretary may 

consider— 

‘‘(1) geographical areas that the Secretary determines have 

a shortage of veterinarians; and 

‘‘(2) areas of veterinary practice that the Secretary determines have a shortage of veterinarians, such as food animal 

medicine, public health, epidemiology, and food safety.’’; 
H. R. 2419—295 

(2) in subsection (c), by adding at the end the following: 

‘‘(8) PRIORITY.—In administering the program, the Secretary shall give priority to agreements with veterinarians for 

the practice of food animal medicine in veterinarian shortage 

situations.’’; 

(3) by redesignating subsection (d) as subsection (f); and 

(4) by inserting after subsection (c) the following: 

‘‘(d) USE OF FUNDS.—None of the funds appropriated to the 

Secretary under subsection (f) may be used to carry out section 

5379 of title 5, United States Code. 

‘‘(e) REGULATIONS.—Notwithstanding subchapter II of chapter 

5 of title 5, United States Code, not later than 270 days after 

the date of enactment of this subsection, the Secretary shall promulgate regulations to carry out this section.’’. 

(b) DISAPPROVAL OF TRANSFER OF FUNDS.—Congress disapproves the transfer of funds from the Cooperative State Research, 

Education, and Extension Service to the Food Safety and Inspection 

Service described in the notice of use of funds for implementation 

of the veterinary medicine loan repayment program authorized 

by the National Veterinary Medical Service Act (72 Fed. Reg. 48609 

(August 24, 2007)), and such funds shall be rescinded on the date 

of enactment of this Act and made available to the Secretary, 

without further appropriation or fiscal year limitation, for use only 

in accordance with section 1415A of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3151a) (as amended by subsection (a)). 

SEC. 7106. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF 

COLUMBIA FOR GRANTS AND FELLOWSHIPS FOR FOOD 

AND AGRICULTURAL SCIENCES EDUCATION. 

Section 1417 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended— 

(1) in the matter preceding paragraph (1) of subsection 

(b), by inserting ‘‘(including the University of the District of 

Columbia)’’ after ‘‘land-grant colleges and universities’’; and 

(2) in subsection (d)(2), by inserting ‘‘(including the University of the District of Columbia)’’ after ‘‘universities’’. 

SEC. 7107. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION 

CAPACITY. 

Section 1417(b)(4) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(4)) is 

amended by striking ‘‘teaching and research’’ and inserting 

‘‘teaching, research, and extension’’. 

SEC. 7108. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES 

AWARDS. 

Section 1417(i) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) is 

amended— 

(1) in the subsection heading, by striking ‘‘Teaching 

Awards’’ and inserting ‘‘Teaching, Extension, and Research 

Awards’’; and 

(2) by striking paragraph (1) and inserting the following: 

‘‘(1) ESTABLISHMENT.— 
H. R. 2419—296 

‘‘(A) IN GENERAL.—The Secretary shall establish a 

National Food and Agricultural Sciences Teaching, Extension, and Research Awards program to recognize and promote excellence in teaching, extension, and research in 

the food and agricultural sciences at a college or university. 

‘‘(B) MINIMUM REQUIREMENT.—The Secretary shall 

make at least 1 cash award in each fiscal year to a nominee 

selected by the Secretary for excellence in each of the 

areas of teaching, extension, and research of food and agricultural science at a college or university.’’. 

SEC. 7109. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 

SCIENCES EDUCATION. 

(a) EDUCATION TEACHING PROGRAMS.—Section 1417(j) of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3152(j)) is amended— 

(1) in the subsection heading, by striking ‘‘SECONDARY EDUCATION AND 2-YEAR POSTSECONDARY EDUCATION TEACHING

PROGRAMS’’ and inserting ‘‘SECONDARY EDUCATION, 2-YEAR

POSTSECONDARY EDUCATION, AND AGRICULTURE IN THE K–12 

CLASSROOM’’; and 

(2) in paragraph (3)— 

(A) by striking ‘‘secondary schools, and institutions 

of higher education that award an associate’s degree’’ and 

inserting ‘‘secondary schools, institutions of higher education that award an associate’s degree, other institutions 

of higher education, and nonprofit organizations’’; 

(B) in subparagraph (E), by striking ‘‘and’’ at the end; 

(C) in subparagraph (F), by striking the period at the 

end and inserting ‘‘; and’’; and 

(D) by adding at the end the following: 

‘‘(G) to support current agriculture in the classroom 

programs for grades K–12.’’. 

(b) REPORT.—Section 1417 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3152) is amended— 

(1) by redesignating subsection (l) as subsection (m); and 

(2) by inserting after subsection (k) the following: 

‘‘(l) REPORT.—The Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a biennial 

report detailing the distribution of funds used to implement the 

teaching programs under subsection (j).’’. 

(c) AUTHORIZATION OF APPROPRIATIONS.—Section 1417(m) of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (as redesignated by subsection (b)(1)) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

(d) EFFECTIVE DATE.—The amendments made by subsection 

(a) take effect on October 1, 2008. 

SEC. 7110. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING 

OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 

AGRICULTURAL COMMODITIES AND FOREST PRODUCTS. 

(a) IN GENERAL.—Section 1419 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3154) is repealed. 
H. R. 2419—297 

(b) CONFORMING AMENDMENT.—Section 1463(a) of the National 

Agricultural Research, Extension, and Teaching Policy Act of 1977 

(7 U.S.C. 3311(a)) is amended by striking ‘‘1419,’’. 

SEC. 7111. POLICY RESEARCH CENTERS. 

Section 1419A of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended— 

(1) in subsection (a)(1), by inserting ‘‘(including commodities, livestock, dairy, and specialty crops)’’ after ‘‘agricultural 

sectors’’; 

(2) in subsection (b), by inserting ‘‘(including the Food 

Agricultural Policy Research Institute, the Agricultural and 

Food Policy Center, the Rural Policy Research Institute, and 

the National Drought Mitigation Center)’’ after ‘‘research 

institutions and organizations’’; and 

(3) in subsection (d), by striking ‘‘2007’’ and inserting 

‘‘2012’’. 

SEC. 7112. EDUCATION GRANTS TO ALASKA NATIVE-SERVING INSTITUTIONS AND NATIVE HAWAIIAN-SERVING INSTITUTIONS. 

Section 759 of the Agriculture, Rural Development, Food and 

Drug Administration, and Related Agencies Appropriations Act, 

2000 (7 U.S.C. 3242)— 

(1) is amended— 

(A) in subsection (a)(3), by striking ‘‘2006’’ and 

inserting ‘‘2012’’; and 

(B) in subsection (b)— 

(i) in paragraph (2)(A), by inserting before the 

semicolon at the end the following: ‘‘, including permitting consortia to designate fiscal agents for the members of the consortia and to allocate among the members funds made available under this section’’; and 

(ii) in paragraph (3), by striking ‘‘2006’’ and 

inserting ‘‘2012’’; 

(2) is redesignated as section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977; 

and 

(3) is moved so as to appear after section 1419A of that 

Act (7 U.S.C. 3155). 

SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE. 

Section 1424(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(b)) is 

amended— 

(1) in paragraph (1), by striking ‘‘and,’’; 

(2) in paragraph (2), by striking the comma at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(3) proposals that examine the efficacy of current agriculture policies in promoting the health and welfare of economically disadvantaged populations;’’. 

SEC. 7114. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH PROGRAM. 

Section 1424(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 
H. R. 2419—298 

SEC. 7115. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 

AGRICULTURAL RESEARCH. 

Section 1424A(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7116. NUTRITION EDUCATION PROGRAM. 

(a) IN GENERAL.—Section 1425 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3175) is amended— 

(1) by redesignating subsections (a) through (c) as subsections (b) through (d), respectively; 

(2) by striking the section heading and designation and 

inserting the following: 

‘‘SEC. 1425. NUTRITION EDUCATION PROGRAM. 

‘‘(a) DEFINITION OF 1862 INSTITUTION AND 1890 INSTITUTION.— In this section, the terms ‘1862 Institution’ and ‘1890 Institution’ 

have the meaning given those terms in section 2 of the Agricultural 

Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 

7601).’’; 

(3) in subsection (b) (as redesignated by paragraph (1)), 

by striking ‘‘(b) The Secretary’’ and inserting the following: 

‘‘(b) ESTABLISHMENT.—The Secretary’’; 

(4) in subsection (c) (as so redesignated), by striking ‘‘(c) 

In order to enable’’ and inserting the following: 

‘‘(c) EMPLOYMENT AND TRAINING.—To enable’’; 

(5) in subsection (d) (as redesignated by paragraph (1))— 

(A) by striking ‘‘(d) Beginning’’ and inserting the following: 

‘‘(d) ALLOCATION OF FUNDING.—Beginning’’; 

(B) in paragraph (2), by striking subparagraph (B) 

and inserting the following: 

‘‘(B) Notwithstanding section 3(d) of the Act of May 

8, 1914 (7 U.S.C. 343(d)), the remainder shall be allocated 

among the States as follows: ‘‘(i) $100,000 shall be distributed to each 1862 

Institution and 1890 Institution. 

‘‘(ii) Subject to clause (iii), the remainder shall 

be allocated to each State in an amount that bears 

the same ratio to the total amount to be allocated 

under this clause as— 

‘‘(I) the population living at or below 125 percent of the income poverty guidelines (as prescribed by the Office of Management and Budget 

and as adjusted pursuant to section 673(2) of the 

Community Services Block Grant Act (42 U.S.C. 

9902(2))) in the State; bears to 

‘‘(II) the total population living at or below 

125 percent of those income poverty guidelines 

in all States; 

as determined by the most recent decennial census 

at the time at which each such additional amount 

is first appropriated. 

‘‘(iii)(I) Before any allocation of funds under clause 

(ii), for any fiscal year for which the amount of funds 

appropriated for the conduct of the expanded food and 
H. R. 2419—299 

nutrition education program exceeds the amount of 

funds appropriated for the program for fiscal year 2007, 

the following percentage of such excess funds for the 

fiscal year shall be allocated to the 1890 Institutions 

in accordance with subclause (II): 

‘‘(aa) 10 percent for fiscal year 2009. 

‘‘(bb) 11 percent for fiscal year 2010. 

‘‘(cc) 12 percent for fiscal year 2011. 

‘‘(dd) 13 percent for fiscal year 2012. 

‘‘(ee) 14 percent for fiscal year 2013. 

‘‘(ff) 15 percent for fiscal year 2014 and for 

each fiscal year thereafter. 

‘‘(II) Funds made available under subclause (I) 

shall be allocated to each 1890 Institution in an amount 

that bears the same ratio to the total amount to be 

allocated under this clause as— 

‘‘(aa) the population living at or below 125 

percent of the income poverty guidelines (as prescribed by the Office of Management and Budget 

and as adjusted pursuant to section 673(2) of the 

Community Services Block Grant Act (42 U.S.C. 

9902(2))) in the State in which the 1890 Institution 

is located; bears to 

‘‘(bb) the total population living at or below 

125 percent of those income poverty guidelines 

in all States in which 1890 Institutions are located; 

as determined by the most recent decennial census 

at the time at which each such additional amount 

is first appropriated. 

‘‘(iv) Nothing in this subparagraph precludes the 

Secretary from developing educational materials and 

programs for persons in income ranges above the level 

designated in this subparagraph.’’; and 

(C) by striking paragraph (3); and 

(6) by adding at the end the following: 

‘‘(e) COMPLEMENTARY ADMINISTRATION.—The Secretary shall 

ensure the complementary administration of the expanded food 

and nutrition education program by 1862 Institutions and 1890 

Institutions in a State. 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out the expanded food and nutrition 

education program established under section 3(d) of the Act of 

May 8, 1914 (7 U.S.C. 343(d)), and this section $90,000,000 for 

each of fiscal years 2009 through 2012.’’. 

(b) CONFORMING AMENDMENT.—Section 1588(b) of the Food 

Security Act of 1985 (7 U.S.C. 3175e(b)) is amended by striking 

‘‘section 1425(c)(2)’’ and inserting ‘‘section 1425(d)(2)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

take effect on October 1, 2008. 

SEC. 7117. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH 

PROGRAMS. 

Section 1433(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended 

in the first sentence by striking ‘‘2007’’ and inserting ‘‘2012’’. 
H. R. 2419—300 

SEC. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS. 

Section 1433 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by 

adding at the end the following: 

‘‘(g) COOPERATION AMONG ELIGIBLE INSTITUTIONS.—The Secretary, to the maximum extent practicable, shall encourage eligible 

institutions to cooperate in setting research priorities under this 

section through the conduct of regular regional and national 

meetings.’’. 

SEC. 7119. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR 

REGIONAL PROBLEMS. 

Section 1434(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7120. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM. 

Section 1434(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) is amended 

by inserting after ‘‘universities’’ the following: ‘‘(including 1890 

Institutions (as defined in section 2 of the Agricultural Research, 

Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)))’’. 

SEC. 7121. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LANDGRANT COLLEGES. 

Section 1444(a)(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is 

amended by striking ‘‘15 percent’’ and inserting ‘‘20 percent’’. 

SEC. 7122. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH 

AT 1890 LAND-GRANT COLLEGES. 

Section 1445(a)(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)(2)) is 

amended by striking ‘‘25 percent’’ and inserting ‘‘30 percent’’. 

SEC. 7123. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 

FACILITIES AT 1890 LAND-GRANT COLLEGES, INCLUDING 

TUSKEGEE UNIVERSITY. 

Section 1447(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7124. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 

FACILITIES AT THE DISTRICT OF COLUMBIA LAND-GRANT 

UNIVERSITY. 

The National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 is amended by inserting after section 1447 

(7 U.S.C. 3222b) the following: 

‘‘SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD 

SCIENCES FACILITIES AT THE DISTRICT OF COLUMBIA 

LAND-GRANT UNIVERSITY. 

‘‘(a) PURPOSE.—It is the intent of Congress to assist the landgrant university in the District of Columbia established under section 208 of the District of Columbia Public Postsecondary Education 

Reorganization Act (Public Law 93–471; 88 Stat. 1428) in efforts 

to acquire, alter, or repair facilities or relevant equipment necessary 

for conducting agricultural research. 
H. R. 2419—301 

‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section $750,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 

FACILITIES AND EQUIPMENT AT INSULAR AREA LANDGRANT INSTITUTIONS. 

The National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting 

after section 1447A (as added by section 7124) the following: 

‘‘SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD 

SCIENCES FACILITIES AND EQUIPMENT AT INSULAR 

AREA LAND-GRANT INSTITUTIONS. 

‘‘(a) PURPOSE.—It is the intent of Congress to assist the landgrant institutions in the insular areas in efforts to acquire, alter, 

or repair facilities or relevant equipment necessary for conducting 

agricultural research. 

‘‘(b) METHOD OF AWARDING GRANTS.—Grants awarded pursuant 

to this section shall be made in such amounts and under such 

terms and conditions as the Secretary determines necessary to 

carry out the purposes of this section. 

‘‘(c) REGULATIONS.—The Secretary may promulgate such rules 

and regulations as the Secretary considers to be necessary to carry 

out this section. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $8,000,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 7126. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS. 

Section 1448 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended 

by striking ‘‘2007’’ each place it appears in subsections (a)(1) and 

(f) and inserting ‘‘2012’’. 

SEC. 7127. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 

EXTENSION ACTIVITIES OF 1890 INSTITUTIONS. 

Section 1449(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) is 

amended— 

(1) in the first sentence— 

(A) by striking ‘‘for each of fiscal years 2003 through 

2007,’’; and 

(B) by inserting ‘‘equal’’ before ‘‘matching’’; and 

(2) by striking the second sentence and all that follows 

through paragraph (5). 

SEC. 7128. HISPANIC-SERVING INSTITUTIONS. 

Section 1455 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3241) is amended— 

(1) in subsection (a) by striking ‘‘(or grants without regard 

to any requirement for competition)’’; 

(2) in subsection (b)(1), by striking ‘‘of consortia’’; and 

(3) in subsection (c)— 

(A) by striking ‘‘$20,000,000’’ and inserting 

‘‘$40,000,000’’; and 

(B) by striking ‘‘2007’’ and inserting ‘‘2012’’. 
H. R. 2419—302 

SEC. 7129. HISPANIC-SERVING AGRICULTURAL COLLEGES AND 

UNIVERSITIES. 

(a) IN GENERAL.—The National Agricultural Research, Extension, and Teaching Policy Act of 1977 is amended by inserting 

after section 1455 (7 U.S.C. 3241) the following: 

‘‘SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND 

UNIVERSITIES. 

‘‘(a) DEFINITION OF ENDOWMENT FUND.—In this section, the 

term ‘endowment fund’ means the Hispanic-Serving Agricultural 

Colleges and Universities Fund established under subsection (b). 

‘‘(b) ENDOWMENT.— ‘‘(1) IN GENERAL.—The Secretary of the Treasury shall 

establish in accordance with this subsection a Hispanic-Serving 

Agricultural Colleges and Universities Fund. 

‘‘(2) AGREEMENTS.—The Secretary of the Treasury may 

enter into such agreements as are necessary to carry out this 

subsection. 

‘‘(3) DEPOSIT TO THE ENDOWMENT FUND.—The Secretary 

of the Treasury shall deposit in the endowment fund any— 

‘‘(A) amounts made available through Acts of appropriations, which shall be the endowment fund corpus; and 

‘‘(B) interest earned on the endowment fund corpus. 

‘‘(4) INVESTMENTS.—The Secretary of the Treasury shall 

invest the endowment fund corpus and income in interestbearing obligations of the United States. 

‘‘(5) WITHDRAWALS AND EXPENDITURES.— 

‘‘(A) CORPUS.—The Secretary of the Treasury may not 

make a withdrawal or expenditure from the endowment 

fund corpus. 

‘‘(B) WITHDRAWALS.—On September 30, 2008, and each 

September 30 thereafter, the Secretary of the Treasury 

shall withdraw the amount of the income from the endowment fund for the fiscal year and warrant the funds to 

the Secretary of Agriculture who, after making adjustments 

for the cost of administering the endowment fund, shall 

distribute the adjusted income as follows: 

‘‘(i) 60 percent shall be distributed among the Hispanic-serving agricultural colleges and universities on 

a pro rata basis based on the Hispanic enrollment 

count of each institution. 

‘‘(ii) 40 percent shall be distributed in equal shares 

to the Hispanic-serving agricultural colleges and 

universities. 

‘‘(6) ENDOWMENTS.—Amounts made available under this 

subsection shall be held and considered to be granted to Hispanic-serving agricultural colleges and universities to establish 

an endowment in accordance with this subsection. 

‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to the Secretary such sums as 

are necessary to carry out this subsection for fiscal year 2008 

and each fiscal year thereafter. 

‘‘(c) AUTHORIZATION FOR ANNUAL PAYMENTS.— ‘‘(1) IN GENERAL.—For fiscal year 2008 and each fiscal 

year thereafter, there are authorized to be appropriated to 

the Department of Agriculture to carry out this subsection 

an amount equal to the product obtained by multiplying— 
H. R. 2419—303 

‘‘(A) $80,000; by 

‘‘(B) the number of Hispanic-serving agricultural colleges and universities. 

‘‘(2) PAYMENTS.—For fiscal year 2008 and each fiscal year 

thereafter, the Secretary of the Treasury shall pay to the treasurer of each Hispanic-serving agricultural college and university an amount equal to— 

‘‘(A) the total amount made available by appropriations 

under paragraph (1); divided by 

‘‘(B) the number of Hispanic-serving agricultural colleges and universities. 

‘‘(3) USE OF FUNDS.— 

‘‘(A) IN GENERAL.—Amounts authorized to be appropriated under this subsection shall be used in the same 

manner as is prescribed for colleges under the Act of August 

30, 1890 (commonly known as the ‘Second Morrill Act’) 

(7 U.S.C. 321 et seq.). 

‘‘(B) RELATIONSHIP TO OTHER LAW.—Except as otherwise provided in this subsection, the requirements of that 

Act shall apply to Hispanic-serving agricultural colleges 

and universities under this section. 

‘‘(d) INSTITUTIONAL CAPACITY-BUILDING GRANTS.— 

‘‘(1) IN GENERAL.—For fiscal year 2008 and each fiscal 

year thereafter, the Secretary shall make grants to assist Hispanic-serving agricultural colleges and universities in institutional capacity building (not including alteration, repair, renovation, or construction of buildings). 

‘‘(2) CRITERIA FOR INSTITUTIONAL CAPACITY-BUILDING

GRANTS.— 

‘‘(A) REQUIREMENTS FOR GRANTS.—The Secretary shall 

make grants under this subsection on the basis of a 

competitive application process under which Hispanicserving agricultural colleges and universities may submit 

applications to the Secretary at such time, in such manner, 

and containing such information as the Secretary may 

require. 

‘‘(B) DEMONSTRATION OF NEED.— 

‘‘(i) IN GENERAL.—As part of an application for 

a grant under this subsection, the Secretary shall 

require the applicant to demonstrate need for the 

grant, as determined by the Secretary. 

‘‘(ii) OTHER SOURCES OF FUNDING.—The Secretary 

may award a grant under this subsection only to an 

applicant that demonstrates a failure to obtain funding 

for a project after making a reasonable effort to otherwise obtain the funding. 

‘‘(C) PAYMENT OF NON-FEDERAL SHARE.—A grant 

awarded under this subsection shall be made only if the 

recipient of the grant pays a non-Federal share in an 

amount that is specified by the Secretary and based on 

assessed institutional needs. 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to the Secretary such sums as 

are necessary to carry out this subsection for fiscal year 2008 

and each fiscal year thereafter. 

‘‘(e) COMPETITIVE GRANTS PROGRAM.— 
H. R. 2419—304 

‘‘(1) IN GENERAL.—The Secretary shall establish a competitive grants program to fund fundamental and applied research 

at Hispanic-serving agricultural colleges and universities in 

agriculture, human nutrition, food science, bioenergy, and 

environmental science. 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to the Secretary such sums as 

are necessary to carry out this subsection for fiscal year 2008 

and each fiscal year thereafter.’’. 

(b) EXTENSION.—Section 3 of the Smith-Lever Act (7 U.S.C. 

343) is amended— 

(1) in subsection (b), by adding at the end the following: 

‘‘(4) ANNUAL APPROPRIATION FOR HISPANIC-SERVING AGRI- CULTURAL COLLEGES AND UNIVERSITIES.— ‘‘(A) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to the Secretary for payments 

to Hispanic-serving agricultural colleges and universities 

(as defined in section 1404 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3103)) such sums as are necessary to carry out 

this paragraph for fiscal year 2008 and each fiscal year 

thereafter, to remain available until expended. 

‘‘(B) ADDITIONAL AMOUNT.—Amounts made available 

under this paragraph shall be in addition to any other 

amounts made available under this section to States, the 

Commonwealth of Puerto Rico, Guam, or the United States 

Virgin Islands. 

‘‘(C) ADMINISTRATION.—Amounts made available under 

this paragraph shall be— 

‘‘(i) distributed on the basis of a competitive 

application process to be developed and implemented 

by the Secretary; 

‘‘(ii) paid by the Secretary to the State institutions 

established in accordance with the Act of July 2, 1862 

(commonly known as the ‘First Morrill Act’) (7 U.S.C. 

301 et seq.); and 

‘‘(iii) administered by State institutions through 

cooperative agreements with the Hispanic-serving agricultural colleges and universities in the State in accordance with regulations promulgated by the Secretary.’’; 

and 

(2) in subsection (f)— 

(A) in the subsection heading, by inserting ‘‘AND HIS- PANIC-SERVING AGRICULTURAL COLLEGES AND UNIVER- SITIES’’ after ‘‘1994 INSTITUTIONS’’; and 

(B) by striking ‘‘pursuant to subsection (b)(3)’’ and 

inserting ‘‘or Hispanic-serving agricultural colleges and 

universities in accordance with paragraphs (3) and (4) of 

subsection (b)’’. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 2 of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7601) is amended— 

(A) by redesignating paragraph (6) as paragraph (7); 

and 

(B) by inserting after paragraph (5) the following: 

‘‘(6) HISPANIC-SERVING AGRICULTURAL COLLEGES AND

UNIVERSITIES.—The term ‘Hispanic-serving agricultural colleges 
H. R. 2419—305 

and universities’ has the meaning given the term in section 

1404 of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103).’’. 

(2) Section 102(c) of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7612(c)) is 

amended— 

(A) in the subsection heading, by inserting ‘‘AND HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES’’ after ‘‘INSTITUTIONS’’; and 

(B) in paragraph (1), by striking ‘‘ and 1994 Institution’’ 

and inserting ‘‘1994 Institution, and Hispanic-serving agricultural college and university’’. 

(3) Section 103(e) of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7613(e)) is amended 

by adding at the end the following: 

‘‘(3) HISPANIC-SERVING AGRICULTURAL COLLEGES AND

UNIVERSITIES.—To be eligible to obtain agricultural extension 

funds from the Secretary for an activity, each Hispanic-serving 

agricultural college and university shall— 

‘‘(A) establish a process for merit review of the activity; 

and 

‘‘(B) review the activity in accordance with such 

process.’’. 

(4) Section 406(b) of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7626(b)) is 

amended by striking ‘‘and 1994 Institutions’’ and inserting ‘‘, 

1994 Institutions, and Hispanic-serving agricultural colleges 

and universities’’. 

SEC. 7130. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, 

AND EDUCATION. 

Section 1458(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is 

amended— 

(1) in paragraph (1)— 

(A) in subparagraph (A), by striking ‘‘and’’ after the 

semicolon; 

(B) in subparagraph (B), by adding ‘‘and’’ at the end; 

and 

(C) by adding at the end the following: 

‘‘(C) giving priority to those institutions with existing 

memoranda of understanding, agreements, or other formal 

ties to United States institutions, or Federal or State agencies;’’; 

(2) by striking paragraph (3) and inserting the following: 

‘‘(3) enter into agreements with land-grant colleges and 

universities, Hispanic-serving agricultural colleges and universities, the Agency for International Development, and international organizations (such as the United Nations, the World 

Bank, regional development banks, international agricultural 

research centers), or other organizations, institutions, or 

individuals with comparable goals, to promote and support— 

‘‘(A) the development of a viable and sustainable global 

agricultural system; 

‘‘(B) antihunger and improved international nutrition 

efforts; and 
H. R. 2419—306 

‘‘(C) increased quantity, quality, and availability of 

food;’’; 

(3) in paragraph (7)(A), by striking ‘‘and land-grant colleges 

and universities’’ and inserting ‘‘, land-grant colleges and 

universities, and Hispanic-serving agricultural colleges and 

universities’’; 

(4) in paragraph (9)— 

(A) in subparagraph (A), by striking ‘‘or other colleges 

and universities’’ and inserting ‘‘, Hispanic-serving agricultural colleges and universities, or other colleges and universities’’; and 

(B) in subparagraph (D), by striking ‘‘and’’ at the end; 

(5) in paragraph (10), by striking the period at the end 

and inserting ‘‘; and’’; and 

(6) by adding at the end the following: 

‘‘(11) establish a program for the purpose of providing 

fellowships to United States or foreign students to study at 

foreign agricultural colleges and universities working under 

agreements provided for under paragraph (3).’’. 

SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND EDUCATION PROGRAMS. 

Section 1459A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7132. ADMINISTRATION. 

(a) LIMITATION ON INDIRECT COSTS FOR AGRICULTURAL

RESEARCH, EDUCATION, AND EXTENSION PROGRAMS.—Section 

1462(a) of the National Agriculture Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) is amended— 

(1) by striking ‘‘a competitive’’ and inserting ‘‘any’’; and 

(2) by striking ‘‘19 percent’’ and inserting ‘‘22 percent’’. 

(b) AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE

REQUIREMENTS.—Section 1469(a)(3) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3315(a)(3)) is amended by striking ‘‘appropriated’’ and inserting 

‘‘made available’’. 

SEC. 7133. RESEARCH EQUIPMENT GRANTS. 

Section 1462A(e) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7134. UNIVERSITY RESEARCH. 

Section 1463 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by 

striking ‘‘2007’’ each place it appears in subsections (a) and (b) 

and inserting ‘‘2012’’. 

SEC. 7135. EXTENSION SERVICE. 

Section 1464 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS. 

Section 1473D(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 
H. R. 2419—307 

SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM. 

Subtitle K of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) is amended 

by adding at the end the following: 

‘‘SEC. 1473E. NEW ERA RURAL TECHNOLOGY PROGRAM. 

‘‘(a) DEFINITION OF COMMUNITY COLLEGE.—In this section, the 

term ‘community college’ means an institution of higher education 

(as defined in section 101 of the Higher Education Act of 1965 

(20 U.S.C. 1001))— 

‘‘(1) that admits as regular students individuals who— 

‘‘(A) are beyond the age of compulsory school attendance in the State in which the institution is located; and 

‘‘(B) have the ability to benefit from the training offered 

by the institution; 

‘‘(2) that does not provide an educational program for which 

the institution awards a bachelor’s degree or an equivalent 

degree; and 

‘‘(3) that— 

‘‘(A) provides an educational program of not less than 

2 years that is acceptable for full credit toward such a 

degree; or 

‘‘(B) offers a 2-year program in engineering, technology, 

mathematics, or the physical, chemical, or biological 

sciences, designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific, 

or mathematical principles of knowledge. 

‘‘(b) FUNCTIONS.— ‘‘(1) ESTABLISHMENT.— ‘‘(A) IN GENERAL.—The Secretary shall establish a program to be known as the ‘New Era Rural Technology 

Program’, to make grants available for technology development, applied research, and training to aid in the development of an agriculture-based renewable energy workforce. 

‘‘(B) SUPPORT.—The initiative under this section shall 

support the fields of— 

‘‘(i) bioenergy; 

‘‘(ii) pulp and paper manufacturing; and 

‘‘(iii) agriculture-based renewable energy resources. 

‘‘(2) REQUIREMENTS FOR FUNDING.—To receive funding 

under this section, an entity shall— 

‘‘(A) be a community college or advanced technological 

center, located in a rural area and in existence on the 

date of the enactment of this section, that participates 

in agricultural or bioenergy research and applied research; 

‘‘(B) have a proven record of development and 

implementation of programs to meet the needs of students, 

educators, and business and industry to supply the agriculture-based, renewable energy or pulp and paper manufacturing fields with certified technicians, as determined 

by the Secretary; and 

‘‘(C) have the ability to leverage existing partnerships 

and occupational outreach and training programs for secondary schools, 4-year institutions, and relevant nonprofit 

organizations. 
H. R. 2419—308 

‘‘(c) GRANT PRIORITY.—In providing grants under this section, 

the Secretary shall give preference to eligible entities working in 

partnership— 

‘‘(1) to improve information-sharing capacity; and 

‘‘(2) to maximize the ability to meet the requirements of 

this section. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section such sums as are 

necessary for each of fiscal years 2008 through 2012.’’. 

SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS. 

Subtitle K of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended 

by section 7137) is amended by adding at the end the following: 

‘‘SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS. 

‘‘(a) GRANT PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall make competitive 

grants to NLGCA Institutions to assist the NLGCA Institutions 

in maintaining and expanding the capacity of the NLGCA 

Institutions to conduct education, research, and outreach activities relating to— 

‘‘(A) agriculture; 

‘‘(B) renewable resources; and 

‘‘(C) other similar disciplines. 

‘‘(2) USE OF FUNDS.—An NLGCA Institution that receives 

a grant under paragraph (1) may use the funds made available 

through the grant to maintain and expand the capacity of 

the NLGCA Institution— 

‘‘(A) to successfully compete for funds from Federal 

grants and other sources to carry out educational, research, 

and outreach activities that address priority concerns of 

national, regional, State, and local interest; 

‘‘(B) to disseminate information relating to priority concerns to— 

‘‘(i) interested members of the agriculture, renewable resources, and other relevant communities; 

‘‘(ii) the public; and 

‘‘(iii) any other interested entity; 

‘‘(C) to encourage members of the agriculture, renewable resources, and other relevant communities to participate in priority education, research, and outreach activities 

by providing matching funding to leverage grant funds; 

and 

‘‘(D) through— 

‘‘(i) the purchase or other acquisition of equipment 

and other infrastructure (not including alteration, 

repair, renovation, or construction of buildings); 

‘‘(ii) the professional growth and development of 

the faculty of the NLGCA Institution; and 

‘‘(iii) the development of graduate assistantships. 

‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section such sums as are 

necessary for each of fiscal years 2008 through 2012.’’. 
H. R. 2419—309 

SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND 

TECHNOLOGY FELLOWSHIP PROGRAM. 

Subtitle K of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended 

by section 7138) is amended by adding at the end the following: 

‘‘SEC. 1473G. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND 

TECHNOLOGY FELLOWSHIP PROGRAM. 

‘‘(a) FELLOWSHIP PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall establish a fellowship program, to be known as the ‘Borlaug International Agricultural Science and Technology Fellowship Program,’ to provide fellowships for scientific training and study in the United 

States to individuals from eligible countries (as described in 

subsection (b)) who specialize in agricultural education, 

research, and extension. 

‘‘(2) PROGRAMS.—The Secretary shall carry out the fellowship program by implementing 3 programs designed to assist 

individual fellowship recipients, including— 

‘‘(A) a graduate studies program in agriculture to assist 

individuals who participate in graduate agricultural degree 

training at a United States institution; 

‘‘(B) an individual career improvement program to 

assist agricultural scientists from developing countries in 

upgrading skills and understanding in agricultural science 

and technology; and 

‘‘(C) a Borlaug agricultural policy executive leadership 

course to assist senior agricultural policy makers from 

eligible countries, with an initial focus on individuals from 

sub-Saharan Africa and the independent states of the 

former Soviet Union. 

‘‘(b) ELIGIBLE COUNTRIES.—An eligible country is a developing 

country, as determined by the Secretary using a gross national 

income per capita test selected by the Secretary. 

‘‘(c) PURPOSE OF FELLOWSHIPS.—A fellowship provided under 

this section shall— 

‘‘(1) promote food security and economic growth in eligible 

countries by— 

‘‘(A) educating a new generation of agricultural scientists; 

‘‘(B) increasing scientific knowledge and collaborative 

research to improve agricultural productivity; and 

‘‘(C) extending that knowledge to users and intermediaries in the marketplace; and 

‘‘(2) shall support— 

‘‘(A) training and collaborative research opportunities 

through exchanges for entry level international agricultural 

research scientists, faculty, and policymakers from eligible 

countries; 

‘‘(B) collaborative research to improve agricultural 

productivity; 

‘‘(C) the transfer of new science and agricultural technologies to strengthen agricultural practice; and 

‘‘(D) the reduction of barriers to technology adoption. 

‘‘(d) FELLOWSHIP RECIPIENTS.— 
H. R. 2419—310 

‘‘(1) ELIGIBLE CANDIDATES.—The Secretary may provide 

fellowships under this section to individuals from eligible countries who specialize or have experience in agricultural education, research, extension, or related fields, including— 

‘‘(A) individuals from the public and private sectors; 

and 

‘‘(B) private agricultural producers. 

‘‘(2) CANDIDATE IDENTIFICATION.—The Secretary shall use 

the expertise of United States land-grant colleges and universities and similar universities, international organizations 

working in agricultural research and outreach, and national 

agricultural research organizations to help identify program 

candidates for fellowships under this section from the public 

and private sectors of eligible countries. 

‘‘(e) USE OF FELLOWSHIPS.—A fellowship provided under this 

section shall be used— 

‘‘(1) to promote collaborative programs among agricultural 

professionals of eligible countries, agricultural professionals of 

the United States, the international agricultural research 

system, and, as appropriate, United States entities conducting 

research; and 

‘‘(2) to support fellowship recipients through programs 

described in subsection (a)(2). 

‘‘(f) PROGRAM IMPLEMENTATION.—The Secretary shall provide 

for the management, coordination, evaluation, and monitoring of 

the Borlaug International Agricultural Science and Technology 

Fellowship Program and for the individual programs described in 

subsection (a)(2), except that the Secretary may contract out to 

1 or more collaborating universities the management of 1 or more 

of the fellowship programs. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section, to remain available until expended.’’. 

SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS. 

Section 1477 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7141. RANGELAND RESEARCH GRANTS. 

Section 1483(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7142. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING 

AND RESPONSE. 

Section 1484(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7143. RESIDENT INSTRUCTION AND DISTANCE EDUCATION 

GRANTS PROGRAM FOR INSULAR AREA INSTITUTIONS OF 

HIGHER EDUCATION. 

(a) DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.—Section 

1490(f) of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 
H. R. 2419—311 

(b) RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.—Section 1491 of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended— 

(1) by redesignating subsection (e) as subsection (c); and 

(2) in subsection (c) (as so redesignated), by striking ‘‘2007’’ 

and inserting ‘‘2012’’. 

Subtitle B—Food, Agriculture, 

Conservation, and Trade Act of 1990 

SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM. 

Section 1635(b) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ‘‘2007’’ 

and inserting ‘‘2012’’. 

SEC. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION 

SYSTEM. 

Section 1641(c) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ‘‘1991 

through 1997’’ and inserting ‘‘2008 through 2012’’. 

SEC. 7203. PARTNERSHIPS. 

Section 1672(d) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5925(d)) is amended by striking ‘‘may’’ 

and inserting ‘‘shall’’. 

SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS. 

(a) IN GENERAL.—Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended— 

(1) in subsection (e)— 

(A) in paragraph (3), by striking ‘‘and controlling 

aflatoxin in the food and feed chains.’’ and inserting ‘‘, 

improving, and eventually commercializing, alfatoxin controls in corn and other affected agricultural products and 

crops.’’; 

(B) by striking paragraphs (1), (4), (7), (8), (15), (17), 

(21), (23), (26), (27), (32), (34), (41), (42), (43), and (45); 

(C) by redesignating paragraphs (2), (3), (5), (6), (9) 

through (14), (16), (18) through (20), (22), (24), (25), (28) 

through (31), (33), (35) through (40), and (44) as paragraphs 

(1) through (29), respectively; and 

(D) by adding at the end the following: 

‘‘(30) AIR EMISSIONS FROM LIVESTOCK OPERATIONS.— 

Research and extension grants may be made under this section 

for the purpose of conducting field verification tests and developing mitigation options for air emissions from animal feeding 

operations. 

‘‘(31) SWINE GENOME PROJECT.—Research grants may be 

made under this section to conduct swine genome research, 

including the mapping of the swine genome. 

‘‘(32) CATTLE FEVER TICK PROGRAM.—Research and extension grants may be made under this section to study cattle 

fever ticks to facilitate understanding of the role of wildlife 

in the persistence and spread of cattle fever ticks, to develop 

advanced methods for eradication of cattle fever ticks, and 

to improve management of diseases relating to cattle fever 
H. R. 2419—312 

ticks that are associated with wildlife, livestock, and human 

health. 

‘‘(33) SYNTHETIC GYPSUM.—Research and extension grants 

may be made under this section to study the uses of synthetic 

gypsum from electric power plants to remediate soil and 

nutrient losses. 

‘‘(34) CRANBERRY RESEARCH PROGRAM.—Research and 

extension grants may be made under this section to study 

new technologies to assist cranberry growers in complying with 

Federal and State environmental regulations, increase production, develop new growing techniques, establish more efficient 

growing methodologies, and educate cranberry producers about 

sustainable growth practices. 

‘‘(35) SORGHUM RESEARCH INITIATIVE.—Research and extension grants may be made under this section to study the use 

of sorghum as a bioenergy feedstock, promote diversification 

in, and the environmental benefits of sorghum production, and 

promote water conservation through the use of sorghum. 

‘‘(36) MARINE SHRIMP FARMING PROGRAM.—Research and 

extension grants may be made under this section to establish 

a research program to advance and maintain a domestic shrimp 

farming industry in the United States. 

‘‘(37) TURFGRASS RESEARCH INITIATIVE.—Research and 

extension grants may be made under this section to study 

the production of turfgrass (including the use of water, fertilizer, pesticides, fossil fuels, and machinery for turf establishment and maintenance) and environmental protection and 

enhancement relating to turfgrass production. 

‘‘(38) AGRICULTURAL WORKER SAFETY RESEARCH INITIATIVE.—Research and extension grants may be made under this 

section— 

‘‘(A) to study and demonstrate methods to minimize 

exposure of farm and ranch owners and operators, pesticide 

handlers, and agricultural workers to pesticides, including 

research addressing the unique concerns of farm workers 

resulting from long-term exposure to pesticides; and 

‘‘(B) to develop rapid tests for on-farm use to better 

inform and educate farmers, ranchers, and farm and ranch 

workers regarding safe field re-entry intervals. 

‘‘(39) HIGH PLAINS AQUIFER REGION.—Research and extension grants may be made under this section to carry out interdisciplinary research relating to diminishing water levels and 

increased demand for water in the High Plains aquifer region. 

‘‘(40) DEER INITIATIVE.—Research and extension grants may 

be made under this section to support collaborative research 

focusing on the development of viable strategies for the prevention, diagnosis, and treatment of infectious, parasitic, and toxic 

diseases of farmed deer and the mapping of the deer genome. 

‘‘(41) PASTURE-BASED BEEF SYSTEMS RESEARCH INITIATIVE.— 

Research and extension grants may be made under this section 

to study the development of forage sequences and combinations 

for cow-calf, heifer development, stocker, and finishing systems, 

to deliver optimal nutritive value for efficient production of 

cattle for pasture finishing, to optimize forage systems to 

improve marketability of pasture-finished beef, and to assess 

the effect of forage quality on reproductive fitness. 
H. R. 2419—313 

‘‘(42) AGRICULTURAL PRACTICES RELATING TO CLIMATE

CHANGE.—Research and extension grants may be made under 

this section for field and laboratory studies that examine the 

ecosystem from gross to minute scales and for projects that 

explore the relationship of agricultural practices to climate 

change. 

‘‘(43) BRUCELLOSIS CONTROL AND ERADICATION.—Research 

and extension grants may be made under this section to conduct 

research relating to the development of vaccines and vaccine 

delivery systems to effectively control and eliminate brucellosis 

in wildlife, and to assist with the controlling of the spread 

of brucellosis from wildlife to domestic animals. 

‘‘(44) BIGHORN AND DOMESTIC SHEEP DISEASE MECHA- NISMS.—Research and extension grants may be made under 

this section to conduct research relating to the health status 

of (including the presence of infectious diseases in) bighorn 

and domestic sheep under range conditions. 

‘‘(45) AGRICULTURAL DEVELOPMENT IN THE AMERICAN- PACIFIC REGION.—Research and extension grants may be made 

under this section to support food and agricultural science 

at a consortium of land-grant institutions in the AmericanPacific region. 

‘‘(46) TROPICAL AND SUBTROPICAL AGRICULTURAL

RESEARCH.—Research grants may be made under this section, 

in equal dollar amounts to the Caribbean and Pacific Basins, 

to support tropical and subtropical agricultural research, 

including pest and disease research, at the land-grant institutions in the Caribbean and Pacific regions. 

‘‘(47) VIRAL HEMORRHAGIC SEPTICEMIA.—Research and 

extension grants may be made under this section to study— 

‘‘(A) the effects of viral hemorrhagic septicemia 

(referred to in this paragraph as ‘VHS’) on freshwater 

fish throughout the natural and expanding range of VHS; 

and 

‘‘(B) methods for transmission and human-mediated 

transport of VHS among waterbodies. 

‘‘(48) FARM AND RANCH SAFETY.—Research and extension 

grants may be made under this section to carry out projects 

to decrease the incidence of injury and death on farms and 

ranches, including— 

‘‘(A) on-site farm or ranch safety reviews; 

‘‘(B) outreach and dissemination of farm safety 

research and interventions to agricultural employers, 

employees, youth, farm and ranch families, seasonal 

workers, or other individuals; and 

‘‘(C) agricultural safety education and training. 

‘‘(49) WOMEN AND MINORITIES IN STEM FIELDS.—Research 

and extension grants may be made under this section to 

increase participation by women and underrepresented minorities from rural areas in the fields of science, technology, 

engineering, and mathematics, with priority given to eligible 

institutions that carry out continuing programs funded by the 

Secretary. 

‘‘(50) ALFALFA AND FORAGE RESEARCH PROGRAM.—Research 

and extension grants may be made under this section for the 

purpose of studying improvements in alfalfa and forage yields, 

biomass and persistence, pest pressures, the bioenergy potential 
H. R. 2419—314 

of alfalfa and other forages, and systems to reduce losses during 

harvest and storage. 

‘‘(51) FOOD SYSTEMS VETERINARY MEDICINE.—Research 

grants may be made under this section to address health issues 

that affect food-producing animals, food safety, and the environment, and to improve information resources, curriculum, and 

clinical education of students with respect to food animal veterinary medicine and food safety. 

‘‘(52) BIOCHAR RESEARCH.—Grants may be made under this 

section for research, extension, and integrated activities 

relating to the study of biochar production and use, including 

considerations of agronomic and economic impacts, synergies 

of coproduction with bioenergy, and the value of soil enhancements and soil carbon sequestration.’’; 

(2) by redesignating subsection (h) as subsection (j); 

(3) by inserting after subsection (g) the following: 

‘‘(h) POLLINATOR PROTECTION.— ‘‘(1) RESEARCH AND EXTENSION.— ‘‘(A) GRANTS.—Research and extension grants may be 

made under this section— 

‘‘(i) to survey and collect data on bee colony production and health; 

‘‘(ii) to investigate pollinator biology, immunology, 

ecology, genomics, and bioinformatics; 

‘‘(iii) to conduct research on various factors that 

may be contributing to or associated with colony collapse disorder, and other serious threats to the health 

of honey bees and other pollinators, including— 

‘‘(I) parasites and pathogens of pollinators; and 

‘‘(II) the sublethal effects of insecticides, herbicides, and fungicides on honey bees and native 

and managed pollinators; 

‘‘(iv) to develop mitigative and preventative measures to improve native and managed pollinator health; 

and 

‘‘(v) to promote the health of honey bees and native 

pollinators through habitat conservation and best 

management practices. 

‘‘(B) AUTHORIZATION OF APPROPRIATIONS.—There is 

authorized to be appropriated to carry out this paragraph 

$10,000,000 for each of fiscal years 2008 through 2012. 

‘‘(2) DEPARTMENT OF AGRICULTURE CAPACITY AND INFRASTRUCTURE.— 

‘‘(A) IN GENERAL.—The Secretary shall, to the maximum extent practicable, increase the capacity and infrastructure of the Department— 

‘‘(i) to address colony collapse disorder and other 

long-term threats to pollinator health, including the 

hiring of additional personnel; and 

‘‘(ii) to conduct research on colony collapse disorder 

and other pollinator issues at the facilities of the 

Department. 

‘‘(B) AUTHORIZATION OF APPROPRIATIONS.—There is 

authorized to be appropriated to carry out this paragraph 

$7,250,000 for each of fiscal years 2008 through 2012. 

‘‘(3) HONEY BEE PEST AND PATHOGEN SURVEILLANCE.—There 

is authorized to be appropriated to conduct a nationwide honey 
H. R. 2419—315 

bee pest and pathogen surveillance program $2,750,000 for 

each of fiscal years 2008 through 2012. 

‘‘(4) ANNUAL REPORT ON RESPONSE TO HONEY BEE COLONY

COLLAPSE DISORDER.—The Secretary shall submit to the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the 

Senate an annual report describing the progress made by the 

Department of Agriculture in— 

‘‘(A) investigating the cause or causes of honey bee 

colony collapse; and 

‘‘(B) finding appropriate strategies to reduce colony 

loss. 

‘‘(i) REGIONAL CENTERS OF EXCELLENCE.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall prioritize 

regional centers of excellence established for specific agricultural commodities for the receipt of funding under this section. 

‘‘(2) COMPOSITION.—A regional center of excellence shall 

be composed of 1 or more colleges and universities (including 

land-grant institutions, schools of forestry, schools of veterinary 

medicine, or NLGCA Institutions (as defined in section 1404 

of the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3103))) that provide financial 

support to the regional center of excellence. 

‘‘(3) CRITERIA FOR REGIONAL CENTERS OF EXCELLENCE.— 

The criteria for consideration to be a regional center of excellence shall include efforts— 

‘‘(A) to ensure coordination and cost-effectiveness by 

reducing unnecessarily duplicative efforts regarding 

research, teaching, and extension; 

‘‘(B) to leverage available resources by using public/ 

private partnerships among agricultural industry groups, 

institutions of higher education, and the Federal Government; 

‘‘(C) to implement teaching initiatives to increase 

awareness and effectively disseminate solutions to target 

audiences through extension activities; 

‘‘(D) to increase the economic returns to rural communities by identifying, attracting, and directing funds to 

high-priority agricultural issues; and 

‘‘(E) to improve teaching capacity and infrastructure 

at colleges and universities (including land-grant institutions, schools of forestry, and schools of veterinary medicine).’’; and 

(4) in subsection (j) (as redesignated by paragraph (2)), 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

(b) CONFORMING AMENDMENTS.—Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is 

amended— 

(1) in the first sentence of subsection (a), by striking ‘‘(e), 

(f), and (g)’’ and inserting ‘‘(e) through (i)’’; and 

(2) in subsection (b)— 

(A) in paragraph (1), by striking ‘‘paragraphs (1), (6), 

(7), and (11)’’ and inserting ‘‘paragraphs (4), (7), (8), and 

(11)(B)’’; and 

(B) in paragraph (2), by striking ‘‘subsection (e)’’ and 

inserting ‘‘subsections (e) through (i)’’. 
H. R. 2419—316 

SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE. 

Section 1672A of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5925a) is amended— 

(1) in subsection (b), by striking paragraph (1) and inserting 

the following: 

‘‘(1) IN GENERAL.—Paragraphs (4), (7), (8), and (11)(B) of 

subsection (b) of the Competitive, Special, and Facilities 

Research Grant Act (7 U.S.C. 450i) shall apply with respect 

to the making of grants under this section.’’; 

(2) by striking subsection (d) and inserting the following: 

‘‘(d) PRIORITY.—Following the completion of a peer review 

process for grant proposals received under this section, the Secretary shall give priority to those grant proposals that involve— 

‘‘(1) the cooperation of multiple entities; and 

‘‘(2) States or regions with a high concentration of livestock, 

dairy, or poultry operations.’’; 

(3) in subsection (e)— 

(A) in paragraph (1)(B), by inserting ‘‘and dairy and 

beef cattle waste’’ after ‘‘swine waste’’; and 

(B) by striking paragraph (5) and inserting the following: 

‘‘(5) ALTERNATIVE USES AND RENEWABLE ENERGY.— Research and extension grants may be made under this section 

for the purpose of finding innovative methods and technologies 

to allow agricultural operators to make use of animal waste, 

such as use as fertilizer, methane digestion, composting, and 

other useful byproducts.’’; 

(4) by redesignating subsection (g) as subsection (f); and 

(5) in subsection (f) (as so redesignated), by striking ‘‘2007’’ 

and inserting ‘‘2012’’. 

SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE. 

(a) IN GENERAL.—Section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly known 

as the ‘‘Organic Agriculture Research and Extension Initiative’’) 

is amended— 

(1) in subsection (a)— 

(A) in paragraph (5), by striking ‘‘and’’ after the semicolon; 

(B) in paragraph (6), by striking the period at the 

end and inserting a semicolon; and 

(C) by adding at the end the following: 

‘‘(7) examining optimal conservation and environmental 

outcomes relating to organically produced agricultural products; 

and 

‘‘(8) developing new and improved seed varieties that are 

particularly suited for organic agriculture.’’; and 

(2) by adding at the end the following: 

‘‘(f) FUNDING.— 

‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall make available to carry out 

this section— 

‘‘(A) $18,000,000 for fiscal year 2009; and 

‘‘(B) $20,000,000 for each of fiscal years 2010 through 

2012. 
H. R. 2419—317 

‘‘(2) ADDITIONAL FUNDING.—In addition to amounts made 

available under paragraph (1), there is authorized to be appropriated to carry out this section $25,000,000 for each of fiscal 

years 2009 through 2012.’’. 

(b) COORDINATION.—In carrying out the amendment made by 

this section, the Secretary shall ensure that the Division Chief 

of the applicable Research, Education, and Extension Office established under section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) coordinates projects and activities under this section to ensure, to the maximum extent practicable, that unnecessary duplication of effort is eliminated or minimized. 

SEC. 7207. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY 

EFFICIENCY RESEARCH AND EXTENSION INITIATIVE. 

Title XVI of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5801 et seq.) is amended by inserting after 

section 1672B (7 U.S.C. 5925b) the following: 

‘‘SEC. 1672C. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY 

EFFICIENCY RESEARCH AND EXTENSION INITIATIVE. 

‘‘(a) ESTABLISHMENT AND PURPOSE.—There is established within 

the Department of Agriculture an agricultural bioenergy feedstock 

and energy efficiency research and extension initiative (referred 

to in this section as the ‘Initiative’) for the purpose of enhancing 

the production of biomass energy crops and the energy efficiency 

of agricultural operations. 

‘‘(b) COMPETITIVE RESEARCH AND EXTENSION GRANTS AUTHOR- IZED.—In carrying out this section, the Secretary shall make 

competitive grants to support research and extension activities 

specified in subsections (c) and (d). 

‘‘(c) AGRICULTURAL BIOENERGY FEEDSTOCK RESEARCH AND

EXTENSION AREAS.— ‘‘(1) IN GENERAL.—Agricultural bioenergy feedstock 

research and extension activities funded under the Initiative 

shall focus on improving agricultural biomass production, biomass conversion in biorefineries, and biomass use by— 

‘‘(A) supporting on-farm research on crop species, 

nutrient requirements, management practices, environmental impacts, and economics; 

‘‘(B) supporting the development and operation of onfarm, integrated biomass feedstock production systems; 

‘‘(C) leveraging the broad scientific capabilities of the 

Department of Agriculture and other entities in— 

‘‘(i) plant genetics and breeding; 

‘‘(ii) crop production; 

‘‘(iii) soil and water science; 

‘‘(iv) use of agricultural waste; and 

‘‘(v) carbohydrate, lipid, protein, and lignin chemistry, enzyme development, and biochemistry; and 

‘‘(D) supporting the dissemination of any of the 

research conducted under this subsection that will assist 

in achieving the goals of this section. 

‘‘(2) SELECTION CRITERIA.—In selecting grant recipients for 

projects under paragraph (1), the Secretary shall consider— 

‘‘(A) the capabilities and experiences of the applicant, 

including— 

‘‘(i) research in actual field conditions; and 
H. R. 2419—318 

‘‘(ii) engineering and research knowledge relating 

to biofuels or the production of inputs for biofuel 

production; 

‘‘(B) the range of species types and cropping practices 

proposed for study (including species types and practices 

studied using side-by-side comparisons of those types and 

practices); 

‘‘(C) the need for regional diversity among feedstocks; 

‘‘(D) the importance of developing multiyear data relevant to the production of biomass feedstock crops; 

‘‘(E) the extent to which the project involves direct 

participation of agricultural producers; 

‘‘(F) the extent to which the project proposal includes 

a plan or commitment to use the biomass produced as 

part of the project in commercial channels; and 

‘‘(G) such other factors as the Secretary may determine. 

‘‘(d) ENERGY-EFFICIENCY RESEARCH AND EXTENSION AREAS.— 

On-farm energy-efficiency research and extension activities funded 

under the Initiative shall focus on developing and demonstrating 

technologies and production practices relating to— 

‘‘(1) improving on-farm renewable energy production; 

‘‘(2) encouraging efficient on-farm energy use; 

‘‘(3) promoting on-farm energy conservation; 

‘‘(4) making a farm or ranch energy-neutral; and 

‘‘(5) enhancing on-farm usage of advanced technologies to 

promote energy efficiency. 

‘‘(e) BEST PRACTICES DATABASE.—The Secretary shall develop 

a best-practices database that includes information, to be available 

to the public, on— 

‘‘(1) the production potential of a variety of biomass crops; 

and 

‘‘(2) best practices for production, collection, harvesting, 

storage, and transportation of biomass crops to be used as 

a source of bioenergy. 

‘‘(f) ADMINISTRATION.— 

‘‘(1) IN GENERAL.—Paragraphs (4), (7), (8), and (11)(B) of 

subsection (b) of the Competitive, Special, and Facilities 

Research Grant Act (7 U.S.C. 450i(b)) shall apply with respect 

to making grants under this section. 

‘‘(2) CONSULTATION AND COORDINATION.—The Secretary 

shall— 

‘‘(A) make the grants in consultation with the National 

Agricultural Research, Extension, Education, and 

Economics Advisory Board; and 

‘‘(B) coordinate projects and activities carried out under 

the Initiative with projects and activities under section 

9008 of the Farm Security and Rural Investment Act of 

2002 to ensure, to the maximum extent practicable, that— 

‘‘(i) unnecessary duplication of effort is eliminated 

or minimized; and 

‘‘(ii) the respective strengths of the Department 

of Agriculture and the Department of Energy are 

appropriately used. 

‘‘(3) GRANT PRIORITY.—The Secretary shall give priority 

to grant applications that integrate research and extension 

activities established under subsections (c) and (d), respectively. 
H. R. 2419—319 

‘‘(4) MATCHING FUNDS REQUIRED.—As a condition of 

receiving a grant under this section, the Secretary shall require 

the recipient of the grant to provide funds or in-kind support 

from non-Federal sources in an amount that is at least equal 

to the amount provided by the Federal Government. 

‘‘(5) PARTNERSHIPS ENCOURAGED.—Following the completion of a peer review process for grant proposals received under 

this section, the Secretary may provide a priority to those 

grant proposals found as a result of the peer review process— 

‘‘(A) to be scientifically meritorious; and 

‘‘(B) that involve cooperation— 

‘‘(i) among multiple entities; and 

‘‘(ii) with agricultural producers. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $50,000,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING. 

The Food, Agriculture, Conservation and Trade Act of 1990 

is amended by inserting after section 1672C (as added by section 

7207) the following: 

‘‘SEC. 1672D. FARM BUSINESS MANAGEMENT. 

‘‘(a) IN GENERAL.—The Secretary may make competitive 

research and extension grants for the purpose of— 

‘‘(1) improving the farm management knowledge and skills 

of agricultural producers; and 

‘‘(2) establishing and maintaining a national, publicly available farm financial management database to support improved 

farm management. 

‘‘(b) SELECTION CRITERIA.—In allocating funds made available 

to carry out this section, the Secretary may give priority to grants 

that— 

‘‘(1) demonstrate an ability to work directly with agricultural producers; 

‘‘(2) collaborate with farm management and producer 

associations; 

‘‘(3) address the farm management needs of a variety of 

crops and regions of the United States; and 

‘‘(4) use and support the national farm financial management database. 

‘‘(c) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) of 

subsection (b) of the Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i(b)) shall apply with respect to the making 

of grants under this section. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section.’’. 

SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM. 

Section 1673 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5926) is repealed. 

SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 

DISABILITIES. 

Section 1680(c)(1) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking 

‘‘2007’’ and inserting ‘‘2012’’. 
H. R. 2419—320 

SEC. 7211. RESEARCH ON HONEY BEE DISEASES. 

Section 1681 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5934) is repealed. 

SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE. 

Section 2381(e) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 

‘‘2007’’ and inserting ‘‘2012’’. 

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998 

SEC. 7301. PEER AND MERIT REVIEW. 

Section 103(a) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by 

adding at the end the following: 

‘‘(3) CONSIDERATION.—Peer and merit review procedures 

established under paragraphs (1) and (2) shall not take the 

offer or availability of matching funds into consideration.’’. 

SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 

QUALITY RESEARCH. 

Section 402 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7622) is repealed. 

SEC. 7303. PRECISION AGRICULTURE. 

Section 403 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7623) is repealed. 

SEC. 7304. BIOBASED PRODUCTS. 

(a) PILOT PROJECT.—Section 404(e)(2) of the Agricultural 

Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 

7624(e)(2)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 404(h) of the 

Agricultural Research, Extension, and Education Reform Act of 

1998 (7 U.S.C. 7624(h)) is amended by striking ‘‘2007’’ and inserting 

‘‘2012’’. 

SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION. 

Section 405 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7625) is repealed. 

SEC. 7306. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 

COMPETITIVE GRANTS PROGRAM. 

Section 406(f) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7307. FUSARIUM GRAMINEARUM GRANTS. 

Section 408 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7628) is amended— 

(1) in subsection (a), in the subsection heading, by striking 

‘‘GRANT’’ and inserting ‘‘GRANTS’’; and 

(2) in subsection (e), by striking ‘‘2007’’ and inserting 

‘‘2012’’. 
H. R. 2419—321 

SEC. 7308. BOVINE JOHNE’S DISEASE CONTROL PROGRAM. 

Section 409(b) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS. 

Section 410 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7630) is amended by striking 

subsections (b) and (c) and inserting the following: 

‘‘(b) FLEXIBILITY.—The Secretary shall provide maximum flexibility in content delivery to each organization receiving funds under 

this section so as to ensure that the unique goals of each organization, as well as the local community needs, are fully met. 

‘‘(c) REDISTRIBUTION OF FUNDING WITHIN ORGANIZATIONS

AUTHORIZED.—Recipients of funds under this section may redistribute all or part of the funds received to individual councils 

or local chapters within the councils without further need of 

approval from the Secretary. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section such sums as are 

necessary for each of fiscal years 2008 through 2012.’’. 

SEC. 7310. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 

DEVELOPMENT FOR DEVELOPING COUNTRIES. 

Section 411(c) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE. 

(a) IN GENERAL.—Title IV of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) 

is amended by adding at the end the following: 

‘‘SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) INITIATIVE.—The term ‘Initiative’ means the specialty 

crop research and extension initiative established by subsection 

(b). 

‘‘(2) SPECIALTY CROP.—The term ‘specialty crop’ has the 

meaning given that term in section 3 of the Specialty Crops 

Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 

108–465). 

‘‘(b) ESTABLISHMENT.—There is established within the Department a specialty crop research and extension initiative to address 

the critical needs of the specialty crop industry by developing and 

disseminating science-based tools to address needs of specific crops 

and their regions, including— 

‘‘(1) research in plant breeding, genetics, and genomics 

to improve crop characteristics, such as— 

‘‘(A) product, taste, quality, and appearance; 

‘‘(B) environmental responses and tolerances; 

‘‘(C) nutrient management, including plant nutrient 

uptake efficiency; 

‘‘(D) pest and disease management, including resistance to pests and diseases resulting in reduced application 

management strategies; and 

‘‘(E) enhanced phytonutrient content; 
H. R. 2419—322 

‘‘(2) efforts to identify and address threats from pests and 

diseases, including threats to specialty crop pollinators; 

‘‘(3) efforts to improve production efficiency, productivity, 

and profitability over the long term (including specialty crop 

policy and marketing); 

‘‘(4) new innovations and technology, including improved 

mechanization and technologies that delay or inhibit ripening; 

and 

‘‘(5) methods to prevent, detect, monitor, control, and 

respond to potential food safety hazards in the production and 

processing of specialty crops, including fresh produce. 

‘‘(c) ELIGIBLE ENTITIES.—The Secretary may carry out the Initiative through— 

‘‘(1) Federal agencies; 

‘‘(2) national laboratories; 

‘‘(3) colleges and universities; 

‘‘(4) research institutions and organizations; 

‘‘(5) private organizations or corporations; 

‘‘(6) State agricultural experiment stations; 

‘‘(7) individuals; or 

‘‘(8) groups consisting of 2 or more entities described in 

paragraphs (1) through (7). 

‘‘(d) RESEARCH PROJECTS.—In carrying out this section, the 

Secretary shall award grants on a competitive basis. 

‘‘(e) ADMINISTRATION.— ‘‘(1) IN GENERAL.—With respect to grants awarded under 

subsection (d), the Secretary shall— 

‘‘(A) seek and accept proposals for grants; 

‘‘(B) determine the relevance and merit of proposals 

through a system of peer and merit review in accordance 

with section 103; and 

‘‘(C) award grants on the basis of merit, quality, and 

relevance. 

‘‘(2) TERM.—The term of a grant under this section may 

not exceed 10 years. 

‘‘(3) MATCHING FUNDS REQUIRED.—The Secretary shall 

require the recipient of a grant under this section to provide 

funds or in-kind support from non-Federal sources in an amount 

that is at least equal to the amount provided by the Federal 

Government. 

‘‘(4) OTHER CONDITIONS.—The Secretary may set such other 

conditions on the award of a grant under this section as the 

Secretary determines to be appropriate. 

‘‘(f) PRIORITIES.—In making grants under this section, the Secretary shall provide a higher priority to projects that— 

‘‘(1) are multistate, multi-institutional, or multidisciplinary; 

and 

‘‘(2) include explicit mechanisms to communicate results 

to producers and the public. 

‘‘(g) BUILDINGS AND FACILITIES.—Funds made available under 

this section shall not be used for the construction of a new building 

or facility or the acquisition, expansion, remodeling, or alteration 

of an existing building or facility (including site grading and 

improvement, and architect fees). 

‘‘(h) FUNDING.— ‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall make available to carry out 
H. R. 2419—323 

this section $30,000,000 for fiscal year 2008 and $50,000,000 

for each of fiscal years 2009 through 2012, from which activities 

under each of paragraphs (1) through (5) of subsection (b) 

shall be allocated not less than 10 percent. 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

funds made available under paragraph (1), there is authorized 

to be appropriated to carry out this section $100,000,000 for 

each of fiscal years 2008 through 2012. 

‘‘(3) TRANSFER.—Of the funds made available to the Secretary under paragraph (1) for fiscal year 2008 and authorized 

for use for payment of administrative expenses under section 

1469(a)(3) of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3315(a)(3)), the 

Secretary shall transfer, upon the date of enactment of this 

section, $200,000 to the Office of Prevention, Pesticides, and 

Toxic Substances of the Environmental Protection Agency for 

use in conducting a meta-analysis relating to methyl bromide. 

‘‘(4) AVAILABILITY.—Funds made available pursuant to this 

subsection for a fiscal year shall remain available until 

expended to pay for obligations incurred in that fiscal year.’’. 

(b) COORDINATION.—In carrying out the amendment made by 

this section, the Secretary shall ensure that the Division Chief 

of the applicable Research, Education, and Extension Office established under section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) coordinates projects and activities under this section to ensure, to the maximum extent practicable, that unnecessary duplication of effort is eliminated or minimized. 

SEC. 7312. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM. 

Section 604 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7642) is amended by adding 

at the end the following: 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—In addition to any 

other funds available to carry out subsection (c), there is authorized 

to be appropriated to carry out this section $2,500,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY. 

Section 614(f) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 

striking ‘‘2007’’ and inserting ‘‘2012’’. 

Subtitle D—Other Laws 

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT. 

Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 

178n(a)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 

1994. 

(a) DEFINITION OF 1994 INSTITUTIONS.—Section 532 of the 

Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 

301 note; Public Law 103–382) is amended by adding at the end 

the following: 

‘‘(34) Ilisagvik College.’’. 
H. R. 2419—324 

(b) ENDOWMENT FOR 1994 INSTITUTIONS.—Section 533 of the 

Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 

301 note; Public Law 103–382) is amended— 

(1) in subsection (a)(3), in the matter preceding subparagraph (A), by inserting ‘‘this section and’’ before ‘‘sections 534,’’; 

and 

(2) in the first sentence of subsection (b), by striking ‘‘2007’’ 

and inserting ‘‘2012’’. 

(c) REDISTRIBUTION.—Section 534(a)(3) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 

Law 103–382) is amended— 

(1) by striking ‘‘The amounts’’ and inserting the following: 

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

(B), the amounts’’; and 

(2) by adding at the end the following: 

‘‘(B) REDISTRIBUTION.—Funds that would be paid to 

a 1994 Institution under paragraph (2) shall be withheld 

from that 1994 Institution and redistributed among the 

other 1994 Institutions if that 1994 Institution— 

‘‘(i) declines to accept funds under paragraph (2); 

or 

‘‘(ii) fails to meet the accreditation requirements 

under section 533(a)(3).’’. 

(d) INSTITUTIONAL CAPACITY BUILDING GRANTS.—Section 535 

of the Equity in Educational Land-Grant Status Act of 1994 (7 

U.S.C. 301 note; Public Law 103–382) is amended by striking ‘‘2007’’ 

each place it appears and inserting ‘‘2012’’. 

(e) RESEARCH GRANTS.—Section 536(c) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 

Law 103–382) is amended in the first sentence by striking ‘‘2007’’ 

and inserting ‘‘2012’’. 

(f) EFFECTIVE DATE.—The amendment made by subsection (a) 

takes effect on October 1, 2008. 

SEC. 7403. SMITH-LEVER ACT. 

(a) PROGRAM.—Section 3(d) of the Smith-Lever Act (7 U.S.C. 

343(d)) is amended in the second sentence by striking ‘‘apply for 

and receive’’ and all that follows through paragraph (2) and 

inserting ‘‘compete for and receive funds directly from the Secretary 

of Agriculture.’’. 

(b) ELIMINATION OF THE GOVERNOR’S REPORT REQUIREMENT

FOR EXTENSION ACTIVITIES.—Section 5 of the Smith-Lever Act (7 

U.S.C. 345) is amended by striking the third sentence. 

(c) CONFORMING AMENDMENT.—Section 1444(a)(2) of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3221(a)(2)) is amended by striking ‘‘after 

September 30, 1995, under section 3(d) of that Act (7 U.S.C. 343(d))’’ 

and all that follows through the end of the sentence and inserting 

‘‘under section 3(d) of that Act (7 U.S.C. 343(d)).’’. 

SEC. 7404. HATCH ACT OF 1887. 

(a) DISTRICT OF COLUMBIA.—Section 3(d)(4) of the Hatch Act 

of 1887 (7 U.S.C. 361c(d)(4)) is amended— 

(1) in the paragraph heading, by inserting ‘‘AND THE DISTRICT OF COLUMBIA’’ after ‘‘AREAS’’; 

(2) in subparagraph (A)— 

(A) by inserting ‘‘and the District of Columbia’’ after 

‘‘United States’’; and 
H. R. 2419—325 

(B) by inserting ‘‘and the District of Columbia’’ after 

‘‘respectively,’’; and 

(3) in subparagraph (B), by inserting ‘‘or the District of 

Columbia’’ after ‘‘area’’. 

(b) ELIMINATION OF PENALTY MAIL AUTHORITIES.— (1) IN GENERAL.—Section 6 of the Hatch Act of 1887 (7 

U.S.C. 361f) is amended in the first sentence by striking ‘‘under 

penalty indicia:’’ and all that follows through the end of the 

sentence and inserting a period. 

(2) CONFORMING AMENDMENTS IN OTHER LAWS.— (A) NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF 1977.— (i) Section 1444(f) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 

(7 U.S.C. 3221(f)) is amended by striking ‘‘under penalty indicia:’’ and all that follows through the end 

of the sentence and inserting a period. 

(ii) Section 1445(e) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 

(7 U.S.C. 3222(e)) is amended by striking ‘‘under penalty indicia:’’ and all that follows through the end 

of the sentence and inserting a period. 

(B) OTHER PROVISIONS.—Section 3202(a) of title 39, 

United States Code, is amended— 

(i) in paragraph (1)— 

(I) in subparagraph (D), by adding ‘‘and’’ at 

the end; 

(II) in subparagraph (E), by striking ‘‘sections; 

and’’ and inserting ‘‘sections.’’; and 

(III) by striking subparagraph (F); 

(ii) in paragraph (2), by adding ‘‘and’’ at the end; 

(iii) in paragraph (3) by striking ‘‘thereof; and’’ 

and inserting ‘‘thereof.’’; and 

(iv) by striking paragraph (4). 

SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT. 

Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) 

is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE. 

(a) IN GENERAL.—Subsection (b) of the Competitive, Special, 

and Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended 

to read as follows: 

‘‘(b) AGRICULTURE AND FOOD RESEARCH INITIATIVE.— ‘‘(1) ESTABLISHMENT.—There is established in the Department of Agriculture an Agriculture and Food Research Initiative 

under which the Secretary of Agriculture (referred to in this 

subsection as ‘the Secretary’) may make competitive grants 

for fundamental and applied research, extension, and education 

to address food and agricultural sciences (as defined under 

section 1404 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3103)). 

‘‘(2) PRIORITY AREAS.—The competitive grants program 

established under this subsection shall address the following 

areas: 

‘‘(A) PLANT HEALTH AND PRODUCTION AND PLANT PRODUCTS.—Plant systems, including— 
H. R. 2419—326 

‘‘(i) plant genome structure and function; 

‘‘(ii) molecular and cellular genetics and plant biotechnology; 

‘‘(iii) conventional breeding, including cultivar and 

breed development, selection theory, applied quantitative genetics, breeding for improved food quality, 

breeding for improved local adaptation to biotic stress 

and abiotic stress, and participatory breeding; 

‘‘(iv) plant-pest interactions and biocontrol systems; 

‘‘(v) crop plant response to environmental stresses; 

‘‘(vi) unproved nutrient qualities of plant products; 

and 

‘‘(vii) new food and industrial uses of plant products. 

‘‘(B) ANIMAL HEALTH AND PRODUCTION AND ANIMAL

PRODUCTS.—Animal systems, including— 

‘‘(i) aquaculture; 

‘‘(ii) cellular and molecular basis of animal reproduction, growth, disease, and health; 

‘‘(iii) animal biotechnology; 

‘‘(iv) conventional breeding, including breed 

development, selection theory, applied quantitative 

genetics, breeding for improved food quality, breeding 

for improved local adaptation to biotic stress and abiotic stress, and participatory breeding; 

‘‘(v) identification of genes responsible for improved 

production traits and resistance to disease; 

‘‘(vi) improved nutritional performance of animals; 

‘‘(vii) improved nutrient qualities of animal products and uses; and 

‘‘(viii) the development of new and improved 

animal husbandry and production systems that take 

into account production efficiency, animal well-being, 

and animal systems applicable to aquaculture. 

‘‘(C) FOOD SAFETY, NUTRITION, AND HEALTH.—Nutrition, 

food safety and quality, and health, including— 

‘‘(i) microbial contaminants and pesticides residue 

relating to human health; 

‘‘(ii) links between diet and health; 

‘‘(iii) bioavailability of nutrients; 

‘‘(iv) postharvest physiology and practices; and 

‘‘(v) improved processing technologies. 

‘‘(D) RENEWABLE ENERGY, NATURAL RESOURCES, AND

ENVIRONMENT.—Natural resources and the environment, 

including— 

‘‘(i) fundamental structures and functions of ecosystems; 

‘‘(ii) biological and physical bases of sustainable 

production systems; 

‘‘(iii) minimizing soil and water losses and sustaining surface water and ground water quality; 

‘‘(iv) global climate effects on agriculture; 

‘‘(v) forestry; and 

‘‘(vi) biological diversity. 

‘‘(E) AGRICULTURE SYSTEMS AND TECHNOLOGY.— Engineering, products, and processes, including— 
H. R. 2419—327 

‘‘(i) new uses and new products from traditional 

and nontraditional crops, animals, byproducts, and natural resources; 

‘‘(ii) robotics, energy efficiency, computing, and 

expert systems; 

‘‘(iii) new hazard and risk assessment and mitigation measures; and 

‘‘(iv) water quality and management. 

‘‘(F) AGRICULTURE ECONOMICS AND RURAL COMMUNITIES.—Markets, trade, and policy, including— 

‘‘(i) strategies for entering into and being competitive in domestic and overseas markets; 

‘‘(ii) farm efficiency and profitability, including the 

viability and competitiveness of small and mediumsized dairy, livestock, crop and other commodity operations; 

‘‘(iii) new decision tools for farm and market systems; 

‘‘(iv) choices and applications of technology; 

‘‘(v) technology assessment; and 

‘‘(vi) new approaches to rural development, 

including rural entrepreneurship. 

‘‘(3) TERM.—The term of a competitive grant made under 

this subsection may not exceed 10 years. 

‘‘(4) GENERAL ADMINISTRATION.—In making grants under 

this subsection, the Secretary shall— 

‘‘(A) seek and accept proposals for grants; 

‘‘(B) determine the relevance and merit of proposals 

through a system of peer and merit review in accordance 

with section 103 of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7613); 

‘‘(C) award grants on the basis of merit, quality, and 

relevance; 

‘‘(D) solicit and consider input from persons who conduct or use agricultural research, extension, or education 

in accordance with section 102(b) of the Agricultural 

Research, Extension, and Education Reform Act of 1998 

(7 U.S.C. 7612(b)); and 

‘‘(E) in seeking proposals for grants under this subsection and in performing peer review evaluations of such 

proposals, seek the widest participation of qualified individuals in the Federal Government, colleges and universities, 

State agricultural experiment stations, and the private 

sector. 

‘‘(5) ALLOCATION OF FUNDS.—In making grants under this 

subsection, the Secretary shall allocate funds to the Agriculture 

and Food Research Initiative to ensure that, of funds allocated 

for research activities— 

‘‘(A) not less than 60 percent is made available to 

make grants for fundamental research (as defined in subsection (f)(1) of section 251 of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 6971)), of which— 

‘‘(i) not less than 30 percent is made available 

to make grants for research to be conducted by multidisciplinary teams; and 

‘‘(ii) not more than 2 percent is used for equipment 

grants under paragraph (6)(A); and 
H. R. 2419—328 

‘‘(B) not less than 40 percent is made available to 

make grants for applied research (as defined in subsection 

(f)(1) of section 251 of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 6971)). 

‘‘(6) SPECIAL CONSIDERATIONS.—In making grants under 

this subsection, the Secretary may assist in the development 

of capabilities in the agricultural, food, and environmental 

sciences by providing grants— 

‘‘(A) to an institution to allow for the improvement 

of the research, development, technology transfer, and education capacity of the institution through the acquisition 

of special research equipment and the improvement of agricultural education and teaching, except that the Secretary 

shall use not less than 25 percent of the funds made 

available for grants under this subparagraph to provide 

fellowships to outstanding pre- and post-doctoral students 

for research in the agricultural sciences; 

‘‘(B) to a single investigator or coinvestigators who 

are beginning research careers and do not have an extensive research publication record, except that, to be eligible 

for a grant under this subparagraph, an individual shall 

be within 5 years of the beginning of the initial career 

track position of the individual; 

‘‘(C) to ensure that the faculty of small, mid-sized, 

and minority-serving institutions who have not previously 

been successful in obtaining competitive grants under this 

subsection receive a portion of the grants; and 

‘‘(D) to improve research, extension, and education 

capabilities in States (as defined in section 1404 of the 

National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3103)) in which institutions 

have been less successful in receiving funding under this 

subsection, based on a 3-year rolling average of funding 

levels. 

‘‘(7) ELIGIBLE ENTITIES.—The Secretary may make grants 

to carry out research, extension, and education under this subsection to— 

‘‘(A) State agricultural experiment stations; 

‘‘(B) colleges and universities; 

‘‘(C) university research foundations; 

‘‘(D) other research institutions and organizations; 

‘‘(E) Federal agencies; 

‘‘(F) national laboratories; 

‘‘(G) private organizations or corporations; 

‘‘(H) individuals; or 

‘‘(I) any group consisting of 2 or more of the entities 

described in subparagraphs (A) through (H). 

‘‘(8) CONSTRUCTION PROHIBITED.—Funds made available for 

grants under this subsection shall not be used for the construction of a new building or facility or the acquisition, expansion, 

remodeling, or alteration of an existing building or facility 

(including site grading and improvement, and architect fees). 

‘‘(9) MATCHING FUNDS.— 

‘‘(A) EQUIPMENT GRANTS.— ‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), in the case of a grant made under paragraph 

(6)(A), the amount provided under this subsection may 
H. R. 2419—329 

not exceed 50 percent of the cost of the special research 

equipment or other equipment acquired using funds 

from the grant. 

‘‘(ii) WAIVER.—The Secretary may waive all or part 

of the matching requirement under clause (i) in the 

case of a college, university, or research foundation 

maintained by a college or university that ranks in 

the lowest 1⁄3 of such colleges, universities, and 

research foundations on the basis of Federal research 

funds received, if the equipment to be acquired using 

funds from the grant costs not more than $25,000 

and has multiple uses within a single research project 

or is usable in more than 1 research project. 

‘‘(B) APPLIED RESEARCH.—As a condition of making 

a grant under paragraph (5)(B), the Secretary shall require 

the funding of the grant to be matched with equal matching 

funds from a non-Federal source if the grant is for applied 

research that is— 

‘‘(i) commodity-specific; and 

‘‘(ii) not of national scope. 

‘‘(10) PROGRAM ADMINISTRATION.—To the maximum extent 

practicable, the Director of the National Institute of Food and 

Agriculture, in coordination with the Under Secretary for 

Research, Education, and Economics, shall allocate grants 

under this subsection to high-priority research, taking into 

consideration, when available, the determinations made by the 

National Agricultural Research, Extension, Education, and 

Economics Advisory Board (as established under section 1408 

of the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3123)). 

‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) IN GENERAL.—There is authorized to be appro- priated to carry out this subsection $700,000,000 for each 

of fiscal years 2008 through 2012, of which— 

‘‘(i) not less than 30 percent shall be made available for integrated research pursuant to section 406 

of the Agricultural Research, Extension, and Education 

Reform Act of 1998 (7 U.S.C. 7626); and 

‘‘(ii) not more than 4 percent may be retained 

by the Secretary to pay administrative costs incurred 

by the Secretary in carrying out this subsection. 

‘‘(B) AVAILABILITY.—Funds made available under this 

paragraph shall— 

‘‘(i) be available for obligation for a 2-year period 

beginning on October 1 of the fiscal year for which 

the funds are first made available; and 

‘‘(ii) remain available until expended to pay for 

obligations incurred during that 2-year period.’’. 

(b) REPEALS.— (1) Section 401 of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7621) is repealed. 

(2) Subsection (d) of the Competitive, Special, and Facilities 

Research Grant Act (7 U.S.C. 450i(d)) is repealed. 

(c) EFFECT ON CURRENT SOLICITATIONS.—The amendments 

made by this section shall not apply to any solicitation for grant 

applications issued by the Cooperative State Research, Education, 

and Extension Service before the date of enactment of this Act. 
H. R. 2419—330 

(d) CONFORMING AMENDMENTS.— 

(1) Section 1473 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) 

is amended in the first sentence by striking ‘‘and subsection 

(d)’’. 

(2) Section 1671(d) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5924(d) is amended by striking 

‘‘Paragraphs (1), (6), (7), and (11)’’ and inserting ‘‘Paragraphs 

(4), (7), (8), and (11)(B)’’. 

(3) Section 1672B(b) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5925b(b)) is amended by 

striking ‘‘Paragraphs (1), (6), (7), and (11)’’ and inserting ‘‘Paragraphs (4), (7), (8), and (11)(B)’’. 

SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000. 

Section 221 of the Agricultural Risk Protection Act of 2000 

(7 U.S.C. 6711(g)) is amended by striking subsection (g) and 

inserting the following: 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $15,000,000 for each 

of fiscal years 2007 through 2012.’’. 

SEC. 7408. EXCHANGE OR SALE AUTHORITY. 

Title III of the Department of Agriculture Reorganization Act 

of 1994 (Public Law 103–354; 108 Stat. 3238) is amended by adding 

at the end the following: 

‘‘SEC. 307. EXCHANGE OR SALE AUTHORITY. 

‘‘(a) DEFINITION OF QUALIFIED ITEM OF PERSONAL PROPERTY.— In this section, the term ‘qualified item of personal property’ 

means— 

‘‘(1) an animal; 

‘‘(2) an animal product; 

‘‘(3) a plant; or 

‘‘(4) a plant product. 

‘‘(b) GENERAL AUTHORITY.—Except as provided in subsection 

(c), notwithstanding chapter 5 of subtitle I of title 40, United 

States Code, the Secretary, acting through the Under Secretary 

for Research, Education, and Economics, in managing personal 

property for the purpose of carrying out the research functions 

of the Department, may exchange, sell, or otherwise dispose of 

any qualified item of personal property, including by way of public 

auction, and may retain and apply the sale or other proceeds, 

without further appropriation and without fiscal year limitation, 

in whole or in partial payment— 

‘‘(1) to acquire any qualified item of personal property; 

or 

‘‘(2) to offset costs related to the maintenance, care, or 

feeding of any qualified item of personal property. 

‘‘(c) EXCEPTION.—Subsection (b) does not apply to the free 

dissemination of new varieties of seeds and germplasm in accordance with section 520 of the Revised Statutes (commonly known 

as the ‘Department of Agriculture Organic Act’) (7 U.S.C. 2201).’’. 

SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM. 

Title III of the Department of Agriculture Reorganization Act 

of 1994 (Public Law 103–354; 108 Stat. 3238) (as amended by 

section 7408) is amended by adding at the end the following: 
H. R. 2419—331 

‘‘SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM. 

‘‘(a) ESTABLISHMENT.—To enhance the use of real property 

administered by agencies of the Department, the Secretary may 

establish a pilot program, in accordance with this section, at the 

Beltsville Agricultural Research Center of the Agricultural Research 

Service and the National Agricultural Library to lease nonexcess 

property of the Center or the Library to any individual or entity, 

including agencies or instrumentalities of State or local governments. 

‘‘(b) REQUIREMENTS.— ‘‘(1) IN GENERAL.—Notwithstanding chapter 5 of subtitle 

I of title 40, United States Code, the Secretary may lease 

real property at the Beltsville Agricultural Research Center 

or the National Agricultural Library in accordance with such 

terms and conditions as the Secretary may prescribe, if the 

Secretary determines that the lease— 

‘‘(A) is consistent with, and will not adversely affect, 

the mission of the Department agency administering the 

property; 

‘‘(B) will enhance the use of the property; 

‘‘(C) will not permit any portion of Department agency 

property or any facility of the Department to be used 

for the public retail or wholesale sale of merchandise or 

residential development; 

‘‘(D) will not permit the construction or modification 

of facilities financed by non-Federal sources to be used 

by an agency, except for incidental use; and 

‘‘(E) will not include any property or facility required 

for any Department agency purpose without prior consideration of the needs of the agency. 

‘‘(2) TERM.—The term of a lease under this section shall 

not exceed 30 years. 

‘‘(3) CONSIDERATION.— 

‘‘(A) IN GENERAL.—Consideration provided for a lease 

under this section shall be— 

‘‘(i) in an amount equal to fair market value, as 

determined by the Secretary; and 

‘‘(ii) in the form of cash. 

‘‘(B) USE OF FUNDS.— 

‘‘(i) IN GENERAL.—Consideration provided for a 

lease under this section shall be— 

‘‘(I) deposited in a capital asset account to 

be established by the Secretary; and 

‘‘(II) available until expended, without further 

appropriation, for maintenance, capital revitalization, and improvements of the Department properties and facilities at the Beltsville Agricultural 

Research Center and National Agricultural 

Library. 

‘‘(ii) BUDGETARY TREATMENT.—For purposes of the 

budget, the amounts described in clause (i) shall not 

be treated as a receipt of any Department agency or 

any other agency leasing property under this section. 

‘‘(4) COSTS.—The lessee shall cover all costs associated 

with a lease under this section, including the cost of— 

‘‘(A) the project to be carried out on property or at 

a facility covered by the lease; 
H. R. 2419—332 

‘‘(B) provision and administration of the lease; 

‘‘(C) construction of any needed facilities; 

‘‘(D) provision of applicable utilities; and 

‘‘(E) any other facility cost normally associated with 

the operation of a leased facility. 

‘‘(5) PROHIBITION OF USE OF APPROPRIATIONS.—The Secretary shall not use any funds made available to the Secretary 

in an appropriations Act for the construction or operating costs 

of any space covered by a lease under this section. 

‘‘(6) TERMINATION OF AUTHORITY.—This section and the 

authority provided by this section terminate— 

‘‘(A) on the date that is 5 years after the date of 

enactment of this section; or 

‘‘(B) with respect to any particular leased property, 

on the date of termination of the lease. 

‘‘(c) EFFECT OF OTHER LAWS.— ‘‘(1) UTILIZATION.—Property that is leased pursuant to this 

section shall not be considered to be unutilized or underutilized 

for purposes of section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411). 

‘‘(2) DISPOSAL.—Property at the Beltsville Agricultural 

Research Center or the National Agricultural Library that is 

leased pursuant to this section shall not be considered to be 

disposed of by sale, lease, rental, excessing, or surplusing for 

purposes of section 523 of Public Law 100–202 (101 Stat. 1329- 

417). 

‘‘(d) ADMINISTRATION.— 

‘‘(1) IN GENERAL.—Not later than 90 days after the date 

of enactment of this section, the Secretary shall submit to 

the Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry 

of the Senate a report that describes detailed management 

objectives and performance measurements by which the Secretary intends to evaluate the success of the program under 

this section. 

‘‘(2) REPORTS.—Not later than 1, 3, and 5 years after the 

date of enactment of this section, the Secretary shall submit 

to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry 

of the Senate a report describing the implementation of the 

program under this section, including— 

‘‘(A) a copy of each lease entered into pursuant to 

this section; and 

‘‘(B) an assessment by the Secretary of the success 

of the program using the management objectives and 

performance measurements developed by the Secretary.’’. 

SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM. 

(a) GRANTS.—Section 7405(c) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended— 

(1) by striking paragraph (3) and inserting the following: 

‘‘(3) MAXIMUM TERM AND SIZE OF GRANT.— ‘‘(A) IN GENERAL.—A grant under this subsection 

shall— 

‘‘(i) have a term that is not more than 3 years; 

and 
H. R. 2419—333 

‘‘(ii) be in an amount that is not more than 

$250,000 for each year. 

‘‘(B) CONSECUTIVE GRANTS.—An eligible recipient may 

receive consecutive grants under this subsection.’’; 

(2) by redesignating paragraphs (5) through (7) as paragraphs (8) through (10), respectively; 

(3) by inserting after paragraph (4) the following: 

‘‘(5) EVALUATION CRITERIA.—In making grants under this 

subsection, the Secretary shall evaluate— 

‘‘(A) relevancy; 

‘‘(B) technical merit; 

‘‘(C) achievability; 

‘‘(D) the expertise and track record of 1 or more 

applicants; 

‘‘(E) the adequacy of plans for the participatory evaluation process, outcome-based reporting, and the communication of findings and results beyond the immediate target 

audience; and 

‘‘(F) other appropriate factors, as determined by the 

Secretary. 

‘‘(6) REGIONAL BALANCE.—In making grants under this subsection, the Secretary shall, to the maximum extent practicable, 

ensure geographical diversity. 

‘‘(7) PRIORITY.—In making grants under this subsection, 

the Secretary shall give priority to partnerships and collaborations that are led by or include nongovernmental and community-based organizations with expertise in new agricultural producer training and outreach.’’. 

(b) FUNDING.—Section 7405 of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 3319f) is amended by striking 

subsection (h) and inserting the following: 

‘‘(h) FUNDING.— ‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall make available to carry out 

this section— 

‘‘(A) $18,000,000 for fiscal year 2009; and 

‘‘(B) $19,000,000 for each of fiscal years 2010 through 

2012. 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

funds provided under paragraph (1), there is authorized to 

be appropriated to carry out this section $30,000,000 for each 

of fiscal years 2008 through 2012.’’. 

SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY 

IN PRODUCING FOOD FOR HUMAN CONSUMPTION. 

Section 10802 of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 5921a) is repealed. 

SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT. 

(a) IN GENERAL.—Section 2 of Public Law 87–788 (commonly 

known as the ‘‘McIntire-Stennis Cooperative Forestry Act’’) (16 

U.S.C. 582a–1) is amended by inserting ‘‘and 1890 Institutions 

(as defined in section 2 of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7601)),’’ before ‘‘and 

(b)’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

takes effect on October 1, 2008. 
H. R. 2419—334 

SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 6 of the 

Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 

amended in the first sentence by striking ‘‘2007’’ and inserting 

‘‘2012’’. 

(b) TERMINATION DATE.—Section 8 of the Renewable Resources 

Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95–306) 

is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 7414. NATIONAL AQUACULTURE ACT OF 1980. 

Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 

2809) is amended by striking ‘‘2007’’ each place it appears and 

inserting ‘‘2012’’. 

SEC. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL 

ARBORETUM. 

The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is amended 

by adding at the end the following: 

‘‘SEC. 7. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL 

ARBORETUM. 

‘‘A Chinese Garden may be constructed at the National Arboretum established under this Act with— 

‘‘(1) funds accepted under section 5; 

‘‘(2) authorities provided to the Secretary of Agriculture 

under section 6; and 

‘‘(3) appropriations provided for this purpose.’’. 

SEC. 7416. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 

TEACHING POLICY ACT AMENDMENTS OF 1985. 

Section 1431 of the National Agricultural Research, Extension, 

and Teaching Policy Act Amendments of 1985 (Public Law 99– 

198; 99 Stat. 1556) is amended by striking ‘‘2007’’ and inserting 

‘‘2012’’. 

SEC. 7417. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF 

COLUMBIA FOR CERTAIN LAND-GRANT UNIVERSITY 

ASSISTANCE. 

(a) IN GENERAL.—Section 208 of the District of Columbia Public 

Postsecondary Education Reorganization Act (Public Law 93–471; 

88 Stat. 1428) is amended— 

(1) in subsection (b)(2), by striking ‘‘, except’’ and all that 

follows through the period and inserting a period; and 

(2) in subsection (c)— 

(A) by striking ‘‘section 3’’ each place it appears and 

inserting ‘‘section 3(c)’’; and 

(B) by striking ‘‘Such sums may be used to pay’’ and 

all that follows through ‘‘work.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

take effect on October 1, 2008. 

Subtitle E—Miscellaneous 

PART I—GENERAL PROVISIONS 

SEC. 7501. DEFINITIONS. 

Except as otherwise provided in this subtitle, in this subtitle: 
H. R. 2419—335 

(1) CAPACITY AND INFRASTRUCTURE PROGRAM.—The term 

‘‘capacity and infrastructure program’’ has the meaning given 

the term in subsection (f)(1) of section 251 of the Department 

of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) (as 

added by section 7511(a)(4)). 

(2) CAPACITY AND INFRASTRUCTURE PROGRAM CRITICAL BASE

FUNDING.—The term ‘‘capacity and infrastructure program critical base funding’’ means the aggregate amount of Federal 

funds made available for capacity and infrastructure programs 

for fiscal year 2006, as appropriate. 

(3) COMPETITIVE PROGRAM.—The term ‘‘competitive program’’ has the meaning given the term in subsection (f)(1) 

of section 251 of the Department of Agriculture Reorganization 

Act of 1994 (7 U.S.C. 6971) (as added by section 7511(a)(4)). 

(4) COMPETITIVE PROGRAM CRITICAL BASE FUNDING.—The 

term ‘‘competitive program critical base funding’’ means the 

aggregate amount of Federal funds made available for competitive programs for fiscal year 2006, as appropriate. 

(5) HISPANIC-SERVING AGRICULTURAL COLLEGES AND

UNIVERSITIES.—The term ‘‘Hispanic-serving agricultural colleges and universities’’ has the meaning given the term in 

section 1404 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3103). 

(6) NLGCA INSTITUTION.—The term ‘‘NLGCA Institution’’ 

has the meaning given the term in section 1404 of the National 

Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3103). 

(7) 1862 INSTITUTION; 1890 INSTITUTION; 1994 INSTITUTION.— 

The terms ‘‘1862 Institution’’, ‘‘1890 Institution’’, and ‘‘1994 

Institution’’ have the meanings given the terms in section 2 

of the Agricultural Research, Extension, and Education Reform 

Act of 1998 (7 U.S.C. 7601). 

SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY. 

Except as otherwise specifically authorized by law and notwithstanding any other provision of law, the Federal land and facilities 

at El Reno, Oklahoma, administered by the Secretary (as of the 

date of enactment of this Act) as the Grazinglands Research Laboratory, shall not at any time, in whole or in part, be declared to 

be excess or surplus Federal property under chapter 5 of subtitle 

I of title 40, United States Code, or otherwise be conveyed or 

transferred in whole or in part, for the 5-year period beginning 

on the date of enactment of this Act. 

SEC. 7503. FORT RENO SCIENCE PARK RESEARCH FACILITY. 

The Secretary may lease land to the University of Oklahoma 

at the Grazinglands Research Laboratory at El Reno, Oklahoma, 

on such terms and conditions as the University and the Secretary 

may agree in furtherance of cooperative research and existing easement arrangements. 

SEC. 7504. ROADMAP. 

(a) IN GENERAL.—Not later than 90 days after the date of 

enactment of this Act, the Secretary, acting through the Under 

Secretary of Research, Education, and Economics (referred to in 

this section as the ‘‘Under Secretary’’), shall commence preparation 

of a roadmap for agricultural research, education, and extension 

that— 
H. R. 2419—336 

(1) identifies current trends and constraints; 

(2) identifies major opportunities and gaps that no single 

entity within the Department of Agriculture would be able 

to address individually; 

(3) involves— 

(A) interested parties from the Federal Government 

and nongovernmental entities; and 

(B) the National Agricultural Research, Extension, 

Education, and Economics Advisory Board established 

under section 1408 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123); 

(4) incorporates roadmaps for agricultural research, education, and extension made publicly available by other Federal 

entities, agencies, or offices; and 

(5) describes recommended funding levels for areas of agricultural research, education, and extension, including— 

(A) competitive programs; 

(B) capacity and infrastructure programs, with attention to the future growth needs of— 

(i) small 1862 Institutions, 1890 Institutions, and 

1994 Institutions; 

(ii) Hispanic-serving agricultural colleges and 

universities; 

(iii) NLGCA Institutions; and 

(iv) colleges of veterinary medicine; and 

(C) intramural programs at agencies within the 

research, education, and economics mission area; and 

(6) describes how organizational changes enacted by this 

Act have impacted agricultural research, extension, and education across the Department of Agriculture, including minimization of unnecessary programmatic and administrative 

duplication. 

(b) REVIEWABILITY.—The roadmap described in this section 

shall not be subject to review by any officer or employee of the 

Federal Government other than the Secretary (or a designee of 

the Secretary). 

(c) ROADMAP IMPLEMENTATION AND REPORT.—Not later than 

1 year after the date on which the Secretary commences preparation 

of the roadmap under this section, the Secretary shall— 

(1) implement and use the roadmap to set the research, 

education, and extension agenda of the Department of Agriculture; and 

(2) make the roadmap available to the public. 

SEC. 7505. REVIEW OF PLAN OF WORK REQUIREMENTS. 

(a) REVIEW.—The Secretary shall work with university partners 

in extension and research to review and identify measures to 

streamline the submission, reporting under, and implementation 

of plan of work requirements, including those requirements under— 

(1) sections 1444(d) and 1445(c) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3221(d) and 3222(c), respectively); 

(2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); 

and 

(3) section 4 of the Smith-Lever Act (7 U.S.C. 344). 
H. R. 2419—337 

(b) CONSULTATION.—In carrying out the review and formulating 

and compiling the recommendations, the Secretary shall consult 

with the land-grant institutions. 

SEC. 7506. BUDGET SUBMISSION AND FUNDING. 

(a) DEFINITION OF COMPETITIVE PROGRAMS.—In this section, 

the term ‘‘competitive programs’’ includes only competitive programs 

for which annual appropriations are requested in the annual budget 

submission of the President. 

(b) BUDGET REQUEST.—The President shall submit to Congress, 

together with the annual budget submission of the President, a 

single budget line item reflecting the total amount requested by 

the President for funding for research, education, and extension 

activities of the Research, Education, and Economics mission area 

of the Department for that fiscal year and for the preceding 5 

fiscal years. 

(c) CAPACITY AND INFRASTRUCTURE PROGRAM REQUEST.—Of the 

funds requested for capacity and infrastructure programs in excess 

of the capacity and infrastructure program critical base funding 

level, budgetary emphasis should be placed on enhancing funding 

for— 

(1) 1890 Institutions; 

(2) 1994 Institutions; 

(3) NLGCA Institutions; 

(4) Hispanic-serving agricultural colleges and universities; 

and 

(5) small 1862 Institutions. 

(d) COMPETITIVE PROGRAM REQUEST.—Of the funds requested 

for competitive programs in excess of the competitive program critical base funding level, budgetary emphasis should be placed on— 

(1) enhancing funding for emerging problems; and 

(2) finding solutions for those problems. 

PART II—RESEARCH, EDUCATION, AND 

ECONOMICS 

SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS. 

(a) IN GENERAL.—Section 251 of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 6971) is amended— 

(1) in subsection (a), by inserting ‘‘(referred to in this section as the ‘Under Secretary’)’’ before the period at the end; 

(2) by striking subsections (b) through (d); 

(3) by redesignating subsection (e) as subsection (g); and 

(4) by inserting after subsection (a) the following: 

‘‘(b) CONFIRMATION REQUIRED.—The Under Secretary shall be 

appointed by the President, by and with the advice and consent 

of the Senate, from among distinguished scientists with specialized 

training or significant experience in agricultural research, education, and economics. 

‘‘(c) CHIEF SCIENTIST.—The Under Secretary shall— 

‘‘(1) hold the title of Chief Scientist of the Department; 

and 

‘‘(2) be responsible for the coordination of the research, 

education, and extension activities of the Department. 

‘‘(d) FUNCTIONS OF UNDER SECRETARY.— 

‘‘(1) PRINCIPAL FUNCTION.—The Secretary shall delegate 

to the Under Secretary those functions and duties under the 
H. R. 2419—338 

jurisdiction of the Department that relate to research, education, and economics. 

‘‘(2) SPECIFIC FUNCTIONS AND DUTIES.—The Under Secretary shall— 

‘‘(A) identify, address, and prioritize current and 

emerging agricultural research, education, and extension 

needs (including funding); 

‘‘(B) ensure that agricultural research, education, and 

extension programs are effectively coordinated and 

integrated— 

‘‘(i) across disciplines, agencies, and institutions; 

and 

‘‘(ii) among applicable participants, grantees, and 

beneficiaries; 

‘‘(C) promote the collaborative use of all agricultural 

research, education, and extension resources from the local, 

State, tribal, regional, national, and international levels 

to address priority needs; and 

‘‘(D) foster communication among agricultural research, 

education, and extension beneficiaries, including the public, 

to ensure the delivery of agricultural research, education, 

and extension knowledge. 

‘‘(3) ADDITIONAL FUNCTIONS.—The Under Secretary shall 

perform such other functions and duties as may be required 

by law or prescribed by the Secretary. 

‘‘(e) RESEARCH, EDUCATION, AND EXTENSION OFFICE.— ‘‘(1) ESTABLISHMENT.—The Under Secretary shall organize 

within the office of the Under Secretary 6 Divisions, to be 

known collectively as the ‘Research, Education, and Extension 

Office’, which shall coordinate the research programs and activities of the Department. 

‘‘(2) DIVISION DESIGNATIONS.—The Divisions within the 

Research, Education, and Extension Office shall be as follows: 

‘‘(A) Renewable energy, natural resources, and environment. 

‘‘(B) Food safety, nutrition, and health. 

‘‘(C) Plant health and production and plant products. 

‘‘(D) Animal health and production and animal products. 

‘‘(E) Agricultural systems and technology. 

‘‘(F) Agricultural economics and rural communities. 

‘‘(3) DIVISION CHIEFS.— 

‘‘(A) SELECTION.—The Under Secretary shall select a 

Division Chief for each Division using available personnel 

authority under title 5, United States Code, including— 

‘‘(i) by term, temporary, or other appointment, 

without regard to— 

‘‘(I) the provisions of title 5, United States 

Code, governing appointments in the competitive 

service; 

‘‘(II) the provisions of subchapter I of chapter 

35 of title 5, United States Code, relating to retention preference; and 

‘‘(III) the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States 

Code, relating to classification and General 

Schedule pay rates; 
H. R. 2419—339 

‘‘(ii) by detail, notwithstanding any Act making 

appropriations for the Department of Agriculture, 

whether enacted before, on, or after the date of enactment of this paragraph, requiring reimbursement for 

those details unless the appropriation Act specifically 

refers to this subsection and specifically includes these 

details; 

‘‘(iii) by reassignment or transfer from any other 

civil service position; and 

‘‘(iv) by an assignment under subchapter VI of 

chapter 33 of title 5, United States Code. 

‘‘(B) SELECTION GUIDELINES.—To the maximum extent 

practicable, the Under Secretary shall select Division 

Chiefs under subparagraph (A) in a manner that— 

‘‘(i) promotes leadership and professional development; 

‘‘(ii) enables personnel to interact with other agencies of the Department; and 

‘‘(iii) maximizes the ability of the Under Secretary 

to allow for rotations of Department personnel into 

the position of Division Chief. 

‘‘(C) TERM OF SERVICE.—Notwithstanding title 5, 

United States Code, the maximum length of service for 

an individual selected as a Division Chief under subparagraph (A) shall not exceed 4 years. 

‘‘(D) QUALIFICATIONS.—To be eligible for selection as 

a Division Chief, an individual shall have— 

‘‘(i) conducted exemplary research, education, or 

extension in the field of agriculture or forestry; and 

‘‘(ii) earned an advanced degree at an institution 

of higher education (as defined in section 101 of the 

Higher Education Act of 1965 (20 U.S.C. 1001)). 

‘‘(E) DUTIES OF DIVISION CHIEFS.—Except as otherwise 

provided in this Act, each Division Chief shall— 

‘‘(i) assist the Under Secretary in identifying and 

addressing emerging agricultural research, education, 

and extension needs; 

‘‘(ii) assist the Under Secretary in identifying and 

prioritizing Department-wide agricultural research, 

education, and extension needs, including funding; 

‘‘(iii) assess the strategic workforce needs of the 

research, education, and extension functions of the 

Department, and develop strategic workforce plans to 

ensure that existing and future workforce needs are 

met; 

‘‘(iv) communicate with research, education, and 

extension beneficiaries, including the public, and representatives of the research, education, and extension 

system, including the National Agricultural Research, 

Extension, Education, and Economics Advisory Board, 

to promote the benefits of agricultural research, education, and extension; 

‘‘(v) assist the Under Secretary in preparing and 

implementing the roadmap for agricultural research, 

education, and extension, as described in section 7504 

of the Food, Conservation, and Energy Act of 2008; 

and 
H. R. 2419—340 

‘‘(vi) perform such other duties as the Under Secretary may determine. 

‘‘(4) GENERAL ADMINISTRATION.— 

‘‘(A) FUNDING.—Notwithstanding any Act making 

appropriations for the Department of Agriculture, whether 

enacted before, on, or after the date of enactment of this 

paragraph unless the appropriation Act specifically refers 

to this subsection and specifically includes the administration of funds under this section, the Secretary may transfer 

funds made available to an agency in the research, education, and economics mission area to fund the costs of 

Division personnel. 

‘‘(B) LIMITATION.—To the maximum extent practicable— 

‘‘(i) the Under Secretary shall minimize the 

number of full-time equivalent positions in the Divisions; and 

‘‘(ii) at no time shall the aggregate number of 

staff for all Divisions exceed 30 full-time equivalent 

positions. 

‘‘(C) ROTATION OF PERSONNEL.—To the maximum 

extent practicable, and using the authority described in 

paragraph (3)(A), the Under Secretary shall rotate personnel among the Divisions, and between the Divisions 

and agencies of the Department, in a manner that— 

‘‘(i) promotes leadership and professional development; and 

‘‘(ii) enables personnel to interact with other agencies of the Department. 

‘‘(5) ORGANIZATION.—The Under Secretary shall integrate 

leadership functions of the national program staff of the 

research agencies into the Research, Education and Extension 

Office in such form as is required to ensure that administrative 

duplication does not occur. 

‘‘(f) NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.— 

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) ADVISORY BOARD.—The term ‘Advisory Board’ 

means the National Agricultural Research, Extension, Education, and Economics Advisory Board established under 

section 1408 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123). 

‘‘(B) APPLIED RESEARCH.—The term ‘applied research’ 

means research that includes expansion of the findings 

of fundamental research to uncover practical ways in which 

new knowledge can be advanced to benefit individuals and 

society. 

‘‘(C) CAPACITY AND INFRASTRUCTURE PROGRAM.—The 

term ‘capacity and infrastructure program’ means each of 

the following agricultural research, extension, education, 

and related programs for which the Secretary has administrative or other authority as of the day before the date 

of enactment of the Food, Conservation, and Energy Act 

of 2008: 

‘‘(i) Each program providing funding to any of the 

1994 Institutions under sections 533, 534(a), and 535 

of the Equity in Educational Land-Grant Status Act 

of 1994 (7 U.S.C. 301 note; Public Law 103–382). 
H. R. 2419—341 

‘‘(ii) The program established under section 536 

of the Equity in Educational Land-Grant Status Act 

of 1994 (7 U.S.C. 301 note; Public Law 103–382) providing research grants for 1994 Institutions. 

‘‘(iii) Each program established under subsections 

(b) and (c) of section 3 of the Smith-Lever Act (7 

U.S.C. 343). 

‘‘(iv) Each program established under the Hatch 

Act of 1887 (7 U.S.C. 361a et seq.). 

‘‘(v) Each program established under section 

1417(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3152(b)). 

‘‘(vi) The animal health and disease research program established under subtitle E of the National Agricultural Research, Extension, and Teaching Policy Act 

of 1977 (7 U.S.C. 3191 et seq.). 

‘‘(vii) Each extension program available to 1890 

Institutions established under section 1444 of the 

National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3221). 

‘‘(viii) The program established under section 1445 

of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3222). 

‘‘(ix) The program providing grants to upgrade 

agricultural and food sciences facilities at 1890 Institutions established under section 1447 of the National 

Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3222b). 

‘‘(x) The program providing distance education 

grants for insular areas established under section 1490 

of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3362). 

‘‘(xi) The program providing resident instruction 

grants for insular areas established under section 1491 

of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3363). 

‘‘(xii) Each research and development and related 

program established under Public Law 87–788 (commonly known as the ‘McIntire-Stennis Cooperative Forestry Act’) (16 U.S.C. 582a et seq.). 

‘‘(xiii) Each program established under the Renewable Resources Extension Act of 1978 (16 U.S.C. 1671 

et seq.). 

‘‘(xiv) Each program providing funding to Hispanicserving agricultural colleges and universities under 

section 1456 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977. 

‘‘(xv) The program providing capacity grants to 

NLGCA Institutions under section 1473F of the 

National Agricultural Research, Extension, and 

Teaching Policy Act of 1977. 

‘‘(xvi) Other programs that are capacity and infrastructure programs, as determined by the Secretary. 

‘‘(D) COMPETITIVE PROGRAM.—The term ‘competitive 

program’ means each of the following agricultural research, 

extension, education, and related programs for which the 
H. R. 2419—342 

Secretary has administrative or other authority as of the 

day before the date of enactment of the Food, Conservation, 

and Energy Act of 2008: 

‘‘(i) The Agriculture and Food Research Initiative 

established under section 2(b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 

450i(b)). 

‘‘(ii) The program providing competitive grants for 

risk management education established under section 

524(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 

1524(a)(3)). 

‘‘(iii) The program providing community food 

project competitive grants established under section 

25 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2034). 

‘‘(iv) The program providing grants for beginning 

farmer and rancher development established under section 7405 of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 3319f). 

‘‘(v) The program providing grants under section 

1417(j) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(j)). 

‘‘(vi) The program providing grants for Hispanicserving institutions established under section 1455 of 

the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3241). 

‘‘(vii) The program providing competitive grants 

for international agricultural science and education 

programs under section 1459A of the National Agricultural Research, Extension, and Teaching Policy Act 

of 1977 (7 U.S.C. 3292b). 

‘‘(viii) The research and extension projects carried 

out under section 1621 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811). 

‘‘(ix) The organic agriculture research and extension initiative established under section 1672B of the 

Food, Agriculture, Conservation, and Trade Act of 1990 

(7 U.S.C. 5925b). 

‘‘(x) The specialty crop research initiative under 

section 412 of the Agricultural Research, Extension, 

and Education Reform Act of 1998. 

‘‘(xi) The administration and management of the 

Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative carried out 

under section 1672C of the Food, Agriculture, Conservation, and Trade Act of 1990. 

‘‘(xii) The research, extension, and education programs authorized by section 407 of the Agricultural 

Research, Extension, and Education Reform Act of 

1998 (7 U.S.C. 7627) relating to the competitiveness, 

viability and sustainability of small- and medium-sized 

dairy, livestock, and poultry operations. 

‘‘(xiii) Other programs that are competitive programs, as determined by the Secretary. 

‘‘(E) DIRECTOR.—The term ‘Director’ means the 

Director of the Institute. 
H. R. 2419—343 

‘‘(F) FUNDAMENTAL RESEARCH.—The term ‘fundamental 

research’ means research that— 

‘‘(i) increases knowledge or understanding of the 

fundamental aspects of phenomena and has the potential for broad application; and 

‘‘(ii) has an effect on agriculture, food, nutrition, 

or the environment. 

‘‘(G) INSTITUTE.—The term ‘Institute’ means the 

National Institute of Food and Agriculture established by 

paragraph (2)(A). 

‘‘(2) ESTABLISHMENT OF NATIONAL INSTITUTE OF FOOD AND

AGRICULTURE.— 

‘‘(A) ESTABLISHMENT.—The Secretary shall establish 

within the Department an agency to be known as the 

‘National Institute of Food and Agriculture’. 

‘‘(B) TRANSFER OF AUTHORITIES.—The Secretary shall 

transfer to the Institute, effective not later than October 

1, 2009, the authorities (including all budget authorities, 

available appropriations, and personnel), duties, obligations, and related legal and administrative functions prescribed by law or otherwise granted to the Secretary, the 

Department, or any other agency or official of the Department under— 

‘‘(i) the capacity and infrastructure programs; 

‘‘(ii) the competitive programs; 

‘‘(iii) the research, education, economic, cooperative 

State research programs, cooperative extension and 

education programs, international programs, and other 

functions and authorities delegated by the Under Secretary to the Administrator of the Cooperative State 

Research, Education, and Extension Service pursuant 

to section 2.66 of title 7, Code of Federal Regulations 

(or successor regulations); and 

‘‘(iv) any and all other authorities administered 

by the Administrator of the Cooperative State 

Research, Education, and Extension Service. 

‘‘(3) DIRECTOR.— 

‘‘(A) IN GENERAL.—The Institute shall be headed by 

a Director, who shall be an individual who is— 

‘‘(i) a distinguished scientist; and 

‘‘(ii) appointed by the President. 

‘‘(B) SUPERVISION.—The Director shall report directly 

to the Secretary, or the designee of the Secretary. 

‘‘(C) FUNCTIONS OF THE DIRECTOR.—The Director 

shall— 

‘‘(i) serve for a 6-year term, subject to reappointment for an additional 6-year term; 

‘‘(ii) periodically report to the Secretary, or the 

designee of the Secretary, with respect to activities 

carried out by the Institute; and 

‘‘(iii) consult regularly with the Secretary, or the 

designee of the Secretary, to ensure, to the maximum 

extent practicable, that— 

‘‘(I) research of the Institute is relevant to 

agriculture in the United States and otherwise 

serves the national interest; and 
H. R. 2419—344 

‘‘(II) the research of the Institute supplements 

and enhances, and does not supplant, research 

conducted or funded by other Federal agencies. 

‘‘(D) COMPENSATION.—The Director shall receive basic 

pay at a rate not to exceed the maximum amount of compensation payable to a member of the Senior Executive 

Service under subsection (b) of section 5382 of title 5, 

United States Code, except that the certification requirement in that subsection shall not apply to the compensation 

of the Director. 

‘‘(E) AUTHORITY AND RESPONSIBILITIES OF DIRECTOR.— 

Except as otherwise specifically provided in this subsection, 

the Director shall— 

‘‘(i) exercise all of the authority provided to the 

Institute by this subsection; 

‘‘(ii) formulate and administer programs in accordance with policies adopted by the Institute, in coordination with the Under Secretary; 

‘‘(iii) establish offices within the Institute; 

‘‘(iv) establish procedures for the provision and 

administration of grants by the Institute; and 

‘‘(v) consult regularly with the Advisory Board. 

‘‘(4) REGULATIONS.—The Institute shall have such authority 

as is necessary to carry out this subsection, including the 

authority to promulgate such regulations as the Institute considers to be necessary for governance of operations, organization, and personnel. 

‘‘(5) ADMINISTRATION.— ‘‘(A) IN GENERAL.—The Director shall organize offices 

and functions within the Institute to administer fundamental and applied research and extension and education 

programs. 

‘‘(B) RESEARCH PRIORITIES.—The Director shall ensure 

the research priorities established by the Under Secretary 

through the Research, Education and Extension Office are 

carried out by the offices and functions of the Institute, 

where applicable. 

‘‘(C) FUNDAMENTAL AND APPLIED RESEARCH.—The 

Director shall— 

‘‘(i) determine an appropriate balance between fundamental and applied research programs and functions 

to ensure future research needs are met; and 

‘‘(ii) designate staff, as appropriate, to assist in 

carrying out this subparagraph. 

‘‘(D) COMPETITIVELY FUNDED AWARDS.—The Director 

shall— 

‘‘(i) promote the use and growth of grants awarded 

through a competitive process; and 

‘‘(ii) designate staff, as appropriate, to assist in 

carrying out this subparagraph. 

‘‘(E) COORDINATION.—The Director shall ensure that 

the offices and functions established under subparagraph 

(A) are effectively coordinated for maximum efficiency. 

‘‘(6) FUNDING.— ‘‘(A) IN GENERAL.—In addition to funds otherwise 

appropriated to carry out each program administered by 

the Institute, there are authorized to be appropriated such 
H. R. 2419—345 

sums as are necessary to carry out this subsection for 

each fiscal year. 

‘‘(B) ALLOCATION.—Funding made available under 

subparagraph (A) shall be allocated according to recommendations contained in the roadmap described in section 7504 of the Food, Conservation, and Energy Act of 

2008.’’. 

(b) FUNCTIONS.—Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended— 

(1) in paragraph (4), by striking ‘‘or’’ at the end; 

(2) in paragraph (5), by striking the period at the end 

and inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(6) the authority of the Secretary to establish in the 

Department, under section 251— 

‘‘(A) the position of Under Secretary of Agriculture 

for Research, Education, and Economics; 

‘‘(B) the Research, Education, and Extension Office; 

and 

‘‘(C) the National Institute of Food and Agriculture.’’. 

(c) CONFORMING AMENDMENTS.—The following conforming 

amendments shall take effect on October 1, 2009: 

(1) Section 522(d)(2) of the Federal Crop Insurance Act 

(7 U.S.C. 1522(d)(2)) is amended by striking ‘‘the Cooperative 

State Research, Education, and Extension Service’’ and 

inserting ‘‘the National Institute of Food and Agriculture’’. 

(2) Section 524(a) of the Federal Crop Insurance Act (7 

U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and 

(3)(A) by striking ‘‘the Cooperative State Research, Education, 

and Extension Service’’ each place it appears and inserting 

‘‘the National Institute of Food and Agriculture’’. 

(3) Section 306(a)(11)(C) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended 

by striking ‘‘the Cooperative State Research, Education, and 

Extension Service’’ and inserting ‘‘the National Institute of 

Food and Agriculture’’. 

(4) Section 5(b)(2)(E) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102–554) 

is amended by striking ‘‘Cooperative Extension Service’’ and 

inserting ‘‘National Institute of Food and Agriculture’’. 

(5) Section 11(f)(1) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2020(f)(1)) is amended by striking ‘‘Cooperative Extension Service’’ and inserting ‘‘National Institute of Food and 

Agriculture’’. 

(6) Section 502(h) of the Rural Development Act of 1972 

(7 U.S.C. 2662(h)) is amended— 

(A) in paragraph (1), by striking ‘‘Extension Service’’ 

and inserting ‘‘National Institute of Food and Agriculture’’; 

and 

(B) in paragraph (4), by striking ‘‘Extension Service 

staff’’ and inserting ‘‘National Institute of Food and Agriculture staff’’. 

(7) Section 7404(b)(1)(B) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107– 

171) is amended by striking clause (vi) and inserting the following: 
H. R. 2419—346 

‘‘(vi) the National Institute of Food and Agriculture.’’. 

(8) Section 1408(b)(4) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3123(b)(4)) is amended by striking ‘‘the Administrator of the 

Cooperative State Research, Education, and Extension Service’’ 

and inserting ‘‘the Director of the National Institute of Food 

and Agriculture’’. 

(9) Section 2381(a) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by 

striking ‘‘Extension Service’’ and inserting ‘‘National Institute 

of Food and Agriculture’’. 

(10) The National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 is amended— 

(A) in section 1424A(b) (7 U.S.C. 3174a(b)), by striking 

‘‘the Cooperative State Research, Education, and Extension 

Service’’ and inserting ‘‘the National Institute of Food and 

Agriculture’’; and 

(B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), by 

striking ‘‘the Cooperative State Research, Education, and 

Extension Service’’ and inserting ‘‘the National Institute 

of Food and Agriculture’’. 

(11) Section 1587(a) of the Food Security Act of 1985 (7 

U.S.C. 3175d(a)) is amended by striking ‘‘Extension Service’’ 

each place it appears and inserting ‘‘National Institute of Food 

and Agriculture’’. 

(12) Section 1444(b)(2)(A) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3221(b)(2)(A)) is amended by striking ‘‘Extension Service’’ and 

inserting ‘‘National Institute of Food and Agriculture’’. 

(13) Section 1473D(d) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3319d(d)) is amended by striking ‘‘the Cooperative State 

Research Service, the Extension Service’’ and inserting ‘‘the 

National Institute of Food and Agriculture’’. 

(14) Section 1499(c) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by striking 

‘‘the Cooperative State Research Service’’ and all that follows 

through ‘‘extension services;’’ and inserting ‘‘the National 

Institute of Food and Agriculture, in conjunction with the 

system of State agricultural experiment stations and State 

and county cooperative extension services; the Economic 

Research Service;’’. 

(15) Section 1622 of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5812) is amended— 

(A) in subsection (a)(1), by striking ‘‘the Cooperative 

State Research Service in close cooperation with the Extension Service’’ and inserting ‘‘the National Institute of Food 

and Agriculture’’; 

(B) in subsection (b)(1)— 

(i) by striking subparagraphs (B) and (C) and 

inserting the following: 

‘‘(B) the National Institute of Food and Agriculture;’’; 

and 

(ii) by redesignating subparagraphs (D) through 

(L) as subparagraphs (C) through (K), respectively. 
H. R. 2419—347 

(16) Section 1627(d) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5821(d)) is amended by striking 

‘‘Extension Service’’ and inserting ‘‘National Institute of Food 

and Agriculture’’. 

(17) Section 1629 of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5832) is amended— 

(A) in subsection (b), in the first sentence, by striking 

‘‘the Extension Service’’ and inserting ‘‘the National 

Institute of Food and Agriculture’’; and 

(B) in subsection (h), by striking ‘‘Extension Service’’ 

and inserting ‘‘National Institute of Food and Agriculture’’. 

(18) Section 1638(b) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5852(b)) is amended— 

(A) in paragraph (3), by striking ‘‘Cooperative State 

Research Service’’ and inserting ‘‘National Institute of Food 

and Agriculture’’; and 

(B) in paragraph (5), by striking ‘‘Cooperative State 

Research Service’’ and inserting ‘‘National Institute of Food 

and Agriculture’’. 

(19) Section 1640(a)(2) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is amended 

by striking ‘‘the Administrator of the Extension Service, the 

Administrator of the Cooperative State Research Service’’ and 

inserting ‘‘the Director of the National Institute of Food and 

Agriculture’’. 

(20) Section 1641(a) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5855(a)) is amended— 

(A) in paragraph (2), by striking ‘‘Cooperative State 

Research Service’’ and inserting ‘‘National Institute of Food 

and Agriculture’’; and 

(B) in paragraph (4,) by striking ‘‘Extension Service’’ 

and inserting ‘‘National Institute of Food and Agriculture’’. 

(21) Section 1668(b) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5921(b)) is amended by striking 

‘‘Cooperative State Research, Education, and Extension Service’’ 

and inserting ‘‘National Institute of Food and Agriculture’’. 

(22) Section 1670(a)(4) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is amended 

by striking ‘‘the Administrator of the Cooperative State 

Research, Education, and Extension Service’’ and inserting ‘‘the 

Director of the National Institute of Food and Agriculture’’. 

(23) Section 1677(a) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5930(a)) is amended by striking 

‘‘Extension Service’’ and inserting ‘‘National Institute of Food 

and Agriculture’’. 

(24) Section 2122(b)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is amended 

by striking ‘‘Extension Service’’ and inserting ‘‘National 

Institute of Food and Agriculture’’. 

(25) Section 2371 of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 6601) is amended— 

(A) in subsection (a), by striking ‘‘Extension Service’’ 

and inserting ‘‘National Institute of Food and Agriculture’’; 

and 

(B) in subsection (c)(3), by striking ‘‘Service’’ and 

inserting ‘‘System’’. 
H. R. 2419—348 

(26) Section 2377(a) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 6615(a)) is amended by striking 

‘‘Extension Service’’ and inserting ‘‘National Institute of Food 

and Agriculture’’. 

(27) Section 212(a)(2)(A) of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is amended 

by striking ‘‘251(d),’’ and inserting ‘‘251(f),’’. 

(28) Section 537 of the Federal Agriculture Improvement 

and Reform Act of 1996 (7 U.S.C. 7446) is amended in each 

of subsections (a)(2) and (b)(3)(B)(i) by striking ‘‘Cooperative 

State Research, Education, and Extension Service’’ and 

inserting ‘‘cooperative extension’’. 

(29) Section 101(b)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7611(b)(2)) 

is amended by striking ‘‘Cooperative State Research, Education, 

and Extension Service’’ and inserting ‘‘National Institute of 

Food and Agriculture’’. 

(30) Section 103(a) of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7613(a)) is 

amended— 

(A) in the subsection heading, by striking ‘‘Cooperative 

State Research, Education, and Extension Service’’ and 

inserting ‘‘National Institute of Food and Agriculture’’; and 

(B) in each of paragraphs (1) and (2)(A), by striking 

‘‘the Cooperative State Research, Education, and Extension 

Service’’ and inserting ‘‘the National Institute of Food and 

Agriculture’’. 

(31) Section 407(c) of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7627(c)) is amended 

by striking ‘‘the Cooperative State Research, Education, and 

Extension Service’’ and inserting ‘‘the National Institute of 

Food and Agriculture’’. 

(32) Section 410(a) of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7630(a)) is 

amended by striking ‘‘the Administrator of the Cooperative 

State Research, Education, and Extension Service’’ and 

inserting ‘‘the Director of the National Institute of Food and 

Agriculture’’. 

(33) Section 307(g)(5) of the Agricultural Risk Protection 

Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking 

‘‘Administrator of the Cooperative State Research, Education, 

and Extension Service’’ and inserting ‘‘Director of the National 

Institute of Food and Agriculture’’. 

(34) Section 5(a) of the Renewable Resources Extension 

Act of 1978 (16 U.S.C. 1674a(a)) is amended by striking ‘‘Extension Service’’ and inserting ‘‘National Institute of Food and 

Agriculture’’. 

(35) Section 6(b) of the Cooperative Forestry Assistance 

Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ‘‘the 

Cooperative State Research, Education, and Extension Service, 

may provide technical, financial, and related assistance to State 

foresters, equivalent State officials, or Cooperative Extension 

officials’’ and inserting ‘‘the National Institute of Food and 

Agriculture, may provide technical, financial, and related assistance to State foresters, equivalent State officials, or cooperative 

extension officials’’. 
H. R. 2419—349 

(36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry 

Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is amended 

by striking ‘‘Extension Service’’ and inserting ‘‘National 

Institute of Food and Agriculture’’. 

(37) Section 19(b)(1)(B)(i) of the Cooperative Forestry 

Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is amended 

by striking ‘‘Extension Service’’ and inserting ‘‘National 

Institute of Food and Agriculture’’. 

(38) Section 1261(c)(4) of the Food Security Act of 1985 

(16 U.S.C. 3861(c)(4)) is amended by striking ‘‘Extension 

Service’’ and inserting ‘‘National Institute of Food and Agriculture’’. 

(39) Section 105(a) of the Africa: Seeds of Hope Act of 

1998 (22 U.S.C. 2293 note; Public Law 105–385) is amended 

by striking ‘‘the Cooperative State, Research, Education, and 

Extension Service (CSREES)’’ and inserting ‘‘the National 

Institute of Food and Agriculture’’. 

(40) Section 307(a)(4) of the National Aeronautic and Space 

Administration Authorization Act of 2005 (42 U.S.C. 

16657(a)(4)) is amended by striking subparagraph (B) and 

inserting the following: 

‘‘(B) the program and structure of, peer review process 

of, management of conflicts of interest by, compensation 

of reviewers of, and the effects of compensation on reviewer 

efficiency and quality within, the National Institute of Food 

and Agriculture of the Department of Agriculture;’’. 

PART III—NEW GRANT AND RESEARCH 

PROGRAMS 

SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF 

ANTIBIOTIC-RESISTANT BACTERIA. 

(a) IN GENERAL.—The Secretary shall provide research and 

education grants, on a competitive basis— 

(1) to study the development of antibiotic-resistant bacteria, 

including— 

(A) movement of antibiotic-resistant bacteria into 

groundwater and surface water; and 

(B) the effect on antibiotic resistance from various drug 

use regimens; and 

(2) to study and ensure the judicious use of antibiotics 

in veterinary and human medicine, including— 

(A) methods and practices of animal husbandry; 

(B) safe and effective alternatives to antibiotics; 

(C) the development of better veterinary diagnostics 

to improve decisionmaking; and 

(D) the identification of conditions or factors that affect 

antibiotic use on farms. 

(b) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) of 

subsection (b) of the Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i) shall apply with respect to the making 

of grants under this section. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2008 through 2012. 
H. R. 2419—350 

SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK. 

(a) IN GENERAL.—The Secretary, in coordination with the Secretary of Health and Human Services, shall make competitive 

grants to support cooperative programs between State cooperative 

extension services and nonprofit organizations to establish a Farm 

and Ranch Stress Assistance Network that provides stress assistance programs to individuals who are engaged in farming, ranching, 

and other agriculture-related occupations. 

(b) ELIGIBLE PROGRAMS.—Grants awarded under subsection (a) 

may be used to initiate, expand, or sustain programs that provide 

professional agricultural behavioral health counseling and referral 

for other forms of assistance as necessary through— 

(1) farm telephone helplines and websites; 

(2) community education; 

(3) support groups; 

(4) outreach services and activities; and 

(5) home delivery of assistance, in a case in which a farm 

resident is homebound. 

(c) EXTENSION SERVICES.—Grants shall be awarded under this 

subsection directly to State cooperative extension services to enable 

the State cooperative extension services to enter into contracts, 

on a multiyear basis, with nonprofit, community-based, directservice organizations to initiate, expand, or sustain cooperative 

programs described in subsections (a) and (b). 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2008 through 2012. 

SEC. 7523. SEED DISTRIBUTION. 

(a) IN GENERAL.—The Secretary shall make competitive grants 

to eligible entities to carry out a seed distribution program to 

administer and maintain the distribution of vegetable seeds donated 

by commercial seed companies. 

(b) PURPOSES.—The purposes of this program include— 

(1) the distribution of seeds donated by commercial seed 

companies free-of-charge to appropriate— 

(A) individuals; 

(B) groups; 

(C) institutions; 

(D) governmental and nongovernmental organizations; 

and 

(E) such other entities as the Secretary may designate; 

(2) distribution of seeds to underserved communities, such 

as communities that experience— 

(A) limited access to affordable fresh vegetables; 

(B) a high rate of hunger or food insecurity; or 

(C) severe or persistent poverty. 

(c) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) of 

subsection (b) of the Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i) shall apply with respect to the making 

of grants under this section. 

(d) SELECTION.—An eligible entity selected to receive a grant 

under subsection (a) shall have— 

(1) expertise regarding the distribution of vegetable seeds 

donated by commercial seed companies; and 

(2) the ability to achieve the purpose of the seed distribution program. 
H. R. 2419—351 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2008 through 2012. 

SEC. 7524. LIVE VIRUS FOOT AND MOUTH DISEASE RESEARCH. 

(a) IN GENERAL.—The Secretary shall issue a permit required 

under section 12 of the Act of May 29, 1884 (21 U.S.C. 113a) 

to the Secretary of Homeland Security for work on the live virus 

of foot and mouth disease at any facility that is a successor to 

the Plum Island Animal Disease Center and charged with 

researching high-consequence biological threats involving zoonotic 

and foreign animal diseases (referred to in this section as the 

‘‘successor facility’’). 

(b) LIMITATION TO SINGLE FACILITY.—Not more than 1 facility 

shall be issued a permit under subsection (a). 

(c) LIMITATION ON VALIDITY.—The permit issued under this 

section shall be valid unless the Secretary determines that the 

study of live foot and mouth disease virus at the successor facility 

is not being carried out in accordance with the regulations promulgated by the Secretary pursuant to the Agricultural Bioterrorism 

Protection Act of 2002 (7 U.S.C. 8401 et seq.). 

(d) AUTHORITY.—The suspension, revocation, or other impairment of the permit issued under this section— 

(1) shall be made by the Secretary; and 

(2) is a nondelegable function. 

SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM. 

(a) IN GENERAL.—The Secretary shall establish within the 

Department a natural products research program. 

(b) DUTIES.—In carrying out the program established under 

subsection (a), the Secretary shall coordinate research relating to 

natural products, including— 

(1) research to improve human health and agricultural 

productivity through the discovery, development, and commercialization of products and agrichemicals from bioactive natural 

products, including products from plant, marine, and microbial 

sources; 

(2) research to characterize the botanical sources, production, chemistry, and biological properties of plant-derived natural products; and 

(3) other research priorities identified by the Secretary. 

(c) PEER AND MERIT REVIEW.—The Secretary shall— 

(1) determine the relevance and merit of research under 

this section through a system of peer review established by 

the Secretary pursuant to section 103 of the Agricultural 

Research, Extension, and Education Reform Act of 1998 (7 

U.S.C. 7613); and 

(2) approve funding for research on the basis of merit, 

quality, and relevance to advancing the purposes of this section. 

(d) BUILDINGS AND FACILITIES.—Funds made available under 

this section shall not be used for the construction of a new building 

or facility or the acquisition, expansion, remodeling, or alteration 

of an existing building or facility (including site grading and 

improvement and architect fees). 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section such sums as are 

necessary for each of fiscal years 2008 through 2012. 
H. R. 2419—352 

SEC. 7526. SUN GRANT PROGRAM. 

(a) ESTABLISHMENT.—The Secretary shall establish and carry 

out a program to provide grants to the sun grant centers and 

subcenter specified in subsection (b)— 

(1) to enhance national energy security through the 

development, distribution, and implementation of biobased 

energy technologies; 

(2) to promote diversification in, and the environmental 

sustainability of, agricultural production in the United States 

through biobased energy and product technologies; 

(3) to promote economic diversification in rural areas of 

the United States through biobased energy and product technologies; and 

(4) to enhance the efficiency of bioenergy and biomass 

research and development programs through improved 

coordination and collaboration among— 

(A) the Department of Agriculture; 

(B) the Department of Energy; and 

(C) land-grant colleges and universities. 

(b) GRANTS.— 

(1) IN GENERAL.—The Secretary shall use amounts made 

available under subsection (g) to provide grants to each of 

the following: 

(A) NORTH-CENTRAL CENTER.—A north-central sun 

grant center at South Dakota State University for the 

region composed of the States of Illinois, Indiana, Iowa, 

Minnesota, Montana, Nebraska, North Dakota, South 

Dakota, Wisconsin, and Wyoming. 

(B) SOUTHEASTERN CENTER.—A southeastern sun grant 

center at the University of Tennessee at Knoxville for 

the region composed of— 

(i) the States of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, 

Tennessee, and Virginia; 

(ii) the Commonwealth of Puerto Rico; and 

(iii) the United States Virgin Islands. 

(C) SOUTH-CENTRAL CENTER.—A south-central sun 

grant center at Oklahoma State University for the region 

composed of the States of Arkansas, Colorado, Kansas, 

Louisiana, Missouri, New Mexico, Oklahoma, and Texas. 

(D) WESTERN CENTER.—A western sun grant center 

at Oregon State University for the region composed of— 

(i) the States of Alaska, Arizona, California, 

Hawaii, Idaho, Nevada, Oregon, Utah, and Washington; and 

(ii) insular areas (as defined in section 1404 of 

the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103 (other than 

the insular areas referred to in clauses (ii) and (iii) 

of subparagraph (B))). 

(E) NORTHEASTERN CENTER.—A northeastern sun grant 

center at Cornell University for the region composed of 

the States of Connecticut, Delaware, Massachusetts, Maryland, Maine, Michigan, New Hampshire, New Jersey, New 

York, Ohio, Pennsylvania, Rhode Island, Vermont, and 

West Virginia. 
H. R. 2419—353 

(F) WESTERN INSULAR PACIFIC SUBCENTER.—A western 

insular Pacific sun grant subcenter at the University of 

Hawaii for the region of Alaska, Hawaii, Guam, American 

Samoa, the Commonwealth of the Northern Mariana 

Islands, the Federated States of Micronesia, the Republic 

of the Marshall Islands, and the Republic of Palau. 

(2) MANNER OF DISTRIBUTION.— 

(A) CENTERS.—In providing any funds made available 

under subsection (g), the Secretary shall distribute the 

grants in equal amounts to the sun grant centers described 

in subparagraphs (A) through (E) of paragraph (1). 

(B) SUBCENTER.—The sun grant center described in 

paragraph (1)(D) shall allocate a portion of the funds 

received under paragraph (1) to the subcenter described 

in paragraph (1)(F) pursuant to guidance issued by the 

Secretary. 

(3) FAILURE TO COMPLY WITH REQUIREMENTS.—If the Secretary finds on the basis of a review of the annual report 

required under subsection (f) or on the basis of an audit of 

a sun grant center or subcenter conducted by the Secretary 

that the center or subcenter has not complied with the requirements of this section, the sun grant center or subcenter shall 

be ineligible to receive further grants under this section for 

such period of time as may be prescribed by the Secretary. 

(c) USE OF FUNDS.— (1) COMPETITIVE GRANTS.— (A) IN GENERAL.—A sun grant center or subcenter shall 

use 75 percent of the funds described in subsection (b) 

to provide competitive grants to entities that are— 

(i) eligible to receive grants under subsection (b)(7) 

of the Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i(b)(7)); and 

(ii) located in the region covered by the sun grant 

center or subcenter. 

(B) ACTIVITIES.—Grants described in subparagraph (A) 

shall be used by the grant recipient to conduct, in a manner 

consistent with the purposes described in subsection (a), 

multi-institutional and multistate— 

(i) research, extension, and education programs 

on technology development; and 

(ii) integrated research, extension, and education 

programs on technology implementation. 

(C) FUNDING ALLOCATION.—Of the amount of funds 

that is used to provide grants under subparagraph (A), 

the sun grant center or subcenter shall use— 

(i) not less than 30 percent of the funds to carry 

out the programs described in subparagraph (B)(i); and 

(ii) not less than 30 percent of the funds to carry 

out the programs described in subparagraph (B)(ii). 

(D) ADMINISTRATION.— 

(i) PEER AND MERIT REVIEW.—In making grants 

under this paragraph, a sun grant center or subcenter 

shall— 

(I) seek and accept proposals for grants; 

(II) determine the relevance and merit of proposals through a system of peer review similar 

to that established by the Secretary pursuant to 
H. R. 2419—354 

section 103 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 

7613); and 

(III) award grants on the basis of merit, 

quality, and relevance to advancing the purposes 

of this section. 

(ii) PRIORITY.—A sun grant center or subcenter 

shall give a higher priority to programs that are consistent with the plan approved by the Secretary under 

subsection (d). 

(iii) TERM.—A grant awarded by a sun grant center 

or subcenter shall have a term that does not exceed 

5 years. 

(iv) MATCHING FUNDS REQUIRED.— (I) IN GENERAL.—Except as provided in subclauses (II) and (III), as a condition of receiving 

a grant under this paragraph, the sun grant center 

or subcenter shall require that not less than 20 

percent of the cost of an activity described in 

subparagraph (B) be matched with funds, 

including in-kind contributions, from a non-Federal source. 

(II) EXCLUSION.—Subclause (I) shall not apply 

to fundamental research (as defined in subsection 

(f)(1) of section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) 

(as added by section 7511(a)(4)). 

(III) REDUCTION.—The sun grant center or 

subcenter may reduce or eliminate the requirement for non-Federal funds under subclause (I) 

for applied research (as defined in subsection (f)(1) 

of section 251 of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 6971) (as 

added by section 7511(a)(4)) if the sun grant center 

or subcenter determines that the reduction is necessary and appropriate pursuant to guidance 

issued by the Secretary. 

(v) BUILDINGS AND FACILITIES.—Funds made available for grants shall not be used for the construction 

of a new building or facility or the acquisition, expansion, remodeling, or alteration of an existing building 

or facility (including site grading and improvement 

and architect fees). 

(vi) LIMITATION ON INDIRECT COSTS.—A sun grant 

center or subcenter may not recover the indirect costs 

of making grants under subparagraph (A). 

(2) ADMINISTRATIVE EXPENSES.—A sun grant center or subcenter may use up to 4 percent of the funds described in 

subsection (b) to pay administrative expenses incurred in carrying out paragraph (1). 

(3) RESEARCH, EXTENSION AND EDUCATIONAL ACTIVITIES.— 

The sun grant centers and subcenter shall use the remainder 

of the funds described in subsection (b) to conduct, in a manner 

consistent with the purposes described in subsection (a), multiinstitutional and multistate— 

(A) research, extension, and educational programs on 

technology development; and 
H. R. 2419—355 

(B) integrated research, extension, and educational programs on technology implementation. 

(d) PLAN FOR RESEARCH ACTIVITIES TO BE FUNDED.— 

(1) IN GENERAL.—Subject to the availability of funds under 

subsection (g), and in cooperation with land-grant colleges and 

universities and private industry in accordance with paragraph 

(2), the sun grant centers and subcenter shall jointly develop 

and submit to the Secretary for approval a plan for addressing 

the bioenergy, biomass, and gasification research priorities of 

the Department of Agriculture and the Department of Energy 

at the State and regional levels. 

(2) GASIFICATION COORDINATION.—With respect to gasification research activity, the sun grant centers and subcenter 

shall coordinate planning with land-grant colleges and universities in their respective regions that have ongoing research 

activities in that area. 

(3) FUNDING.—Funds described in subsection (c)(2) shall 

be available to carry out planning coordination under paragraph 

(1). 

(4) USE OF PLAN.—The sun grant centers and subcenter 

shall use the plan described in paragraph (1) in making grants 

under subsection (c)(1). 

(e) GRANT INFORMATION ANALYSIS CENTER.—The sun grant 

centers and subcenter shall maintain a Sun Grant Information 

Analysis Center at the sun grant center specified in subsection 

(b)(1)(A) to provide the sun grant centers and subcenter with analysis and data management support. 

(f) ANNUAL REPORTS.—Not later than 90 days after the end 

of each fiscal year, a sun grant center or subcenter receiving a 

grant under this section shall submit to the Secretary a report 

that describes the policies, priorities, and operations of the program 

carried out by the center or subcenter during the fiscal year, 

including— 

(1) the results of all peer and merit review procedures 

conducted pursuant to subsection (c)(1)(D)(i); and 

(2) a description of progress made in facilitating the priorities described in subsection (d)(1). 

(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $75,000,000 for each 

of fiscal years 2008 through 2012, of which not more than $4,000,000 

for each fiscal year shall be made available to carry out subsection 

(e). 

SEC. 7527. STUDY AND REPORT ON FOOD DESERTS. 

(a) DEFINITION OF FOOD DESERT.—In this section, the term 

‘‘food desert’’ means an area in the United States with limited 

access to affordable and nutritious food, particularly such an area 

composed of predominantly lower-income neighborhoods and 

communities. 

(b) STUDY AND REPORT.—The Secretary shall carry out a study 

of, and prepare a report on, food deserts. 

(c) CONTENTS.—The study and report shall— 

(1) assess the incidence and prevalence of food deserts; 

(2) identify— 

(A) characteristics and factors causing and influencing 

food deserts; and 
H. R. 2419—356 

(B) the effect on local populations of limited access 

to affordable and nutritious food; and 

(3) provide recommendations for addressing the causes and 

effects of food deserts through measures that include— 

(A) community and economic development initiatives; 

(B) incentives for retail food market development, 

including supermarkets, small grocery stores, and farmers’ 

markets; and 

(C) improvements to Federal food assistance and nutrition education programs. 

(d) COORDINATION WITH OTHER AGENCIES AND ORGANIZA- TIONS.—The Secretary shall conduct the study under this section 

in coordination and consultation with— 

(1) the Secretary of Health and Human Services; 

(2) the Administrator of the Small Business Administration; 

(3) the Institute of Medicine; and 

(4) representatives of appropriate businesses, academic 

institutions, and nonprofit and faith-based organizations. 

(e) SUBMISSION TO CONGRESS.—Not later than 1 year after 

the date of enactment of this Act, the Secretary shall submit to 

the Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry of the 

Senate the report prepared under this section, including the findings 

and recommendations described in subsection (c). 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $500,000. 

SEC. 7528. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY 

POSITIONS. 

Notwithstanding section 4703(d)(1) of title 5, United States 

Code, the amendment to the personnel management demonstration 

project established in the Department of Agriculture (67 Fed. Reg. 

70776 (2002)), shall become effective upon the date of enactment 

of this Act and shall remain in effect unless modified by law. 

SEC. 7529. AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH 

AND EDUCATION. 

(a) IN GENERAL.—The Secretary, in consultation with the Secretary of Transportation, shall make competitive grants to institutions of higher education to carry out agricultural and rural 

transportation research and education activities. 

(b) ACTIVITIES.—Research and education grants made under 

this section shall be used to address rural transportation and logistics needs of agricultural producers and related rural businesses, 

including— 

(1) the transportation of biofuels; and 

(2) the export of agricultural products. 

(c) SELECTION CRITERIA.— (1) IN GENERAL.—The Secretary shall award grants under 

this section on the basis of the transportation research, education, and outreach expertise of the applicant, as determined 

by the Secretary. 

(2) PRIORITY.—In awarding grants under this section, the 

Secretary shall give priority to institutions of higher education 

for use in coordinating research and education activities with 

other institutions of higher education with similar agricultural 

and rural transportation research and education programs. 
H. R. 2419—357 

(d) DIVERSIFICATION OF RESEARCH.—The Secretary shall award 

grants under this section in areas that are regionally diverse and 

broadly representative of the diversity of agricultural production 

and related transportation needs in the rural areas of the United 

States. 

(e) MATCHING FUNDS REQUIREMENT.—The Secretary shall 

require each recipient of a grant under this section to provide, 

from non-Federal sources, in cash or in kind, 50 percent of the 

cost of carrying out activities under the grant. 

(f) GRANT REVIEW.—A grant shall be awarded under this section 

on a competitive, peer- and merit-reviewed basis in accordance 

with section 103(a) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7613(a)). 

(g) NO DUPLICATION.—In awarding grants under this section, 

the Secretary shall ensure that activities funded under this section 

do not duplicate the efforts of the University Transportation Centers 

described in sections 5505 and 5506 of title 49, United States 

Code. 

(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $5,000,000 for each 

of fiscal years 2008 through 2012. 

TITLE VIII—FORESTRY 

Subtitle A—Amendments to Cooperative 

Forestry Assistance Act of 1978 

SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION. 

Section 2 of the Cooperative Forestry Assistance Act of 1978 

(16 U.S.C. 2101) is amended— 

(1) by redesignating subsections (c) and (d) as subsections 

(e) and (f), respectively; and 

(2) by inserting after subsection (b) the following new subsections: 

‘‘(c) PRIORITIES.—In allocating funds appropriated or otherwise 

made available under this Act, the Secretary shall focus on the 

following national private forest conservation priorities, notwithstanding other priorities specified elsewhere in this Act: 

‘‘(1) Conserving and managing working forest landscapes 

for multiple values and uses. 

‘‘(2) Protecting forests from threats, including catastrophic 

wildfires, hurricanes, tornados, windstorms, snow or ice storms, 

flooding, drought, invasive species, insect or disease outbreak, 

or development, and restoring appropriate forest types in 

response to such threats. 

‘‘(3) Enhancing public benefits from private forests, 

including air and water quality, soil conservation, biological 

diversity, carbon storage, forest products, forestry-related jobs, 

production of renewable energy, wildlife, wildlife corridors and 

wildlife habitat, and recreation. 

‘‘(d) REPORTING REQUIREMENT.—Not later than September 30, 

2011, the Secretary shall submit to Congress a report describing 

how funds were used under this Act, and through other programs 

administered by the Secretary, to address the national priorities 
H. R. 2419—358 

specified in subsection (c) and the outcomes achieved in meeting 

the national priorities.’’. 

SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES 

FOR FOREST RESOURCES. 

The Cooperative Forestry Assistance Act of 1978 is amended 

by inserting after section 2 (16 U.S.C. 2101) the following new 

section: 

‘‘SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST 

RESOURCES. 

‘‘(a) ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.— 

For a State to be eligible to receive funds under the authorities 

of this Act, the State forester of that State or equivalent State 

official shall develop and submit to the Secretary, not later than 

two years after the date of enactment of the Food, Conservation, 

and Energy Act of 2008, the following: 

‘‘(1) A State-wide assessment of forest resource conditions, 

including— 

‘‘(A) the conditions and trends of forest resources in 

that State; 

‘‘(B) the threats to forest lands and resources in that 

State consistent with the national priorities specified in 

section 2(c); 

‘‘(C) any areas or regions of that State that are a 

priority; and 

‘‘(D) any multi-State areas that are a regional priority. 

‘‘(2) A long-term State-wide forest resource strategy, 

including— 

‘‘(A) strategies for addressing threats to forest 

resources in the State outlined in the assessment required 

by paragraph (1); and 

‘‘(B) a description of the resources necessary for the 

State forester or equivalent State official from all sources 

to address the State-wide strategy. 

‘‘(b) UPDATING.—At such times as the Secretary determines 

to be necessary, the State forester or equivalent State official shall 

update and resubmit to the Secretary the State-wide assessment 

and State-wide strategy required by subsection (a). 

‘‘(c) COORDINATION.—In developing or updating the State-wide 

assessment and State-wide strategy required by subsection (a), 

the State Forester or equivalent State official shall coordinate 

with— 

‘‘(1) the State Forest Stewardship Coordinating Committee 

established for the State under section 19(b); 

‘‘(2) the State wildlife agency, with respect to strategies 

contained in the State wildlife action plans; 

‘‘(3) the State Technical Committee; 

‘‘(4) applicable Federal land management agencies; and 

‘‘(5) for purposes of the Forest Legacy Program under section 7, the State lead agency designated by the Governor. 

‘‘(d) INCORPORATION OF OTHER PLANS.—In developing or 

updating the State-wide assessment and State-wide strategy 

required by subsection (a), the State forester or equivalent State 

official shall incorporate any forest management plan of the State, 

including community wildfire protection plans and State wildlife 

action plans. 
H. R. 2419—359 

‘‘(e) SUFFICIENCY.—Once approved by the Secretary, a Statewide assessment and State-wide strategy developed under subsection (a) shall be deemed to be sufficient to satisfy all relevant 

State planning and assessment requirements under this Act. 

‘‘(f) FUNDING.— ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to carry out this section up 

to $10,000,000 for each of fiscal years 2008 through 2012. 

‘‘(2) ADDITIONAL FUNDING SOURCES.—In addition to the 

funds appropriated for a fiscal year pursuant to the authorization of appropriations in paragraph (1) to carry out this section, 

the Secretary may use any other funds made available for 

planning under this Act to carry out this section, except that 

the total amount of combined funding used to carry out this 

section may not exceed $10,000,000 in any fiscal year. 

‘‘(g) ANNUAL REPORT ON USE OF FUNDS.—The State forester 

or equivalent State official shall submit to the Secretary an annual 

report detailing how funds made available to the State under this 

Act are being used.’’. 

SEC. 8003. COMMUNITY FOREST AND OPEN SPACE CONSERVATION 

PROGRAM. 

(a) FINDINGS.—Congress finds that— 

(1) the Forest Service projects that, by calendar year 2030, 

approximately 44,000,000 acres of privately-owned forest land 

will be developed throughout the United States; 

(2) public access to parcels of privately-owned forest land 

for outdoor recreational activities, including hunting, fishing, 

and trapping, has declined and, as a result, participation in 

those activities has also declined in cases in which public access 

is not secured; 

(3) rising rates of obesity and other public health problems 

relating to the inactivity of the citizens of the United States 

have been shown to be ameliorated by improving public access 

to safe and attractive areas for outdoor recreation; 

(4) in rapidly-growing communities of all sizes throughout 

the United States, remaining parcels of forest land play an 

essential role in protecting public water supplies; 

(5) forest parcels owned by local governmental entities 

and nonprofit organizations are providing important demonstration sites for private landowners to learn forest management 

techniques; 

(6) throughout the United States, communities of diverse 

types and sizes are deriving significant financial and community benefits from managing forest land owned by local governmental entities for timber and other forest products; and 

(7) there is an urgent need for local governmental entities 

to be able to leverage financial resources in order to purchase 

important parcels of privately-owned forest land as the parcels 

are offered for sale. 

(b) COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.—The Cooperative Forestry Assistance Act of 1978 is amended 

by inserting after section 7 (16 U.S.C. 2103c) the following new 

section: 

‘‘SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 
H. R. 2419—360 

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a 

local governmental entity, Indian tribe, or nonprofit organization that owns or acquires a parcel under the program. 

‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 

given the term in section 4 of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b). 

‘‘(3) LOCAL GOVERNMENTAL ENTITY.—The term ‘local governmental entity’ includes any municipal government, county 

government, or other local government body with jurisdiction 

over local land use decisions. 

‘‘(4) NONPROFIT ORGANIZATION.—The term ‘nonprofit 

organization’ means any organization that— 

‘‘(A) is described in section 170(h)(3) of the Internal 

Revenue Code of 1986; and 

‘‘(B) operates in accordance with 1 or more of the 

purposes specified in section 170(h)(4)(A) of that Code. 

‘‘(5) PROGRAM.—The term ‘Program’ means the community 

forest and open space conservation program established under 

subsection (b). 

‘‘(6) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Agriculture, acting through the Chief of the Forest Service. 

‘‘(b) ESTABLISHMENT.—The Secretary shall establish a program, 

to be known as the ‘community forest and open space conservation 

program’. 

‘‘(c) GRANT PROGRAM.— ‘‘(1) IN GENERAL.—The Secretary may award grants to 

eligible entities to acquire private forest land, to be owned 

in fee simple, that— 

‘‘(A) are threatened by conversion to nonforest uses; 

and 

‘‘(B) provide public benefits to communities, including— 

‘‘(i) economic benefits through sustainable forest 

management; 

‘‘(ii) environmental benefits, including clean water 

and wildlife habitat; 

‘‘(iii) benefits from forest-based educational programs, including vocational education programs in forestry; 

‘‘(iv) benefits from serving as models of effective 

forest stewardship for private landowners; and 

‘‘(v) recreational benefits, including hunting and 

fishing. 

‘‘(2) FEDERAL COST SHARE.—An eligible entity may receive 

a grant under the Program in an amount equal to not more 

than 50 percent of the cost of acquiring 1 or more parcels, 

as determined by the Secretary. 

‘‘(3) NON-FEDERAL SHARE.—As a condition of receipt of the 

grant, an eligible entity that receives a grant under the Program shall provide, in cash, donation, or in kind, a non-Federal 

matching share in an amount that is at least equal to the 

amount of the grant received. 

‘‘(4) APPRAISAL OF PARCELS.—To determine the non-Federal 

share of the cost of a parcel of privately-owned forest land 

under paragraph (2), an eligible entity shall require appraisals 

of the land that comply with the Uniform Appraisal Standards 

for Federal Land Acquisitions developed by the Interagency 

Land Acquisition Conference. 
H. R. 2419—361 

‘‘(5) APPLICATION.—An eligible entity that seeks to receive 

a grant under the Program shall submit to the State forester 

or equivalent official (or in the case of an Indian tribe, an 

equivalent official of the Indian tribe) an application that 

includes— 

‘‘(A) a description of the land to be acquired; 

‘‘(B) a forest plan that provides— 

‘‘(i) a description of community benefits to be 

achieved from the acquisition of the private forest land; 

and 

‘‘(ii) an explanation of the manner in which any 

private forest land to be acquired using funds from 

the grant will be managed; and 

‘‘(C) such other relevant information as the Secretary 

may require. 

‘‘(6) EFFECT ON TRUST LAND.— 

‘‘(A) INELIGIBILITY.—The Secretary shall not provide 

a grant under the Program for any project on land held 

in trust by the United States (including Indian reservations 

and allotment land). 

‘‘(B) ACQUIRED LAND.—No land acquired using a grant 

provided under the Program shall be converted to land 

held in trust by the United States on behalf of any Indian 

tribe. 

‘‘(7) APPLICATIONS TO SECRETARY.—The State forester or 

equivalent official (or in the case of an Indian tribe, an equivalent official of the Indian tribe) shall submit to the Secretary 

a list that includes a description of each project submitted 

by an eligible entity at such times and in such form as the 

Secretary shall prescribe. 

‘‘(d) DUTIES OF ELIGIBLE ENTITY.—An eligible entity shall provide public access to, and manage, forest land acquired with a 

grant under this section in a manner that is consistent with the 

purposes for which the land was acquired under the Program. 

‘‘(e) PROHIBITED USES.— 

‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), an 

eligible entity that acquires a parcel under the Program shall 

not sell the parcel or convert the parcel to nonforest use. 

‘‘(2) REIMBURSEMENT OF FUNDS.—An eligible entity that 

sells or converts to nonforest use a parcel acquired under the 

Program shall pay to the Federal Government an amount equal 

to the greater of the current sale price, or current appraised 

value, of the parcel. 

‘‘(3) LOSS OF ELIGIBILITY.—An eligible entity that sells or 

converts a parcel acquired under the Program shall not be 

eligible for additional grants under the Program. 

‘‘(f) STATE ADMINISTRATION AND TECHNICAL ASSISTANCE.—The 

Secretary may allocate not more than 10 percent of all funds made 

available to carry out the Program for each fiscal year to State 

foresters or equivalent officials (including equivalent officials of 

Indian tribes) for Program administration and technical assistance. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section.’’. 
H. R. 2419—362 

SEC. 8004. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, 

THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE 

REPUBLIC OF PALAU. 

Section 13(d)(1) of the Cooperative Forestry Act of 1978 (16 

U.S.C. 2109(d)(1)) is amended by striking ‘‘the Trust Territory of 

the Pacific Islands,’’ and inserting ‘‘the Federated States of Micronesia, the Republic of the Marshall Islands, the Republic of Palau,’’. 

SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE. 

Section 19 of the Cooperative Forestry Assistance Act of 1978 

(16 U.S.C. 2113) is amended by striking subsection (a) and inserting 

the following new subsection: 

‘‘(a) FOREST RESOURCE COORDINATING COMMITTEE.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall establish a committee, to be known as the ‘Forest Resource Coordinating Committee’ (in this section referred to as the ‘Coordinating Committee’), to coordinate nonindustrial private forestry activities 

within the Department of Agriculture and with the private 

sector. 

‘‘(2) COMPOSITION.—The Coordinating Committee shall be 

composed of the following: 

‘‘(A) The Chief of the Forest Service. 

‘‘(B) The Chief of the Natural Resources Conservation 

Service. 

‘‘(C) The Director of the Farm Service Agency. 

‘‘(D) The Director of the National Institute of Food 

and Agriculture. 

‘‘(E) Non-Federal representatives appointed by the Secretary to 3 year terms, although initial appointees shall 

have staggered terms, including the following persons: 

‘‘(i) At least three State foresters or equivalent 

State officials from geographically diverse regions of 

the United States. 

‘‘(ii) A representative of a State fish and wildlife 

agency. 

‘‘(iii) An owner of nonindustrial private forest land. 

‘‘(iv) A forest industry representative. 

‘‘(v) A conservation organization representative. 

‘‘(vi) A land-grant university or college representative. 

‘‘(vii) A private forestry consultant. 

‘‘(viii) A representative from a State Technical 

Committee established under section 1261 of the Food 

Security Act of 1985 (16 U.S.C. 3861). 

‘‘(F) Such other persons as determined by the Secretary 

to be appropriate. 

‘‘(3) CHAIRPERSON.—The Chief of the Forest Service shall 

serve as chairperson of the Coordinating Committee. 

‘‘(4) DUTIES.—The Coordinating Committee shall— 

‘‘(A) provide direction and coordination of actions 

within the Department of Agriculture, and coordination 

with State agencies and the private sector, to effectively 

address the national priorities specified in section 2(c), 

with specific focus owners of nonindustrial private forest 

land; 
H. R. 2419—363 

‘‘(B) clarify individual agency responsibilities of each 

agency represented on the Coordinating Committee concerning the national priorities specified in section 2(c), 

with specific focus on nonindustrial private forest land; 

‘‘(C) provide advice on the allocation of funds, including 

the competitive funds set-aside by sections 13A and 13B; 

and 

‘‘(D) assist the Secretary in developing and reviewing 

the report required by section 2(d). 

‘‘(5) MEETING.—The Coordinating Committee shall meet 

annually to discuss progress in addressing the national priorities specified in section 2(c) and issues regarding nonindustrial 

private forest land. 

‘‘(6) COMPENSATION.— ‘‘(A) FEDERAL MEMBERS.—Members of the Coordinating 

Committee who are full-time officers or employees of the 

United States shall receive no additional pay, allowances, 

or benefits by reason of their service on the Coordinating 

Committee. 

‘‘(B) NON-FEDERAL MEMBERS.—Non-federal members of 

the Coordinating Committee shall serve without pay, but 

may be reimbursed for reasonable costs incurred while 

performing their duties on behalf of the Coordinating Committee.’’. 

SEC. 8006. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING 

COMMITTEES. 

Section 19(b) of the Cooperative Forestry Assistance Act of 

1978 (16 U.S.C. 2113(b)) is amended— 

(1) in paragraph (1)(B)(ii)— 

(A) by striking ‘‘and’’ at the end of subclause (VII); 

and 

(B) by adding at the end the following new subclause: 

‘‘(IX) the State Technical Committee.’’. 

(2) in paragraph (2)(C), by striking ‘‘a Forest Stewardship 

Plan under paragraph (3)’’ and inserting ‘‘the State-wide assessment and strategy regarding forest resource conditions under 

section 2A’’; 

(3) by striking paragraphs (3) and (4); and 

(4) by redesignating paragraphs (5) and (6) as paragraphs 

(3) and (4), respectively. 

SEC. 8007. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY ASSISTANCE ACT OF 1978. 

The Cooperative Forestry Assistance Act of 1978 is amended 

by inserting after section 13 (16 U.S.C. 2109) the following new 

section: 

‘‘SEC. 13A. COMPETITIVE ALLOCATION OF FUNDS TO STATE FORESTERS OR EQUIVALENT STATE OFFICIALS. 

‘‘(a) COMPETITION.—Beginning not later than 3 years after the 

date of the enactment of the Food, Conservation, and Energy Act 

of 2008, the Secretary shall competitively allocate a portion, to 

be determined by the Secretary, of the funds available under this 

Act to State foresters or equivalent State officials. 

‘‘(b) DETERMINATION.—In determining the competitive allocation of funds under subsection (a), the Secretary shall consult 
H. R. 2419—364 

with the Forest Resource Coordinating Committee established by 

section 19(a). 

‘‘(c) PRIORITY.—The Secretary shall give priority for funding 

to States for which the long-term State-wide forest resource strategies submitted under section 2A(a)(2) will best promote the national 

priorities specified in section 2(c).’’. 

SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE 

FOREST INNOVATION PARTNERSHIP PROJECTS. 

The Cooperative Forestry Assistance Act of 1978 is amended 

by inserting after section 13A, as added by section 8006, the following new section: 

‘‘SEC. 13B. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE 

FOREST INNOVATION PARTNERSHIP PROJECTS. 

‘‘(a) COOPERATIVE FOREST INNOVATION PARTNERSHIP

PROJECTS.—The Secretary may competitively allocate not more than 

5 percent of the funds made available under this Act to support 

innovative national, regional, or local education, outreach, or technology transfer projects that the Secretary determines would 

substantially increase the ability of the Department of Agriculture 

to address the national priorities specified in section 2(c). 

‘‘(b) ELIGIBILITY.—Notwithstanding the eligibility limitations 

contained in this Act, any State or local government, Indian tribe, 

land-grant college or university, or private entity shall be eligible 

to compete for funds to be competitively allocated under subsection 

(a). 

‘‘(c) COST-SHARE REQUIREMENT.—In carrying out subsection (a), 

the Secretary shall not cover more than 50 percent of the total 

cost of a project under such subsection. In calculating the total 

cost of a project and contributions made with regard to the project, 

the Secretary shall include in-kind contributions.’’. 

Subtitle B—Cultural and Heritage 

Cooperation Authority 

SEC. 8101. PURPOSES. 

The purposes of this subtitle are— 

(1) to authorize the reburial of human remains and cultural 

items on National Forest System land, including human 

remains and cultural items repatriated under the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001 

et seq.); 

(2) to prevent the unauthorized disclosure of information 

regarding reburial sites, including the quantity and identity 

of human remains and cultural items on sites and the location 

of sites; 

(3) to authorize the Secretary of Agriculture to ensure 

access to National Forest System land, to the maximum extent 

practicable, by Indians and Indian tribes for traditional and 

cultural purposes; 

(4) to authorize the Secretary to provide forest products, 

without consideration, to Indian tribes for traditional and cultural purposes; 
H. R. 2419—365 

(5) to authorize the Secretary to protect the confidentiality 

of certain information, including information that is culturally 

sensitive to Indian tribes; 

(6) to increase the availability of Forest Service programs 

and resources to Indian tribes in support of the policy of the 

United States to promote tribal sovereignty and self-determination; and 

(7) to strengthen support for the policy of the United States 

of protecting and preserving the traditional, cultural, and 

ceremonial rites and practices of Indian tribes, in accordance 

with Public Law 95–341 (commonly known as the American 

Indian Religious Freedom Act; 42 U.S.C. 1996). 

SEC. 8102. DEFINITIONS. 

In this subtitle: 

(1) ADJACENT SITE.—The term ‘‘adjacent site’’ means a site 

that borders a boundary line of National Forest System land. 

(2) CULTURAL ITEMS.—The term ‘‘cultural items’’ has the 

meaning given the term in section 2 of the Native American 

Graves Protection and Repatriation Act (25 U.S.C. 3001), except 

that the term does not include human remains. 

(3) HUMAN REMAINS.—The term ‘‘human remains’’ means 

the physical remains of the body of a person of Indian ancestry. 

(4) INDIAN.—The term ‘‘Indian’’ means an individual who 

is a member of an Indian tribe. 

(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ means any 

Indian or Alaska Native tribe, band, nation, pueblo, village, 

or other community the name of which is included on a list 

published by the Secretary of the Interior pursuant to section 

104 of the Federally Recognized Indian Tribe List Act of 1994 

(25 U.S.C. 479a–1). 

(6) LINEAL DESCENDANT.—The term ‘‘lineal descendant’’ 

means an individual that can trace, directly and without 

interruption, the ancestry of the individual through the traditional kinship system of an Indian tribe, or through the common 

law system of descent, to a known Indian, the human remains, 

funerary objects, or other sacred objects of whom are claimed 

by the individual. 

(7) NATIONAL FOREST SYSTEM.—The term ‘‘National Forest 

System’’ has the meaning given the term in section 11(a) of 

the Forest and Rangeland Renewable Resources Planning Act 

of 1974 (16 U.S.C. 1609(a)). 

(8) REBURIAL SITE.—The term ‘‘reburial site’’ means a specific physical location at which cultural items or human remains 

are reburied. 

(9) TRADITIONAL AND CULTURAL PURPOSE.—The term ‘‘traditional and cultural purpose’’, with respect to a definable use, 

area, or practice, means that the use, area, or practice is 

identified by an Indian tribe as traditional or cultural because 

of the long-established significance or ceremonial nature of 

the use, area, or practice to the Indian tribe. 

SEC. 8103. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS. 

(a) REBURIAL SITES.—In consultation with an affected Indian 

tribe or lineal descendant, the Secretary may authorize the use 

of National Forest System land by the Indian tribe or lineal descendant for the reburial of human remains or cultural items in the 
H. R. 2419—366 

possession of the Indian tribe or lineal descendant that have been 

disinterred from National Forest System land or an adjacent site. 

(b) REBURIAL.—With the consent of the affected Indian tribe 

or lineal descendent, the Secretary may recover and rebury, at 

Federal expense or using other available funds, human remains 

and cultural items described in subsection (a) at the National Forest 

System land identified under that subsection. 

(c) AUTHORIZATION OF USE.— (1) IN GENERAL.—Subject to paragraph (2), the Secretary 

may authorize such uses of reburial sites on National Forest 

System land, or on the National Forest System land immediately surrounding a reburial site, as the Secretary determines 

to be necessary for management of the National Forest System. 

(2) AVOIDANCE OF ADVERSE IMPACTS.—In carrying out paragraph (1), the Secretary shall avoid adverse impacts to cultural 

items and human remains, to the maximum extent practicable. 

SEC. 8104. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL 

PURPOSES. 

(a) RECOGNITION OF HISTORIC USE.—To the maximum extent 

practicable, the Secretary shall ensure access to National Forest 

System land by Indians for traditional and cultural purposes, in 

accordance with subsection (b), in recognition of the historic use 

by Indians of National Forest System land. 

(b) CLOSING LAND FROM PUBLIC ACCESS.— 

(1) AUTHORITY TO CLOSE.—Upon the approval by the Secretary of a request from an Indian tribe, the Secretary may 

temporarily close from public access specifically identified 

National Forest System land to protect the privacy of tribal 

activities for traditional and cultural purposes. 

(2) LIMITATION.—A closure of National Forest System land 

under paragraph (1) shall affect the smallest practicable area 

for the minimum period necessary for activities of the applicable 

Indian tribe. 

(3) CONSISTENCY.—Access by Indian tribes to National 

Forest System land under this subsection shall be consistent 

with the purposes of Public Law 95–341 (commonly known 

as the American Indian Religious Freedom Act; 42 U.S.C. 1996). 

SEC. 8105. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL PURPOSES. 

(a) IN GENERAL.—Notwithstanding section 14 of the National 

Forest Management Act of 1976 (16 U.S.C. 472a), the Secretary 

may provide free of charge to Indian tribes any trees, portions 

of trees, or forest products from National Forest System land for 

traditional and cultural purposes. 

(b) PROHIBITION.—Trees, portions of trees, or forest products 

provided under subsection (a) may not be used for commercial 

purposes. 

SEC. 8106. PROHIBITION ON DISCLOSURE. 

(a) NONDISCLOSURE OF INFORMATION.— (1) IN GENERAL.—The Secretary shall not disclose under 

section 552 of title 5, United States Code (commonly known 

as the ‘‘Freedom of Information Act’’), information relating to— 

(A) subject to subsection (b)(l), human remains or cultural items reburied on National Forest System land under 

section 8103; or 
H. R. 2419—367 

(B) subject to subsection (b)(2), resources, cultural 

items, uses, or activities that— 

(i) have a traditional and cultural purpose; and 

(ii) are provided to the Secretary by an Indian 

or Indian tribe under an express expectation of confidentiality in the context of forest and rangeland 

research activities carried out under the authority of 

the Forest Service. 

(2) LIMITATIONS ON DISCLOSURE.—Subject to subsection 

(b)(2), the Secretary shall not be required to disclose information under section 552 of title 5, United States Code (commonly 

known as the ‘‘Freedom of Information Act’’), concerning the 

identity, use, or specific location in the National Forest System 

of— 

(A) a site or resource used for traditional and cultural 

purposes by an Indian tribe; or 

(B) any cultural items not covered under section 8103. 

(b) LIMITED RELEASE OF INFORMATION.— (1) REBURIAL.—The Secretary may disclose information 

described in subsection (a)(l)(A) if, before the disclosure, the 

Secretary— 

(A) consults with an affected Indian tribe or lineal 

descendent; 

(B) determines that disclosure of the information— 

(i) would advance the purposes of this subtitle; 

and 

(ii) is necessary to protect the human remains 

or cultural items from harm, theft, or destruction; and 

(C) attempts to mitigate any adverse impacts identified 

by an Indian tribe or lineal descendant that reasonably 

could be expected to result from disclosure of the information. 

(2) OTHER INFORMATION.—The Secretary, in consultation 

with appropriate Indian tribes, may disclose information 

described under paragraph (1)(B) or (2) of subsection (a) if 

the Secretary determines that disclosure of the information 

to the public— 

(A) would advance the purposes of this subtitle; 

(B) would not create an unreasonable risk of harm, 

theft, or destruction of the resource, site, or object, 

including individual organic or inorganic specimens; and 

(C) would be consistent with other applicable laws. 

SEC. 8107. SEVERABILITY AND SAVINGS PROVISIONS. 

(a) SEVERABILITY.—If any provision of this subtitle, or the 

application of any provision of this subtitle to any person or circumstance is held invalid, the application of such provision or 

circumstance and the remainder of this subtitle shall not be affected 

thereby. 

(b) SAVINGS.—Nothing in this subtitle— 

(1) diminishes or expands the trust responsibility of the 

United States to Indian tribes, or any legal obligation or remedy 

resulting from that responsibility; 

(2) alters, abridges, repeals, or affects any valid agreement 

between the Forest Service and an Indian tribe; 

(3) alters, abridges, diminishes, repeals, or affects any 

reserved or other right of an Indian tribe; or 
H. R. 2419—368 

(4) alters, abridges, diminishes, repeals, or affects any other 

valid existing right relating to National Forest System land 

or other public land. 

Subtitle C—Amendments to Other 

Forestry-Related Laws 

SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES. 

Section 2371(d)(2) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking 

‘‘2004 through 2008’’ and inserting ‘‘2008 through 2012’’. 

SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY. 

Section 2405(d) of the Global Climate Change Prevention Act 

of 1990 (7 U.S.C. 6704(d)) is amended by striking ‘‘2007’’ and 

inserting ‘‘2012’’. 

SEC. 8203. EMERGENCY FOREST RESTORATION PROGRAM. 

(a) ESTABLISHMENT.—Title IV of the Agricultural Credit Act 

of 1978 (16 U.S.C. 2201 et seq.) is amended by adding at the 

end the following new section: 

‘‘SEC. 407. EMERGENCY FOREST RESTORATION PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) EMERGENCY MEASURES.—The term ‘emergency measures’ means those measures that— 

‘‘(A) are necessary to address damage caused by a 

natural disaster to natural resources on nonindustrial private forest land, and the damage, if not treated— 

‘‘(i) would impair or endanger the natural 

resources on the land; and 

‘‘(ii) would materially affect future use of the land; 

and 

‘‘(B) would restore forest health and forest-related 

resources on the land. 

‘‘(2) NATURAL DISASTER.—The term ‘natural disaster’ 

includes wildfires, hurricanes or excessive winds, drought, ice 

storms or blizzards, floods, or other resource-impacting events, 

as determined by the Secretary. 

‘‘(3) NONINDUSTRIAL PRIVATE FOREST LAND.—The term ‘nonindustrial private forest land’ means rural land, as determined 

by the Secretary, that— 

‘‘(A) has existing tree cover (or had tree cover immediately before the natural disaster and is suitable for 

growing trees); and 

‘‘(B) is owned by any nonindustrial private individual, 

group, association, corporation, or other private legal entity, 

that has definitive decision-making authority over the land. 

‘‘(4) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Agriculture. 

‘‘(b) AVAILABILITY OF ASSISTANCE.—The Secretary may make 

payments to an owner of nonindustrial private forest land who 

carries out emergency measures to restore the land after the land 

is damaged by a natural disaster. 

‘‘(c) ELIGIBILITY.—To be eligible to receive a payment under 

subsection (b), an owner must demonstrate to the satisfaction of 
H. R. 2419—369 

the Secretary that the nonindustrial private forest land on which 

the emergency measures are carried out had tree cover immediately 

before the natural disaster. 

‘‘(d) COST SHARE REQUIREMENT.—Payments made under subsection (b) shall not exceed 75 percent of the total cost of the 

emergency measures carried out by an owner of nonindustrial private forest land. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary such funds as may be necessary 

to carry out this section. Amounts so appropriated shall remain 

available until expended.’’. 

(b) REGULATIONS.—Not later than one year after the date of 

the enactment of this Act, the Secretary of Agriculture shall issue 

regulations to carry out section 407 of the Agricultural Credit 

Act of 1978, as added by subsection (a). 

SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES. 

(a) DEFINITIONS.— 

(1) PLANT.—Subsection (f) of section 2 of the Lacey Act 

Amendments of 1981 (16 U.S.C. 3371) is amended to read 

as follows: 

‘‘(f) PLANT.— 

‘‘(1) IN GENERAL.—The terms ‘plant’ and ‘plants’ mean any 

wild member of the plant kingdom, including roots, seeds, parts, 

or products thereof, and including trees from either natural 

or planted forest stands. 

‘‘(2) EXCLUSIONS.—The terms ‘plant’ and ‘plants’ exclude— 

‘‘(A) common cultivars, except trees, and common food 

crops (including roots, seeds, parts, or products thereof); 

‘‘(B) a scientific specimen of plant genetic material 

(including roots, seeds, germplasm, parts, or products 

thereof) that is to be used only for laboratory or field 

research; and 

‘‘(C) any plant that is to remain planted or to be 

planted or replanted. 

‘‘(3) EXCEPTIONS TO APPLICATION OF EXCLUSIONS.—The 

exclusions made by subparagraphs (B) and (C) of paragraph 

(2) do not apply if the plant is listed— 

‘‘(A) in an appendix to the Convention on International 

Trade in Endangered Species of Wild Fauna and Flora 

(27 UST 1087; TIAS 8249); 

‘‘(B) as an endangered or threatened species under 

the Endangered Species Act of 1973 (16 U.S.C. 1531 et 

seq.); or 

‘‘(C) pursuant to any State law that provides for the 

conservation of species that are indigenous to the State 

and are threatened with extinction.’’. 

(2) INCLUSION OF SECRETARY OF AGRICULTURE.—Section 

2(h) of the Lacey Act Amendments of 1981 (16 U.S.C. 3371(h)) 

is amended by striking ‘‘plants the term means’’ and inserting 

‘‘plants, the term also means’’. 

(3) TAKEN AND TAKING.—Subsection (j) of section 2 of the 

Lacey Act Amendments of 1981 (16 U.S.C. 3371) is amended 

to read as follows: 

‘‘(j) TAKEN AND TAKING.— 
H. R. 2419—370 

‘‘(1) TAKEN.—The term ‘taken’ means captured, killed, or 

collected and, with respect to a plant, also means harvested, 

cut, logged, or removed. 

‘‘(2) TAKING.—The term ‘taking’ means the act by which 

fish, wildlife, or plants are taken.’’. 

(b) PROHIBITED ACTS.— 

(1) OFFENSES OTHER THAN MARKING.—Section 3(a) of the 

Lacey Act Amendments of 1981 (16 U.S.C. 3372(a)) is 

amended— 

(A) in paragraph (2), by striking subparagraph (B) 

and inserting the following new subparagraph: 

‘‘(B) any plant— 

‘‘(i) taken, possessed, transported, or sold in violation of any law or regulation of any State, or any 

foreign law, that protects plants or that regulates— 

‘‘(I) the theft of plants; 

‘‘(II) the taking of plants from a park, forest 

reserve, or other officially protected area; 

‘‘(III) the taking of plants from an officially 

designated area; or 

‘‘(IV) the taking of plants without, or contrary 

to, required authorization; 

‘‘(ii) taken, possessed, transported, or sold without 

the payment of appropriate royalties, taxes, or stumpage fees required for the plant by any law or regulation 

of any State or any foreign law; or 

‘‘(iii) taken, possessed, transported, or sold in violation of any limitation under any law or regulation 

of any State, or under any foreign law, governing the 

export or transshipment of plants; or’’; and 

(B) in paragraph (3), by striking subparagraph (B) 

and inserting the following subparagraph: 

‘‘(B) to possess any plant— 

‘‘(i) taken, possessed, transported, or sold in violation of any law or regulation of any State, or any 

foreign law, that protects plants or that regulates— 

‘‘(I) the theft of plants; 

‘‘(II) the taking of plants from a park, forest 

reserve, or other officially protected area; 

‘‘(III) the taking of plants from an officially 

designated area; or 

‘‘(IV) the taking of plants without, or contrary 

to, required authorization; 

‘‘(ii) taken, possessed, transported, or sold without 

the payment of appropriate royalties, taxes, or stumpage fees required for the plant by any law or regulation 

of any State or any foreign law; or 

‘‘(iii) taken, possessed, transported, or sold in violation of any limitation under any law or regulation 

of any State, or under any foreign law, governing the 

export or transshipment of plants; or’’. 

(2) PLANT DECLARATIONS.—Section 3 of the Lacey Act 

Amendments of 1981 (16 U.S.C. 3372) is amended by adding 

at the end the following new subsection: 

‘‘(f) PLANT DECLARATIONS.— ‘‘(1) IMPORT DECLARATION.—Effective 180 days from the 

date of enactment of this subsection, and except as provided 
H. R. 2419—371 

in paragraph (3), it shall be unlawful for any person to import 

any plant unless the person files upon importation a declaration 

that contains— 

‘‘(A) the scientific name of any plant (including the 

genus and species of the plant) contained in the importation; 

‘‘(B) a description of— 

‘‘(i) the value of the importation; and 

‘‘(ii) the quantity, including the unit of measure, 

of the plant; and 

‘‘(C) the name of the country from which the plant 

was taken. 

‘‘(2) DECLARATION RELATING TO PLANT PRODUCTS.—Until 

the date on which the Secretary promulgates a regulation under 

paragraph (6), a declaration relating to a plant product shall— 

‘‘(A) in the case in which the species of plant used 

to produce the plant product that is the subject of the 

importation varies, and the species used to produce the 

plant product is unknown, contain the name of each species 

of plant that may have been used to produce the plant 

product; 

‘‘(B) in the case in which the species of plant used 

to produce the plant product that is the subject of the 

importation is commonly taken from more than one 

country, and the country from which the plant was taken 

and used to produce the plant product is unknown, contain 

the name of each country from which the plant may have 

been taken; and 

‘‘(C) in the case in which a paper or paperboard plant 

product includes recycled plant product, contain the average percent recycled content without regard for the species 

or country of origin of the recycled plant product, in addition to the information for the non-recycled plant content 

otherwise required by this subsection. 

‘‘(3) EXCLUSIONS.—Paragraphs (1) and (2) shall not apply 

to plants used exclusively as packaging material to support, 

protect, or carry another item, unless the packaging material 

itself is the item being imported. 

‘‘(4) REVIEW.—Not later than two years after the date of 

enactment of this subsection, the Secretary shall review the 

implementation of each requirement imposed by paragraphs 

(1) and (2) and the effect of the exclusion provided by paragraph 

(3). In conducting the review, the Secretary shall provide public 

notice and an opportunity for comment. 

‘‘(5) REPORT.—Not later than 180 days after the date on 

which the Secretary completes the review under paragraph 

(4), the Secretary shall submit to the appropriate committees 

of Congress a report containing— 

‘‘(A) an evaluation of— 

‘‘(i) the effectiveness of each type of information 

required under paragraphs (1) and (2) in assisting 

enforcement of this section; and 

‘‘(ii) the potential to harmonize each requirement 

imposed by paragraphs (1) and (2) with other 

applicable import regulations in existence as of the 

date of the report; 
H. R. 2419—372 

‘‘(B) recommendations for such legislation as the Secretary determines to be appropriate to assist in the identification of plants that are imported into the United States 

in violation of this section; and 

‘‘(C) an analysis of the effect of subsection (a) and 

this subsection on— 

‘‘(i) the cost of legal plant imports; and 

‘‘(ii) the extent and methodology of illegal logging 

practices and trafficking. 

‘‘(6) PROMULGATION OF REGULATIONS.—Not later than 180 

days after the date on which the Secretary completes the review 

under paragraph (4), the Secretary may promulgate regulations— 

‘‘(A) to limit the applicability of any requirement 

imposed by paragraph (2) to specific plant products; 

‘‘(B) to make any other necessary modification to any 

requirement imposed by paragraph (2), as determined by 

the Secretary based on the review; and 

‘‘(C) to limit the scope of the exclusion provided by 

paragraph (3), if the limitations in scope are warranted 

as a result of the review.’’. 

(c) CROSS-REFERENCES TO NEW REQUIREMENT.—Section 4 of 

the Lacey Act Amendments of 1981 (16 U.S.C. 3373) is amended— 

(1) by striking ‘‘subsections (b) and (d)’’ each place it 

appears and inserting ‘‘subsections (b), (d), and (f)’’; 

(2) by striking ‘‘section 3(d)’’ each place it appears and 

inserting ‘‘subsection (d) or (f) of section 3’’; and 

(3) in subsection (a)(2), by striking ‘‘subsection 3(b)’’ and 

inserting ‘‘subsection (b) or (f) of section 3, except as provided 

in paragraph (1),’’. 

(d) CIVIL FORFEITURES.—Section 5 of the Lacey Act Amendments of 1981 (16 U.S.C. 3374) is amended by adding at the 

end the following new subsection: 

‘‘(d) CIVIL FORFEITURES.—Civil forfeitures under this section 

shall be governed by the provisions of chapter 46 of title 18, United 

States Code.’’. 

(e) ADMINISTRATION.—Section 7 of the Lacey Act Amendments 

of 1981 (16 U.S.C. 3376) is amended— 

(1) in subsection (a)(1), by striking ‘‘section 4 and section’’ 

and inserting ‘‘sections 3(f), 4, and’’; and 

(2) by adding at the end the following new subsection: 

‘‘(c) CLARIFICATION OF EXCLUSIONS FROM DEFINITION OF

PLANT.—The Secretary of Agriculture and the Secretary of the 

Interior, after consultation with the appropriate agencies, shall 

jointly promulgate regulations to define the terms used in section 

2(f)(2)(A) for the purposes of enforcement under this Act.’’. 

(f) TECHNICAL CORRECTION.—Effective as of November 14, 1988, 

and as if included therein as enacted, section 102(c) of Public 

Law 100–653 (102 Stat. 3825) is amended— 

(1) by inserting ‘‘of the Lacey Act Amendments of 1981’’ 

after ‘‘Section 4’’; and 

(2) by striking ‘‘(other than section 3(b))’’ and inserting 

‘‘(other than subsection 3(b))’’. 

SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM. 

(a) ENROLLMENT.—Section 502 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6572(f)(1)) is amended— 
H. R. 2419—373 

(1) by striking subsections (e) and (f); 

(2) by redesignating subsection (g) as subsection (f); and 

(3) by inserting after subsection (d) the following new subsection: 

‘‘(e) METHODS OF ENROLLMENT.— 

‘‘(1) AUTHORIZED METHODS.—Land may be enrolled in the 

healthy forests reserve program in accordance with— 

‘‘(A) a 10-year cost-share agreement; 

‘‘(B) a 30-year easement; or 

‘‘(C)(i) a permanent easement; or 

‘‘(ii) in a State that imposes a maximum duration 

for easements, an easement for the maximum duration 

allowed under State law. 

‘‘(2) LIMITATION ON USE OF COST-SHARE AGREEMENTS AND

EASEMENTS.— 

‘‘(A) IN GENERAL.—Of the total amount of funds 

expended under the program for a fiscal year to acquire 

easements and enter into cost-share agreements described 

in paragraph (1)— 

‘‘(i) not more than 40 percent shall be used for 

cost-share agreements described in paragraph (1)(A); 

and 

‘‘(ii) not more than 60 percent shall be used for 

easements described in subparagraphs (B) and (C) of 

paragraph (1). 

‘‘(B) REPOOLING.—The Secretary may use any funds 

allocated under clause (i) or (ii) of subparagraph (A) that 

are not obligated by April 1 of the fiscal year for which 

the funds are made available to carry out a different 

method of enrollment during that fiscal year. 

‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In the case of 

acreage owned by an Indian tribe, the Secretary may enroll 

acreage into the healthy forests reserve program through the 

use of— 

‘‘(A) a 30-year contract (the value of which shall be 

equivalent to the value of a 30-year easement); 

‘‘(B) a 10-year cost-share agreement; or 

‘‘(C) any combination of the options described in subparagraphs (A) and (B).’’. 

(b) FINANCIAL ASSISTANCE.—Section 504(a) of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6574(a)) is amended by 

striking ‘‘(a) EASEMENTS OF NOT MORE THAN 99 YEARS’’ and all 

that follows through ‘‘502(f)(1)(C)’’ and inserting the following: 

‘‘(a) PERMANENT EASEMENTS.—In the case of land enrolled in 

the healthy forests reserve program using a permanent easement 

(or an easement described in section 502(f)(1)(C)(ii))’’. 

(c) FUNDING.—Section 508 of the Healthy Forests Restoration 

Act of 2003 (16 U.S.C. 6578) is amended to read as follows: 

‘‘SEC. 508. FUNDING. 

‘‘(a) IN GENERAL.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available 

$9,750,000 for each of fiscal years 2009 through 2012 to carry 

out this title. 

‘‘(b) DURATION OF AVAILABILITY.—The funds made available 

under subsection (a) shall remain available until expended.’’. 
H. R. 2419—374 

Subtitle D—Boundary Adjustments and 

Land Conveyance Provisions 

SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT. 

(a) IN GENERAL.—The boundary of the Green Mountain 

National Forest is modified to include the 13 designated expansion 

units as generally depicted on the forest maps entitled ‘‘Green 

Mountain Expansion Area Map I’’ and ‘‘Green Mountain Expansion 

Area Map II’’ and dated February 20, 2002 (copies of which shall 

be on file and available for public inspection in the Office of the 

Chief of the Forest Service, Washington, District of Columbia), 

and more particularly described according to the site specific maps 

and legal descriptions on file in the office of the Forest Supervisor, 

Green Mountain National Forest. 

(b) MANAGEMENT.—Federally owned land delineated on the 

maps acquired for National Forest purposes shall continue to be 

managed in accordance with the laws (including regulations) 

applicable to the National Forest System. 

(c) LAND AND WATER CONSERVATION FUND.—For the purposes 

of section 7 of the Land and Water Conservation Fund Act of 

1965 (16 U.S.C. 460 l–9), the boundaries of the Green Mountain 

National Forest, as adjusted by this section, shall be considered 

to be the boundaries of the national forest as of January 1, 1965. 

SEC. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK, 

NEW MEXICO, AND GEORGE WASHINGTON NATIONAL 

FOREST, VIRGINIA. 

(a) CHIHUAHUAN DESERT NATURE PARK CONVEYANCE.— (1) IN GENERAL.—As soon as practicable after the date 

of enactment of this Act, subject to valid existing rights and 

subsection (b), the Secretary of Agriculture shall convey to 

the Chihuahuan Desert Nature Park, Inc., a nonprofit corporation in the State of New Mexico (in this section referred to 

as the ‘‘Nature Park’’), by quitclaim deed and for no consideration, all right, title, and interest of the United States in 

and to the land described in paragraph (2) 

(2) DESCRIPTION OF LAND.— (A) IN GENERAL.—The parcel of land referred to in 

paragraph (1) consists of the approximately 935.62 acres 

of land in Dona Ana County, New Mexico, which is more 

particularly described— 

(i) as sections 17, 20, and 21 of T. 21 S., R. 2 

E., N.M.P.M.; and 

(ii) in an easement deed dated May 14, 1998, from 

the Department of Agriculture to the Nature Park. 

(B) MODIFICATIONS.—The Secretary may modify the 

description of the land under subparagraph (A) to— 

(i) correct errors in the description; or 

(ii) facilitate management of the land. 

(b) CONDITIONS.—The conveyance of land under subsection (a) 

shall be subject to— 

(1) the reservation by the United States of all mineral 

and subsurface rights to the land, including any geothermal 

resources; 
H. R. 2419—375 

(2) the condition that the Chihuahuan Desert Nature Park 

Board pay any costs relating to the conveyance; 

(3) any rights-of-way reserved by the Secretary; 

(4) a covenant or restriction in the deed to the land 

requiring that— 

(A) the land may be used only for educational or scientific purposes; and 

(B) if the land is no longer used for the purposes 

described in subparagraph (A), the land may, at the discretion of the Secretary, revert to the United States in accordance with subsection (c); and 

(5) any other terms and conditions that the Secretary determines to be appropriate. 

(c) REVERSION.—If the land conveyed under subsection (a) is 

no longer used for the purposes described in subsection (b)(4)(A), 

the land may, at the discretion of the Secretary, revert to the 

United States. If the Secretary chooses to have the land revert 

to the United States, the Secretary shall— 

(1) determine whether the land is environmentally contaminated, including contamination from hazardous wastes, hazardous substances, pollutants, contaminants, petroleum, or 

petroleum by-products; and 

(2) if the Secretary determines that the land is environmentally contaminated, the Nature Park, the successor to the 

Nature Park, or any other person responsible for the contamination shall be required to remediate the contamination. 

(d) WITHDRAWAL.—All federally owned mineral and subsurface 

rights to the land to be conveyed under subsection (a) are withdrawn 

from— 

(1) location, entry, and patent under the mining laws; 

and 

(2) the operation of the mineral leasing laws, including 

the geothermal leasing laws. 

(e) WATER RIGHTS.—Nothing in subsection (a) authorizes the 

conveyance of water rights to the Nature Park. 

(f) GEORGE WASHINGTON NATIONAL FOREST CONVEYANCE, VIRGINIA.— 

(1) CONVEYANCE REQUIRED.—The Secretary of Agriculture 

shall convey, without consideration, to the Central Advent 

Christian Church of Alleghany County, Virginia (in this subsection referred to as the ‘‘recipient’’), all right, title, and 

interest of the United States in and to a parcel of real property 

in the George Washington National Forest, Alleghany County, 

Virginia, consisting of not more than 8 acres, including a cemetery encompassing approximately 6 acres designated as an 

area of special use for the recipient, and depicted on the Forest 

Service map showing tract G–2032c and dated August 20, 2002, 

and the Forest Service map showing the area of special use 

and dated March 14, 2001. 

(2) CONDITION OF CONVEYANCE.—The conveyance under 

this subsection shall be subject to the condition that the 

recipient accept the real property described in paragraph (1) 

in its condition at the time of the conveyance, commonly known 

as conveyance ‘‘as is’’. 

(3) DESCRIPTION OF PROPERTY.—The exact acreage and 

legal description of the real property to be conveyed under 

this subsection shall be determined by a survey satisfactory 
H. R. 2419—376 

to the Secretary. The cost of the survey shall be borne by 

the recipient. 

(4) ADDITIONAL TERMS AND CONDITIONS.—The Secretary 

may require such additional terms and conditions in connection 

with the conveyance under this subsection as the Secretary 

considers appropriate to protect the interests of the United 

States. 

SEC. 8303. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND, 

VERMONT. 

(a) DEFINITIONS.—In this section: 

(1) BROMLEY.—The term ‘‘Bromley’’ means Bromley Mountain Ski Resort, Inc. 

(2) MAP.—The term ‘‘map’’ means the map entitled ‘‘Proposed Bromley Land Sale or Exchange’’ and dated April 7, 

2004. 

(3) STATE.—The term ‘‘State’’ means the State of Vermont. 

(b) SALE OR EXCHANGE OF GREEN MOUNTAIN NATIONAL FOREST

LAND.— (1) IN GENERAL.—The Secretary of Agriculture may, under 

any terms and conditions that the Secretary may prescribe, 

sell or exchange any right, title, and interest of the United 

States in and to the parcels of National Forest System land 

described in paragraph (2). 

(2) DESCRIPTION OF LAND.—The parcels of National Forest 

System land referred to in paragraph (1) are the 5 parcels 

of land in Bennington County in the State, as generally depicted 

on the map. 

(3) MAP AND LEGAL DESCRIPTIONS.— (A) IN GENERAL.—The map shall be on file and available for public inspection in— 

(i) the office of the Chief of the Forest Service; 

and 

(ii) the office of the Supervisor of the Green Mountain National Forest. 

(B) MODIFICATIONS.—The Secretary may modify the 

map and legal descriptions to— 

(i) correct technical errors; or 

(ii) facilitate the conveyance under paragraph (1). 

(4) CONSIDERATION.—Consideration for the sale or 

exchange of land described in paragraph (2)— 

(A) shall be equal to an amount that is not less than 

the fair market value of the land sold or exchanged; and 

(B) may be in the form of cash, land, or a combination 

of cash and land. 

(5) APPRAISALS.—Any appraisal carried out to facilitate 

the sale or exchange of land under paragraph (1) shall conform 

with the Uniform Appraisal Standards for Federal Land 

Acquisitions. 

(6) METHODS OF SALE.— 

(A) CONVEYANCE TO BROMLEY.— 

(i) IN GENERAL.—Before soliciting offers under 

subparagraph (B), the Secretary shall offer to convey 

to Bromley the land described in paragraph (2). 

(ii) CONTRACT DEADLINE.—If Bromley accepts the 

offer under clause (i), the Secretary and Bromley shall 

have not more than 180 days after the date on which 
H. R. 2419—377 

any environmental analyses with respect to the land 

are completed to enter into a contract for the sale 

or exchange of the land. 

(B) PUBLIC OR PRIVATE SALE.—If the Secretary and 

Bromley do not enter into a contract for the sale or 

exchange of the land by the date specified in subparagraph 

(A)(ii), the Secretary may sell or exchange the land at 

public or private sale (including auction), in accordance 

with such terms, conditions, and procedures as the Secretary determines to be in the public interest. 

(C) REJECTION OF OFFERS.—The Secretary may reject 

any offer received under this paragraph if the Secretary 

determines that the offer is not adequate or is not in 

the public interest. 

(D) BROKERS.—In any sale or exchange of land under 

this subsection, the Secretary may— 

(i) use a real estate broker or other third party; 

and 

(ii) pay the real estate broker or third party a 

commission in an amount comparable to the amounts 

of commission generally paid for real estate transactions in the area. 

(7) CASH EQUALIZATION.—Notwithstanding section 206(b) 

of the Federal Land Policy and Management Act of 1976 (43 

U.S.C. 1716(b)), the Secretary may accept a cash equalization 

payment in excess of 25 percent of the value of any Federal 

land exchanged under this section. 

(c) DISPOSITION OF PROCEEDS.— (1) IN GENERAL.—The Secretary shall deposit the net proceeds from a sale or exchange under this section in the fund 

established under Public Law 90–171 (16 U.S.C. 484a) (commonly known as the ‘‘Sisk Act’’). 

(2) USE.—Amounts deposited under paragraph (1) shall 

be available to the Secretary until expended, without further 

appropriation, for— 

(A) the location and relocation of the Appalachian 

National Scenic Trail and the Long National Recreation 

Trail in the State; 

(B) the acquisition of land and interests in land by 

the Secretary for National Forest System purposes within 

the boundary of the Green Mountain National Forest, 

including land for and adjacent to the Appalachian National 

Scenic Trail and the Long National Recreation Trail; 

(C) the acquisition of wetland or an interest in wetland 

within the boundary of the Green Mountain National 

Forest to offset the loss of wetland from the parcels sold 

or exchanged; and 

(D) the payment of direct administrative costs incurred 

in carrying out this section. 

(3) LIMITATION.—Amounts deposited under paragraph (1) 

shall not— 

(A) be paid or distributed to the State or counties 

or towns in the State under any provision of law; or 

(B) be considered to be money received from units 

of the National Forest System for purposes of— 

(i) the Act of May 23, 1908 (16 U.S.C. 500); or 

(ii) the Act of March 4, 1913 (16 U.S.C. 501). 
H. R. 2419—378 

(4) PROHIBITION OF TRANSFER OR REPROGRAMMING.— 

Amounts deposited under paragraph (1) shall not be subject 

to transfer or reprogramming for wildfire management or any 

other emergency purposes. 

(d) ACQUISITION OF LAND.—The Secretary may acquire, using 

funds made available under subsection (c) or otherwise made available for acquisition, land or an interest in land for National Forest 

System purposes within the boundary of the Green Mountain 

National Forest. 

(e) EXEMPTION FROM CERTAIN LAWS.—Subtitle I of title 40, 

United States Code, shall not apply to any sale or exchange of 

National Forest System land under this section. 

Subtitle E—Miscellaneous Provisions 

SEC. 8401. QUALIFYING TIMBER CONTRACT OPTIONS. 

(a) DEFINITIONS.—In this section: 

(1) AUTHORIZED PRODUCER PRICE INDEX.—The term 

‘‘authorized Producer Price Index’’ includes— 

(A) the softwood commodity index (code number WPU 

0811); 

(B) the hardwood commodity index (code number WPU 

0812); 

(C) the wood chip index (code number PCU 

3211133211135); and 

(D) any other subsequent comparable index, as established by the Bureau of Labor Statistics of the Department 

of Labor and utilized by the Secretary of Agriculture. 

(2) QUALIFYING CONTRACT.—The term ‘‘qualifying contract’’ 

means a contract for the sale of timber on National Forest 

System land— 

(A) that was awarded during the period beginning 

on July 1, 2004, and ending on December 31, 2006; 

(B) for which there is unharvested volume remaining; 

(C) for which, not later than 90 days after the date 

of enactment of this Act, the timber purchaser makes a 

written request to the Secretary for one or more of the 

options described in subsection (b); 

(D) that is not a salvage sale; 

(E) for which the Secretary determines there is not 

an urgent need to harvest due to deteriorating timber 

conditions that developed after the award of the contract; 

and 

(F) that is not in breach or in default. 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Agriculture, acting through the Chief of the Forest Service. 

(b) OPTIONS FOR QUALIFYING CONTRACTS.— (1) CANCELLATION OR RATE REDETERMINATION.—Notwithstanding any other provision of law, if the rate at which a 

qualifying contract would be advertised as of the date of enactment of this Act is at least 50 percent less than the sum 

of the original bid rates for all of the species of timber that 

are the subject of the qualifying contract, the Secretary may, 

at the sole discretion of the Secretary— 

(A) cancel the qualifying contract if the timber purchaser— 
H. R. 2419—379 

(i) pays 30 percent of the total value of the timber 

remaining in the qualifying contract based on bid rates; 

(ii) completes each contractual obligation 

(including the removal of downed timber, the completion of road work, and the completion of erosion control 

work) of the timber purchaser with respect to each 

unit on which harvest has begun to a logical stopping 

point, as determined by the Secretary after consultation with the timber purchaser; and 

(iii) terminates its rights under the qualifying contract; or 

(B) modify the qualifying contract to redetermine the 

current contract rate of the qualifying contract to equal 

the sum obtained by adding— 

(i) 25 percent of the bid premium on the qualifying 

contract; and 

(ii) the rate at which the qualifying contract would 

be advertised as of the date of enactment of this Act. 

(2) SUBSTITUTION OF INDEX.— (A) SUBSTITUTION.—Notwithstanding any other provision of law, the Secretary may, at the sole discretion of 

the Secretary, substitute the Producer Price Index specified 

in the qualifying contract of a timber purchaser if the 

timber purchaser identifies— 

(i) the products the timber purchaser intends to 

produce from the timber harvested under the qualifying contract; and 

(ii) a substitute index from an authorized Producer 

Price Index that more accurately represents the 

predominant product identified in clause (i) for which 

there is an index. 

(B) RATE REDETERMINATION FOLLOWING SUBSTITUTION

OF INDEX.—If the Secretary substitutes the Producer Price 

Index of a qualifying contract under subparagraph (A), 

the Secretary may, at the sole discretion of the Secretary, 

modify the qualifying contract to provide for— 

(i) an emergency rate redetermination under the 

terms of the contract; or 

(ii) a rate redetermination under paragraph (1)(B). 

(C) LIMITATION ON MARKET-RELATED CONTRACT TERM

ADDITION; PERIODIC PAYMENTS.—Notwithstanding any other 

provision of law, if the Secretary substitutes the Producer 

Price Index of a qualifying contract under subparagraph 

(A), the Secretary may, at the sole discretion of the Secretary, modify the qualifying contract— 

(i) to adjust the term in accordance with the 

market-related contract term addition provision in the 

qualifying contract and section 223.52 of title 36, Code 

of Federal Regulations, as in effect on the date of 

the adjustment, but only if the drastic reduction criteria in such section are met for 2 or more consecutive 

calendar year quarters beginning with the calendar 

quarter in which the Secretary substitutes the Producer Price Index under subparagraph (A); and 

(ii) to adjust the periodic payments required under 

the contract in accordance with applicable law and 

policies. 
H. R. 2419—380 

(3) CONTRACTS USING HARDWOOD LUMBER INDEX.—With 

respect to a qualifying contract using the hardwood commodity 

index referred to in subsection (a)(1)(B) for which the Secretary 

does not substitute the Producer Price Index under paragraph 

(2), the Secretary may, at the sole discretion of the Secretary— 

(A) extend the contract term for a 1-year period beginning on the current contract termination date; and 

(B) adjust the periodic payments required under the 

contract in accordance with applicable law and policies. 

(c) EXTENSION OF MARKET-RELATED CONTRACT TERM ADDITION

TIME LIMIT FOR CERTAIN CONTRACTS.—Notwithstanding any other 

provision of law, upon the written request of a timber purchaser, 

the Secretary may, at the sole discretion of the Secretary, modify 

a timber sale contract (including a qualifying contract) awarded 

to the purchaser before January 1, 2007, to adjust the term of 

the contract in accordance with the market-related contract term 

addition provision in the contract and section 223.52 of title 36, 

Code of Federal Regulations, as in effect on the date of the modification, except that the Secretary may add no more than 4 years 

to the original contract length. 

(d) EFFECT OF OPTIONS.— (1) NO SURRENDER OF CLAIMS.—Operation of this section 

shall not have the effect of surrendering any claim by the 

United States against any timber purchaser that arose— 

(A) under a qualifying contract before the date on 

which the Secretary cancels the contract or redetermines 

the rate under subsection (b)(1), substitutes a Producer 

Price Index under subsection (b)(2), or modifies the contract 

under subsection (b)(3); or 

(B) under a timber sale contract, including a qualifying 

contract, before the date on which the Secretary adjusts 

the contract term under subsection (c). 

(2) RELEASE OF LIABILITY.—In the written request for any 

option provided under subsections (b) and (c), a timber purchaser shall release the United States from all liability, 

including further consideration or compensation, resulting 

from— 

(A) the cancellation of a qualifying contract of the 

purchaser or rate redetermination under subsection (b)(1), 

the substitution of a Producer Price Index under subsection 

(b)(2), the modification of the contract under subsection 

(b)(3) or a determination by the Secretary not to provide 

the cancellation, redetermination, substitution, or modification; or 

(B) the modification of the term of a timber sale contract (including a qualifying contract) of the purchaser 

under subsection (c) or a determination by the Secretary 

not to provide the modification. 

(3) LIMITATION.—Subject to subsection (b)(1)(A), the cancellation of a qualifying contract by the Secretary under subsection (b)(1) shall release the timber purchaser from further 

obligation under the canceled contract. 

SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND 

NATIONAL RESOURCES LEADERSHIP PROGRAM. 

(a) DEFINITION OF HISPANIC-SERVING INSTITUTION.—In this section, the term ‘‘Hispanic-serving institution’’ has the meaning given 
H. R. 2419—381 

that term in section 502(a)(5) of the Higher Education Act of 1965 

(20 U.S.C. 1101a(a)(5)). 

(b) GRANT AUTHORITY.—The Secretary of Agriculture may make 

grants, on a competitive basis, to Hispanic-serving institutions for 

the purpose of establishing an undergraduate scholarship program 

to assist in the recruitment, retention, and training of Hispanics 

and other under-represented groups in forestry and related fields. 

(c) USE OF GRANT FUNDS.—Grants made under this section 

shall be used to recruit, retain, train, and develop professionals 

to work in forestry and related fields with Federal agencies, such 

as the Forest Service, State agencies, and private-sector entities. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary for each of fiscal years 2008 

through 2012 such sums as may be necessary to carry out this 

section. 

TITLE IX—ENERGY 

SEC. 9001. ENERGY. 

(a) IN GENERAL.—Title IX of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended to 

read as follows: 

‘‘TITLE IX—ENERGY 

‘‘SEC. 9001. DEFINITIONS. 

‘‘Except as otherwise provided, in this title: 

‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the 

Administrator of the Environmental Protection Agency. 

‘‘(2) ADVISORY COMMITTEE.—The term ‘Advisory Committee’ 

means the Biomass Research and Development Technical 

Advisory Committee established by section 9008(d)(1). 

‘‘(3) ADVANCED BIOFUEL.— 

‘‘(A) IN GENERAL.—The term ‘advanced biofuel’ means 

fuel derived from renewable biomass other than corn kernel 

starch. 

‘‘(B) INCLUSIONS.—Subject to subparagraph (A), the 

term ‘advanced biofuel’ includes— 

‘‘(i) biofuel derived from cellulose, hemicellulose, 

or lignin; 

‘‘(ii) biofuel derived from sugar and starch (other 

than ethanol derived from corn kernel starch); 

‘‘(iii) biofuel derived from waste material, including 

crop residue, other vegetative waste material, animal 

waste, food waste, and yard waste; 

‘‘(iv) diesel-equivalent fuel derived from renewable 

biomass, including vegetable oil and animal fat; 

‘‘(v) biogas (including landfill gas and sewage waste 

treatment gas) produced through the conversion of 

organic matter from renewable biomass; 

‘‘(vi) butanol or other alcohols produced through 

the conversion of organic matter from renewable biomass; and 

‘‘(vii) other fuel derived from cellulosic biomass. 
H. R. 2419—382 

‘‘(4) BIOBASED PRODUCT.—The term ‘biobased product’ 

means a product determined by the Secretary to be a commercial or industrial product (other than food or feed) that is— 

‘‘(A) composed, in whole or in significant part, of 

biological products, including renewable domestic agricultural materials and forestry materials; or 

‘‘(B) an intermediate ingredient or feedstock. 

‘‘(5) BIOFUEL.—The term ‘biofuel’ means a fuel derived 

from renewable biomass. 

‘‘(6) BIOMASS CONVERSION FACILITY.—The term ‘biomass 

conversion facility’ means a facility that converts or proposes 

to convert renewable biomass into— 

‘‘(A) heat; 

‘‘(B) power; 

‘‘(C) biobased products; or 

‘‘(D) advanced biofuels. 

‘‘(7) BIOREFINERY.—The term ‘biorefinery’ means a facility 

(including equipment and processes) that— 

‘‘(A) converts renewable biomass into biofuels and 

biobased products; and 

‘‘(B) may produce electricity. 

‘‘(8) BOARD.—The term ‘Board’ means the Biomass 

Research and Development Board established by section 

9008(c). 

‘‘(9) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 

given the term in section 4 of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b). 

‘‘(10) INSTITUTION OF HIGHER EDUCATION.—The term 

‘institution of higher education’ has the meaning given the 

term in section 102(a) of the Higher Education Act of 1965 

(20 U.S.C. 1002(a)). 

‘‘(11) INTERMEDIATE INGREDIENT OR FEEDSTOCK.—The term 

‘intermediate ingredient or feedstock’ means a material or compound made in whole or in significant part from biological 

products, including renewable agricultural materials (including 

plant, animal, and marine materials) or forestry materials, 

that are subsequently used to make a more complex compound 

or product. 

‘‘(12) RENEWABLE BIOMASS.—The term ‘renewable biomass’ 

means— 

‘‘(A) materials, pre-commercial thinnings, or invasive 

species from National Forest System land and public lands 

(as defined in section 103 of the Federal Land Policy and 

Management Act of 1976 (43 U.S.C. 1702)) that— 

‘‘(i) are byproducts of preventive treatments that 

are removed— 

‘‘(I) to reduce hazardous fuels; 

‘‘(II) to reduce or contain disease or insect 

infestation; or 

‘‘(III) to restore ecosystem health; 

‘‘(ii) would not otherwise be used for higher-value 

products; and 

‘‘(iii) are harvested in accordance with— 

‘‘(I) applicable law and land management 

plans; and 

‘‘(II) the requirements for— 
H. R. 2419—383 

‘‘(aa) old-growth maintenance, restoration, 

and management direction of paragraphs (2), 

(3), and (4) of subsection (e) of section 102 

of the Healthy Forests Restoration Act of 2003 

(16 U.S.C. 6512); and 

‘‘(bb) large-tree retention of subsection (f) 

of that section; or 

‘‘(B) any organic matter that is available on a renewable or recurring basis from non-Federal land or land 

belonging to an Indian or Indian tribe that is held in 

trust by the United States or subject to a restriction against 

alienation imposed by the United States, including— 

‘‘(i) renewable plant material, including— 

‘‘(I) feed grains; 

‘‘(II) other agricultural commodities; 

‘‘(III) other plants and trees; and 

‘‘(IV) algae; and 

‘‘(ii) waste material, including— 

‘‘(I) crop residue; 

‘‘(II) other vegetative waste material (including 

wood waste and wood residues); 

‘‘(III) animal waste and byproducts (including 

fats, oils, greases, and manure); and 

‘‘(IV) food waste and yard waste. 

‘‘(13) RENEWABLE ENERGY.—The term ‘renewable energy’ 

means energy derived from— 

‘‘(A) a wind, solar, renewable biomass, ocean (including 

tidal, wave, current, and thermal), geothermal, or hydroelectric source; or 

‘‘(B) hydrogen derived from renewable biomass or water 

using an energy source described in subparagraph (A). 

‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture. 

‘‘SEC. 9002. BIOBASED MARKETS PROGRAM. 

‘‘(a) FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.— 

‘‘(1) DEFINITION OF PROCURING AGENCY.—In this subsection, 

the term ‘procuring agency’ means— 

‘‘(A) any Federal agency that is using Federal funds 

for procurement; or 

‘‘(B) a person that is a party to a contract with any 

Federal agency, with respect to work performed under such 

a contract. 

‘‘(2) PROCUREMENT PREFERENCE.— 

‘‘(A) IN GENERAL.— 

‘‘(i) PROCURING AGENCY DUTIES.—Except as provided in clause (ii) and subparagraph (B), after the 

date specified in applicable guidelines prepared pursuant to paragraph (3), each procuring agency shall— 

‘‘(I) establish a procurement program, develop 

procurement specifications, and procure biobased 

products identified under the guidelines described 

in paragraph (3) in accordance with this section; 

and 

‘‘(II) with respect to items described in the 

guidelines, give a procurement preference to those 

items that— 
H. R. 2419—384 

‘‘(aa) are composed of the highest percentage of biobased products practicable; or 

‘‘(bb) comply with the regulations issued 

under section 103 of Public Law 100–556 (42 

U.S.C. 6914b–1). 

‘‘(ii) EXCEPTION.—The requirements of clause (i)(I) 

to establish a procurement program and develop 

procurement specifications shall not apply to a person 

described in paragraph (1)(B). 

‘‘(B) FLEXIBILITY.—Notwithstanding subparagraph (A), 

a procuring agency may decide not to procure items 

described in that subparagraph if the procuring agency 

determines that the items— 

‘‘(i) are not reasonably available within a reasonable period of time; 

‘‘(ii) fail to meet— 

‘‘(I) the performance standards set forth in 

the applicable specifications; or 

‘‘(II) the reasonable performance standards of 

the procuring agencies; or 

‘‘(iii) are available only at an unreasonable price. 

‘‘(C) MINIMUM REQUIREMENTS.—Each procurement program required under this subsection shall, at a minimum— 

‘‘(i) be consistent with applicable provisions of Federal procurement law; 

‘‘(ii) ensure that items composed of biobased products will be purchased to the maximum extent practicable; 

‘‘(iii) include a component to promote the procurement program; 

‘‘(iv) provide for an annual review and monitoring 

of the effectiveness of the procurement program; and 

‘‘(v) adopt 1 of the 2 polices described in subparagraph (D) or (E), or a policy substantially equivalent 

to either of those policies. 

‘‘(D) CASE-BY-CASE POLICY.— ‘‘(i) IN GENERAL.—Subject to subparagraph (B) and 

except as provided in clause (ii), a procuring agency 

adopting the case-by-case policy shall award a contract 

to the vendor offering an item composed of the highest 

percentage of biobased products practicable. 

‘‘(ii) EXCEPTION.—Subject to subparagraph (B), an 

agency adopting the policy described in clause (i) may 

make an award to a vendor offering items with less 

than the maximum biobased products content. 

‘‘(E) MINIMUM CONTENT STANDARDS.—Subject to 

subparagraph (B), a procuring agency adopting the minimum content standards policy shall establish minimum 

biobased products content specifications for awarding contracts in a manner that ensures that the biobased products 

content required is consistent with this subsection. 

‘‘(F) CERTIFICATION.—After the date specified in any 

applicable guidelines prepared pursuant to paragraph (3), 

contracting offices shall require that vendors certify that 

the biobased products to be used in the performance of 

the contract will comply with the applicable specifications 

or other contractual requirements. 
H. R. 2419—385 

‘‘(3) GUIDELINES.— 

‘‘(A) IN GENERAL.—The Secretary, after consultation 

with the Administrator, the Administrator of General Services, and the Secretary of Commerce (acting through the 

Director of the National Institute of Standards and Technology), shall prepare, and from time to time revise, guidelines for the use of procuring agencies in complying with 

the requirements of this subsection. 

‘‘(B) REQUIREMENTS.—The guidelines under this paragraph shall— 

‘‘(i) designate those items (including finished products) that are or can be produced with biobased products (including biobased products for which there is 

only a single product or manufacturer in the category) 

that will be subject to the preference described in paragraph (2); 

‘‘(ii) designate those intermediate ingredients and 

feedstocks that are or can be used to produce items 

that will be subject to the preference described in paragraph (2); 

‘‘(iii) automatically designate items composed of 

intermediate ingredients and feedstocks designated 

under clause (ii), if the content of the designated intermediate ingredients and feedstocks exceeds 50 percent 

of the item (unless the Secretary determines a different 

composition percentage is appropriate); 

‘‘(iv) set forth recommended practices with respect 

to the procurement of biobased products and items 

containing such materials; 

‘‘(v) provide information as to the availability, relative price, performance, and environmental and public 

health benefits of such materials and items; and 

‘‘(vi) take effect on the date established in the 

guidelines, which may not exceed 1 year after publication. 

‘‘(C) INFORMATION PROVIDED.—Information provided 

pursuant to subparagraph (B)(v) with respect to a material 

or item shall be considered to be provided for another 

item made with the same material or item. 

‘‘(D) PROHIBITION.—Guidelines issued under this paragraph may not require a manufacturer or vendor of 

biobased products, as a condition of the purchase of 

biobased products from the manufacturer or vendor, to 

provide to procuring agencies more data than would be 

required to be provided by other manufacturers or vendors 

offering products for sale to a procuring agency, other than 

data confirming the biobased content of a product. 

‘‘(E) QUALIFYING PURCHASES.—The guidelines shall 

apply with respect to any purchase or acquisition of a 

procurement item for which— 

‘‘(i) the purchase price of the item exceeds $10,000; 

or 

‘‘(ii) the quantity of the items or of functionallyequivalent items purchased or acquired during the preceding fiscal year was at least $10,000. 

‘‘(4) ADMINISTRATION.— 
H. R. 2419—386 

‘‘(A) OFFICE OF FEDERAL PROCUREMENT POLICY.—The 

Office of Federal Procurement Policy, in cooperation with 

the Secretary, shall— 

‘‘(i) coordinate the implementation of this subsection with other policies for Federal procurement; 

‘‘(ii) annually collect the information required to 

be reported under subparagraph (B) and make the 

information publicly available; 

‘‘(iii) take a leading role in informing Federal agencies concerning, and promoting the adoption of and 

compliance with, procurement requirements for 

biobased products by Federal agencies; and 

‘‘(iv) not less than once every 2 years, submit to 

Congress a report that— 

‘‘(I) describes the progress made in carrying 

out this subsection; and 

‘‘(II) contains a summary of the information 

reported pursuant to subparagraph (B). 

‘‘(B) OTHER AGENCIES.—To assist the Office of Federal 

Procurement Policy in carrying out subparagraph (A)— 

‘‘(i) each procuring agency shall submit each year 

to the Office of Federal Procurement Policy, to the 

maximum extent practicable, information concerning— 

‘‘(I) actions taken to implement paragraph (2); 

‘‘(II) the results of the annual review and monitoring program established under paragraph 

(2)(C)(iv); 

‘‘(III) the number and dollar value of contracts 

entered into during the year that include the direct 

procurement of biobased products; 

‘‘(IV) the number of service and construction 

(including renovations) contracts entered into 

during the year that include language on the use 

of biobased products; and 

‘‘(V) the types and dollar value of biobased 

products actually used by contractors in carrying 

out service and construction (including renovations) contracts during the previous year; and 

‘‘(ii) the General Services Administration and the 

Defense Logistics Agency shall submit each year to 

the Office of Federal Procurement Policy information 

concerning, to the maximum extent practicable, the 

types and dollar value of biobased products purchased 

by procuring agencies. 

‘‘(C) PROCUREMENT SUBJECT TO OTHER LAW.—Any 

procurement by any Federal agency that is subject to regulations of the Administrator under section 6002 of the 

Solid Waste Disposal Act (42 U.S.C. 6962) shall not be 

subject to the requirements of this section to the extent 

that the requirements are inconsistent with the regulations. 

‘‘(b) LABELING.— 

‘‘(1) IN GENERAL.—The Secretary, in consultation with the 

Administrator, shall establish a voluntary program under which 

the Secretary authorizes producers of biobased products to use 

the label ‘USDA Certified Biobased Product’. 

‘‘(2) ELIGIBILITY CRITERIA.— 
H. R. 2419—387 

‘‘(A) CRITERIA.— 

‘‘(i) IN GENERAL.—Not later than 90 days after 

the date of the enactment of the Food, Conservation, 

and Energy Act of 2008 and except as provided in 

clause (ii), the Secretary, in consultation with the 

Administrator and representatives from small and 

large businesses, academia, other Federal agencies, 

and such other persons as the Secretary considers 

appropriate, shall issue criteria (as of the date of enactment of that Act) for determining which products may 

qualify to receive the label under paragraph (1). 

‘‘(ii) EXCEPTION.—Clause (i) shall not apply to final 

criteria that have been issued (as of the date of enactment of that Act) by the Secretary. 

‘‘(B) REQUIREMENTS.—Criteria issued under subparagraph (A) shall— 

‘‘(i) encourage the purchase of products with the 

maximum biobased content; 

‘‘(ii) provide that the Secretary may designate as 

biobased for the purposes of the voluntary program 

established under this subsection finished products 

that contain significant portions of biobased materials 

or components; and 

‘‘(iii) to the maximum extent practicable, be consistent with the guidelines issued under subsection 

(a)(3). 

‘‘(3) USE OF LABEL.—The Secretary shall ensure that the 

label referred to in paragraph (1) is used only on products 

that meet the criteria issued pursuant to paragraph (2). 

‘‘(c) RECOGNITION.—The Secretary shall— 

‘‘(1) establish a program to recognize Federal agencies and 

private entities that use a substantial amount of biobased products; and 

‘‘(2) encourage Federal agencies to establish incentives programs to recognize Federal employees or contractors that make 

exceptional contributions to the expanded use of biobased products. 

‘‘(d) LIMITATION.—Nothing in this section shall apply to the 

procurement of motor vehicle fuels, heating oil, or electricity. 

‘‘(e) INCLUSION.—Effective beginning on the date that is 90 

days after the date of enactment of the Food, Conservation, and 

Energy Act of 2008, the Architect of the Capitol, the Sergeant 

at Arms of the Senate, and the Chief Administrative Officer of 

the House of Representatives shall consider the biobased product 

designations made under this section in making procurement 

decisions for the Capitol Complex. 

‘‘(f) NATIONAL TESTING CENTER REGISTRY.—The Secretary shall 

establish a national registry of testing centers for biobased products 

that will serve biobased product manufacturers. 

‘‘(g) REPORTS.— 

‘‘(1) IN GENERAL.—Not later than 180 days after the date 

of enactment of the Food, Conservation, and Energy Act of 

2008 and each year thereafter, the Secretary shall submit to 

Congress a report on the implementation of this section. 

‘‘(2) CONTENTS.—The report shall include— 

‘‘(A) a comprehensive management plan that establishes tasks, milestones, and timelines, organizational roles 
H. R. 2419—388 

and responsibilities, and funding allocations for fully implementing this section; and 

‘‘(B) information on the status of implementation of— 

‘‘(i) item designations (including designation of 

intermediate ingredients and feedstocks); and 

‘‘(ii) the voluntary labeling program established 

under subsection (b). 

‘‘(h) FUNDING.— 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to provide mandatory funding for biobased products testing and labeling as 

required to carry out this section— 

‘‘(A) $1,000,000 for fiscal year 2008; and 

‘‘(B) $2,000,000 for each of fiscal years 2009 through 

2012. 

‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 

funds made available to carry out this section, there is authorized to be appropriated to carry out this section $2,000,000 

for each of fiscal years 2009 through 2012. 

‘‘SEC. 9003. BIOREFINERY ASSISTANCE. 

‘‘(a) PURPOSE.—The purpose of this section is to assist in the 

development of new and emerging technologies for the development 

of advanced biofuels, so as to— 

‘‘(1) increase the energy independence of the United States; 

‘‘(2) promote resource conservation, public health, and the 

environment; 

‘‘(3) diversify markets for agricultural and forestry products 

and agriculture waste material; and 

‘‘(4) create jobs and enhance the economic development 

of the rural economy. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an 

individual, entity, Indian tribe, or unit of State or local government, including a corporation, farm cooperative, farmer cooperative organization, association of agricultural producers, 

National Laboratory, institution of higher education, rural electric cooperative, public power entity, or consortium of any of 

those entities. 

‘‘(2) ELIGIBLE TECHNOLOGY.—The term ‘eligible technology’ 

means, as determined by the Secretary— 

‘‘(A) a technology that is being adopted in a viable 

commercial-scale operation of a biorefinery that produces 

an advanced biofuel; and 

‘‘(B) a technology not described in subparagraph (A) 

that has been demonstrated to have technical and economic 

potential for commercial application in a biorefinery that 

produces an advanced biofuel. 

‘‘(c) ASSISTANCE.—The Secretary shall make available to eligible 

entities— 

‘‘(1) grants to assist in paying the costs of the development 

and construction of demonstration-scale biorefineries to demonstrate the commercial viability of 1 or more processes for 

converting renewable biomass to advanced biofuels; and 

‘‘(2) guarantees for loans made to fund the development, 

construction, and retrofitting of commercial-scale biorefineries 

using eligible technology. 
H. R. 2419—389 

‘‘(d) GRANTS.— 

‘‘(1) COMPETITIVE BASIS.—The Secretary shall award grants 

under subsection (c)(1) on a competitive basis. 

‘‘(2) SELECTION CRITERIA.— 

‘‘(A) IN GENERAL.—In approving grant applications, the 

Secretary shall establish a priority scoring system that 

assigns priority scores to each application and only approve 

applications that exceed a specified minimum, as determined by the Secretary. 

‘‘(B) FEASIBILITY.—In approving a grant application, 

the Secretary shall determine the technical and economic 

feasibility of the project based on a feasibility study of 

the project described in the application conducted by an 

independent third party. 

‘‘(C) SCORING SYSTEM.—In determining the priority 

scoring system, the Secretary shall consider— 

‘‘(i) the potential market for the advanced biofuel 

and the byproducts produced; 

‘‘(ii) the level of financial participation by the 

applicant, including support from non-Federal and private sources; 

‘‘(iii) whether the applicant is proposing to use 

a feedstock not previously used in the production of 

advanced biofuels; 

‘‘(iv) whether the applicant is proposing to work 

with producer associations or cooperatives; 

‘‘(v) whether the applicant has established that 

the adoption of the process proposed in the application 

will have a positive impact on resource conservation, 

public health, and the environment; 

‘‘(vi) the potential for rural economic development; 

‘‘(vii) whether the area in which the applicant proposes to locate the biorefinery has other similar facilities; 

‘‘(viii) whether the project can be replicated; and 

‘‘(ix) scalability for commercial use. 

‘‘(3) COST SHARING.— 

‘‘(A) LIMITS.—The amount of a grant awarded for 

development and construction of a biorefinery under subsection (c)(1) shall not exceed an amount equal to 30 percent of the cost of the project. 

‘‘(B) FORM OF GRANTEE SHARE.— 

‘‘(i) IN GENERAL.—The grantee share of the cost 

of a project may be made in the form of cash or material. 

‘‘(ii) LIMITATION.—The amount of the grantee share 

that is made in the form of material shall not exceed 

15 percent of the amount of the grantee share determined under subparagraph (A). 

‘‘(e) LOAN GUARANTEES.— 

‘‘(1) SELECTION CRITERIA.— 

‘‘(A) IN GENERAL.—In approving loan guarantee 

applications, the Secretary shall establish a priority scoring 

system that assigns priority scores to each application and 

only approve applications that exceed a specified minimum, 

as determined by the Secretary. 
H. R. 2419—390 

‘‘(B) FEASIBILITY.—In approving a loan guarantee 

application, the Secretary shall determine the technical 

and economic feasibility of the project based on a feasibility 

study of the project described in the application conducted 

by an independent third party. 

‘‘(C) SCORING SYSTEM.—In determining the priority 

scoring system for loan guarantees under subsection (c)(2), 

the Secretary shall consider— 

‘‘(i) whether the applicant has established a market 

for the advanced biofuel and the byproducts produced; 

‘‘(ii) whether the area in which the applicant proposes to place the biorefinery has other similar facilities; 

‘‘(iii) whether the applicant is proposing to use 

a feedstock not previously used in the production of 

advanced biofuels; 

‘‘(iv) whether the applicant is proposing to work 

with producer associations or cooperatives; 

‘‘(v) the level of financial participation by the 

applicant, including support from non-Federal and private sources; 

‘‘(vi) whether the applicant has established that 

the adoption of the process proposed in the application 

will have a positive impact on resource conservation, 

public health, and the environment; 

‘‘(vii) whether the applicant can establish that if 

adopted, the biofuels production technology proposed 

in the application will not have any significant negative 

impacts on existing manufacturing plants or other 

facilities that use similar feedstocks; 

‘‘(viii) the potential for rural economic development; 

‘‘(ix) the level of local ownership proposed in the 

application; and 

‘‘(x) whether the project can be replicated. 

‘‘(2) LIMITATIONS.— 

‘‘(A) MAXIMUM AMOUNT OF LOAN GUARANTEED.—The 

principal amount of a loan guaranteed under subsection 

(c)(2) may not exceed $250,000,000. 

‘‘(B) MAXIMUM PERCENTAGE OF LOAN GUARANTEED.— 

‘‘(i) IN GENERAL.—Except as otherwise provided 

in this subparagraph, a loan guaranteed under subsection (c)(2) shall be in an amount not to exceed 

80 percent of the project costs, as determined by the 

Secretary. 

‘‘(ii) OTHER DIRECT FEDERAL FUNDING.—The 

amount of a loan guaranteed for a project under subsection (c)(2) shall be reduced by the amount of other 

direct Federal funding that the eligible entity receives 

for the same project. 

‘‘(iii) AUTHORITY TO GUARANTEE THE LOAN.—The 

Secretary may guarantee up to 90 percent of the principal and interest due on a loan guaranteed under 

subsection (c)(2). 

‘‘(C) LOAN GUARANTEE FUND DISTRIBUTION.—Of the 

funds made available for loan guarantees for a fiscal year 

under subsection (h), 50 percent of the funds shall be 
H. R. 2419—391 

reserved for obligation during the second half of the fiscal 

year. 

‘‘(f) CONSULTATION.—In carrying out this section, the Secretary 

shall consult with the Secretary of Energy. 

‘‘(g) CONDITION ON PROVISION OF ASSISTANCE.— 

‘‘(1) IN GENERAL.—As a condition of receiving a grant or 

loan guarantee under this section, an eligible entity shall 

ensure that all laborers and mechanics employed by contractors 

or subcontractors in the performance of construction work 

financed, in whole or in part, with the grant or loan guarantee, 

as the case may be, shall be paid wages at rates not less 

than those prevailing on similar construction in the locality, 

as determined by the Secretary of Labor in accordance with 

sections 3141 through 3144, 3146, and 3147 of title 40, United 

States Code. 

‘‘(2) AUTHORITY AND FUNCTIONS.—The Secretary of Labor 

shall have, with respect to the labor standards described in 

paragraph (1), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App) and section 

3145 of title 40, United States Code. 

‘‘(h) FUNDING.— ‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use for the cost of 

loan guarantees under this section, to remain available until 

expended— ‘‘(A) $75,000,000 for fiscal year 2009; and 

‘‘(B) $245,000,000 for fiscal year 2010. 

‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 

funds made available to carry out this section, there is authorized to be appropriated to carry out this section $150,000,000 

for each of fiscal years 2009 through 2012. 

‘‘SEC. 9004. REPOWERING ASSISTANCE. 

‘‘(a) IN GENERAL.—The Secretary shall carry out a program 

to encourage biorefineries in existence on the date of enactment 

of the Food, Conservation, and Energy Act of 2008 to replace fossil 

fuels used to produce heat or power to operate the biorefineries 

by making payments for— 

‘‘(1) the installation of new systems that use renewable 

biomass; or 

‘‘(2) the new production of energy from renewable biomass. 

‘‘(b) PAYMENTS.— 

‘‘(1) IN GENERAL.—The Secretary may make payments 

under this section to any biorefinery that meets the requirements of this section for a period determined by the Secretary. 

‘‘(2) AMOUNT.—The Secretary shall determine the amount 

of payments to be made under this section to a biorefinery 

after considering— 

‘‘(A) the quantity of fossil fuels a renewable biomass 

system is replacing; 

‘‘(B) the percentage reduction in fossil fuel used by 

the biorefinery that will result from the installation of 

the renewable biomass system; and 

‘‘(C) the cost and cost effectiveness of the renewable 

biomass system. 

‘‘(c) ELIGIBILITY.—To be eligible to receive a payment under 

this section, a biorefinery shall demonstrate to the Secretary that 
H. R. 2419—392 

the renewable biomass system of the biorefinery is feasible based 

on an independent feasibility study that takes into account the 

economic, technical and environmental aspects of the system. 

‘‘(d) FUNDING.— 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to make payments 

under this section $35,000,000 for fiscal year 2009, to remain 

available until expended. 

‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 

funds made available to carry out this section, there is authorized to be appropriated to carry out this section $15,000,000 

for each of fiscal years 2009 through 2012. 

‘‘SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS. 

‘‘(a) DEFINITION OF ELIGIBLE PRODUCER.—In this section, the 

term ‘eligible producer’ means a producer of advanced biofuels. 

‘‘(b) PAYMENTS.—The Secretary shall make payments to eligible 

producers to support and ensure an expanding production of 

advanced biofuels. 

‘‘(c) CONTRACTS.—To receive a payment, an eligible producer 

shall— 

‘‘(1) enter into a contract with the Secretary for production 

of advanced biofuels; and 

‘‘(2) submit to the Secretary such records as the Secretary 

may require as evidence of the production of advanced biofuels. 

‘‘(d) BASIS FOR PAYMENTS.—The Secretary shall make payments 

under this section to eligible producers based on— 

‘‘(1) the quantity and duration of production by the eligible 

producer of an advanced biofuel; 

‘‘(2) the net nonrenewable energy content of the advanced 

biofuel, if sufficient data is available, as determined by the 

Secretary; and 

‘‘(3) other appropriate factors, as determined by the Secretary. 

‘‘(e) EQUITABLE DISTRIBUTION.—The Secretary may limit the 

amount of payments that may be received by a single eligible 

producer under this section in order to distribute the total amount 

of funding available in an equitable manner. 

‘‘(f) OTHER REQUIREMENTS.—To receive a payment under this 

section, an eligible producer shall meet any other requirements 

of Federal and State law (including regulations) applicable to the 

production of advanced biofuels. 

‘‘(g) FUNDING.— 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to carry out this 

section, to remain available until expended— 

‘‘(A) $55,000,000 for fiscal year 2009; 

‘‘(B) $55,000,000 for fiscal year 2010; 

‘‘(C) $85,000,000 for fiscal year 2011; and 

‘‘(D) $105,000,000 for fiscal year 2012. 

‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 

funds made available to carry out this section, there is authorized to be appropriated to carry out this section $25,000,000 

for each of fiscal years 2009 through 2012. 

‘‘(3) LIMITATION.—Of the funds provided for each fiscal 

year, not more than 5 percent of the funds shall be made 
H. R. 2419—393 

available to eligible producers for production at facilities with 

a total refining capacity exceeding 150,000,000 gallons per year. 

‘‘SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary shall, under such terms 

and conditions as the Secretary determines to be appropriate, make 

competitive grants to eligible entities to educate governmental and 

private entities that operate vehicle fleets, other interested entities 

(as determined by the Secretary), and the public about the benefits 

of biodiesel fuel use. 

‘‘(b) ELIGIBLE ENTITIES.—To receive a grant under subsection 

(b), an entity shall— 

‘‘(1) be a nonprofit organization or institution of higher 

education; 

‘‘(2) have demonstrated knowledge of biodiesel fuel production, use, or distribution; and 

‘‘(3) have demonstrated the ability to conduct educational 

and technical support programs. 

‘‘(c) CONSULTATION.—In carrying out this section, the Secretary 

shall consult with the Secretary of Energy. 

‘‘(d) FUNDING.—Of the funds of the Commodity Credit Corpora- tion, the Secretary shall use to carry out this section $1,000,000 

for each of fiscal years 2008 through 2012. 

‘‘SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary, in consultation with the 

Secretary of Energy, shall establish a Rural Energy for America 

Program to promote energy efficiency and renewable energy 

development for agricultural producers and rural small businesses 

through— 

‘‘(1) grants for energy audits and renewable energy development assistance; and 

‘‘(2) financial assistance for energy efficiency improvements 

and renewable energy systems. 

‘‘(b) ENERGY AUDITS AND RENEWABLE ENERGY DEVELOPMENT

ASSISTANCE.— 

‘‘(1) IN GENERAL.—The Secretary shall make competitive 

grants to eligible entities to provide assistance to agricultural 

producers and rural small businesses— 

‘‘(A) to become more energy efficient; and 

‘‘(B) to use renewable energy technologies and 

resources. 

‘‘(2) ELIGIBLE ENTITIES.—An eligible entity under this subsection is— 

‘‘(A) a unit of State, tribal, or local government; 

‘‘(B) a land-grant college or university or other institution of higher education; 

‘‘(C) a rural electric cooperative or public power entity; 

and 

‘‘(D) any other similar entity, as determined by the 

Secretary. 

‘‘(3) SELECTION CRITERIA.—In reviewing applications of 

eligible entities to receive grants under paragraph (1), the 

Secretary shall consider— 

‘‘(A) the ability and expertise of the eligible entity 

in providing professional energy audits and renewable 

energy assessments; 
H. R. 2419—394 

‘‘(B) the geographic scope of the program proposed 

by the eligible entity in relation to the identified need; 

‘‘(C) the number of agricultural producers and rural 

small businesses to be assisted by the program; 

‘‘(D) the potential of the proposed program to produce 

energy savings and environmental benefits; 

‘‘(E) the plan of the eligible entity for performing outreach and providing information and assistance to agricultural producers and rural small businesses on the benefits 

of energy efficiency and renewable energy development; 

and 

‘‘(F) the ability of the eligible entity to leverage other 

sources of funding. 

‘‘(4) USE OF GRANT FUNDS.—A recipient of a grant under 

paragraph (1) shall use the grant funds to assist agricultural 

producers and rural small businesses by— 

‘‘(A) conducting and promoting energy audits; and 

‘‘(B) providing recommendations and information on 

how— 

‘‘(i) to improve the energy efficiency of the operations of the agricultural producers and rural small 

businesses; and 

‘‘(ii) to use renewable energy technologies and 

resources in the operations. 

‘‘(5) LIMITATION.—Grant recipients may not use more than 

5 percent of a grant for administrative expenses. 

‘‘(6) COST SHARING.—A recipient of a grant under paragraph 

(1) that conducts an energy audit for an agricultural producer 

or rural small business under paragraph (4) shall require that, 

as a condition of the energy audit, the agricultural producer 

or rural small business pay at least 25 percent of the cost 

of the energy audit, which shall be retained by the eligible 

entity for the cost of the energy audit. 

‘‘(c) FINANCIAL ASSISTANCE FOR ENERGY EFFICIENCY IMPROVEMENTS AND RENEWABLE ENERGY SYSTEMS.— 

‘‘(1) IN GENERAL.—In addition to any similar authority, 

the Secretary shall provide loan guarantees and grants to agricultural producers and rural small businesses— 

‘‘(A) to purchase renewable energy systems, including 

systems that may be used to produce and sell electricity; 

and 

‘‘(B) to make energy efficiency improvements. 

‘‘(2) AWARD CONSIDERATIONS.—In determining the amount 

of a loan guarantee or grant provided under this section, the 

Secretary shall take into consideration, as applicable— 

‘‘(A) the type of renewable energy system to be purchased; 

‘‘(B) the estimated quantity of energy to be generated 

by the renewable energy system; 

‘‘(C) the expected environmental benefits of the renewable energy system; 

‘‘(D) the quantity of energy savings expected to be 

derived from the activity, as demonstrated by an energy 

audit; 

‘‘(E) the estimated period of time for the energy savings 

generated by the activity to equal the cost of the activity; 
H. R. 2419—395 

‘‘(F) the expected energy efficiency of the renewable 

energy system; and 

‘‘(G) other appropriate factors. 

‘‘(3) FEASIBILITY STUDIES.— 

‘‘(A) IN GENERAL.—The Secretary may provide assistance in the form of grants to an agricultural producer 

or rural small business to conduct a feasibility study for 

a project for which assistance may be provided under this 

subsection. 

‘‘(B) LIMITATION.—The Secretary shall use not more 

than 10 percent of the funds made available to carry out 

this subsection to provide assistance described in subparagraph (A). 

‘‘(C) AVOIDANCE OF DUPLICATIVE ASSISTANCE.—An 

entity shall be ineligible to receive assistance to carry 

out a feasibility study for a project under this paragraph 

if the entity has received other Federal or State assistance 

for a feasibility study for the project. 

‘‘(4) LIMITS.— 

‘‘(A) GRANTS.—The amount of a grant under this subsection shall not exceed 25 percent of the cost of the activity 

carried out using funds from the grant. 

‘‘(B) MAXIMUM AMOUNT OF LOAN GUARANTEES.—The 

amount of a loan guaranteed under this subsection shall 

not exceed $25,000,000. 

‘‘(C) MAXIMUM AMOUNT OF COMBINED GRANT AND LOAN

GUARANTEE.—The combined amount of a grant and loan 

guaranteed under this subsection shall not exceed 75 percent of the cost of the activity funded under this subsection. 

‘‘(d) OUTREACH.—The Secretary shall ensure, to the maximum 

extent practicable, that adequate outreach relating to this section 

is being conducted at the State and local levels. 

‘‘(e) LOWER-COST ACTIVITIES.— 

‘‘(1) LIMITATION ON USE OF FUNDS.—Except as provided 

in paragraph (2), the Secretary shall use not less than 20 

percent of the funds made available under subsection (g) to 

provide grants of $20,000 or less. 

‘‘(2) EXCEPTION.—Effective beginning on June 30 of each 

fiscal year, paragraph (1) shall not apply to funds made available under subsection (g) for the fiscal year. 

‘‘(f) REPORT.—Not later than 4 years after the date of enactment 

of the Food, Conservation, and Energy Act of 2008, the Secretary 

shall submit to Congress a report on the implementation of this 

section, including the outcomes achieved by projects funded under 

this section. 

‘‘(g) FUNDING.— 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to carry out this 

section, to remain available until expended— 

‘‘(A) $55,000,000 for fiscal year 2009; 

‘‘(B) $60,000,000 for fiscal year 2010; 

‘‘(C) $70,000,000 for fiscal year 2011; and 

‘‘(D) $70,000,000 for fiscal year 2012. 

‘‘(2) AUDIT AND TECHNICAL ASSISTANCE FUNDING.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), of the 

funds made available for each fiscal year under paragraph 
H. R. 2419—396 

(1), 4 percent shall be available to carry out subsection 

(b). 

‘‘(B) OTHER USE.—Funds not obligated under subparagraph (A) by April 1 of each fiscal year to carry out subsection (b) shall become available to carry out subsection 

(c). 

‘‘(3) DISCRETIONARY FUNDING.—In addition to any other 

funds made available to carry out this section, there is authorized to be appropriated to carry out this section $25,000,000 

for each of fiscal years 2009 through 2012. 

‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BIOBASED PRODUCT.—The term ‘biobased product’ 

means— 

‘‘(A) an industrial product (including chemicals, materials, and polymers) produced from biomass; or 

‘‘(B) a commercial or industrial product (including 

animal feed and electric power) derived in connection with 

the conversion of biomass to fuel. 

‘‘(2) DEMONSTRATION.—The term ‘demonstration’ means 

demonstration of technology in a pilot plant or semi-works 

scale facility, including a plant or facility located on a farm. 

‘‘(3) INITIATIVE.—The term ‘Initiative’ means the Biomass 

Research and Development Initiative established under subsection (e). 

‘‘(b) COOPERATION AND COORDINATION IN BIOMASS RESEARCH

AND DEVELOPMENT.— 

‘‘(1) IN GENERAL.—The Secretary of Agriculture and the 

Secretary of Energy shall coordinate policies and procedures 

that promote research and development regarding the production of biofuels and biobased products. 

‘‘(2) POINTS OF CONTACT.—To coordinate research and 

development programs and activities relating to biofuels and 

biobased products that are carried out by their respective 

departments— 

‘‘(A) the Secretary of Agriculture shall designate, as 

the point of contact for the Department of Agriculture, 

an officer of the Department of Agriculture appointed by 

the President to a position in the Department before the 

date of the designation, by and with the advice and consent 

of the Senate; and 

‘‘(B) the Secretary of Energy shall designate, as the 

point of contact for the Department of Energy, an officer 

of the Department of Energy appointed by the President 

to a position in the Department before the date of the 

designation, by and with the advice and consent of the 

Senate. 

‘‘(c) BIOMASS RESEARCH AND DEVELOPMENT BOARD.— 

‘‘(1) ESTABLISHMENT.—There is established the Biomass 

Research and Development Board to carry out the duties 

described in paragraph (3). 

‘‘(2) MEMBERSHIP.—The Board shall consist of— 

‘‘(A) the point of contacts of the Department of Energy 

and the Department of Agriculture, who shall serve as 

cochairpersons of the Board; 
H. R. 2419—397 

‘‘(B) a senior officer of each of the Department of the 

Interior, the Environmental Protection Agency, the 

National Science Foundation, and the Office of Science 

and Technology Policy, each of whom shall have a rank 

that is equivalent to the rank of the points of contact; 

and 

‘‘(C) at the option of the Secretary of Agriculture and 

the Secretary of Energy, other members appointed by the 

Secretaries (after consultation with the Board). 

‘‘(3) DUTIES.—The Board shall— 

‘‘(A) coordinate research and development activities 

relating to biofuels and biobased products— 

‘‘(i) between the Department of Agriculture and 

the Department of Energy; and 

‘‘(ii) with other departments and agencies of the 

Federal Government; 

‘‘(B) provide recommendations to the points of contact 

concerning administration of this title; 

‘‘(C) ensure that— 

‘‘(i) solicitations are open and competitive with 

awards made annually; and 

‘‘(ii) objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive, 

with no areas of special interest; and 

‘‘(D) ensure that the panel of scientific and technical 

peers assembled under subsection (e) to review proposals 

is composed predominantly of independent experts selected 

from outside the Departments of Agriculture and Energy. 

‘‘(4) FUNDING.—Each agency represented on the Board is 

encouraged to provide funds for any purpose under this section. 

‘‘(5) MEETINGS.—The Board shall meet at least quarterly. 

‘‘(d) BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL

ADVISORY COMMITTEE.— 

‘‘(1) ESTABLISHMENT.—There is established the Biomass 

Research and Development Technical Advisory Committee to 

carry out the duties described in paragraph (3). 

‘‘(2) MEMBERSHIP.— 

‘‘(A) IN GENERAL.—The Advisory Committee shall consist of— 

‘‘(i) an individual affiliated with the biofuels 

industry; 

‘‘(ii) an individual affiliated with the biobased 

industrial and commercial products industry; 

‘‘(iii) an individual affiliated with an institution 

of higher education who has expertise in biofuels and 

biobased products; 

‘‘(iv) 2 prominent engineers or scientists from 

government or academia who have expertise in biofuels 

and biobased products; 

‘‘(v) an individual affiliated with a commodity trade 

association; 

‘‘(vi) 2 individuals affiliated with environmental 

or conservation organizations; 

‘‘(vii) an individual associated with State government who has expertise in biofuels and biobased products; 
H. R. 2419—398 

‘‘(viii) an individual with expertise in energy and 

environmental analysis; 

‘‘(ix) an individual with expertise in the economics 

of biofuels and biobased products; 

‘‘(x) an individual with expertise in agricultural 

economics; 

‘‘(xi) an individual with expertise in plant biology 

and biomass feedstock development; 

‘‘(xii) an individual with expertise in agronomy, 

crop science, or soil science; and 

‘‘(xiii) at the option of the points of contact, other 

members. 

‘‘(B) APPOINTMENT.—The members of the Advisory 

Committee shall be appointed by the points of contact. 

‘‘(3) DUTIES.—The Advisory Committee shall— 

‘‘(A) advise the points of contact with respect to the 

Initiative; and 

‘‘(B) evaluate and make recommendations in writing 

to the Board regarding whether— 

‘‘(i) funds authorized for the Initiative are distributed and used in a manner that is consistent with 

the objectives, purposes, and considerations of the Initiative; 

‘‘(ii) solicitations are open and competitive with 

awards made annually; 

‘‘(iii) objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive, 

with no areas of special interest; 

‘‘(iv) the points of contact are funding proposals 

under this title that are selected on the basis of merit, 

as determined by an independent panel of scientific 

and technical peers predominantly from outside the 

Departments of Agriculture and Energy; and 

‘‘(v) activities under this title are carried out in 

accordance with this title. 

‘‘(4) COORDINATION.—To avoid duplication of effort, the 

Advisory Committee shall coordinate its activities with those 

of other Federal advisory committees working in related areas. 

‘‘(5) MEETINGS.—The Advisory Committee shall meet at 

least quarterly. 

‘‘(6) TERMS.—Members of the Advisory Committee shall 

be appointed for a term of 3 years. 

‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.— 

‘‘(1) IN GENERAL.—The Secretary of Agriculture and the 

Secretary of Energy, acting through their respective points 

of contact and in consultation with the Board, shall establish 

and carry out a Biomass Research and Development Initiative 

under which competitively awarded grants, contracts, and 

financial assistance are provided to, or entered into with, 

eligible entities to carry out research on and development and 

demonstration of— 

‘‘(A) biofuels and biobased products; and 

‘‘(B) the methods, practices, and technologies, for the 

production of biofuels and biobased products. 

‘‘(2) OBJECTIVES.—The objectives of the Initiative are to 

develop— 
H. R. 2419—399 

‘‘(A) technologies and processes necessary for abundant 

commercial production of biofuels at prices competitive with 

fossil fuels; 

‘‘(B) high-value biobased products— 

‘‘(i) to enhance the economic viability of biofuels 

and power; 

‘‘(ii) to serve as substitutes for petroleum-based 

feedstocks and products; and 

‘‘(iii) to enhance the value of coproducts produced 

using the technologies and processes; and 

‘‘(C) a diversity of economically and environmentally 

sustainable domestic sources of renewable biomass for 

conversion to biofuels, bioenergy, and biobased products. 

‘‘(3) TECHNICAL AREAS.—The Secretary of Agriculture and 

the Secretary of Energy, in consultation with the Administrator 

of the Environmental Protection Agency and heads of other 

appropriate departments and agencies (referred to in this subsection as the ‘Secretaries’), shall direct the Initiative in the 

3 following areas: 

‘‘(A) FEEDSTOCKS DEVELOPMENT.—Research, development, and demonstration activities regarding feedstocks 

and feedstock logistics (including the harvest, handling, 

transport, preprocessing, and storage) relevant to production of raw materials for conversion to biofuels and biobased 

products. 

‘‘(B) BIOFUELS AND BIOBASED PRODUCTS DEVELOPMENT.—Research, development, and demonstration activities to support— 

‘‘(i) the development of diverse cost-effective technologies for the use of cellulosic biomass in the production of biofuels and biobased products; and 

‘‘(ii) product diversification through technologies 

relevant to production of a range of biobased products 

(including chemicals, animal feeds, and cogenerated 

power) that potentially can increase the feasibility of 

fuel production in a biorefinery. 

‘‘(C) BIOFUELS DEVELOPMENT ANALYSIS.— 

‘‘(i) STRATEGIC GUIDANCE.—The development of 

analysis that provides strategic guidance for the 

application of renewable biomass technologies to 

improve sustainability and environmental quality, cost 

effectiveness, security, and rural economic development. 

‘‘(ii) ENERGY AND ENVIRONMENTAL IMPACT.— 

Development of systematic evaluations of the impact 

of expanded biofuel production on the environment 

(including forest land) and on the food supply for 

humans and animals, including the improvement and 

development of tools for life cycle analysis of current 

and potential biofuels. 

‘‘(iii) ASSESSMENT OF FEDERAL LAND.—Assessments 

of the potential of Federal land resources to increase 

the production of feedstocks for biofuels and biobased 

products, consistent with the integrity of soil and water 

resources and with other environmental considerations. 
H. R. 2419—400 

‘‘(4) ADDITIONAL CONSIDERATIONS.—Within the technical 

areas described in paragraph (3), the Secretaries shall support 

research and development— 

‘‘(A) to create continuously expanding opportunities for 

participants in existing biofuels production by seeking 

synergies and continuity with current technologies and 

practices; 

‘‘(B) to maximize the environmental, economic, and 

social benefits of production of biofuels and derived 

biobased products on a large scale; and 

‘‘(C) to facilitate small-scale production and local and 

on-farm use of biofuels, including the development of smallscale gasification technologies for production of biofuel from 

cellulosic feedstocks. 

‘‘(5) ELIGIBILITY.—To be eligible for a grant, contract, or 

assistance under this section, an applicant shall be— 

‘‘(A) an institution of higher education; 

‘‘(B) a National Laboratory; 

‘‘(C) a Federal research agency; 

‘‘(D) a State research agency; 

‘‘(E) a private sector entity; 

‘‘(F) a nonprofit organization; or 

‘‘(G) a consortium of 2 or more entities described in 

subparagraphs (A) through (F). 

‘‘(6) ADMINISTRATION.— 

‘‘(A) IN GENERAL.—After consultation with the Board, 

the points of contact shall— 

‘‘(i) publish annually 1 or more joint requests for 

proposals for grants, contracts, and assistance under 

this subsection; 

‘‘(ii) require that grants, contracts, and assistance 

under this section be awarded based on a scientific 

peer review by an independent panel of scientific and 

technical peers; 

‘‘(iii) give special consideration to applications 

that— 

‘‘(I) involve a consortia of experts from multiple institutions; 

‘‘(II) encourage the integration of disciplines 

and application of the best technical resources; 

and 

‘‘(III) increase the geographic diversity of demonstration projects; and 

‘‘(iv) require that the technical areas described in 

each of subparagraphs (A), (B), and (C) of paragraph 

(3) receive not less than 15 percent of funds made 

available to carry out this section. 

‘‘(B) COST SHARE.— 

‘‘(i) RESEARCH AND DEVELOPMENT PROJECTS.— 

‘‘(I) IN GENERAL.—Except as provided in subclause (II), the non-Federal share of the cost of 

a research or development project under this section shall be not less than 20 percent. 

‘‘(II) REDUCTION.—The Secretary of Agriculture or the Secretary of Energy, as appropriate, 

may reduce the non-Federal share required under 
H. R. 2419—401 

subclause (I) if the appropriate Secretary determines the reduction to be necessary and appropriate. 

‘‘(ii) DEMONSTRATION AND COMMERCIAL

PROJECTS.—The non-Federal share of the cost of a demonstration or commercial project under this section 

shall be not less than 50 percent. 

‘‘(C) TECHNOLOGY AND INFORMATION TRANSFER.—The 

Secretary of Agriculture and the Secretary of Energy shall 

ensure that applicable research results and technologies 

from the Initiative are— 

‘‘(i) adapted, made available, and disseminated, 

as appropriate; and 

‘‘(ii) included in the best practices database established under section 1672C(e) of the Food, Agriculture, 

Conservation, and Trade Act of 1990. 

‘‘(f) ADMINISTRATIVE SUPPORT AND FUNDS.— 

‘‘(1) IN GENERAL.—The Secretary of Energy and the Secretary of Agriculture may provide such administrative support 

and funds of the Department of Energy and the Department 

of Agriculture to the Board and the Advisory Committee as 

are necessary to enable the Board and the Advisory Committee 

to carry out their duties under this section. 

‘‘(2) OTHER AGENCIES.—The heads of the agencies referred 

to in subsection (c)(2)(B), and the other members of the Board 

appointed under subsection (c)(2)(C), are encouraged to provide 

administrative support and funds of their respective agencies 

to the Board and the Advisory Committee. 

‘‘(3) LIMITATION.—Not more than 4 percent of the amount 

made available for each fiscal year under subsection (h) may 

be used to pay the administrative costs of carrying out this 

section. 

‘‘(g) REPORTS.—For each fiscal year for which funds are made 

available to carry out this section, the Secretary of Energy and 

the Secretary of Agriculture shall jointly submit to Congress a 

detailed report on— 

‘‘(1) the status and progress of the Initiative, including 

a report from the Advisory Committee on whether funds appropriated for the Initiative have been distributed and used in 

a manner that is consistent with the objectives and requirements of this section; 

‘‘(2) the general status of cooperation and research and 

development efforts carried out at each agency with respect 

to biofuels and biobased products; and 

‘‘(3) the plans of the Secretary of Energy and the Secretary 

of Agriculture for addressing concerns raised in the report, 

including concerns raised by the Advisory Committee. 

‘‘(h) FUNDING.— 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary of Agriculture shall use to 

carry out this section, to remain available until expended— 

‘‘(A) $20,000,000 for fiscal year 2009; 

‘‘(B) $28,000,000 for fiscal year 2010; 

‘‘(C) $30,000,000 for fiscal year 2011; and 

‘‘(D) $40,000,000 for fiscal year 2012. 
H. R. 2419—402 

‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 

funds made available to carry out this section, there is authorized to be appropriated to carry out this section $35,000,000 

for each of fiscal years 2009 through 2012. 

‘‘SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ELIGIBLE RURAL COMMUNITY.—The term ‘eligible rural 

community’ means a community located in a rural area (as 

defined in section 343(a)(13)(A) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1991(a)(13)(A))). 

‘‘(2) INITIATIVE.—The term ‘Initiative’ means the Rural 

Energy Self-Sufficiency Initiative established under this section. 

‘‘(3) INTEGRATED RENEWABLE ENERGY SYSTEM.—The term 

‘integrated renewable energy system’ means a community-wide 

energy system that— 

‘‘(A) reduces conventional energy use; and 

‘‘(B) increases the use of energy from renewable 

sources. 

‘‘(b) ESTABLISHMENT.—The Secretary shall establish a Rural 

Energy Self-Sufficiency Initiative to provide financial assistance 

for the purpose of enabling eligible rural communities to substantially increase the energy self-sufficiency of the eligible rural 

communities. 

‘‘(c) GRANT ASSISTANCE.— ‘‘(1) IN GENERAL.—The Secretary shall make grants available under the Initiative to eligible rural communities to carry 

out an activity described in paragraph (2). 

‘‘(2) USE OF GRANT FUNDS.—An eligible rural community 

may use a grant— 

‘‘(A) to conduct an energy assessment that assesses 

the total energy use of all energy users in the eligible 

rural community; 

‘‘(B) to formulate and analyze ideas for reducing energy 

usage by the eligible rural community from conventional 

sources; and 

‘‘(C) to develop and install an integrated renewable 

energy system. 

‘‘(3) GRANT SELECTION.— ‘‘(A) APPLICATION.—To be considered for a grant, an 

eligible rural community shall submit an application to 

the Secretary that describes the ways in which the community would use the grant to carry out an activity described 

in paragraph (2). 

‘‘(B) PREFERENCE.—The Secretary shall give preference 

to those applications that propose to carry out an activity 

in coordination with— 

‘‘(i) institutions of higher education or nonprofit 

foundations of institutions of higher education; 

‘‘(ii) Federal, State, or local government agencies; 

‘‘(iii) public or private power generation entities; 

or 

‘‘(iv) government entities with responsibility for 

water or natural resources. 

‘‘(4) REPORT.—An eligible rural community receiving a 

grant under the Initiative shall submit to the Secretary a 

report on the project of the eligible rural community. 
H. R. 2419—403 

‘‘(5) COST-SHARING.—The amount of a grant under the Initiative shall not exceed 50 percent of the cost of the activities 

described in the application. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $5,000,000 for each 

of fiscal years 2009 through 2012. 

‘‘SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BIOENERGY.—The term ‘bioenergy’ means fuel grade 

ethanol and other biofuel. 

‘‘(2) BIOENERGY PRODUCER.—The term ‘bioenergy producer’ 

means a producer of bioenergy that uses an eligible commodity 

to produce bioenergy under this section. 

‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible commodity’ 

means a form of raw or refined sugar or in-process sugar 

that is eligible to be marketed in the United States for human 

consumption or to be used for the extraction of sugar for human 

consumption. 

‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an 

entity located in the United States that markets an eligible 

commodity in the United States. 

‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 

‘‘(1) IN GENERAL.— 

‘‘(A) PURCHASES AND SALES.—For each of the 2008 

through 2012 crops, the Secretary shall purchase eligible 

commodities from eligible entities and sell such commodities to bioenergy producers for the purpose of producing 

bioenergy in a manner that ensures that section 156 of 

the Federal Agriculture Improvement and Reform Act (7 

U.S.C. 7272) is operated at no cost to the Federal Government by avoiding forfeitures to the Commodity Credit Corporation. 

‘‘(B) COMPETITIVE PROCEDURES.—In carrying out the 

purchases and sales required under subparagraph (A), the 

Secretary shall, to the maximum extent practicable, use 

competitive procedures, including the receiving, offering, 

and accepting of bids, when entering into contracts with 

eligible entities and bioenergy producers, provided that 

such procedures are consistent with the purposes of 

subparagraph (A). 

‘‘(C) LIMITATION.—The purchase and sale of eligible 

commodities under subparagraph (A) shall only be made 

in crop years in which such purchases and sales are necessary to ensure that the program authorized under section 

156 of the Federal Agriculture Improvement and Reform 

Act (7 U.S.C. 7272) is operated at no cost to the Federal 

Government by avoiding forfeitures to the Commodity 

Credit Corporation. 

‘‘(2) NOTICE.— ‘‘(A) IN GENERAL.—As soon as practicable after the 

date of enactment of the Food, Conservation, and Energy 

Act of 2008 and each September 1 thereafter through September 1, 2012, the Secretary shall provide notice to eligible 

entities and bioenergy producers of the quantity of eligible 

commodities that shall be made available for purchase 
H. R. 2419—404 

and sale for the crop year following the date of the notice 

under this section. 

‘‘(B) REESTIMATES.—Not later than the January 1, 

April 1, and July 1 of the calendar year following the 

date of a notice under subparagraph (A), the Secretary 

shall reestimate the quantity of eligible commodities determined under subparagraph (A), and provide notice and 

make purchases and sales based on such reestimates. 

‘‘(3) COMMODITY CREDIT CORPORATION INVENTORY.— 

‘‘(A) DISPOSITIONS.— 

‘‘(i) BIOENERGY AND GENERALLY.—Except as provided in clause (ii), to the extent that an eligible commodity is owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to 

the program authorized under section 156 of the Federal Agriculture Improvement and Reform Act (7 

U.S.C. 7272)), the Secretary shall— 

‘‘(I) sell the eligible commodity to bioenergy 

producers under this section consistent with paragraph (1)(C); 

‘‘(II) dispose of the eligible commodity in 

accordance with section 156(f)(2) of that Act; or 

‘‘(III) otherwise dispose of the eligible commodity through the buyback of certificates of quota 

entry. 

‘‘(ii) PRESERVATION OF OTHER AUTHORITIES.— 

Nothing in this section limits the use of other authorities for the disposition of an eligible commodity held 

in the inventory of the Commodity Credit Corporation 

for nonfood use or otherwise in a manner that does 

not increase the net quantity of sugar available for 

human consumption in the United States market, consistent with section 156(f)(1) of the Federal Agriculture 

Improvement and Reform Act (7 U.S.C. 7272(f)(1)). 

‘‘(B) EMERGENCY SHORTAGES.—Notwithstanding 

subparagraph (A), if there is an emergency shortage of 

sugar for human consumption in the United States market 

that is caused by a war, flood, hurricane, or other natural 

disaster, or other similar event, the Secretary may dispose 

of an eligible commodity that is owned and held in inventory by the Commodity Credit Corporation (accumulated 

pursuant to the program authorized under section 156 

of the Federal Agriculture Improvement and Reform Act 

(7 U.S.C. 7272)) through disposition as authorized under 

section 156(f) of that Act or through the use of any other 

authority of the Commodity Credit Corporation. 

‘‘(4) TRANSFER RULE; STORAGE FEES.— 

‘‘(A) GENERAL TRANSFER RULE.—Except with regard 

to emergency dispositions under paragraph (3)(B) and as 

provided in subparagraph (C), the Secretary shall ensure 

that bioenergy producers that purchase eligible commodities pursuant to this section take possession of the eligible 

commodities within 30 calendar days of the date of such 

purchase from the Commodity Credit Corporation. 

‘‘(B) PAYMENT OF STORAGE FEES PROHIBITED.— ‘‘(i) IN GENERAL.—The Secretary shall, to the maximum extent practicable, carry out this section in a 
H. R. 2419—405 

manner that ensures no storage fees are paid by the 

Commodity Credit Corporation in the administration 

of this section. 

‘‘(ii) EXCEPTION.—Clause (i) shall not apply with 

respect to any commodities owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to the program authorized under section 

156 of the Federal Agriculture Improvement and 

Reform Act (7 U.S.C. 7272)). 

‘‘(C) OPTION TO PREVENT STORAGE FEES.— 

‘‘(i) IN GENERAL.—The Secretary may enter into 

contracts with bioenergy producers to sell eligible 

commodities to such producers prior in time to entering 

into contracts with eligible entities to purchase the 

eligible commodities to be used to satisfy the contracts 

entered into with the bioenergy producers. 

‘‘(ii) SPECIAL TRANSFER RULE.—If the Secretary 

makes a sale and purchase referred to in clause (i), 

the Secretary shall ensure that the bioenergy producer 

that purchased eligible commodities takes possession 

of such commodities within 30 calendar days of the 

date the Commodity Credit Corporation purchases the 

eligible commodities. 

‘‘(5) RELATION TO OTHER LAWS.—If sugar that is subject 

to a marketing allotment under part VII of subtitle B of title 

III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa 

et seq.) is the subject of a payment under this section, the 

sugar shall be considered marketed and shall count against 

a processor’s allocation of an allotment under such part, as 

applicable. 

‘‘(6) FUNDING.—The Secretary shall use the funds, facilities, 

and authorities of the Commodity Credit Corporation, including 

the use of such sums as are necessary, to carry out this section. 

‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BCAP.—The term ‘BCAP’ means the Biomass Crop 

Assistance Program established under this section. 

‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP project area’ 

means an area that— 

‘‘(A) has specified boundaries that are submitted to 

the Secretary by the project sponsor and subsequently 

approved by the Secretary; 

‘‘(B) includes producers with contract acreage that will 

supply a portion of the renewable biomass needed by a 

biomass conversion facility; and 

‘‘(C) is physically located within an economically practicable distance from the biomass conversion facility. 

‘‘(3) CONTRACT ACREAGE.—The term ‘contract acreage’ 

means eligible land that is covered by a BCAP contract entered 

into with the Secretary. 

‘‘(4) ELIGIBLE CROP.— 

‘‘(A) IN GENERAL.—The term ‘eligible crop’ means a 

crop of renewable biomass. 

‘‘(B) EXCLUSIONS.—The term ‘eligible crop’ does not 

include— 
H. R. 2419—406 

‘‘(i) any crop that is eligible to receive payments 

under title I of the Food, Conservation, and Energy 

Act of 2008 or an amendment made by that title; 

or 

‘‘(ii) any plant that is invasive or noxious or has 

the potential to become invasive or noxious, as determined by the Secretary, in consultation with other 

appropriate Federal or State departments and agencies. 

‘‘(5) ELIGIBLE LAND.— 

‘‘(A) IN GENERAL.—The term ‘eligible land’ includes 

agricultural and nonindustrial private forest lands (as 

defined in section 5(c) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a(c))). 

‘‘(B) EXCLUSIONS.—The term ‘eligible land’ does not 

include— 

‘‘(i) Federal- or State-owned land; 

‘‘(ii) land that is native sod, as of the date of 

enactment of the Food, Conservation, and Energy Act 

of 2008; 

‘‘(iii) land enrolled in the conservation reserve program established under subchapter B of chapter 1 

of subtitle D of title XII of the Food Security Act 

of 1985 (16 U.S.C. 3831 et seq.); 

‘‘(iv) land enrolled in the wetlands reserve program 

established under subchapter C of chapter 1 of subtitle 

D of title XII of that Act (16 U.S.C. 3837 et seq.); 

or 

‘‘(v) land enrolled in the grassland reserve program 

established under subchapter D of chapter 2 of subtitle 

D of title XII of that Act (16 U.S.C. 3838n et seq.). 

‘‘(6) ELIGIBLE MATERIAL.— ‘‘(A) IN GENERAL.—The term ‘eligible material’ means 

renewable biomass. 

‘‘(B) EXCLUSIONS.—The term ‘eligible material’ does not 

include— 

‘‘(i) any crop that is eligible to receive payments 

under title I of the Food, Conservation, and Energy 

Act of 2008 or an amendment made by that title; 

‘‘(ii) animal waste and byproducts (including fats, 

oils, greases, and manure); 

‘‘(iii) food waste and yard waste; or 

‘‘(iv) algae. 

‘‘(7) PRODUCER.—The term ‘producer’ means an owner or 

operator of contract acreage that is physically located within 

a BCAP project area. 

‘‘(8) PROJECT SPONSOR.—The term ‘project sponsor’ means— 

‘‘(A) a group of producers; or 

‘‘(B) a biomass conversion facility. 

‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish and administer a Biomass Crop Assistance Program to— 

‘‘(1) support the establishment and production of eligible 

crops for conversion to bioenergy in selected BCAP project 

areas; and 

‘‘(2) assist agricultural and forest land owners and operators with collection, harvest, storage, and transportation of 

eligible material for use in a biomass conversion facility. 
H. R. 2419—407 

‘‘(c) BCAP PROJECT AREA.— 

‘‘(1) IN GENERAL.—The Secretary shall provide financial 

assistance to producers of eligible crops in a BCAP project 

area. 

‘‘(2) SELECTION OF PROJECT AREAS.— 

‘‘(A) IN GENERAL.—To be considered for selection as 

a BCAP project area, a project sponsor shall submit to 

the Secretary a proposal that includes, at a minimum— 

‘‘(i) a description of the eligible land and eligible 

crops of each producer that will participate in the 

proposed BCAP project area; 

‘‘(ii) a letter of commitment from a biomass conversion facility that the facility will use the eligible crops 

intended to be produced in the proposed BCAP project 

area; 

‘‘(iii) evidence that the biomass conversion facility 

has sufficient equity available, as determined by the 

Secretary, if the biomass conversion facility is not operational at the time the proposal is submitted to the 

Secretary; and 

‘‘(iv) any other appropriate information about the 

biomass conversion facility or proposed biomass conversion facility that gives the Secretary a reasonable 

assurance that the plant will be in operation by the 

time that the eligible crops are ready for harvest. 

‘‘(B) BCAP PROJECT AREA SELECTION CRITERIA.—In 

selecting BCAP project areas, the Secretary shall consider— 

‘‘(i) the volume of the eligible crops proposed to 

be produced in the proposed BCAP project area and 

the probability that such crops will be used for the 

purposes of the BCAP; 

‘‘(ii) the volume of renewable biomass projected 

to be available from sources other than the eligible 

crops grown on contract acres; 

‘‘(iii) the anticipated economic impact in the proposed BCAP project area; 

‘‘(iv) the opportunity for producers and local investors to participate in the ownership of the biomass 

conversion facility in the proposed BCAP project area; 

‘‘(v) the participation rate by— 

‘‘(I) beginning farmers or ranchers (as defined 

in accordance with section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 

1991(a))); or 

‘‘(II) socially disadvantaged farmers or 

ranchers (as defined in section 2501(e) of the Food, 

Agriculture, Conservation, and Trade Act of 1990 

(7 U.S.C. 2279(e))); 

‘‘(vi) the impact on soil, water, and related 

resources; 

‘‘(vii) the variety in biomass production approaches 

within a project area, including (as appropriate)— 

‘‘(I) agronomic conditions; 

‘‘(II) harvest and postharvest practices; and 

‘‘(III) monoculture and polyculture crop mixes; 
H. R. 2419—408 

‘‘(viii) the range of eligible crops among project 

areas; and 

‘‘(ix) any additional information, as determined by 

the Secretary. 

‘‘(3) CONTRACT.— 

‘‘(A) IN GENERAL.—On approval of a BCAP project area 

by the Secretary, each producer in the BCAP project area 

shall enter into a contract directly with the Secretary. 

‘‘(B) MINIMUM TERMS.—At a minimum, contracts shall 

include terms that cover— 

‘‘(i) an agreement to make available to the Secretary, or to an institution of higher education or other 

entity designated by the Secretary, such information 

as the Secretary considers to be appropriate to promote 

the production of eligible crops and the development 

of biomass conversion technology; 

‘‘(ii) compliance with the highly erodible land conservation requirements of subtitle B of title XII of 

the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) 

and the wetland conservation requirements of subtitle 

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

‘‘(iii) the implementation of (as determined by the 

Secretary)— 

‘‘(I) a conservation plan; or 

‘‘(II) a forest stewardship plan or an equivalent 

plan; and 

‘‘(iv) any additional requirements the Secretary 

considers appropriate. 

‘‘(C) DURATION.—A contract under this subsection shall 

have a term of up to— 

‘‘(i) 5 years for annual and perennial crops; or 

‘‘(ii) 15 years for woody biomass. 

‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In carrying out 

this subsection, the Secretary shall provide for the preservation 

of cropland base and yield history applicable to the land 

enrolled in a BCAP contract. 

‘‘(5) PAYMENTS.— 

‘‘(A) IN GENERAL.—The Secretary shall make establishment and annual payments directly to producers to support 

the establishment and production of eligible crops on contract acreage. 

‘‘(B) AMOUNT OF ESTABLISHMENT PAYMENTS.—The 

amount of an establishment payment under this subsection 

shall be up to 75 percent of the costs of establishing an 

eligible perennial crop covered by the contract, including— 

‘‘(i) the cost of seeds and stock for perennials; 

‘‘(ii) the cost of planting the perennial crop, as 

determined by the Secretary; and 

‘‘(iii) in the case of nonindustrial private forestland, 

the costs of site preparation and tree planting. 

‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— 

‘‘(i) IN GENERAL.—Subject to clause (ii), the amount 

of an annual payment under this subsection shall be 

determined by the Secretary. 

‘‘(ii) REDUCTION.—The Secretary shall reduce an 

annual payment by an amount determined to be appropriate by the Secretary, if— 
H. R. 2419—409 

‘‘(I) an eligible crop is used for purposes other 

than the production of energy at the biomass 

conversion facility; 

‘‘(II) an eligible crop is delivered to the biomass 

conversion facility; 

‘‘(III) the producer receives a payment under 

subsection (d); 

‘‘(IV) the producer violates a term of the contract; or 

‘‘(V) there are such other circumstances, as 

determined by the Secretary to be necessary to 

carry out this section. 

‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, STORAGE, AND

TRANSPORTATION.— 

‘‘(1) IN GENERAL.—The Secretary shall make a payment 

for the delivery of eligible material to a biomass conversion 

facility to— 

‘‘(A) a producer of an eligible crop that is produced 

on BCAP contract acreage; or 

‘‘(B) a person with the right to collect or harvest eligible 

material. 

‘‘(2) PAYMENTS.— 

‘‘(A) COSTS COVERED.—A payment under this subsection shall be in an amount described in subparagraph 

(B) for— 

‘‘(i) collection; 

‘‘(ii) harvest; 

‘‘(iii) storage; and 

‘‘(iv) transportation to a biomass conversion 

facility. 

‘‘(B) AMOUNT.—Subject to paragraph (3), the Secretary 

may provide matching payments at a rate of $1 for each 

$1 per ton provided by the biomass conversion facility, 

in an amount equal to not more than $45 per ton for 

a period of 2 years. 

‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP CONTRACT ACREAGE.—As a condition of the receipt of annual payment under 

subsection (c), a producer receiving a payment under this subsection for collection, harvest, storage or transportation of an 

eligible crop produced on BCAP acreage shall agree to a reduction in the annual payment. 

‘‘(e) REPORT.—Not later than 4 years after the date of enactment 

of the Food, Conservation, and Energy Act of 2008, the Secretary 

shall submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and 

Forestry of the Senate a report on the dissemination by the Secretary of the best practice data and information gathered from 

participants receiving assistance under this section. 

‘‘(f) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section such sums 

as are necessary for each of fiscal years 2008 through 2012. 

‘‘SEC. 9012. FOREST BIOMASS FOR ENERGY. 

‘‘(a) IN GENERAL.—The Secretary, acting through the Forest 

Service, shall conduct a competitive research and development program to encourage use of forest biomass for energy. 
H. R. 2419—410 

‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to compete under the 

program under this section include— 

‘‘(1) the Forest Service (acting through Research and 

Development); 

‘‘(2) other Federal agencies; 

‘‘(3) State and local governments; 

‘‘(4) Indian tribes; 

‘‘(5) land-grant colleges and universities; and 

‘‘(6) private entities. 

‘‘(c) PRIORITY FOR PROJECT SELECTION.—In carrying out this 

section, the Secretary shall give priority to projects that— 

‘‘(1) develop technology and techniques to use low-value 

forest biomass, such as byproducts of forest health treatments 

and hazardous fuels reduction, for the production of energy; 

‘‘(2) develop processes that integrate production of energy 

from forest biomass into biorefineries or other existing manufacturing streams; 

‘‘(3) develop new transportation fuels from forest biomass; 

and 

‘‘(4) improve the growth and yield of trees intended for 

renewable energy production. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $15,000,000 for each 

of fiscal years 2009 through 2012. 

‘‘SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) COMMUNITY WOOD ENERGY PLAN.—The term ‘community wood energy plan’ means an assessment of— 

‘‘(A) available feedstocks necessary to supply a community wood energy system; and 

‘‘(B) the long-term feasibility of supplying and operating a community wood energy system. 

‘‘(2) COMMUNITY WOOD ENERGY SYSTEM.— ‘‘(A) IN GENERAL.—The term ‘community wood energy 

system’ means an energy system that— 

‘‘(i) primarily services public facilities owned or 

operated by State or local governments, including 

schools, town halls, libraries, and other public 

buildings; and 

‘‘(ii) uses woody biomass as the primary fuel. 

‘‘(B) INCLUSIONS.—The term ‘community wood energy 

system’ includes single facility central heating, district 

heating, combined heat and energy systems, and other 

related biomass energy systems. 

‘‘(b) GRANT PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary, acting through the Chief 

of the Forest Service, shall establish a program to be known 

as the ‘Community Wood Energy Program’ to provide— 

‘‘(A) grants of up to $50,000 to State and local governments (or designees) to develop community wood energy 

plans; and 

‘‘(B) competitive grants to State and local governments 

to acquire or upgrade community wood energy systems. 

‘‘(2) CONSIDERATIONS.—In selecting applicants for grants 

under paragraph (1)(B), the Secretary shall consider— 

‘‘(A) the energy efficiency of the proposed system; 
H. R. 2419—411 

‘‘(B) the cost effectiveness of the proposed system; and 

‘‘(C) other conservation and environmental criteria that 

the Secretary considers appropriate. 

‘‘(3) USE OF PLAN.—A State or local government applying 

to receive a competitive grant described in paragraph (1)(B) 

shall submit to the Secretary as part of the grant application 

the applicable community wood energy plan. 

‘‘(c) LIMITATION.—A community wood energy system acquired 

with grant funds provided under subsection (b)(1)(B) shall not 

exceed an output of— 

‘‘(1) 50,000,000 Btu per hour for heating; and 

‘‘(2) 2 megawatts for electric power production. 

‘‘(d) MATCHING FUNDS.—A State or local government that 

receives a grant under subsection (b) shall contribute an amount 

of non-Federal funds towards the development of the community 

wood energy plan, or acquisition of the community wood energy 

systems that is at least equal to the amount of grant funds received 

by the State or local government under that subsection. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $5,000,000 for each 

of fiscal years 2009 through 2012.’’. 

(b) CONFORMING AMENDMENT.—The Biomass Research and 

Development Act of 2000 (7 U.S.C. 8601 et seq.) is repealed. 

SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY. 

(a) IN GENERAL.—The Secretary of Agriculture, the Secretary 

of Energy, the Administrator of the Environmental Protection 

Agency, and the Secretary of Transportation (referred to in this 

section as the ‘‘Secretaries’’), shall jointly conduct a study that 

includes— 

(1) an assessment of the infrastructure needs for expanding 

the domestic production, transport, and distribution of biofuels 

given current and likely future market trends; 

(2) recommendations for infrastructure needs and development approaches, taking into account cost and other associated 

factors; and 

(3) a report that includes— 

(A) a summary of infrastructure needs; 

(B) an analysis of alternative development approaches 

to meeting the needs described in subparagraph (A), 

including cost, siting, and other regulatory issues; and 

(C) recommendations for specific infrastructure 

development actions to be taken. 

(b) SCOPE OF STUDY.— 

(1) IN GENERAL.—In conducting the study described in subsection (a), the Secretaries shall address— 

(A) current and likely future market trends for biofuels 

through calendar year 2025; 

(B) current and future availability of feedstocks; 

(C) water resource needs, including water requirements 

for biorefineries; 

(D) shipping and storage needs for biomass feedstock 

and biofuels, including the adequacy of rural roads; and 

(E) modes of transportation and delivery for biofuels 

(including shipment by rail, truck, pipeline or barge) and 

associated infrastructure issues. 
H. R. 2419—412 

(2) CONSIDERATIONS.—In addressing the issues described 

in paragraph (1), the Secretaries shall consider— 

(A) the effects of increased tank truck, rail, and barge 

transport on existing infrastructure and safety; 

(B) the feasibility of shipping biofuels through pipelines 

in existence as the date of enactment of this Act; 

(C) the development of new biofuels pipelines, including 

siting, financing, timing, and other economic issues; 

(D) the implications of various biofuel blend levels 

on infrastructure needs; 

(E) the implications of various approaches to infrastructure development on resource use and conservation; 

(F) regional differences in biofuels infrastructure needs; 

and 

(G) other infrastructure issues, as determined by the 

Secretaries. 

(c) IMPLEMENTATION.—In carrying out this section, the Secretaries — 

(1) shall— 

(A) consult with individuals and entities with interest 

or expertise in the areas described in subsection (b); 

(B) to the extent available, use the information developed and results of the related studies authorized under 

sections 243 and 245 of the Energy Independence and 

Security Act of 2007 (Public Law 110–140; 121 Stat. 1540, 

1546)); and 

(C) submit to Congress the report required under subsection (a)(3), including— 

(i) in the Senate— 

(I) the Committee on Agriculture, Nutrition, 

and Forestry ; 

(II) the Committee on Commerce, Science, and 

Transportation; 

(III) the Committee on Energy and Natural 

Resources; and 

(IV) the Committee on Environment and 

Public Works; and 

(ii) in the House of Representatives— 

(I) the Committee on Agriculture; 

(II) the Committee on Energy and Commerce; 

(III) the Committee on Transportation and 

Infrastructure; and 

(IV) the Committee on Science and Technology; and 

(2) may issue a solicitation for a competition to select 

a contractor to support the Secretaries. 

SEC. 9003. RENEWABLE FERTILIZER STUDY. 

(a) IN GENERAL.—Not later than 1 year after the date of receipt 

of appropriations to carry out this section, the Secretary shall— 

(1) conduct a study to assess the current state of knowledge 

regarding the potential for the production of fertilizer from 

renewable energy sources in rural areas, including— 

(A) identification of the critical challenges to commercialization of rural production of nitrogen and phosphorusbased fertilizer from renewables; 
H. R. 2419—413 

(B) the most promising processes and technologies for 

renewable fertilizer production; 

(C) the potential cost-competitiveness of renewable fertilizer; and 

(D) the potential impacts of renewable fertilizer on 

fossil fuel use and the environment; and 

(2) submit to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the results 

of the study. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $1,000,000 for fiscal 

year 2009. 

TITLE X—HORTICULTURE AND 

ORGANIC AGRICULTURE 

SEC. 10001. DEFINITIONS. 

In this title: 

(1) SPECIALTY CROP.—The term ‘‘specialty crop’’ has the 

meaning given the term in section 3 of the Specialty Crops 

Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 

108–465). 

(2) STATE DEPARTMENT OF AGRICULTURE.—The term ‘‘State 

department of agriculture’’ means the agency, commission, or 

department of a State government responsible for protecting 

and promoting agriculture in the State. 

Subtitle A—Horticulture Marketing and 

Information 

SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE COMMODITY PURCHASE PROCESS. 

(a) EVALUATION REQUIRED.—The Secretary shall arrange to 

have performed an independent evaluation of the purchasing processes (including the budgetary, statutory, and regulatory authority 

underlying the processes) used by the Department of Agriculture 

to implement the requirement that funds available under section 

32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be principally 

devoted to perishable agricultural commodities. 

(b) SUBMISSION OF RESULTS.—Not later than 18 months after 

the date of the enactment of this Act, the Secretary shall submit 

to the Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry of the 

Senate a report on the results of the evaluation. 

SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES. 

Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 

608e–1(a)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended in the matter preceding 

the first proviso in the first sentence by inserting ‘‘clementines,’’ 

after ‘‘nectarines,’’. 
H. R. 2419—414 

SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE. 

Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C. 

2204g(a)) is amended— 

(1) by striking ‘‘In 1998’’ and inserting the following: 

‘‘(1) IN GENERAL.—In 1998’’; and 

(2) by adding at the end the following: 

‘‘(2) INCLUSION OF SPECIALTY CROPS.—Effective beginning 

with the census of agriculture required to be conducted in 

2008, the Secretary shall conduct as part of each census of 

agriculture a census of specialty crops (as that term is defined 

in section 3 of the Specialty Crops Competitiveness Act of 

2004 (7 U.S.C. 1621 note; Public Law 108-465)).’’. 

SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER 

INFORMATION. 

(a) REGIONS AND MEMBERS.—Section 1925(b)(2) of the Mushroom Promotion, Research, and Consumer Information Act of 1990 

(7 U.S.C. 6104(b)(2)) is amended— 

(1) in subparagraph (B), by striking ‘‘4 regions’’ and 

inserting ‘‘3 regions’’; 

(2) in subparagraph (D), by striking ‘‘35,000,000 pounds’’ 

and inserting ‘‘50,000,000 pounds’’; and 

(3) by striking subparagraph (E) and inserting the following: 

‘‘(E) ADDITIONAL MEMBERS.—In addition to the members appointed pursuant to paragraph (1), and subject to 

the 9-member limit of members on the Council provided 

in that paragraph, the Secretary shall appoint additional 

members to the council from a region that attains additional pounds of production as follows: 

‘‘(i) If the annual production of a region is greater 

than 110,000,000 pounds, but less than or equal to 

180,000,000 pounds, the region shall be represented 

by 1 additional member. 

‘‘(ii) If the annual production of a region is greater 

than 180,000,000 pounds, but less than or equal to 

260,000,000 pounds, the region shall be represented 

by 2 additional members. 

‘‘(iii) If the annual production of a region is greater 

than 260,000,000 pounds, the region shall be represented by 3 additional members.’’. 

(b) POWERS AND DUTIES OF COUNCIL.—Section 1925(c) of the 

Mushroom Promotion, Research, and Consumer Information Act 

of 1990 (7 U.S.C. 6104(c)) is amended— 

(1) by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and 

(2) by inserting after paragraph (5) the following: 

‘‘(6) to develop and propose to the Secretary programs 

for good agricultural and good handling practices and related 

activities for mushrooms;’’. 

SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES. 

(a) INITIATIVE AUTHORIZED.—The Secretary may carry out a 

food safety education program to educate the public and persons 

in the fresh produce industry about— 
H. R. 2419—415 

(1) scientifically proven practices for reducing microbial 

pathogens on fresh produce; and 

(2) methods of reducing the threat of cross-contamination 

of fresh produce through sanitary handling practices. 

(b) COOPERATION.—The Secretary may carry out the education 

program in cooperation with public and private partners. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section 

$1,000,000 for each of fiscal years 2008 through 2012, to remain 

available until expended. 

SEC. 10106. FARMERS’ MARKET PROMOTION PROGRAM. 

Section 6 of the Farmer-to-Consumer Direct Marketing Act 

of 1976 (7 U.S.C. 3005) is amended— 

(1) in subsection (a), by inserting ‘‘and to promote direct 

producer-to-consumer marketing’’ before the period at the end; 

(2) in subsection (b)(1)— 

(A) in subparagraph (A), by inserting ‘‘agri-tourism 

activities,’’ after ‘‘programs,’’; and 

(B) in subparagraph (B)— 

(i) by inserting ‘‘agri-tourism activities,’’ after ‘‘programs,’’ and 

(ii) by striking ‘‘infrastructure’’ and inserting ‘‘marketing opportunities’’; 

(3) in subsection (c)(1), by inserting ‘‘or a producer network 

or association’’ after ‘‘cooperative’’; and 

(4) by striking subsection (e) and inserting the following: 

‘‘(e) FUNDING.— ‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall use to carry out this section— ‘‘(A) $3,000,000 for fiscal year 2008; 

‘‘(B) $5,000,000 for each of fiscal years 2009 through 

2010; and 

‘‘(C) $10,000,000 for each of fiscal years 2011 and 2012. 

‘‘(2) USE OF FUNDS.—Not less than 10 percent of the funds 

used to carry out this section in a fiscal year under paragraph 

(1) shall be used to support the use of electronic benefits transfers for Federal nutrition programs at farmers’ markets. 

‘‘(3) INTERDEPARTMENTAL COORDINATION.—In carrying out 

this subsection, the Secretary shall ensure coordination between 

the various agencies to the maximum extent practicable. 

‘‘(4) LIMITATION.—Funds described in paragraph (2)— 

‘‘(A) may not be used for the ongoing cost of carrying 

out any project; and 

‘‘(B) shall only be provided to eligible entities that 

demonstrate a plan to continue to provide EBT card access 

at 1 or more farmers’ markets following the receipt of 

the grant.’’. 

SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION. 

(a) IN GENERAL.—The Secretary shall— 

(1) carry out market news activities to provide timely price 

and shipment information of specialty crops in the United 

States; and 

(2) use funds made available under subsection (b) to 

increase the reporting levels for specialty crops in effect on 

the date of enactment of this Act. 
H. R. 2419—416 

(b) AUTHORIZATION OF APPROPRIATIONS.—In addition to any 

other funds made available through annual appropriations for 

market news services, there is authorized to be appropriated to 

carry out this section $9,000,000 for each of fiscal years 2008 

through 2012, to remain available until expended. 

SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR 

GRADES AND STANDARDS AND OTHER PURPOSES. 

(a) IN GENERAL.—The Secretary shall initiate procedures under 

the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 

with amendments by the Agricultural Marketing Agreement Act 

of 1937, to determine whether it would be appropriate to establish 

a Federal marketing order for Hass avocados relating to grades 

and standards and for other purposes under that Act. 

(b) EXPEDITED PROCEDURES.— (1) PROPOSAL FOR AN ORDER.—An organization of domestic 

avocado producers in existence on the date of enactment of 

this Act may request the issuance of, and submit to the Secretary a proposal for, an order described in subsection (a). 

(2) PUBLICATION OF PROPOSAL.—Not later than 60 days 

after the date on which the Secretary receives a proposed 

order under paragraph (1), the Secretary shall initiate procedures described in subsection (a) to determine whether the 

proposed order should proceed. 

(c) EFFECTIVE DATE.—Any order issued under this section shall 

become effective not later than 15 months after the date on which 

the Secretary initiates procedures under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by 

the Agricultural Marketing Agreement Act of 1937. 

SEC. 10109. SPECIALTY CROP BLOCK GRANTS. 

(a) DEFINITION OF SPECIALTY CROP.—Section 3(1) of the Specialty Crops Competitiveness Act of 2004 (Public Law 108–465; 

7 U.S.C. 1621 note) is amended by inserting ‘‘horticulture and’’ 

before ‘‘nursery’’. 

(b) DEFINITION OF STATE.—Section 3(2) of the Specialty Crops 

Competitiveness Act of 2004 (Public Law 108–465; 7 U.S.C. 1621 

note) is amended by striking ‘‘and the Commonwealth of Puerto 

Rico’’ and inserting ‘‘the Commonwealth of Puerto Rico, Guam, 

American Samoa, the United States Virgin Islands, and the 

Commonwealth of the Northern Mariana Islands’’. 

(c) SPECIALTY CROP BLOCK GRANTS.—Section 101 of the Specialty Crops Competitiveness Act of 2004 (Public Law 108–465; 

7 U.S.C. 1621 note) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘Subject to the appropriation of funds 

to carry out this section’’ and inserting ‘‘Using the funds 

made available under subsection (j)’’; and 

(B) by striking ‘‘2009’’ and inserting ‘‘2012’’; 

(2) in subsection (b), by striking ‘‘appropriated pursuant 

to the authorization of appropriations in subsection (i)’’ and 

inserting ‘‘made available under subsection (j)’’; 

(3) by striking subsection (c) and inserting the following: 

‘‘(c) MINIMUM GRANT AMOUNT.—Notwithstanding subsection 

(b), each State shall receive a grant under this section for each 

fiscal year in an amount that is at least equal to the higher 

of— 

‘‘(1) $100,000; or 
H. R. 2419—417 

‘‘(2) 1⁄3 of 1 percent of the total amount of funding made 

available to carry out this section for the fiscal year.’’; and 

(4) by striking subsection (i) and inserting the following: 

‘‘(i) REALLOCATION.— 

‘‘(1) IN GENERAL.—The Secretary shall reallocate to other 

States in accordance with paragraph (2) any amounts made 

available for a fiscal year under this section that are not obligated or expended by a date during that fiscal year determined 

by the Secretary. 

‘‘(2) PRO RATA ALLOCATION.—The Secretary shall allocate 

funds described in paragraph (1) pro rata to the remaining 

States that applied during the specified grant application 

period. 

‘‘(3) USE OF REALLOCATED FUNDS.—Funds allocated to a 

State under this subsection shall be used by the State only 

to carry out projects that were previously approved in the 

State plan of the State. 

‘‘(j) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make grants under this 

section, using— 

‘‘(1) $10,000,000 for fiscal year 2008; 

‘‘(2) $49,000,000 for fiscal year 2009; and 

‘‘(3) $55,000,000 for each of fiscal years 2010 through 

2012.’’. 

Subtitle B—Pest and Disease Management 

SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER 

PREVENTION. 

(a) IN GENERAL.—Subtitle A of the Plant Protection Act (7 

U.S.C. 7711 et seq.) is amended by adding at the end the following: 

‘‘SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER 

PREVENTION. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) EARLY PLANT PEST DETECTION AND SURVEILLANCE.— The term ‘early plant pest detection and surveillance’ means 

the full range of activities undertaken to find newly introduced 

plant pests, whether the plant pests are new to the United 

States or new to certain areas of the United States, before— 

‘‘(A) the plant pests become established; or 

‘‘(B) the plant pest infestations become too large and 

costly to eradicate or control. 

‘‘(2) SPECIALTY CROP.—The term ‘specialty crop’ has the 

meaning given the term in section 3 of the Specialty Crops 

Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 

108–465). 

‘‘(3) STATE DEPARTMENT OF AGRICULTURE.—The term ‘State 

department of agriculture’ means an agency of a State that 

has a legal responsibility to perform early plant pest detection 

and surveillance activities. 

‘‘(b) EARLY PLANT PEST DETECTION AND SURVEILLANCE

IMPROVEMENT PROGRAM.— ‘‘(1) COOPERATIVE AGREEMENTS.—The Secretary shall enter 

into a cooperative agreement with each State department of 
H. R. 2419—418 

agriculture that agrees to conduct early plant pest detection 

and surveillance activities. 

‘‘(2) CONSULTATION.—In carrying out this subsection, the 

Secretary shall consult with— 

‘‘(A) the National Plant Board; and 

‘‘(B) other interested parties. 

‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.—The Federal 

Advisory Committee Act (5 U.S.C. App.) shall not apply to 

consultations under this subsection. 

‘‘(4) APPLICATION.— 

‘‘(A) IN GENERAL.—A State department of agriculture 

seeking to enter into a cooperative agreement under this 

subsection shall submit to the Secretary an application 

containing such information as the Secretary may require. 

‘‘(B) NOTIFICATION.—The Secretary shall notify 

applicants of— 

‘‘(i) the requirements to be imposed on a State 

department of agriculture for auditing of, and reporting 

on, the use of any funds provided by the Secretary 

under the cooperative agreement; 

‘‘(ii) the criteria to be used to ensure that early 

pest detection and surveillance activities supported 

under the cooperative agreement are based on sound 

scientific data or thorough risk assessments; and 

‘‘(iii) the means of identifying pathways of pest 

introductions. 

‘‘(5) USE OF FUNDS.— 

‘‘(A) PLANT PEST DETECTION AND SURVEILLANCE ACTIVITIES.—A State department of agriculture that receives 

funds under this subsection shall use the funds to carry 

out early plant pest detection and surveillance activities 

approved by the Secretary to prevent the introduction or 

spread of a plant pest. 

‘‘(B) SUBAGREEMENTS.—Nothing in this subsection prevents a State department of agriculture from using funds 

received under paragraph (4) to enter into subagreements 

with political subdivisions of the State that have legal 

responsibilities relating to agricultural plant pest and disease surveillance. 

‘‘(C) NON-FEDERAL SHARE.—The non-Federal share of 

the cost of carrying out a cooperative agreement under 

this section may be provided in-kind, including through 

provision of such indirect costs of the cooperative agreement 

as the Secretary considers to be appropriate. 

‘‘(D) ABILITY TO PROVIDE FUNDS.—The Secretary shall 

not take the ability to provide non-Federal costs to carry 

out a cooperative agreement entered into under subparagraph (A) into consideration when deciding whether to 

enter into a cooperative agreement with a State department 

of agriculture. 

‘‘(6) SPECIAL FUNDING CONSIDERATIONS.—The Secretary 

shall provide funds to a State department of agriculture if 

the Secretary determines that— 

‘‘(A) the State department of agriculture is in a State 

that has a high risk of being affected by 1 or more plant 

pests or diseases, taking into consideration— 
H. R. 2419—419 

‘‘(i) the number of international ports of entry in 

the State; 

‘‘(ii) the volume of international passenger and 

cargo entry into the State; 

‘‘(iii) the geographic location of the State and if 

the location or types of agricultural commodities produced in the State are conducive to agricultural pest 

and disease establishment due to the climate, crop 

diversity, or natural resources (including unique plant 

species) of the State; and 

‘‘(iv) whether the Secretary has determined that 

an agricultural pest or disease in the State is a Federal 

concern ; and 

‘‘(B) the early plant pest detection and surveillance 

activities supported with the funds will likely— 

‘‘(i) prevent the introduction and establishment of 

plant pests; and 

‘‘(ii) provide a comprehensive approach to compliment Federal detection efforts. 

‘‘(7) REPORTING REQUIREMENT.—Not later than 90 days 

after the date of completion of an early plant pest detection 

and surveillance activity conducted by a State department of 

agriculture using funds provided under this section, the State 

department of agriculture shall submit to the Secretary a report 

that describes the purposes and results of the activities. 

‘‘(c) THREAT IDENTIFICATION AND MITIGATION PROGRAM.— ‘‘(1) ESTABLISHMENT.—The Secretary shall establish a 

threat identification and mitigation program to determine and 

address threats to the domestic production of crops. 

‘‘(2) REQUIREMENTS.—In conducting the program established under paragraph (1), the Secretary shall— 

‘‘(A) develop risk assessments of the potential threat 

to the agricultural industry of the United States from foreign sources; 

‘‘(B) collaborate with the National Plant Board; and 

‘‘(C) implement action plans for high consequence plant 

pest and diseases to assist in preventing the introduction 

and widespread dissemination of new plant pest and disease threats in the United States. 

‘‘(3) REPORTS.—Not later than 1 year after the date of 

enactment of this paragraph, and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate a report on the action 

plans described in paragraph (2), including an accounting of 

funds expended on the action plans. 

‘‘(d) SPECIALTY CROP CERTIFICATION AND RISK MANAGEMENT

SYSTEMS.—The Secretary shall provide funds and technical assistance to specialty crop growers, organizations representing specialty 

crop growers, and State and local agencies working with specialty 

crop growers and organizations for the development and 

implementation of— 

‘‘(1) audit-based certification systems, such as best management practices— 

‘‘(A) to address plant pests; and 

‘‘(B) to mitigate the risk of plant pests in the movement 

of plants and plant products; and 
H. R. 2419—420 

‘‘(2) nursery plant pest risk management systems, in 

collaboration with the nursery industry, research institutions, 

and other appropriate entities— 

‘‘(A) to enable growers to identify and prioritize nursery 

plant pests and diseases of regulatory significance; 

‘‘(B) to prevent the introduction, establishment, and 

spread of those plant pests and diseases; and 

‘‘(C) to reduce the risk of and mitigate those plant 

pests and diseases. 

‘‘(e) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section— 

‘‘(1) $12,000,000 for fiscal year 2009; 

‘‘(2) $45,000,000 for fiscal year 2010; 

‘‘(3) $50,000,000 for fiscal year 2011; and 

‘‘(4) $50,000,000 for fiscal year 2012 and each fiscal year 

thereafter.’’. 

(b) CONGRESSIONAL DISAPPROVAL.—Congress disapproves the 

rule submitted by the Secretary of Agriculture relating to costsharing for animal and plant health emergency programs (68 Fed. 

Reg. 40541 (2003)), and such rule shall have no force or effect. 

SEC. 10202. NATIONAL CLEAN PLANT NETWORK. 

(a) IN GENERAL.—The Secretary shall establish a program to 

be known as the ‘‘National Clean Plant Network’’ (referred to in 

this section as the ‘‘Program’’). 

(b) REQUIREMENTS.—Under the Program, the Secretary shall 

establish a network of clean plant centers for diagnostic and 

pathogen elimination services to— 

(1) produce clean propagative plant material; and 

(2) maintain blocks of pathogen-tested plant material in 

sites located throughout the United States. 

(c) AVAILABILITY OF CLEAN PLANT SOURCE MATERIAL.—Clean 

plant source material may be made available to— 

(1) a State for a certified plant program of the State; 

and 

(2) private nurseries and producers. 

(d) CONSULTATION AND COLLABORATION.—In carrying out the 

Program, the Secretary shall— 

(1) consult with State departments of agriculture, land 

grant universities, and NLGCA Institutions (as defined in section 1404 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and 

(2) to the extent practicable and with input from the appropriate State officials and industry representatives, use existing 

Federal or State facilities to serve as clean plant centers. 

(e) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the Program $5,000,000 

for each of fiscal years 2009 through 2012, to remain available 

until expended. 

SEC. 10203. PLANT PROTECTION. 

(a) REVIEW OF PAYMENT OF COMPENSATION.—Section 415(e) 

of the Plant Protection Act (7 U.S.C. 7715(e)) is amended in the 

second sentence by striking ‘‘of longer than 60 days’’. 

(b) SECRETARIAL DISCRETION.—Section 442(c) of the Plant 

Protection Act (7 U.S.C. 7772(c)) is amended by striking ‘‘of longer 

than 60 days’’. 
H. R. 2419—421 

(c) SUBPOENA AUTHORITY.—Section 423 of the Plant Protection 

Act (7 U.S.C. 7733) is amended— 

(1) by striking subsection (a) and inserting the following: 

‘‘(a) AUTHORITY TO ISSUE.—The Secretary shall have the power 

to subpoena the attendance and testimony of any witness, the 

production of all evidence (including books, papers, documents, electronically stored information, and other tangible things that constitute or contain evidence), or to require the person to whom 

the subpoena is directed to permit the inspection of premises 

relating to the administration or enforcement of this title or any 

matter under investigation in connection with this title.’’; 

(2) in subsection (b), by striking ‘‘documentary’’; and 

(3) in subsection (c)— 

(A) in the first sentence, by striking ‘‘testimony of 

any witness and the production of documentary evidence’’ 

and inserting ‘‘testimony of any witness, the production 

of evidence, or the inspection of premises’’; and 

(B) in the second sentence, by striking ‘‘question or 

to produce documentary evidence’’ and inserting ‘‘question, 

produce evidence, or permit the inspection of premises’’. 

(d) WILLFUL VIOLATIONS.—Section 424(b)(1)(A) of the Plant 

Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by striking ‘‘and 

$500,000 for all violations adjudicated in a single proceeding’’ and 

inserting ‘‘$500,000 for all violations adjudicated in a single proceeding if the violations do not include a willful violation, and 

$1,000,000 for all violations adjudicated in a single proceeding 

if the violations include a willful violation’’. 

SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND OVERSIGHT OF CERTAIN REGULATED ARTICLES. 

(a) IN GENERAL.—Not later than 18 months after the date 

of enactment of this Act, the Secretary shall— 

(1) take action on each issue identified in the document 

entitled ‘‘Lessons Learned and Revisions under Consideration 

for APHIS’ Biotechnology Framework’’, dated October 4, 2007; 

and 

(2) as the Secretary considers appropriate, promulgate 

regulations to improve the management and oversight of articles regulated under the Plant Protection Act (7 U.S.C. 7701 

et seq.). 

(b) INCLUSIONS.—In carrying out subsection (a), the Secretary 

shall take actions that are designed to enhance— 

(1) the quality and completeness of records; 

(2) the availability of representative samples; 

(3) the maintenance of identity and control in the event 

of an unauthorized release; 

(4) corrective actions in the event of an unauthorized 

release; 

(5) protocols for conducting molecular forensics; 

(6) clarity in contractual agreements; 

(7) the use of the latest scientific techniques for isolation 

and confinement distances; 

(8) standards for quality management systems and effective 

research; and 

(9) the design of electronic permits to store documents 

and other information relating to the permit and notification 

processes. 
H. R. 2419—422 

(c) CONSIDERATION.—In carrying out subsection (a), the Secretary shall consider— 

(1) establishing— 

(A) a system of risk-based categories to classify each 

regulated article; 

(B) a means to identify regulated articles (including 

the retention of seed samples); and 

(C) standards for isolation and containment distances; 

and 

(2) requiring permit holders— 

(A) to maintain a positive chain of custody; 

(B) to provide for the maintenance of records; 

(C) to provide for the accounting of material; 

(D) to conduct periodic audits; 

(E) to establish an appropriate training program; 

(F) to provide contingency and corrective action plans; 

and 

(G) to submit reports as the Secretary considers to 

be appropriate. 

SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND. 

(a) DEFINITIONS.—In this section: 

(1) AUTHORIZED EQUIPMENT.— 

(A) IN GENERAL.—The term ‘‘authorized equipment’’ 

means any equipment necessary for the management of 

forest land. 

(B) INCLUSIONS.—The term ‘‘authorized equipment’’ 

includes— 

(i) cherry pickers; 

(ii) equipment necessary for— 

(I) the construction of staging and marshalling 

areas; 

(II) the planting of trees; and 

(III) the surveying of forest land; 

(iii) vehicles capable of transporting harvested 

trees; 

(iv) wood chippers; and 

(v) any other appropriate equipment, as determined by the Secretary. 

(2) FUND.—The term ‘‘Fund’’ means the Pest and Disease 

Revolving Loan Fund established by subsection (b). 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Agriculture, acting through the Deputy Chief of the State 

and Private Forestry organization. 

(b) ESTABLISHMENT OF FUND.—There is established in the 

Treasury of the United States a revolving fund, to be known as 

the ‘‘Pest and Disease Revolving Loan Fund’’, consisting of such 

amounts as are appropriated to the Fund under subsection (f). 

(c) EXPENDITURES FROM FUND.— 

(1) IN GENERAL.—Subject to paragraph (2), on request by 

the Secretary, the Secretary of the Treasury shall transfer 

from the Fund to the Secretary such amounts as the Secretary 

determines are necessary to provide loans under subsection 

(e). 

(2) ADMINISTRATIVE EXPENSES.—An amount not exceeding 

10 percent of the amounts in the Fund shall be available 
H. R. 2419—423 

for each fiscal year to pay the administrative expenses necessary to carry out this section. 

(d) TRANSFERS OF AMOUNTS.— 

(1) IN GENERAL.—The amounts required to be transferred 

to the Fund under this section shall be transferred at least 

monthly from the general fund of the Treasury to the Fund 

on the basis of estimates made by the Secretary of the Treasury. 

(2) ADJUSTMENTS.—Proper adjustment shall be made in 

amounts subsequently transferred to the extent prior estimates 

were in excess of or less than the amounts required to be 

transferred. 

(e) USES OF FUND.— 

(1) LOANS.— 

(A) IN GENERAL.—The Secretary shall use amounts 

in the Fund to provide loans to eligible units of local 

government to finance purchases of authorized equipment 

to monitor, remove, dispose of, and replace infested trees 

that are located— 

(i) on land under the jurisdiction of the eligible 

units of local government; and 

(ii) within the borders of quarantine areas infested 

by plant pests. 

(B) MAXIMUM AMOUNT.—The maximum amount of a 

loan that may be provided by the Secretary to an eligible 

unit of local government under this subsection shall be 

the lesser of— 

(i) the amount that the eligible unit of local government has appropriated to finance purchases of authorized equipment in accordance with subparagraph (A); 

or 

(ii) $5,000,000. 

(C) INTEREST RATE.—The interest rate on any loan 

made by the Secretary under this paragraph shall be a 

rate equal to 2 percent. 

(D) REPORT.—Not later than 180 days after the date 

on which an eligible unit of local government receives a 

loan provided by the Secretary under subparagraph (A), 

the eligible unit of local government shall submit to the 

Secretary a report that describes each purchase made by 

the eligible unit of local government using assistance provided through the loan. 

(2) LOAN REPAYMENT SCHEDULE.— 

(A) IN GENERAL.—To be eligible to receive a loan from 

the Secretary under paragraph (1), in accordance with each 

requirement described in subparagraph (B), an eligible unit 

of local government shall enter into an agreement with 

the Secretary to establish a loan repayment schedule 

relating to the repayment of the loan. 

(B) REQUIREMENTS RELATING TO LOAN REPAYMENT

SCHEDULE.—A loan repayment schedule established under 

subparagraph (A) shall require the eligible unit of local 

government— 

(i) to repay to the Secretary of the Treasury, not 

later than 1 year after the date on which the eligible 

unit of local government receives a loan under paragraph (1), and semiannually thereafter, an amount 

equal to the quotient obtained by dividing— 
H. R. 2419—424 

(I) the principal amount of the loan (including 

interest); by 

(II) the total quantity of payments that the 

eligible unit of local government is required to 

make during the repayment period of the loan; 

and 

(ii) not later than 20 years after the date on which 

the eligible unit of local government receives a loan 

under paragraph (1), to complete repayment to the 

Secretary of the Treasury of the loan made under 

this section (including interest). 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Fund such sums as are necessary to 

carry out this section. 

SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST 

AND DISEASE PREVENTION ACTIVITIES. 

Section 431 of the Plant Protection Act (7 U.S.C. 7751) is 

amended by adding at the end the following: 

‘‘(f) TRANSFER OF COOPERATIVE AGREEMENT FUND.— 

‘‘(1) IN GENERAL.—A State may provide to a unit of local 

government in the State described in paragraph (2) any costsharing assistance or financing mechanism provided to the 

State under a cooperative agreement entered into under this 

Act between the Secretary and the State relating to the eradication, prevention, control, or suppression of plant pests. 

‘‘(2) REQUIREMENTS.—To be eligible for assistance or 

financing under paragraph (1), a unit of local government shall 

be— 

‘‘(A) engaged in any activity relating to the eradication, 

prevention, control, or suppression of the plant pest infestation covered under the cooperative agreement between the 

Secretary and the State; and 

‘‘(B) capable of documenting each plant pest infestation 

eradication, prevention, control, or suppression activity generally carried out by— 

‘‘(i) the Department of Agriculture; or 

‘‘(ii) the State department of agriculture that has 

jurisdiction over the unit of local government.’’. 

Subtitle C—Organic Agriculture 

SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM. 

Section 10606 of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 6523) is amended— 

(1) in subsection (a), by striking ‘‘$5,000,000 for fiscal year 

2002’’ and inserting ‘‘$22,000,000 for fiscal year 2008’’; 

(2) in subsection (b)(2), by striking ‘‘$500’’ and inserting 

‘‘$750’’; and 

(3) by adding at the end the following: 

‘‘(c) REPORTING.—Not later than March 1 of each year, the 

Secretary shall submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the requests 

by, disbursements to, and expenditures for each State under the 
H. R. 2419—425 

program during the current and previous fiscal year, including 

the number of producers and handlers served by the program 

in the previous fiscal year.’’. 

SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES. 

Section 7407 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 5925c) is amended to read as follows: 

‘‘SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES. 

‘‘(a) IN GENERAL.—The Secretary shall collect and report data 

on the production and marketing of organic agricultural products. 

‘‘(b) REQUIREMENTS.—In carrying out subsection (a), the Secretary shall, at a minimum— 

‘‘(1) collect and distribute comprehensive reporting of prices 

relating to organically produced agricultural products; 

‘‘(2) conduct surveys and analysis and publish reports 

relating to organic production, handling, distribution, retail, 

and trend studies (including consumer purchasing patterns); 

and 

‘‘(3) develop surveys and report statistical analysis on 

organically produced agricultural products. 

‘‘(c) REPORT.—Not later than 180 days after the date of enactment of this subsection, the Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a report 

that— 

‘‘(1) describes the progress that has been made in implementing this section; and 

‘‘(2) identifies any additional production and marketing 

data needs. 

‘‘(d) FUNDING.— ‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall use to carry out this section 

$5,000,000, to remain available until expended. 

‘‘(2) ADDITIONAL FUNDING.—In addition to funds made 

available under paragraph (1), there are authorized to be appropriated to carry out this section not more than $5,000,000 

for each of fiscal years 2008 through 2012, to remain available 

until expended.’’. 

SEC. 10303. NATIONAL ORGANIC PROGRAM. 

Section 2123 of the Organic Foods Production Act of 1990 

(7 U.S.C. 6522) is amended— 

(1) by striking ‘‘There are’’ and inserting the following: 

‘‘(a) IN GENERAL.—There are’’; and 

(2) by adding at the end the following: 

‘‘(b) NATIONAL ORGANIC PROGRAM.—Notwithstanding any other 

provision of law, in order to carry out activities under the national 

organic program established under this title, there are authorized 

to be appropriated— ‘‘(1) $5,000,000 for fiscal year 2008; 

‘‘(2) $6,500,000 for fiscal year 2009; 

‘‘(3) $8,000,000 for fiscal year 2010; 

‘‘(4) $9,500,000 for fiscal year 2011; 

‘‘(5) $11,000,000 for fiscal year 2012; and 

‘‘(6) in addition to those amounts, such additional sums 

as are necessary for fiscal year 2009 and each fiscal year 

thereafter.’’. 
H. R. 2419—426 

Subtitle D—Miscellaneous 

SEC. 10401. NATIONAL HONEY BOARD. 

Section 7(c) of the Honey Research, Promotion, and Consumer 

Information Act (7 U.S.C. 4606(c)) is amended by adding at the 

end the following: 

‘‘(12) REFERENDUM REQUIREMENT.— 

‘‘(A) DEFINITION OF EXISTING HONEY BOARD.—The term 

‘existing Honey Board’ means the Honey Board in effect 

on the date of enactment of this paragraph. 

‘‘(B) CONDUCT OF REFERENDA.—Notwithstanding any 

other provision of law, subject to subparagraph (C), the 

order providing for the establishment and operation of the 

existing Honey Board shall continue in force, until the 

Secretary first conducts, at the earliest practicable date, 

but not later than 180 days after the date of enactment 

of this paragraph, referenda on orders to establish a honey 

packer-importer board or a United States honey producer 

board. 

‘‘(C) REQUIREMENTS.—In conducting referenda under 

subparagraph (B), and in exercising fiduciary responsibilities in any transition to any 1 or more successor boards, 

the Secretary shall— 

‘‘(i) conduct a referendum of eligible United States 

honey producers for the establishment of a marketing 

board solely for United States honey producers; 

‘‘(ii) conduct a referendum of eligible packers, 

importers, and handlers of honey for the establishment 

of a marketing board for packers, importers, and handlers of honey; 

‘‘(iii) notwithstanding the timing of the referenda 

required under clauses (i) and (ii) or of the establishment of any 1 or more successor boards pursuant to 

those referenda, ensure that the rights and interests 

of honey producers, importers, packers, and handlers 

of honey are equitably protected in any disposition 

of the assets, facilities, intellectual property, and programs of the existing Honey Board and in the transition to any 1 or more new successor marketing boards; 

‘‘(iv) ensure that the existing Honey Board continues in operation until such time as the Secretary 

determines that— 

‘‘(I) any 1 or more successor boards, if 

approved, are operational; and 

‘‘(II) the interests of producers, importers, 

packers, and handlers of honey can be equitably 

protected during any remaining period in which 

a referendum on a successor board or the establishment of such a board is pending; and 

‘‘(v) discontinue collection of assessments under 

the order establishing the existing Honey Board on 

the date the Secretary requires that collections commence pursuant to an order approved in a referendum 

by eligible producers or processors and importers of 

honey. 
H. R. 2419—427 

‘‘(D) HONEY BOARD REFERENDUM.—If 1 or more orders 

are approved pursuant to paragraph (C)— 

‘‘(i) the Secretary shall not be required to conduct 

a continuation referendum on the order in existence 

on the date of enactment of this paragraph; and 

‘‘(ii) that order shall be terminated pursuant to 

the provisions of the order.’’. 

SEC. 10402. IDENTIFICATION OF HONEY. 

(a) IN GENERAL.—Section 203(h) of the Agricultural Marketing 

Act of 1946 (7 U.S.C. 1622(h)) is amended— 

(1) by designating the first through sixth sentences as 

paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), respectively; 

and 

(2) by adding at the end the following: 

‘‘(6) IDENTIFICATION OF HONEY.— ‘‘(A) IN GENERAL.—The use of a label or advertising 

material on, or in conjunction with, packaged honey that 

bears any official certificate of quality, grade mark or statement, continuous inspection mark or statement, sampling 

mark or statement, or any combination of the certificates, 

marks, or statements of the Department of Agriculture 

is hereby prohibited under this Act unless there appears 

legibly and permanently in close proximity (such as on 

the same side(s) or surface(s)) to the certificate, mark, 

or statement, and in at least a comparable size, the 1 

or more names of the 1 or more countries of origin of 

the lot or container of honey, preceded by the words 

‘Product of’ or other words of similar meaning. 

‘‘(B) VIOLATION.—A violation of the requirements of 

subparagraph (A) may be deemed by the Secretary to be 

sufficient cause for debarment from the benefits of this 

Act only with respect to honey.’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) take effect on the date that is 1 year after the date of enactment 

of this Act. 

SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY 

CROPS. 

(a) GRANTS AUTHORIZED.—The Secretary may make grants 

under this section to an eligible entity described in subsection 

(b)— 

(1) to improve the cost-effective movement of specialty crops 

to local, regional, national, and international markets; and 

(2) to address regional intermodal transportation deficiencies that adversely affect the movement of specialty crops 

to markets inside or outside the United States. 

(b) ELIGIBLE GRANT RECIPIENTS.—Grants may be made under 

this section to any of, or any combination of: 

(1) State and local governments. 

(2) Grower cooperatives. 

(3) National, State, or regional organizations of producers, 

shippers, or carriers. 

(4) Other entities as determined to be appropriate by the 

Secretary. 

(c) MATCHING FUNDS.—The recipient of a grant under this 

section shall contribute an amount of non-Federal funds toward 

the project for which the grant is provided that is at least equal 
H. R. 2419—428 

to the amount of grant funds received by the recipient under this 

section. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section such sums as are 

necessary for each of fiscal years 2008 through 2012. 

SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS. 

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary shall make payments to producers 

of the 2007 crop of asparagus for market loss resulting from imports 

during the 2004 through 2007 crop years. 

(b) PAYMENT RATE.—The payment rate for a payment under 

this section shall be based on the reduction in revenue received 

by asparagus producers associated with imports during the 2004 

through 2007 crop years. 

(c) PAYMENT QUANTITY.—The payment quantity for asparagus 

for which the producers on a farm are eligible for payments under 

this section shall be equal to the average quantity of the 2003 

crop of asparagus produced by producers on the farm. 

(d) FUNDING.— 

(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

shall make available $15,000,000 of the funds of the Commodity 

Credit Corporation to carry out a program to provide market 

loss payments to producers of asparagus under this section. 

(2) ALLOCATION.—Of the amount made available under 

paragraph (1), the Secretary shall use— 

(A) $7,500,000 to make payments to producers of asparagus for the fresh market; and 

(B) $7,500,000 to make payments to producers of asparagus for the processed or frozen market. 

TITLE XI—LIVESTOCK 

SEC. 11001. LIVESTOCK MANDATORY REPORTING. 

(a) WEB SITE IMPROVEMENTS AND USER EDUCATION.— (1) IN GENERAL.—Section 251(g) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1636(g)) is amended to read as 

follows: 

‘‘(g) ELECTRONIC REPORTING AND PUBLISHING.— ‘‘(1) IN GENERAL.—The Secretary shall, to the maximum 

extent practicable, provide for the reporting and publishing 

of the information required under this subtitle by electronic 

means. 

‘‘(2) IMPROVEMENTS AND EDUCATION.— 

‘‘(A) ENHANCED ELECTRONIC PUBLISHING.—The Secretary shall develop and implement an enhanced system 

of electronic publishing to disseminate information collected 

pursuant to this subtitle. Such system shall— 

‘‘(i) present information in a format that can be 

readily understood by producers, packers, and other 

market participants; 

‘‘(ii) adhere to the publication deadlines in this 

subtitle; 

‘‘(iii) present information in charts and graphs, 

as appropriate; 
H. R. 2419—429 

‘‘(iv) present comparative information for prior 

reporting periods, as the Secretary considers appropriate; and 

‘‘(v) be updated as soon as practicable after 

information is reported to the Secretary. 

‘‘(B) EDUCATION.—The Secretary shall carry out a 

market news education program to educate the public and 

persons in the livestock and meat industries about— 

‘‘(i) usage of the system developed under subparagraph (A); and 

‘‘(ii) interpreting and understanding information 

collected and disseminated through such system.’’. 

(2) APPLICABILITY.— 

(A) ENHANCED REPORTING.—The Secretary of Agriculture shall develop and implement the system required 

under paragraph (2)(A) of section 251(g) of the Agricultural 

Marketing Act of 1946 (7 U.S.C. 1636(g)), as amended 

by paragraph (1), not later than one year after the date 

on which the Secretary determines sufficient funds have 

been appropriated pursuant to subsection (c). 

(B) CURRENT SYSTEM.—Notwithstanding the amendment made by paragraph (1), the Secretary shall continue 

to use the information format for disseminating information 

under subtitle B of the Agricultural Marketing Act of 1946 

(7 U.S.C. 1621 et seq.) in effect on the date of the enactment 

of this Act at least until the date that is two years after 

the date on which the Secretary makes the determination 

referred to in subparagraph (A). 

(b) STUDY AND REPORT.— (1) STUDY.—The Secretary shall conduct a study on the 

effects of requiring packer processing plants to report to the 

Secretary information on wholesale pork cuts (including price 

and volume information), including— 

(A) the positive or negative economic effects on producers and consumers; and 

(B) the effects of a confidentiality requirement on 

mandatory reporting. 

(2) INFORMATION.—During the period preceding the submission of the report under paragraph (3), the Secretary may 

collect, and each packer processing plant shall provide, such 

information as is necessary to enable the Secretary to conduct 

the study required under paragraph (1). 

(3) REPORT.—Not later than one year after the date of 

the enactment of this Act, the Secretary shall submit to the 

Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the 

Senate a report on the results of the study conducted under 

paragraph (1). 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as may be necessary to carry out 

this section. 

SEC. 11002. COUNTRY OF ORIGIN LABELING. 

Subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C. 

1638 et seq.) is amended— 

(1) in section 281(2)(A)— 

(A) in clause (v), by striking ‘‘and’’; 
H. R. 2419—430 

(B) in clause (vi), by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(vii) meat produced from goats; 

‘‘(viii) chicken, in whole and in part; 

‘‘(ix) ginseng; 

‘‘(x) pecans; and 

‘‘(xi) macadamia nuts.’’; 

(2) in section 282— 

(A) in subsection (a), by striking paragraphs (2) and 

(3) and inserting the following: 

‘‘(2) DESIGNATION OF COUNTRY OF ORIGIN FOR BEEF, LAMB, 

PORK, CHICKEN, AND GOAT MEAT.— 

‘‘(A) UNITED STATES COUNTRY OF ORIGIN.—A retailer 

of a covered commodity that is beef, lamb, pork, chicken, 

or goat meat may designate the covered commodity as 

exclusively having a United States country of origin only 

if the covered commodity is derived from an animal that 

was— 

‘‘(i) exclusively born, raised, and slaughtered in 

the United States; 

‘‘(ii) born and raised in Alaska or Hawaii and 

transported for a period of not more than 60 days 

through Canada to the United States and slaughtered 

in the United States; or 

‘‘(iii) present in the United States on or before 

July 15, 2008, and once present in the United States, 

remained continuously in the United States. 

‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.— ‘‘(i) IN GENERAL.—A retailer of a covered commodity that is beef, lamb, pork, chicken, or goat meat 

that is derived from an animal that is— 

‘‘(I) not exclusively born, raised, and slaughtered in the United States, 

‘‘(II) born, raised, or slaughtered in the United 

States, and 

‘‘(III) not imported into the United States for 

immediate slaughter, 

may designate the country of origin of such covered 

commodity as all of the countries in which the animal 

may have been born, raised, or slaughtered. 

‘‘(ii) RELATION TO GENERAL REQUIREMENT.— 

Nothing in this subparagraph alters the mandatory 

requirement to inform consumers of the country of 

origin of covered commodities under paragraph (1). 

‘‘(C) IMPORTED FOR IMMEDIATE SLAUGHTER.—A retailer 

of a covered commodity that is beef, lamb, pork, chicken, 

or goat meat that is derived from an animal that is 

imported into the United States for immediate slaughter 

shall designate the origin of such covered commodity as— 

‘‘(i) the country from which the animal was 

imported; and 

‘‘(ii) the United States. 

‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A retailer of a 

covered commodity that is beef, lamb, pork, chicken, or 

goat meat that is derived from an animal that is not 

born, raised, or slaughtered in the United States shall 
H. R. 2419—431 

designate a country other than the United States as the 

country of origin of such commodity. 

‘‘(E) GROUND BEEF, PORK, LAMB, CHICKEN, AND GOAT.— 

The notice of country of origin for ground beef, ground 

pork, ground lamb, ground chicken, or ground goat shall 

include— 

‘‘(i) a list of all countries of origin of such ground 

beef, ground pork, ground lamb, ground chicken, or 

ground goat; or 

‘‘(ii) a list of all reasonably possible countries of 

origin of such ground beef, ground pork, ground lamb, 

ground chicken, or ground goat. 

‘‘(3) DESIGNATION OF COUNTRY OF ORIGIN FOR FISH.— 

‘‘(A) IN GENERAL.—A retailer of a covered commodity 

that is farm-raised fish or wild fish may designate the 

covered commodity as having a United States country of 

origin only if the covered commodity— 

‘‘(i) in the case of farm-raised fish, is hatched, 

raised, harvested, and processed in the United States; 

and 

‘‘(ii) in the case of wild fish, is— 

‘‘(I) harvested in the United States, a territory 

of the United States, or a State, or by a vessel 

that is documented under chapter 121 of title 46, 

United States Code, or registered in the United 

States; and 

‘‘(II) processed in the United States, a territory 

of the United States, or a State, including the 

waters thereof, or aboard a vessel that is documented under chapter 121 of title 46, United 

States Code, or registered in the United States. 

‘‘(B) DESIGNATION OF WILD FISH AND FARM-RAISED

FISH.—The notice of country of origin for wild fish and 

farm-raised fish shall distinguish between wild fish and 

farm-raised fish. 

‘‘(4) DESIGNATION OF COUNTRY OF ORIGIN FOR PERISHABLE

AGRICULTURAL COMMODITIES, GINSENG, PEANUTS, PECANS, AND

MACADAMIA NUTS.— 

‘‘(A) IN GENERAL.—A retailer of a covered commodity 

that is a perishable agricultural commodity, ginseng, peanut, pecan, or macadamia nut may designate the covered 

commodity as having a United States country of origin 

only if the covered commodity is exclusively produced in 

the United States. 

‘‘(B) STATE, REGION, LOCALITY OF THE UNITED STATES.— 

With respect to a covered commodity that is a perishable 

agricultural commodity, ginseng, peanut, pecan, or macadamia nut produced exclusively in the United States, designation by a retailer of the State, region, or locality of 

the United States where such commodity was produced 

shall be sufficient to identify the United States as the 

country of origin.’’; and 

(B) by striking subsection (d) and inserting the following: 

‘‘(d) AUDIT VERIFICATION SYSTEM.— ‘‘(1) IN GENERAL.—The Secretary may conduct an audit 

of any person that prepares, stores, handles, or distributes 
H. R. 2419—432 

a covered commodity for retail sale to verify compliance with 

this subtitle (including the regulations promulgated under section 284(b)). 

‘‘(2) RECORD REQUIREMENTS.— 

‘‘(A) IN GENERAL.—A person subject to an audit under 

paragraph (1) shall provide the Secretary with verification 

of the country of origin of covered commodities. Records 

maintained in the course of the normal conduct of the 

business of such person, including animal health papers, 

import or customs documents, or producer affidavits, may 

serve as such verification. 

‘‘(B) PROHIBITION ON REQUIREMENT OF ADDITIONAL

RECORDS.—The Secretary may not require a person that 

prepares, stores, handles, or distributes a covered commodity to maintain a record of the country of origin of 

a covered commodity other than those maintained in the 

course of the normal conduct of the business of such person.’’; and 

(3) in section 283— 

(A) by striking subsections (a) and (c); 

(B) by redesignating subsection (b) as subsection (a); 

(C) in subsection (a) (as so redesignated), by striking 

‘‘retailer’’ and inserting ‘‘retailer or person engaged in the 

business of supplying a covered commodity to a retailer’’; 

and 

(D) by adding at the end the following new subsection: 

‘‘(b) FINES.—If, on completion of the 30-day period described 

in subsection (a)(2), the Secretary determines that the retailer 

or person engaged in the business of supplying a covered commodity 

to a retailer has— 

‘‘(1) not made a good faith effort to comply with section 

282, and 

‘‘(2) continues to willfully violate section 282 with respect 

to the violation about which the retailer or person received 

notification under subsection (a)(1), 

after providing notice and an opportunity for a hearing before 

the Secretary with respect to the violation, the Secretary may 

fine the retailer or person in an amount of not more than $1,000 

for each violation.’’. 

SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 DEFINITIONS. 

Section 3 of the Agricultural Fair Practices Act of 1967 (7 

U.S.C. 2302) is amended— 

(1) by striking ‘‘When used in this Act—’’ and inserting 

‘‘In this Act:’’; 

(2) in subsection (a)— 

(A) by redesignating paragraphs (1) through (4) as 

clauses (i) through (iv), respectively; and 

(B) in clause (iv) (as so redesignated), by striking 

‘‘clause (1), (2), or (3) of this paragraph’’ and inserting 

‘‘clause (i), (ii), or (iii)’’; 

(3) by striking subsection (d); 

(4) by redesignating subsections (a), (b), (c), and (e) as 

paragraphs (3), (4), (2), (1), respectively, indenting appropriately, and moving those paragraphs so as to appear in 

numerical order; 
H. R. 2419—433 

(5) in each paragraph (as so redesignated) that does not 

have a heading, by inserting a heading, in the same style 

as the heading in the amendment made by paragraph (6), 

the text of which is comprised of the term defined in the 

paragraph; 

(6) in paragraph (2) (as so redesignated)— 

(A) by striking ‘‘The term ‘association of producers’ 

means’’ and inserting the following: 

‘‘(2) ASSOCIATION OF PRODUCERS.— 

‘‘(A) IN GENERAL.—The term ‘association of producers’ 

means’’; and 

(B) by adding at the end the following: 

‘‘(B) INCLUSION.—The term ‘association of producers’ 

includes an organization whose membership is exclusively 

limited to agricultural producers and dedicated to promoting the common interest and general welfare of producers of agricultural products.’’; and 

(7) in paragraph (3) (as so redesignated)— 

(A) by striking ‘‘The term’’ and inserting the following: 

‘‘(3) HANDLER.— ‘‘(A) IN GENERAL.—The term’’; and 

(B) by inserting after clause (iv) of subparagraph (A) 

(as redesignated by subparagraph (A) and paragraph (2)) 

the following: 

‘‘(B) EXCLUSION.—The term ‘handler’ does not include 

a person, other than a packer (as defined in section 201 

of the Packers and Stockyards Act, 1921 (7 U.S.C. 191)), 

that provides custom feeding services for a producer.’’. 

SEC. 11004. ANNUAL REPORT. 

(a) IN GENERAL.—The Packers and Stockyards Act, 1921, is 

amended— 

(1) by redesignating section 416 (7 U.S.C. 229) as section 

417; and 

(2) by inserting after section 415 (7 U.S.C. 228d) the following: 

‘‘SEC. 416. ANNUAL REPORT. 

‘‘(a) IN GENERAL.—Not later than March 1 of each year, the 

Secretary shall submit to Congress and make publicly available 

a report that— 

‘‘(1) states, for the preceding year, separately for livestock 

and poultry and separately by enforcement area category (financial, trade practice, or competitive acts and practices), with 

respect to investigations into possible violations of this Act— 

‘‘(A) the number of investigations opened; 

‘‘(B) the number of investigations that were closed 

or settled without a referral to the General Counsel of 

the Department of Agriculture; 

‘‘(C) for investigations described in subparagraph (B), 

the length of time from initiation of the investigation to 

when the investigation was closed or settled without the 

filing of an enforcement complaint; 

‘‘(D) the number of investigations that resulted in 

referral to the General Counsel of the Department of Agriculture for further action, the number of such referrals 

resolved without administrative enforcement action, and 
H. R. 2419—434 

the number of enforcement actions filed by the General 

Counsel; 

‘‘(E) for referrals to the General Counsel that resulted 

in an administrative enforcement action being filed, the 

length of time from the referral to the filing of the administrative action; 

‘‘(F) for referrals to the General Counsel that resulted 

in an administrative enforcement action being filed, the 

length of time from filing to resolution of the administrative 

enforcement action; 

‘‘(G) the number of investigations that resulted in 

referral to the Department of Justice for further action, 

and the number of civil enforcement actions filed by the 

Department of Justice on behalf of the Secretary pursuant 

to such a referral; 

‘‘(H) for referrals that resulted in a civil enforcement 

action being filed by the Department of Justice, the length 

of time from the referral to the filing of the enforcement 

action; 

‘‘(I) for referrals that resulted in a civil enforcement 

action being filed by the Department of Justice, the length 

of time from the filing of the enforcement action to resolution; and 

‘‘(J) the average civil penalty imposed in administrative 

or civil enforcement actions for violations of this Act, and 

the total amount of civil penalties imposed in all such 

enforcement actions; and 

‘‘(2) includes any other additional information the Secretary 

considers important to include in the annual report. 

‘‘(b) FORMAT OF INFORMATION PROVIDED.—For subparagraphs 

(C), (E), (F), and (H) of subsection (a)(1), the Secretary may, if 

appropriate due to the number of complaints for a given category, 

provide summary statistics (including range, maximum, minimum, 

mean, and average times) and graphical representations.’’. 

(b) SUNSET.—Effective September 30, 2012, section 416 of the 

Packers and Stockyards Act, 1921, as added by subsection (a)(2), 

is repealed. 

SEC. 11005. PRODUCTION CONTRACTS. 

Title II of the Packers and Stockyards Act, 1921 (7 U.S.C. 

198 et seq.) is amended by adding at the end the following: 

‘‘SEC. 208. PRODUCTION CONTRACTS. 

‘‘(a) RIGHT OF CONTRACT PRODUCERS TO CANCEL PRODUCTION

CONTRACTS.— 

‘‘(1) IN GENERAL.—A poultry grower or swine production 

contract grower may cancel a poultry growing arrangement 

or swine production contract by mailing a cancellation notice 

to the live poultry dealer or swine contractor not later than 

the later of— 

‘‘(A) the date that is 3 business days after the date 

on which the poultry growing arrangement or swine production contract is executed; or 

‘‘(B) any cancellation date specified in the poultry 

growing arrangement or swine production contract. 

‘‘(2) DISCLOSURE.—A poultry growing arrangement or swine 

production contract shall clearly disclose— 
H. R. 2419—435 

‘‘(A) the right of the poultry grower or swine production 

contract grower to cancel the poultry growing arrangement 

or swine production contract; 

‘‘(B) the method by which the poultry grower or swine 

production contract grower may cancel the poultry growing 

arrangement or swine production contract; and 

‘‘(C) the deadline for canceling the poultry growing 

arrangement or swine production contract. 

‘‘(b) REQUIRED DISCLOSURE OF ADDITIONAL CAPITAL INVESTMENTS IN PRODUCTION CONTRACTS.— 

‘‘(1) IN GENERAL.—A poultry growing arrangement or swine 

production contract shall contain on the first page a statement 

identified as ‘Additional Capital Investments Disclosure Statement’, which shall conspicuously state that additional large 

capital investments may be required of the poultry grower 

or swine production contract grower during the term of the 

poultry growing arrangement or swine production contract. 

‘‘(2) APPLICATION.—Paragraph (1) shall apply to any poultry 

growing arrangement or swine production contract entered into, 

amended, altered, modified, renewed, or extended after the 

date of the enactment of this section. 

‘‘SEC. 209. CHOICE OF LAW AND VENUE. 

‘‘(a) LOCATION OF FORUM.—The forum for resolving any dispute 

among the parties to a poultry growing arrangement or swine 

production or marketing contract that arises out of the arrangement 

or contract shall be located in the Federal judicial district in which 

the principle part of the performance takes place under the arrangement or contract. 

‘‘(b) CHOICE OF LAW.—A poultry growing arrangement or swine 

production or marketing contract may specify which State’s law 

is to apply to issues governed by State law in any dispute arising 

out of the arrangement or contract, except to the extent that doing 

so is prohibited by the law of the State in which the principal 

part of the performance takes place under the arrangement or 

contract. 

‘‘SEC. 210. ARBITRATION. 

‘‘(a) IN GENERAL.—Any livestock or poultry contract that contains a provision requiring the use of arbitration to resolve any 

controversy that may arise under the contract shall contain a provision that allows a producer or grower, prior to entering the contract 

to decline to be bound by the arbitration provision. 

‘‘(b) DISCLOSURE.—Any livestock or poultry contract that contains a provision requiring the use of arbitration shall contain 

terms that conspicuously disclose the right of the contract producer 

or grower, prior to entering the contract, to decline the requirement 

to use arbitration to resolve any controversy that may arise under 

the livestock or poultry contract. 

‘‘(c) DISPUTE RESOLUTION.—Any contract producer or grower 

that declines a requirement of arbitration pursuant to subsection 

(b) has the right, to nonetheless seek to resolve any controversy 

that may arise under the livestock or poultry contract, if, after 

the controversy arises, both parties consent in writing to use 

arbitration to settle the controversy. 

‘‘(d) APPLICATION.—Subsections (a) (b) and (c) shall apply to 

any contract entered into, amended, altered, modified, renewed, 
H. R. 2419—436 

or extended after the date of the enactment of the Food, Conservation, and Energy Act of 2008 . 

‘‘(e) UNLAWFUL PRACTICE.—Any action by or on behalf of a 

packer, swine contractor, or live poultry dealer that violates this 

section (including any action that has the intent or effect of limiting 

the ability of a producer or grower to freely make a choice described 

in subsection (b)) is an unlawful practice under this Act. 

‘‘(f) REGULATIONS.—The Secretary shall promulgate regulations 

to— 

‘‘(1) carry out this section; and 

‘‘(2) establish criteria that the Secretary will consider in 

determining whether the arbitration process provided in a contract provides a meaningful opportunity for the grower or producer to participate fully in the arbitration process.’’. 

SEC. 11006. REGULATIONS. 

As soon as practicable, but not later than 2 years after the 

date of the enactment of this Act, the Secretary of Agriculture 

shall promulgate regulations with respect to the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) to establish criteria that 

the Secretary will consider in determining— 

(1) whether an undue or unreasonable preference or advantage has occurred in violation of such Act; 

(2) whether a live poultry dealer has provided reasonable 

notice to poultry growers of any suspension of the delivery 

of birds under a poultry growing arrangement; 

(3) when a requirement of additional capital investments 

over the life of a poultry growing arrangement or swine production contract constitutes a violation of such Act; and 

(4) if a live poultry dealer or swine contractor has provided 

a reasonable period of time for a poultry grower or a swine 

production contract grower to remedy a breach of contract 

that could lead to termination of the poultry growing arrangement or swine production contract. 

SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION PROGRAM. 

It is the sense of Congress that— 

(1) the Secretary of Agriculture should recognize the threat 

feral swine pose to the domestic swine population and the 

entire livestock industry; 

(2) keeping the United States commercial swine herd free 

of pseudorabies is essential to maintaining and growing pork 

export markets; 

(3) the establishment and continued support of a swine 

surveillance system will assist the swine industry in the monitoring, surveillance, and eradication of pseudorabies; and 

(4) pseudorabies eradication is a high priority that the 

Secretary should carry out under the authorities of the Animal 

Health Protection Act. 

SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE FEVER 

TICK ERADICATION PROGRAM. 

It is the sense of Congress that— 

(1) the cattle fever tick and the southern cattle tick are 

vectors of the causal agent of babesiosis, a severe and often 

fatal disease of cattle; and 
H. R. 2419—437 

(2) implementing a national strategic plan for the cattle 

fever tick eradication program is a high priority that the Secretary of Agriculture should carry out in order to— 

(A) prevent the entry of cattle fever ticks into the 

United States; 

(B) enhance and maintain an effective surveillance program to rapidly detect any cattle fever tick incursions; 

and 

(C) research, identify, and procure the tools and knowledge necessary to prevent and eradicate cattle fever ticks 

in the United States. 

SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER. 

(a) FUNDING.—Section 375(e)(6) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended by striking 

subparagraphs (B) and (C) and inserting the following: 

‘‘(B) MANDATORY FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry 

out this section $1,000,000 for fiscal year 2008, to remain 

available until expended. 

‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There is 

authorized to be appropriated to the Secretary to carry 

out this section $10,000,000 for each of fiscal years 2008 

through 2012.’’. 

(b) REPEAL OF REQUIREMENT TO PRIVATIZE REVOLVING FUND.— 

(1) IN GENERAL.—Section 375 of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 2008j) is amended by 

striking subsection (j). 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) takes effect on May 1, 2007. 

SEC. 11010. TRICHINAE CERTIFICATION PROGRAM. 

(a) VOLUNTARY TRICHINAE CERTIFICATION.— 

(1) ESTABLISHMENT.—Not later than 90 days after the date 

of the enactment of this Act, the Secretary of Agriculture shall 

establish a voluntary trichinae certification program. Such program shall include the facilitation of the export of pork products 

and certification services related to such products. 

(2) REGULATIONS.—The Secretary shall issue final regulations to implement the program under paragraph (1) not later 

than 90 days after the date of the enactment of this Act. 

(3) REPORT.—If final regulations are not published in 

accordance with paragraph (2) within 90 days of the date of 

the enactment of this Act, the Secretary shall submit to the 

Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the 

Senate a report containing— 

(A) an explanation of why the final regulations have 

not been issued in accordance with paragraph (2); and 

(B) the date on which the Secretary expects to issue 

such final regulations. 

(b) FUNDING.—Subject to the availability of appropriations 

under subsection (d)(1)(A) of section 10405 of the Animal Health 

Protection Act (7 U.S.C. 8304), as added by subsection (c), the 

Secretary shall use not less than $6,200,000 of the funds made 

available under such subsection to carry out subsection (a). 
H. R. 2419—438 

(c) AUTHORIZATION OF APPROPRIATIONS.—Section 10405 of the 

Animal Health Protection Act (7 U.S.C. 8304) is amended by adding 

at the end the following new subsection: 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) IN GENERAL.—There is authorized to be appropriated— ‘‘(A) $1,500,000 for each of fiscal years 2008 through 

2012 to carry out section 11010 of the Food, Conservation, 

and Energy Act of 2008; and 

‘‘(B) such sums as may be necessary for each of fiscal 

years 2008 through 2012 to carry out this section. 

‘‘(2) AVAILABILITY.—Funds appropriated under paragraph 

(1) shall remain available until expended.’’. 

SEC. 11011. LOW PATHOGENIC DISEASES. 

The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is 

amended— 

(1) in section 10407(d)(2)(C) (7 U.S.C. 8306(d)(2)(C)), by 

striking ‘‘of longer than 60 days’’; 

(2) in section 10409(b) (7 U.S.C. 8308(b))— 

(A) by redesignating paragraph (2) as paragraph (3); 

(B) by inserting after paragraph (1) the following new 

paragraph: 

‘‘(2) SPECIFIC COOPERATIVE PROGRAMS.—The Secretary shall 

compensate industry participants and State agencies that 

cooperate with the Secretary in carrying out operations and 

measures under subsection (a) for 100 percent of eligible costs 

relating to cooperative programs involving Federal, State, and 

industry participants to control diseases of low pathogenicity 

in accordance with regulations issued by the Secretary.’’; and 

(C) in paragraph (3) (as so redesignated), by striking 

‘‘of longer than 60 days’’; and 

(3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), by striking 

‘‘of longer than 60 days’’. 

SEC. 11012. ANIMAL PROTECTION. 

(a) WILLFUL VIOLATIONS.—Section 10414(b)(1)(A) of the Animal 

Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is amended by 

striking clause (iii) and inserting the following: 

‘‘(iii) for all violations adjudicated in a single proceeding— ‘‘(I) $500,000 if the violations do not include 

a willful violation; or ‘‘(II) $1,000,000 if the violations include 1 or 

more willful violations.’’. 

(b) SUBPOENA AUTHORITY.—Section 10415(a)(2) of the Animal 

Health Protection Act (7 U.S.C. 8314) is amended 

(1) by striking subparagraph (A) and inserting the following: 

‘‘(A) IN GENERAL.—The Secretary shall have the power 

to subpoena the attendance and testimony of any witness, 

the production of all evidence (including books, papers, 

documents, electronically stored information, and other tangible things that constitute or contain evidence), or to 

require the person to whom the subpoena is directed to 

permit the inspection of premises relating to the administration or enforcement of this title or any matter under 

investigation in connection with this title.’’; 

(2) in subparagraph (B), by striking ‘‘documentary’’; and 
H. R. 2419—439 

(3) in subparagraph (C)— 

(A) in clause (i), by striking ‘‘testimony of any witness 

and the production of documentary evidence’’ and inserting 

‘‘testimony of any witness, the production of evidence, or 

the inspection of premises’’; and 

(B) in clause (ii), by striking ‘‘question or to produce 

documentary evidence’’ and inserting ‘‘question, produce 

evidence, or permit the inspection of premises’’. 

SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN. 

(a) IN GENERAL.—The Secretary of Agriculture may enter into 

a cooperative agreement with an eligible entity to carry out a 

project under a national aquatic animal health plan under the 

authority of the Secretary under section 10411 of the Animal Health 

Protection Act (7 U.S.C. 8310) for the purpose of detecting, controlling, or eradicating diseases of aquaculture species and promoting 

species-specific best management practices. 

(b) COOPERATIVE AGREEMENTS BETWEEN ELIGIBLE ENTITIES

AND THE SECRETARY.— 

(1) DUTIES.—As a condition of entering into a cooperative 

agreement with the Secretary under this section, an eligible 

entity shall agree to— 

(A) assume responsibility for the non-Federal share 

of the cost of carrying out the project under the national 

aquatic health plan, as determined by the Secretary in 

accordance with paragraph (2); and 

(B) act in accordance with applicable disease and species specific best management practices relating to activities to be carried out under such project. 

(2) NON-FEDERAL SHARE.—The Secretary shall determine 

the non-Federal share of the cost of carrying out a project 

under the national aquatic health plan on a case-by-case basis 

for each such project. Such non-Federal share may be provided 

in cash or in-kind. 

(c) APPLICABILITY OF OTHER LAWS.—In carrying out this section, 

the Secretary may make use of the authorities under the Animal 

Health Protection Act (7 U.S.C. 8301 et seq.), including the 

authority to carry out operations and measures to detect, control, 

and eradicate pests and diseases and the authority to pay claims 

arising out of the destruction of any animal, article, or means 

of conveyance. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated such sums as may be necessary to carry out 

this section for each of fiscal years 2008 through 2012. 

(e) ELIGIBLE ENTITY DEFINED.—In this section, the term 

‘‘eligible entity’’ means a State, a political subdivision of a State, 

Indian tribe, or other appropriate entity, as determined by the 

Secretary of Agriculture. 

SEC. 11014. STUDY ON BIOENERGY OPERATIONS. 

(a) STUDY.—The Secretary of Agriculture shall conduct a study 

to evaluate the role of animal manure as a source of fertilizer 

and its potential additional uses. Such study shall include— 

(1) a determination of the extent to which animal manure 

is utilized as fertilizer in agricultural operations by type 

(including species and agronomic practices employed) and size; 
H. R. 2419—440 

(2) an evaluation of the potential impact on consumers 

and on agricultural operations (by size) resulting from limitations being placed on the utilization of animal manure as 

fertilizer; and 

(3) an evaluation of the effects on agriculture production 

contributable to the increased competition for animal manure 

use due to bioenergy production, including as a feedstock or 

a replacement for fossil fuels. 

(b) REPORT.—Not later than one year after the date of the 

enactment of this Act, the Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate the results 

of the study conducted under subsection (a). 

SEC. 11015. INTERSTATE SHIPMENT OF MEAT AND POULTRY 

INSPECTED BY FEDERAL AND STATE AGENCIES FOR 

CERTAIN SMALL ESTABLISHMENTS. 

(a) MEAT AND MEAT PRODUCTS.—The Federal Meat Inspection 

Act (21 U.S.C. 601 et seq.) is amended by adding at the end 

the following: 

‘‘TITLE V—INSPECTIONS BY FEDERAL 

AND STATE AGENCIES 

‘‘SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL 

AND STATE AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS. 

‘‘(a) DEFINITIONS.— ‘‘(1) APPROPRIATE STATE AGENCY.—The term ‘appropriate 

State agency’ means a State agency described in section 301(b). 

‘‘(2) DESIGNATED PERSONNEL.—The term ‘designated personnel’ means inspection personnel of a State agency that have 

undergone all necessary inspection training and certification 

to assist the Secretary in the administration and enforcement 

of this Act, including rules and regulations issued under this 

Act. 

‘‘(3) ELIGIBLE ESTABLISHMENT.—The term ‘eligible 

establishment’ means an establishment that is in compliance 

with— 

‘‘(A) the State inspection program of the State in which 

the establishment is located; and 

‘‘(B) this Act, including rules and regulations issued 

under this Act. 

‘‘(4) MEAT ITEM.—The term ‘meat item’ means— 

‘‘(A) a portion of meat; and 

‘‘(B) a meat food product. 

‘‘(5) SELECTED ESTABLISHMENT.—The term ‘selected 

establishment’ means an eligible establishment that is selected 

by the Secretary, in coordination with the appropriate State 

agency of the State in which the eligible establishment is 

located, under subsection (b) to ship carcasses, portions of carcasses, and meat items in interstate commerce. 

‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIPMENTS.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary, 

in coordination with the appropriate State agency of the State 
H. R. 2419—441 

in which an establishment is located, may select the establishment to ship carcasses, portions of carcasses, and meat items 

in interstate commerce, and place on each carcass, portion 

of a carcass, and meat item shipped in interstate commerce 

a Federal mark, stamp, tag, or label of inspection, if— 

‘‘(A) the carcass, portion of carcass, or meat item qualifies for the mark, stamp, tag, or label of inspection under 

the requirements of this Act; 

‘‘(B) the establishment is an eligible establishment; 

and 

‘‘(C) inspection services for the establishment are provided by designated personnel. 

‘‘(2) PROHIBITED ESTABLISHMENTS.—In carrying out paragraph (1), the Secretary, in coordination with an appropriate 

State agency, shall not select an establishment that— 

‘‘(A) on average, employs more than 25 employees 

(including supervisory and nonsupervisory employees), as 

defined by the Secretary; 

‘‘(B) as of the date of the enactment of this section, 

ships in interstate commerce carcasses, portions of carcasses, or meat items that are inspected by the Secretary 

in accordance with this Act; 

‘‘(C)(i) is a Federal establishment; 

‘‘(ii) was a Federal establishment that was reorganized 

on a later date under the same name or a different name 

or person by the person, firm, or corporation that controlled 

the establishment as of the date of the enactment of this 

section; or 

‘‘(iii) was a State establishment as of the date of the 

enactment of this section that— 

‘‘(I) as of the date of the enactment of this section, 

employed more than 25 employees; and 

‘‘(II) was reorganized on a later date by the person, 

firm, or corporation that controlled the establishment 

as of the date of the enactment of this section; 

‘‘(D) is in violation of this Act; 

‘‘(E) is located in a State that does not have a State 

inspection program; or 

‘‘(F) is the subject of a transition carried out in accordance with a procedure developed by the Secretary under 

paragraph (3)(A). 

‘‘(3) ESTABLISHMENTS THAT EMPLOY MORE THAN 25 

EMPLOYEES.— 

‘‘(A) DEVELOPMENT OF PROCEDURE.—The Secretary 

may develop a procedure to transition to a Federal 

establishment any establishment under this section that, 

on average, consistently employs more than 25 employees. 

‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISHMENTS.— ‘‘(i) IN GENERAL.—A State establishment that 

employs more than 25 employees but less than 35 

employees as of the date of the enactment of this 

section may be selected as a selected establishment 

under this subsection. 

‘‘(ii) PROCEDURES.—A State establishment shall be 

subject to the procedures established under subparagraph (A) beginning on the date that is 3 years after 

the effective date described in subsection (j). 
H. R. 2419—442 

‘‘(c) REIMBURSEMENT OF STATE COSTS.—The Secretary shall 

reimburse a State for costs related to the inspection of selected 

establishments in the State in accordance with Federal requirements in an amount of not less than 60 percent of eligible State 

costs. 

‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE AGENCIES.— 

‘‘(1) IN GENERAL.—The Secretary shall designate an 

employee of the Federal Government as State coordinator for 

each appropriate State agency— 

‘‘(A) to provide oversight and enforcement of this title; 

and 

‘‘(B) to oversee the training and inspection activities 

of designated personnel of the State agency. 

‘‘(2) SUPERVISION.—A State coordinator shall be under the 

direct supervision of the Secretary. 

‘‘(3) DUTIES OF STATE COORDINATOR.— 

‘‘(A) IN GENERAL.—A State coordinator shall visit 

selected establishments with a frequency that is appropriate to ensure that selected establishments are operating 

in a manner that is consistent with this Act (including 

regulations and policies under this Act). 

‘‘(B) QUARTERLY REPORTS.—A State coordinator shall, 

on a quarterly basis, submit to the Secretary a report 

that describes the status of each selected establishment 

that is under the jurisdiction of the State coordinator with 

respect to the level of compliance of each selected establishment with the requirements of this Act. 

‘‘(C) IMMEDIATE NOTIFICATION REQUIREMENT.—If a 

State coordinator determines that any selected establishment that is under the jurisdiction of the State coordinator 

is in violation of any requirement of this Act, the State 

coordinator shall— 

‘‘(i) immediately notify the Secretary of the violation; and 

‘‘(ii) deselect the selected establishment or suspend 

inspection at the selected establishment. 

‘‘(4) PERFORMANCE EVALUATIONS.—Performance evaluations of State coordinators designated under this subsection 

shall be conducted by the Secretary as part of the Federal 

agency management control system. 

‘‘(e) AUDITS.— 

‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPECTOR GENERAL

OF THE DEPARTMENT OF AGRICULTURE.—Not later than 2 years 

after the effective date described in subsection (j), and not 

less often than every 3 years thereafter, the Inspector General 

of the Department of Agriculture shall conduct an audit of 

each activity taken by the Secretary under this section for 

the period covered by the audit to determine compliance with 

this section. 

‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GENERAL OF THE

UNITED STATES.—Not earlier than 3 years, nor later than 5 

years, after the date of the enactment of this section, the 

Comptroller General of the United States shall conduct an 

audit of the implementation of this section to determine— 

‘‘(A) the effectiveness of the implementation of this 

section; and 
H. R. 2419—443 

‘‘(B) the number of selected establishments selected 

by the Secretary to ship carcasses, portions of carcasses, 

or meat items under this section. 

‘‘(f) TECHNICAL ASSISTANCE DIVISION.— 

‘‘(1) ESTABLISHMENT.—Not later than 180 days after the 

effective date described in subsection (j), the Secretary shall 

establish in the Food Safety and Inspection Service of the 

Department of Agriculture a technical assistance division to 

coordinate the initiatives of any other appropriate agency of 

the Department of Agriculture to provide— 

‘‘(A) outreach, education, and training to very small 

or certain small establishments (as defined by the Secretary); and 

‘‘(B) grants to appropriate State agencies to provide 

outreach, technical assistance, education, and training to 

very small or certain small establishments (as defined by 

the Secretary). 

‘‘(2) PERSONNEL.—The technical assistance division shall 

be comprised of individuals that, as determined by the Secretary— 

‘‘(A) are of a quantity sufficient to carry out the duties 

of the technical assistance division; and 

‘‘(B) possess appropriate qualifications and expertise 

relating to the duties of the technical assistance division. 

‘‘(g) TRANSITION GRANTS.—The Secretary may provide grants 

to appropriate State agencies to assist the appropriate State agencies in helping establishments covered by title III to transition 

to selected establishments. 

‘‘(h) VIOLATIONS.—Any selected establishment that the Secretary determines to be in violation of any requirement of this 

Act shall be transitioned to a Federal establishment in accordance 

with a procedure developed by the Secretary under subsection 

(b)(3)(A). 

‘‘(i) EFFECT.—Nothing in this section limits the jurisdiction 

of the Secretary with respect to the regulation of meat and meat 

products under this Act. 

‘‘(j) EFFECTIVE DATE.— 

‘‘(1) IN GENERAL.—This section takes effect on the date 

on which the Secretary, after providing a period of public comment (including through the conduct of public meetings or 

hearings), promulgates final regulations to carry out this section. 

‘‘(2) REQUIREMENT.—Not later than 18 months after the 

date of the enactment of this section, the Secretary shall 

promulgate final regulations in accordance with paragraph (1).’’. 

(b) POULTRY AND POULTRY PRODUCTS.—The Poultry Products 

Inspection Act (21 U.S.C. 451 et seq.) is amended by adding at 

the end the following: 

‘‘SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL 

ESTABLISHMENTS. 

‘‘(a) DEFINITIONS.— 

‘‘(1) APPROPRIATE STATE AGENCY.—The term ‘appropriate 

State agency’ means a State agency described in section 5(a)(1). 

‘‘(2) DESIGNATED PERSONNEL.—The term ‘designated personnel’ means inspection personnel of a State agency that have 
H. R. 2419—444 

undergone all necessary inspection training and certification 

to assist the Secretary in the administration and enforcement 

of this Act, including rules and regulations issued under this 

Act. 

‘‘(3) ELIGIBLE ESTABLISHMENT.—The term ‘eligible 

establishment’ means an establishment that is in compliance 

with— 

‘‘(A) the State inspection program of the State in which 

the establishment is located; and 

‘‘(B) this Act, including rules and regulations issued 

under this Act. 

‘‘(4) POULTRY ITEM.—The term ‘poultry item’ means— 

‘‘(A) a portion of poultry; and 

‘‘(B) a poultry product. 

‘‘(5) SELECTED ESTABLISHMENT.—The term ‘selected 

establishment’ means an eligible establishment that is selected 

by the Secretary, in coordination with the appropriate State 

agency of the State in which the eligible establishment is 

located, under subsection (b) to ship poultry items in interstate 

commerce. 

‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIPMENTS.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary, 

in coordination with the appropriate State agency of the State 

in which an establishment is located, may select the establishment to ship poultry items in interstate commerce, and place 

on each poultry item shipped in interstate commerce a Federal 

mark, stamp, tag, or label of inspection, if— 

‘‘(A) the poultry item qualifies for the Federal mark, 

stamp, tag, or label of inspection under the requirements 

of this Act; 

‘‘(B) the establishment is an eligible establishment; 

and 

‘‘(C) inspection services for the establishment are provided by designated personnel. 

‘‘(2) PROHIBITED ESTABLISHMENTS.—In carrying out paragraph (1), the Secretary, in coordination with an appropriate 

State agency, shall not select an establishment that— 

‘‘(A) on average, employs more than 25 employees 

(including supervisory and nonsupervisory employees), as 

defined by the Secretary; 

‘‘(B) as of the date of the enactment of this section, 

ships in interstate commerce carcasses, portions of carcasses, or poultry items that are inspected by the Secretary 

in accordance with this Act; 

‘‘(C)(i) is a Federal establishment; 

‘‘(ii) was a Federal establishment as of the date of 

the enactment of this section, and was reorganized on 

a later date under the same name or a different name 

or person by the person, firm, or corporation that controlled 

the establishment as of the date of the enactment of this 

section; or 

‘‘(iii) was a State establishment as of the date of the 

enactment of this section that— 

‘‘(I) as of the date of the enactment of this section, 

employed more than 25 employees; and 
H. R. 2419—445 

‘‘(II) was reorganized on a later date by the person, 

firm, or corporation that controlled the establishment 

as of the date of the enactment of this section; 

‘‘(D) is in violation of this Act; 

‘‘(E) is located in a State that does not have a State 

inspection program; or 

‘‘(F) is the subject of a transition carried out in accordance with a procedure developed by the Secretary under 

paragraph (3)(A). 

‘‘(3) ESTABLISHMENTS THAT EMPLOY MORE THAN 25

EMPLOYEES.— ‘‘(A) DEVELOPMENT OF PROCEDURE.—The Secretary 

may develop a procedure to transition to a Federal 

establishment any establishment under this section that, 

on average, consistently employs more than 25 employees. 

‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISHMENTS.— 

‘‘(i) IN GENERAL.—A State establishment that 

employs more than 25 employees but less than 35 

employees as of the date of the enactment of this 

section may be selected as a selected establishment 

under this subsection. 

‘‘(ii) PROCEDURES.—A State establishment shall be 

subject to the procedures established under subparagraph (A) beginning on the date that is 3 years after 

the effective date described in subsection (i). 

‘‘(c) REIMBURSEMENT OF STATE COSTS.—The Secretary shall 

reimburse a State for costs related to the inspection of selected 

establishments in the State in accordance with Federal requirements in an amount of not less than 60 percent of eligible State 

costs. 

‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE AGENCIES.— ‘‘(1) IN GENERAL.—The Secretary shall designate an 

employee of the Federal Government as State coordinator for 

each appropriate State agency— 

‘‘(A) to provide oversight and enforcement of this section; and 

‘‘(B) to oversee the training and inspection activities 

of designated personnel of the State agency. 

‘‘(2) SUPERVISION.—A State coordinator shall be under the 

direct supervision of the Secretary. 

‘‘(3) DUTIES OF STATE COORDINATOR.— ‘‘(A) IN GENERAL.—A State coordinator shall visit 

selected establishments with a frequency that is appropriate to ensure that selected establishments are operating 

in a manner that is consistent with this Act (including 

regulations and policies under this Act). 

‘‘(B) QUARTERLY REPORTS.—A State coordinator shall, 

on a quarterly basis, submit to the Secretary a report 

that describes the status of each selected establishment 

that is under the jurisdiction of the State coordinator with 

respect to the level of compliance of each selected establishment with the requirements of this Act. 

‘‘(C) IMMEDIATE NOTIFICATION REQUIREMENT.—If a 

State coordinator determines that any selected establishment that is under the jurisdiction of the State coordinator 

is in violation of any requirement of this Act, the State 

coordinator shall— 
H. R. 2419—446 

‘‘(i) immediately notify the Secretary of the violation; and 

‘‘(ii) deselect the selected establishment or suspend 

inspection at the selected establishment. 

‘‘(4) PERFORMANCE EVALUATIONS.—Performance evaluations of State coordinators designated under this subsection 

shall be conducted by the Secretary as part of the Federal 

agency management control system. 

‘‘(e) AUDITS.— 

‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPECTOR GENERAL

OF THE DEPARTMENT OF AGRICULTURE.—Not later than 2 years 

after the effective date described in subsection (i), and not 

less often than every 3 years thereafter, the Inspector General 

of the Department of Agriculture shall conduct an audit of 

each activity taken by the Secretary under this section for 

the period covered by the audit to determine compliance with 

this section. 

‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GENERAL OF THE

UNITED STATES.—Not earlier than 3 years, nor later than 5 

years, after the date of the enactment of this section, the 

Comptroller General of the United States shall conduct an 

audit of the implementation of this section to determine— 

‘‘(A) the effectiveness of the implementation of this 

section; and 

‘‘(B) the number of selected establishments selected 

by the Secretary to ship poultry items under this section. 

‘‘(f) TRANSITION GRANTS.—The Secretary may provide grants 

to appropriate State agencies to assist the appropriate State agencies in helping establishments covered by this Act to transition 

to selected establishments. 

‘‘(g) VIOLATIONS.—Any selected establishment that the Secretary determines to be in violation of any requirement of this 

Act shall be transitioned to a Federal establishment in accordance 

with a procedure developed by the Secretary under subsection 

(b)(3)(A). 

‘‘(h) EFFECT.—Nothing in this section limits the jurisdiction 

of the Secretary with respect to the regulation of poultry and 

poultry products under this Act. 

‘‘(i) EFFECTIVE DATE.— 

‘‘(1) IN GENERAL.—This section takes effect on the date 

on which the Secretary, after providing a period of public comment (including through the conduct of public meetings or 

hearings), promulgates final regulations to carry out this section. 

‘‘(2) REQUIREMENT.—Not later than 18 months after the 

date of the enactment of this section, the Secretary shall 

promulgate final regulations in accordance with paragraph (1).’’. 

SEC. 11016. INSPECTION AND GRADING. 

(a) GRADING.—Section 203 of the Agricultural Marketing Act 

of 1946 (7 U.S.C. 1622) is amended— 

(1) by redesignating subsection (n) as subsection (o); and 

(2) by inserting after subsection (m) the following new 

subsection: 

‘‘(n) GRADING PROGRAM.—To establish within the Department 

of Agriculture a voluntary fee based grading program for— 
H. R. 2419—447 

‘‘(1) catfish (as defined by the Secretary under paragraph 

(2) of section 1(w) of the Federal Meat Inspection Act (21 

U.S.C. 601(w))); and 

‘‘(2) any additional species of farm-raised fish or farmraised shellfish— 

‘‘(A) for which the Secretary receives a petition 

requesting such voluntary fee based grading; and 

‘‘(B) that the Secretary considers appropriate.’’. 

(b) INSPECTION.— 

(1) IN GENERAL.—The Federal Meat Inspection Act is 

amended— 

(A) in section 1(w) (21 U.S.C. 601(w)) — 

(i) by striking ‘‘and’’ at the end of paragraph (1); 

(ii) by redesignating paragraph (2) as paragraph 

(3); and 

(iii) by inserting after paragraph (1) the following 

new paragraph: 

‘‘(2) catfish, as defined by the Secretary; and’’; 

(B) by striking section 6 (21 U.S.C. 606) and inserting 

the following new section: 

‘‘SEC. 6. (a) IN GENERAL.—For the purposes hereinbefore set 

forth the Secretary shall cause to be made, by inspectors appointed 

for that purpose, an examination and inspection of all meat food 

products prepared for commerce in any slaughtering, meat-canning, 

salting, packing, rendering, or similar establishment, and for the 

purposes of any examination and inspection and inspectors shall 

have access at all times, by day or night, whether the establishment 

be operated or not, to every part of said establishment; and said 

inspectors shall mark, stamp, tag, or label as ‘Inspected and passed’ 

all such products found to be not adulterated; and said inspectors 

shall label, mark, stamp, or tag as ‘Inspected and condemned’ 

all such products found adulterated, and all such condemned meat 

food products shall be destroyed for food purposes, as hereinbefore 

provided, and the Secretary may remove inspectors from any 

establishment which fails to so destroy such condemned meat food 

products: Provided, That subject to the rules and regulations of 

the Secretary the provisions of this section in regard to preservatives shall not apply to meat food products for export to any foreign 

country and which are prepared or packed according to the specifications or directions of the foreign purchaser, when no substance 

is used in the preparation or packing thereof in conflict with the 

laws of the foreign country to which said article is to be exported; 

but if said article shall be in fact sold or offered for sale for 

domestic use or consumption then this proviso shall not exempt 

said article from the operation of all the other provisions of this 

chapter. 

‘‘(b) CATFISH.—In the case of an examination and inspection 

under subsection (a) of a meat food product derived from catfish, 

the Secretary shall take into account the conditions under which 

the catfish is raised and transported to a processing establishment.’’; 

and 

(C) by adding at the end of title I the following new 

section: 

‘‘SEC. 25. Notwithstanding any other provision of this Act, 

the requirements of sections 3, 4, 5, 10(b), and 23 shall not apply 

to catfish.’’. 

(2) EFFECTIVE DATE.— 
H. R. 2419—448 

(A) IN GENERAL.—The amendments made by paragraph 

(1) shall not apply until the date on which the Secretary 

of Agriculture issues final regulations (after providing a 

period of public comment, including through the conduct 

of public meetings or hearings, in accordance with chapter 

5 of title 5, United States Code) to carry out such amendments. 

(B) REGULATIONS.—Not later than 18 months after 

the date of the enactment of this Act, the Secretary of 

Agriculture, in consultation with the Commissioner of Food 

and Drugs, shall issue final regulations to carry out the 

amendments made by paragraph (1). 

(3) BUDGET REQUEST.—Not later than 30 days after the 

date of the enactment of this Act, the Secretary of Agriculture 

shall submit to Congress an estimate of the costs of implementing the amendments made by paragraph (1), including 

the estimated— 

(A) staff years; 

(B) number of establishments; 

(C) volume expected to be produced at such establishments; and 

(D) any other information used in estimating the costs 

of implementing such amendments. 

SEC. 11017. FOOD SAFETY IMPROVEMENT. 

(a) FEDERAL MEAT INSPECTION ACT.—Title I of the Federal 

Meat Inspection Act is further amended by inserting after section 

11 (21 U.S.C. 611) the following: 

‘‘SEC. 12. NOTIFICATION. 

‘‘Any establishment subject to inspection under this Act that 

believes, or has reason to believe, that an adulterated or misbranded 

meat or meat food product received by or originating from the 

establishment has entered into commerce shall promptly notify 

the Secretary with regard to the type, amount, origin, and destination of the meat or meat food product. 

‘‘SEC. 13. PLANS AND REASSESSMENTS. 

‘‘The Secretary shall require that each establishment subject 

to inspection under this Act shall, at a minimum— 

‘‘(1) prepare and maintain current procedures for the recall 

of all meat or meat food products produced and shipped by 

the establishment; 

‘‘(2) document each reassessment of the process control 

plans of the establishment; and 

‘‘(3) upon request, make the procedures and reassessed 

process control plans available to inspectors appointed by the 

Secretary for review and copying.’’. 

(b) POULTRY PRODUCTS INSPECTION ACT.—Section 10 of the 

Poultry Products Inspection Act (21 U.S.C. 459) is amended— 

(1) by striking the section heading and all that follows 

through ‘‘SEC. 10. No establishment’’ and inserting the following: 

‘‘SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS. 

‘‘(a) IN GENERAL.—No establishment’’; and 

(2) by adding at the end the following: 

‘‘(b) NOTIFICATION.—Any establishment subject to inspection 

under this Act that believes, or has reason to believe, that an 
H. R. 2419—449 

adulterated or misbranded poultry or poultry product received by 

or originating from the establishment has entered into commerce 

shall promptly notify the Secretary with regard to the type, amount, 

origin, and destination of the poultry or poultry product. 

‘‘(c) PLANS AND REASSESSMENTS.—The Secretary shall require 

that each establishment subject to inspection under this Act shall, 

at a minimum— 

‘‘(1) prepare and maintain current procedures for the recall 

of all poultry or poultry products produced and shipped by 

the establishment; 

‘‘(2) document each reassessment of the process control 

plans of the establishment; and 

‘‘(3) upon request, make the procedures and reassessed 

process control plans available to inspectors appointed by the 

Secretary for review and copying.’’. 

TITLE XII—CROP INSURANCE AND 

DISASTER ASSISTANCE PROGRAMS 

Subtitle A—Crop Insurance and 

Agricultural Disaster Assistance 

SEC. 12001. DEFINITION OF ORGANIC CROP. 

Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 

1502(b)) is amended— 

(1) by redesignating paragraphs (7) and (8) as paragraphs 

(8) and (9), respectively; and 

(2) by inserting after paragraph (6) the following: 

‘‘(7) ORGANIC CROP.—The term ‘organic crop’ means an 

agricultural commodity that is organically produced consistent 

with section 2103 of the Organic Foods Production Act of 1990 

(7 U.S.C. 6502).’’. 

SEC. 12002. GENERAL POWERS. 

(a) IN GENERAL.—Section 506 of the Federal Crop Insurance 

Act (7 U.S.C. 1506) is amended— 

(1) in the first sentence of subsection (d), by striking ‘‘The 

Corporation’’ and inserting ‘‘Subject to section 508(j)(2)(A), the 

Corporation’’; and 

(2) by striking subsection (n). 

(b) CONFORMING AMENDMENTS.— (1) Section 506 of the Federal Crop Insurance Act (7 U.S.C. 

1506) is amended by redesignating subsections (o), (p), and 

(q) as subsections (n), (o), and (p), respectively. 

(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C. 

1521) is amended by striking the last sentence. 

SEC. 12003. REDUCTION IN LOSS RATIO. 

(a) PROJECTED LOSS RATIO.—Subsection (n)(2) of section 506 

of the Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated 

by section 12002(b)(1)) is amended— 

(1) in the paragraph heading, by striking ‘‘AS OF OCTOBER

1, 1998’’; 

(2) by striking ‘‘, on and after October 1, 1998,’’; and 

(3) by striking ‘‘1.075’’ and inserting ‘‘1.0’’. 
H. R. 2419—450 

(b) PREMIUMS REQUIRED.—Section 508(d)(1) of the Federal Crop 

Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking ‘‘not 

greater than 1.1’’ and all that follows and inserting ‘‘not greater 

than— 

‘‘(A) 1.1 through September 30, 1998; 

‘‘(B) 1.075 for the period beginning October 1, 1998, 

and ending on the day before the date of enactment of 

the Food, Conservation, and Energy Act of 2008; and 

‘‘(C) 1.0 on and after the date of enactment of that 

Act.’’. 

SEC. 12004. PREMIUMS ADJUSTMENTS. 

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 

1508(a)) is amended by adding at the end the following: 

‘‘(9) PREMIUM ADJUSTMENTS.— ‘‘(A) PROHIBITION.—Except as provided in subparagraph (B), no person shall pay, allow, or give, or offer 

to pay, allow, or give, directly or indirectly, either as an 

inducement to procure insurance or after insurance has 

been procured, any rebate, discount, abatement, credit, or 

reduction of the premium named in an insurance policy 

or any other valuable consideration or inducement not 

specified in the policy. 

‘‘(B) EXCEPTIONS.—Subparagraph (A) does not apply 

with respect to— 

‘‘(i) a payment authorized under subsection 

(b)(5)(B); 

‘‘(ii) a performance-based discount authorized 

under subsection (d)(3); or 

‘‘(iii) a patronage dividend, or similar payment, 

that is paid— 

‘‘(I) by an entity that was approved by the 

Corporation to make such payments for the 2005, 

2006, or 2007 reinsurance year, in accordance with 

subsection (b)(5)(B) as in effect on the day before 

the date of enactment of this paragraph; and 

‘‘(II) in a manner consistent with the payment 

plan approved in accordance with that subsection 

for the entity by the Corporation for the applicable 

reinsurance year.’’. 

SEC. 12005. CONTROLLED BUSINESS INSURANCE. 

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 

1508(a)) (as amended by section 12004) is amended by adding 

at the end the following: 

‘‘(10) COMMISSIONS.— ‘‘(A) DEFINITION OF IMMEDIATE FAMILY.—In this paragraph, the term ‘immediate family’ means an individual’s 

father, mother, stepfather, stepmother, brother, sister, stepbrother, stepsister, son, daughter, stepson, stepdaughter, 

grandparent, grandson, granddaughter, father-in-law, 

mother-in-law, brother-in-law, sister-in-law, son-in-law, 

daughter-in-law, the spouse of the foregoing, and the 

individual’s spouse. 

‘‘(B) PROHIBITION.—No individual (including a 

subagent) may receive directly, or indirectly through an 

entity, any compensation (including any commission, profit 

sharing, bonus, or any other direct or indirect benefit) 
H. R. 2419—451 

for the sale or service of a policy or plan of insurance 

offered under this title if— 

‘‘(i) the individual has a substantial beneficial 

interest, or a member of the individual’s immediate 

family has a substantial beneficial interest, in the 

policy or plan of insurance; and 

‘‘(ii) the total compensation to be paid to the individual with respect to the sale or service of the policies 

or plans of insurance that meet the condition described 

in clause (i) exceeds 30 percent or the percentage specified in State law, whichever is less, of the total of 

all compensation received directly or indirectly by the 

individual for the sale or service of all policies and 

plans of insurance offered under this title for the 

reinsurance year. 

‘‘(C) REPORTING.—Not later than 90 days after the 

annual settlement date of the reinsurance year, any individual that received directly or indirectly any compensation 

for the service or sale of any policy or plan of insurance 

offered under this title in the prior reinsurance year shall 

certify to applicable approved insurance providers that the 

compensation that the individual received was in compliance with this paragraph. 

‘‘(D) SANCTIONS.—The procedural requirements and 

sanctions prescribed in section 515(h) shall apply to the 

prosecution of a violation of this paragraph. 

‘‘(E) APPLICABILITY.— 

‘‘(i) IN GENERAL.—Sanctions for violations under 

this paragraph shall only apply to the individuals or 

entities directly responsible for the certification 

required under subparagraph (C) or the failure to 

comply with the requirements of this paragraph. 

‘‘(ii) PROHIBITION.—No sanctions shall apply with 

respect to the policy or plans of insurance upon which 

compensation is received, including the reinsurance 

for those policies or plans.’’. 

SEC. 12006. ADMINISTRATIVE FEE. 

(a) IN GENERAL.—Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended— 

(1) by striking subparagraph (A) and inserting the following: 

‘‘(A) BASIC FEE.—Each producer shall pay an administrative fee for catastrophic risk protection in the amount 

of $300 per crop per county.’’; and 

(2) in subparagraph (B)— 

(A) by striking ‘‘PAYMENT ON BEHALF OF PRODUCERS’’ 

and inserting ‘‘PAYMENT OF CATASTROPHIC RISK PROTECTION FEE ON BEHALF OF PRODUCERS’’; 

(B) in clause (i)— 

(i) by striking ‘‘or other payment’’; and 

(ii) by striking ‘‘with catastrophic risk protection 

or additional coverage’’ and inserting ‘‘through the payment of catastrophic risk protection administrative 

fees’’; 

(C) by striking clauses (ii) and (vi); 
H. R. 2419—452 

(D) by redesignating clauses (iii), (iv), and (v) as clauses 

(ii), (iii), and (iv), respectively; 

(E) in clause (iii) (as so redesignated), by striking ‘‘A 

policy or plan of insurance’’ and inserting ‘‘Catastrophic 

risk protection coverage’’; and 

(F) in clause (iv) (as so redesignated)— 

(i) by striking ‘‘or other arrangement under this 

subparagraph’’; and 

(ii) by striking ‘‘additional’’. 

(b) REPEAL.—Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (7 U.S.C. 1508 note; Public Law 105–277) is 

repealed. 

SEC. 12007. TIME FOR PAYMENT. 

Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) 

is amended— 

(1) in subsection (b)(5)(C), by striking ‘‘the date that premium’’ and inserting ‘‘the same date on which the premium’’; 

(2) in subsection (c)(10), by adding at the end the following: 

‘‘(C) TIME FOR PAYMENT.—Subsection (b)(5)(C) shall 

apply with respect to the collection date for the administrative fee.’’; and 

(3) in subsection (d), by adding at the end the following: 

‘‘(4) BILLING DATE FOR PREMIUMS.—Effective beginning with 

the 2012 reinsurance year, the Corporation shall establish 

August 15 as the billing date for premiums.’’. 

SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE. 

Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 

1508(b)(11)) is amended by striking ‘‘8 percent’’ and inserting ‘‘6 

percent’’. 

SEC. 12009. GRAIN SORGHUM PRICE ELECTION. 

Section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 

1508(c)(5)) is amended by adding at the end the following: 

‘‘(D) GRAIN SORGHUM PRICE ELECTION.— 

‘‘(i) IN GENERAL.—The Corporation, in conjunction 

with the Secretary (referred to in this subparagraph 

as the ‘Corporation’), shall— 

‘‘(I) not later than 60 days after the date of 

enactment of this subparagraph, make available 

all methods and data, including data from the 

Economic Research Service, used by the Corporation to develop the expected market prices for grain 

sorghum under the production and revenue-based 

plans of insurance of the Corporation; and 

‘‘(II) request applicable data from the grain 

sorghum industry. 

‘‘(ii) EXPERT REVIEWERS.— 

‘‘(I) IN GENERAL.—Not later than 120 days 

after the date of enactment of this subparagraph, 

the Corporation shall contract individually with 

5 expert reviewers described in subclause (II) to 

develop and recommend a methodology for determining an expected market price for sorghum for 

both the production and revenue-based plans of 
H. R. 2419—453 

insurance to more accurately reflect the actual 

price at harvest. 

‘‘(II) REQUIREMENTS.—The expert reviewers 

under subclause (I) shall be comprised of agricultural economists with experience in grain sorghum 

and corn markets, of whom— 

‘‘(aa) 2 shall be agricultural economists 

of institutions of higher education; 

‘‘(bb) 2 shall be economists from within 

the Department; and 

‘‘(cc) 1 shall be an economist nominated 

by the grain sorghum industry. 

‘‘(iii) RECOMMENDATIONS.— 

‘‘(I) IN GENERAL.—Not later than 90 days after 

the date of contracting with the expert reviewers 

under clause (ii), the expert reviewers shall 

submit, and the Corporation shall make available 

to the public, the recommendations of the expert 

reviewers. 

‘‘(II) CONSIDERATION.—The Corporation shall 

consider the recommendations under subclause (I) 

when determining the appropriate pricing methodology to determine the expected market price for 

grain sorghum under both the production and revenue-based plans of insurance. 

‘‘(III) PUBLICATION.—Not later than 60 days 

after the date on which the Corporation receives 

the recommendations of the expert reviewers, the 

Corporation shall publish the proposed pricing 

methodology for both the production and revenuebased plans of insurance for notice and comment 

and, during the comment period, conduct at least 

1 public meeting to discuss the proposed pricing 

methodologies. 

‘‘(iv) APPROPRIATE PRICING METHODOLOGY.— 

‘‘(I) IN GENERAL.—Not later than 180 days 

after the close of the comment period in clause 

(iii)(III), but effective not later than the 2010 crop 

year, the Corporation shall implement a pricing 

methodology for grain sorghum under the production and revenue-based plans of insurance that 

is transparent and replicable. 

‘‘(II) INTERIM METHODOLOGY.—Until the date 

on which the new pricing methodology is implemented, the Corporation may continue to use the 

pricing methodology that the Corporation determines best establishes the expected market price. 

‘‘(III) AVAILABILITY.—On an annual basis, the 

Corporation shall make available the pricing methodology and data used to determine the expected 

market prices for grain sorghum under the production and revenue-based plans of insurance, 

including any changes to the methodology used 

to determine the expected market prices for grain 

sorghum from the previous year.’’. 
H. R. 2419—454 

SEC. 12010. PREMIUM REDUCTION AUTHORITY. 

Subsection 508(e) of the Federal Crop Insurance Act (7 U.S.C. 

1508(e)) is amended— 

(1) in paragraph (2), by striking ‘‘paragraph (4)’’ and 

inserting ‘‘paragraph (3)’’; 

(2) by striking paragraph (3); and 

(3) by redesignating paragraphs (4) and (5) as paragraphs 

(3) and (4), respectively. 

SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS. 

Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) 

(as amended by section 12010) is amended by adding at the end 

the following: 

‘‘(5) ENTERPRISE AND WHOLE FARM UNITS.— 

‘‘(A) IN GENERAL.—The Corporation may carry out a 

pilot program under which the Corporation pays a portion 

of the premiums for plans or policies of insurance for which 

the insurable unit is defined on a whole farm or enterprise 

unit basis that is higher than would otherwise be paid 

in accordance with paragraph (2). 

‘‘(B) AMOUNT.—The percentage of the premium paid 

by the Corporation to a policyholder for a policy with an 

enterprise or whole farm unit under this paragraph shall, 

to the maximum extent practicable, provide the same dollar 

amount of premium subsidy per acre that would otherwise 

have been paid by the Corporation under paragraph (2) 

if the policyholder had purchased a basic or optional unit 

for the crop for the crop year. 

‘‘(C) LIMITATION.—The amount of the premium paid 

by the Corporation under this paragraph may not exceed 

80 percent of the total premium for the enterprise or whole 

farm unit policy.’’. 

SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE 

PLANS. 

Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 

1508(e)) (as amended by section 12011) is amended— 

(1) in paragraph (2), in the matter preceding subparagraph 

(A), by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4), 

(6), and (7)’’; and 

(2) by adding at the end the following: 

‘‘(6) PREMIUM SUBSIDY FOR AREA REVENUE PLANS.—Subject 

to paragraph (4), in the case of a policy or plan of insurance 

that covers losses due to a reduction in revenue in an area, 

the amount of the premium paid by the Corporation shall 

be as follows: 

‘‘(A) In the case of additional area coverage equal to 

or greater than 70 percent, but less than 75 percent, of 

the recorded county yield indemnified at not greater than 

100 percent of the expected market price, the amount shall 

be equal to the sum of— 

‘‘(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. 
H. R. 2419—455 

‘‘(B) In the case of additional area coverage equal to 

or greater than 75 percent, but less than 85 percent, of 

the recorded county yield indemnified at not greater than 

100 percent of the expected market price, the amount shall 

be equal to the sum of— 

‘‘(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. 

‘‘(C) In the case of additional area coverage equal to 

or greater than 85 percent, but less than 90 percent, of 

the recorded county yield indemnified at not greater than 

100 percent of the expected market price, the amount shall 

be equal to the sum of— 

‘‘(i) 49 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. 

‘‘(D) In the case of additional area coverage equal to 

or greater than 90 percent of the recorded county yield 

indemnified at not greater than 100 percent of the expected 

market price, the amount shall be equal to the sum of— 

‘‘(i) 44 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. 

‘‘(7) PREMIUM SUBSIDY FOR AREA YIELD PLANS.—Subject 

to paragraph (4), in the case of a policy or plan of insurance 

that covers losses due to a loss of yield or prevented planting 

in an area, the amount of the premium paid by the Corporation 

shall be as follows: 

‘‘(A) In the case of additional area coverage equal to 

or greater than 70 percent, but less than 80 percent, of 

the recorded county yield indemnified at not greater than 

100 percent of the expected market price, the amount shall 

be equal to the sum of— 

‘‘(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. 

‘‘(B) In the case of additional area coverage equal to 

or greater than 80 percent, but less than 90 percent, of 

the recorded county yield indemnified at not greater than 

100 percent of the expected market price, the amount shall 

be equal to the sum of— 

‘‘(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 
H. R. 2419—456 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. 

‘‘(C) In the case of additional area coverage equal to 

or greater than 90 percent, of the recorded county yield 

indemnified at not greater than 100 percent of the expected 

market price, the amount shall be equal to the sum of— 

‘‘(i) 51 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage 

level selected; and 

‘‘(ii) the amount determined under subsection 

(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.’’. 

SEC. 12013. DENIAL OF CLAIMS. 

Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 

1508(j)(2)(A)) is amended by inserting ‘‘on behalf of the Corporation’’ 

after ‘‘approved provider’’. 

SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARMSTORED PRODUCTION. 

(a) IN GENERAL.—Section 508(j) of the Federal Crop Insurance 

Act (7 U.S.C. 1508(j)) is amended by adding at the end the following: 

‘‘(5) SETTLEMENT OF CLAIMS ON FARM-STORED PRODUCTION.—A producer with farm-stored production may, at the 

option of the producer, delay settlement of a crop insurance 

claim relating to the farm-stored production for up to 4 months 

after the last date on which claims may be submitted under 

the policy of insurance.’’. 

(b) STUDY ON THE EFFICACY OF PACK FACTORS.— (1) IN GENERAL.—The Secretary shall conduct a study of 

the efficacy and accuracy of the application of pack factors 

regarding the measurement of farm-stored production for purposes of providing policies or plans of insurance under the 

Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). 

(2) CONSIDERATIONS.—The study shall consider— 

(A) structural shape and size; 

(B) time in storage; 

(C) the impact of facility aeration systems; and 

(D) any other factors the Secretary considers appropriate. 

(3) REPORT.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate 

a report that includes the findings of the study and any related 

policy recommendations. 

SEC. 12015. TIME FOR REIMBURSEMENT. 

Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)(4)) is amended by adding at the end the following: 

‘‘(D) TIME FOR REIMBURSEMENT.—Effective beginning 

with the 2012 reinsurance year, the Corporation shall 

reimburse approved insurance providers and agents for 

the allowable administrative and operating costs of the 

providers and agents as soon as practicable after October 

1 (but not later than October 31) after the reinsurance 

year for which reimbursements are earned.’’. 
H. R. 2419—457 

SEC. 12016. REIMBURSEMENT RATE. 

Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)(4)) (as amended by section 12015) is amended— 

(1) in subparagraph (A), by striking ‘‘Except as provided 

in subparagraph (B)’’ and inserting ‘‘Except as otherwise provided in this paragraph’’; and 

(2) by adding at the end the following: 

‘‘(E) REIMBURSEMENT RATE REDUCTION.—In the case 

of a policy of additional coverage that received a rate of 

reimbursement for administrative and operating costs for 

the 2008 reinsurance year, for each of the 2009 and subsequent reinsurance years, the reimbursement rate for 

administrative and operating costs shall be 2.3 percentage 

points below the rates in effect as of the date of enactment 

of the Food, Conservation, and Energy Act of 2008 for 

all crop insurance policies used to define loss ratio, except 

that only 1⁄2 of the reduction shall apply in a reinsurance 

year to the total premium written in a State in which 

the State loss ratio is greater than 1.2. 

‘‘(F) REIMBURSEMENT RATE FOR AREA POLICIES AND

PLANS OF INSURANCE.—Notwithstanding subparagraphs (A) 

through (E), for each of the 2009 and subsequent reinsurance years, the reimbursement rate for area policies and 

plans of insurance widely available as of the date of enactment of this subparagraph shall be 12 percent of the premium used to define loss ratio for that reinsurance year.’’. 

SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT. 

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)) is amended by adding at the end the following: 

‘‘(8) RENEGOTIATION OF STANDARD REINSURANCE AGREE- MENT.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), notwithstanding section 536 of the Agricultural 

Research, Extension, and Education Reform Act of 1998 

(7 U.S.C. 1506 note; Public Law 105–185) and section 148 

of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 

1506 note; Public Law 106–224), the Corporation may 

renegotiate the financial terms and conditions of each 

Standard Reinsurance Agreement— 

‘‘(i) to be effective for the 2011 reinsurance year 

beginning July 1, 2010; and 

‘‘(ii) once during each period of 5 reinsurance years 

thereafter. 

‘‘(B) EXCEPTIONS.— 

‘‘(i) ADVERSE CIRCUMSTANCES.—Subject to clause 

(ii), subparagraph (A) shall not apply in any case in 

which the approved insurance providers, as a whole, 

experience unexpected adverse circumstances, as determined by the Secretary. 

‘‘(ii) EFFECT OF FEDERAL LAW CHANGES.—If Federal 

law is enacted after the date of enactment of this 

paragraph that requires revisions in the financial 

terms of the Standard Reinsurance Agreement, and 

changes in the Agreement are made on a mandatory 

basis by the Corporation, the changes shall not be 
H. R. 2419—458 

considered to be a renegotiation of the Agreement for 

purposes of subparagraph (A). 

‘‘(C) NOTIFICATION REQUIREMENT.—If the Corporation 

renegotiates a Standard Reinsurance Agreement under 

subparagraph (A)(iii), the Corporation shall notify the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of 

the Senate of the renegotiation. 

‘‘(D) CONSULTATION.—The approved insurance providers may confer with each other and collectively with 

the Corporation during any renegotiation under subparagraph (A). 

‘‘(E) 2011 REINSURANCE YEAR.— 

‘‘(i) IN GENERAL.—As part of the Standard Reinsurance Agreement renegotiation authorized under 

subparagraph (A)(i), the Corporation shall consider 

alternative methods to determine reimbursement rates 

for administrative and operating costs. 

‘‘(ii) ALTERNATIVE METHODS.—Alternatives considered under clause (i) shall include— 

‘‘(I) methods that— 

‘‘(aa) are graduated and base reimbursement rates in a State on changes in premiums 

in that State; 

‘‘(bb) are graduated and base reimbursement rates in a State on the loss ratio for 

crop insurance for that State; and 

‘‘(cc) are graduated and base reimbursement rates on individual policies on the level 

of total premium for each policy; and 

‘‘(II) any other method that takes into account 

current financial conditions of the program and 

ensures continued availability of the program to 

producers on a nationwide basis.’’. 

SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 

UNDERWRITING GAINS. 

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)) (as amended by section 12017) is amended by adding 

at the end the following: 

‘‘(9) DUE DATE FOR PAYMENT OF UNDERWRITING GAINS.— 

Effective beginning with the 2011 reinsurance year, the Corporation shall make payments for underwriting gains under 

this title on— 

‘‘(A) for the 2011 reinsurance year, October 1, 2012; 

and 

‘‘(B) for each reinsurance year thereafter, October 1 

of the following calendar year.’’. 

SEC. 12019. MALTING BARLEY. 

Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 

1508(m)) is amended by adding at the end the following: 

‘‘(5) SPECIAL PROVISIONS FOR MALTING BARLEY.—The Corporation shall promulgate special provisions under this subsection specific to malting barley, taking into consideration 

any changes in quality factors, as required by applicable market 

conditions.’’. 
H. R. 2419—459 

SEC. 12020. CROP PRODUCTION ON NATIVE SOD. 

(a) FEDERAL CROP INSURANCE.—Section 508 of the Federal 

Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the 

end the following: 

‘‘(o) CROP PRODUCTION ON NATIVE SOD.— ‘‘(1) DEFINITION OF NATIVE SOD.—In this subsection, the 

term ‘native sod’ means land— 

‘‘(A) on which the plant cover is composed principally 

of native grasses, grasslike plants, forbs, or shrubs suitable 

for grazing and browsing; and 

‘‘(B) that has never been tilled for the production of 

an annual crop as of the date of enactment of this subsection. 

‘‘(2) INELIGIBILITY FOR BENEFITS.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B) and 

paragraph (3), native sod acreage that has been tilled for 

the production of an annual crop after the date of enactment of this subsection shall be ineligible during the first 

5 crop years of planting, as determined by the Secretary, 

for benefits under— 

‘‘(i) this title; and 

‘‘(ii) section 196 of the Federal Agriculture 

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

‘‘(B) DE MINIMIS ACREAGE EXEMPTION.—The Secretary 

shall exempt areas of 5 acres or less from subparagraph 

(A). 

‘‘(3) APPLICATION.—Paragraph (2) may apply to native sod 

acreage in the Prairie Pothole National Priority Area at the 

election of the Governor of the respective State.’’. 

(b) NONINSURED CROP DISASTER ASSISTANCE.—Section 196(a) 

of the Federal Agriculture Improvement and Reform Act of 1996 

(7 U.S.C. 7333(a)) is amended by adding at the end the following: 

‘‘(4) PROGRAM INELIGIBILITY RELATING TO CROP PRODUCTION

ON NATIVE SOD.— 

‘‘(A) DEFINITION OF NATIVE SOD.—In this paragraph, 

the term ‘native sod’ means land— 

‘‘(i) on which the plant cover is composed principally of native grasses, grasslike plants, forbs, or 

shrubs suitable for grazing and browsing; and 

‘‘(ii) that has never been tilled for the production 

of an annual crop as of the date of enactment of this 

paragraph. 

‘‘(B) INELIGIBILITY FOR BENEFITS.— 

‘‘(i) IN GENERAL.—Subject to clause (ii) and 

subparagraph (C), native sod acreage that has been 

tilled for the production of an annual crop after the 

date of enactment of this paragraph shall be ineligible 

during the first 5 crop years of planting, as determined 

by the Secretary, for benefits under— 

‘‘(I) this section; and 

‘‘(II) the Federal Crop Insurance Act (7 U.S.C. 

1501 et seq.). 

‘‘(ii) DE MINIMIS ACREAGE EXEMPTION.—The Secretary shall exempt areas of 5 acres or less from clause 

(i). 

‘‘(C) APPLICATION.—Subparagraph (B) may apply to 

native sod acreage in the Prairie Pothole National Priority 
H. R. 2419—460 

Area at the election of the Governor of the respective 

State.’’. 

SEC. 12021. INFORMATION MANAGEMENT. 

Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) 

is amended— 

(a) in subsection (j)(3), by adding before the period at the 

end the following: ‘‘, which shall be subject to competition on a 

periodic basis, as determined by the Secretary’’; and 

(b) by striking subsection (k) and inserting the following: 

‘‘(k) FUNDING.— ‘‘(1) INFORMATION TECHNOLOGY.—To carry out subsection 

(j)(1), the Corporation may use, from amounts made available 

from the insurance fund established under section 516(c), not 

more than $15,000,000 for each of fiscal years 2008 through 

2011. 

‘‘(2) DATA MINING.—To carry out subsection (j)(2), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than 

$4,000,000 for fiscal year 2009 and each subsequent fiscal 

year.’’. 

SEC. 12022. RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—Section 522(b) of the Federal Crop Insurance 

Act (7 U.S.C. 1522(b)) is amended by striking paragraphs (1) and 

(2) and inserting the following: 

‘‘(1) RESEARCH AND DEVELOPMENT PAYMENT.— ‘‘(A) IN GENERAL.—The Corporation shall provide a 

payment to an applicant for research and development 

costs in accordance with this subsection. 

‘‘(B) REIMBURSEMENT.—An applicant who submits a 

policy under section 508(h) shall be eligible for the 

reimbursement of reasonable research and development 

costs directly related to the policy if the policy is approved 

by the Board for sale to producers. 

‘‘(2) ADVANCE PAYMENTS.— ‘‘(A) IN GENERAL.—Subject to the other provisions of 

this paragraph, the Board may approve the request of 

an applicant for advance payment of a portion of reasonable 

research and development costs prior to submission and 

approval of the policy by the Board under section 508(h). 

‘‘(B) PROCEDURES.—The Board shall establish procedures for approving advance payment of reasonable 

research and development costs to applicants. 

‘‘(C) CONCEPT PROPOSAL.—As a condition of eligibility 

for advance payments, an applicant shall submit a concept 

proposal for the policy that the applicant plans to submit 

to the Board under section 508(h), consistent with procedures established by the Board for submissions under 

subparagraph (B), including— 

‘‘(i) a summary of the qualifications of the 

applicant, including any prior concept proposals and 

submissions to the Board under section 508(h) and, 

if applicable, any work conducted under this section; 

‘‘(ii) a projection of total research and development 

costs that the applicant expects to incur; 

‘‘(iii) a description of the need for the policy, the 

marketability of and expected demand for the policy 
H. R. 2419—461 

among affected producers, and the potential impact 

of the policy on producers and the crop insurance 

delivery system; 

‘‘(iv) a summary of data sources available to demonstrate that the policy can reasonably be developed 

and actuarially appropriate rates established; and 

‘‘(v) an identification of the risks the proposed 

policy will cover and an explanation of how the identified risks are insurable under this title. 

‘‘(D) REVIEW.— 

‘‘(i) EXPERTS.—If the requirements of subparagraph (B) and (C) are met, the Board may submit 

a concept proposal described in subparagraph (C) to 

not less than 2 independent expert reviewers, whose 

services are appropriate for the type of concept proposal 

submitted, to assess the likelihood that the proposed 

policy being developed will result in a viable and 

marketable policy, as determined by the Board. 

‘‘(ii) TIMING.—The time frames described in subparagraphs (C) and (D) of section 508(h)(4) shall apply 

to the review of concept proposals under this subparagraph. 

‘‘(E) APPROVAL.—The Board may approve up to 50 percent of the projected total research and development costs 

to be paid in advance to an applicant, in accordance with 

the procedures developed by the Board for the making 

of such payments, if, after consideration of the reviewer 

reports described in subparagraph (D) and such other 

information as the Board determines appropriate, the 

Board determines that— 

‘‘(i) the concept, in good faith, will likely result 

in a viable and marketable policy consistent with section 508(h); 

‘‘(ii) in the sole opinion of the Board, the concept, 

if developed into a policy and approved by the Board, 

would provide crop insurance coverage— 

‘‘(I) in a significantly improved form; 

‘‘(II) to a crop or region not traditionally served 

by the Federal crop insurance program; or 

‘‘(III) in a form that addresses a recognized 

flaw or problem in the program; 

‘‘(iii) the applicant agrees to provide such reports 

as the Corporation determines are necessary to monitor 

the development effort; 

‘‘(iv) the proposed budget and timetable are reasonable; and 

‘‘(v) the concept proposal meets any other requirements that the Board determines appropriate. 

‘‘(F) SUBMISSION OF POLICY.—If the Board approves 

an advanced payment under subparagraph (E), the Board 

shall establish a date by which the applicant shall present 

a submission in compliance with section 508(h) (including 

the procedures implemented under that section) to the 

Board for approval. 

‘‘(G) FINAL PAYMENT.— ‘‘(i) APPROVED POLICIES.—If a policy is submitted 

under subparagraph (F) and approved by the Board 
H. R. 2419—462 

under section 508(h) and the procedures established 

by the Board (including procedures established under 

subparagraph (B)), the applicant shall be eligible for 

a payment of reasonable research and development 

costs in the same manner as policies reimbursed under 

paragraph (1)(B), less any payments made pursuant 

to subparagraph (E). 

‘‘(ii) POLICIES NOT APPROVED.—If a policy is submitted under subparagraph (F) and is not approved 

by the Board under section 508(h), the Corporation 

shall— 

‘‘(I) not seek a refund of any payments made 

in accordance with this paragraph; and 

‘‘(II) not make any further research and 

development cost payments associated with the 

submission of the policy under this paragraph. 

‘‘(H) POLICY NOT SUBMITTED.—If an applicant receives 

an advance payment and fails to fulfill the obligation of 

the applicant to the Board by not submitting a completed 

submission without just cause and in accordance with the 

procedures established under subparagraph (B)), including 

notice and reasonable opportunity to respond, as determined by the Board, the applicant shall return to the 

Board the amount of the advance plus interest. 

‘‘(I) REPEATED SUBMISSIONS.—The Board may prohibit 

advance payments to applicants who have submitted— 

‘‘(i) a concept proposal or submission that did not 

result in a marketable product; or 

‘‘(ii) a concept proposal or submission of poor 

quality. 

‘‘(J) CONTINUED ELIGIBILITY.—A determination that an 

applicant is not eligible for advance payments under this 

paragraph shall not prevent an applicant from reimbursement under paragraph (1)(B).’’. 

(b) CONFORMING AMENDMENTS.—Section 522(b) of the Federal 

Crop Insurance Act (7 U.S.C. 1522(b)) is amended— 

(1) in paragraph (3), by striking ‘‘or (2)’’; and 

(2) in paragraph (4)(A), by striking ‘‘and (2)’’.’’ 

SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES. 

Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 

1522) is amended— 

(1) by redesignating paragraph (10) as paragraph (17); 

and 

(2) by inserting after paragraph (9) the following: 

‘‘(10) CONTRACTS FOR ORGANIC PRODUCTION COVERAGE

IMPROVEMENTS.— 

‘‘(A) CONTRACTS REQUIRED.—Not later than 180 days 

after the date of enactment of the Food, Conservation, 

and Energy Act of 2008, the Corporation shall enter into 

1 or more contracts for the development of improvements 

in Federal crop insurance policies covering crops produced 

in compliance with standards issued by the Department 

of Agriculture under the national organic program established under the Organic Foods Production Act of 1990 

(7 U.S.C. 6501 et seq.). 
H. R. 2419—463 

‘‘(B) REVIEW OF UNDERWRITING RISK AND LOSS EXPERIENCE.— 

‘‘(i) REVIEW REQUIRED.— 

‘‘(I) IN GENERAL.—A contract under subparagraph (A) shall include a review of the underwriting, risk, and loss experience of organic crops 

covered by the Corporation, as compared with the 

same crops produced in the same counties and 

during the same crop years using nonorganic 

methods. 

‘‘(II) REQUIREMENTS.—The review shall— 

‘‘(aa) to the maximum extent practicable, 

be designed to allow the Corporation to determine whether significant, consistent, or systemic variations in loss history exist between 

organic and nonorganic production; 

‘‘(bb) include the widest available range 

of data collected by the Secretary and other 

outside sources of information; and 

‘‘(cc) not be limited to loss history under 

existing crop insurance policies. 

‘‘(ii) EFFECT ON PREMIUM SURCHARGE.—Unless the 

review under this subparagraph documents the existence of significant, consistent, and systemic variations 

in loss history between organic and nonorganic crops, 

either collectively or on an individual crop basis, the 

Corporation shall eliminate or reduce the premium 

surcharge that the Corporation charges for coverage 

for organic crops, as determined in accordance with 

the results. 

‘‘(iii) ANNUAL UPDATES.—Beginning with the 2009 

crop year, the review under this subparagraph shall 

be updated on an annual basis as data is accumulated 

by the Secretary and other sources, so that the Corporation may make determinations regarding adjustments to the surcharge in a timely manner as quickly 

as evolving practices and data trends allow. 

‘‘(C) ADDITIONAL PRICE ELECTION.— 

‘‘(i) IN GENERAL.—A contract under subparagraph 

(A) shall include the development of a procedure, 

including any associated changes in policy terms or 

materials required for implementation of the procedure, to offer producers of organic crops an additional 

price election that reflects actual prices received by 

organic producers for crops from the field (including 

appropriate retail and wholesale prices), as established 

using data collected and maintained by the Secretary 

or from other sources. 

‘‘(ii) TIMING.—The development of the procedure 

shall be completed in a timely manner to allow the 

Corporation to begin offering the additional price election for organic crops with sufficient data for the 2010 

crop year. 

‘‘(iii) EXPANSION.—The procedure shall be 

expanded as quickly as practicable as additional data 

on prices of organic crops collected by the Secretary 

and other sources of information becomes available, 
H. R. 2419—464 

with a goal of applying this procedure to all organic 

crops not later than the fifth full crop year that begins 

after the date of enactment of Food, Conservation, 

and Energy Act of 2008. 

‘‘(D) REPORTING REQUIREMENTS.— 

‘‘(i) IN GENERAL.—The Corporation shall submit 

to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report 

on progress made in developing and improving Federal 

crop insurance for organic crops, including— 

‘‘(I) the numbers and varieties of organic crops 

insured; 

‘‘(II) the development of new insurance 

approaches; and 

‘‘(III) the progress of implementing the initiatives required under this paragraph, including the 

rate at which additional price elections are adopted 

for organic crops. 

‘‘(ii) RECOMMENDATIONS.—The report shall include 

such recommendations as the Corporation considers 

appropriate to improve Federal crop insurance coverage for organic crops. 

‘‘(11) ENERGY CROP INSURANCE POLICY.— ‘‘(A) DEFINITION OF DEDICATED ENERGY CROP.—In this 

subsection, the term ‘dedicated energy crop’ means an 

annual or perennial crop that— 

‘‘(i) is grown expressly for the purpose of producing 

a feedstock for renewable biofuel, renewable electricity, 

or biobased products; and 

‘‘(ii) is not typically used for food, feed, or fiber. 

‘‘(B) AUTHORITY.—The Corporation shall offer to enter 

into 1 or more contracts with qualified entities to carry 

out research and development regarding a policy to insure 

dedicated energy crops. 

‘‘(C) RESEARCH AND DEVELOPMENT.—Research and 

development described in subparagraph (B) shall evaluate 

the effectiveness of risk management tools for the production of dedicated energy crops, including policies and plans 

of insurance that— 

‘‘(i) are based on market prices and yields; 

‘‘(ii) to the extent that insufficient data exist to 

develop a policy based on market prices and yields, 

evaluate the policies and plans of insurance based 

on the use of weather or rainfall indices to protect 

the interests of crop producers; and 

‘‘(iii) provide protection for production or revenue 

losses, or both. 

‘‘(12) AQUACULTURE INSURANCE POLICY.— ‘‘(A) DEFINITION OF AQUACULTURE.—In this subsection: 

‘‘(i) IN GENERAL.—The term ‘aquaculture’ means 

the propagation and rearing of aquatic species in controlled or selected environments, including shellfish 

cultivation on grants or leased bottom and ocean 

ranching. 

‘‘(ii) EXCLUSION.—The term ‘aquaculture’ does not 

include the private ocean ranching of Pacific salmon 
H. R. 2419—465 

for profit in any State in which private ocean ranching 

of Pacific salmon is prohibited by any law (including 

regulations). 

‘‘(B) AUTHORITY.— 

‘‘(i) IN GENERAL.—As soon as practicable after the 

date of enactment of the Food, Conservation, and 

Energy Act of 2008, the Corporation shall offer to 

enter into 3 or more contracts with qualified entities 

to carry out research and development regarding a 

policy to insure the production of aquacultural species 

in aquaculture operations. 

‘‘(ii) BIVALVE SPECIES.—At least 1 of the contracts 

described in clause (i) shall address insurance of 

bivalve species, including— 

‘‘(I) American oysters (crassostrea virginica); 

‘‘(II) hard clams (mercenaria mercenaria); 

‘‘(III) Pacific oysters (crassostrea gigas); 

‘‘(IV) Manila clams (tapes phillipinnarium); or 

‘‘(V) blue mussels (mytilus edulis). 

‘‘(iii) FRESHWATER SPECIES.—At least 1 of the contracts described in clause (i) shall address insurance 

of freshwater species, including— 

‘‘(I) catfish (icataluridae); 

‘‘(II) rainbow trout (oncorhynchus mykiss); 

‘‘(III) largemouth bass (micropterus 

salmoides); 

‘‘(IV) striped bass (morone saxatilis); 

‘‘(V) bream (abramis brama); 

‘‘(VI) shrimp (penaeus); or 

‘‘(VII) tilapia (oreochromis niloticus). 

‘‘(iv) SALTWATER SPECIES.—At least 1 of the contracts described in clause (i) shall address insurance 

of saltwater species, including— 

‘‘(I) Atlantic salmon (salmo salar); or 

‘‘(II) shrimp (penaeus). 

‘‘(C) RESEARCH AND DEVELOPMENT.—Research and 

development described in subparagraph (B) shall evaluate 

the effectiveness of policies and plans of insurance for 

the production of aquacultural species in aquaculture operations, including policies and plans of insurance that— 

‘‘(i) are based on market prices and yields; 

‘‘(ii) to the extent that insufficient data exist to 

develop a policy based on market prices and yields, 

evaluate how best to incorporate insuring of production 

of aquacultural species in aquaculture operations into 

existing policies covering adjusted gross revenue; and 

‘‘(iii) provide protection for production or revenue 

losses, or both. 

‘‘(13) POULTRY INSURANCE POLICY.— ‘‘(A) DEFINITION OF POULTRY.—In this paragraph, the 

term ‘poultry’ has the meaning given the term in section 

2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 

182(a)). 

‘‘(B) AUTHORITY.—The Corporation shall offer to enter 

into 1 or more contracts with qualified entities to carry 

out research and development regarding a policy to insure 

commercial poultry production. 
H. R. 2419—466 

‘‘(C) RESEARCH AND DEVELOPMENT.—Research and 

development described in subparagraph (B) shall evaluate 

the effectiveness of risk management tools for the production of poultry, including policies and plans of insurance 

that provide protection for production or revenue losses, 

or both, while the poultry is in production. 

‘‘(14) APIARY POLICIES.—The Corporation shall offer to enter 

into a contract with a qualified entity to carry out research 

and development regarding insurance policies that cover loss 

of bees. 

‘‘(15) ADJUSTED GROSS REVENUE POLICIES FOR BEGINNING

PRODUCERS.—The Corporation shall offer to enter into a contract with a qualified entity to carry out research and development into needed modifications of adjusted gross revenue insurance policies, consistent with principles of actuarial sufficiency, 

to permit coverage for beginning producers with no previous 

production history, including permitting those producers to 

have production and premium rates based on information with 

similar farming operations. 

‘‘(16) SKIPROW CROPPING PRACTICES.— ‘‘(A) IN GENERAL.—The Corporation shall offer to enter 

into a contract with a qualified entity to carry out research 

into needed modifications of policies to insure corn and 

sorghum produced in the Central Great Plains (as determined by the Agricultural Research Service) through use 

of skiprow cropping practices. 

‘‘(B) RESEARCH.—Research described in subparagraph 

(A) shall— 

‘‘(i) review existing research on skiprow cropping 

practices and actual production history of producers 

using skiprow cropping practices; and 

‘‘(ii) evaluate the effectiveness of risk management 

tools for producers using skiprow cropping practices, 

including— 

‘‘(I) the appropriateness of rules in existence 

as of the date of enactment of this paragraph 

relating to the determination of acreage planted 

in skiprow patterns; and 

‘‘(II) whether policies for crops produced 

through skiprow cropping practices reflect actual 

production capabilities.’’. 

SEC. 12024. FUNDING FROM INSURANCE FUND. 

Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 

1522(e)) is amended— 

(1) in paragraph (1), by striking ‘‘$10,000,000’’ and all 

that follows through the end of the paragraph and inserting 

‘‘$7,500,000 for fiscal year 2008 and each subsequent fiscal 

year’’; 

(2) in paragraph (2)(A), by striking ‘‘$20,000,000 for’’ and 

all that follows through ‘‘year 2004’’ and inserting ‘‘$12,500,000 

for fiscal year 2008’’; and 

(3) in paragraph (3), by striking ‘‘the Corporation may 

use’’ and all that follows through the end of the paragraph 

and inserting ‘‘the Corporation may use— 

‘‘(A) not more than $5,000,000 for each fiscal year 

to improve program integrity, including by— 
H. R. 2419—467 

‘‘(i) increasing compliance-related training; 

‘‘(ii) improving analysis tools and technology 

regarding compliance; 

‘‘(iii) use of information technology, as determined 

by the Corporation; and 

‘‘(iv) identifying and using innovative compliance 

strategies; and 

‘‘(B) any excess amounts to carry out other activities 

authorized under this section.’’. 

SEC. 12025. PILOT PROGRAMS. 

(a) IN GENERAL.—Section 523 of the Federal Crop Insurance 

Act (7 U.S.C. 1523) is amended by adding at the end the following: 

‘‘(f) CAMELINA PILOT PROGRAM.— ‘‘(1) IN GENERAL.—The Corporation shall establish a pilot 

program under which producers or processors of camelina may 

propose for approval by the Board policies or plans of insurance 

for camelina, in accordance with section 508(h). 

‘‘(2) DETERMINATION BY BOARD.—The Board shall approve 

a policy or plan of insurance proposed under paragraph (1) 

if, as determined by the Board, the policy or plan of insurance— 

‘‘(A) protects the interests of producers; 

‘‘(B) is actuarially sound; and 

‘‘(C) meets the requirements of this title. 

‘‘(3) TIMEFRAME.—The Corporation shall commence the 

camelina insurance pilot program as soon as practicable after 

the date of enactment of this subsection. 

‘‘(g) SESAME INSURANCE PILOT PROGRAM.— ‘‘(1) IN GENERAL.—In addition to any other authority of 

the Corporation, the Corporation shall establish and carry out 

a pilot program under which a producer of nondehiscent sesame 

under contract may elect to obtain multiperil crop insurance, 

as determined by the Corporation. 

‘‘(2) TERMS AND CONDITIONS.—The multiperil crop insurance offered under the sesame insurance pilot program shall— 

‘‘(A) be offered through reinsurance arrangements with 

private insurance companies; 

‘‘(B) be actuarially sound; and 

‘‘(C) require the payment of premiums and administrative fees by a producer obtaining the insurance. 

‘‘(3) LOCATION.—The sesame insurance pilot program shall 

be carried out only in the State of Texas. 

‘‘(4) DURATION.—The Corporation shall commence the 

sesame insurance pilot program as soon as practicable after 

the date of the enactment of this subsection. 

‘‘(h) GRASS SEED INSURANCE PILOT PROGRAM.— 

‘‘(1) IN GENERAL.—In addition to any other authority of 

the Corporation, the Corporation shall establish and carry out 

a grass seed pilot program under which a producer of Kentucky 

bluegrass or perennial rye grass under contract may elect to 

obtain multiperil crop insurance, as determined by the Corporation. 

‘‘(2) TERMS AND CONDITIONS.—The multiperil crop insurance offered under the grass seed insurance pilot program 

shall— 

‘‘(A) be offered through reinsurance arrangements with 

private insurance companies; 
H. R. 2419—468 

‘‘(B) be actuarially sound; and 

‘‘(C) require the payment of premiums and administrative fees by a producer obtaining the insurance. 

‘‘(3) LOCATION.—The grass seed insurance pilot program 

shall be carried out only in each of the States of Minnesota 

and North Dakota. 

‘‘(4) DURATION.—The Corporation shall commence the grass 

seed insurance pilot program as soon as practicable after the 

date of the enactment of this subsection.’’. 

(b) CONFORMING AMENDMENT.—Section 196(a)(2)(B) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 

7333(a)(2)(B)) is amended by adding ‘‘camelina,’’ after ‘‘sea oats,’’. 

SEC. 12026. RISK MANAGEMENT EDUCATION FOR BEGINNING 

FARMERS OR RANCHERS. 

Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 

1524(a)) is amended— 

(1) in paragraph (1), by striking ‘‘paragraph (4)’’ and 

inserting ‘‘paragraph (5)’’; 

(2) by redesignating paragraph (4) as paragraph (5); and 

(3) by inserting after paragraph (3) the following: 

‘‘(4) REQUIREMENTS.—In carrying out the programs established under paragraphs (2) and (3), the Secretary shall place 

special emphasis on risk management strategies, education, 

and outreach specifically targeted at— 

‘‘(A) beginning farmers or ranchers; 

‘‘(B) legal immigrant farmers or ranchers that are 

attempting to become established producers in the United 

States; 

‘‘(C) socially disadvantaged farmers or ranchers; 

‘‘(D) farmers or ranchers that— 

‘‘(i) are preparing to retire; and 

‘‘(ii) are using transition strategies to help new 

farmers or ranchers get started; and 

‘‘(E) new or established farmers or ranchers that are 

converting production and marketing systems to pursue 

new markets.’’. 

SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NONINSURED 

CROP ASSISTANCE PROGRAM. 

Section 196(c)(2) of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended— 

(1) by striking ‘‘On making’’ and inserting the following: 

‘‘(A) IN GENERAL.—On making’’; and 

(2) by adding at the end the following: 

‘‘(B) AQUACULTURE PRODUCERS.—On making a determination described in subsection (a)(3) for aquaculture producers, the Secretary shall provide assistance under this 

section to aquaculture producers from all losses related 

to drought.’’. 

SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED CROP 

ASSISTANCE PROGRAM. 

Section 196(k)(1) of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended— 

(1) in subparagraph (A), by striking ‘‘$100’’ and inserting 

‘‘$250’’; and 

(2) in subparagraph (B)— 
H. R. 2419—469 

(A) by striking ‘‘$300’’ and inserting ‘‘$750’’; and 

(B) by striking ‘‘$900’’ and inserting ‘‘$1,875’’. 

SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION. 

Section 9001(d) of the U.S. Troop Readiness, Veterans’ Care, 

Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 

(Public Law 110–28; 121 Stat. 211) is amended— 

(1) by redesignating paragraph (8) as paragraph (9); and 

(2) by inserting after paragraph (7) the following: 

‘‘(8) SWEET POTATOES.— 

‘‘(A) DATA.—In the case of sweet potatoes, any data 

obtained under a pilot program carried out by the Risk 

Management Agency shall not be considered for the purpose of determining the quantity of production under the 

crop disaster assistance program established under this 

section. 

‘‘(B) EXTENSION OF DEADLINE.—If this paragraph is 

not implemented before the sign-up deadline for the crop 

disaster assistance program established under this section, 

the Secretary shall extend the deadline for producers of 

sweet potatoes to permit sign-up for the program in accordance with this paragraph.’’. 

SEC. 12030. DECLINING YIELD REPORT. 

Not later than 180 days after the date of enactment of this 

Act, the Secretary shall submit to the Committee on Agriculture 

of the House of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate a report containing details 

about activities and administrative options of the Federal Crop 

Insurance Corporation and Risk Management Agency that address 

issues relating to— 

(1) declining yields on the actual production histories of 

producers; and 

(2) declining and variable yields for perennial crops, 

including pecans. 

SEC. 12031. DEFINITION OF BASIC UNIT. 

The Secretary shall not modify the definition of ‘‘basic unit’’ 

in accordance with the proposed regulations entitled ‘‘Common Crop 

Insurance Regulations’’ (72 Fed. Reg. 28895; relating to common 

crop insurance regulations) or any successor regulation. 

SEC. 12032. CROP INSURANCE MEDIATION. 

Section 275 of the Department of Agriculture Reorganization 

Act of 1994 (7 U.S.C. 6995) is amended— 

(1) by striking ‘‘If an officer’’ and inserting the following: 

‘‘(a) IN GENERAL.—If an officer’’; 

(2) by striking ‘‘With respect to’’ and inserting the following: 

‘‘(b) FARM SERVICE AGENCY.—With respect to’’; 

(3) by striking ‘‘If a mediation’’; and inserting the following: 

‘‘(c) MEDIATION.—If a mediation’’; and 

(4) in subsection (c) (as so designated)— 

(A) by striking ‘‘participant shall be offered’’ and 

inserting ‘‘participant shall— 

‘‘(1) be offered’’; and 

(B) by striking the period at the end and inserting 

the following: ‘‘; and 
H. R. 2419—470 

‘‘(2) to the maximum extent practicable, be allowed to use 

both informal agency review and mediation to resolve disputes 

under that title.’’. 

SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 

(a) IN GENERAL.—The Federal Crop Insurance Act (7 U.S.C. 

1501 et seq.) is amended by adding at the end the following: 

‘‘Subtitle B—Supplemental Agricultural 

Disaster Assistance 

‘‘SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The term ‘actual 

production history yield’ means the weighted average of the 

actual production history for each insurable commodity or noninsurable commodity, as calculated under subtitle A or the 

noninsured crop disaster assistance program, respectively. 

‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY YIELD.—The 

term ‘adjusted actual production history yield’ means— 

‘‘(A) in the case of an eligible producer on a farm 

that has at least 4 years of actual production history yields 

for an insurable commodity that are established other than 

pursuant to section 508(g)(4)(B), the actual production history for the eligible producer without regard to any yields 

established under that section; 

‘‘(B) in the case of an eligible producer on a farm 

that has less than 4 years of actual production history 

yields for an insurable commodity, of which 1 or more 

were established pursuant to section 508(g)(4)(B), the 

actual production history for the eligible producer as calculated without including the lowest of the yields established pursuant to section 508(g)(4)(B); and 

‘‘(C) in all other cases, the actual production history 

of the eligible producer on a farm. 

‘‘(3) ADJUSTED NONINSURED CROP DISASTER ASSISTANCE PROGRAM YIELD.—The term ‘adjusted noninsured crop disaster 

assistance program yield’ means— 

‘‘(A) in the case of an eligible producer on a farm 

that has at least 4 years of production history under the 

noninsured crop disaster assistance program that are not 

replacement yields, the noninsured crop disaster assistance 

program yield without regard to any replacement yields; 

‘‘(B) in the case of an eligible producer on a farm 

that less than 4 years of production history under the 

noninsured crop disaster assistance program that are not 

replacement yields, the noninsured crop disaster assistance 

program yield as calculated without including the lowest 

of the replacement yields; and 

‘‘(C) in all other cases, the production history of the 

eligible producer on the farm under the noninsured crop 

disaster assistance program. 

‘‘(4) COUNTER-CYCLICAL PROGRAM PAYMENT YIELD.—The 

term ‘counter-cyclical program payment yield’ means the 

weighted average payment yield established under section 1102 

of the Farm Security and Rural Investment Act of 2002 (7 
H. R. 2419—471 

U.S.C. 7912), section 1102 of the Food, Conservation, and 

Energy Act of 2008, or a successor section. 

‘‘(5) DISASTER COUNTY.— 

‘‘(A) IN GENERAL.—The term ‘disaster county’ means 

a county included in the geographic area covered by a 

qualifying natural disaster declaration. 

‘‘(B) INCLUSION.—The term ‘disaster county’ includes— 

‘‘(i) a county contiguous to a county described in 

subparagraph (A); and 

‘‘(ii) any farm in which, during a calendar year, 

the total loss of production of the farm relating to 

weather is greater than 50 percent of the normal 

production of the farm, as determined by the Secretary. 

‘‘(6) ELIGIBLE PRODUCER ON A FARM.— 

‘‘(A) IN GENERAL.—The term ‘eligible producer on a 

farm’ means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes 

the production and market risks associated with the agricultural production of crops or livestock. 

‘‘(B) DESCRIPTION.—An individual or entity referred 

to in subparagraph (A) is— 

‘‘(i) a citizen of the United States; 

‘‘(ii) a resident alien; 

‘‘(iii) a partnership of citizens of the United States; 

or 

‘‘(iv) a corporation, limited liability corporation, or 

other farm organizational structure organized under 

State law. 

‘‘(7) FARM.— 

‘‘(A) IN GENERAL.—The term ‘farm’ means, in relation 

to an eligible producer on a farm, the sum of all crop 

acreage in all counties that is planted or intended to be 

planted for harvest by the eligible producer. 

‘‘(B) AQUACULTURE.—In the case of aquaculture, the 

term ‘farm’ means, in relation to an eligible producer on 

a farm, all fish being produced in all counties that are 

intended to be harvested for sale by the eligible producer. 

‘‘(C) HONEY.—In the case of honey, the term ‘farm’ 

means, in relation to an eligible producer on a farm, all 

bees and beehives in all counties that are intended to 

be harvested for a honey crop by the eligible producer. 

‘‘(8) FARM-RAISED FISH.—The term ‘farm-raised fish’ means 

any aquatic species that is propagated and reared in a controlled environment. 

‘‘(9) INSURABLE COMMODITY.—The term ‘insurable commodity’ means an agricultural commodity (excluding livestock) 

for which the producer on a farm is eligible to obtain a policy 

or plan of insurance under subtitle A. 

‘‘(10) LIVESTOCK.—The term ‘livestock’ includes— 

‘‘(A) cattle (including dairy cattle); 

‘‘(B) bison; 

‘‘(C) poultry; 

‘‘(D) sheep; 

‘‘(E) swine; 

‘‘(F) horses; and 

‘‘(G) other livestock, as determined by the Secretary. 
H. R. 2419—472 

‘‘(11) NONINSURABLE COMMODITY.—The term ‘noninsurable 

commodity’ means a crop for which the eligible producers on 

a farm are eligible to obtain assistance under the noninsured 

crop assistance program. 

‘‘(12) NONINSURED CROP ASSISTANCE PROGRAM.—The term 

‘noninsured crop assistance program’ means the program carried out under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). 

‘‘(13) QUALIFYING NATURAL DISASTER DECLARATION.—The 

term ‘qualifying natural disaster declaration’ means a natural 

disaster declared by the Secretary for production losses under 

section 321(a) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1961(a)). 

‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture. 

‘‘(15) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 

term ‘socially disadvantaged farmer or rancher’ has the 

meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 

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

‘‘(A) a State; 

‘‘(B) the District of Columbia; 

‘‘(C) the Commonwealth of Puerto Rico; and 

‘‘(D) any other territory or possession of the United 

States. 

‘‘(17) TRUST FUND.—The term ‘Trust Fund’ means the Agricultural Disaster Relief Trust Fund established under section 

902 of the Trade Act of 1974. 

‘‘(18) UNITED STATES.—The term ‘United States’ when used 

in a geographical sense, means all of the States. 

‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAYMENTS.— 

‘‘(1) IN GENERAL.—The Secretary shall use such sums as 

are necessary from the Trust Fund to make crop disaster assistance payments to eligible producers on farms in disaster counties that have incurred crop production losses or crop quality 

losses, or both, during the crop year. 

‘‘(2) AMOUNT.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary shall provide crop disaster assistance payments 

under this section to an eligible producer on a farm in 

an amount equal to 60 percent of the difference between— 

‘‘(i) the disaster assistance program guarantee, as 

described in paragraph (3); and 

‘‘(ii) the total farm revenue for a farm, as described 

in paragraph (4). 

‘‘(B) LIMITATION.—The disaster assistance program 

guarantee for a crop used to calculate the payments for 

a farm under subparagraph (A)(i) may not be greater than 

90 percent of the sum of the expected revenue, as described 

in paragraph (5) for each of the crops on a farm, as determined by the Secretary. 

‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM GUARANTEE.— 

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

this paragraph, the supplemental assistance program guarantee shall be the sum obtained by adding— 
H. R. 2419—473 

‘‘(i) for each insurable commodity on the farm, 

115 percent of the product obtained by multiplying— 

‘‘(I) a payment rate for the commodity that 

is equal to the price election for the commodity 

elected by the eligible producer; 

‘‘(II) the payment acres for the commodity that 

is equal to the number of acres planted, or prevented from being planted, to the commodity; 

‘‘(III) the payment yield for the commodity 

that is equal to the percentage of the crop insurance yield elected by the producer of the higher 

of— 

‘‘(aa) the adjusted actual production history yield; or 

‘‘(bb) the counter-cyclical program payment yield for each crop; and 

‘‘(ii) for each noninsurable commodity on a farm, 

120 percent of the product obtained by multiplying— 

‘‘(I) a payment rate for the commodity that 

is equal to 100 percent of the noninsured crop 

assistance program established price for the commodity; 

‘‘(II) the payment acres for the commodity that 

is equal to the number of acres planted, or prevented from being planted, to the commodity; and 

‘‘(III) the payment yield for the commodity 

that is equal to the higher of— 

‘‘(aa) the adjusted noninsured crop assistance program yield guarantee; or 

‘‘(bb) the counter-cyclical program payment yield for each crop. 

‘‘(B) ADJUSTMENT INSURANCE GUARANTEE.—Notwithstanding subparagraph (A), in the case of an insurable 

commodity for which a plan of insurance provides for an 

adjustment in the guarantee, such as in the case of prevented planting, the adjusted insurance guarantee shall 

be the basis for determining the disaster assistance program guarantee for the insurable commodity. 

‘‘(C) ADJUSTED ASSISTANCE LEVEL.—Notwithstanding 

subparagraph (A), in the case of a noninsurable commodity 

for which the noninsured crop assistance program provides 

for an adjustment in the level of assistance, such as in 

the case of unharvested crops, the adjusted assistance level 

shall be the basis for determining the disaster assistance 

program guarantee for the noninsurable commodity. 

‘‘(D) EQUITABLE TREATMENT FOR NON-YIELD BASED POLICIES.—The Secretary shall establish equitable treatment 

for non-yield based policies and plans of insurance, such 

as the Adjusted Gross Revenue Lite insurance program. 

‘‘(4) FARM REVENUE.— 

‘‘(A) IN GENERAL.—For purposes of this subsection, the 

total farm revenue for a farm, shall equal the sum obtained 

by adding— 

‘‘(i) the estimated actual value for each crop produced on a farm by using the product obtained by 

multiplying— 
H. R. 2419—474 

‘‘(I) the actual crop acreage harvested by an 

eligible producer on a farm; 

‘‘(II) the estimated actual yield of the crop 

production; and 

‘‘(III) subject to subparagraphs (B) and (C), 

to the extent practicable, the national average 

market price received for the marketing year, as 

determined by the Secretary; 

‘‘(ii) 15 percent of amount of any direct payments 

made to the producer under sections 1103 and 1303 

of the Food, Conservation, and Energy Act of 2008 

or successor sections; 

‘‘(iii) the total amount of any counter-cyclical payments made to the producer under sections 1104 and 

1304 of the Food, Conservation, and Energy Act of 

2008 or successor sections or of any average crop revenue election payments made to the producer under 

section 1105 of that Act; 

‘‘(iv) the total amount of any loan deficiency payments, marketing loan gains, and marketing certificate 

gains made to the producer under subtitles B and 

C of the Food, Conservation, and Energy Act of 2008 

or successor subtitles; 

‘‘(v) the amount of payments for prevented planting 

on a farm; 

‘‘(vi) the amount of crop insurance indemnities 

received by an eligible producer on a farm for each 

crop on a farm; 

‘‘(vii) the amount of payments an eligible producer 

on a farm received under the noninsured crop assistance program for each crop on a farm; and 

‘‘(viii) the value of any other natural disaster 

assistance payments provided by the Federal Government to an eligible producer on a farm for each crop 

on a farm for the same loss for which the eligible 

producer is seeking assistance. 

‘‘(B) ADJUSTMENT.—The Secretary shall adjust the 

average market price received by the eligible producer on 

a farm— 

‘‘(i) to reflect the average quality discounts applied 

to the local or regional market price of a crop or 

mechanically harvested forage due to a reduction in 

the intrinsic characteristics of the production resulting 

from adverse weather, as determined annually by the 

State office of the Farm Service Agency; and 

‘‘(ii) to account for a crop the value of which is 

reduced due to excess moisture resulting from a disaster-related condition. 

‘‘(C) MAXIMUM AMOUNT FOR CERTAIN CROPS.—With 

respect to a crop for which an eligible producer on a farm 

receives assistance under the noninsured crop assistance 

program, the national average market price received during 

the marketing year shall be an amount not more than 

100 percent of the price of the crop established under 

the noninsured crop assistance program. 

‘‘(5) EXPECTED REVENUE.—The expected revenue for each 

crop on a farm shall equal the sum obtained by adding— 
H. R. 2419—475 

‘‘(A) the product obtained by multiplying— 

‘‘(i) the greatest of— 

‘‘(I) the adjusted actual production history 

yield of the eligible producer on a farm; and 

‘‘(II) the counter-cyclical program payment 

yield; 

‘‘(ii) the acreage planted or prevented from being 

planted for each crop; and 

‘‘(iii) 100 percent of the insurance price guarantee; 

and 

‘‘(B) the product obtained by multiplying— 

‘‘(i) 100 percent of the adjusted noninsured crop 

assistance program yield; and 

‘‘(ii) 100 percent of the noninsured crop assistance 

program price for each of the crops on a farm. 

‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 

‘‘(1) PAYMENTS.—The Secretary shall use such sums as 

are necessary from the Trust Fund to make livestock indemnity 

payments to eligible producers on farms that have incurred 

livestock death losses in excess of the normal mortality due 

to adverse weather, as determined by the Secretary, during 

the calendar year, including losses due to hurricanes, floods, 

blizzards, disease, wildfires, extreme heat, and extreme cold. 

‘‘(2) PAYMENT RATES.—Indemnity payments to an eligible 

producer on a farm under paragraph (1) shall be made at 

a rate of 75 percent of the market value of the applicable 

livestock on the day before the date of death of the livestock, 

as determined by the Secretary. 

‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— 

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) COVERED LIVESTOCK.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), the term ‘covered livestock’ means livestock of an 

eligible livestock producer that, during the 60 days 

prior to the beginning date of a qualifying drought 

or fire condition, as determined by the Secretary, the 

eligible livestock producer— 

‘‘(I) owned; 

‘‘(II) leased; 

‘‘(III) purchased; 

‘‘(IV) entered into a contract to purchase; 

‘‘(V) is a contract grower; or 

‘‘(VI) sold or otherwise disposed of due to qualifying drought conditions during— 

‘‘(aa) the current production year; or 

‘‘(bb) subject to paragraph (3)(B)(ii), 1 or 

both of the 2 production years immediately 

preceding the current production year. 

‘‘(ii) EXCLUSION.—The term ‘covered livestock’ does 

not include livestock that were or would have been 

in a feedlot, on the beginning date of the qualifying 

drought or fire condition, as a part of the normal 

business operation of the eligible livestock producer, 

as determined by the Secretary. 

‘‘(B) DROUGHT MONITOR.—The term ‘drought monitor’ 

means a system for classifying drought severity according 
H. R. 2419—476 

to a range of abnormally dry to exceptional drought, as 

defined by the Secretary. 

‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 

‘‘(i) IN GENERAL.—The term ‘eligible livestock producer’ means an eligible producer on a farm that— 

‘‘(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the 

pastureland or grazing land, including cash-leased 

pastureland or grazing land, for the livestock; 

‘‘(II) provides the pastureland or grazing land 

for covered livestock, including cash-leased 

pastureland or grazing land that is physically 

located in a county affected by drought; 

‘‘(III) certifies grazing loss; and 

‘‘(IV) meets all other eligibility requirements 

established under this subsection. 

‘‘(ii) EXCLUSION.—The term ‘eligible livestock producer’ does not include an owner, cash or share lessee, 

or contract grower of livestock that rents or leases 

pastureland or grazing land owned by another person 

on a rate-of-gain basis. 

‘‘(D) NORMAL CARRYING CAPACITY.—The term ‘normal 

carrying capacity’, with respect to each type of grazing 

land or pastureland in a county, means the normal carrying 

capacity, as determined under paragraph (3)(D)(i), that 

would be expected from the grazing land or pastureland 

for livestock during the normal grazing period, in the 

absence of a drought or fire that diminishes the production 

of the grazing land or pastureland. 

‘‘(E) NORMAL GRAZING PERIOD.—The term ‘normal 

grazing period’, with respect to a county, means the normal 

grazing period during the calendar year for the county, 

as determined under paragraph (3)(D)(i). 

‘‘(2) PROGRAM.—The Secretary shall use such sums as are 

necessary from the Trust Fund to provide compensation for 

losses to eligible livestock producers due to grazing losses for 

covered livestock due to— 

‘‘(A) a drought condition, as described in paragraph 

(3); or 

‘‘(B) fire, as described in paragraph (4). 

‘‘(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT CONDITIONS.— 

‘‘(A) ELIGIBLE LOSSES.— 

‘‘(i) IN GENERAL.—An eligible livestock producer 

may receive assistance under this subsection only for 

grazing losses for covered livestock that occur on land 

that— 

‘‘(I) is native or improved pastureland with 

permanent vegetative cover; or 

‘‘(II) is planted to a crop planted specifically 

for the purpose of providing grazing for covered 

livestock. 

‘‘(ii) EXCLUSIONS.—An eligible livestock producer 

may not receive assistance under this subsection for 

grazing losses that occur on land used for haying or 

grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle 
H. R. 2419—477 

D of title XII of the Food Security Act of 1985 (16 

U.S.C. 3831 et seq.). 

‘‘(B) MONTHLY PAYMENT RATE.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be 

equal to 60 percent of the lesser of— 

‘‘(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock 

producer, as determined under subparagraph (C); 

or 

‘‘(II) the monthly feed cost calculated by using 

the normal carrying capacity of the eligible grazing 

land of the eligible livestock producer. 

‘‘(ii) PARTIAL COMPENSATION.—In the case of an 

eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions 

in 1 or both of the 2 production years immediately 

preceding the current production year, as determined 

by the Secretary, the payment rate shall be 80 percent 

of the payment rate otherwise calculated in accordance 

with clause (i). 

‘‘(C) MONTHLY FEED COST.— ‘‘(i) IN GENERAL.—The monthly feed cost shall 

equal the product obtained by multiplying— 

‘‘(I) 30 days; 

‘‘(II) a payment quantity that is equal to the 

feed grain equivalent, as determined under clause 

(ii); and 

‘‘(III) a payment rate that is equal to the corn 

price per pound, as determined under clause (iii). 

‘‘(ii) FEED GRAIN EQUIVALENT.—For purposes of 

clause (i)(I), the feed grain equivalent shall equal— 

‘‘(I) in the case of an adult beef cow, 15.7 

pounds of corn per day; or 

‘‘(II) in the case of any other type of weight 

of livestock, an amount determined by the Secretary that represents the average number of 

pounds of corn per day necessary to feed the livestock. 

‘‘(iii) CORN PRICE PER POUND.—For purposes of 

clause (i)(II), the corn price per pound shall equal 

the quotient obtained by dividing— 

‘‘(I) the higher of— 

‘‘(aa) the national average corn price per 

bushel for the 12-month period immediately 

preceding March 1 of the year for which the 

disaster assistance is calculated; or 

‘‘(bb) the national average corn price per 

bushel for the 24-month period immediately 

preceding that March 1; by 

‘‘(II) 56. 

‘‘(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR

INTENSITY.— 

‘‘(i) FSA COUNTY COMMITTEE DETERMINATIONS.— ‘‘(I) IN GENERAL.—The Secretary shall determine the normal carrying capacity and normal 
H. R. 2419—478 

grazing period for each type of grazing land or 

pastureland in the county served by the applicable 

committee. 

‘‘(II) CHANGES.—No change to the normal carrying capacity or normal grazing period established 

for a county under subclause (I) shall be made 

unless the change is requested by the appropriate 

State and county Farm Service Agency committees. 

‘‘(ii) DROUGHT INTENSITY.— 

‘‘(I) D2.—An eligible livestock producer that 

owns or leases grazing land or pastureland that 

is physically located in a county that is rated by 

the U.S. Drought Monitor as having a D2 (severe 

drought) intensity in any area of the county for 

at least 8 consecutive weeks during the normal 

grazing period for the county, as determined by 

the Secretary, shall be eligible to receive assistance 

under this paragraph in an amount equal to 1 

monthly payment using the monthly payment rate 

determined under subparagraph (B). 

‘‘(II) D3.—An eligible livestock producer that 

owns or leases grazing land or pastureland that 

is physically located in a county that is rated by 

the U.S. Drought Monitor as having at least a 

D3 (extreme drought) intensity in any area of the 

county at any time during the normal grazing 

period for the county, as determined by the Secretary, shall be eligible to receive assistance under 

this paragraph— 

‘‘(aa) in an amount equal to 2 monthly 

payments using the monthly payment rate 

determined under subparagraph (B); or 

‘‘(bb) if the county is rated as having a 

D3 (extreme drought) intensity in any area 

of the county for at least 4 weeks during the 

normal grazing period for the county, or is 

rated as having a D4 (exceptional drought) 

intensity in any area of the county at any 

time during the normal grazing period, in an 

amount equal to 3 monthly payments using 

the monthly payment rate determined under 

subparagraph (B). 

‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MAN- AGED LAND.— ‘‘(A) IN GENERAL.—An eligible livestock producer may 

receive assistance under this paragraph only if— 

‘‘(i) the grazing losses occur on rangeland that 

is managed by a Federal agency; and 

‘‘(ii) the eligible livestock producer is prohibited 

by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to 

a fire. 

‘‘(B) PAYMENT RATE.—The payment rate for assistance 

under this paragraph shall be equal to 50 percent of the 

monthly feed cost for the total number of livestock covered 

by the Federal lease of the eligible livestock producer, 

as determined under paragraph (3)(C). 
H. R. 2419—479 

‘‘(C) PAYMENT DURATION.— 

‘‘(i) IN GENERAL.—Subject to clause (ii), an eligible 

livestock producer shall be eligible to receive assistance 

under this paragraph for the period— 

‘‘(I) beginning on the date on which the Federal agency excludes the eligible livestock producer 

from using the managed rangeland for grazing; 

and 

‘‘(II) ending on the last day of the Federal 

lease of the eligible livestock producer. 

‘‘(ii) LIMITATION.—An eligible livestock producer 

may only receive assistance under this paragraph for 

losses that occur on not more than 180 days per year. 

‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE REQUIREMENTS.— 

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

this paragraph, a livestock producer shall only be eligible 

for assistance under this subsection if the livestock producer— 

‘‘(i) obtained a policy or plan of insurance under 

subtitle A for the grazing land incurring the losses 

for which assistance is being requested; or 

‘‘(ii) filed the required paperwork, and paid the 

administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for 

the grazing land incurring the losses for which assistance is being requested. 

‘‘(B) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED

RESOURCE, OR BEGINNING FARMER OR RANCHER.—In the 

case of an eligible livestock producer that is a socially 

disadvantaged farmer or rancher or limited resource or 

beginning farmer or rancher, as determined by the Secretary, the Secretary may— 

‘‘(i) waive subparagraph (A); and 

‘‘(ii) provide disaster assistance under this section 

at a level that the Secretary determines to be equitable 

and appropriate. 

‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.—In the case 

of an eligible livestock producer that suffered losses on 

grazing land during the 2008 calendar year but does not 

meet the requirements of subparagraph (A), the Secretary 

shall waive subparagraph (A) if the eligible livestock producer pays a fee in an amount equal to the applicable 

noninsured crop assistance program fee or catastrophic 

risk protection plan fee required under subparagraph (A) 

to the Secretary not later than 90 days after the date 

of enactment of this subtitle. 

‘‘(D) EQUITABLE RELIEF.— 

‘‘(i) IN GENERAL.—The Secretary may provide equitable relief to an eligible livestock producer that is 

otherwise ineligible or unintentionally fails to meet 

the requirements of subparagraph (A) for the grazing 

land incurring the loss on a case-by-case basis, as 

determined by the Secretary. 

‘‘(ii) 2008 CALENDAR YEAR.—In the case of an 

eligible livestock producer that suffered losses on 
H. R. 2419—480 

grazing land during the 2008 calendar year, the Secretary shall take special consideration to provide equitable relief in cases in which the eligible livestock 

producer failed to meet the requirements of subparagraph (A) due to the enactment of this subtitle after 

the closing date of sales periods for crop insurance 

under subtitle A and the noninsured crop assistance 

program. 

‘‘(6) NO DUPLICATIVE PAYMENTS.— 

‘‘(A) IN GENERAL.—An eligible livestock producer may 

elect to receive assistance for grazing or pasture feed losses 

due to drought conditions under paragraph (3) or fire under 

paragraph (4), but not both for the same loss, as determined 

by the Secretary. 

‘‘(B) RELATIONSHIP TO SUPPLEMENTAL REVENUE ASSISTANCE.—An eligible livestock producer that receives assistance under this subsection may not also receive assistance 

for losses to crops on the same land with the same intended 

use under subsection (b). 

‘‘(e) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND

FARM-RAISED FISH.— 

‘‘(1) IN GENERAL.—The Secretary shall use up to 

$50,000,000 per year from the Trust Fund to provide emergency 

relief to eligible producers of livestock, honey bees, and farmraised fish to aid in the reduction of losses due to disease, 

adverse weather, or other conditions, such as blizzards and 

wildfires, as determined by the Secretary, that are not covered 

under subsection (b), (c), or (d). 

‘‘(2) USE OF FUNDS.—Funds made available under this subsection shall be used to reduce losses caused by feed or water 

shortages, disease, or other factors as determined by the Secretary. 

‘‘(3) AVAILABILITY OF FUNDS.—Any funds made available 

under this subsection shall remain available until expended. 

‘‘(f) TREE ASSISTANCE PROGRAM.— 

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) ELIGIBLE ORCHARDIST.—The term ‘eligible 

orchardist’ means a person that produces annual crops 

from trees for commercial purposes. 

‘‘(B) NATURAL DISASTER.—The term ‘natural disaster’ 

means plant disease, insect infestation, drought, fire, 

freeze, flood, earthquake, lightning, or other occurrence, 

as determined by the Secretary. 

‘‘(C) NURSERY TREE GROWER.—The term ‘nursery tree 

grower’ means a person who produces nursery, ornamental, 

fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary. 

‘‘(D) TREE.—The term ‘tree’ includes a tree, bush, and 

vine. 

‘‘(2) ELIGIBILITY.— 

‘‘(A) LOSS.—Subject to subparagraph (B), the Secretary 

shall provide assistance— 

‘‘(i) under paragraph (3) to eligible orchardists and 

nursery tree growers that planted trees for commercial 

purposes but lost the trees as a result of a natural 

disaster, as determined by the Secretary; and 
H. R. 2419—481 

‘‘(ii) under paragraph (3)(B) to eligible orchardists 

and nursery tree growers that have a production history for commercial purposes on planted or existing 

trees but lost the trees as a result of a natural disaster, 

as determined by the Secretary. 

‘‘(B) LIMITATION.—An eligible orchardist or nursery 

tree grower shall qualify for assistance under subparagraph 

(A) only if the tree mortality of the eligible orchardist 

or nursery tree grower, as a result of damaging weather 

or related condition, exceeds 15 percent (adjusted for 

normal mortality). 

‘‘(3) ASSISTANCE.—Subject to paragraph (4), the assistance 

provided by the Secretary to eligible orchardists and nursery 

tree growers for losses described in paragraph (2) shall consist 

of— 

‘‘(A)(i) reimbursement of 70 percent of the cost of 

replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality 

(adjusted for normal mortality); or 

‘‘(ii) at the option of the Secretary, sufficient seedlings 

to reestablish a stand; and 

‘‘(B) reimbursement of 50 percent of the cost of pruning, 

removal, and other costs incurred by an eligible orchardist 

or nursery tree grower to salvage existing trees or, in 

the case of tree mortality, to prepare the land to replant 

trees as a result of damage or tree mortality due to a 

natural disaster, as determined by the Secretary, in excess 

of 15 percent damage or mortality (adjusted for normal 

tree damage and mortality). 

‘‘(4) LIMITATIONS ON ASSISTANCE.— ‘‘(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In 

this paragraph, the terms ‘legal entity’ and ‘person’ have 

the meaning given those terms in section 1001(a) of the 

Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended 

by section 1603 of the Food, Conservation, and Energy 

Act of 2008). 

‘‘(B) AMOUNT.—The total amount of payments received, 

directly or indirectly, by a person or legal entity (excluding 

a joint venture or general partnership) under this subsection may not exceed $100,000 for any crop year, or 

an equivalent value in tree seedlings. 

‘‘(C) ACRES.—The total quantity of acres planted to 

trees or tree seedlings for which a person or legal entity 

shall be entitled to receive payments under this subsection 

may not exceed 500 acres. 

‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.— 

‘‘(1) IN GENERAL.—Except as otherwise provided in this 

section, the eligible producers on a farm shall not be eligible 

for assistance under this section (other than subsection (c)) 

if the eligible producers on the farm— 

‘‘(A) in the case of each insurable commodity of the 

eligible producers on the farm, did not obtain a policy 

or plan of insurance under subtitle A (excluding a crop 

insurance pilot program under that subtitle); or 

‘‘(B) in the case of each noninsurable commodity of 

the eligible producers on the farm, did not file the required 

paperwork, and pay the administrative fee by the 
H. R. 2419—482 

applicable State filing deadline, for the noninsured crop 

assistance program. 

‘‘(2) MINIMUM.—To be considered to have obtained insurance under paragraph (1)(A), an eligible producer on a farm 

shall have obtained a policy or plan of insurance with not 

less than 50 percent yield coverage at 55 percent of the insurable price for each crop grazed, planted, or intended to be 

planted for harvest on a whole farm. 

‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED

RESOURCE, OR BEGINNING FARMER OR RANCHER.—With respect 

to eligible producers that are socially disadvantaged farmers 

or ranchers or limited resource or beginning farmers or 

ranchers, as determined by the Secretary, the Secretary may— 

‘‘(A) waive paragraph (1); and 

‘‘(B) provide disaster assistance under this section at 

a level that the Secretary determines to be equitable and 

appropriate. 

‘‘(4) WAIVER FOR 2008 CROP YEAR.—In the case of an eligible 

producer that suffered losses in an insurable commodity or 

noninsurable commodity during the 2008 crop year but does 

not meet the requirements of paragraph (1), the Secretary 

shall waive paragraph (1) if the eligible producer pays a fee 

in an amount equal to the applicable noninsured crop assistance 

program fee or catastrophic risk protection plan fee required 

under paragraph (1) to the Secretary not later than 90 days 

after the date of enactment of this subtitle. 

‘‘(5) EQUITABLE RELIEF.— 

‘‘(A) IN GENERAL.—The Secretary may provide equitable relief to eligible producers on a farm that are otherwise ineligible or unintentionally fail to meet the requirements of paragraph (1) for 1 or more crops on a farm 

on a case-by-case basis, as determined by the Secretary. 

‘‘(B) 2008 CROP YEAR.—In the case of eligible producers 

on a farm that suffered losses in an insurable commodity 

or noninsurable commodity during the 2008 crop year, the 

Secretary shall take special consideration to provide equitable relief in cases in which the eligible producers failed 

to meet the requirements of paragraph (1) due to the 

enactment of this subtitle after the closing date of sales 

periods for crop insurance under subtitle A and the noninsured crop assistance program. 

‘‘(h) PAYMENT LIMITATIONS.— 

‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this 

subsection, the terms ‘legal entity’ and ‘person’ have the 

meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section 

1603 of the Food, Conservation, and Energy Act of 2008). 

‘‘(2) AMOUNT.—The total amount of disaster assistance payments received, directly or indirectly, by a person or legal 

entity (excluding a joint venture or general partnership) under 

this section (excluding payments received under subsection (f)) 

may not exceed $100,000 for any crop year. 

‘‘(3) AGI LIMITATION.—Section 1001D of the Food Security 

Act of 1985 (7 U.S.C. 1308–3a) or any successor provision 

shall apply with respect to assistance provided under this section. 
H. R. 2419—483 

‘‘(4) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section 

1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or 

any successor provisions relating to direct attribution shall 

apply with respect to assistance provided under this section. 

‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall be effective 

only for losses that are incurred as the result of a disaster, adverse 

weather, or other environmental condition that occurs on or before 

September 30, 2011, as determined by the Secretary. 

‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing any other 

program which makes disaster assistance payments (except for 

indemnities made under subtitle A and section 196 of the Federal 

Agriculture Improvement and Reform Act of 1996), the Secretary 

shall prevent duplicative payments with respect to the same loss 

for which a person receives a payment under subsections (b), (c), 

(d), (e), or (f). 

‘‘(k) APPLICATION.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2) and notwithstanding any provision of subtitle A, subtitle A shall not apply 

to this subtitle. 

‘‘(2) CROSS REFERENCES.—Paragraph (1) shall not apply 

to a specific reference in this subtitle to a provision of subtitle 

A.’’. 

(b) TRANSITION.—For purposes of the 2008 crop year, the Secretary shall carry out subsections (f)(4) and (h) of section 531 

of the Federal Crop Insurance Act (as added by subsection (a)) 

in accordance with the terms and conditions of sections 1001 

through 1001D of the Food Security Act of 1985 (16 U.S.C. 1308 

et seq.), as in effect on September 30, 2007. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 501 of the Federal Crop Insurance Act (7 U.S.C. 

1501) is amended by striking the section heading and enumerator and inserting the following: 

‘‘Subtitle A—Federal Crop Insurance Act 

‘‘SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PROVISIONS.’’. 

(2) Subtitle A of the Federal Crop Insurance Act (as designated under paragraph (1)) is amended— 

(A) by striking ‘‘This title’’ each place it appears and 

inserting ‘‘This subtitle’’; and 

(B) by striking ‘‘this title’’ each place it appears and 

inserting ‘‘this subtitle’’. 

SEC. 12034. FISHERIES DISASTER ASSISTANCE. 

Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall transfer to the Secretary of Commerce 

$170,000,000 for fiscal year 2008 for the National Marine Fisheries 

Service to distribute to commercial and recreational members of 

the fishing communities affected by the salmon fishery failure in 

the States of California, Oregon, and Washington designated under 

section 312(a) of the Magnuson-Stevens Fishery Conservation and 

Management Act (16 U.S.C. 1861a(a)) on May 1, 2008, in accordance 

with that section. 
H. R. 2419—484 

Subtitle B—Small Business Disaster Loan 

Program 

SEC. 12051. SHORT TITLE. 

This subtitle may be cited as the ‘‘Small Business Disaster 

Response and Loan Improvements Act of 2008’’. 

SEC. 12052. DEFINITIONS. 

In this subtitle— 

(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 

the Small Business Administration and the Administrator 

thereof, respectively; 

(2) the term ‘‘disaster area’’ means an area affected by 

a natural or other disaster, as determined for purposes of 

paragraph (1) or (2) of section 7(b) of the Small Business 

Act (15 U.S.C. 636(b)), during the period of such declaration; 

(3) the term ‘‘disaster loan program of the Administration’’ 

means assistance under section 7(b) of the Small Business 

Act (15 U.S.C. 636(b)), as amended by this Act; 

(4) the term ‘‘disaster update period’’ means the period 

beginning on the date on which the President declares a major 

disaster (including any major disaster relating to which the 

Administrator declares eligibility for additional disaster assistance under paragraph (9) of section 7(b) of the Small Business 

Act (15 U.S.C. 636(b)), as added by this Act) and ending on 

the date on which such declaration terminates; 

(5) the term ‘‘major disaster’’ has the meaning given that 

term in section 102 of the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5122); 

(6) the term ‘‘small business concern’’ has the meaning 

given that term under section 3 of the Small Business Act 

(15 U.S.C. 632); and 

(7) the term ‘‘State’’ means any State of the United States, 

the District of Columbia, the Commonwealth of Puerto Rico, 

the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and any territory or possession of the United 

States. 

PART I—DISASTER PLANNING AND RESPONSE 

SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS. 

(a) IN GENERAL.—Section 7(b)(2) of the Small Business Act 

(15 U.S.C. 636(b)(2)) is amended— 

(1) in the matter preceding subparagraph (A)— 

(A) by inserting after ‘‘small business concern’’ the 

following: ‘‘, private nonprofit organization,’’; and 

(B) by inserting after ‘‘the concern’’ the following: ‘‘, 

the organization,’’; and 

(2) in subparagraph (D) by inserting after ‘‘small business 

concerns’’ the following: ‘‘, private nonprofit organizations,’’. 

(b) CONFORMING AMENDMENT.—Section 7(c)(5)(C) of the Small 

Business Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting after 

‘‘business’’ the following: ‘‘, private nonprofit organization,’’. 
H. R. 2419—485 

SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS 

WITH FEMA. 

The Small Business Act (15 U.S.C. 631 et seq.) is amended— 

(1) by redesignating section 37 as section 44; and 

(2) by inserting after section 36 the following: 

‘‘SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH 

FEMA. 

‘‘(a) COORDINATION REQUIRED.—The Administrator shall ensure 

that the disaster assistance programs of the Administration are 

coordinated, to the maximum extent practicable, with the disaster 

assistance programs of the Federal Emergency Management 

Agency. 

‘‘(b) REGULATIONS REQUIRED.—The Administrator, in consultation with the Administrator of the Federal Emergency Management 

Agency, shall establish regulations to ensure that each application 

for disaster assistance is submitted as quickly as practicable to 

the Administration or directed to the appropriate agency under 

the circumstances. 

‘‘(c) COMPLETION; REVISION.—The initial regulations shall be 

completed not later than 270 days after the date of the enactment 

of the Small Business Disaster Response and Loan Improvements 

Act of 2008. Thereafter, the regulations shall be revised on an 

annual basis. 

‘‘(d) REPORT.—The Administrator shall include a report on the 

regulations whenever the Administration submits the report 

required by section 43.’’. 

SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARATION AND 

APPLICATION PERIODS. 

(a) IN GENERAL.—Section 7(b) of the Small Business Act (15 

U.S.C. 636(b)) is amended by inserting immediately after paragraph 

(3), the following: 

‘‘(4) COORDINATION WITH FEMA.— ‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, for any disaster declared under this subsection 

or major disaster (including any major disaster relating 

to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), the 

Administrator, in consultation with the Administrator of 

the Federal Emergency Management Agency, shall ensure, 

to the maximum extent practicable, that all application 

periods for disaster relief under this Act correspond with 

application deadlines established under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5121 et seq.), or as extended by the President. 

‘‘(B) DEADLINES.—Notwithstanding any other provision 

of law, not later than 10 days before the closing date 

of an application period for a major disaster (including 

any major disaster relating to which the Administrator 

declares eligibility for additional disaster assistance under 

paragraph (9)), the Administrator, in consultation with the 

Administrator of the Federal Emergency Management 

Agency, shall submit to the Committee on Small Business 

and Entrepreneurship of the Senate and the Committee 

on Small Business of the House of Representatives a report 

that includes— 
H. R. 2419—486 

‘‘(i) the deadline for submitting applications for 

assistance under this Act relating to that major disaster; 

‘‘(ii) information regarding the number of loan 

applications and disbursements processed by the 

Administrator relating to that major disaster for each 

day during the period beginning on the date on which 

that major disaster was declared and ending on the 

date of that report; and 

‘‘(iii) an estimate of the number of potential 

applicants that have not submitted an application 

relating to that major disaster. 

‘‘(5) PUBLIC AWARENESS OF DISASTERS.—If a disaster is 

declared under this subsection or the Administrator declares 

eligibility for additional disaster assistance under paragraph 

(9), the Administrator shall make every effort to communicate 

through radio, television, print, and web-based outlets, all relevant information needed by disaster loan applicants, 

including— 

‘‘(A) the date of such declaration; 

‘‘(B) cities and towns within the area of such declaration; 

‘‘(C) loan application deadlines related to such disaster; 

‘‘(D) all relevant contact information for victim services 

available through the Administration (including links to 

small business development center websites); 

‘‘(E) links to relevant Federal and State disaster assistance websites, including links to websites providing 

information regarding assistance available from the Federal Emergency Management Agency; 

‘‘(F) information on eligibility criteria for Administration loan programs, including where such applications can 

be found; and 

‘‘(G) application materials that clearly state the function of the Administration as the Federal source of disaster 

loans for homeowners and renters.’’. 

(b) MARKETING AND OUTREACH.—Not later than 90 days after 

the date of enactment of this Act, the Administrator shall create 

a marketing and outreach plan that— 

(1) encourages a proactive approach to the disaster relief 

efforts of the Administration; 

(2) makes clear the services provided by the Administration, including contact information, application information, and 

timelines for submitting applications, the review of applications, 

and the disbursement of funds; 

(3) describes the different disaster loan programs of the 

Administration, including how they are made available and 

the eligibility requirements for each loan program; 

(4) provides for regional marketing, focusing on disasters 

occurring in each region before the date of enactment of this 

Act, and likely scenarios for disasters in each such region; 

and 

(5) ensures that the marketing plan is made available 

at small business development centers and on the website 

of the Administration. 

(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
H. R. 2419—487 

(1) IN GENERAL.—Section 3 of the Small Business Act (15 

U.S.C. 632) is amended by adding at the end the following: 

‘‘(s) MAJOR DISASTER.—In this Act, the term ‘major disaster’ 

has the meaning given that term in section 102 of the Robert 

T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 

5122).’’. 

(2) TECHNICAL CORRECTION.—Section 7(b)(2) of the Small 

Business Act (15 U.S.C. 636(b)(2)) is amended by striking ‘‘Disaster Relief and Emergency Assistance Act’’ and inserting 

‘‘Robert T. Stafford Disaster Relief and Emergency Assistance 

Act (42 U.S.C. 5121 et seq.)’’. 

SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS 

AND STANDARD OPERATING PROCEDURES. 

(a) IN GENERAL.—The Administrator shall, promptly following 

the date of enactment of this Act, conduct a study of whether 

the standard operating procedures of the Administration for loans 

offered under section 7(b) of the Small Business Act (15 U.S.C. 

636(b)) are consistent with the regulations of the Administration 

for administering the disaster loan program. 

(b) REPORT.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to Congress a 

report containing all findings and recommendations of the study 

conducted under subsection (a). 

SEC. 12065. INCREASING COLLATERAL REQUIREMENTS. 

Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)) 

is amended by striking ‘‘$10,000 or less’’ and inserting ‘‘$14,000 

or less (or such higher amount as the Administrator determines 

appropriate in the event of a major disaster)’’. 

SEC. 12066. PROCESSING DISASTER LOANS. 

(a) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS TO

PROCESS DISASTER LOANS.—Section 7(b) of the Small Business Act 

(15 U.S.C. 636(b)) is amended by inserting immediately after paragraph (5), as added by this Act, the following: 

‘‘(6) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS.— 

‘‘(A) DISASTER LOAN PROCESSING.—The Administrator 

may enter into an agreement with a qualified private contractor, as determined by the Administrator, to process 

loans under this subsection in the event of a major disaster 

(including any major disaster relating to which the 

Administrator declares eligibility for additional disaster 

assistance under paragraph (9)), under which the Administrator shall pay the contractor a fee for each loan processed. 

‘‘(B) LOAN LOSS VERIFICATION SERVICES.—The Administrator may enter into an agreement with a qualified lender 

or loss verification professional, as determined by the 

Administrator, to verify losses for loans under this subsection in the event of a major disaster (including any 

major disaster relating to which the Administrator declares 

eligibility for additional disaster assistance under paragraph (9)), under which the Administrator shall pay the 

lender or verification professional a fee for each loan for 

which such lender or verification professional verifies 

losses.’’. 
H. R. 2419—488 

(b) COORDINATION OF EFFORTS BETWEEN THE ADMINISTRATOR

AND THE INTERNAL REVENUE SERVICE TO EXPEDITE LOAN PROC- ESSING.—The Administrator and the Commissioner of Internal Revenue shall, to the maximum extent practicable, ensure that all 

relevant and allowable tax records for loan approval are shared 

with loan processors in an expedited manner, upon request by 

the Administrator. 

SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM. 

The Small Business Act is amended by inserting after section 

37, as added by this Act, the following: 

‘‘SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER ASSISTANCE. 

‘‘(a) SYSTEM REQUIRED.—The Administrator shall develop, 

implement, or maintain a centralized information system to track 

communications between personnel of the Administration and 

applicants for disaster assistance. The system shall ensure that 

whenever an applicant for disaster assistance communicates with 

such personnel on a matter relating to the application, the following 

information is recorded: 

‘‘(1) The method of communication. 

‘‘(2) The date of communication. 

‘‘(3) The identity of the personnel. 

‘‘(4) A summary of the subject matter of the communication. 

‘‘(b) FOLLOW-UP REQUIRED.—The Administrator shall ensure 

that an applicant for disaster assistance receives, by telephone, 

mail, or electronic mail, follow-up communications from the 

Administration at all critical stages of the application process, 

including the following: 

‘‘(1) When the Administration determines that additional 

information or documentation is required to process the application. 

‘‘(2) When the Administration determines whether to 

approve or deny the loan. 

‘‘(3) When the primary contact person managing the loan 

application has changed.’’. 

SEC. 12068. INCREASED DEFERMENT PERIOD. 

(a) IN GENERAL.—Section 7 of the Small Business Act (15 

U.S.C. 636) is amended— 

(1) by redesignating subsections (c) and (d) as subsections 

(d) and (e), respectively; and 

(2) by inserting after subsection (e), as so redesignated, 

the following: 

‘‘(f) ADDITIONAL REQUIREMENTS FOR 7(b) LOANS.— ‘‘(1) INCREASED DEFERMENT AUTHORIZED.— ‘‘(A) IN GENERAL.—In making loans under subsection 

(b), the Administrator may provide, to the person receiving 

the loan, an option to defer repayment on the loan. 

‘‘(B) PERIOD.—The period of a deferment under 

subparagraph (A) may not exceed 4 years.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENTS.—The Small 

Business Act (15 U.S.C. 631 et seq.) is amended— 

(1) in section 4(c)— 

(A) in paragraph (1), by striking ‘‘7(c)(2)’’ and inserting 

‘‘7(d)(2)’’; and 

(B) in paragraph (2)— 
H. R. 2419—489 

(i) by striking ‘‘7(c)(2)’’ and inserting ‘‘7(d)(2)’’; and 

(ii) by striking ‘‘7(e),’’; and 

(2) in section 7(b), in the undesignated matter following 

paragraph (3)— 

(A) by striking ‘‘That the provisions of paragraph (1) 

of subsection (c)’’ and inserting ‘‘That the provisions of 

paragraph (1) of subsection (d)’’; and 

(B) by striking ‘‘Notwithstanding the provisions of any 

other law the interest rate on the Administration’s share 

of any loan made under subsection (b) except as provided 

in subsection (c),’’ and inserting ‘‘Notwithstanding any 

other provision of law, and except as provided in subsection 

(d), the interest rate on the Administration’s share of any 

loan made under subsection (b)’’. 

SEC. 12069. DISASTER PROCESSING REDUNDANCY. 

The Small Business Act (15 U.S.C. 631 et seq.) is amended 

by inserting after section 38, as added by this Act, the following: 

‘‘SEC. 39. DISASTER PROCESSING REDUNDANCY. 

‘‘(a) IN GENERAL.—The Administrator shall ensure that the 

Administration has in place a facility for disaster loan processing 

that, whenever the Administration’s primary facility for disaster 

loan processing becomes unavailable, is able to take over all disaster 

loan processing from that primary facility within 2 days. 

‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as may be necessary to carry out 

this section.’’. 

SEC. 12070. NET EARNINGS CLAUSES PROHIBITED. 

Section 7 of the Small Business Act (15 U.S.C. 636) is amended 

by inserting after subsection (f), as added by this Act, the following: 

‘‘(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) LOANS.— In making loans under subsection (b), the Administrator shall not 

require the borrower to pay any non-amortized amount for the 

first five years after repayment begins.’’. 

SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE 

STORMS AND BLIZZARDS. 

Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) 

is amended— 

(1) in subparagraph (A) by striking ‘‘and’’; 

(2) in subparagraph (B) by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(C) ice storms and blizzards.’’. 

SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE PLAN. 

(a) IN GENERAL.—Not later than 3 months after the date of 

enactment of this Act, the Administrator shall— 

(1) by rule, amend the 2006 Atlantic hurricane season 

disaster response plan of the Administration (in this section 

referred to as the ‘‘disaster response plan’’) to apply to major 

disasters; and 

(2) submit a report to the Committee on Small Business 

and Entrepreneurship of the Senate and the Committee on 
H. R. 2419—490 

Small Business of the House of Representatives detailing the 

amendments to the disaster response plan. 

(b) CONTENTS.—The report required under subsection (a)(2) 

shall include— 

(1) any updates or modifications made to the disaster 

response plan since the report regarding the disaster response 

plan submitted to Congress on July 14, 2006; 

(2) a description of how the Administrator plans to use 

and integrate District Office personnel of the Administration 

in the response to a major disaster, including information on 

the use of personnel for loan processing and loan disbursement; 

(3) a description of the disaster scalability model of the 

Administration and on what basis or function the plan is scaled; 

(4) a description of how the agency-wide Disaster Oversight 

Council is structured, which offices comprise its membership, 

and whether the Associate Deputy Administrator for Entrepreneurial Development of the Administration is a member; 

(5) a description of how the Administrator plans to coordinate the disaster efforts of the Administration with State and 

local government officials, including recommendations on how 

to better incorporate State initiatives or programs, such as 

State-administered bridge loan programs, into the disaster 

response of the Administration; 

(6) recommendations, if any, on how the Administration 

can better coordinate its disaster response operations with the 

operations of other Federal, State, and local entities; 

(7) any surge plan for the disaster loan program of the 

Administration in effect on or after August 29, 2005 (including 

surge plans for loss verification, loan processing, mailroom, 

customer service or call center operations, and a continuity 

of operations plan); 

(8) the number of full-time equivalent employees and job 

descriptions for the planning and disaster response staff of 

the Administration; 

(9) the in-service and preservice training procedures for 

disaster response staff of the Administration; 

(10) information on the logistical support plans of the 

Administration (including equipment and staffing needs, and 

detailed information on how such plans will be scalable 

depending on the size and scope of the major disaster; 

(11) a description of the findings and recommendations 

of the Administrator, if any, based on a review of the response 

of the Administration to Hurricane Katrina of 2005, Hurricane 

Rita of 2005, and Hurricane Wilma of 2005; and 

(12) a plan for how the Administrator, in consultation 

with the Administrator of the Federal Emergency Management 

Agency, will coordinate the provision of accommodations and 

necessary resources for disaster assistance personnel to effectively perform their responsibilities in the aftermath of a major 

disaster. 

(c) BIENNIAL DISASTER SIMULATION EXERCISE.— 

(1) EXERCISE REQUIRED.—The Administrator shall conduct 

a disaster simulation exercise at least once every 2 fiscal years. 

The exercise shall include the participation of, at a minimum, 

not less than 50 percent of the individuals in the disaster 

reserve corps and shall test, at maximum capacity, all of the 

information technology and telecommunications systems of the 
H. R. 2419—491 

Administration that are vital to the activities of the Administration during such a disaster. 

(2) REPORT.—The Administrator shall include a report on 

the disaster simulation exercises conducted under paragraph 

(1) each time the Administration submits a report required 

under section 43 of the Small Business Act, as added by this 

Act. 

SEC. 12073. DISASTER PLANNING RESPONSIBILITIES. 

(a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRATION DISASTER

PLANNING RESPONSIBILITIES.—The disaster planning function of the 

Administration shall be assigned to an individual appointed by 

the Administrator who— 

(1) is not an employee of the Office of Disaster Assistance 

of the Administration; 

(2) has proven management ability; 

(3) has substantial knowledge in the field of disaster readiness and emergency response; and 

(4) has demonstrated significant experience in the area 

of disaster planning. 

(b) RESPONSIBILITIES.—The individual assigned the disaster 

planning function of the Administration shall report directly and 

solely to the Administrator and shall be responsible for— 

(1) creating, maintaining, and implementing the comprehensive disaster response plan of the Administration 

described in section 12072; 

(2) ensuring there are in-service and pre-service training 

procedures for the disaster response staff of the Administration; 

(3) coordinating and directing the training exercises of the 

Administration relating to disasters, including disaster simulation exercises and disaster exercises coordinated with other 

government departments and agencies; and 

(4) other responsibilities relevant to disaster planning and 

readiness, as determined by the Administrator. 

(c) COORDINATION.—In carrying out the responsibilities 

described in subsection (b), the individual assigned the disaster 

planning function of the Administration shall coordinate with— 

(1) the Office of Disaster Assistance of the Administration; 

(2) the Administrator of the Federal Emergency Management Agency; and 

(3) other Federal, State, and local disaster planning offices, 

as necessary. 

(d) RESOURCES.—The Administrator shall ensure that the individual assigned the disaster planning function of the Administration 

has adequate resources to carry out the duties under this section. 

(e) REPORT.—Not later than 30 days after the date of enactment 

of this Act, the Administrator shall submit to the Committee on 

Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report 

containing— 

(1) a description of the actions of the Administrator to 

assign an individual the disaster planning function of the 

Administration; 

(2) information detailing the background and expertise of 

the individual assigned; and 

(3) information on the status of the implementation of 

the responsibilities described in subsection (b). 
H. R. 2419—492 

SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER 

ASSISTANCE AND DISASTER CADRE. 

(a) IN GENERAL.—Section 7(b) of the Small Business Act (15 

U.S.C. 636(b)) is amended by inserting immediately after paragraph 

(6), as added by this Act, the following: 

‘‘(7) DISASTER ASSISTANCE EMPLOYEES.— 

‘‘(A) IN GENERAL.—In carrying out this section, the 

Administrator may, where practicable, ensure that the 

number of full-time equivalent employees— 

‘‘(i) in the Office of the Disaster Assistance is not 

fewer than 800; and 

‘‘(ii) in the Disaster Cadre of the Administration 

is not fewer than 1,000. 

‘‘(B) REPORT.—In carrying out this subsection, if the 

number of full-time employees for either the Office of Disaster Assistance or the Disaster Cadre of the Administration is below the level described in subparagraph (A) for 

that office, not later than 21 days after the date on which 

that staffing level decreased below the level described in 

subparagraph (A), the Administrator shall submit to the 

Committee on Appropriations and the Committee on Small 

Business and Entrepreneurship of the Senate and the Committee on Appropriations and Committee on Small Business 

of the House of Representatives, a report— 

‘‘(i) detailing staffing levels on that date; 

‘‘(ii) requesting, if practicable and determined 

appropriate by the Administrator, additional funds for 

additional employees; and 

‘‘(iii) containing such additional information, as 

determined appropriate by the Administrator.’’. 

SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN. 

The Small Business Act (15 U.S.C. 631 et seq.) is amended 

inserting after section 39, as added by this Act, the following: 

‘‘SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN. 

‘‘(a) PLAN REQUIRED.—The Administrator shall develop, implement, or maintain a comprehensive written disaster response plan. 

The plan shall include the following: 

‘‘(1) For each region of the Administration, a description 

of the disasters most likely to occur in that region. 

‘‘(2) For each disaster described under paragraph (1)— 

‘‘(A) an assessment of the disaster; 

‘‘(B) an assessment of the demand for Administration 

assistance most likely to occur in response to the disaster; 

‘‘(C) an assessment of the needs of the Administration, 

with respect to such resources as information technology, 

telecommunications, human resources, and office space, to 

meet the demand referred to in subparagraph (B); and 

‘‘(D) guidelines pursuant to which the Administration 

will coordinate with other Federal agencies and with State 

and local authorities to best respond to the demand referred 

to in subparagraph (B) and to best use the resources 

referred to in that subparagraph. 

‘‘(b) COMPLETION; REVISION.—The first plan required by subsection (a) shall be completed not later than 180 days after the 

date of the enactment of this section. Thereafter, the Administrator 
H. R. 2419—493 

shall update the plan on an annual basis and following any major 

disaster relating to which the Administrator declares eligibility 

for additional disaster assistance under section 7(b)(9). 

‘‘(c) KNOWLEDGE REQUIRED.—The Administrator shall carry out 

subsections (a) and (b) through an individual with substantial 

knowledge in the field of disaster readiness and emergency 

response. 

‘‘(d) REPORT.—The Administrator shall include a report on the 

plan whenever the Administration submits the report required by 

section 43.’’. 

SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 

The Small Business Act is amended by inserting after section 

40, as added by this Act, the following: 

‘‘SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 

‘‘(a) PLANS REQUIRED.—The Administrator shall develop longterm plans to secure sufficient office space to accommodate an 

expanded workforce in times of disaster. 

‘‘(b) REPORT.—The Administrator shall include a report on the 

plans developed under subsection (a) each time the Administration 

submits a report required under section 43.’’. 

SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF 

EMPLOYMENT DUE TO CHANGED ECONOMIC CIRCUMSTANCES. 

Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 

636(b)(3)(E)) is amended by inserting after ‘‘constitutes’’ the following: ‘‘, or have become due to changed economic circumstances,’’. 

SEC. 12078. DISASTER LOAN AMOUNTS. 

(a) INCREASED LOAN CAPS.—Section 7(b) of the Small Business 

Act (15 U.S.C. 636(b)) is amended by inserting immediately after 

paragraph (7), as added by this Act, the following: 

‘‘(8) INCREASED LOAN CAPS.— 

‘‘(A) AGGREGATE LOAN AMOUNTS.—Except as provided 

in subparagraph (B), and notwithstanding any other provision of law, the aggregate loan amount outstanding and 

committed to a borrower under this subsection may not 

exceed $2,000,000. 

‘‘(B) WAIVER AUTHORITY.—The Administrator may, at 

the discretion of the Administrator, increase the aggregate 

loan amount under subparagraph (A) for loans relating 

to a disaster to a level established by the Administrator, 

based on appropriate economic indicators for the region 

in which that disaster occurred.’’. 

(b) DISASTER MITIGATION.— 

(1) IN GENERAL.—Section 7(b)(1)(A) of the Small Business 

Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ‘‘of the 

aggregate costs of such damage or destruction (whether or 

not compensated for by insurance or otherwise)’’ after ‘‘20 per 

centum’’. 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) shall apply with respect to a loan or guarantee made after 

the date of enactment of this Act. 

(c) TECHNICAL AMENDMENTS.—Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended— 
H. R. 2419—494 

(1) in the matter preceding paragraph (1), by striking ‘‘the, 

Administration’’ and inserting ‘‘the Administration’’; and 

(2) in the undesignated matter at the end— 

(A) by striking ‘‘, (2), and (4)’’ and inserting ‘‘and (2)’’; 

and 

(B) by striking ‘‘, (2), or (4)’’ and inserting ‘‘(2)’’. 

SEC. 12079. SMALL BUSINESS BONDING THRESHOLD. 

(a) IN GENERAL.—Except as provided in subsection (b), and 

notwithstanding any other provision of law, for any procurement 

related to a major disaster, the Administrator may, upon such 

terms and conditions as the Administrator may prescribe, guarantee 

and enter into commitments to guarantee any surety against loss 

resulting from a breach of the terms of a bid bond, payment bond, 

performance bond, or bonds ancillary thereto, by a principal on 

any total work order or contract amount at the time of bond execution that does not exceed $5,000,000. 

(b) INCREASE OF AMOUNT.—Upon request of the head of any 

Federal agency other than the Administration involved in 

reconstruction efforts in response to a major disaster, the Administrator may guarantee and enter into a commitment to guarantee 

any security against loss under subsection (a) on any total work 

order or contract amount at the time of bond execution that does 

not exceed $10,000,000. 

(c) LIMITATION ON USE OF OTHER FUNDS.—The Administrator 

may carry out this section only with amounts appropriated in 

advance specifically to carry out this section. 

PART II—DISASTER LENDING 

SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE. 

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 

amended by inserting immediately after paragraph (8), as added 

by this Act, the following: 

‘‘(9) DECLARATION OF ELIGIBILITY FOR ADDITIONAL DISASTER

ASSISTANCE.— ‘‘(A) IN GENERAL.—If the President declares a major 

disaster, the Administrator may declare eligibility for additional disaster assistance in accordance with this paragraph. 

‘‘(B) THRESHOLD.—A major disaster for which the 

Administrator declares eligibility for additional disaster 

assistance under this paragraph shall— 

‘‘(i) have resulted in extraordinary levels of casualties or damage or disruption severely affecting the 

population (including mass evacuations), infrastructure, environment, economy, national morale, or 

government functions in an area; 

‘‘(ii) be comparable to the description of a catastrophic incident in the National Response Plan of 

the Administration, or any successor thereto, unless 

there is no successor to such plan, in which case this 

clause shall have no force or effect; and 

‘‘(iii) be of such size and scope that— 

‘‘(I) the disaster assistance programs under 

the other paragraphs under this subsection are 
H. R. 2419—495 

incapable of providing adequate and timely assistance to individuals or business concerns located 

within the disaster area; or 

‘‘(II) a significant number of business concerns 

outside the disaster area have suffered disasterrelated substantial economic injury as a result of 

the incident.’’. 

SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE. 

Paragraph (9) of section 7(b) of the Small Business Act (15 

U.S.C. 636(b)), as added by section 12081, is amended by adding 

at the end the following: 

‘‘(C) ADDITIONAL ECONOMIC INJURY DISASTER LOAN

ASSISTANCE.— ‘‘(i) IN GENERAL.—If the Administrator declares 

eligibility for additional disaster assistance under this 

paragraph, the Administrator may make such loans 

under this subparagraph (either directly or in cooperation with banks or other lending institutions through 

agreements to participate on an immediate or deferred 

basis) as the Administrator determines appropriate to 

eligible small business concerns located anywhere in 

the United States. 

‘‘(ii) PROCESSING TIME.— ‘‘(I) IN GENERAL.—If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph 

relating to a specific major disaster is more than 

15 days, the Administrator shall give priority to 

the processing of such applications submitted by 

eligible small business concerns located inside the 

disaster area, until the Administrator determines 

that the average processing time for such applications is not more than 15 days. 

‘‘(II) SUSPENSION OF APPLICATIONS FROM OUTSIDE DISASTER AREA.—If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph 

relating to a specific major disaster is more than 

30 days, the Administrator shall suspend the processing of such applications submitted by eligible 

small business concerns located outside the disaster area, until the Administrator determines 

that the average processing time for such applications is not more than 15 days. 

‘‘(iii) LOAN TERMS.—A loan under this subparagraph shall be made on the same terms as a loan 

under paragraph (2). 

‘‘(D) DEFINITIONS.—In this paragraph— 

‘‘(i) the term ‘disaster area’ means the area for 

which the applicable major disaster was declared; 

‘‘(ii) the term ‘disaster-related substantial economic 

injury’ means economic harm to a business concern 

that results in the inability of the business concern 

to— 

‘‘(I) meet its obligations as it matures; 
H. R. 2419—496 

‘‘(II) meet its ordinary and necessary operating 

expenses; or 

‘‘(III) market, produce, or provide a product 

or service ordinarily marketed, produced, or provided by the business concern because the business 

concern relies on materials from the disaster area 

or sells or markets in the disaster area; and 

‘‘(iii) the term ‘eligible small business concern’ 

means a small business concern— 

‘‘(I) that has suffered disaster-related substantial economic injury as a result of the applicable 

major disaster; and 

‘‘(II)(aa) for which not less than 25 percent 

of the market share of that small business concern 

is from business transacted in the disaster area; 

‘‘(bb) for which not less than 25 percent of 

an input into a production process of that small 

business concern is from the disaster area; or 

‘‘(cc) that relies on a provider located in the 

disaster area for a service that is not readily available elsewhere.’’. 

SEC. 12083. PRIVATE DISASTER LOANS. 

(a) IN GENERAL.—Section 7 of the Small Business Act (15 

U.S.C. 636) is amended by inserting after subsection (b) the following: 

‘‘(c) PRIVATE DISASTER LOANS.— ‘‘(1) DEFINITIONS.—In this subsection— 

‘‘(A) the term ‘disaster area’ means any area for which 

the President declared a major disaster relating to which 

the Administrator declares eligibility for additional disaster 

assistance under subsection (b)(9), during the period of 

that major disaster declaration; 

‘‘(B) the term ‘eligible individual’ means an individual 

who is eligible for disaster assistance under subsection 

(b)(1) relating to a major disaster relating to which the 

Administrator declares eligibility for additional disaster 

assistance under subsection (b)(9); 

‘‘(C) the term ‘eligible small business concern’ means 

a business concern that is— 

‘‘(i) a small business concern, as defined under 

this Act; or 

‘‘(ii) a small business concern, as defined in section 

103 of the Small Business Investment Act of 1958; 

‘‘(D) the term ‘preferred lender’ means a lender participating in the Preferred Lender Program; 

‘‘(E) the term ‘Preferred Lender Program’ has the 

meaning given that term in subsection (a)(2)(C)(ii); and 

‘‘(F) the term ‘qualified private lender’ means any privately-owned bank or other lending institution that— 

‘‘(i) is not a preferred lender; and 

‘‘(ii) the Administrator determines meets the criteria established under paragraph (10). 

‘‘(2) PROGRAM REQUIRED.—The Administrator shall carry 

out a program, to be known as the Private Disaster Assistance 

program, under which the Administration may guarantee 

timely payment of principal and interest, as scheduled, on 
H. R. 2419—497 

any loan made to an eligible small business concern located 

in a disaster area and to an eligible individual. 

‘‘(3) USE OF LOANS.—A loan guaranteed by the Administrator under this subsection may be used for any purpose 

authorized under subsection (b). 

‘‘(4) ONLINE APPLICATIONS.— 

‘‘(A) ESTABLISHMENT.—The Administrator may establish, directly or through an agreement with another entity, 

an online application process for loans guaranteed under 

this subsection. 

‘‘(B) OTHER FEDERAL ASSISTANCE.—The Administrator 

may coordinate with the head of any other appropriate 

Federal agency so that any application submitted through 

an online application process established under this paragraph may be considered for any other Federal assistance 

program for disaster relief. 

‘‘(C) CONSULTATION.—In establishing an online application process under this paragraph, the Administrator shall 

consult with appropriate persons from the public and private sectors, including private lenders. 

‘‘(5) MAXIMUM AMOUNTS.— ‘‘(A) GUARANTEE PERCENTAGE.—The Administrator 

may guarantee not more than 85 percent of a loan under 

this subsection. 

‘‘(B) LOAN AMOUNT.—The maximum amount of a loan 

guaranteed under this subsection shall be $2,000,000. 

‘‘(6) TERMS AND CONDITIONS.—A loan guaranteed under 

this subsection shall be made under the same terms and conditions as a loan under subsection (b). 

‘‘(7) LENDERS.— ‘‘(A) IN GENERAL.—A loan guaranteed under this subsection made to— 

‘‘(i) a qualified individual may be made by a preferred lender; and 

‘‘(ii) a qualified small business concern may be 

made by a qualified private lender or by a preferred 

lender that also makes loans to qualified individuals. 

‘‘(B) COMPLIANCE.—If the Administrator determines 

that a preferred lender knowingly failed to comply with 

the underwriting standards for loans guaranteed under 

this subsection or violated the terms of the standard operating procedure agreement between that preferred lender 

and the Administration, the Administrator shall do 1 or 

more of the following: 

‘‘(i) Exclude the preferred lender from participating 

in the program under this subsection. 

‘‘(ii) Exclude the preferred lender from participating in the Preferred Lender Program for a period 

of not more than 5 years. 

‘‘(8) FEES.— 

‘‘(A) IN GENERAL.—The Administrator may not collect 

a guarantee fee under this subsection. 

‘‘(B) ORIGINATION FEE.—The Administrator may pay 

a qualified private lender or preferred lender an origination 

fee for a loan guaranteed under this subsection in an 

amount agreed upon in advance between the qualified private lender or preferred lender and the Administrator. 
H. R. 2419—498 

‘‘(9) DOCUMENTATION.—A qualified private lender or preferred lender may use its own loan documentation for a loan 

guaranteed by the Administrator under this subsection, to the 

extent authorized by the Administrator. The ability of a lender 

to use its own loan documentation for a loan guaranteed under 

this subsection shall not be considered part of the criteria 

for becoming a qualified private lender under the regulations 

promulgated under paragraph (10). 

‘‘(10) IMPLEMENTATION REGULATIONS.— ‘‘(A) IN GENERAL.—Not later than 1 year after the 

date of enactment of the Small Business Disaster Response 

and Loan Improvements Act of 2008, the Administrator 

shall issue final regulations establishing permanent criteria 

for qualified private lenders. 

‘‘(B) REPORT TO CONGRESS.—Not later than 6 months 

after the date of enactment of the Small Business Disaster 

Response and Loan Improvements Act of 2008, the 

Administrator shall submit a report on the progress of 

the regulations required by subparagraph (A) to the Committee on Small Business and Entrepreneurship of the 

Senate and the Committee on Small Business of the House 

of Representatives. 

‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) IN GENERAL.—Amounts necessary to carry out this 

subsection shall be made available from amounts appropriated to the Administration to carry out subsection (b). 

‘‘(B) AUTHORITY TO REDUCE INTEREST RATES AND OTHER

TERMS AND CONDITIONS.—Funds appropriated to the 

Administration to carry out this subsection, may be used 

by the Administrator to meet the loan terms and conditions 

specified in paragraph (6). 

‘‘(12) PURCHASE OF LOANS.—The Administrator may enter 

into an agreement with a qualified private lender or preferred 

lender to purchase any loan guaranteed under this subsection.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to any major disaster declared on or after the date 

of enactment of this Act. 

SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 

The Small Business Act is amended by inserting after section 

41, as added by this Act, the following: 

‘‘SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 

‘‘(a) PROGRAM REQUIRED.—The Administrator shall carry out 

a program, to be known as the Immediate Disaster Assistance 

program, under which the Administration participates on a deferred 

(guaranteed) basis in 85 percent of the balance of the financing 

outstanding at the time of disbursement of the loan if such balance 

is less than or equal to $25,000 for businesses affected by a disaster. 

‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan guaranteed 

under subsection (a), the applicant shall also apply for, and meet 

basic eligibility standards for, a loan under subsection (b) or (c) 

of section 7. 

‘‘(c) USE OF PROCEEDS.—A person who receives a loan under 

subsection (b) or (c) of section 7 shall use the proceeds of that 

loan to repay all loans guaranteed under subsection (a), if any, 

before using the proceeds for any other purpose. 

‘‘(d) LOAN TERMS.— 
H. R. 2419—499 

‘‘(1) NO PREPAYMENT PENALTY.—There shall be no prepayment penalty on a loan guaranteed under subsection (a). 

‘‘(2) REPAYMENT.—A person who receives a loan guaranteed 

under subsection (a) and who is disapproved for a loan under 

subsection (b) or (c) of section 7, as the case may be, shall 

repay the loan guaranteed under subsection (a) not later than 

the date established by the Administrator, which may not be 

earlier than 10 years after the date on which the loan guaranteed under subsection is disbursed. 

‘‘(e) APPROVAL OR DISAPPROVAL.—The Administrator shall 

ensure that each applicant for a loan under the program receives 

a decision approving or disapproving of the application within 36 

hours after the Administration receives the application.’’. 

SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM. 

(a) DEFINITION.—In this section, the term ‘‘program’’ means 

the expedited disaster assistance business loan program established 

under subsection (b). 

(b) CREATION OF PROGRAM.—The Administrator shall take such 

administrative action as is necessary to establish and implement 

an expedited disaster assistance business loan program under which 

the Administration may, on an expedited basis, guarantee timely 

payment of principal and interest, as scheduled on any loan made 

to an eligible small business concern under paragraph (9) of section 

7(b) of the Small Business Act (15 U.S.C. 636(b)), as added by 

this Act. 

(c) CONSULTATION REQUIRED.—In establishing the program, the 

Administrator shall consult with— 

(1) appropriate personnel of the Administration (including 

District Office personnel of the Administration); 

(2) appropriate technical assistance providers (including 

small business development centers); 

(3) appropriate lenders and credit unions; 

(4) the Committee on Small Business and Entrepreneurship 

of the Senate; and 

(5) the Committee on Small Business of the House of Representatives. 

(d) RULES.— 

(1) IN GENERAL.—Not later than 1 year after the date 

of enactment of this Act, the Administrator shall issue rules 

in final form establishing and implementing the program in 

accordance with this section. Such rules shall apply as provided 

for in this section, beginning 90 days after their issuance in 

final form. 

(2) CONTENTS.—The rules promulgated under paragraph 

(1) shall— 

(A) identify whether appropriate uses of funds under 

the program may include— 

(i) paying employees; 

(ii) paying bills and other financial obligations; 

(iii) making repairs; 

(iv) purchasing inventory; 

(v) restarting or operating a small business concern 

in the community in which it was conducting operations prior to the applicable major disaster, or to 

a neighboring area, county, or parish in the disaster 

area; or 
H. R. 2419—500 

(vi) covering additional costs until the small business concern is able to obtain funding through insurance claims, Federal assistance programs, or other 

sources; and 

(B) set the terms and conditions of any loan made 

under the program, subject to paragraph (3). 

(3) TERMS AND CONDITIONS.—A loan guaranteed by the 

Administration under this section— 

(A) shall be for not more than $150,000; 

(B) shall be a short-term loan, not to exceed 180 days, 

except that the Administrator may extend such term as 

the Administrator determines necessary or appropriate on 

a case-by-case basis; 

(C) shall have an interest rate not to exceed 300 basis 

points above the interest rate established by the Board 

of Governors of the Federal Reserve System that 1 bank 

charges another for reserves that are lent on an overnight 

basis on the date the loan is made; 

(D) shall have no prepayment penalty; 

(E) may only be made to a borrower that meets the 

requirements for a loan under section 7(b) of the Small 

Business Act (15 U.S.C. 636(b)), as amended by this Act; 

(F) may be refinanced as part of any subsequent disaster assistance provided under section 7(b) of the Small 

Business Act (15 U.S.C. 636(b)), as amended by this Act; 

(G) may receive expedited loss verification and loan 

processing, if the applicant is— 

(i) a major source of employment in the disaster 

area (which shall be determined in the same manner 

as under section 7(b)(3)(B) of the Small Business Act 

(15 U.S.C. 636(b)(3)(B))); or 

(ii) vital to recovery efforts in the region (including 

providing debris removal services, manufactured 

housing, or building materials); and 

(H) shall be subject to such additional terms as the 

Administrator determines necessary or appropriate. 

(e) REPORT TO CONGRESS.—Not later than 5 months after the 

date of enactment of this Act, the Administrator shall report to 

the Committee on Small Business and Entrepreneurship of the 

Senate and the Committee on Small Business of the House of 

Representatives on the progress of the Administrator in establishing 

the program. 

(f) AUTHORIZATION.—There are authorized to be appropriated 

to the Administrator such sums as are necessary to carry out 

this section. 

SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM. 

(a) IN GENERAL.—The Administrator may carry out a program 

to refinance Gulf Coast disaster loans (in this section referred 

to as the ‘‘program’’). 

(b) TERMS.—The terms of a Gulf Coast disaster loan refinanced 

under the program shall be identical to the terms of the original 

loan, except that the Administrator may provide an option to defer 

repayment on the loan. A deferment under the program shall end 

not later than 4 years after the date on which the initial disbursement under the original loan was made. 
H. R. 2419—501 

(c) AMOUNT.—The amount of a Gulf Coast disaster loan 

refinanced under the program shall not exceed the amount of the 

original loan. 

(d) DISCLOSURE OF ACCRUED INTEREST.—If the Administrator 

provides an option to defer repayment under the program, the 

Administrator shall disclose the accrued interest that must be paid 

under the option. 

(e) DEFINITION.—In this section, the term ‘‘Gulf Coast disaster 

loan’’ means a loan— 

(1) made under section 7(b) of the Small Business Act 

(15 U.S.C. 636(b)); 

(2) in response to Hurricane Katrina of 2005, Hurricane 

Rita of 2005, or Hurricane Wilma of 2005; and 

(3) to a small business concern located in a county or 

parish designated by the Administrator as a disaster area by 

reason of a hurricane described in paragraph (2) under disaster 

declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203, 

10204, 10205, 10206, 10222, or 10223. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as may be necessary to carry out 

this section. 

PART III—MISCELLANEOUS 

SEC. 12091. REPORTS ON DISASTER ASSISTANCE. 

(a) MONTHLY ACCOUNTING REPORT TO CONGRESS.— (1) REPORTING REQUIREMENTS.—Not later than the fifth 

business day of each month during the applicable period for 

a major disaster, the Administrator shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate and to the Committee 

on Small Business and the Committee on Appropriations of 

the House of Representatives a report on the operation of 

the disaster loan program authorized under section 7 of the 

Small Business Act (15 U.S.C. 636) for that major disaster 

during the preceding month. 

(2) CONTENTS.—Each report submitted under paragraph 

(1) shall include— 

(A) the daily average lending volume, in number of 

loans and dollars, and the percent by which each category 

has increased or decreased since the previous report under 

paragraph (1); 

(B) the weekly average lending volume, in number 

of loans and dollars, and the percent by which each category 

has increased or decreased since the previous report under 

paragraph (1); 

(C) the amount of funding spent over the month for 

loans, both in appropriations and program level, and the 

percent by which each category has increased or decreased 

since the previous report under paragraph (1); 

(D) the amount of funding available for loans, both 

in appropriations and program level, and the percent by 

which each category has increased or decreased since the 

previous report under paragraph (1), noting the source 

of any additional funding; 

(E) an estimate of how long the available funding 

for such loans will last, based on the spending rate; 
H. R. 2419—502 

(F) the amount of funding spent over the month for 

staff, along with the number of staff, and the percent 

by which each category has increased or decreased since 

the previous report under paragraph (1); 

(G) the amount of funding spent over the month for 

administrative costs, and the percent by which such 

spending has increased or decreased since the previous 

report under paragraph (1); 

(H) the amount of funding available for salaries and 

expenses combined, and the percent by which such funding 

has increased or decreased since the previous report under 

paragraph (1), noting the source of any additional funding; 

and 

(I) an estimate of how long the available funding for 

salaries and expenses will last, based on the spending 

rate. 

(b) WEEKLY DISASTER UPDATES TO CONGRESS FOR PRESI- DENTIALLY DECLARED DISASTERS.— (1) IN GENERAL.—Each week during a disaster update 

period, the Administration shall submit to the Committee on 

Small Business and Entrepreneurship of the Senate and to 

the Committee on Small Business of the House of Representatives a report on the operation of the disaster loan program 

of the Administration for the area in which the President 

declared a major disaster. 

(2) CONTENTS.—Each report submitted under paragraph 

(1) shall include— 

(A) the number of Administration staff performing loan 

processing, field inspection, and other duties for the 

declared disaster, and the allocations of such staff in the 

disaster field offices, disaster recovery centers, workshops, 

and other Administration offices nationwide; 

(B) the daily number of applications received from 

applicants in the relevant area, as well as a breakdown 

of such figures by State; 

(C) the daily number of applications pending application entry from applicants in the relevant area, as well 

as a breakdown of such figures by State; 

(D) the daily number of applications withdrawn by 

applicants in the relevant area, as well as a breakdown 

of such figures by State; 

(E) the daily number of applications summarily 

declined by the Administration from applicants in the relevant area, as well as a breakdown of such figures by 

State; 

(F) the daily number of applications declined by the 

Administration from applicants in the relevant area, as 

well as a breakdown of such figures by State; 

(G) the daily number of applications in process from 

applicants in the relevant area, as well as a breakdown 

of such figures by State; 

(H) the daily number of applications approved by the 

Administration from applicants in the relevant area, as 

well as a breakdown of such figures by State; 

(I) the daily dollar amount of applications approved 

by the Administration from applicants in the relevant area, 

as well as a breakdown of such figures by State; 
H. R. 2419—503 

(J) the daily amount of loans dispersed, both partially 

and fully, by the Administration to applicants in the relevant area, as well as a breakdown of such figures by 

State; 

(K) the daily dollar amount of loans disbursed, both 

partially and fully, from the relevant area, as well as 

a breakdown of such figures by State; 

(L) the number of applications approved, including 

dollar amount approved, as well as applications partially 

and fully disbursed, including dollar amounts, since the 

last report under paragraph (1); and 

(M) the declaration date, physical damage closing date, 

economic injury closing date, and number of counties 

included in the declaration of a major disaster. 

(c) PERIODS WHEN ADDITIONAL DISASTER ASSISTANCE IS MADE

AVAILABLE.— (1) IN GENERAL.—During any period for which the Administrator declares eligibility for additional disaster assistance 

under paragraph (9) of section 7(b) of the Small Business Act 

(15 U.S.C. 632(b)), as amended by this Act, the Administrator 

shall, on a monthly basis, submit to the Committee on Small 

Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives a 

report on the disaster assistance operations of the Administration with respect to the applicable major disaster. 

(2) CONTENTS.—Each report submitted under paragraph 

(1) shall specify— 

(A) the number of applications for disaster assistance 

distributed; 

(B) the number of applications for disaster assistance 

received; 

(C) the average time for the Administration to approve 

or disapprove an application for disaster assistance; 

(D) the amount of disaster loans approved; 

(E) the average time for initial disbursement of disaster 

loan proceeds; and 

(F) the amount of disaster loan proceeds disbursed. 

(d) NOTICE OF THE NEED FOR SUPPLEMENTAL FUNDS.—On the 

same date that the Administrator notifies any committee of the 

Senate or the House of Representatives that supplemental funding 

is necessary for the disaster loan program of the Administration 

in any fiscal year, the Administrator shall notify in writing the 

Committee on Small Business and Entrepreneurship of the Senate 

and the Committee on Small Business of the House of Representatives regarding the need for supplemental funds for that loan program. 

(e) REPORT ON CONTRACTING.— 

(1) IN GENERAL.—Not later than 6 months after the date 

on which the President declares a major disaster, and every 

6 months thereafter until the date that is 18 months after 

the date on which the major disaster was declared, the Administrator shall submit a report to the Committee on Small Business 

and Entrepreneurship of the Senate and to the Committee 

on Small Business of the House of Representatives regarding 

Federal contracts awarded as a result of that major disaster. 

(2) CONTENTS.—Each report submitted under paragraph 

(1) shall include— 
H. R. 2419—504 

(A) the total number of contracts awarded as a result 

of that major disaster; 

(B) the total number of contracts awarded to small 

business concerns as a result of that major disaster; 

(C) the total number of contracts awarded to women 

and minority-owned businesses as a result of that major 

disaster; and 

(D) the total number of contracts awarded to local 

businesses as a result of that major disaster. 

(f) REPORT ON LOAN APPROVAL RATE.— 

(1) IN GENERAL.—Not later than 6 months after the date 

of enactment of this Act, the Administrator shall submit a 

report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of 

the House of Representatives detailing how the Administration 

can improve the processing of applications under the disaster 

loan program of the Administration. 

(2) CONTENTS.—The report submitted under paragraph (1) 

shall include— 

(A) recommendations, if any, regarding— 

(i) staffing levels during a major disaster; 

(ii) how to improve the process for processing, 

approving, and disbursing loans under the disaster 

loan program of the Administration, to ensure that 

the maximum assistance is provided to victims in a 

timely manner; 

(iii) the viability of using alternative methods for 

assessing the ability of an applicant to repay a loan, 

including the credit score of the applicant on the day 

before the date on which the disaster for which the 

applicant is seeking assistance was declared; 

(iv) methods, if any, for the Administration to expedite loss verification and loan processing of disaster 

loans during a major disaster for businesses affected 

by, and located in the area for which the President 

declared, the major disaster that are a major source 

of employment in the area or are vital to recovery 

efforts in the region (including providing debris 

removal services, manufactured housing, or building 

materials); 

(v) legislative changes, if any, needed to implement 

findings from the Accelerated Disaster Response Initiative of the Administration; and 

(vi) a description of how the Administration plans 

to integrate and coordinate the response to a major 

disaster with the technical assistance programs of the 

Administration; and 

(B) the plans of the Administrator for implementing 

any recommendation made under subparagraph (A). 

(g) REPORTS ON DISASTER ASSISTANCE.—The Small Business 

Act is amended by inserting after section 42, as added by this 

Act, the following: 

‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE. 

‘‘Not later than 45 days after the end of a fiscal year, the 

Administrator shall submit to the Committee on Small Business 

and Entrepreneurship of the Senate and the Committee on Small 
H. R. 2419—505 

Business of the House of Representatives a report on the disaster 

assistance operations of the Administration for that fiscal year. 

The report shall— 

‘‘(1) specify the number of Administration personnel 

involved in such operations; 

‘‘(2) describe any material changes to those operations, 

such as changes to technologies used or to personnel responsibilities; 

‘‘(3) describe and assess the effectiveness of the Administration in responding to disasters during that fiscal year, including 

a description of the number and amounts of loans made for 

damage and for economic injury; and 

‘‘(4) describe the plans of the Administration for preparing 

to respond to disasters during the next fiscal year.’’. 

TITLE XIII—COMMODITY FUTURES 

SEC. 13001. SHORT TITLE. 

This title may be cited as the ‘‘CFTC Reauthorization Act 

of 2008’’. 

Subtitle A—General Provisions 

SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS 

OR TRANSACTIONS IN FOREIGN CURRENCY. 

(a) IN GENERAL.—Section 2(c)(2) of the Commodity Exchange 

Act (7 U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) 

and (C) and inserting the following: 

‘‘(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN

RETAIL FOREIGN CURRENCY.— ‘‘(i) This Act applies to, and the Commission shall 

have jurisdiction over, an agreement, contract, or 

transaction in foreign currency that— 

‘‘(I) is a contract of sale of a commodity for 

future delivery (or an option on such a contract) 

or an option (other than an option executed or 

traded on a national securities exchange registered 

pursuant to section 6(a) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78f(a))); and 

‘‘(II) is offered to, or entered into with, a person 

that is not an eligible contract participant, unless 

the counterparty, or the person offering to be the 

counterparty, of the person is— 

‘‘(aa) a financial institution; 

‘‘(bb)(AA) a broker or dealer registered 

under section 15(b) (except paragraph (11) 

thereof) or 15C of the Securities Exchange 

Act of 1934 (15 U.S.C. 78o(b), 78o–5); or 

‘‘(BB) an associated person of a broker 

or dealer registered under section 15(b) (except 

paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b), 

78o–5) concerning the financial or securities 

activities of which the broker or dealer makes 

and keeps records under section 15C(b) or 
H. R. 2419—506 

17(h) of the Securities Exchange Act of 1934 

(15 U.S.C. 78o–5(b), 78q(h)); 

‘‘(cc)(AA) a futures commission merchant 

that is primarily or substantially engaged in 

the business activities described in section 

1a(20) of this Act, is registered under this 

Act, is not a person described in item (bb) 

of this subclause, and maintains adjusted net 

capital equal to or in excess of the dollar 

amount that applies for purposes of clause 

(ii) of this subparagraph; or 

‘‘(BB) an affiliated person of a futures 

commission merchant that is primarily or 

substantially engaged in the business activities described in section 1a(20) of this Act, 

is registered under this Act, and is not a person described in item (bb) of this subclause, 

if the affiliated person maintains adjusted net 

capital equal to or in excess of the dollar 

amount that applies for purposes of clause 

(ii) of this subparagraph and is not a person 

described in such item (bb), and the futures 

commission merchant makes and keeps 

records under section 4f(c)(2)(B) of this Act 

concerning the futures and other financial 

activities of the affiliated person; 

‘‘(dd) an insurance company described in 

section 1a(12)(A)(ii) of this Act, or a regulated 

subsidiary or affiliate of such an insurance 

company; 

‘‘(ee) a financial holding company (as 

defined in section 2 of the Bank Holding Company Act of 1956); 

‘‘(ff) an investment bank holding company 

(as defined in section 17(i) of the Securities 

Exchange Act of 1934 (15 U.S.C. 78q(i))); or 

‘‘(gg) a retail foreign exchange dealer that 

maintains adjusted net capital equal to or in 

excess of the dollar amount that applies for 

purposes of clause (ii) of this subparagraph 

and is registered in such capacity with the 

Commission, subject to such terms and conditions as the Commission shall prescribe, and 

is a member of a futures association registered 

under section 17. 

‘‘(ii) The dollar amount that applies for purposes 

of this clause is— 

‘‘(I) $10,000,000, beginning 120 days after the 

date of the enactment of this clause; 

‘‘(II) $15,000,000, beginning 240 days after 

such date of enactment; and 

‘‘(III) $20,000,000, beginning 360 days after 

such date of enactment. 

‘‘(iii) Notwithstanding items (cc) and (gg) of clause 

(i)(II) of this subparagraph, agreements, contracts, or 

transactions described in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this 
H. R. 2419—507 

section and sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d) 

(except to the extent that sections 6(c) and 6(d) prohibit 

manipulation of the market price of any commodity 

in interstate commerce, or for future delivery on or 

subject to the rules of any market), 6c, 6d, 8(a), 13(a), 

and 13(b) if the agreements, contracts, or transactions 

are offered, or entered into, by a person that is registered as a futures commission merchant or retail 

foreign exchange dealer, or an affiliated person of a 

futures commission merchant registered under this Act 

that is not also a person described in any of item 

(aa), (bb), (dd), (ee), or (ff) of clause (i)(II) of this 

subparagraph. 

‘‘(iv)(I) Notwithstanding items (cc) and (gg) of 

clause (i)(II), a person, unless registered in such 

capacity as the Commission by rule, regulation, or 

order shall determine and a member of a futures 

association registered under section 17, shall not— 

‘‘(aa) solicit or accept orders from any person 

that is not an eligible contract participant in 

connection with agreements, contracts, or transactions described in clause (i) entered into with 

or to be entered into with a person who is not 

described in item (aa), (bb), (dd), (ee), or (ff) of 

clause (i)(II); 

‘‘(bb) exercise discretionary trading authority 

or obtain written authorization to exercise discretionary trading authority over any account for or 

on behalf of any person that is not an eligible 

contract participant in connection with agreements, contracts, or transactions described in 

clause (i) entered into with or to be entered into 

with a person who is not described in item (aa), 

(bb), (dd), (ee), or (ff) of clause (i)(II); or 

‘‘(cc) operate or solicit funds, securities, or 

property for any pooled investment vehicle that 

is not an eligible contract participant in connection 

with agreements, contracts, or transactions 

described in clause (i) entered into with or to be 

entered into with a person who is not described 

in item (aa), (bb), (dd), (ee), or (ff) of clause (i)(II). 

‘‘(II) Subclause (I) of this clause shall not apply 

to— 

‘‘(aa) any person described in any of item (aa), 

(bb), (dd), (ee), or (ff) of clause (i)(II); 

‘‘(bb) any such person’s associated persons; or 

‘‘(cc) any person who would be exempt from 

registration if engaging in the same activities in 

connection with transactions conducted on or subject to the rules of a contract market or a derivatives transaction execution facility. 

‘‘(III) Notwithstanding items (cc) and (gg) of clause 

(i)(II), the Commission may make, promulgate, and 

enforce such rules and regulations as, in the judgment 

of the Commission, are reasonably necessary to effectuate any of the provisions of, or to accomplish any 
H. R. 2419—508 

of the purposes of, this Act in connection with the 

activities of persons subject to subclause (I). 

‘‘(IV) Subclause (III) of this clause shall not apply 

to— 

‘‘(aa) any person described in any of item (aa) 

through (ff) of clause (i)(II); 

‘‘(bb) any such person’s associated persons; or 

‘‘(cc) any person who would be exempt from 

registration if engaging in the same activities in 

connection with transactions conducted on or subject to the rules of a contract market or a derivatives transaction execution facility. 

‘‘(v) Notwithstanding items (cc) and (gg) of clause 

(i)(II), the Commission may make, promulgate, and 

enforce such rules and regulations as, in the judgment 

of the Commission, are reasonably necessary to effectuate any of the provisions of, or to accomplish any 

of the purposes of, this Act in connection with agreements, contracts, or transactions described in clause 

(i) which are offered, or entered into, by a person 

described in item (cc) or (gg) of clause (i)(II). 

‘‘(C)(i)(I) This subparagraph shall apply to any agreement, contract, or transaction in foreign currency that is— 

‘‘(aa) offered to, or entered into with, a person 

that is not an eligible contract participant (except 

that this subparagraph shall not apply if the 

counterparty, or the person offering to be the 

counterparty, of the person that is not an eligible 

contract participant is a person described in any 

of item (aa), (bb), (dd), (ee), or (ff) of subparagraph 

(B)(i)(II)); and 

‘‘(bb) offered, or entered into, on a leveraged 

or margined basis, or financed by the offeror, the 

counterparty, or a person acting in concert with 

the offeror or counterparty on a similar basis. 

‘‘(II) Subclause (I) of this clause shall not apply to— 

‘‘(aa) a security that is not a security futures 

product; or 

‘‘(bb) a contract of sale that— 

‘‘(AA) results in actual delivery within 2 days; 

or 

‘‘(BB) creates an enforceable obligation to 

deliver between a seller and buyer that have the 

ability to deliver and accept delivery, respectively, 

in connection with their line of business. 

‘‘(ii)(I) Agreements, contracts, or transactions described 

in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this section and sections 4(b), 4b, 4c(b), 

4o, 6(c) and 6(d) (except to the extent that sections 6(c) 

and 6(d) prohibit manipulation of the market price of any 

commodity in interstate commerce, or for future delivery 

on or subject to the rules of any market), 6c, 6d, 8(a), 

13(a), and 13(b). 

‘‘(II) Subclause (I) of this clause shall not apply to— 

‘‘(aa) any person described in any of item (aa), 

(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or 

‘‘(bb) any such person’s associated persons. 
H. R. 2419—509 

‘‘(III) The Commission may make, promulgate, and 

enforce such rules and regulations as, in the judgment 

of the Commission, are reasonably necessary to effectuate 

any of the provisions of or to accomplish any of the purposes 

of this Act in connection with agreements, contracts, or 

transactions described in clause (i) of this subparagraph 

if the agreements, contracts, or transactions are offered, 

or entered into, by a person that is not described in item 

(aa) through (ff) of subparagraph (B)(i)(II). 

‘‘(iii)(I) A person, unless registered in such capacity 

as the Commission by rule, regulation, or order shall determine and a member of a futures association registered 

under section 17, shall not— 

‘‘(aa) solicit or accept orders from any person that 

is not an eligible contract participant in connection 

with agreements, contracts, or transactions described 

in clause (i) of this subparagraph entered into with 

or to be entered into with a person who is not described 

in item (aa), (bb), (dd), (ee), or (ff) of subparagraph 

(B)(i)(II); 

‘‘(bb) exercise discretionary trading authority or 

obtain written authorization to exercise written trading 

authority over any account for or on behalf of any 

person that is not an eligible contract participant in 

connection with agreements, contracts, or transactions 

described in clause (i) of this subparagraph entered 

into with or to be entered into with a person who 

is not described in item (aa), (bb), (dd), (ee), or (ff) 

of subparagraph (B)(i)(II); or 

‘‘(cc) operate or solicit funds, securities, or property 

for any pooled investment vehicle that is not an eligible 

contract participant in connection with agreements, 

contracts, or transactions described in clause (i) of 

this subparagraph entered into with or to be entered 

into with a person who is not described in item (aa), 

(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II). 

‘‘(II) Subclause (I) of this clause shall not apply to— 

‘‘(aa) any person described in item (aa), (bb), (dd), 

(ee), or (ff) of subparagraph (B)(i)(II); 

‘‘(bb) any such person’s associated persons; or 

‘‘(cc) any person who would be exempt from registration if engaging in the same activities in connection with transactions conducted on or subject to the 

rules of a contract market or a derivatives transaction 

execution facility. 

‘‘(III) The Commission may make, promulgate, and 

enforce such rules and regulations as, in the judgment 

of the Commission, are reasonably necessary to effectuate 

any of the provisions of, or to accomplish any of the purposes of, this Act in connection with the activities of persons 

subject to subclause (I). 

‘‘(IV) Subclause (III) of this clause shall not apply 

to— 

‘‘(aa) any person described in item (aa) through 

(ff) of subparagraph (B)(i)(II); 

‘‘(bb) any such person’s associated persons; or 
H. R. 2419—510 

‘‘(cc) any person who would be exempt from registration if engaging in the same activities in connection with transactions conducted on or subject to the 

rules of a contract market or a derivatives transaction 

execution facility. 

‘‘(iv) Sections 4(b) and 4b shall apply to any agreement, 

contract, or transaction described in clause (i) of this 

subparagraph as if the agreement, contract, or transaction 

were a contract of sale of a commodity for future delivery. 

‘‘(v) This subparagraph shall not be construed to limit 

any jurisdiction that the Commission may otherwise have 

under any other provision of this Act over an agreement, 

contract, or transaction that is a contract of sale of a 

commodity for future delivery. 

‘‘(vi) This subparagraph shall not be construed to limit 

any jurisdiction that the Commission or the Securities and 

Exchange Commission may otherwise have under any other 

provision of this Act with respect to security futures products and persons effecting transactions in security futures 

products.’’. 

(b) EFFECTIVE DATE.—The following provisions of the Commodity Exchange Act, as amended by subsection (a) of this section, 

shall be effective 120 days after the date of the enactment of 

this Act or at such other time as the Commodity Futures Trading 

Commission shall determine: 

(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of section 2(c)(2). 

(2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that set 

forth adjusted net capital requirements, and the provisions 

of such section that require a futures commission merchant 

to be primarily or substantially engaged in certain business 

activities. 

SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL 

TRANSACTIONS. 

Section 4b of the Commodity Exchange Act (7 U.S.C. Section 

6b) is amended— 

(1) by redesignating subsections (b) and (c) as subsections 

(c) and (d), respectively; and 

(2) by striking all through the end of subsection (a) and 

inserting the following: 

‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD. 

‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful— 

‘‘(1) for any person, in or in connection with any order 

to make, or the making of, any contract of sale of any commodity 

in interstate commerce or for future delivery that is made, 

or to be made, on or subject to the rules of a designated 

contract market, for or on behalf of any other person; or 

‘‘(2) for any person, in or in connection with any order 

to make, or the making of, any contract of sale of any commodity 

for future delivery, or other agreement, contract, or transaction 

subject to paragraphs (1) and (2) of section 5a(g), that is made, 

or to be made, for or on behalf of, or with, any other person, 

other than on or subject to the rules of a designated contract 

market— 

‘‘(A) to cheat or defraud or attempt to cheat or defraud 

the other person; 
H. R. 2419—511 

‘‘(B) willfully to make or cause to be made to the 

other person any false report or statement or willfully 

to enter or cause to be entered for the other person any 

false record; 

‘‘(C) willfully to deceive or attempt to deceive the other 

person by any means whatsoever in regard to any order 

or contract or the disposition or execution of any order 

or contract, or in regard to any act of agency performed, 

with respect to any order or contract for or, in the case 

of paragraph (2), with the other person; or 

‘‘(D)(i) to bucket an order if the order is either represented by the person as an order to be executed, or 

is required to be executed, on or subject to the rules of 

a designated contract market; or 

‘‘(ii) to fill an order by offset against the order or 

orders of any other person, or willfully and knowingly 

and without the prior consent of the other person to become 

the buyer in respect to any selling order of the other 

person, or become the seller in respect to any buying order 

of the other person, if the order is either represented by 

the person as an order to be executed, or is required to 

be executed, on or subject to the rules of a designated 

contract market unless the order is executed in accordance 

with the rules of the designated contract market. 

‘‘(b) CLARIFICATION.—Subsection (a)(2) of this section shall not 

obligate any person, in or in connection with a transaction in 

a contract of sale of a commodity for future delivery, or other 

agreement, contract or transaction subject to paragraphs (1) and 

(2) of section 5a(g), with another person, to disclose to the other 

person nonpublic information that may be material to the market 

price, rate, or level of the commodity or transaction, except as 

necessary to make any statement made to the other person in 

or in connection with the transaction not misleading in any material 

respect.’’. 

SEC. 13103. CRIMINAL AND CIVIL PENALTIES. 

(a) ENFORCEMENT POWERS OF THE COMMISSION.—Section 6(c) 

of the Commodity Exchange Act (7 U.S.C. 9, 15) is amended in 

clause (3) of the 10th sentence— 

(1) by inserting ‘‘(A)’’ after ‘‘assess such person’’; and 

(2) by inserting after ‘‘each such violation’’ the following: 

‘‘, or (B) in any case of manipulation or attempted manipulation 

in violation of this subsection, subsection (d) of this section, 

or section 9(a)(2), a civil penalty of not more than the greater 

of $1,000,000 or triple the monetary gain to the person for 

each such violation,’’. 

(b) NONENFORCEMENT OF RULES OF GOVERNMENT OR OTHER

VIOLATIONS.—Section 6b of such Act (7 U.S.C. 13a) is amended— 

(1) in the first sentence, by inserting before the period 

at the end the following: ‘‘, or, in any case of manipulation 

or attempted manipulation in violation of section 6(c), 6(d), 

or 9(a)(2), a civil penalty of not more than $1,000,000 for 

each such violation’’; and 

(2) in the second sentence, by inserting before the period 

at the end the following: ‘‘, except that if the failure or refusal 

to obey or comply with the order involved any offense under 

section 9(a)(2), the registered entity, director, officer, agent, 
H. R. 2419—512 

or employee shall be guilty of a felony and, on conviction, 

shall be subject to penalties under section 9(a)(2)’’. 

(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.—Section 6c(d) 

of such Act (7 U.S.C. 13a–1(d)) is amended by striking all that 

precedes paragraph (2) and inserting the following: 

‘‘(d) CIVIL PENALTIES.— ‘‘(1) IN GENERAL.—In any action brought under this section, 

the Commission may seek and the court shall have jurisdiction 

to impose, on a proper showing, on any person found in the 

action to have committed any violation— 

‘‘(A) a civil penalty in the amount of not more than the greater of $100,000 or triple the monetary gain to 

the person for each violation; or 

‘‘(B) in any case of manipulation or attempted manipulation in violation of section 6(c), 6(d), or 9(a)(2), a civil 

penalty in the amount of not more than the greater of 

$1,000,000 or triple the monetary gain to the person for 

each violation.’’. 

(d) VIOLATIONS GENERALLY.—Section 9(a) of such Act (7 U.S.C. 

13(a)) is amended in the matter preceding paragraph (1)— (1) by striking ‘‘(or $500,000 in the case of a person who 

is an individual)’’; and 

(2) by striking ‘‘five years’’ and inserting ‘‘10 years’’. 

SEC. 13104. AUTHORIZATION OF APPROPRIATIONS. 

Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) 

is amended to read as follows: 

‘‘(d) There are authorized to be appropriated such sums as 

are necessary to carry out this Act for each of the fiscal years 

2008 through 2013.’’. 

SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS. 

(a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 

6a(e)) is amended— 

(1) by inserting ‘‘or certified by a registered entity pursuant 

to section 5c(c)(1)’’ after ‘‘approved by the Commission’’ ; and 

(2) by striking ‘‘section 9(c)’’ and inserting ‘‘section 9(a)(5)’’. 

(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 6f(c)(4)(B)(i)) 

is amended by striking ‘‘compiled’’ and inserting ‘‘complied’’. 

(c) Section 4k of such Act (7 U.S.C. 6k) is amended by redesignating the second paragraph (5) as paragraph (6). 

(d) The Commodity Exchange Act is amended— 

(1) by redesignating the first section 4p (7 U.S.C. 6o– 

1), as added by section 121 of the Commodity Futures Modernization Act of 2000, as section 4q; and 

(2) by moving such section to after the second section 

4p, as added by section 206 of Public Law 93–446. 

(e) Subsections (a)(1) and (d)(1) of section 5c of such Act (7 

U.S.C. 7a–2(a)(1), (d)(1)) are each amended by striking ‘‘5b(d)(2)’’ 

and inserting ‘‘5b(c)(2)’’. 

(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a–2(f), 21(r)) 

are each amended by striking ‘‘4d(3)’’ and inserting ‘‘4d(c)’’. 

(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is amended 

in the matter following subparagraph (B)— 

(1) by striking ‘‘commenced’’ in the 2nd place it appears; 

and 

(2) by inserting ‘‘commenced’’ after ‘‘in a judicial proceeding’’. 
H. R. 2419—513 

(h) Section 9 of such Act (7 U.S.C. 13) is amended— 

(1) in subsection (f)(1), by striking the period and inserting 

‘‘; or’’; and 

(2) by redesignating subsection (f) as subsection (e). 

(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is amended 

by striking ‘‘5b(b)(1)(E)’’ and inserting ‘‘5b(c)(2)(H)’’. 

(j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is amended 

by striking ‘‘transactions’’ and all that follows and inserting ‘‘transactions— 

‘‘(i) by accepting bids or offers made by other 

participants that are open to multiple partipants in 

the facility or system; or 

‘‘(ii) through the interaction of multiple bids or 

multiple offers within a system with a pre-determined 

non-discretionary automated trade matching and 

execution algorithm.’’. 

(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended— 

(1) by inserting ‘‘(1)’’ before ‘‘If’’; and 

(2) by adding after and below the end the following: 

‘‘(2) A reparation award shall be directly enforceable in 

district court as if it were a judgment pursuant to section 

1963 of title 28, United States Code. This paragraph shall 

operate retroactively from the effective date of its enactment, 

and shall apply to all reparation awards for which a proceeding 

described in paragraph (1) is commenced within 3 years of 

the date of the Commission’s order.’’. 

SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES. 

(a) The Secretary of the Treasury, the Chairman of the Board 

of Governors of the Federal Reserve System, the Chairman of 

the Securities and Exchange Commission, and the Chairman of 

the Commodity Futures Trading Commission shall work to ensure 

that the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or both, as appropriate, have taken the actions required under subsection (b). 

(b) The SEC, the CFTC, or both, as appropriate, shall take 

action under their existing authorities to permit— 

(1) by September 30, 2009, risk-based portfolio margining 

for security options and security futures products (as defined 

in section 1a(32) of the Commodity Exchange Act); and 

(2) by June 30, 2009, the trading of futures on certain 

security indexes by resolving issues related to foreign security 

indexes. 

Subtitle B—Significant Price Discovery 

Contracts on Exempt Commercial Markets 

SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS. 

(a) DEFINITIONS.—Section la of the Commodity Exchange Act 

(7 U.S.C. la) is amended— 

(1) by redesignating paragraph (33) as paragraph (34); 

and 

(2) by inserting after paragraph (32) the following: 

‘‘(33) SIGNIFICANT PRICE DISCOVERY CONTRACT.—The term 

‘significant price discovery contract’ means an agreement, contract, or transaction subject to section 2(h)(7).’’. 
H. R. 2419—514 

(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE DISCOVERY

CONTRACTS.—Section 2(h) of such Act (7 U.S.C. 2(h)) is amended 

by adding at the end the following: 

‘‘(7) SIGNIFICANT PRICE DISCOVERY CONTRACTS.— 

‘‘(A) IN GENERAL.—An agreement, contract, or transaction conducted in reliance on the exemption in paragraph 

(3) shall be subject to the provisions of subparagraphs 

(B) through (D), under such rules and regulations as the 

Commission shall promulgate, provided that the Commission determines, in its discretion, that the agreement, contract, or transaction performs a significant price discovery 

function as described in subparagraph (B). 

‘‘(B) SIGNIFICANT PRICE DISCOVERY DETERMINATION.— 

In making a determination whether an agreement, contract, or transaction performs a significant price discovery 

function, the Commission shall consider, as appropriate: 

‘‘(i) PRICE LINKAGE.—The extent to which the 

agreement, contract, or transaction uses or otherwise 

relies on a daily or final settlement price, or other 

major price parameter, of a contract or contracts listed 

for trading on or subject to the rules of a designated 

contract market or a derivatives transaction execution 

facility, or a significant price discovery contract traded 

on an electronic trading facility, to value a position, 

transfer or convert a position, cash or financially settle 

a position, or close out a position. 

‘‘(ii) ARBITRAGE.—The extent to which the price 

for the agreement, contract, or transaction is sufficiently related to the price of a contract or contracts 

listed for trading on or subject to the rules of a designated contract market or derivatives transaction 

execution facility, or a significant price discovery contract or contracts trading on or subject to the rules 

of an electronic trading facility, so as to permit market 

participants to effectively arbitrage between the markets by simultaneously maintaining positions or executing trades in the contracts on a frequent and recurring basis. 

‘‘(iii) MATERIAL PRICE REFERENCE.—The extent to 

which, on a frequent and recurring basis, bids, offers, 

or transactions in a commodity are directly based on, 

or are determined by referencing, the prices generated 

by agreements, contracts, or transactions being traded 

or executed on the electronic trading facility. 

‘‘(iv) MATERIAL LIQUIDITY.—The extent to which 

the volume of agreements, contracts, or transactions 

in the commodity being traded on the electronic trading 

facility is sufficient to have a material effect on other 

agreements, contracts, or transactions listed for trading 

on or subject to the rules of a designated contract 

market, a derivatives transaction execution facility, 

or an electronic trading facility operating in reliance 

on the exemption in paragraph (3). 

‘‘(v) OTHER MATERIAL FACTORS.—Such other material factors as the Commission specifies by rule as 

relevant to determine whether an agreement, contract, 
H. R. 2419—515 

or transaction serves a significant price discovery function. 

‘‘(C) CORE PRINCIPLES APPLICABLE TO SIGNIFICANT

PRICE DISCOVERY CONTRACTS.— 

‘‘(i) IN GENERAL.—An electronic trading facility on 

which significant price discovery contracts are traded 

or executed shall, with respect to those contracts, 

comply with the core principles specified in this 

subparagraph. 

‘‘(ii) CORE PRINCIPLES.—The electronic trading 

facility shall have reasonable discretion (including 

discretion to account for differences between cleared 

and uncleared significant price discovery contracts) in 

establishing the manner in which it complies with 

the following core principles: 

‘‘(I) CONTRACTS NOT READILY SUSCEPTIBLE TO

MANIPULATION.—The electronic trading facility 

shall list only significant price discovery contracts 

that are not readily susceptible to manipulation. 

‘‘(II) MONITORING OF TRADING.—The electronic 

trading facility shall monitor trading in significant 

price discovery contracts to prevent market 

manipulation, price distortion, and disruptions of 

the delivery or cash-settlement process through 

market surveillance, compliance, and disciplinary 

practices and procedures, including methods for 

conducting real-time monitoring of trading and 

comprehensive and accurate trade reconstructions. 

‘‘(III) ABILITY TO OBTAIN INFORMATION.—The 

electronic trading facility shall— 

‘‘(aa) establish and enforce rules that will 

allow the electronic trading facility to obtain 

any necessary information to perform any of 

the functions described in this subparagraph; 

‘‘(bb) provide the information to the 

Commission upon request; and 

‘‘(cc) have the capacity to carry out such 

international information-sharing agreements 

as the Commission may require. 

‘‘(IV) POSITION LIMITATIONS OR ACCOUNTABILITY.—The electronic trading facility shall 

adopt, where necessary and appropriate, position 

limitations or position accountability for speculators in significant price discovery contracts, 

taking into account positions in other agreements, 

contracts, and transactions that are treated by 

a derivatives clearing organization, whether registered or not registered, as fungible with such 

significant price discovery contracts to reduce the 

potential threat of market manipulation or congestion, especially during trading in the delivery 

month. 

‘‘(V) EMERGENCY AUTHORITY.—The electronic 

trading facility shall adopt rules to provide for 

the exercise of emergency authority, in consultation or cooperation with the Commission, where 
H. R. 2419—516 

necessary and appropriate, including the 

authority— 

‘‘(aa) to liquidate open positions in a 

significant price discovery contract; and 

‘‘(bb) to suspend or curtail trading in a 

significant price discovery contract. 

‘‘(VI) DAILY PUBLICATION OF TRADING INFORMATION.—The electronic trading facility shall make 

public daily information on price, trading volume, 

and other trading data to the extent appropriate 

for significant price discovery contracts 

‘‘(VII) COMPLIANCE WITH RULES.—The electronic trading facility shall monitor and enforce 

compliance with any rules of the electronic trading 

facility applicable to significant price discovery 

contracts, including the terms and conditions of 

the contracts and any limitations on access to the 

electronic trading facility with respect to the contracts. 

‘‘(VIII) CONFLICT OF INTEREST.—The electronic 

trading facility, with respect to significant price 

discovery contracts, shall— 

‘‘(aa) establish and enforce rules to minimize conflicts of interest in its decision-making 

process; and 

‘‘(bb) establish a process for resolving the 

conflicts of interest. 

‘‘(IX) ANTITRUST CONSIDERATIONS.—Unless 

necessary or appropriate to achieve the purposes 

of this Act, the electronic trading facility, with 

respect to significant price discovery contracts, 

shall endeavor to avoid— 

‘‘(aa) adopting any rules or taking any 

actions that result in any unreasonable 

restraints of trade; or 

‘‘(bb) imposing any material anticompetitive burden on trading on the electronic 

trading facility. 

‘‘(D) IMPLEMENTATION.— 

‘‘(i) CLEARING.—The Commission shall take into 

consideration differences between cleared and 

uncleared significant price discovery contracts when 

reviewing the implementation of the core principles 

by an electronic trading facility. 

‘‘(ii) REVIEW.—As part of the Commission’s continual monitoring and surveillance activities, the 

Commission shall, not less frequently than annually, 

evaluate, as appropriate, all the agreements, contracts, 

or transactions conducted on an electronic trading 

facility in reliance on the exemption provided in paragraph (3) to determine whether they serve a significant 

price discovery function as described in subparagraph 

(B) of this paragraph.’’. 

SEC. 13202. LARGE TRADER REPORTING. 

(a) REPORTING AND RECORDKEEPING.—Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) is amended by inserting 
H. R. 2419—517 

‘‘, and in any significant price discovery contract traded or executed 

on an electronic trading facility or any agreement, contract, or 

transaction that is treated by a derivatives clearing organization, 

whether registered or not registered, as fungible with a significant 

price discovery contract’’ after ‘‘elsewhere’’. 

(b) REPORTS OF POSITIONS EQUAL TO OR IN EXCESS OF TRADING

LIMITS.—Section 4i of such Act (7 U.S.C. 6i) is amended— 

(1) by inserting ‘‘, or any significant price discovery contract 

traded or executed on an electronic trading facility or any 

agreement, contract, or transaction that is treated by a derivatives clearing organization, whether registered or not registered, as fungible with a significant price discovery contract’’ 

after ‘‘subject to the rules of any contract market or derivatives 

transaction execution facility’’; and 

(2) in the matter following paragraph (2), by inserting 

‘‘or electronic trading facility’’ after ‘‘subject to the rules of 

any other board of trade’’. 

SEC. 13203. CONFORMING AMENDMENTS. 

(a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 

U.S.C. 1a(12)(A)(x)) is amended by inserting ‘‘(other than an electronic trading facility with respect to a significant price discovery 

contract)’’ after ‘‘registered entity’’. 

(b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is amended— 

(1) in subparagraph (C), by striking ‘‘and’’ at the end; 

(2) in subparagraph (D), by striking the period and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(E) with respect to a contract that the Commission 

determines is a significant price discovery contract, any 

electronic trading facility on which the contract is executed 

or traded.’’. 

(c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended 

by inserting after ‘‘future delivery’’ the following: ‘‘(including significant price discovery contracts)’’. 

(d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended 

by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4) and (7)’’. 

(e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is amended— 

(1) in subparagraph (B), by inserting ‘‘and, for a significant 

price discovery contract, requiring large trader reporting,’’ after 

‘‘proscribing fraud’’; 

(2) by striking ‘‘and’’ at the end of subparagraph (C); and 

(3) by striking subparagraph (D) and inserting the following: 

‘‘(D) such rules, regulations, and orders as the Commission may issue to ensure timely compliance with any of 

the provisions of this Act applicable to a significant price 

discovery contract traded on or executed on any electronic 

trading facility; and 

‘‘(E) such other provisions of this Act as are applicable 

by their terms to significant price discovery contracts or 

to registered entities or electronic trading facilities with 

respect to significant price discovery contracts.’’. 

(f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 2(h)(5)(B)(iii)(I)) 

is amended by inserting ‘‘or to make the determination described 

in subparagraph (B) of paragraph (7)’’ after ‘‘paragraph (4)’’. 

(g) Section 4a of such Act (7 U.S.C. 6a) is amended— 
H. R. 2419—518 

(1) in subsection (a)— 

(A) in the first sentence, by inserting ‘‘, or on electronic 

trading facilities with respect to a significant price discovery contract’’ after ‘‘derivatives transaction execution 

facilities’’; and 

(B) in the second sentence, by inserting ‘‘, or on an 

electronic trading facility with respect to a significant price 

discovery contract,’’ after ‘‘derivatives transaction execution 

facility’’; and 

(2) in subsection (b)— 

(A) in paragraph (1), by inserting ‘‘or electronic trading 

facility with respect to a significant price discovery contract’’ after ‘‘facility or facilities’’; and 

(B) in paragraph (2), by inserting ‘‘or electronic trading 

facility with respect to a significant price discovery contract’’ after ‘‘derivatives transaction execution facility’’; and 

(3) in subsection (e)— 

(A) in the first sentence— 

(i) by inserting ‘‘or by any electronic trading 

facility’’ after ‘‘registered by the Commission’’; 

(ii) by inserting ‘‘or on an electronic trading 

facility’’ after ‘‘derivatives transaction execution 

facility’’ the second place it appears; and 

(iii) by inserting ‘‘or electronic trading facility’’ 

before ‘‘or such board of trade’’ each place it appears; 

and 

(B) in the second sentence, by inserting ‘‘or electronic 

trading facility with respect to a significant price discovery 

contract’’ after ‘‘registered by the Commission’’. 

(h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is amended— 

(1) by redesignating paragraphs (4) through (9) as paragraphs (5) through (10); and 

(2) by inserting after paragraph (3) the following: 

‘‘(4) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce 

the potential threat of market manipulation or congestion, especially during trading in the delivery month, the derivatives 

transaction execution facility shall adopt position limits or position accountability for speculators, where necessary and appropriate for a contract, agreement or transaction with an underlying commodity that has a physically deliverable supply.’’. 

(i) Section 5c(a) of such Act (7 U.S.C. 7a–2(a)) is amended 

in paragraph (1) by inserting ‘‘, and section 2(h)(7) with respect 

to significant price discovery contracts,’’ after ‘‘, and 5b(d)(2)’’. 

(j) Section 5c(b) of such Act (7 U.S.C. 7a–2(b)) is amended— 

(1) by striking paragraph (1) and inserting the following: 

‘‘(1) IN GENERAL.—A contract market, derivatives transaction execution facility, or electronic trading facility with 

respect to a significant price discovery contract may comply 

with any applicable core principle through delegation of any 

relevant function to a registered futures association or a registered entity that is not an electronic trading facility.’’; 

(2) in paragraph (2), by striking ‘‘contract market or derivatives transaction execution facility’’ and inserting ‘‘contract 

market, derivatives transaction execution facility, or electronic 

trading facility’’; and 

(3) in paragraph (3), by striking ‘‘contract market or derivatives transaction execution facility’’ each place it appears and 
H. R. 2419—519 

inserting ‘‘contract market, derivatives transaction execution 

facility, or electronic trading facility’’. 

(k) Section 5c(d)(1) of such Act (7 U.S.C. 7a–2(d)(1)) is amended 

by inserting ‘‘or 2(h)(7)(C) with respect to a significant price discovery contract traded or executed on an electronic trading facility,’’ 

after ‘‘5b(d)(2)’’. 

(l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting 

‘‘, or revocation of the right of an electronic trading facility to 

rely on the exemption set forth in section 2(h)(3) with respect 

to a significant price discovery contract,’’ after ‘‘revocation of designation as a registered entity’’. 

(m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 

8(b)) is amended by striking the first sentence and all that follows 

through ‘‘hearing on the record: Provided,’’ and inserting the following: 

‘‘The Commission is authorized to suspend for a period not 

to exceed 6 months or to revoke the designation or registration 

of any contract market or derivatives transaction execution facility, 

or to revoke the right of an electronic trading facility to rely on 

the exemption set forth in section 2(h)(3) with respect to a significant price discovery contract, on a showing that the contract market 

or derivatives transaction execution facility is not enforcing or has 

not enforced its rules of government, made a condition of its designation or registration as set forth in sections 5 through 5b or section 

5f, or that the contract market or derivatives transaction execution 

facility or electronic trading facility, or any director, officer, agent, 

or employee thereof, otherwise is violating or has violated any 

of the provisions of this Act or any of the rules, regulations, or 

orders of the Commission thereunder. Such suspension or revocation 

shall only be made after a notice to the officers of the contract 

market or derivatives transaction execution facility or electronic 

trading facility affected and upon a hearing on the record: Provided,’’. 

(n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended 

by inserting ‘‘section 2(h)(7) or’’ before ‘‘sections 5’’. 

SEC. 13204. EFFECTIVE DATE. 

(a) IN GENERAL.—Except as provided in this section, this subtitle shall become effective on the date of enactment of this Act. 

(b) SIGNIFICANT PRICE DISCOVERY STANDARDS RULEMAKING.— 

(1) The Commodity Futures Trading Commission shall— 

(A) not later than 180 days after the date of the enactment of this Act, issue a proposed rule regarding the 

implementation of section 2(h)(7) of the Commodity 

Exchange Act; and 

(B) not later than 270 days after the date of enactment 

of this Act, issue a final rule regarding the implementation. 

(2) In its rulemaking pursuant to paragraph (1) of this 

subsection, the Commission shall include the standards, terms, 

and conditions under which an electronic trading facility will 

have the responsibility to notify the Commission that an agreement, contract, or transaction conducted in reliance on the 

exemption provided in section 2(h)(3) of the Commodity 

Exchange Act may perform a price discovery function. 

(c) SIGNIFICANT PRICE DISCOVERY DETERMINATIONS.—With 

respect to any electronic trading facility operating on the effective 

date of the final rule issued pursuant to subsection (b)(1), the 
H. R. 2419—520 

Commission shall complete a review of the agreements, contracts, 

and transactions of the facility not later than 180 days after that 

effective date to determine whether any such agreement, contract, 

or transaction performs a significant price discovery function. 

TITLE XIV—MISCELLANEOUS 

Subtitle A—Socially Disadvantaged Producers and Limited Resource Producers 

SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF 

AGRICULTURE ON INDIAN RESERVATIONS. 

Section 2501(g)(1) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended— 

(1) in the first sentence— 

(A) by striking ‘‘Agricultural Stabilization and Conservation Service, Soil Conservation Service, and Farmers 

Home Administration offices’’ and inserting ‘‘Farm Service 

Agency and Natural Resources Conservation Service’’; and 

(B) by inserting ‘‘where there has been a need demonstrated’’ after ‘‘include’’; and 

(2) by striking the second sentence. 

SEC. 14002. FORECLOSURE. 

(a) IN GENERAL.—Section 331A of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1981a) is amended: 

(1) by inserting ‘‘(a)’’ after ‘‘SEC. 331A.’’; and 

(2) by adding at the end the following: 

‘‘(b) MORATORIUM.— 

‘‘(1) IN GENERAL.—Subject to the other provisions of this 

subsection, effective beginning on the date of the enactment 

of this subsection, there shall be in effect a moratorium, with 

respect to farmer program loans made under subtitle A, B, 

or C, on all acceleration and foreclosure proceedings instituted 

by the Department of Agriculture against any farmer or rancher 

who— 

‘‘(A) has pending against the Department a claim of 

program discrimination that is accepted by the Department 

as valid; or 

‘‘(B) files a claim of program discrimination that is 

accepted by the Department as valid. 

‘‘(2) WAIVER OF INTEREST AND OFFSETS.—During the period 

of the moratorium, the Secretary shall waive the accrual of 

interest and offsets on all farmer program loans made under 

subtitle A, B, or C for which loan acceleration or foreclosure 

proceedings have been suspended under paragraph (1). 

‘‘(3) TERMINATION OF MORATORIUM.—The moratorium shall 

terminate with respect to a claim of discrimination by a farmer 

or rancher on the earlier of— 

‘‘(A) the date the Secretary resolves the claim; or 

‘‘(B) if the farmer or rancher appeals the decision of 

the Secretary on the claim to a court of competent jurisdiction, the date that the court renders a final decision on 

the claim. 
H. R. 2419—521 

‘‘(4) FAILURE TO PREVAIL.—If a farmer or rancher does 

not prevail on a claim of discrimination described in paragraph 

(1), the farmer or rancher shall be liable for any interest and 

offsets that accrued during the period that loan acceleration 

or foreclosure proceedings have been suspended under paragraph (1).’’. 

(b) FORECLOSURE REPORT.— 

(1) IN GENERAL.—Not later than 1 year after the date 

of the enactment of this Act, the Inspector General of the 

Department of Agriculture (referred to in this subsection as 

the ‘‘Inspector General’’) shall determine whether decisions of 

the Department to implement foreclosure proceedings with 

respect to farmer program loans made under subtitle A, B, 

or C of the Consolidated Farm and Rural Development Act 

(7 U.S.C. 1922 et seq.) to socially disadvantaged farmers or 

ranchers during the 5-year period preceding the date of the 

enactment of this Act were consistent and in conformity with 

the applicable laws (including regulations) governing loan foreclosures. 

(2) REPORT.—Not later than 1 year after the date of the 

enactment of this Act, the Inspector General shall submit to 

the Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry 

of the Senate a report that describes the determination of 

the Inspector General under paragraph (1). 

SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM 

CERTAIN DEPARTMENT OF AGRICULTURE AGENCIES. 

Section 2501A of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 2279–1) is amended by adding at 

the end the following new subsection: 

‘‘(e) RECEIPT FOR SERVICE OR DENIAL OF SERVICE.—In any 

case in which a current or prospective producer or landowner, 

in person or in writing, requests from the Farm Service Agency, 

the Natural Resources Conservation Service, or an agency of the 

Rural Development Mission Area any benefit or service offered 

by the Department to agricultural producers or landowners and, 

at the time of the request, also requests a receipt, the Secretary 

shall issue, on the date of the request, a receipt to the producer 

or landowner that contains— 

‘‘(1) the date, place, and subject of the request; and 

‘‘(2) the action taken, not taken, or recommended to the 

producer or landowner.’’. 

SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 

DISADVANTAGED FARMERS OR RANCHERS. 

(a) OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.— 

(1) PROGRAM REQUIREMENTS.—Paragraph (2) of section 

2501(a) of the Food, Agriculture, Conservation, and Trade Act 

of 1990 (7 U.S.C. 2279(a)) is amended to read as follows: 

‘‘(2) REQUIREMENTS.—The outreach and technical assistance program under paragraph (1) shall be used exclusively— 

‘‘(A) to enhance coordination of the outreach, technical 

assistance, and education efforts authorized under agriculture programs; and 

‘‘(B) to assist the Secretary in— 
H. R. 2419—522 

‘‘(i) reaching current and prospective socially disadvantaged farmers or ranchers in a linguistically 

appropriate manner; and 

‘‘(ii) improving the participation of those farmers 

and ranchers in Department programs, as reported 

under section 2501A.’’. 

(2) GRANTS AND CONTRACTS UNDER PROGRAM.—Section 

2501(a)(3) of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 2279(a)(3)) is amended— 

(A) in subparagraph (A), by striking ‘‘entity to provide 

information’’ and inserting ‘‘entity that has demonstrated 

an ability to carry out the requirements described in paragraph (2) to provide outreach’’; and 

(B) by adding at the end the following new subparagraph: 

‘‘(D) REPORT.—The Secretary shall submit to the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of 

the Senate, and make publicly available, an annual report 

that includes a list of the following: 

‘‘(i) The recipients of funds made available under 

the program. 

‘‘(ii) The activities undertaken and services provided. 

‘‘(iii) The number of current and prospective 

socially disadvantaged farmers or ranchers served and 

outcomes of such service. 

‘‘(iv) The problems and barriers identified by entities in trying to increase participation by current and 

prospective socially disadvantaged farmers or 

ranchers.’’. 

(3) FUNDING AND LIMITATION ON USE OF FUNDS.—Section 

2501(a)(4) of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 2279(a)(4)) is amended— 

(A) by striking subparagraph (A) and inserting the 

following new subparagraph: 

‘‘(A) IN GENERAL.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall make available to 

carry out this section— 

‘‘(i) $15,000,000 for fiscal year 2009; and 

‘‘(ii) $20,000,000 for each of fiscal years 2010 

through 2012.’’. 

(B) by adding at the end the following new subparagraph: 

‘‘(C) LIMITATION ON USE OF FUNDS FOR ADMINISTRATIVE

EXPENSES.—Not more than 5 percent of the amounts made 

available under subparagraph (A) for a fiscal year may 

be used for expenses related to administering the program 

under this section.’’. 

(b) ELIGIBLE ENTITY DEFINED.—Section 2501(e)(5)(A)(ii) of the 

Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(e)(5)(A)(ii)) is amended by striking ‘‘work with socially disadvantaged farmers or ranchers during the 2-year period’’ and 

inserting ‘‘work with, and on behalf of, socially disadvantaged 

farmers or ranchers during the 3-year period’’. 
H. R. 2419—523 

SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRICULTURE AND CERTAIN STUDIES. 

Section 2501 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 2279) is amended by adding at the end 

the following: 

‘‘(h) ACCURATE DOCUMENTATION.—The Secretary shall ensure, 

to the maximum extent practicable, that the Census of Agriculture 

and studies carried out by the Economic Research Service accurately 

document the number, location, and economic contributions of 

socially disadvantaged farmers or ranchers in agricultural production.’’. 

SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED FARMERS OR RANCHERS. 

Section 2501A of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 2279–1) is amended by striking subsection (c) and inserting the following new subsections: 

‘‘(c) COMPILATION OF PROGRAM PARTICIPATION DATA.— 

‘‘(1) ANNUAL REQUIREMENT.—For each county and State 

in the United States, the Secretary of Agriculture (referred 

to in this section as the ‘Secretary’) shall annually compile 

program application and participation rate data regarding 

socially disadvantaged farmers or ranchers by computing for 

each program of the Department of Agriculture that serves 

agricultural producers and landowners— 

‘‘(A) raw numbers of applicants and participants by 

race, ethnicity, and gender, subject to appropriate privacy 

protections, as determined by the Secretary; and 

‘‘(B) the application and participation rate, by race, 

ethnicity, and gender, as a percentage of the total participation rate of all agricultural producers and landowners. 

‘‘(2) AUTHORITY TO COLLECT DATA.—The heads of the agencies of the Department of Agriculture shall collect and transmit 

to the Secretary any data, including data on race, gender, 

and ethnicity, that the Secretary determines to be necessary 

to carry out paragraph (1). 

‘‘(3) REPORT.—Using the technologies and systems of the 

National Agricultural Statistics Service, the Secretary shall 

compile and present the data compiled under paragraph (1) 

for each program described in that paragraph in a manner 

that includes the raw numbers and participation rates for— 

‘‘(A) the entire United States; 

‘‘(B) each State; and 

‘‘(C) each county in each State. 

‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The Secretary shall 

maintain and make readily available to the public, via website 

and otherwise in electronic and paper form, the report described 

in paragraph (3). 

‘‘(d) LIMITATIONS ON USE OF DATA.— 

‘‘(1) PRIVACY PROTECTIONS.—In carrying out this section, 

the Secretary shall not disclose the names or individual data 

of any program participant. 

‘‘(2) AUTHORIZED USES.—The data under this section shall 

be used exclusively for the purposes described in subsection 

(a). 
H. R. 2419—524 

‘‘(3) LIMITATION.—Except as otherwise provided, the data 

under this section shall not be used for the evaluation of 

individual applications for assistance.’’. 

SEC. 14007. OVERSIGHT AND COMPLIANCE. 

The Secretary, acting through the Assistant Secretary for Civil 

Rights of the Department of Agriculture, shall use the reports 

described in subsection (c) of section 2501A of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 2279–1), as amended 

by section 14006, in the conduct of oversight and evaluation of 

civil rights compliance. 

SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE. 

(a) ESTABLISHMENT.—Not later than 18 months after the date 

of the enactment of this Act, the Secretary of Agriculture shall 

establish an advisory committee, to be known as the ‘‘Advisory 

Committee on Minority Farmers’’ (in this section referred to as 

the ‘‘Committee’’). 

(b) DUTIES.—The Committee shall provide advice to the Secretary on— 

(1) the implementation of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279); 

(2) methods of maximizing the participation of minority 

farmers and ranchers in Department of Agriculture programs; 

and 

(3) civil rights activities within the Department as such 

activities relate to participants in such programs. 

(c) MEMBERSHIP.— 

(1) IN GENERAL.—The Committee shall be composed of not 

more than 15 members, who shall be appointed by the Secretary, and shall include— 

(A) not less than four socially disadvantaged farmers 

or ranchers (as defined in section 2501(e)(2) of the Food, 

Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(e)(2))); 

(B) not less than two representatives of nonprofit 

organizations with a history of working with minority 

farmers and ranchers; 

(C) not less than two civil rights professionals; 

(D) not less than two representatives of institutions 

of higher education with demonstrated experience working 

with minority farmers and ranchers; and 

(E) such other persons as the Secretary considers 

appropriate. 

(2) EX-OFFICIO MEMBERS.—The Secretary may appoint such 

employees of the Department of Agriculture as the Secretary 

considers appropriate to serve as ex-officio members of the 

Committee. 

SEC. 14009. NATIONAL APPEALS DIVISION. 

Section 280 of the Department of Agriculture Reorganization 

Act of 1994 (7 U.S.C. 7000) is amended— 

(1) by striking ‘‘On the return’’ and inserting the following: 

‘‘(a) IN GENERAL.—On the return’’; and 

(2) by adding at the end the following: 

‘‘(b) REPORTS.— 
H. R. 2419—525 

‘‘(1) IN GENERAL.—Not later than 180 days after the date 

of the enactment of this subsection, and every 180 days thereafter, the head of each agency shall submit to the Committee 

on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, 

and publish on the website of the Department, a report that 

includes— 

‘‘(A) a description of all cases returned to the agency 

during the period covered by the report pursuant to a 

final determination of the Division; 

‘‘(B) the status of implementation of each final determination; and 

‘‘(C) if the final determination has not been implemented— 

‘‘(i) the reason that the final determination has 

not been implemented; and 

‘‘(ii) the projected date of implementation of the 

final determination. 

‘‘(2) UPDATES.—Each month, the head of each agency shall 

publish on the website of the Department any updates to the 

reports submitted under paragraph (1).’’. 

SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, 

AND ACTIONS. 

Each year, the Secretary shall— 

(1) prepare a report that describes, for each agency of 

the Department of Agriculture— 

(A) the number of civil rights complaints filed that 

relate to the agency, including whether a complaint is 

a program complaint or an employment complaint; 

(B) the length of time the agency took to process each 

civil rights complaint; 

(C) the number of proceedings brought against the 

agency, including the number of complaints described in 

paragraph (1) that were resolved with a finding of discrimination; and 

(D) the number and type of personnel actions taken 

by the agency following resolution of civil rights complaints; 

(2) submit to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a copy of the report; and 

(3) make the report available to the public by posting 

the report on the website of the Department. 

SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT 

BY SOCIALLY DISADVANTAGED FARMERS OR RANCHERS. 

It is the sense of Congress that all pending claims and class 

actions brought against the Department of Agriculture by socially 

disadvantaged farmers or ranchers (as defined in section 355(e) 

of the Consolidated Farm and Rural Development Act (7 U.S.C. 

2003(e)), including Native American, Hispanic, and female farmers 

or ranchers, based on racial, ethnic, or gender discrimination in 

farm program participation should be resolved in an expeditious 

and just manner. 

SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS. 

(a) DEFINITIONS.—In this section: 
H. R. 2419—526 

(1) CONSENT DECREE.—The term ‘‘consent decree’’ means 

the consent decree in the case of Pigford v. Glickman, approved 

by the United States District Court for the District of Columbia 

on April 14, 1999. 

(2) DEPARTMENT.—The term ‘‘Department’’ means the 

Department of Agriculture. 

(3) PIGFORD CLAIM.—The term ‘‘Pigford claim’’ means a 

discrimination complaint, as defined by section 1(h) of the consent decree and documented under section 5(b) of the consent 

decree. 

(4) PIGFORD CLAIMANT.—The term ‘‘Pigford claimant’’ 

means an individual who previously submitted a late-filing 

request under section 5(g) of the consent decree. 

(b) DETERMINATION ON MERITS.—Any Pigford claimant who 

has not previously obtained a determination on the merits of a 

Pigford claim may, in a civil action brought in the United States 

District Court for the District of Columbia, obtain that determination. 

(c) LIMITATION.— 

(1) IN GENERAL.—Subject to paragraph (2), all payments 

or debt relief (including any limitation on foreclosure under 

subsection (h)) shall be made exclusively from funds made 

available under subsection (i). 

(2) MAXIMUM AMOUNT.—The total amount of payments and 

debt relief pursuant to actions commenced under subsection 

(b) shall not exceed $100,000,000. 

(d) INTENT OF CONGRESS AS TO REMEDIAL NATURE OF SECTION.—It is the intent of Congress that this section be liberally 

construed so as to effectuate its remedial purpose of giving a full 

determination on the merits for each Pigford claim previously 

denied that determination. 

(e) LOAN DATA.— 

(1) REPORT TO PERSON SUBMITTING PETITION.— 

(A) IN GENERAL.—Not later than 120 days after the 

Secretary receives notice of a complaint filed by a claimant 

under subsection (b), the Secretary shall provide to the 

claimant a report on farm credit loans and noncredit benefits, as appropriate, made within the claimant’s county 

(or if no documents are found, within an adjacent county 

as determined by the claimant), by the Department during 

the period beginning on January 1 of the year preceding 

the period covered by the complaint and ending on 

December 31 of the year following the period. 

(B) REQUIREMENTS.—A report under subparagraph (A) 

shall contain information on all persons whose application 

for a loan or benefit was accepted, including— 

(i) the race of the applicant; 

(ii) the date of application; 

(iii) the date of the loan or benefit decision, as 

appropriate; 

(iv) the location of the office making the loan or 

benefit decision, as appropriate; 

(v) all data relevant to the decisionmaking process 

for the loan or benefit, as appropriate; and 

(vi) all data relevant to the servicing of the loan 

or benefit, as appropriate. 
H. R. 2419—527 

(2) NO PERSONALLY IDENTIFIABLE INFORMATION.—The 

reports provided pursuant to paragraph (1) shall not contain 

any information that would identify any person who applied 

for a loan from the Department. 

(3) REPORTING DEADLINE.— 

(A) IN GENERAL.—The Secretary shall— 

(i) provide to claimants the reports required under 

paragraph (1) as quickly as practicable after the Secretary receives notice of a complaint filed by a claimant 

under subsection (b); and 

(ii) devote such resources of the Department as 

are necessary to make providing the reports expeditiously a high priority of the Department. 

(B) EXTENSION.—A court may extend the deadline for 

providing the report required in a particular case under 

paragraph (1) if the Secretary establishes that meeting 

the deadline is not feasible and demonstrates a continuing 

effort and commitment to provide the required report 

expeditiously. 

(f) EXPEDITED RESOLUTIONS AUTHORIZED.— 

(1) IN GENERAL.—Any person filing a complaint under this 

section for discrimination in the application for, or making 

or servicing of, a farm loan, at the discretion of the person, 

may seek liquidated damages of $50,000, discharge of the debt 

that was incurred under, or affected by, the 1 or more programs 

that were the subject of the 1 or more discrimination claims 

that are the subject of the person’s complaint, and a tax payment in the amount equal to 25 percent of the liquidated 

damages and loan principal discharged, in which case— 

(A) if only such damages, debt discharge, and tax payment are sought, the complainant shall be able to prove 

the case of the complainant by substantial evidence (as 

defined in section 1(l) of the consent decree); and 

(B) the court shall decide the case based on a review 

of documents submitted by the complainant and defendant 

relevant to the issues of liability and damages. 

(2) NONCREDIT CLAIMS.— 

(A) STANDARD.—In any case in which a claimant 

asserts a noncredit claim under a benefit program of the 

Department, the court shall determine the merits of the 

claim in accordance with section 9(b)(i) of the consent 

decree. 

(B) RELIEF.—A claimant who prevails on a claim of 

discrimination involving a noncredit benefit program of 

the Department shall be entitled to a payment by the 

Department in a total amount of $3,000, without regard 

to the number of such claims on which the claimant prevails. 

(g) ACTUAL DAMAGES.—A claimant who files a claim under 

this section for discrimination under subsection (b) but not under 

subsection (f) and who prevails on the claim shall be entitled 

to actual damages sustained by the claimant. 

(h) LIMITATION ON FORECLOSURES.—Notwithstanding any other 

provision of law, during the pendency of a Pigford claim, the Secretary may not begin acceleration on or foreclosure of a loan if— 

(1) the borrower is a Pigford claimant; and 
H. R. 2419—528 

(2) makes a prima facie case in an appropriate administrative proceeding that the acceleration or foreclosure is related 

to a Pigford claim. 

(i) FUNDING.— (1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall make available for payments 

and debt relief in satisfaction of claims against the United 

States under subsection (b) and for any actions under subsection 

(g) $100,000,000 for fiscal year 2008, to remain available until 

expended. 

(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

funds made available under paragraph (1), there are authorized 

to be appropriated such sums as are necessary to carry out 

this section. 

(j) REPORTING REQUIREMENTS.— (1) IN GENERAL.—Not later than 180 days after the date 

of the enactment of this Act and every 180 days thereafter 

until the funds made available under subsection (i) are depleted, 

the Secretary shall submit to the Committee on the Judiciary 

of the House of Representatives and the Committee on the 

Judiciary of the Senate a report that describes the status of 

available funds under subsection (i) and the number of pending 

claims under subsection (f). 

(2) DEPLETION OF FUNDS REPORT.—In addition to the 

reports required under paragraph (1), the Secretary shall 

submit to the Committee on the Judiciary of the House of 

Representatives and the Committee on the Judiciary of the 

Senate a report that notifies the Committees when 75 percent 

of the funds made available under subsection (i)(1) have been 

depleted. 

(k) TERMINATION OF AUTHORITY.—The authority to file a claim 

under this section terminates 2 years after the date of the enactment of this Act. 

SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH. 

(a) IN GENERAL.—The Department of Agriculture Reorganization Act of 1994 is amended by inserting after section 226A (7 

U.S.C. 6933) the following: 

‘‘SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BEGINNING FARMER OR RANCHER.—The term ‘beginning 

farmer or rancher’ has the meaning given the term in section 

343(a) of the Consolidated Farm and Rural Development Act 

(7 U.S.C. 1991(a)). 

‘‘(2) OFFICE.—The term ‘Office’ means the Office of 

Advocacy and Outreach established under this section. 

‘‘(3) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 

term ‘socially disadvantaged farmer or rancher’ has the 

meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 

‘‘(b) ESTABLISHMENT AND PURPOSE.— ‘‘(1) IN GENERAL.—The Secretary shall establish within the 

executive operations of the Department an office to be known 

as the ‘Office of Advocacy and Outreach’— 

‘‘(A) to improve access to programs of the Department; 

and 

‘‘(B) to improve the viability and profitability of— 
H. R. 2419—529 

‘‘(i) small farms and ranches; 

‘‘(ii) beginning farmers or ranchers; and 

‘‘(iii) socially disadvantaged farmers or ranchers. 

‘‘(2) DIRECTOR.—The Office shall be headed by a Director, 

to be appointed by the Secretary from among the competitive 

service. 

‘‘(c) DUTIES.—The duties of the Office shall be to ensure small 

farms and ranches, beginning farmers or ranchers, and socially 

disadvantaged farmers or ranchers access to, and equitable participation in, programs and services of the Department by— 

‘‘(1) establishing and monitoring the goals and objectives 

of the Department to increase participation in programs of 

the Department by small, beginning, or socially disadvantaged 

farmers or ranchers; 

‘‘(2) assessing the effectiveness of Department outreach 

programs; 

‘‘(3) developing and implementing a plan to coordinate outreach activities and services provided by the Department; 

‘‘(4) providing input to the agencies and offices on programmatic and policy decisions; 

‘‘(5) measuring outcomes of the programs and activities 

of the Department on small farms and ranches, beginning 

farmers or ranchers, and socially disadvantaged farmers or 

ranchers programs; 

‘‘(6) recommending new initiatives and programs to the 

Secretary; and 

‘‘(7) carrying out any other related duties that the Secretary 

determines to be appropriate. 

‘‘(d) SOCIALLY DISADVANTAGED FARMERS GROUP.— ‘‘(1) ESTABLISHMENT.—The Secretary shall establish within 

the Office the Socially Disadvantaged Farmers Group. 

‘‘(2) OUTREACH AND ASSISTANCE.—The Socially Disadvantaged Farmers Group— 

‘‘(A) shall carry out section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279); and 

‘‘(B) in the case of activities described in section 2501(a) 

of that Act, may conduct such activities through other 

agencies and offices of the Department. 

‘‘(3) SOCIALLY DISADVANTAGED FARMERS AND FARMWORKERS.—The Socially Disadvantaged Farmers Group shall 

oversee the operations of— 

‘‘(A) the Advisory Committee on Minority Farmers 

established under section 14009 of the Food, Conservation, 

and Energy Act of 2008; and 

‘‘(B) the position of Farmworker Coordinator established under subsection (f). 

‘‘(4) OTHER DUTIES.— ‘‘(A) IN GENERAL.—The Socially Disadvantaged 

Farmers Group may carry out other duties to improve 

access to, and participation in, programs of the Department 

by socially disadvantaged farmers or ranchers, as determined by the Secretary. 

‘‘(B) OFFICE OF OUTREACH AND DIVERSITY.—The Office 

of Advocacy and Outreach shall carry out the functions 

and duties of the Office of Outreach and Diversity carried 

out by the Assistant Secretary for Civil Rights as such 
H. R. 2419—530 

functions and duties existed immediately before the date 

of the enactment of this section. 

‘‘(e) SMALL FARMS AND BEGINNING FARMERS AND RANCHERS

GROUP.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall establish within 

the Office the Small Farms and Beginning Farmers and 

Ranchers Group. 

‘‘(2) DUTIES.— 

‘‘(A) OVERSEE OFFICES.—The Small Farms and Beginning Farmers and Ranchers Group shall oversee the operations of the Office of Small Farms Coordination established by Departmental Regulation 9700-1 (August 3, 2006). 

‘‘(B) BEGINNING FARMER AND RANCHER DEVELOPMENT

PROGRAM.—The Small Farms and Beginning Farmers and 

Ranchers Group shall consult with the National Institute 

for Food and Agriculture on the administration of the beginning farmer and rancher development program established 

under section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f). 

‘‘(C) ADVISORY COMMITTEE FOR BEGINNING FARMERS

AND RANCHERS.—The Small Farms and Beginning Farmers 

and Ranchers Group shall coordinate the activities of the 

Group with the Advisory Committee for Beginning Farmers 

and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1621 note; 

Public Law 102–554). 

‘‘(D) OTHER DUTIES.—The Small Farms and Beginning 

Farmers and Ranchers Group may carry out other duties 

to improve access to, and participation in, programs of 

the Department by small farms and ranches and beginning 

farmers or ranchers, as determined by the Secretary. 

‘‘(f) FARMWORKER COORDINATOR.— ‘‘(1) ESTABLISHMENT.—The Secretary shall establish within 

the Office the position of Farmworker Coordinator (referred 

to in this subsection as the ‘Coordinator’). 

‘‘(2) DUTIES.—The Secretary shall delegate to the Coordinator responsibility for the following: 

‘‘(A) Assisting in administering the program established by section 2281 of the Food, Agriculture, Conservation, and Trade Act of 1990 (42 U.S.C. 5177a). 

‘‘(B) Serving as a liaison to community-based nonprofit 

organizations that represent and have demonstrated 

experience serving low-income migrant and seasonal farmworkers. 

‘‘(C) Coordinating with the Department, other Federal 

agencies, and State and local governments to ensure that 

farmworker needs are assessed and met during declared 

disasters and other emergencies. 

‘‘(D) Consulting within the Office and with other entities to better integrate farmworker perspectives, concerns, 

and interests into the ongoing programs of the Department. 

‘‘(E) Consulting with appropriate institutions on 

research, program improvements, or agricultural education 

opportunities that assist low-income and migrant seasonal 

farmworkers. 

‘‘(F) Assisting farmworkers in becoming agricultural 

producers or landowners. 
H. R. 2419—531 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated such sums as are necessary to 

carry out this subsection for each of fiscal years 2009 through 

2012.’’. 

(b) CONFORMING AMENDMENT.—Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)), 

as amended by section 7511(b), is further amended— 

(1) in paragraph (5), by striking ‘‘; or’’ and inserting ‘‘;’’; 

(2) in paragraph (6), by striking the period and inserting 

‘‘; or’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(7) the authority of the Secretary to establish in the 

Department the Office of Advocacy and Outreach in accordance 

with section 226B.’’. 

Subtitle B—Agricultural Security 

SEC. 14101. SHORT TITLE. 

This subtitle may be cited as the ‘‘Agricultural Security 

Improvement Act of 2008’’. 

SEC. 14102. DEFINITIONS. 

In this subtitle: 

(1) AGENT.—The term ‘‘agent’’ means a nuclear, biological, 

chemical, or radiological substance that causes agricultural disease or the adulteration of products regulated by the Secretary 

of Agriculture under any provision of law. 

(2) AGRICULTURAL BIOSECURITY.—The term ‘‘agricultural 

biosecurity’’ means protection from an agent that poses a threat 

to— 

(A) plant or animal health; 

(B) public health as it relates to the adulteration of 

products regulated by the Secretary of Agriculture under 

any provision of law that is caused by exposure to an 

agent; or 

(C) the environment as it relates to agriculture facilities, farmland, and air and water within the immediate 

vicinity of an area associated with an agricultural disease 

or outbreak. 

(3) AGRICULTURAL COUNTERMEASURE.—The term ‘‘agricultural countermeasure’’— 

(A) means a product, practice, or technology that is 

intended to enhance or maintain the agricultural biosecurity of the United States; and 

(B) does not include a product, practice, or technology 

used solely in response to a human medical incident or 

public health emergency not related to agriculture. 

(4) AGRICULTURAL DISEASE.—The term ‘‘agricultural disease’’ has the meaning given the term by the Secretary. 

(5) AGRICULTURAL DISEASE EMERGENCY.—The term ‘‘agricultural disease emergency’’ means an incident of agricultural 

disease that requires prompt action to prevent significant damage to people, plants, or animals. 

(6) AGROTERRORIST ACT.—The term ‘‘agroterrorist act’’ 

means an act that— 

(A) causes or attempts to cause— 
H. R. 2419—532 

(i) damage to agriculture; or 

(ii) injury to a person associated with agriculture; 

and 

(B) is committed or appears to be committed with 

the intent to— 

(i) intimidate or coerce a civilian population; or 

(ii) disrupt the agricultural industry in order to 

influence the policy of a government by intimidation 

or coercion. 

(7) ANIMAL.—The term ‘‘animal’’ has the meaning given 

the term in section 10403 of the Animal Health Protection 

Act of 2002 (7 U.S.C. 8302). 

(8) DEPARTMENT.—The term ‘‘Department’’ means the 

Department of Agriculture. 

(9) DEVELOPMENT.—The term ‘‘development’’ means— 

(A) research leading to the identification of products 

or technologies intended for use as agricultural countermeasures to protect animal health; 

(B) the formulation, production, and subsequent modification of those products or technologies; 

(C) the conduct of in vitro and in vivo studies; 

(D) the conduct of field, efficacy, and safety studies; 

(E) the preparation of an application for marketing 

approval for submission to an applicable agency; or 

(F) other actions taken by an applicable agency in 

a case in which an agricultural countermeasure is procured 

or used prior to issuance of a license or other form of 

Federal Government approval. 

(10) PLANT.—The term ‘‘plant’’ has the meaning given the 

term in section 411 of the Plant Protection Act of 2000 (7 

U.S.C. 7702). 

(11) QUALIFIED AGRICULTURAL COUNTERMEASURE.—The 

term ‘‘qualified agricultural countermeasure’’ means an agricultural countermeasure that the Secretary, in consultation with 

the Secretary of Homeland Security, determines to be a priority 

in order to address an agricultural biosecurity threat. 

CHAPTER 1—AGRICULTURAL SECURITY 

SEC. 14111. OFFICE OF HOMELAND SECURITY. 

(a) ESTABLISHMENT.—There is established within the Department the Office of Homeland Security (in this section referred 

to as the ‘‘Office’’). 

(b) DIRECTOR.—The Office shall be headed by a Director of 

Homeland Security, who shall be appointed by the Secretary. 

(c) RESPONSIBILITIES.—The Director of Homeland Security 

shall— 

(1) coordinate all homeland security activities of the 

Department, including integration and coordination of interagency emergency response plans for— 

(A) agricultural disease emergencies; 

(B) agroterrorist acts; and 

(C) other threats to agricultural biosecurity; 

(2) act as the primary liaison on behalf of the Department 

with other Federal departments and agencies on the coordination of efforts and interagency activities pertaining to agricultural biosecurity; and 
H. R. 2419—533 

(3) advise the Secretary on policies, regulations, processes, 

budget, and actions pertaining to homeland security. 

SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER. 

(a) ESTABLISHMENT.—The Secretary shall establish a communication center within the Department to— 

(1) collect and disseminate information and prepare for 

an agricultural disease emergency, agroterrorist act, or other 

threat to agricultural biosecurity; and 

(2) coordinate activities described in paragraph (1) among 

agencies and offices within the Department. 

(b) RELATION TO EXISTING DHS COMMUNICATION SYSTEMS.— 

(1) CONSISTENCY AND COORDINATION.—The communication 

center established under subsection (a) shall, to the maximum 

extent practicable, share and coordinate the dissemination of 

timely information with the Department of Homeland Security 

and other communication systems of appropriate Federal 

departments and agencies. 

(2) AVOIDING REDUNDANCIES.—Paragraph (1) shall not be 

construed to impede, conflict with, or duplicate the communications activities performed by the Secretary of Homeland Security under any provision of law. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated such sums as may be necessary to carry out 

this section for each of fiscal years 2008 through 2012. 

SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL BIOSECURITY PLANNING, PREPAREDNESS, AND 

RESPONSE. 

(a) ADVANCED TRAINING PROGRAMS.— 

(1) GRANT ASSISTANCE.—The Secretary shall establish a 

competitive grant program to support the development and 

expansion of advanced training programs in agricultural biosecurity planning and response for food science professionals 

and veterinarians. 

(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary such sums as may 

be necessary to carry out this subsection for each of fiscal 

years 2008 through 2012. 

(b) ASSESSMENT OF RESPONSE CAPABILITY.— 

(1) GRANT AND LOAN ASSISTANCE.—The Secretary shall 

establish a competitive grant and low-interest loan assistance 

program to assist States in assessing agricultural disease 

response capability. 

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $25,000,000 

for each of fiscal years 2008 through 2012. 

CHAPTER 2—OTHER PROVISIONS 

SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL 

COUNTERMEASURES. 

(a) GRANT PROGRAM.— 

(1) COMPETITIVE GRANT PROGRAM.—The Secretary shall 

establish a competitive grant program to encourage basic and 

applied research and the development of qualified agricultural 

countermeasures. 
H. R. 2419—534 

(2) WAIVER IN EMERGENCIES.—The Secretary may waive 

the requirement under paragraph (1) that a grant be provided 

on a competitive basis if— 

(A) the Secretary has declared a plant or animal disease emergency under the Plant Protection Act (7 U.S.C. 

7701 et seq.) or the Animal Health Protection Act (7 U.S.C. 

8301 et seq.); and 

(B) waiving the requirement would lead to the rapid 

development of a qualified agricultural countermeasure, 

as determined by the Secretary. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $50,000,000 for each 

of fiscal years 2008 through 2012. 

SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM. 

(a) COMPETITIVE GRANT PROGRAM.—The Secretary shall establish a competitive grant program to promote the development of 

teaching programs in agriculture, veterinary medicine, and disciplines closely allied to the food and agriculture system to increase 

the number of trained individuals with an expertise in agricultural 

biosecurity. 

(b) ELIGIBILITY.—The Secretary may award a grant under this 

section only to an entity that is— 

(1) an accredited school of veterinary medicine; or 

(2) a department of an institution of higher education with 

a primary focus on— 

(A) comparative medicine; 

(B) veterinary science; or 

(C) agricultural biosecurity. 

(c) PREFERENCE.—The Secretary shall give preference in 

awarding grants based on the ability of an applicant— 

(1) to increase the number of veterinarians or individuals 

with advanced degrees in food and agriculture disciplines who 

are trained in agricultural biosecurity practice areas; 

(2) to increase research capacity in areas of agricultural 

biosecurity; or 

(3) to fill critical agricultural biosecurity shortage situations 

outside of the Federal Government. 

(d) USE OF FUNDS..— 

(1) IN GENERAL.—Amounts received under this section shall 

be used by a grantee to pay— 

(A) costs associated with the acquisition of equipment 

and other capital costs relating to the expansion of food, 

agriculture, and veterinary medicine teaching programs 

in agricultural biosecurity; 

(B) capital costs associated with the expansion of academic programs that offer postgraduate training for veterinarians or concurrent training for veterinary students in 

specific areas of specialization; or 

(C) other capacity and infrastructure program costs 

that the Secretary considers appropriate. 

(2) LIMITATION.—Funds received under this section may 

not be used for the construction, renovation, or rehabilitation 

of a building or facility. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated sums as are necessary to carry out this section 
H. R. 2419—535 

for each of fiscal years 2008 through 2012, to remain available 

until expended. 

Subtitle C—Other Miscellaneous 

Provisions 

SEC. 14201. COTTON CLASSIFICATION SERVICES. 

Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is 

amended to read as follows: 

‘‘SEC. 3a. COTTON CLASSIFICATION SERVICES. 

‘‘(a) IN GENERAL.—The Secretary of Agriculture (referred to 

in this section as the ‘Secretary’) shall— 

‘‘(1) make cotton classification services available to producers of cotton; and 

‘‘(2) provide for the collection of classification fees from 

participating producers or agents that voluntarily agree to collect and remit the fees on behalf of producers. 

‘‘(b) FEES.— 

‘‘(1) USE OF FEES.—Classification fees collected under subsection (a)(2) and the proceeds from the sales of samples submitted under this section shall, to the maximum extent practicable, be used to pay the cost of the services provided under 

this section, including administrative and supervisory costs. 

‘‘(2) ANNOUNCEMENT OF FEES.—The Secretary shall 

announce a uniform classification fee and any applicable surcharge for classification services not later than June 1 of the 

year in which the fee applies. 

‘‘(c) CONSULTATION.— 

‘‘(1) IN GENERAL.—In establishing the amount of fees under 

this section, the Secretary shall consult with representatives 

of the United States cotton industry. 

‘‘(2) EXEMPTION.—The Federal Advisory Committee Act (5 

U.S.C. App.) shall not apply to consultations with representatives of the United States cotton industry under this section. 

‘‘(d) CREDITING OF FEES.—Any fees collected under this section 

and under section 3d, late payment penalties, the proceeds from 

the sales of samples, and interest earned from the investment 

of such funds shall— 

‘‘(1) be credited to the current appropriation account that 

incurs the cost of services provided under this section and 

section 3d; and 

‘‘(2) remain available without fiscal year limitation to pay 

the expenses of the Secretary in providing those services. 

‘‘(e) INVESTMENT OF FUNDS.—Funds described in subsection 

(d) may be invested— 

‘‘(1) by the Secretary in insured or fully collateralized, 

interest-bearing accounts; or 

‘‘(2) at the discretion of the Secretary, by the Secretary 

of the Treasury in United States Government debt instruments. 

‘‘(f) LEASE AGREEMENTS.—Notwithstanding any other provision 

of law, the Secretary may enter into long-term lease agreements 

that exceed 5 years or may take title to property (including through 

purchase agreements) for the purpose of obtaining offices to be 

used for the classification of cotton in accordance with this Act, 
H. R. 2419—536 

if the Secretary determines that action would best effectuate the 

purposes of this Act. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—To the extent that 

financing is not available from fees and the proceeds from the 

sales of samples, there are authorized to be appropriated such 

sums as are necessary to carry out this section.’’. 

SEC. 14202. DESIGNATION OF STATES FOR COTTON RESEARCH AND 

PROMOTION. 

Section 17(f) of the Cotton Research and Promotion Act (7 

U.S.C. 2116(f)) is amended— 

(1) by striking ‘‘(f) The term’’ and inserting the following: 

‘‘(f) COTTON-PRODUCING STATE.— 

‘‘(1) IN GENERAL.—The term’’; 

(2) by striking ‘‘more, and the term’’ and all that follows 

through the end of the subsection and inserting the following: 

‘‘more. 

‘‘(2) INCLUSIONS.—The term ‘cotton-producing State’ 

includes— 

‘‘(A) any combination of States described in paragraph 

(1); and 

‘‘(B) effective beginning with the 2008 crop of cotton, 

the States of Kansas, Virginia, and Florida.’’. 

SEC. 14203. GRANTS TO REDUCE PRODUCTION OF 

METHAMPHETAMINES FROM ANHYDROUS AMMONIA. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— 

(A) a producer of agricultural commodities; 

(B) a cooperative association, a majority of the members of which produce or process agricultural commodities; 

or 

(C) a person in the trade or business of— 

(i) selling an agricultural product (including an 

agricultural chemical) at retail, predominantly to 

farmers and ranchers; or 

(ii) aerial and ground application of an agricultural 

chemical. 

(2) NURSE TANK.—The term ‘‘nurse tank’’ shall be considered to be a cargo tank (within the meaning of section 

173.315(m) of title 49, Code of Federal Regulations, as in effect 

as of the date of the enactment of this Act). 

(b) GRANT AUTHORITY.—The Secretary may make a grant to 

an eligible entity to enable the eligible entity to obtain and add 

to an anhydrous ammonia fertilizer nurse tank a physical lock 

or a substance to reduce the amount of methamphetamine that 

can be produced from any anhydrous ammonia removed from the 

nurse tank. 

(c) GRANT AMOUNT.—The amount of a grant made under this 

section to an eligible entity shall be the product obtained by multiplying— (1) an amount not less than $40 and not more than $60, 

as determined by the Secretary; and 

(2) the number of fertilizer nurse tanks of the eligible 

entity. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to make grants under this 
H. R. 2419—537 

section $15,000,000 for the period of fiscal years 2008 through 

2012. 

SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND 

TRAINING OF AGRICULTURAL LABOR FORCE. 

(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 

‘‘eligible entity’’ means an entity described in section 379C(a) of 

the Consolidated Farm and Rural Development Act (7 U.S.C. 

2008q(a)). 

(b) GRANTS.— 

(1) IN GENERAL.—To assist agricultural employers and 

farmworkers by improving the supply, stability, safety, and 

training of the agricultural labor force, the Secretary may provide grants to eligible entities for use in providing services 

to assist farmworkers who are citizens or otherwise legally 

present in the United States in securing, retaining, upgrading, 

or returning from agricultural jobs. 

(2) ELIGIBLE SERVICES.—The services referred to in paragraph (1) include— 

(A) agricultural labor skills development; 

(B) the provision of agricultural labor market information; 

(C) transportation; 

(D) short-term housing while in transit to an agricultural worksite; 

(E) workplace literacy and assistance with English as 

a second language; 

(F) health and safety instruction, including ways of 

safeguarding the food supply of the United States; and 

(G) such other services as the Secretary determines 

to be appropriate. 

(c) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more than 

15 percent of the funds made available to carry out this section 

for a fiscal year may be used to pay for administrative expenses. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2008 through 2012. 

SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT 

OF 1978. 

Section 1113(k) of the Right to Financial Privacy Act of 1978 

(12 U.S.C. 3413(k)) is amended— 

(1) by striking the subsection heading and inserting the 

following: 

‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMINISTRATION OF

PROGRAMS OF CERTAIN GOVERNMENT AUTHORITIES.—’’; and 

(2) by striking paragraph (2) and inserting the following: 

‘‘(2) Nothing in this title shall apply to the disclosure by 

the financial institution of information contained in the financial records of any customer to any Government authority that 

certifies, disburses, or collects payments, where the disclosure 

of such information is necessary to, and such information is 

used solely for the purpose of— 

‘‘(A) verification of the identity of any person or proper 

routing and delivery of funds in connection with the 

issuance of a Federal payment or collection of funds by 

a Government authority; or 
H. R. 2419—538 

‘‘(B) the investigation or recovery of an improper Federal payment or collection of funds or an improperly negotiated Treasury check. 

‘‘(3) Notwithstanding any other provision of law, a request 

authorized by paragraph (1) or (2) (and the information contained therein) may be used by the financial institution or 

its agents solely for the purpose of providing information contained in the financial records of the customer to the Government authority requesting the information, and the financial 

institution and its agents shall be barred from redisclosure 

of such information. Any Government authority receiving 

information pursuant to paragraph (1) or (2) may not disclose 

or use the information, except for the purposes set forth in 

such paragraph.’’. 

SEC. 14206. REPORT ON STORED QUANTITIES OF PROPANE. 

(a) REPORT.— 

(1) IN GENERAL.—Not later than 240 days after the date 

of the enactment of this Act, the Secretary of Homeland Security (referred to in this section as the ‘‘Secretary’’) shall submit 

to the Committee on Agriculture, Nutrition, and Forestry of 

the Senate and the Committee on Agriculture of the House 

of Representatives a report describing the effect of interim 

or final regulations issued by the Secretary pursuant to section 

550(a) of the Department of Homeland Security Appropriations 

Act, 2007 (6 U.S.C. 121 note; Public Law 109–295), with respect 

to possession of quantities of propane that meet or exceed 

the screening threshold quantity for propane established in 

the final rule under that section. 

(2) INCLUSIONS.—The report under paragraph (1) shall 

include a description of— 

(A) the number of facilities that completed a top screen 

consequence assessment due to possession of quantities 

of propane that meet or exceed the listed screening 

threshold quantity for propane; 

(B) the number of agricultural facilities that completed 

the top screen consequence assessment due to possession 

of quantities of propane that meet or exceed the listed 

screening threshold quantity for propane; 

(C) the number of propane facilities initially determined to be high risk by the Secretary; 

(D) the number of propane facilities— 

(i) required to complete a security vulnerability 

assessment or a site security plan; or 

(ii) that submit to the Secretary an alternative 

security program; 

(E) the number of propane facilities that file an appeal 

of a finding under the final rule described in paragraph 

(1); and 

(F) to the extent available, the average cost of— 

(i) completing a top screen consequence assessment 

requirement; 

(ii) completing a security vulnerability assessment; 

and 

(iii) completing and implementing a site security 

plan; and 
H. R. 2419—539 

(3) FORM.—The report under paragraph (1) shall be submitted in unclassified form, but may include a classified annex. 

(b) EDUCATIONAL OUTREACH.—Not later than 30 days after 

the date of the enactment of this Act, the Secretary shall conduct 

educational outreach activities for rural facilities that may be 

required to complete a top screen consequence assessment due 

to possession of propane in a quantity that meets or exceeds the 

listed screening threshold quantity for propane. 

SEC. 14207. PROHIBITIONS ON DOG FIGHTING VENTURES. 

(a) IN GENERAL.—Section 26 of the Animal Welfare Act (7 

U.S.C. 2156) is amended— 

(1) in subsection (a)— 

(A) in paragraph (1), by striking ‘‘, if any animal in 

the venture was moved in interstate or foreign commerce’’; 

and 

(B) in the heading of paragraph (2), by striking ‘‘STATE’’ 

and inserting ‘‘STATE’’; 

(2) in subsection (b)— 

(A) by striking ‘‘(b) It shall be’’ and inserting the following: 

‘‘(b) BUYING, SELLING, DELIVERING, POSSESSING, TRAINING, OR

TRANSPORTING ANIMALS FOR PARTICIPATION IN ANIMAL FIGHTING

VENTURE.—It shall be’’; and 

(B) by striking ‘‘transport, deliver’’ and all that follows 

through ‘‘participate’’ and inserting ‘‘possess, train, transport, deliver, or receive any animal for purposes of having 

the animal participate’’; 

(3) in subsection (c)— 

(A) by striking ‘‘(c) It shall be’’ and inserting the following: 

‘‘(c) USE OF POSTAL SERVICE OR OTHER INTERSTATE INSTRUMENTALITY FOR PROMOTING OR FURTHERING ANIMAL FIGHTING VENTURE.—It shall be’’; and 

(B) by inserting ‘‘advertising an animal, or an 

instrument described in subsection (e), for use in an animal 

fighting venture,’’ after ‘‘for purposes of’’; 

(4) in subsection (d), by striking ‘‘(d) Notwithstanding’’ 

and inserting the following: 

‘‘(d) VIOLATION OF STATE LAW.—Notwithstanding’’; 

(5) in subsection (e), by striking ‘‘(e) It shall be’’ and 

inserting the following: 

‘‘(e) BUYING, SELLING, DELIVERING, OR TRANSPORTING SHARP

INSTRUMENTS FOR USE IN ANIMAL FIGHTING VENTURE.—It shall 

be’’; 

(6) in subsection (f)— 

(A) by striking ‘‘(f) The Secretary’’ and inserting the 

following: 

‘‘(f) INVESTIGATION OF VIOLATIONS BY SECRETARY; ASSISTANCE

BY OTHER FEDERAL AGENCIES; ISSUANCE OF SEARCH WARRANT; 

FORFEITURE; COSTS RECOVERABLE IN FORFEITURE OR CIVIL

ACTION.—The Secretary’’; and 

(B) in the last sentence— 

(i) by striking ‘‘by the United States’’; 

(ii) by inserting ‘‘(1)’’ after ‘‘owner of the animals’’; 

and 
H. R. 2419—540 

(iii) by striking ‘‘proceeding or in’’ and inserting 

‘‘proceeding, or (2) in’’; 

(7) in subsection (g)— 

(A) by striking ‘‘(g) For purposes of’’ and inserting 

the following: 

‘‘(g) DEFINITIONS.—In’’; 

(B) in paragraph (1), by striking ‘‘any event’’ and all 

that follows through ‘‘entertainment’’ and inserting ‘‘any 

event, in or affecting interstate or foreign commerce, that 

involves a fight conducted or to be conducted between 

at least 2 animals for purposes of sport, wagering, or entertainment,’’; 

(C) by striking paragraph (2); 

(D) in paragraph (5)— 

(i) by striking ‘‘dog or other’’; and 

(ii) by striking ‘‘; and’’ and inserting a period; 

and 

(E) by redesignating paragraphs (3) through (5) as 

paragraphs (2) through (4), respectively; 

(8) by redesignating subsections (h) and (i) as subsections 

(i) and (j), respectively; 

(9) in subsection (i) (as so redesignated), by striking ‘‘(i)(1) 

The provisions’’ and inserting the following: 

‘‘(i) CONFLICT WITH STATE LAW.— ‘‘(1) IN GENERAL.—The provisions’’; 

(10) in subsection (j) (as so redesignated), by striking ‘‘(j) 

The criminal’’ and inserting the following: 

‘‘(j) CRIMINAL PENALTIES.—The criminal’’; and 

(11) in subsection (g)(6), by striking ‘‘(6) the conduct’’ and 

inserting the following: 

‘‘(h) RELATIONSHIP TO OTHER PROVISIONS.—The conduct’’. 

(b) ENFORCEMENT OF ANIMAL FIGHTING PROHIBITIONS.—Section 

49 of title 18, United States Code, is amended by striking ‘‘3 

years’’ and inserting ‘‘5 years’’. 

SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY. 

(a) REPORT.— 

(1) REQUIREMENT.—Not later than September 30 of each 

year, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the 

Senate, a report on conferences sponsored or held by the 

Department of Agriculture or attended by employees of the 

Department of Agriculture. 

(2) CONTENTS.—Each report under paragraph (1) shall contain— 

(A) for each conference sponsored or held by the 

Department or attended by employees of the Department— 

(i) the name of the conference; 

(ii) the location of the conference; 

(iii) the number of Department of Agriculture 

employees attending the conference; and 

(iv) the costs (including travel expenses) relating 

to such conference; and 

(B) for each conference sponsored or held by the 

Department of Agriculture for which the Department 
H. R. 2419—541 

awarded a procurement contract, a description of the contracting procedures related to such conference. 

(3) EXCLUSIONS.—The requirement in paragraph (1) shall 

not apply to any conference— 

(A) for which the cost to the Federal Government was 

less than $10,000; or 

(B) outside of the United States that is attended by 

the Secretary or the Secretary’s designee as an official 

representative of the United States government. 

(b) AVAILABILITY OF REPORT.—Each report submitted in accordance with subsection (a) shall be posted in a searchable format 

on a Department of Agriculture website that is available to the 

public. 

(c) DEFINITION OF CONFERENCE.—In this section, the term ‘‘conference’’— 

(1) means a meeting that— 

(A) is held for consultation, education, awareness, or 

discussion; 

(B) includes participants from at least one agency of 

the Department of Agriculture; 

(C) is held in whole or in part at a facility outside 

of an agency of the Department of Agriculture; and 

(D) involves costs associated with travel and lodging 

for some participants; and 

(2) does not include any training program that is continuing 

education or a curriculum-based educational program, provided 

that such training program is held independent of a conference 

of a non-governmental organization. 

SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE 

ACT AMENDMENTS. 

(a) PAYMENT OF EXPENSES.—Section 17(d) of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136o(d)) is 

amended— 

(1) by striking ‘‘The Administrator’’ and inserting the following: 

‘‘(1) IN GENERAL.—The Administrator’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(2) DEPARTMENT OF STATE EXPENSES.—Any expenses 

incurred by an employee of the Environmental Protection 

Agency who participates in any international technical, economic, or policy review board, committee, or other official body 

that is meeting in relation to an international treaty shall 

be paid by the Department of State.’’. 

(b) CONTAINER RECYCLING.—Section 19(a) of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136q(a)) is amended 

by adding at the end the following new paragraph: 

‘‘(4) CONTAINER RECYCLING.—The Secretary may promulgate a regulation for the return and recycling of disposable 

pesticide containers used for the distribution or sale of registered pesticide products in interstate commerce. Any such 

regulation requiring recycling of disposable pesticide containers 

shall not apply to antimicrobial pesticides (as defined in section 

2) or other pesticide products intended for non-agricultural 

uses.’’. 
H. R. 2419—542 

SEC. 14210. IMPORTATION OF LIVE DOGS. 

(a) IN GENERAL.—The Animal Welfare Act is amended by 

adding after section 17 (7 U.S.C. 2147) the following: 

‘‘SEC. 18. IMPORTATION OF LIVE DOGS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) IMPORTER.—The term ‘importer’ means any person 

who, for purposes of resale, transports into the United States 

puppies from a foreign country. 

‘‘(2) RESALE.—The term ‘resale’ includes any transfer of 

ownership or control of an imported dog of less than 6 months 

of age to another person, for more than de minimis consideration. 

‘‘(b) REQUIREMENTS.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

no person shall import a dog into the United States for purposes 

of resale unless, as determined by the Secretary, the dog— 

‘‘(A) is in good health; 

‘‘(B) has received all necessary vaccinations; and 

‘‘(C) is at least 6 months of age, if imported for resale. 

‘‘(2) EXCEPTION.— ‘‘(A) IN GENERAL.—The Secretary, by regulation, shall 

provide an exception to any requirement under paragraph 

(1) in any case in which a dog is imported for— 

‘‘(i) research purposes; or 

‘‘(ii) veterinary treatment. 

‘‘(B) LAWFUL IMPORTATION INTO HAWAII.—Paragraph 

(1)(C) shall not apply to the lawful importation of a dog 

into the State of Hawaii from the British Isles, Australia, 

Guam, or New Zealand in compliance with the applicable 

regulations of the State of Hawaii and the other requirements of this section, if the dog is not transported out 

of the State of Hawaii for purposes of resale at less than 

6 months of age. 

‘‘(c) IMPLEMENTATION AND REGULATIONS.—The Secretary, the 

Secretary of Health and Human Services, the Secretary of Commerce, and the Secretary of Homeland Security shall promulgate 

such regulations as the Secretaries determine to be necessary to 

implement and enforce this section. 

‘‘(d) ENFORCEMENT.—An importer that fails to comply with 

this section shall— 

‘‘(1) be subject to penalties under section 19; and 

‘‘(2) provide for the care (including appropriate veterinary 

care), forfeiture, and adoption of each applicable dog, at the 

expense of the importer.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

takes effect on the date of the enactment of this Act. 

SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN 

DEPARTMENT OF AGRICULTURE PROGRAMS FOR 

FRAUD. 

(a) IN GENERAL.—Subject to subsection (b), the Secretary of 

Agriculture shall permanently debar an individual, organization, 

corporation, or other entity convicted of a felony for knowingly 

defrauding the United States in connection with any program 

administered by the Department of Agriculture from any subsequent participation in Department of Agriculture programs. 
H. R. 2419—543 

(b) EXCEPTIONS.— 

(1) SECRETARY DETERMINATION.—The Secretary may reduce 

a debarment under subsection (a) to a period of not less than 

10 years if the Secretary considers it appropriate. 

(2) FOOD ASSISTANCE.—A debarment under subsection (a) 

shall not apply with respect to participation in domestic food 

assistance programs (as defined by the Secretary). 

SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY 

OFFICES FOR THE FARM SERVICE AGENCY. 

(a) TEMPORARY PROHIBITION.— 

(1) IN GENERAL.—Subject to paragraph (2), until the date 

that is two years after the date of the enactment of this Act, 

the Secretary of Agriculture may not close or relocate a county 

or field office of the Farm Service Agency. 

(2) EXCEPTION.—Paragraph (1) shall not apply to— 

(A) an office that is located not more than 20 miles 

from another office of the Farm Service Agency; or 

(B) the relocation of an office within the same county 

in the course of routine leasing operations. 

(b) LIMITATION ON CLOSURE; NOTICE.— 

(1) LIMITATION.—After the period referred to in subsection 

(a)(1), the Secretary shall, before closing any office of the Farm 

Service Agency that is located more than 20 miles from another 

office of the Farm Service Agency, to the maximum extent 

practicable, first close any offices of the Farm Service Agency 

that— 

(A) are located less than 20 miles from another office 

of the Farm Service Agency; and 

(B) have two or fewer permanent full-time employees. 

(2) NOTICE.—After the period referred to in subsection 

(a)(1), the Secretary of Agriculture may not close a county 

or field office of the Farm Service Agency unless— 

(A) not later than 30 days after the Secretary proposes 

to close such office, the Secretary holds a public meeting 

regarding the proposed closure in the county in which 

such office is located; and 

(B) after the public meeting referred to in subparagraph (A), but not less than 90 days before the date on 

which the Secretary approves the closure of such office, 

the Secretary notifies the Committee on Agriculture and 

the Committee on Appropriations of the House of Representatives, the Committee on Agriculture, Nutrition, and 

Forestry and the Committee on Appropriations of the 

Senate, each Senator representing the State in which the 

office proposed to be closed is located, and the member 

of the House of Representatives who represents the 

Congressional district in which the office proposed to be 

closed is located of the proposed closure of such office. 

SEC. 14213. USDA GRADUATE SCHOOL. 

(a) IN GENERAL.—Section 921 of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is amended— 

(1) in the heading, to read as follows: 
H. R. 2419—544 

‘‘SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING, 

AND PROFESSIONAL DEVELOPMENT ACTIVITIES.’’; and 

(2) by striking subsection (b) and inserting the following 

new subsection: 

‘‘(b) OPERATION AS NONAPPROPRIATED FUND INSTRUMENTALITY.— 

‘‘(1) CEASE OPERATIONS.—Not later than October 1, 2009, 

the Secretary of Agriculture shall cease to maintain or operate 

a nonappropriated fund instrumentality of the United States 

to develop, administer, or provide educational training and 

professional development activities, including educational 

activities for Federal agencies, Federal employees, non-profit 

organizations, other entities, and members of the general 

public. 

‘‘(2) TRANSITION.— ‘‘(A) IN GENERAL.—The Secretary of Agriculture is 

authorized to use funds available to the Department of 

Agriculture and such resources of the Department as the 

Secretary considers appropriate (including the assignment 

of such employees of the Department as the Secretary 

considers appropriate) to assist the General Administrative 

Board of the Graduate School in the conversion of the 

Graduate School to an entity that is non-governmental 

and not a nonappropriated fund instrumentality of the 

United States, including such privatization activities not 

otherwise inconsistent with law or regulation. 

‘‘(B) TERMINATION OF AUTHORITY.—The authority under 

paragraph (1) shall terminate on the earlier of— 

‘‘(i) the completion of the transition of the Graduate 

School to an entity that is non-governmental and not 

a nonappropriated fund instrumentality of the United 

States, as determined by the Secretary; or 

‘‘(ii) September 30, 2009.’’. 

(b) PROCUREMENT PROCEDURES.—Notwithstanding the amendments made by subsection (a), effective on the date of the enactment 

of this Act, the Graduate School of the Department of Agriculture 

shall be subject to Federal procurement laws and regulations in 

the same manner and subject to the same requirements as a private 

entity providing services to the Federal Government. 

SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT. 

Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b)) 

is amended in the first sentence by striking ‘‘not more than $2,500 

for each such violation’’ and inserting ‘‘not more than $10,000 

for each such violation’’. 

SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM. 

Section 1324(c)(2) of the Food Security Act of 1985 (7 U.S.C. 

1631(c)(2)) is amended— 

(1) in subparagraph (C)(ii)(II), by inserting after ‘‘such 

debtors’’ the following: ‘‘, except that the numerical list containing social security or taxpayer identification numbers may 

be encrypted for security purposes if the Secretary of State 

provides a method by which an effective search of the encrypted 

numbers may be conducted to determine whether the farm 

product at issue is subject to 1 or more liens’’; and 

(2) in subparagraph (E)— 
H. R. 2419—545 

(A) by striking ‘‘paragraph (C)’’ and inserting ‘‘subparagraph (C)’’; and 

(B) by inserting before the semicolon at the end the 

following: ‘‘except that— 

‘‘(i) the distribution of the portion of the master 

list may be in electronic, written, or printed form; 

and 

‘‘(ii) if social security or taxpayer identification 

numbers on the master list are encrypted, the Secretary of State may distribute the master list only— 

‘‘(I) by compact disc or other electronic media 

that contains— 

‘‘(aa) the recorded list of debtor names; 

and 

‘‘(bb) an encryption program that enables 

the buyer, commission merchant, and selling 

agent to enter a social security number for 

matching against the recorded list of encrypted 

social security or taxpayer identification numbers; and 

‘‘(II) on the written request of the buyer, 

commission merchant, or selling agent, by paper 

copy of the list to the requestor’’. 

SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF 

STUDY ON USE OF CATS AND DOGS IN FEDERAL 

RESEARCH. 

(a) IN GENERAL.—The Secretary of Agriculture shall— 

(1) review— 

(A) any independent reviews conducted by a nationally 

recognized panel of experts of the use of Class B dogs 

and cats in federally supported research to determine how 

frequently such dogs and cats are used in research by 

the National Institutes of Health; and 

(B) any recommendations proposed by such panel outlining the parameters of such use; and 

(2) submit to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on how recommendations referred to in paragraph (1)(B) can be applied within 

the Department of Agriculture to ensure such dogs and cats 

are treated in accordance with regulations of the Department 

of Agriculture. 

(b) CLASS B DOGS AND CATS DEFINED.—In this section, the 

term ‘‘Class B dogs and cats’’ means dogs and cats obtained from 

a Class ‘‘B’’ licensee, as such term is defined in section 1.1 of 

title 9, Code of Federal Regulations. 

SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT. 

(a) IN GENERAL.—Title 40, United States Code, is amended— 

(1) by redesignating subtitle V as subtitle VI; and 

(2) by inserting after subtitle IV the following: 
H. R. 2419—546 

‘‘Subtitle V—Regional Economic and 

Infrastructure Development 

‘‘Chapter ..................................................................................................................

‘‘151. GENERAL PROVISIONS ............................................................................ 15101 

‘‘153. REGIONAL COMMISSIONS ...................................................................... 15301 

‘‘155. FINANCIAL ASSISTANCE ......................................................................... 15501 

‘‘157. ADMINISTRATIVE PROVISIONS ............................................................. 15701 

‘‘CHAPTER 1—GENERAL PROVISIONS 

‘‘Sec. 

‘‘15101. Definitions. 

‘‘§ 15101. Definitions 

‘‘In this subtitle, the following definitions apply: 

‘‘(1) COMMISSION.—The term ‘Commission’ means a 

Commission established under section 15301. 

‘‘(2) LOCAL DEVELOPMENT DISTRICT.—The term ‘local 

development district’ means an entity that— 

‘‘(A)(i) is an economic development district that is— 

‘‘(I) in existence on the date of the enactment of 

this chapter; and 

‘‘(II) located in the region; or 

‘‘(ii) if an entity described in clause (i) does not exist— 

‘‘(I) is organized and operated in a manner that 

ensures broad-based community participation and an 

effective opportunity for local officials, community 

leaders, and the public to contribute to the development 

and implementation of programs in the region; 

‘‘(II) is governed by a policy board with at least 

a simple majority of members consisting of— 

‘‘(aa) elected officials; or 

‘‘(bb) designees or employees of a general purpose unit of local government that have been 

appointed to represent the unit of local government; and 

‘‘(III) is certified by the Governor or appropriate 

State officer as having a charter or authority that 

includes the economic development of counties, portions of counties, or other political subdivisions within 

the region; and 

‘‘(B) has not, as certified by the Federal Cochairperson— 

‘‘(i) inappropriately used Federal grant funds from 

any Federal source; or 

‘‘(ii) appointed an officer who, during the period 

in which another entity inappropriately used Federal 

grant funds from any Federal source, was an officer 

of the other entity. 

‘‘(3) FEDERAL GRANT PROGRAM.—The term ‘Federal grant 

program’ means a Federal grant program to provide assistance 

in carrying out economic and community development activities. 

‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 

given the term in section 4 of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b). 
H. R. 2419—547 

‘‘(5) NONPROFIT ENTITY.—The term ‘nonprofit entity’ means 

any organization described in section 501(c) of the Internal 

Revenue Code of 1986 and exempt from taxation under 501(a) 

of that Code that has been formed for the purpose of economic 

development. 

‘‘(6) REGION.—The term ‘region’ means the area covered 

by a Commission as described in subchapter II of chapter 

157. 

‘‘CHAPTER 2—REGIONAL COMMISSIONS 

‘‘Sec. 

‘‘15301. Establishment, membership, and employees. 

‘‘15302. Decisions. 

‘‘15303. Functions. 

‘‘15304. Administrative powers and expenses. 

‘‘15305. Meetings. 

‘‘15306. Personal financial interests. 

‘‘15307. Tribal participation. 

‘‘15308. Annual report. 

‘‘§ 15301. Establishment, membership, and employees 

‘‘(a) ESTABLISHMENT.—There are established the following 

regional Commissions: 

‘‘(1) The Southeast Crescent Regional Commission. 

‘‘(2) The Southwest Border Regional Commission. 

‘‘(3) The Northern Border Regional Commission. 

‘‘(b) MEMBERSHIP.— ‘‘(1) FEDERAL AND STATE MEMBERS.—Each Commission 

shall be composed of the following members: 

‘‘(A) A Federal Cochairperson, to be appointed by the 

President, by and with the advice and consent of the 

Senate. 

‘‘(B) The Governor of each participating State in the 

region of the Commission. 

‘‘(2) ALTERNATE MEMBERS.— ‘‘(A) ALTERNATE FEDERAL COCHAIRPERSON.—The President shall appoint an alternate Federal Cochairperson for 

each Commission. The alternate Federal Cochairperson, 

when not actively serving as an alternate for the Federal 

Cochairperson, shall perform such functions and duties 

as are delegated by the Federal Cochairperson. 

‘‘(B) STATE ALTERNATES.—The State member of a 

participating State may have a single alternate, who shall 

be appointed by the Governor of the State from among 

the members of the Governor’s cabinet or personal staff. 

‘‘(C) VOTING.—An alternate member shall vote in the 

case of the absence, death, disability, removal, or resignation of the Federal or State member for which the alternate 

member is an alternate. 

‘‘(3) COCHAIRPERSONS.—A Commission shall be headed by— 

‘‘(A) the Federal Cochairperson, who shall serve as 

a liaison between the Federal Government and the 

Commission; and 

‘‘(B) a State Cochairperson, who shall be a Governor 

of a participating State in the region and shall be elected 

by the State members for a term of not less than 1 year. 

‘‘(4) CONSECUTIVE TERMS.—A State member may not be 

elected to serve as State Cochairperson for more than 2 consecutive terms. 
H. R. 2419—548 

‘‘(c) COMPENSATION.— 

‘‘(1) FEDERAL COCHAIRPERSONS.—Each Federal Cochairperson shall be compensated by the Federal Government at 

level III of the Executive Schedule as set out in section 5314 

of title 5. 

‘‘(2) ALTERNATE FEDERAL COCHAIRPERSONS.—Each Federal 

Cochairperson’s alternate shall be compensated by the Federal 

Government at level V of the Executive Schedule as set out 

in section 5316 of title 5. 

‘‘(3) STATE MEMBERS AND ALTERNATES.—Each State 

member and alternate shall be compensated by the State that 

they represent at the rate established by the laws of that 

State. 

‘‘(d) EXECUTIVE DIRECTOR AND STAFF.— ‘‘(1) IN GENERAL.—A Commission shall appoint and fix the 

compensation of an executive director and such other personnel 

as are necessary to enable the Commission to carry out its 

duties. Compensation under this paragraph may not exceed 

the maximum rate of basic pay established for the Senior 

Executive Service under section 5382 of title 5, including any 

applicable locality-based comparability payment that may be 

authorized under section 5304(h)(2)(C) of that title. 

‘‘(2) EXECUTIVE DIRECTOR.—The executive director shall be 

responsible for carrying out the administrative duties of the 

Commission, directing the Commission staff, and such other 

duties as the Commission may assign. 

‘‘(e) NO FEDERAL EMPLOYEE STATUS.—No member, alternate, 

officer, or employee of a Commission (other than the Federal 

Cochairperson, the alternate Federal Cochairperson, staff of the 

Federal Cochairperson, and any Federal employee detailed to the 

Commission) shall be considered to be a Federal employee for 

any purpose. 

‘‘§ 15302. Decisions 

‘‘(a) REQUIREMENTS FOR APPROVAL.—Except as provided in section 15304(c)(3), decisions by the Commission shall require the 

affirmative vote of the Federal Cochairperson and a majority of 

the State members (exclusive of members representing States delinquent under section 15304(c)(3)(C)). 

‘‘(b) CONSULTATION.—In matters coming before the Commission, 

the Federal Cochairperson shall, to the extent practicable, consult 

with the Federal departments and agencies having an interest 

in the subject matter. 

‘‘(c) QUORUMS.—A Commission shall determine what constitutes 

a quorum for Commission meetings; except that— 

‘‘(1) any quorum shall include the Federal Cochairperson 

or the alternate Federal Cochairperson; and 

‘‘(2) a State alternate member shall not be counted toward 

the establishment of a quorum. 

‘‘(d) PROJECTS AND GRANT PROPOSALS.—The approval of project 

and grant proposals shall be a responsibility of each Commission 

and shall be carried out in accordance with section 15503. 

‘‘§ 15303. Functions 

‘‘A Commission shall— 

‘‘(1) assess the needs and assets of its region based on 

available research, demonstration projects, investigations, 
H. R. 2419—549 

assessments, and evaluations of the region prepared by Federal, 

State, and local agencies, universities, local development districts, and other nonprofit groups; 

‘‘(2) develop, on a continuing basis, comprehensive and 

coordinated economic and infrastructure development strategies 

to establish priorities and approve grants for the economic 

development of its region, giving due consideration to other 

Federal, State, and local planning and development activities 

in the region; 

‘‘(3) not later than one year after the date of the enactment 

of this section, and after taking into account State plans developed under section 15502, establish priorities in an economic 

and infrastructure development plan for its region, including 

5-year regional outcome targets; 

‘‘(4)(A) enhance the capacity of, and provide support for, 

local development districts in its region; or 

‘‘(B) if no local development district exists in an area in 

a participating State in the region, foster the creation of a 

local development district; 

‘‘(5) encourage private investment in industrial, commercial, and other economic development projects in its region; 

‘‘(6) cooperate with and assist State governments with the 

preparation of economic and infrastructure development plans 

and programs for participating States; 

‘‘(7) formulate and recommend to the Governors and legislatures of States that participate in the Commission forms of 

interstate cooperation and, where appropriate, international 

cooperation; and 

‘‘(8) work with State and local agencies in developing appropriate model legislation to enhance local and regional economic 

development. 

‘‘§ 15304. Administrative powers and expenses 

‘‘(a) POWERS.—In carrying out its duties under this subtitle, 

a Commission may— 

‘‘(1) hold such hearings, sit and act at such times and 

places, take such testimony, receive such evidence, and print 

or otherwise reproduce and distribute a description of the proceedings and reports on actions by the Commission as the 

Commission considers appropriate; 

‘‘(2) authorize, through the Federal or State Cochairperson 

or any other member of the Commission designated by the 

Commission, the administration of oaths if the Commission 

determines that testimony should be taken or evidence received 

under oath; 

‘‘(3) request from any Federal, State, or local agency such 

information as may be available to or procurable by the agency 

that may be of use to the Commission in carrying out the 

duties of the Commission; 

‘‘(4) adopt, amend, and repeal bylaws and rules governing 

the conduct of business and the performance of duties by the 

Commission; 

‘‘(5) request the head of any Federal agency, State agency, 

or local government to detail to the Commission such personnel 

as the Commission requires to carry out its duties, each such 

detail to be without loss of seniority, pay, or other employee 

status; 
H. R. 2419—550 

‘‘(6) provide for coverage of Commission employees in a 

suitable retirement and employee benefit system by making 

arrangements or entering into contracts with any participating 

State government or otherwise providing retirement and other 

employee coverage; 

‘‘(7) accept, use, and dispose of gifts or donations or services 

or real, personal, tangible, or intangible property; 

‘‘(8) enter into and perform such contracts, cooperative 

agreements, or other transactions as are necessary to carry 

out Commission duties, including any contracts or cooperative 

agreements with a department, agency, or instrumentality of 

the United States, a State (including a political subdivision, 

agency, or instrumentality of the State), or a person, firm, 

association, or corporation; and 

‘‘(9) maintain a government relations office in the District 

of Columbia and establish and maintain a central office at 

such location in its region as the Commission may select. 

‘‘(b) FEDERAL AGENCY COOPERATION.—A Federal agency shall— 

‘‘(1) cooperate with a Commission; and 

‘‘(2) provide, to the extent practicable, on request of the 

Federal Cochairperson, appropriate assistance in carrying out 

this subtitle, in accordance with applicable Federal laws 

(including regulations). 

‘‘(c) ADMINISTRATIVE EXPENSES.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), the administrative expenses of a Commission shall be paid— 

‘‘(A) by the Federal Government, in an amount equal 

to 50 percent of the administrative expenses of the Commission; and 

‘‘(B) by the States participating in the Commission, 

in an amount equal to 50 percent of the administrative 

expenses. 

‘‘(2) EXPENSES OF THE FEDERAL COCHAIRPERSON.—All 

expenses of the Federal Cochairperson, including expenses of 

the alternate and staff of the Federal Cochairperson, shall 

be paid by the Federal Government. 

‘‘(3) STATE SHARE.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

share of administrative expenses of a Commission to be 

paid by each State of the Commission shall be determined 

by a unanimous vote of the State members of the Commission. 

‘‘(B) NO FEDERAL PARTICIPATION.—The Federal 

Cochairperson shall not participate or vote in any decision 

under subparagraph (A). 

‘‘(C) DELINQUENT STATES.—During any period in which 

a State is more than 1 year delinquent in payment of 

the State’s share of administrative expenses of the Commission under this subsection— 

‘‘(i) no assistance under this subtitle shall be provided to the State (including assistance to a political 

subdivision or a resident of the State) for any project 

not approved as of the date of the commencement 

of the delinquency; and 

‘‘(ii) no member of the Commission from the State 

shall participate or vote in any action by the Commission. 
H. R. 2419—551 

‘‘(4) EFFECT ON ASSISTANCE.—A State’s share of administrative expenses of a Commission under this subsection shall 

not be taken into consideration when determining the amount 

of assistance provided to the State under this subtitle. 

‘‘§ 15305. Meetings 

‘‘(a) INITIAL MEETING.—Each Commission shall hold an initial 

meeting not later than 180 days after the date of the enactment 

of this section. 

‘‘(b) ANNUAL MEETING.—Each Commission shall conduct at 

least 1 meeting each year with the Federal Cochairperson and 

at least a majority of the State members present. 

‘‘(c) ADDITIONAL MEETINGS.—Each Commission shall conduct 

additional meetings at such times as it determines and may conduct 

such meetings by electronic means. 

‘‘§ 15306. Personal financial interests 

‘‘(a) CONFLICTS OF INTEREST.— 

‘‘(1) NO ROLE ALLOWED.—Except as permitted by paragraph 

(2), an individual who is a State member or alternate, or 

an officer or employee of a Commission, shall not participate 

personally and substantially as a member, alternate, officer, 

or employee of the Commission, through decision, approval, 

disapproval, recommendation, request for a ruling, or other 

determination, contract, claim, controversy, or other matter 

in which, to the individual’s knowledge, any of the following 

has a financial interest: 

‘‘(A) The individual. 

‘‘(B) The individual’s spouse, minor child, or partner. 

‘‘(C) An organization (except a State or political subdivision of a State) in which the individual is serving as an 

officer, director, trustee, partner, or employee. 

‘‘(D) Any person or organization with whom the individual is negotiating or has any arrangement concerning 

prospective employment. 

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply if the individual, in advance of the proceeding, application, request for 

a ruling or other determination, contract, claim controversy, 

or other particular matter presenting a potential conflict of 

interest— 

‘‘(A) advises the Commission of the nature and circumstances of the matter presenting the conflict of interest; 

‘‘(B) makes full disclosure of the financial interest; 

and 

‘‘(C) receives a written decision of the Commission 

that the interest is not so substantial as to be considered 

likely to affect the integrity of the services that the 

Commission may expect from the individual. 

‘‘(3) VIOLATION.—An individual violating this subsection 

shall be fined under title 18, imprisoned for not more than 

1 year, or both. 

‘‘(b) STATE MEMBER OR ALTERNATE.—A State member or alternate member may not receive any salary, or any contribution to, 

or supplementation of, salary, for services on a Commission from 

a source other than the State of the member or alternate. 

‘‘(c) DETAILED EMPLOYEES.— 
H. R. 2419—552 

‘‘(1) IN GENERAL.—No person detailed to serve a Commission shall receive any salary, or any contribution to, or 

supplementation of, salary, for services provided to the Commission from any source other than the State, local, or intergovernmental department or agency from which the person was 

detailed to the Commission. 

‘‘(2) VIOLATION.—Any person that violates this subsection 

shall be fined under title 18, imprisoned not more than 1 

year, or both. 

‘‘(d) FEDERAL COCHAIRMAN, ALTERNATE TO FEDERAL COCHAIR- MAN, AND FEDERAL OFFICERS AND EMPLOYEES.—The Federal 

Cochairman, the alternate to the Federal Cochairman, and any 

Federal officer or employee detailed to duty with the Commission 

are not subject to this section but remain subject to sections 202 

through 209 of title 18. 

‘‘(e) RESCISSION.—A Commission may declare void any contract, 

loan, or grant of or by the Commission in relation to which the 

Commission determines that there has been a violation of any 

provision under subsection (a)(1), (b), or (c), or any of the provisions 

of sections 202 through 209 of title 18. 

‘‘§ 15307. Tribal participation 

‘‘Governments of Indian tribes in the region of the Southwest 

Border Regional Commission shall be allowed to participate in 

matters before that Commission in the same manner and to the 

same extent as State agencies and instrumentalities in the region. 

‘‘§ 15308. Annual report 

‘‘(a) IN GENERAL.—Not later than 90 days after the last day 

of each fiscal year, each Commission shall submit to the President 

and Congress a report on the activities carried out by the Commission under this subtitle in the fiscal year. 

‘‘(b) CONTENTS.—The report shall include— 

‘‘(1) a description of the criteria used by the Commission 

to designate counties under section 15702 and a list of the 

counties designated in each category; 

‘‘(2) an evaluation of the progress of the Commission in 

meeting the goals identified in the Commission’s economic and 

infrastructure development plan under section 15303 and State 

economic and infrastructure development plans under section 

15502; and 

‘‘(3) any policy recommendations approved by the Commission. 

‘‘CHAPTER 3—FINANCIAL ASSISTANCE 

‘‘Sec. 

‘‘15501. Economic and infrastructure development grants. 

‘‘15502. Comprehensive economic and infrastructure development plans. 

‘‘15503. Approval of applications for assistance. 

‘‘15504. Program development criteria. 

‘‘15505. Local development districts and organizations. 

‘‘15506. Supplements to Federal grant programs. 

‘‘§ 15501. Economic and infrastructure development grants 

‘‘(a) IN GENERAL.—A Commission may make grants to States 

and local governments, Indian tribes, and public and nonprofit 

organizations for projects, approved in accordance with section 

15503— 
H. R. 2419—553 

‘‘(1) to develop the transportation infrastructure of its 

region; 

‘‘(2) to develop the basic public infrastructure of its region; 

‘‘(3) to develop the telecommunications infrastructure of 

its region; 

‘‘(4) to assist its region in obtaining job skills training, 

skills development and employment-related education, 

entrepreneurship, technology, and business development; 

‘‘(5) to provide assistance to severely economically distressed and underdeveloped areas of its region that lack financial resources for improving basic health care and other public 

services; 

‘‘(6) to promote resource conservation, tourism, recreation, 

and preservation of open space in a manner consistent with 

economic development goals; 

‘‘(7) to promote the development of renewable and alternative energy sources; and 

‘‘(8) to otherwise achieve the purposes of this subtitle. 

‘‘(b) ALLOCATION OF FUNDS.—A Commission shall allocate at 

least 40 percent of any grant amounts provided by the Commission 

in a fiscal year for projects described in paragraphs (1) through 

(3) of subsection (a). 

‘‘(c) SOURCES OF GRANTS.—Grant amounts may be provided 

entirely from appropriations to carry out this subtitle, in combination with amounts available under other Federal grant programs, 

or from any other source. 

‘‘(d) MAXIMUM COMMISSION CONTRIBUTIONS.— 

‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), the 

Commission may contribute not more than 50 percent of a 

project or activity cost eligible for financial assistance under 

this section from amounts appropriated to carry out this subtitle. 

‘‘(2) DISTRESSED COUNTIES.—The maximum Commission 

contribution for a project or activity to be carried out in a 

county for which a distressed county designation is in effect 

under section 15702 may be increased to 80 percent. 

‘‘(3) SPECIAL RULE FOR REGIONAL PROJECTS.—A Commission 

may increase to 60 percent under paragraph (1) and 90 percent 

under paragraph (2) the maximum Commission contribution 

for a project or activity if— 

‘‘(A) the project or activity involves 3 or more counties 

or more than one State; and 

‘‘(B) the Commission determines in accordance with 

section 15302(a) that the project or activity will bring 

significant interstate or multicounty benefits to a region. 

‘‘(e) MAINTENANCE OF EFFORT.—Funds may be provided by 

a Commission for a program or project in a State under this 

section only if the Commission determines that the level of Federal 

or State financial assistance provided under a law other than this 

subtitle, for the same type of program or project in the same 

area of the State within region, will not be reduced as a result 

of funds made available by this subtitle. 

‘‘(f) NO RELOCATION ASSISTANCE.—Financial assistance authorized by this section may not be used to assist a person or entity 

in relocating from one area to another. 
H. R. 2419—554 

‘‘§ 15502. Comprehensive economic and infrastructure 

development plans 

‘‘(a) STATE PLANS.—In accordance with policies established by 

a Commission, each State member of the Commission shall submit 

a comprehensive economic and infrastructure development plan 

for the area of the region represented by the State member. 

‘‘(b) CONTENT OF PLAN.—A State economic and infrastructure 

development plan shall reflect the goals, objectives, and priorities 

identified in any applicable economic and infrastructure development plan developed by a Commission under section 15303. 

‘‘(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In carrying out the development planning process (including the selection 

of programs and projects for assistance), a State shall— 

‘‘(1) consult with local development districts, local units 

of government, and local colleges and universities; and 

‘‘(2) take into consideration the goals, objectives, priorities, 

and recommendations of the entities described in paragraph 

(1). 

‘‘(d) PUBLIC PARTICIPATION.— ‘‘(1) IN GENERAL.—A Commission and applicable State and 

local development districts shall encourage and assist, to the 

maximum extent practicable, public participation in the 

development, revision, and implementation of all plans and 

programs under this subtitle. 

‘‘(2) GUIDELINES.—A Commission shall develop guidelines 

for providing public participation, including public hearings. 

‘‘§ 15503. Approval of applications for assistance 

‘‘(a) EVALUATION BY STATE MEMBER.—An application to a 

Commission for a grant or any other assistance for a project under 

this subtitle shall be made through, and evaluated for approval 

by, the State member of the Commission representing the applicant. 

‘‘(b) CERTIFICATION.—An application to a Commission for a 

grant or other assistance for a project under this subtitle shall 

be eligible for assistance only on certification by the State member 

of the Commission representing the applicant that the application 

for the project— 

‘‘(1) describes ways in which the project complies with 

any applicable State economic and infrastructure development 

plan; 

‘‘(2) meets applicable criteria under section 15504; 

‘‘(3) adequately ensures that the project will be properly 

administered, operated, and maintained; and 

‘‘(4) otherwise meets the requirements for assistance under 

this subtitle. 

‘‘(c) VOTES FOR DECISIONS.—On certification by a State member 

of a Commission of an application for a grant or other assistance 

for a specific project under this section, an affirmative vote of 

the Commission under section 15302 shall be required for approval 

of the application. 

‘‘§ 15504. Program development criteria 

‘‘In considering programs and projects to be provided assistance 

by a Commission under this subtitle, and in establishing a priority 

ranking of the requests for assistance provided to the Commission, 

the Commission shall follow procedures that ensure, to the maximum extent practicable, consideration of— 
H. R. 2419—555 

‘‘(1) the relationship of the project or class of projects to 

overall regional development; 

‘‘(2) the per capita income and poverty and unemployment 

and outmigration rates in an area; 

‘‘(3) the financial resources available to the applicants for 

assistance seeking to carry out the project, with emphasis on 

ensuring that projects are adequately financed to maximize 

the probability of successful economic development; 

‘‘(4) the importance of the project or class of projects in 

relation to the other projects or classes of projects that may 

be in competition for the same funds; 

‘‘(5) the prospects that the project for which assistance 

is sought will improve, on a continuing rather than a temporary 

basis, the opportunities for employment, the average level of 

income, or the economic development of the area to be served 

by the project; and 

‘‘(6) the extent to which the project design provides for 

detailed outcome measurements by which grant expenditures 

and the results of the expenditures may be evaluated. 

‘‘§ 15505. Local development districts and organizations 

‘‘(a) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—Subject to 

the requirements of this section, a Commission may make grants 

to a local development district to assist in the payment of development planning and administrative expenses. 

‘‘(b) CONDITIONS FOR GRANTS.— ‘‘(1) MAXIMUM AMOUNT.—The amount of a grant awarded 

under this section may not exceed 80 percent of the administrative and planning expenses of the local development district 

receiving the grant. 

‘‘(2) MAXIMUM PERIOD FOR STATE AGENCIES.—In the case 

of a State agency certified as a local development district, 

a grant may not be awarded to the agency under this section 

for more than 3 fiscal years. 

‘‘(3) LOCAL SHARE.—The contributions of a local development district for administrative expenses may be in cash or 

in kind, fairly evaluated, including space, equipment, and services. 

‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—A local 

development district shall— 

‘‘(1) operate as a lead organization serving multicounty 

areas in the region at the local level; 

‘‘(2) assist the Commission in carrying out outreach activities for local governments, community development groups, the 

business community, and the public; 

‘‘(3) serve as a liaison between State and local governments, 

nonprofit organizations (including community-based groups and 

educational institutions), the business community, and citizens; 

and 

‘‘(4) assist the individuals and entities described in paragraph (3) in identifying, assessing, and facilitating projects 

and programs to promote the economic development of the 

region. 

‘‘§ 15506. Supplements to Federal grant programs 

‘‘(a) FINDING.—Congress finds that certain States and local 

communities of the region, including local development districts, 
H. R. 2419—556 

may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because— 

‘‘(1) they lack the economic resources to provide the 

required matching share; or 

‘‘(2) there are insufficient funds available under the 

applicable Federal law with respect to a project to be carried 

out in the region. 

‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—A Commission, with 

the approval of the Federal Cochairperson, may use amounts made 

available to carry out this subtitle— 

‘‘(1) for any part of the basic Federal contribution to projects 

or activities under the Federal grant programs authorized by 

Federal laws; and 

‘‘(2) to increase the Federal contribution to projects and 

activities under the programs above the fixed maximum part 

of the cost of the projects or activities otherwise authorized 

by the applicable law. 

‘‘(c) CERTIFICATION REQUIRED.—For a program, project, or 

activity for which any part of the basic Federal contribution to 

the project or activity under a Federal grant program is proposed 

to be made under subsection (b), the Federal contribution shall 

not be made until the responsible Federal official administering 

the Federal law authorizing the Federal contribution certifies that 

the program, project, or activity meets the applicable requirements 

of the Federal law and could be approved for Federal contribution 

under that law if amounts were available under the law for the 

program, project, or activity. 

‘‘(d) LIMITATIONS IN OTHER LAWS INAPPLICABLE.—Amounts provided pursuant to this subtitle are available without regard to 

any limitations on areas eligible for assistance or authorizations 

for appropriation in any other law. 

‘‘(e) FEDERAL SHARE.—The Federal share of the cost of a project 

or activity receiving assistance under this section shall not exceed 

80 percent. 

‘‘(f) MAXIMUM COMMISSION CONTRIBUTION.—Section 15501(d), 

relating to limitations on Commission contributions, shall apply 

to a program, project, or activity receiving assistance under this 

section. 

‘‘CHAPTER 4—ADMINISTRATIVE PROVISIONS 

‘‘SUBCHAPTER I—GENERAL PROVISIONS

‘‘Sec. 15701. Consent of States. 

‘‘Sec. 15702. Distressed counties and areas. 

‘‘Sec. 15703. Counties eligible for assistance in more than one region. 

‘‘Sec. 15704. Inspector General; records. 

‘‘Sec. 15705. Biannual meetings of representatives of all Commissions. 

‘‘SUBCHAPTER II—DESIGNATION OF REGIONS

‘‘Sec. 15731. Southeast Crescent Regional Commission. 

‘‘Sec. 15732. Southwest Border Regional Commission. 

‘‘Sec. 15733. Northern Border Regional Commission. 

‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS

‘‘Sec. 15751. Authorization of appropriations. 
H. R. 2419—557 

‘‘SUBCHAPTER I—GENERAL PROVISIONS 

‘‘§ 15701. Consent of States 

‘‘This subtitle does not require a State to engage in or accept 

a program under this subtitle without its consent. 

‘‘§ 15702. Distressed counties and areas 

‘‘(a) DESIGNATIONS.—Not later than 90 days after the date 

of the enactment of this section, and annually thereafter, each 

Commission shall make the following designations: 

‘‘(1) DISTRESSED COUNTIES.—The Commission shall designate as distressed counties those counties in its region that 

are the most severely and persistently economically distressed 

and underdeveloped and have high rates of poverty, unemployment, or outmigration. 

‘‘(2) TRANSITIONAL COUNTIES.—The Commission shall designate as transitional counties those counties in its region that 

are economically distressed and underdeveloped or have 

recently suffered high rates of poverty, unemployment, or outmigration. 

‘‘(3) ATTAINMENT COUNTIES.—The Commission shall designate as attainment counties, those counties in its region 

that are not designated as distressed or transitional counties 

under this subsection. 

‘‘(4) ISOLATED AREAS OF DISTRESS.—The Commission shall 

designate as isolated areas of distress, areas located in counties 

designated as attainment counties under paragraph (3) that 

have high rates of poverty, unemployment, or outmigration. 

‘‘(b) ALLOCATION.—A Commission shall allocate at least 50 percent of the appropriations made available to the Commission to 

carry out this subtitle for programs and projects designed to serve 

the needs of distressed counties and isolated areas of distress in 

the region. 

‘‘(c) ATTAINMENT COUNTIES.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

funds may not be provided under this subtitle for a project 

located in a county designated as an attainment county under 

subsection (a). 

‘‘(2) EXCEPTIONS.— 

‘‘(A) ADMINISTRATIVE EXPENSES OF LOCAL DEVELOPMENT DISTRICTS.—The funding prohibition under paragraph 

(1) shall not apply to grants to fund the administrative 

expenses of local development districts under section 15505. 

‘‘(B) MULTICOUNTY AND OTHER PROJECTS.—A Commission may waive the application of the funding prohibition 

under paragraph (1) with respect to— 

‘‘(i) a multicounty project that includes participation by an attainment county; and 

‘‘(ii) any other type of project, if a Commission 

determines that the project could bring significant 

benefits to areas of the region outside an attainment 

county. 

‘‘(3) ISOLATED AREAS OF DISTRESS.—For a designation of 

an isolated area of distress to be effective, the designation 

shall be supported— 

‘‘(A) by the most recent Federal data available; or 
H. R. 2419—558 

‘‘(B) if no recent Federal data are available, by the 

most recent data available through the government of the 

State in which the isolated area of distress is located. 

‘‘§ 15703. Counties eligible for assistance in more than one 

region 

‘‘(a) LIMITATION.—A political subdivision of a State may not 

receive assistance under this subtitle in a fiscal year from more 

than one Commission. 

‘‘(b) SELECTION OF COMMISSION.—A political subdivision 

included in the region of more than one Commission shall select 

the Commission with which it will participate by notifying, in 

writing, the Federal Cochairperson and the appropriate State 

member of that Commission. 

‘‘(c) CHANGES IN SELECTIONS.—The selection of a Commission 

by a political subdivision shall apply in the fiscal year in which 

the selection is made, and shall apply in each subsequent fiscal 

year unless the political subdivision, at least 90 days before the 

first day of the fiscal year, notifies the Cochairpersons of another 

Commission in writing that the political subdivision will participate 

in that Commission and also transmits a copy of such notification 

to the Cochairpersons of the Commission in which the political 

subdivision is currently participating. 

‘‘(d) INCLUSION OF APPALACHIAN REGIONAL COMMISSION.—In 

this section, the term ‘Commission’ includes the Appalachian 

Regional Commission established under chapter 143. 

‘‘§ 15704. Inspector General; records 

‘‘(a) APPOINTMENT OF INSPECTOR GENERAL.—There shall be an 

Inspector General for the Commissions appointed in accordance 

with section 3(a) of the Inspector General Act of 1978 (5 U.S.C. 

App.). All of the Commissions shall be subject to a single Inspector 

General. 

‘‘(b) RECORDS OF A COMMISSION.— ‘‘(1) IN GENERAL.—A Commission shall maintain accurate 

and complete records of all its transactions and activities. 

‘‘(2) AVAILABILITY.—All records of a Commission shall be 

available for audit and examination by the Inspector General 

(including authorized representatives of the Inspector General). 

‘‘(c) RECORDS OF RECIPIENTS OF COMMISSION ASSISTANCE.— ‘‘(1) IN GENERAL.—A recipient of funds from a Commission 

under this subtitle shall maintain accurate and complete 

records of transactions and activities financed with the funds 

and report to the Commission on the transactions and activities. 

‘‘(2) AVAILABILITY.—All records required under paragraph 

(1) shall be available for audit by the Commission and the 

Inspector General (including authorized representatives of the 

Commission and the Inspector General). 

‘‘(d) ANNUAL AUDIT.—The Inspector General shall audit the 

activities, transactions, and records of each Commission on an 

annual basis. 

‘‘§ 15705. Biannual meetings of representatives of all Commissions 

‘‘(a) IN GENERAL.—Representatives of each Commission, the 

Appalachian Regional Commission, and the Denali Commission 

shall meet biannually to discuss issues confronting regions suffering 
H. R. 2419—559 

from chronic and contiguous distress and successful strategies for 

promoting regional development. 

‘‘(b) CHAIR OF MEETINGS.—The chair of each meeting shall 

rotate among the Commissions, with the Appalachian Regional 

Commission to host the first meeting. 

‘‘SUBCHAPTER II—DESIGNATION OF REGIONS 

‘‘§ 15731. Southeast Crescent Regional Commission 

‘‘The region of the Southeast Crescent Regional Commission 

shall consist of all counties of the States of Virginia, North Carolina, 

South Carolina, Georgia, Alabama, Mississippi, and Florida not 

already served by the Appalachian Regional Commission or the 

Delta Regional Authority. 

‘‘§ 15732. Southwest Border Regional Commission 

‘‘The region of the Southwest Border Regional Commission 

shall consist of the following political subdivisions: 

‘‘(1) ARIZONA.—The counties of Cochise, Gila, Graham, 

Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, and 

Yuma in the State of Arizona. 

‘‘(2) CALIFORNIA.—The counties of Imperial, Los Angeles, 

Orange, Riverside, San Bernardino, San Diego, and Ventura 

in the State of California. 

‘‘(3) NEW MEXICO.—The counties of Catron, Chaves, Dona 

Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and 

Socorro in the State of New Mexico. 

‘‘(4) TEXAS.—The counties of Atascosa, Bandera, Bee, 

Bexar, Brewster, Brooks, Cameron, Coke, Concho, Crane, 

Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El Paso, 

Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, Irion, Jeff Davis, 

Jim Hogg, Jim Wells, Karnes, Kendall, Kenedy, Kerr, Kimble, 

Kinney, Kleberg, La Salle, Live Oak, Loving, Mason, Maverick, 

McMullen, Medina, Menard, Midland, Nueces, Pecos, Presidio, 

Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, Starr, 

Sterling, Terrell, Tom Green Upton, Uvalde, Val Verde, Ward, 

Webb, Willacy, Wilson, Winkler, Zapata, and Zavala in the 

State of Texas. 

‘‘§ 15733. Northern Border Regional Commission 

‘‘The region of the Northern Border Regional Commission shall 

include the following counties: 

‘‘(1) MAINE.—The counties of Androscoggin, Aroostook, 

Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot, 

Piscataquis, Somerset, Waldo, and Washington in the State 

of Maine. 

‘‘(2) NEW HAMPSHIRE.—The counties of Carroll, Coos, 

Grafton, and Sullivan in the State of New Hampshire. 

‘‘(3) NEW YORK.—The counties of Cayuga, Clinton, Essex, 

Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Oneida, Oswego, Seneca, and St. Lawrence in the State 

of New York. 

‘‘(4) VERMONT.—The counties of Caledonia, Essex, Franklin, 

Grand Isle, Lamoille, and Orleans in the State of Vermont. 
H. R. 2419—560 

‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS 

‘‘§ 15751. Authorization of appropriations 

‘‘(a) IN GENERAL.—There is authorized to be appropriated to 

each Commission to carry out this subtitle $30,000,000 for each 

of fiscal years 2008 through 2012. 

‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 10 percent 

of the funds made available to a Commission in a fiscal year 

under this section may be used for administrative expenses.’’. 

(b) CLERICAL AMENDMENT TO TABLE OF SUBTITLES.—The table 

of subtitles for chapter 40, United States Code, is amended by 

striking the item relating to subtitle V and inserting the following: 

‘‘V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT ....15101

‘‘VI. MISCELLANEOUS ........................................................................................17101’’. 

(c) CONFORMING AMENDMENTS TO INSPECTOR GENERAL ACT.— 

Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) 

is amended— 

(1) in paragraph (1), by striking ‘‘or the President of the 

Export-Import Bank;’’ and inserting ‘‘the President of the 

Export-Import Bank; or the Federal Cochairpersons of the 

Commissions established under section 15301 of title 40, United 

States Code;’’; and 

(2) in paragraph (2), by striking ‘‘or the Export-Import 

Bank,’’ and inserting ‘‘the Export-Import Bank, or the Commissions established under section 15301 of title 40, United States 

Code,’’. 

(d) EFFECTIVE DATE.—This section, and the amendments made 

by this section, shall take effect on the first day of the first fiscal 

year beginning after the date of the enactment of this Act. 

SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL 

AREAS. 

(a) ESTABLISHMENT.—The Secretary of Agriculture shall establish a Coordinator for Chronically Underserved Rural Areas (in 

this section referred to as the ‘‘Coordinator’’), to be located in 

the Rural Development Mission Area. 

(b) MISSION.—The mission of the Coordinator shall be to direct 

Department of Agriculture resources to high need, high poverty 

rural areas. 

(c) DUTIES.—The Coordinator shall consult with other offices 

in directing technical assistance, strategic regional planning, at 

the State and local level, for developing rural economic development 

that leverages the resources of State and local governments and 

non-profit and community development organizations. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary such sums as necessary to 

carry out this section for fiscal years 2008 through 2012. 

SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE 

TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET. 

(a) ELIMINATION.—Section 3716(e) of title 31, United States 

Code, is amended to read as follows: 

‘‘(e)(1) Notwithstanding any other provision of law, regulation, 

or administrative limitation, no limitation on the period within 

which an offset may be initiated or taken pursuant to this section 

shall be effective. 
H. R. 2419—561 

‘‘(2) This section does not apply when a statute explicitly prohibits using administrative offset or setoff to collect the claim or 

type of claim involved.’’. 

(b) APPLICATION OF AMENDMENT.—The amendment made by 

subsection (a) shall apply to any debt outstanding on or after 

the date of the enactment of this Act. 

SEC. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN 

RURAL AREAS. 

In addition to any other authority, the Secretary of Agriculture 

may make available to an organization excess or surplus computers 

or other technical equipment of the Department of Agriculture 

for the purposes of distribution to a city, town, or local government 

entity in a rural area (as defined in section 343(a)(13)(A) of the 

Consolidated Farm and Rural Development Act). 

SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES 

DEVELOPMENT ACT OF 2007. 

Effective upon the date of enactment of this Act, section 3068 

of the Water Resources Development Act of 2007 (Public Law 110- 

114; 121 Stat. 1123), and the item relating to section 3068 in 

the table of contents of that Act, are repealed. 

SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS. 

(a) DEFINITION OF SECTION 32.—In this section, the term ‘‘section 32’’ means section 32 of the Act of August 24, 1935 (7 U.S.C. 

612c). 

(b) TRANSFER TO FOOD AND NUTRITION SERVICE.— 

(1) IN GENERAL.—Amounts made available for a fiscal year 

to carry out section 32 in excess of the maximum amount 

calculated under paragraph (2) shall be transferred to the Secretary, acting through the Administrator of the Food and Nutrition Service, to be used to carry out the Richard B. Russell 

National School Lunch Act (42 U.S.C. 1751 et seq.). 

(2) MAXIMUM AMOUNT.—The maximum amount calculated 

under this paragraph for a fiscal year is the sum of— 

(A)(i) in the case of fiscal year 2009, $1,173,000,000; 

(ii) in the case of fiscal year 2010, $1,199,000,000; 

(iii) in the case of fiscal year 2011, $1,215,000,000; 

(iv) in the case of fiscal year 2012, $1,231,000,000; 

(v) in the case of fiscal year 2013, $1,248,000,000; 

(vi) in the case of fiscal year 2014, $1,266,000,000; 

(vii) in the case of fiscal year 2015, $1,284,000,000; 

(viii) in the case of fiscal year 2016, $1,303,000,000; 

(ix) in the case of fiscal year 2017, $1,322,000,000; 

and 

(x) for fiscal year 2018 and each fiscal year thereafter, 

the amount made available for the preceding fiscal year, 

as adjusted to reflect changes for the 12-month period 

ending on the preceding November 30 in the Consumer 

Price Index for All Urban Consumers published by the 

Bureau of Labor Statistics of the Department of Labor; 

and 

(B) any transfers for the fiscal year from section 32 to 

the Department of Commerce under the Fish and Wildlife 

Act of 1956 (16 U.S.C. 742a et seq.). 

(c) FRESH FRUIT AND VEGETABLE PROGRAM.—Of amounts made 

available to carry out section 32 under subsection (b)(2)(A), the 
H. R. 2419—562 

Secretary shall transfer for use to carry out the fresh fruit and 

vegetable program under section 19 of the Richard B. Russell 

National School Lunch Act the amounts specified in subsection 

(i) of that section. 

(d) WHOLE GRAIN PRODUCTS.—Of amounts made available to 

carry out section 32 under subsection (b)(2)(A), the Secretary shall 

use to carry out section 4305 $4,000,000 for fiscal year 2009. 

(e) MAINTENANCE OF FUNDING.—The funding provided under 

subsections (c) and (d) shall supplement (and not supplant) other 

Federal funding (including section 32 funding) for programs carried 

out under— 

(1) the Richard B. Russell National School Lunch Act (42 

U.S.C. 1751 et seq.), except for section 19 of that Act; 

(2) the Emergency Food Assistance Act of 1983 (7 U.S.C. 

7501 et seq.); and 

(3) section 27 of the Food Stamp Act of 1977 (7 U.S.C. 

2036). 

SEC. 14223. TECHNICAL CORRECTION. 

Section 923(1)(B) of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by striking 

‘‘as defined in section 316(b) of the Higher Education Act of 1965 

(20 U.S.C. 1059c(b))’’ and inserting ‘‘as defined in section 502(a)(5) 

of the Higher Education Act of 1965 (20 U.S.C. 1101a(a)(5))’’. 

TITLE XV—TRADE AND TAX 

PROVISIONS 

SEC. 15001. SHORT TITLE; ETC. 

(a) SHORT TITLE.—This title may be cited as the ‘‘Heartland, 

Habitat, Harvest, and Horticulture Act of 2008’’. 

(b) AMENDMENTS TO 1986 CODE.—Except as otherwise expressly 

provided, whenever in this title an amendment or repeal is 

expressed in terms of an amendment to, or repeal of, a section 

or other provision, the reference shall be considered to be made 

to a section or other provision of the Internal Revenue Code of 

1986. 

Subtitle A—Supplemental Agricultural Disaster Assistance From the Agricultural 

Disaster Relief Trust Fund 

SEC. 15101. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 

(a) IN GENERAL.—The Trade Act of 1974 (19 U.S.C. 2101 et 

seq.) is amended by adding at the end the following: 

‘‘TITLE IX—SUPPLEMENTAL 

AGRICULTURAL DISASTER ASSISTANCE 

‘‘SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 

‘‘(a) DEFINITIONS.—In this section: 
H. R. 2419—563 

‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The term ‘actual 

production history yield’ means the weighted average of the 

actual production history for each insurable commodity or noninsurable commodity, as calculated under the Federal Crop 

Insurance Act (7 U.S.C. 1501 et seq.) or the noninsured crop 

disaster assistance program, respectively. 

‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY YIELD.—The 

term ‘adjusted actual production history yield’ means— 

‘‘(A) in the case of an eligible producer on a farm 

that has at least 4 years of actual production history yields 

for an insurable commodity that are established other than 

pursuant to section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(4)(B)), the actual production 

history for the eligible producer without regard to any 

yields established under that section; 

‘‘(B) in the case of an eligible producer on a farm 

that has less than 4 years of actual production history 

yields for an insurable commodity, of which 1 or more 

were established pursuant to section 508(g)(4)(B) of that 

Act, the actual production history for the eligible producer 

as calculated without including the lowest of the yields 

established pursuant to section 508(g)(4)(B) of that Act; 

and 

‘‘(C) in all other cases, the actual production history 

of the eligible producer on a farm. 

‘‘(3) ADJUSTED NONINSURED CROP DISASTER ASSISTANCE PRO- GRAM YIELD.—The term ‘adjusted noninsured crop disaster 

assistance program yield’ means— 

‘‘(A) in the case of an eligible producer on a farm 

that has at least 4 years of production history under the 

noninsured crop disaster assistance program that are not 

replacement yields, the noninsured crop disaster assistance 

program yield without regard to any replacement yields; 

‘‘(B) in the case of an eligible producer on a farm 

that less than 4 years of production history under the 

noninsured crop disaster assistance program that are not 

replacement yields, the noninsured crop disaster assistance 

program yield as calculated without including the lowest 

of the replacement yields; and 

‘‘(C) in all other cases, the production history of the 

eligible producer on the farm under the noninsured crop 

disaster assistance program. 

‘‘(4) COUNTER-CYCLICAL PROGRAM PAYMENT YIELD.—The 

term ‘counter-cyclical program payment yield’ means the 

weighted average payment yield established under section 1102 

of the Farm Security and Rural Investment Act of 2002 (7 

U.S.C. 7912), section 1102 of the Food, Conservation, and 

Energy Act of 2008, or a successor section. 

‘‘(5) DISASTER COUNTY.— ‘‘(A) IN GENERAL.—The term ‘disaster county’ means 

a county included in the geographic area covered by a 

qualifying natural disaster declaration. 

‘‘(B) INCLUSION.—The term ‘disaster county’ includes— 

‘‘(i) a county contiguous to a county described in 

subparagraph (A); and 

‘‘(ii) any farm in which, during a calendar year, 

the total loss of production of the farm relating to 
H. R. 2419—564 

weather is greater than 50 percent of the normal 

production of the farm, as determined by the Secretary. 

‘‘(6) ELIGIBLE PRODUCER ON A FARM.— 

‘‘(A) IN GENERAL.—The term ‘eligible producer on a 

farm’ means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes 

the production and market risks associated with the agricultural production of crops or livestock. 

‘‘(B) DESCRIPTION.—An individual or entity referred 

to in subparagraph (A) is— 

‘‘(i) a citizen of the United States; 

‘‘(ii) a resident alien; 

‘‘(iii) a partnership of citizens of the United States; 

or 

‘‘(iv) a corporation, limited liability corporation, or 

other farm organizational structure organized under 

State law. 

‘‘(7) FARM.— ‘‘(A) IN GENERAL.—The term ‘farm’ means, in relation 

to an eligible producer on a farm, the sum of all crop 

acreage in all counties that is planted or intended to be 

planted for harvest by the eligible producer. 

‘‘(B) AQUACULTURE.—In the case of aquaculture, the 

term ‘farm’ means, in relation to an eligible producer on 

a farm, all fish being produced in all counties that are 

intended to be harvested for sale by the eligible producer. 

‘‘(C) HONEY.—In the case of honey, the term ‘farm’ 

means, in relation to an eligible producer on a farm, all 

bees and beehives in all counties that are intended to 

be harvested for a honey crop by the eligible producer. 

‘‘(8) FARM-RAISED FISH.—The term ‘farm-raised fish’ means 

any aquatic species that is propagated and reared in a controlled environment. 

‘‘(9) INSURABLE COMMODITY.—The term ‘insurable commodity’ means an agricultural commodity (excluding livestock) 

for which the producer on a farm is eligible to obtain a policy 

or plan of insurance under the Federal Crop Insurance Act 

(7 U.S.C. 1501 et seq.). 

‘‘(10) LIVESTOCK.—The term ‘livestock’ includes— 

‘‘(A) cattle (including dairy cattle); 

‘‘(B) bison; 

‘‘(C) poultry; 

‘‘(D) sheep; 

‘‘(E) swine; 

‘‘(F) horses; and 

‘‘(G) other livestock, as determined by the Secretary. 

‘‘(11) NONINSURABLE COMMODITY.—The term ‘noninsurable 

commodity’ means a crop for which the eligible producers on 

a farm are eligible to obtain assistance under the noninsured 

crop assistance program. 

‘‘(12) NONINSURED CROP ASSISTANCE PROGRAM.—The term 

‘noninsured crop assistance program’ means the program carried out under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). 

‘‘(13) QUALIFYING NATURAL DISASTER DECLARATION.—The 

term ‘qualifying natural disaster declaration’ means a natural 

disaster declared by the Secretary for production losses under 
H. R. 2419—565 

section 321(a) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1961(a)). 

‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture. 

‘‘(15) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 

term ‘socially disadvantaged farmer or rancher’ has the 

meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 

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

‘‘(A) a State; 

‘‘(B) the District of Columbia; 

‘‘(C) the Commonwealth of Puerto Rico; and 

‘‘(D) any other territory or possession of the United 

States. 

‘‘(17) TRUST FUND.—The term ‘Trust Fund’ means the Agricultural Disaster Relief Trust Fund established under section 

902. 

‘‘(18) UNITED STATES.—The term ‘United States’ when used 

in a geographical sense, means all of the States. 

‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAYMENTS.— ‘‘(1) IN GENERAL.—The Secretary shall use such sums as 

are necessary from the Trust Fund to make crop disaster assistance payments to eligible producers on farms in disaster counties that have incurred crop production losses or crop quality 

losses, or both, during the crop year. 

‘‘(2) AMOUNT.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary shall provide crop disaster assistance payments 

under this section to an eligible producer on a farm in 

an amount equal to 60 percent of the difference between— 

‘‘(i) the disaster assistance program guarantee, as 

described in paragraph (3); and 

‘‘(ii) the total farm revenue for a farm, as described 

in paragraph (4). 

‘‘(B) LIMITATION.—The disaster assistance program 

guarantee for a crop used to calculate the payments for 

a farm under subparagraph (A)(i) may not be greater than 

90 percent of the sum of the expected revenue, as described 

in paragraph (5) for each of the crops on a farm, as determined by the Secretary. 

‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM GUARANTEE.— 

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

this paragraph, the supplemental assistance program guarantee shall be the sum obtained by adding— 

‘‘(i) for each insurable commodity on the farm, 

115 percent of the product obtained by multiplying— 

‘‘(I) a payment rate for the commodity that 

is equal to the price election for the commodity 

elected by the eligible producer; 

‘‘(II) the payment acres for the commodity that 

is equal to the number of acres planted, or prevented from being planted, to the commodity; 

‘‘(III) the payment yield for the commodity 

that is equal to the percentage of the crop insurance yield elected by the producer of the higher 

of— 
H. R. 2419—566 

‘‘(aa) the adjusted actual production history yield; or 

‘‘(bb) the counter-cyclical program payment yield for each crop; and 

‘‘(ii) for each noninsurable commodity on a farm, 

120 percent of the product obtained by multiplying— 

‘‘(I) a payment rate for the commodity that 

is equal to 100 percent of the noninsured crop 

assistance program established price for the commodity; 

‘‘(II) the payment acres for the commodity that 

is equal to the number of acres planted, or prevented from being planted, to the commodity; and 

‘‘(III) the payment yield for the commodity 

that is equal to the higher of— 

‘‘(aa) the adjusted noninsured crop assistance program yield guarantee; or 

‘‘(bb) the counter-cyclical program payment yield for each crop. 

‘‘(B) ADJUSTMENT INSURANCE GUARANTEE.—Notwithstanding subparagraph (A), in the case of an insurable 

commodity for which a plan of insurance provides for an 

adjustment in the guarantee, such as in the case of prevented planting, the adjusted insurance guarantee shall 

be the basis for determining the disaster assistance program guarantee for the insurable commodity. 

‘‘(C) ADJUSTED ASSISTANCE LEVEL.—Notwithstanding 

subparagraph (A), in the case of a noninsurable commodity 

for which the noninsured crop assistance program provides 

for an adjustment in the level of assistance, such as in 

the case of unharvested crops, the adjusted assistance level 

shall be the basis for determining the disaster assistance 

program guarantee for the noninsurable commodity. 

‘‘(D) EQUITABLE TREATMENT FOR NON-YIELD BASED POLICIES.—The Secretary shall establish equitable treatment 

for non-yield based policies and plans of insurance, such 

as the Adjusted Gross Revenue Lite insurance program. 

‘‘(4) FARM REVENUE.— 

‘‘(A) IN GENERAL.—For purposes of this subsection, the 

total farm revenue for a farm, shall equal the sum obtained 

by adding— 

‘‘(i) the estimated actual value for each crop produced on a farm by using the product obtained by 

multiplying— 

‘‘(I) the actual crop acreage harvested by an 

eligible producer on a farm; 

‘‘(II) the estimated actual yield of the crop 

production; and 

‘‘(III) subject to subparagraphs (B) and (C), 

to the extent practicable, the national average 

market price received for the marketing year, as 

determined by the Secretary; 

‘‘(ii) 15 percent of amount of any direct payments 

made to the producer under sections 1103 and 1303 

of the Food, Conservation, and Energy Act of 2008 

or successor sections; 
H. R. 2419—567 

‘‘(iii) the total amount of any counter-cyclical payments made to the producer under sections 1104 and 

1304 of the Food, Conservation, and Energy Act of 

2008 or successor sections or of any average crop revenue election payments made to the producer under 

section 1105 of that Act; 

‘‘(iv) the total amount of any loan deficiency payments, marketing loan gains, and marketing certificate 

gains made to the producer under subtitles B and 

C of the Food, Conservation, and Energy Act of 2008 

or successor subtitles; 

‘‘(v) the amount of payments for prevented planting 

on a farm; 

‘‘(vi) the amount of crop insurance indemnities 

received by an eligible producer on a farm for each 

crop on a farm; 

‘‘(vii) the amount of payments an eligible producer 

on a farm received under the noninsured crop assistance program for each crop on a farm; and 

‘‘(viii) the value of any other natural disaster 

assistance payments provided by the Federal Government to an eligible producer on a farm for each crop 

on a farm for the same loss for which the eligible 

producer is seeking assistance. 

‘‘(B) ADJUSTMENT.—The Secretary shall adjust the 

average market price received by the eligible producer on 

a farm— 

‘‘(i) to reflect the average quality discounts applied 

to the local or regional market price of a crop or 

mechanically harvested forage due to a reduction in 

the intrinsic characteristics of the production resulting 

from adverse weather, as determined annually by the 

State office of the Farm Service Agency; and 

‘‘(ii) to account for a crop the value of which is 

reduced due to excess moisture resulting from a disaster-related condition. 

‘‘(C) MAXIMUM AMOUNT FOR CERTAIN CROPS.—With 

respect to a crop for which an eligible producer on a farm 

receives assistance under the noninsured crop assistance 

program, the national average market price received during 

the marketing year shall be an amount not more than 

100 percent of the price of the crop established under 

the noninsured crop assistance program. 

‘‘(5) EXPECTED REVENUE.—The expected revenue for each 

crop on a farm shall equal the sum obtained by adding— 

‘‘(A) the product obtained by multiplying— 

‘‘(i) the greatest of— 

‘‘(I) the adjusted actual production history 

yield of the eligible producer on a farm; and 

‘‘(II) the counter-cyclical program payment 

yield; 

‘‘(ii) the acreage planted or prevented from being 

planted for each crop; and 

‘‘(iii) 100 percent of the insurance price guarantee; 

and 

‘‘(B) the product obtained by multiplying— 
H. R. 2419—568 

‘‘(i) 100 percent of the adjusted noninsured crop 

assistance program yield; and 

‘‘(ii) 100 percent of the noninsured crop assistance 

program price for each of the crops on a farm. 

‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 

‘‘(1) PAYMENTS.—The Secretary shall use such sums as 

are necessary from the Trust Fund to make livestock indemnity 

payments to eligible producers on farms that have incurred 

livestock death losses in excess of the normal mortality due 

to adverse weather, as determined by the Secretary, during 

the calendar year, including losses due to hurricanes, floods, 

blizzards, disease, wildfires, extreme heat, and extreme cold. 

‘‘(2) PAYMENT RATES.—Indemnity payments to an eligible 

producer on a farm under paragraph (1) shall be made at 

a rate of 75 percent of the market value of the applicable 

livestock on the day before the date of death of the livestock, 

as determined by the Secretary. 

‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— ‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) COVERED LIVESTOCK.— ‘‘(i) IN GENERAL.—The term ‘covered livestock’ 

means livestock of an eligible livestock producer that, 

during the 60 days prior to the beginning date of 

a qualifying drought or fire condition, as determined 

by the Secretary, the eligible livestock producer— 

‘‘(I) owned; 

‘‘(II) leased; 

‘‘(III) purchased; 

‘‘(IV) entered into a contract to purchase; 

‘‘(V) is a contract grower; or 

‘‘(VI) sold or otherwise disposed of due to qualifying drought conditions during— 

‘‘(aa) the current production year; or 

‘‘(bb) subject to paragraph (3)(B)(ii), 1 or 

both of the 2 production years immediately 

preceding the current production year. 

‘‘(ii) EXCLUSION.—The term ‘covered livestock’ does 

not include livestock that were or would have been 

in a feedlot, on the beginning date of the qualifying 

drought or fire condition, as a part of the normal 

business operation of the eligible livestock producer, 

as determined by the Secretary. 

‘‘(B) DROUGHT MONITOR.—The term ‘drought monitor’ 

means a system for classifying drought severity according 

to a range of abnormally dry to exceptional drought, as 

defined by the Secretary. 

‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 

‘‘(i) IN GENERAL.—The term ‘eligible livestock producer’ means an eligible producer on a farm that— 

‘‘(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the 

pastureland or grazing land, including cash-leased 

pastureland or grazing land, for the livestock; 

‘‘(II) provides the pastureland or grazing land 

for covered livestock, including cash-leased 

pastureland or grazing land that is physically 

located in a county affected by drought; 
H. R. 2419—569 

‘‘(III) certifies grazing loss; and 

‘‘(IV) meets all other eligibility requirements 

established under this subsection. 

‘‘(ii) EXCLUSION.—The term ‘eligible livestock producer’ does not include an owner, cash or share lessee, 

or contract grower of livestock that rents or leases 

pastureland or grazing land owned by another person 

on a rate-of-gain basis. 

‘‘(D) NORMAL CARRYING CAPACITY.—The term ‘normal 

carrying capacity’, with respect to each type of grazing 

land or pastureland in a county, means the normal carrying 

capacity, as determined under paragraph (3)(D)(i), that 

would be expected from the grazing land or pastureland 

for livestock during the normal grazing period, in the 

absence of a drought or fire that diminishes the production 

of the grazing land or pastureland. 

‘‘(E) NORMAL GRAZING PERIOD.—The term ‘normal 

grazing period’, with respect to a county, means the normal 

grazing period during the calendar year for the county, 

as determined under paragraph (3)(D)(i). 

‘‘(2) PROGRAM.—The Secretary shall use such sums as are 

necessary from the Trust Fund to provide compensation for 

losses to eligible livestock producers due to grazing losses for 

covered livestock due to— 

‘‘(A) a drought condition, as described in paragraph 

(3); or 

‘‘(B) fire, as described in paragraph (4). 

‘‘(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT CONDITIONS.— 

‘‘(A) ELIGIBLE LOSSES.— 

‘‘(i) IN GENERAL.—An eligible livestock producer 

may receive assistance under this subsection only for 

grazing losses for covered livestock that occur on land 

that— 

‘‘(I) is native or improved pastureland with 

permanent vegetative cover; or 

‘‘(II) is planted to a crop planted specifically 

for the purpose of providing grazing for covered 

livestock. 

‘‘(ii) EXCLUSIONS.—An eligible livestock producer 

may not receive assistance under this subsection for 

grazing losses that occur on land used for haying or 

grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle 

D of title XII of the Food Security Act of 1985 (16 

U.S.C. 3831 et seq.). 

‘‘(B) MONTHLY PAYMENT RATE.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be 

equal to 60 percent of the lesser of— 

‘‘(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock 

producer, as determined under subparagraph (C); 

or 
H. R. 2419—570 

‘‘(II) the monthly feed cost calculated by using 

the normal carrying capacity of the eligible grazing 

land of the eligible livestock producer. 

‘‘(ii) PARTIAL COMPENSATION.—In the case of an 

eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions 

in 1 or both of the 2 production years immediately 

preceding the current production year, as determined 

by the Secretary, the payment rate shall be 80 percent 

of the payment rate otherwise calculated in accordance 

with clause (i). 

‘‘(C) MONTHLY FEED COST.— 

‘‘(i) IN GENERAL.—The monthly feed cost shall 

equal the product obtained by multiplying— 

‘‘(I) 30 days; 

‘‘(II) a payment quantity that is equal to the 

feed grain equivalent, as determined under clause 

(ii); and 

‘‘(III) a payment rate that is equal to the corn 

price per pound, as determined under clause (iii). 

‘‘(ii) FEED GRAIN EQUIVALENT.—For purposes of 

clause (i)(I), the feed grain equivalent shall equal— 

‘‘(I) in the case of an adult beef cow, 15.7 

pounds of corn per day; or 

‘‘(II) in the case of any other type of weight 

of livestock, an amount determined by the Secretary that represents the average number of 

pounds of corn per day necessary to feed the livestock. 

‘‘(iii) CORN PRICE PER POUND.—For purposes of 

clause (i)(II), the corn price per pound shall equal 

the quotient obtained by dividing— 

‘‘(I) the higher of— 

‘‘(aa) the national average corn price per 

bushel for the 12-month period immediately 

preceding March 1 of the year for which the 

disaster assistance is calculated; or 

‘‘(bb) the national average corn price per 

bushel for the 24-month period immediately 

preceding that March 1; by 

‘‘(II) 56. 

‘‘(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR

INTENSITY.— 

‘‘(i) FSA COUNTY COMMITTEE DETERMINATIONS.— 

‘‘(I) IN GENERAL.—The Secretary shall determine the normal carrying capacity and normal 

grazing period for each type of grazing land or 

pastureland in the county served by the applicable 

committee. 

‘‘(II) CHANGES.—No change to the normal carrying capacity or normal grazing period established 

for a county under subclause (I) shall be made 

unless the change is requested by the appropriate 

State and county Farm Service Agency committees. 

‘‘(ii) DROUGHT INTENSITY.— ‘‘(I) D2.—An eligible livestock producer that 

owns or leases grazing land or pastureland that 
H. R. 2419—571 

is physically located in a county that is rated by 

the U.S. Drought Monitor as having a D2 (severe 

drought) intensity in any area of the county for 

at least 8 consecutive weeks during the normal 

grazing period for the county, as determined by 

the Secretary, shall be eligible to receive assistance 

under this paragraph in an amount equal to 1 

monthly payment using the monthly payment rate 

determined under subparagraph (B). 

‘‘(II) D3.—An eligible livestock producer that 

owns or leases grazing land or pastureland that 

is physically located in a county that is rated by 

the U.S. Drought Monitor as having at least a 

D3 (extreme drought) intensity in any area of the 

county at any time during the normal grazing 

period for the county, as determined by the Secretary, shall be eligible to receive assistance under 

this paragraph— 

‘‘(aa) in an amount equal to 2 monthly 

payments using the monthly payment rate 

determined under subparagraph (B); or 

‘‘(bb) if the county is rated as having a 

D3 (extreme drought) intensity in any area 

of the county for at least 4 weeks during the 

normal grazing period for the county, or is 

rated as having a D4 (exceptional drought) 

intensity in any area of the county at any 

time during the normal grazing period, in an 

amount equal to 3 monthly payments using 

the monthly payment rate determined under 

subparagraph (B). 

‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MANAGED LAND.— 

‘‘(A) IN GENERAL.—An eligible livestock producer may 

receive assistance under this paragraph only if— 

‘‘(i) the grazing losses occur on rangeland that 

is managed by a Federal agency; and 

‘‘(ii) the eligible livestock producer is prohibited 

by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to 

a fire. 

‘‘(B) PAYMENT RATE.—The payment rate for assistance 

under this paragraph shall be equal to 50 percent of the 

monthly feed cost for the total number of livestock covered 

by the Federal lease of the eligible livestock producer, 

as determined under paragraph (3)(C). 

‘‘(C) PAYMENT DURATION.— 

‘‘(i) IN GENERAL.—Subject to clause (ii), an eligible 

livestock producer shall be eligible to receive assistance 

under this paragraph for the period— 

‘‘(I) beginning on the date on which the Federal agency excludes the eligible livestock producer 

from using the managed rangeland for grazing; 

and 

‘‘(II) ending on the last day of the Federal 

lease of the eligible livestock producer. 
H. R. 2419—572 

‘‘(ii) LIMITATION.—An eligible livestock producer 

may only receive assistance under this paragraph for 

losses that occur on not more than 180 days per year. 

‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE REQUIREMENTS.— 

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

this paragraph, a livestock producer shall only be eligible 

for assistance under this subsection if the livestock producer— 

‘‘(i) obtained a policy or plan of insurance under 

the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 

for the grazing land incurring the losses for which 

assistance is being requested; or 

‘‘(ii) filed the required paperwork, and paid the 

administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for 

the grazing land incurring the losses for which assistance is being requested. 

‘‘(B) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED

RESOURCE, OR BEGINNING FARMER OR RANCHER.—In the 

case of an eligible livestock producer that is a socially 

disadvantaged farmer or rancher or limited resource or 

beginning farmer or rancher, as determined by the Secretary, the Secretary may— 

‘‘(i) waive subparagraph (A); and 

‘‘(ii) provide disaster assistance under this section 

at a level that the Secretary determines to be equitable 

and appropriate. 

‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.—In the case 

of an eligible livestock producer that suffered losses on 

grazing land during the 2008 calendar year but does not 

meet the requirements of subparagraph (A), the Secretary 

shall waive subparagraph (A) if the eligible livestock producer pays a fee in an amount equal to the applicable 

noninsured crop assistance program fee or catastrophic 

risk protection plan fee required under subparagraph (A) 

to the Secretary not later than 90 days after the date 

of enactment of this subtitle. 

‘‘(D) EQUITABLE RELIEF.— 

‘‘(i) IN GENERAL.—The Secretary may provide equitable relief to an eligible livestock producer that is 

otherwise ineligible or unintentionally fails to meet 

the requirements of subparagraph (A) for the grazing 

land incurring the loss on a case-by-case basis, as 

determined by the Secretary. 

‘‘(ii) 2008 CALENDAR YEAR.—In the case of an 

eligible livestock producer that suffered losses on 

grazing land during the 2008 calendar year, the Secretary shall take special consideration to provide equitable relief in cases in which the eligible livestock 

producer failed to meet the requirements of subparagraph (A) due to the enactment of this title after the 

closing date of sales periods for crop insurance under 

the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 

and the noninsured crop assistance program. 

‘‘(6) NO DUPLICATIVE PAYMENTS.— 
H. R. 2419—573 

‘‘(A) IN GENERAL.—An eligible livestock producer may 

elect to receive assistance for grazing or pasture feed losses 

due to drought conditions under paragraph (3) or fire under 

paragraph (4), but not both for the same loss, as determined 

by the Secretary. 

‘‘(B) RELATIONSHIP TO SUPPLEMENTAL REVENUE ASSISTANCE.—An eligible livestock producer that receives assistance under this subsection may not also receive assistance 

for losses to crops on the same land with the same intended 

use under subsection (b). 

‘‘(e) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND

FARM-RAISED FISH.— 

‘‘(1) IN GENERAL.—The Secretary shall use up to 

$50,000,000 per year from the Trust Fund to provide emergency 

relief to eligible producers of livestock, honey bees, and farmraised fish to aid in the reduction of losses due to disease, 

adverse weather, or other conditions, such as blizzards and 

wildfires, as determined by the Secretary, that are not covered 

under subsection (b), (c), or (d). 

‘‘(2) USE OF FUNDS.—Funds made available under this subsection shall be used to reduce losses caused by feed or water 

shortages, disease, or other factors as determined by the Secretary. 

‘‘(3) AVAILABILITY OF FUNDS.—Any funds made available 

under this subsection shall remain available until expended. 

‘‘(f) TREE ASSISTANCE PROGRAM.— 

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) ELIGIBLE ORCHARDIST.—The term ‘eligible 

orchardist’ means a person that produces annual crops 

from trees for commercial purposes. 

‘‘(B) NATURAL DISASTER.—The term ‘natural disaster’ 

means plant disease, insect infestation, drought, fire, 

freeze, flood, earthquake, lightning, or other occurrence, 

as determined by the Secretary. 

‘‘(C) NURSERY TREE GROWER.—The term ‘nursery tree 

grower’ means a person who produces nursery, ornamental, 

fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary. 

‘‘(D) TREE.—The term ‘tree’ includes a tree, bush, and 

vine. 

‘‘(2) ELIGIBILITY.— 

‘‘(A) LOSS.—Subject to subparagraph (B), the Secretary 

shall provide assistance— 

‘‘(i) under paragraph (3) to eligible orchardists and 

nursery tree growers that planted trees for commercial 

purposes but lost the trees as a result of a natural 

disaster, as determined by the Secretary; and 

‘‘(ii) under paragraph (3)(B) to eligible orchardists 

and nursery tree growers that have a production history for commercial purposes on planted or existing 

trees but lost the trees as a result of a natural disaster, 

as determined by the Secretary. 

‘‘(B) LIMITATION.—An eligible orchardist or nursery 

tree grower shall qualify for assistance under subparagraph 

(A) only if the tree mortality of the eligible orchardist 

or nursery tree grower, as a result of damaging weather 
H. R. 2419—574 

or related condition, exceeds 15 percent (adjusted for 

normal mortality). 

‘‘(3) ASSISTANCE.—Subject to paragraph (4), the assistance 

provided by the Secretary to eligible orchardists and nursery 

tree growers for losses described in paragraph (2) shall consist 

of— 

‘‘(A)(i) reimbursement of 70 percent of the cost of 

replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality 

(adjusted for normal mortality); or 

‘‘(ii) at the option of the Secretary, sufficient seedlings 

to reestablish a stand; and 

‘‘(B) reimbursement of 50 percent of the cost of pruning, 

removal, and other costs incurred by an eligible orchardist 

or nursery tree grower to salvage existing trees or, in 

the case of tree mortality, to prepare the land to replant 

trees as a result of damage or tree mortality due to a 

natural disaster, as determined by the Secretary, in excess 

of 15 percent damage or mortality (adjusted for normal 

tree damage and mortality). 

‘‘(4) LIMITATIONS ON ASSISTANCE.— ‘‘(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In 

this paragraph, the terms ‘legal entity’ and ‘person’ have 

the meaning given those terms in section 1001(a) of the 

Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended 

by section 1603 of the Food, Conservation, and Energy 

Act of 2008). 

‘‘(B) AMOUNT.—The total amount of payments received, 

directly or indirectly, by a person or legal entity (excluding 

a joint venture or general partnership) under this subsection may not exceed $100,000 for any crop year, or 

an equivalent value in tree seedlings. 

‘‘(C) ACRES.—The total quantity of acres planted to 

trees or tree seedlings for which a person or legal entity 

shall be entitled to receive payments under this subsection 

may not exceed 500 acres. 

‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.— 

‘‘(1) IN GENERAL.—Except as otherwise provided in this 

section, the eligible producers on a farm shall not be eligible 

for assistance under this section (other than subsection (c)) 

if the eligible producers on the farm— 

‘‘(A) in the case of each insurable commodity of the 

eligible producers on the farm, did not obtain a policy 

or plan of insurance under the Federal Crop Insurance 

Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance 

pilot program under that Act); or 

‘‘(B) in the case of each noninsurable commodity of 

the eligible producers on the farm, did not file the required 

paperwork, and pay the administrative fee by the 

applicable State filing deadline, for the noninsured crop 

assistance program. 

‘‘(2) MINIMUM.—To be considered to have obtained insurance under paragraph (1)(A), an eligible producer on a farm 

shall have obtained a policy or plan of insurance with not 

less than 50 percent yield coverage at 55 percent of the insurable price for each crop grazed, planted, or intended to be 

planted for harvest on a whole farm. 
H. R. 2419—575 

‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED

RESOURCE, OR BEGINNING FARMER OR RANCHER.—With respect 

to eligible producers that are socially disadvantaged farmers 

or ranchers or limited resource or beginning farmers or 

ranchers, as determined by the Secretary, the Secretary may— 

‘‘(A) waive paragraph (1); and 

‘‘(B) provide disaster assistance under this section at 

a level that the Secretary determines to be equitable and 

appropriate. 

‘‘(4) WAIVER FOR 2008 CROP YEAR.—In the case of an eligible 

producer that suffered losses in an insurable commodity or 

noninsurable commodity during the 2008 crop year but does 

not meet the requirements of paragraph (1), the Secretary 

shall waive paragraph (1) if the eligible producer pays a fee 

in an amount equal to the applicable noninsured crop assistance 

program fee or catastrophic risk protection plan fee required 

under paragraph (1) to the Secretary not later than 90 days 

after the date of enactment of this subtitle. 

‘‘(5) EQUITABLE RELIEF.— ‘‘(A) IN GENERAL.—The Secretary may provide equitable relief to eligible producers on a farm that are otherwise ineligible or unintentionally fail to meet the requirements of paragraph (1) for 1 or more crops on a farm 

on a case-by-case basis, as determined by the Secretary. 

‘‘(B) 2008 CROP YEAR.—In the case of eligible producers 

on a farm that suffered losses in an insurable commodity 

or noninsurable commodity during the 2008 crop year, the 

Secretary shall take special consideration to provide equitable relief in cases in which the eligible producers failed 

to meet the requirements of paragraph (1) due to the 

enactment of this title after the closing date of sales periods 

for crop insurance under the Federal Crop Insurance Act 

(7 U.S.C. 1501 et seq.) and the noninsured crop assistance 

program. 

‘‘(h) PAYMENT LIMITATIONS.— ‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this 

subsection, the terms ‘legal entity’ and ‘person’ have the 

meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section 

1603 of the Food, Conservation, and Energy Act of 2008). 

‘‘(2) AMOUNT.—The total amount of disaster assistance payments received, directly or indirectly, by a person or legal 

entity (excluding a joint venture or general partnership) under 

this section (excluding payments received under subsection (f)) 

may not exceed $100,000 for any crop year. 

‘‘(3) AGI LIMITATION.—Section 1001D of the Food Security 

Act of 1985 (7 U.S.C. 1308–3a) or any successor provision 

shall apply with respect to assistance provided under this section. 

‘‘(4) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section 

1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or 

any successor provisions relating to direct attribution shall 

apply with respect to assistance provided under this section. 

‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall be effective 

only for losses that are incurred as the result of a disaster, adverse 

weather, or other environmental condition that occurs on or before 

September 30, 2011, as determined by the Secretary. 
H. R. 2419—576 

‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing any other 

program which makes disaster assistance payments (except for 

indemnities made under the Federal Crop Insurance Act (7 U.S.C. 

1501 et seq.)) and section 196 of the Federal Agriculture Improvement and Reform Act of 1996), the Secretary shall prevent duplicative payments with respect to the same loss for which a person 

receives a payment under subsections (b), (c), (d), (e), or (f). 

‘‘SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND. 

‘‘(a) CREATION OF TRUST FUND.—There is established in the 

Treasury of the United States a trust fund to be known as the 

‘Agricultural Disaster Relief Trust Fund’, consisting of such 

amounts as may be appropriated or credited to such Trust Fund 

as provided in this section. 

‘‘(b) TRANSFER TO TRUST FUND.— 

‘‘(1) IN GENERAL.—There are appropriated to the Agricultural Disaster Relief Trust Fund amounts equivalent to 3.08 

percent of the amounts received in the general fund of the 

Treasury of the United States during fiscal years 2008 through 

2011 attributable to the duties collected on articles entered, 

or withdrawn from warehouse, for consumption under the Harmonized Tariff Schedule of the United States. 

‘‘(2) AMOUNTS BASED ON ESTIMATES.—The amounts appropriated under this section shall be transferred at least monthly 

from the general fund of the Treasury of the United States 

to the Agricultural Disaster Relief Trust Fund on the basis 

of estimates made by the Secretary of the Treasury. Proper 

adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less 

than the amounts required to be transferred. 

‘‘(3) LIMITATION ON TRANSFERS TO AGRICULTURAL DISASTER

RELIEF TRUST FUND.—No amount may be appropriated to the 

Agricultural Disaster Relief Trust Fund on and after the date 

of any expenditure from the Agricultural Disaster Relief Trust 

Fund which is not permitted by this section. The determination 

of whether an expenditure is so permitted shall be made without regard to— 

‘‘(A) any provision of law which is not contained or 

referenced in this title or in a revenue Act, and 

‘‘(B) whether such provision of law is a subsequently 

enacted provision or directly or indirectly seeks to waive 

the application of this paragraph. 

‘‘(c) ADMINISTRATION.— 

‘‘(1) REPORTS.—The Secretary of the Treasury shall be the 

trustee of the Agricultural Disaster Relief Trust Fund and 

shall submit an annual report to Congress each year on the 

financial condition and the results of the operations of such 

Trust Fund during the preceding fiscal year and on its expected 

condition and operations during the 4 fiscal years succeeding 

such fiscal year. Such report shall be printed as a House 

document of the session of Congress to which the report is 

made. 

‘‘(2) INVESTMENT.— ‘‘(A) IN GENERAL.—The Secretary of the Treasury shall 

invest such portion of the Agricultural Disaster Relief Trust 

Fund as is not in his judgment required to meet current 

withdrawals. Such investments may be made only in 
H. R. 2419—577 

interest bearing obligations of the United States. For such 

purpose, such obligations may be acquired— 

‘‘(i) on original issue at the issue price, or 

‘‘(ii) by purchase of outstanding obligations at the 

market price. 

‘‘(B) SALE OF OBLIGATIONS.—Any obligation acquired 

by the Agricultural Disaster Relief Trust Fund may be 

sold by the Secretary of the Treasury at the market price. 

‘‘(C) INTEREST ON CERTAIN PROCEEDS.—The interest 

on, and the proceeds from the sale or redemption of, any 

obligations held in the Agricultural Disaster Relief Trust 

Fund shall be credited to and form a part of such Trust 

Fund. 

‘‘(d) EXPENDITURES FROM TRUST FUND.—Amounts in the Agricultural Disaster Relief Trust Fund shall be available for the purposes of making expenditures to meet those obligations of the 

United States incurred under section 901 or section 531 of the 

Federal Crop Insurance Act (as such sections are in effect on the 

date of the enactment of the Food, Conservation, and Energy Act 

of 2008). 

‘‘(e) AUTHORITY TO BORROW.— 

‘‘(1) IN GENERAL.—There are authorized to be appropriated, 

and are appropriated, to the Agricultural Disaster Relief Trust 

Fund, as repayable advances, such sums as may be necessary 

to carry out the purposes of such Trust Fund. 

‘‘(2) REPAYMENT OF ADVANCES.— 

‘‘(A) IN GENERAL.—Advances made to the Agricultural 

Disaster Relief Trust Fund shall be repaid, and interest 

on such advances shall be paid, to the general fund of 

the Treasury when the Secretary determines that moneys 

are available for such purposes in such Trust Fund. 

‘‘(B) RATE OF INTEREST.—Interest on advances made 

pursuant to this subsection shall be— 

‘‘(i) at a rate determined by the Secretary of the 

Treasury (as of the close of the calendar month preceding the month in which the advance is made) to 

be equal to the current average market yield on outstanding marketable obligations of the United States 

with remaining periods to maturity comparable to the 

anticipated period during which the advance will be 

outstanding, and 

‘‘(ii) compounded annually. 

‘‘SEC. 903. JURISDICTION. 

‘‘Legislation in the Senate of the United States amending section 901 or 902 shall be referred to the Committee on Finance 

of the Senate.’’. 

(b) TRANSITION.—For purposes of the 2008 crop year, the Secretary shall carry out subsections (f)(4) and (h) of section 901 

of the Trade Act of 1974 (as added by subsection (a)) in accordance 

with the terms and conditions of sections 1001 through 1001D 

of the Food Security Act of 1985 (16 U.S.C. 1308 et seq.), as 

in effect on September 30, 2007. 

(c) CLERICAL AMENDMENT.—The table of contents for the Trade 

Act of 1974 (19 U.S.C. 2101 et seq.) is amended by adding at 

the end the following: 
H. R. 2419—578 

‘‘TITLE IX—SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE 

‘‘Sec. 901. Supplemental agricultural disaster assistance. 

‘‘Sec. 902. Agricultural Disaster Relief Trust Fund. 

‘‘Sec. 903. Jurisdiction.’’. 

Subtitle B—Revenue Provisions for 

Agriculture Programs 

SEC. 15201. CUSTOMS USER FEES. 

(a) IN GENERAL.—Section 13031(j)(3)(A) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) 

is amended by striking ‘‘December 27, 2014’’ and inserting 

‘‘November 14, 2017’’. 

(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i)) 

is amended by striking ‘‘December 27, 2014’’ and inserting ‘‘September 30, 2017’’. 

(c) TIME FOR REMITTING CERTAIN COBRA FEES.—Notwithstanding any other provision of law, any fees authorized under 

paragraphs (1) through (8) of section 13031(a) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (1) 

through (8)) with respect to customs services provided on or after 

July 1, 2017, and before September 20, 2017, shall be paid not 

later than September 25, 2017. 

(d) TIME FOR REMITTING CERTAIN MERCHANDISE PROCESSING

FEES.— 

(1) IN GENERAL.—Notwithstanding any other provision of 

law, any fees authorized under paragraphs (9) and (10) of 

section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)) with respect 

to processing merchandise entered on or after October 1, 2017, 

and before November 15, 2017, shall be paid not later than 

September 25, 2017, in an amount equivalent to the amount 

of such fees paid by the person responsible for such fees with 

respect to merchandise entered on or after October 1, 2016, 

and before November 15, 2016, as determined by the Secretary 

of the Treasury. 

(2) RECONCILIATION OF MERCHANDISE PROCESSING FEES.— 

Not later than December 15, 2017, the Secretary of the 

Treasury shall reconcile the fees paid pursuant to paragraph 

(1) with the fees for services actually provided on or after 

October 1, 2017, and before November 15, 2017, and shall 

refund with interest any overpayment of such fees and make 

proper adjustments with respect to any underpayment of such 

fees. No interest may be assessed with respect to any such 

underpayment that was based on the amount of fees paid 

for merchandise entered on or after October 1, 2016, and before 

November 15, 2016. 

SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

The percentage under subparagraph (B) of section 401(1) of 

the Tax Increase Prevention and Reconciliation Act of 2005 in 

effect on the date of the enactment of this Act is increased by 

7.75 percentage points. 
H. R. 2419—579 

Subtitle C—Tax Provisions 

PART I—CONSERVATION 

Subpart A—Land and Species Preservation 

Provisions 

SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAYMENTS FROM SECA TAX FOR CERTAIN INDIVIDUALS. 

(a) INTERNAL REVENUE CODE.—Section 1402(a)(1) (defining net 

earnings from self-employment) is amended by inserting ‘‘, and 

including payments under section 1233(2) of the Food Security 

Act of 1985 (16 U.S.C. 3833(2)) to individuals receiving benefits 

under section 202 or 223 of the Social Security Act’’ after ‘‘crop 

shares’’. 

(b) SOCIAL SECURITY ACT.—Section 211(a)(1) of the Social Security Act is amended by inserting ‘‘, and including payments under 

section 1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2)) 

to individuals receiving benefits under section 202 or 223’’ after 

‘‘crop shares’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to payments made after December 31, 2007. 

SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING 

CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY 

FOR CONSERVATION PURPOSES. 

(a) IN GENERAL.— (1) INDIVIDUALS.—Section 170(b)(1)(E)(vi) (relating to 

termination) is amended by striking ‘‘December 31, 2007’’ and 

inserting ‘‘December 31, 2009’’. 

(2) CORPORATIONS.—Section 170(b)(2)(B)(iii) (relating to 

termination) is amended by striking ‘‘December 31, 2007’’ and 

inserting ‘‘December 31, 2009’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to contributions made in taxable years beginning after 

December 31, 2007. 

SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RECOVERY 

EXPENDITURES. 

(a) DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDI- TURES.— (1) IN GENERAL.—Paragraph (1) of section 175(c) (relating 

to definitions) is amended by inserting after the first sentence 

the following new sentence: ‘‘Such term shall include expenditures paid or incurred for the purpose of achieving site-specific 

management actions recommended in recovery plans approved 

pursuant to the Endangered Species Act of 1973.’’. 

(2) CONFORMING AMENDMENTS.— (A) Section 175 is amended by inserting ‘‘, or for endangered species recovery’’ after ‘‘prevention of erosion of land 

used in farming’’ each place it appears in subsections (a) 

and (c). 

(B) The heading of section 175 is amended by inserting 

‘‘; ENDANGERED SPECIES RECOVERY EXPENDITURES’’ before 

the period. 

(C) The item relating to section 175 in the table of 

sections for part VI of subchapter B of chapter 1 is amended 
H. R. 2419—580 

by inserting ‘‘; endangered species recovery expenditures’’ 

before the period. 

(b) LIMITATIONS.—Paragraph (3) of section 175(c) (relating to 

additional limitations) is amended— 

(1) in the heading of subparagraph (A), by inserting ‘‘OR

ENDANGERED SPECIES RECOVERY PLAN’’ after ‘‘CONSERVATION

PLAN’’, and 

(2) in subparagraph (A)(i), by inserting ‘‘or the recovery 

plan approved pursuant to the Endangered Species Act of 1973’’ 

after ‘‘Department of Agriculture’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to expenditures paid or incurred after December 31, 

2008. 

Subpart B—Timber Provisions 

SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED 

TIMBER GAIN OF CORPORATIONS. 

(a) IN GENERAL.—Section 1201 (relating to alternative tax for 

corporations) is amended by redesignating subsection (b) as subsection (c) and by adding after subsection (a) the following new 

subsection: 

‘‘(b) SPECIAL RATE FOR QUALIFIED TIMBER GAINS.— ‘‘(1) IN GENERAL.—If, for any taxable year ending after 

the date of the enactment of the Food, Conservation, and 

Energy Act of 2008 and beginning on or before the date which 

is 1 year after such date, a corporation has both a net capital 

gain and qualified timber gain— 

‘‘(A) subsection (a) shall apply to such corporation for 

the taxable year without regard to whether the applicable 

tax rate exceeds 35 percent, and 

‘‘(B) the tax computed under subsection (a)(2) shall 

be equal to the sum of— 

‘‘(i) 15 percent of the least of— 

‘‘(I) qualified timber gain, 

‘‘(II) net capital gain, or 

‘‘(III) taxable income, plus 

‘‘(ii) 35 percent of the excess (if any) of taxable 

income over the sum of the amounts for which a tax 

was determined under subsection (a)(1) and clause (i). 

‘‘(2) QUALIFIED TIMBER GAIN.—For purposes of this section, 

the term ‘qualified timber gain’ means, with respect to any 

taxpayer for any taxable year, the excess (if any) of— 

‘‘(A) the sum of the taxpayer’s gains described in subsections (a) and (b) of section 631 for such year, over 

‘‘(B) the sum of the taxpayer’s losses described in such 

subsections for such year. 

For purposes of subparagraphs (A) and (B), only timber held 

more than 15 years shall be taken into account. 

‘‘(3) COMPUTATION FOR TAXABLE YEARS IN WHICH RATE FIRST

APPLIES OR ENDS.—In the case of any taxable year which 

includes either of the dates set forth in paragraph (1), the 

qualified timber gain for such year shall not exceed the qualified 

timber gain properly taken into account for— 

‘‘(A) in the case of the taxable year including the date 

of the enactment of the Food, Conservation, and Energy 

Act of 2008, the portion of the year after such date, and 
H. R. 2419—581 

‘‘(B) in the case of the taxable year including the date 

which is 1 year after such date of enactment, the portion 

of the year on or before such later date.’’. 

(b) MINIMUM TAX.—Subsection (b) of section 55 is amended 

by adding at the end the following paragraph: 

‘‘(4) MAXIMUM RATE OF TAX ON QUALIFIED TIMBER GAIN

OF CORPORATIONS.—In the case of any taxable year to which 

section 1201(b) applies, the amount determined under clause 

(i) of subparagraph (B) shall not exceed the sum of— 

‘‘(A) 20 percent of so much of the taxable excess (if 

any) as exceeds the qualified timber gain (or, if less, the 

net capital gain), plus 

‘‘(B) 15 percent of the taxable excess in excess of the 

amount on which a tax is determined under subparagraph 

(A). 

Any term used in this paragraph which is also used in section 

1201 shall have the meaning given such term by such section, 

except to the extent such term is subject to adjustment under 

this part.’’. 

(c) CONFORMING AMENDMENT.—Section 857(b)(3)(A)(ii) is 

amended by striking ‘‘rate’’ and inserting ‘‘rates’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years ending after the date of enactment. 

SEC. 15312. TIMBER REIT MODERNIZATION. 

(a) IN GENERAL.—Section 856(c)(5) is amended by adding after 

subparagraph (G) the following new subparagraph: 

‘‘(H) TREATMENT OF TIMBER GAINS.— ‘‘(i) IN GENERAL.—Gain from the sale of real property described in paragraph (2)(D) and (3)(C) shall 

include gain which is— 

‘‘(I) recognized by an election under section 

631(a) from timber owned by the real estate investment trust, the cutting of which is provided by 

a taxable REIT subsidiary of the real estate investment trust; 

‘‘(II) recognized under section 631(b); or 

‘‘(III) income which would constitute gain 

under subclause (I) or (II) but for the failure to 

meet the 1-year holding period requirement. 

‘‘(ii) SPECIAL RULES.— 

‘‘(I) For purposes of this subtitle, cut timber, 

the gain from which is recognized by a real estate 

investment trust pursuant to an election under 

section 631(a) described in clause (i)(I) or so much 

of clause (i)(III) as relates to clause (i)(I), shall 

be deemed to be sold to the taxable REIT subsidiary of the real estate investment trust on the 

first day of the taxable year. 

‘‘(II) For purposes of this subtitle, income 

described in this subparagraph shall not be treated 

as gain from the sale of property described in 

section 1221(a)(1). 

‘‘(iii) TERMINATION.—This subparagraph shall not 

apply to dispositions after the termination date.’’. 

(b) TERMINATION DATE.—Subsection (c) of section 856 is 

amended by adding at the end the following new paragraph: 
H. R. 2419—582 

‘‘(8) TERMINATION DATE.—For purposes of this subsection, 

the term ‘termination date’ means, with respect to any taxpayer, 

the last day of the taxpayer’s first taxable year beginning 

after the date of the enactment of this paragraph and before 

the date that is 1 year after such date of enactment.’’. 

(c) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall apply to dispositions in taxable years beginning after 

the date of the enactment of this Act. 

SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR 

TIMBER REITS. 

(a) IN GENERAL.—Section 856(c)(2) is amended by striking ‘‘and’’ 

at the end of subparagraph (G), by inserting ‘‘and’’ at the end 

of subparagraph (H), and by adding after subparagraph (H) the 

following new subparagraph: 

‘‘(I) mineral royalty income earned in the first taxable 

year beginning after the date of the enactment of this 

subparagraph from real property owned by a timber real 

estate investment trust and held, or once held, in connection with the trade or business of producing timber by 

such real estate investment trust;’’. 

(b) TIMBER REAL ESTATE INVESTMENT TRUST.—Section 

856(c)(5), as amended by this Act, is amended by adding after 

subparagraph (H) the following new subparagraph: 

‘‘(I) TIMBER REAL ESTATE INVESTMENT TRUST.—The 

term ‘timber real estate investment trust’ means a real 

estate investment trust in which more than 50 percent 

in value of its total assets consists of real property held 

in connection with the trade or business of producing 

timber.’’. 

(c) EFFECTIVE DATE.—The amendments by this section shall 

apply to taxable years beginning after the date of the enactment 

of this Act. 

SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST 

FOR TIMBER REITS. 

(a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amended by 

inserting ‘‘(in the case of a quarter which closes on or before the 

termination date, 25 percent in the case of a timber real estate 

investment trust)’’ after ‘‘REIT subsidiaries’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY. 

(a) IN GENERAL.—Section 857(b)(6) (relating to income from 

prohibited transactions) is amended by adding at the end the following new subparagraph: 

‘‘(G) SPECIAL RULES FOR SALES TO QUALIFIED ORGANIZA- TIONS.— ‘‘(i) IN GENERAL.—In the case of the sale of a 

real estate asset (as defined in section 856(c)(5)(B)) 

to a qualified organization (as defined in section 

170(h)(3)) exclusively for conservation purposes (within 

the meaning of section 170(h)(1)(C)), subparagraph (D) 

shall be applied— 

‘‘(I) by substituting ‘2 years’ for ‘4 years’ in 

clause (i), and 
H. R. 2419—583 

‘‘(II) by substituting ‘2-year period’ for ‘4-year 

period’ in clauses (ii) and (iii). 

‘‘(ii) TERMINATION.—This subparagraph shall not 

apply to sales after the termination date.’’. 

(b) PROHIBITED TRANSACTIONS.—Section 857(b)(6)(D)(v) is 

amended by inserting ‘‘, or, in the case of a sale on or before 

the termination date, a taxable REIT subsidiary’’ after ‘‘any income’’. 

(c) SALES THAT ARE NOT PROHIBITED TRANSACTIONS.—Section 

857(b)(6), as amended by subsection (a), is amended by adding 

at the end the following new subparagraph: 

‘‘(H) SALES OF PROPERTY THAT ARE NOT A PROHIBITED

TRANSACTION.—In the case of a sale on or before the termination date, the sale of property which is not a prohibited 

transaction through the application of subparagraph (D) 

shall be considered property held for investment or for 

use in a trade or business and not property described 

in section 1221(a)(1) for all purposes of this subtitle.’’. 

(d) TERMINATION DATE.—Section 857(b)(6), as amended by subsections (a) and (c), is amended by adding at the end the following 

new subparagraph: 

‘‘(I) TERMINATION DATE.—For purposes of this paragraph, the term ‘termination date’ has the meaning given 

such term by section 856(c)(8).’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to dispositions in taxable years beginning after the 

date of the enactment of this Act. 

SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS. 

(a) IN GENERAL.—Part IV of subchapter A of chapter 1 (relating 

to credits against tax) is amended by adding at the end the following 

new subpart: 

‘‘Subpart I—Qualified Tax Credit Bonds 

‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 

‘‘Sec. 54B. Qualified forestry conservation bonds. 

‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS. 

‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds a qualified 

tax credit bond on one or more credit allowance dates of the bond 

during any taxable year, there shall be allowed as a credit against 

the tax imposed by this chapter for the taxable year an amount 

equal to the sum of the credits determined under subsection (b) 

with respect to such dates. 

‘‘(b) AMOUNT OF CREDIT.— ‘‘(1) IN GENERAL.—The amount of the credit determined 

under this subsection with respect to any credit allowance 

date for a qualified tax credit bond is 25 percent of the annual 

credit determined with respect to such bond. 

‘‘(2) ANNUAL CREDIT.—The annual credit determined with 

respect to any qualified tax credit bond is the product of— 

‘‘(A) the applicable credit rate, multiplied by 

‘‘(B) the outstanding face amount of the bond. 

‘‘(3) APPLICABLE CREDIT RATE.—For purposes of paragraph 

(2), the applicable credit rate is the rate which the Secretary 

estimates will permit the issuance of qualified tax credit bonds 

with a specified maturity or redemption date without discount 

and without interest cost to the qualified issuer. The applicable 
H. R. 2419—584 

credit rate with respect to any qualified tax credit bond shall 

be determined as of the first day on which there is a binding, 

written contract for the sale or exchange of the bond. 

‘‘(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.—In the 

case of a bond which is issued during the 3-month period 

ending on a credit allowance date, the amount of the credit 

determined under this subsection with respect to such credit 

allowance date shall be a ratable portion of the credit otherwise 

determined based on the portion of the 3-month period during 

which the bond is outstanding. A similar rule shall apply when 

the bond is redeemed or matures. 

‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

‘‘(1) IN GENERAL.—The credit allowed under subsection (a) 

for any taxable year shall not exceed the excess of— 

‘‘(A) the sum of the regular tax liability (as defined 

in section 26(b)) plus the tax imposed by section 55, over 

‘‘(B) the sum of the credits allowable under this part 

(other than subpart C and this subpart). 

‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the credit allowable 

under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried 

to the succeeding taxable year and added to the credit allowable 

under subsection (a) for such taxable year (determined before 

the application of paragraph (1) for such succeeding taxable 

year). 

‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes of this section— 

‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax 

credit bond’ means a qualified forestry conservation bond which 

is part of an issue that meets the requirements of paragraphs 

(2), (3), (4), (5), and (6). 

‘‘(2) SPECIAL RULES RELATING TO EXPENDITURES.— ‘‘(A) IN GENERAL.—An issue shall be treated as meeting 

the requirements of this paragraph if, as of the date of 

issuance, the issuer reasonably expects— 

‘‘(i) 100 percent or more of the available project 

proceeds to be spent for 1 or more qualified purposes 

within the 3-year period beginning on such date of 

issuance, and 

‘‘(ii) a binding commitment with a third party to 

spend at least 10 percent of such available project 

proceeds will be incurred within the 6-month period 

beginning on such date of issuance. 

‘‘(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND

PROCEEDS WITHIN 3 YEARS.— 

‘‘(i) IN GENERAL.—To the extent that less than 

100 percent of the available project proceeds of the 

issue are expended by the close of the expenditure 

period for 1 or more qualified purposes, the issuer 

shall redeem all of the nonqualified bonds within 90 

days after the end of such period. For purposes of 

this paragraph, the amount of the nonqualified bonds 

required to be redeemed shall be determined in the 

same manner as under section 142. 

‘‘(ii) EXPENDITURE PERIOD.—For purposes of this 

subpart, the term ‘expenditure period’ means, with 

respect to any issue, the 3-year period beginning on 
H. R. 2419—585 

the date of issuance. Such term shall include any extension of such period under clause (iii). 

‘‘(iii) EXTENSION OF PERIOD.—Upon submission of 

a request prior to the expiration of the expenditure 

period (determined without regard to any extension 

under this clause), the Secretary may extend such 

period if the issuer establishes that the failure to 

expend the proceeds within the original expenditure 

period is due to reasonable cause and the expenditures 

for qualified purposes will continue to proceed with 

due diligence. 

‘‘(C) QUALIFIED PURPOSE.—For purposes of this paragraph, the term ‘qualified purpose’ means a purpose specified in section 54B(e). 

‘‘(D) REIMBURSEMENT.—For purposes of this subtitle, 

available project proceeds of an issue shall be treated as 

spent for a qualified purpose if such proceeds are used 

to reimburse the issuer for amounts paid for a qualified 

purpose after the date that the Secretary makes an allocation of bond limitation with respect to such issue, but 

only if— 

‘‘(i) prior to the payment of the original expenditure, the issuer declared its intent to reimburse such 

expenditure with the proceeds of a qualified tax credit 

bond, 

‘‘(ii) not later than 60 days after payment of the 

original expenditure, the issuer adopts an official intent 

to reimburse the original expenditure with such proceeds, and 

‘‘(iii) the reimbursement is made not later than 

18 months after the date the original expenditure is 

paid. 

‘‘(3) REPORTING.—An issue shall be treated as meeting 

the requirements of this paragraph if the issuer of qualified 

tax credit bonds submits reports similar to the reports required 

under section 149(e). 

‘‘(4) SPECIAL RULES RELATING TO ARBITRAGE.— 

‘‘(A) IN GENERAL.—An issue shall be treated as meeting 

the requirements of this paragraph if the issuer satisfies 

the requirements of section 148 with respect to the proceeds 

of the issue. 

‘‘(B) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD.—An issue shall not be treated as failing 

to meet the requirements of subparagraph (A) by reason 

of any investment of available project proceeds during the 

expenditure period. 

‘‘(C) SPECIAL RULE FOR RESERVE FUNDS.—An issue shall 

not be treated as failing to meet the requirements of 

subparagraph (A) by reason of any fund which is expected 

to be used to repay such issue if— 

‘‘(i) such fund is funded at a rate not more rapid 

than equal annual installments, 

‘‘(ii) such fund is funded in a manner reasonably 

expected to result in an amount not greater than an 

amount necessary to repay the issue, and 
H. R. 2419—586 

‘‘(iii) the yield on such fund is not greater than 

the discount rate determined under paragraph (5)(B) 

with respect to the issue. 

‘‘(5) MATURITY LIMITATION.— 

‘‘(A) IN GENERAL.—An issue shall be treated as meeting 

the requirements of this paragraph if the maturity of any 

bond which is part of such issue does not exceed the maximum term determined by the Secretary under subparagraph (B). 

‘‘(B) MAXIMUM TERM.—During each calendar month, 

the Secretary shall determine the maximum term permitted under this paragraph for bonds issued during the 

following calendar month. Such maximum term shall be 

the term which the Secretary estimates will result in the 

present value of the obligation to repay the principal on 

the bond being equal to 50 percent of the face amount 

of such bond. Such present value shall be determined using 

as a discount rate the average annual interest rate of 

tax-exempt obligations having a term of 10 years or more 

which are issued during the month. If the term as so 

determined is not a multiple of a whole year, such term 

shall be rounded to the next highest whole year. 

‘‘(6) PROHIBITION ON FINANCIAL CONFLICTS OF INTEREST.— An issue shall be treated as meeting the requirements of this 

paragraph if the issuer certifies that— 

‘‘(A) applicable State and local law requirements governing conflicts of interest are satisfied with respect to 

such issue, and 

‘‘(B) if the Secretary prescribes additional conflicts of 

interest rules governing the appropriate Members of Congress, Federal, State, and local officials, and their spouses, 

such additional rules are satisfied with respect to such 

issue. 

‘‘(e) OTHER DEFINITIONS.—For purposes of this subchapter— 

‘‘(1) CREDIT ALLOWANCE DATE.—The term ‘credit allowance 

date’ means— 

‘‘(A) March 15, 

‘‘(B) June 15, 

‘‘(C) September 15, and 

‘‘(D) December 15. 

Such term includes the last day on which the bond is outstanding. 

‘‘(2) BOND.—The term ‘bond’ includes any obligation. 

‘‘(3) STATE.—The term ‘State’ includes the District of 

Columbia and any possession of the United States. 

‘‘(4) AVAILABLE PROJECT PROCEEDS.—The term ‘available 

project proceeds’ means— 

‘‘(A) the excess of— 

‘‘(i) the proceeds from the sale of an issue, over 

‘‘(ii) the issuance costs financed by the issue (to 

the extent that such costs do not exceed 2 percent 

of such proceeds), and 

‘‘(B) the proceeds from any investment of the excess 

described in subparagraph (A). 

‘‘(f) CREDIT TREATED AS INTEREST.—For purposes of this subtitle, the credit determined under subsection (a) shall be treated 

as interest which is includible in gross income. 
H. R. 2419—587 

‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the case of a 

tax credit bond held by an S corporation or partnership, the allocation of the credit allowed by this section to the shareholders of 

such corporation or partners of such partnership shall be treated 

as a distribution. 

‘‘(h) BONDS HELD BY REGULATED INVESTMENT COMPANIES AND

REAL ESTATE INVESTMENT TRUSTS.—If any qualified tax credit bond 

is held by a regulated investment company or a real estate investment trust, the credit determined under subsection (a) shall be 

allowed to shareholders of such company or beneficiaries of such 

trust (and any gross income included under subsection (f) with 

respect to such credit shall be treated as distributed to such shareholders or beneficiaries) under procedures prescribed by the Secretary. 

‘‘(i) CREDITS MAY BE STRIPPED.—Under regulations prescribed 

by the Secretary— 

‘‘(1) IN GENERAL.—There may be a separation (including 

at issuance) of the ownership of a qualified tax credit bond 

and the entitlement to the credit under this section with respect 

to such bond. In case of any such separation, the credit under 

this section shall be allowed to the person who on the credit 

allowance date holds the instrument evidencing the entitlement 

to the credit and not to the holder of the bond. 

‘‘(2) CERTAIN RULES TO APPLY.—In the case of a separation 

described in paragraph (1), the rules of section 1286 shall 

apply to the qualified tax credit bond as if it were a stripped 

bond and to the credit under this section as if it were a 

stripped coupon. 

‘‘SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS. 

‘‘(a) QUALIFIED FORESTRY CONSERVATION BOND.—For purposes 

of this subchapter, the term ‘qualified forestry conservation bond’ 

means any bond issued as part of an issue if— 

‘‘(1) 100 percent of the available project proceeds of such 

issue are to be used for one or more qualified forestry conservation purposes, 

‘‘(2) the bond is issued by a qualified issuer, and 

‘‘(3) the issuer designates such bond for purposes of this 

section. 

‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The maximum aggregate face amount of bonds which may be designated 

under subsection (a) by any issuer shall not exceed the limitation 

amount allocated to such issuer under subsection (d). 

‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED.—There is a national qualified forestry conservation bond 

limitation of $500,000,000. 

‘‘(d) ALLOCATIONS.— 

‘‘(1) IN GENERAL.—The Secretary shall make allocations 

of the amount of the national qualified forestry conservation 

bond limitation described in subsection (c) among qualified 

forestry conservation purposes in such manner as the Secretary 

determines appropriate so as to ensure that all of such limitation is allocated before the date which is 24 months after 

the date of the enactment of this section. 

‘‘(2) SOLICITATION OF APPLICATIONS.—The Secretary shall 

solicit applications for allocations of the national qualified forestry conservation bond limitation described in subsection (c) 
H. R. 2419—588 

not later than 90 days after the date of the enactment of 

this section. 

‘‘(e) QUALIFIED FORESTRY CONSERVATION PURPOSE.—For purposes of this section, the term ‘qualified forestry conservation purpose’ means the acquisition by a State or any political subdivision 

or instrumentality thereof or a 501(c)(3) organization (as defined 

in section 150(a)(4)) from an unrelated person of forest and forest 

land that meets the following qualifications: 

‘‘(1) Some portion of the land acquired must be adjacent 

to United States Forest Service Land. 

‘‘(2) At least half of the land acquired must be transferred 

to the United States Forest Service at no net cost to the 

United States and not more than half of the land acquired 

may either remain with or be conveyed to a State. 

‘‘(3) All of the land must be subject to a native fish habitat 

conservation plan approved by the United States Fish and 

Wildlife Service. 

‘‘(4) The amount of acreage acquired must be at least 

40,000 acres. 

‘‘(f) QUALIFIED ISSUER.—For purposes of this section, the term 

‘qualified issuer’ means a State or any political subdivision or 

instrumentality thereof or a 501(c)(3) organization (as defined in 

section 150(a)(4)). 

‘‘(g) SPECIAL ARBITRAGE RULE.—In the case of any qualified 

forestry conservation bond issued as part of an issue, section 

54A(d)(4)(C) shall be applied to such issue without regard to clause 

(i). 

‘‘(h) ELECTION TO TREAT 50 PERCENT OF BOND ALLOCATION

AS PAYMENT OF TAX.— ‘‘(1) IN GENERAL.—If— 

‘‘(A) a qualified issuer receives an allocation of any 

portion of the national qualified forestry conservation bond 

limitation described in subsection (c), and 

‘‘(B) the qualified issuer elects the application of this 

subsection with respect to such allocation, 

then the qualified issuer (without regard to whether the issuer 

is subject to tax under this chapter) shall be treated as having 

made a payment against the tax imposed by this chapter, 

for the taxable year preceding the taxable year in which the 

allocation is received, in an amount equal to 50 percent of 

the amount of such allocation. 

‘‘(2) TREATMENT OF DEEMED PAYMENT.— 

‘‘(A) IN GENERAL.—Notwithstanding any other provision of this title, the Secretary shall not use the payment 

of tax described in paragraph (1) as an offset or credit 

against any tax liability of the qualified issuer but shall 

refund such payment to such issuer. 

‘‘(B) NO INTEREST.—Except as provided in paragraph 

(3)(A), the payment described in paragraph (1) shall not 

be taken into account in determining any amount of 

interest under this title. 

‘‘(3) REQUIREMENT FOR, AND EFFECT OF, ELECTION.— 

‘‘(A) REQUIREMENT.—No election under this subsection 

shall take effect unless the qualified issuer certifies to 

the Secretary that any payment of tax refunded to the 

issuer under this subsection will be used exclusively for 

1 or more qualified forestry conservation purposes. If the 
H. R. 2419—589 

qualified issuer fails to use any portion of such payment 

for such purpose, the issuer shall be liable to the United 

States in an amount equal to such portion, plus interest 

at the overpayment rate under section 6621 for the period 

from the date such portion was refunded to the date such 

amount is paid. Any such amount shall be assessed and 

collected in the same manner as tax imposed by this 

chapter, except that subchapter B of chapter 63 (relating 

to deficiency procedures) shall not apply in respect of such 

assessment or collection. 

‘‘(B) EFFECT OF ELECTION ON ALLOCATION.—If a qualified issuer makes the election under this subsection with 

respect to any allocation— 

‘‘(i) the issuer may issue no bonds pursuant to 

the allocation, and 

‘‘(ii) the Secretary may not reallocate such allocation for any other purpose.’’. 

(b) REPORTING.—Subsection (d) of section 6049 (relating to 

returns regarding payments of interest) is amended by adding at 

the end the following new paragraph: 

‘‘(9) REPORTING OF CREDIT ON QUALIFIED TAX CREDIT

BONDS.— ‘‘(A) IN GENERAL.—For purposes of subsection (a), the 

term ‘interest’ includes amounts includible in gross income 

under section 54A and such amounts shall be treated as 

paid on the credit allowance date (as defined in section 

54A(e)(1)). 

‘‘(B) REPORTING TO CORPORATIONS, ETC.—Except as 

otherwise provided in regulations, in the case of any 

interest described in subparagraph (A) of this paragraph, 

subsection (b)(4) of this section shall be applied without 

regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i). 

‘‘(C) REGULATORY AUTHORITY.—The Secretary may prescribe such regulations as are necessary or appropriate 

to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed 

reporting.’’. 

(c) CONFORMING AMENDMENTS.— 

(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 

by striking ‘‘subpart C’’ and inserting ‘‘subparts C and I’’. 

(2) Section 1397E(c)(2) is amended by striking ‘‘subpart 

H’’ and inserting ‘‘subparts H and I’’. 

(3) Section 6401(b)(1) is amended by striking ‘‘and H’’ and 

inserting ‘‘H, and I’’. 

(4) The heading of subpart H of part IV of subchapter 

A of chapter 1 is amended by striking ‘‘Certain Bonds’’ and 

inserting ‘‘Clean Renewable Energy Bonds’’. 

(5) The table of subparts for part IV of subchapter A 

of chapter 1 is amended by striking the item relating to subpart 

H and inserting the following new items: 

‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY

BONDS. 

‘‘SUBPART I. QUALIFIED TAX CREDIT BONDS.’’. 

(6) Paragraph (2) of section 1324(b) of title 31, United 

States Code, is amended by striking ‘‘or 6428 or 53(e)’’ and 

inserting ‘‘, 53(e), 54B(h), or 6428’’. 
H. R. 2419—590 

(d) EFFECTIVE DATES.—The amendments made by this section 

shall apply to obligations issued after the date of the enactment 

of this Act. 

PART II—ENERGY PROVISIONS 

Subpart A—Cellulosic Biofuel 

SEC. 15321. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL. 

(a) IN GENERAL.—Subsection (a) of section 40 (relating to 

alcohol used as fuel) is amended by striking ‘‘plus’’ at the end 

of paragraph (1), by striking ‘‘plus’’ at the end of paragraph (2), 

by striking the period at the end of paragraph (3) and inserting 

‘‘, plus’’, and by adding at the end the following new paragraph: 

‘‘(4) the cellulosic biofuel producer credit.’’. 

(b) CELLULOSIC BIOFUEL PRODUCER CREDIT.— 

(1) IN GENERAL.—Subsection (b) of section 40 is amended 

by adding at the end the following new paragraph: 

‘‘(6) CELLULOSIC BIOFUEL PRODUCER CREDIT.— 

‘‘(A) IN GENERAL.—The cellulosic biofuel producer credit 

of any taxpayer is an amount equal to the applicable 

amount for each gallon of qualified cellulosic biofuel production. 

‘‘(B) APPLICABLE AMOUNT.—For purposes of subparagraph (A), the applicable amount means $1.01, except that 

such amount shall, in the case of cellulosic biofuel which 

is alcohol, be reduced by the sum of— 

‘‘(i) the amount of the credit in effect for such 

alcohol under subsection (b)(1) (without regard to subsection (b)(3)) at the time of the qualified cellulosic 

biofuel production, plus 

‘‘(ii) in the case of ethanol, the amount of the 

credit in effect under subsection (b)(4) at the time 

of such production. 

‘‘(C) QUALIFIED CELLULOSIC BIOFUEL PRODUCTION.—For 

purposes of this section, the term ‘qualified cellulosic biofuel 

production’ means any cellulosic biofuel which is produced 

by the taxpayer, and which during the taxable year— 

‘‘(i) is sold by the taxpayer to another person— 

‘‘(I) for use by such other person in the production of a qualified cellulosic biofuel mixture in 

such other person’s trade or business (other than 

casual off-farm production), 

‘‘(II) for use by such other person as a fuel 

in a trade or business, or 

‘‘(III) who sells such cellulosic biofuel at retail 

to another person and places such cellulosic biofuel 

in the fuel tank of such other person, or 

‘‘(ii) is used or sold by the taxpayer for any purpose 

described in clause (i). 

The qualified cellulosic biofuel production of any taxpayer 

for any taxable year shall not include any alcohol which 

is purchased by the taxpayer and with respect to which 

such producer increases the proof of the alcohol by additional distillation. 

‘‘(D) QUALIFIED CELLULOSIC BIOFUEL MIXTURE.—For 

purposes of this paragraph, the term ‘qualified cellulosic 
H. R. 2419—591 

biofuel mixture’ means a mixture of cellulosic biofuel and 

gasoline or of cellulosic biofuel and a special fuel which— 

‘‘(i) is sold by the person producing such mixture 

to any person for use as a fuel, or 

‘‘(ii) is used as a fuel by the person producing 

such mixture. 

‘‘(E) CELLULOSIC BIOFUEL.—For purposes of this paragraph— 

‘‘(i) IN GENERAL.—The term ‘cellulosic biofuel’ 

means any liquid fuel which— 

‘‘(I) is produced from any lignocellulosic or 

hemicellulosic matter that is available on a renewable or recurring basis, and 

‘‘(II) meets the registration requirements for 

fuels and fuel additives established by the Environmental Protection Agency under section 211 of the 

Clean Air Act (42 U.S.C. 7545). 

‘‘(ii) EXCLUSION OF LOW-PROOF ALCOHOL.—Such 

term shall not include any alcohol with a proof of 

less than 150. The determination of the proof of any 

alcohol shall be made without regard to any added 

denaturants. 

‘‘(F) ALLOCATION OF CELLULOSIC BIOFUEL PRODUCER

CREDIT TO PATRONS OF COOPERATIVE.—Rules similar to the 

rules under subsection (g)(6) shall apply for purposes of 

this paragraph. 

‘‘(G) REGISTRATION REQUIREMENT.—No credit shall be 

determined under this paragraph with respect to any taxpayer unless such taxpayer is registered with the Secretary 

as a producer of cellulosic biofuel under section 4101. 

‘‘(H) APPLICATION OF PARAGRAPH.—This paragraph 

shall apply with respect to qualified cellulosic biofuel 

production after December 31, 2008, and before January 

1, 2013.’’. 

(2) TERMINATION DATE NOT TO APPLY.—Subsection (e) of 

section 40 (relating to termination) is amended— 

(A) by inserting ‘‘or subsection (b)(6)(H)’’ after ‘‘by reason of paragraph (1)’’ in paragraph (2), and 

(B) by adding at the end the following new paragraph: 

‘‘(3) EXCEPTION FOR CELLULOSIC BIOFUEL PRODUCER

CREDIT.—Paragraph (1) shall not apply to the portion of the 

credit allowed under this section by reason of subsection (a)(4).’’. 

(3) CONFORMING AMENDMENTS.— 

(A) Paragraph (1) of section 4101(a) is amended— 

(i) by striking ‘‘and every person’’ and inserting 

‘‘, every person’’, and 

(ii) by inserting ‘‘, and every person producing 

cellulosic biofuel (as defined in section 40(b)(6)(E))’’ 

after ‘‘section 6426(b)(4)(A))’’. 

(B) The heading of section 40, and the item relating 

to such section in the table of sections for subpart D of 

part IV of subchapter A of chapter 1, are each amended 

by inserting ‘‘, etc.,’’ after ‘‘Alcohol’’. 

(c) BIOFUEL NOT USED AS A FUEL, ETC.— 

(1) IN GENERAL.—Paragraph (3) of section 40(d) is amended 

by redesignating subparagraph (D) as subparagraph (E) and 
H. R. 2419—592 

by inserting after subparagraph (C) the following new subparagraph: 

‘‘(D) CELLULOSIC BIOFUEL PRODUCER CREDIT.—If— 

‘‘(i) any credit is allowed under subsection (a)(4), 

and 

‘‘(ii) any person does not use such fuel for a purpose 

described in subsection (b)(6)(C), 

then there is hereby imposed on such person a tax equal 

to the applicable amount (as defined in subsection (b)(6)(B)) 

for each gallon of such cellulosic biofuel.’’. 

(2) CONFORMING AMENDMENTS.— 

(A) Subparagraph (C) of section 40(d)(3) is amended 

by striking ‘‘PRODUCER’’ in the heading and inserting 

‘‘SMALL ETHANOL PRODUCER’’. 

(B) Subparagraph (E) of section 40(d)(3), as redesignated by paragraph (1), is amended by striking ‘‘or (C)’’ 

and inserting ‘‘(C), or (D)’’. 

(d) BIOFUEL PRODUCED IN THE UNITED STATES.—Section 40(d) 

is amended by adding at the end the following new paragraph: 

‘‘(6) SPECIAL RULE FOR CELLULOSIC BIOFUEL PRODUCER

CREDIT.—No cellulosic biofuel producer credit shall be determined under subsection (a) with respect to any cellulosic biofuel 

unless such cellulosic biofuel is produced in the United States 

and used as a fuel in the United States. For purposes of 

this subsection, the term ‘United States’ includes any possession 

of the United States.’’. 

(e) WAIVER OF CREDIT LIMIT FOR CELLULOSIC BIOFUEL PRODUCTION BY SMALL ETHANOL PRODUCERS.—Section 40(b)(4)(C) is 

amended by inserting ‘‘(determined without regard to any qualified 

cellulosic biofuel production)’’ after ‘‘15,000,000 gallons’’. 

(f) DENIAL OF DOUBLE BENEFIT.— 

(1) BIODIESEL.—Paragraph (1) of section 40A(d) is amended 

by adding at the end the following new flush sentence: 

‘‘Such term shall not include any liquid with respect to which 

a credit may be determined under section 40.’’. 

(2) RENEWABLE DIESEL.—Paragraph (3) of section 40A(f) 

is amended by adding at the end the following new flush 

sentence: 

‘‘Such term shall not include any liquid with respect to which 

a credit may be determined under section 40.’’. 

(g) EFFECTIVE DATE.—The amendments made by this section 

shall apply to fuel produced after December 31, 2008. 

SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS. 

(a) STUDY.—The Secretary of the Treasury, in consultation 

with the Secretary of Agriculture, the Secretary of Energy, and 

the Administrator of the Environmental Protection Agency, shall 

enter into an agreement with the National Academy of Sciences 

to produce an analysis of current scientific findings to determine— 

(1) current biofuels production, as well as projections for 

future production, 

(2) the maximum amount of biofuels production capable 

in United States forests and farmlands, including the current 

quantities and character of the feedstocks and including such 

information as regional forest inventories that are commercially 

available, used in the production of biofuels, 
H. R. 2419—593 

(3) the domestic effects of an increase in biofuels production 

levels, including the effects of such levels on— 

(A) the price of fuel, 

(B) the price of land in rural and suburban communities, 

(C) crop acreage, forest acreage, and other land use, 

(D) the environment, due to changes in crop acreage, 

fertilizer use, runoff, water use, emissions from vehicles 

utilizing biofuels, and other factors, 

(E) the price of feed, 

(F) the selling price of grain crops and forest products, 

(G) exports and imports of grains and forest products, 

(H) taxpayers, through cost or savings to commodity 

crop payments, and 

(I) the expansion of refinery capacity, 

(4) the ability to convert corn ethanol plants for other 

uses, such as cellulosic ethanol or biodiesel, 

(5) a comparative analysis of corn ethanol versus other 

biofuels and renewable energy sources, considering cost, energy 

output, and ease of implementation, 

(6) the impact of the tax credit established by this subpart 

on the regional agricultural and silvicultural capabilities of 

commercially available forest inventories, and 

(7) the need for additional scientific inquiry, and specific 

areas of interest for future research. 

(b) REPORT.—The Secretary of the Treasury shall submit an 

initial report of the findings of the study required under subsection 

(a) to Congress not later than 6 months after the date of the 

enactment of this Act (36 months after such date in the case 

of the information required by subsection (a)(6)), and a final report 

not later than 12 months after such date (42 months after such 

date in the case of the information required by subsection (a)(6)). 

Subpart B—Revenue Provisions 

SEC. 15331. MODIFICATION OF ALCOHOL CREDIT. 

(a) INCOME TAX CREDIT.— 

(1) IN GENERAL.—The table in paragraph (2) of section 

40(h) is amended— 

(A) by striking ‘‘through 2010’’ in the first column 

and inserting ‘‘, 2006, 2007, or 2008’’, 

(B) by striking the period at the end of the third 

row, and 

(C) by adding at the end the following new row: 

‘‘2009 through 2010 45 cents .................... 33.33 cents.’’. 

(2) EXCEPTION.—Section 40(h) is amended by adding at 

the end the following new paragraph: 

‘‘(3) REDUCTION DELAYED UNTIL ANNUAL PRODUCTION OR

IMPORTATION OF 7,500,000,000 GALLONS.— 

‘‘(A) IN GENERAL.—In the case of any calendar year 

beginning after 2008, if the Secretary makes a determination described in subparagraph (B) with respect to all preceding calendar years beginning after 2007, the last row 

in the table in paragraph (2) shall be applied by substituting ‘51 cents’ for ‘45 cents’. 
H. R. 2419—594 

‘‘(B) DETERMINATION.—A determination described in 

this subparagraph with respect to any calendar year is 

a determination, in consultation with the Administrator 

of the Environmental Protection Agency, that an amount 

less than 7,500,000,000 gallons of ethanol (including cellulosic ethanol) has been produced in or imported into 

the United States in such year.’’. 

(b) EXCISE TAX CREDIT.— 

(1) IN GENERAL.—Subparagraph (A) of section 6426(b)(2) 

(relating to alcohol fuel mixture credit) is amended by striking 

‘‘the applicable amount is 51 cents’’ and inserting ‘‘the 

applicable amount is— 

‘‘(i) in the case of calendar years beginning before 

2009, 51 cents, and 

‘‘(ii) in the case of calendar years beginning after 

2008, 45 cents.’’. 

(2) EXCEPTION.—Paragraph (2) of section 6426(b) is 

amended by adding at the end the following new subparagraph: 

‘‘(C) REDUCTION DELAYED UNTIL ANNUAL PRODUCTION

OR IMPORTATION OF 7,500,000,000 GALLONS.—In the case of 

any calendar year beginning after 2008, if the Secretary 

makes a determination described in section 40(h)(3)(B) with 

respect to all preceding calendar years beginning after 

2007, subparagraph (A)(ii) shall be applied by substituting 

‘51 cents’ for ‘45 cents’.’’ 

(3) CONFORMING AMENDMENT.—Subparagraph (A) of section 

6426(b)(2) is amended by striking ‘‘subparagraph (B)’’ and 

inserting ‘‘subparagraphs (B) and (C)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of the enactment of this Act. 

SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL 

CREDITS. 

(a) IN GENERAL.—Paragraph (4) of section 40(d) (relating to 

volume of alcohol) is amended by striking ‘‘5 percent’’ and inserting 

‘‘2 percent’’. 

(b) CONFORMING AMENDMENT FOR EXCISE TAX CREDIT.—Section 

6426(b) (relating to alcohol fuel mixture credit) is amended by 

redesignating paragraph (5) as paragraph (6) and by inserting 

after paragraph (4) the following new paragraph: 

‘‘(5) VOLUME OF ALCOHOL.—For purposes of determining 

under subsection (a) the number of gallons of alcohol with 

respect to which a credit is allowable under subsection (a), 

the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas 

approved by the Secretary to the extent that such denaturants 

do not exceed 2 percent of the volume of such alcohol (including 

denaturants).’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to fuel sold or used after December 31, 2008. 

SEC. 15333. ETHANOL TARIFF EXTENSION. 

Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 

Schedule of the United States are each amended in the effective 

period column by striking ‘‘1/1/2009’’ and inserting ‘‘1/1/2011’’. 
H. R. 2419—595 

SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN IMPORTED 

ETHANOL. 

(a) IN GENERAL.—Section 313(p) of the Tariff Act of 1930 (19 

U.S.C. 1313(p)) is amended by adding at the end the following 

new paragraph: 

‘‘(5) SPECIAL RULES FOR ETHYL ALCOHOL.—For purposes 

of this subsection, any duty paid under subheading 9901.00.50 

of the Harmonized Tariff Schedule of the United States on 

imports of ethyl alcohol or a mixture of ethyl alcohol may 

not be refunded if the exported article upon which a drawback 

claim is based does not contain ethyl alcohol or a mixture 

of ethyl alcohol.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

applies with respect to— 

(1) imports of ethyl alcohol or a mixture of ethyl alcohol 

entered for consumption, or withdrawn from warehouse for 

consumption, on or after October 1, 2008; and 

(2) imports of ethyl alcohol or a mixture of ethyl alcohol 

entered for consumption, or withdrawn from warehouse for 

consumption, before October 1, 2008, if a duty drawback claim 

is filed with respect to such imports on or after October 1, 

2010. 

PART III—AGRICULTURAL PROVISIONS 

SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS. 

(a) IN GENERAL.—Subparagraph (A) of section 147(c)(2) 

(relating to exception for first-time farmers) is amended by striking 

‘‘$250,000’’ and inserting ‘‘$450,000’’. 

(b) INFLATION ADJUSTMENT.—Section 147(c)(2) is amended by 

adding at the end the following new subparagraph: 

‘‘(H) ADJUSTMENTS FOR INFLATION.—In the case of any 

calendar year after 2008, the dollar amount in subparagraph (A) shall be increased by an amount equal to— 

‘‘(i) such dollar amount, multiplied by 

‘‘(ii) the cost-of-living adjustment determined 

under section 1(f)(3) for the calendar year, determined 

by substituting ‘calendar year 2007’ for ‘calendar year 

1992’ in subparagraph (B) thereof. 

If any amount as increased under the preceding sentence 

is not a multiple of $100, such amount shall be rounded 

to the nearest multiple of $100.’’. 

(c) MODIFICATION OF SUBSTANTIAL FARMLAND DEFINITION.— 

Section 147(c)(2)(E) (defining substantial farmland) is amended by 

striking ‘‘unless’’ and all that follows through the period and 

inserting ‘‘unless such parcel is smaller than 30 percent of the 

median size of a farm in the county in which such parcel is located.’’. 

(d) CONFORMING AMENDMENT.—Section 147(c)(2)(C)(i)(II) is 

amended by striking ‘‘$250,000’’ and inserting ‘‘the amount in effect 

under subparagraph (A)’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to bonds issued after the date of the enactment of 

this Act. 
H. R. 2419—596 

SEC. 15342. ALLOWANCE OF SECTION 1031 TREATMENT FOR 

EXCHANGES INVOLVING CERTAIN MUTUAL DITCH, RESERVOIR, OR IRRIGATION COMPANY STOCK. 

(a) IN GENERAL.—Section 1031 (relating to exchange of property 

held for productive use or investment) is amended by adding at 

the end the following new subsection: 

‘‘(i) SPECIAL RULES FOR MUTUAL DITCH, RESERVOIR, OR IRRIGATION COMPANY STOCK.—For purposes of subsection (a)(2)(B), the 

term ‘stocks’ shall not include shares in a mutual ditch, reservoir, 

or irrigation company if at the time of the exchange— 

‘‘(1) the mutual ditch, reservoir, or irrigation company is 

an organization described in section 501(c)(12)(A) (determined 

without regard to the percentage of its income that is collected 

from its members for the purpose of meeting losses and 

expenses), and 

‘‘(2) the shares in such company have been recognized 

by the highest court of the State in which such company was 

organized or by applicable State statute as constituting or 

representing real property or an interest in real property.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to exchanges completed after the date of the enactment 

of this Act. 

SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT. 

(a) IN GENERAL.—Subpart D of part IV of subchapter A of 

chapter 1 (relating to business related credits) is amended by adding 

at the end the following new section: 

‘‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT. 

‘‘(a) IN GENERAL.—For purposes of section 38, in the case of 

an eligible agricultural business, the agricultural chemicals security 

credit determined under this section for the taxable year is 30 

percent of the qualified security expenditures for the taxable year. 

‘‘(b) FACILITY LIMITATION.—The amount of the credit determined under subsection (a) with respect to any facility for any 

taxable year shall not exceed— 

‘‘(1) $100,000, reduced by 

‘‘(2) the aggregate amount of credits determined under 

subsection (a) with respect to such facility for the 5 prior 

taxable years. 

‘‘(c) ANNUAL LIMITATION.—The amount of the credit determined 

under subsection (a) with respect to any taxpayer for any taxable 

year shall not exceed $2,000,000. 

‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDITURE.—For purposes of this section, the term ‘qualified chemical security expenditure’ means, with respect to any eligible agricultural business for 

any taxable year, any amount paid or incurred by such business 

during such taxable year for— 

‘‘(1) employee security training and background checks, 

‘‘(2) limitation and prevention of access to controls of specified agricultural chemicals stored at the facility, 

‘‘(3) tagging, locking tank valves, and chemical additives 

to prevent the theft of specified agricultural chemicals or to 

render such chemicals unfit for illegal use, 

‘‘(4) protection of the perimeter of specified agricultural 

chemicals, 
H. R. 2419—597 

‘‘(5) installation of security lighting, cameras, recording 

equipment, and intrusion detection sensors, 

‘‘(6) implementation of measures to increase computer or 

computer network security, 

‘‘(7) conducting a security vulnerability assessment, 

‘‘(8) implementing a site security plan, and 

‘‘(9) such other measures for the protection of specified 

agricultural chemicals as the Secretary may identify in regulation. 

Amounts described in the preceding sentence shall be taken into 

account only to the extent that such amounts are paid or incurred 

for the purpose of protecting specified agricultural chemicals. 

‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For purposes of this 

section, the term ‘eligible agricultural business’ means any person 

in the trade or business of— 

‘‘(1) selling agricultural products, including specified agricultural chemicals, at retail predominantly to farmers and 

ranchers, or 

‘‘(2) manufacturing, formulating, distributing, or aerially 

applying specified agricultural chemicals. 

‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For purposes of this 

section, the term ‘specified agricultural chemical’ means— 

‘‘(1) any fertilizer commonly used in agricultural operations 

which is listed under— 

‘‘(A) section 302(a)(2) of the Emergency Planning and 

Community Right-to-Know Act of 1986, 

‘‘(B) section 101 of part 172 of title 49, Code of Federal 

Regulations, or 

‘‘(C) part 126, 127, or 154 of title 33, Code of Federal 

Regulations, and 

‘‘(2) any pesticide (as defined in section 2(u) of the Federal 

Insecticide, Fungicide, and Rodenticide Act), including all active 

and inert ingredients thereof, which is customarily used on 

crops grown for food, feed, or fiber. 

‘‘(g) CONTROLLED GROUPS.—Rules similar to the rules of paragraphs (1) and (2) of section 41(f) shall apply for purposes of 

this section. 

‘‘(h) REGULATIONS.—The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes 

of this section, including regulations which— 

‘‘(1) provide for the proper treatment of amounts which 

are paid or incurred for purpose of protecting any specified 

agricultural chemical and for other purposes, and 

‘‘(2) provide for the treatment of related properties as one 

facility for purposes of subsection (b). 

‘‘(i) TERMINATION.—This section shall not apply to any amount 

paid or incurred after December 31, 2012.’’. 

(b) CREDIT ALLOWED AS PART OF GENERAL BUSINESS CREDIT.— Section 38(b) is amended by striking ‘‘plus’’ at the end of paragraph 

(30), by striking the period at the end of paragraph (31) and 

inserting ‘‘, plus’’, and by adding at the end the following new 

paragraph: 

‘‘(32) in the case of an eligible agricultural business (as 

defined in section 45O(e)), the agricultural chemicals security 

credit determined under section 45O(a).’’. 

(c) DENIAL OF DOUBLE BENEFIT.—Section 280C is amended 

by adding at the end the following new subsection: 
H. R. 2419—598 

‘‘(f) CREDIT FOR SECURITY OF AGRICULTURAL CHEMICALS.—No 

deduction shall be allowed for that portion of the expenses otherwise 

allowable as a deduction taken into account in determining the 

credit under section 45O for the taxable year which is equal to 

the amount of the credit determined for such taxable year under 

section 45O(a).’’. 

(d) CLERICAL AMENDMENT.—The table of sections for subpart 

D of part IV of subchapter A of chapter 1 is amended by adding 

at the end the following new item: 

‘‘Sec. 45O. Agricultural chemicals security credit.’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to amounts paid or incurred after the date of the 

enactment of this Act. 

SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2- 

YEARS OLD OR YOUNGER. 

(a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) (relating 

to 3-year property) is amended to read as follows: 

‘‘(i) any race horse— 

‘‘(I) which is placed in service before January 

1, 2014, and 

‘‘(II) which is placed in service after December 

31, 2013, and which is more than 2 years old 

at the time such horse is placed in service by 

such purchaser,’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to property placed in service after December 31, 2008. 

SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS 

AND SURROUNDING AREA. 

(a) IN GENERAL.—Subject to the modifications described in this 

section, the following provisions of or relating to the Internal Revenue Code of 1986 shall apply to the Kansas disaster area in 

addition to the areas to which such provisions otherwise apply: 

(1) Section 1400N(d) of such Code (relating to special allowance for certain property). 

(2) Section 1400N(e) of such Code (relating to increase 

in expensing under section 179). 

(3) Section 1400N(f) of such Code (relating to expensing 

for certain demolition and clean-up costs). 

(4) Section 1400N(k) of such Code (relating to treatment 

of net operating losses attributable to storm losses). 

(5) Section 1400N(n) of such Code (relating to treatment 

of representations regarding income eligibility for purposes of 

qualified rental project requirements). 

(6) Section 1400N(o) of such Code (relating to treatment 

of public utility property disaster losses). 

(7) Section 1400Q of such Code (relating to special rules 

for use of retirement funds). 

(8) Section 1400R(a) of such Code (relating to employee 

retention credit for employers). 

(9) Section 1400S(b) of such Code (relating to suspension 

of certain limitations on personal casualty losses). 

(10) Section 405 of the Katrina Emergency Tax Relief Act 

of 2005 (relating to extension of replacement period for nonrecognition of gain). 
H. R. 2419—599 

(b) KANSAS DISASTER AREA.—For purposes of this section, the 

term ‘‘Kansas disaster area’’ means an area with respect to which 

a major disaster has been declared by the President under section 

401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA–1699–DR, as in effect on the date of the enactment 

of this Act) by reason of severe storms and tornados beginning 

on May 4, 2007, and determined by the President to warrant 

individual or individual and public assistance from the Federal 

Government under such Act with respect to damages attributable 

to such storms and tornados. 

(c) REFERENCES TO AREA OR LOSS.— 

(1) AREA.—Any reference in such provisions to the Katrina 

disaster area or the Gulf Opportunity Zone shall be treated 

as a reference to the Kansas disaster area. 

(2) LOSS.—Any reference in such provisions to any loss 

or damage attributable to Hurricane Katrina shall be treated 

as a reference to any loss or damage attributable to the May 

4, 2007, storms and tornados. 

(d) REFERENCES TO DATES, ETC.— (1) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED

ON OR AFTER MAY 5, 2007.—Section 1400N(d) of such Code— 

(A) by substituting ‘‘qualified Recovery Assistance property’’ for ‘‘qualified Gulf Opportunity Zone property’’ each 

place it appears, 

(B) by substituting ‘‘May 5, 2007’’ for ‘‘August 28, 2005’’ 

each place it appears, 

(C) by substituting ‘‘December 31, 2008’’ for ‘‘December 

31, 2007’’ in paragraph (2)(A)(v), 

(D) by substituting ‘‘December 31, 2009’’ for ‘‘December 

31, 2008’’ in paragraph (2)(A)(v), 

(E) by substituting ‘‘May 4, 2007’’ for ‘‘August 27, 2005’’ 

in paragraph (3)(A), 

(F) by substituting ‘‘January 1, 2009’’ for ‘‘January 

1, 2008’’ in paragraph (3)(B), and 

(G) determined without regard to paragraph (6) 

thereof. 

(2) INCREASE IN EXPENSING UNDER SECTION 179.—Section 

1400N(e) of such Code, by substituting ‘‘qualified section 179 

Recovery Assistance property’’ for ‘‘qualified section 179 Gulf 

Opportunity Zone property’’ each place it appears. 

(3) EXPENSING FOR CERTAIN DEMOLITION AND CLEAN-UP

COSTS.—Section 1400N(f) of such Code— 

(A) by substituting ‘‘qualified Recovery Assistance 

clean-up cost’’ for ‘‘qualified Gulf Opportunity Zone cleanup cost’’ each place it appears, and 

(B) by substituting ‘‘beginning on May 4, 2007, and 

ending on December 31, 2009’’ for ‘‘beginning on August 

28, 2005, and ending on December 31, 2007’’ in paragraph 

(2) thereof. 

(4) TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE

TO STORM LOSSES.—Section 1400N(k) of such Code— 

(A) by substituting ‘‘qualified Recovery Assistance loss’’ 

for ‘‘qualified Gulf Opportunity Zone loss’’ each place it 

appears, 

(B) by substituting ‘‘after May 3, 2007, and before 

on January 1, 2010’’ for ‘‘after August 27, 2005, and before 

January 1, 2008’’ each place it appears, 
H. R. 2419—600 

(C) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’ 

in paragraph (2)(B)(ii)(I) thereof, 

(D) by substituting ‘‘qualified Recovery Assistance 

property’’ for ‘‘qualified Gulf Opportunity Zone property’’ 

in paragraph (2)(B)(iv) thereof, and 

(E) by substituting ‘‘qualified Recovery Assistance casualty loss’’ for ‘‘qualified Gulf Opportunity Zone casualty 

loss’’ each place it appears. 

(5) SPECIAL RULES FOR USE OF RETIREMENT FUNDS.—Section 

1400Q of such Code— 

(A) by substituting ‘‘qualified Recovery Assistance distribution’’ for ‘‘qualified hurricane distribution’’ each place 

it appears, 

(B) by substituting ‘‘on or after May 4, 2007, and 

before January 1, 2009’’ for ‘‘on or after August 25, 2005, 

and before January 1, 2007’’ in subsection (a)(4)(A)(i), 

(C) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’ 

in subsections (a)(4)(A)(i) and (c)(3)(B), 

(D) disregarding clauses (ii) and (iii) of subsection 

(a)(4)(A), 

(E) by substituting ‘‘qualified storm distribution’’ for 

‘‘qualified Katrina distribution’’ each place it appears, 

(F) by substituting ‘‘after November 4, 2006, and before 

May 5, 2007’’ for ‘‘after February 28, 2005, and before 

August 29, 2005’’ in subsection (b)(2)(B)(ii), 

(G) by substituting ‘‘the Kansas disaster area (as 

defined in section 15345(b) of the Food, Conservation, and 

Energy Act of 2008) but which was not so purchased or 

constructed on account of the May 4, 2007, storms and 

tornados’’ for ‘‘the Hurricane Katrina disaster area, but 

not so purchased or constructed on account of Hurricane 

Katrina’’ in subsection (b)(2)(B)(iii), 

(H) by substituting ‘‘beginning on May 4, 2007, and 

ending on the date which is 5 months after the date of 

the enactment of the Heartland, Habitat, Harvest, and 

Horticulture Act of 2008’’ for ‘‘beginning on August 25, 

2005, and ending on February 28, 2006’’ in subsection 

(b)(3)(A), 

(I) by substituting ‘‘qualified storm individual’’ for 

‘‘qualified Hurricane Katrina individual’’ each place it 

appears, 

(J) by substituting ‘‘December 31, 2008’’ for ‘‘December 

31, 2006’’ in subsection (c)(2)(A), 

(K) by substituting ‘‘beginning on the date of the enactment of the Food, Conservation, and Energy Act of 2008 

and ending on December 31, 2008’’ for ‘‘beginning on September 24, 2005, and ending on December 31, 2006’’ in 

subsection (c)(4)(A)(i), 

(L) by substituting ‘‘May 4, 2007’’ for ‘‘August 25, 2005’’ 

in subsection (c)(4)(A)(ii), and 

(M) by substituting ‘‘January 1, 2009’’ for ‘‘January 

1, 2007’’ in subsection (d)(2)(A)(ii). 

(6) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED

BY MAY 4 STORMS AND TORNADOS.—Section 1400R(a) of the 

Internal Revenue Code of 1986— 

(A) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’ 

each place it appears, 
H. R. 2419—601 

(B) by substituting ‘‘January 1, 2008’’ for ‘‘January 

1, 2006’’ both places it appears, and 

(C) only with respect to eligible employers who 

employed an average of not more than 200 employees on 

business days during the taxable year before May 4, 2007. 

(7) SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CASUALTY LOSSES.—Section 1400S(b)(1) of the Internal Revenue 

Code of 1986, by substituting ‘‘May 4, 2007’’ for ‘‘August 25, 

2005’’. 

(8) EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNI- TION OF GAIN.—Section 405 of the Katrina Emergency Tax 

Relief Act of 2005, by substituting ‘‘on or after May 4, 2007’’ 

for ‘‘on or after August 25, 2005’’. 

SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODIFICATION 

AUTHORITY. 

(a) IN GENERAL.—Section 48A (relating to qualifying advanced 

coal project credit) is amended by adding at the end the following 

new subsection: 

‘‘(h) COMPETITIVE CERTIFICATION AWARDS MODIFICATION

AUTHORITY.—In implementing this section or section 48B, the Secretary is directed to modify the terms of any competitive certification 

award and any associated closing agreement where such modification— 

‘‘(1) is consistent with the objectives of such section, 

‘‘(2) is requested by the recipient of the competitive certification award, and 

‘‘(3) involves moving the project site to improve the potential to capture and sequester carbon dioxide emissions, reduce 

costs of transporting feedstock, and serve a broader customer 

base, 

unless the Secretary determines that the dollar amount of tax 

credits available to the taxpayer under such section would increase 

as a result of the modification or such modification would result 

in such project not being originally certified. In considering any 

such modification, the Secretary shall consult with other relevant 

Federal agencies, including the Department of Energy.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall take effect on the date of the enactment of this Act and 

is applicable to all competitive certification awards entered into 

under section 48A or 48B of the Internal Revenue Code of 1986, 

whether such awards were issued before, on, or after such date 

of enactment. 

PART IV—OTHER REVENUE PROVISIONS 

SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAXPAYERS. 

(a) IN GENERAL.—Section 461 (relating to general rule for taxable year of deduction) is amended by adding at the end the following new subsection: 

‘‘(j) LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAX- PAYERS.— 

‘‘(1) LIMITATION.—If a taxpayer other than a C corporation 

receives any applicable subsidy for any taxable year, any excess 

farm loss of the taxpayer for the taxable year shall not be 

allowed. 
H. R. 2419—602 

‘‘(2) DISALLOWED LOSS CARRIED TO NEXT TAXABLE YEAR.— 

Any loss which is disallowed under paragraph (1) shall be 

treated as a deduction of the taxpayer attributable to farming 

businesses in the next taxable year. 

‘‘(3) APPLICABLE SUBSIDY.—For purposes of this subsection, 

the term ‘applicable subsidy’ means— 

‘‘(A) any direct or counter-cyclical payment under title 

I of the Food, Conservation, and Energy Act of 2008, or 

any payment elected to be received in lieu of any such 

payment, or 

‘‘(B) any Commodity Credit Corporation loan. 

‘‘(4) EXCESS FARM LOSS.—For purposes of this subsection— 

‘‘(A) IN GENERAL.—The term ‘excess farm loss’ means 

the excess of— 

‘‘(i) the aggregate deductions of the taxpayer for 

the taxable year which are attributable to farming 

businesses of such taxpayer (determined without 

regard to whether or not such deductions are disallowed for such taxable year under paragraph (1)), 

over 

‘‘(ii) the sum of— 

‘‘(I) the aggregate gross income or gain of such 

taxpayer for the taxable year which is attributable 

to such farming businesses, plus 

‘‘(II) the threshold amount for the taxable year. 

‘‘(B) THRESHOLD AMOUNT.— ‘‘(i) IN GENERAL.—The term ‘threshold amount’ 

means, with respect to any taxable year, the greater 

of— 

‘‘(I) $300,000 ($150,000 in the case of married 

individuals filing separately), or 

‘‘(II) the excess (if any) of the aggregate 

amounts described in subparagraph (A)(ii)(I) for 

the 5-consecutive taxable year period preceding 

the taxable year over the aggregate amounts 

described in subparagraph (A)(i) for such period. 

‘‘(ii) SPECIAL RULES FOR DETERMINING AGGREGATE

AMOUNTS.—For purposes of clause (i)(II)— 

‘‘(I) notwithstanding the disregard in subparagraph (A)(i) of any disallowance under paragraph 

(1), in the case of any loss which is carried forward 

under paragraph (2) from any taxable year, such 

loss (or any portion thereof) shall be taken into 

account for the first taxable year in which a deduction for such loss (or portion) is not disallowed 

by reason of this subsection, and 

‘‘(II) the Secretary shall prescribe rules for 

the computation of the aggregate amounts 

described in such clause in cases where the filing 

status of the taxpayer is not the same for the 

taxable year and each of the taxable years in the 

period described in such clause. 

‘‘(C) FARMING BUSINESS.— 

‘‘(i) IN GENERAL.—The term ‘farming business’ has 

the meaning given such term in section 263A(e)(4). 

‘‘(ii) CERTAIN TRADES AND BUSINESSES INCLUDED.— If, without regard to this clause, a taxpayer is engaged 
H. R. 2419—603 

in a farming business with respect to any agricultural 

or horticultural commodity— 

‘‘(I) the term ‘farming business’ shall include 

any trade or business of the taxpayer of the processing of such commodity (without regard to 

whether the processing is incidental to the 

growing, raising, or harvesting of such commodity), 

and 

‘‘(II) if the taxpayer is a member of a cooperative to which subchapter T applies, any trade or 

business of the cooperative described in subclause 

(I) shall be treated as the trade or business of 

the taxpayer. 

‘‘(D) CERTAIN LOSSES DISREGARDED.—For purposes of 

subparagraph (A)(i), there shall not be taken into account 

any deduction for any loss arising by reason of fire, storm, 

or other casualty, or by reason of disease or drought, 

involving any farming business. 

‘‘(5) APPLICATION OF SUBSECTION IN CASE OF PARTNERSHIPS

AND S CORPORATIONS.—In the case of a partnership or S corporation— 

‘‘(A) this subsection shall be applied at the partner 

or shareholder level, and 

‘‘(B) each partner’s or shareholder’s proportionate share 

of the items of income, gain, or deduction of the partnership 

or S corporation for any taxable year from farming 

businesses attributable to the partnership or S corporation, 

and of any applicable subsidies received by the partnership 

or S corporation during the taxable year, shall be taken 

into account by the partner or shareholder in applying 

this subsection to the taxable year of such partner or 

shareholder with or within which the taxable year of the 

partnership or S corporation ends. 

The Secretary may provide rules for the application of this 

paragraph to any other pass-thru entity to the extent necessary 

to carry out the provisions of this subsection. 

‘‘(6) ADDITIONAL REPORTING.—The Secretary may prescribe 

such additional reporting requirements as the Secretary determines appropriate to carry out the purposes of this subsection. 

‘‘(7) COORDINATION WITH SECTION 469.—This subsection 

shall be applied before the application of section 469.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after December 31, 2009. 

SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COMPUTING 

NET EARNINGS FROM SELF-EMPLOYMENT. 

(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— 

(1) IN GENERAL.—The matter following paragraph (17) of 

section 1402(a) is amended— 

(A) by striking ‘‘$2,400’’ each place it appears and 

inserting ‘‘the upper limit’’, and 

(B) by striking ‘‘$1,600’’ each place it appears and 

inserting ‘‘the lower limit’’. 

(2) DEFINITIONS.—Section 1402 is amended by adding at 

the end the following new subsection: 

‘‘(l) UPPER AND LOWER LIMITS.—For purposes of subsection 

(a)— 
H. R. 2419—604 

‘‘(1) LOWER LIMIT.—The lower limit for any taxable year 

is the sum of the amounts required under section 213(d) of 

the Social Security Act for a quarter of coverage in effect 

with respect to each calendar quarter ending with or within 

such taxable year. 

‘‘(2) UPPER LIMIT.—The upper limit for any taxable year 

is the amount equal to 150 percent of the lower limit for 

such taxable year.’’. 

(b) AMENDMENTS TO THE SOCIAL SECURITY ACT.— (1) IN GENERAL.—The matter following paragraph (16) of 

section 211(a) of the Social Security Act is amended— (A) by striking ‘‘$2,400’’ each place it appears and 

inserting ‘‘the upper limit’’, and (B) by striking ‘‘$1,600’’ each place it appears and 

inserting ‘‘the lower limit’’. 

(2) DEFINITIONS.—Section 211 of such Act is amended by 

adding at the end the following new subsection: 

‘‘(k) UPPER AND LOWER LIMITS.—For purposes of subsection 

(a)— 

‘‘(1) The lower limit for any taxable year is the sum of 

the amounts required under section 213(d) for a quarter of 

coverage in effect with respect to each calendar quarter ending 

with or within such taxable year. 

‘‘(2) The upper limit for any taxable year is the amount 

equal to 150 percent of the lower limit for such taxable year.’’. 

(3) CONFORMING AMENDMENT.—Section 212 of such Act 

is amended— 

(A) in subsection (b), by striking ‘‘For’’ and inserting 

‘‘Except as provided in subsection (c), for’’; and 

(B) by adding at the end the following new subsection: 

‘‘(c) For the purpose of determining average indexed monthly 

earnings, average monthly wage, and quarters of coverage in the 

case of any individual who elects the option described in clause 

(ii) or (iv) in the matter following section 211(a)(16) for any taxable 

year that does not begin with or during a particular calendar 

year and end with or during such year, the self-employment income 

of such individual deemed to be derived during such taxable year 

shall be allocated to the two calendar years, portions of which 

are included within such taxable year, in the same proportion 

to the total of such deemed self-employment income as the sum 

of the amounts applicable under section 213(d) for the calendar 

quarters ending with or within each such calendar year bears 

to the lower limit for such taxable year specified in section 

211(k)(1).’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2007. 

SEC. 15353. INFORMATION REPORTING FOR COMMODITY CREDIT CORPORATION TRANSACTIONS. 

(a) IN GENERAL.—Subpart A of part III of subchapter A of 

chapter 61 (relating to information concerning persons subject to 

special provisions) is amended by inserting after section 6039I 

the following new section: 

‘‘SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY CREDIT CORPORATION TRANSACTIONS. 

‘‘(a) REQUIREMENT OF REPORTING.—The Commodity Credit Corporation, through the Secretary of Agriculture, shall make a return, 
H. R. 2419—605 

according to the forms and regulations prescribed by the Secretary 

of the Treasury, setting forth any market gain realized by a taxpayer during the taxable year in relation to the repayment of 

a loan issued by the Commodity Credit Corporation, without regard 

to the manner in which such loan was repaid. 

‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS WITH RESPECT

TO WHOM INFORMATION IS REQUIRED.—The Secretary of Agriculture 

shall furnish to each person whose name is required to be set 

forth in a return required under subsection (a) a written statement 

showing the amount of market gain reported in such return.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for subpart 

A of part III of subchapter A of chapter 61 is amended by inserting 

after the item relating to section 6039I the following new item: 

‘‘Sec. 6039J. Information reporting with respect to Commodity Credit Corporation 

transactions.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to loans repaid on or after January 1, 2007. 

PART V—PROTECTION OF SOCIAL SECURITY 

SEC. 15361. PROTECTION OF SOCIAL SECURITY. 

To ensure that the assets of the trust funds established under 

section 201 of the Social Security Act (42 U.S.C. 401) are not 

reduced as a result of the enactment of this Act, the Secretary 

of the Treasury shall transfer annually from the general revenues 

of the Federal Government to those trust funds the following 

amounts: 

(1) For fiscal year 2009, $5,000,000. 

(2) For fiscal year 2010, $9,000,000. 

(3) For fiscal year 2011, $8,000,000. 

(4) For fiscal year 2012, $7,000,000. 

(5) For fiscal year 2013, $8,000,000. 

(6) For fiscal year 2014, $8,000,000. 

(7) For fiscal year 2015, $8,000,000. 

(8) For fiscal year 2016, $6,000,000. 

(9) For fiscal year 2017, $7,000,000. 

Subtitle D—Trade Provisions 

PART I—EXTENSION OF CERTAIN TRADE 

BENEFITS 

SEC. 15401. SHORT TITLE. 

This part may be cited as the ‘‘Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008’’ or the 

‘‘HOPE II Act’’. 

SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES. 

(a) VALUE-ADDED RULE.—Section 213A(b) of the Carribean 

Basin Economic Recovery Act (19 U.S.C. 2703a(b)) is amended 

as follows: 

(1) The subsection heading is amended to read as follows: 

‘‘APPAREL AND OTHER TEXTILE ARTICLES’’. 

(2) Paragraph (1) is amended to read as follows: 

‘‘(1) VALUE-ADDED RULE FOR APPAREL ARTICLES.— 
H. R. 2419—606 

‘‘(A) IN GENERAL.—Apparel articles described in 

subparagraph (B) of a producer or entity controlling production that are imported directly from Haiti or the Dominican 

Republic shall enter the United States free of duty during 

an applicable 1-year period, subject to the limitations set 

forth in subparagraphs (B) and (C), and subject to subparagraph (D).’’. 

(3) Paragraph (2) is amended— 

(A) in subparagraph (A)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) in clause (i), by striking ‘‘subparagraph (C)’’ 

and inserting ‘‘clause (iii)’’; 

(iii) in clause (ii), by striking ‘‘subparagraph (C)’’ 

and inserting ‘‘clause (iii)’’; 

(iv) in the matter following clause (ii), by striking 

‘‘subparagraph (E)(I)’’ and inserting ‘‘clause (v)(I)’’; 

(v) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; and 

(vi) by redesignating subparagraph (A) as clause 

(i); 

(B) in subparagraph (B)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) by striking ‘‘subparagraph (A)(i)’’ each place 

it appears and inserting ‘‘clause (i)(I)’’; 

(iii) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; and 

(iv) by redesignating subparagraph (B) as clause 

(ii); 

(C) in subparagraph (C)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) in the matter preceding clause (i), by striking 

‘‘subparagraph (A)’’ and inserting ‘‘clause (i)’’; 

(iii) in clause (ii), by striking ‘‘that enters into 

force’’ and all that follows through ‘‘et seq.)’’ and 

inserting ‘‘that enters into force thereafter’’; 

(iv) by redesignating clauses (i) through (v) as 

subclauses (I) through (V), respectively; and 

(v) by redesignating subparagraph (C) as clause 

(iii); 

(D) in subparagraph (D)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) in clause (i)— 

(I) in the matter preceding subclause (I), by 

striking ‘‘subparagraph (A)’’ and inserting ‘‘clause 

(i)’’; 

(II) in subclause (I), by striking ‘‘clause (i) 

of subparagraph (A)’’ and inserting ‘‘subclause (I) 

of clause (i)’’; 

(III) in subclause (II), by striking ‘‘clause (ii) 

of subparagraph (A)’’ and inserting ‘‘subclause (II) 

of clause (i)’’; 

(IV) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 
H. R. 2419—607 

(V) by redesignating clause (i) as subclause 

(I); 

(iii) in clause (ii)— 

(I) in the matter preceding subclause (I), by 

striking ‘‘subparagraph (A)’’ and inserting ‘‘clause 

(i)’’; 

(II) in subclause (I), by striking ‘‘clause (i) 

of subparagraph (A)’’ and inserting ‘‘subclause (I) 

of clause (i)’’; 

(III) in subclause (II), by striking ‘‘clause (ii) 

of subparagraph (A)’’ and inserting ‘‘subclause (II) 

of clause (i)’’; 

(IV) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 

(V) by redesignating clause (ii) as subclause 

(II); 

(iv) in clause (iii)— 

(I) by striking ‘‘clause (i)(I) or (ii)(I)’’ each place 

it appears and inserting ‘‘subclause (I)(aa) or 

(II)(aa)’’; 

(II) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 

(III) by redesignating clause (iii) as subclause 

(III); 

(v) by amending clause (iv) to read as follows: 

‘‘(IV) INCLUSION IN CALCULATION OF OTHER

ARTICLES RECEIVING PREFERENTIAL TREATMENT.— Entries of apparel articles that receive preferential 

treatment under any provision of law other than 

this subparagraph or are subject to the ‘General’ 

column 1 rate of duty under the HTS are not 

included in the annual aggregation under subclause (I) or (II) unless the producer or entity 

controlling production elects, at the time the 

annual aggregation calculation is made, to include 

such entries in such aggregation.’’; and 

(vi) by redesignating subparagraph (D) as clause 

(iv); 

(E) in subparagraph (E)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) in clause (i)— 

(I) by redesignating subclauses (I) through 

(III) as items (aa) through (cc), respectively; and 

(II) by redesignating clause (i) as subclause 

(I); 

(iii) in clause (ii)— 

(I) by striking ‘‘subparagraph (C)’’ and 

inserting ‘‘clause (iii)’’; and 

(II) by redesignating clause (ii) as subclause 

(II); and 

(iv) by redesignating subparagraph (E) as clause 

(v); 

(F) in subparagraph (F)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) in clause (i)— 
H. R. 2419—608 

(I) by striking ‘‘The Bureau of Customs and 

Border Protection’’ and inserting ‘‘U.S. Customs 

and Border Protection’’; 

(II) by striking ‘‘subparagraphs (A) and (D)’’ 

and inserting ‘‘clauses (i) and (iv)’’; and 

(III) by redesignating clause (i) as subclause 

(I); 

(iii) in clause (ii)— 

(I) in the matter preceding subclause (I)— 

(aa) by striking ‘‘the Bureau of Customs 

and Border Protection’’ and inserting ‘‘U.S. 

Customs and Border Protection’’; 

(bb) by striking ‘‘subparagraph (A)’’ each 

place it appears and inserting ‘‘clause (i)’’; and 

(cc) by striking ‘‘subparagraph (D)’’ and 

inserting ‘‘clause (iv)’’; 

(II) in subclause (I), by striking ‘‘clause (i) 

of subparagraph (A)’’ and inserting ‘‘subclause (I) 

of clause (i)’’; 

(III) in subclause (II), by striking ‘‘clause (ii) 

of subparagraph (A)’’ and inserting ‘‘subclause (II) 

of clause (i)’’; 

(IV) in the matter following subclause (II), 

by striking ‘‘subparagraph (E)(i)’’ and inserting 

‘‘clause (v)(I)’’; 

(V) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 

(VI) by redesignating clause (ii) as subclause 

(II); 

(iv) in clause (iii)— 

(I) in subclause (I)— 

(aa) by striking ‘‘paragraph (1)’’ and 

inserting ‘‘subparagraph (A)’’; and 

(bb) by striking ‘‘subparagraph (A) or (D)’’ 

and inserting ‘‘clause (i) or (iv)’’; 

(II) in subclause (II), by striking ‘‘clause (ii) 

of this subparagraph’’ and inserting ‘‘subclause (II) 

of this clause’’; 

(III) in the matter following subclause (II)— 

(aa) by striking ‘‘the Bureau of Customs 

and Border Protection’’ each place it appears 

and inserting ‘‘U.S. Customs and Border 

Protection’’; and 

(bb) by striking ‘‘subclause (II)’’ and 

inserting ‘‘item (bb)’’; and 

(IV) in item (bb)— 

(aa) by striking ‘‘paragraph (1)’’ and 

inserting ‘‘subparagraph (A)’’; and 

(bb) by striking ‘‘subparagraph (A) or (D)’’ 

and inserting ‘‘clause (i) or (iv)’’; and 

(V) in the matter following item (bb), by 

striking ‘‘paragraph (1)’’ and inserting ‘‘subparagraph (A)’’; 

(VI) by redesignating items (aa) and (bb) as 

subitems (AA) and (BB), respectively; 

(VII) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 
H. R. 2419—609 

(VIII) by redesignating clause (iii) as subclause 

(III); and 

(v) by redesignating subparagraph (F) as clause 

(vi); 

(G) in subparagraph (G)— 

(i) by moving such subparagraph 2 ems to the 

right; 

(ii) in clause (i)— 

(I) in the matter preceding subclause (I), by 

striking ‘‘subparagraph (A) or (D)’’ and inserting 

‘‘clause (i) or (iv)’’; 

(II) in subclause (II)— 

(aa) in item (dd), by striking ‘‘under the 

Bipartisan Trade Promotion Authority Act of 

2002’’ and inserting ‘‘with respect to the 

United States’’; and 

(bb) by redesignating items (aa) through 

(dd) as subitems (AA) through (DD), respectively; 

(III) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 

(IV) by redesignating clause (i) as subclause 

(I); 

(iii) in clause (ii)— 

(I) in subclause (I), by striking ‘‘clause (i)(I)’’ 

and inserting ‘‘subclause (I)(aa)’’; 

(II) in subclause (II), by striking ‘‘clause (i)(II)’’ 

and inserting ‘‘subclause (I)(bb)’’; 

(III) by redesignating subclauses (I) and (II) 

as items (aa) and (bb), respectively; and 

(IV) by redesignating clause (ii) as subclause 

(II); and 

(iv) by redesignating subparagraph (G) as clause 

(vii); and 

(H) by striking ‘‘(2) APPAREL ARTICLES DESCRIBED.— 

’’ and inserting the following: 

‘‘(B) APPAREL ARTICLES DESCRIBED.—’’. 

(4) Paragraph (3) is amended— 

(A) by redesignating such paragraph as subparagraph 

(C) and moving it 2 ems to the right; 

(B) by striking ‘‘paragraph (1)’’ each place it appears 

and inserting ‘‘subparagraph (A)’’; and 

(C) in the table— 

(i) by striking ‘‘1.5 percent’’ and inserting ‘‘1.25 

percent’’; 

(ii) by striking ‘‘1.75 percent’’ and inserting ‘‘1.25 

percent’’; and 

(iii) by striking ‘‘2 percent’’ and inserting ‘‘1.25 

percent’’. 

(5) The following is added after subparagraph (C), as 

redesignated by paragraph (4)(A) of this subsection: 

‘‘(D) OTHER PREFERENTIAL TREATMENT NOT AFFECTED

BY QUANTITATIVE LIMITATIONS.—Any apparel article that 

qualifies for preferential treatment under paragraph (2), 

(3), (4), or (5) or any other provision of this title shall 

not be subject to, or included in the calculation of, the 

quantitative limitations under subparagraph (C).’’. 
H. R. 2419—610 

(b) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT

ARTICLES.—Section 213A(b) of the Carribean Basin Economic 

Recovery Act is amended by striking paragraph (4) and inserting 

the following: 

‘‘(2) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT

ARTICLES.— 

‘‘(A) SPECIAL RULE FOR ARTICLES OF CHAPTER 62 OF

THE HTS.— 

‘‘(i) GENERAL RULE.—Any apparel article classifiable under chapter 62 of the HTS that is wholly assembled, or knit-to-shape, in Haiti from any combination 

of fabrics, fabric components, components knit-toshape, or yarns and is imported directly from Haiti 

or the Dominican Republic shall enter the United 

States free of duty, subject to clauses (ii) and (iii), 

without regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which 

the article is made. 

‘‘(ii) LIMITATION.—The preferential treatment 

described in clause (i) shall be extended, in the 1- 

year period beginning October 1, 2008, and in each 

of the 9 succeeding 1-year periods, to not more than 

70,000,000 square meter equivalents of apparel articles 

described in such clause. 

‘‘(iii) OTHER PREFERENTIAL TREATMENT NOT

AFFECTED BY QUANTITATIVE LIMITATION.—Any apparel 

article that qualifies for preferential treatment under 

paragraph (1), (3), (4), or (5) or subparagraph (B) of 

this paragraph or any other provision of this title shall 

not be subject to, or included in the calculation of, 

the quantitative limitation under clause (ii). 

‘‘(B) SPECIAL RULE FOR CERTAIN ARTICLES OF CHAPTER

61 OF THE HTS.— ‘‘(i) GENERAL RULE.—Any apparel article classifiable under chapter 61 of the HTS that is wholly assembled, or knit-to-shape, in Haiti from any combination 

of fabrics, fabric components, components knit-toshape, or yarns and is imported directly from Haiti 

or the Dominican Republic shall enter the United 

States free of duty, subject to clauses (ii), (iii), and 

(iv), without regard to the source of the fabric, fabric 

components, components knit-to-shape, or yarns from 

which the article is made. 

‘‘(ii) EXCLUSIONS.—The preferential treatment 

described in clause (i) shall not apply to the following: 

‘‘(I) The following apparel articles of cotton, 

for men or boys, that are classifiable under subheading 6109.10.00 of the HTS: 

‘‘(aa) All white T-shirts, with short 

hemmed sleeves and hemmed bottom, with 

crew or round neckline or with V-neck and 

with a mitered seam at the center of the V, 

and without pockets, trim, or embroidery. 

‘‘(bb) All white singlets, without pockets, 

trim, or embroidery. 

‘‘(cc) Other T-shirts, but not including 

thermal undershirts. 
H. R. 2419—611 

‘‘(II) T-shirts for men or boys that are classifiable under subheading 6109.90.10. 

‘‘(III) The following apparel articles of cotton, 

for men or boys, that are classifiable under subheading 6110.20.20 of the HTS: 

‘‘(aa) Sweatshirts. 

‘‘(bb) Pullovers, other than sweaters, vests, 

or garments imported as part of playsuits. 

‘‘(IV) Sweatshirts for men or boys, of manmade fibers and containing less than 65 percent 

by weight of man-made fibers, that are classifiable 

under subheading 6110.30.30 of the HTS. 

‘‘(iii) LIMITATION.—The preferential treatment 

described in clause (i) shall be extended, in the 1- 

year period beginning October 1, 2008, and in each 

of the 9 succeeding 1-year periods, to not more than 

70,000,000 square meter equivalents of apparel articles 

described in such clause. 

‘‘(iv) OTHER PREFERENTIAL TREATMENT NOT

AFFECTED BY QUANTITATIVE LIMITATION.—Any apparel 

article that qualifies for preferential treatment under 

paragraph (1), (3), (4), or (5) or subparagraph (A) of 

this paragraph or any other provision of this title shall 

not be subject to, or included in the calculation of, 

the quantitative limitation under clause (iii).’’. 

(c) SINGLE TRANSFORMATION RULES NOT SUBJECT TO QUAN- TITATIVE LIMITATIONS.—Section 213A(b) of the Caribbean Basin 

Economic Recovery Act is amended by striking paragraph (5) and 

inserting the following: 

‘‘(3) APPAREL AND OTHER ARTICLES SUBJECT TO CERTAIN

ASSEMBLY RULES.— ‘‘(A) BRASSIERES.—Any apparel article classifiable 

under subheading 6212.10 of the HTS that is wholly assembled, or knit-to-shape, in Haiti from any combination of 

fabrics, fabric components, components knit-to-shape, or 

yarns and is imported directly from Haiti or the Dominican 

Republic shall enter the United States free of duty, without 

regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which the article is 

made. 

‘‘(B) OTHER APPAREL ARTICLES.—Any of the following 

apparel articles that is wholly assembled, or knit-to-shape, 

in Haiti from any combination of fabrics, fabric components, 

components knit-to-shape, or yarns and is imported directly 

from Haiti or the Dominican Republic shall enter the 

United States free of duty, without regard to the source 

of the fabric, fabric components, components knit-to-shape, 

or yarns from which the article is made: 

‘‘(i) Any apparel article that is of a type listed 

in chapter rule 3, 4, or 5 for chapter 61 of the HTS 

(as such chapter rules are contained in section A of 

the Annex to Proclamation 8213 of the President of 

December 20, 2007) as being excluded from the scope 

of such chapter rule, when such chapter rule is applied 

to determine whether an apparel article is an originating good for purposes of general note 29(n) to the 

HTS, except that, for purposes of this clause, reference 
H. R. 2419—612 

in such chapter rules to ‘6104.12.00’ shall be deemed 

to be a reference to ‘6104.19.60’. 

‘‘(ii)(I) Subject to subclause (II), any apparel article 

that is of a type listed in chapter rule 3(a), 4(a), or 

5(a) for chapter 62 of the HTS, as such chapter rules 

are contained in paragraph 9 of section A of the Annex 

to Proclamation 8213 of the President of December 

20, 2007. 

‘‘(II) Subclause (I) shall not include any apparel 

article to which subparagraph (A) of this paragraph 

applies. 

‘‘(C) LUGGAGE AND SIMILAR ITEMS.—Any article classifiable under subheading 4202.12, 4202.22, 4202.32 or 

4202.92 of the HTS that is wholly assembled in Haiti 

and is imported directly from Haiti or the Dominican 

Republic shall enter the United States free of duty, without 

regard to the source of the fabric, components, or materials 

from which the article is made. 

‘‘(D) HEADGEAR.—Any article classifiable under 

heading 6501, 6502, or 6504 of the HTS, or under subheading 6505.90 of the HTS, that is wholly assembled, 

knit-to-shape, or formed in Haiti from any combination 

of fabrics, fabric components, components knit-to-shape, 

or yarns and is imported directly from Haiti or the Dominican Republic shall enter the United States free of duty, 

without regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which the 

article is made. 

‘‘(E) CERTAIN SLEEPWEAR.—Any of the following 

apparel articles that is wholly assembled, or knit-to-shape, 

in Haiti from any combination of fabrics, fabric components, 

components knit-to-shape, or yarns and is imported directly 

from Haiti or the Dominican Republic shall enter the 

United States free of duty, without regard to the source 

of the fabric, fabric components, components knit-to-shape, 

or yarns from which the article is made: 

‘‘(i) Pajama bottoms and other sleepwear for 

women and girls, of cotton, that are classifiable under 

subheading 6208.91.30, or of man-made fibers, that 

are classifiable under subheading 6208.92.00. 

‘‘(ii) Pajama bottoms and other sleepwear for girls, 

of other textile materials, that are classifiable under 

subheading 6208.99.20.’’. 

(d) EARNED IMPORT ALLOWANCE RULES.—Section 231A(b) of 

the Caribbean Basin Economic Recovery Act is amended by adding 

at the end the following new paragraph: 

‘‘(4) EARNED IMPORT ALLOWANCE RULE.— 

‘‘(A) IN GENERAL.—Apparel articles wholly assembled, 

or knit-to-shape, in Haiti from any combination of fabrics, 

fabric components, components knit-to-shape, or yarns and 

imported directly from Haiti or the Dominican Republic 

shall enter the United States free of duty, without regard 

to the source of the fabric, fabric components, components 

knit-to-shape, or yarns from which the articles are made, 

if such apparel articles are accompanied by an earned 

import allowance certificate that reflects the amount of 

credits equal to the total square meter equivalents of such 
H. R. 2419—613 

apparel articles, in accordance with the program established under subparagraph (B). For purposes of determining the quantity of square meter equivalents under 

this subparagraph, the conversion factors listed in ‘Correlation: U.S. Textile and Apparel Industry Category System 

with the Harmonized Tariff Schedule of the United States 

of America, 2008’, or its successor publications, of the 

United States Department of Commerce, shall apply. 

‘‘(B) EARNED IMPORT ALLOWANCE PROGRAM.— 

‘‘(i) ESTABLISHMENT.—The Secretary of Commerce 

shall establish a program to provide earned import 

allowance certificates to any producer or entity controlling production for purposes of subparagraph (A), based 

on the elements described in clause (ii). 

‘‘(ii) ELEMENTS.—The elements referred to in 

clause (i) are the following: 

‘‘(I) One credit shall be issued to a producer 

or an entity controlling production for every three 

square meter equivalents of qualifying woven 

fabric or qualifying knit fabric that the producer 

or entity controlling production can demonstrate 

that it purchased for the manufacture in Haiti 

of articles like or similar to any article eligible 

for preferential treatment under subparagraph (A). 

The Secretary of Commerce shall, if requested by 

a producer or entity controlling production, create 

and maintain an account for such producer or 

entity controlling production, into which such 

credits shall be deposited. 

‘‘(II) Such producer or entity controlling 

production may redeem credits issued under subclause (I) for earned import allowance certificates 

reflecting such number of earned credits as the 

producer or entity may request and has available. 

‘‘(III) The Secretary of Commerce may require 

any textile mill or other entity located in the 

United States that exports to Haiti qualifying 

woven fabric or qualifying knit fabric to submit, 

upon such export or upon request, documentation, 

such as a Shipper’s Export Declaration, to the 

Secretary of Commerce— 

‘‘(aa) verifying that the qualifying woven 

fabric or qualifying knit fabric was exported 

to a producer in Haiti or to an entity controlling production; and 

‘‘(bb) identifying such producer or entity 

controlling production, and the quantity and 

description of qualifying woven fabric or qualifying knit fabric exported to such producer 

or entity controlling production. 

‘‘(IV) The Secretary of Commerce may require 

that a producer or entity controlling production 

submit documentation to verify purchases of qualifying woven fabric or qualifying knit fabric. 

‘‘(V) The Secretary of Commerce may make 

available to each person or entity identified in 

documentation submitted under subclause (III) or 
H. R. 2419—614 

(IV) information contained in such documentation 

that relates to the purchase of qualifying woven 

fabric or qualifying knit fabric involving such person or entity. 

‘‘(VI) The program under this subparagraph 

shall be established so as to allow, to the extent 

feasible, the submission, storage, retrieval, and 

disclosure of information in electronic format, 

including information with respect to the earned 

import allowance certificates required under 

subparagraph (A)(i). 

‘‘(VII) The Secretary of Commerce may reconcile discrepancies in information provided under 

subclause (III) or (IV) and verify the accuracy of 

such information. 

‘‘(VIII) The Secretary of Commerce shall establish procedures to carry out the program under 

this subparagraph and may establish additional 

requirements to carry out this subparagraph. Such 

additional requirements may include— 

‘‘(aa) submissions by textile mills or other 

entities in the United States documenting 

exports of yarns wholly formed in the United 

States to countries described in paragraph 

(1)(B)(iii) for the manufacture of qualifying 

knit fabric; and 

‘‘(bb) procedures imposed on producers or 

entities controlling production to allow the 

Secretary of Commerce to obtain and verify 

information relating to the production of qualifying knit fabric. 

‘‘(iii) QUALIFYING WOVEN FABRIC DEFINED.—For 

purposes of this subparagraph, the term ‘qualifying 

woven fabric’ means fabric wholly formed in the United 

States from yarns wholly formed in the United States, 

except that— 

‘‘(I) fabric otherwise eligible as qualifying 

woven fabric shall not be ineligible as qualifying 

woven fabric because the fabric contains nylon filament yarn to which section 213(b)(2)(A)(vii)(IV) 

applies; 

‘‘(II) fabric that would otherwise be ineligible 

as qualifying woven fabric because the fabric contains yarns not wholly formed in the United States 

shall not be ineligible as qualifying woven fabric 

if the total weight of all such yarns is not more 

than 10 percent of the total weight of the fabric; 

and 

‘‘(III) fabric otherwise eligible as qualifying 

woven fabric shall not be ineligible as qualifying 

fabric because the fabric contains yarns covered 

by clause (i) or (ii) of paragraph (5)(A). 

‘‘(iv) QUALIFYING KNIT FABRIC DEFINED.—For purposes of this subparagraph, the term ‘qualifying knit 

fabric’ means fabric or knit-to-shape components 

wholly formed or knit-to-shape in any country or any 

combination of countries described in paragraph 
H. R. 2419—615 

(1)(B)(iii), from yarns wholly formed in the United 

States, except that— 

‘‘(I) fabric or knit-to-shape components otherwise eligible as qualifying knit fabric shall not 

be ineligible as qualifying knit fabric because the 

fabric or knit-to-shape components contain nylon 

filament yarn to which section 213(b)(2)(A)(vii)(IV) 

applies; 

‘‘(II) fabric or knit-to-shape components that 

would otherwise be ineligible as qualifying knit 

fabric because the fabric or knit-to-shape components contain yarns not wholly formed in the 

United States shall not be ineligible as qualifying 

knit fabric if the total weight of all such yarns 

is not more than 10 percent of the total weight 

of the fabric or knit-to-shape components; and 

‘‘(III) fabric or knit-to-shape components otherwise eligible as qualifying knit fabric shall not 

be ineligible as qualifying knit fabric because the 

fabric or knit-to-shape components contain yarns 

covered by clause (i) or (ii) of paragraph (5)(A). 

‘‘(C) REVIEW BY UNITED STATES GOVERNMENT ACCOUNT- ABILITY OFFICE.—The United States Government Accountability Office shall review the program established under 

subparagraph (B) annually for the purpose of evaluating 

the effectiveness of, and making recommendations for 

improvements in, the program. 

‘‘(D) ENFORCEMENT PROVISIONS.— ‘‘(i) FRAUDULENT CLAIMS OF PREFERENCE.—Any 

person who makes a false claim for preference under 

the program established under subparagraph (B) shall 

be subject to any applicable civil or criminal penalty 

that may be imposed under the customs laws of the 

United States or under title 18, United States Code. 

‘‘(ii) PENALTIES FOR OTHER FRAUDULENT INFORMATION.—The Secretary of Commerce may establish and 

impose penalties for the submission to the Secretary 

of Commerce of fraudulent information under the program established under subparagraph (B), other than 

a claim described in clause (i).’’. 

(e) SHORT SUPPLY RULES .—Section 213A(b) of the Caribbean 

Basin Economic Recovery Act is amended by adding at the end 

the following: 

‘‘(5) SHORT SUPPLY PROVISION.— 

‘‘(A) IN GENERAL.—Any apparel article that is wholly 

assembled, or knit-to-shape, in Haiti from any combination 

of fabrics, fabric components, components knit-to-shape, 

or yarns and is imported directly from Haiti or the Dominican Republic shall enter the United States free of duty, 

without regard to the source of the fabrics, fabric components, components knit-to-shape, or yarns from which the 

article is made, if the fabrics, fabric components, components knit-to-shape, or yarns comprising the component 

that determines the tariff classification of the article are 

of any of the following: 

‘‘(i) Fabrics or yarns, to the extent that apparel 

articles of such fabrics or yarns would be eligible for 
H. R. 2419—616 

preferential treatment, without regard to the source 

of the fabrics or yarns, under Annex 401 of the NAFTA. 

‘‘(ii) Fabrics or yarns, to the extent that such fabrics or yarns are designated as not being available 

in commercial quantities for purposes of— 

‘‘(I) section 213(b)(2)(A)(v) of this Act; 

‘‘(II) section 112(b)(5) of the African Growth 

and Opportunity Act; 

‘‘(III) clause (i)(III) or (ii) of section 204(b)(3)(B) 

of the Andean Trade Preference Act; or 

‘‘(IV) any other provision, relating to determining whether a textile or apparel article is an 

originating good eligible for preferential treatment, 

of a law that implements a free trade agreement 

entered into by the United States that is in effect 

at the time the claim for preferential treatment 

is made. 

‘‘(B) REMOVAL OF DESIGNATION OF FABRICS OR YARNS

NOT AVAILABLE IN COMMERCIAL QUANTITIES.—If the President determines that— 

‘‘(i) any fabric or yarn described in clause (i) of 

subparagraph (A) was determined to be eligible for 

preferential treatment, or 

‘‘(ii) any fabric or yarn described in clause (ii) 

of subparagraph (A) was designated as not being available in commercial quantities, 

on the basis of fraud, the President is authorized to remove 

the eligibility or designation (as the case may be) of that 

fabric or yarn with respect to articles entered after such 

removal.’’. 

(f) MISCELLANEOUS PROVISIONS.— (1) RELATIONSHIP TO OTHER PREFERENTIAL PROGRAMS.— Section 213A(b) of the Caribbean Basin Economic Recovery 

Act is amended by adding at the end the following: 

‘‘(6) OTHER PREFERENTIAL TREATMENT NOT AFFECTED.—The 

duty-free treatment provided under this subsection is in addition to any other preferential treatment under this title.’’. 

(2) DEFINITIONS.—Section 213A(a) of the Caribbean Basin 

Economic Recovery Act (19 U.S.C. 2703a(a)) is amended by 

adding at the end the following: 

‘‘(3) IMPORTED DIRECTLY FROM HAITI OR THE DOMINICAN

REPUBLIC.—Articles are ‘imported directly from Haiti or the 

Dominican Republic’ if— 

‘‘(A) the articles are shipped directly from Haiti or 

the Dominican Republic into the United States without 

passing through the territory of any intermediate country; 

or 

‘‘(B) the articles are shipped from Haiti or the Dominican Republic into the United States through the territory 

of an intermediate country, and— 

‘‘(i) the articles in the shipment do not enter into 

the commerce of any intermediate country, and the 

invoices, bills of lading, and other shipping documents 

specify the United States as the final destination; or 

‘‘(ii) the invoices and other documents do not 

specify the United States as the final destination, but 

the articles in the shipment— 
H. R. 2419—617 

‘‘(I) remain under the control of the customs 

authority in the intermediate country; 

‘‘(II) do not enter into the commerce of the 

intermediate country except for the purpose of a 

sale other than at retail; and 

‘‘(III) have not been subjected to operations 

in the intermediate country other than loading, 

unloading, or other activities necessary to preserve 

the articles in good condition. 

‘‘(4) KNIT-TO-SHAPE.—A good is ‘knit-to-shape’ if 50 percent 

or more of the exterior surface area of the good is formed 

by major parts that have been knitted or crocheted directly 

to the shape used in the good, with no consideration being 

given to patch pockets, applique ́s, or the like. Minor cutting, 

trimming, or sewing of those major parts shall not affect the 

determination of whether a good is ‘knit-to-shape.’ 

‘‘(5) WHOLLY ASSEMBLED.—A good is ‘wholly assembled’ 

in Haiti if all components, of which there must be at least 

two, pre-existed in essentially the same condition as found 

in the finished good and were combined to form the finished 

good in Haiti. Minor attachments and minor embellishments 

(for example, applique ́s, beads, spangles, embroidery, and buttons) not appreciably affecting the identity of the good, and 

minor subassemblies (for example, collars, cuffs, plackets, and 

pockets), shall not affect the determination of whether a good 

is ‘wholly assembled’ in Haiti.’’. 

(g) TERMINATION.—Section 213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a) is amended by adding at 

the end the following new subsection: 

‘‘(g) TERMINATION.—Except as provided in subsection (b)(1), 

the duty-free treatment provided under this section shall remain 

in effect until September 30, 2018.’’. 

(h) CONFORMING AMENDMENTS.—Subsection (e)(1) of section 

213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 

2703a(e)(1)) is amended by striking ‘‘the Bureau of Customs and 

Border Protection’’ each place it appears and inserting ‘‘U.S. Customs and Border Protection’’. 

SEC. 15403. LABOR OMBUDSMAN AND TECHNICAL ASSISTANCE 

IMPROVEMENT AND COMPLIANCE NEEDS ASSESSMENT 

AND REMEDIATION PROGRAM. 

Section 213A of the Caribbean Basin Economic Recovery Act 

(19 U.S.C. 2703a), as amended by section 15402 of this Act, is 

amended— 

(1) in subsection (a)— 

(A) by redesignating paragraph (5) as paragraph (8): 

(B) by redesignating paragraphs (2) through (4) as 

paragraphs (4) through (6), respectively; 

(C) by inserting after paragraph (1) the following new 

paragraphs: 

‘‘(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—. The term 

‘‘appropriate congressional committees’’ means the Committee 

on Finance of the Senate and the Committee on Ways and 

Means of the House of Representatives. 

‘‘(3) CORE LABOR STANDARDS.—The term ‘‘core labor standards’’ means— 

‘‘(A) freedom of association; 
H. R. 2419—618 

‘‘(B) the effective recognition of the right to bargain 

collectively; 

‘‘(C) the elimination of all forms of compulsory or forced 

labor; 

‘‘(D) the effective abolition of child labor and a prohibition on the worst forms of child labor; and 

‘‘(E) the elimination of discrimination in respect of 

employment and occupation.’’; and 

(D) by inserting after paragraph (6) (as redesignated) 

the following new paragraph: 

‘‘(7) TAICNAR PROGRAM.—The term ‘TAICNAR Program’ 

means the Technical Assistance Improvement and Compliance 

Needs Assessment and Remediation Program established 

pursuant to subsection (e).’’; 

(2) by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively; and 

(3) by inserting after subsection (d) the following new subsection: 

‘‘(e) TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE

NEEDS ASSESSMENT AND REMEDIATION PROGRAM.— ‘‘(1) CONTINUED ELIGIBILITY FOR PREFERENCES.— ‘‘(A) PRESIDENTIAL CERTIFICATION OF COMPLIANCE BY

HAITI WITH REQUIREMENTS.—Upon the expiration of the 

16-month period beginning on the date of the enactment 

of the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008, Haiti shall continue to 

be eligible for the preferential treatment provided under 

subsection (b) only if the President determines and certifies 

to the Congress that— 

‘‘(i) Haiti has implemented the requirements set 

forth in paragraphs (2) and (3); and 

‘‘(ii) Haiti has agreed to require producers of articles for which duty-free treatment may be requested 

under subsection (b) to participate in the TAICNAR 

Program described in paragraph (3) and has developed 

a system to ensure participation in such program by 

such producers, including by developing and 

maintaining the registry described in paragraph 

(2)(B)(i). 

‘‘(B) EXTENSION.—The President may extend the period 

for compliance by Haiti under subparagraph (A) if the 

President— 

‘‘(i) determines that Haiti has made a good faith 

effort toward such compliance and has agreed to take 

additional steps to come into full compliance that are 

satisfactory to the President; and 

‘‘(ii) provides to the appropriate congressional 

committees, not later than 6 months after the last 

day of the 16-month period specified in subparagraph 

(A), and every 6 months thereafter, a report identifying 

the steps that Haiti has agreed to take to come into 

full compliance and the progress made over the preceding 6-month period in implementing such steps. 

‘‘(C) CONTINUING COMPLIANCE.— ‘‘(i) TERMINATION OF PREFERENTIAL TREATMENT.— If, after making a certification under subparagraph 

(A), the President determines that Haiti is no longer 
H. R. 2419—619 

meeting the requirements set forth in subparagraph 

(A), the President shall terminate the preferential 

treatment provided under subsection (b), unless the 

President determines, after consulting with the appropriate congressional committees, that meeting such 

requirements is not practicable because of extraordinary circumstances existing in Haiti when the determination is made. 

‘‘(ii) SUBSEQUENT COMPLIANCE.—If the President, 

after terminating preferential treatment under clause 

(i), determines that Haiti is meeting the requirements 

set forth in subparagraph (A), the President shall 

reinstate the application of preferential treatment 

under subsection (b). 

‘‘(2) LABOR OMBUDSMAN.— ‘‘(A) IN GENERAL.—The requirement under this paragraph is that Haiti has established an independent Labor 

Ombudsman’s Office within the national government that— 

‘‘(i) reports directly to the President of Haiti; 

‘‘(ii) is headed by a Labor Ombudsman chosen 

by the President of Haiti, in consultation with Haitian 

labor unions and industry associations; and 

‘‘(iii) is vested with the authority to perform the 

functions described in subparagraph (B). 

‘‘(B) FUNCTIONS.—The functions of the Labor Ombudsman’s Office shall include— 

‘‘(i) developing and maintaining a registry of producers of articles for which duty-free treatment may 

be requested under subsection (b), and developing, in 

consultation and coordination with any other appropriate officials of the Government of Haiti, a system 

to ensure participation by such producers in the 

TAICNAR Program described in paragraph (3); 

‘‘(ii) overseeing the implementation of the 

TAICNAR Program described in paragraph (3); 

‘‘(iii) receiving and investigating comments from 

any interested party regarding the conditions described 

in paragraph (3)(B) in facilities of producers listed 

in the registry described in clause (i) and, where appropriate, referring such comments or the result of such 

investigations to the appropriate Haitian authorities, 

or to the entity operating the TAICNAR Program 

described in paragraph (3); 

‘‘(iv) assisting, in consultation and coordination 

with any other appropriate Haitian authorities, producers listed in the registry described in clause (i) 

in meeting the conditions set forth in paragraph (3)(B); 

and 

‘‘(v) coordinating, with the assistance of the entity 

operating the TAICNAR Program described in paragraph (3), a tripartite committee comprised of appropriate representatives of government agencies, 

employers, and workers, as well as other relevant 

interested parties, for the purposes of evaluating 

progress in implementing the TAICNAR Program 

described in paragraph (3), and consulting on 

improving core labor standards and working conditions 
H. R. 2419—620 

in the textile and apparel sector in Haiti, and on other 

matters of common concern relating to such core labor 

standards and working conditions. 

‘‘(3) TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE

NEEDS ASSESSMENT AND REMEDIATION PROGRAM.— 

‘‘(A) IN GENERAL.—The requirement under this paragraph is that Haiti, in cooperation with the International 

Labor Organization, has established a Technical Assistance 

Improvement and Compliance Needs Assessment and 

Remediation Program meeting the requirements under 

subparagraph (C)— 

‘‘(i) to assess compliance by producers listed in 

the registry described in paragraph (2)(B)(i) with the 

conditions set forth in subparagraph (B) and to assist 

such producers in meeting such conditions; and 

‘‘(ii) to provide assistance to improve the capacity 

of the Government of Haiti— 

‘‘(I) to inspect facilities of producers listed in 

the registry described in paragraph (2)(B)(i); and 

‘‘(II) to enforce national labor laws and resolve 

labor disputes, including through measures 

described in subparagraph (E). 

‘‘(B) CONDITIONS DESCRIBED.—The conditions referred 

to in subparagraph (A) are— 

‘‘(i) compliance with core labor standards; and 

‘‘(ii) compliance with the labor laws of Haiti that 

relate directly to core labor standards and to ensuring 

acceptable conditions of work with respect to minimum 

wages, hours of work, and occupational health and 

safety. 

‘‘(C) REQUIREMENTS.—The requirements for the 

TAICNAR Program are that the program— 

‘‘(i) be operated by the International Labor 

Organization (or any subdivision, instrumentality, or 

designee thereof), which prepares the biannual reports 

described in subparagraph (D); 

‘‘(ii) be developed through a participatory process 

that includes the Labor Ombudsman described in paragraph (2) and appropriate representatives of government agencies, employers, and workers; 

‘‘(iii) assess compliance by each producer listed 

in the registry described in paragraph (2)(B)(i) with 

the conditions set forth in subparagraph (B) and identify any deficiencies by such producer with respect 

to meeting such conditions, including by— 

‘‘(I) conducting unannounced site visits to 

manufacturing facilities of the producer; 

‘‘(II) conducting confidential interviews separately with workers and management of the facilities of the producer; 

‘‘(III) providing to management and workers, 

and where applicable, worker organizations in the 

facilities of the producer, on a confidential basis— 

‘‘(aa) the results of the assessment carried 

out under this clause; and 

‘‘(bb) specific suggestions for remediating 

any such deficiencies; 
H. R. 2419—621 

‘‘(iv) assist the producer in remediating any deficiencies identified under clause (iii); 

‘‘(v) conduct prompt follow-up site visits to the 

facilities of the producer to assess progress on remediation of any deficiencies identified under clause (iii); 

and 

‘‘(vi) provide training to workers and management 

of the producer, and where appropriate, to other persons or entities, to promote compliance with subparagraph (B). 

‘‘(D) BIANNUAL REPORT.—The biannual reports referred 

to in subparagraph (C)(i) are a report, by the entity operating the TAICNAR Program, that is published (and available to the public in a readily accessible manner) on a 

biannual basis, beginning 6 months after Haiti implements 

the TAICNAR Program under this paragraph, covering 

the preceding 6-month period, and that includes the following: 

‘‘(i) The name of each producer listed in the registry described in paragraph (2)(B)(i) that has been 

identified as having met the conditions under subparagraph (B). 

‘‘(ii) The name of each producer listed in the registry described in paragraph (2)(B)(i) that has been 

identified as having deficiencies with respect to the 

conditions under subparagraph (B), and has failed to 

remedy such deficiencies. 

‘‘(iii) For each producer listed under clause (ii)— 

‘‘(I) a description of the deficiencies found to 

exist and the specific suggestions for remediating 

such deficiencies made by the entity operating the 

TAICNAR Program; 

‘‘(II) a description of the efforts by the producer 

to remediate the deficiencies, including a description of assistance provided by any entity to assist 

in such remediation; and 

‘‘(III) with respect to deficiencies that have 

not been remediated, the amount of time that has 

elapsed since the deficiencies were first identified 

in a report under this subparagraph. 

‘‘(iv) For each producer identified as having deficiencies with respect to the conditions described under 

subparagraph (B) in a prior report under this subparagraph, a description of the progress made in remediating such deficiencies since the submission of the 

prior report, and an assessment of whether any aspect 

of such deficiencies persists. 

‘‘(E) CAPACITY BUILDING.—The assistance to the 

Government of Haiti referred to in subparagraph (A)(ii) 

shall include programs— 

‘‘(i) to review the labor laws and regulations of 

Haiti and to develop and implement strategies for 

bringing the laws and regulations into conformity with 

core labor standards; 

‘‘(ii) to develop additional strategies for facilitating 

protection of core labor standards and providing acceptable conditions of work with respect to minimum 
H. R. 2419—622 

wages, hours of work, and occupational safety and 

health, including through legal, regulatory, and institutional reform; 

‘‘(iii) to increase awareness of worker rights, 

including under core labor standards and national 

labor laws; 

‘‘(iv) to promote consultation and cooperation 

between government representatives, employers, 

worker representatives, and United States importers 

on matters relating to core labor standards and 

national labor laws; 

‘‘(v) to assist the Labor Ombudsman appointed 

pursuant to paragraph (2) in establishing and coordinating operation of the committee described in paragraph (2)(B)(v); 

‘‘(vi) to assist worker representatives in more fully 

and effectively advocating on behalf of their members; 

and 

‘‘(vii) to provide on-the-job training and technical 

assistance to labor inspectors, judicial officers, and 

other relevant personnel to build their capacity to 

enforce national labor laws and resolve labor disputes. 

‘‘(4) COMPLIANCE WITH ELIGIBILITY CRITERIA.— 

‘‘(A) COUNTRY COMPLIANCE WITH WORKER RIGHTS ELIGIBILITY CRITERIA.—In making a determination of whether 

Haiti is meeting the requirement set forth in subsection 

(d)(1)(A)(vi) relating to internationally recognized worker 

rights, the President shall consider the reports produced 

under paragraph (3)(D). 

‘‘(B) PRODUCER ELIGIBILITY.— 

‘‘(i) IDENTIFICATION OF PRODUCERS.—Beginning in 

the second calendar year after the President makes 

the certification under paragraph (1)(A), the President 

shall identify on a biennial basis whether a producer 

listed in the registry described in paragraph (2)(B)(i) 

has failed to comply with core labor standards and 

with the labor laws of Haiti that directly relate to 

and are consistent with core labor standards. 

‘‘(ii) ASSISTANCE TO PRODUCERS; WITHDRAWAL, ETC., 

OF PREFERENTIAL TREATMENT.—For each producer that 

the President identifies under clause (i), the President 

shall seek to assist such producer in coming into 

compliance with core labor standards and with the 

labor laws of Haiti that directly relate to and are 

consistent with core labor standards. If such efforts 

fail, the President shall withdraw, suspend, or limit 

the application of preferential treatment under subsection (b) to articles of such producer. 

‘‘(iii) REINSTATING PREFERENTIAL TREATMENT.—If 

the President, after withdrawing, suspending, or limiting the application of preferential treatment under 

clause (ii) to articles of a producer, determines that 

such producer is complying with core labor standards 

and with the labor laws of Haiti that directly relate 

to and are consistent with core labor standards, the 

President shall reinstate the application of preferential 
H. R. 2419—623 

treatment under subsection (b) to the articles of the 

producer. 

‘‘(iv) CONSIDERATION OF REPORTS.—In making the 

identification under clause (i) and the determination 

under clause (iii), the President shall consider the 

reports made available under paragraph (3)(D). 

‘‘(5) REPORTS BY THE PRESIDENT.— ‘‘(A) IN GENERAL.—Not later than one year after the 

date of the enactment of the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008, 

and annually thereafter, the President shall transmit to 

the appropriate congressional committees a report on the 

implementation of this subsection during the preceding 

1-year period. 

‘‘(B) MATTERS TO BE INCLUDED.—Each report required 

by subparagraph (A) shall include the following: 

‘‘(i) An explanation of the efforts of Haiti, the President, and the International Labor Organization to 

carry out this subsection. 

‘‘(ii) A summary of each report produced under 

paragraph (3)(D) during the preceding 1-year period 

and a summary of the findings contained in such 

report. 

‘‘(iii) Identifications made under paragraph 

(4)(B)(i) and determinations made under paragraph 

(4)(B)(iii). 

‘‘(6) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection the sum 

of $10,000,000 for the period beginning on October 1, 2008, 

and ending on September 30, 2013.’’. 

SEC. 15404. PETITION PROCESS. 

Section 213A(d) of the Caribbean Basin Economic Recovery 

Act (19 U.S.C. 2703A(d)) is amended by adding at the end the 

following new paragraph: 

‘‘(4) PETITION PROCESS.—Any interested party may file a 

request to have the status of Haiti reviewed with respect to 

the eligibility requirements listed in paragraph (1), and the 

President shall provide for this purpose the same procedures 

as those that are provided for reviewing the status of eligible 

beneficiary developing countries with respect to the designation 

criteria listed in subsections (b) and (c) of section 502 of the 

Trade Act of 1974 (19 U.S.C. 2642 (b) and (c)).’’. 

SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVENTION. 

Section 213A(f) of the Caribbean Basin Economic Recovery 

Act, as redesignated by section 15403(2) of this Act, is amended 

by adding at the end the following new paragraph: 

‘‘(3) LIMITATION ON GOODS SHIPPED FROM THE DOMINICAN

REPUBLIC.— 

‘‘(A) LIMITATION.—Notwithstanding subsection (a)(5), 

relating to the definition of ‘imported directly from Haiti 

or the Dominican Republic’, articles described in subsection 

(b) that are shipped from the Dominican Republic, directly 

or through the territory of an intermediate country, 

whether or not such articles undergo processing in the 

Dominican Republic, shall not be considered to be ‘imported 
H. R. 2419—624 

directly from Haiti or the Dominican Republic’ until the 

President certifies to the Congress that Haiti and the 

Dominican Republic have developed procedures to prevent 

unlawful transshipment of the articles and the use of 

counterfeit documents related to the importation of the 

articles into the United States. 

‘‘(B) TECHNICAL AND OTHER ASSISTANCE.—The Commissioner responsible for U.S. Customs and Border Protection 

shall provide technical and other assistance to Haiti and 

the Dominican Republic to develop expeditiously the procedures described in subparagraph (A).’’. 

SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY. 

The President may exercise the authority under section 604 

of the Trade Act of 1974 to proclaim such modifications to the 

Harmonized Tariff Schedule of the United States as may be necessary to carry out this part and the amendments made by this 

part. 

SEC. 15407. REGULATIONS AND PROCEDURES. 

The President shall issue such regulations as may be necessary 

to carry out the amendments made by sections 15402, 15403, and 

15404. Regulations to carry out the amendments made by section 

15402 shall be issued not later than September 30, 2008. The 

Secretary of Commerce shall issue such procedures as may be 

necessary to carry out the amendment made by section 15402(d) 

not later than September 30, 2008. 

SEC. 15408. EXTENSION OF CBTPA. 

Section 213(b) of the Caribbean Basin Economic Recovery Act 

(19 U.S.C. 2703(b)) is amended— 

(1) in paragraph (2)(A)— 

(A) in clause (iii)— 

(i) in subclause (II)(cc), by striking ‘‘2008’’ and 

inserting ‘‘2010’’; and 

(ii) in subclause (IV)(dd), by striking ‘‘2008’’ and 

inserting ‘‘2010’’; and 

(B) in clause (iv)(II), by striking ‘‘6’’ and inserting 

‘‘8’’; and 

(2) in paragraph (5)(D)— 

(A) in clause (i), by striking ‘‘2008’’ and inserting 

‘‘2010’’; and 

(B) in clause (ii), by striking ‘‘108(b)(5)’’ and inserting 

‘‘section 108(b)(5)’’. 

SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE 

AND APPAREL PROVISIONS FOR HAITI. 

It is the sense of the Congress that the executive branch, 

particularly the Committee for the Implementation of Textile Agreements (CITA), U.S. Customs and Border Protection of the Department of Homeland Security, and the Department of Commerce, 

should interpret, implement, and enforce the provisions of section 

213A(b) of the Caribbean Basin Economic Recovery Act, as amended 

by section 15402 of this Act, relating to preferential treatment 

of textile and apparel articles, broadly in order to expand trade 

by maximizing opportunities for imports of articles eligible for preferential treatment under such section 213A(b). 
H. R. 2419—625 

SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI. 

It is the sense of the Congress that the Secretary of Commerce, 

in coordination with the United States Trade Representative, the 

Secretary of State, and the Commissioner responsible for U.S. Customs and Border Protection of the Department of Homeland Security, should lead a trade mission to Haiti, within 6 months after 

the date of the enactment of this Act, to promote trade between 

the United States and Haiti, to promote new economic opportunities 

afforded under the amendments made by section 15402 of this 

Act, and to help educate United States and Haitian business concerns about such opportunities. 

SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS. 

It is the sense of the Congress that Haiti, and other countries 

that receive preferences under trade preference programs of the 

United States that require effective visa systems to prevent transshipment, should ensure that monetary compensation for such visas 

is not required beyond the costs of processing the visa, including 

ensuring that such monetary compensation does not violate an 

applicable system to combat corruption and bribery. 

SEC. 15412. EFFECTIVE DATE. 

(a) IN GENERAL.—Except as provided in subsection (b), this 

part and the amendments made by this part shall take effect 

on the date of the enactment of this Act. 

(b) EXCEPTION.—The amendments made by section 15402 shall 

take effect on October 1, 2008, and shall apply to articles entered, 

or withdrawn from warehouse for consumption, on or after that 

date. 

PART II—MISCELLANEOUS TRADE 

PROVISIONS 

SEC. 15421. UNUSED MERCHANDISE DRAWBACK. 

(a) IN GENERAL.—Section 313(j)(2) of the Tariff Act of 1930 

(19 U.S.C. 1313(j)(2)) is amended by adding at the end the following: 

‘‘For purposes of subparagraph (A) of this paragraph, wine of the 

same color having a price variation not to exceed 50 percent between 

the imported wine and the exported wine shall be deemed to be 

commercially interchangeable.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to claims filed for drawback under section 

313(j)(2) of the Tariff Act of 1930 on or after the date of the 

enactment of this Act. 

SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF TRANSACTION VALUE OF IMPORTED MERCHANDISE. 

(a) REQUIREMENT ON IMPORTERS.— (1) IN GENERAL.—Pursuant to sections 484 and 485 of the 

Tariff Act of 1930 (19 U.S.C. 1484 and 1485), the Commissioner 

responsible for U.S. Customs and Border Protection shall 

require each importer of merchandise to provide to U.S. Customs and Border Protection at the time of entry of the merchandise the information described in paragraph (2). 

(2) INFORMATION REQUIRED.—The information referred to 

in paragraph (1) is a declaration as to whether the transaction 

value of the imported merchandise is determined on the basis 
H. R. 2419—626 

of the price paid by the buyer in the first or earlier sale 

occurring prior to introduction of the merchandise into the 

United States. 

(3) EFFECTIVE DATE.—The requirement to provide information under this subsection shall be effective for the 1-year 

period beginning 90 days after the date of the enactment of 

this Act. 

(b) REPORT TO INTERNATIONAL TRADE COMMISSION.— 

(1) IN GENERAL.—The Commissioner responsible for U.S. 

Customs and Border Protection shall submit to the United 

States International Trade Commission on a monthly basis 

for the 1-year period specified in subsection (a)(3) a report 

on the information provided by importers under subsection 

(a)(2) during the preceding month. The report required under 

this paragraph shall be submitted in a form agreed upon 

between U.S. Customs and Border Protection and the United 

States International Trade Commission. 

(2) MATTERS TO BE INCLUDED.—The report required under 

paragraph (1) shall include— 

(A) the number of importers that declare the transaction value of the imported merchandise is determined 

on the basis of the method described in subsection (a)(2); 

(B) the tariff classification of such imported merchandise under the Harmonized Tariff Schedule of the United 

States; and 

(C) the transaction value of such imported merchandise. 

(c) REPORT TO CONGRESS.— (1) IN GENERAL.—Not later than 90 days after the submission of the final report under subsection (b), the United States 

International Trade Commission shall submit to the appropriate congressional committees a report on the information 

contained in all reports submitted under subsection (b). 

(2) MATTERS TO BE INCLUDED.—The report required under 

paragraph (1) shall include— 

(A) the aggregate number of importers that declare 

the transaction value of the imported merchandise is determined on the basis of the method described in subsection 

(a)(2), including a description of the frequency of the use 

of such method; 

(B) the tariff classification of such imported merchandise under the Harmonized Tariff Schedule of the United 

States on an aggregate basis, including an analysis of 

the tariff classification of such imported merchandise on 

a sectoral basis; 

(C) the aggregate transaction value of such imported 

merchandise, including an analysis of the transaction value 

of such imported merchandise on a sectoral basis; and 

(D) the aggregate transaction value of all merchandise 

imported into the United States during the 1-year period 

specified in subsection (a)(3). 

(d) SENSE OF CONGRESS REGARDING PROHIBITION ON PROPOSED

INTERPRETATION OF THE TERM ‘‘SOLD FOR EXPORTATION TO THE

UNITED STATES’’.— 

(1) IN GENERAL.—It is the sense of Congress that the 

Commissioner responsible for U.S. Customs and Border Protection should not implement a change to U.S. Customs and Border 
H. R. 2419—627 

Protection’s interpretation (as such interpretation is in effect 

on the date of the enactment of this Act) of the term ‘‘sold 

for exportation to the United States’’, as described in section 

402(b) of the Tariff Act of 1930 (19 U.S.C. 1401a(b)), for purposes of applying the transaction value of the imported merchandise in a series of sales, before January 1, 2011. 

(2) EXCEPTION.—It is the sense of Congress that beginning 

on January 1, 2011, the Commissioner responsible for U.S. 

Customs and Border Protection may propose to change or 

change U.S. Customs and Border Protection’s interpretation 

of the term ‘‘sold for exportation to the United States’’, as 

described in paragraph (1), only if U.S. Customs and Border 

Protection— 

(A) consults with, and provides notice to, the appropriate congressional committees— 

(i) not less than 180 days prior to proposing a 

change; and 

(ii) not less than 90 days prior to publishing a 

change; 

(B) consults with, provides notice to, and takes into 

consideration views expressed by, the Commercial Operations Advisory Committee— 

(i) not less than 120 days prior to proposing a 

change; and 

(ii) not less than 60 days prior to publishing a 

change; and 

(C) receives the explicit approval of the Secretary of 

the Treasury prior to publishing a change. 

(3) CONSIDERATION OF INTERNATIONAL TRADE COMMISSION

REPORT.—It is the sense of Congress that prior to publishing 

a change to U.S. Customs and Border Protection’s interpretation (as such interpretation is in effect on the date of the 

enactment of this Act) of the term ‘‘sold for exportation to 

the United States’’, as described in section 402(b) of the Tariff 

Act of 1930 (19 U.S.C. 1401a(b)), for purposes of applying 

the transaction value of the imported merchandise in a series 

of sales, the Commissioner responsible for U.S. Customs and 

Border Protection should take into consideration the matters 

included in the report prepared by the United States International Trade Commission under subsection (c). 

(e) DEFINITIONS.—In this section: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ means the Committee 

on Ways and Means of the House of Representatives and the 

Committee on Finance of the Senate. 

(2) COMMERCIAL OPERATIONS ADVISORY COMMITTEE.—The 

term ‘‘Commercial Operations Advisory Committee’’ means the 

Advisory Committee established pursuant to section 9503(c) 

of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 

2071 note) or any successor committee. 

(3) IMPORTER.—The term ‘‘importer’’ means one of the parties qualifying as an ‘‘importer of record’’ under section 

484(a)(2)(B) in the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)). 
H. R. 2419—628 

(4) TRANSACTION VALUE OF THE IMPORTED MERCHANDISE.—The 

term ‘‘transaction value of the imported merchandise’’ has the 

meaning described in section 402(b) of the Tariff Act of 1930 

(19 U.S.C. 1401a(b)). 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.