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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2419 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                     December 14, 2007.
    Resolved, That the bill from the House of Representatives (H.R. 
2419) entitled ``An Act to provide for the continuation of agricultural 
programs through fiscal year 2012, and for other purposes.'', do pass 
with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Food and Energy 
Security Act of 2007''.
    (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--PRODUCER INCOME PROTECTION PROGRAMS

Sec. 1001. Definitions.

               Subtitle A--Traditional Payments and Loans

         PART I--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Base acres and payment acres for a farm.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
                            direct payments and counter-cyclical 
                            payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Special rule for long grain and medium grain rice.
Sec. 1108. Period of effectiveness.

    PART II--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.

                           PART III--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 
                            direct payments and counter-cyclical 
                            payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for 
                            peanuts.
Sec. 1308. Adjustments of loans.

                Subtitle B--Average Crop Revenue Program

Sec. 1401. Availability of average crop revenue payments.
Sec. 1402. Producer agreement as condition of average crop revenue 
                            payments.
Sec. 1403. Planting flexibility.

                           Subtitle C--Sugar

Sec. 1501. Sugar program.
Sec. 1502. Storage facility loans.
Sec. 1503. Commodity Credit Corporation storage payments.
Sec. 1504. Flexible marketing allotments for sugar.
Sec. 1505. Sense of the Senate regarding NAFTA sugar coordination.

                           Subtitle D--Dairy

Sec. 1601. Dairy product price support program.
Sec. 1602. National dairy market loss payments.
Sec. 1603. Dairy export incentive and dairy indemnity programs.
Sec. 1604. Funding of dairy promotion and research program.
Sec. 1605. Revision of Federal marketing order amendment procedures.
Sec. 1606. Dairy forward pricing program.
Sec. 1607. Report on Department of Agriculture reporting procedures for 
                            nonfat dry milk.
Sec. 1608. Federal Milk Marketing Order Review Commission.
Sec. 1609. Mandatory reporting of dairy commodities.
Sec. 1610. Additional mandatory dairy reporting.

                       Subtitle E--Administration

Sec. 1701. Administration generally.
Sec. 1702. Suspension of permanent price support authority.
Sec. 1703. Payment limitations.
Sec. 1704. Adjusted gross income limitation.
Sec. 1705. Availability of quality incentive payments for certain 
                            producers.
Sec. 1706. Hard white wheat development program.
Sec. 1707. Durum wheat quality program.
Sec. 1708. Storage facility loans.
Sec. 1709. Personal liability of producers for deficiencies.
Sec. 1710. Extension of existing administrative authority regarding 
                            loans.
Sec. 1711. Assignment of payments.
Sec. 1712. Cotton classification services.
Sec. 1713. Designation of States for cotton research and promotion.
Sec. 1714. Government publication of cotton price forecasts.
Sec. 1715. State, county, and area committees.
Sec. 1716. Prohibition on charging certain fees.
Sec. 1717. Signature authority.
Sec. 1718. Modernization of Farm Service Agency.
Sec. 1719. Geospatial systems.
Sec. 1720. Leasing office space.
Sec. 1721. Repeals.

                  Subtitle F--Specialty Crop Programs

Sec. 1801. Definitions.

             PART I--Marketing, Information, and Education

Sec. 1811. Fruit and vegetable market news allocation.
Sec. 1812. Farmers' market promotion program.
Sec. 1813. Food safety initiatives.
Sec. 1814. Census of specialty crops.

                      PART II--Organic Production

Sec. 1821. Organic data collection and price reporting.
Sec. 1822. Exemption of certified organic products from assessments.
Sec. 1823. National Organic Certification Cost Share Program.
Sec. 1824. National organic program.

                     PART III--International Trade

Sec. 1831. Foreign market access study and strategy plan.
Sec. 1832. Technical assistance for specialty crops.
Sec. 1833. Consultations on sanitary and phytosanitary restrictions for 
                            fruits and vegetables.

                PART IV--Specialty Crops Competitiveness

Sec. 1841. Specialty crop block grants.
Sec. 1842. Grant program to improve movement of specialty crops.
Sec. 1843. Healthy Food Enterprise Development Center.

                         PART V--Miscellaneous

Sec. 1851. Clean plant network.
Sec. 1852. Market loss assistance for asparagus producers.
Sec. 1853. Mushroom promotion, research, and consumer information.
Sec. 1854. National Honey Board.
Sec. 1855. Identification of honey.
Sec. 1856. Expedited marketing order for Hass avocados for grades and 
                            standards and other purposes.

                      Subtitle G--Risk Management

Sec. 1901. Definition of organic crop.
Sec. 1902. General powers.
Sec. 1903. Reduction in loss ratio.
Sec. 1904. Controlled business insurance.
Sec. 1905. Administrative fee.
Sec. 1906. Time for payment.
Sec. 1907. Surcharge prohibition.
Sec. 1908. Premium reduction plan.
Sec. 1909. Enterprise and whole farm units.
Sec. 1910. Denial of claims.
Sec. 1911. Measurement of farm-stored commodities.
Sec. 1912. Reimbursement rate.
Sec. 1913. Renegotiation of standard reinsurance agreement.
Sec. 1914. Change in due date for Corporation payments for underwriting 
                            gains.
Sec. 1915. Access to data mining information.
Sec. 1916. Producer eligibility.
Sec. 1917. Contracts for additional crop policies.
Sec. 1918. Research and development.
Sec. 1919. Funding from insurance fund.
Sec. 1920. Camelina pilot program.
Sec. 1921. Sesame insurance pilot program.
Sec. 1922. Risk management education for beginning farmers or ranchers.
Sec. 1923. Agricultural management assistance.
Sec. 1924. Crop insurance mediation.
Sec. 1925. Drought coverage for aquaculture under noninsured crop 
                            assistance program.
Sec. 1926. Increase in service fees for noninsured crop assistance 
                            program.
Sec. 1927. Determination of certain sweet potato production.
Sec. 1928. Perennial crop report.
Sec. 1929. Malting barley.
Sec. 1930. Definition of basic unit.

                         TITLE II--CONSERVATION

                        Subtitle A--Definitions

Sec. 2001. Definitions.

             Subtitle B--Highly Erodible Land Conservation

Sec. 2101. Review of good faith determinations; exemptions.

                    Subtitle C--Wetland Conservation

Sec. 2201. Review of good faith determinations.

        Subtitle D--Agricultural Resources Conservation Program

           Chapter 1--Comprehensive Conservation Enhancement

      subchapter a--comprehensive conservation enhancement program

Sec. 2301. Reauthorization and expansion of programs covered.

                   subchapter b--conservation reserve

Sec. 2311. Conservation reserve program.
Sec. 2312. Flooded farmland program.
Sec. 2313. Wildlife habitat program.

                 subchapter c--wetlands reserve program

Sec. 2321. Wetlands reserve program.
Sec. 2322. Easements and agreements.
Sec. 2323. Payments.

             subchapter d--healthy forests reserve program

Sec. 2331. Healthy forests reserve program.

            ``subchapter d--healthy forests reserve program

        ``Sec. 1237M. Establishment of healthy forests reserve program.
        ``Sec. 1237N. Eligibility and enrollment of lands in program.
        ``Sec. 1237O. Restoration plans.
        ``Sec. 1237P. Financial assistance.
        ``Sec. 1237Q. Technical assistance.
        ``Sec. 1237R. Protections and measures.
        ``Sec. 1237S. Involvement by other agencies and organizations.
        ``Sec. 1237T. Authorization of appropriations.

        Chapter 2--Comprehensive Stewardship Incentives Program

                    subchapter a--general provisions

Sec. 2341. Comprehensive stewardship incentives program.

       ``Chapter 6--Comprehensive Stewardship Incentives Program

      ``subchapter a--comprehensive stewardship incentives program

        ``Sec. 1240T. Comprehensive stewardship incentives program.

            ``subchapter b--conservation stewardship program

        ``Sec. 1240U. Purposes.
        ``Sec. 1240V. Definitions.
        ``Sec. 1240W. Establishment of program.
        ``Sec. 1240X. Eligibility.
        ``Sec. 1240Y. Regulations.

         subchapter b--environmental quality incentives program

Sec. 2351. Purposes.
Sec. 2352. Definitions.
Sec. 2353. Establishment and administration of environmental quality 
                            incentives program.
Sec. 2354. Evaluation of offers and payments.
Sec. 2355. Duties of producers.
Sec. 2356. Environmental quality incentives program plan.
Sec. 2357. Limitation on payments.
Sec. 2358. Conservation innovation grants.
Sec. 2359. Ground and surface water conservation.
Sec. 2360. Organic conversion.
Sec. 2361. Chesapeake Bay watershed conservation program.

                     Chapter 3--Farmland Protection

               subchapter a--farmland protection program

Sec. 2371. Farmland protection program.

                subchapter b--grassland reserve program

Sec. 2381. Grassland reserve program.

               ``subchapter c--grassland reserve program

        ``Sec. 1238N. Definitions.
        ``Sec. 1238O. Grassland reserve program.
        ``Sec. 1238P. Duties.
        ``Sec. 1238Q. Terms and conditions.

                 Chapter 4--Other Conservation Programs

Sec. 2391. Conservation security program.
Sec. 2392. Conservation of private grazing land.
Sec. 2393. Reauthorization of wildlife habitat incentive program.
Sec. 2394. Grassroots source water protection program.
Sec. 2395. Great Lakes basin program for soil erosion and sediment 
                            control.
Sec. 2396. Farm viability program.
Sec. 2397. Discovery watershed demonstration program.
Sec. 2398. Emergency landscape restoration program.
Sec. 2399. Voluntary public access and habitat incentive program.

                 Subtitle E--Funding and Administration

Sec. 2401. Funding and administration.
Sec. 2402. Regional equity.
Sec. 2403. Conservation access.
Sec. 2404. Delivery of technical assistance.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Conservation programs in environmental services markets.

                 Subtitle F--State Technical Committees

Sec. 2501. State technical committees.

                     Subtitle G--Other Authorities

Sec. 2601. Agricultural management assistance.
Sec. 2602. Agriculture conservation experienced services program.
Sec. 2603. Technical assistance.
Sec. 2604. Small watershed rehabilitation program.
Sec. 2605. Resource conservation and development program.
Sec. 2606. National Natural Resources Conservation Foundation.
Sec. 2607. Desert Terminal Lakes.
Sec. 2607A. Desert Terminal Lakes.
Sec. 2608. Crop insurance ineligibility relating to crop production on 
                            native sod.
Sec. 2609. High Plains water study.
Sec. 2610. Payment of expenses.
Sec. 2611. Use of funds in Basin funds for salinity control activities 
                            upstream of Imperial Dam.
Sec. 2612. Technical corrections to the Federal Insecticide, Fungicide, 
                            and Rodenticide Act.

                            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. Microenterprise activities.
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. Pilot program for local purchase.
Sec. 3015. General authorities and requirements.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Expiration date.
Sec. 3019. Authorization of appropriations.
Sec. 3020. Micronutrient fortification programs.
Sec. 3021. Germplasm conservation.
Sec. 3022. 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. Voluntary certification of child labor status of 
                            agricultural imports.
Sec. 3105. Foreign market development cooperator program.
Sec. 3106. Food for Progress Act of 1985.
Sec. 3107. McGovern-Dole International Food for Education and Child 
                            Nutrition Program.

                       Subtitle C--Miscellaneous

Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Emerging markets and facility guarantee loan program.
Sec. 3203. Biotechnology and agricultural trade program.
Sec. 3204. Technical assistance for the resolution of trade disputes.
Sec. 3205. Importation of live dogs.
Sec. 3206. Report on the importation of high protein food ingredients.
Sec. 3207. Quality requirements for clementines.

                      TITLE IV--NUTRITION PROGRAMS

                 Subtitle A--Food and Nutrition Program

                 PART I--Renaming of Food Stamp Program

Sec. 4001. Renaming of food stamp program.

                  PART II--Improving Program Benefits

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. Encouraging retirement and education savings among food 
                            stamp recipients.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Accrual of benefits.
Sec. 4107. Eligibility for unemployed adults.
Sec. 4108. Transitional benefits option.
Sec. 4109. Minimum benefit.
Sec. 4110. Availability of commodities for the emergency food 
                            assistance program.

                 PART III--Improving Program Operations

Sec. 4201. Technical clarification regarding eligibility.
Sec. 4202. Issuance and use of program benefits.
Sec. 4203. Clarification of split issuance.
Sec. 4204. State option for telephonic signature.
Sec. 4205. Privacy protections.
Sec. 4206. Study on comparable access to food and nutrition assistance 
                            for Puerto Rico.
Sec. 4207. Civil rights compliance.
Sec. 4208. Employment, training, and job retention.
Sec. 4209. Codification of access rules.
Sec. 4210. Expanding the use of EBT cards at farmers' markets.
Sec. 4211. Review of major changes in program design.
Sec. 4212. Preservation of access and payment accuracy.
Sec. 4213. Nutrition education.

                  PART IV--Improving Program Integrity

Sec. 4301. Major systems failures.
Sec. 4302. Performance standards for biometric identification 
                            technology.
Sec. 4303. Civil penalties and disqualification of retail food stores 
                            and wholesale food concerns.
Sec. 4304. Funding of employment and training programs.
Sec. 4305. Eligibility disqualification.

                         PART V--Miscellaneous

Sec. 4401. Definition of staple foods.
Sec. 4402. Accessory food items.
Sec. 4403. Pilot projects to evaluate health and nutrition promotion in 
                            the food and nutrition program.
Sec. 4404. Bill Emerson National Hunger Fellows and Mickey Leland 
                            International Hunger Fellows.
Sec. 4405. Hunger-free communities.
Sec. 4406. State performance on enrolling children receiving program 
                            benefits for free school meals.
Sec. 4407. Sense of Congress regarding Nutrition education under the 
                            Food and Nutrition Program.

      Subtitle B--Food Distribution Program on Indian Reservations

Sec. 4501. Assessing the nutritional value of the FDPIR food package.

  Subtitle C--Administration of Emergency Food Assistance Program and 
                  Commodity Supplemental Food Program

Sec. 4601. Emergency food assistance.
Sec. 4602. Commodity supplemental food program.

          Subtitle D--Senior Farmers' Market Nutrition Program

Sec. 4701. Exclusion of benefits in determining eligibility for other 
                            programs.
Sec. 4702. Prohibition on collection of sales tax.

    Subtitle E--Reauthorization of Federal Food Assistance Programs

Sec. 4801. Food and nutrition program.
Sec. 4802. Commodity distribution.
Sec. 4803. Nutrition information and awareness pilot program.

                       Subtitle F--Miscellaneous

Sec. 4901. Periodic surveys of foods purchased by school food 
                            authorities.
Sec. 4902. Purchases of locally grown fruits and vegetables.
Sec. 4903. Healthy food education and program replicability.
Sec. 4904. Fresh fruit and vegetable program.
Sec. 4905. Team nutrition network.
Sec. 4906. Buy American requirements.
Sec. 4907. Minimum purchases of fruits, vegetables, and nuts through 
                            section 32 to support domestic nutrition 
                            assistance programs.
Sec. 4908. Agricultural policy and public health.
Sec. 4909. Conforming amendments to renaming of food stamp program.
Sec. 4910. Effective and implementation dates.
Sec. 4911. Application.
Sec. 4912. Grain pilot program.
Sec. 4913. Report on Federal hunger programs.
Sec. 4914. Food employment empowerment and development program.
Sec. 4915. Infrastructure and transportation grants to support rural 
                            food bank delivery of healthy perishable 
                            foods.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.
Sec. 5002. Purposes of loans.
Sec. 5003. Soil and water conservation and protection.
Sec. 5004. Limitations on amount of farm ownership loans.
Sec. 5005. Down payment loan program.
Sec. 5006. Beginning 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. Limitation on period borrowers are eligible for guaranteed 
                            assistance.

                 Subtitle C--Administrative Provisions

Sec. 5201. Beginning farmer and rancher individual development accounts 
                            pilot program.
Sec. 5202. Inventory sales preferences; loan fund set-asides.
Sec. 5203. Transition to private commercial or other sources of credit.
Sec. 5204. Loan authorization levels.
Sec. 5205. Interest rate reduction program.
Sec. 5206. Deferral of shared appreciation recapture amortization.
Sec. 5207. Rural development, housing, and farm loan program 
                            activities.

                        Subtitle D--Farm Credit

Sec. 5301. Authority to pass along cost of insurance premiums.
Sec. 5302. Technical correction.
Sec. 5303. Confirmation of Chairman.
Sec. 5304. Premiums.
Sec. 5305. Certification of premiums.
Sec. 5306. Rural utility loans.
Sec. 5307. Equalization of loan-making powers of certain district 
                            associations.

                       Subtitle E--Miscellaneous

Sec. 5401. Loans to purchasers of highly fractioned land.
Sec. 5402. Determination on merits of Pigford claims.
Sec. 5403. Sense of the Senate relating to claims brought by socially 
                            disadvantaged farmers or ranchers.
Sec. 5404. Eligibility of equine farmers and ranchers for emergency 
                            loans.

               TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

        Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Rural business opportunity grants.
Sec. 6003. Child day care facility grants, loans, and loan guarantees.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Multijurisdictional regional planning organizations.
Sec. 6006. Rural hospital loans and loan guarantees.
Sec. 6007. Tribal college and university essential community 
                            facilities.
Sec. 6008. Community facility loans and grants for freely associated 
                            States and outlying areas.
Sec. 6009. Priority for community facility loan and grant projects with 
                            high non-Federal share.
Sec. 6010. SEARCH grants.
Sec. 6011. Emergency and imminent community water assistance grant 
                            program.
Sec. 6012. Water systems for rural and native villages in Alaska.
Sec. 6013. Grants to develop wells in rural areas.
Sec. 6014. Cooperative equity security guarantee.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Locally-produced agricultural food products.
Sec. 6018. Appropriate technology transfer for rural areas.
Sec. 6019. Rural economic area partnership zones.
Sec. 6020. Definitions.
Sec. 6021. Geographically disadvantaged farmers and ranchers.
Sec. 6022. Rural microenterprise assistance program.
Sec. 6023. Artisanal cheese centers.
Sec. 6024. National Rural Development Partnership.
Sec. 6025. Historic barn preservation.
Sec. 6026. Grants for NOAA weather radio transmitters.
Sec. 6027. Grants to train farm workers in new technologies and to 
                            train farm workers in specialized skills 
                            necessary for higher value crops.
Sec. 6028. Grants for expansion of employment opportunities for 
                            individuals with disabilities in rural 
                            areas.
Sec. 6029. Delta Regional Authority.
Sec. 6030. Northern Great Plains Regional Authority.
Sec. 6031. Rural business investment program.
Sec. 6032. Rural collaborative investment program.
Sec. 6033. Funding of pending rural development loan and grant 
                            applications.
Sec. 6034. Northern Border Economic Development Commission.

             Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Energy efficiency programs.
Sec. 6102. Loans and grants for electric generation and transmission.
Sec. 6103. Fees for electrification baseload generation loan 
                            guarantees.
Sec. 6104. Deferment of payments to allow loans for improved energy 
                            efficiency and demand reduction.
Sec. 6105. Rural electrification assistance.
Sec. 6106. Guarantees for bonds and notes issued for electrification or 
                            telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans to rural electric cooperatives.
Sec. 6109. Agency procedures.
Sec. 6110. Access to broadband telecommunications services in rural 
                            areas.
Sec. 6111. Comprehensive rural broadband.
Sec. 6112. Substantially underserved trust areas.
Sec. 6113. Study of Federal assistance for broadband infrastructure.

                   Subtitle C--Connect the Nation Act

Sec. 6201. Short title.
Sec. 6202. Grants to encourage State initiatives to improve broadband 
                            service.

   Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 6301. Rural electronic commerce extension program.
Sec. 6302. Telemedicine, library connectivity, public television, and 
                            distance learning services in rural areas.

                       Subtitle E--Miscellaneous

Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Insurance of loans for housing and related facilities for 
                            domestic farm labor.

                 Subtitle F--Housing Assistance Council

Sec. 6501. Short title.
Sec. 6502. Assistance to Housing Assistance Council.
Sec. 6503. Audits and reports.
Sec. 6504. Persons not lawfully present in the United States.
Sec. 6505. 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. 7001. Definitions.
Sec. 7002. National Agricultural Research, Extension, Education, and 
                            Economics Advisory Board.
Sec. 7003. Veterinary medicine loan repayment.
Sec. 7004. Eligibility of University of the District of Columbia for 
                            grants and fellowships for food and 
                            agricultural sciences education.
Sec. 7005. Grants to 1890 Institutions to expand extension capacity.
Sec. 7006. Expansion of food and agricultural sciences awards.
Sec. 7007. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 7008. Grants for research on production and marketing of alcohols 
                            and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 7009. Policy research centers.
Sec. 7010. Human nutrition intervention and health promotion research 
                            program.
Sec. 7011. Pilot research program to combine medical and agricultural 
                            research.
Sec. 7012. Nutrition education program.
Sec. 7013. Purposes and findings relating to animal health and disease 
                            research.
Sec. 7014. Continuing animal health and disease research programs.
Sec. 7015. Appropriations for research on national or regional 
                            problems.
Sec. 7016. Animal health and disease research program.
Sec. 7017. Authorization level for extension at 1890 land-grant 
                            colleges.
Sec. 7018. Authorization level for agricultural research at 1890 land-
                            grant colleges.
Sec. 7019. Grants to upgrade agricultural and food sciences facilities 
                            at 1890 land-grant colleges, including 
                            Tuskegee University.
Sec. 7020. Grants to upgrade agriculture and food sciences facilities 
                            at the District of Columbia land grant 
                            university.
Sec. 7021. National research and training virtual centers.
Sec. 7022. Matching funds requirement for research and extension 
                            activities of 1890 Institutions.
Sec. 7023. Hispanic-serving institutions.
Sec. 7024. Hispanic-serving agricultural colleges and universities.
Sec. 7025. International agricultural research, extension, and 
                            education.
Sec. 7026. Competitive grants for international agricultural science 
                            and education programs.
Sec. 7027. Indirect costs.
Sec. 7028. Research equipment grants.
Sec. 7029. University research.
Sec. 7030. Extension Service.
Sec. 7031. Indirect cost recovery.
Sec. 7032. Supplemental and alternative crops.
Sec. 7033. Aquaculture research facilities.
Sec. 7034. Rangeland research.
Sec. 7035. Special authorization for biosecurity planning and response.
Sec. 7036. Resident instruction and distance education grants program 
                            for insular area institutions of higher 
                            education.
Sec. 7037. Farm management training and public farm benchmarking 
                            database.
Sec. 7038. Tropical and subtropical agricultural research.
Sec. 7039. Regional centers of excellence.
Sec. 7040. National Drought Mitigation Center.
Sec. 7041. Agricultural development in the American-Pacific region.
Sec. 7042. Borlaug international agricultural science and technology 
                            fellowship program.
Sec. 7043. New Era Rural Technology Program.
Sec. 7044. Farm and ranch stress assistance network.
Sec. 7045. Rural entrepreneurship and enterprise facilitation program.
Sec. 7046. Seed distribution.
Sec. 7047. Farm and ranch safety.
Sec. 7048. Women and minorities in STEM fields.
Sec. 7049. Natural products research program.
Sec. 7050. International anti-hunger and nutrition program.
Sec. 7051. Consortium for Agricultural and Rural Transportation 
                            Research and Education.
Sec. 7052. Regional centers of excellence in food systems veterinary 
                            medicine.

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

Sec. 7101. National genetic resources program.
Sec. 7102. High-priority research and extension initiatives.
Sec. 7103. Nutrient management research and extension initiative.
Sec. 7104. Organic agriculture research and extension initiative.
Sec. 7105. Agricultural telecommunications program.
Sec. 7106. Assistive technology program for farmers with disabilities.
Sec. 7107. National Rural Information Center Clearinghouse.

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

Sec. 7201. Initiative for Future Agriculture and Food Systems.
Sec. 7202. Partnerships for high-value agricultural product quality 
                            research.
Sec. 7203. Precision agriculture.
Sec. 7204. Biobased products.
Sec. 7205. Thomas Jefferson initiative for crop diversification.
Sec. 7206. Integrated research, education, and extension competitive 
                            grants program.
Sec. 7207. Support for research regarding diseases of wheat, triticale, 
                            and barley caused by Fusarium graminearum 
                            or by Tilletia indica.
Sec. 7208. Bovine Johne's disease control program.
Sec. 7209. Grants for youth organizations.
Sec. 7210. Agricultural biotechnology research and development for 
                            developing countries.
Sec. 7211. Specialty crop research initiative.
Sec. 7212. Office of Pest Management Policy.
Sec. 7213. Food animal residue avoidance database program.

                         Subtitle D--Other Laws

Sec. 7301. Critical Agricultural Materials Act.
Sec. 7302. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7303. Smith-Lever Act.
Sec. 7304. Hatch Act of 1887.
Sec. 7305. Research Facilities Act.
Sec. 7306. National Agricultural Research, Extension, and Teaching 
                            Policy Act Amendments of 1985.
Sec. 7307. Competitive, Special, and Facilities Research Grant Act.
Sec. 7308. Education grants to Alaska Native serving institutions and 
                            Native Hawaiian serving institutions.
Sec. 7309. Beginning farmer and rancher development program.
Sec. 7310. McIntire-Stennis Cooperative Forestry Act.
Sec. 7311. National Aquaculture Act of 1980.
Sec. 7312. National Arboretum.
Sec. 7313. Eligibility of University of the District of Columbia for 
                            certain land-grant university assistance.
Sec. 7314. Exchange or sale authority.
Sec. 7315. Carbon cycle research.
Sec. 7316. Enhanced use lease authority pilot program.
Sec. 7317. Research and education grants for the study of antibiotic-
                            resistant bacteria in livestock.

         Subtitle E--National Institute of Food and Agriculture

Sec. 7401. National Institute of Food and Agriculture.
Sec. 7402. Coordination of Agricultural Research Service and National 
                            Institute of Food and Agriculture.

                       Subtitle F--Miscellaneous

Sec. 7501. Joint nutrition monitoring and related research activities.
Sec. 7502. Demonstration project authority for temporary positions.
Sec. 7503. Review of plan of work requirements.
Sec. 7504. Study and report on access to nutritious foods.
Sec. 7505. Sense of Senate regarding organic research.
Sec. 7506. Modifications to information technology service.
Sec. 7507. Studies and reports by the Department of Agriculture, the 
                            Department of Health and Human Services, 
                            and the National Academy of Sciences on 
                            food products from cloned animals.
Sec. 7508. Animal bioscience facility, Bozeman, Montana.

                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Community forest and open space conservation program.
Sec. 8003. Federal, State, and local coordination and cooperation.
Sec. 8004. Comprehensive statewide forest planning.
Sec. 8005. Assistance to the Federated States of Micronesia, the 
                            Republic of the Marshall Islands, and the 
                            Republic of Palau.

        Subtitle B--Tribal-Forest Service Cooperative Relations

Sec. 8101. Definitions.

     PART I--Collaboration Between Indian Tribes and Forest Service

Sec. 8111. Forest Legacy Program.
Sec. 8112. Forestry and resource management assistance for Indian 
                            tribes.

          PART II--Cultural and Heritage Cooperation Authority

Sec. 8121. Purposes.
Sec. 8122. Definitions.
Sec. 8123. Reburial of human remains and cultural items.
Sec. 8124. Temporary closure for traditional and cultural purposes.
Sec. 8125. Forest products for traditional and cultural purposes.
Sec. 8126. Prohibition on disclosure.
Sec. 8127. Severability and savings provisions.

                  Subtitle C--Amendments to Other Laws

Sec. 8201. Renewable resources extension activities.
Sec. 8202. Office of International Forestry.
Sec. 8203. Green Mountain National Forest boundary adjustment.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Sale and exchange of National Forest System land, Vermont.

             Subtitle D--Qualifying Timber Contract Options

Sec. 8301. Qualifying timber contract options.

                            TITLE IX--ENERGY

Sec. 9001. Energy.
Sec. 9002. Sense of the Senate concerning higher levels of ethanol 
                            blended gasoline.
Sec. 9003. Conforming amendments.
Sec. 9004. Sense of Congress regarding cooperative regional research, 
                            extension, and education programs on 
                            biofuels and bioproducts.

     TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

                         Subtitle A--Marketing

Sec. 10001. Livestock mandatory reporting.
Sec. 10002. Grading and inspection.
Sec. 10003. Country of origin labeling.
Sec. 10004. Disclosure of country of harvest for ginseng.

                Subtitle B--Agricultural Fair Practices

Sec. 10101. Definitions.
Sec. 10102. Prohibited practices.
Sec. 10103. Enforcement.
Sec. 10104. Rules and regulations.

                   Subtitle C--Packers and Stockyards

Sec. 10201. Special Counsel for Agricultural Competition.
Sec. 10202. Investigation of live poultry dealers.
Sec. 10203. Production contracts.
Sec. 10204. Right to discuss terms of contract.
Sec. 10205. Attorneys' fees.
Sec. 10206. Appointment of outside counsel.
Sec. 10207. Prohibition on packers owning, feeding, or controlling 
                            livestock.
Sec. 10208. Regulations.

                      Subtitle D--Related Programs

Sec. 10301. Sense of Congress regarding pseudorabies eradication 
                            program.
Sec. 10302. Sense of Congress regarding cattle fever tick eradication 
                            program.
Sec. 10303. National Sheep and Goat Industry Improvement Center.
Sec. 10304. Trichinae certification program.
Sec. 10305. Protection of information in the animal identification 
                            system.
Sec. 10306. Low pathogenic avian influenza.
Sec. 10307. Study on bioenergy operations.
Sec. 10308. Sense of the Senate on indemnification of livestock 
                            producers.
Sec. 10309. Coordination of dairy oversight.

                        TITLE XI--MISCELLANEOUS

                   Subtitle A--Agricultural Security

Sec. 11011. Definitions.
Sec. 11012. National plant disease recovery system and national 
                            veterinary stockpile.
Sec. 11013. Research and development of agricultural countermeasures.
Sec. 11014. Veterinary workforce grant program.
Sec. 11015. Assistance to build local capacity in agricultural 
                            biosecurity planning, preparedness, and 
                            response.
Sec. 11016. Live virus of foot and mouth disease research.
Sec. 11017. Plant protection.

                       Subtitle B--Other Programs

Sec. 11051. Foreclosure.
Sec. 11052. Outreach and technical assistance for socially 
                            disadvantaged farmers and ranchers.
Sec. 11053. Additional contracting authority.
Sec. 11054. Improved program delivery by the Department of Agriculture 
                            on Indian reservations.
Sec. 11055. Accurate documentation in the census of agriculture and 
                            certain studies.
Sec. 11056. Improved data requirements.
Sec. 11057. Receipt for service or denial of service.
Sec. 11058. National Appeals Division.
Sec. 11059. Farmworker Coordinator.
Sec. 11060. Congressional Bipartisan Food Safety Commission.
Sec. 11061. Emergency grants to assist low-income migrant and seasonal 
                            farmworkers.
Sec. 11062. Grants to reduce production of methamphetamines from 
                            anhydrous ammonia.
Sec. 11063. Invasive species management, Hawaii.
Sec. 11064. Oversight and compliance.
Sec. 11065. Report of civil rights complaints, resolutions, and 
                            actions.
Sec. 11066. Grants to improve supply, stability, safety, and training 
                            of agricultural labor force.
Sec. 11067. Interstate shipment of meat and poultry inspected by 
                            Federal and State agencies for certain 
                            small establishments.
Sec. 11068. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 11069. Elimination of statute of limitations applicable to 
                            collection of debt by administrative 
                            offset.
Sec. 11070. Report on stored quantities of propane.
Sec. 11071. Closure of certain county FSA offices.
Sec. 11072. Action by President and Congress based on report.
Sec. 11073. Payments to deceased individuals and estates.
Sec. 11074. GAO report on access to health care for farmers.
Sec. 11075. Conveyance of land to Chihuahuan Desert Nature Park.
Sec. 11076. Prohibitions on dog fighting ventures.
Sec. 11077. Regulations to improve management and oversight of certain 
                            regulated articles.
Sec. 11078. Invasive pest and disease emergency response funding 
                            clarification.
Sec. 11079. Protection of pets.
Sec. 11080. Exemption from AQI user fees.
Sec. 11081. Department of Agriculture conference transparency.
Sec. 11082. Report relating to the ending of childhood hunger in the 
                            United States.
Sec. 11083. National emergency grant to address effects of Greensburg, 
                            Kansas tornado.
Sec. 11084. Report on program results.
Sec. 11085. Sense of the Senate on the U.S. Department of Agriculture's 
                            Wildlife Services Competing Against Private 
                            Industry for Nuisance Bird Control Work.
Sec. 11086. Oversight of national aquatic animal health plan.
Sec. 11087. Food safety improvement.
Sec. 11088. Office of Small Farms and Beginning Farmers and Ranchers.
Sec. 11089. Study of impacts of local food systems and commerce.
Sec. 11090. Invasive Species Revolving Loan Fund.
Sec. 11091. Cooperative agreements relating to invasive species 
                            prevention activities.
Sec. 11092. Southwest regional dairy, environment, and private land 
                            program.
Sec. 11093. Enforcement of United States-Canada softwood lumber 
                            agreement.

             Subtitle C--Domestic Pet Turtle Market Access

Sec. 11101. Short title.
Sec. 11102. Findings.
Sec. 11103. Review, report, and action on the sale of baby turtles.

                   Subtitle D--Disaster Loan Program

Sec. 11111. Short title.
Sec. 11112. Definitions.

                 PART I--Disaster Planning and Response

Sec. 11121. Disaster loans to nonprofits.
Sec. 11122. Disaster loan amounts.
Sec. 11123. Small business development center portability grants.
Sec. 11124. Assistance to out-of-State businesses.
Sec. 11125. Outreach programs.
Sec. 11126. Small business bonding threshold.
Sec. 11127. Termination of program.
Sec. 11128. Increasing collateral requirements.
Sec. 11129. Public awareness of disaster declaration and application 
                            periods.
Sec. 11130. Consistency between Administration regulations and standard 
                            operating procedures.
Sec. 11131. Processing disaster loans.
Sec. 11132. Development and implementation of major disaster response 
                            plan.
Sec. 11133. Disaster planning responsibilities.
Sec. 11134. Additional authority for district offices of the 
                            Administration.
Sec. 11135. Assignment of employees of the Office of Disaster 
                            Assistance and Disaster Cadre.

                       PART II--Disaster Lending

Sec. 11141. Small Business Act catastrophic national disaster 
                            declaration.
Sec. 11142. Private disaster loans.
Sec. 11143. Technical and conforming amendments.
Sec. 11144. Expedited disaster assistance loan program.
Sec. 11145. HUBZones.

                PART III--Disaster Assistance Oversight

Sec. 11161. Congressional oversight.

                  TITLE XII--TRADE AND TAX PROVISIONS

Sec. 12001. Short title; etc.

  Subtitle A--Supplemental Agricultural Disaster Assistance From the 
                 Agriculture Disaster Relief Trust Fund

Sec. 12101. Supplemental agriculture disaster assistance.

                  Subtitle B--Conservation Provisions

            PART I--Land and Species Preservation Provisions

Sec. 12201. Conservation reserve tax credit.
Sec. 12202. Exclusion of Conservation Reserve Program payments from 
                            SECA tax for certain individuals.
Sec. 12203. Permanent extension of special rule encouraging 
                            contributions of capital gain real property 
                            for conservation purposes.
Sec. 12204. Tax credit for recovery and restoration of endangered 
                            species.
Sec. 12205. Deduction for endangered species recovery expenditures.
Sec. 12206. Exclusion for certain payments and programs relating to 
                            fish and wildlife.
Sec. 12207. Credit for easements granted under certain Department of 
                            Agriculture conservation programs.

                       PART II--Timber Provisions

Sec. 12211. Forest conservation bonds.
Sec. 12212. Deduction for qualified timber gain.
Sec. 12213. Excise tax not applicable to section 1203 deduction of real 
                            estate investment trusts.
Sec. 12214. Timber REIT modernization.
Sec. 12215. Mineral royalty income qualifying income for timber REITs.
Sec. 12216. Modification of taxable REIT subsidiary asset test for 
                            timber REITs.
Sec. 12217. Safe harbor for timber property.

                     Subtitle C--Energy Provisions

                     PART I--Electricity Generation

Sec. 12301. Credit for residential and business wind property.
Sec. 12302. Landowner incentive to encourage electric transmission 
                            build-out.
Sec. 12303. Exception to reduction of renewable electricity credit.

                         PART II--Alcohol Fuel

Sec. 12311. Expansion of special allowance to cellulosic biofuel plant 
                            property.
Sec. 12312. Credit for production of cellulosic biofuel.
Sec. 12313. Extension of small ethanol producer credit.
Sec. 12314. Credit for producers of fossil free alcohol.
Sec. 12315. Modification of alcohol credit.
Sec. 12316. Calculation of volume of alcohol for fuel credits.
Sec. 12317. Ethanol tariff extension.
Sec. 12318. Limitations on, and reductions of, duty drawback on certain 
                            imported ethanol.

             PART III--Biodiesel and Renewable Diesel Fuel

Sec. 12321. Extension and modification of credit for biodiesel and 
                            renewable diesel used as fuel.
Sec. 12322. Treatment of qualified alcohol fuel mixtures and qualified 
                            biodiesel fuel mixtures as taxable fuels.

                       PART IV--Alternative Fuel

Sec. 12331. Extension and modification of alternative fuel credit.
Sec. 12332. Extension of alternative fuel vehicle refueling property 
                            credit.

                  Subtitle D--Agricultural Provisions

Sec. 12401. Increase in loan limits on agricultural bonds.
Sec. 12402. Modification of installment sale rules for certain farm 
                            property.
Sec. 12403. Allowance of section 1031 treatment for exchanges involving 
                            certain mutual ditch, reservoir, or 
                            irrigation company stock.
Sec. 12404. Credit to holders of rural renaissance bonds.
Sec. 12405. Agricultural chemicals security credit.
Sec. 12406. Credit for drug safety and effectiveness testing for minor 
                            animal species.
Sec. 12407. Certain farming business machinery and equipment treated as 
                            5-year property.
Sec. 12408. Expensing of broadband Internet access expenditures.
Sec. 12409. Credit for energy efficient motors.

                     Subtitle E--Revenue Provisions

                PART I--Miscellaneous Revenue Provisions

Sec. 12501. Limitation on farming losses of certain taxpayers.
Sec. 12502. Modification to optional method of computing net earnings 
                            from self-employment.
Sec. 12503. Information reporting for Commodity Credit Corporation 
                            transactions.
Sec. 12504. Modification of section 1031 treatment for certain real 
                            estate.
Sec. 12505. Modification of effective date of leasing provisions of the 
                            American Jobs Creation Act of 2004.
Sec. 12506. Time for payment of corporate estimated taxes.
Sec. 12507. Denial of deduction for certain fines, penalties, and other 
                            amounts.
Sec. 12508. Increase in information return penalties.
Sec. 12509. Asset treatment of horses.
Sec. 12510. Elimination of private payment test for professional sports 
                            facility bonds.
Sec. 12511. Modification of penalty for failure to file partnership 
                            returns; limitation on disclosure.
Sec. 12512. Participants in government section 457 plans allowed to 
                            treat elective deferrals as Roth 
                            contributions.

                  PART II--Economic Substance Doctrine

Sec. 12521. Clarification of economic substance doctrine.
Sec. 12522. Penalty for understatements attributable to transactions 
                            lacking economic substance, etc.
Sec. 12523. Denial of deduction for interest on underpayments 
                            attributable to noneconomic substance 
                            transactions.

               Subtitle F--Protection of Social Security

Sec. 12601. Protection of Social Security.
Sec. 12602. Interest rates for water and waste disposal facilities 
                            loans.

           Subtitle G--Kansas Disaster Tax Relief Assistance

Sec. 12701. Temporary tax relief for Kiowa County, Kansas and 
                            surrounding area.

                      Subtitle H--Other Provisions

Sec. 12801. Income averaging for amounts received in connection with 
                            the Exxon Valdez litigation.
Sec. 12802. 2-year extension and expansion of charitable deduction for 
                            contributions of food inventory.
Sec. 12803. Mileage reimbursements to charitable volunteers excluded 
                            from gross income.
Sec. 12804. Basis adjustment to stock of S corporations making 
                            charitable contributions of property.
Sec. 12805. Private payment test for professional sports facility 
                            bonds.
Sec. 12806. Application of rehabilitation credit and depreciation 
                            schedules to certain low-income housing for 
                            the elderly.
Sec. 12807. Competitive certification awards modification authority.
Sec. 12808. Qualified forestry conservation bonds.

            TITLE XIII--AMENDMENTS TO COMMODITY EXCHANGE ACT

Sec. 13001. Short title.

                     Subtitle A--General Provisions

Sec. 13101. CFTC authority over off-exchange retail foreign currency 
                            transactions.
Sec. 13102. Liaison with Department of Justice.
Sec. 13103. Anti-fraud authority over principal-to-principal 
                            transactions.
Sec. 13104. Criminal and civil penalties.
Sec. 13105. Authorization of appropriations.
Sec. 13106. Technical and conforming amendments.
Sec. 13107. 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.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

              TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

SEC. 1001. DEFINITIONS.

    In this title (other than part III of subtitle A):
            (1) Average crop revenue payment.--The term ``average crop 
        revenue payment'' means a payment made to producers on a farm 
        under section 1401.
            (2) Base acres.--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 the day 
        before the date of enactment of this Act, subject to any 
        adjustment under section 1101 of this Act.
            (3) Counter-cyclical payment.--The term ``counter-cyclical 
        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.
            (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, 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, camelina, 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, 85 
        percent of the base acres of a covered commodity on a farm on 
        which direct payments or counter-cyclical payments are made.
            (12) Payment yield.--The term ``payment yield'' means the 
        yield established for direct payments and 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 the day 
        before the date of enactment of this Act, 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--
                    (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.

               Subtitle A--Traditional Payments and Loans

         PART I--DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

SEC. 1101. BASE ACRES AND PAYMENT ACRES FOR A FARM.

    (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 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.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary.
                    (C) The producer has eligible pulse crop or 
                camelina acreage.
                    (D) The producer has eligible oilseed acreage as 
                the result of the Secretary designating additional 
                oilseeds.
            (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 (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 or camelina 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 suspend all 
                direct, counter-cyclical, and average crop revenue 
                payments on base acres for covered commodities for land 
                that is no longer a farming operation or used in 
                conjunction with a farming operation, as determined by 
                the Secretary.
                    (B) Reduction.--The Secretary shall reduce base 
                acres for covered commodities in a manner prescribed by 
                the Secretary, for land that--
                            (i) has been developed for commercial or 
                        industrial use unless the producer demonstrates 
                        that the land remains devoted exclusively to 
                        agricultural production; or
                            (ii) has been subdivided and developed for 
                        multiple residential units or other nonfarming 
                        uses, unless the producer demonstrates that the 
                        land remains devoted exclusively to 
                        agricultural production.
            (3) Review and report.--Each year, to ensure, to the 
        maximum extent practicable, that payments are received only by 
        producers, the Secretary shall--
                    (A) track each reconstitution of land that is 
                reported by a producer that is covered by paragraph 
                (2);
                    (B) include in any end-of-the-year review for 
                purposes of payment limitations or other compliance 
                inspections or other actions taken by the Secretary, a 
                review to ensure compliance with paragraph (2); and
                    (C) submit to Congress a report that describes the 
                results of the actions taken under subparagraphs (A) 
                and (B).

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, camelina, 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, Camelina, and Eligible 
Pulse Crops.--
            (1) Determination of average yield.--In the case of 
        designated oilseeds, camelina, and eligible pulse crops, the 
        Secretary shall determine the average yield per planted acre 
        for the designated oilseed, camelina, 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, 
        camelina, or pulse crop was zero.
            (2) Adjustment for payment yield.--
                    (A) In general.--The payment yield for a farm for a 
                designated oilseed, camelina, or eligible pulse crop 
                shall be equal to the product of the following:
                            (i) The average yield for the designated 
                        oilseed, camelina, or pulse crop determined 
                        under paragraph (1).
                            (ii) The ratio resulting from dividing the 
                        national average yield for the designated 
                        oilseed, camelina, or pulse crop for the 1981 
                        through 1985 crops by the national average 
                        yield for the designated oilseed, camelina, 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, camelina, 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, camelina, 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, camelina, 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, camelina, 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, camelina, and eligible pulse crops, as determined to 
        be fair and equitable by the Secretary.

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required.--Except as provided in section 1401, 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 payment yields and base acres are 
established.
    (b) Payment Rate.--The payment rates used to make direct payments 
with respect to covered commodities for a crop year are 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.--In the case of each of the 2008 through 
        2012 crop years, the Secretary shall make direct payments under 
        this section not earlier than October 1 of the calendar year in 
        which the crop of the covered commodity is harvested.
            (2) Advance payments.--
                    (A) Option.--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.
                    (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.--Subject to sections 1107 and 1401, 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 part II.
                    (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 part II.
                    (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) In general.--For purposes of each of the 2008 through 
        2012 crop years, the target prices for covered commodities 
        shall be as follows:
                    (A) Wheat, $4.20 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.63 per bushel.
                    (D) Barley, $2.63 per bushel.
                    (E) Oats, $1.83 per bushel.
                    (F) Upland cotton, $0.7225 per pound.
                    (G) Long grain rice, $10.50 per hundredweight.
                    (H) Medium grain rice, $10.50 per hundredweight.
                    (I) Soybeans, $6.00 per bushel.
                    (J) Other oilseeds, $12.74 per hundredweight.
                    (K) Dry peas, $8.33 per hundredweight.
                    (L) Lentils, $12.82 per hundredweight.
                    (M) Small chickpeas, $10.36 per hundredweight.
                    (N) Large chickpeas, $12.82 per hundredweight.
            (2) Separate target price.--The Secretary may not establish 
        a target price for a covered commodity that is different from 
        the target price specified in paragraph (1) for the covered 
        commodity.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
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 for any of the 2008 through 2012 crop years of a covered 
commodity, 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 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.--If the Secretary determines under 
        subsection (a) that counter-cyclical payments are required to 
        be made under this section for the crop of a covered commodity, 
        the Secretary shall make the counter-cyclical payments for the 
        crop beginning October 1, or as soon as practicable thereafter, 
        after the end of the applicable marketing year for the covered 
        commodity.
            (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 30 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 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. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
              DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive direct payments or counter-cyclical 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 1106;
                    (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 part III, 
                for an agricultural or conserving use, and not for a 
                nonagricultural commercial, industrial, or residential 
                use (including land subdivided and developed into 
                residential units or other nonfarming uses, or that is 
                otherwise no longer intended to be used in conjunction 
                with a farming operation), 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 base acres for which direct 
                payments or counter-cyclical payments are made shall 
                result in the termination of the payments with respect 
                to 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 
        or counter-cyclical 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 part or part II, 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 part or part II 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 and counter-cyclical payments among the 
producers on a farm on a fair and equitable basis.

SEC. 1106. 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 
        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 double-
        cropping 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 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.
    (d) Planting Transferability Pilot Project.--
            (1) Pilot project authorized.--In addition to the 
        exceptions provided in subsection (c), the Secretary shall 
        carry out a pilot project in the State of Indiana under which 
        paragraphs (1) and (2) of subsection (b) shall not limit the 
        planting of tomatoes grown for processing on up to 10,000 base 
        acres during each of the 2008 through 2009 crop years.
            (2) Contract and management requirements.--To be eligible 
        for selection to participate in the pilot project, the 
        producers on a farm shall--
                    (A) have entered into a contract to produce 
                tomatoes for processing; and
                    (B) agree to produce the tomatoes as part of a 
                program of crop rotation on the farm to achieve 
                agronomic and pest and disease management benefits.
            (3) Temporary reduction in base acres.--The base acres on a 
        farm participating in the pilot program for a crop year shall 
        be reduced by an acre for each acre planted to tomatoes under 
        the pilot program.
            (4) 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 tomatoes 
                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.

SEC. 1107. 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 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 the day before the date of enactment of this Act, 
subject to any adjustment under section 1101 of this Act.

SEC. 1108. PERIOD OF EFFECTIVENESS.

    This part shall be effective beginning with the 2008 crop year of 
each covered commodity through the 2012 crop year.

    PART II--MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              LOAN COMMODITIES.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--Except as provided in section 1401, 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) Treatment of Certain Commingled Commodities.--In carrying out 
this part, the Secretary shall make loans to producers on a farm that 
would be eligible to obtain a marketing assistance loan, but for the 
fact the loan commodity owned by the producers on the farm is 
commingled with loan commodities of other producers in facilities 
unlicensed for the storage of agricultural commodities by the Secretary 
or a State licensing authority, if the producers obtaining the loan 
agree to immediately redeem the loan collateral in accordance with 
section 166 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7286).
    (d) 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 the Act (16 U.S.C. 3821 
et seq.) during the term of the loan.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) Loan Rates.--For each of the 2008 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 the 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.
            (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, $1.20 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, $0.72 per pound.
    (b) 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 subsection (a)(10).
    (c) Grading Basis for Marketing Loans for Pulse Crops.--The loan 
rate for pulse crops--
            (1) shall be based on a grade not less than grade number 2 
        or other grade factors, including the fair and average quality 
        of the 1 or more crops in any year; and
            (2) may be adjusted by the Secretary to reflect the normal 
        market discounts for grades less than number 2 quality.
    (d) Corn and Grain Sorghum.--The Secretary shall--
            (1) establish a single county loan rate for corn and grain 
        sorghum in each county;
            (2) establish a single national average loan rate for corn 
        and grain sorghum; and
            (3) determine each county loan rate and the national 
        average loan rate for corn and grain sorghum, and any and all 
        other program loan rates applicable to corn and grain sorghum, 
        from a data set that includes prices for both corn and grain 
        sorghum.

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)); or
            (2) a rate 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 
        (adjusted to United States quality and location), as determined 
        by the Secretary.
    (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple 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--
                    (A) the prevailing world market price for upland 
                cotton (adjusted to United States quality and 
                location); and
                    (B) the prevailing world market price for long 
                grain rice and medium grain rice, adjusted to United 
                States quality and location; and
            (2) a mechanism by which the Secretary shall announce 
        periodically the prevailing world market price for upland 
        cotton, long grain rice, and medium grain rice.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
            (1) In general.--During the period beginning on the date of 
        enactment of this Act and ending July 31, 2013, the Secretary 
        may further adjust the prevailing world market price for upland 
        cotton (adjusted to United States quality and location) if the 
        Secretary determines the adjustment is necessary--
                    (A) to minimize potential loan forfeitures;
                    (B) to minimize the accumulation of stocks of 
                upland cotton by the Federal Government;
                    (C) to allow upland cotton produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally;
                    (D) to ensure that upland cotton produced in the 
                United States is competitive in world markets; and
                    (E) to 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.
            (2) 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 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) Quality Grades for Pulse Crops.--The loan repayment rate for 
pulse crops shall be based on the quality grades for the applicable 
commodity specified in section 1202(c).
    (h) Payment of Cotton Storage Costs.--Effective for the 2008 
through 2012 crop years, the Secretary shall use the funds of the 
Commodity Credit Corporation to provide cotton storage payments in the 
same manner, and at the same rates, as the Secretary provided those 
payments for the 2006 crop of cotton.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--
            (1) In general.--Except as provided in subsection (d) and 
        section 1401, 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--
                    (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.--
            (1) Loss of beneficial interest.--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 soon as practicable after the date on which 
        the producers on the farm lose beneficial interest.
            (2) On-farm consumption.--For the quantity of a loan 
        commodity or commodity referred to in subsection (a)(2) 
        consumed on a farm, the Secretary shall provide procedures to 
        determine a date on which the producers on the farm lose 
        beneficial interest.
            (3) Applicability.--This subsection does not apply for the 
        2009 through 2012 crop years.

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

    (a) Eligible Producers.--
            (1) In general.--Except as provided in section 1401, 
        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--
                            (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 part I 
                        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(c).
            (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 part I 
                        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(c).
    (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 part.
    (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.--
            (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 the 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) 1\3/32\-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;
                            (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).
    (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 June 30, 2013, the 
                value of the assistance provided under paragraph (1) 
                shall be 4 cents per pound.
                    (B) Subsequent period.--Effective beginning on July 
                1, 2013, the value of the assistance provided under 
                paragraph (1) shall be 0 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 the 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 
        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.
            (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 part I 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 subsections (e) and (f), 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 
                enactment of this Act and after consultation with the 
                private sector in accordance with paragraph (3), 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;
                            (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.--Prior to implementing any 
                revisions to the administration of the marketing 
                assistance loan program for upland cotton, the 
                Secretary shall consult with a private sector committee 
                that--
                            (i) is in existence as of the date of 
                        enactment of this Act;
                            (ii) has a membership that includes 
                        representatives of the production, ginning, 
                        warehousing, cooperative, and merchandising 
                        segments of the United States cotton industry; 
                        and
                            (iii) has developed recommendations 
                        concerning the revisions.
                    (B) Review of adjustments.--The Secretary shall 
                consult with the committee described in subparagraph 
                (A) when conducting a review of adjustments in the 
                operation of the loan program for upland cotton in 
                accordance with paragraph (4).
                    (C) 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).
            (5) Adjustments in effect prior to revision.--The quality 
        differences (premiums and discounts for quality factors) 
        applicable to the loan program for upland cotton (prior to any 
        revisions in accordance with this subsection) shall be 
        established by the Secretary by giving equal weight to--
                    (A) loan differences for the preceding crop; and
                    (B) market differences for the crop in the 
                designated United States spot markets.
    (e) Corn and Grain Sorghum.--In the case of corn and grain sorghum, 
the Secretary--
            (1) shall administer the applicable loan, marketing loan, 
        and related programs using a single loan rate for corn and 
        grain sorghum that is identical in each individual county;
            (2) shall provide that any adjustment in the corn and grain 
        sorghum loan rate for location shall be determined and applied 
        on the basis of the combined corn and grain sorghum data set in 
        a manner that any transportation adjustment shall be the same 
        for corn and grain sorghum in each individual county; and
            (3) may provide for adjustments for grade, type, and 
        quality, as appropriate, for the corn or grain sorghum involved 
        in each specific transaction.
    (f) 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).

                           PART III--PEANUTS

SEC. 1301. DEFINITIONS.

    In this part:
            (1) Base acres for peanuts.--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 Act 
        of 2002 (7 U.S.C. 7952), as in effect on the day before the 
        date of enactment of this Act, subject to any adjustment under 
        section 1302 of this Act.
            (2) Counter-cyclical payment.--The term ``counter-cyclical 
        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 85 
        percent of the base acres for peanuts.
            (6) Payment yield.--The term ``payment yield'' means the 
        yield established for direct payments and 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 the day 
        before the date of enactment of this Act, 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 part.
            (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.

SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.

    (a) Adjustment of Base Acreage for Peanuts.--
            (1) Treatment of conservation reserve contract acreage.--
        The Secretary shall provide for an adjustment, as appropriate, 
        in the base acres for peanuts for a farm whenever either 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.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary.
                    (C) The producer has eligible pulse crop or 
                camelina acreage.
                    (D) The producer has eligible oilseed acreage as 
                the result of the Secretary designating additional 
                oilseeds.
            (2) Special conservation reserve acreage payment rules.--
        For the crop year in which a base acres for peanuts adjustment 
        under 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 or camelina 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 
        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 suspend all 
                direct, counter-cyclical, and average crop revenue 
                payments on base acres for peanuts for land that is no 
                longer a farming operation or used in conjunction with 
                a farming operation, as determined by the Secretary.
                    (B) Reduction.--The Secretary shall reduce base 
                acres for peanuts in a manner prescribed by the 
                Secretary, for land that--
                            (i) has been developed for commercial or 
                        industrial use unless the producer demonstrates 
                        that the land remains devoted exclusively to 
                        agricultural production; or
                            (ii) has been subdivided and developed for 
                        multiple residential units or other nonfarming 
                        uses, unless the producer demonstrates that the 
                        land remains devoted exclusively to 
                        agricultural production.
            (3) Review and report.--Each year, to ensure, to the 
        maximum extent practicable, that payments are received only by 
        producers, the Secretary shall--
                    (A) track each reconstitution of land that is 
                reported by a producer that is covered by paragraph 
                (2);
                    (B) include in any end-of-the-year review for 
                purposes of payment limitations or other compliance 
                inspections or other actions taken by the Secretary, a 
                review to ensure compliance with paragraph (2); and
                    (C) submit to Congress a report that describes the 
                results of the actions taken under subparagraphs (A) 
                and (B).

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

    (a) Payment Required.--Except as provided in section 1401, for each 
of the 2008 through 2012 crop years for peanuts, the Secretary shall 
make direct payments to the producers on a farm to which a payment 
yield and base acres for peanuts are established.
    (b) Payment Rate.--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 the 2008 through 2012 crops of peanuts 
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.--In the case of each of the 2008 through 
        2012 crop years, the Secretary shall make direct payments under 
        this section not earlier than October 1 of the calendar year in 
        which the crop is harvested.
            (2) Advance payments.--
                    (A) Option.--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.
                    (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 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 1401, 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 part.
            (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 counter-cyclical 
payments for a crop year shall be equal to the difference between--
            (1) the target price; and
            (2) the effective price determined under subsection (b).
    (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.--If the Secretary determines under 
        subsection (a) that counter-cyclical payments are required to 
        be made under this section for a crop year, the Secretary shall 
        make the counter-cyclical payments for the crop year beginning 
        on October 1 or as soon as practicable after the end of the 
        marketing year.
            (2) Availability of partial payments.--
                    (A) In general.--If, before the end of the 12-month 
                marketing year, the Secretary estimates that counter-
                cyclical 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 
                counter-cyclical payment projected to be made for the 
                crop.
                    (B) Election.--
                            (i) In general.--The Secretary shall allow 
                        participants to make an election to receive 
                        partial payments under subparagraph (A) at any 
                        time but not later than 30 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 available 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 on 
                October 1 of the fiscal year starting in the same 
                calendar year as the end of the 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 
              DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive direct payments or counter-cyclical payments under this 
        part 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 part I, for an 
                agricultural or conserving use, and not for a 
                nonagricultural commercial, industrial, or residential 
                use (including land subdivided and developed into 
                residential units or other nonfarming uses, or that is 
                otherwise no longer intended to be used in conjunction 
                with a farming operation), 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 shall result in the termination of the payments 
                with respect to those 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 
        or counter-cyclical 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 part, 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 part 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 part, 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 and counter-cyclical payments 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.--
            (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 double-
        cropping 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.--Except as provided in section 1401, 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) Treatment of certain commingled commodities.--In 
        carrying out this subsection, the Secretary shall make loans to 
        producers on a farm that would be eligible to obtain a 
        marketing assistance loan, but for the fact the peanuts owned 
        by the producers on the farm are commingled with other peanuts 
        in facilities unlicensed for the storage of agricultural 
        commodities by the Secretary or a State licensing authority, if 
        the producers obtaining the loan agree to immediately redeem 
        the loan collateral in accordance with section 166 of the 
        Federal Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7286).
            (5) 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--
                    (A) a designated marketing association or marketing 
                cooperative of producers that is approved by the 
                Secretary; or
                    (B) the Farm Service Agency.
            (6) 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.
            (7) Storage, handling, and associated costs.--
                    (A) In general.--Beginning with the 2007 crop of 
                peanuts, to ensure proper storage of peanuts for which 
                a loan is made under this section or section 1307 of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 7957), the Secretary shall use the funds of the 
                Commodity Credit Corporation to 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 or 
                        section 1307 of the Farm Security and Rural 
                        Investment Act of 2002 (7 U.S.C. 7957); and
                            (ii) pay storage, handling, and other 
                        associated costs for all peanuts pledged as 
                        collateral that are forfeited under this 
                        section or section 1307 of that Act.
            (8) 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.--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.--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--
            (1) 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
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of peanuts 
                by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing peanuts; and
                    (D) allow peanuts produced in the United States to 
                be marketed freely and competitively, both domestically 
                and internationally.
    (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.--
                    (A) In general.--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 soon as practicable after 
                the date on which the producers on the farm lose 
                beneficial interest.
                    (B) Applicability.--This paragraph does not apply 
                for the 2009 through 2012 crop years.
    (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 part only 
in a manner that is consistent with such activities in regard to other 
commodities.

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 through E.
    (c) Adjustment on County Basis.--
            (1) In general.--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 B--Average Crop Revenue Program

SEC. 1401. AVAILABILITY OF AVERAGE CROP REVENUE PAYMENTS.

    (a) Availability and Election of Alternative Approach.--
            (1) Availability of average crop revenue payments.--As an 
        alternative to receiving payments or loans under subtitle A 
        with respect to all covered commodities and peanuts on a farm 
        (other than loans for graded and nongraded wool, mohair, and 
        honey), the Secretary shall give the producers on the farm an 
        opportunity to make a 1-time election to instead receive 
        average crop revenue payments under this section for--
                    (A) the 2010, 2011, and 2012 crop years;
                    (B) the 2011 and 2012 crop years; or
                    (C) the 2012 crop year.
            (2) Election; time for election.--
                    (A) In general.--The Secretary shall provide notice 
                to producers regarding the opportunity to make the 
                election 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
                            (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.
            (3) Election deadline.--Within the time period and in the 
        manner prescribed pursuant to paragraph (2), the producers on a 
        farm shall submit to the Secretary notice of the election made 
        under paragraph (1).
            (4) Effect of failure to make election.--If the producers 
        on a farm fail to make the election under paragraph (1) or fail 
        to timely notify the Secretary of the election made, as 
        required by paragraph (3), the producers shall be deemed to 
        have made the election to receive payments and loans under 
        subtitle A for all covered commodities and peanuts on the farm 
        for the applicable crop year.
    (b) Payments Required.--
            (1) In general.--In the case of producers on a farm who 
        make the election under subsection (a) to receive average crop 
        revenue payments, for any of the 2010 through 2012 crop years 
        for all covered commodities and peanuts, the Secretary shall 
        make average crop revenue payments available to the producers 
        on a farm in accordance with this subsection.
            (2) Fixed payment component.--Subject to paragraph (3), in 
        the case of producers on a farm described in paragraph (1), the 
        Secretary shall make average crop revenue payments available to 
        the producers on a farm for each crop year in an amount equal 
        to not less than the product obtained by multiplying--
                    (A) $15 per acre; and
                    (B) 100 percent of the quantity of base acres on 
                the farm for all covered commodities and peanuts (as 
                adjusted in accordance with the terms and conditions of 
                section 1101 or 1302, as determined by the Secretary).
            (3) Revenue component.--The Secretary shall increase the 
        amount of the average crop revenue payments available to the 
        producers on a farm in a State for a crop year if--
                    (A) the actual State revenue for the crop year for 
                the covered commodity or peanuts in the State 
                determined under subsection (c); is less than
                    (B) the average crop revenue program guarantee for 
                the crop year for the covered commodity or peanuts in 
                the State determined under subsection (d).
            (4) Time for payments.--In the case of each of the 2010 
        through 2012 crop years, the Secretary shall make average crop 
        revenue 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)(3)(A), the 
        amount of the actual State revenue for a crop year of a covered 
        commodity shall equal the product obtained by multiplying--
                    (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 average crop revenue program harvest 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) 
        and subsection (d)(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) Average crop revenue program harvest price.--
                    (A) In general.--For purposes of paragraph (1)(B), 
                subject to subparagraph (B), the average crop revenue 
                program harvest price for a crop year for a covered 
                commodity or peanuts in a State shall equal the harvest 
                price that is used to calculate revenue under revenue 
                coverage plans that are offered for the crop year for 
                the covered commodity or peanuts in the State under the 
                Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
                    (B) Assigned price.--If the Secretary cannot 
                establish the harvest price for a crop year for a 
                covered commodity or peanuts in a State in accordance 
                with subparagraph (A), the Secretary shall assign a 
                price for the covered commodity or peanuts in the State 
                on the basis of comparable price data.
    (d) Average Crop Revenue Program Guarantee.--
            (1) In general.--The average crop revenue 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--
                    (A) the expected State yield for each planted acre 
                for the crop year for the covered commodity or peanuts 
                in a State determined under paragraph (2); and
                    (B) the average crop revenue program pre-planting 
                price for the crop year for the covered commodity or 
                peanuts determined under paragraph (3).
            (2) Expected state yield.--
                    (A) In general.--For purposes of paragraph (1)(A), 
                subject to subparagraph (B), the expected State yield 
                for each planted acre for a crop year for a covered 
                commodity or peanuts in a State shall equal the 
                projected yield for the crop year for the covered 
                commodity or peanuts in the State, based on a linear 
                regression trend of the yield per acre planted to the 
                covered commodity or peanuts in the State during the 
                1980 through 2006 period using National Agricultural 
                Statistics Service data.
                    (B) Assigned yield.--If the Secretary cannot 
                establish the expected State yield for each planted 
                acre for a crop year for a covered commodity or peanuts 
                in a State in accordance with subparagraph (A) or if 
                the linear regression trend of the yield per acre 
                planted to the covered commodity or peanuts in the 
                State (as determined under subparagraph (A)) is 
                negative, the Secretary shall assign an expected State 
                yield for each planted acre for the crop year for the 
                covered commodity or peanuts in the State on the basis 
                of expected State yields for planted acres for the crop 
                year for the covered commodity or peanuts in similar 
                States.
            (3) Average crop revenue program pre-planting price.--
                    (A) In general.--For purposes of paragraph (1)(B), 
                subject to subparagraphs (B) and (C), the average crop 
                revenue program pre-planting price for a crop year for 
                a covered commodity or peanuts in a State shall equal 
                the average price that is used to calculate revenue 
                under revenue coverage plans that are offered for the 
                covered commodity in the State under the Federal Crop 
                Insurance Act (7 U.S.C. 1501 et seq.) for the crop year 
                and the preceding 2 crop years.
                    (B) Assigned price.--If the Secretary cannot 
                establish the pre-planting price for a crop year for a 
                covered commodity or peanuts in a State in accordance 
                with subparagraph (A), the Secretary shall assign a 
                price for the covered commodity or peanuts in the State 
                on the basis of comparable price data.
                    (C) Minimum and maximum price.--In the case of each 
                of the 2011 through 2012 crop years, the average crop 
                revenue program pre-planting price for a crop year for 
                a covered commodity or peanuts under subparagraph (A) 
                shall not decrease or increase more than 15 percent 
                from the pre-planting price for the preceding year.
    (e) Payment Amount.--If average crop revenue payments are required 
to be paid for any of the 2010 through 2012 crop years of a covered 
commodity or peanuts under subsection (b)(3), in addition to the amount 
payable under subsection (b)(2), the amount of the average crop revenue 
payment to be paid to the producers on the farm for the crop year under 
this section shall be increased by an amount equal to the product 
obtained by multiplying--
            (1) the difference between--
                    (A) the average crop revenue program guarantee for 
                the crop year for the covered commodity or peanuts in 
                the State determined under subsection (d); and
                    (B) the actual State revenue from the crop year for 
                the covered commodity or peanuts in the State 
                determined under subsection (c);
            (2) 85 percent of the quantity of base acres on the farm 
        for the covered commodity or peanuts (as adjusted in accordance 
        with the terms and conditions of section 1101 or 1302, as 
        determined by the Secretary);
            (3) the quotient obtained by dividing--
                    (A)(i) the yield used to calculate crop insurance 
                coverage for the covered commodity or peanuts on the 
                farm under the Federal Crop Insurance Act (7 U.S.C. 
                1501 et seq.) (commonly referred to as ``actual 
                production history''); or
                    (ii) if actual production history for the covered 
                commodity or peanuts on the farm is not available, a 
                comparable yield as determined by the Secretary; by
                    (B) the expected State yield for the crop year, as 
                determined under subsection (d)(2); and
            (4) 90 percent.
    (f) Recourse Loans.--For each of the 2010 through 2012 crops of a 
covered commodity or peanuts, the Secretary shall make available to 
producers on a farm who elect to receive payments under this section 
recourse loans, as determined by the Secretary, on any production of 
the covered commodity.

SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP REVENUE 
              PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive average crop revenue payments with respect to the farm, 
        the producers shall agree, and in the case of subparagraph (C), 
        the Farm Service Agency shall certify, 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.); and
                    (C) that the individuals or entities receiving 
                payments are producers;
                    (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 part III 
                of subtitle A, for an agricultural or conserving use, 
                and not for a nonagricultural commercial, industrial, 
                or residential use (including land subdivided and 
                developed into residential units or other nonfarming 
                uses, or that is otherwise no longer intended to be 
                used in conjunction with a farming operation), 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 for which average crop revenue 
                payments are made shall result in the termination of 
                the payments, unless the transferee or owner of the 
                farm 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 an average crop 
        revenue 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 
        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 average crop revenue payments among the producers on a farm 
on a fair and equitable basis.
    (f) Audit and Report.--Each year, to ensure, to the maximum extent 
practicable, that payments are received only by producers, the 
Secretary shall--
            (1) conduct an audit of average crop revenue payments; and
            (2) submit to Congress a report that describes the results 
        of that audit.

SEC. 1403. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on base acres on a farm for which the producers on 
a farm elect to receive average crop revenue payments (referred to in 
this section as ``base acres'').
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an agricultural 
        commodity specified in paragraph (3) shall be prohibited on 
        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 double-
        cropping 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 average crop revenue 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) average crop revenue payments shall be reduced 
                by an acre for each acre planted to such agricultural 
                commodity.
    (d) Planting Transferability Pilot Project.--Producers on a farm 
that elect to receive average crop revenue payments shall be eligible 
to participate in the pilot program established under section 1106(d) 
under the same terms and conditions as producers that receive direct 
payments and counter-cyclical payments.
    (e) Production of Fruits or Vegetables for Processing.--
            (1) In general.--Subject to paragraphs (2) through (4), 
        effective beginning with the 2010 crop years, producers on a 
        farm that elect to receive average crop revenue payments, with 
        the consent of the owner of and any other producers on the 
        farm, may reduce the base acres for a covered commodity for the 
        farm if the reduced acres are used for the planting and 
        production of fruits or vegetables for processing.
            (2) Reversion to base acres for covered commodity.--Any 
        reduced acres on a farm devoted to the planting and production 
        of fruits or vegetables during a crop year under paragraph (1) 
        shall be included in base acres for the covered commodity for 
        the subsequent crop year, unless the producers on the farm make 
        the election described in paragraph (1) for the subsequent crop 
        year.
            (3) Recalculation of base acres.--
                    (A) In general.--Subject to subparagraph (B), if 
                the Secretary recalculates base acres for a farm, the 
                planting and production of fruits or vegetables for 
                processing under paragraph (1) shall be considered to 
                be the same as the planting, prevented planting, or 
                production of a covered commodity.
                    (B) Authority.--Nothing in this subsection provides 
                authority for the Secretary to recalculate base acres 
                for a farm covered by this subsection other than as 
                provided in this subsection.
            (4) Limitations.--
                    (A) In general.--This subsection applies in land 
                located in each of the States of Illinois, Indiana, 
                Iowa, Michigan, Minnesota, Ohio, and Wisconsin.
                    (B) Acreage limit.--The total number of base acres 
                that may be reduced in any State under this subsection 
                shall not exceed 10,000.

                           Subtitle C--Sugar

SEC. 1501. SUGAR PROGRAM.

    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) 19.00 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 per pound for 
refined beet sugar 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).
    ``(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
                    ``(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 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 in-process 
        sugars and syrups, may not exceed 9 months, consistent with 
        subsection (c).
    ``(f) Feedstock Flexibility Program for Bioenergy Producers.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Bioenergy.--The term `bioenergy' means fuel 
                grade ethanol and other biofuel.
                    ``(B) Bioenergy producer.--The term `bioenergy 
                producer' means a producer of bioenergy that uses an 
                eligible commodity to produce bioenergy under this 
                subsection.
                    ``(C) Eligible commodity.--The term `eligible 
                commodity' means a form of raw or refined sugar or in-
                process sugar that is eligible--
                            ``(i) to be marketed in the United States 
                        for human consumption; or
                            ``(ii) to be used for the extraction of 
                        sugar for human consumption.
                    ``(D) Eligible entity.--The term `eligible entity' 
                means an entity located in the United States that 
                markets an eligible commodity in the United States.
            ``(2) Feedstock flexibility program.--
                    ``(A) Purchases and sales.--For each of fiscal 
                years 2008 through 2012, 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 
                this section is operated at no cost to the Federal 
                Government and avoids 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 the 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 for a fiscal year for which the purchases and 
                sales are necessary to ensure that the program under 
                this section is operated at no cost to the Federal 
                Government by avoiding forfeitures to the Commodity 
                Credit Corporation.
            ``(3) Notice.--
                    ``(A) In general.--As soon as practicable after the 
                date of enactment of the Food and Energy Security Act 
                of 2007, and each September 1 thereafter through fiscal 
                year 2011, the Secretary shall provide notice to 
                eligible entities and bioenergy producers of the 
                quantity of eligible commodities that shall be made 
                available for purchase and sale for the subsequent 
                fiscal year under this subsection.
                    ``(B) Reestimates.--Not later than the first day of 
                each of the second through fourth quarters of each of 
                fiscal years 2008 through 2012, the Secretary shall 
                reestimate the quantity of eligible commodities 
                determined under subparagraph (A), and provide notice 
                and make purchases and sales based on the reestimates.
            ``(4) Commodity credit corporation inventory.--To the 
        extent that an eligible commodity is owned and held in 
        inventory by the Commodity Credit Corporation (accumulated 
        pursuant to the program under this section), the Secretary 
        shall sell the eligible commodity to bioenergy producers under 
        this subsection.
            ``(5) Transfer rule; storage fees.--
                    ``(A) General transfer rule.--Except as provided in 
                subparagraph (C), the Secretary shall ensure that 
                bioenergy producers that purchase eligible commodities 
                pursuant to this subsection take possession of the 
                eligible commodities not later than 30 calendar days 
                after the date of the 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 
                        subsection in a manner that ensures no storage 
                        fees are paid by the Commodity Credit 
                        Corporation in the administration of this 
                        subsection.
                            ``(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 under this section).
                    ``(C) Option to prevent storage fees.--
                            ``(i) In general.--The Secretary may enter 
                        into contracts with bioenergy producers to sell 
                        eligible commodities to the bioenergy 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 the eligible 
                        commodities not later than 30 calendar days 
                        after the date on which the Commodity Credit 
                        Corporation purchases the eligible commodities.
            ``(6) 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 purchase by the Secretary under 
        paragraph (2), the sugar shall be considered marketed and shall 
        count against the allocation of a processor of an allotment 
        under that part, as applicable.
            ``(7) 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 subsection.
    ``(g) 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.--Sugar beets or 
                sugarcane planted on acreage diverted from production 
                to achieve any reduction required under subparagraph 
                (A) may not be used for any commercial purpose other 
                than as a bioenergy feedstock.
                    ``(C) Additional authority.--The authority provided 
                under this paragraph is in addition to any authority of 
                the Commodity Credit Corporation under any other law.
    ``(h) 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) Information on mexico.--
                    ``(A) Collection.--The Secretary shall collect--
                            ``(i) information of 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 under paragraph (1), (2), or 
        (3), or furnishing willfully any 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 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    ``(i) 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.
    ``(j) Effective Period.--
            ``(1) In general.--This section shall be effective only for 
        the 2008 through 2012 crops of sugar beets and sugarcane.
            ``(2) 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 this section as in 
        effect on the day before the date of enactment of the Food and 
        Energy Security Act of 2007.''.

SEC. 1502. 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
            (4) in paragraph (3) (as redesignated by paragraph (2)), by 
        inserting ``other'' after ``on such''.

SEC. 1503. 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.''.

SEC. 1504. 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 
                        156(f) of the Federal Agriculture Improvement 
                        and Reform Act of 1996 (7 U.S.C. 7272(f)).
                    ``(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.''.
    (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.--
            ``(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 during 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 156(f) of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7272(f)).
            ``(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--
                    ``(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 (H) and (I) 
        and inserting the following:
                    ``(H) New entrants starting production or reopening 
                factories.--
                            ``(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.
                            ``(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 acquired factory 
                                to the total allocation of 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)'';
            (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) In general.--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 base acreage 
                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 date of the enactment of this paragraph, or on the 
                subsequent conversion of any sugarcane base acreage to 
                a nonagricultural use, the Administrator of the Farm 
                Service Agency shall notify the 1 or more affected 
                landowners of the transferability of the applicable 
                sugarcane acreage base.
                    ``(C) Initial transfer period.--Not later than the 
                end of the 90-day period beginning on the date of 
                receipt of the notification under subparagraph (B), the 
                owner of the base attributable to the acreage at the 
                time of the conversion may 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 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 tariff-rate 
        quotas for raw cane sugar and refined sugars at the minimum 
        level necessary to comply with obligations under 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, the Secretary may increase the 
                tariff-rate 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.''.
    (l) United States Membership in the International Sugar 
Organization.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall work with the Secretary of State to 
restore, to the maximum extent practicable, United States membership in 
the International Sugar Organization.

SEC. 1505. SENSE OF THE SENATE REGARDING NAFTA SUGAR COORDINATION.

    It is the sense of the Senate that in order to further strengthen 
the operations of the North American Free Trade Agreement--
            (1) the United States Government and the Government of 
        Mexico should coordinate the operation of their respective 
        sugar policies, to the fullest extent consistent with the 
        international obligations of the United States; and
            (2) the United States Government should consult with the 
        Government of Mexico on policies to avoid disruptions of the 
        United States and Mexican sweetener markets in order to 
        maximize the benefits of sugar policies for growers, 
        processors, and consumers of sugar in the United States and 
        Mexico, while supporting the interests of corn growers, corn 
        refiners, and sweetener users in both markets.

                           Subtitle D--Dairy

SEC. 1601. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

    (a) Support Activities.--During the period beginning on January 1, 
2008, and ending on 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.
    (b) Purchase Price.--To carry out subsection (a), the Secretary 
shall purchase cheddar cheese, butter, and nonfat dry milk at prices 
that are equivalent to--
            (1) in the case of cheddar cheese--
                    (A) in blocks, not less than $1.13 per pound;
                    (B) in barrels, not less than $1.10 per pound;
            (2) in the case of butter, not less than $1.05 per pound; 
        and
            (3) in the case of nonfat dry milk, not less than $0.80 per 
        pound.
    (c) Uniform Purchase Price.--The prices that the Secretary pays for 
cheese, butter, or nonfat dry milk under this section shall be uniform 
for all regions of the United States.
    (d) Sales From Inventories.--
            (1) In general.--Except as provided in paragraph (2), in 
        the case of each commodity specified in subsection (b) that is 
        available for unrestricted use in inventories of the Commodity 
        Credit Corporation, the Secretary may sell the commodity at the 
        market prices prevailing for that commodity at the time of 
        sale.
            (2) Minimum amount.--The sale price described in paragraph 
        (1) may not be less than 110 percent of the minimum purchase 
        price specified in subsection (b) for that commodity.

SEC. 1602. NATIONAL DAIRY MARKET LOSS PAYMENTS.

    (a) Definitions.--In this section:
            (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 (d);
            (2) the amount equal to--
                    (A) $16.94 per hundredweight; 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 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, 4,150,000 
                        pounds; and
                            (iii) effective beginning September 1, 
                        2012, 2,400,000 pounds.
                    (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.
    (e) 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.
    (f) 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.
    (g) 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.

SEC. 1603. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) Dairy Export Incentive Program.--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) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``2007'' and inserting ``2012''.

SEC. 1604. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    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''.

SEC. 1605. 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 
                                180 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
                                    ``(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) Notice.--A notice issued under 
                        clause (i)(I) shall be individualized for each 
                        proceeding and take into consideration--
                                    ``(I) the number of orders 
                                affected;
                                    ``(II) the complexity of issues 
                                involved; and
                                    ``(III) the extent of the analyses 
                                required by applicable Executive orders 
                                (including Executive orders relating to 
                                civil rights, regulatory flexibility, 
                                and economic impact).
                            ``(iii) Recommended decisions.--A 
                        recommended decision on a proposed amendment to 
                        an order shall be issued not later than 90 days 
                        after the deadline established after the 
                        hearing for the submission of post-hearing 
                        briefs, unless otherwise provided in the 
                        initial notice issued under clause (i)(I).
                            ``(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 (ii), unless otherwise provided in 
                        the initial notice issued under clause (i)(I).
                    ``(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 affecting milk prices.
                    ``(F) Monthly feed and fuel costs for make 
                allowances.--As part of any hearing to adjust make 
                allowances under marketing orders, 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. 1606. DAIRY FORWARD PRICING PROGRAM.

    (a) In General.--Section 23 of the Agricultural Adjustment Act (7 
U.S.C. 627), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended--
            (1) in the section heading, by striking ``pilot'';
            (2) by striking subsection (a) and inserting the following:
    ``(a) Program Required.--The Secretary of Agriculture 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.'';
            (3) in subsection (c)--
                    (A) in the subsection heading, by striking 
                ``Pilot''; and
                    (B) in paragraph (1), by striking ``pilot'';
            (4) by striking subsections (d) and (e); and
            (5) by adding at the end the following:
    ``(d) Voluntary Program.--
            ``(1) In general.--A milk handler may not require 
        participation in a forward price contract as a condition of the 
        handler receiving milk from a producer or cooperative 
        association of producers.
            ``(2) Effect of nonparticipation.--A producer or 
        cooperative association that does not enter into a forward 
        price contract may continue to have milk priced under the 
        minimum payment provisions of the applicable milk marketing 
        order.
            ``(3) Complaints.--The Secretary shall--
                    ``(A) investigate complaints made by producers or 
                cooperative associations of coercion by handlers to 
                enter into forward price contracts; and
                    ``(B) if the Secretary finds evidence of coercion, 
                take appropriate action.
    ``(e) Duration.--No forward price contract under this section may--
            ``(1) be entered into after September 30, 2012; or
            ``(2) may extend beyond September 30, 2015.''.
    (b) Conforming Amendments.--Section 23 of the Agricultural 
Adjustment Act (7 U.S.C. 627), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended by striking 
``cooperatives'' each place it appears in subsections (b) and (c)(2) 
and inserting ``cooperative associations of producers''.

SEC. 1607. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR 
              NONFAT DRY MILK.

    Not later than 90 days 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 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 the 
enactment of this Act.

SEC. 1608. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

    (a) Definition of ASCARR Institution.--In this section:
            (1) In general.--The term ``ASCARR Institution'' means a 
        public college or university offering a baccalaureate or higher 
        degree in the study of agriculture.
            (2) Exclusions.--The term ``ASCARR Institution'' does not 
        include an institution eligible to receive funds under--
                    (A) the Act of July 2, 1862 (commonly known as the 
                ``First Morrill Act'') (7 U.S.C. 301 et seq.);
                    (B) the Act of August 30, 1890 (commonly known as 
                the ``Second Morrill Act'') (7 U.S.C. 321 et seq.); or
                    (C) the Equity in Educational Land-Grant Status Act 
                of 1994 (Public Law 103-382; 7 U.S.C. 301 note).
    (b) Establishment.--Subject to the availability of funds 
appropriated 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 enactment of this Act; and
            (2) non-Federal milk marketing order systems.
    (c) Elements of Review and Evaluation.--As part of the review and 
evaluation under subsection (b), 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) ensuring that dairy producers receive fair and 
        reasonable minimum prices;
            (3) enhancing the competitiveness of United States dairy 
        producers in world markets;
            (4) preventing anticompetitive behavior and ensuring that 
        dairy markets are not prone to manipulation;
            (5) increasing the responsiveness of the Federal milk 
        marketing order system to market forces;
            (6) streamlining and expediting the process by which 
        amendments to Federal milk market orders are adopted;
            (7) simplifying the Federal milk marketing order system;
            (8) evaluating whether the Federal milk marketing order 
        system, established during the Great Depression, continues to 
        serve the interests of the public, dairy processors, and dairy 
        producers;
            (9) evaluating whether Federal milk marketing orders are 
        operating in a manner to minimize costs to taxpayers and 
        consumers, while still maintaining a fair price for producers;
            (10) evaluating the nutritional composition of milk, 
        including the potential benefits and costs of adjusting the 
        milk content standards;
            (11) evaluating the economic benefits to milk producers of 
        establishing a 2-class system of classifying milk consisting of 
        a fluid milk class and a manufacturing grade milk class, with 
        the price of both classes determined using the component prices 
        of butterfat, protein, and other solids; and
            (12) evaluating a change in advance pricing that is used to 
        calculate the advance price of Class II skim milk under Federal 
        milk marketing orders using the 4-week component prices that 
        are used to calculate prices for Class III and Class IV milk.
    (d) Membership.--
            (1) Composition.--The Commission shall consist of 18 
        members.
            (2) Members.--As soon as practicable after the date on 
        which funds are first made available to carry out this 
        section--
                    (A) 2 members of the Commission shall be appointed 
                by the Chairman of the Committee on Agriculture of the 
                House of Representatives, in consultation with the 
                ranking member of that committee;
                    (B) 2 members of the Commission shall be appointed 
                by the Chairman of the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate, in consultation 
                with the ranking member of that committee;
                    (C) 10 members of the Commission shall be appointed 
                by the Secretary;
                    (D) 2 members of the Commission shall be appointed 
                by the Chairman of the Subcommittee on Agriculture, 
                Rural Development, Food and Drug Administration, and 
                Related Agencies of the House of Representatives, in 
                consultation with the ranking member of that 
                subcommittee; and
                    (E) 2 members of the Commission shall be appointed 
                by the Chairman of the Subcommittee on Agriculture, 
                Rural Development, Food and Drug Administration, and 
                Related Agencies of the Senate, in consultation with 
                the ranking member of that subcommittee.
            (3) Special appointment requirements.--In the case of 
        members of the Commission appointed under paragraph (2)(C), the 
        Secretary shall ensure that--
                    (A) at least 1 member represents a national 
                consumer organization;
                    (B) at least 4 members represent land-grant 
                colleges or universities (as defined in section 1404 of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3103)) or ASCARR 
                institutions with accredited dairy economic programs, 
                with at least 2 of those members being experts in the 
                field of economics;
                    (C) at least 1 member represents the food and 
                beverage retail sector; and
                    (D) 4 dairy producers and 4 dairy processors are 
                appointed in a manner that will--
                            (i) balance geographical distribution of 
                        milk production and dairy processing;
                            (ii) reflect all segments of dairy 
                        processing; and
                            (iii) represent all regions of the United 
                        States equitably, including States that operate 
                        outside of a Federal milk marketing order.
            (4) Chair.--The Commission shall elect 1 of the members of 
        the Commission to serve as chairperson for the duration of the 
        proceedings of the Commission.
            (5) Vacancy.--Any vacancy occurring before the termination 
        of the Commission shall be filled in the same manner as the 
        original appointment.
            (6) Compensation.--A member 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.
    (e) 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 
        (c) as the Commission considers to be appropriate.
            (2) Support.--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.
    (f) Advisory Nature.--The Commission is wholly advisory in nature 
and the recommendations of the Commission are nonbinding.
    (g) 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.
    (h) Administrative Assistance.--The Secretary shall provide such 
administrative support to the Commission, and expend such funds as 
necessary from budget authority available to the Secretary, as is 
necessary to carry out this section.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (j) Termination of Effectiveness.--The authority provided by this 
section terminates effective on the date of the submission of the 
report under subsection (e).

SEC. 1609. MANDATORY REPORTING OF DAIRY COMMODITIES.

    Section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1637b) is amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Daily Reporting.--
            ``(1) In general.--Not later than 180 days after the 
        enactment of the Food and Energy Security Act of 2007, the 
        Secretary shall--
                    ``(A) establish a program for mandatory daily dairy 
                product information reporting that--
                            ``(i) provides timely, accurate, and 
                        reliable market information;
                            ``(ii) facilitates more informed marketing 
                        decisions; and
                            ``(iii) promotes competition in the dairy 
                        product manufacturing industry; and
                    ``(B) require officers or officially designated 
                representatives of each dairy processor to report daily 
                pricing information for relevant sales transaction 
                involving a dairy product, as determined by the 
                Secretary.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public not less frequently than once each reporting day, 
        categorized by appropriate product characteristics, as 
        determined by the Secretary.
    ``(b) Requirements.--
            ``(1) Price reporting.--
                    ``(A) In general.--Subject to the conditions 
                described in paragraph (3), on each business day of the 
                Department of Agriculture, each dairy manufacturer 
                shall report to the Secretary on all sales of dairy 
                products that the dairy manufacturer made on the 
                immediately preceding day or since the last report by 
                the dairy manufacturer.
                    ``(B) Requirements.--A dairy manufacturer shall 
                report such price, quantity, and product 
                characteristics as the Secretary determines 
                appropriate.
                    ``(C) Submission.--Reports under this paragraph 
                shall be submitted by electronic means at such time as 
                designated by the Secretary.
                    ``(D) Availability.--The Secretary shall compile 
                the information reported under this paragraph and make 
                the compiled information available to the public on the 
                same day as the information is reported.
            ``(2) Storage reporting.--
                    ``(A) In general.--The Secretary shall require each 
                dairy manufacturer or other person storing dairy 
                products to report, at periodic intervals determined by 
                the Secretary, information regarding the quantities of 
                dairy products in storage.
                    ``(B) Availability.--The Secretary shall make 
                information described under subparagraph (A) available 
                to the public in a timely manner.
            ``(3) Conditions.--The conditions referred to in paragraph 
        (1) are that the information required under that paragraph is 
        required only--
                    ``(A) with respect to those package sizes actually 
                used to establish minimum prices for Class III or Class 
                IV milk under a Federal milk marketing order; and
                    ``(B) to the extent that the information is 
                actually used to establish minimum prices for Class III 
                or Class IV milk under a Federal milk marketing order.
            ``(4) Exemption for small processors.--The daily reporting 
        requirements of this subsection shall not apply to a processor 
        that processes not more than 1,000,000 pounds of dairy products 
        a year.
            ``(5) Periodic review.--The Secretary shall--
                    ``(A) periodically review the information reported 
                for products under this subsection; and
                    ``(B) propose changes for the information required 
                to be reported under this subsection, through the 
                public hearing process established under the applicable 
                Federal milk marketing order.
            ``(6) Electronic reporting.--To the maximum extent 
        practicable, the Secretary shall carry out the program 
        established under this subsection using electronic reporting 
        technology.''.

SEC. 1610. ADDITIONAL MANDATORY DAIRY REPORTING.

    Subsection (b)(3) of section 273 of the Agricultural Marketing Act 
of 1946 (7 U.S.C. 1637b) (as redesignated by section 1609(2)) is 
amended--
            (1) by striking ``shall take such actions'' and inserting 
        ``shall--
                    ``(A) take such actions'';
            (2) in subparagraph (A) (as designated by paragraph (1)), 
        by striking the period at the end and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(B) include regular audits and comparisons with 
                other related dairy market statistics on at least a 
                quarterly basis.''.

                       Subtitle E--Administration

SEC. 1701. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--Except as otherwise 
provided in subtitles A through D and this subtitle, the Secretary 
shall use the funds, facilities, and authorities of the Commodity 
Credit Corporation to carry out subtitles A through D and this 
subtitle.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (c) Regulations.--
            (1) In general.--Not later than 90 days after the date of 
        the 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.
    (d) Adjustment Authority Related to Trade Agreements Compliance.--
            (1) Required determination; adjustment.--If the Secretary 
        determines that expenditures under subtitles A through D and 
        this subtitle 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 counter-
        cyclical payments under title I of the Food and Energy Security 
        Act of 2007.''.

SEC. 1702. 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 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 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.).
            (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. 1703. 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 and Energy Security Act of 2007''.
    (b) Revision of Limitations.--
            (1) Definitions.--Section 1001(a) of the Food Security Act 
        of 1985 (7 U.S.C. 1308) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and section 1001A'' 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 an 
        individual to whom a member in the farming operation is related 
        as lineal ancestor, lineal descendant, sibling, or spouse.
            ``(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 counter-cyclical 
        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 and Counter-Cyclical 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 part I of subtitle A of title I of the Food and 
        Energy Security Act of 2007 for 1 or more covered commodities 
        (except for peanuts), or average crop revenue payments 
        determined under section 1401(b)(2) of that Act, may not exceed 
        $40,000.
            ``(2) Counter-cyclical payments.--The total amount of 
        counter-cyclical payments received, directly or indirectly, by 
        a person or legal entity (except a joint venture or a general 
        partnership) for any crop year under part I of subtitle A of 
        title I of the Food and Energy Security Act of 2007 for one or 
        more covered commodities (except for peanuts), or average crop 
        revenue payments determined under section 1401(b)(3) of that 
        Act, may not exceed $60,000.
    ``(c) Limitation on Direct Payments and Counter-Cyclical 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 part III of subtitle A of title I of the Food and 
        Energy Security Act of 2007 for peanuts, or average crop 
        revenue payments determined under section 1401(b)(2) of that 
        Act, may not exceed $40,000.
            ``(2) Counter-cyclical payments.--The total amount of 
        counter-cyclical payments received, directly or indirectly, by 
        a person or legal entity (except a joint venture or a general 
        partnership) for any crop year under part III of subtitle A of 
        title I of the Food and Energy Security Act of 2007 for 
        peanuts, or average crop revenue payments determined under 
        section 1401(b)(3) of that Act, may not exceed $60,000.''.
    ``(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 and Energy Security Act of 2007.''.
            (3) Direct attribution.--Section 1001 of the Food Security 
        Act of 1985 (7 U.S.C. 1308) is amended by striking subsection 
        (e) and redesignating subsections (f) and (g) as (g) and (h), 
        respectively, and inserting the following:
    ``(e) Attribution of Payments.--
            ``(1) In general.--In implementing subsections (b) and (c) 
        and a program described in section 1001D(b)(2)(C), 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 
                        individual 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 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 
                        first-tier 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 first-
                        tier 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 fourth-tier 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;
                                    ``(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) is 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.--A Federal agency shall not be 
                eligible to receive any payment described in subsection 
                (b) or (c).
                    ``(B) Land rental.--A lessee of land owned by a 
                Federal agency may receive a payment described in 
                subsection (b) or (c) if the lessee otherwise meets all 
                applicable criteria.
            ``(6) State and local governments.--
                    ``(A) In general.--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 a payment described in subsection 
                (b) or (c).
                    ``(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) and (c) if the lessee otherwise meet 
                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 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.''.
    (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 
        individual, 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.''.
    (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 
                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.
            ``(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, 
presented false information that was material and 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 the 
        person or legal entity described in subsection (a) or (b) who 
        is a cash rent tenant on a farm owned or under the control of 
        the person or legal entity shall be denied.
    ``(d) Joint and Several Liability.--Any member of any legal entity 
(including partnerships and joint ventures) 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 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 and Energy Security Act of 2007)'' 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 and Energy 
        Security Act of 2007)'' after ``1308(5)))''.
            (4) Section 196(i) of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended in 
        paragraphs (1)(A) and (5) by inserting ``(before the amendment 
        made by section 1703(a) of the Food and Energy Security Act of 
        2007)'' after ``1308)'' each place it appears.
            (5) 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 and Energy Security Act of 2007)'' after ``1308)''.
            (6) 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 and Energy Security Act of 2007)'' after 
        ``1308)''.
            (7) 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 and Energy Security Act of 
        2007)'' before the period at the end.
    (g) 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 
the day before the date of the enactment of this Act, shall continue to 
apply with respect to the 2007 crop of any covered commodity or 
peanuts.

SEC. 1704. ADJUSTED GROSS INCOME LIMITATION.

    (a) Extension of Adjusted Gross Income Limitation.--Section 
1001D(e) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(e)) is 
amended by striking ``2007'' and inserting ``2012''.
    (b) Allocation of Income.--Section 1001D(a) of the Food Security 
Act of 1985 (7 U.S.C. 1308-3a(a)) is amended by adding at the end the 
following:
            ``(3) Allocation of income.--On the request of any 
        individual filing a joint tax return, the Secretary shall 
        provide for the allocation of adjusted gross income among the 
        individuals filing the return based on a certified statement 
        provided by a certified public accountant or attorney 
        specifying the manner in which the income would have been 
        declared and reported if the individuals had filed 2 separate 
        returns, if the Secretary determines that the calculation is 
        consistent with the information supporting the filed joint 
        return.''.
    (c) Modification of Limitation.--Section 1001D of the Food Security 
Act of 1985 (7 U.S.C. 1308-3a) is amended by striking subsection (b) 
and inserting the following:
    ``(b) Limitation.--
            ``(1) Commodity and conservation programs.--
                    ``(A) Commodity programs.--
                            ``(i) 2009 crop year.--Notwithstanding any 
                        other provision of law, an individual or entity 
                        shall not be eligible to receive any benefit 
                        described in paragraph (2)(A) during the 2009 
                        crop year if the average adjusted gross income 
                        of the individual or entity exceeds $1,000,000, 
                        unless not less than 66.66 percent of the 
                        average adjusted gross income of the individual 
                        or entity is derived from farming, ranching, or 
                        forestry operations, as determined by the 
                        Secretary.
                            ``(ii) 2010 and subsequent crop years.--
                        Notwithstanding any other provision of law, an 
                        individual or entity shall not be eligible to 
                        receive any benefit described in paragraph 
                        (2)(A) during any of the 2010 and subsequent 
                        crop years if the average adjusted gross income 
                        of the individual or entity exceeds $750,000, 
                        unless not less than 66.66 percent of the 
                        average adjusted gross income of the individual 
                        or entity is derived from farming, ranching, or 
                        forestry operations, as determined by the 
                        Secretary.
                    ``(B) Conservation programs.--Notwithstanding any 
                other provision of law, an individual or entity shall 
                not be eligible to receive any benefit described in 
                paragraph (2)(B) during a fiscal year if the average 
                adjusted gross income of the individual or entity 
                exceeds $2,500,000, unless not less than 75 percent of 
                the average adjusted gross income of the individual or 
                entity is derived from farming, ranching, or forestry 
                operations, as determined by the Secretary.
            ``(2) Covered benefits.--
                    ``(A) In general.--Paragraph (1)(A) apply with 
                respect to the following:
                            ``(i) A direct payment or counter-cyclical 
                        payment under part I or III of subtitle A of 
                        title I of the Food and Energy Security Act of 
                        2007.
                            ``(ii) A marketing loan gain or loan 
                        deficiency payment under part II or III of 
                        subtitle A of title I of the Food and Energy 
                        Security Act of 2007.
                            ``(iii) An average crop revenue payment 
                        under subtitle B of title I of Food and Energy 
                        Security Act of 2007.
                    ``(B) Conservation programs.--Paragraph (1)(B) 
                applies with respect to a payment under any program 
                under--
                            ``(i) title XII of this Act;
                            ``(ii) title II of the Farm Security and 
                        Rural Investment Act of 2002 (Public Law 107-
                        171; 116 Stat. 223); or
                            ``(iii) title II of the Food and Energy 
                        Security Act of 2007.
            ``(3) Income derived from farming, ranching or forestry 
        operations.--In determining what portion of the average 
        adjusted gross income of an individual or entity is derived 
        from farming, ranching, or forestry operations, the Secretary 
        shall include income derived from--
                    ``(A) the production of crops, livestock, or 
                unfinished raw forestry products;
                    ``(B) the sale, including the sale of easements and 
                development rights, of farm, ranch, or forestry land or 
                water or hunting rights;
                    ``(C) the sale of equipment to conduct farm, ranch, 
                or forestry operations;
                    ``(D) the rental or lease of land used for farming, 
                ranching, or forestry operations, including water or 
                hunting rights;
                    ``(E) the provision of production inputs and 
                services to farmers, ranchers, and foresters;
                    ``(F) the processing (including packing), storing 
                (including shedding), and transporting of farm, ranch, 
                and forestry commodities;
                    ``(G) the sale of land that has been used for 
                agriculture; and
                    ``(H) payments or other income attributable to 
                benefits received under any program authorized under 
                title I or II of the Food and Energy Security Act of 
                2007.''.
    (d) Transition.--Section 1001D of the Food Security Act of 1985 (7 
U.S.C. 1308-3a), as in effect on the day before the date of the 
enactment of this Act, shall continue to apply with respect to the 2007 
and 2008 crops of any covered commodity or peanuts.

SEC. 1705. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR CERTAIN 
              PRODUCERS.

    (a) Incentive Payments Required.--Subject to subsection (b), the 
Secretary shall use funds made available under subsection (g) 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.--An entity 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) each oilseed variety described in subsection 
                (b) and the value of the oilseed variety as a matter of 
                public policy;
                    (B) a range for the amount of total per bushel or 
                hundredweight premiums to be paid to producers;
                    (C) 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;
                    (D) the period of time, not to exceed 4 years, 
                during which incentive payments are to be provided to 
                producers; and
                    (E) 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 so 
        as to allow production contracts to be entered into with 
        producers in advance of the spring planting season for the 2009 
        crop year.
            (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 made to covered producers.
    (e) Administration.--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.
    (f) Proprietary Information.--The Secretary shall protect 
proprietary information provided to the Secretary for the purpose of 
administering this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $400,000,000 for the period of 
fiscal years 2008 through 2012.

SEC. 1706. 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.--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), the Secretary shall make 
                available incentive payments to producers of each of 
                the 2008 through 2012 crops of hard white wheat.
                    (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) Funding.--The Secretary shall make available $35,000,000 of 
funds of the Commodity Credit Corporation during the period of crop 
years 2008 through 2012 to provide incentive payments to producers of 
hard white wheat under this section.

SEC. 1707. 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 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 2008 through 2012.

SEC. 1708. 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 partial 
disbursements 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) for loan amounts of less than $150,000, not require a 
        lien on the real estate parcel on which the storage facility is 
        located;
            (2) for loan amounts equal to or more than $150,000, 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 loan 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
                    (B) not subject to any other liens or mortgages 
                that are superior to the lien interest of the Commodity 
                Credit Corporation.

SEC. 1709. 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 and Rural Investment Act 
of 2002, and title I of the Food and Energy Security Act of 2007''.

SEC. 1710. 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 in subsections (a) and (c)(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 and Energy Security Act of 2007''.

SEC. 1711. 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 the 
authority of subtitles A through E and this subtitle.
    (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. 1712. 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) 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.
    ``(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, 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. 1713. 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. 1714. 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. 1715. 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 
                                disadvantaged farmers and ranchers.--
                                The Secretary shall ensure, to the 
                                extent practicable, that representation 
                                of socially disadvantaged farmers and 
                                ranchers is maintained 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. 1716. 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. 1717. SIGNATURE AUTHORITY.

    In carrying out this title and title II and amendments made by 
those titles, if the Secretary approves a document containing 
signatures of program applicants, the Secretary shall not subsequently 
determine the document is inadequate or invalid because of the lack of 
authority of any applicant signing the document on behalf of the 
applicant or any other individual, entity, general partnership, or 
joint venture, or the documents relied upon were determined inadequate 
or invalid, unless the applicant knowingly and willfully falsified the 
evidence of signature authority or a signature.

SEC. 1718. MODERNIZATION OF FARM SERVICE AGENCY.

    The Secretary shall modernize the Farm Service Agency information 
technology and communication systems to ensure timely and efficient 
program delivery at national, State, and County offices.

SEC. 1719. GEOSPATIAL SYSTEMS.

    (a) In General.--The Secretary shall ensure that all agencies of 
the Department of Agriculture consolidate the geospatial systems of the 
agencies into a single enterprise system that ensures that geospatial 
data is shareable, portable, and standardized.
    (b) Requirements.--In carrying out subsection (a), the Secretary 
shall--
            (1) identify common datasets;
            (2) give responsibility for managing each identified 
        dataset to the agency best suited for collecting and 
        maintaining that data, as determined by the Secretary; and
            (3) make every effort to minimize the duplication of 
        efforts.
    (c) Availability of Data.--The Secretary shall ensure, to the 
maximum extent practicable, that data is readily available to all 
agencies beginning not later than 2 years after the date of enactment 
of this Act.

SEC. 1720. LEASING OFFICE SPACE.

    The Secretary may use the funds, facilities, and authorities of the 
Commodity Credit Corporation to lease space for use by agencies of the 
Department of Agriculture in cases in which office space would be 
jointly occupied by the agencies.

SEC. 1721. 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.

                  Subtitle F--Specialty Crop Programs

SEC. 1801. DEFINITIONS.

    In this subtitle:
            (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.--The term ``State'' means each of the several 
        States of the United States.
            (3) 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.

             PART I--MARKETING, INFORMATION, AND EDUCATION

SEC. 1811. FRUIT AND VEGETABLE MARKET NEWS ALLOCATION.

    (a) In General.--The Secretary, acting through the Administrator of 
the Agricultural Marketing Service, shall carry out market news 
activities to provide timely price information of United States fruits 
and vegetables in the United States.
    (b) Authorization of Appropriations.--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. 1812. 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)(B), 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.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section--
            ``(1) $5,000,000 for each of fiscal years 2008 through 
        2011; and
            ``(2) $10,000,000 for fiscal year 2012.''.

SEC. 1813. FOOD SAFETY 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--
            (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 unsanitary 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.

SEC. 1814. CENSUS OF SPECIALTY CROPS.

    (a) Establishment.--Not later than September 30, 2008, and each 5 
years thereafter, the Secretary shall conduct a census of specialty 
crops to assist in the regularly development and dissemination of 
information relative to specialty crops.
    (b) Relation to Other Census.--The Secretary may include the census 
of specialty crops in the census on agriculture.

                      PART II--ORGANIC PRODUCTION

SEC. 1821. ORGANIC DATA COLLECTION AND PRICE REPORTING.

    Section 2104 of the Organic Foods Production Act of 1990 (7 U.S.C. 
6503) is amended by adding at the end the following:
    ``(e) Data Collection and Price Reporting.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall use $5,000,000 for 
the period of fiscal years 2008 through 2012--
            ``(1) to collect data relating to organic agriculture;
            ``(2) to identify and publish organic production and market 
        data initiatives and surveys;
            ``(3) to expand, collect, and publish organic census data 
        analyses;
            ``(4) to fund comprehensive reporting of prices relating to 
        organically-produced agricultural products;
            ``(5) to conduct analysis relating to organic production, 
        handling, distribution, retail, and trend studies;
            ``(6) to study and perform periodic updates on the effects 
        of organic standards on consumer behavior; and
            ``(7) to conduct analyses for organic agriculture using the 
        national crop table.''.

SEC. 1822. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS.

    Section 501(e) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7401(e)) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) In general.--Notwithstanding any provision of a 
        commodity promotion law, a person that produces and markets 
        organic products shall be exempt from the payment of an 
        assessment under a commodity promotion law with respect to that 
        portion of agricultural commodities that the person--
                    ``(A) produces on a certified organic farm (as 
                defined in section 2103 of the Organic Foods Production 
                Act of 1990 (7 U.S.C. 6502); and
                    ``(B) produces or markets as organically produced 
                (as so defined).''.

SEC. 1823. 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 to read as follows:

``SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Program.--The term `program' means the national 
        certification cost-share program established under subsection 
        (b).
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Agricultural Marketing 
        Service.
    ``(b) Establishment.--The Secretary shall use amounts made 
available under subsection (f) to establish a national organic 
certification cost-share program under which the Secretary shall make 
payments to States to assist producers and handlers of agricultural 
products in obtaining certification under the national organic 
production program established under the Organic Foods Production Act 
of 1990 (7 U.S.C. 6501 et seq.).
    ``(c) Federal Share.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall pay under this section not more than 75 percent of the 
        costs incurred by a producer or handler in obtaining 
        certification under the national organic production program, as 
        certified to and approved by the Secretary.
            ``(2) Maximum amount.--The maximum amount of a payment made 
        to a producer or handler under this section shall be $750.
    ``(d) Recordkeeping Requirements.--
            ``(1) In general.--The Secretary shall--
                    ``(A) keep accurate, up-to-date records of requests 
                and disbursements from the program; and
                    ``(B) require accurate and consistent recordkeeping 
                from each State and entity that receives program 
                payments.
            ``(2) Federal requirements.--Not later than 30 days after 
        the last day on which a State may request funding under the 
        program, the Secretary shall--
                    ``(A) determine the number of States requesting 
                funding and the amount of each request; and
                    ``(B) distribute the funding to the States.
            ``(3) State requirements.--An annual funding request from a 
        State shall include data from the program during the preceding 
        year, including--
                    ``(A) a description of--
                            ``(i) the entities that requested 
                        reimbursement;
                            ``(ii) the amount of each reimbursement 
                        request; and
                            ``(iii) any discrepancies between the 
                        amount requested and the amount provided;
                    ``(B) data to support increases in requests 
                expected in the coming year, including information from 
                certifiers or other data showing growth projections; 
                and
                    ``(C) an explanation of any case in which an annual 
                request is lower than the request of the preceding 
                year.
    ``(e) Reporting.--Not later than March 1 of each year, the 
Secretary shall submit to Congress a report that describes the 
expenditures for each State under the program during the previous 
fiscal year, including the number of producers and handlers served by 
the program in the previous fiscal year.
    ``(f) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of the Food and Energy Security Act of 2007, out of 
        any funds in the Treasury not otherwise appropriated, the 
        Secretary of the Treasury shall transfer to the Secretary of 
        Agriculture to carry out this section $22,000,000, 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.''.

SEC. 1824. 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 the activities of the 
Agricultural Marketing Service 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; and
            ``(5) $11,000,000 for fiscal year 2012.''.

                     PART III--INTERNATIONAL TRADE

SEC. 1831. FOREIGN MARKET ACCESS STUDY AND STRATEGY PLAN.

    (a) Definition of Uruguay Round Agreements.--In this section, the 
term ``Uruguay Round Agreements'' includes any agreement described in 
section 101(d) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)).
    (b) Study.--The Comptroller General of the United States shall 
study--
            (1) the extent to which United States specialty crops have 
        or have not benefitted from any reductions of foreign trade 
        barriers, as provided for in the Uruguay Round Agreements; and
            (2) the reasons why United States specialty crops have or 
        have not benefitted from such trade-barrier reductions.
    (c) Strategy Plan.--The Secretary shall prepare a foreign market 
access strategy plan based on the study in subsection (b), to increase 
exports of specialty crops, including an assessment of the foreign 
trade barriers that are incompatible with the Uruguay Round Agreements 
and a strategy for removing those barriers.
    (d) Report.--Not later than 18 months after the date of enactment 
of this Act--
            (1) the Comptroller General shall submit to Congress a 
        report that contains the results of the study; and
            (2) the Secretary shall submit to Congress the strategy 
        plan.

SEC. 1832. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5680) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Petition.--A participant in the program may petition the 
Secretary for an extension of a project carried out under this section 
that exceeds, or will exceed, applicable time restrictions.
    ``(e) Funding.--
            ``(1) In general.--The Secretary shall make available to 
        carry out the program under this section--
                    ``(A) $6,800,000 of funds of, or an equal value of 
                commodities owned by, the Commodity Credit Corporation 
                for each of fiscal years 2008 through 2011; and
                    ``(B) $2,000,000 of funds of, or an equal value of 
                commodities owned by, the Commodity Credit Corporation 
                for fiscal year 2012 and each subsequent fiscal year.
            ``(2) Carryover of unobligated funds.--In a case in which 
        the total amount of funds or commodities made available under 
        paragraph (1) for a fiscal year is not obligated in that fiscal 
        year, the Secretary shall make available in the subsequent 
        fiscal year an amount equal to--
                    ``(A) the amount made available for the fiscal year 
                under paragraph (1); plus
                    ``(B) the amount not obligated in the previous 
                fiscal year.''

SEC. 1833. CONSULTATIONS ON SANITARY AND PHYTOSANITARY RESTRICTIONS FOR 
              FRUITS AND VEGETABLES.

    To the maximum extent practicable, the Secretary and the United 
States Trade Representative shall consult with interested persons, and 
conduct annual briefings, on sanitary and phytosanitary trade issues, 
including--
            (1) the development of a strategic risk management 
        framework; and
            (2) as appropriate, implementation of peer review for risk 
        analysis.

                PART IV--SPECIALTY CROPS COMPETITIVENESS

SEC. 1841. SPECIALTY CROP BLOCK GRANTS.

    (a) Extension of Program.--Section 101(a) of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is 
amended by striking ``2009'' and inserting ``2012''.
    (b) Eligibility.--Section 101 of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is 
amended by striking subsection (e) and inserting the following:
    ``(e) Plan Requirements.--
            ``(1) In general.--The State plan shall identify the lead 
        agency charged with the responsibility for carrying out the 
        plan and indicate how the grant funds will be used to enhance 
        the competitiveness of specialty crops.
            ``(2) Representation of certain individuals.--To the 
        maximum extent practicable and appropriate, the State plan 
        shall be developed taking into consideration the opinions and 
        expertise of beginning farmers or ranchers (as defined in 
        section 343(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1991(a)) and 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))) who produce 
        specialty crops.''.
    (c) Audit and Plan Requirements.--Section 101 of the Specialty 
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-
465) is amended by striking subsection (h) and inserting the following:
    ``(h) Audit and Plan Requirements.--
            ``(1) In general.--For each year that a State receives a 
        grant under this section, the State shall conduct an audit of 
        the expenditures of grant funds by the State.
            ``(2) Submission of audit and description.--Not later than 
        30 days after the date of completion of an audit under 
        paragraph (1), the State shall submit to the Secretary of 
        Agriculture--
                    ``(A) a copy of the audit;
                    ``(B) a description of the ways in which the State 
                is complying with the requirement under subsection (e); 
                and
                    ``(C) such additional information as the Secretary 
                may request to ensure, to the maximum extent 
                practicable, that the State is complying with that 
                requirement.''.
    (d) Availability of Funds.--Section 101 of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is 
amended by striking subsection (i) and inserting the following:
    ``(i) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make grants under this section, 
using--
            ``(1) $60,000,000 for fiscal year 2008;
            ``(2) $65,000,000 for fiscal year 2009;
            ``(3) $70,000,000 for fiscal year 2010;
            ``(4) $75,000,000 for fiscal year 2011; and
            ``(5) $0 for fiscal year 2012.''.
    (e) Conforming Amendments.--Section 101 of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is 
amended--
            (1) in subsection (a), by striking ``Subject to the 
        appropriation of funds to carry out this section'' and 
        inserting ``Using the funds made available under subsection 
        (i)'';
            (2) in subsection (b), by striking ``appropriated pursuant 
        to the authorization of appropriations in'' and inserting 
        ``made available under'';
            (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 \1/2\ of 1 percent of the total amount of 
funding made available to carry out this section for the fiscal 
year.'';
            (4) by redesignating subsection (i) as subsection (j); and
            (5) by inserting after subsection (h) the following:
    ``(i) Reallocation.--The Secretary may reallocate to other States 
any amounts made available under this section that are not obligated or 
expended by a date determined by the Secretary.''.
    (f) Definition of Specialty Crop.--Section 3 of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is 
amended by striking paragraph (1) and inserting the following:
            ``(1) Specialty crop.--The term `specialty crop' means 
        fruits, vegetables, tree nuts, dried fruits, nursery crops, 
        floriculture, and horticulture, including turfgrass sod and 
        herbal crops.''.
    (g) Definition of State.--Section 3(2) of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) 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''.

SEC. 1842. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    Title II of the Specialty Crops Competitiveness Act of 2004 (Public 
Law 108-465; 118 Stat. 3884) is amended by adding at the end the 
following:

``SEC. 204. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    ``(a) In General.--The Secretary of Agriculture 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 Entities.--Grants may be made under this section 
to--
            ``(1) a State or local government;
            ``(2) a grower cooperative;
            ``(3) a State or regional producer or shipper organization;
            ``(4) a nonprofit trucking association and their research 
        entities;
            ``(5) a combination of the entities described in paragraphs 
        (1) through (4); or
            ``(6) other entities, as determined by the Secretary.
    ``(c) Matching Funds.--As a condition of the receipt of a grant 
under this section, 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 to the amount of grant 
funds received by the recipient under this section.
    ``(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. 1843. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

    Title II of the Specialty Crops Competitiveness Act of 2004 (Public 
Law 108-465; 118 Stat. 3884) (as amended by section 1842) is amended by 
adding at the end the following:

``SEC. 205. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

    ``(a) Definitions.--In this section:
            ``(1) Center.--The term `Center' means the healthy food 
        enterprise development center established under subsection (b).
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a nonprofit organization;
                    ``(B) a cooperative;
                    ``(C) a business;
                    ``(D) an agricultural producer;
                    ``(E) an academic institution;
                    ``(F) an individual; and
                    ``(G) such other entities as the Secretary may 
                designate.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(4) Underserved community.--The term `underserved 
        community' means a community (including an urban or rural 
        community and an Indian tribal community) that, as determined 
        by the Secretary, has--
                    ``(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.
    ``(b) Center.--The Secretary, acting through the Agricultural 
Marketing Service, shall offer to enter into a contract with a 
nonprofit organization to establish and support a healthy food 
enterprise development center to increase access to healthy, affordable 
foods, such as fresh fruit and vegetables, particularly for school-aged 
children and individuals in low-income communities.
    ``(c) Activities.--
            ``(1) Purpose.--The purpose of the Center is to increase 
        access to healthy affordable foods, including locally produced 
        agricultural products, to underserved communities.
            ``(2) Technical assistance and information.--The Center 
        shall collect, develop, and provide technical assistance and 
        information to small and mid-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 the products in underserved communities.
    ``(d) Authority To Subgrant.--The Center may provide subgrants to 
eligible entities to carry out feasibility studies to establish 
businesses to carry out the purposes of this section.
    ``(e) Priority.--In providing technical assistance and grants under 
subsections (c)(2) and (d), the Center shall give priority to 
applications that have components that will--
            ``(1) benefit underserved communities; and
            ``(2) develop market opportunities for small and mid-sized 
        farm and ranch operations.
    ``(f) Report.--For each fiscal year for which the nonprofit 
organization described in subsection (b) receives funds, the 
organization shall submit to the Secretary a report describing the 
activities carried out in the previous fiscal year, including--
            ``(1) a description of technical assistance provided;
            ``(2) the total number and a description of the subgrants 
        provided under subsection (d);
            ``(3) 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
            ``(4) a determination of whether the activities identified 
        in paragraph (3) are sustained in the years following the 
        initial provision of technical assistance and subgrants under 
        this section.
    ``(g) Competitive Award Process.--The Secretary shall use a 
competitive process to award funds to establish the Center.
    ``(h) Funding.--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) $1,000,000 for fiscal year 2009; and
            ``(2) $2,000,000 for each of fiscal years 2010 through 
        2012.''.

                         PART V--MISCELLANEOUS

SEC. 1851. 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 and land 
        grant universities; 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 $4,000,000 for each of 
fiscal years 2008 through 2012.

SEC. 1852. 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.

SEC. 1853. 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 limitation on 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 of 
                mushrooms as follows:
                            ``(i) If the annual production of the 
                        region is greater than 110,000,000 pounds, but 
                        not more than 180,000,000 pounds, the region 
                        shall be represented by 1 additional member.
                            ``(ii) If the annual production of the 
                        region is greater than 180,000,000 pounds, but 
                        not more than 260,000,000 pounds, the region 
                        shall be represented by 2 additional members.
                            ``(iii) If the annual production of the 
                        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 food safety programs, including good 
        agricultural practices and good handling practices or related 
        activities for mushrooms;''.

SEC. 1854. 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) In general.--Notwithstanding any other 
                provision of law, subject to subparagraph (B), the 
                order providing for the establishment and operation of 
                the Honey Board in effect on the date of enactment of 
                this paragraph shall continue in force, and the 
                Secretary shall not schedule or conduct any referendum 
                on the continuation or termination of the order, until 
                the Secretary first conducts, at the earliest 
                practicable date, concurrent referenda among all 
                eligible producers, importers, packers, and handlers of 
                honey for the purpose of ascertaining whether eligible 
                producers, importers, packers, and handlers of honey 
                approve of 1 or more orders to establish successor 
                marketing boards for honey.
                    ``(B) Requirements.--In conducting concurrent 
                referenda under subparagraph (A), the Secretary shall 
                ensure that--
                            ``(i) a referendum of United States honey 
                        producers for the establishment of a marketing 
                        board solely for United States honey producers 
                        is included in the process; and
                            ``(ii) the rights and interests of honey 
                        producers, importers, packers, and handlers of 
                        honey are protected in the transition to any 
                        new marketing board.''.

SEC. 1855. IDENTIFICATION OF HONEY.

    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.--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 shall be 
        considered a deceptive practice that is prohibited under this 
        Act unless there appears legibly and permanently in close 
        proximity 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 `Product of' or other words of similar meaning.''.

SEC. 1856. 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.

                      Subtitle G--Risk Management

SEC. 1901. 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. 1902. 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. 1903. 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 
1902(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''.
    (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'' 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 date of enactment of the Food 
                and Energy Security Act of 2007; and
                    ``(C) 1.0 on and after the date of enactment of 
                that Act.''.

SEC. 1904. CONTROLLED BUSINESS INSURANCE.

    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) Commissions.--
                    ``(A) Definition of immediate family.--In this 
                paragraph, the term `immediate family' means a person'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 person's spouse.
                    ``(B) Prohibition.--No person may receive a 
                commission or share of a commission for any policy or 
                plan of insurance offered under this Act in which the 
                person has a substantial beneficial interest or in 
                which a member of the person's immediate family has a 
                substantial beneficial interest if, in a calendar year, 
                the aggregate of the commissions exceeds 30 percent of 
                the aggregate of all commissions received by the person 
                for any policy or plan of insurance offered under this 
                Act.
                    ``(C) Reporting.--On the completion of the 
                reinsurance year, any person that received a commission 
                or share of a commission for any policy or plan of 
                insurance offered under this Act in the prior calendar 
                year shall certify to applicable approved insurance 
                providers that the person received the commissions in 
                compliance with this paragraph.
                    ``(D) Sanctions.--The 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 
                        person 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 commissions are received, 
                        including the reinsurance for those policies or 
                        plans.''.

SEC. 1905. ADMINISTRATIVE FEE.

    Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(b)(5)) is amended--
            (1) in subparagraph (A), by striking ``$100'' and inserting 
        ``$200''; 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);
                    (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''.

SEC. 1906. TIME FOR PAYMENT.

    Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
amended--
            (1) in subsection (d), by adding at the end the following:
            ``(4) Time for payment.--Effective beginning with the 2012 
        reinsurance year, a producer that obtains a policy or plan of 
        insurance under this title shall submit the required premium 
        not later than September 30 of the year for which the plan or 
        policy of insurance was obtained.''; and
            (2) in subsection (k)(4), 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) of the 
                reinsurance year for which reimbursements are 
                earned.''.

SEC. 1907. SURCHARGE PROHIBITION.

    Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) 
(as amended by section 1906(1)) is amended by adding at the end the 
following:
            ``(5) Surcharge prohibition.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Corporation may not require 
                producers to pay a premium surcharge for using 
                scientifically-sound sustainable and organic farming 
                practices and systems.
                    ``(B) Exception.--
                            ``(i) In general.--A surcharge may be 
                        required for individual organic crops on the 
                        basis of significant, consistent, and systemic 
                        increased risk factors (including loss history) 
                        demonstrated by published cropping system 
                        research (as applied to crop types and regions) 
                        and other relevant sources of information.
                            ``(ii) Consultation.--The Corporation shall 
                        evaluate the reliability of information 
                        described in clause (i) in consultation with 
                        independent experts in the field.''.

SEC. 1908. PREMIUM REDUCTION PLAN.

    Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is 
amended by striking paragraph (3) and inserting the following:
            ``(3) Discount study.--
                    ``(A) In general.--The Secretary shall commission 
                an entity independent of the crop insurance industry 
                (with expertise that includes traditional crop 
                insurance) to study the feasibility of permitting 
                approved insurance providers to provide discounts to 
                producers purchasing crop insurance coverage without 
                undermining the viability of the Federal crop insurance 
                program.
                    ``(B) Components.--The study should include--
                            ``(i) an evaluation of the operation of a 
                        premium reduction plan that examines--
                                    ``(I) the clarity, efficiency, and 
                                effectiveness of the statutory language 
                                and related regulations;
                                    ``(II) whether the regulations 
                                frustrated the goal of offering 
                                producers upfront, predictable, and 
                                reliable premium discount payments; and
                                    ``(III) whether the regulations 
                                provided for reasonable, cost-effective 
                                oversight by the Corporation of premium 
                                discounts offered by approved insurance 
                                providers, including--
                                            ``(aa) whether the savings 
                                        were generated from verifiable 
                                        cost efficiencies adequate to 
                                        offset the cost of discounts 
                                        paid; and
                                            ``(bb) whether appropriate 
                                        control was exercised to 
                                        prevent approved insurance 
                                        providers from preferentially 
                                        offering the discount to 
                                        producers of certain 
                                        agricultural commodities, in 
                                        certain regions, or in specific 
                                        size categories;
                            ``(ii) examination of the impact on 
                        producers, the crop insurance industry, and 
                        profitability from offering discounted crop 
                        insurance to producers;
                            ``(iii) examination of implications for 
                        industry concentration from offering discounted 
                        crop insurance to producers;
                            ``(iv) an examination of the desirability 
                        and feasibility of allowing other forms of 
                        price competition in the Federal crop insurance 
                        program;
                            ``(v) a review of the history of 
                        commissions paid by crop insurance providers; 
                        and
                            ``(vi) recommendations on--
                                    ``(I) potential changes to this 
                                title that would address the 
                                deficiencies in past efforts to provide 
                                discounted crop insurance to producers,
                                    ``(II) whether approved insurance 
                                providers should be allowed to draw on 
                                both administrative and operating 
                                reimbursement and underwriting gains to 
                                provide discounted crop insurance to 
                                producers; and
                                    ``(III) any other action that could 
                                increase competition in the crop 
                                insurance industry that will benefit 
                                producers but not undermine the 
                                viability of the Federal crop insurance 
                                program.
                    ``(C) Request for proposals.--In developing the 
                request for proposals for the study, the Secretary 
                shall consult with parties in the crop insurance 
                industry (including producers and approved insurance 
                providers and agents, including providers and agents 
                with experience selling discount crop insurance 
                products).
                    ``(D) Review of study.--The independent entity 
                selected by Secretary under subparagraph (A) shall seek 
                comments from interested stakeholders before finalizing 
                the report of the entity.
                    ``(E) Report.--Not later than 18 months after the 
                date of enactment of the Food and Energy Security Act 
                of 2007, 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 and 
                recommendations of the study.''.

SEC. 1909. ENTERPRISE AND WHOLE FARM UNITS.

    Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is 
amended by adding at the end the following:
            ``(6) 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) for policyholders that convert from a plan or 
                policy of insurance for which the insurable unit is 
                defined on optional or basic unit basis.
                    ``(B) Eligibility.--To be eligible to participate 
                in a pilot program established under this paragraph, a 
                policyholder shall--
                            ``(i) have purchased additional coverage 
                        for the 2005 crop on an optional or basic unit 
                        basis for at least 90 percent of the acreage to 
                        be covered by enterprise or whole farm unit 
                        policy for the current crop; and
                            ``(ii) purchase the enterprise or whole 
                        farm unit policy at not less than the highest 
                        coverage level that was purchased for the 
                        acreage for the 2005 crop.
                    ``(C) Amount.--
                            ``(i) In general.--The amount of the 
                        premium per acre paid by the Corporation to a 
                        policyholder for a policy with an enterprise 
                        and whole farm unit under this paragraph shall 
                        be, the maximum extent practicable, equal to 
                        the average dollar amount of subsidy per acre 
                        paid by the Corporation under paragraph (2) for 
                        a basic or optional unit.
                            ``(ii) Limitation.--The amount of the 
                        premium paid by the Corporation under this 
                        paragraph may not exceed the total premium for 
                        the enterprise or whole farm unit policy.
                    ``(D) Conversion of pilot to a permanent program.--
                Not earlier than 180 days after the date of enactment 
                of this paragraph, the Corporation may convert the 
                pilot program described in this paragraph to a 
                permanent program if the Corporation has--
                            ``(i) carried out the pilot program;
                            ``(ii) analyzed the results of the pilot 
                        program; and
                            ``(iii) submitted to Congress a report 
                        describing the results of the analysis.''.

SEC. 1910. 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. 1911. MEASUREMENT OF FARM-STORED COMMODITIES.

    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) Measurement of farm-stored commodities.--Beginning 
        with the 2009 crop year, for the purpose of determining the 
        amount of any insured production loss sustained by a producer 
        and the amount of any indemnity to be paid under a plan of 
        insurance--
                    ``(A) a producer may elect, at the expense of the 
                producer, to have the Farm Service Agency measure the 
                quantity of the commodity; and
                    ``(B) the results of the measurement shall be used 
                as the evidence of the quantity of the commodity that 
                was produced.''.

SEC. 1912. REIMBURSEMENT RATE.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) (as amended by section 1906(2)) 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.--For each of 
                the 2009 and subsequent reinsurance years, the 
                reimbursement rates for administrative and operating 
                costs shall be 2 percentage points below the rates in 
                effect as of the date of enactment of the Food and 
                Energy Security Act of 2007 for all crop insurance 
                policies used to define loss ratio, except that the 
                reduction shall not 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 shall be 17 percent of 
                the premium used to define loss ratio for that 
                reinsurance year.''.

SEC. 1913. 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 agreement.--
                    ``(A) In general.--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) following the reinsurance year ending 
                        June 30, 2012;
                            ``(ii) once during each period of 5 
                        reinsurance years thereafter; and
                            ``(iii) subject to subparagraph (B), in any 
                        case in which the approved insurance providers, 
                        as a whole, experience unexpected adverse 
                        circumstances, as determined by the Secretary.
                    ``(B) 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.
                    ``(C) Consultation.--The approved insurance 
                providers may confer with each other and collectively 
                with the Corporation during any renegotiation under 
                subparagraph (A).''.

SEC. 1914. 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 1912) 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. 1915. ACCESS TO DATA MINING INFORMATION.

    (a) In General.--Section 515(j)(2) of the Federal Crop Insurance 
Act (7 U.S.C. 1515(j)(2)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                    ``(A) In general.--The Secretary''; and
            (2) by adding at the end the following:
                    ``(B) Access to data mining information.--
                            ``(i) In general.--The Secretary shall 
                        establish a fee-for-access program under which 
                        approved insurance providers pay to the 
                        Secretary a user fee in exchange for access to 
                        the data mining system established under 
                        subparagraph (A) for the purpose of assisting 
                        in fraud and abuse detection.
                            ``(ii) Prohibition.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the 
                                Corporation shall not impose a 
                                requirement on approved insurance 
                                providers to access the data mining 
                                system established under subparagraph 
                                (A).
                                    ``(II) Access without fee.--If the 
                                Corporation requires approved insurance 
                                providers to access the data mining 
                                system established under subparagraph 
                                (A), including for quality assurance 
                                purposes under the Standard Reinsurance 
                                Agreement access will be provided 
                                without charge to the extent necessary 
                                to fulfill the requirements.
                            ``(iii) Access limitation.--In establishing 
                        the program under clause (i), the Secretary 
                        shall ensure that an approved insurance 
                        provider has access only to information 
                        relating to the policies or plans of insurance 
                        for which the approved insurance provider 
                        provides insurance coverage, including any 
                        information relating to--
                                    ``(I) information of agents and 
                                adjusters relating to policies for 
                                which the approved insurance provider 
                                provides coverage;
                                    ``(II) the other policies or plans 
                                of an insured that are insured through 
                                another approved insurance providers; 
                                and
                                    ``(III) the policies or plans of an 
                                insured for prior crop insurance 
                                years.''.
    (b) Insurance Fund.--Section 516 of the Federal Crop Insurance Act 
(7 U.S.C. 1516) is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(3) Data mining system.--The Corporation shall use 
        amounts deposited in the insurance fund established under 
        subsection (c) from fees collected under section 515(j)(2)(B) 
        to administer and carry out improvements to the data mining 
        system under that section.''; and
            (2) in subsection (c)(1)--
                    (A) by striking ``and civil'' and inserting 
                ``civil''; and
                    (B) by inserting ``and fees collected under section 
                515(j)(2)(B)(i),'' after ``section 515(h),''.

SEC. 1916. PRODUCER ELIGIBILITY.

    Section 520(2) of the Federal Crop Insurance Act (7 U.S.C. 1520(2)) 
is amended by inserting ``or is a person who raises livestock owned by 
other persons (that is not covered by insurance under this title by 
another person)'' after ``sharecropper''.

SEC. 1917. CONTRACTS FOR ADDITIONAL CROP POLICIES.

    Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522) is 
amended--
            (1) by redesignating paragraph (10) as paragraph (14); and
            (2) by inserting after paragraph (9) the following:
            ``(10) 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 bio-based 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.
            ``(11) 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 for profit in any State in which 
                        private ocean ranching of Pacific salmon is 
                        prohibited by any law (including regulations).
                    ``(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 aquaculture operations.
                    ``(C) Research and development.--Research and 
                development described in subparagraph (B) shall 
                evaluate the effectiveness of risk management tools for 
                the production of fish and other seafood 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 aquaculture operations 
                        into existing policies covering adjusted gross 
                        revenue; and
                            ``(iii) provide protection for production 
                        or revenue losses, or both.
            ``(12) Organic crop production coverage improvements.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this paragraph, the 
                Corporation shall offer to enter into 1 or more 
                contracts with qualified entities for the development 
                of improvements in Federal crop insurance policies 
                covering organic crops.
                    ``(B) Price election.--
                            ``(i) In general.--The contracts under 
                        subparagraph (A) shall include the development 
                        of procedures (including any associated changes 
                        in policy terms or materials required for 
                        implementation of the procedures) to offer 
                        producers of organic crops a price election 
                        that would reflect the actual retail or 
                        wholesale prices, as appropriate, received by 
                        producers for organic crops, as established 
                        using data collected and maintained by the 
                        Agricultural Marketing Service.
                            ``(ii) Deadline.--The development of the 
                        procedures required under clause (i) shall be 
                        completed not later than the date necessary to 
                        allow the Corporation to offer the price 
                        election--
                                    ``(I) beginning in the 2009 
                                reinsurance year for organic crops with 
                                adequate data available; and
                                    ``(II) subsequently for additional 
                                organic crops as data collection for 
                                those organic crops is sufficient, as 
                                determined by the Corporation.
            ``(13) 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. 1918. RESEARCH AND DEVELOPMENT.

    (a) Reimbursement Authorized.--Section 522(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1522(b)) is amended by striking paragraph (1) 
and inserting the following:
            ``(1) Research and development reimbursement.--The 
        Corporation shall provide a payment to reimburse an applicant 
        for research and development costs directly related to a policy 
        that--
                    ``(A) is submitted to, and approved by, the Board 
                pursuant to a FCIC reimbursement grant under paragraph 
                (7); or
                    ``(B) is--
                            ``(i) submitted to the Board and approved 
                        by the Board under section 508(h) for 
                        reinsurance; and
                            ``(ii) if applicable, offered for sale to 
                        producers.''.
    (b) FCIC Reimbursement Grants.--Section 522(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1522(b)) is amended by adding at the end the 
following:
            ``(7) FCIC reimbursement grants.--
                    ``(A) Grants authorized.--The Corporation shall 
                provide FCIC reimbursement grants to persons (referred 
                to in this paragraph as `submitters') proposing to 
                prepare for submission to the Board crop insurance 
                policies and provisions under subparagraphs (A) and (B) 
                of section 508(h)(1), that apply and are approved for 
                the FCIC reimbursement grants under this paragraph.
                    ``(B) Submission of application.--
                            ``(i) In general.--The Board shall receive 
                        and consider applications for FCIC 
                        reimbursement grants at least once each year.
                            ``(ii) Requirements.--An application to 
                        receive a FCIC reimbursement grant from the 
                        Corporation shall consist of such materials as 
                        the Board may require, including--
                                    ``(I) a concept paper that 
                                describes the proposal in sufficient 
                                detail for the Board to determine 
                                whether the proposal satisfies the 
                                requirements of subparagraph (C); and
                                    ``(II) a description of--
                                            ``(aa) the need for the 
                                        product, including an 
                                        assessment of marketability and 
                                        expected demand among affected 
                                        producers;
                                            ``(bb) support from 
                                        producers, producer 
                                        organizations, lenders, or 
                                        other interested parties; and
                                            ``(cc) the impact the 
                                        product would have on producers 
                                        and on the crop insurance 
                                        delivery system; and
                                    ``(III) a statement that no 
                                products are offered by the private 
                                sector that provide the same benefits 
                                and risk management services as the 
                                proposal;
                                    ``(IV) a summary of data sources 
                                available that demonstrate that the 
                                product can reasonably be developed and 
                                properly rated; and
                                    ``(V) an identification of the 
                                risks the proposed product will cover 
                                and an explanation of how the 
                                identified risks are insurable under 
                                this title.
                    ``(C) Approval conditions.--
                            ``(i) In general.--A majority vote of the 
                        Board shall be required to approve an 
                        application for a FCIC reimbursement grant.
                            ``(ii) Required findings.--The Board shall 
                        approve the application if the Board finds 
                        that--
                                    ``(I) the proposal contained in the 
                                application--
                                            ``(aa) provides coverage to 
                                        a crop or region not 
                                        traditionally served by the 
                                        Federal crop insurance program;
                                            ``(bb) provides crop 
                                        insurance coverage in a 
                                        significantly improved form;
                                            ``(cc) addresses a 
                                        recognized flaw or problem in 
                                        the Federal crop insurance 
                                        program or an existing product;
                                            ``(dd) introduces a 
                                        significant new concept or 
                                        innovation to the Federal crop 
                                        insurance program; or
                                            ``(ee) provides coverage or 
                                        benefits not available from the 
                                        private sector;
                                    ``(II) the submitter demonstrates 
                                the necessary qualifications to 
                                complete the project successfully in a 
                                timely manner with high quality;
                                    ``(III) the proposal is in the 
                                interests of producers and can 
                                reasonably be expected to be 
                                actuarially appropriate and function as 
                                intended;
                                    ``(IV) the Board determines that 
                                the Corporation has sufficient 
                                available funding to award the FCIC 
                                reimbursement grant; and
                                    ``(V) the proposed budget and 
                                timetable are reasonable.
                    ``(D) Participation.--
                            ``(i) In general.--In reviewing proposals 
                        under this paragraph, the Board may use the 
                        services of persons that the Board determines 
                        appropriate to carry out expert review in 
                        accordance with section 508(h).
                            ``(ii) Confidentiality.--All proposals 
                        submitted under this paragraph shall be treated 
                        as confidential in accordance with section 
                        508(h)(4).
                    ``(E) Entering into agreement.--Upon approval of an 
                application, the Board shall offer to enter into an 
                agreement with the submitter for the development of a 
                formal submission that meets the requirements for a 
                complete submission established by the Board under 
                section 508(h).
                    ``(F) Feasibility studies.--
                            ``(i) In general.--In appropriate cases, 
                        the Corporation may structure the FCIC 
                        reimbursement grant to require, as an initial 
                        step within the overall process, the submitter 
                        to complete a feasibility study, and report the 
                        results of the study to the Corporation, prior 
                        to proceeding with further development.
                            ``(ii) Monitoring.--The Corporation may 
                        require such other reports as the Corporation 
                        determines necessary to monitor the development 
                        efforts.
                    ``(G) Rates.--Payment for work performed by the 
                submitter under this paragraph shall be based on rates 
                determined by the Corporation for products--
                            ``(i) submitted under section 508(h); or
                            ``(ii) contracted by the Corporation under 
                        subsection (c).
                    ``(H) Termination.--
                            ``(i) In general.--The Corporation or the 
                        submitter may terminate any FCIC reimbursement 
                        grant at any time for just cause.
                            ``(ii) Reimbursement.--If the Corporation 
                        or the submitter terminates the FCIC 
                        reimbursement grant before final approval of 
                        the product covered by the grant, the submitter 
                        shall be entitled to--
                                    ``(I) reimbursement of all eligible 
                                costs incurred to that point; or
                                    ``(II) in the case of a fixed rate 
                                agreement, payment of an appropriate 
                                percentage, as determined by the 
                                Corporation.
                            ``(iii) Denial.--If the submitter 
                        terminates development without just cause, the 
                        Corporation may deny reimbursement or recover 
                        any reimbursement already made.
                    ``(I) Consideration of products.--The Board shall 
                consider any product developed under this paragraph and 
                submitted to the Board under the rules the Board has 
                established for products submitted under section 
                508(h).''.
    (c) Conforming Amendment.--Section 523(b)(10) of the Federal Crop 
Insurance Act (7 U.S.C. 1523(b)(10)) is amended by striking ``(other 
than research and development costs covered by section 522)''.

SEC. 1919. 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--
                            ``(i) increasing compliance-related 
                        training;
                            ``(ii) improving analysis tools and 
                        technology regarding compliance;
                            ``(iii) use of information technology, as 
                        determined by the Corporation;
                            ``(iv) identifying and using innovative 
                        compliance strategies; and
                    ``(B) any excess amounts to carry out other 
                activities authorized under this section.''.

SEC. 1920. CAMELINA PILOT PROGRAM.

    (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.--Beginning with the 2008 crop year, 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.''.
    (b) Noninsured Crop Assistance Program.--Section 196(a)(2) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333(a)(2)) is amended by adding at the end the following:
                    ``(D) Camelina.--
                            ``(i) In general.--For each of crop years 
                        2008 through 2011, the Secretary shall consider 
                        camelina to be an eligible crop for purposes of 
                        the noninsured crop disaster assistance program 
                        under this section.
                            ``(ii) Limitation.--Producers that are 
                        eligible to purchase camelina crop insurance, 
                        including camelina crop insurance under a pilot 
                        program, shall not be eligible for assistance 
                        under this section.''.

SEC. 1921. SESAME INSURANCE PILOT PROGRAM.

    Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is 
amended by adding at the end the following:
    ``(g) Sesame Insurance Pilot Program.--
            ``(1) In General.--The Secretary of Agriculture shall 
        establish and carry out a pilot program under which a producer 
        of non-dehiscent sesame under contract may elect to obtain 
        multi-peril crop insurance, as determined by the Secretary.
            ``(2) Terms and Conditions.--The multi-peril 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) Relation to Prohibition on Research and Development 
        by Corporation-Section 522(e)(4) of the Federal Crop Insurance 
        Act (7 U.S.C. 1522(e)(4)) shall apply with respect to the 
        sesame insurance pilot program.
            ``(5) Duration.--The Secretary shall commence the sesame 
        insurance pilot program as soon as practicable after the date 
        of the enactment of this Act and continue the program through 
        the 2012 crop year.''

SEC. 1922. 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) 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. 1923. AGRICULTURAL MANAGEMENT ASSISTANCE.

    Section 524(b)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1524(b)(4)) is amended by adding at end the following:
                    ``(C) Cost-sharing.--The Secretary may provide 
                matching funds to any State described in paragraph (1) 
                that appropriates a portion of the budget of the State 
                to provide financial assistance for producer-paid 
                premiums for crop insurance policies reinsured by the 
                Corporation.''.

SEC. 1924. 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
            ``(2) to the maximum extent practicable, be allowed to use 
        both informal agency review and mediation to resolve disputes 
        under that title.''.

SEC. 1925. DROUGHT 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. 1926. 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 
        ``$200''; and
            (2) in subparagraph (B)--
                    (A) by striking ``$300'' and inserting ``$600''; 
                and
                    (B) by striking ``$900'' and inserting ``$1,500''.

SEC. 1927. 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. 1928. PERENNIAL CROP 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. 1929. 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.''.

SEC. 1930. 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.

                         TITLE II--CONSERVATION

                        Subtitle A--Definitions

SEC. 2001. DEFINITIONS.

    Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 
3801(a)) is amended--
            (1) by redesignating paragraphs (2) through (11), (12), 
        (13) through (15), and (16), (17), and (18) as paragraphs (3) 
        through (12), (14), (16) through (18), and (20), (22), and 
        (23), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(2) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has, to the maximum extent practicable, the 
        meaning given the term in section 343(a) of the Consolidated 
        Farm and Rural Development Act (7 U.S.C. 1991(a)), except that 
        the Secretary may include in the definition of the term--
                    ``(A) a fair and reasonable test of net worth; and
                    ``(B) such other criteria as the Secretary 
                determines to be appropriate.'';
            (3) by inserting after paragraph (12) (as redesignated by 
        paragraph (1)) the following:
            ``(13) 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).''.
            (4) by inserting after paragraph (14) (as redesignated by 
        paragraph (1)) the following:
            ``(15) 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.'';
            (5) by inserting after paragraph (18) (as redesignated by 
        paragraph (1)) the following:
            ``(19) 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)).''; and
            (6) by inserting after paragraph (20) (as redesignated by 
        paragraph (1)) the following:
            ``(21) 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.''.

             Subtitle B--Highly Erodible Land Conservation

SEC. 2101. REVIEW OF GOOD FAITH DETERMINATIONS; EXEMPTIONS.

    Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) is 
amended by striking subsection (f) and inserting the following:
    ``(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 who 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.''.

                    Subtitle C--Wetland Conservation

SEC. 2201. REVIEW OF GOOD FAITH DETERMINATIONS.

    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:
            ``(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 D--Agricultural Resources Conservation Program

           CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT

      Subchapter A--Comprehensive Conservation Enhancement Program

SEC. 2301. REAUTHORIZATION AND EXPANSION OF PROGRAMS COVERED.

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

``SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2012 fiscal 
        years, the Secretary shall establish a comprehensive 
        conservation enhancement program (referred to in this section 
        as `CCEP') to be implemented through contracts and the 
        acquisition of easements to assist owners and operators of 
        farms, ranches, and nonindustrial private forestland to 
        conserve and enhance soil, water, and related natural 
        resources, including grazing land, wetland, and wildlife 
        habitat.
            ``(2) Means.--The Secretary shall carry out the CCEP by--
                    ``(A) providing for the long-term protection of 
                environmentally-sensitive land; and
                    ``(B) providing technical and financial assistance 
                to farmers, ranchers, and nonindustrial private forest 
                landowners--
                            ``(i) to improve the management and 
                        operation of the farms, ranches, and private 
                        nonindustrial forest land; and
                            ``(ii) to reconcile productivity and 
                        profitability with protection and enhancement 
                        of the environment;
                    ``(C) reducing administrative burdens and 
                streamlining application and planning procedures to 
                encourage producer participation; and
                    ``(D) providing opportunities to leverage Federal 
                conservation investments through innovative 
                partnerships with governmental agencies, education 
                institutions, producer groups, and other 
                nongovernmental organizations.
            ``(3) Programs.--The CCEP shall consist of--
                    ``(A) the conservation reserve program established 
                under subchapter B;
                    ``(B) the wetlands reserve program established 
                under subchapter C; and
                    ``(C) the healthy forests reserve program 
                established under subchapter D.
    ``(b) Contracts and Enrollments.--
            ``(1) In general.--In carrying out the CCEP, the Secretary 
        shall enter into contracts with owners and operators and 
        acquire interests in land through easements from owners, as 
        provided in this chapter.
            ``(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve program, wetlands reserve program, or 
        healthy forests reserve program prior to the date of enactment 
        of the Food and Energy Security Act of 2007 shall be considered 
        to be placed into the CCEP.
    ``(c) Administration.--
            ``(1) Limitations.--
                    ``(A) In general.--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 
                this chapter.
                    ``(B) Easements.--Within the limit described in 
                subparagraph (A), not more than 10 percent of the land 
                described in that subparagraph may be subject to an 
                easement acquired under subchapter C of this chapter.
                    ``(C) Exclusion.--Subparagraphs (A) and (B) shall 
                not apply to acres enrolled in the special conservation 
                reserve enhancement program described in section 
                1234(f)(3).
                    ``(D) Exceptions.--The Secretary may exceed the 
                limitation in subparagraph (A) if the Secretary 
                determines that--
                            ``(i)(I) the action would not adversely 
                        affect the local economy of a county; and
                            ``(II) operators in the county are having 
                        difficulties complying with conservation plans 
                        implemented under section 1212;
                            ``(ii)(I) the acreage to be enrolled could 
                        not be used for an agricultural purpose or is 
                        precluded from planting as a result of a State 
                        or local law, order, or regulation prohibiting 
                        water use for agricultural production; and
                            ``(II) enrollment in the program would 
                        benefit the acreage enrolled or land adjacent 
                        to the acreage enrolled; or
                            ``(iii) with respect to cropland in 
                        counties in the State of Washington that exceed 
                        the limitation described in subparagraph (A) as 
                        of the date of enrollment in the program--
                                    ``(I) the acreage to be enrolled is 
                                considered to be essential by Federal 
                                or State plans for a sustainable 
                                wildlife habitat; and
                                    ``(II) enrollment in the program 
                                would assist the producer in meeting 
                                environmental goals in the Federal or 
                                State plans.''.
                    ``(E) Shelterbelts and windbreaks.--The limitations 
                established under this paragraph shall not apply to 
                cropland that is subject to an easement under chapter 1 
                or 3 that is used for the establishment of shelterbelts 
                and windbreaks.
                    ``(F) Enrollment.--The Secretary shall enroll 
                acreage described in subparagraph (D)(ii) not later 
                than 180 days after the date of a request by a 
                landowner to enroll the acreage.
                    ``(G) Payments.--Rental payments for acreage 
                described in subparagraph (D)(ii) shall be based on the 
                cash rent market value prior to the application of a 
                State or local law, order, or regulation prohibiting 
                water use for agricultural production.
            ``(2) Tenant protection.--Except for a person who is a 
        tenant on land that is subject to a conservation reserve 
        contract that has been extended by the Secretary, the Secretary 
        shall provide adequate safeguards to protect the interests of 
        tenants and sharecroppers, including provisions for sharing, on 
        a fair and equitable basis, in payments under the programs 
        established under this subtitle and subtitles B and C.
            ``(3) Provision of technical assistance by other sources.--
                    ``(A) In general.--In the preparation and 
                application of a conservation compliance plan under 
                subtitle B or similar plan required as a condition for 
                assistance from the Department of Agriculture, the 
                Secretary shall permit persons to secure technical 
                assistance from approved sources, as determined by the 
                Secretary, other than the Natural Resources 
                Conservation Service.
                    ``(B) Rejection.--If the Secretary rejects a 
                technical determination made by a source described in 
                subparagraph (A), the basis of the determination of the 
                Secretary shall be supported by documented evidence.
            ``(4) Regulations.--Not later than 90 days after the date 
        of enactment of the Food and Energy Security Act of 2007, the 
        Secretary shall promulgate regulations to implement the 
        conservation reserve and wetlands reserve programs established 
        under this chapter.''.
    (b) Conforming Amendments.--
            (1) Section 1243 of the Food Security Act of 1985 (16 
        U.S.C. 3843) is repealed.
            (2) Section 1222(g) of the Food Security Act of 1985 (16 
        U.S.C. 3822(g)) is amended by striking ``1243'' and inserting 
        ``1230(c)''.
            (3) Section 1231(k)(3)(C)(i) of the Food Security Act of 
        1985 (16 U.S.C. 3831(k)(3)(C)(i)) is amended by striking 
        ``1243(b)'' and inserting ``1230(c)(1)''.

                   Subchapter B--Conservation Reserve

SEC. 2311. CONSERVATION RESERVE PROGRAM.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended--
            (1) by striking ``2007'' and inserting ``2012''; and
            (2) by striking ``and wildlife'' and inserting ``wildlife, 
        and pollinator habitat''.
    (b) Eligible Land.--Section 1231(b) of the Food Security Act of 
1985 (16 U.S.C. 3831(b)) is amended--
            (1) in paragraph (1)(B), by striking the period at the end 
        and inserting a semicolon;
            (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 ``in the case 
                of alfalfa or other forage crops,'' before 
                ``enrollment'';
            (3) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(6) marginal pasture land or hay land that is otherwise 
        ineligible, if the land--
                    ``(A) is to be devoted to native vegetation 
                appropriate to the ecological site; and
                    ``(B) would contribute to the restoration of a 
                long-leaf pine forest or other declining forest 
                ecosystem, as defined by the Secretary; or
            ``(7) land that is enrolled in the flooded farmland program 
        established under section 1235B.''.
    (c) Enrollment.--Section 1231(d) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)) is amended by striking ``up to'' and all that 
follows through ``2007'' and inserting ``up to 39,200,000 acres in the 
conservation reserve at any 1 time during the 2008 through 2012''.
    (d) Conservation Priority Areas.--Section 1231(f)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3831(f)(1)) is amended--
            (1) by striking ``(Pennsylvania, Maryland, and Virginia)''; 
        and
            (2) by inserting ``the Prairie Pothole Region, the Grand 
        Lake St. Mary's Watershed, the Eastern Snake Plain Aquifer,'' 
        after ``Sound Region,''.
    (e) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231 of the Food Security Act of 1985 
(16 U.S.C. 3831) is amended by striking subsection (h) and inserting 
the following:
    ``(h) Pilot Program for Enrollment of Wetland, Shallow Water Areas, 
and Buffer Acreage in Conservation Reserve.--
            ``(1) Program.--
                    ``(A) In general.--During the 2008 through 2012 
                calendar years, the Secretary shall carry out a program 
                in each State under which the Secretary shall enroll 
                eligible acreage described in paragraph (2).
                    ``(B) 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 pilot program 
                established under this subsection.
            ``(2) Eligible acreage.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (E), an owner or operator may enroll in the 
                conservation reserve under this subsection--
                            ``(i)(I) a 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;
                            ``(II) a shallow water area that was 
                        devoted to a commercial pond-raised aquaculture 
                        operation any year during the period of 
                        calendar years 2002 through 2007; or
                            ``(III) an agriculture drainage water 
                        treatment that receives flow from a row crop 
                        agriculture drainage system and is designed to 
                        provide nitrogen removal in addition to other 
                        wetland functions; and
                            ``(ii) buffer acreage that--
                                    ``(I) is contiguous to a wetland or 
                                shallow water area described in clause 
                                (i);
                                    ``(II) is used to protect the 
                                wetland or shallow water area described 
                                in clause (i); and
                                    ``(III) is of such width as the 
                                Secretary determines is necessary to 
                                protect the wetland or shallow water 
                                area described in clause (i) or to 
                                enhance the wildlife benefits, 
                                including through restriction of 
                                bottomland hardwood habitat, taking 
                                into consideration and accommodating 
                                the farming practices (including the 
                                straightening of boundaries to 
                                accommodate machinery) used with 
                                respect to the cropland that surrounds 
                                the wetland or shallow water area.
                    ``(B) Exclusions.--Except for a shallow water area 
                described in paragraph (2)(A)(i), an owner or operator 
                may not enroll in the conservation reserve under this 
                subsection--
                            ``(i) any wetland, or land on a floodplain, 
                        that is, or is adjacent to, a perennial 
                        riverine system wetland identified on the final 
                        national wetland inventory map of the Secretary 
                        of the Interior; or
                            ``(ii) in the case of an area that is not 
                        covered by the final national inventory map, 
                        any wetland, or land on a floodplain, that is 
                        adjacent to a perennial stream identified on a 
                        1-24,000 scale map of the United States 
                        Geological Survey.
                    ``(C) Program limitations.--
                            ``(i) In general.--The Secretary may enroll 
                        in the conservation reserve under this 
                        subsection not more than--
                                    ``(I) 100,000 acres in any 1 State 
                                referred to in paragraph (1); and
                                    ``(II) not more than a total of 
                                1,000,000 acres.
                            ``(ii) Relationship to program maximum.--
                        Subject to clause (iii), for the purposes of 
                        subsection (d), any acreage enrolled in the 
                        conservation reserve under this subsection 
                        shall be considered acres maintained in the 
                        conservation reserve.
                            ``(iii) Relationship to other enrolled 
                        acreage.--Acreage enrolled under this 
                        subsection shall not affect for any fiscal year 
                        the quantity of--
                                    ``(I) acreage enrolled to establish 
                                conservation buffers as part of the 
                                program announced on March 24, 1998 (63 
                                Fed. Reg. 14109); or
                                    ``(II) acreage enrolled into the 
                                conservation reserve enhancement 
                                program announced on May 27, 1998 (63 
                                Fed. Reg. 28965).
                            ``(iv) Review; potential increase in 
                        enrollment acreage.--Not later than 3 years 
                        after the date of enactment of the Food and 
                        Energy Security Act of 2007, the Secretary 
                        shall--
                                    ``(I) conduct a review of the 
                                program under this subsection with 
                                respect to each State that has enrolled 
                                land in the program; and
                                    ``(II) notwithstanding clause 
                                (i)(I), increase the number of acres 
                                that may be enrolled by a State under 
                                clause (i)(I) to not more than 150,000 
                                acres, as determined by the Secretary.
                    ``(D) Owner or operator limitations.--
                            ``(i) Wetland.--
                                    ``(I) In general.--Except for a 
                                shallow water area described in 
                                paragraph (2)(A)(i), the maximum size 
                                of any wetland described in 
                                subparagraph (A)(i) of an owner or 
                                operator enrolled in the conservation 
                                reserve under this subsection shall be 
                                40 contiguous acres.
                                    ``(II) Coverage.--All acres 
                                described in subclause (I) (including 
                                acres that are ineligible for payment) 
                                shall be covered by the conservation 
                                contract.
                            ``(ii) Buffer acreage.--The maximum size of 
                        any buffer acreage described in subparagraph 
                        (A)(ii) of an owner or operator enrolled in the 
                        conservation reserve under this subsection 
                        shall be determined by the Secretary in 
                        consultation with the State Technical 
                        Committee.
                            ``(iii) Tracts.--Except for a shallow water 
                        area described in paragraph (2)(A)(i) and 
                        buffer acreage, the maximum size of any 
                        eligible acreage described in subparagraph (A) 
                        in a tract (as determined by the Secretary) of 
                        an owner or operator enrolled in the 
                        conservation reserve under this subsection 
                        shall be 40 acres.
            ``(3) Duties of owners and operators.--Under a contract 
        entered into under this subsection, during the term of the 
        contract, an owner or operator of a farm or ranch shall agree--
                    ``(A) to restore the hydrology of the wetland 
                within the eligible acreage to the maximum extent 
                practicable, as determined by the Secretary;
                    ``(B) to establish vegetative cover (which may 
                include emerging vegetation in water and bottomland 
                hardwoods, cypress, and other appropriate tree species 
                in shallow water areas) on the eligible acreage, as 
                determined by the Secretary;
                    ``(C) to a general prohibition of commercial use of 
                the enrolled land; and
                    ``(D) to carry out other duties described in 
                section 1232.
            ``(4) Duties of the secretary.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), in return for a contract 
                entered into by an owner or operator under this 
                subsection, the Secretary shall make payments based on 
                rental rates for cropland and provide assistance to the 
                owner or operator in accordance with sections 1233 and 
                1234.
                    ``(B) Continuous signup.--The Secretary shall use 
                continuous signup under section 1234(c)(2)(B) to 
                determine the acceptability of contract offers and the 
                amount of rental payments under this subsection.
                    ``(C) Incentives.--The amounts payable to owners 
                and operators in the form of rental payments under 
                contracts entered into under this subsection shall 
                reflect incentives that are provided to owners and 
                operators to enroll filterstrips in the conservation 
                reserve under section 1234.''.
    (f) Balance of Natural Resource Purposes.--Section 1231(j) of the 
Food Security Act of 1985 (16 U.S.C. 3831(j)) is amended by striking 
``and wildlife'' and inserting ``wildlife, and pollinator''.
    (g) Duties of Participants.--Section 1232(a) of the Food Security 
Act of 1985 (16 U.S.C. 3832(a)) is amended--
            (1) in paragraph (4)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively; and
                    (B) by inserting before subparagraph (B) (as so 
                redesignated) the following:
                    ``(A) approved vegetative cover shall encourage the 
                planting of native species and restoration of 
                biodiversity;'';
            (2) by redesignating paragraphs (5) through (10) as 
        paragraphs (6) through (11), respectively; and
            (3) by inserting after paragraph (4) the following:
            ``(5) to undertake active management on the land as needed 
        throughout the term of the contract to implement the 
        conservation plan;''.
    (h) Managed Harvesting and Grazing.--Section 1232(a)(7) of the Food 
Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``and brood rearing'' after ``habitat during nesting''; and
            (2) in subparagraph (A), by striking ``biomass)'' and 
        inserting ``biomass and prescribed grazing for the control of 
        invasive species), if such activity is permitted and consistent 
        with the conservation plan described in subsection 
        (b)(1)(A))''.
    (i) Conservation Plans.--Section 1232(b)(1)(A) of the Food Security 
Act of 1985 (16 U.S.C. 3832(b)(1)(A)) is amended by striking 
``contract; and'' and inserting the following: ``contract that are--
                            ``(i) compatible with the conservation and 
                        improvement of soil, water, and wildlife and 
                        wildlife habitat;
                            ``(ii) clearly described and apply 
                        throughout the duration of the contract;
                            ``(iii) actively managed by the owner or 
                        operator that entered into the contract; and
                            ``(iv) consistent with local active 
                        management conservation measures and practices, 
                        as determined by the Secretary; and''.
    (j) Acceptance of Contract Offers.--Section 1234(c) of the Food 
Security Act of 1985 (16 U.S.C. 3834(c)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(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, 
                pollinator, fish, or wildlife habitat, or provide other 
                environmental benefits.
                    ``(B) Local preference.--In determining the 
                acceptability of contract offers for new enrollments 
                if, as determined by the Secretary, the land would 
                provide at least equivalent conservation benefits to 
                land under competing offers, the Secretary shall, to 
                the maximum extent practicable, accept 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.''; 
                and
            (2) by adding at the end the following:
            ``(5) Rental rates.--
                    ``(A) Annual estimates.--Not later than 1 year 
                after the date of enactment of this paragraph, 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.''.
    (k) Early Termination by Owner or Operator.--Section 1235(e)(1) of 
the Food Security Act of 1985 (16 U.S.C. 3835(e)(1)) is amended by 
striking subparagraph (A) and inserting the following:
                    ``(A) In general.--The Secretary shall allow a 
                participant to terminate a conservation reserve 
                contract at any time if, as determined by the 
                Secretary--
                            ``(i) the participant entered into a 
                        contract under this subchapter before January 
                        1, 1995, and the contract has been in effect 
                        for at least 5 years; or
                            ``(ii) in the case of a participant who is 
                        disabled (as defined in section 72(m)(7) of the 
                        Internal Revenue Code of 1986) or retired from 
                        farming or ranching, the participant has 
                        endured financial hardship as a result of the 
                        taxation of rental payments received.''.

SEC. 2312. FLOODED FARMLAND PROGRAM.

    Subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831a et seq.) is amended by adding at 
the end the following:

``SEC. 1235B. FLOODED FARMLAND PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Closed basin lake or pothole.--The term `closed basin 
        lake or pothole' means a naturally occurring lake, pond, 
        pothole, or group of potholes within a tract that--
                    ``(A) covered, on average, at least 5 acres in 
                surface area during the preceding 3 crop years, as 
                determined by the Secretary; and
                    ``(B) has no natural outlet.
            ``(2) Tract.--The term `tract' has the meaning given the 
        term by the Secretary.
    ``(b) Program.--
            ``(1) In general.--Notwithstanding any other provision of 
        law (including regulations), as part of the conservation 
        reserve program established under this subchapter, the 
        Secretary shall offer to enter into contracts under which the 
        Secretary shall permit the enrollment in the conservation 
        reserve of eligible cropland and grazing land that has been 
        flooded by the natural overflow of a closed basin lake or 
        pothole located within the Prairie Pothole Region of the 
        northern Great Plains priority area (as determined by the 
        Secretary, by regulation).
            ``(2) Extensions.--The Secretary may offer to extend a 
        contract entered into under paragraph (1) if the Secretary 
        determines that conditions persist that make cropland or 
        grazing land covered by the contract and eligible for entry 
        into the program under this section.
    ``(c) Continuous Signup.--The Secretary shall offer the program 
under this section through continuous signup under this subchapter.
    ``(d) Eligibility.--
            ``(1) In general.--To be eligible to enter into a contract 
        under subsection (b), the owner shall own land that, as 
        determined by the Secretary--
                    ``(A) during the 3 crop years preceding entry into 
                the contract, was rendered incapable of use for the 
                production of an agricultural commodity or for grazing 
                purposes; and
                    ``(B) prior to the natural overflow of a closed 
                basin lake or pothole caused by a period of 
                precipitation in excess of historical patterns, had 
                been consistently used for the production of crops or 
                as grazing land.
            ``(2) Inclusions.--Land described in paragraph (1) shall 
        include--
                    ``(A) land that has been flooded as the result of 
                the natural overflow of a closed basin lake or pothole;
                    ``(B) land that has been rendered inaccessible due 
                to flooding as the result of the natural overflow of a 
                closed basin lake or pothole; and
                    ``(C) a reasonable quantity of additional land 
                adjoining the flooded land that would enhance the 
                conservation or wildlife value of the tract, as 
                determined by the Secretary.
            ``(3) Administration.--The Secretary may establish--
                    ``(A) reasonable minimum acreage levels for 
                individual parcels of land that may be included in a 
                contract entered into under this section; and
                    ``(B) the location and area of adjoining flooded 
                land that may be included in a contract entered into 
                under this section.
    ``(e) Payments.--
            ``(1) In general.--Subject to paragraph (2), the rate of an 
        annual rental payment under this section, as determined by the 
        Secretary--
                    ``(A) shall be based on the rental rate under this 
                subchapter for cropland, and an appropriate rental rate 
                for pastureland; and
                    ``(B) may be reduced by up to 25 percent, based on 
                the ratio of upland associated with the enrollment of 
                the flooded land.
            ``(2) Exclusions.--During the term of a contract entered 
        into under this section, an owner shall not be eligible to 
        participate in or receive benefits for land that is included in 
        the contract under--
                    ``(A) the Federal crop insurance program 
                established under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.);
                    ``(B) the noninsured crop assistance program 
                established under section 196 of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7333); or
                    ``(C) any Federal agricultural crop disaster 
                assistance program.
    ``(f) Relationship to Agricultural Commodity Programs.--
            ``(1) In general.--Subject to paragraph (2), the Secretary, 
        by regulation, shall provide for the preservation of cropland 
        base, allotment history, and payment yields applicable to land 
        that was rendered incapable of use for the production of an 
        agricultural commodity or for grazing purposes as the result of 
        the natural overflow of a closed basin lake or pothole.
            ``(2) Termination of contract.--On termination of a 
        contract under this section, the Secretary shall adjust the 
        cropland base, allotment history, and payment yields for land 
        covered by the contract to ensure equitable treatment of the 
        land relative to program payment yields of comparable land in 
        the county that was not flooded as a result of the natural 
        overflow of a closed basin lake or pothole and was capable of 
        remaining in agricultural production.
    ``(g) Use of Land.--An owner that has entered into a contract with 
the Secretary under this section shall take such actions as are 
necessary to avoid degrading any wildlife habitat on land covered by 
the contract that has naturally developed as a result of the natural 
overflow of a closed basin lake or pothole.''.

SEC. 2313. WILDLIFE HABITAT PROGRAM.

    Subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831a et seq.) (as amended by section 
2312) is amended by adding at the end the following:

``SEC. 1235C. WILDLIFE HABITAT PROGRAM.

    ``(a) In General.--As part of the conservation reserve program 
established under this subchapter, the Secretary shall carry out a 
program to provide to owners and operators who have entered into 
contracts under this subchapter and established softwood pine stands, 
for each of fiscal years 2008 through 2012, assistance to carry out, on 
the acreage of the owner or operator enrolled in the program under this 
subchapter, activities that improve the condition of the enrolled land 
for the benefit of wildlife.
    ``(b) Scope of Program.--In carrying out the program under this 
section, the Secretary shall determine--
            ``(1) the amount and rate of payments (including incentive 
        payments and cost-sharing payments) to be made to owners and 
        operators who participate in the program to ensure the 
        participation of those owners and operators;
            ``(2) the areas in each of the States in which owners and 
        operators referred to in subsection (a) are located that should 
        be given priority under the program, based on the need in those 
        areas for changes in the condition of land to benefit wildlife; 
        and
            ``(3) the management strategies and practices (including 
        thinning, burning, seeding, establishing wildlife food plots, 
        and such other practices that have benefits for wildlife as are 
        approved by the Secretary) that may be carried out by owners 
        and operators under the program.
    ``(c) Agreements.--
            ``(1) In general.--An owner or operator described in 
        subsection (a) that seeks to receive assistance under this 
        section shall enter into an agreement with the Secretary that--
                    ``(A) describes the management strategies and 
                practices referred to in subsection (b)(3) that will be 
                carried out by the owner or operator under the 
                agreement;
                    ``(B) describes measures to be taken by the owner 
                or operator to ensure active but flexible management of 
                acreage covered by the agreement;
                    ``(C) requires the owner or operator to submit to 
                periodic monitoring and evaluation by wildlife or 
                forestry agencies of the State in which land covered by 
                the agreement is located; and
                    ``(D) contains such other terms or conditions as 
                the Secretary may require.
            ``(2) Term; inclusion in contract.--An agreement entered 
        into under this section shall have a term of not more than 5 
        years.
    ``(d) Partnerships.--In carrying out this section, the Secretary 
may establish or identify and, as appropriate, require owners and 
operators participating in the program under this section to work 
cooperatively with, partnerships among the Secretary and State, local, 
and nongovernmental organizations.
    ``(e) Technical Assistance and Cost Sharing.--The Secretary may 
provide to owners and operators participating in the program under this 
section, and members of partnerships described in subsection (d)--
            ``(1) technical assistance for use in carrying out an 
        activity covered by an agreement described in subsection (c); 
        and
            ``(2) a payment for use in covering a percentage of the 
        costs of carrying out each such activity that does not exceed 
        the applicable amount and rate determined by the Secretary 
        under subsection (b)(1).
    ``(f) Termination of Program.--The program under this section shall 
terminate on September 30, 2011.''.

                 Subchapter C--Wetlands Reserve Program

SEC. 2321. WETLANDS RESERVE PROGRAM.

    Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is 
amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Enrollment Conditions.--
            ``(1) Annual enrollment.--To the maximum extent 
        practicable, the Secretary shall enroll 250,000 acres in each 
        fiscal year, with no enrollments beginning in fiscal year 2013.
            ``(2) Methods of enrollment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall enroll acreage 
                into the wetlands reserve program through the use of--
                            ``(i) permanent easements;
                            ``(ii) 30-year easements;
                            ``(iii) restoration cost-share agreements; 
                        or
                            ``(iv) any combination of the options 
                        described in clauses (i) through (iii).
                    ``(B) 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--
                            ``(i) a 30-year contract (the value of 
                        which shall be equivalent to the value of a 30-
                        year easement);
                            ``(ii) restoration cost-share agreements; 
                        or
                            ``(iii) any combination of the options 
                        described in clauses (i) and (ii).'';
            (2) in subsection (c), by striking ``2007 calendar'' and 
        inserting ``2012 fiscal''; and
            (3) in subsection (d)--
                    (A) in paragraph (2), by striking ``or'' at the 
                end; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) a riparian area; or
            ``(4) a riparian area and an adjacent area that links the 
        riparian area to other parcels of wetland that are protected by 
        wetlands reserve agreements or some other device or 
        circumstance that achieves the same purpose as a wetlands 
        reserve agreement.''.

SEC. 2322. EASEMENTS AND AGREEMENTS.

    (a) Terms of Easement.--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:
                            ``(iii) to meet habitat needs of specific 
                        wildlife species; and''.
    (b) Compensation.--Section 1237A(f) of the Food Security Act of 
1985 (16 U.S.C. 3837a(f)) is amended--
            (1) in the first sentence--
                    (A) by striking ``Compensation'' and inserting the 
                following:
            ``(1) In general.--Compensation''; and
                    (B) by striking ``agreed to'' and all that follows 
                through ``encumbered by the easement'' and inserting 
                ``determined under paragraph (4)'';
            (2) in the second sentence, by striking ``Lands'' and 
        inserting the following:
            ``(2) Bids.--Land'';
            (3) by striking the third sentence and inserting the 
        following:
            ``(3) Payments.--Compensation may be provided in not less 
        than 1 and not more than 30 annual payments of equal or unequal 
        size, as agreed to by the owner and the Secretary.''; and
            (4) by adding at the end the following:
            ``(4) Compensation.--Effective on the date of enactment of 
        this paragraph, the Secretary shall pay the lowest amount of 
        compensation for a conservation easement, as determined by a 
        comparison of subparagraphs (A), (B), and (C):
                    ``(A) The amount necessary to encourage the 
                enrollment of parcels of land that are of importance in 
                achieving the purposes of the program, as determined by 
                the State Conservationist, with advice from the State 
                technical committee, based on 1 of the following:
                            ``(i) The net present value of 30 years of 
                        annual rental payments based on the county 
                        simple average soil rental rates developed 
                        under subchapter B.
                            ``(ii) An area-wide market analysis or 
                        survey.
                            ``(iii) An amount not less than the value 
                        of the agricultural or otherwise undeveloped 
                        raw land based on the Uniform Standards of 
                        Professional Appraisal Practice.
                    ``(B) The amount corresponding to a geographical 
                area value limitation, as determined by the State 
                Conservationist, with advice from the State technical 
                committee.
                    ``(C) The amount contained in the offer made by the 
                landowner.''.
    (c) Wetlands Reserve Enhancement Program.--Section 1237A of the 
Food Security Act of 1985 (16 U.S.C. 3837a) is amended by adding at the 
end the following:
    ``(h) Wetlands Reserve Enhancement Program.--
            ``(1) In general.--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.--Under the wetlands reserve 
        enhancement program, the Secretary may use unique wetlands 
        reserve agreements that may include certain compatible uses as 
        reserved rights in the warranty easement deed restriction, if 
        using those agreements is determined by the Secretary to be--
                    ``(A) consistent with the long-term wetland 
                protection and enhancement goals for which the easement 
                was established; and
                    ``(B) in accordance with a conservation plan.''.
    (d) Report.--
            (1) In general.--Not later than January 1, 2010, 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 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.
            (2) Inclusions.--The report shall include--
                    (A) 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;
                    (B) an assessment of the extent to which the 
                oversight of the conservation easement agreements 
                impacts the availability of resources, including 
                technical assistance;
                    (C) an assessment of the uses and value of 
                agreements with partner organizations; and
                    (D) any other relevant information relating to 
                costs or other effects that would be helpful to the 
                Committees.

SEC. 2323. PAYMENTS.

    Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The total'' and inserting 
                ``Subject to section 1244(i), the total'';
                    (B) by striking ``easement payments'' and inserting 
                ``payments'';
                    (C) by striking ``person'' and inserting 
                ``individual''; and
                    (D) by inserting ``or under 30-year contracts or 
                restoration agreements'' before the period at the end; 
                and
            (2) in paragraph (3)--
                    (A) by striking ``Easement payments'' and inserting 
                ``Payments''; and
                    (B) by striking ``the Food, Agriculture, 
                Conservation, and Trade Act of 1990, or the 
                Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)'' and 
                inserting ``the Federal Agriculture Improvement and 
                Reform Act of 1996 (Public Law 104-127; 110 Stat. 888), 
                or the Farm Security and Rural Investment Act of 2002 
                (Public Law 107-171; 116 Stat. 134)''.

             Subchapter D--Healthy Forests Reserve Program

SEC. 2331. HEALTHY FORESTS RESERVE PROGRAM.

    (a) In General.--Chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended by adding at 
the end the following:

            ``Subchapter D--Healthy Forests Reserve Program

``SEC. 1237M. ESTABLISHMENT OF HEALTHY FORESTS RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary shall establish the healthy 
forests reserve program for the purpose of restoring and enhancing 
forest ecosystems--
            ``(1) to promote the recovery of threatened and endangered 
        species;
            ``(2) to improve biodiversity; and
            ``(3) to enhance carbon sequestration.
    ``(b) Coordination.--The Secretary shall carry out the healthy 
forests reserve program in coordination with the Secretary of the 
Interior and the Secretary of Commerce.

``SEC. 1237N. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

    ``(a) In General.--The Secretary, in coordination with the 
Secretary of the Interior and the Secretary of Commerce, shall describe 
and define forest ecosystems that are eligible for enrollment in the 
healthy forests reserve program.
    ``(b) Eligibility.--To be eligible for enrollment in the healthy 
forests reserve program, land shall be--
            ``(1) private land the enrollment of which will restore, 
        enhance, or otherwise measurably increase the likelihood of 
        recovery of a species listed as endangered or threatened under 
        section 4 of the Endangered Species Act of 1973 (16 U.S.C. 
        1533); and
            ``(2) private land the enrollment of which will restore, 
        enhance, or otherwise measurably improve the well-being of 
        species that--
                    ``(A) are not listed as endangered or threatened 
                under section 4 of the Endangered Species Act of 1973 
                (16 U.S.C. 1533); but
                    ``(B) are candidates for such listing, State-listed 
                species, or special concern species.
    ``(c) Other Considerations.--In enrolling land that satisfies the 
criteria under subsection (b), the Secretary shall give additional 
consideration to land the enrollment of which will--
            ``(1) improve biological diversity; and
            ``(2) increase carbon sequestration.
    ``(d) Enrollment by Willing Owners.--The Secretary shall enroll 
land in the healthy forests reserve program only with the consent of 
the owner of the land.
    ``(e) Methods of Enrollment.--
            ``(1) In general.--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) a permanent easement.
            ``(2) Proportion.--The extent to which each enrollment 
        method is used shall be based on the approximate proportion of 
        owner interest expressed in that method in comparison to the 
        other methods.
            ``(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).
    ``(f) Enrollment Priority.--
            ``(1) Species.--The Secretary shall give priority to the 
        enrollment of land that provides the greatest conservation 
        benefit to--
                    ``(A) primarily, species listed as endangered or 
                threatened under section 4 of the Endangered Species 
                Act of 1973 (16 U.S.C. 1533); and
                    ``(B) secondarily, species that--
                            ``(i) are not listed as endangered or 
                        threatened under section 4 of the Endangered 
                        Species Act of 1973 (16 U.S.C. 1533); but
                            ``(ii) are candidates for such listing, 
                        State-listed species, or special concern 
                        species.
            ``(2) Cost-effectiveness.--The Secretary shall also 
        consider the cost-effectiveness of each agreement or easement, 
        and associated restoration plans, so as to maximize the 
        environmental benefits per dollar expended.

``SEC. 1237O. RESTORATION PLANS.

    ``(a) In General.--Land enrolled in the healthy forests reserve 
program shall be subject to a restoration plan, to be developed jointly 
by the landowner and the Secretary, in coordination with the Secretary 
of Interior.
    ``(b) Practices.--The restoration plan shall require such 
restoration practices as are necessary to restore and enhance habitat 
for--
            ``(1) species listed as endangered or threatened under 
        section 4 of the Endangered Species Act of 1973 (16 U.S.C. 
        1533); and
            ``(2) animal or plant species before the species reach 
        threatened or endangered status, such as candidate, State-
        listed species, and special concern species.

``SEC. 1237P. FINANCIAL ASSISTANCE.

    ``(a) Permanent Easements.--In the case of land enrolled in the 
healthy forests reserve program using a permanent easement, the 
Secretary shall pay to the owner of the land an amount equal to not 
less than 75 percent, nor more than 100 percent, of (as determined by 
the Secretary)--
            ``(1) the fair market value of the enrolled land during the 
        period the land is subject to the easement, less the fair 
        market value of the land encumbered by the easement; and
            ``(2) the actual costs of the approved conservation 
        practices or the average cost of approved practices carried out 
        on the land during the period in which the land is subject to 
        the easement.
    ``(b) 30-Year Easement or Contract.--In the case of land enrolled 
in the healthy forests reserve program using a 30-year easement or 
contract, the Secretary shall pay the owner of the land an amount equal 
to not more than (as determined by the Secretary)--
            ``(1) 75 percent of the fair market value of the land, less 
        the fair market value of the land encumbered by the easement or 
        contract; and
            ``(2) 75 percent of the actual costs of the approved 
        conservation practices or 75 percent of the average cost of 
        approved practices.
    ``(c) 10-Year Agreement.--In the case of land enrolled in the 
healthy forests reserve program using a 10-year cost-share agreement, 
the Secretary shall pay the owner of the land an amount equal to not 
more than (as determined by the Secretary)--
            ``(1) 50 percent of the actual costs of the approved 
        conservation practices; or
            ``(2) 50 percent of the average cost of approved practices.
    ``(d) Acceptance of Contributions.--The Secretary may accept and 
use contributions of non-Federal funds to make payments under this 
section.

``SEC. 1237Q. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide landowners with 
technical assistance to assist the owners in complying with the terms 
of plans (as included in agreements or easements) under the healthy 
forests reserve program.
    ``(b) Technical Service Providers.--The Secretary may request the 
services of, and enter into cooperative agreements with, individuals or 
entities certified as technical service providers under section 1242, 
to assist the Secretary in providing technical assistance necessary to 
develop and implement the healthy forests reserve program.

``SEC. 1237R. PROTECTIONS AND MEASURES.

    ``(a) Protections.--In the case of a landowner that enrolls land in 
the program and whose conservation activities result in a net 
conservation benefit for listed, candidate, or other species, the 
Secretary shall make available to the landowner safe harbor or similar 
assurances and protection under--
            ``(1) section 7(b)(4) of the Endangered Species Act of 1973 
        (16 U.S.C. 1536(b)(4)); or
            ``(2) section 10(a)(1) of that Act (16 U.S.C. 1539(a)(1)).
    ``(b) Measures.--If protection under subsection (a) requires the 
taking of measures that are in addition to the measures covered by the 
applicable restoration plan agreed to under section 1237O, the cost of 
the additional measures, as well as the cost of any permit, shall be 
considered part of the restoration plan for purposes of financial 
assistance under section 1237P.

``SEC. 1237S. INVOLVEMENT BY OTHER AGENCIES AND ORGANIZATIONS.

    ``In carrying out this subchapter, the Secretary may consult with--
            ``(1) nonindustrial private forest landowners;
            ``(2) other Federal agencies;
            ``(3) State fish and wildlife agencies;
            ``(4) State forestry agencies;
            ``(5) State environmental quality agencies;
            ``(6) other State conservation agencies; and
            ``(7) nonprofit conservation organizations.

``SEC. 1237T. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subchapter such sums as are necessary for each of fiscal years 2008 
through 2012.''.
    (b) Conforming Amendments.--The Healthy Forests Restoration Act of 
2003 (16 U.S.C. 6501 et seq.) is amended--
            (1) by striking title V (16 U.S.C. 6571 et seq.); and
            (2) by redesignating title VI and section 601 (16 U.S.C. 
        6591) as title V and section 501, respectively.

        CHAPTER 2--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

                    Subchapter A--General Provisions

SEC. 2341. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830 et seq.) is amended by adding at the end the following:

       ``CHAPTER 6--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

      ``Subchapter A--Comprehensive Stewardship Incentives Program

``SEC. 1240T. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall establish a 
        comprehensive stewardship incentives program (referred to in 
        this chapter as `CSIP') to--
                    ``(A) promote coordinated efforts within 
                conservation programs in this chapter to address 
                resources of concern, as identified at the local level;
                    ``(B) encourage the adoption of conservation 
                practices, activities and management measures; and
                    ``(C) promote agricultural production and 
                environmental quality as compatible goals.
            ``(2) Means.--The Secretary shall carry out CSIP by--
                    ``(A) identifying resources of concern at a local 
                level as described in subsection (b)(4);
                    ``(B) entering into contracts with owners and 
                operators of agricultural and nonindustrial private 
                forest land to--
                            ``(i) address natural resource concerns;
                            ``(ii) meet regulatory requirements; or
                            ``(iii) achieve and maintain new 
                        conservation practices, activities and 
                        management measures; and
                    ``(C) providing technical assistance.
            ``(3) Programs.--CSIP shall consist of--
                    ``(A) the conservation stewardship program; and
                    ``(B) the environmental quality incentives program.
            ``(4) Definition of resource of concern.--In this chapter, 
        the term `resource of concern' means--
                    ``(A) a specific resource concern on agricultural 
                or nonindustrial private forest land that--
                            ``(i) is identified by the Secretary in 
                        accordance with subsection (b)(4);
                            ``(ii) represents a significant 
                        conservation concern in the State to which 
                        agricultural activities are contributing; and
                            ``(iii) is likely to be addressed 
                        successfully through the implementation of 
                        conservation practices, activities, and 
                        management measures by owners and operators of 
                        agricultural and nonindustrial private forest 
                        land; or
                    ``(B) a specific resource concern on agricultural 
                or nonindustrial private forest land that is the 
                subject of mandatory environmental requirements that 
                apply to a producer under Federal, State, or local law.
    ``(b) Administration.--
            ``(1) In general.--In carrying out CSIP, the Secretary 
        shall ensure that the conservation programs under this chapter 
        are managed in a coordinated manner.
            ``(2) Plans.--The Secretary shall, to the maximum extent 
        practicable, avoid duplication in the conservation plans 
        required under this chapter and comparable conservation and 
        regulatory programs, including a permit acquired under an 
        approved water or air quality regulatory program.
            ``(3) Tenant protection.--The Secretary shall provide 
        adequate safeguards to protect the interests of tenants and 
        sharecroppers, including provision for sharing, on a fair and 
        equitable basis, in payments under the programs established 
        under this chapter.
            ``(4) Identification of resources of concern.--
                    ``(A) In general.--The Secretary shall ensure that 
                resources of concern are identified at the State level 
                in consultation with the State Technical Committee.
                    ``(B) Limitation.--The Secretary shall identify not 
                more than 5 resources of concern in a particular 
                watershed or other appropriate region or area within a 
                State.
            ``(5) Regulations.--Not later than 180 days after the date 
        of enactment of the Food and Energy Security Act of 2007 the 
        Secretary shall issue regulations to implement the programs 
        established under this chapter.

            ``Subchapter B--Conservation Stewardship Program

``SEC. 1240U. PURPOSES.

    ``The purpose of the conservation stewardship program is to promote 
agricultural production and environmental quality as compatible goals, 
and to optimize environmental benefits, by assisting producers--
            ``(1) in promoting conservation and improving resources of 
        concern (including soil, water, and energy conservation, soil, 
        water, and air quality, biodiversity, fish, wildlife and 
        pollinator habitat, and related resources of concern, as 
        defined by the Secretary) by providing flexible assistance to 
        install, improve, and maintain conservation systems, practices, 
        activities, and management measures on agricultural land 
        (including cropland, grazing land, and wetland) while 
        sustaining production of food and fiber;
            ``(2) in making beneficial, cost-effective changes to 
        conservation systems, practices, activities, and management 
        measures carried out on agricultural and forest land relating 
        to--
                    ``(A) cropping systems;
                    ``(B) grazing management systems;
                    ``(C) nutrient management associated with livestock 
                and crops;
                    ``(D) forest management;
                    ``(E) fuels management;
                    ``(F) integrated pest management;
                    ``(G) irrigation management;
                    ``(H) invasive species management;
                    ``(I) energy conservation; or
                    ``(J) other management-intensive issues;
            ``(3) in complying with Federal, State, tribal, and local 
        requirements concerning--
                    ``(A) soil, water, and air quality;
                    ``(B) fish, wildlife, and pollinator habitat; and
                    ``(C) surface water and groundwater conservation;
            ``(4) in avoiding, to the maximum extent practicable, the 
        need for resource and regulatory programs by protecting 
        resources of concern and meeting environmental quality criteria 
        established by Federal, State, tribal, and local agencies; and
            ``(5) by encouraging, consolidating, and streamlining 
        conservation planning and regulatory compliance processes to 
        reduce administrative burdens on producers and the cost of 
        achieving environmental goals.

``SEC. 1240V. DEFINITIONS.

    ``In this chapter:
            ``(1) Comprehensive conservation plan.--The term 
        `comprehensive conservation plan' means a plan produced by 
        following the planning process outlined in the applicable 
        National Planning Procedures Handbook of the Department of 
        Agriculture with regard to all applicable resources of concern.
            ``(2) Contract offer.--The term `contract offer' means an 
        application submitted by a producer that seeks to address 1 or 
        more resources of concern with the assistance of the program.
            ``(3) Enhancement payment.--The term `enhancement payment' 
        means a payment described in section 1240X(d).
            ``(4) Eligible land.--The term `eligible land' means land 
        described in section 1240X(b).
            ``(5) Livestock.--The term `livestock' means dairy cattle, 
        beef cattle, laying hens, broilers, turkeys, swine, sheep, 
        goats, ducks, ratites, shellfish, alpacas, bison, catfish, 
        managed pollinators, and such other animals and fish as are 
        determined by the Secretary.
            ``(6) Management intensity.--The term `management 
        intensity' means the degree, scope, and comprehensiveness of 
        conservation systems, practices, activities, or management 
        measures adopted by a producer to improve and sustain the 
        condition of a resource of concern.
            ``(7) Payment.--The term `payment' means financial 
        assistance provided to a producer under the program to 
        compensate the producers for incurred costs associated with 
        planning, materials, installation, labor, management, 
        maintenance, technical assistance, and training, the value of 
        risk, and income forgone by the producer, as applicable, 
        including--
                    ``(A) enhancement payments;
                    ``(B) CSP supplemental payments; and
                    ``(C) other payments provided under this chapter.
            ``(8) Practice.--
                    ``(A) In general.--The term `practice' means 1 or 
                more measures that improve or sustain a resource of 
                concern.
                    ``(B) Inclusions.--The term `practice' includes--
                            ``(i) structural measures, vegetative 
                        measures, and land management measures, as 
                        determined by the Secretary; and
                            ``(ii) planning activities needed to 
                        improve or sustain a resource of concern, 
                        including implementation of--
                                    ``(I) a comprehensive conservation 
                                plan; and
                                    ``(II) a comprehensive nutrient 
                                management plan.
            ``(9) Producer.--The term `producer' means an individual 
        who is an owner, operator, landlord, tenant, or sharecropper 
        that--
                    ``(A) derives income from, and controls, the 
                production or management of an agricultural commodity, 
                livestock, or nonindustrial forest land regardless of 
                ownership;
                    ``(B) shares in the risk of producing any crop or 
                livestock; and
                    ``(C)(i) is entitled to share in the crop or 
                livestock available for marketing from a farm (or would 
                have shared had the crop or livestock been produced); 
                or
                    ``(ii) is a custom feeder or contract grower.
            ``(10) Program.--The term `program' means the conservation 
        stewardship program established under this chapter.
            ``(11) Resource-conserving crop.--The term `resource-
        conserving crop' means--
                    ``(A) a perennial grass;
                    ``(B) a legume grown for use as forage, seed for 
                planting, or green manure;
                    ``(C) a legume-grass mixture;
                    ``(D) a small grain grown in combination with a 
                grass or legume, whether interseeded or planted in 
                succession;
                    ``(E) a winter annual oilseed crop that provides 
                soil protection; and
                    ``(F) such other plantings as the Secretary 
                determines to be appropriate for a particular area.
            ``(12) Resource-conserving crop rotation.--The term 
        `resource-conserving crop rotation' means a crop rotation 
        that--
                    ``(A) includes at least 1 resource-conserving crop;
                    ``(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).
            ``(13) Resource-specific indices.--The term `resource-
        specific indices' means indices developed by the Secretary that 
        measure or estimate the expected level of resource and 
        environmental outcomes of the conservation systems, practices, 
        activities, and management measures employed by a producer to 
        address a resource of concern on an agricultural operation.
            ``(14) Stewardship contract.--The term `stewardship 
        contract' means a contract entered into under the conservation 
        stewardship program to carry out the programs and activities 
        described in this chapter.
            ``(15) Stewardship threshold.--The term `stewardship 
        threshold' means the level of natural resource conservation and 
        environmental management required, as determined by the 
        Secretary--
                    ``(A) to maintain, conserve, and improve the 
                quality or quantity of a resource of concern reflecting 
                at a minimum, the resource management system quality 
                criteria described in the handbooks of the Natural 
                Resource Conservation Service, if available and 
                appropriate; or
                    ``(B) in the case of a resource of concern that is 
                the subject of a Federal, State, or local regulatory 
                requirement, to meet the higher of--
                            ``(i) the standards that are established by 
                        the requirement for the resource of concern; or
                            ``(ii) standards reflecting the resource 
                        management system quality criteria described in 
                        the handbooks of the Natural Resource 
                        Conservation Service, if available and 
                        appropriate.

``SEC. 1240W. ESTABLISHMENT OF PROGRAM.

    ``The Secretary shall establish and, for each of fiscal years 2008 
through 2012, carry out a conservation stewardship program to assist 
producers in improving environmental quality by addressing resources of 
concern in a comprehensive manner through--
            ``(1) the addition of conservation systems, practices, 
        activities, and management measures; and
            ``(2) the active management, maintenance, and improvement 
        of existing, and adoption of new, conservation systems, 
        practices, activities, and management measures.

``SEC. 1240X. ELIGIBILITY.

    ``(a) Eligible Producers.--
            ``(1) General program eligibility.--To be eligible to 
        participate in the conservation stewardship program, a producer 
        shall--
                    ``(A) submit to the Secretary for approval a 
                contract offer to participate in the program;
                    ``(B) agree to receive technical services, either 
                directly from the Secretary or, at the option of the 
                producer, from an approved third party under section 
                1242(b)(3);
                    ``(C) enter into a contract with the Secretary, as 
                described in subsection (c); and
                    ``(D) demonstrate to the satisfaction of the 
                Secretary that the producer--
                            ``(i) is addressing resources of concern 
                        relating to both soil and water to at least the 
                        stewardship threshold; and
                            ``(ii) is adequately addressing other 
                        resources of concern applicable to the 
                        agricultural operation, as determined by the 
                        Secretary.
    ``(b) Eligible Land.--
            ``(1) In general.--Except as provided in paragraph (2), 
        private agricultural land that is eligible for enrollment in 
        the program includes--
                    ``(A) cropland (including vineyards and orchards);
                    ``(B) pasture land;
                    ``(C) rangeland;
                    ``(D) other agricultural land used for the 
                production of livestock;
                    ``(E) land used for agroforestry;
                    ``(F) land used for aquaculture;
                    ``(G) riparian areas adjacent to otherwise eligible 
                land;
                    ``(H) land under the jurisdiction of an Indian 
                tribe (as determined by the Secretary);
                    ``(I) public land, if failure to enroll the land in 
                the program would defeat the purposes of the program on 
                private land that is an integral part of the operation 
                enrolled or offered to be enrolled in the program by 
                the producer;
                    ``(J) State and school owned land that is under the 
                effective control of a producer; and
                    ``(K) other agricultural land (including cropped 
                woodland and marshes) that the Secretary determines is 
                vulnerable to serious threats to resources of concern.
            ``(2) Exclusions.--
                    ``(A) Land enrolled in other conservation 
                programs.--The following land is not eligible for 
                enrollment in the program:
                            ``(i) Land enrolled in the conservation 
                        reserve program under subchapter B of chapter 
                        1.
                            ``(ii) Land enrolled in the wetlands 
                        reserve program established under subchapter C 
                        of chapter 1.
                    ``(B) Conversion to cropland.--With regard to the 
                program, land used for crop production after May 13, 
                2002, 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 (except for land 
                enrolled in the conservation reserve program or that 
                has been maintained using long-term crop rotation 
                practices, as determined by the Secretary) shall not be 
                the basis for any payment under the program.
            ``(3) Economic uses.--The Secretary shall not restrict 
        economic uses of land covered by a program contract (including 
        buffers and other partial field conservation practices) that 
        comply with the agreement and comprehensive conservation plan, 
        or other applicable law.
    ``(c) Contract Requirements and Provisions.--
            ``(1) In general.--After a determination by the Secretary 
        that a producer is eligible to participate in the program, and 
        on acceptance of the contract offer of the producer, the 
        Secretary shall enter into a contract with the producer to 
        enroll the land to be covered by the contract.
            ``(2) Agricultural operations.--All acres of all 
        agricultural operations, whether or not contiguous, that are 
        under the effective control of a producer within a particular 
        watershed or region (or in a contiguous watershed or region) of 
        a State and constitute a cohesive management unit, as 
        determined by the Secretary, at the time the producer enters 
        into a stewardship contract shall be covered by the stewardship 
        contract, other than land the producer has enrolled in the 
        conservation reserve program or the wetlands reserve program.
            ``(3) Resources of concern.--Each stewardship contract 
        shall, at a minimum, meet or exceed the stewardship threshold 
        for at least 1 additional resource of concern by the end of the 
        stewardship contract through--
                    ``(A) the installation and adoption of additional 
                conservation systems, practices, activities, or 
                management measures; and
                    ``(B) the active management and improvement of 
                conservation systems, practices, activities, and 
                management measures in place at the operation of the 
                producer at the time the contract offer is accepted by 
                the Secretary.
            ``(4) Terms.--A contract entered into under paragraph (1) 
        shall--
                    ``(A) describe the land covered by the contract;
                    ``(B) describe the practices or technical services 
                from an approved third party, to be implemented on 
                eligible land of the producer;
                    ``(C) state the amount of payments (determined in 
                accordance with subsection (f)) the Secretary agrees to 
                make to the producer each year of the contract;
                    ``(D) describe existing conservation systems, 
                practices, activities, and management measures the 
                producer agrees to maintain, manage, and improve during 
                the term of the stewardship contract in order to meet 
                and exceed the appropriate stewardship threshold for 
                the resources of concern;
                    ``(E) describe the additional conservation systems, 
                practices, activities, and management measures the 
                producer agrees to plan, install, maintain, and manage 
                during the term of the stewardship contract in order to 
                meet and exceed the appropriate stewardship threshold 
                for the appropriate resource or resources of concern;
                    ``(F) if applicable, describe the on-farm 
                conservation research, demonstration, training, or 
                pilot project activities the producer agrees to 
                undertake during the term of the contract;
                    ``(G) if applicable, describe the on-farm 
                monitoring and evaluation activities the producer 
                agrees to undertake during the term of the contract 
                relating to--
                            ``(i) a comprehensive conservation plan; or
                            ``(ii) conservation systems, practices, 
                        activities, and management measures; and
                    ``(H) include such other provisions as the 
                Secretary determines are necessary to ensure that the 
                purposes of the program are achieved.
            ``(5) On-farm research, demonstration, training, or pilot 
        projects.--The Secretary may approve a stewardship contract 
        that includes--
                    ``(A) on-farm conservation research, demonstration, 
                and training activities; and
                    ``(B) pilot projects for evaluation of new 
                technologies or innovative conservation practices.
            ``(6) Duration.--A contract under this chapter shall have a 
        term of 5 years.
            ``(7) Evaluation of contract offers.--In evaluating 
        contract offers made by producers to enter into contracts under 
        the program, the Secretary shall--
                    ``(A) prioritize applications based on--
                            ``(i) the level of conservation treatment 
                        on all resources of concern at the time of 
                        application, based on the initial scores 
                        received by the producer on applicable 
                        resource-specific indices;
                            ``(ii) the degree to which the proposed 
                        conservation treatment effectively increases 
                        the level of performance on applicable 
                        resource-specific indices or the level of 
                        management intensity with which the producer 
                        addresses the designated resources of concern;
                            ``(iii) the extent to which all resources 
                        of concern will exceed the stewardship 
                        threshold level by the end of the contract 
                        period;
                            ``(iv) the extent to which resources of 
                        concern in addition to resources of concern 
                        will be addressed to meet and exceed the 
                        stewardship threshold level by the end of the 
                        contract period;
                            ``(v) the extent to which the producer 
                        proposes to address the goals and objectives of 
                        State, regional, and national fish and wildlife 
                        conservation plans and initiatives;
                            ``(vi) whether the proposed conservation 
                        treatment reflects the multiple natural 
                        resource and environmental benefits of 
                        conservation-based farming systems, including 
                        resource-conserving crop rotations, advanced 
                        integrated pest management, and managed 
                        rotational grazing; and
                            ``(vii) whether the application includes 
                        land transitioning out of the conservation 
                        reserve program, on the condition that the land 
                        is maintained in a grass-based system and would 
                        help meet habitat needs for fish and wildlife;
                    ``(B) evaluate the extent to which the anticipated 
                environmental benefits from the contract would be 
                provided in the most cost-effective manner, relative to 
                other similarly beneficial contract offers;
                    ``(C) reward higher levels of environmental 
                performance and management intensity;
                    ``(D) develop criteria for use in evaluating 
                applications that will ensure that national, State, and 
                local conservation priorities are effectively 
                addressed;
                    ``(E) evaluate the extent to which the 
                environmental benefits expected to result from the 
                contract complement other conservation efforts in the 
                watershed or region; and
                    ``(F) provide opportunities to agricultural 
                producers that have not previously participated in 
                Federal conservation programs, including beginning 
                farmers and ranchers and socially disadvantaged farmers 
                and ranchers.
            ``(8) Termination of contracts.--
                    ``(A) In general.--
                            ``(i) Voluntary termination.--The producer 
                        may terminate a contract entered into with the 
                        Secretary under this chapter if the Secretary 
                        determines that the termination is in the 
                        public interest.
                            ``(ii) Involuntary termination.--The 
                        Secretary may terminate a contract under this 
                        chapter if the Secretary determines that the 
                        producer violated the contract.
                    ``(B) Repayment.--If a contract is terminated, the 
                Secretary may--
                            ``(i) allow the producer to retain payments 
                        already received under the contract if--
                                    ``(I) the producer has complied 
                                with the terms and conditions of the 
                                contract; and
                                    ``(II) the Secretary determines 
                                that allowing the producer to retain 
                                the payments is consistent with the 
                                purposes of the program;
                            ``(ii) require repayment, in whole or in 
                        part, of payments already received; and
                            ``(iii) assess liquidated damages, if doing 
                        so is consistent with the purposes of the 
                        program.
                    ``(C) Transfer or change of interest in land 
                subject to a contract.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the transfer, or change in the 
                        interest, of a producer in land subject to a 
                        contract under this chapter shall result in the 
                        termination of the contract.
                            ``(ii) Transfer of duties and rights.--
                        Clause (i) shall not apply if--
                                    ``(I) within a reasonable period of 
                                time (as determined by the Secretary) 
                                after the date of the transfer or 
                                change in the interest in land, 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 this 
                                subchapter.
            ``(9) Modification.--
                    ``(A) In general.--The Secretary may allow a 
                producer to modify a contract before the expiration of 
                the contract if the Secretary determines that failure 
                to modify the contract would significantly interfere 
                with achieving the purposes of the program.
                    ``(B) Participation in other programs.--If 
                appropriate payment reductions and other adjustments 
                (as determined by the Secretary) are made to the 
                contract of a producer, the producer may remove land 
                enrolled in the conservation stewardship program for 
                enrollment in the conservation reserve program, 
                wetlands reserve program, or other conservation 
                programs, as determined by the Secretary.
                    ``(C) Changes in size of operation.--The Secretary 
                shall allow a producer to modify a stewardship contract 
                before the expiration of the stewardship contract if 
                the agricultural operation of the producer has reduced 
                or enlarged in size to reflect the new acreage total.
                    ``(D) New acreage.--With respect to acreage added 
                to the agricultural operation of a producer after 
                entering into a stewardship contract, a producer may 
                elect to not add the acreage to the stewardship 
                contract during the term of the current stewardship 
                contract, except that such additional acreage shall be 
                included in any contract renewal.
                    ``(E) Changes in production.--The Secretary shall 
                allow a producer to modify a stewardship contract 
                before the expiration of the stewardship contract if--
                            ``(i) the producer has a change in 
                        production that requires a change to scheduled 
                        conservation practices and activities; and
                            ``(ii) the Secretary determines that--
                                    ``(I) all relevant conservation 
                                standards will be maintained or 
                                improved; and
                                    ``(II) there is no increase in 
                                total payment under the stewardship 
                                contract.
            ``(10) Effect of noncompliance due to circumstances beyond 
        the control of producer.--The Secretary shall include in each 
        contract 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 weather, pest, 
        disease, or other similar condition, as determined by the 
        Secretary.
            ``(11) Coordination with organic certification.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this chapter, the Secretary 
                shall establish a transparent and producer-friendly 
                means by which producers may coordinate and 
                simultaneously certify eligibility under--
                            ``(i) a stewardship contract; and
                            ``(ii) the national organic production 
                        program established under the Organic Foods 
                        Production Act of 1990 (7 U.S.C. 6501 et seq.).
                    ``(B) Programmatic considerations.--The Secretary 
                shall identify and implement programmatic 
                considerations, including conservation systems, 
                practices, activities, and management measures, 
                technical assistance, evaluation of contract offers, 
                enhancement payments, on-farm research, demonstration, 
                training, and pilot projects, and data management, 
                through which to maximize the purposes of the program 
                by enrolling producers who are certified under the 
                national organic production program established under 
                the Organic Foods Production Act of 1990 (7 U.S.C. 6501 
                et seq.).
            ``(12) Renewal.--At the end of a stewardship contract of a 
        producer, the Secretary shall allow the producer to renew the 
        stewardship contract for an additional 5-year period if the 
        producer--
                    ``(A) demonstrates compliance with the terms of the 
                existing contract, including a demonstration that the 
                producer has complied with the schedule for the 
                implementation of additional conservation systems, 
                practices, activities, and management measures included 
                in the stewardship contract and is addressing the 
                designated resources of concern to a level that meets 
                and exceeds the stewardship threshold; and
                    ``(B) agrees to implement and maintain such 
                additional conservation practices and activities as the 
                Secretary determines to be necessary and feasible to 
                achieve higher levels of performance on applicable 
                resource-specific indices or higher levels of 
                management intensity with which the producer addresses 
                the resources of concern.
    ``(d) Enhancement Payments.--
            ``(1) Lower payments.--In evaluating applications and 
        making payments under this chapter, the Secretary shall not 
        assign a higher priority to any application because the 
        applicant is willing to accept a lower payment than the 
        applicant would otherwise be entitled to receive.
            ``(2) Evaluation of contract offers.--Nothing in this 
        subsection relieves the Secretary of the obligation, in 
        evaluating applications for payments, to evaluate and 
        prioritize the applications in accordance with subsection 
        (e)(4)), including the requirement for contracts to be cost-
        effective.
            ``(3) Lowest-cost alternatives.--In determining the 
        eligibility of a conservation system, practice, activity, or 
        management measure for a payment under this subsection, the 
        Secretary shall require, to the maximum extent practicable, 
        that the lowest-cost alternatives be used to achieve the 
        purposes of the contract, as determined by the Secretary.
            ``(4) Method of payment.--Payments under this subsection 
        shall be made in such amounts and in accordance with such time 
        schedule as is agreed on and specified in the contract.
            ``(5) Activities qualifying for payments.--
                    ``(A) In general.--To receive an enhancement 
                payment under this subsection, a producer shall agree--
                            ``(i) to implement additional conservation 
                        systems, practices, activities, and management 
                        measures and maintain, manage, and improve 
                        existing conservation systems, practices, 
                        activities, and management measures in order to 
                        maintain and improve the level of performance 
                        of the producer, as determined by applicable 
                        resource-specific indices, or the level of 
                        management intensity of the producer with 
                        respect to resources of concern in order to 
                        meet and exceed the stewardship threshold for 
                        resources of concern; and
                            ``(ii) to maintain, and make available to 
                        the Secretary at such times as the Secretary 
                        may request, appropriate records demonstrating 
                        the effective and timely implementation of the 
                        stewardship contract.
                    ``(B) Compensation.--Subject to subparagraph (C), 
                the Secretary shall provide an enhancement payment to a 
                producer to compensate the producer for--
                            ``(i) ongoing implementation, active 
                        management, and maintenance of conservation 
                        systems, practices, activities, and management 
                        measures in place on the operation of the 
                        producer at the time the contract offer of the 
                        producer is accepted; and
                            ``(ii) installation and adoption of 
                        additional conservation systems, practices, 
                        activities, and management measures or 
                        improvements to conservation systems, 
                        practices, activities, and management measures 
                        in place on the operation of the producer at 
                        the time the contract offer is accepted.
                    ``(C) Adjustments.--A payment under subparagraph 
                (B) shall be adjusted to reflect--
                            ``(i) management intensity; or
                            ``(ii) resource-specific indices, in a case 
                        in which those indices have been developed and 
                        implemented.
                    ``(D) On-farm research, demonstration, training, 
                and pilot project payments.--The Secretary shall 
                provide an additional enhancement payment to a producer 
                who opts to participate as part of the stewardship 
                contract in an on-farm conservation research, 
                demonstration, training or pilot project certified by 
                the Secretary to compensate the producer for the cost 
                of participation.
                    ``(E) Restriction on structural practices.--For 
                purposes of the conservation stewardship program, 
                structural practices shall be eligible for payment only 
                if the structural practices are integrated with and 
                essential to support site-specific management 
                activities that are part of an implemented management 
                system designed to address 1 or more resources of 
                concern.
            ``(6) Exclusions.--An enhancement payment to a producer 
        under this subsection shall not be provided for the design, 
        construction, or maintenance of animal waste storage or 
        treatment facilities or associated waste transport or transfer 
        devices for animal feeding operations.
            ``(7) Timing of payments.--
                    ``(A) In general.--The Secretary shall make 
                enhancement payments as soon as practicable after 
                October 1 of each fiscal year.
                    ``(B) Additional systems, practices, activities, 
                and management measures.--The Secretary shall make 
                enhancement payments to compensate producers for 
                installation and adoption of additional conservation 
                systems, practices, activities, and management measures 
                or improvements to existing conservation systems, 
                practices, activities, and management measures at the 
                time at which the systems, practices, activities, and 
                measures or improvements are installed and adopted.
            ``(8) Research, demonstration, training, and pilot project 
        payment limitations.--An enhancement payment for research, 
        demonstration, training and pilot projects may not exceed 
        $25,000 for each 5-year term of the stewardship contract 
        (excluding funding arrangements with federally recognized 
        Indian tribes or Alaska Native Corporations).
    ``(e) CSP Supplemental Payments.--
            ``(1) In general.--The Secretary shall provide additional 
        payments to producers that, in participating in the 
        conservation stewardship program, agree to adopt resource-
        conserving crop rotations to achieve optimal crop rotations as 
        appropriate for the land of the producers.
            ``(2) Optimal crop rotations.--The Secretary shall 
        determine whether a resource-conserving crop rotation is an 
        optimal crop rotation eligible for additional payments under 
        paragraph (1), based on whether the resource-conserving crop 
        rotation is designed to optimize natural resource conservation 
        and production benefits, including--
                    ``(A) increased efficiencies in pesticide, 
                fertilizer, and energy use; and
                    ``(B) improved disease management.
            ``(3) Eligibility.--To be eligible to receive a payment 
        described in paragraph (1), a producer shall agree to adopt and 
        maintain optimal resource-conserving crop rotations for the 
        term of the contract.
            ``(4) Rate.--The Secretary shall provide payments under 
        this subsection at a rate that encourages producers to adopt 
        optimal resource-conserving crop rotations.
    ``(f) Limitation on Payments.--Subject to section 1244(i), an 
individual or entity may not receive, directly or indirectly, payments 
under this subchapter that, in the aggregate, exceed $240,000 for all 
contracts entered into under the conservation stewardship program 
during any 6-year period.
    ``(g) Duties of Producers.--In order to receive assistance under 
this chapter, a producer shall--
            ``(1) implement the terms of the contract approved by the 
        Secretary;
            ``(2) not conduct any practices on the covered land that 
        would defeat the purposes of the program;
            ``(3) on the violation of a term or condition of the 
        contract at any time the producer has control of the land--
                    ``(A) if the Secretary determines that the 
                violation warrants termination of the contract--
                            ``(i) forfeit all rights to receive 
                        payments under the contract; and
                            ``(ii) refund to the Secretary all or a 
                        portion of the payments received by the owner 
                        or operator under the contract, including any 
                        interest on the payments or liquidated damages, 
                        as determined by the Secretary;
                    ``(B) if the Secretary determines that the 
                violation does not warrant termination of the contract, 
                refund to the Secretary, or accept adjustments to, the 
                payments provided to the owner or operator, as the 
                Secretary determines to be appropriate; or
                    ``(C) comply with a combination of the remedies 
                authorized by subparagraphs (A) and (B), as the 
                Secretary determines to be appropriate;
            ``(4) on the transfer of the right and interest of the 
        producer in land subject to the contract (unless the transferee 
        of the right and interest agrees with the Secretary to assume 
        all obligations of the contract) refund any cost-share 
        payments, incentive payments, and stewardship payments received 
        under the program, as determined by the Secretary;
            ``(5) supply information as required by the Secretary to 
        determine compliance with the contract and requirements of the 
        program; and
            ``(6) comply with such additional provisions as the 
        Secretary determines are necessary to carry out the contract.
    ``(h) Duties of Secretary.--
            ``(1) In general.--To achieve the conservation and 
        environmental goals of a contract under this chapter, to the 
        extent appropriate, the Secretary shall--
                    ``(A) provide to a producer information and 
                training to aid in implementation of the conservation 
                systems, practices, activities, and management measures 
                covered by the contract;
                    ``(B) develop agreements with governmental 
                agencies, nonprofit organizations, and private entities 
                to facilitate the provision of technical and 
                administrative assistance and services;
                    ``(C) make the program available to eligible 
                producers on a continuous enrollment basis;
                    ``(D) when identifying biodiversity or fish and 
                wildlife as a resource of concern for a particular 
                watershed or other appropriate region or area within a 
                State, ensure that the identification--
                            ``(i) is specific with respect to 
                        particular species or habitat; and
                            ``(ii) would further the goals and 
                        objectives of State, regional, and national 
                        fish and wildlife conservation plans and 
                        initiatives;
                    ``(E) provide technical assistance and payments for 
                each of fiscal years 2008 through 2012;
                    ``(F) maintain contract and payment data relating 
                to the conservation stewardship program in a manner 
                that provides detailed and segmented data and allows 
                for quantification of the amount of payments made to 
                producers for--
                            ``(i) the installation and adoption of 
                        additional conservation systems, practices, 
                        activities, or management measures;
                            ``(ii) participating in research, 
                        demonstration, training, and pilot projects;
                            ``(iii) the development, monitoring, and 
                        evaluation of comprehensive conservation plans; 
                        and
                            ``(iv) the maintenance and active 
                        management of conservation systems, practices, 
                        activities, and management measures, and the 
                        improvement of conservation practices, in place 
                        on the operation of the producer on the date on 
                        which the contract offer is accepted by the 
                        Secretary;
                    ``(G) develop resource-specific indices for 
                purposes of determining eligibility and payments; and
                    ``(H) establish and publicize design protocols and 
                application procedures for individual producer and 
                collaborative on-farm research, demonstration, 
                training, and pilot projects.
            ``(2) Specialty crop producers.--The Secretary shall ensure 
        that outreach and technical assistance are available and 
        program specifications are appropriate to enable specialty crop 
        producers to participate in the conservation stewardship 
        program.
            ``(3) Additional requirements.--For the period beginning on 
        the date of enactment of this chapter and ending on September 
        30, 2017, with respect to eligible land of producers 
        participating in the program, the Secretary shall--
                    ``(A) to the maximum extent practicable, enroll an 
                additional 13,273,000 acres for each fiscal year, but 
                not to exceed 79,638,000 acres;
                    ``(B) implement the program nationwide to make the 
                program available to producers meeting the eligibility 
                requirements in each county;
                    ``(C) to the maximum extent practicable, manage the 
                program to achieve a national average annual cost per 
                acre of $19, which shall include the costs of all 
                financial assistance, technical assistance, and any 
                other expenses associated with enrollment or 
                participation in the program of those acres; and
                    ``(D) establish a minimum contract value, to ensure 
                equity for small acreage farms, including specialty 
                crop and organic producers.
    ``(i) Acre Allocation.--
            ``(1) Initial allocations to states.--In making allocations 
        of acres to States to enroll in the conservation stewardship 
        program, to the maximum extent practicable, the Secretary shall 
        allocate to each State a number of acres equal to the 
        proportion that--
                    ``(A) the number of acres of eligible land in the 
                State; bears to
                    ``(B) the number of acres of eligible land in all 
                States.
            ``(2) Minimum acre allocation.--Of the acres allocated for 
        each fiscal year, no State shall have allocated fewer than the 
        lesser of--
                    ``(A) 20,000 acres; or
                    ``(B) 2.2 percent of the number of acres of 
                eligible land in the State.
            ``(3) Reallocation to states.--For any fiscal year, acres 
        not obligated under this subsection by a date determined by the 
        Secretary through rulemaking shall be reallocated to each State 
        that--
                    ``(A) has obligated 100 percent of the initial 
                allocation of the State; and
                    ``(B) requests additional acres.

``SEC. 1240Y. REGULATIONS.

    ``Not later than 180 days after the date of enactment of this 
chapter, the Secretary shall promulgate such regulations as are 
necessary to carry out the program, including regulations that--
            ``(1) provide for adequate safeguards to protect the 
        interests of tenants and sharecroppers, including provision for 
        sharing payments, on a fair and equitable basis;
            ``(2) prescribe such other rules as the Secretary 
        determines to be necessary to ensure a fair and reasonable 
        application of the program; and
            ``(3) to the maximum extent practicable, eliminate 
        duplication of planning activities under the program and 
        comparable conservation programs.''.

         Subchapter B--Environmental Quality Incentives Program

SEC. 2351. 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'';
            (2) in paragraph (3)--
                    (A) by inserting ``, forest land,'' after ``grazing 
                land''; and
                    (B) by inserting ``pollinators,'' after 
                ``wetland),''; and
            (3) in paragraph (4)--
                    (A) by inserting ``fuels management, forest 
                management,'' after ``grazing management,''; and
                    (B) by inserting ``and forested'' after 
                ``agricultural''.

SEC. 2352. DEFINITIONS.

    (a) Eligible Land.--Section 1240A(2) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-1(2)) is amended--
            (1) in subparagraph (A), by striking ``commodities or 
        livestock'' and inserting ``commodities, livestock, or forest-
        related products''; and
            (2) in subparagraph (B)--
                    (A) by striking clause (v) and inserting the 
                following:
                            ``(v) nonindustrial private forest land;'';
                    (B) by redesignating clause (vi) as clause (vii); 
                and
                    (C) by inserting after clause (v) the following:
                            ``(vi) land used for pond-raised 
                        aquaculture production; and''.
    (b) Land Management Practice.--Section 1240A(3) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-1(3)) is amended--
            (1) by striking ``The term'' and inserting the following:
                    ``(A) In general.--The term'';
            (2) by inserting ``fuels management, forest management,'' 
        after ``grazing management''; and
            (3) by adding at the end the following:
                    ``(B) Forest management.--For purposes of 
                subparagraph (A), forest management practices may 
                include activities that the Secretary determines are 
                necessary--
                            ``(i) to improve water, soil, or air 
                        quality;
                            ``(ii) to restore forest biodiversity;
                            ``(iii) to control invasive species;
                            ``(iv) to improve wildlife habitat; or
                            ``(v) to achieve conservation priorities 
                        identified in an applicable forest resource 
                        assessment and plan.''.
    (c) Practice.--Section 1240A(5) of the Food Security Act of 1985 
(16 U.S.C. 3839aa-1(5)) is amended by inserting ``conservation planning 
practices,'' after ``land management practices,''.
    (d) Custom Feeding Business.--Section 1240A of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-1) is amended--
            (1) by redesignating paragraph (6) as paragraph (7); and
            (2) by inserting after paragraph (5) the following:
            ``(6) Producer.--The term `producer' includes a custom 
        feeding business and a contract grower or finisher.''.
    (e) Structural Practice.--Paragraph (7)(A) of section 1240A of the 
Food Security Act of 1985 (16 U.S.C. 3839aa-1) (as redesignated by 
subsection (d)(1)) is amended by inserting ``firebreak, fuelbreak,'' 
after ``constructed wetland,''.

SEC. 2353. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    (a) Establishment.--Section 1240B(a) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)) is amended--
            (1) in paragraph (1), by striking ``2010'' and inserting 
        ``2012''; and
            (2) in paragraph (2)(B), by inserting ``conservation plan 
        or'' after ``develops a''.
    (b) Practices and Term.--Section 1240B(b) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-2(b)) is amended--
            (1) in paragraph (1), by inserting ``conservation planning 
        practices,'' after ``land management practices,''; and
            (2) in paragraph (2)(B), by striking ``10'' and inserting 
        ``5''.
    (c) Establishment and Administration.--Section 1240B of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-2) is amended--
            (1) by striking subsection (c);
            (2) in subsection (d)--
                    (A) in paragraph (2), by striking subparagraph (A) 
                and inserting the following:
                    ``(A) Socially disadvantaged farmers or ranchers 
                and beginning farmers or ranchers.--
                            ``(i) In general.--In the case of a 
                        producer that is a socially disadvantaged 
                        farmer or rancher or a beginning farmer or 
                        rancher, the Secretary may increase the amount 
                        that would otherwise be provided to the 
                        producer under paragraph (1) to--
                                    ``(I) not more than 90 percent; and
                                    ``(II) not less than 15 percent 
                                above the otherwise applicable rate.
                            ``(ii) Advance payments.--Not more than 30 
                        percent of the amount determined under clause 
                        (i) may be provided in advance for the purpose 
                        of purchasing materials or contracting.'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Other payments.--A producer shall not be eligible for 
        cost-share payments for practices on eligible land under the 
        program if the producer receives cost-share payments or other 
        benefits for the same practice on the same land under another 
        program.''; and
                    (C) by adding at the end the following:
            ``(4) Guaranteed loan eligibility.--Notwithstanding section 
        333(1) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1983(1)), with respect to the cost of a loan, a producer 
        with an application that meets the standards for a cost-share 
        payment under this subsection but that is not approved by the 
        Secretary shall receive priority consideration for a guaranteed 
        loan under section 304 of that Act (7 U.S.C. 1924).'';
            (3) in subsection (e), by striking paragraph (2) and 
        inserting the following:
            ``(2) Special rule.--In determining the amount and rate of 
        incentive payments, the Secretary may accord great significance 
        to a practice that promotes residue, nutrient, air quality, 
        pest, or predator deterrence, including practices to deter 
        predator species protected under the Endangered Species Act of 
        1973 (16 U.S.C. 1531 et seq.), gray wolves, grizzly bears, and 
        black bears.'';
            (4) in subsection (g), by striking ``2007'' and inserting 
        ``2012'';
            (5) by redesignating subsections (d) through (h) as 
        subsections (c) through (g), respectively; and
            (6) by adding at the end the following:
    ``(h) Water Conservation or Irrigation Efficiency Practice.--
            ``(1) In general.--The Secretary may provide technical 
        assistance, cost-share payments, and incentive payments to a 
        producer for a water conservation or irrigation practice.
            ``(2) Priority.--In providing assistance and payments to 
        producers for a water conservation or irrigation practice, the 
        Secretary may give priority to applications in which--
                    ``(A) there is an improvement in surface flows or a 
                reduction in the use of groundwater in the agricultural 
                operation of the producer, consistent with the law of 
                the State in which the operation of the producer is 
                located; 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 
                watershed-wide project that will effectively conserve 
                water, as determined by the Secretary.
    ``(i) Air Quality Improvement Practice.--
            ``(1) In general.--The Secretary shall provide technical 
        and financial assistance to a producer to promote air quality 
        improvements and address air quality concerns associated with 
        agriculture.
            ``(2) Priority.--In providing assistance for improvements 
        in air quality, the Secretary shall give priority to 
        applications that--
                    ``(A) are located in areas--
                            ``(i) that are nonattainment areas with 
                        respect to ambient air quality standards; or
                            ``(ii) in which there is air quality 
                        degradation recognized by a State or local 
                        agency or by the Secretary (in consultation 
                        with the State Technical Committee) to which 
                        agricultural emissions significantly 
                        contribute;
                    ``(B) are the most cost-effective in addressing air 
                quality concerns; and
                    ``(C)(i) reduce emissions and air pollutant 
                precursors from agricultural operations, including 
                through making improvements in mobile or stationary 
                equipment (including engines);
                    ``(ii) would assist producers in meeting Federal, 
                State, or local regulatory requirements relating to air 
                quality;
                    ``(iii) are part of a group of producers 
                implementing eligible conservation activities in a 
                coordinated manner to promote air quality; or
                    ``(iv) reflect innovative approaches and 
                technologies.''.
    (d) Eligibility Requirement.--Section 1240B of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2) (as amended by subsection (c)) is 
amended by adding at the end the following:
    ``(i) Eligibility Requirement.--A producer shall not be eligible to 
receive any payment under this section unless the producer is a farmer 
or rancher that, as determined by the Secretary, derives or expects to 
derive at least $15,000 in gross sales from farming, ranching, or 
forestry operations (not including payments under the conservation 
reserve program established under subchapter B of chapter 1 of subtitle 
D), as determined by the Secretary.''.

SEC. 2354. EVALUATION OF OFFERS AND PAYMENTS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) 
is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) improve conservation practices or systems in place on 
        the operation at the time the contract offer is accepted or to 
        complete a conservation system; and''.

SEC. 2355. DUTIES OF PRODUCERS.

    Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-4(2)) is amended by striking ``farm or ranch'' and inserting 
``farm, ranch, or forest land''.

SEC. 2356. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-5(a)) is amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        or an entity described in section 1244(e) acting on behalf of 
        producers,'' after ``producer'';
            (2) in paragraph (2), by striking ``and'' after the 
        semicolon at the end;
            (3) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(4) in the case of forest land, is consistent with 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.''.

SEC. 2357. LIMITATION ON PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended--
            (1) by striking ``An individual'' and inserting ``(a) In 
        General.--Subject to section 1244(i), an individual''; and
            (2) by adding at the end the following:
    ``(b) Producer Organizations.--In the case of an entity described 
in section 1244(e), the limitation established under this section shall 
apply to each participating producer and not to the entity described in 
section 1244(e).''.

SEC. 2358. CONSERVATION INNOVATION GRANTS.

    Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--The Secretary may pay the cost of competitive 
grants that leverage Federal investment in environmental enhancement 
and protection through the program by--
            ``(1) stimulating the development of innovative 
        technologies; and
            ``(2) transferring those technologies to agricultural and 
        nonindustrial private forest land in production.''; and
            (2) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2)(A) implement innovative conservation technologies, 
        such as market systems for pollution reduction and practices 
        for the storing of carbon in the soil;
            ``(B) provide a mechanism for transferring those 
        technologies to agricultural and nonindustrial private forest 
        land in production; and
            ``(C) increase environmental and resource conservation 
        benefits through specialty crop production; and''.

SEC. 2359. GROUND AND SURFACE WATER CONSERVATION.

    Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9) 
is amended by striking subsection (c) and inserting the following:
    ``(c) Funding.--
            ``(1) Availability of funds.--Of the funds of the Commodity 
        Credit Corporation, in addition to amounts made available under 
        section 1241(a) to carry out this chapter, the Secretary shall 
        use--
                    ``(A) $65,000,000 for each of fiscal years 2008 
                through 2012; and
                    ``(B) $60,000,000 for each fiscal year thereafter.
            ``(2) Funding for certain states.--Of the funds made 
        available under paragraph (1), the Secretary shall--
                    ``(A) provide to each State that received funds 
                under this title during the period of fiscal years 2002 
                through 2007, the greater of--
                            ``(i) the simple average of amounts 
                        allocated to producers in the State under this 
                        section for the period of fiscal years 2002 
                        through 2007; or
                            ``(ii) the amount allocated to producers in 
                        the State under this section in fiscal year 
                        2007; and
                    ``(B) in the case of each State the boundaries of 
                which encompass a multistate aquifer from which 
                documented groundwater withdrawals exceed 
                16,000,000,000 gallons per day, provide an amount not 
                less than the greater of--
                            ``(i) $3,000,000; or
                            ``(ii) the amount provided under 
                        subparagraph (A).
            ``(3) Eastern snake plain aquifer pilot.--
                    ``(A) In general.--Of the funds made available 
                under paragraph (1), the Secretary shall reserve not 
                less than $2,000,000, to remain available until 
                expended, for regional water conservation activities in 
                the Eastern Snake Aquifer region.
                    ``(B) Approval.--The Secretary may approve regional 
                water conservation activities under this paragraph that 
                address, in whole or in part, water quality issues.''.

SEC. 2360. ORGANIC CONVERSION.

    The Food Security Act of 1985 is amended by inserting after section 
1240I (16 U.S.C. 3839aa-9) the following:

``SEC. 1240J. ORGANIC CONVERSION.

    ``(a) Definitions.--In this section:
            ``(1) 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.).
            ``(2) Organic system plan.--The term `organic system plan' 
        means an organic plan approved under the national organic 
        program.
    ``(b) Establishment.--Under the environmental quality incentives 
program established under this chapter, not later than 180 days after 
the date of enactment of this section, the Secretary shall establish a 
program under which the Secretary shall provide cost-share and 
incentive payments to producers to promote conservation practices and 
activities for production systems undergoing conversion on some or all 
of the operations of the producer to organic production in accordance 
with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
    ``(c) Organic Conversion Cost-Share and Incentive Payments.--The 
Secretary shall provide organic conversion cost-share and incentive 
payments to producers that--
            ``(1) are converting to organic production systems, 
        including producers with existing certified organic production 
        for conversion to organic production of land and livestock not 
        previously certified organic; and
            ``(2) enter into contracts with the Secretary for eligible 
        practices and activities described in subsection (d).
    ``(d) Eligible Practices and Activities.--Producers may use funds 
made available under subsection (c) for--
            ``(1) practices and activities during conversion to 
        certified organic production that--
                    ``(A) are required by, or consistent with, an 
                approved organic system plan; and
                    ``(B) protect resources of concern, as identified 
                by the Secretary;
            ``(2) technical services, including the costs of developing 
        an approved organic system plan; and
            ``(3) such other measures as the Secretary determines to be 
        appropriate and consistent with an approved organic system 
        plan.
    ``(e) Eligible Producers.--To be eligible to receive cost-share and 
incentive payments under this section, a producer shall agree--
            ``(1) to develop and carry out conservation and 
        environmental activities that--
                    ``(A) are required by, or consistent with, an 
                approved organic system plan; and
                    ``(B) protect resources of concern, as identified 
                by the Secretary;
            ``(2) to receive technical and educational assistance from 
        the Secretary or from an organization, institute, or consultant 
        with a cooperative agreement with the Secretary relating to--
                    ``(A) the development of an organic system plan and 
                the implementation of conservation practices and 
                activities that are part of an organic system plan; or
                    ``(B) other aspects of an organic system plan, 
                including marketing, credit, business, and risk 
                management plans; and
            ``(3) to submit annual verification by a certifying entity 
        accredited by the Secretary to determine the compliance of the 
        producer with organic certification requirements.
    ``(f) Term.--Notwithstanding section 1240B(b)(2)(A), a contract 
under this section shall have a term of--
            ``(1) not less than 3 years; and
            ``(2) not more than 4 years.
    ``(g) Limitations on Payments.--As part of the payment limitation 
described in section 1240G, an individual or entity may not receive, 
directly or indirectly, cost-share or incentive payments under this 
section--
            ``(1) for a period of more than 4 years; or
            ``(2) that, in the aggregate and exclusive of technical 
        assistance, exceed--
                    ``(A) $20,000 per year; or
                    ``(B) a total amount of $80,000.
    ``(h) Termination of Contracts.--The Secretary may cancel or 
otherwise nullify a contract entered into under this section if the 
Secretary determines the producers are not pursuing organic 
certification.''.

SEC. 2361. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

    The Food Security Act of 1985 is amended by inserting after section 
1240J (as added by section 2360) the following:

``SEC. 1240K. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

    ``(a) Definition of Chesapeake Bay Watershed.--In this section, the 
term `Chesapeake Bay watershed' includes all tributaries, backwaters, 
and side channels (including watersheds) draining into the Chesapeake 
Bay.
    ``(b) Establishment.--The Secretary shall use the authorities 
granted under the environmental quality incentives program established 
under this chapter to address natural resource concerns relating to 
agricultural and nonindustrial private forest land in the Chesapeake 
Bay watershed.
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use $165,000,000 to carry out this section for the 
period of fiscal years 2008 through 2012.''.

                     CHAPTER 3--FARMLAND PROTECTION

               Subchapter A--Farmland Protection Program

SEC. 2371. 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:
            ``(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), by striking clauses (i) 
                and (ii) and inserting the following:
                            ``(i) has prime, unique, or other 
                        productive soil;
                            ``(ii) contains historical or 
                        archaeological resources; or
                            ``(iii) furthers 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;
                            (ii) by striking clause (v) and inserting 
                        the following:
                            ``(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 the 
                        incidental land is determined by the Secretary 
                        to be necessary for the efficient 
                        administration of a conservation easement.''.
    (b) Farmland Protection.--Section 1238I of the Food Security Act of 
1985 (16 U.S.C. 3838i) is amended--
            (1) in subsection (a), by striking ``purchase conservation 
        easements'' and all the follows through the end of the 
        subsection and inserting ``enter into cooperative agreements 
        with eligible entities for the eligible entities to purchase 
        permanent conservation easements or other interests in eligible 
        land for the purpose of protecting the agricultural use and 
        related conservation values of the land by limiting 
        incompatible nonagricultural uses of the land.'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (e) and (f), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Terms and Conditions for Cooperative Agreements.--
            ``(1) In general.--The Secretary shall establish the terms 
        and conditions of any cooperative agreement entered into under 
        this subchapter under which the eligible entity shall use funds 
        provided by the Secretary.
            ``(2) Minimum requirements.--A cooperative agreement shall, 
        at a minimum--
                    ``(A) specify the qualifications of the eligible 
                entity to carry out the responsibilities of the 
                eligible entity under the program, including 
                acquisition and management policies and procedures that 
                ensure the long-term integrity of the conservation 
                easement protections;
                    ``(B) subject to subparagraph (C), identify a 
                specific project or a range of projects funded under 
                the agreement;
                    ``(C) allow, upon mutual agreement of the parties, 
                substitution of qualified projects that are identified 
                at the time of substitution;
                    ``(D) specify the manner in which the eligible 
                entity will evaluate and report the use of funds to the 
                Secretary;
                    ``(E) allow the eligible entity flexibility to use 
                the terms and conditions of the eligible entity for 
                conservation easements and other purchases of interests 
                in land, except that--
                            ``(i) subject to clause (ii), each easement 
                        shall include a limitation on the total 
                        quantity of impervious surface of not more 
                        than--
                                    ``(I) 20 percent of the first 10 
                                acres;
                                    ``(II) 5 percent of the next 90 
                                acres; and
                                    ``(III) 1 percent of any additional 
                                acres; and
                            ``(ii) the Secretary may waive a limitation 
                        under clause (i) after a determination by the 
                        Secretary that the eligible entity has in place 
                        a requirement that provides substantially-
                        similar protection consistent with agricultural 
                        activities regarding the impervious surfaces to 
                        be allowed for any conservation easement or 
                        other interest in land purchases using funds 
                        provided under the program;
                    ``(F) require appraisals of acquired interests in 
                eligible land that comply with, at the option of the 
                eligible entity--
                            ``(i) the Uniform Standards of Professional 
                        Appraisal Practice; or
                            ``(ii) any other industry-approved 
                        standard, as determined by the Secretary; and
                    ``(G) allow as part of the share of the eligible 
                entity of the cost to purchase a conservation easement 
                or other interest in eligible land described in 
                subsection (a), that 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 will be 
                purchased.
    ``(c) Cost Sharing.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary may provide a share of the purchase price of a 
        conservation easement or other interest in land acquired by an 
        eligible entity under the program.
            ``(2) Maximum amount of fair market value.--The Secretary 
        shall not pay more than 50 percent of the appraised fair market 
        value of the acquisition under this subsection.
            ``(3) Minimum share by eligible entity.--The eligible 
        entity shall be required to provide a share of the cost under 
        this subsection in an amount that is not less than the lesser 
        of--
                    ``(A) \1/2\ of the purchase price of the 
                acquisition;
                    ``(B) if the landowner has made a donation of 25 
                percent or less of the appraised fair market value of 
                the acquisition, an amount that, when combined with the 
                donation, equals the amount of the payment by the 
                Secretary; or
                    ``(C) if the landowner has made a donation of more 
                than 25 percent of the appraised fair market value of 
                the acquisition, \1/3\ of the purchase price of the 
                acquisition.
    ``(d) Protection of Federal Investment.--
            ``(1) In general.--The Secretary shall ensure that the 
        terms of an easement acquired by the eligible entity provides 
        protection for the Federal investment through an executory 
        limitation by the Federal Government.
            ``(2) Relationship to federal acquisition of real 
        property.--The inclusion of a Federal executory limitation 
        described in paragraph (1) shall--
                    ``(A) not be considered the Federal acquisition of 
                real property; and
                    ``(B) not trigger any Federal appraisal or other 
                real property requirements, including the Federal 
                standards and procedures for land acquisition.''; and
            (4) in subsection (f) (as redesignated by paragraph (2)), 
        by striking ``Cost Sharing.--'' and all that follows through 
        ``Bidding down.--'' and inserting ``Bidding Down.--''.

                Subchapter B--Grassland Reserve Program

SEC. 2381. GRASSLAND RESERVE PROGRAM.

    Subchapter C of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3838n et seq.) is amended to read as 
follows:

               ``Subchapter C--Grassland Reserve Program

``SEC. 1238N. DEFINITIONS.

    ``In this subchapter:
            ``(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.
            ``(2) Eligible land.--The term `eligible land' means 
        private land that--
                    ``(A) is grassland, rangeland, land that contains 
                forbs, or shrub land (including improved rangeland and 
                pastureland) for which grazing is the predominant use;
                    ``(B) is located in an area that has been 
                historically dominated by grassland, forbs, or shrub 
                land, and the land potentially could provide habitat 
                for animal or plant populations of significant 
                ecological value if the land--
                            ``(i) is retained in the current use of the 
                        land;
                            ``(ii) is restored to a natural condition;
                            ``(iii) contains historical or 
                        archeological resources;
                            ``(iv) would further the goals and 
                        objectives of State, regional, and national 
                        fish, and wildlife conservation plans and 
                        initiatives; or
                            ``(v) is incidental to land described in 
                        clauses (i) through (iv), if the incidental 
                        land is determined by the Secretary to be 
                        necessary for the efficient administration of 
                        an agreement or conservation easement.
            ``(3) Permanent conservation easement.--The term `permanent 
        conservation easement' means a conservation easement that is--
                    ``(A) a permanent easement; or
                    ``(B) in a State that imposes a maximum duration 
                for easements, an easement for the maximum duration 
                allowed under State law.

``SEC. 1238O. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary shall establish and carry out a 
grassland reserve program through which the Secretary shall provide 
payments and technical assistance to landowners to assist in restoring 
and conserving eligible land described in section 1238N(2).
    ``(b) Enrollment of Land.--
            ``(1) In general.--The Secretary may enroll eligible land 
        in the program through--
                    ``(A) an easement or contract described in 
                paragraph (2); or
                    ``(B) a cooperative agreement with an eligible 
                entity.
            ``(2) Options.--Eligible land enrolled in the program shall 
        be subject to--
                    ``(A) a 30-year contract;
                    ``(B) a 30-year conservation easement; or
                    ``(C) a permanent conservation easement.
            ``(3) Enrollment of conservation reserve acreage.--
                    ``(A) In general.--Eligible land enrolled in the 
                conservation reserve program established under 
                subchapter B of chapter 1 may be enrolled into 
                permanent conservation easements under this subchapter 
                if--
                            ``(i) the Secretary determines that the 
                        eligible land--
                                    ``(I) is of high ecological value; 
                                and
                                    ``(II) would be under significant 
                                threat of conversion to other uses if 
                                the conservation reserve program 
                                contract were terminated; and
                            ``(ii) the landowner agrees to the 
                        enrollment.
                    ``(B) Maximum enrollment.--The number of acres of 
                conservation reserve program land enrolled under this 
                paragraph in a calendar year shall not exceed the 
                number of acres that could be funded by 10 percent of 
                the total amount of funds available for this section 
                for a fiscal year.
                    ``(C) Prohibition on duplicate payments.--Eligible 
                land enrolled in the program shall no longer be 
                eligible for payments under the conservation reserve 
                program.
    ``(c) Restoration Agreements.--The Secretary may enter into a 
restoration agreement with a landowner, as determined appropriate by 
the Secretary.
    ``(d) Conservation Easement Title.--The title holder of a 
conservation easement obtained under this subchapter may be--
            ``(1) the Secretary; or
            ``(2) an eligible entity.

``SEC. 1238P. DUTIES.

    ``(a) Duties of Landowners.--
            ``(1) In general.--To become eligible to enroll eligible 
        land through the grant of a conservation easement, the 
        landowner shall--
                    ``(A) create and record an appropriate deed 
                restriction in accordance with applicable State law;
                    ``(B) provide proof of clear title to the 
                underlying fee interest in the eligible land that is 
                subject of the conservation easement;
                    ``(C) provide a written statement of consent to the 
                easement signed by persons holding a security interest 
                or any vested interest in the land;
                    ``(D) grant the conservation easement to the 
                Secretary or an eligible entity; and
                    ``(E) comply with the terms of the conservation 
                easement and any associated restoration agreement.
            ``(2) Restoration agreement.--If a restoration agreement is 
        required by the Secretary, the landowner shall develop and 
        implement a restoration plan.
    ``(b) Duties of Secretary.--
            ``(1) Evaluation of offers.--
                    ``(A) In general.--The Secretary shall establish 
                criteria to evaluate and rank applications for 
                easements and contracts under this subchapter.
                    ``(B) Considerations.--In establishing the 
                criteria, the Secretary shall emphasize support for--
                            ``(i) grazing operations;
                            ``(ii) plant and animal biodiversity;
                            ``(iii) grassland, land that contains 
                        forbs, and shrubland under the greatest threat 
                        of conversion; and
                            ``(iv) other considerations, as determined 
                        by the Secretary.
                    ``(C) Priority.--In evaluating offers under this 
                subchapter, the Secretary may give priority to 
                applications that--
                            ``(i) include a cash contribution from the 
                        eligible entity submitting the application; or
                            ``(ii) leverage resources from other 
                        sources.
            ``(2) Compensation.--
                    ``(A) In general.--
                            ``(i) Easements and contracts.--In return 
                        for the granting of an easement, the Secretary 
                        shall provide to the landowner an amount that 
                        is equal to--
                                    ``(I) in the case of a permanent 
                                easement, the fair market value of the 
                                land less the grazing value of the land 
                                encumbered by the easement; and
                                    ``(II) in the case of a 30-year 
                                easement or 30-year contract, 30 
                                percent of the fair market value of the 
                                land less the grazing value of the land 
                                for the period during which the land is 
                                encumbered by the easement.
                            ``(ii) Restoration agreements.--In making 
                        cost-share payments for restoration agreements, 
                        the Secretary shall make payments to the 
                        landowner--
                                    ``(I) in the case of a permanent 
                                easement, in an amount that is not less 
                                than 90, but not more than 100, percent 
                                of the eligible costs; and
                                    ``(II) in the case of a 30-year 
                                easement or 30-year contract, in an 
                                amount that is not less than 50, but 
                                not more than 75, percent of the 
                                eligible costs.
                    ``(B) Delivery of payments.--
                            ``(i) Payment schedule.--Except as 
                        otherwise provided in this subchapter, payments 
                        may be provided pursuant to an easement, 
                        contract, or other agreement, in not more than 
                        30 annual payments, and in an equal or unequal 
                        amounts, as agreed to by the Secretary and the 
                        landowner.
                            ``(ii) Payments to others.--If an owner 
                        that is entitled to a payment under this 
                        subchapter dies, becomes incompetent, is 
                        otherwise unable to receive the payment, or is 
                        succeeded by another person who renders or 
                        completes the required performance, the 
                        Secretary shall make the payment, in accordance 
                        with regulations promulgated by the Secretary 
                        and without regard to any other provision of 
                        law, in such manner as the Secretary determines 
                        is fair and reasonable after considering all 
                        the circumstances.
            ``(3) Technical assistance.--If a restoration agreement is 
        required by the Secretary, the Secretary shall provide 
        technical assistance to comply with the terms and conditions of 
        the restoration agreement.

``SEC. 1238Q. TERMS AND CONDITIONS.

    ``(a) Terms and Conditions of Easement or Contracts.--An easement 
or contract under this subchapter shall--
            ``(1) 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; and
                    ``(C) fire presuppression, rehabilitation, and 
                construction of fire breaks and fences (including 
                placement of the posts necessary for fences);
            ``(2) 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
                    ``(B) except as permitted under a restoration plan, 
                the conduct of any other activity that would be 
                inconsistent with maintaining grazing land covered by 
                the easement or agreement; and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out or facilitate the 
        administration of this subchapter.
    ``(b) Terms and Conditions of Cooperative Agreements.--
            ``(1) In general.--The Secretary shall establish the terms 
        and conditions of any cooperative agreement entered into under 
        this subchapter under which the eligible entity shall use funds 
        provided by the Secretary.
            ``(2) Minimum requirements.--A cooperative agreement shall, 
        at a minimum--
                    ``(A) specify the qualification of the eligible 
                entity to carry out the responsibilities of the 
                eligible entity under the program, including 
                acquisition, monitoring, enforcement, and management 
                policies and procedures that ensure the long-term 
                integrity of the conservation easement protections;
                    ``(B) subject to subparagraph (C), identify a 
                specific project or a range of projects funded under 
                the agreement;
                    ``(C) allow, upon mutual agreement of the parties, 
                substitution of qualified projects that are identified 
                at the time of substitution;
                    ``(D) specify the manner in which the eligible 
                entity will evaluate and report the use of funds to the 
                Secretary;
                    ``(E) allow the eligible entity flexibility to 
                develop and use terms and conditions for conservation 
                easements and other purchases of interest in eligible 
                land, if the Secretary finds the terms and conditions 
                consistent with the purposes of the program and 
                adequate to achieve and permit effective enforcement of 
                the conservation purposes of the conservation easements 
                or other interests;
                    ``(F) require appraisals of acquired interests in 
                eligible land that comply with a method approved by 
                industry;
                    ``(G) if applicable, allow as part of the share of 
                the eligible entity of the cost to purchase a 
                conservation easement or other interest in eligible 
                land described in section 1238O(b), that 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 for which the conservation easement will be 
                purchased; and
                    ``(H) provide for a schedule of payments to an 
                eligible entity, as agreed to by the Secretary and the 
                eligible entity, over a term of not to exceed 30 years.
            ``(3) Protection of federal investment.--
                    ``(A) In general.--The Secretary shall ensure that 
                the terms of an easement acquired by the eligible 
                entity provides protection for the Federal investment 
                through an executory limitation by the Federal 
                government.
                    ``(B) Relationship to federal acquisition of real 
                property.--The inclusion of an executory limitation 
                described in subparagraph (A) shall--
                            ``(i) not be considered the Federal 
                        acquisition of real property; and
                            ``(ii) not trigger any Federal appraisal or 
                        other real property requirements, including the 
                        Federal standards and procedures for land 
                        acquisition.
                    ``(C) Terms of restoration agreement.--A 
                restoration agreement shall contain--
                            ``(i) a statement of the conservation 
                        measures and practices that will be undertaken 
                        in regard to the eligible land subject to the 
                        conservation easement;
                            ``(ii) restrictions on the use of the 
                        eligible land subject to the conservation 
                        easement; and
                            ``(iii) a statement of the respective 
                        duties of the Secretary, landowner, and 
                        eligible entity, as appropriate.
    ``(c) Violation.--If a violation occurs of the terms or conditions 
of a conservation easement, contract, cooperative agreement or 
restoration agreement entered into under this section--
            ``(1) the conservation easement, contract, cooperative 
        agreement, or restoration agreement shall remain in force; and
            ``(2) the Secretary may require the owner or entity to 
        refund all or part of any payments received by the owner under 
        this subchapter, with interest on the payments as determined 
        appropriate by the Secretary.''.

                 CHAPTER 4--OTHER CONSERVATION PROGRAMS

SEC. 2391. CONSERVATION SECURITY PROGRAM.

    Subchapter A of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 is amended by adding after section 1238C (16 
U.S.C. 3838c) the following:

``SEC. 1238D. PERIOD OF EFFECTIVENESS.

    ``(a) In General.--This subchapter, and the terms and conditions of 
the conservation security program, shall continue to apply to 
conservation security contracts entered into as of the date before the 
date of enactment of this section.
    ``(b) Payments.--The Secretary shall make payments under this 
subchapter with respect to conservation security contracts described in 
subsection (a) during the term of the contracts.
    ``(c) Prohibition on New Contracts.--A conservation security 
contract may not be entered into or renewed under this subchapter as of 
the date of enactment of this section.
    ``(d) Limitation.--A contract described in subsection (a) may not 
be administered under the regulations issued under section 1240Y.''.

SEC. 2392. 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. 2393. REAUTHORIZATION OF WILDLIFE HABITAT INCENTIVE PROGRAM.

    Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb-1) 
is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by striking ``Cost-
                Share'';
                    (B) in paragraph (1), by inserting ``and 
                incentive'' after ``cost-share''; and
                    (C) in paragraph (2)(B), by striking ``15 percent'' 
                and inserting ``25 percent''; and
            (2) by adding at the end the following:
    ``(d) Fish and Wildlife Conservation Plans and Initiatives.--In 
carrying out this section, the Secretary shall give priority to 
projects that would further the goals and objectives of State, 
regional, and national fish and wildlife conservation plans and 
initiatives.
    ``(e) Duration of Program.--Using funds made available under 
section 1241(a)(7), the Secretary shall carry out the program during 
each of fiscal years 2008 through 2012.''.

SEC. 2394. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    Section 1240O of the Food Security Act of 1985 (16 U.S.C. 3839bb-2) 
is amended by striking subsection (b) and inserting the following:
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 2395. 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) In General.--The Secretary, 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, may 
carry out the Great Lakes basin program for soil erosion and sediment 
control (referred to in this section as the `program') to assist in 
implementing the recommendations of the Great Lakes Regional 
Collaboration Strategy to Restore and Protect the Great Lakes.
    ``(b) 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 hydrological conditions in urban 
                watersheds.
    ``(c) 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. 2396. 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. 2397. DISCOVERY WATERSHED DEMONSTRATION 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 adding at the end the 
following:

``SEC. 1240Q. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

    ``(a) Establishment.--The Secretary shall establish and carry out a 
demonstration program in not less than 30 small watersheds in States of 
the Upper Mississippi River basin to identify and promote the most 
cost-effective and efficient approaches to reducing the loss of 
nutrients to surface waters.
    ``(b) Purpose.--The demonstration program shall demonstrate in 
small watersheds performance-based and market-based approaches--
            ``(1) to reduce the loss of nutrients to surface waters 
        from agricultural land; and
            ``(2) to monitor the cost-effectiveness of management 
        practices designed to reduce the loss of nutrients to surface 
        waters from agricultural land.
    ``(c) Partnerships.--In carrying out this section, the Secretary 
may establish or identify, as appropriate, partnerships to select the 
watersheds and to encourage cooperative effort among the Secretary and 
State, local, and nongovernmental organizations.
    ``(d) Selection of Small Watersheds.--In selecting small watersheds 
for participation in the program, the Secretary shall consider the 
extent to which--
            ``(1) reducing nutrient losses to surface water in the 
        small watershed would be likely to result in measurable 
        improvements in water quality in the small watershed;
            ``(2) a demonstration project would use innovative 
        approaches to attract a high level of producer participation in 
        the small watershed to ensure success;
            ``(3) a demonstration project could be implemented through 
        a third party, including a producer organization, farmer 
        cooperative, conservation district, water utility, agency of 
        State or local government, conservation organization, or other 
        organization with appropriate expertise;
            ``(4) a demonstration project would leverage funding from 
        State, local, and private sources;
            ``(5) a demonstration project would demonstrate market-
        based approaches to nutrient losses to surface waters;
            ``(6) baseline data related to water quality and 
        agricultural practices and contributions from nonagricultural 
        sources as relevant in the small watershed has been collected 
        or could be readily collected; and
            ``(7) water quality monitoring infrastructure is in place 
        or could reasonably be put in place in the small watershed.
    ``(e) Use of Funds.--
            ``(1) In general.--Funding provided for the program under 
        subsection (f) shall be used in not less than 30 small 
        watersheds--
                    ``(A) to provide technical assistance;
                    ``(B) to provide and assess financial incentives to 
                agricultural producers implementing conservation 
                practices that reduce nutrient losses to surface 
                waters;
                    ``(C) to monitor the performance and costs of 
                alternative nutrient management techniques, including 
                soil tests, stalk tests, cover crops, soil amendments, 
                buffers, and tillage practices; and
                    ``(D) to share the cost of data collection, 
                monitoring, and analysis.
            ``(2) Prohibition.--None of the funds made available to 
        carry out the program for each fiscal year may be used for 
        administrative expenses.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 2398. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

    (a) In General.--Chapter 5 of subtitle D of the Food Security Act 
of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section 2386) is 
amended by adding at the end the following:

``SEC. 1240R. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

    ``(a) Definition of Eligible Recipient.--In this section, the term 
`eligible recipient' means--
            ``(1) an organization that is eligible for technical 
        assistance and cost-share payments under this section and 
        assists working agricultural land and nonindustrial private 
        forest land, including--
                    ``(A) a community-based association; and
                    ``(B) a city, county, or regional government, 
                including a watershed council and a conservation 
                district; and
            ``(2) an individual who is eligible for technical 
        assistance and cost-share payments under this section, 
        including--
                    ``(A) a producer;
                    ``(B) a rancher;
                    ``(C) an operator;
                    ``(D) a nonindustrial private forest landowner; and
                    ``(E) a landlord on working agricultural land.
    ``(b) Purpose.--The purpose of the emergency landscape restoration 
program is to rehabilitate watersheds, nonindustrial private forest 
land, and working agricultural land adversely affected by natural 
catastrophic events, by--
            ``(1) providing a source of assistance for restoration of 
        the land back to a productive state;
            ``(2) preventing further impairment of land and water, 
        including prevention through the purchase of floodplain 
        easements; and
            ``(3) providing further protection of natural resources.
    ``(c) Establishment.--The Secretary, acting through the Natural 
Resources Conservation Service, shall carry out an emergency landscape 
restoration program under which technical assistance and cost-share 
payments are made available to eligible recipients to carry out 
remedial activities to restore landscapes damaged by--
            ``(1) fire;
            ``(2) drought;
            ``(3) flood;
            ``(4) hurricane force or excessive winds;
            ``(5) ice storms or blizzards; or
            ``(6) other resource-impacting natural events, as 
        determined by the Secretary.
    ``(d) Prioritization.--The Secretary shall provide the highest 
priority for those activities that protect human health and safety.
    ``(e) Technical Assistance and Cost-Share Payments.--
            ``(1) In general.--The Secretary shall provide technical 
        assistance and cost-share payments in amounts of up to 75 
        percent of the cost of remedial activities described in 
        paragraph (2) to rehabilitate watersheds, nonindustrial private 
        forest land, and working agricultural land.
            ``(2) Remedial activities.--Remedial activities that are 
        eligible for technical assistance and cost-share payments under 
        this section include--
                    ``(A) removal of debris from streams, agricultural 
                land, and nonindustrial forest land, including--
                            ``(i) the restoration of natural hydrology; 
                        and
                            ``(ii) the removal of barriers for aquatic 
                        species;;
                    ``(B) restoration of destabilized streambanks;
                    ``(C) establishment of cover on critically eroding 
                land;
                    ``(D) restoration of fences;
                    ``(E) construction of conservation structures;
                    ``(F) provision of water for livestock in drought 
                situations;
                    ``(G) rehabilitation of farm or ranch land;
                    ``(H) restoration of damaged nonindustrial private 
                forest land, including--
                            ``(i) the removal of damaged standing trees 
                        and downed timber; and
                            ``(ii) site preparation, tree planting, 
                        direct seeding, and firebreaks;
                    ``(I) the carrying out of emergency water 
                conservation measures;
                    ``(J) restoration of wildlife habitat and 
                corridors;
                    ``(K) livestock carcass removal and disposal; and
                    ``(L) such other remedial activities as are 
                determined by the Secretary.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section such sums as 
are necessary for each of fiscal years 2008 through 2012, to remain 
available until expended.
    ``(g) Temporary Administration of Emergency Landscape Restoration 
Program.--
            ``(1) In general.--During the period beginning on the date 
        of enactment of this section and ending on the termination date 
        described in paragraph (2), to ensure that technical 
        assistance, cost-share payments, and other payments continue to 
        be administered in an orderly manner until the date on which 
        final regulations are promulgated to implement the emergency 
        landscape restoration program, the Secretary shall, to the 
        extent the terms and conditions of the programs described in 
        clauses (i) and (ii) of subparagraph (A) are consistent with 
        the emergency landscape restoration program, continue to--
                    ``(A) provide technical assistance, cost-share 
                payments, and other payments under the terms and 
                conditions of--
                            ``(i) the emergency conservation program 
                        established under title IV of the Agricultural 
                        Credit Act of 1978 (16 U.S.C. 2201 et seq.); 
                        and
                            ``(ii) the emergency watershed protection 
                        program established under section 403 of the 
                        Agricultural Credit Act of 1978 (16 U.S.C. 
                        2203); and
                    ``(B) use for those purposes--
                            ``(i) any funds made available under those 
                        programs; and
                            ``(ii) as the Secretary determines to be 
                        necessary, any funds made available to carry 
                        out the emergency landscape restoration 
                        program.
            ``(2) Termination of authority.--The authority of the 
        Secretary to carry out paragraph (1) shall terminate on the 
        effective date of final regulations to implement the emergency 
        landscape restoration program.''.
    (b) Conforming Amendments.--
            (1) Effective on the effective date of final regulations to 
        implement the emergency landscape restoration program under 
        section 1240R of the Food Security Act of 1985 (as added by 
        subsection (a)), title IV of the Agricultural Credit Act of 
        1978 (16 U.S.C. 2201 et seq.) is repealed.
            (2) Section 1211(a)(3)(C) of the Food Security Act of 1985 
        (16 U.S.C. 3811(a)(3)(C)) is amended by inserting ``section 
        1240R or'' after ``a payment under''.
            (3) Section 1221(b)(3)(C) of the Food Security Act of 1985 
        (16 U.S.C. 3821(b)(3)(C)) is amended by inserting ``section 
        1240R or'' after ``A payment under''.

SEC. 2399. 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.) (as amended by section 2387(a)) is 
amended by adding at the end the following:

``SEC. 1240S. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    ``(a) In General.--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
                    ``(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)(3) 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.--Nothing in this section preempts 
a State or tribal government law (including any State or tribal 
government liability law).
    ``(e) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.''.

                 Subtitle E--Funding and Administration

SEC. 2401. FUNDING AND ADMINISTRATION.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``2007'' and inserting ``2012''; and
            (2) by striking paragraphs (3) through (7) and inserting 
        the following:
            ``(3) The conservation security program under subchapter A 
        of chapter 2, using $2,317,000,000 to administer contracts 
        entered into as of the day before the date of enactment of the 
        Food and Energy Security Act of 2007, to remain available until 
        expended.
            ``(4) The conservation stewardship program under subchapter 
        B of chapter 6.
            ``(5) The farmland protection program under subchapter B of 
        chapter 2, using, to the maximum extent practicable, 
        $97,000,000 for each of fiscal years 2008 through 2012.
            ``(6) The grassland reserve program under subchapter C of 
        chapter 2, using, to the maximum extent practicable, 
        $240,000,000 for the period of fiscal years 2008 through 2012.
            ``(7) The environmental quality incentives program under 
        chapter 4, using, to the maximum extent practicable--
                    ``(A) $1,270,000,000 for each of fiscal years 2008 
                and 2009; and
                    ``(B) $1,300,000,000 for each of fiscal years 2010 
                through 2012.
            ``(8) The wildlife habitat incentives program under section 
        1240N, using, to the maximum extent practicable, $85,000,000 
        for each of fiscal years 2008 through 2012.
            ``(9) The voluntary public access program under section 
        1240S, using, to the maximum extent practicable, $20,000,000 in 
        each of fiscal years 2008 through 2012.''.

SEC. 2402. REGIONAL EQUITY.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Regional Equity.--
            ``(1) In general.--Before April 1 of each fiscal year, the 
        Secretary shall give priority for funding under the 
        conservation programs under subtitle D and the agricultural 
        management assistance program under section 524(b) of the 
        Federal Crop Insurance Act (7 U.S.C. 1524(b)) (excluding the 
        conservation reserve program under subchapter B of chapter 1 
        and the wetlands reserve program under subchapter C of chapter 
        1) to approved applications in any State that has not received, 
        for the fiscal year, an aggregate amount of at least 
        $15,000,000 for those conservation programs.
    ``(e) Specific Funding Allocations.--In determining the specific 
funding allocations for each State under paragraph (1), the Secretary 
shall consider the respective demand for each program in each State.
    ``(f) Allocations Review and Update.--
            ``(1) Review.--Not later than January 1, 2012, the 
        Secretary shall conduct a review of conservation program 
        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. 2403. CONSERVATION ACCESS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) (as 
amended by section 2402) is amended by adding at the end the following:
    ``(g) Conservation Access.--
            ``(1) Assistance to eligible farmers or ranchers.--
                    ``(A) Definition of eligible farmer or rancher.--In 
                this paragraph, the term `eligible farmer or rancher' 
                means a farmer or rancher that, as determined by the 
                Secretary--
                            ``(i) derives or expects to derive at least 
                        $15,000 in gross sales from agriculture (not 
                        including payments under the conservation 
                        reserve program established under subchapter B 
                        of chapter 1 of subtitle D); and
                            ``(ii) is--
                                    ``(I) a beginning farmer or rancher 
                                (as defined in section 343 of the 
                                Consolidated Farm and Rural Development 
                                Act (7 U.S.C. 1991)), except that in 
                                determining whether the farmer or 
                                rancher qualifies as a beginning farmer 
                                or rancher, the Secretary may--
                                            ``(aa) employ a fair and 
                                        reasonable test of net worth; 
                                        and
                                            ``(bb) use such other 
                                        criteria as the Secretary 
                                        determines to be appropriate; 
                                        or
                                    ``(II) 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)).
                    ``(B) Assistance.--In the case of each program 
                described in subsection (a), except as provided in 
                paragraph (2), for each fiscal year in which funding is 
                made available for the program, 10 percent of the funds 
                available for the fiscal year shall be used by the 
                Secretary to assist eligible farmers or ranchers.
            ``(2) Acreage programs.--In the case of the conservation 
        reserve and wetlands reserve programs, 10 percent of the 
        acreage authorized to be enrolled in any fiscal year shall be 
        used to assist eligible farmers or ranchers.
            ``(3) Repooling.--In any fiscal year, amounts not obligated 
        under this subsection 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 program for which the amounts were 
        originally made available under this title.
            ``(4) Conservation innovation grants.--Funding under 
        paragraph (1) for conservation innovation grants under section 
        1240H may, in addition to purposes described in subsection (b) 
        of that section, be used for--
                    ``(A) technology transfer;
                    ``(B) farmer-to-farmer workshops; and
                    ``(C) demonstrations of innovative conservation 
                practices.
            ``(5) Technical assistance.--The Secretary shall offer, to 
        the maximum extent practicable, higher levels of technical 
        assistance to beginning farmers or ranchers and socially 
        disadvantaged farmers or ranchers than are otherwise made 
        available to producers participating in programs under this 
        title.
            ``(6) Cooperative agreements.--The Secretary may develop 
        and implement cooperative agreements with entities (including 
        government agencies, extension entities, nongovernmental and 
        community-based organizations, and educational institutions) 
        with expertise in addressing the needs of beginning farmers or 
        ranchers and socially disadvantaged farmers or ranchers to 
        provide technical assistance, comprehensive conservation 
        planning education, and sustainable agriculture training.''.

SEC. 2404. DELIVERY OF 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--
            ``(1) an agricultural producer;
            ``(2) an eligible entity;
            ``(3) an eligible landowner; and
            ``(4) an interested organization.
    ``(b) Purpose.--The purpose of technical assistance authorized by 
this title 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 a contract or 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) Certification of Third-Party Providers.--
            ``(1) In general.--The Secretary shall continue to carry 
        out the technical service provider program established under 
        regulations promulgated under subsection (b)(1) (as in 
        existence on the day before the date of enactment of this 
        subsection).
            ``(2) Purpose.--The purpose of the technical service 
        provider program shall be to increase the availability and 
        range of technical expertise available to farmers, ranchers, 
        and eligible landowners to plan and implement conservation 
        measures.
            ``(3) Expertise.--In promulgating regulations to carry out 
        this subsection, the Secretary 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; and
                    ``(B) to the maximum extent practicable--
                            ``(i) provide national criteria for the 
                        certification of technical service providers; 
                        and
                            ``(ii) approve any unique certification 
                        standards established at the State level.
            ``(4) System administration.--
                    ``(A) Funding.--Effective for fiscal year 2008 and 
                each subsequent fiscal year, funds of the Commodity 
                Credit Corporation that are made available to carry out 
                each of the programs specified in section 1241 shall be 
                available for the provision of technical assistance 
                from third-party providers under this section.
                    ``(B) Contract term.--A contract under this section 
                shall have a term that--
                            ``(i) at a minimum, is equal to the 
                        period--
                                    ``(I) beginning on the date on 
                                which the contract is entered into; and
                                    ``(II) ending on the date that is 1 
                                year after the date on which all 
                                activities in the contract have been 
                                completed;
                            ``(ii) does not exceed 3 years; and
                            ``(iii) can be renewed, as determined by 
                        the Secretary.
                    ``(C) Review of certification requirements.--Not 
                later than 1 year after the date of enactment of this 
                subsection, the Secretary shall--
                            ``(i) review certification requirements for 
                        third-party providers; and
                            ``(ii) make any adjustments considered 
                        necessary by the Secretary to improve 
                        participation.
                    ``(D) Eligible activities.--The Secretary may 
                include in activities eligible for payment to a third-
                party provider--
                            ``(i) education and outreach to eligible 
                        participants; and
                            ``(ii) administrative services necessary to 
                        support conservation program implementation.
            ``(5) Payment amounts.--The Secretary shall establish fair 
        and reasonable amounts of payments for technical services 
        provided by third-party providers.
    ``(e) Availability of Technical Services.--
            ``(1) Availability.--
                    ``(A) 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.
                    ``(B) Technical service contracts.--In any case in 
                which financial assistance is not requested or is not 
                provided under subparagraph (A), the Secretary may 
                enter into a technical service contract with the 
                applicable eligible participant for the purposes of 
                assisting in the planning, design, or installation of 
                an eligible practice.
            ``(2) Review of conservation practice standards.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) review conservation practice 
                        standards, including engineering design 
                        specifications, in effect on the date of 
                        enactment of this subsection;
                            ``(ii) 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
                            ``(iii) 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.
                    ``(B) Consultation.--In conducting the assessment 
                under subparagraph (A), the Secretary shall consult 
                with eligible participants, crop consultants, 
                cooperative extension and land grant universities, 
                nongovernmental organizations, and other qualified 
                entities.
                    ``(C) Expedited revision of standards.--If the 
                Secretary determines under subparagraph (A) that 
                revisions to the conservation practice standards, 
                including engineering design specifications, are 
                necessary, the Secretary shall establish an 
                administrative process for expediting the revisions.
            ``(3) Addressing concerns of speciality crop, organic, and 
        precision agriculture producers.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) to the maximum extent practicable, 
                        fully incorporate specialty crop production, 
                        organic crop production, and precision 
                        agriculture into the conservation practice 
                        standards; and
                            ``(ii) 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.
                    ``(B) Availability of adequate technical 
                assistance.--
                            ``(i) In general.--The Secretary shall 
                        ensure that adequate technical assistance is 
                        available for the implementation of 
                        conservation practices by producers involved 
                        with organic or specialty crop production or 
                        precision agriculture through Federal 
                        conservation programs.
                            ``(ii) Requirements.--In carrying out 
                        clause (i), the Secretary shall develop--
                                    ``(I) programs that meet specific 
                                needs of producers involved with 
                                organic or 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. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    (a) Streamlined Application Process.--Section 1244 of the Food 
Security Act of 1985 (16 U.S.C. 3844) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) 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 and Energy 
        Security Act of 2007, the Secretary shall submit to Congress a 
        written notification of completion of the requirements of this 
        subsection.''.
    (b) Administration.--Section 1244 of the Food Security Act of 1985 
(16 U.S.C. 3844) (as amended by subsection (a)) is amended by adding at 
the end the following:
    ``(d) Cooperation Regarding Protection.--In the case of a landowner 
who enrolls land in a conservation program authorized under this title 
that results in a net conservation benefit for a listed, candidate, or 
other species, the Secretary shall cooperate at the request of the 
landowner with the Secretary of the Interior and the Secretary of 
Commerce, as appropriate, to make available to the landowner safe 
harbor or similar assurances and protections under sections 7(b)(4) and 
10(a), as applicable, of the Endangered Species Act of 1973 (16 U.S.C. 
1536(b)(4), 1539(a)).
    ``(e) Eligibility of Producer Organizations.--
            ``(1) In general.--In carrying out a conservation program 
        administered by the Secretary, the Secretary shall accept 
        applications from, and shall provide cost-share and incentive 
        payments and other assistance to, producers who elect to apply 
        through an organization that represents producers and of which 
        producers make up a majority of the governing body, if the 
        Secretary determines that--
                    ``(A) the full objective of the proposed activity, 
                practice, or plan cannot be realized without the 
                participation of all or substantially all of the 
                producers in the affected area; and
                    ``(B) the benefits achieved through the proposed 
                activity, practice, or plan are likely to be greater 
                and to be delivered more cost-effectively if provided 
                through a single organization with related conservation 
                expertise and management experience.
            ``(2) Limitation.--Any applicable payment limitation shall 
        apply to each participating producer and not to the 
        organization described in paragraph (1).
    ``(f) Partnerships and Cooperation.--
            ``(1) In general.--In carrying out each program under 
        subtitle D (excluding the wetlands reserve program and the 
        conservation reserve program), the Secretary, acting through 
        the State Conservationist, shall designate special projects to 
        enhance conservation outcomes by working with multiple 
        producers to address conservation issues, if recommended by the 
        State Conservationist, in consultation with the State technical 
        committee.
            ``(2) Guidelines.--The Secretary shall establish guidelines 
        to be used by States in the designation of special projects 
        under paragraph (1).
            ``(3) Purposes.--The purposes of special projects carried 
        out under this subsection shall be to achieve local, statewide, 
        or regional conservation objectives by--
                    ``(A) encouraging producers to cooperate in the 
                installation and maintenance of conservation practices 
                that affect multiple agricultural operations;
                    ``(B) encouraging producers to cooperate in meeting 
                applicable Federal, State, and local regulatory 
                requirements regarding natural resources and the 
                environment;
                    ``(C) encouraging producers to share information 
                and technical and financial resources;
                    ``(D) facilitating cumulative conservation benefits 
                in geographic areas; and
                    ``(E) promoting the development and demonstration 
                of innovative conservation methods.
            ``(4) Eligible partners.--State and local government 
        entities (including irrigation and water districts and canal 
        companies), Indian tribes, farmer cooperatives, institutions of 
        higher education, nongovernmental organizations, and producer 
        associations shall be eligible to apply under this subsection.
            ``(5) Special project application.--To apply for 
        designation as a special project, partners shall submit an 
        application to the Secretary that includes--
                    ``(A) a description of the geographic area, the 
                current conditions, the conservation objectives to be 
                achieved through the special project, and the expected 
                level of participation by agricultural and 
                nonindustrial private forest landowners;
                    ``(B) a description of the partners collaborating 
                to achieve the project objectives and the roles, 
                responsibilities, and capabilities of the partners;
                    ``(C) a description of the program resources from 1 
                or more programs under subtitle D that are requested 
                from the Secretary, in relevant units, 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 any progress made towards 
                achieving the purposes of the special project; and
                    ``(E) such other information as described in 
                guidelines established by the Secretary under paragraph 
                (2).
            ``(6) Duties of the secretary.--
                    ``(A) In general.--The Secretary shall enter into 
                multiyear agreements with partners to facilitate the 
                delivery of conservation program resources in a manner 
                to achieve the purposes described in paragraph (3).
                    ``(B) Project selection.--
                            ``(i) In general.--The Secretary shall 
                        conduct a competitive process to select 
                        projects funded under this subsection.
                            ``(ii) Factors considered.--In conducting 
                        the process described in clause (i), the 
                        Secretary shall make public the factors to be 
                        considered in evaluating applications.
                            ``(iii) Priority.--The Secretary may give 
                        priority to applications based on--
                                    ``(I) the highest percentage of 
                                producers involved, and the inclusion 
                                of the highest percentage of working 
                                agricultural land in the area;
                                    ``(II) the highest percentage of 
                                on-the-ground conservation to be 
                                implemented;
                                    ``(III) non-Federal resources to be 
                                leveraged;
                                    ``(IV) innovation in conservation 
                                methods and delivery, including 
                                outcome-based performance measures and 
                                methods; and
                                    ``(V) other factors, as determined 
                                by the Secretary.
                    ``(C) Technical and financial assistance.--The 
                Secretary and partners shall provide appropriate 
                technical and financial assistance to producers 
                participating in a special project in an amount 
                determined by the Secretary to be necessary to achieve 
                the purposes described in paragraph (3).
                    ``(D) Administration.--
                            ``(i) In general.--The Secretary shall 
                        ensure that resources made available under this 
                        subsection are delivered in accordance with 
                        applicable program rules relating to basic 
                        program functions, including rules governing 
                        appeals, payment limitations, and conservation 
                        compliance.
                            ``(ii) Flexibility.--The Secretary may 
                        adjust elements of the programs under this 
                        title, as requested by the State 
                        Conservationist, to better reflect unique local 
                        circumstances and purposes, if the Secretary 
                        determines that such adjustments are necessary 
                        to achieve the purposes of this subsection.
                            ``(iii) Additional requirements.--The 
                        Secretary may establish additional requirements 
                        beyond applicable program rules in order to 
                        effectively implement this subsection.
            ``(7) Special rules applicable to regional water 
        enhancement projects.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Eligible partner.--The term `eligible 
                        partner' means--
                                    ``(I) an eligible partner 
                                identified in paragraph (4); and
                                    ``(II) a water or wastewater agency 
                                of a State.
                            ``(ii) Eligible project.--
                                    ``(I) In general.--The term 
                                `eligible project' means a project that 
                                is specifically targeted to improve 
                                water quality or quantity in an area.
                                    ``(II) Inclusions.--The term 
                                `eligible project' includes a project 
                                that involves--
                                            ``(aa) resource condition 
                                        assessment and modeling;
                                            ``(bb) water quality, water 
                                        quantity, or water conservation 
                                        plan development;
                                            ``(cc) management system 
                                        and environmental monitoring 
                                        and evaluation;
                                            ``(dd) cost-share 
                                        restoration or enhancement;
                                            ``(ee) incentive payments 
                                        for land management practices;
                                            ``(ff) easement purchases;
                                            ``(gg) conservation 
                                        contracts with landowners;
                                            ``(hh) improved irrigation 
                                        systems;
                                            ``(ii) water banking and 
                                        other forms of water 
                                        transactions;
                                            ``(jj) groundwater 
                                        recharge;
                                            ``(kk) stormwater capture; 
                                        and
                                            ``(ll) other water-related 
                                        activities that the Secretary 
                                        determines will help to achieve 
                                        the water quality or water 
                                        quantity benefits identified in 
                                        the agreement in subparagraph 
                                        (E).
                    ``(B) Regional water enhancement procedures.--With 
                respect to proposals for eligible projects by eligible 
                partners, the Secretary shall establish specific 
                procedures (to be known collectively as `regional water 
                enhancement procedures') in accordance with this 
                paragraph.
                    ``(C) Means.--Regional water enhancement activities 
                in a particular region shall be carried out through a 
                combination of--
                            ``(i) multiyear agreements between the 
                        Secretary and eligible partners;
                            ``(ii) other regional water enhancement 
                        activities carried out by the Secretary; and
                            ``(iii) regional water enhancement 
                        activities carried out by eligible partners 
                        through other means.
                    ``(D) Multiyear agreements with eligible 
                partners.--
                            ``(i) Solicitation of proposals.--Not later 
                        than 90 days after the date of enactment of 
                        this subsection, the Secretary shall invite 
                        prospective eligible partners to submit 
                        proposals for regional water enhancement 
                        projects.
                            ``(ii) Elements of proposals.--To be 
                        eligible for consideration for participation in 
                        the program, a proposal submitted by an 
                        eligible partner shall include--
                                    ``(I) identification of the exact 
                                geographic area for which the 
                                partnership is proposed, which may be 
                                based on--
                                            ``(aa) a watershed (or 
                                        portion of a watershed);
                                            ``(bb) an irrigation, 
                                        water, or drainage district;
                                            ``(cc) the service area of 
                                        an irrigation water delivery 
                                        entity; or
                                            ``(dd) some other 
                                        geographic area with 
                                        characteristics that make the 
                                        area suitable for landscape-
                                        wide program implementation;
                                    ``(II) identification of the water 
                                quality or water quantity issues that 
                                are of concern in the area;
                                    ``(III) a method for determining a 
                                baseline assessment of water quality, 
                                water quantity, and other related 
                                resource conditions in the region;
                                    ``(IV) a detailed description of 
                                the proposed water quality or water 
                                quantity improvement activities to be 
                                undertaken in the area, including an 
                                estimated timeline and program 
                                resources for every activity; and
                                    ``(V) a description of the 
                                performance measures to be used to 
                                gauge the effectiveness of the water 
                                quality or water quantity improvement 
                                activities.
                            ``(iii) Selection of proposals.--The 
                        Secretary shall award multiyear agreements 
                        competitively, with priority given, as 
                        determined by the Secretary, to selecting 
                        proposals that--
                                    ``(I) have the highest likelihood 
                                of improving the water quality or 
                                quantity issues of concern for the 
                                area;
                                    ``(II) involve multiple 
                                stakeholders and will ensure the 
                                highest level of participation by 
                                producers and landowners in the area 
                                through performance incentives to 
                                encourage adoption of specific 
                                practices in specific locations;
                                    ``(III) will result in the 
                                inclusion of the highest percentage of 
                                working agricultural land in the area;
                                    ``(IV) will result in the highest 
                                percentage of on-the-ground activities 
                                as compared to administrative costs;
                                    ``(V) will provide the greatest 
                                contribution to sustaining or enhancing 
                                agricultural or silvicultural 
                                production in the area; and
                                    ``(VI) include performance measures 
                                that will allow post-activity 
                                conditions to be satisfactorily 
                                measured to gauge overall 
                                effectiveness.
                            ``(iv) Identification of water quality and 
                        water quantity priority areas.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the Secretary shall 
                                identify areas in which protecting or 
                                improving water quality or water 
                                quantity is a priority.
                                    ``(II) Mandatory inclusions.--The 
                                Secretary shall include in any 
                                identification of areas under subclause 
                                (I)--
                                            ``(aa) the Chesapeake Bay;
                                            ``(bb) the Upper 
                                        Mississippi River basin;
                                            ``(cc) the greater 
                                        Everglades ecosystem;
                                            ``(dd) the Klamath River 
                                        basin;
                                            ``(ee) the Sacramento/San 
                                        Joaquin River watershed;
                                            ``(ff) the Mobile River 
                                        basin;
                                            ``(gg) the Puget Sound;
                                            ``(hh) the Ogallala 
                                        Aquifer;
                                            ``(ii) the Illinois River 
                                        watershed (located in the 
                                        States of Arkansas and 
                                        Oklahoma);
                                            ``(jj) the Champlain Basin 
                                        watershed;
                                            ``(kk) the Platte River 
                                        watershed;
                                            ``(ll) the Republican River 
                                        watershed;
                                            ``(mm) the Chattahoochee 
                                        River watershed; and
                                            ``(nn) the Rio Grande 
                                        watershed.
                    ``(E) Agreements.--Not later than 30 days after the 
                date on which the Secretary awards an agreement under 
                subparagraph (D), the Secretary shall enter into an 
                agreement with the eligible partner that, at a minimum, 
                contains--
                            ``(i) a description of the respective 
                        duties and responsibilities of the Secretary 
                        and the eligible partner in carrying out the 
                        activities in the area; and
                            ``(ii) the criteria that the Secretary will 
                        use to evaluate the overall effectiveness of 
                        the regional water enhancement activities 
                        funded by the multiyear agreement in improving 
                        the water quality or quantity conditions of the 
                        region relative to the performance measures in 
                        the proposal.
                    ``(F) Contracts with other parties.--An agreement 
                awarded under subparagraph (D) may provide for the use 
                of third-party providers (including other eligible 
                partners) to undertake specific regional water 
                enhancement activities in a region on a contractual 
                basis with the Secretary or the eligible partner.
                    ``(G) Consultation with other agencies.--With 
                respect to areas in which a Federal or State agency is, 
                or will be, undertaking other water quality or 
                quantity-related activities, the Secretary and the 
                eligible partner may consult with the Federal or State 
                agency in order to--
                            ``(i) coordinate activities;
                            ``(ii) avoid duplication; and
                            ``(iii) ensure that water quality or 
                        quantity improvements attributable to the other 
                        activities are taken into account in the 
                        evaluation of the Secretary under subparagraph 
                        (E)(ii).
                    ``(H) Relationship to other programs.--The 
                Secretary shall ensure that, to the extent that 
                producers and landowners are individually participating 
                in other programs under subtitle D in a region in which 
                a regional water enhancement project is in effect, any 
                improvements to water quality or water quantity 
                attributable to the individual participation are 
                included in the evaluation criteria developed under 
                subparagraph (E)(ii).
                    ``(I) Consistency with state law.--Any water 
                quality or water quantity improvement activity 
                undertaken under this paragraph shall be consistent 
                with State water laws.
            ``(8) Duration.--
                    ``(A) In general.--Multiyear agreements under this 
                subsection shall be for a period not to exceed 5 years.
                    ``(B) Early termination.--The Secretary may 
                terminate a multiyear agreement before the end of the 
                agreement if the Secretary determines that performance 
                measures are not being met.
            ``(9) Funding.--
                    ``(A) Set aside.--
                            ``(i) In general.--Of the funds provided 
                        for each of fiscal years 2008 through 2012 to 
                        carry out the conservation programs in subtitle 
                        D (excluding the conservation reserve program, 
                        the conservation security program, the 
                        conservation stewardship program, and the 
                        wetlands reserve program), the Secretary shall 
                        reserve 10 percent of the funds allocated to 
                        each State for use for activities under this 
                        subsection.
                            ``(ii) Conservation stewardship program.--
                        Of the acres allocated for the conservation 
                        stewardship program for each of fiscal years 
                        2008 through 2012, the Secretary shall reserve 
                        10 percent of acres allocated to each State for 
                        use for activities under this subsection.
                    ``(B) Use of resources.--Of the funds reserved and 
                acres allocated to each State under this subsection in 
                each fiscal year, the Secretary shall--
                            ``(i) allocate not less than 75 percent to 
                        be used by the State Conservationist to carry 
                        out special projects under this subsection 
                        (including regional water enhancement 
                        projects); and
                            ``(ii) use not more than 25 percent for 
                        multistate projects authorized under this 
                        subsection.
                    ``(C) Partners.--Overhead or administrative costs 
                of partners may not be covered by funds provided 
                through this subsection.
                    ``(D) Unused funding.--Any funds made available, 
                and any acres reserved, for a fiscal year under 
                subparagraph (A) that are not obligated or enrolled by 
                April 1 of the fiscal year may be used to carry out 
                other activities under conservation programs under 
                subtitle D during the fiscal year in which the funding 
                becomes available.
    ``(g) Accuracy of Payments.--Immediately after the date of 
enactment of this subsection, the Secretary shall implement policies 
and procedures to ensure proper payment of farm program benefits to 
producers participating in conservation easement programs and correct 
other management deficiencies identified in Report No. 50099-11-SF 
issued by the Department of Agriculture Office of Inspector General in 
August 2007.
    ``(h) Compliance and Performance.--For each conservation program 
under this title, the Secretary shall develop procedures--
            ``(1) to monitor compliance with program requirements by 
        landowners and eligible entities;
            ``(2) to measure program performance;
            ``(3) to demonstrate whether the long-term conservation 
        benefits of the program are being achieved; and
            ``(4) 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).
    ``(i) Direct Attribution of Payments.--In implementing payment 
limitations for any program under this title, the Secretary shall issue 
such regulations as are necessary to ensure that the total amount of 
payments are attributed to an individual by taking into account the 
direct and indirect ownership interests of the individual in an entity 
that is eligible to receive the payments.''.
    (c) Conforming Amendments.--Section 1234 of the Food Security Act 
of 1985 (16 U.S.C. 3834) is amended--
            (1) in subsection (d)(3)(B), by striking ``(f)(4)'' and 
        inserting ``(f)(3)''; and
            (2) in subsection (f)--
                    (A) in paragraph (1)--
                            (i) by striking ``The total'' and inserting 
                        ``Subject to section 1244(i), the total''; and
                            (ii) by striking ``a person'' and inserting 
                        ``an individual'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively.

SEC. 2406. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES MARKETS.

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

``SEC. 1245. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES MARKETS.

    ``(a) Framework.--
            ``(1) In general.--The Secretary shall establish a 
        framework to facilitate the participation of farmers, ranchers, 
        and forest landowners in emerging environmental services 
        markets.
            ``(2) Process.--In carrying out paragraph (1), the 
        Secretary shall use a collaborative process that includes 
        representatives of--
                    ``(A) farm, ranch, and forestry interests;
                    ``(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;
                    ``(E) government agencies of relevant jurisdiction, 
                including--
                            ``(i) the Department of Commerce;
                            ``(ii) the Department of Energy;
                            ``(iii) the Department of the Interior;
                            ``(iv) the Department of Transportation;
                            ``(v) the Environmental Protection Agency; 
                        and
                            ``(vi) the Corps of Engineers; and
                    ``(F) other appropriate interests, as determined by 
                the Secretary.
            ``(3) Requirements.--
                    ``(A) Definition of standard.--In this paragraph, 
                the term `standard' means a technical guideline that 
                outlines accepted, science-based methods to quantify 
                the environmental services benefits from agricultural 
                and forest conservation and land management practices, 
                as determined by the Secretary.
                    ``(B) Framework requirements.--In establishing the 
                framework under paragraph (1), the Secretary shall--
                            ``(i) establish uniform standards;
                            ``(ii) design accounting procedures to 
                        quantify environmental services benefits that 
                        would assist farmers, ranchers, and forest 
                        landowners in using the uniform standards to 
                        establish certifications, as defined in 
                        emerging environmental services markets;
                            ``(iii) establish--
                                    ``(I) a protocol to report 
                                environmental services benefits; and
                                    ``(II) a registry to report and 
                                maintain the benefits for future use in 
                                emerging environmental services 
                                markets; and
                            ``(iv) establish a process to verify that a 
                        farmer, rancher, or forest landowner that 
                        reports and maintains an environmental services 
                        benefit in the registry described in clause 
                        (iii)(II) has implemented the reported 
                        conservation or land management activity.
                    ``(C) Third-party service providers.--In developing 
                the process described in subparagraph (B)(iv), the 
                Secretary shall consider the role of third-party 
                service providers.
            ``(4) Coordination.--The Secretary shall coordinate and 
        leverage activities in existence on the date of enactment of 
        this section in agriculture and forestry relating to emerging 
        environmental services markets.
            ``(5) Priority.--In establishing the framework under this 
        subsection, the Secretary shall give priority to providing 
        assistance to farmers, ranchers, and forest landowners 
        participating in carbon markets.
    ``(b) Authority To Delegate.--The Secretary may delegate any 
responsibility under this section to a relevant agency or office, as 
determined by the Secretary.
    ``(c) Reports to Congress.--
            ``(1) Status of collaborative process.--Not later than 90 
        days after the date of enactment of this section, the Secretary 
        shall provide to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate information on the status of the 
        collaborative process under subsection (a)(2).
            ``(2) Interim report.--Not later than 180 days after the 
        date of enactment of this section, the Secretary shall submit 
        to the committees of Congress described in paragraph (1) an 
        interim report that--
                    ``(A) describes the adequacy of existing research 
                and methods to quantify environmental services 
                benefits;
                    ``(B) proposes methods--
                            ``(i) to establish technical guidelines, 
                        accounting procedures, and reporting protocols; 
                        and
                            ``(ii) to structure the registry; and
                    ``(C) includes recommendations for actions to 
                remove barriers for farmers, ranchers, and forest 
                landowners to participation, reporting, registration, 
                and verification relating to environmental services 
                markets.
            ``(3) Final report.--Not later than 18 months after the 
        date of enactment of this section, the Secretary shall submit 
        to the committees of Congress described in paragraph (1) a 
        report that describes--
                    ``(A) the progress of the Secretary in meeting the 
                requirements described in subsection (a)(3)(B);
                    ``(B) the rates of participation of farmers, 
                ranchers, and forest landowners in emerging 
                environmental services markets; and
                    ``(C) any recommendations of the Secretary relating 
                to reauthorization of this section.
    ``(d) Funding.--There are authorized to be appropriated to the 
Secretary to carry out this section such sums as are necessary for each 
of fiscal years 2008 through 2012.''.

                 Subtitle F--State Technical Committees

SEC. 2501. STATE TECHNICAL COMMITTEES.

    (a) Standards.--Section 1261 of the Food Security Act of 1985 (16 
U.S.C. 3861(c)) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Standards.--Not later than 180 days after the date of 
enactment of the Food and Energy Security Act of 2007, the Secretary 
shall develop--
            ``(1) standard operating procedures to standardize the 
        operations of State technical committees; and
            ``(2) standards to be used by the State technical 
        committees in the development of technical guidelines under 
        section 1262(b) for the implementation of the conservation 
        provisions of this title.''.
    (b) Composition.--Section 1261(c) of the Food Security Act of 1985 
(16 U.S.C. 3861(c)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) the Natural Resources Conservation Service;
            ``(2) the Farm Service Agency;'';
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Rural Development agencies;'';
            (3) in paragraph (11), by striking ``and'' at the end;
            (4) in paragraph (12), by striking the period at the end 
        and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(13) nonindustrial private forest land owners.''.
    (c) FACA Requirements.--Section 1262(e) of the Food Security Act of 
1985 (16 U.S.C. 3862(e)) is amended--
            (1) by striking ``The committees'' and inserting the 
        following:
            ``(1) In general.--The committees''; and
            (2) by adding at the end the following:
            ``(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.''.

                     Subtitle G--Other Authorities

SEC. 2601. AGRICULTURAL MANAGEMENT ASSISTANCE.

    Section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)) 
is amended--
            (1) in paragraph (1), by inserting ``Idaho'' after 
        ``Delaware''; and
            (2) in paragraph (4)(B), by striking ``2007'' each place it 
        appears and inserting ``2012''.

SEC. 2602. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    The Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6901 et seq.) is amended by adding at the end the following:

``SEC. 307. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--Notwithstanding any other provision of 
        law relating to Federal grants, cooperative agreements, or 
        contracts, there is established in the Department the 
        agriculture conservation experienced services program (referred 
        to in this section as the `ACE program').
            ``(2) Authorization.--Under the ACE program, the Secretary 
        may offer to enter into agreements with nonprofit private 
        agencies and organizations eligible to receive grants for the 
        applicable fiscal year under title V of the Older Americans Act 
        of 1965 (42 U.S.C. 3056 et seq.) to use the talents of 
        individuals who are age 55 or older, to provide conservation 
        technical assistance in support of the administration of 
        conservation-related programs and authorities administered by 
        the Secretary.
            ``(3) Funding.--Agreements described in paragraph (2) may 
        be carried out using funds made available to carry out--
                    ``(A) the environmental quality incentives program 
                of the comprehensive stewardship incentives program 
                established under subchapter A of chapter 6 of subtitle 
                D of title XII of the Food Security Act of 1985;
                    ``(B) the Soil Conservation and Domestic Allotment 
                Act (16 U.S.C. 590a et seq.); or
                    ``(C) title V of the Older Americans Act of 1965 
                (42 U.S.C. 3056).
    ``(b) Determination.--Prior to entering into an agreement described 
in subsection (a)(2), the Secretary shall determine that the agreement 
would not--
            ``(1) result in the displacement of individuals employed by 
        the Department, including partial displacement through 
        reduction of nonovertime hours, wages, or employment benefits;
            ``(2) result in the use of an individual covered by this 
        section 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
            ``(3) affect existing contracts for services.
    ``(c) Technical Assistance.--The Secretary may make available to 
individuals providing technical assistance under an agreement 
authorized by this section appropriate conservation technical tools, 
including the use of agency vehicles necessary to carry out technical 
assistance in support of the conservation-related programs affected by 
the ACE program.''.

SEC. 2603. TECHNICAL ASSISTANCE.

    (a) Soil Conservation and Domestic Allotment Act.--
            (1) Prevention of soil erosion.--
                    (A) In general.--The first section of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590a) is amended--
                            (i) by striking ``That it'' and inserting 
                        the following:

``SECTION 1. PURPOSE.

    ``It''; and
                            (ii) 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,''.
                    (B) 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''.
            (2) Definitions.--Section 10 of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590j) is amended to read as 
        follows:

``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.''.
    (b) Soil and Water Resources Conservation Act of 1977.--
            (1) Congressional findings.--Section 2 of the Soil and 
        Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is 
        amended--
                    (A) in paragraph (2), by striking ``base, of the'' 
                and inserting ``base of the''; and
                    (B) 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 
        conservation programs are basic to effective soil, water, and 
        related natural resource conservation.
            ``(4) Since individual''.
            (2) 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--
                    (A) in subsection (a)--
                            (i) in paragraph (5), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (6), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(7) data on conservation plans, conservation practices 
        planned or implemented, environmental outcomes, economic costs, 
        and related matters under conservation programs administered by 
        the Secretary.'';
                    (B) by redesignating subsection (d) as subsection 
                (e);
                    (C) by inserting after subsection (c) the 
                following:
    ``(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
                    (D) in subsection (e) (as redesignated by 
                subparagraph (B)), by striking ``December 31, 1979'' 
                and all that follows through ``December 31, 2005'' and 
                inserting ``December 31, 2010, December 31, 2015, 
                December 31, 2020, and December 31, 2025''.
            (3) Soil and water conservation program.--Section 6 of the 
        Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 
        2005) is amended--
                    (A) by redesignating subsection (b) as subsection 
                (d);
                    (B) by inserting after subsection (a) the 
                following:
    ``(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
                    (C) in subsection (d) (as redesignated by 
                subparagraph (A)), by striking ``December 31, 1979'' 
                and all that follows through ``December 31, 2007'' and 
                inserting ``December 31, 2011, December 31, 2016, 
                December 31, 2021, and December 31, 2026''.
            (4) 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, 2016, 2021, and 2026, the President shall transmit to 
the Speaker of the House of Representatives and the President of the 
Senate the appraisal developed under section 5 and completed prior to 
the end of the previous year.
    ``(b) Program and Statement of Policy.--Not later than the date on 
which Congress convenes in 2012, 2017, 2022, and 2027, the President 
shall transmit to the Speaker of the House of Representatives and the 
President of the Senate--
            ``(1) the initial program or updated program developed 
        under section 6 and completed prior to 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 Speaker of the House of Representatives and the President 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).''.
            (5) 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 ``2028''.

SEC. 2604. SMALL WATERSHED REHABILITATION PROGRAM.

    Section 14 of the Watershed Protection and Flood Prevention Act (16 
U.S.C. 1012) is amended by striking subsection (h) and inserting the 
following:
    ``(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 2008 through 2012.''.

SEC. 2605. 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 ``(8) Planning process'' and 
                inserting ``(8) 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:
                    ``(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 redesignating paragraphs (1) through (4) as clauses 
        (i) through (iv), respectively, and indenting appropriately;
            (2) by striking ``In carrying'' and inserting the 
        following:
            ``(1) In general.--In carrying''; and
            (3) by adding at the end the following:
    ``(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.
            ``(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. 2606. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

    (a) Advisory Functions.--Section 353 of the Federal Agriculture 
Improvement and Reform Act of 1996 (16 U.S.C. 5802) is amended--
            (1) in subsection (b)(3), by striking ``agencies'' and 
        inserting ``agencies, individuals,''; and
            (2) by adding at the end the following:
    ``(d) Advisory Functions.--Notwithstanding the requirements of the 
Federal Advisory Committee Act (5 U.S.C. App.), the Foundation may 
provide advice and recommendations to the Secretary.''.
    (b) Gifts, Devises, and Bequests of Personal Property.--Section 354 
of the Federal Agriculture Improvement and Reform Act of 1996 (16 
U.S.C. 5803) is amended by adding at the end the following:
    ``(h) Gifts, Devises, and Bequests of Personal Property.--
            ``(1) In general.--Prior to the appointment and initial 
        meeting of the members of the Board and after the initial 
        meeting of the Board, the Secretary may, on behalf of the 
        Foundation--
                    ``(A) accept, receive, and hold nonmonetary gifts, 
                devises, or bequests of personal property; and
                    ``(B) accept and receive monetary gifts, devises, 
                or bequests.
            ``(2) Held in trust.--Gifts, devises, or bequests of 
        monetary and nonmonetary personal property shall--
                    ``(A) be held in trust for the Foundation; and
                    ``(B) shall not be--
                            ``(i) considered gifts to the United 
                        States; or
                            ``(ii) used for the benefit of the United 
                        States.
            ``(3) Treasury account.--The Secretary shall deposit 
        monetary gifts, devises, and bequests to the Foundation in a 
        special interest-bearing account in the Treasury of the United 
        States.
            ``(4) Initial gifts, devises, and bequests.--
                    ``(A) In general.--The Secretary may use initial 
                gifts, devises, or bequests received prior to the first 
                meeting of the Board for any necessary expenses and 
                activities related to the first meeting of the Board.
                    ``(B) Transfer.--Except with respect to any amounts 
                expended under subparagraph (A), the Secretary shall, 
                at the first meeting of the Board, transfer to the 
                Foundation all gifts, devises, or bequests received 
                prior to the first meeting of the Board.''.
    (c) Officers and Employees.--Section 355(b)(1) of the Federal 
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 5804(b)(1)) 
is amended--
            (1) by striking ``Foundation--'' and all that follows 
        through ``shall not,'' in subparagraph (A) and inserting 
        ``Foundation shall not'';
            (2) by striking ``employee; and'' and inserting 
        ``employee.''; and
            (3) by striking subparagraph (B).
    (d) Contracts and Agreements.--Section 356 of the Federal 
Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5805) is 
amended--
            (1) in subsection (c)(7), by striking ``State or local'' 
        and inserting ``Federal, State, or local''; and
            (2) in subsection (d)(2)--
                    (A) by striking ``A gift'' and inserting the 
                following:
                    ``(A) In general.--A gift''; and
                    (B) by adding at the end the following:
                    ``(B) Tax status.--A gift, devise, or bequest to 
                the Foundation shall be treated as a gift, devise, or 
                bequest to an organization exempt from taxation under 
                section 501(c)(3) of the Internal Revenue Code of 
                1986.''.
    (e) Administrative Services and Support.--Section 356 of the 
Federal Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5806) is 
amended by striking ``1996 through 1998'' and inserting ``2008 through 
2012.''.

SEC. 2607. 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), by striking ``, as soon as 
        practicable after the date of enactment of this Act,'' and 
        inserting the following: ``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 and 
        Energy Security Act of 2007,''; and
            (2) by striking subsection (b) and inserting the following:
    ``(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).''.

SEC. 2607A. 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), by striking ``, as soon as 
        practicable after the date of enactment of this Act,'' and 
        inserting the following: ``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 and 
        Energy Security Act of 2007,''; and
            (2) by striking subsection (b) and inserting the following:
    ``(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).''.

SEC. 2608. CROP INSURANCE INELIGIBILITY RELATING TO 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 Insurance Ineligibility Relating to 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 used for production of an 
                agricultural commodity.
            ``(2) Ineligibility.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), native sod acreage on which an 
                agricultural commodity is planted for which a policy or 
                plan of insurance is available under this title shall 
                be ineligible for benefits under this Act.
                    ``(B) De minimis acreage exemption.--The Secretary 
                shall exempt areas of 5 acres or less from subparagraph 
                (A).''.
    (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 used for 
                        production of an agricultural commodity.
                    ``(B) Ineligibility.--Except as provided in 
                subparagraph (C), native sod acreage on which an 
                agricultural commodity is planted for which a policy or 
                plan of Federal crop insurance is available shall be 
                ineligible for benefits under this section.
                    ``(C) De minimis acreage exemption.--The Secretary 
                shall exempt areas of 5 acres or less from subparagraph 
                (B).''.
    (c) Cropland Report.--
            (1) Baseline.--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 that describes the cropland acreage in each 
        county and State, and the change in cropland acreage from the 
        preceding year in each county and State, beginning with 
        calendar year 1995 and including that information for the most 
        recent year for which that information is available.
            (2) Annual updates.--Not later than January 1, 2008, and 
        each January 1 thereafter through January 1, 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 that describes--
                    (A) the cropland acreage in each county and State 
                as of the date of submission of the report; and
                    (B) the change in cropland acreage from the 
                preceding year in each county and State.

SEC. 2609. 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.

SEC. 2610. 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:
            ``(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.''.

SEC. 2611. 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:
            ``(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)''.
            (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:
    ``(f) Upfront 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 upfront 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. 2612. TECHNICAL CORRECTIONS TO THE FEDERAL INSECTICIDE, FUNGICIDE, 
              AND RODENTICIDE ACT.

    (a) Pesticide Registration Service Fees.--Section 33 of the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-8) is 
amended--
            (1) in subsection (b)(7)--
                    (A) in subparagraph (D)--
                            (i) by striking clause (i) and inserting 
                        the following:
                            ``(i) In general.--The Administrator may 
                        exempt from, or waive a portion of, the 
                        registration service fee for an application for 
                        minor uses for a pesticide.''; and
                            (ii) in clause (ii), by inserting ``or 
                        exemption'' after ``waiver''; and
                    (B) in subparagraph (E)--
                            (i) in the paragraph heading, by striking 
                        ``Waiver'' and inserting ``Exemption'';
                            (ii) by striking ``waive the registration 
                        service fee for an application'' and inserting 
                        ``exempt an application from the registration 
                        service fee''; and
                            (iii) in clause (ii), by striking 
                        ``waiver'' and inserting ``exemption''; and
            (2) in subsection (m)(2), by striking ``2008'' each place 
        it appears and inserting ``2012''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on October 1, 2007.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

SEC. 3001. SHORT TITLE.

    (a) In General.--Section 1 of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1691 note; 104 Stat. 3633) is 
amended by striking ``Agricultural Trade Development and Assistance Act 
of 1954'' and inserting ``Food for Peace Act''.
    (b) Conforming Amendments.--
            (1) In general.--Each provision of law described in 
        paragraph (2) is amended--
                    (A) by striking ``Agricultural Trade Development 
                and Assistance Act of 1954'' each place it appears and 
                inserting ``Food for Peace Act''; and
                    (B) in each section heading, by striking 
                ``agricultural trade development and assistance act of 
                1954'' each place it appears and inserting ``food for 
                peace act''.
            (2) Provisions of law.--The provisions of law referred to 
        in paragraph (1) are the following:
                    (A) The Agriculture and Food Act of 1981 (Public 
                Law 97-98; 95 Stat. 1213).
                    (B) The Agricultural Act of 1949 (7 U.S.C. 1421 et 
                seq.).
                    (C) Section 9(a) of the Military Construction 
                Codification Act (7 U.S.C. 1704c).
                    (D) Section 201 of the Africa: Seeds of Hope Act of 
                1998 (7 U.S.C. 1721 note; Public Law 105-385).
                    (E) The Bill Emerson Humanitarian Trust Act (7 
                U.S.C. 1736f-1 et seq.).
                    (F) The Food for Progress Act of 1985 (7 U.S.C. 
                1736o).
                    (G) Section 3107 of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 1736o-1).
                    (H) Sections 605B and 606C of the Act of August 28, 
                1954 (commonly known as the ``Agricultural Act of 
                1954'') (7 U.S.C. 1765b, 1766b).
                    (I) Section 206 of the Agricultural Act of 1956 (7 
                U.S.C. 1856).
                    (J) The Agricultural Competitiveness and Trade Act 
                of 1988 (7 U.S.C. 5201 et seq.).
                    (K) The Agricultural Trade Act of 1978 (7 U.S.C. 
                5601 et seq.).
                    (L) The Export-Import Bank Act of 1945 (12 U.S.C. 
                635 et seq.).
                    (M) Section 301 of title 13, United States Code.
                    (N) Section 8 of the Endangered Species Act of 1973 
                (16 U.S.C. 1537).
                    (O) Section 604 of the Enterprise for the Americas 
                Act of 1992 (22 U.S.C. 2077).
                    (P) Section 5 of the International Health Research 
                Act of 1960 (22 U.S.C. 2103).
                    (Q) The Foreign Assistance Act of 1961 (22 U.S.C. 
                2151 et seq.).
                    (R) The Horn of Africa Recovery and Food Security 
                Act (22 U.S.C. 2151 note; Public Law 102-274).
                    (S) Section 105 of the Mutual Educational and 
                Cultural Exchange Act of 1961 (22 U.S.C. 2455).
                    (T) Section 35 of the Foreign Military Sales Act 
                (22 U.S.C. 2775).
                    (U) The Support for East European Democracy (SEED) 
                Act of 1989 (22 U.S.C. 5401 et seq.).
                    (V) Section 1707 of the Cuban Democracy Act of 1992 
                (22 U.S.C. 6006).
                    (W) The Cuban Liberty and Democratic Solidarity 
                (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.).
                    (X) Section 902 of the Trade Sanctions Reform and 
                Export Enhancement Act of 2000 (22 U.S.C. 7201).
                    (Y) Chapter 553 of title 46, United State Code.
                    (Z) Section 4 of the Strategic and Critical 
                Materials Stock Piling Act (50 U.S.C. 98c).
                    (AA) The Food, Agriculture, Conservation, and Trade 
                Act of 1990 (Public Law 101-624; 104 Stat. 3359).
                    (BB) Section 738 of the Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Agencies Appropriations Act, 2001 (Public Law 106-387; 
                114 Stat 1549A-34).
    (c) References.--Any reference in any Federal, State, tribal, or 
local law (including regulations) to the ``Agricultural Trade 
Development and Assistance Act of 1954'' shall be considered to be a 
reference to the ``Food for Peace Act''.

SEC. 3002. UNITED STATES POLICY.

    Section 2 of the Food for Peace Act (7 U.S.C. 1691) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

    Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b)) is 
amended by striking ``(b)'' and all that follows through paragraph (1) 
and inserting the following:
    ``(b) Sense of Congress.--It is the sense of Congress that--
            ``(1) in negotiations with other countries at the Food Aid 
        Convention, the World Trade Organization, the United Nations 
        Food and Agriculture Organization, and other appropriate 
        venues, the President shall--
                    ``(A) seek commitments of higher levels of food aid 
                by donors in order to meet the legitimate needs of 
                developing countries;
                    ``(B) ensure, to the maximum extent practicable, 
                that humanitarian nongovernmental organizations, 
                recipient country governments, charitable bodies, and 
                international organizations shall continue--
                            ``(i) to be eligible to receive resources 
                        based on assessments of need conducted by those 
                        organizations and entities; and
                            ``(ii) to implement food aid programs in 
                        agreements with donor countries; and
                    ``(C) ensure, to the maximum extent practicable, 
                that options for providing food aid for emergency and 
                nonemergency, or chronic, needs shall not be subject to 
                limitation, including in-kind commodities, provision of 
                funds for commodity procurement, and monetization of 
                commodities, on the condition that the provision of 
                those commodities or funds--
                            ``(i) is based on assessments of need and 
                        intended to benefit the food security of or 
                        otherwise assist recipients, and
                            ``(ii) is provided in a manner that avoids 
                        disincentives to local agricultural production 
                        and marketing and with minimal potential for 
                        disruption of commercial markets; and''.

SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

    (a) Title I of the Food for Peace Act (7 U.S.C. 1701 et seq.) is 
amended in the title heading, by striking ``TRADE AND DEVELOPMENT 
ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE AND FOOD SECURITY''.
    (b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) is 
amended in the section heading, by striking ``trade and development 
assistance'' and inserting ``economic assistance and food security''.

SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE 
              ENTITIES.

    Section 102 of the Food for Peace Act (7 U.S.C. 1702) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively; and
            (2) by striking subsection (c).

SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

    Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c)) is 
amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        through agreements with recipient governments, private 
        voluntary organizations, and cooperatives,'' after ``developing 
        country'';
            (2) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) the improvement of the trade capacity of the 
                recipient country.'';
            (3) by striking paragraphs (1), (3), (4), (5), and (6); and
            (4) by redesignating paragraphs (2), (7), (8), and (9) as 
        paragraphs (1), (2), (3), and (4), respectively.

SEC. 3007. GENERAL AUTHORITY.

    Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) address famine and respond to emergency food needs 
        arising from man-made and natural disasters;'';
            (2) in paragraph (5), by inserting ``food security and 
        support'' after ``promote''; and
            (3) by striking paragraph (6) and inserting the following:
            ``(6) protect livelihoods, provide safety nets for food 
        insecure populations, and encourage participation in 
        educational, training, and other productive activities.''.

SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202 of the Food for Peace Act (7 U.S.C. 1722) is amended--
            (1) in subsection (b)(2), by striking ``may not deny a 
        request for funds'' and inserting ``may not use as a sole 
        rationale for denying a request for funds'';
            (2) in subsection (e)(1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``Of the funds made 
                        available in'' and inserting ``Of the total 
                        amount of funds made available from all sources 
                        for''; and
                            (ii) by striking ``not less than 5 percent 
                        nor more than 10 percent'' and inserting ``not 
                        less than 7.5 percent'';
                    (B) in subparagraph (A), by striking ``and'' at the 
                end;
                    (C) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) meeting specific administrative, management, 
                personnel, programmatic, and operational activities, 
                and internal transportation and distribution costs for 
                carrying out new and existing programs in foreign 
                countries under this title; and''
                    (D) by adding at the end the following:
                    ``(C) improving and implementing methodologies for 
                food aid programs, including needs assessments, 
                monitoring, and evaluation.''; and
            (3) by striking subsection (h) and inserting the following:
    ``(h) Food Aid Quality.--
            ``(1) In general.--The Administrator shall use funds made 
        available for fiscal year 2008 and subsequent fiscal years to 
        carry out this title--
                    ``(A) to assess the types and quality of 
                agricultural commodities and products donated for food 
                aid;
                    ``(B) to adjust products and formulations as 
                necessary to cost-effectively meet nutrient needs of 
                target populations; and
                    ``(C) to pretest prototypes.
            ``(2) Administration.--The Administrator--
                    ``(A) shall carry out this subsection in 
                consultation with and through an independent entity 
                with proven impartial expertise in food aid commodity 
                quality enhancements;
                    ``(B) may enter into contracts to obtain the 
                services of such an entity; and
                    ``(C) shall consult with the Food Aid Consultative 
                Group on how to carry out this subsection.
            ``(3) Reports.--The Administrator shall submit to the 
        Committees on Agriculture and Foreign Affairs of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate--
                    ``(A) a report that describes the activities of the 
                Administrator in carrying out paragraph (1) for fiscal 
                year 2008; and
                    ``(B) an annual report that describes the progress 
                of the Administrator in addressing food aid quality 
                issues.''.

SEC. 3009. MICROENTERPRISE ACTIVITIES.

    Section 203(d)(2) of the Food for Peace Act (7 U.S.C.1723(d)(2)) is 
amended by inserting ``, including activities involving microenterprise 
and village banking,'' after ``other developmental activities''.

SEC. 3010. LEVELS OF ASSISTANCE.

    Section 204(a)(1) of the Food for Peace Act (7 U.S.C. 1724(a)(1)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 3011. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting at the end the following:
            ``(7) representatives from the maritime transportation 
        sector involved in transporting agricultural commodities 
        overseas for programs under this Act.'';
            (2) in subsection (d)--
                    (A) by striking ``In preparing'' and inserting the 
                following:
            ``(1) In general.--In preparing'';
                    (B) by striking ``The Administrator'' and inserting 
                the following:
            ``(2) Biannual consultation.--The Administrator''; and
                    (C) by adding at the end the following:
            ``(3) Consultation for draft regulations.--In addition to 
        the meetings required under paragraph (2), the Administrator 
        shall consult and meet with the Group--
                    ``(A) before issuing the draft regulations to carry 
                out the program described in section 209; and
                    ``(B) during the public comment period relating to 
                those draft regulations.''; and
            (3) in subsection (f), by striking ``2007'' and inserting 
        ``2012''.

SEC. 3012. ADMINISTRATION.

    Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is amended--
            (1) in subsection (a)(3), by striking ``must be met for the 
        approval of such proposal'' and inserting ``should be 
        considered for a proposal in a future fiscal year'';
            (2) in subsection (c), by striking paragraph (3);
            (3) by striking subsection (d) and inserting the following:
    ``(d) Timely Provision of Commodities.--The Administrator, in 
consultation with the Secretary, shall develop procedures that ensure 
expedited processing of commodity call forwards in order to provide 
commodities overseas in a timely manner and to the extent feasible, 
according to planned delivery schedules.'';
            (4) in subsection (e)(2), by striking ``December 1'' and 
        inserting ``June 1''; and
            (5) by adding at the end the following:
    ``(f) Program Oversight.--
            ``(1) In general.--Funds made available to carry out this 
        title may be used to pay the expenses of the United States 
        Agency for International Development associated with program 
        monitoring, evaluation, assessments, food aid data collection, 
        and food aid information management and commodity reporting 
        systems.
            ``(2) Contract authority.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C) and notwithstanding any other provision of law, in 
                carrying out administrative and management activities 
                related to the implementation of programs under this 
                title, the Administrator may contract with 1 or more 
                individuals for personal service to be performed in 
                recipient countries or neighboring countries.
                    ``(B) Prohibition.--Individuals contracting with 
                the Administrator under subparagraph (A) shall not be 
                considered to be employees of the United States 
                Government for the purpose of any law administered by 
                the Office of Personnel Management.
                    ``(C) Personal service.--Subparagraph (A) does not 
                limit the ability of the Administrator to contract with 
                individuals for personal service under section 202(a).
    ``(g) Indirect Support Costs to the World Food Program of the 
United Nations.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, in providing assistance under this title, the 
        Administrator may make contributions to the World Food Program 
        of the United Nations to the extent that the contributions are 
        made in accordance with the rules and regulations of that 
        program for indirect cost rates.
            ``(2) Report.--The Administrator shall submit the 
        Committees on Agriculture and Foreign Affairs of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate an annual report on the level of the 
        contribution and the reasons for the level.
    ``(h) Indirect Support Costs to Cooperating Sponsors.--
Notwithstanding any other provision of law, the Administrator may pay 
to a private voluntary organization or cooperative indirect costs 
associated with any funds received or generated for programs, costs, or 
activities under this title, on the condition that the indirect costs 
are consistent with Office of Management and Budget cost principles.
    ``(i) Project Reporting.--
            ``(1) In general.--In submitting project reports to the 
        Administrator, a private voluntary organization or cooperative 
        shall provide a copy of the report in such form as is necessary 
        for the report to be displayed for public use on the website of 
        the United States Agency for International Development.
            ``(2) Confidential information.--An organization or 
        cooperative described in paragraph (1) may omit any 
        confidential information from the copy of the report submitted 
        for public display under that paragraph.''.

SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
              DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED 
              FOODS.

    Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is 
amended--
            (1) by striking ``$3,000,000'' and inserting 
        ``$8,000,000''; and
            (2) by striking ``2007'' and inserting ``2012''.

SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 et seq.) is amended by adding at the end the following:

``SEC. 136. PILOT PROGRAM FOR LOCAL PURCHASE OF ELIGIBLE COMMODITIES.

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Agency for International Development.
            ``(2) Eligible commodity.--The term `eligible commodity' 
        means an agricultural commodity, or the product of an 
        agricultural commodity, that is produced in--
                    ``(A) the recipient country;
                    ``(B) a low-income, developing country near the 
                recipient country; or
                    ``(C) Africa.
            ``(3) Eligible organization.--The term `eligible 
        organization' means--
                    ``(A) an organization that is--
                            ``(i) described in section 202(d) of the 
                        Food for Peace Act; and
                            ``(ii) subject to guidelines promulgated to 
                        carry out this section, including United States 
                        audit requirements that are applicable to non-
                        governmental organizations; or
                    ``(B) an intergovernmental organization, if the 
                organization agrees to be subject to all requirements 
                of this section, including any regulations promulgated 
                or guidelines issued by the Administrator to carry out 
                this section.
            ``(4) Pilot program.--The term `pilot program' means the 
        pilot program established under subsection (b).
    ``(b) Establishment.--The Administrator shall establish a field-
based pilot program for local and regional purchases of eligible 
commodities in accordance with this section.
    ``(c) Purposes.--Eligible commodities under the pilot program shall 
be used solely--
            ``(1) to address severe food shortages caused by sudden 
        events, including--
                    ``(A) earthquakes, floods, and other unforeseen 
                crises; or
                    ``(B) human-made crises, such as conflicts;
            ``(2) to prevent or anticipate increasing food scarcity as 
        the result of slow-onset events, such as drought, crop 
        failures, pests, economic shocks, and diseases that result in 
        an erosion of the capacity of communities and vulnerable 
        populations to meet food needs;
            ``(3) to address recovery, resettlement, and reconstruction 
        following 1 or more disasters or emergencies described in 
        paragraph (1) or (2); and
            ``(4) to protect and improve livelihoods and food security, 
        provide safety nets for food insecure or undernourished 
        populations, and encourage participation in education and other 
        productive activities.
    ``(d) Procurement.--Eligible commodities under the pilot program 
shall for emergency situations be procured through the most effective 1 
or more approaches or methodologies that are likely to expedite the 
provision of food aid to affected populations.
    ``(e) Review of Prior Local Cash Purchase Experience.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, the Administrator shall initiate the 
        process to commission an external review of local cash purchase 
        projects conducted before the date of enactment of this section 
        by other donor countries, private voluntary organizations, and 
        the World Food Program of the United Nations.
            ``(2) Use of review.--The Administrator shall use the 
        results of the review to develop--
                    ``(A) proposed guidelines under subsection (j); and
                    ``(B) requests for applications under subsection 
                (f).
            ``(3) Report.--Not later than 270 days after the date of 
        enactment of this section, the Administrator shall submit to 
        the Committees on Agriculture and Foreign Affairs of the House 
        of Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report containing the results of 
        the review.
    ``(f) Grants to Eligible Organizations.--
            ``(1) In general.--After the promulgation of final 
        guidelines under subsection (j), the Administrator may seek 
        applications from and provide grants to eligible organizations 
        to carry out the pilot program.
            ``(2) Completion requirement.--As a condition of receiving 
        a grant under the pilot program, an eligible organization shall 
        agree--
                    ``(A) to complete all projects funded through the 
                grant not later than September 30, 2011; and
                    ``(B) to provide information about the results of 
                the project in accordance with subsection (i).
            ``(3) Other requirements.--Other requirements for 
        submission of proposals for consideration under this title 
        shall apply to the submission of an application for a grant 
        under this section.
    ``(g) Project Diversity.--In selecting projects to fund under the 
pilot program, the Administrator shall select a diversity of projects, 
including--
            ``(1) at least 1 project for each of the situations 
        described in subsection (c);
            ``(2) at least 1 project carried out jointly with a project 
        funded through grassroots efforts by agricultural producers 
        through eligible United States organizations;
            ``(3) projects in both food surplus and food deficit 
        regions, using regional procurement for food deficit regions; 
        and
            ``(4) projects in diverse geographical regions, with most, 
        but not all, projects located in Africa.
    ``(h) Information Required in Applications.--In submitting an 
application under this section, an eligible organization shall--
            ``(1) request funding for up to 3 years; and
            ``(2) include in the application--
                    ``(A) a description of the target population 
                through a needs assessment and sufficient information 
                to demonstrate that the situation is a situation 
                described in subsection (c);
                    ``(B) an assurance that the local or regional 
                procurement--
                            ``(i) is likely to expedite the provision 
                        of food aid to the affected population; and
                            ``(ii) would meet the requirements of 
                        subsection (d);
                    ``(C) a description of--
                            ``(i) the quantities and types of eligible 
                        commodities that would be procured;
                            ``(ii) the rationale for selecting those 
                        eligible commodities; and
                            ``(iii) how the eligible commodities could 
                        be procured and delivered in a timely manner;
                    ``(D) an analysis of the potential impact of the 
                purchase of eligible commodities on the production, 
                pricing, and marketing of the same and similar 
                agricultural commodities in the country and localities 
                in which the purchase will take place;
                    ``(E) a description of food quality and safety 
                assurance measures; and
                    ``(F) a monitoring and evaluation plan that ensures 
                collection of sufficient data--
                            ``(i) to determine the full cost of 
                        procurement, delivery, and administration;
                            ``(ii) to report on the agricultural 
                        production, marketing, and price impact of the 
                        local or regional purchases, including the 
                        impact on low-income consumers; and
                            ``(iii) to provide sufficient information 
                        to support the completion of the report 
                        described in subsection (i).
    ``(i) Independent Evaluation and Report.--
            ``(1) In general.--The Administrator shall--
                    ``(A) arrange for an independent evaluation of the 
                pilot program; and
                    ``(B) provide access to all records and reports for 
                the completion of the evaluation.
            ``(2) Report.--Not later than 4 years after the date of 
        enactment of this section, the Administrator shall submit to 
        the Committees on Agriculture and Foreign Affairs of the House 
        of Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that--
                    ``(A) includes the analysis and findings of the 
                independent evaluation;
                    ``(B) assesses whether the requirements of this 
                section have been met;
                    ``(C) describes for each of the relevant markets in 
                which the commodities were purchased--
                            ``(i) prevailing and historic supply, 
                        demand, and price movements;
                            ``(ii) impact on producer and consumer 
                        prices;
                            ``(iii) government market interferences and 
                        other donor activities that may have affected 
                        the supply and demand in the area in which the 
                        local or regional purchase took place; and
                            ``(iv) the quantities and types of eligible 
                        commodities procured in each market, the time 
                        frame for procurement, and the complete costs 
                        of the procurement (including procurement, 
                        storage, handling, transportation, and 
                        administrative costs);
                    ``(D) assesses the impact of different 
                methodologies and approaches on local and regional 
                agricultural producers (including large and small 
                producers), markets, low-income consumers, and program 
                recipients;
                    ``(E) assesses the time elapsed from initiation of 
                the procurement process to delivery;
                    ``(F) compares different methodologies used in 
                terms of--
                            ``(i) the benefits to local agriculture;
                            ``(ii) the impact on markets and consumers;
                            ``(iii) the time for procurement and 
                        delivery;
                            ``(iv) quality and safety assurances; and
                            ``(v) implementation costs; and
                    ``(G) to the extent adequate information is 
                available, includes a comparison of the different 
                methodologies used by other donors to make local and 
                regional purchases, including purchases conducted 
                through the World Food Program of the United Nations.
    ``(j) Guidelines.--Prior to approving projects or the procurement 
of eligible commodities under this section, not later than 1 year after 
the date of enactment of this section, the Administrator shall issue 
guidelines to carry out this section.
    ``(k) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        $25,000,000 for each of the fiscal years 2009 through 2012 to 
        carry out this section.
            ``(2) Availability.--Any amounts appropriated pursuant to 
        paragraph (1) shall remain available until expended.''.

SEC. 3015. GENERAL AUTHORITIES AND REQUIREMENTS.

    (a) In General.--Section 401 of the Food for Peace Act (7 U.S.C. 
1731) is amended--
            (1) by striking subsection (a);
            (2) redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively; and
            (3) in subsection (b) (as so redesignated), by striking 
        ``(b)(1)'' and inserting ``(a)(1)''.
    (b) Conforming Amendments.--
            (1) Section 406(a) of the Food for Peace Act (7 U.S.C. 
        1736(a)) is amended by striking ``(that have been determined to 
        be available under section 401(a))''.
            (2) Subsection (e)(1) of the Food for Progress Act of 1985 
        (7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to 
        be available under section 401 of the Food for Peace Act''.

SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

    Section 406(b)(2) of the Food for Peace Act (7 U.S.C. 1736(b)(2)) 
is amended by inserting ``, including the costs of carrying out section 
415'' before the semicolon.

SEC. 3017. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is amended--
            (1) in subsection (c)(4)--
                    (A) by striking ``2007'' and inserting ``2012'';
                    (B) by striking ``$2,000,000'' and inserting 
                ``$4,000,000''; and
                    (C) by adding at the end the following:
            ``(5) Nonemergency or multiyear agreements.--Annual 
        resource requests for ongoing nonemergency or multiyear 
        agreements under title II shall be finalized not later than 
        October 1 of the fiscal year in which the agricultural 
        commodities will be shipped under the agreement.''; and
            (2) in subsection (f)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), by inserting ``, 
                        and the amount of funds, tonnage levels, and 
                        types of activities for nonemergency programs 
                        under title II'' before the semicolon;
                            (ii) in subparagraph (C), by inserting ``, 
                        and a general description of the projects and 
                        activities implemented'' before the semicolon; 
                        and
                            (iii) in subparagraph (D), by striking 
                        ``achieving food security'' and inserting 
                        ``reducing food insecurity''; and
                    (B) in paragraph (3)--
                            (i) by striking ``shall submit'' and 
                        inserting the following: ``shall--
                    ``(A) submit'';
                            (ii) by striking ``January 15'' and 
                        inserting ``April 1''; and
                            (iii) by striking ``of the Senate''. and 
                        inserting the following: ``of the Senate; and
                    ``(B) make the reports available to the public by 
                electronic and other means.''.

SEC. 3018. EXPIRATION DATE.

    Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended 
by striking ``2007'' and inserting ``2012''.

SEC. 3019. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended 
by striking subsection (b) and inserting the following:
    ``(b) Minimum Level of Nonemergency Food Assistance.--For each of 
fiscal years 2008 through 2012, of the amounts made available to carry 
out emergency and nonemergency food assistance programs under title II, 
not less than $600,000,000 for each of those fiscal years shall be 
obligated and expended for nonemergency food assistance programs under 
title II.''.

SEC. 3020. MICRONUTRIENT FORTIFICATION PROGRAMS.

    Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``Not later than 
                September 30, 2003, the Administrator, in consultation 
                with the Secretary'' and inserting ``Not later than 
                September 30, 2008, the Secretary, in consultation with 
                the Administrator''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by adding ``and'' 
                        after the semicolon at the end; and
                            (ii) by striking subparagraphs (B) and (C) 
                        and inserting the following:
                    ``(B) assess and apply technologies and systems to 
                improve and ensure the quality, shelf life, 
                bioavailability, and safety of fortified food aid 
                agricultural commodities, and products of those 
                agricultural commodities, that are provided to 
                developing countries, using recommendations included in 
                the report entitled `Micronutrient Compliance Review of 
                Fortified Public Law 480 Commodities', published in 
                October 2001, with implementation by an independent 
                entity with proven impartial experience and expertise 
                in food aid commodity quality enhancements.'';
            (2) by striking subsection (b) and redesignating 
        subsections (c) and (d) as subsections (b) and (c), 
        respectively; and
            (3) in subsection (c) (as redesignated by paragraph (2), by 
        striking ``2007'' and inserting ``2012''.

SEC. 3021. GERMPLASM CONSERVATION.

    Title IV of the Food for Peace Act (7 U.S.C. 1731 et seq.) is 
amended by adding at the end the following:

``SEC. 417. GERMPLASM CONSERVATION.

    ``(a) Contribution.--The Administrator of the United States Agency 
for International Development shall contribute funds to endow the 
Global Crop Diversity Trust (referred to in this section as the 
`Trust') to assist in the conservation of genetic diversity in food 
crops through the collection and storage of the germplasm of food crops 
in a manner that provides for--
            ``(1) the maintenance and storage of seed collections;
            ``(2) the documentation and cataloguing of the genetics and 
        characteristics of conserved seeds to ensure efficient 
        reference for researchers, plant breeders, and the public;
            ``(3) building the capacity of seed collection in 
        developing countries;
            ``(4) making information regarding crop genetic data 
        publicly available for researchers, plant breeders, and the 
        public (including through the provision of an accessible 
        Internet website);
            ``(5) the operation and maintenance of a back-up facility 
        in which are stored duplicate samples of seeds, in the case of 
        natural or man-made disasters; and
            ``(6) oversight designed to ensure international 
        coordination of those actions and efficient, public 
        accessibility to that diversity through a cost-effective 
        system.
    ``(b) United States Contribution Limit.--The aggregate 
contributions of funds of the Federal Government provided to the Trust 
shall not exceed 25 percent of the total of the funds contributed to 
the Trust from all sources.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for the period of 
fiscal years 2008 through 2012.''.

SEC. 3022. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

    Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended by 
striking ``2007'' each place it appears and inserting ``2012''.

    Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Repeal of Supplier Credit Guarantee Program and Intermediate 
Export Credit Guarantee Program.--Section 202 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``The Commodity'' 
                and inserting ``Subject to paragraph (2), the 
                Commodity''; and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following:
            ``(2) Tenure.--Beginning with the 2012 fiscal year, credit 
        terms described in paragraph (1) may not exceed a 180-day 
        period.'';
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) through (l) as 
        subsections (b) through (j), respectively; and
            (4) by adding at the end the following:
    ``(k) Administration.--
            ``(1) Definition of long term.--In this subsection, the 
        term `long term' means a period of 10 or more years.
            ``(2) Guarantees.--In administering the export credit 
        guarantees authorized under this section, the Secretary shall--
                    ``(A) maximize the export sales of agricultural 
                commodities;
                    ``(B) maximize the export credit guarantees that 
                are made available and used during the course of a 
                fiscal year;
                    ``(C) develop an approach to risk evaluation that 
                facilitates accurate country risk designations and 
                timely adjustments to the designations (on an ongoing 
                basis) in response to material changes in country risk 
                conditions, with ongoing opportunity for input and 
                evaluation from the private sector;
                    ``(D) adjust risk-based guarantees as necessary to 
                ensure program effectiveness and United States 
                competitiveness; and
                    ``(E) work with industry to ensure that risk-based 
                fees associated with the guarantees cover, but do not 
                exceed, the operating costs and losses over the long 
                term.''.
    (b) Conforming Amendments.--The Agricultural Trade Act of 1978 is 
amended--
            (1) in section 202 (7 U.S.C. 5622)--
                    (A) in subsection (b)(4) (as redesignated by 
                subsection (a)(3)), by striking ``, consistent with the 
                provisions of subsection (c)'';
                    (B) in subsection (d) (as redesignated by 
                subsection (a)(3))--
                            (i) by striking ``(1)'' and all that 
                        follows through ``The Commodity'' and inserting 
                        ``The Commodity''; and
                            (ii) by striking paragraph (2); and
                    (C) in subsection (g)(2) (as redesignated by 
                subsection (a)(3)), by striking ``subsections (a) and 
                (b)'' and inserting ``subsection (a)''; and
            (2) in section 211, by striking subsection (b) and 
        inserting the following:
    ``(b) Export Credit Guarantee Programs.--The Commodity Credit 
Corporation shall make available for each of fiscal years 1996 through 
2012 not less than $5,000,000,000 in credit guarantees under section 
202(a).''.

SEC. 3102. MARKET ACCESS PROGRAM.

    (a) Organic Commodities.--Section 203(a) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after 
``agricultural commodities'' the following: ``(including commodities 
that are organically produced (as defined in section 2103 of the 
Organic Foods Production Act of 1990 (7 U.S.C. 6502)))''.
    (b) Funding.--Section 211(c)(1)(A) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``, and 
$200,000,000 for each of fiscal years 2006 and 2007'' and inserting 
``$200,000,000 for each of fiscal years 2006 and 2007, $210,000,000 for 
fiscal year 2008, $220,000,000 for fiscal year 2009, $230,000,000 for 
fiscal year 2010, $240,000,000 for fiscal year 2011, and $200,000,000 
for fiscal year 2012 and each subsequent fiscal year''.

SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Section 301 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5651) is repealed.
    (b) Conforming Amendments.--The Agricultural Trade Act of 1978 is 
amended--
            (1) in title III, by striking the title heading and 
        inserting the following:

                  ``TITLE III--BARRIERS TO EXPORTS'';

            (2) by redesignating section 302 as section 301;
            (3) by striking section 303;
            (4) in section 401 (7 U.S.C. 5661)--
                    (A) in subsection (a), by striking ``section 201, 
                202, or 301'' and inserting ``section 201 or 202''; and
                    (B) in subsection (b), by striking ``sections 201, 
                202, and 301'' and inserting ``sections 201 and 202''; 
                and
            (5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking 
        ``sections 201, 202, 203, and 301'' and inserting ``sections 
        201, 202, and 203''.

SEC. 3104. VOLUNTARY CERTIFICATION OF CHILD LABOR STATUS OF 
              AGRICULTURAL IMPORTS.

    Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C. 5674) 
is amended by adding at the end the following:
    ``(d) Reducing Child Labor and Forced Labor.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Child labor.--The term `child labor' means 
                the worst forms of child labor as defined in 
                International Labor Convention 182, the Convention 
                Concerning the Prohibition and Immediate Action for the 
                Elimination of the Worst Forms of Child Labor, done at 
                Geneva on June 17, 1999.
                    ``(B) Forced labor.--The term `forced labor' means 
                all work or service--
                            ``(i) that is exacted from any individual 
                        under menace of any penalty for non-performance 
                        of the work or service, and for which the 
                        individual does not offer himself or herself 
                        voluntarily, by coercion, debt bondage, 
                        involuntary servitude (as those terms are 
                        defined in section 103 of the Trafficking 
                        Victims Protection Act of 2000 (22 U.S.C. 
                        7102)); and
                            ``(ii) by 1 or more individuals who, at the 
                        time of production, were being subjected to a 
                        severe form of trafficking in persons (as that 
                        term is defined in that section).
            ``(2) Development of standard set of practices.--
                    ``(A) In general.--The Secretary, in coordination 
                with the Secretary of Labor, shall develop a standard 
                set of practices for the production of agricultural 
                commodities that are imported, sold, or marketed in the 
                United States in order to reduce the likelihood that 
                the agricultural commodities are produced with the use 
                of forced labor or child labor.
                    ``(B) Requirement.--The standard set of practices 
                shall be developed in accordance with the requirements 
                of the Trafficking Victims Protection Act of 2000 (22 
                U.S.C. 7101 et seq.).
            ``(3) Requirements.--Not later than 3 years after the date 
        of enactment of this subsection, the Secretary shall, with 
        respect to the standard set of practices developed under 
        paragraph (2), promulgate proposed regulations that shall, at a 
        minimum, establish a voluntary certification program to enforce 
        this subsection by--
                    ``(A) requiring agricultural commodity traceability 
                and inspection at all stages of the supply chain;
                    ``(B) allowing for multistakeholder participation 
                in the certification process;
                    ``(C) providing for annual onsite inspection by a 
                certifying agent, who shall be certified in accordance 
                with the International Organization for Standardization 
                Guide 65, of each affected worksite and handling 
                operation;
                    ``(D) incorporating a comprehensive conflict of 
                interest policy for certifying agents, in accordance 
                with section 2116(h) of the Organic Foods Production 
                Act of 1990 (7 U.S.C. 6515(h)); and
                    ``(E) providing an anonymous grievance procedure 
                that--
                            ``(i) is accessible by third parties to 
                        allow for the identification of new or 
                        continuing violations of the regulations; and
                            ``(ii) provides protections for 
                        whistleblowers.
            ``(4) Reporting requirement.--Not later than 180 days after 
        the date of enactment of this subsection, 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 development and implementation of the standard set of 
        practices under this subsection.''.

SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5723(a)) is amended by striking ``amount of $34,500,000 for each of 
fiscal years 2002 through 2007'' and inserting ``amount of--
            ``(1) $39,500,000 for each of fiscal years 2008 and 2009;
            ``(2) $44,500,000 for fiscal year 2010; and
            ``(3) $34,500,000 for fiscal year 2011 and each subsequent 
        fiscal year.''.

SEC. 3106. FOOD FOR PROGRESS ACT OF 1985.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--
            (1) by striking ``2007'' each place it appears and 
        inserting ``2012'';
            (2) in subsection (b)(5)--
                    (A) by striking subparagraphs (A), (B), and (F);
                    (B) in subparagraph (D), by inserting ``and'' after 
                the semicolon;
                    (C) in subparagraph (E), by striking ``; and'' and 
                inserting a period; and
                    (D) by redesignating subparagraphs (C), (D), and 
                (E) as subparagraphs (A), (B), and (C), respectively; 
                and
            (3) in subsection (f), by striking paragraph (3) and 
        inserting the following:
            ``(3) Funding limitations.--With respect to eligible 
        commodities made available under section 416(b) of the 
        Agricultural Act of 1949 (42 U.S.C. 1431(b)), unless authorized 
        in advance in appropriation Acts--
                    ``(A) for each of fiscal years 2008 through 2010, 
                no funds of the Corporation in excess of $48,000,000 
                (exclusive of the cost of eligible commodities) may be 
                used to carry out this section; and
                    ``(B) for fiscal year 2011 and each fiscal year 
                thereafter, no funds of the Corporation in excess of 
                $40,000,000 (exclusive of the cost of eligible 
                commodities) may be used to carry out this section.''.

SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
              NUTRITION PROGRAM.

    Section 3107 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1736o-1) is amended--
            (1) in subsection (b), by inserting ``in the Department of 
        Agriculture'' after ``establish a program'';
            (2) in subsections (c)(2)(B), (f)(1), (h), (i), and (l)(1) 
        by striking ``President'' each place it appears and inserting 
        ``Secretary'';
            (3) in subsection (d), by striking ``The President shall 
        designate 1 or more Federal agencies'' and inserting ``The 
        Secretary shall'';
            (4) in paragraph (f)(2), by striking ``implementing 
        agency'' and inserting ``Secretary''; and
            (5) in subsection (l)(2), by striking ``such sums'' and all 
        that follows through ``2007'' and inserting ``$300,000,000 for 
        each of fiscal years 2008 through 2012''.

                       Subtitle C--Miscellaneous

SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended--
            (1) in subsection (a), by striking ``a trust stock'' and 
        all that follows through the end of the subsection and 
        inserting the following: ``a trust of commodities, for use as 
        described in subsection (c), to consist of--
            ``(1) quantities equivalent to not more than 4,000,000 
        metric tons of commodities; or
            ``(2) any combination of funds and commodities equivalent 
        to not more than 4,000,000 metric tons of commodities.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``replenish'' each 
                                place it appears and inserting 
                                ``reimburse''; and
                                    (II) by striking ``replenished'' 
                                and inserting ``reimbursed''; and
                            (ii) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) funds made available--
                            ``(i) under paragraph (2)(B);
                            ``(ii) as a result of an exchange of any 
                        commodity held in the trust for an equivalent 
                        amount of funds from--
                                    ``(I) the Agricultural Trade 
                                Development and Assistance Act of 1954 
                                (7 U.S.C. 1691 et seq.);
                                    ``(II) the McGovern-Dole 
                                International Food for Education and 
                                Child Nutrition Program established 
                                under section 3107 of the Farm Security 
                                and Rural Investment Act of 2002 (7 
                                U.S.C. 1736o-1); or
                                    ``(III) the market, if the 
                                Secretary determines that such a sale 
                                of the commodity on the market will not 
                                unduly disrupt domestic markets; and
                            ``(iii) in the course of management of the 
                        trust or to maximize the value of the trust, in 
                        accordance with subsection (d)(3).''; and
                    (B) in paragraph (2)(B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``replenish'' and inserting 
                        ``reimburse'';
                            (ii) in clause (i)--
                                    (I) by striking ``2007'' each place 
                                it appears and inserting ``2012'';
                                    (II) by striking ``(c)(2)'' and 
                                inserting ``(c)(1)''; and
                                    (III) by striking ``and'' at the 
                                end;
                            (iii) in clause (ii), by striking the 
                        period at the end and inserting ``; or''; and
                            (iv) by adding at the end the following:
                            ``(iii) from funds accrued through the 
                        management of the trust under subsection 
                        (d).'';
            (3) in subsection (c)--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Releases for emergency assistance.--
                    ``(A) Definition of emergency.--
                            ``(i) In general.--In this paragraph, the 
                        term `emergency' means an urgent situation--
                                    ``(I) in which there is clear 
                                evidence that an event or series of 
                                events described in clause (ii) has 
                                occurred--
                                            ``(aa) that causes human 
                                        suffering or imminently 
                                        threatens human lives or 
                                        livelihoods; and
                                            ``(bb) for which a 
                                        government concerned has not 
                                        the means to remedy; or
                                    ``(II) created by a demonstrably 
                                abnormal event or series of events that 
                                produces dislocation in the lives of 
                                residents of a country or region of a 
                                country on an exceptional scale.
                            ``(ii) Event or series of events.--An event 
                        or series of events referred to in clause (i) 
                        includes 1 or more of--
                                    ``(I) a sudden calamity, such as an 
                                earthquake, flood, locust infestation, 
                                or similar unforeseen disaster;
                                    ``(II) a human-made emergency 
                                resulting in--
                                            ``(aa) a significant influx 
                                        of refugees;
                                            ``(bb) the internal 
                                        displacement of populations; or
                                            ``(cc) the suffering of 
                                        otherwise affected populations;
                                    ``(III) food scarcity conditions 
                                caused by slow-onset events, such as 
                                drought, crop failure, pest 
                                infestation, and disease, that result 
                                in an erosion of the ability of 
                                communities and vulnerable populations 
                                to meet food needs; and
                                    ``(IV) severe food access or 
                                availability conditions resulting from 
                                sudden economic shocks, market failure, 
                                or economic collapse, that result in an 
                                erosion of the ability of communities 
                                and vulnerable populations to meet food 
                                needs.
                    ``(B) Releases.--
                            ``(i) In general.--Any funds or commodities 
                        held in the trust may be released to provide 
                        assistance under title II of the Food for Peace 
                        Act (7 U.S.C. 1721 et seq.)--
                                    ``(I) to meet emergency needs, 
                                including during the period immediately 
                                preceding the emergency;
                                    ``(II) to respond to an emergency; 
                                or
                                    ``(III) for recovery and 
                                rehabilitation after an emergency.
                            ``(ii) Procedure.--Subject to subparagraph 
                        (B), a release under clause (i) shall be 
                        carried out in the same manner, and pursuant to 
                        the same authority as provided in title II of 
                        that Act.
                    ``(C) Insufficiency of other funds.--The funds and 
                commodities held in the trust shall be made immediately 
                available on a determination by the Administrator that 
                funds available for emergency needs under title II of 
                that Act (7 U.S.C. 1721 et seq.) for a fiscal year are 
                insufficient to meet emergency needs during the fiscal 
                year.''; and
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively;
            (4) in subsection (d)--
                    (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively, and 
                indenting the subparagraphs appropriately;
                    (B) by striking the subsection designation and 
                heading and all that follows through ``provide--'' and 
                inserting the following:
    ``(d) Management of Trust.--
            ``(1) In general.--The Secretary shall provide for the 
        management of eligible commodities and funds held in the trust 
        in a manner that is consistent with maximizing the value of the 
        trust, as determined by the Secretary.
            ``(2) Eligible commodities.--The Secretary shall provide--
        '';
                    (C) in paragraph (2) (as redesignated by 
                subparagraph (B))--
                            (i) in subparagraph (B) (as redesignated by 
                        subparagraph (A)), by striking ``and'' at the 
                        end;
                            (ii) in subparagraph (C) (as redesignated 
                        by subparagraph (A)), by striking the period at 
                        the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) for the management of price risks associated 
                with commodities held or potentially held in the 
                trust.''; and
                    (D) by adding at the end the following:
            ``(3) Funds.--
                    ``(A) Requirement.--The Secretary shall maximize 
                the value of funds held in the trust, to the maximum 
                extent practicable.
                    ``(B) Releases on emergency.--If any commodity is 
                released from the trust in the case of an emergency 
                under subsection (c), the Secretary shall transfer to 
                the trust funds of the Commodity Credit Corporation in 
                an amount equal to, as determined by the Secretary, the 
                amount of storage charges that will be saved by 
                Commodity Credit Corporation due to the emergency 
                release.
                    ``(C) Exchanges.--If any commodity held in the 
                trust is exchanged for funds under subsection 
                (b)(1)(D)(ii)--
                            ``(i) the funds shall be held in the trust 
                        until the date on which the funds are released 
                        in the case of an emergency under subsection 
                        (c); and
                            ``(ii) the Secretary shall transfer to the 
                        trust funds of the Commodity Credit Corporation 
                        in an amount equal to, as determined by the 
                        Secretary, the amount of storage charges that 
                        will be saved by Commodity Credit Corporation 
                        due to the exchange.
                    ``(D) Investment.--The Secretary--
                            ``(i) may invest funds held in the trust in 
                        any short-term obligation of the United States 
                        or any other low-risk short-term instrument or 
                        security insured by the Federal Government in 
                        which a regulated insurance company may invest 
                        under the laws of the District of Columbia; and
                            ``(ii) shall not invest any funds held in 
                        the trust in real estate.'';
            (5) in subsection (f)(2)(A), by striking ``replenish'' and 
        inserting ``reimburse''; and
            (6) in subsection (h)--
                    (A) in paragraph (1), by striking ``replenish'' and 
                inserting ``reimburse''; and
                    (B) in each of paragraphs (1) and (2), by striking 
                ``2007'' each place it appears and inserting ``2012''.

SEC. 3202. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended--
            (1) in subsection (a), by striking ``2007'' and inserting 
        ``2012'';
            (2) in subsection (b)--
                    (A) in the first sentence, by redesignating 
                paragraphs (1) and (2) as subparagraphs (A) and (B), 
                respectively, and indenting appropriately;
                    (B) by striking ``A portion'' and inserting the 
                following:
            ``(1) In general.--A portion'';
                    (C) in the second sentence, by striking ``The 
                Commodity Credit Corporation'' and inserting the 
                following:
            ``(2) Priority.--The Commodity Credit Corporation''; and
                    (D) by adding at the end the following:
            ``(3) Construction waiver.--The Secretary may waive any 
        applicable requirements relating to the use of United States 
        goods in the construction of a proposed facility, if the 
        Secretary determines that--
                    ``(A) goods from the United States are not 
                available; or
                    ``(B) the use of goods from the United States is 
                not practicable.
            ``(4) Term of guarantee.--A facility payment guarantee 
        under this subsection shall be for a term that is not more than 
        the lesser of--
                    ``(A) the term of the depreciation schedule of the 
                facility assisted; or
                    ``(B) 20 years.''; and
            (3) in subsection (d)(1)(A)(i) by striking ``2007'' and 
        inserting ``2012''.

SEC. 3203. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    Section 1543A(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5679(d)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 3204. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE DISPUTES.

    (a) In General.--The Secretary may provide monitoring, analytic 
support, and other technical assistance to limited resource persons 
that are involved in trading agricultural commodities, as determined by 
the Secretary, to reduce trade barriers to the persons.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 3205. 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.--The Secretary, by regulation, shall 
        provide an exception to any requirement under paragraph (1) in 
        any case in which a dog is imported for--
                    ``(A) research purposes; or
                    ``(B) veterinary treatment.
    ``(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 enactment of this Act.

SEC. 3206. REPORT ON THE IMPORTATION OF HIGH PROTEIN FOOD INGREDIENTS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary and the Secretary of Health and 
Human Services (acting through the Commissioner of Food and Drugs), in 
consultation with the heads of other appropriate Federal agencies, 
shall jointly submit to Congress a report on imports of high protein 
food ingredients (including gluten, casein, and milk protein 
concentrate) into the United States during the 5-year period preceding 
the date of enactment of this Act.
    (b) Components.--The report required under subsection (a) shall 
include--
            (1) a description of--
                    (A) the quantity of each high protein food 
                ingredient imported into the United States; and
                    (B) the source of the high protein food ingredients 
                being imported;
            (2) an accounting of the percentage of imports in each 
        category and subcategory of high protein food ingredients that 
        were inspected, including whether the inspections were--
                    (A) basic or visual inspections; or
                    (B) more intensive inspections or laboratory 
                analyses;
            (3) an evaluation of--
                    (A) whether the laboratory tests conducted on high 
                protein food ingredients were able to detect 
                adulteration with other high nitrogen compounds, such 
                as melamine; and
                    (B) if some of the laboratory tests were sensitive 
                and others were not sensitive, the number and results 
                for each sensitivity; and
            (4) a survey of whether high protein food ingredients were 
        imported for food uses or non-food uses, including an analysis 
        of--
                    (A) whether the food uses were animal or human food 
                uses; and
                    (B) whether any non-food or animal feed products 
                could have entered the human food supply, including an 
                analysis of any safeguards to prevent such products 
                from entering the human food supply.
    (c) Availability.--As soon as practicable after the completion of 
the report under subsection (a), the Secretary and the Secretary of 
Health and Human Services shall make the report available to the 
public.

SEC. 3207. 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,''.

                      TITLE IV--NUTRITION PROGRAMS

                 Subtitle A--Food and Nutrition Program

                 PART I--RENAMING OF FOOD STAMP PROGRAM

SEC. 4001. RENAMING OF FOOD STAMP 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 2007''.
    (b) Program.--The Food and Nutrition Act of 2007 (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 ``food and 
nutrition program''.

                  PART II--IMPROVING PROGRAM BENEFITS

SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM INCOME.

    Section 5(d) of the Food and Nutrition Act of 2007 (7 U.S.C. 
2014(d)) is amended--
            (1) by striking ``(d) Household'' and inserting ``(d) 
        Exclusions 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 (1));
            (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'';
            (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 LOW-INCOME 
              AMERICANS.

    Section 5(e)(1) of the Food and Nutrition Act of 2007 (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 2008, $140, 
                                $239, $197, and $123, respectively; and
                                    ``(II) for fiscal year 2009 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 2008, $281; 
                                and
                                    ``(II) for fiscal year 2009 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 2007 (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 child under 2 years 
of age and $175 per month for each other dependent,''.

SEC. 4104. ENCOURAGING RETIREMENT AND EDUCATION SAVINGS AMONG FOOD 
              STAMP RECIPIENTS.

    (a) Allowable Financial Resources.--Section 5(g) of the Food and 
Nutrition Act of 2007 (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 designated by paragraph (1))--
                    (A) by striking ``$2,000'' and inserting ``$3,500 
                (as adjusted in accordance with subparagraph (B))''; 
                and
                    (B) by striking ``$3,000'' and inserting ``$4,500 
                (as adjusted in accordance with subparagraph (B))''; 
                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 in subparagraph (A) shall be adjusted 
                        and rounded down to the nearest $250 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 2007 (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 2007 (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.
                    ``(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 2007 (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 2007 (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. ACCRUAL OF BENEFITS.

    Section 7(i) of the Food and Nutrition Act of 2007 (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. 4107. ELIGIBILITY FOR UNEMPLOYED ADULTS.

    (a) In General.--Section 6(o) of the Food and Nutrition Act of 2007 
(7 U.S.C. 2015(o)) is amended--
            (1) in paragraph (2), in the matter preceding subparagraph 
        (A) by striking ``3 months'' and inserting ``6 months''; and
            (2) in paragraph (5), by striking subparagraph (C).
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on October 1, 2008.

SEC. 4108. TRANSITIONAL BENEFITS OPTION.

    Section 11(s)(1) of the Food and Nutrition Act of 2007 (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. 4109. MINIMUM BENEFIT.

    (a) In General.--Section 8(a) of the Food and Nutrition Act of 2007 
(7 U.S.C. 2017(a)) is amended by striking ``$10 per month'' and 
inserting ``10 percent of the thrifty food plan for a household 
containing 1 member''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2008.

SEC. 4110. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
              ASSISTANCE PROGRAM.

    (a) In General.--Section 27(a) of the Food and Nutrition Act of 
2007 (7 U.S.C. 2036(a)) is amended--
            (1) by striking ``(a) Purchase of Commodities'' and all 
        that follows through ``through 2007'' and inserting the 
        following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--Subject to paragraph (2), for fiscal 
        year 2008 and each fiscal year thereafter''; and
            (2) by adding at the end the following:
            ``(2) Amounts.--In addition to the amounts made available 
        under paragraph (1), for fiscal year 2008 and each fiscal year 
        thereafter, from amounts made available to carry out this Act, 
        the Secretary shall use to carry out this subsection 
        $110,000,000.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of enactment of this Act.

                 PART III--IMPROVING PROGRAM OPERATIONS

SEC. 4201. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

    Section 6(k) of the Food and Nutrition Act of 2007 (7 U.S.C. 
2015(k)) is amended--
            (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 issue consistent 
        procedures--
                    ``(A) to define the terms `fleeing' and `actively 
                seeking' for purposes of this subsection; and
                    ``(B) to ensure that State agencies use consistent 
                procedures that disqualify individuals whom law 
                enforcement authorities are actively seeking for the 
                purpose of holding criminal proceedings against the 
                individual.''.

SEC. 4202. ISSUANCE AND USE OF PROGRAM BENEFITS.

    (a) In General.--Section 7 of the Food and Nutrition Act of 2007 (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:

``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.--
            ``(1) In general.--Benefits'';
                    (B) in paragraph (1) (as designated by subparagraph 
                (A)), by striking the second proviso; and
                    (C) by adding at the end the following:
            ``(2) Study.--As soon as practicable after the date of 
        enactment of this paragraph, the Comptroller General of the 
        United States shall conduct a study of the effects of the 
        Secretary issuing a rule requiring that benefits shall only be 
        used to purchase food that is included in the most recent 
        applicable thrifty food plan market basket.'';
            (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 ``section 11(e)(20)'' and inserting 
                ``section 11(e)(19).''; 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 food 
        and nutrition 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 food and 
        nutrition program.
            ``(3) Devaluation and termination of issuance of paper 
        coupons.--
                    ``(A) Coupon issuance.--Effective on the date of 
                enactment of the Food and Energy Security Act of 2007, 
                no State shall issue any coupon, stamp, certificate, or 
                authorization card to a household that receives food 
                and nutrition benefits under this Act.
                    ``(B) Ebt cards.--Effective beginning on the date 
                that is 1 year after the date of enactment of the Food 
                and Energy Security Act of 2007, only an EBT card 
                issued under subsection (i) shall be eligible for 
                exchange at any retail food store.
                    ``(C) De-obligation of coupons.--Coupons not 
                redeemed during the 1-year period beginning on the date 
                of enactment of the Food and Energy Security Act of 
                2007 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 2007 (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 food and 
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
                            (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))''; and
                    (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 so as to 
                appear in alphabetical order.
            (2) Section 4(a) of the Food and Nutrition Act of 2007 (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 2007 (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 2007 (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 7(f) of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2016(f)) is amended by striking ``including any losses'' 
        and all that follows through ``section 11(e)(20),''.
            (6) Section 8 of the Food and Nutrition Act of 2007 (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)''.
            (7) Section 9 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2018) is amended--
                    (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 food and nutrition 
        program.''; and
                    (C) in subsection (g), by striking ``section 
                3(g)(9)'' and inserting ``section 3(k)(9)''.
            (8) Section 10 of the Food and Nutrition Act of 2007 (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''.
            (9) Section 11 of the Food and Nutrition Act of 2007 (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'';
                    (F) in subsection (q), by striking ``section 
                11(e)(20)(B)'' and inserting ``subsection (e)(18)(B)''
            (10) Section 13 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2022) is amended by striking ``coupons'' each place it 
        appears and inserting ``benefits''.
            (11) Section 15 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2024) is amended--
                    (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''.
            (12) Section 16(a) of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2025(a)) is amended by striking ``coupons'' each place 
        it appears and inserting ``benefits''.
            (13) Section 17 of the Food and Nutrition Act of 2007 (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''.
            (14) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
        of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking 
        ``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
            (15) Section 21 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2030) is amended--
                    (A) in subsection (b)(2)(G)(i), by striking ``and 
                (19)'' and inserting ``(and (17)'';
                    (B) in subsection (d)(3), by striking ``food 
                coupons'' and inserting ``EBT cards''; and
                    (C) by striking ``coupons'' each place it appears 
                and inserting ``EBT cards''.
            (16) Section 22 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2031) is amended--
                    (A) by striking ``food coupons'' each place it 
                appears and inserting ``benefits'';
                    (B) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (C) in subsection (g)(1)(A), by striking ``coupon'' 
                and inserting ``benefits''.
            (17) Section 26(f)(3) of the Food and Nutrition Act of 2007 
        (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 ``benefits'';
                            (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 
                        Cranston-Gonzalez 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--
                            (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 2007 (7 U.S.C. 2011 et seq.) shall be considered to be a 
reference to a ``benefit'' provided under that Act.

SEC. 4203. CLARIFICATION OF SPLIT ISSUANCE.

    Section 7(h) of the Food and Nutrition Act of 2007 (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 only when a benefit correction is 
                necessary.''.

SEC. 4204. STATE OPTION FOR TELEPHONIC SIGNATURE.

    Section 11(e)(2)(C) of the Food and Nutrition Act of 2007 (7 U.S.C. 
2020(e)(2)(C)) is amended--
            (1) by striking ``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 food and nutrition 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. 4205. PRIVACY PROTECTIONS.

    Section 11(e)(8) of the Food and Nutrition Act of 2007 (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
                            ``(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. 4206. STUDY ON COMPARABLE ACCESS TO FOOD AND 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 2007 (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 food and nutrition 
        program, including compliance with appropriate program rules 
        under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et 
        seq,), such as--
                    (A) benefit levels under section 3(o) of that Act 
                (7 U.S.C. 3012(o));
                    (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 low-
        income Puerto Ricans, as compared to the program under section 
        19 of that Act (7 U.S.C. 2028);
            (4) such other matters as the Secretary considers to be 
        appropriate.
    (c) Report.--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 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.

SEC. 4207. CIVIL RIGHTS COMPLIANCE.

    Section 11 of the Food and Nutrition Act of 2007 (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 food and nutrition 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. 4208. EMPLOYMENT, TRAINING, AND JOB RETENTION.

    Section 6(d)(4) of the Food and Nutrition Act of 2007 (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:
                            ``(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).''.

SEC. 4209. CODIFICATION OF ACCESS RULES.

    Section 11(e)(1)) of the Food and Nutrition Act of 2007 (7 U.S.C. 
2020(e)(1)) is amended--
            (1) by striking ``shall (A) at'' and inserting ``shall--
                    ``(A) at''; and
            (2) by striking ``and (B) use'' and inserting ``and
                    ``(B) comply with regulations of the Secretary 
                requiring the use of''.

SEC. 4210. EXPANDING THE USE OF EBT CARDS AT FARMERS' MARKETS.

    (a) In General.--For each of fiscal years 2008 through 2010, the 
Secretary shall make grants to pay 100 percent of the costs of eligible 
entities approved by the Secretary to carry out projects to expand the 
number of farmers' markets that accept EBT cards by--
            (1) providing equipment and training necessary for farmers' 
        markets to accept EBT cards;
            (2) educating and providing technical assistance to farmers 
        and farmers' market operators about the process and benefits of 
        accepting EBT cards; or
            (3) other activities considered to be appropriate by the 
        Secretary.
    (b) Limitation.--A grant under this section--
            (1) may not be made for the ongoing cost of carrying out 
        any project; and
            (2) 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.
    (c) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be--
            (1) a State agency administering the food and nutrition 
        program established under the Food and Nutrition Act of 2007 (7 
        U.S.C. 2011 et seq.);
            (2) a State agency or local government; or
            (3) a private nonprofit entity that coordinates farmers' 
        markets in a State in cooperation with a State or local 
        government.
    (d) Selection of Eligible Entities.--The Secretary--
            (1) shall develop criteria to select eligible entities to 
        receive grants under this section; and
            (2) may give preference to any eligible entity that 
        consists of a partnership between a government entity and a 
        nongovernmental entity.
    (e) Mandatory Funding.--
            (1) In general.--On October 1, 2007, out of any funds in 
        the Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $5,000,000, 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.

SEC. 4211. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

    Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) is 
amended by striking subsection (a) and inserting the following:
    ``(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 county-
        administered 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 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. 4212. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

    Section 16 of the Food and Nutrition Act of 2007 (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 food and nutrition 
                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 food and nutrition program.''.

SEC. 4213. NUTRITION EDUCATION.

    (a) Authority To Provide Nutrition Education.--Section 4(a) of the 
Food and Nutrition Act of 2007 (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 
2007 (7 U.S.C. 2020(f) 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 Cooperative State Research, 
        Education, and Extension Service, including through the 
        expanded food and nutrition education 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.''.

                  PART IV--IMPROVING PROGRAM INTEGRITY

SEC. 4301. MAJOR SYSTEMS FAILURES.

    (a) In General.--Section 13(b) of the Food and Nutrition Act of 
2007 (7 U.S.C. 2022(b)) is amended by adding at the end the following:
            ``(5) Over issuances caused by systemic state errors.--
                    ``(A) In general.--If the Secretary determines that 
                a State agency over issued benefits to a substantial 
                number of households in a fiscal year as a result of a 
                major systemic error by the State agency, as determined 
                by the Secretary, the Secretary may prohibit the State 
                agency from collecting these over issuances 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 over 
                                issued 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 over 
                                issuance 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 over issued benefits to households 
                        due to a major systemic error determined under 
                        subparagraph (A), the Secretary shall establish 
                        a claim against the State agency equal to the 
                        value of the over issuance 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 of 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.''.
    (b) Conforming Amendment.--Section 14(a)(6) of the Food and 
Nutrition Act of 2007 (7 U.S.C. 2023(a)(6)) is amended by striking 
``pursuant to section'' and inserting ``pursuant to section 13(b)(5) 
and''.

SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC IDENTIFICATION 
              TECHNOLOGY.

    Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025) is 
amended by adding at the end the following:
    ``(l) Performance Standards for Biometric Identification 
Technology.--
            ``(1) Definition of biometric identification technology.--
        In this subsection, the term `biometric identification 
        technology' means a technology that provides an automated 
        method to identify an individual based on physical 
        characteristics, such as fingerprints or retinal scans.
            ``(2) Administrative funds.--The Secretary may not pay a 
        State agency any amount for administrative costs for the 
        development, purchase, administration, or other costs 
        associated with the use of biometric identification technology 
        unless the State agency has, under such terms and conditions as 
        the Secretary considers appropriate--
                    ``(A) provided to the Secretary an analysis of the 
                cost-effectiveness of the use of the proposed biometric 
                identification technology to detect fraud in carrying 
                out the food and nutrition program;
                    ``(B) demonstrated to the Secretary that the 
                analysis is--
                            ``(i) statistically valid; and
                            ``(ii) based on appropriate and valid 
                        assumptions for the households served by the 
                        food and nutrition program;
                    ``(C) demonstrated to the Secretary that--
                            ``(i) the proposed biometric identification 
                        technology is cost-effective in reducing fraud; 
                        and
                            ``(ii) there are no other technologies or 
                        fraud-detection methods that are at least as 
                        cost-effective in carrying out the purposes of 
                        the proposed biometric identification system; 
                        and
                    ``(D) demonstrated to the Secretary that no 
                information produced by or used in the biometric 
                information technology system will be made available or 
                used for any purpose other than a purpose allowed under 
                section 11(e)(8).
            ``(3) Standards.--The Secretary shall establish uniform 
        standards for the evaluation of cost-effectiveness analyses 
        submitted to the Secretary under paragraph (2).''.

SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES 
              AND WHOLESALE FOOD CONCERNS.

    Section 12 of the Food and Nutrition Act of 2007 (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 food and nutrition 
                program; or
                    ``(B) assessed a civil penalty of up to $100,000 
                for each violation.
            ``(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:
    ``(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 Penalty 
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
            (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 subsection 
                (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. 4304. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    (a) In General.--Section 16(h)(1)(A) of the Food and Nutrition Act 
of 2007 (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 2 fiscal years''.
    (b) Rescission of Funds.--Notwithstanding any other provision of 
law, funds provided under section 16(h)(1)(A) of the Food and Nutrition 
Act of 2007 (7 U.S.C. 2025(h)(1)(A)) for any fiscal year before the 
fiscal year beginning October 1, 2007, shall be rescinded on the date 
of enactment of this Act, unless obligated by a State agency before 
that date.

SEC. 4305. ELIGIBILITY DISQUALIFICATION.

    Section 6 of the Food and Nutrition Assistance Act of 2007 (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.--Any person who has been found by a State or 
Federal court or administrative agency or in a hearing under subsection 
(b) to have intentionally obtained cash by purchasing products with 
food and nutrition 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 Food and 
Nutrition Benefits.--Subject to any requirements established by the 
Secretary, any person who has been found by a State or Federal court or 
administrative agency or in a hearing under subsection (b) to have 
intentionally sold any food that was purchased using food and nutrition 
benefits shall be ineligible for benefits under this Act for such 
period of time as the Secretary shall prescribe by regulation.''.

                         PART V--MISCELLANEOUS

SEC. 4401. DEFINITION OF STAPLE FOODS.

    Subsection (r) of section 3 of the Food and Nutrition Act of 2007 
(7 U.S.C. 2012) (as redesignated by section 4202(b)(1)(M)) is amended--
            (1) by striking ``(r)(1) Except'' and inserting the 
        following:
    ``(r) Staple Foods.--
            ``(1) In general.--Except''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Exceptions.--The term `staple foods' does not include 
        accessory food items, such as coffee, tea, cocoa, carbonate and 
        uncarbonated drinks, candy, condiments, and spices, or dietary 
        supplements.
            ``(3) Depth of stock.--The Secretary may issue regulations 
        to define depth of stock to ensure that stocks of staple foods 
        are available on a continuous basis.''.

SEC. 4402. ACCESSORY FOOD ITEMS.

    Section 9(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 
2018(a)) is amended by adding at the end the following:
            ``(4) Accessory food items.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Secretary 
                shall promulgate proposed regulations providing that a 
                dietary supplement shall not be considered an accessory 
                food item unless the dietary supplement--
                            ``(i) contains folic acid or calcium in 
                        accordance with sections 101.72 and 101.79 of 
                        title 21, Code of Federal Regulations (as in 
                        effect on the date of enactment of this 
                        paragraph); and
                            ``(ii) is a multivitamin-mineral supplement 
                        that--
                                    ``(I) provides at least \2/3\ of 
                                the essential vitamins and minerals at 
                                100 percent of the daily value levels, 
                                as determined by the Food and Drug 
                                Administration; and
                                    ``(II) does not exceed the daily 
                                upper limit for those nutrients for 
                                which an established daily upper limit 
                                has been determined by the Institute of 
                                Medicine of the National Academy of 
                                Sciences.
                    ``(B) Final regulations.--Not later than 2 years 
                after the date of enactment of this paragraph, the 
                Secretary shall promulgate final regulations in 
                accordance with subparagraph (A).
                    ``(C) Purchase of dietary supplements.--No dietary 
                supplements may be purchased using benefits under this 
                Act until the earlier of--
                            ``(i) the date on which the Secretary 
                        promulgates final regulations under 
                        subparagraph (B); or
                            ``(ii) the date on which the Secretary 
                        certifies a voluntary system of labeling for 
                        the ready and accurate identification of 
                        eligible dietary supplements, as developed by 
                        the Secretary in consultation with the dietary 
                        supplement industry and dietary supplement 
                        retailers.''.

SEC. 4403. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN 
              THE FOOD AND NUTRITION PROGRAM.

    Section 17 of the Food and Nutrition Act of 2007 (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 Food and Nutrition 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 food and nutrition program to 
                improve the dietary and health status of households 
                participating in the food and nutrition program; and
                    ``(B) to reduce overweight, obesity (including 
                childhood obesity), and associated co-morbidities in 
                the United States.
            ``(2) 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 food and nutrition program result from projects that--
                    ``(A) increase the food and nutrition assistance 
                purchasing power of the participating households by 
                providing increased food and nutrition assistance 
                benefit allotments to the participating households;
                    ``(B) increase access to farmers markets by 
                participating households through the electronic 
                redemption of food and nutrition assistance at the 
                farmers markets;
                    ``(C) provide incentives to authorized food and 
                nutrition program vendors to increase the availability 
                of healthy foods to participating households;
                    ``(D) subject authorized food and nutrition program 
                vendors to stricter vendor requirements with respect to 
                carrying and stocking healthy foods;
                    ``(E) provide incentives at the point of purchase 
                to encourage participating households to purchase 
                fruits, vegetables, or other healthy foods; or
                    ``(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).
            ``(3) Duration.--A pilot project carried out under this 
        subsection shall have a term of not more than 5 years.
            ``(4) Evaluations and reports.--
                    ``(A) Evaluations.--
                            ``(i) Independent evaluation.--
                                    ``(I) In general.--The Secretary 
                                shall provide for an independent 
                                evaluation of each pilot project 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) Reports.--Not later than 90 days after the 
                last day of fiscal year 2008 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.
            ``(5) Funding.--
                    ``(A) In general.--Out of any funds made available 
                under section 18, the Secretary shall use $50,000,000 
                to carry out this section, to remain available until 
                expended.
                    ``(B) Use of funds.--Of funds made available under 
                subparagraph (A), the Secretary shall use not more than 
                $25,000,000 to carry out a pilot project described in 
                paragraph (2)(E).''.

SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND 
              INTERNATIONAL HUNGER FELLOWS.

    (a) In General.--The Food and Nutrition Act of 2007 (7 U.S.C. 2011 
et seq.) is amended by adding at the end the following:

``SEC. 28. 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 2007'.
    ``(b) Findings.--Congress finds that--
            ``(1) there is a critical need for compassionate 
        individuals who are committed to assisting people who suffer 
        from hunger to initiate and administer solutions to the hunger 
        problem;
            ``(2) Bill Emerson, the distinguished late Representative 
        from the 8th District of Missouri, demonstrated--
                    ``(A) his commitment to solving the problem of 
                hunger in a bipartisan manner;
                    ``(B) his commitment to public service; and
                    ``(C) his great affection for the institution and 
                ideals of the United States Congress;
            ``(3) George T. (Mickey) Leland, the distinguished late 
        Representative from the 18th District of Texas, demonstrated--
                    ``(A) his compassion for those in need;
                    ``(B) his high regard for public service; and
                    ``(C) his lively exercise of political talents;
            ``(4) the special concern that Mr. Emerson and Mr. Leland 
        demonstrated during their lives for the hungry and poor was an 
        inspiration for others to work toward the goals of equality and 
        justice for all;
            ``(5) these 2 outstanding leaders maintained a special bond 
        of friendship regardless of political affiliation and worked 
        together to encourage future leaders to recognize and provide 
        service to others; and
            ``(6) it is especially appropriate to honor the memory of 
        Mr. Emerson and Mr. Leland by creating a fellowship program to 
        develop and train the future leaders of the United States to 
        pursue careers in humanitarian service.
    ``(c) 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 (d)(1).
    ``(d) Fellowship Programs.--
            ``(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.
    ``(e) 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 (d)(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 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 (d)(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.
    ``(f) Authority.--
            ``(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.
    ``(g) 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 
        (h); and
            ``(2) includes the results of evaluations and audits 
        required by subsection (f).
    ``(h) 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.''.
    (b) Repeal.--Section 4404 of the Farm Security and Rural Investment 
Act of 2002 (2 U.S.C. 1161) is repealed.

SEC. 4405. HUNGER-FREE COMMUNITIES.

    (a) Definitions.--In this section:
            (1) Domestic hunger goal.--The term ``domestic hunger 
        goal'' means--
                    (A) the goal of reducing hunger in the United 
                States to at or below 2 percent by 2010; or
                    (B) the goal of reducing food insecurity in the 
                United States to at or below 6 percent by 2010.
            (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) Food security.--The term ``food security'' means the 
        state in which an individual has access to enough food for an 
        active, healthy life.
            (4) Hunger-free communities goal.--The term ``hunger-free 
        communities goal'' means any of the 14 goals described in the 
        H. Con. Res. 302 (102nd Congress).
    (b) Hunger Reports.--
            (1) Study.--
                    (A) Timeline.--
                            (i) In general.--Not later than 1 year 
                        after the date of enactment of this Act, the 
                        Secretary shall conduct a study of major 
                        matters relating to the problem of hunger in 
                        the United States, as determined by the 
                        Secretary.
                            (ii) Update.--Not later than 5 years after 
                        the date on which the study under clause (i) is 
                        conducted, the Secretary shall update the 
                        study.
                    (B) Matters to be assessed.--The matters to be 
                assessed by the Secretary in the study and update under 
                this paragraph shall include--
                            (i) data on hunger and food insecurity in 
                        the United States;
                            (ii) measures carried out during the 
                        previous year by Federal, State, and local 
                        governments to achieve domestic hunger goals 
                        and hunger-free communities goals; and
                            (iii) measures that could be carried out by 
                        Federal, State, and local governments to 
                        achieve domestic hunger goals and hunger-free 
                        communities goals.
            (2) Recommendations.--The Secretary shall develop 
        recommendations on--
                    (A) removing obstacles to achieving domestic hunger 
                goals and hunger-free communities goals; and
                    (B) otherwise reducing domestic hunger.
            (3) Report.--The Secretary shall submit to the President 
        and Congress--
                    (A) not later than 1 year after the date of 
                enactment of this Act, a report that contains--
                            (i) a detailed statement of the results of 
                        the study, or the most recent update to the 
                        study, conducted under paragraph (1)(A); and
                            (ii) the most recent recommendations of the 
                        Secretary under paragraph (2); and
                    (B) not later than 5 years after the date of 
                submission of the report under subparagraph (A), an 
                update of the report.
    (c) Hunger-Free Communities Collaborative Grants.--
            (1) Definition of eligible entity.--In this subsection, the 
        term ``eligible entity'' means a public food program service 
        provider or a nonprofit organization, including but not limited 
        to an emergency feeding organization, that demonstrates the 
        organization has collaborated, or will collaborate, with 1 or 
        more local partner organizations to achieve at least 1 hunger-
        free communities goal.
            (2) Program authorized.--
                    (A) In general.--The Secretary shall use not more 
                than 55 percent of any funds made available under 
                subsection (f) to make grants to eligible entities to 
                pay the Federal share of the costs of an activity 
                described in paragraph (4).
                    (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 in kind, fairly 
                        evaluated, including facilities, equipment, or 
                        services.
                            (ii) Sources.--Any entity may provide the 
                        non-Federal share of the cost of an activity 
                        under this subsection through a State 
                        government, a local government, or a private 
                        source.
            (3) Application.--
                    (A) In general.--To receive a grant under this 
                subsection, an eligible entity shall submit an 
                application to the Secretary at the time and in the 
                manner and accompanied by any information the Secretary 
                may require.
                    (B) Contents.--Each application submitted under 
                subparagraph (A) shall--
                            (i) identify any activity described in 
                        paragraph (4) that the grant will be used to 
                        fund;
                            (ii) describe the means by which an 
                        activity identified under clause (i) will 
                        reduce hunger in the community of the eligible 
                        entity;
                            (iii) list any partner organizations of the 
                        eligible entity that will participate in an 
                        activity funded by the grant;
                            (iv) describe any agreement between a 
                        partner organization and the eligible entity 
                        necessary to carry out an activity funded by 
                        the grant; and
                            (v) if an assessment described in paragraph 
                        (4)(A) has been performed, include--
                                    (I) a summary of that assessment; 
                                and
                                    (II) information regarding the 
                                means by which the grant will help 
                                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--
                            (i) demonstrate in the application of the 
                        eligible entity that the eligible entity makes 
                        collaborative efforts to reduce hunger in the 
                        community of the eligible entity; and
                            (ii)(I) serve communities in which the 
                        rates of food insecurity, hunger, poverty, or 
                        unemployment are demonstrably higher than 
                        national average rates;
                            (II) provide evidence of long-term efforts 
                        to reduce hunger in the community;
                            (III) provide evidence of public support 
                        for the efforts of the eligible entity; or
                            (IV) demonstrate in the application of the 
                        eligible entity a commitment to achieving more 
                        than 1 hunger-free communities goal.
            (4) Use of funds.--
                    (A) Assessment of hunger in the community.--
                            (i) In general.--An eligible entity in a 
                        community that has not performed an assessment 
                        described in clause (ii) may use a grant 
                        received under this subsection to perform the 
                        assessment for the community.
                            (ii) Assessment.--The assessment referred 
                        to in clause (ii) shall include--
                                    (I) an analysis of the problem of 
                                hunger in the community served by the 
                                eligible entity;
                                    (II) an evaluation of any facility 
                                and any equipment used to achieve a 
                                hunger-free communities goal in the 
                                community;
                                    (III) an analysis of the 
                                effectiveness and extent of service of 
                                existing nutrition programs and 
                                emergency feeding organizations; and
                                    (IV) a plan to achieve any other 
                                hunger-free communities goal in the 
                                community.
                    (B) Activities.--An eligible entity in a community 
                that has submitted an assessment to the Secretary shall 
                use a grant received under this subsection for any 
                fiscal year for activities of the eligible entity, 
                including--
                            (i) meeting the immediate needs of people 
                        in the community served by the eligible entity 
                        who experience hunger by--
                                    (I) distributing food;
                                    (II) providing community outreach; 
                                or
                                    (III) improving access to food as 
                                part of a comprehensive service;
                            (ii) developing new resources and 
                        strategies to help reduce hunger in the 
                        community;
                            (iii) establishing a program to achieve a 
                        hunger-free communities goal in the community, 
                        including--
                                    (I) a program to prevent, monitor, 
                                and treat children in the community 
                                experiencing hunger or poor nutrition; 
                                or
                                    (II) a program to provide 
                                information to people in the community 
                                on hunger, domestic hunger goals, and 
                                hunger-free communities goals; and
                            (iv) establishing a program to provide food 
                        and nutrition services as part of a coordinated 
                        community-based comprehensive service.
    (d) Hunger-Free Communities Infrastructure Grants.--
            (1) Definition of eligible entity.--In this subsection, the 
        term ``eligible entity'' means an emergency feeding 
        organization (as defined in section 201A(4) of the Emergency 
        Food Assistance Act of 1983 (7 U.S.C. 7501(4))).
            (2) Program authorized.--
                    (A) In general.--The Secretary shall use not more 
                than 45 percent of any funds made available under 
                subsection (f) to make grants to eligible entities to 
                pay the Federal share of the costs of an activity 
                described in paragraph (4).
                    (B) Federal share.--The Federal share of the cost 
                of carrying out an activity under this subsection shall 
                not exceed 80 percent.
            (3) Application.--
                    (A) In general.--To receive a grant under this 
                subsection, an eligible entity shall submit an 
                application to the Secretary at the time and in the 
                manner and accompanied by any information the Secretary 
                may require.
                    (B) Contents.--Each application submitted under 
                subparagraph (A) shall--
                            (i) identify any activity described in 
                        paragraph (4) that the grant will be used to 
                        fund; and
                            (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 the applications of which 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 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.
            (4) Use of funds.--An eligible entity shall use a grant 
        received under this subsection for any fiscal year to carry out 
        activities of the eligible entity, including--
                    (A) constructing, expanding, or repairing a 
                facility or equipment to support hunger relief agencies 
                in the community;
                    (B) assisting an emergency feeding organization in 
                the community in obtaining locally-produced produce and 
                protein products; and
                    (C) assisting an emergency feeding organization in 
                the community to process and serve wild game.
    (e) Report.--If funds are made available under subsection (f), not 
later than September 30, 2012, the Secretary shall submit to Congress a 
report describing--
            (1) each grant made under this section, including--
                    (A) a description of any activity funded by such a 
                grant; and
                    (B) the degree of success of each activity funded 
                by such a grant in achieving hunger-free communities 
                goals; and
            (2) the degree of success of all activities funded by 
        grants under this section in achieving domestic hunger goals.
    (f) 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. 4406. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM 
              BENEFITS FOR FREE SCHOOL MEALS.

    (a) In General.--Not later than June 30 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 assesses the effectiveness of each 
State in enrolling school-aged children in households receiving program 
benefits under the Food and Nutrition Act of 2007 (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) 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. 4407. SENSE OF CONGRESS REGARDING NUTRITION EDUCATION UNDER THE 
              FOOD AND NUTRITION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) nutrition education under the Food and Nutrition Act of 
        2007 (7 U.S.C. 2011 et seq.) plays an essential role in 
        improving the dietary and physical activity practices of low-
        income people in the United States, helping to reduce food 
        insecurity, prevent obesity, and reduce the risks of chronic 
        disease;
            (2) expert organizations, such as the Institute of 
        Medicine, indicate that dietary and physical activity behavior 
        change is more likely to result from the combined application 
        of public health approaches and education than from education 
        alone; and
            (3) State programs are implementing nutrition education 
        using effective strategies, including direct education, group 
        activities, and social marketing.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Secretary should support and encourage effective 
        interventions for nutrition education under the Food and 
        Nutrition Act of 2007 (7 U.S.C. 2011 et seq.), including 
        coordination with public health approaches and traditional 
        education, to increase the likelihood that recipients of food 
        and nutrition program benefits and people who are potentially 
        eligible for those benefits will choose diets and physical 
        activity practices consistent with the Dietary Guidelines for 
        Americans;
            (2) to promote the most effective implementation of 
        publicly-funded programs, State nutrition education activities 
        under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et 
        seq.)--
                    (A) should be coordinated with other federally-
                funded food assistance and public health programs; and
                    (B) should leverage public/private partnerships to 
                maximize the resources and impact of the programs; and
            (3) funds provided under the Food and Nutrition Act of 2007 
        (7 U.S.C. 2011 et seq.) for nutrition education should be used 
        only for activities that promote diets and physical activity 
        consistent with the Dietary Guidelines for Americans among--
                    (A) recipients of food and nutrition program 
                benefits; and
                    (B) people who are potentially eligible for those 
                benefits.

      Subtitle B--Food Distribution Program on Indian Reservations

SEC. 4501. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.

    (a) In General.--Section 4 of the Food and Nutrition Act of 2007 (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 food and nutrition 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 permits any household on any Indian reservation to 
                participate simultaneously in the food and nutrition 
                program and the distribution of federally donated 
                foods.
            ``(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 food and nutrition program under 
        this Act.
            ``(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, 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 food fund.--
                    ``(A) In general.--Subject to the availability of 
                appropriations, the Secretary shall establish a fund 
                for use in purchasing traditional foods for recipients 
                of food distributed under this subsection.
                    ``(B) 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.
                    ``(C) 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 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 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 2007 (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 
                Americans compared to the food and nutrition 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 
                of infrastructure;
            (3) 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; and
            (4) if the Secretary does not plan changes to the food 
        package, the rationale of the Secretary for retaining the food 
        package.

  Subtitle C--Administration of Emergency Food Assistance Program and 
                  Commodity Supplemental Food Program

SEC. 4601. EMERGENCY FOOD ASSISTANCE.

    (a) State Plan.--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.--To receive commodities under this Act, every 3 years, 
a State shall submit to the Secretary an operation and administration 
plan for the provision of assistance under this Act.''.
    (b) Donated Wild Game.--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 inserting ``and donated wild game'' before the period at 
the end.

SEC. 4602. 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.''.

          Subtitle D--Senior Farmers' Market Nutrition Program

SEC. 4701. EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY FOR OTHER 
              PROGRAMS.

    (a) In General.--Section 4402 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3007) is amended--
            (1) in subsection (a), by striking ``each of fiscal years 
        2003 through 2007'' and inserting ``fiscal year 2008 and each 
        fiscal year thereafter'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (e), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Additional Funds.--In addition to the amounts made available 
under subsection (a), for fiscal year 2008 and each fiscal year 
thereafter, of the funds of the Commodity Credit Corporation, the 
Secretary of Agriculture shall use $10,000,000 to expand the program 
established under this section.''; and
            (4) by inserting after subsection (c) (as redesignated by 
        paragraph (2)) the following:
    ``(d) Exclusion of Benefits in Determining Eligibility for Other 
Programs.--The value of any benefit provided under the program under 
this section shall not be taken into consideration in determining the 
eligibility of an individual for any other Federal or State assistance 
program.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of enactment of this Act.

SEC. 4702. PROHIBITION ON COLLECTION OF SALES TAX.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended by inserting after subsection (d) (as added 
by section 4701(a)(4)) the following:
    ``(e) Prohibition on Collection of Sales Tax.--A State that 
collects any sales tax on the purchase of food using a benefit provided 
under the program under this section shall not be eligible to 
participate in the program.''.

    Subtitle E--Reauthorization of Federal Food Assistance Programs

SEC. 4801. FOOD AND NUTRITION PROGRAM.

    (a) Grants for Simple Application and Eligibility Determination 
Systems and Improved Access to Benefits.--Section 11(t)(1) of the Food 
and Nutrition Act of 2007 (7 U.S.C. 2020(t)(1)) is amended by striking 
``For each of fiscal years 2003 through 2007'' and inserting ``For 
fiscal year 2008 and each fiscal year thereafter''.
    (b) Funding of Employment and Training Programs.--Section 16(h)(1) 
of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)) is 
amended--
            (1) in subparagraph (A)(vii), by striking ``for each of 
        fiscal years 2002 through 2007'' and inserting ``for fiscal 
        year 2008 and each fiscal year thereafter''; and
            (2) in subparagraph (E)(i), by striking ``for each of 
        fiscal years 2002 through 2007'' and inserting ``for fiscal 
        year 2008 and each fiscal year thereafter''.
    (c) Reductions in Payments for Administrative Costs.--Section 
16(k)(3) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(k)(3)) is 
amended--
            (1) in the first sentence of subparagraph (A), by striking 
        ``for each of fiscal years 1999 through 2007'' and inserting 
        ``for fiscal year 2008 and each fiscal year thereafter''; and
            (2) in subparagraph (B)(ii), by striking ``through fiscal 
        year 2007''.
    (d) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the 
Food and Nutrition Act of 2007 (7 U.S.C. 2026(b)(1)(B(vi)) is amended 
by striking ``through October 1, 2007''.
    (e) Authorization of Appropriations.--Section 18(a)(1) of the Food 
and Nutrition Act of 2007 (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 fiscal year 2008 and each fiscal year thereafter''.
    (f) Consolidated Block Grants for Puerto Rico and American Samoa.--
Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2007 (7 U.S.C. 
2028(a)(2)(A)(ii)) by striking ``for each of fiscal years 2004 through 
2007'' and inserting ``for fiscal year 2008 and each fiscal year 
thereafter''.
    (g) Assistance for Community Food Projects.--Section 25 of the Food 
and Nutrition Act of 2007 (7 U.S.C. 2034) is amended--
            (1) in subsection (b)(2), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) $10,000,000 for each of fiscal years 2008 
                through 2012.''; and
            (2) in subsection (h)(4), by striking ``2007'' and 
        inserting ``2012''.

SEC. 4802. COMMODITY DISTRIBUTION.

    (a) 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 ``$60,000,000 for each of the fiscal years 
2003 through 2007'' and inserting ``$100,000,000 for fiscal year 2008 
and each fiscal year thereafter''.
    (b) 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 ``year 2008 and each fiscal year 
thereafter''.
    (c) 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--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``each of fiscal 
                years 2003 through 2007'' and inserting ``fiscal year 
                2008 and each fiscal year thereafter''; and
                    (B) in paragraph (2)(B), by striking ``(B) Fiscal 
                years 2004 through 2007.--'' and all that follows 
                through ``2007'' and inserting the following:
                    ``(B) Subsequent fiscal years.--For fiscal year 
                2004 and each subsequent fiscal year'';
            (2) in subsection (d)(2), by striking ``each of the fiscal 
        years 1991 through 2007'' and inserting ``fiscal year 2008 and 
        each fiscal year thereafter''; and
            (3) in subsection (g)--
                    (A) by striking ``If a local'' and inserting the 
                following:
            ``(1) In general.--If a local''; and
                    (B) by adding at the end the following:
            ``(2) State option.--Subject to a determination by the 
        Secretary that annual appropriations have enabled every State 
        seeking to participate in the commodity supplemental food 
        program to participate in that program, a State may serve low-
        income persons aged 60 and older that have a household income 
        that is not more than 185 percent of the most recent annual 
        Federal Poverty Income Guidelines published by the Department 
        of Health and Human Services, if--
                    ``(A) the State has submitted to the Secretary 
                justification for that service; and
                    ``(B) the Secretary has approved the request of the 
                State.''.
    (d) 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 ``2007'' and inserting ``2012''.

SEC. 4803. 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''.

                       Subtitle F--Miscellaneous

SEC. 4901. PERIODIC SURVEYS OF FOODS PURCHASED BY SCHOOL FOOD 
              AUTHORITIES.

    Section 6 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1755) is amended by adding at the end the following:
    ``(f) Periodic Surveys of Foods Purchased by School Food 
Authorities.--
            ``(1) In general.--For fiscal year 2008 and every fifth 
        fiscal year thereafter, 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 national school lunch 
        program.
            ``(2) Report.--On completion of each survey, the Secretary 
        shall submit to Congress a report that describes the results of 
        the survey.
            ``(3) Funding.--Of the funds made available under section 
        3, the Secretary shall use to carry out this subsection not 
        more than $3,000,000 for fiscal year 2008 and every fifth 
        fiscal year thereafter.''.

SEC. 4902. PURCHASES OF LOCALLY GROWN FRUITS AND VEGETABLES.

    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 Grown Fruits and Vegetables.--The 
Secretary shall--
            ``(1) encourage institutions receiving funds under this Act 
        and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to 
        purchase locally grown fruits and vegetables, 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 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, to use a geographic 
        preference for the procurement of locally grown fruits and 
        vegetables.''.

SEC. 4903. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

    Section 18(i) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769(i)) 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);
            (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, sound 
                        farming practices, and diet.
                    ``(C) Priority states.--Of the States provided a 
                grant under this paragraph--
                            ``(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).
                    ``(G) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $10,000,000.''; and
            (4) in paragraph (4) (as redesignated by paragraph (2)), by 
        inserting ``(other than paragraph (3))'' after ``this 
        subsection''.

SEC. 4904. FRESH FRUIT AND VEGETABLE PROGRAM.

    (a) 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.--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 fiscal 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.--
            ``(1) In general.--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) except as provided in paragraph (2), 
                        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 (C); and
                    ``(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) 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); and
                            ``(iii) such other information as may be 
                        requested by the Secretary;
                    ``(D) give priority to schools that submit a plan 
                for implementation of the program that includes a 
                partnership with 1 or more entities that provide non-
                Federal resources (including entities representing the 
                fruit and vegetable industry) for--
                            ``(i) the acquisition, handling, promotion, 
                        or distribution of fresh and dried fruits and 
                        fresh vegetables; or
                            ``(ii) other support that contributes to 
                        the purposes of the program;
                    ``(E) give priority to schools that provide 
                evidence of 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
                    ``(F) ensure that each school selected is an 
                elementary school.
            ``(2) Exception.--Clause (i) of paragraph (1)(A) shall not 
        apply to a State if the State does not have a sufficient number 
        of schools that meet the requirement of that clause.
            ``(3) Consortia.--A consortia of schools may apply for 
        funding under this section.
    ``(e) Notice of Availability.--To be eligible 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, annually.
    ``(g) Limitation.--To the maximum extent practicable, each State 
agency shall ensure that in making available to students the fruits and 
vegetables provided under this section, schools participating in the 
program 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) Schools on Indian Reservations.--The Secretary shall ensure 
that not less than 100 of the schools chosen to participate in the 
program are schools operated on Indian reservations.
    ``(i) 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).
    ``(j) Funding.--
            ``(1) 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 section--
                    ``(A) on October 1, 2007, $225,000,000; and
                    ``(B) on October 1, 2008, and each October 1 
                thereafter, the amount made available for the preceding 
                fiscal year, as adjusted to reflect changes for the 12-
                month period ending 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) Evaluation funding.--On October 1, 2007, out of any 
        funds in the Treasury not otherwise appropriated, the Secretary 
        of the Treasury shall transfer to the Secretary to carry out 
        the evaluation required under subsection (i), $3,000,000, to 
        remain available until expended.
            ``(3) 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.
            ``(4) 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.
            ``(5) Administrative costs.--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.
            ``(6) 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.''.
    (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 (g); and
            (2) by redesignating subsections (h) through (k) as 
        subsections (g) through (j), respectively.

SEC. 4905. TEAM NUTRITION NETWORK.

    Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is 
amended by striking subsection (l) and inserting the following:
    ``(l) Funding.--
            ``(1) Mandatory funding.--
                    ``(A) In general.--On October 1, 2008, and on each 
                October 1 thereafter through October 1, 2011, 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 $3,000,000, to 
                remain available until expended.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this section the funds transferred under 
                subparagraph (A), without further appropriation.
                    ``(C) Nutritional health of school children.--In 
                allocating funds made available under this paragraph, 
                the Secretary shall give priority to carrying out 
                subsections (a) through (g).
            ``(2) Authorization of appropriations.--In addition to the 
        amounts made available under paragraph (1), there are 
        authorized to be appropriated such sums as are necessary to 
        carry out this section.''.

SEC. 4906. BUY AMERICAN REQUIREMENTS.

    (a) Findings.--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 products 
        for all meals served under the program, including foods 
        products for all meals served under the program, including 
        foods 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.) and the Department of Defense fresh fruit and 
vegetable distribution program.

SEC. 4907. MINIMUM PURCHASES OF FRUITS, VEGETABLES, AND NUTS THROUGH 
              SECTION 32 TO SUPPORT DOMESTIC NUTRITION ASSISTANCE 
              PROGRAMS.

    (a) Minimum Funding for Purchases of Fruits, Vegetables, and 
Nuts.--In lieu of 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 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) $390,000,000 for fiscal year 2008.
            (2) $393,000,000 for fiscal year 2009.
            (3) $399,000,000 for fiscal year 2010.
            (4) $403,000,000 for fiscal year 2011.
            (5) $406,000,000 for fiscal year 2012 and each fiscal year 
        thereafter.
    (b) Form of Purchases.--Fruits, vegetables, and nuts may be 
purchased under this section in frozen, canned, dried, or fresh form.
    (c) Value-Added Products.--The Secretary may offer value-added 
products containing fruits, vegetables, or nuts under this section, 
taking into consideration--
            (1) whether demand exists for the value-added product; and
            (2) the interests of entities that receive fruits, 
        vegetables, and nuts under this section.

SEC. 4908. AGRICULTURAL POLICY AND PUBLIC HEALTH.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to assess whether the agricultural policies of the 
United States have an impact on health, nutrition, overweight and 
obesity, and diet-related chronic disease.
    (b) Requirements.--In conducting the study under subsection (a), 
the Comptroller General of the United States shall--
            (1) review, and evaluate the methodological rigor of, 
        existing literature and studies relating to the subjects of the 
        study required under subsection (a);
            (2) summarize the existing literature and explain the 
        extent, if any, to which the literature shows a clear 
        association or causal relationship between United States 
        agricultural policy and health, nutrition, overweight and 
        obesity, and diet-related chronic diseases; and
            (3) if the existing literature shows that there is a 
        relationship between United States agricultural policy and 
        health, nutrition, overweight and obesity, and diet-related 
        chronic diseases, make recommendations to guide or revise 
        Federal agricultural policies to improve health and reduce 
        obesity and diet-related chronic disease.
    (c) Report.--Not later than 18 months after the date of enactment 
of this section, the Comptroller General of the United States 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.

SEC. 4909. CONFORMING AMENDMENTS TO RENAMING OF FOOD STAMP PROGRAM.

    (a) In General.--
            (1) Section 4 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2013) is amended in the section heading by striking 
        ``food stamp program'' and inserting ``food and nutrition 
        program''.
            (2) Section 5(h)(2)(A) of the Food and Nutrition Act of 
        2007 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food 
        Stamp Disaster Task Force'' and inserting ``Food and Nutrition 
        Disaster Task Force''.
            (3) Section 6 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2015) is amended--
                    (A) in subsection (d)(3), by striking ``eligible 
                for food stamps'' and inserting ``eligible to receive 
                food and nutrition assistance'';
                    (B) in subsection (g), by striking ``food stamps'' 
                and inserting ``food and nutrition assistance'';
                    (C) in subsection (j), in the subsection heading, 
                by striking ``Food Stamp'' and inserting ``Food and 
                Nutrition''; and
                    (D) in subsection (o)--
                            (i) in paragraph (2), by striking ``food 
                        stamp benefits'' and inserting ``food and 
                        nutrition assistance''; and
                            (ii) in paragraph (6)--
                                    (I) in subparagraph (A)--
                                            (aa) in clause (i), by 
                                        striking ``food stamps'' and 
                                        inserting ``food and nutrition 
                                        assistance''; 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 food and 
                                                nutrition assistance''; 
                                                and

                                                    (BB) by striking 
                                                ``food stamp benefits'' 
                                                each place it appears 
                                                and inserting ``food 
                                                and nutrition 
                                                assistance''; and

                                    (II) in subparagraphs (D) and (E), 
                                by striking ``food stamp recipients'' 
                                each place it appears and inserting 
                                ``members of households that receive 
                                food and nutrition assistance''.
            (4) Section 7 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2016) (as amended by section 4202(a)(11)) is amended--
                    (A) in subsection (h)--
                            (i) in paragraph (3)(B)(ii), by striking 
                        ``food stamp households'' and inserting 
                        ``households receiving food and nutrition 
                        assistance''; and
                            (ii) in paragraph (7), by striking ``food 
                        stamp issuance'' and inserting ``food and 
                        nutrition assistance issuance''; and
                    (B) in subsection (j)--
                            (i) in paragraph (2), by striking ``food 
                        stamp benefits'' and inserting ``food and 
                        nutrition assistance benefits''; and
                            (ii) in paragraph (3), by striking ``food 
                        stamp retail'' and inserting ``food and 
                        nutrition assistance retail''.
            (5) Section 9(b)(1) of that Food and Nutrition Act of 2007 
        (7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp 
        households'' and inserting ``households that receive food and 
        nutrition assistance''.
            (6) Section 11 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2020) (as amended by section 4202(b)(9)(B)(III)) is 
        amended--
                    (A) in subsection (e)--
                            (i) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp offices'' and 
                                inserting ``food and nutrition 
                                assistance offices''; and
                                    (II) in subparagraph (B)--
                                            (aa) in clause (iii), by 
                                        striking ``food stamp office'' 
                                        and inserting ``food and 
                                        nutrition assistance office'';
                                            (bb) in clause (v)(II), by 
                                        striking ``food stamps'' and 
                                        inserting ``food and nutrition 
                                        assistance''; and
                                            (cc) in clause (vii), by 
                                        striking ``food stamp offices'' 
                                        and inserting ``food and 
                                        nutrition assistance offices'';
                            (ii) in paragraph (14), by striking ``food 
                        stamps'' and inserting ``food and nutrition 
                        assistance'';
                            (iii) in paragraph (15), by striking ``food 
                        stamps'' and inserting ``food and nutrition 
                        assistance''; and
                            (iv) in paragraph (23)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``Simplified Food Stamp Program'' and 
                                inserting ``Simplified Food and 
                                Nutrition Assistance Program''; and
                                    (II) in subparagraph (A), by 
                                striking ``food stamp benefits'' and 
                                inserting ``food and nutrition 
                                assistance'';
                    (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, food and nutrition assistance'';
                    (C) in subsection (l), by striking ``food stamp 
                participation'' and inserting ``food and nutrition 
                program participation'';
                    (D) in subsections (q) and (r), in the subsection 
                headings, by striking ``Food Stamps'' each place it 
                appears and inserting ``Food and Nutrition 
                Assistance'';
                    (E) in subsection (s), by striking ``food stamp 
                benefits'' each place it appears and inserting ``food 
                and nutrition assistance''; and
                    (F) in subsection (t)(1)--
                            (i) in subparagraph (A), by striking ``food 
                        stamp application'' and inserting ``food and 
                        nutrition assistance application''; and
                            (ii) in subparagraph (B), by striking 
                        ``food stamp benefits'' and inserting ``food 
                        and nutrition assistance''.
            (7) Section 14(b) of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2023(b)) is amended by striking ``food stamp 
        allotments'' and inserting ``food and nutrition assistance''.
            (8) Section 16 of the Food and Nutrition Act of 2007 (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 food and 
                nutrition program'';
                    (B) in subsection (c)(9)(C), by striking ``food 
                stamp caseload'' and inserting ``the caseload under the 
                food and nutrition program''; and
                    (C) in subsection (h)(1)(E)(i), by striking ``food 
                stamp recipients'' and inserting ``households receiving 
                food and nutrition assistance''.
            (9) Section 17 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2026) is amended--
                    (A) in subsection (a)(2), by striking ``food stamp 
                benefits'' each place it appears and inserting ``food 
                and nutrition assistance benefits'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp benefits'' and 
                                inserting ``food and nutrition 
                                assistance''; and
                                    (II) in subparagraph (B)--
                                            (aa) in clause (ii)(II), by 
                                        striking ``food stamp 
                                        recipients'' and inserting 
                                        ``food and nutrition assistance 
                                        recipients'';
                                            (bb) in clause (iii)(I), by 
                                        striking ``the State's food 
                                        stamp households'' and 
                                        inserting ``the number of 
                                        households in the State 
                                        receiving food and nutrition 
                                        assistance''; and
                                            (cc) in clause 
                                        (iv)(IV)(bb), by striking 
                                        ``food stamp deductions'' and 
                                        inserting ``food and nutrition 
                                        assistance deductions'';
                            (ii) in paragraph (2), by striking ``food 
                        stamp benefits'' and inserting ``food and 
                        nutrition assistance''; and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp employment'' and 
                                inserting ``food and nutrition program 
                                employment'';
                                    (II) in subparagraph (B), by 
                                striking ``food stamp recipients'' and 
                                inserting ``food and nutrition 
                                assistance recipients'';
                                    (III) in subparagraph (C), by 
                                striking ``food stamps'' and inserting 
                                ``food and nutrition assistance''; and
                                    (IV) in subparagraph (D), by 
                                striking ``food stamp benefits'' and 
                                inserting ``food and nutrition 
                                assistance benefits'';
                    (C) in subsection (c), by striking ``food stamps'' 
                and inserting ``food and nutrition assistance'';
                    (D) in subsection (d)--
                            (i) in paragraph (1)(B), by striking ``food 
                        stamp benefits'' and inserting ``food and 
                        nutrition assistance'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp allotments'' each 
                                place it appears and inserting ``food 
                                and nutrition assistance''; and
                                    (II) in subparagraph (C)(ii), by 
                                striking ``food stamp benefit'' and 
                                inserting ``food and nutrition 
                                assistance''; and
                            (iii) in paragraph (3)(E), by striking 
                        ``food stamp benefits'' and inserting ``food 
                        and nutrition assistance'';
                    (E) in subsections (e) and (f), by striking ``food 
                stamp benefits'' each place it appears and inserting 
                ``food and nutrition assistance'';
                    (F) in subsection (g), in the first sentence, by 
                striking ``receipt of food stamp'' and inserting 
                ``receipt of food and nutrition assistance''; and
                    (G) in subsection (j), by striking ``food stamp 
                agencies'' and inserting ``food and nutrition program 
                agencies''.
            (10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act 
        of 2007 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking 
        ``food stamps'' and inserting ``food and nutrition 
        assistance''.
            (11) Section 21(d)(3) of the Food and Nutrition Act of 2007 
        (7 U.S.C. 2030(d)(3)) is amended by striking ``food stamp 
        benefits'' and inserting ``food and nutrition assistance''.
            (12) Section 22 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2031) is amended--
                    (A) in the section heading, by striking ``food 
                stamp portion of minnesota family investment plan'' and 
                inserting ``food and nutrition assistance portion of 
                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''.
            (13) Section 26 of the Food and Nutrition Act of 2007 (7 
        U.S.C. 2035) is amended--
                    (A) in the section heading, by striking 
                ``simplified food stamp program'' and inserting 
                ``simplified food and nutrition program''; and
                    (B) in subsection (b), by striking ``simplified 
                food stamp program'' and inserting ``simplified food 
                and nutrition 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 ``food and nutrition 
                program'';
                    (B) by striking ``Food Stamp Act of 1977'' each 
                place it appears and inserting ``Food and Nutrition Act 
                of 2007'';
                    (C) by striking ``Food Stamp Act'' each place it 
                appears and inserting ``Food and Nutrition Act of 
                2007'';
                    (D) by striking ``food stamp'' each place it 
                appears and inserting ``food and nutrition 
                assistance'';
                    (E) by striking ``food stamps'' each place it 
                appears and inserting ``food and nutrition 
                assistance'';
                    (F) in each applicable title, subtitle, chapter, 
                subchapter, and section heading, by striking ``food 
                stamp'' each place it appears and inserting ``food and 
                nutrition assistance'';
                    (G) in each applicable subsection and 
                appropriations heading, by striking ``Food Stamp'' each 
                place it appears and inserting ``Food and Nutrition 
                Assistance'';
                    (H) in each applicable heading other than a title, 
                subtitle, chapter, subchapter, section, subsection, or 
                appropriations heading, by striking ``food stamp'' each 
                place it appears and inserting ``food and nutrition 
                assistance'';
                    (I) in each applicable title, subtitle, chapter, 
                subchapter, and section heading, by striking ``food 
                stamps'' each place it appears and inserting ``food and 
                nutrition assistance'';
                    (J) in each applicable subsection and 
                appropriations heading, by striking ``Food Stamps'' 
                each place it appears and inserting ``Food and 
                Nutrition Assistance''; and
                    (K) 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 ``food and 
                nutrition assistance''.
            (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).
                    (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.).
                    (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 2007 (7 U.S.C. 2011 et 
seq.) shall be considered to be a reference to the ``food and nutrition 
program'' established under that Act.

SEC. 4910. EFFECTIVE AND IMPLEMENTATION DATES.

    (a) General Effective Date.--Except as otherwise provided in this 
title, this title and the amendments made by this title take effect on 
April 1, 2008.
    (b) Implementation of Improvements to Program Benefits.--
            (1) In general.--A State agency may implement the 
        amendments made by part II of subtitle A beginning on a date 
        (as determined by the State agency) during the period beginning 
        on April 1, 2008, and ending on October 1, 2008.
            (2) Certification period.--At the option of a State agency, 
        the State agency may implement 1 or more of the amendments made 
        by sections 4103 and 4104 for a certification period that 
        begins not earlier than the implementation date determined by 
        the State under paragraph (1).

SEC. 4911. APPLICATION.

    (a) In General.--Notwithstanding any other provision of this title 
or amendments made by this title, the amendments made by the provisions 
described in subsection (b) shall be in effect during the period 
beginning on the date of enactment of this Act (or such other effective 
date as is otherwise provided in this title) and ending on September 
30, 2012.
    (b) Provisions.--The provisions referred to in subsection (a) are--
            (1) section 4101;
            (2) section 4102;
            (3) section 4103;
            (4) section 4104;
            (5) section 4107;
            (6) section 4108;
            (7) section 4109;
            (8) section 4110(a)(2);
            (9) section 4208;
            (10) section 4701(a)(3);
            (11) section 4801(g); and
            (12) section 4903.

SEC. 4912. GRAIN PILOT PROGRAM.

    (a) In General.--Section 17A of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766a) is amended by adding at the end the 
following:
    ``(e) Grain Pilot Program.--
            ``(1) Definition of eligible grain and grain product.--In 
        this subsection, the terms `eligible grain' and `grain product' 
        mean a grain or bread product, including but not limited to, 
        baked products and ready-to-eat cereals, having whole grain as 
        the primary ingredient by weight as specified on the label or 
        according to the recipe; except that the Secretary may review 
        and update as necessary the definition established under this 
        section.''
            ``(2) Program.--
                    ``(A) In general.--For the school year beginning 
                July 2008, the Secretary shall carry out a pilot 
                program to provide eligible grain and grain products 
                to--
                            ``(i) up to 125 elementary or secondary 
                        schools operating a program under this section 
                        in each of 6 States; and
                            ``(ii) elementary or secondary schools 
                        operating a program under this section on 1 
                        Indian reservation.
                    ``(B) Requirement.--A school participating in the 
                program shall provide eligible grain and grain products 
                as one of the meal supplement components as described 
                in subsection (d) to students participating in a 
                program authorized under this section.
                    ``(C) Funding to states.--The Secretary shall 
                allocate funds to each participating State based on the 
                prior year claiming pattern for the afterschool snack 
                program in selected schools.
            ``(3) Selection of schools.--In selecting schools to 
        participate in the program under paragraph (2), the Secretary 
        shall--
                    ``(A) ensure each school selected is located in a 
                needy area as defined in subsection (c)(1); and
                    ``(B) solicit applications from interested schools 
                that meet the criteria established in subparagraph (A) 
                and include--
                            ``(i) 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); and
                            ``(ii) such other information as may be 
                        requested by the Secretary.
            ``(4) Report.--Not later than December 31, 2010, the 
        Secretary, acting through the Administrator of the Food and 
        Nutrition Service, 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 pilot program.
            ``(5) Funding.--The Secretary shall use not more than 
        $4,000,000 to carry out this subsection (other than paragraph 
        (4)), of which--
                    ``(A) $2,000,000 shall be from funds made available 
                to carry out the senior farmers' market nutrition 
                program under section 4402 of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 3007); and
                    ``(B) $2,000,000 shall be from funds made available 
                to carry out assistance for community food projects 
                under section 25 of the Food and Nutrition Act of 2007 
                (7 U.S.C. 2034).
            ``(6) Evaluation and administration.--Of the funding made 
        available the Secretary shall use not more than $3,000,000 to 
        carry out the evaluation required in paragraph (4) and for the 
        administration of the program.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of enactment of this Act.

SEC. 4913. REPORT ON FEDERAL HUNGER PROGRAMS.

    Not later than 2 years after the date of enactment of this Act, the 
Comptroller General of the United States shall submit to Congress a 
report that contains--
            (1) a complete list of all Federal programs that seek to 
        alleviate hunger or food insecurity or improve nutritional 
        intake, including programs that support collaboration, 
        coordination, research, or infrastructure related to these 
        issues;
            (2) for each program listed under paragraph (1)--
                    (A) the total amount of Federal funds used to carry 
                out the program in the most recent fiscal year for 
                which comparable data is available;
                    (B) a comparison of the amount described in 
                subparagraph (A) with the amount used to carry out a 
                similar program 10 and 20 years previously;
                    (C) to the maximum extent practicable, the amount 
                of Federal funds used under the program to provide 
                direct food aid to individuals (including the amount 
                used for the costs of administering the program); and
                    (D) a review to determine whether the program has 
                been independently reviewed for effectiveness with 
                respect to achieving the goals of the program, 
                including--
                            (i) the findings of the independent review; 
                        and
                            (ii) for the 10 highest-cost programs, a 
                        determination of whether the review was 
                        conducted in accordance with accepted research 
                        principles;
            (3) for the 10- and 20-year periods before the date of 
        enactment of this Act, and for the most recent year for which 
        data is available, the estimated number of people in the United 
        States who are hungry (or food insecure) or obese; and
            (4) as of the date of submission of the report--
                    (A) the number of employees of the Department of 
                Agriculture, including contractors and other 
                individuals whose salary is paid in full or part by the 
                Department; and
                    (B) the number of farmers and other agricultural 
                producers in the United States that receive some form 
                of assistance from the Department.

SEC. 4914. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        entity that meets the requirements of subsection (b)(2).
            (2) Vulnerable subpopulation.--
                    (A) In general.--The term ``vulnerable 
                subpopulation'' means low-income individuals, 
                unemployed individuals, and other subpopulations 
                identified by the Secretary as being likely to 
                experience special risks from hunger or a special need 
                for job training.
                    (B) Inclusions.--The term ``vulnerable 
                subpopulation'' includes--
                            (i) addicts (as defined in section 102 of 
                        the Controlled Substances Act (21 U.S.C. 802));
                            (ii) at-risk youths (as defined in section 
                        1432 of the Elementary and Secondary Education 
                        Act of 1965 (20 U.S.C. 6472));
                            (iii) individuals that are basic skills 
                        deficient (as defined in section 101 of the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2801));
                            (iv) homeless individuals (as defined in 
                        section 17(b) of the Child Nutrition Act of 
                        1966 (42 U.S.C. 1786(b));
                            (v) homeless youths (as defined in section 
                        387 of the Runaway and Homeless Youth Act (42 
                        U.S.C. 5732a));
                            (vi) individuals with disabilities (as 
                        defined in section 3 of the Americans with 
                        Disabilities Act of 1990 (42 U.S.C. 12102));
                            (vii) low-income individuals (as defined in 
                        section 101 of the Workforce Investment Act of 
                        1998 (29 U.S.C. 2801)); and
                            (viii) older individuals (as defined in 
                        section 102 of the Older Americans Act of 1965 
                        (42 U.S.C. 3002)).
    (b) Food Employment Empowerment and Development Program.--
            (1) Establishment.--The Secretary shall establish a food 
        employment empowerment and development program under which the 
        Secretary shall make grants to eligible entities to encourage 
        the effective use of community resources to combat hunger and 
        the root causes of hunger by creating opportunity through food 
        recovery and job training.
            (2) Eligible entities.--To be eligible to receive a grant 
        under this section, an entity shall be a public agency, or 
        private nonprofit institution, that conducts, or will conduct, 
        2 or more of the following activities as an integral part of 
        the normal operation of the entity:
                    (A) Recovery of donated food from area restaurants, 
                caterers, hotels, cafeterias, farms, or other food 
                service businesses.
                    (B) Distribution of meals or recovered food to--
                            (i) nonprofit organizations described in 
                        section 501(c)(3) of the Internal Revenue Code 
                        of 1986;
                            (ii) entities that feed vulnerable 
                        subpopulations; and
                            (iii) other agencies considered appropriate 
                        by the Secretary.
                    (C) Training of unemployed and underemployed adults 
                for careers in the food service industry.
                    (D) Carrying out of a welfare-to-work job training 
                program in combination with--
                            (i) production of school meals, such as 
                        school meals served under the Richard B. 
                        Russell National School Lunch Act (42 U.S.C. 
                        1751 et seq.) or the Child Nutrition Act of 
                        1966 (42 U.S.C. 1771 et seq.); or
                            (ii) support for after-school programs, 
                        such as programs conducted by community 
                        learning centers (as defined in section 4201(b) 
                        of the Elementary and Secondary Education Act 
                        of 1965 (20 U.S.C. 7171(b))).
            (3) Use of funds.--An eligible entity may use a grant 
        awarded under this section for--
                    (A) capital investments related to the operation of 
                the eligible entity;
                    (B) support services for clients, including staff, 
                of the eligible entity and individuals enrolled in job 
                training programs;
                    (C) purchase of equipment and supplies related to 
                the operation of the eligible entity or that improve or 
                directly affect service delivery;
                    (D) building and kitchen renovations that improve 
                or directly affect service delivery;
                    (E) educational material and services;
                    (F) administrative costs, in accordance with 
                guidelines established by the Secretary; and
                    (G) additional activities determined appropriate by 
                the Secretary.
            (4) Preferences.--In awarding grants under this section, 
        the Secretary shall give preference to eligible entities that 
        perform, or will perform, any of the following activities:
                    (A) Carrying out food recovery programs that are 
                integrated with--
                            (i) culinary worker training programs, such 
                        as programs conducted by a food service 
                        management institute under section 21 of the 
                        Richard B. Russell National School Lunch Act 
                        (42 U.S.C. 1769b-1);
                            (ii) school education programs; or
                            (iii) programs of service-learning (as 
                        defined in section 101 of the National and 
                        Community Service Act of 1990 (42 U.S.C. 
                        12511)).
                    (B) Providing job skills training, life skills 
                training, and case management support to vulnerable 
                subpopulations.
                    (C) Integrating recovery and distribution of food 
                with a job training program.
                    (D) Maximizing the use of an established school, 
                community, or private food service facility or resource 
                in meal preparation and culinary skills training.
                    (E) Providing job skills training, life skills 
                training, and case management support to vulnerable 
                subpopulations.
            (5) Eligibility for job training.--To be eligible to 
        receive job training assistance from an eligible entity using a 
        grant made available under this section, an individual shall be 
        a member of a vulnerable subpopulation.
            (6) Performance indicators.--The Secretary shall establish, 
        for each year of the program, performance indicators and 
        expected levels of performance for meal and food distribution 
        and job training for eligible entities to continue to receive 
        and use grants under this section.
            (7) Technical assistance.--The Secretary may provide such 
        technical assistance to eligible entities as the Secretary 
        considers appropriate to help the eligible entities in carrying 
        out this section.
            (8) Relationship to other law.--
                    (A) Bill emerson good samaritan food donation 
                act.--An action taken by an eligible entity using a 
                grant provided under this section shall be covered by 
                the Bill Emerson Good Samaritan Food Donation Act (42 
                U.S.C. 1791).
                    (B) Food handling guidelines.--In using a grant 
                provided under this section, an eligible entity shall 
                comply with any applicable food handling guideline 
                established by a State or local authority.
            (9) Maximum amount of grant.--The amount of a grant 
        provided to an eligible entity for a fiscal year under this 
        section shall not exceed $200,000.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        such sums as are necessary to carry out this section for each 
        of fiscal years 2008 through 2012.
            (2) Technical assistance.--Of the amount of funds that are 
        made available for a fiscal year under paragraph (1), the 
        Secretary shall use to provide technical assistance under 
        subsection (b)(7) not more than the greater of--
                    (A) 5 percent of the amount of funds that are made 
                available for the fiscal year under paragraph (1); or
                    (B) $1,000,000.

SEC. 4915. INFRASTRUCTURE AND TRANSPORTATION GRANTS TO SUPPORT RURAL 
              FOOD BANK DELIVERY OF HEALTHY PERISHABLE FOODS.

    (a) Purpose.--The purpose of this section is to provide grants to 
State and local food banks and other emergency feeding organizations 
(as defined in section 201A of the Emergency Food Assistance Act of 
1983 (7 U.S.C. 7501))--
            (1) to support and expand the efforts of food banks 
        operating in rural areas to procure and transport highly 
        perishable and healthy food;
            (2) to improve identification of potential providers of 
        donated food and to enhance the nonprofit food donation system, 
        particularly in and for rural areas; and
            (3) to support the procurement of locally produced food 
        from small and family farms and ranches for distribution to 
        needy people.
    (b) Definition of Time-Sensitive Food Product.--
            (1) In general.--In this section, the term ``time-sensitive 
        food product'' means a fresh, raw, or processed food with a 
        short time limitation for safe and acceptable consumption, as 
        determined by the Secretary.
            (2) Inclusions.--The term ``time-sensitive food product'' 
        includes--
                    (A) fruits;
                    (B) vegetables;
                    (C) dairy products;
                    (D) meat;
                    (E) fish; and
                    (F) poultry.
    (c) Grant Program.--
            (1) In general.--The Secretary shall establish a program 
        under which the Secretary shall provide grants, on a 
        competitive basis, to expand the capacity and infrastructure of 
        food banks, statewide food bank associations, and regional food 
        bank collaboratives that operate in rural areas to improve the 
        capacity of the food banks to receive, store, distribute, 
        track, collect, and deliver time-sensitive food products made 
        available from national and local food donors.
            (2) Maximum amount.--The maximum amount of a grant provided 
        under this subsection shall be not more than $1,000,000 for a 
        fiscal year.
            (3) Use of funds.--A food bank may use a grant provided 
        under this section for--
                    (A) the development and maintenance of a 
                computerized system for the tracking of time-sensitive 
                food products;
                    (B) capital, infrastructure, and operating costs 
                associated with--
                            (i) the collection and transportation of 
                        time-sensitive food products; or
                            (ii) the storage and distribution of time-
                        sensitive food products;
                    (C) improving the security and diversity of the 
                emergency food distribution and recovery systems of the 
                United States through the support of--
                            (i) small, midsize, or family farms and 
                        ranches;
                            (ii) fisheries and aquaculture; and
                            (iii) donations from local food producers 
                        and manufacturers to persons in need;
                    (D) providing recovered healthy foods to food banks 
                and similar nonprofit emergency food providers to 
                reduce hunger in the United States; and
                    (E) improving the identification of--
                            (i) potential providers of donated foods;
                            (ii) potential nonprofit emergency food 
                        providers; and
                            (iii) persons in need of emergency food 
                        assistance in rural areas.
    (d) Audits.--The Secretary shall establish fair and reasonable 
procedures to audit the use of funds made available to carry out this 
section.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2008 through 2012.

                            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. PURPOSES OF LOANS.

    Section 303(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1923(a)(1)) is amended--
            (1) in subparagraph (D), by striking ``or'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(F) refinancing guaranteed farm ownership loans 
                of qualified beginning farmers and ranchers under this 
                subtitle that were used to carry out purposes described 
                in subparagraphs (A) through (E).''.

SEC. 5003. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4), by inserting ``or conversion 
                to a certified organic farm in accordance with the 
                Organic Foods Production Act of 1990 (7 U.S.C. 6501 et 
                seq.)'' after ``systems'';
                    (B) in paragraph (5), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (6) as paragraph 
                (7); and
                    (D) by inserting after paragraph (5) the following:
            ``(6) the implementation of 1 or more practices under the 
        environmental quality section of the comprehensive stewardship 
        incentives program established under subchapter A of chapter 6 
        of subtitle D of title XII of the Food Security Act of 1985; 
        and''; and
            (2) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) 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;
            ``(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 (16 U.S.C. 3812); 
        and
            ``(4) producers who have a certification from the Natural 
        Resources Conservation Service issued pursuant to section 
        1240B(d) of the Food Security Act of 1985.''.

SEC. 5004. 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. 5005. 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 inserting ``and socially 
        disadvantaged farmers and ranchers'' after ``ranchers'';
            (2) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Principal.--
                    ``(A) Purchase price of $500,000 or less.--Each 
                loan made under this section for a purchase price that 
                is $500,000 or less, shall be in an amount that does 
                not exceed 45 percent of the lesser of--
                            ``(i) the purchase price; or
                            ``(ii) the appraised value of the farm or 
                        ranch to be acquired.
                    ``(B) Purchase price greater than $500,000.--Each 
                loan made under this section for a purchase price that 
                is greater than $500,000, shall be in an amount that 
                does not exceed 45 percent of the lesser of--
                            ``(i) $500,000; or
                            ``(ii) the appraised value of the farm or 
                        ranch to be acquired.'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(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 400 
                basis points from the interest rate for regular farm 
                ownership loans under this subtitle; or
                    ``(B) 2 percent.''; and
                    (C) in paragraph (3), by striking ``15'' and 
                inserting ``20'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``10 percent'' 
                and inserting ``5 percent'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
                    (D) in subparagraph (B) of paragraph (2) (as so 
                redesignated), by striking ``15-year'' and inserting 
                ``20-year''; and
            (4) in subsection (d)--
                    (A) in paragraph (3), by striking the ``and'' at 
                the end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; 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 
        participation loans 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.''.

SEC. 5006. BEGINNING 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 CONTRACT LAND SALES PROGRAM.

    ``(a) In General.--Subject to subsection (c), the Secretary shall, 
in accordance with each condition described in subsection (b), provide 
a prompt payment guarantee for any loan made by a private seller of 
farmland or ranch land to a qualified beginning farmer or rancher on a 
contract land sale basis.
    ``(b) Conditions for Guarantee.--To receive a guarantee for a loan 
by the Secretary under subsection (a)--
            ``(1) the qualified beginning farmer or rancher shall--
                    ``(A) on the date on which the contract land sale 
                that is the subject of the loan is complete, own and 
                operate the farmland or ranch land that is the subject 
                of the contract land sale;
                    ``(B) on the date on which the contract land sale 
                that is the subject of the loan is commenced--
                            ``(i) 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
                            ``(ii) demonstrate to the Secretary that 
                        the qualified beginning farmer or rancher is 
                        unable to obtain sufficient credit without a 
                        guarantee to finance any actual need of the 
                        qualified beginning farmer or rancher at a 
                        reasonable rate or term;
            ``(2) the loan made by the private seller of farmland or 
        ranch land to the qualified beginning farmer or rancher on a 
        contract land sale basis shall meet applicable underwriting 
        criteria, as determined by the Secretary; and
            ``(3) to carry out the loan--
                    ``(A) a commercial lending institution shall agree 
                to serve as an escrow agent; or
                    ``(B) the private seller of farmland or ranch land, 
                in cooperation with the qualified beginning farmer or 
                rancher, shall use an appropriate alternate 
                arrangement, as determined by the Secretary.
    ``(c) Limitations.--
            ``(1) Down payment.--The Secretary shall not guarantee a 
        loan made by a private seller of farmland or ranch land to a 
        qualified beginning farmer or rancher under subsection (a) if 
        the contribution of the qualified beginning farmer or rancher 
        to the down payment for the farmland or ranch land that is the 
        subject of the contract land sale would be an amount less than 
        5 percent of the purchase price of the farmland or ranch land.
            ``(2) Maximum purchase price.--The Secretary shall not 
        guarantee a loan made by a private seller of farmland or ranch 
        land to a qualified beginning farmer or rancher under 
        subsection (a) if the purchase price or the appraisal value of 
        the farmland or ranch land that is the subject of the contract 
        land sale is an amount greater than $500,000.
    ``(d) Period of Guarantee.--The Secretary shall guarantee a loan 
made by a private seller of farmland or ranch land to a qualified 
beginning farmer or rancher under subsection (a) for a 10-year period 
beginning on the date on which the Secretary guarantees the loan.
    ``(e) Prompt Payment Guarantee.--The Secretary shall provide to a 
private seller of farmland or ranch land who makes a loan to a 
qualified beginning farmer or rancher that is guaranteed by the 
Secretary, a prompt payment guarantee, which shall cover--
            ``(1) 3 amortized annual installments; or
            ``(2) 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).''.

                      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''; and
            (3) in subsection (c)(1)(C), by striking ``6'' and 
        inserting ``7''.

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

    Section 313(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1943(a)(1)) is amended by striking ``$200,000'' and 
inserting ``$300,000''.

SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGIBLE FOR GUARANTEED 
              ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1949) is repealed.

                 Subtitle C--Administrative Provisions

SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS 
              PILOT PROGRAM.

    The Consolidated Farm and Rural Development Act is amended by 
adding after section 333A (7 U.S.C. 1983a) 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 area in which the eligible participant is 
                        located; or
                            ``(ii) 200 percent of the most recent 
                        annual Federal Poverty Income Guidelines 
                        published by the Department of Health and Human 
                        Services for that area.
            ``(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
                    ``(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.--Each demonstration program shall 
                establish a reserve fund consisting of a non-Federal 
                match of 25 percent of the total amount of the grant 
                awarded to the demonstration program under this 
                section.
                    ``(B) Federal funds.--After a demonstration program 
                has deposited in the reserve fund the non-Federal 
                matching funds described in subparagraph (A), the 
                Secretary shall provide to the demonstration program 
                for deposit in the reserve fund the total amount of the 
                grant awarded under this section.
                    ``(C) Use of funds.--Of funds deposited in a 
                reserve fund under subparagraphs (A) and (B), a 
                demonstration program--
                            ``(i) may use up to 20 percent for 
                        administrative expenses; and
                            ``(ii) shall use the remainder to make 
                        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 as additional matching funds for, or to 
                administer, the demonstration program.
                    ``(E) Guidance.--The Secretary shall implement 
                guidance regarding the investment requirements of 
                reserve funds established under this paragraph.
            ``(4) Individual development accounts.--
                    ``(A) In general.--A qualified entity receiving a 
                grant under this section shall establish and administer 
                an individual development account for each eligible 
                participant.
                    ``(B) Contract requirements.--To be eligible to 
                receive funds under this section from a qualified 
                entity, each eligible participant shall enter into a 
                contract with a qualified entity under which--
                            ``(i) the eligible participant shall 
                        agree--
                                    ``(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; and
                                    ``(II) to use the funds described 
                                in subclause (I) only for 1 or more 
                                eligible expenditures described in 
                                paragraph (5)(A); and
                            ``(ii) the qualified entity shall agree--
                                    ``(I) to deposit not later than 1 
                                month after a deposit described in 
                                clause (i)(I) at least a 100-percent, 
                                and up to a 300-percent, match of that 
                                amount into the individual development 
                                account established for the eligible 
                                participant;
                                    ``(II) with uses of funds proposed 
                                by the eligible participant; and
                                    ``(III) to complete qualified 
                                financial training.
                    ``(C) Limitation.--
                            ``(i) In general.--A qualified entity 
                        administering a demonstration program may 
                        provide not more than $9,000 for each fiscal 
                        year in matching funds to any 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.
                    ``(D) Interest.--Any interest earned on amounts in 
                an individual development account shall be compounded 
                with amounts otherwise deposited in the individual 
                development account.
            ``(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 for up to 
                        180 days after the date of purchase of 
                        farmland;
                            ``(iii) to purchase farm equipment or 
                        production, storage, or marketing 
                        infrastructure or buy into an existing value-
                        added business;
                            ``(iv) to purchase breeding stock or fruit 
                        or nut trees or trees to harvest for timber;
                            ``(v) to pay training or mentorship 
                        expenses to facilitate specific entrepreneurial 
                        agricultural activities; and
                            ``(vi) for other similar expenditures, as 
                        determined by the Secretary.
                    ``(B) Timing.--
                            ``(i) In general.--An eligible expenditure 
                        may be made 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).
                            ``(ii) Unexpended funds.--Funds remaining 
                        in an individual development account after the 
                        period described in clause (i) shall revert to 
                        the reserve fund of the demonstration program.
                    ``(C) Prohibition.--An eligible participant that 
                uses funds in an individual development account for an 
                eligible expenditure described in subparagraph 
                (A)(viii) shall not be eligible to receive funds for a 
                substantially similar purpose (as determined by the 
                Secretary) under the national organic program 
                established under the Organic Foods Production Act of 
                1990 (7 U.S.C. 6501 et seq.).
    ``(c) Applications.--
            ``(1) Announcement of demonstration programs.--Not later 
        than 180 days after the date of enactment of this section, the 
        Secretary shall--
                    ``(A) publicly announce the availability of funding 
                under this section for demonstration programs; and
                    ``(B) ensure that applications to carry out 
                demonstration programs are widely available to 
                qualified entities.
            ``(2) Submission.--Not later than 270 days after the date 
        of enactment of this section, a qualified entity may submit to 
        the Secretary an application to carry out a demonstration 
        program.
            ``(3) Criteria.--In considering whether to approve an 
        application to carry out a demonstration program, the Secretary 
        shall assess--
                    ``(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 project;
                    ``(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 
                non-Federal public sector and private sources that are 
                formally committed to the demonstration program as 
                matching contributions;
                    ``(E) the adequacy of the plan for providing 
                information relevant to an evaluation of the 
                demonstration program; and
                    ``(F) such other factors as the Secretary considers 
                to be appropriate.
            ``(4) Preferences.--In considering an application to 
        conduct a demonstration program under this part, 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 and ranchers; and
                    ``(B) expertise in dealing with financial 
                management aspects of farming.
            ``(5) Approval.--
                    ``(A) In general.--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.
                    ``(B) Diversity.--The Secretary shall ensure, to 
                the maximum extent practicable, that approved 
                applications involve demonstration programs for a range 
                of geographic areas and diverse populations.
            ``(6) Term of authority.--If the Secretary approves an 
        application to carry out a demonstration program, the Secretary 
        shall authorize the applying qualified entity to carry out the 
        project for a period of 5 years, plus an additional 2 years for 
        the making of eligible expenditures in accordance with 
        subsection (b)(5)(B).
    ``(d) Grant Authority.--
            ``(1) In general.--For each year during which a 
        demonstration program is carried out under this section, the 
        Secretary shall make a grant to the qualified entity authorized 
        to carry out the demonstration program.
            ``(2) Maximum amount of grants.--The aggregate amount of 
        grant funds provided to a demonstration program carried out 
        under this section shall not exceed $300,000.
    ``(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, and annually thereafter until 
                the conclusion of the demonstration program, the 
                qualified entity 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 and eligible participants;
                            ``(iii) the number and characteristics of 
                        individuals that have made 1 or more deposits 
                        into an individual development account;
                            ``(iv) the amounts in the reserve fund 
                        established with respect to the program;
                            ``(v) the amounts deposited in the 
                        individual development accounts;
                            ``(vi) the amounts withdrawn from the 
                        individual development accounts and the 
                        purposes for which the amounts were withdrawn;
                            ``(vii) the balances remaining in the 
                        individual development accounts;
                            ``(viii) 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) 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.
    ``(g) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $10,000,000 for 
        each of fiscal years 2008 through 2012.
            ``(2) Administration and training.--Of the total funds made 
        available under paragraph (1) and in addition to any other 
        available funds, not more than 10 percent may be used by the 
        Secretary--
                    ``(A) to administer the pilot program; and
                    ``(B) to provide training, or hire 1 or more 
                consultants to provide training, to instruct qualified 
                entities in carrying out demonstration programs, 
                including payment of reasonable costs incurred with 
                respect to that training for--
                            ``(i) staff or consultant travel;
                            ``(ii) lodging;
                            ``(iii) meals; and
                            ``(iv) materials.''.

SEC. 5202. 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 inserting ``and 
                        socially disadvantaged farmers and ranchers'' 
                        after ``and ranchers''; and
                    (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 inserting ``and 
                        socially disadvantaged farmers and ranchers'' 
                        after ``and 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 the Consolidated 
Farm and Rural Development 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. 5203. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    Subtitle D of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 344 (7 U.S.C. 1992) 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 practicable period of time.
    ``(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. 5204. 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'' 
        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. 5205. INTEREST RATE REDUCTION PROGRAM.

    Section 351(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1999(a)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Availability'' after ``Establishment'';
            (2) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Establishment.--The Secretary''; and
            (3) by adding at the end the following:
            ``(2) Availability.--The program established under 
        paragraph (1) shall be available with respect to new guaranteed 
        operating loans or guaranteed operating loans restructured 
        under this title after the date of enactment of this paragraph 
        that meet the requirements of subsection (b).''.

SEC. 5206. DEFERRAL OF SHARED APPRECIATION RECAPTURE AMORTIZATION.

    Section 353(e)(7)(D) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2001(e)(7)(D)) is amended--
            (1) in the subparagraph heading, by inserting ``and 
        deferral'' after ``Reamortization''; and
            (2) in clause (ii)--
                    (A) by redesignating subclause (II) as subclause 
                (III); and
                    (B) by inserting after subclause (I) the following:
                                    ``(II) Term of deferral.--The term 
                                of a deferral under this subparagraph 
                                shall not exceed 1 year.''.

SEC. 5207. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM 
              ACTIVITIES.

    Subtitle D of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 364 (7 U.S.C. 2006f) the following:

``SEC. 365. RURAL DEVELOPMENT, HOUSING, 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, housing, or 
farm loan programs.''.

                        Subtitle D--Farm Credit

SEC. 5301. AUTHORITY TO PASS ALONG COST OF INSURANCE PREMIUMS.

    (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 the Farm Credit Act 
of 1971 (12 U.S.C. 2277a-7(10)) is amended by inserting ``and section 
1.12(b)'' after ``part''.

SEC. 5302. 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. 5303. CONFIRMATION OF CHAIRMAN.

    Section 5.8(a) of the Farm Credit Act of 1971 (12 U.S.C. 2242(a)) 
is amended in the fifth sentence by inserting ``by and with the advice 
and consent of the Senate,'' after ``designated by the President,''.

SEC. 5304. 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. 2277a--4(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:
                    ``(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 redesignated by paragraph (3)), by 
        striking ``annual''; and
            (6) in paragraph (4) (as redesignated by paragraph (3))--
                    (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 investments, that is 
                guaranteed--''.
    (b) Amount in Fund Exceeding Secure Base Amount.--Section 5.55(b) 
of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(b)) is amended by 
striking ``annual''.
    (c) Secure Base Amount.--Section 5.55(c) of the Farm Credit Act of 
1971 (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 the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(d)) is amended--
            (1) in the paragraph heading, by striking ``Principal 
        Outstanding'' 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) by inserting ``all loans or investments made'' before 
        ``by'' the first place it appears in each of paragraph (1), 
        (2), and (3); and
            (4) in 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 the Farm Credit Act of 1971 (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 (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:
                            ``(iii) Termination of account.--On 
                        disbursement of 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.''.
                    (C) by striking subparagraph (F).

SEC. 5305. 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--
            ``(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 the Farm Credit Act of 1971 
(12 U.S.C. 2277a-5(c)) 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 the Farm Credit 
Act of 1971 (12 U.S.C. 2277a-5) is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 5306. 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 the Farm 
Credit Act of 1971 (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 the Farm Credit 
Act of 1971 (12 U.S.C. 2279aa-8) is amended--
            (1) in subsection (a)--
                    (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 condition.--
        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 the Farm 
Credit Act of 1971 (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. 5307. 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 short- and intermediate-term loans 
                under title II in the geographic area described in 
                subsection (b) may make long-term 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 
                similar 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).''.
    (c) 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).''.
    (d) 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
                    (B) by striking ``, subject to such limitations'' 
                and all that follows through the end of the paragraph 
                and inserting a period.
    (e) Effective Date.--The amendments made by this section take 
effect on January 1, 2010.

                       Subtitle E--Miscellaneous

SEC. 5401. 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).''.

SEC. 5402. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

    (a) Definitions.--In this section:
            (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) 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.
            (3) 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 (g)) shall be made exclusively from funds made 
        available under subsection (h).
            (2) Maximum amount.--The total amount of payments and debt 
        relief pursuant to an action 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 denied that determination.
    (e) Loan Data.--
            (1) Report to person submitting petition.--Not later than 
        60 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 made 
        within the claimant's county or adjacent county by the 
        Department during the period beginning on January 1 of the year 
        preceding the year or years covered by the complaint and ending 
        on December 31 of year following such year or years. Such 
        report shall contain information on all persons whose 
        application for a loan was accepted, including--
                    (A) the race of the applicant;
                    (B) the date of application;
                    (C) the date of the loan decision;
                    (D) the location of the office making the loan 
                decision; and
                    (E) all data relevant to the process of deciding on 
                the loan.
            (2) No personally identifiable information.--The reports 
        provided pursuant to paragraph (1) shall not contain any 
        information that would identify any person that applied for a 
        loan from the Department of Agriculture.
    (f) Expedited Resolutions Authorized.--Any person filing a 
complaint under this Act for discrimination in the application for, or 
making or servicing of, a farm loan, at his or her discretion, may seek 
liquidated damages of $50,000, discharge of the debt that was incurred 
under, or affected by, the discrimination that is 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--
            (1) if only such damages, debt discharge, and tax payment 
        are sought, the complainant shall be able to prove his or her 
        case by substantial evidence (as defined in section 1(l) of the 
        consent decree); and
            (2) 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.
    (g) Limitation on Foreclosures.--Notwithstanding any other 
provision of law, the Secretary may not begin acceleration on or 
foreclosure of a loan if the borrower is a Pigford claimant and, in an 
appropriate administrative proceeding, makes a prima facie case that 
the foreclosure is related to a Pigford claim.
    (h) 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.

SEC. 5403. SENSE OF THE SENATE RELATING TO CLAIMS BROUGHT BY SOCIALLY 
              DISADVANTAGED FARMERS OR RANCHERS.

    It is the sense of the Senate that the Secretary should resolve all 
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 in an expeditious and just manner.

SEC. 5404. 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--
            (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)''.

               TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

        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 
``2007'' and inserting ``2012''.

SEC. 6002. 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 
``2007'' and inserting ``2012''.

SEC. 6003. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN GUARANTEES.

    Section 306(a)(19) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(19)) is amended by striking subparagraph (C) and 
inserting the following:
                    ``(C) Child day care facilities.--
                            ``(i) In general.--Of the funds of the 
                        Commodity Credit Corporation, the Secretary 
                        shall use for the costs of grants, loans, and 
                        loan guarantees to pay the Federal share of the 
                        cost of developing and constructing day care 
                        facilities for children in rural areas, as 
                        determined by the Secretary, $40,000,000 for 
                        fiscal year 2008, to remain available until 
                        expended.
                            ``(ii) Relationship to other funding and 
                        authorities.--The funds and authorities made 
                        available under this subparagraph shall be in 
                        addition to other funds and authorities 
                        relating to development and construction of 
                        rural day care facilities.''.

SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 306(a)(22) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(22)) is amended--
            (1) in subparagraph (B), by striking ``2002 (115 Stat. 
        719)'' and inserting ``2008''; and
            (2) in subparagraph (C), by striking ``$15,000,000 for 
        fiscal year 2003'' and inserting ``$20,000,000 for fiscal year 
        2008''.

SEC. 6005. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

    Section 306(a)(23)(E) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(23)(E)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 6006. RURAL HOSPITAL LOANS AND LOAN GUARANTEES.

    Section 306(a)(24) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(24)) is amended by adding at the end the 
following:
                    ``(C) Rural hospitals.--
                            ``(i) In general.--Of the funds of the 
                        Commodity Credit Corporation, the Secretary 
                        shall use for the costs of loans and loan 
                        guarantees to pay the Federal share of the cost 
                        of rehabilitating or improving hospitals that 
                        have not more than 100 acute beds in rural 
                        areas, as determined by the Secretary, 
                        $50,000,000 for fiscal year 2008, to remain 
                        available until expended, of which not less 
                        than $25,000,000 shall be for use at hospitals 
                        in rural areas with not more than 50 acute 
                        beds.
                            ``(ii) Priority.--In making loans and loan 
                        guarantees under this subparagraph, the 
                        Secretary shall give priority to hospitals 
                        for--
                                    ``(I) the provision of facilities 
                                to improve and install patient care, 
                                health quality outcomes, and health 
                                information technology, including 
                                computer hardware and software, 
                                equipment for electronic medical 
                                records, handheld computer technology, 
                                and equipment that improves 
                                interoperability; or
                                    ``(II) the acquisition of equipment 
                                and software purchased collectively in 
                                a cost effective manner to address 
                                technology needs.
                            ``(iii) Relationship to other funding and 
                        authorities.--The funds and authorities made 
                        available under this subparagraph shall be in 
                        addition to other funds and authorities 
                        relating to rehabilitation and improvement of 
                        hospitals described in clause (i).''.

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 (B)(ii), by striking ``75 percent'' and 
        inserting ``95 percent''; and
            (2) in subparagraph (C), by striking ``2007'' and inserting 
        ``2012''.

SEC. 6008. COMMUNITY FACILITY LOANS AND GRANTS FOR FREELY ASSOCIATED 
              STATES AND OUTLYING AREAS.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
            ``(26) Community facility loans and grants for freely 
        associated states and outlying areas.--
                    ``(A) In general.--Subject to subparagraph (B), of 
                the amount that is made available for each fiscal year 
                for each of the community facility loan and grant 
                programs established under paragraphs (1), (19), (20), 
                (21), and (25), the Secretary shall allocate 0.5 
                percent of the amount for making loans or grants (as 
                applicable) under the program to eligible entities that 
                are located in freely associated States or outlying 
                areas (as those terms are defined in section 1121(c) of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6331(c)) that are subject to the jurisdiction of 
                the United States and are otherwise covered by this 
                Act.
                    ``(B) Reallocation.--If the Secretary determines 
                that a sufficient number of applications for loans or 
                grants for a program described in subparagraph (A) have 
                not been received from eligible entities for a fiscal 
                year during the 180-day period beginning on October 1 
                of the fiscal year, the Secretary shall reallocate any 
                unused funds to make loans or grants (as applicable) 
                under the program to eligible entities that are located 
                in States.''.

SEC. 6009. PRIORITY FOR COMMUNITY FACILITY LOAN AND GRANT PROJECTS WITH 
              HIGH NON-FEDERAL SHARE.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 6008) is amended by adding at 
the end the following:
            ``(27) Priority for community facility loan and grant 
        projects with high non-federal share.--In carrying out the 
        community facility loan and grant programs established under 
        paragraphs (1), (19), (20), (21), and (25), the Secretary shall 
        give priority to projects that will be carried out with a non-
        Federal share of funds that is substantially greater than the 
        minimum requirement, as determined by the Secretary by 
        regulation.''.

SEC. 6010. SEARCH GRANTS.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 6009) is amended by adding at 
the end the following:
            ``(28) Applications filed by eligible communities.--
                    ``(A) Eligible community.--In this paragraph, the 
                term `eligible community' means a community that, as 
                determined by the Secretary--
                            ``(i) has a population of 2,500 or fewer 
                        inhabitants; and
                            ``(ii) is financially distressed.
                    ``(B) Applications.--In the case of water and waste 
                disposal and wastewater facilities grant programs 
                authorized under this title, the Secretary may accept 
                applications from eligible communities for grants for 
                feasibility study, design, and technical assistance.
                    ``(C) Terms.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the terms of the grant programs 
                        described in subparagraph (B) shall apply to 
                        the applications described in that 
                        subparagraph.
                            ``(ii) Exceptions.--Grants made pursuant to 
                        applications described in subparagraph (B)--
                                    ``(I) shall fund up to 100 percent 
                                of eligible project costs; and
                                    ``(II) shall be subject to the 
                                least documentation requirements 
                                practicable.
                            ``(iii) Processing.--The Secretary shall 
                        process applications received under 
                        subparagraph (B) in the same manner as other 
                        similar grant applications.
                    ``(D) Funding.--In addition to any other funds made 
                available for technical assistance, the Secretary may 
                use to carry out this paragraph not more than 4 percent 
                of the total amount of funds made available for a 
                fiscal year for water, waste disposal, and essential 
                community facilities.''.

SEC. 6011. 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 ``2007'' and 
inserting ``2012''.

SEC. 6012. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    Section 306D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926d) is amended--
            (1) in subsection (a)--
                    (A) by striking ``make grants to the State'' and 
                inserting ``make grants to--
            ``(1) the State'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
            ``(2) the Denali Commission to improve solid waste disposal 
        sites that are contaminating, or threaten to contaminate, rural 
        drinking water supplies in the State of Alaska.'';
            (2) in subsection (c)--
                    (A) in the subsection heading by striking ``With 
                the State of Alaska''; and
                    (B) by striking ``the State of Alaska'' and 
                inserting ``the appropriate grantee under subsection 
                (a)''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by striking ``2007'' and 
                inserting ``2013'';
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following:
            ``(3) Denali commission.--Not more than 5 percent of the 
        amount made available under paragraph (1) for a fiscal year may 
        be transferred to the Denali Commission to improve solid waste 
        disposal sites that are contaminating, or threaten to 
        contaminate, rural drinking supplies in the State of Alaska.''.

SEC. 6013. GRANTS TO DEVELOP WELLS IN RURAL AREAS.

    (a) 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(d) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926e(d)) is amended by striking ``2007'' and inserting 
``2012''.
    (b) Grants To Develop Area Wells in Isolated Areas.--Subtitle A of 
the Consolidated Farm and Rural Development Act is amended by inserting 
after section 306E (7 U.S.C. 1926e) the following:

``SEC. 306F. GRANTS TO DEVELOP AREA WELLS IN ISOLATED AREAS.

    ``(a) Definition of Isolated Area.--In this section, the term 
`isolated area' means an area--
            ``(1) in which the development of a traditional water 
        system is not financially practical due to--
                    ``(A) the distances or geography of the area; and
                    ``(B) the limited number of households present to 
                be served; and
            ``(2) that is not part of a city of more than 1,000 
        inhabitants.
    ``(b) Grants.--The Secretary may make grants to nonprofit 
organizations to develop and construct household, shared, and community 
water wells in isolated rural areas.
    ``(c) Priority in Awarding Grants.--In awarding grants under this 
section, the Secretary shall give priority to applicants that have 
demonstrated experience in developing safe and similar projects 
including household, shared, and community wells in rural areas.
    ``(d) Requirements.--
            ``(1) In general.--As a condition on receipt of a grant 
        under this section, the water from wells funded under this 
        section shall be tested annually for water quality, as 
        determined by the Secretary.
            ``(2) Results.--The results of tests under paragraph (1) 
        shall be made available to--
                    ``(A) the users of the wells; and
                    ``(B) the appropriate State agency.
    ``(e) Limitation.--The amount of a grant under this section shall 
not exceed the lesser of--
            ``(1) $50,000; or
            ``(2) the amount that is 75 percent of the cost of a single 
        well and associated system.
    ``(f) Prohibition.--The Secretary may not award grants under this 
section in any area in which a majority of the users of a proposed well 
have a household income that is greater than the nonmetropolitan median 
household income of the State or territory, as determined by the 
Secretary.
    ``(g) Administrative Expenses.--Not more than 10 percent of the 
amount of a grant made under this section may be used to pay 
administrative expenses associated with providing project assistance, 
as determined by the Secretary.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 6014. COOPERATIVE EQUITY SECURITY GUARANTEE.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended--
            (1) in the first sentence of subsection (a), by inserting 
        ``and private investment funds that invest primarily in 
        cooperative organizations'' after ``or nonprofit''; and
            (2) 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 under 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 
                                under subsection (a)(1), as determined 
                                by the Secretary.''.

SEC. 6015. 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 ``a nationally 
        coordinated, regionally or State-wide operated project'' and 
        inserting ``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 
                        cooperative and economic development needs of 
                        rural areas; 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).''.
    (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) 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 more 
        qualified academic institutions in each fiscal year to conduct 
        research on the national economic effects of all types of 
        cooperatives.''.
    (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.--In 
                this paragraph, the term `socially disadvantaged' 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 that 
                        serve socially disadvantaged communities, a 
                        majority of the boards of directors or 
                        governing boards of which are comprised of 
                        socially disadvantaged individuals.
                            ``(ii) Insufficient applications.--To the 
                        extent that the Secretary determines that funds 
                        reserved under clause (i) would not be used for 
                        grants described in that clause due to 
                        insufficient applications for the grants, 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 
``2007'' and inserting ``2012''.

SEC. 6016. 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 ``2007'' and inserting 
``2012''.

SEC. 6017. LOCALLY-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-produced agricultural food products.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Locally-produced agricultural food 
                        product.--The term `locally-produced 
                        agricultural food product' means any 
                        agricultural product raised, produced, and 
                        distributed in--
                                    ``(I) the locality or region in 
                                which the final agricultural product is 
                                marketed, so that the total distance 
                                that the agricultural product is 
                                transported is less than 300 miles from 
                                the origin of the agricultural product; 
                                or
                                    ``(II) the State in which the 
                                agricultural product is produced.
                            ``(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 or a high incidence of a diet-
                                related disease as compared to the 
                                national average, including obesity; 
                                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, acting 
                        through the Administrator of the Rural 
                        Business-Cooperative Service in coordination 
                        with the Administration of the Agricultural 
                        Marketing Service, shall make or guarantee 
                        loans to individuals, cooperatives, businesses, 
                        and other entities to establish and facilitate 
                        enterprises that process, distribute, 
                        aggregate, store, and market locally-produced 
                        agricultural food products.
                            ``(ii) Requirement.--The recipient of a 
                        loan or loan guarantee under clause (i) shall 
                        agree to make a reasonable effort, as 
                        determined by the Secretary, to work with 
                        retail and institutional facilities to which 
                        the recipient sells locally-produced 
                        agricultural food products to inform the 
                        consumers of the retail or institutional 
                        facilities that the consumers are purchasing or 
                        consuming locally-produced agricultural food 
                        products.
                            ``(iii) Priority.--In making or 
                        guaranteeing a loan under clause (i), the 
                        Secretary shall give priority to--
                                    ``(I) projects that support 
                                community development and farm and 
                                ranch income by marketing, 
                                distributing, storing, aggregating, or 
                                processing a locally-produced 
                                agricultural food product; and
                                    ``(II) projects that have 
                                components benefitting underserved 
                                communities.
                            ``(iv) Retail or institutional 
                        facilities.--The Secretary may allow recipients 
                        of loans or loan guarantees under clause (i) to 
                        provide up to $250,000 in loan or loan 
                        guarantee funds per retail or institutional 
                        facility for an underserved community in a 
                        rural or nonrural area to help retail 
                        facilities--
                                    ``(I) to modify and update the 
                                facilities to accommodate locally-
                                produced agricultural food products; 
                                and
                                    ``(II) to provide outreach to 
                                consumers about the sale of locally-
                                produced agricultural food products.
                            ``(v) 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 that describes projects carried 
                        out using loans or loan guarantees made under 
                        clause (i), including--
                                    ``(I) the characteristics of the 
                                communities served by the projects; and
                                    ``(II) benefits of the projects.
                            ``(vi) 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. 6018. 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.--
            ``(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 sustainable agriculture technical assistance 
                programs; and
                    ``(D) provides the technical assistance through 
                toll-free hotlines, 1 or more websites, publications, 
                and workshops.
            ``(2) Establishment.--The Secretary shall establish a 
        national appropriate technology transfer for rural areas 
        program to assist agricultural producers that are seeking 
        information to help the agricultural producers--
                    ``(A) reduce input costs;
                    ``(B) conserve energy resources;
                    ``(C) diversify operations through new energy crops 
                and energy generation facilities; and
                    ``(D) expand markets for the agricultural 
                commodities produced by the producers through use of 
                practices involving sustainable agriculture.
            ``(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 
                organization.
                    ``(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. 6019. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) (as amended by section 6019) is amended by adding at the 
end the following:
    ``(j) Rural Economic Area Partnership Zones.--For the period 
beginning on the date of enactment of this subsection and ending on 
September 30, 2012, the Secretary shall carry out rural economic area 
partnership zones in the States of New York, North Dakota, and Vermont, 
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.''.

SEC. 6020. 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) and 
                (C), 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, except 
                        that, for all activities under programs in the 
                        rural development mission area within the areas 
                        of the County of Honolulu, Hawaii, and the 
                        Commonwealth of Puerto Rico, the Secretary may 
                        designate any portion of the areas as a rural 
                        area or eligible rural community that the 
                        Secretary determines is not urban in character, 
                        other than any area included in the Honolulu 
                        Census Designated Place or the San Juan Census 
                        Designated Place;
                            ``(ii) any urbanized area (as defined by 
                        the Bureau of the Census) contiguous and 
                        adjacent to a city or town described in clause 
                        (i); and
                            ``(iii) any collection of census blocks 
                        contiguous to each other (as defined by the 
                        Bureau of the Census) that--
                                    ``(I) is adjacent to a city or town 
                                described in clause (i) or an urbanized 
                                area described in clause (ii); and
                                    ``(II) has a housing density that 
                                the Secretary estimates is greater than 
                                200 housing units per square mile, 
                                except that an applicant may appeal the 
                                estimate based on actual data for the 
                                area.
                    ``(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--
                            ``(i) an area described in clause (i), 
                        (ii), or (iii) of subparagraph (A); and
                            ``(ii) a city, town, or unincorporated area 
                        that has a population of greater than 20,000 
                        inhabitants.
                    ``(D) Areas rural in character.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this paragraph, the Under 
                        Secretary for Rural Development may determine 
                        (pursuant to a petition by a local community or 
                        on the initiative of the Under Secretary) that 
                        an area described in clause (ii) or (iii) of 
                        subparagraph (A) is a rural area for the 
                        purposes of this paragraph, if the Under 
                        Secretary finds that the area is rural in 
                        character, as determined by the Under 
                        Secretary.
                            ``(ii) Administration.--In carrying out 
                        clause (i), the Under Secretary for Rural 
                        Development--
                                    ``(I) shall not delegate the 
                                authority described in clause (i); but
                                    ``(II) shall consult with the 
                                applicable rural development State or 
                                regional director of the Department of 
                                Agriculture.
                    ``(E) Exclusions.--Notwithstanding any other 
                provision of this paragraph, in determining which 
                census blocks 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.''.
    (b) Annual Reports.--Not later than 2 years after the date of 
enactment of this Act and every 2 years thereafter, 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;
            (4) describes the effects the changes to the definitions of 
        the terms ``rural'' and ``rural area'' in the Farm Security and 
        Rural Investment Act of 2002 and this Act had on those programs 
        and eligible areas; and
            (5) determines what effects the changes had on the level of 
        rural development funding and participation in those programs 
        in each State.
    (b) Additional Terms.--Section 343(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991(a)) is amended by adding at the 
end the following:
            ``(14) Sustainable agriculture.--The term `sustainable 
        agriculture' means an integrated system of plant and animal 
        production practices having a site-specific application that 
        will, over the long-term--
                    ``(A) satisfy human food and fiber needs;
                    ``(B) enhance environmental quality and the natural 
                resource base upon which the agriculture economy 
                depends;
                    ``(C) make the most efficient use of nonrenewable 
                resources and on-farm resources and integrate, where 
                appropriate, natural biological cycles and controls;
                    ``(D) sustain the economic viability of farm 
                operations; and
                    ``(E) enhance the quality of life for farmers and 
                society as a whole.
            ``(15) Technical assistance.--The term `technical 
        assistance' means managerial, financial, operational, and 
        scientific analysis and consultation to assist an individual or 
        entity (including a borrower or potential borrower under this 
        title)--
                    ``(A) to identify and evaluate practices, 
                approaches, problems, opportunities, or solutions; and
                    ``(B) to assist in the planning, implementation, 
                management, operation, marketing, or maintenance of 
                projects authorized under this title.''.
    (c) Commercial Fishing.--Section 343 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991) is amended--
            (1) in subsection (a), by inserting ``and, in the case of 
        subtitle B, commercial fishing'' before the period at the end 
        of each of paragraphs (1) and (2); and
            (2) by adding at the end the following:
    ``(c) Definition of Farm.--In subtitle B, the term `farm' includes 
a commercial fishing enterprise the owner or operator of which is 
unable to obtain commercial credit from a bank or other lender, as 
determined by the Secretary.''.

SEC. 6021. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

    (a) In General.--The Consolidated Farm and Rural Development Act is 
amended by inserting after section 344 (7 U.S.C. 1992) the following:

``SEC. 345. 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.--
            ``(1) In general.--Subject to paragraph (2) and the 
        availability of funds under subsection (d), for each fiscal 
        year, the Secretary may provide geographically disadvantaged 
        farmers or ranchers direct reimbursement payments for 
        activities described in subsection (c).
            ``(2) Limitation.--The total amount of direct reimbursement 
        payments provided by the Secretary under this section shall not 
        exceed $15,000,000 for each fiscal year.
    ``(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), farmer or rancher shall provide 
        to the Secretary proof (as determined by the Secretary) that 
        transportation or the agricultural commodity or inputs occurred 
        over a distance of more than 30 miles.
            ``(3) Amount.--The amount of direct reimbursement payments 
        made to a geographically disadvantaged farmer or rancher under 
        a subsection for a fiscal year shall equal the product obtained 
        by multiplying--
                    ``(A) the amount of costs incurred by the farmer or 
                rancher for transportation of the agricultural 
                commodity or inputs during the fiscal year; and
                    ``(B) the percentage of the allowance for that 
                fiscal year made under section 5941 of title 5, United 
                States Code, for Federal employees stationed in Alaska 
                and Hawaii.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2007.

SEC. 6022. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (as 
amended by section 5207) is amended by inserting after section 365 the 
following:

``SEC. 366. RURAL MICROENTERPRISE 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) Low- or moderate-income individual.--The term `low- 
        or moderate-income individual' means an individual with an 
        income (adjusted for family size) of not more than 80 percent 
        of the national median income.
            ``(3) Microcredit.--The term `microcredit' means a business 
        loan or loan guarantee of not more than $50,000 that is 
        provided to a rural microenterprise.
            ``(4) 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 no microenterprise development 
                        organization or microenterprise development 
                        program exists under the jurisdiction of the 
                        Indian tribe; or
                            ``(iii) for the purpose of subsection (b), 
                        a public institution of higher education;
                    ``(B) provides training and technical assistance to 
                rural microenterprises;
                    ``(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 economically disadvantaged 
                microenterprises, or an effective plan to develop a 
                program to deliver microenterprise services to rural 
                microenterprises effectively, as determined by the 
                Secretary.
            ``(5) Rural capacity building service.--The term `rural 
        capacity building service' means a service provided to an 
        organization that--
                    ``(A) is, or is in the process of becoming, a 
                microenterprise development organization; and
                    ``(B) serves rural areas for the purpose of 
                enhancing the ability of the organization to provide 
                training, technical assistance, and other services 
                relating to rural development.
            ``(6) Rural microenterprise.--
                    ``(A) In general.--The term `rural microenterprise' 
                means an individual described in subparagraph (B) who 
                is unable to obtain sufficient training, technical 
                assistance, or microcredit other than under this 
                section, as determined by the Secretary.
                    ``(B) Description.--An individual described in this 
                subparagraph is--
                            ``(i) a self-employed individual located in 
                        a rural area; or
                            ``(ii) an owner and operator, or 
                        prospective owner and operator, of a business 
                        entity located in a rural area with not more 
                        than 10 full-time-equivalent employees.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Rural Business-Cooperative 
        Service.
    ``(b) Rural Microenterprise Program.--
            ``(1) Establishment.--The Secretary shall establish a rural 
        microenterprise program.
            ``(2) Purpose.--The purpose of the rural microenterprise 
        program shall be to provide low- or moderate-income individuals 
        with--
                    ``(A) the skills necessary to establish new rural 
                microenterprises; and
                    ``(B) continuing technical and financial assistance 
                as individuals and business starting or operating rural 
                microenterprises.
            ``(3) Grants.--
                    ``(A) In general.--The Secretary may make a grant 
                under the rural microenterprise program to 
                microenterprise development organizations--
                            ``(i) to provide training, operational 
                        support, business planning assistance, market 
                        development assistance, and other related 
                        services to rural microenterprises, with an 
                        emphasis on rural microenterprises that--
                                    ``(I) are composed of low- or 
                                moderate-income individuals; or
                                    ``(II) are in areas that have lost 
                                population;
                            ``(ii) to assist in researching and 
                        developing the best practices in delivering 
                        training, technical assistance, and microcredit 
                        to rural microenterprises; and
                            ``(iii) to carry out such other projects 
                        and activities as the Secretary determines to 
                        be consistent with the purposes of this 
                        section.
                    ``(B) Diversity.--In making grants under this 
                paragraph, the Secretary shall ensure, to the maximum 
                extent practicable, that grant recipients include 
                microenterprise development organizations--
                            ``(i) of varying sizes; and
                            ``(ii) that serve racially- and ethnically-
                        diverse populations.
                    ``(C) Cost sharing.--
                            ``(i) Federal share.--The Federal share of 
                        the cost of a project carried out using funds 
                        from a grant made under this paragraph shall be 
                        75 percent.
                            ``(ii) Form of non-federal share.--The non-
                        Federal share of the cost of a project 
                        described in clause (i) may be provided--
                                    ``(I) in cash (including through 
                                fees, grants (including community 
                                development block grants), and gifts); 
                                or
                                    ``(II) as in-kind contributions.
            ``(4) Rural microloan program.--
                    ``(A) Establishment.--In carrying out the rural 
                microenterprise program, the Secretary may carry out a 
                rural microloan program.
                    ``(B) Purpose.--The purpose of the rural microloan 
                program shall be to provide technical and financial 
                assistance to rural microenterprises that--
                            ``(i) are composed of low- or moderate-
                        income individuals; or
                            ``(ii) are in areas that have lost 
                        population.
                    ``(C) Authority of secretary.--In carrying out the 
                rural microloan program, the Secretary may--
                            ``(i) make direct loans to microenterprise 
                        development organizations for the purpose of 
                        making fixed interest rate microloans to 
                        startup, newly established, and growing rural 
                        microenterprises; and
                            ``(ii) in conjunction with those loans, 
                        provide technical assistance grants in 
                        accordance with subparagraph (E) to those 
                        microenterprise development organizations.
                    ``(D) Loan duration; interest rates; conditions.--
                            ``(i) Loan duration.--A direct loan made by 
                        the Secretary under this paragraph shall be for 
                        a term not to exceed 20 years.
                            ``(ii) Applicable interest rate.--A direct 
                        loan made by the Secretary under this paragraph 
                        shall bear an annual interest rate of 1 
                        percent.
                            ``(iii) Loan loss reserve fund.--The 
                        Secretary shall require each microenterprise 
                        development organization that receives a direct 
                        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.
                            ``(iv) Deferral of interest and 
                        principal.--The Secretary shall permit the 
                        deferral of payments on principal and interest 
                        due on a loan made under this paragraph during 
                        the 2-year period beginning on the date on 
                        which the loan is made.
                    ``(E) Technical assistance grant amounts.--
                            ``(i) In general.--Except as otherwise 
                        provided in this section, each microenterprise 
                        development organization that receives a direct 
                        loan under this paragraph shall be eligible to 
                        receive a technical assistance grant to provide 
                        marketing, management, and technical assistance 
                        to rural microenterprises that are borrowers or 
                        potential borrowers under this subsection.
                            ``(ii) Maximum amount of technical 
                        assistance grant for microenterprise 
                        development organizations.--Each 
                        microenterprise development organization that 
                        receives a direct loan under this paragraph 
                        shall receive an annual technical assistance 
                        grant in an amount equal to not more than 25 
                        percent of the total outstanding balance of 
                        microloans made by the microenterprise 
                        development organization under this paragraph, 
                        as of the date of provision of the technical 
                        assistance grant.
                            ``(iii) Matching requirement.--
                                    ``(I) In general.--As a condition 
                                of any grant made to a microenterprise 
                                development organization 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.
                                    ``(II) Form of non-federal share.--
                                The non-Federal share of the cost of a 
                                project described in subclause (I) may 
                                be provided--
                                            ``(aa) in cash; or
                                            ``(bb) as indirect costs or 
                                        in-kind contributions.
    ``(c) Administrative Expenses.--Not more than 10 percent of a grant 
received by a microenterprise development organization for a fiscal 
year under this section may be used to pay administrative expenses.
    ``(d) Funding.--
            ``(1) Mandatory funding.--
                    ``(A) In general.--Of the funds of the Commodity 
                Credit Corporation, the Secretary shall use to carry 
                out this section $40,000,000 for fiscal year 2008, to 
                remain available until expended.
                    ``(B) Allocation of funds.--Of the amount made 
                available by subparagraph (A) for fiscal year 2008--
                            ``(i) not less than $25,000,000 shall be 
                        available for use in carrying out subsection 
                        (b)(3); and
                            ``(ii) not less than $15,000,000 shall be 
                        available for use in carrying out subsection 
                        (b)(4), of which not more than $7,000,000 shall 
                        be used for the cost of direct loans.
            ``(2) Authorization of appropriations.--In addition to 
        amounts made available under paragraph (1), 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. 6023. ARTISANAL CHEESE CENTERS.

    Subtitle D of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 366 (as added by section 6022) the 
following:

``SEC. 367. ARTISANAL CHEESE CENTERS.

    ``(a) In General.--The Secretary shall establish artisanal cheese 
centers to provide educational and technical assistance relating to the 
manufacture and marketing of artisanal cheese by small- and medium-
sized producers and businesses.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.''.

SEC. 6024. 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 ``2007'' and 
        inserting ``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. 6025. HISTORIC BARN PRESERVATION.

    Section 379A(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008o(c)) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Eligible projects.--
                    ``(A) In general.--A grant under this subsection 
                may be made to an eligible applicant for a project--
                            ``(i) to rehabilitate or repair a historic 
                        barn;
                            ``(ii) to preserve a historic barn; and
                            ``(iii) to identify, document, survey, and 
                        conduct research on a historic barn or historic 
                        farm structure to develop and evaluate 
                        appropriate techniques or best practices for 
                        protecting historic barns.
                    ``(B) Priority.--The Secretary shall give the 
                highest funding priority to grants for projects 
                described in subparagraph (A)(iii).''; and
            (2) in paragraph (4), by striking ``2007'' and inserting 
        ``2012''.

SEC. 6026. 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 ``2007'' and inserting 
``2012''.

SEC. 6027. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO 
              TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR 
              HIGHER VALUE CROPS.

    Section 379C(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008q(c)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 6028. 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.) is amended by adding at the end the following:

``SEC. 379E. 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;
            ``(4) existing relationships with national organizations 
        focused primarily on the needs of rural areas;
            ``(5) affiliates in a majority of the States; and
            ``(6) a close working relationship with the Department of 
        Agriculture.
    ``(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. 6029. DELTA REGIONAL AUTHORITY.

    (a) Health Care Services.--Section 382C of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009aa-2) is amended by adding at 
the end the following:
    ``(c) Health Care Services.--
            ``(1) In general.--Subject to the availability of 
        appropriated funds, the Secretary may award a grant to the 
        Delta Health Alliance for the development of health care 
        services, health education programs, and health care job 
        training programs fields, and for the development and expansion 
        of public health-related facilities, in the Mississippi Delta 
        region to address longstanding and unmet health needs in the 
        Mississippi Delta region.
            ``(2) Use.--As a condition of the receipt of the grant, the 
        Delta Health Alliance shall use the grant to fund projects and 
        activities described in paragraph (1), based on input solicited 
        from local governments, public health care providers, and other 
        entities in the Mississippi Delta region.
            ``(3) Federal interest in property.--Notwithstanding any 
        other provision of law, with respect to the use of grant funds 
        provided under this subsection for a project involving the 
        construction or major alteration of property, the Federal 
        interest in the property shall terminate on the earlier of--
                    ``(A) the date that is 1 year after the date of the 
                completion of the project; or
                    ``(B) the date on which the Federal Government is 
                compensated for the proportionate interest of the 
                Federal Government in the property, if the use of the 
                property changes or the property is transferred or 
                sold.''.
    (b) 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 ``2007'' and inserting ``2012''.
    (c) 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''.
    (d) Delta Region Agricultural Economic Development.--Section 
379D(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2008r(b)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 6030. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    (a) 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 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.--Notwithstanding any 
                other provision of this section, if a chairperson of an 
                Indian Tribe described in paragraph (2)(C) has not been 
                confirmed by the Senate by not later than 180 days 
                after the date of enactment of this paragraph, the 
                leaders of the Indian tribes in the region may select 
                that member.'';
            (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.''.
    (b) 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:

``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 assist in the harmonization of transportation 
        policies and regulations that impact the interstate movement of 
        goods and individuals, 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''.
    (c) Economic and Community Development Grants.--Section 383D of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (b)(1)(A)) is amended--
            (1) in subsection (a)--
                    (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''.
    (d) Supplements to Federal Grant Programs.--Section 383E(a) of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (b)(1)(A)) is amended by striking ``, including local 
development districts,''.
    (e) 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 (b)(1)(A)) is 
amended--
            (1) by striking the section heading and inserting 
        ``multistate and local development districts and organizations 
        and northern great plains inc.'';
            (2) by striking subsections (a) and (b) 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 Federal 
        cochairperson--
                    ``(A) inappropriately used Federal grant funds from 
                any Federal source; or
                    ``(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 regional or local 
                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 regional or 
        local development district or organization for administrative 
        expenses may be in cash or in kind, fairly evaluated, including 
        space, equipment, and services.''; and
            (3) in subsection (c)--
                    (A) by striking ``Duties'' and inserting 
                ``Authorities''; and
                    (B) in the matter preceding paragraph (1), by 
                striking ``shall'' and inserting ``may''.
    (f) Distressed Counties and Areas and Nondistressed Counties.--
Section 383G of the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (b)(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 ``, 
                Renewable Energy,'' after ``Telecommunication,''; and
                    (B) by inserting ``, renewable energy,'' after 
                ``telecommunication,''.
    (g) Development Planning Process.--Section 383H of the Consolidated 
Farm and Rural Development Act (as redesignated by subsection 
(b)(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''.
    (h) Program Development Criteria.--Section 383I(a)(1) of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (b)(1)(A)) is amended by inserting ``multistate or'' before 
``regional''.
    (i) Authorization of Appropriations.--Section 383N(a) of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (b)(1)(A)) is amended by striking ``2002 through 2007'' and 
inserting ``2008 through 2012''.
    (j) Termination of Authority.--Section 383O of the Consolidated 
Farm and Rural Development Act (as redesignated by subsection 
(b)(1)(A)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.

    (a) Issuance and Guarantee of Trust Certificates.--Section 384F of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-5) 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;
            (2) in subsection (b)(3)(A), 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''; and
            (3) in subsection (e), by adding at the end the following:
            ``(6) Distributions.--
                    ``(A) In general.--The Secretary shall authorize 
                distributions to investors for unrealized income from a 
                debenture.
                    ``(B) Treatment.--Distributions made by a rural 
                business investment company to an investor of private 
                capital in the rural business investment company for 
                the purpose of covering the tax liability of the 
                investor resulting from unrealized income of the rural 
                business investment company shall not require the 
                repayment of a debenture.''.
    (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 by striking subsection (c).
    (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 are authorized to be appropriated such sums as are 
necessary to carry out this subtitle.''.

SEC. 6032. 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, 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).
            ``(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.

``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, which shall--
                    ``(A) create a framework to encourage and support a 
                more collaborative and targeted rural investment 
                portfolio in the United States;
                    ``(B) establish the 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;
                    ``(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 annual 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;
            ``(2) provide advice to the Secretary and subsequently 
        review the design, development, and execution of the National 
        Rural Investment Plan;
            ``(3) provide advice to Regional Boards on issues, best 
        practices, and emerging trends relating to rural development; 
        and
            ``(4) provide advice to 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 and Energy Security Act 
        of 2007.
            ``(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--
                    ``(A) nationally recognized entrepreneurship 
                organizations;
                    ``(B) regional strategy and development 
                organizations;
                    ``(C) community-based organizations;
                    ``(D) elected members of county and municipal 
                governments;
                    ``(E) elected 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, non-voting 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 120 days after 
        the date of enactment of the Food and Energy Security Act of 
        2007, 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.
            ``(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(b)(3), may provide 
such administrative support to the National Board as the Secretary 
determines is necessary to carry out the duties of the National Board.

``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 government (including 
                multijurisdictional units of local government);
                    ``(B) nonprofit community-based development 
                organizations, including community development 
                financial institutions and community development 
                corporations;
                    ``(C) agricultural, natural resource, and other 
                asset-based 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--
                    ``(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 or State 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 shall--
                    ``(A) create a collaborative, inclusive 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 and inclusive 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.

``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) a background 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 
        the implementation of the regional investment strategy, 
        including--
                    ``(A) the number and quality of jobs, including 
                self-employment, 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 in-kind 
        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.--For a Regional Board to receive a regional 
innovation grant, the Secretary shall determine 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 of the 
        Regional Board.
    ``(c) Limitations.--
            ``(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 collaborative gap 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 assets, natural assets, and 
                public infrastructure, with substantial emphasis placed 
                on the existence of real financial commitments to 
                leverage the 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;
                    ``(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 (including with respect to education, health 
                care, housing, recreation, and arts and culture);
                    ``(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; or
                    ``(L) help to meet the other regional 
                competitiveness needs identified by a Regional Board.
    ``(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, and business 
                development funds;
                    ``(G) to carry out other broad activities relating 
                to strengthening the economic competitiveness of the 
                region; and
                    ``(H) 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.
            ``(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 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 Strategies.--
            ``(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 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
            ``(3) be subject to such other terms and conditions as are 
        determined appropriate by the Secretary.

``SEC. 385H. FUNDING.

    ``(a) In General.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use $135,000,000 to carry out this 
subtitle, to remain available until expended.
    ``(b) Use by Secretary.--Of the amounts made available to the 
Secretary under subsection (a), the Secretary shall use--
            ``(1) $15,000,000 to be provided for regional investment 
        strategy grants to Regional Boards under section 385E;
            ``(2) $110,000,000 to provide innovation grants to Regional 
        Boards under section 385F and for the cost of rural endowment 
        loans under section 385G;
            ``(3) $5,000,000 for fiscal year 2008 to administer the 
        duties of the National Board, to remain available until 
        expended; and
            ``(4) $5,000,000 for fiscal year 2008 to administer the 
        National Institute, to remain available until expended.
    ``(c) Authorization of Appropriations.--In addition to funds 
otherwise made available to carry out this subtitle, there are 
authorized to be appropriated to the Secretary such sums as are 
necessary to carry out this subtitle.''.

SEC. 6033. 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.
            (4) Individual states.--In allocating funds made available 
        under subsection (d), the Secretary shall use not more 5 
        percent of the funds for pending applications for loans or 
        grants described in subsection (b) that are made in any 
        individual State.
    (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 $135,000,000, to remain available until 
expended.

SEC. 6034. NORTHERN BORDER ECONOMIC DEVELOPMENT COMMISSION.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) is amended by adding at the end the following:

     ``Subtitle J--Northern Border Economic Development Commission

``SEC. 386A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Commission.--The term `Commission' means the Northern 
        Border Economic Development Commission established by section 
        386B.
            ``(2) Federal grant program.--The term `Federal grant 
        program' means a Federal grant program to provide assistance in 
        carrying out economic and community development activities and 
        conservation activities that are consistent with economic 
        development.
            ``(3) Non-profit entity.--The term `non-profit entity' 
        means any entity with tax-exempt or non-profit status, as 
        defined by the Internal Revenue Service.
            ``(4) Region.--The term `region' means the area covered by 
        the Commission (as described in section 386N).

``SEC. 386B. NORTHERN BORDER ECONOMIC DEVELOPMENT COMMISSION.

    ``(a) Establishment.--
            ``(1) In general.--There is established the Northern Border 
        Economic Development Commission.
            ``(2) Composition.--The Commission shall be composed of--
                    ``(A) a Federal member, to be appointed by the 
                President, with the advice and consent of the Senate; 
                and
                    ``(B) the Governor of each State in the region that 
                elects to participate in the Commission.
            ``(3) Cochairpersons.--The Commission shall be headed by--
                    ``(A) the Federal member, who shall serve--
                            ``(i) as the Federal cochairperson; and
                            ``(ii) as a liaison between the Federal 
                        Government and the Commission; and
                    ``(B) a State cochairperson, who--
                            ``(i) shall be a Governor of a 
                        participating State in the region; and
                            ``(ii) shall be elected by the State 
                        members for a term of not less than 1 year.
    ``(b) Alternate Members.--
            ``(1) State alternates.--
                    ``(A) Appointment.--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 Governor's cabinet or personal staff.
                    ``(B) Voting.--An alternate shall vote in the event 
                of the absence, death, disability, removal, or 
                resignation of the member for whom the individual is an 
                alternate.
            ``(2) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            ``(3) Quorum.--
                    ``(A) In general.--Subject to the requirements of 
                this paragraph, the Commission shall determine what 
                constitutes a quorum of the Commission.
                    ``(B) Federal cochairperson.--The Federal 
                cochairperson or the Federal cochairperson's designee 
                must be present for the establishment of a quorum of 
                the Commission.
                    ``(C) State alternates.--A State alternate shall 
                not be counted toward the establishment of a quorum of 
                the Commission.
            ``(4) Delegation of power.--No power or responsibility of 
        the Commission specified in paragraphs (3) and (4) of 
        subsection (c), and no voting right of any Commission member, 
        shall be delegated to any person--
                    ``(A) who is not a Commission member; or
                    ``(B) who is not entitled to vote in Commission 
                meetings.
    ``(c) Decisions.--
            ``(1) Requirements for approval.--Except as provided in 
        subsection (g), decisions by the Commission shall require the 
        affirmative vote of the Federal cochairperson and of a majority 
        of the State members, exclusive of members representing States 
        delinquent under subsection (g)(2)(C).
            ``(2) Consultation.--In matters coming before the 
        Commission, the Federal cochairperson, to the extent 
        practicable, shall consult with the Federal departments and 
        agencies having an interest in the subject matter.
            ``(3) Decisions requiring quorum of state members.--The 
        following decisions may not be made without a quorum of State 
        members:
                    ``(A) A decision involving Commission policy.
                    ``(B) Approval of State, regional, or subregional 
                development plans or strategy statements.
                    ``(C) Modification or revision of the Commission's 
                code.
                    ``(D) Allocation of amounts among the States.
            ``(4) Project and grant proposals.--The approval of project 
        and grant proposals is a responsibility of the Commission and 
        shall be carried out in accordance with section 386H.
    ``(d) Duties.--The Commission shall--
            ``(1) develop, on a continuing basis, comprehensive and 
        coordinated plans and programs to establish priorities and 
        approve grants for the economic development of the region, 
        giving due consideration to other Federal, State, and local 
        planning and development activities in the region;
            ``(2) not later than 365 days after the date of enactment 
        of this Act, establish priorities in a development plan for the 
        region (including 5-year regional outcome targets);
            ``(3) assess the needs and capital assets of the region 
        based on available research, demonstration projects, 
        assessments, and evaluations of the region prepared by Federal, 
        State, or local agencies, local development districts, and any 
        other relevant source;
            ``(4)(A) enhance the capacity of, and provide support for, 
        local development districts in the 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) actively solicit the participation of representatives 
        of local development districts, industry groups, and other 
        appropriate organizations as approved by the Commission, in all 
        public proceedings of the Commission conducted under subsection 
        (e)(1), either in-person or through interactive 
        telecommunications; and
            ``(6) encourage private investment in industrial, 
        commercial, and other economic development projects in the 
        region.
    ``(e) Administration.--In carrying out subsection (d), the 
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 department 
        or agency such information as may be available to or procurable 
        by the department or agency that may be of use to the 
        Commission in carrying out duties of the Commission;
            ``(4) adopt, amend, and repeal bylaws and rules governing 
        the conduct of Commission business and the performance of 
        Commission duties;
            ``(5) request the head of any Federal department or agency 
        to detail to the Commission such personnel as the Commission 
        requires to carry out duties of the Commission, each such 
        detail to be without loss of seniority, pay, or other employee 
        status;
            ``(6) request the head of any State department or agency or 
        local government to detail to the Commission such personnel as 
        the Commission requires to carry out duties of the Commission, 
        each such detail to be without loss of seniority, pay, or other 
        employee status;
            ``(7) provide for coverage of Commission employees in a 
        suitable retirement and employee benefit system by--
                    ``(A) making arrangements or entering into 
                contracts with any participating State government; or
                    ``(B) otherwise providing retirement and other 
                employee benefit coverage;
            ``(8) accept, use, and dispose of gifts or donations of 
        services or real, personal, tangible, or intangible property;
            ``(9) enter into and perform such contracts or other 
        transactions as are necessary to carry out Commission duties;
            ``(10) establish and maintain a central office located 
        within the Northern Border Economic Development Commission 
        region and field offices at such locations as the Commission 
        may select; and
            ``(11) provide for an appropriate level of representation 
        in Washington, DC.
    ``(f) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with the Commission; and
            ``(2) provide, on request of the Federal cochairperson, 
        appropriate assistance in carrying out this subtitle, in 
        accordance with applicable Federal laws (including 
        regulations).
    ``(g) Administrative Expenses.--
            ``(1) In general.--Administrative expenses of the 
        Commission (except for the expenses of the Federal 
        cochairperson, including expenses of the alternate and staff of 
        the Federal cochairperson, which shall be paid solely by the 
        Federal Government) shall be paid--
                    ``(A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses; and
                    ``(B) by the States in the region participating in 
                the Commission, in an amount equal to 50 percent of the 
                administrative expenses.
            ``(2) State share.--
                    ``(A) In general.--The share of administrative 
                expenses of the Commission to be paid by each State 
                shall be determined by the Commission.
                    ``(B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    ``(C) Delinquent states.--If a State is 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 furnished to the State (including 
                        assistance to a political subdivision or a 
                        resident of the State); and
                            ``(ii) no member of the Commission from the 
                        State shall participate or vote in any action 
                        by the Commission.
    ``(h) Compensation.--
            ``(1) Federal cochairperson.--The Federal cochairperson 
        shall be compensated by the Federal Government at level III of 
        the Executive Schedule in subchapter II of chapter 53 of title 
        V, United States Code.
            ``(2) Alternate federal cochairperson.--The alternate 
        Federal cochairperson--
                    ``(A) shall be compensated by the Federal 
                Government at level V of the Executive Schedule 
                described in paragraph (1); and
                    ``(B) when not actively serving as an alternate for 
                the Federal cochairperson, shall perform such functions 
                and duties as are delegated by the Federal 
                cochairperson.
            ``(3) State members and alternates.--
                    ``(A) In general.--A State shall compensate each 
                member and alternate representing the State on the 
                Commission at the rate established by law of the State.
                    ``(B) No additional compensation.--No State member 
                or alternate member shall receive any salary, or any 
                contribution to or supplementation of salary from any 
                source other than the State for services provided by 
                the member or alternate to the Commission.
            ``(4) Detailed employees.--
                    ``(A) In general.--No person detailed to serve the 
                Commission under paragraph (5) or (6) of subsection (e) 
                shall receive any salary or any contribution to or 
                supplementation of salary for services provided to the 
                Commission from--
                            ``(i) any source other than the Federal, 
                        State, local, or intergovernmental department 
                        or agency from which the person was detailed; 
                        or
                            ``(ii) the Commission.
                    ``(B) Violation.--Any person that violates this 
                paragraph shall be fined not more than $5,000, 
                imprisoned not more than 1 year, or both.
                    ``(C) Applicable law.--The Federal cochairperson, 
                the alternate Federal cochairperson, and any Federal 
                officer or employee detailed to duty on the Commission 
                under subsection (e)(5) shall not be subject to 
                subparagraph (A), but shall remain subject to sections 
                202 through 209 of title 18, United States Code.
            ``(5) Additional personnel.--
                    ``(A) Compensation.--
                            ``(i) In general.--The Commission may 
                        appoint and fix the compensation of an 
                        executive director and such other personnel as 
                        are necessary to enable the Commission to carry 
                        out the duties of the Commission.
                            ``(ii) Exception.--Compensation under 
                        clause (i) shall not exceed the maximum rate 
                        for the Senior Executive Service under section 
                        5382 of title 5, United States Code, including 
                        any applicable locality-based comparability 
                        payment that may be authorized under section 
                        5304(h)(2)(C) of that title.
                    ``(B) Executive director.--The executive director 
                shall be responsible for--
                            ``(i) the carrying out of the 
                        administrative duties of the Commission;
                            ``(ii) direction of the Commission staff; 
                        and
                            ``(iii) such other duties as the Commission 
                        may assign.
                    ``(C) No federal employee status.--No member, 
                alternate, officer, or employee of the Commission 
                (except the Federal cochairperson of the Commission, 
                the alternate and staff for the Federal cochairperson, 
                and any Federal employee detailed to the Commission 
                under subsection (e)(5)) shall be considered to be a 
                Federal employee for any purpose.
    ``(i) Conflicts of Interest.--
            ``(1) In general.--Except as provided under paragraph (2), 
        no State member, alternate, officer, or employee of the 
        Commission shall participate personally and substantially as a 
        member, alternate, officer, or employee of the Commission, 
        through decision, approval, disapproval, recommendation, the 
        rendering of advice, investigation, or otherwise, in any 
        proceeding, application, request for a ruling or other 
        determination, contract, claim, controversy, or other matter in 
        which, to knowledge of the member, alternate, officer, or 
        employee any of the following persons has a financial interest:
                    ``(A) The member, alternate, officer, or employee.
                    ``(B) The spouse, minor child, partner, or 
                organization (other than a State or political 
                subdivision of the State) of the member, alternate, 
                officer, or employee, in which the member, alternate, 
                officer, or employee is serving as officer, director, 
                trustee, partner, or employee.
                    ``(C) Any person or organization with whom the 
                member, alternate, officer, or employee is negotiating 
                or has any arrangement concerning prospective 
                employment.
            ``(2) Disclosure.--Paragraph (1) shall not apply if the 
        State member, alternate, officer, or employee--
                    ``(A) immediately advises the Commission of the 
                nature and circumstances of the proceeding, 
                application, request for a ruling or other 
                determination, contract, claim, controversy, or other 
                particular matter presenting a potential conflict of 
                interest;
                    ``(B) makes full disclosure of the financial 
                interest; and
                    ``(C) before the proceeding concerning the matter 
                presenting the conflict of interest, receives a written 
                determination by the Commission that the interest is 
                not so substantial as to be likely to affect the 
                integrity of the services that the Commission may 
                expect from the State member, alternate, officer, or 
                employee.
            ``(3) Violation.--Any person that violates this subsection 
        shall be fined not more than $10,000, imprisoned not more than 
        2 years, or both.
    ``(j) Validity of Contracts, Loans, and Grants.--The 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 (h)(4), subsection (i), or 
sections 202 through 209 of title 18, United States Code.

``SEC. 386C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    ``(a) In General.--The Commission may approve grants to States, 
local development districts (as defined in section 386E(a)), and public 
and nonprofit entities for projects, approved in accordance with 
section 386H--
            ``(1) to develop the infrastructure of the region for the 
        purpose of facilitating economic development in the region 
        (except that grants for this purpose may only be made to a 
        State or local government);
            ``(2) to assist the region in obtaining job training, 
        employment-related education, business development, and small 
        business development and entrepreneurship;
            ``(3) to assist the region in community and economic 
        development;
            ``(4) to support the development of severely distressed and 
        underdeveloped areas;
            ``(5) to promote resource conservation, forest management, 
        tourism, recreation, and preservation of open space in a manner 
        consistent with economic development goals;
            ``(6) to promote the development of renewable and 
        alternative energy sources; and
            ``(7) to achieve the purposes of this subtitle.
    ``(b) Funding.--
            ``(1) In general.--Funds for grants under subsection (a) 
        may be provided--
                    ``(A) entirely from appropriations to carry out 
                this section;
                    ``(B) in combination with funds available under 
                another State or Federal grant program; or
                    ``(C) from any other source.
            ``(2) Eligible projects.--The Commission may provide 
        assistance, make grants, enter into contracts, and otherwise 
        provide funds to eligible entities in the region for projects 
        that promote--
                    ``(A) business development;
                    ``(B) job training or employment-related education;
                    ``(C) small businesses and entrepreneurship, 
                including--
                            ``(i) training and education to aspiring 
                        entrepreneurs, small businesses, and students;
                            ``(ii) access to capital and facilitating 
                        the establishment of small business venture 
                        capital funds;
                            ``(iii) existing entrepreneur and small 
                        business development programs and projects; and
                            ``(iv) projects promoting small business 
                        innovation and research;
                    ``(D) local planning and leadership development;
                    ``(E) basic public infrastructure, including high-
                tech infrastructure and productive natural resource 
                conservation;
                    ``(F) information and technical assistance for the 
                modernization and diversification of the forest 
                products industry to support value-added forest 
                products enterprises;
                    ``(G) forest-related cultural, nature-based, and 
                heritage tourism;
                    ``(H) energy conservation and efficiency in the 
                region to enhance its economic competitiveness;
                    ``(I) the use of renewable energy sources in the 
                region to produce alternative transportation fuels, 
                electricity and heat; and
                    ``(J) any other activity facilitating economic 
                development in the region.
            ``(3) Federal share.--Notwithstanding any provision of law 
        limiting the Federal share in any grant program, funds 
        appropriated or otherwise made available to carry out this 
        section may be used to increase a Federal share in a grant 
        program, as the Commission determines appropriate.

``SEC. 386D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Federal Grant Program Funding.--In accordance with subsection 
(b), the Federal cochairperson may use amounts made available to carry 
out this subtitle, without regard to any limitations on areas eligible 
for assistance or authorizations for appropriation under any other Act, 
to fund all or any portion of the basic Federal contribution to a 
project or activity under a Federal grant program in the region in an 
amount that is above the fixed maximum portion of the cost of the 
project otherwise authorized by applicable law, but not to exceed 80 
percent of the costs of the project.
    ``(b) Certification.--
            ``(1) In general.--In the case of any program or project 
        for which all or any portion of the basic Federal contribution 
        to the project under a Federal grant program is proposed to be 
        made under this section, no Federal contribution shall be made 
        until the Federal official administering the Federal law 
        authorizing the contribution certifies that the program or 
        project--
                    ``(A) meets the applicable requirements of the 
                applicable Federal grant law; and
                    ``(B) could be approved for Federal contribution 
                under the law if funds were available under the law for 
                the program or project.
            ``(2) Certification by commission.--
                    ``(A) In general.--The certifications and 
                determinations required to be made by the Commission 
                for approval of projects under this subtitle in 
                accordance with section 386H--
                            ``(i) shall be controlling; and
                            ``(ii) shall be accepted by the Federal 
                        agencies.
                    ``(B) Acceptance by federal cochairperson.--Any 
                finding, report, certification, or documentation 
                required to be submitted to the head of the department, 
                agency, or instrumentality of the Federal Government 
                responsible for the administration of any Federal grant 
                program shall be accepted by the Federal cochairperson 
                with respect to a supplemental grant for any project 
                under the program.

``SEC. 386E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
              ADMINISTRATIVE EXPENSES.

    ``(a) Definition of Local Development District.--In this section, 
the term `local development district' means an entity designated by the 
State that--
            ``(1) is--
                    ``(A)(i) a planning district in existence on the 
                date of enactment of this Act that is recognized by the 
                Economic Development Administration of the Department 
                of Commerce; or
                    ``(ii) a development district recognized by the 
                State; or
                    ``(B) if an entity described in subparagraph (A)(i) 
                or (A)(ii) does not exist, an entity designated by the 
                Commission that satisfies the criteria developed by the 
                Economic Development Administration for a local 
                development district; and
            ``(2) has not, as certified by the Federal cochairperson--
                    ``(A) inappropriately used Federal grant funds from 
                any Federal source; or
                    ``(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 Local Development Districts.--
            ``(1) In general.--The Commission may make grants for 
        administrative expenses under this section.
            ``(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 local development 
                district receiving the grant.
                    ``(B) 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; and
            ``(2) serve as a liaison between State and local 
        governments, nonprofit organizations (including community-based 
        groups and educational institutions), the business community, 
        and citizens that--
                    ``(A) are involved in multijurisdictional planning;
                    ``(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    ``(C) provide leadership and civic development 
                assistance.

``SEC. 386F. DEVELOPMENT PLANNING PROCESS.

    ``(a) State Development Plan.--In accordance with policies 
established by the Commission, each State member shall submit a 
development plan for the area of the region represented by the State 
member.
    ``(b) Content of Plan.--A State development plan submitted under 
subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
386B(d)(2).
    ``(c) Consultation.--In carrying out the development planning 
process, a State shall--
            ``(1) consult with--
                    ``(A) local development districts;
                    ``(B) local units of government;
                    ``(C) institutions of higher learning; and
                    ``(D) stakeholders; and
            ``(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).
    ``(d) Public Participation.--The 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.

``SEC. 386G. PROGRAM DEVELOPMENT CRITERIA.

    ``(a) In General.--In considering programs and projects to be 
provided assistance under this subtitle, and in establishing a priority 
ranking of the requests for assistance provided by the Commission, the 
Commission shall follow procedures that ensure, to the maximum extent 
practicable, consideration of--
            ``(1) the relationship of the project to overall regional 
        development;
            ``(2) the economic distress of an area, including the per 
        capita income, outmigration, poverty and unemployment rates, 
        and other socioeconomic indicators for the 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 in relation to other 
        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 served by the 
        project;
            ``(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; and
            ``(7) the preservation of multiple uses, including 
        conservation, of natural resources.
    ``(b) No Relocation Assistance.--No financial assistance authorized 
by this subtitle shall be used to assist an establishment in relocating 
from 1 area to another.
    ``(c) Reduction of Funds.--Funds may be provided for a program or 
project in a State under this subtitle 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 the region, 
will not be reduced as a result of funds made available by this 
subtitle.

``SEC. 386H. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    ``(a) In General.--A State or regional development plan or any 
multistate subregional plan that is proposed for development under this 
subtitle shall be reviewed by the Commission.
    ``(b) Evaluation by State Member.--An application 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.
    ``(c) Certification.--An application for a grant or other 
assistance for a project shall be approved only on certification by the 
State member and Federal cochairperson that the application for the 
project--
            ``(1) describes ways in which the project complies with any 
        applicable State development plan;
            ``(2) meets applicable criteria under section 386G;
            ``(3) provides adequate assurance that the proposed project 
        will be properly administered, operated, and maintained; and
            ``(4) otherwise meets the requirements of this subtitle.
    ``(d) Votes for Decisions.--Upon certification of an application 
for a grant or other assistance for a specific project under this 
section, an affirmative vote of the Commission under section 386B(c) 
shall be required for approval of the application.

``SEC. 386I. CONSENT OF STATES.

    ``Nothing in this subtitle requires any State to engage in or 
accept any program under this subtitle without the consent of the 
State.

``SEC. 386J. RECORDS.

    ``(a) Records of the Commission.--
            ``(1) In general.--The Commission shall maintain accurate 
        and complete records of all transactions and activities of the 
        Commission.
            ``(2) Availability.--All records required under paragraph 
        (1) shall be available for audit by the Comptroller General of 
        the United States and the Commission (including authorized 
        representatives of the Comptroller General and the Commission).
    ``(b) Records of Recipients of Federal Assistance.--
            ``(1) In general.--A recipient of Federal funds under this 
        subtitle shall, as required by the Commission, maintain 
        accurate and complete records of transactions and activities 
        financed with Federal funds and report on the transactions and 
        activities to the Commission.
            ``(2) Availability.--All records required under paragraph 
        (1) shall be available for audit by the Comptroller General of 
        the United States and the Commission (including authorized 
        representatives of the Comptroller General and the Commission).

``SEC. 386K. ANNUAL REPORT.

    ``Not later than 180 days after the end of each fiscal year, the 
Commission shall submit to the President and to Congress a report 
describing the activities carried out under this subtitle.

``SEC. 386L. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Commission to carry out this subtitle $40,000,000 for each of fiscal 
years 2008 through 2012, to remain available until expended.
    ``(b) Administrative Expenses.--Not more than 5 percent of the 
amount appropriated under subsection (a) for a fiscal year shall be 
used for administrative expenses of the Commission.

``SEC. 386M. TERMINATION OF COMMISSION.

    ``This subtitle shall have no force or effect on or after October 
1, 2012.

``SEC. 386N. REGION OF NORTHERN BORDER ECONOMIC DEVELOPMENT COMMISSION.

    ``(a) Goal.--It shall be the goal of the Commission to address 
economic distress along the northern border of the United States east 
of, and including, Cayuga County, New York, especially in rural areas.
    ``(b) Counties Included in Northern Border Region.--Consistent with 
the goal described in subsection (a), the region of Commission shall 
include the following counties:
            ``(1) In Maine, the counties of Aroostook, Franklin, 
        Oxford, Somerset, and Washington.
            ``(2) In New Hampshire, the county of Coos.
            ``(3) In New York, the counties of Cayuga, Clinton, 
        Franklin, Jefferson, Oswego, and St. Lawrence.
            ``(4) In Vermont, the counties of Essex, Franklin, Grand 
        Isle, and Orleans.
    ``(c) Contiguous Counties.--
            ``(1) In general.--Subject to paragraph (2), in addition to 
        the counties listed in subsection (b), the region of Commission 
        shall include the following counties:
                    ``(A) In Maine, the counties of Androscoggin, 
                Kennebec, Penobscot, Piscataquis, and Waldo.
                    ``(B) In New York, the counties of Essex, Hamilton, 
                Herkimer, Lewis, Oneida, and Seneca.
                    ``(C) In Vermont, the county of Caledonia.
            ``(2) Recommendations to congress.--As part of an annual 
        report submitted under section 386K, the Commission may 
        recommend to Congress removal of a county listed in paragraph 
        (1) from the region on the basis that the county no longer 
        exhibits 2 or more of the following economic distress factors: 
        population loss, poverty, income levels, and unemployment.
    ``(d) Examination of Additional Counties and Areas for Inclusion in 
the Region.--
            ``(1) In general.--Not later than one year after the date 
        of enactment of this Act, the Commission--
                    ``(A) shall examine all counties that border the 
                region of the Commission specified in subsection (a), 
                including the political subdivisions and census tracts 
                within such counties; and
                    ``(B) may add a county or any portion of a county 
                examined under subparagraph (A)to the region, if the 
                Commission determines that the county or portion--
                            ``(i) is predominantly rural in nature; and
                            ``(ii) exhibits significant economic 
                        distress in terms of population loss, poverty, 
                        income levels, unemployment, or other economic 
                        indicator that the Commission considers 
                        appropriate.
            ``(2) Priority.--In carrying out paragraph (1)(A), the 
        Commission shall first examine the following counties:
                    ``(A) In Maine, the counties of Hancock and Knox.
                    ``(B) In New Hampshire, the counties of Grafton, 
                Carroll, and Sullivan.
                    ``(C) In New York, the counties of Fulton, Madison, 
                Warren, Saratoga, and Washington.
                    ``(D) In Vermont, the county of Lamoille.
    ``(e) Addition of Counties and Other Areas.--
            ``(1) Recommendations.--Following the one-year period 
        beginning on the date of enactment of this Act, as part of an 
        annual report submitted under section 386K, the Commission may 
        recommend to Congress additional counties or portions of 
        counties for inclusion in the region.
            ``(2) Areas of economic distress.--The Commission may 
        recommend that an entire county be included in the region on 
        the basis of one or more distressed areas within the county.
            ``(3) Assessments of economic conditions.--The Commission 
        may provide technical and financial assistance to a county that 
        is not included in the region for the purpose of conducting an 
        economic assessment of the county. The results of such an 
        assessment may be used by the Commission in making 
        recommendations under paragraph (1).
    ``(f) Limitation.--A county eligible for assistance from the 
Appalachian Regional Commission under subtitle IV of title 40, United 
States Code, shall not be eligible for assistance from the Northern 
Border Economic Development Commission.''.

             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. LOANS AND GRANTS FOR ELECTRIC GENERATION AND TRANSMISSION.

    (a) In General.--Section 4 of the Rural Electrification Act of 1936 
(7 U.S.C. 904) is amended in the first sentence by striking 
``authorized and empowered, from the sums hereinbefore authorized, to'' 
and inserting ``shall''.
    (b) Rural Communities With Extremely High Energy Costs.--Section 
19(a) of the Rural Electrification Act of 1936 (7 U.S.C. 918a(a)) is 
amended in the matter preceding paragraph (1) by striking ``may'' and 
inserting ``shall''.

SEC. 6103. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN 
              GUARANTEES.

    The Rural Electrification Act of 1936 is amended by inserting after 
section 4 (7 U.S.C. 904) the following:

``SEC. 5. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN GUARANTEES.

    ``(a) In General.--For electrification baseload generation loan 
guarantees, the Secretary shall, at the request of the borrower, charge 
an upfront fee to cover the costs of the loan guarantee.
    ``(b) Fee.--
            ``(1) In general.--The fee described in subsection (a) for 
        a loan guarantee shall be at least equal to the costs of the 
        loan guarantee (within the meaning of section 502(5)(C) of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
            ``(2) Separate fee.--The Secretary may establish a separate 
        fee for each loan.
    ``(c) Eligibility.--To be eligible for an electrification baseload 
generation loan guarantee under this section, a borrower shall--
            ``(1) provide a rating of the loan, exclusive of the 
        Federal guarantee, by an organization identified by the 
        Securities and Exchange Commission as a nationally recognized 
        statistical rating organization that determines that the loan 
        has at least a AA rating, or equivalent rating, as determined 
        by the Secretary; or
            ``(2) obtain insurance or a guarantee for the full and 
        timely repayment of principal and interest on the loan from an 
        entity that has at least an AA or equivalent rating by a 
        nationally recognized statistical rating organization.
    ``(d) Limitation.--Funds received from a borrower to pay for the 
fees described in this section shall not be derived from a loan or 
other debt obligation that is made or guaranteed by the Federal 
Government.''.

SEC. 6104. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED ENERGY 
              EFFICIENCY AND DEMAND REDUCTION.

    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 To Allow Loans for Improved Energy 
Efficiency and Demand Reduction.--
            ``(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 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. 6105. RURAL ELECTRIFICATION ASSISTANCE.

    Section 13 of the Rural Electrification Act of 1936 (7 U.S.C. 913) 
is amended to read as follows:

``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.--
                    ``(A) In general.--Except as provided otherwise in 
                this Act, the term `rural area' means the farm and 
                nonfarm population of--
                            ``(i) any area described in section 
                        343(a)(13)(A) of the Consolidated Farm and 
                        Rural Development Act (7 U.S.C. 
                        1991(a)(13)(A)); and
                            ``(ii) 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.
                    ``(B) Rural broadband access.--For the purpose of 
                loans and loan guarantees made under section 601, the 
                term `rural area' has the meaning given the term in 
                section 343(a)(13)(C) of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 1991(a)(13)(C)).
            ``(4) Territory.--The term `territory' includes any insular 
        possession of the United States.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.''.

SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
              TELEPHONE PURPOSES.

    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''.

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 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, 
emergency communications equipment providers, 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--
            ``(1) 911 access;
            ``(2) integrated interoperable emergency communications, 
        including multiuse networks that--
                    ``(A) serve rural areas; and
                    ``(B) provide commercial services 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) Regulations.--The Secretary shall--
            ``(1) not later than 90 days after the date of enactment of 
        this subsection, promulgate proposed regulations to carry out 
        this section; and
            ``(2) not later than 90 days after the publication of 
        proposed rules to carry out this section, adopt final rules.
    ``(d) Authorization of Appropriations.--The Secretary shall use to 
make loans under this section any funds otherwise made available for 
telephone or broadband loans for each of fiscal years 2007 through 
2012.''.

SEC. 6108. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.

    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 TO RURAL ELECTRIC COOPERATIVES.

    ``(a) Definition of Renewable Energy Source.--In this section, the 
term `renewable energy source' has the meaning given the term 
`qualified energy resources' in section 45(c)(1) of the Internal 
Revenue Code of 1986.
    ``(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--
            ``(1) electric generation from renewable energy resources 
        for resale to rural and nonrural residents; and
            ``(2) transmission lines principally for the purpose of 
        wheeling power from 1 or more renewable energy sources.
    ``(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. AGENCY PROCEDURES.

    Title III of the Rural Electrification Act of 1936 is amended by 
inserting after section 317 (as added by section 6108) the following:

``SEC. 318. AGENCY PROCEDURES.

    ``(a) Customer Service.--The Secretary shall ensure that loan 
applicants under this Act are contacted at least once each month by the 
Rural Utilities Service regarding the status of any pending loan 
applications.
    ``(b) Financial Need.--The Secretary shall ensure that--
            ``(1) an applicant for any grant program administered by 
        the Rural Utilities Service has an opportunity to present 
        special economic circumstances in support of the grant, such as 
        the high cost of living, out migration, low levels of 
        employment, weather damage, or environmental loss; and
            ``(2) the special economic circumstances presented by the 
        applicant are considered in determining the financial need of 
        the applicant.
    ``(c) Mobile Digital Wireless.--To facilitate the transition from 
analog wireless service to digital mobile wireless service, the 
Secretary may adjust population limitations under this Act related to 
digital mobile wireless service up to the level permitted under section 
601.
    ``(d) 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 to the Secretary.''.

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) Definition of Broadband Service.--In this section:
            ``(1) In general.--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) Mobile broadband.--The term `broadband service' 
        includes any service described in paragraph (1) that is 
        provided over a licensed spectrum through the use of a mobile 
        station or receiver communicating with a land station or other 
        mobile stations communicating among themselves.
    ``(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 service, had no terrestrial broadband service provider.
            ``(3) Offer of service.--For purposes of this section, a 
        provider shall be considered to offer broadband service in a 
        rural area if the provider makes the broadband service 
        available to households in the rural area at not more than 
        average prices as compared to the prices at which similar 
        services are made available in the nearest urban area, as 
        determined by the Secretary.
    ``(d) Eligible Entities.--
            ``(1) Requirements.--
                    ``(A) In general.--To be eligible to obtain a loan 
                or loan guarantee under this section, an entity shall--
                            ``(i) have the ability to furnish, improve, 
                        or extend a broadband service to a rural area;
                            ``(ii) submit to the Secretary a proposal 
                        that meets the requirements of this section for 
                        a project to offer to provide service to at 
                        least 25 percent of households in a specified 
                        rural area that, as of the date on which the 
                        proposal is submitted, are not offered 
                        broadband service by a terrestrial broadband 
                        service provider; and
                            ``(iii) agree to complete buildout of the 
                        broadband service described in the proposal not 
                        later than 3 years after the date on which a 
                        loan or loan guarantee under this section is 
                        received.
                    ``(B) Prohibition.--In carrying out this section, 
                the Secretary may not make a loan or loan guarantee for 
                a project in any specific area in which broadband 
                service is offered by 3 or more terrestrial service 
                providers that offer services that are comparable to 
                the services proposed by the applicant.
                    ``(C) Equity and market survey requirements.--
                            ``(i) 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.
                            ``(ii) Credit.--Recurring revenues of an 
                        entity, including broadband service client 
                        revenues, may be credited toward the cost share 
                        required under clause (i).
                            ``(iii) Market survey.--
                                    ``(I) In general.--The Secretary 
                                may require an entity that proposes to 
                                have a subscriber projection 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.
            ``(2) 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.
            ``(3) Adequacy of security.--The Secretary shall ensure 
        that the type, amount, and method of security used to secure 
        any loan or loan guarantee provided under this section is 
        commensurate to the risk involved with the loan or loan 
        guarantee, particularly if the loan or loan guarantee is issued 
        to a financially-healthy, strong, and stable entity.
            ``(4) Limitation.--No entity (including subsidiaries of an 
        entity) may acquire more than 20 percent of the resources of 
        the program under this section in any fiscal year, as 
        determined by the Secretary.
            ``(5) Notice requirement.--The Secretary shall include a 
        notice of applications under this section on the website of the 
        Secretary for a period of not less than 90 days.
            ``(6) Proposal information.--
                    ``(A) Public access.--The Secretary shall make 
                available on the website of the Secretary during the 
                consideration of a loan by the Secretary--
                            ``(i) the name of the applicant;
                            ``(ii) a description and geographical 
                        representation of the proposed area of 
                        broadband service;
                            ``(iii) a geographical representation and 
                        numerical estimate of the households that have 
                        no terrestrial broadband service offered in the 
                        proposed service area of the project; and
                            ``(iv) such other relevant information that 
                        the Secretary determines to be appropriate.
                    ``(B) Proprietary information.--In making 
                information available relating to a loan proposal as 
                described in subparagraph (A), the Secretary shall not 
                make available information that is proprietary (within 
                the meaning of section 552(b)(4) of title 5, United 
                States Code) to the business interests of the loan 
                applicant.
            ``(7) Timeline.--The Secretary shall establish a timeline 
        on the website for the Secretary for tracking applications 
        received under this section.
            ``(8) Additional information and determination.--
                    ``(A) Prompt processing of applications.--
                            ``(i) In general.--The Secretary shall 
                        establish, by regulation, procedures to ensure 
                        prompt processing of loan and loan guarantee 
                        applications under this section.
                            ``(ii) Time limits.--Subject to clause 
                        (iii), the regulations shall establish general 
                        time limits for action by the Secretary and 
                        applicant response.
                            ``(iii) Extensions.--The Secretary may 
                        grant an extension for a time limit established 
                        under clause (ii).
                            ``(iv) Annual reports.--The Secretary shall 
                        publish an annual report that--
                                    ``(I) describes processing times 
                                for loan and loan guarantee 
                                applications under this section; and
                                    ``(II) provides an explanation for 
                                any processing time extensions required 
                                by the Secretary.
                    ``(B) Additional information.--Not later than 60 
                days after the date on which an applicant submits an 
                application, the Secretary shall request any additional 
                information required for the application to be 
                complete.
                    ``(C) Determination.--Not later than 180 days after 
                the date on which an applicant submits a completed 
                application, the Secretary shall make a determination 
                of whether to approve the application.
            ``(9) Loan closing.--Not later than 45 days after the date 
        on which the Secretary approves an application, documents 
        necessary for the closing of the loan or loan guarantee shall 
        be provided to applicant.
            ``(10) Fund disbursement.--Not later than 10 business days 
        after the date of the receipt of valid documentation requesting 
        disbursement of the approved, closed loan, the disbursement of 
        loan funds shall occur.
            ``(11) Preapplication process.--The Secretary shall 
        establish an optional preapplication process under which an 
        applicant may apply to the Rural Utilities Service for a 
        binding determination of area eligibility prior to preparing a 
        full loan application.
            ``(12) Pending applications.--An application for a loan or 
        loan guarantee under this section, or a petition for 
        reconsideration of a decision on such an application, that is 
        pending on the date of enactment of this paragraph shall be 
        considered under eligibility and feasibility criteria that are 
        no less favorable to the applicant than the criteria in effect 
        on the original date of submission of the application.
    ``(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).
            ``(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 outside rural communities.
    ``(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 subsection (c) shall--
                    ``(A) bear interest at an annual rate of, as 
                determined by the Secretary--
                            ``(i) in the case of a direct loan, the 
                        lower of--
                                    ``(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) except as provided in paragraph (2), have a 
                term not to exceed the useful life of the assets 
                constructed, improved, or acquired with the proceeds of 
                the loan or extension of credit.
            ``(2) Term of loan exception.--A loan or loan guarantee 
        under subsection (c) may have a term not to exceed 30 years if 
        the Secretary determines that the loan security is sufficient.
            ``(3) Recurring revenue.--The Secretary shall consider the 
        recurring revenues of the entity at the time of application in 
        determining an adequate level of credit support.
    ``(h) 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-related loan made under this Act if the use of the 
proceeds for that purpose will further the construction, improvement, 
or acquisition of facilities and equipment for the provision of 
broadband service in rural areas.
    ``(i) Reports.--Not later than 1 year after the date of enactment 
of the Food and Energy Security Act of 2007, and biennially thereafter, 
the Administrator shall submit to Congress a report that--
            ``(1) describes the ways in which the Administrator 
        determines under subsection (b)(1) that a service enables a 
        subscriber to originate and receive high-quality voice, data, 
        graphics, and video; and
            ``(2) provides a detailed list of services that have been 
        granted assistance under this section.
    ``(j) 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.
            ``(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.--Based on information available from 
                the most recent decennial census, 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.
    ``(k) Termination of Authority.--No loan or loan guarantee may be 
made under this section after September 30, 2012.''.
    (b) National Center for Rural Telecommunications Assessment.--Title 
VI of Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.) is 
amended by adding at the end the following:

``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.

    ``(a) Establishment of Center.--The Secretary shall designate a 
National Center for Rural Telecommunications Assessment (referred to in 
this section as the `Center').
    ``(b) Criteria.--In designating the Center, the Secretary shall 
ensure that--
            ``(1) the Center is an entity with a focus on rural policy 
        research and a minimum of 5 years experience in rural 
        telecommunications research and assessment;
            ``(2) the Center is capable of assessing broadband services 
        in rural areas; and
            ``(3) the Center has significant experience with other 
        rural economic development centers and organizations in the 
        assessment of rural policies and formulation of policy 
        solutions at the local, State, and Federal levels.
    ``(c) Duties.--The Center shall--
            ``(1) assess the effectiveness of programs under this 
        section in increasing broadband availability and use in rural 
        areas, especially in those rural communities identified by the 
        Secretary as having no service before award of a broadband loan 
        or loan guarantee under section 601(c);
            ``(2) develop assessments of broadband availability in 
        rural areas, working with existing rural development centers 
        selected by the Center;
            ``(3) identify policies and initiatives at the local, 
        State, and Federal level that have increased broadband 
        availability and use in rural areas;
            ``(4) conduct national studies of rural households and 
        businesses focusing on the adoption of, barriers to, and use of 
        broadband services, with specific attention addressing the 
        economic, social and educational consequences of 
        inaccessibility to affordable broadband services;
            ``(5) provide reports to the public on the activities 
        carried out and funded under this section; and
            ``(6) conduct studies and provide recommendations to local, 
        State, and Federal policymakers on effective strategies to 
        bring affordable broadband services to rural citizens residing 
        outside of the municipal boundaries of rural cities and towns.
    ``(d) Reporting Requirements.--Not later than December 1, 2008, and 
each year thereafter through December 1, 2012, the Center shall submit 
to the Secretary a report that--
            ``(1) describes the activities of the Center, the results 
        of research carried out by the Center, and any additional 
        information for the preceding fiscal year that the Secretary 
        may request; and
            ``(2) includes--
                    ``(A) assessments of the programs carried out under 
                this section and section 601;
                    ``(B) annual assessments on the effects of the 
                policy initiatives identified under subsection (c)(3); 
                and
                    ``(C) results from the national studies of rural 
                households and businesses conducted under subsection 
                (c)(4).
    ``(e) 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.''.
    (c) Regulations.--The Secretary may promulgate such regulations as 
are necessary to implement the amendments made by this section.

SEC. 6111. COMPREHENSIVE RURAL BROADBAND.

    (a) Comprehensive Rural Broadband Strategy.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the Chairman of 
        the Federal Communications Commission, in coordination with the 
        Secretary, shall submit to the Committees on Energy and 
        Commerce and Agriculture of the House of Representatives and 
        the Committees on Commerce, Science, and Transportation and 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        describing a comprehensive rural broadband strategy that 
        includes--
                    (A) recommendations--
                            (i) to promote interagency coordination of 
                        Federal agencies in regards to policies, 
                        procedures, and targeted resources, and to 
                        improve and streamline the polices, programs, 
                        and services;
                            (ii) to coordinate among Federal agencies 
                        regarding existing rural broadband or rural 
                        initiatives that could be of value to rural 
                        broadband development;
                            (iii) to address both short- and long-term 
                        solutions and needs assessments for a rapid 
                        build-out of rural broadband solutions and 
                        applications for Federal, State, regional, and 
                        local government policy makers; and
                            (iv) 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
                    (B) a description of goals and timeframes to 
                achieve the strategic plans and visions identified in 
                the report.
            (2) Updates.--The Chairman of the Federal Communications 
        Commission, in coordination with the Secretary shall update and 
        evaluate the report described in paragraph (1) on an annual 
        basis.
    (b) Rural Broadband.--Section 306(a)(20)(E) of the Consolidated 
Rural Development Act (7 U.S.C. 1926(a)(20)(E)) is amended by striking 
``dial-up Internet access or''.

SEC. 6112. 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) 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) in which more than 20 percent of the beneficiaries 
        do not have modern, affordable, or reliable utility services, 
        as determined by the Secretary.
            ``(2) Utility service.--The term `utility service' means 
        electric, telecommunications, broadband, or water service.
    ``(b) Initiative.--The Secretary, in consultation with local 
governments and Federal agencies, may implement an initiative to 
identify and improve the availability and quality of utility services 
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 extended repayment terms, for use 
        in facilitating improved utility service in substantially 
        underserved trust areas;
            ``(2) may waive nonduplication restrictions, matching fund 
        requirements, credit support requirements, or other regulations 
        from any loan or grant program administered by the Rural 
        Utilities Service to facilitate the construction, acquisition, 
        or improvement of infrastructure used to deliver affordable 
        utility services to substantially underserved trust areas;
            ``(3) may assign the highest funding priority to projects 
        in substantially underserved trust areas;
            ``(4) shall make any loan or loan guarantee found to be 
        financially feasible to provide service to substantially 
        underserved trust areas; and
            ``(5) may conduct research and participate in regulatory 
        proceedings to recommend policy changes to enhance utility 
        service in 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. 6113. STUDY OF FEDERAL ASSISTANCE FOR BROADBAND INFRASTRUCTURE.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of--
            (1) how the Rural Utilities Service takes into account 
        economic factors in the decisionmaking process of the Service 
        in allocating Federal broadband benefits;
            (2) what other considerations the Rural Utilities Service 
        takes into account in making benefit awards;
            (3) what economic forces prompt Rural Utilities Service 
        broadband loan applicants to seek Federal funding rather than 
        relying on the private market alone;
            (4) how awards made by the Rural Utilities Service of 
        Federal benefits impact the expansion of broadband 
        infrastructure by the private sector; and
            (5) what changes to Federal policy are needed to further 
        encourage technology expansion by private broadband service 
        providers.
    (b) Report.--Not later than 30 months after the date of enactment 
of this Act, the Comptroller General of the United States 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 
subsection (a), including any findings and recommendations.

                   Subtitle C--Connect the Nation Act

SEC. 6201. SHORT TITLE.

    This subtitle may be cited as the ``Connect the Nation Act''.

SEC. 6202. GRANTS TO ENCOURAGE STATE INITIATIVES TO IMPROVE BROADBAND 
              SERVICE.

    (a) Definitions.--In this section:
            (1)  Broadband service.--The term ``broadband service'' 
        means any service that connects the public to the Internet with 
        a data transmission-rate equivalent that is at least 200 
        kilobits per second or 200,000 bits per second, or any 
        successor transmission-rate established by the Federal 
        Communications Commission for broadband, in at least 1 
        direction.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        nonprofit organization that, in conjunction with State agencies 
        and private sector partners, carries out an initiative under 
        the section to identify and track the availability and adoption 
        of broadband services within States.
            (3) Nonprofit organization.--The term ``nonprofit 
        organization'' means an organization that--
                    (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from tax under 
                section 501(a) of that Code;
                    (B) has net earnings that do not inure to the 
                benefit of any member, founder, contributor, or 
                individual associated with the organization;
                    (C) has an established record of competence and 
                working with public and private sectors to accomplish 
                widescale deployment and adoption of broadband services 
                and information technology; and
                    (D) has a board of directors that does not have a 
                majority of individuals who are employed by, or 
                otherwise associated with, any Federal, State, or local 
                government or agency.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
    (b) Program.--The Secretary shall award grants to eligible entities 
to pay the Federal share of the cost of the development and 
implementation of statewide initiatives to identify and track the 
availability and adoption of broadband services within States.
    (c) Purposes.--The purpose of a grant made this section shall be--
            (1) to ensure, to the maximum extent practicable, that all 
        citizens and businesses in States have access to affordable and 
        reliable broadband service;
            (2) to promote improved technology literacy, increased 
        computer ownership, and home broadband use among those citizens 
        and businesses;
            (3) to establish and empower local grassroots technology 
        teams in States to plan for improved technology use across 
        multiple community sectors; and
            (4) to establish and sustain an environment that supports 
        broadband services and information technology investment.
    (d)  Eligibility.--To be eligible to receive a grant for an 
initiative under this section, an eligible entity shall--
            (1) submit an application to the Secretary at such time, in 
        such manner, and containing such information as the Secretary 
        may require; and
            (2) provide matching non-Federal funds in an amount that is 
        equal to not less than 20 percent of the total cost of the 
        initiative.
    (e) Competitive Basis.--Grants under this section shall be awarded 
on a competitive basis.
    (f) Peer Review.--
            (1) In general.--The Secretary shall require technical and 
        scientific peer review of applications for grants under this 
        section.
            (2) Review procedures.--The Secretary shall require that 
        any technical and scientific peer review group--
                    (A) be provided a written description of the grant 
                to be reviewed;
                    (B) provide the results of any review by the group 
                to the Secretary; and
                    (C) certify that the group will enter into such 
                voluntary nondisclosure agreements as are necessary to 
                prevent the unauthorized disclosure of confidential and 
                propriety information provided by broadband service 
                providers in connection with projects funded by a grant 
                under this section.
    (g) Use of Funds.--A grant awarded to an eligible entity under this 
section shall be used--
            (1) to provide a baseline assessment of broadband service 
        deployment in 1 or more participating States;
            (2) to identify and track--
                    (A) areas in the participating States that have low 
                levels of broadband service deployment;
                    (B) the rate at which individuals and businesses 
                adopt broadband service and other related information 
                technology services; and
                    (C) possible suppliers of the services;
            (3) to identify barriers to the adoption by individuals and 
        businesses of broadband service and related information 
        technology services, including whether--
                    (A) the demand for the services is absent; and
                    (B) the supply for the services is capable of 
                meeting the demand for the services;
            (4) to create and facilitate in each county or designated 
        region in the participating States a local technology planning 
        team--
                    (A) with members representing a cross section of 
                communities, including representatives of business, 
                telecommunications labor organizations, K-12 education, 
                health care, libraries, higher education, community-
                based organizations, local government, tourism, parks 
                and recreation, and agriculture; and
                    (B) that shall--
                            (i) benchmark technology use across 
                        relevant community sectors;
                            (ii) set goals for improved technology use 
                        within each sector; and
                            (iii) develop a tactical business plan for 
                        achieving the goals of the team, with specific 
                        recommendations for online application 
                        development and demand creation;
            (5) to work collaboratively with broadband service 
        providers and information technology companies to encourage 
        deployment and use, especially in unserved, underserved, and 
        rural areas, through the use of local demand aggregation, 
        mapping analysis, and the creation of market intelligence to 
        improve the business case for providers to deploy;
            (6) to establish programs to improve computer ownership and 
        Internet access for unserved, underserved, and rural 
        populations;
            (7) to collect and analyze detailed market data concerning 
        the use and demand for broadband service and related 
        information technology services;
            (8) to facilitate information exchange regarding the use 
        and demand for broadband services between public and private 
        sectors; and
            (9) to create within the participating States a geographic 
        inventory map of broadband service that shall--
                    (A) identify gaps in the service through a method 
                of geographic information system mapping of service 
                availability at the census block level; and
                    (B) provide a baseline assessment of statewide 
                broadband deployment in terms of households with high-
                speed availability.
    (h) Participation Limitation.--For each participating State, an 
eligible entity may not receive a new grant under this section to carry 
out the activities described in subsection (g) within the participating 
State if the eligible entity obtained prior grant awards under this 
section to carry out the same activities in the participating State for 
each of the previous 4 fiscal years.
    (i) Report.--Each recipient of a grant under this section shall 
submit to the Secretary a report describing the use of the funds 
provided by the grant.
    (j) No Regulatory Authority.--Nothing in this section provides any 
public or private entity with any regulatory jurisdiction or oversight 
authority over providers of broadband services or information 
technology.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $40,000,000 for each of fiscal 
years 2008 through 2012.

   Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 6301. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

    Section 1670(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 6302. TELEMEDICINE, LIBRARY CONNECTIVITY, PUBLIC TELEVISION, AND 
              DISTANCE LEARNING SERVICES IN RURAL AREAS.

    (a) In General.--Chapter 1 of subtitle D of title XXII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et 
seq.) is amended in the chapter heading by striking ``AND DISTANCE 
LEARNING'' and inserting ``, LIBRARY CONNECTIVITY, PUBLIC TELEVISION, 
AND DISTANCE LEARNING''.
    (b) Purpose.--Section 2331 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 950aaa) is amended by striking 
``telemedicine services and distance learning'' and inserting 
``telemedicine services, library connectivity, and distance learning''.
    (c) Definitions.--Section 2332 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-1) is amended--
            (1) by redesignating paragraphs (1) through (3) as 
        paragraphs (2) through (4), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Connectivity.--The term `connectivity' means the 
        ability to use a range of high-speed digital services or 
        networks.''.
    (d) Telemedicine, Library Connectivity, and Distance Learning 
Services in Rural Areas.--Section 2333 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-2) is amended--
            (1) in the section heading, by striking ``and distance 
        learning'' and inserting ``, library connectivity, public 
        television, and distance learning'';
            (2) in subsection (a), by striking ``construction of 
        facilities and systems to provide telemedicine services and 
        distance learning services'' and inserting ``construction and 
        use of facilities and systems to provide telemedicine services, 
        library connectivity, distance learning services, and public 
        television station digital conversion'';
            (3) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2) Form.--The Secretary shall establish by notice the 
        amount of the financial assistance available to applicants in 
        the form of grants, costs of money loans, combinations of 
        grants and loans, or other financial assistance so as to--
                    ``(A)(i) further the purposes of this chapter; and
                    ``(ii) in the case of loans, result in the maximum 
                feasible repayment to the Federal Government of the 
                loan; and
                    ``(B) to ensure that funds made available to carry 
                out this chapter are used to the maximum extent 
                practicable to assist useful and needed projects.'';
            (4) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``financial assistance'' and 
                        inserting ``assistance in the form of grants'';
                            (ii) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (B)--
                                    (I) by striking ``service or 
                                distance'' and inserting ``services, 
                                library connectivity services, public 
                                television station digital conversion, 
                                or distance'';
                                    (II) by striking the period at the 
                                end and inserting a semicolon; and
                                    (III) by adding at the end the 
                                following:
                    ``(C) libraries or library support organizations;
                    ``(D) public television stations and the parent 
                organizations of public television stations; and
                    ``(E) schools, libraries, and other facilities 
                operated by the Bureau of Indian Affairs or the Indian 
                Health Service.'';
                    (B) in paragraph (4), by striking ``services or 
                distance'' and inserting ``service, library 
                connectivity, public television station digital 
                conversion, or distance''; and
                    (C) by adding at the end the following:
            ``(5) Public television grants.--The Secretary shall 
        establish a separate competitive process to determine the 
        allocation of grants under this chapter to public television 
        stations.'';
            (5) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``1 or more of'' after ``considering'';
                    (B) in paragraph (12), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (13) as paragraph 
                (14); and
                    (D) by inserting after paragraph (12) the 
                following:
            ``(13) the cost and availability of high-speed network 
        access; and'';
            (6) by striking subsection (f) and inserting the following:
    ``(f) Use of Funds.--Financial assistance provided under this 
chapter shall be used for--
            ``(1) the development, acquisition, and digital 
        distribution of instructional programming to rural users;
            ``(2) the development and acquisition, through lease or 
        purchase, of computer hardware and software, audio and visual 
        equipment, computer network components, telecommunications 
        terminal equipment, telecommunications transmission facilities, 
        data terminal equipment, or interactive video equipment, 
        teleconferencing equipment, or other facilities that would 
        further telemedicine services, library connectivity, or 
        distance learning services;
            ``(3) the provision of technical assistance and instruction 
        for the development or use of the programming, equipment, or 
        facilities referred to in paragraphs (1) and (2);
            ``(4) the acquisition of high-speed network transmission 
        equipment or services that would not otherwise be available or 
        affordable to the applicant;
            ``(5) costs relating to the coordination and collaboration 
        among and between libraries on connectivity and universal 
        service initiatives, or the development of multi-library 
        connectivity plans that benefit rural users;
            ``(6) competitive grants, for public television stations or 
        a consortium of public television stations, to provide 
        education, outreach, and assistance, in cooperation with 
        community groups, to rural communities and vulnerable 
        populations with respect to the digital television transition, 
        and particularly the acquisition, delivery, and installation of 
        the digital-to-analog converter boxes described in section 3005 
        of the Digital Television Transition and Public Safety Act of 
        2005 (47 U.S.C. 309 note); or
            ``(7) other uses that are consistent with this chapter, as 
        determined by the Secretary.''; and
            (7) in subsection (i)--
                    (A) in paragraph (1), by striking ``telemedicine or 
                distance'' and inserting ``telemedicine, library 
                connectivity, public television station digital 
                conversion, or distance''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``telemedicine or distance'' and inserting 
                        ``telemedicine, library connectivity, or 
                        distance''; and
                            (ii) in subparagraph (B), by inserting 
                        ``nonproprietary information contained in'' 
                        before ``the applications''.
    (e) Administration.--Section 2334 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-3) is amended--
            (1) in subsection (a), by striking ``services or distance'' 
        and inserting ``services, library connectivity, or distance''; 
        and
            (2) in subsection (d), by striking ``or distance learning'' 
        and all that follows through the end of the subsection and 
        inserting ``, library connectivity, or distance learning 
        services through telecommunications in rural areas.''.
    (f) 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''.
    (g) 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''.

                       Subtitle E--Miscellaneous

SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT 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) Assisting organization.--The term `assisting 
        organization' means a nonprofit organization, institution of 
        higher education, or units of government with expertise, as 
        determined by the Secretary, to assist eligible producers and 
        entities described in subsection (b)(1) through--
                    ``(A) the provision of market research, training, 
                or technical assistance; or
                    ``(B) the development of supply networks for value-
                added products that strengthen the profitability of 
                small and mid-sized family farms.
            ``(2) Technical assistance.--The term `technical 
        assistance' means managerial, financial, operational, and 
        scientific analysis and consultation to assist an individual or 
        entity (including a recipient or potential recipient of a grant 
        under this section)--
                    ``(A) to identify and evaluate practices, 
                approaches, problems, opportunities, or solutions; and
                    ``(B) to assist in the planning, implementation, 
                management, operation, marketing, or maintenance of 
                projects authorized under this section.
            ``(3) Value-added agricultural product.--
                    ``(A) In general.--The term `value-added 
                agricultural product' means any agricultural commodity 
                or product that--
                            ``(i)(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; or
                            ``(III) is physically segregated in a 
                        manner that results in the enhancement of the 
                        value of the agricultural commodity or product; 
                        and
                            ``(ii) 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 has 
                                been expanded; and
                                    ``(II) a greater portion of the 
                                revenue derived from the marketing, 
                                processing, or physical segregation of 
                                the agricultural commodity or product 
                                is available to the producer of the 
                                commodity or product.
                    ``(B) Inclusion.--The term `value-added 
                agricultural products' includes--
                            ``(i) farm- or ranch-based renewable 
                        energy, including the sale of E-85 fuel; and
                            ``(ii) the aggregation and marketing of 
                        locally-produced agricultural food products.''.
    (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 (2)--
                    (A) in subparagraph (A), by striking ``exceed 
                $500,000'' and inserting ``exceed--
                            ``(i) $300,000 in the case of grants 
                        including working capital; and
                            ``(ii) $100,000 in the case of all other 
                        grants.''; and
                    (B) by adding at the end the following:
                    ``(C) Research, training, technical assistance, and 
                outreach.--The amount of grant funds provided to an 
                assisting organization for a fiscal year may not exceed 
                10 percent of the total amount of funds that are used 
                to make grants for the fiscal year under this 
                subsection.'';
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(C) to conduct market research, provide training 
                and technical assistance, develop supply networks, or 
                provide program outreach.''; and
            (3) by striking paragraph (4) and inserting the following:
            ``(4) Term.--A grant under this section 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.--
                    ``(A) In general.--In awarding grants, the 
                Secretary shall give the priority to projects that--
                            ``(i) contribute to increasing 
                        opportunities for beginning farmers or 
                        ranchers, socially disadvantaged farmers or 
                        ranchers, and operators of small- and medium-
                        sized farms and ranches that are not larger 
                        than family farms; and
                            ``(ii) support new ventures that do not 
                        have well-established markets or product 
                        development staffs and budgets, including the 
                        development of local food systems and the 
                        development of infrastructure to support local 
                        food systems.
                    ``(B) Participation.--To the maximum extent 
                practicable, the Secretary shall provide grants to 
                projects that provide training and outreach activities 
                in areas that have, as determined by the Secretary, 
                received relatively fewer grants than other areas.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection for each of fiscal years 2008 through 
        2012.''.

SEC. 6402. 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''.

                 Subtitle F--Housing Assistance Council

SEC. 6501. SHORT TITLE.

    This title may be cited as the ``Housing Assistance Council 
Authorization Act of 2007''.

SEC. 6502. 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 such 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, and advice to 
        develop the business and administrative capabilities of rural 
        community-based housing development organizations;
            (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 
        Housing Assistance Council.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated for financial assistance under this section for the 
Housing Assistance Council--
            (1) $10,000,000 for fiscal year 2008; and
            (2) $15,000,000 for each of fiscal years 2009 and 2010.

SEC. 6503. AUDITS AND REPORTS.

    (a) Audit.--In any year in which the Housing Assistance Council 
receives funds under this title, the Comptroller General of the United 
States shall--
            (1) audit the financial transactions and activities of such 
        Council only with respect to such funds so received; and
            (2) submit a report detailing such audit to the Committee 
        on Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives.
    (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 10 years.

SEC. 6504. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES.

    None of the funds made available under this title may be used to 
provide direct housing assistance to any person not lawfully present in 
the United States.

SEC. 6505. LIMITATION ON USE OF AUTHORIZED AMOUNTS.

    None of the amounts authorized by this title may be used to lobby 
or retain a lobbyist for the purpose of influencing a Federal, State, 
or local governmental entity or officer.

                TITLE VII--RESEARCH AND RELATED MATTERS

  Subtitle A--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

SEC. 7001. DEFINITIONS.

    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 (6) through (8), (9) 
        through (14), (15), and (16) as paragraphs (7) through (9), 
        (11) through (16), (19), and (6), respectively, and moving the 
        paragraphs so as to appear in alphabetical order;
            (3) by inserting after paragraph (9) (as redesignated by 
        paragraph (2)) the following:
            ``(10) Hispanic-serving agricultural colleges and 
        universities.--The term `Hispanic-serving agricultural colleges 
        and universities' means a college or university that--
                    ``(A) qualifies as a Hispanic-serving institution; 
                and
                    ``(B) offers associate, bachelor's, or other 
                accredited degree programs in agriculture-related 
                fields.''; and
            (4) by striking paragraph (11) (as so redesignated) and 
        inserting the following:
            ``(11) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given the term in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).''.

SEC. 7002. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
              ECONOMICS ADVISORY BOARD.

            Section 1408 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is 
        amended--
                    (A) in subsection (g)(1), by striking ``$350,000'' 
                and inserting ``$500,000''; and
                    (B) in subsection (h), by striking ``2007'' and 
                inserting ``2012''.

SEC. 7003. VETERINARY MEDICINE LOAN REPAYMENT.

    Section 1415A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3151a) is amended--
            (1) by redesignating subsection (d) as subsection (g); and
            (2) by inserting after subsection (c) the following:
    ``(d) Initial Implementation.--To address the urgent security 
concerns of the United States with respect to public health, 
bioterrorism preparedness, and food supply security, in implementing 
the first phase of the veterinary medicine loan repayment program, the 
Secretary shall give priority to large and mixed animal practitioner 
shortages in rural communities.
    ``(e) Use of Funds.--None of the funds appropriated to the 
Secretary under subsection (g) may be used to carry out section 5379 of 
title 5, United States Code.
    ``(f) 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.''.

SEC. 7004. 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. 7005. GRANTS TO 1890 INSTITUTIONS 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. 7006. 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 ``Teaching, Extension, and Research Awards''; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) Establishment.--
                    ``(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. 7007. 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 ``and 2-Year 
        Postsecondary Education Teaching Programs'' and inserting ``, 
        2-Year Postsecondary Education, and Agriculture in the K-12 
        Classroom''; and
            (2) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``and institutions of higher education that 
                award an associate's degree'' and inserting ``, 
                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) Authorization of Appropriations.--Section 1417(l) of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(l)) is amended by striking ``2007'' and inserting 
``2012''.
    (c) 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 an annual report to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
describing the distribution of funds used to implement teaching 
programs under subsection (j).''.

SEC. 7008. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
              AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES 
              AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7009. 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 (b), by inserting ``(including the Food 
        Agricultural Policy Research Institute, the Agricultural and 
        Food Policy Center, the Rural Policy Research Institute, and 
        the Community Vitality Center)'' after ``research institutions 
        and organizations''; and
            (2) in subsection (d), by striking ``2007'' and inserting 
        ``2012''.

SEC. 7010. 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''.

SEC. 7011. 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. 7012. NUTRITION EDUCATION PROGRAM.

    (a) Definitions.--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 ``Sec. 1425.'' and 
        inserting the following:

``SEC. 1425. NUTRITION EDUCATION PROGRAM.

    ``(a) Definitions.--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 ``The Secretary'' and inserting the following:
    ``(b) Establishment.--The Secretary''; and
            (4) in subsection (c) (as so redesignated), by striking 
        ``In order to enable'' and inserting the following:
    ``(c) Employment and Training.--To enable''.
    (b) Funding to 1862, 1890, and Insular Area Institutions.--
Subsection (d) of section 1425 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175) (as 
redesignated by subsection (a)(1)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``Beginning'' and inserting the following:
    ``(d) Allocation of Funding.--Beginning''; and
            (2) in paragraph (2), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) Notwithstanding section 3(d)(2) of the Act of 
                May 8, 1914 (7 U.S.C. 343(d)(2)), the remainder shall 
                be allocated among the States as follows:
                            ``(i) $100,000 shall be distributed to each 
                        1862 and 1890 land-grant college and 
                        university.
                            ``(ii)(I) Subject to subclause (II), of the 
                        remainder, 10 percent for fiscal year 2008, 11 
                        percent for fiscal year 2009, 12 percent for 
                        fiscal year 2010, 13 percent for fiscal year 
                        2011, 14 percent for fiscal year 2012, and 15 
                        percent for each fiscal year thereafter, shall 
                        be distributed among the 1890 Institutions, to 
                        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 the income 
                                poverty guidelines in all States that 
                                have 1890 Institutions, as determined 
                                by the last preceding decennial census 
                                at the time each such additional amount 
                                is first appropriated.
                            ``(II) The total amount allocated under 
                        this clause shall not exceed the amount of the 
                        funds appropriated for the conduct of the 
                        expanded food and nutrition education program 
                        for the fiscal year that are in excess of the 
                        amount appropriated for the conduct of the 
                        program for fiscal year 2007.
                            ``(iii)(I) Subject to subclauses (II) and 
                        (III), the remainder shall be allocated to the 
                        1860 institution in each State (including the 
                        appropriate insular area institution and the 
                        University of the District of Columbia) in an 
                        amount that bears the same ratio to the total 
                        amount to be allocated under this subparagraph 
                        as--
                                    ``(aa) the population of the State 
                                living at or below 125 percent of the 
                                income poverty guidelines prescribed by 
                                the Office of Management and Budget 
                                (adjusted pursuant to section 673(2) of 
                                the Omnibus Budget Reconciliation Act 
                                of 1981 (42 U.S.C. 9902(2))); bears to
                                    ``(bb) the total population of all 
                                the States living at or below 125 
                                percent of the income poverty 
                                guidelines, as determined by the last 
                                preceding decennial census at the time 
                                each such additional amount is first 
                                appropriated.
                            ``(II) The total amount allocated under 
                        this clause to the University of the District 
                        of Columbia shall not exceed the amount 
                        described in clause (ii)(II), reduced by the 
                        amount allocated to the University of the 
                        District of Columbia under clause (ii).
                            ``(III) Nothing in this clause precludes 
                        the Secretary from developing educational 
                        materials and programs for persons in income 
                        ranges above the level designated in this 
                        clause.''.
    (c) Authorization of Appropriations.--Subsection (d)(3) of section 
1425 of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3175) (as redesignated by subsection 
(a)(1)) is amended--
            (1) by striking ``There is'' and inserting the following:
            ``(3) Authorization of appropriations.--There is''; and
            (2) by striking ``$83,000,000 for each of fiscal years 1996 
        through 2007'' and inserting ``$90,000,000 for each of fiscal 
        years 2008 through 2012''.
    (d) 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)''.
    (e) Effective Date.--The amendments made by this section take 
effect on October 1, 2007.

SEC. 7013. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE 
              RESEARCH.

    Section 1429 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended--
            (1) in paragraph (8), by striking ``and'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(10) support work with agricultural colleges and 
        universities to develop methods and practices of animal 
        husbandry that ensure the judicious use of antibiotics.''.

SEC. 7014. 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''.

SEC. 7015. 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. 7016. 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. 7017. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-GRANT 
              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. 7018. 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. 7019. 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. 7020. 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 land 
grant 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.
    ``(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. 7021. 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. 7022. 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 in the 
first sentence by striking ``2007'' and inserting ``2012.''.

SEC. 7023. 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)--
                    (A) in paragraph (1), by striking ``of consortia'';
                    (B) in paragraph (3), by striking ``, beginning 
                with the mentoring of students'' and all that follows 
                through ``doctoral degree''; and
                    (C) in paragraph (4)--
                            (i) by striking ``2 or more''; and
                            (ii) by striking ``, or between Hispanic-
                        serving'' and all that follows through ``the 
                        private sector,''; and
            (3) in subsection (c)--
                    (A) by striking ``$20,000,000'' and inserting 
                ``$40,000,000''; and
                    (B) by striking ``2007'' and inserting ``2012''.

SEC. 7024. 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 interest-bearing 
        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--
                    ``(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 subparagraph (A); 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 Hispanic-
                serving 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.--
            ``(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 
        agricultural colleges and universities.--
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary such 
                sums as are necessary to carry out this paragraph for 
                fiscal year 2008 and each fiscal year thereafter.
                    ``(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, or any other territory 
                or possession of the United States.
                    ``(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 and 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
                            ``(ii) administered by State institutions 
                        through cooperative agreements with the 
                        Hispanic-serving agricultural colleges and 
                        universities (as defined in section 1456 of the 
                        National Agricultural Research, Extension and 
                        Teaching Policy Act of 1977) in the State in 
                        accordance with regulations promulgated by the 
                        Secretary.''; and
            (2) in subsection (f)--
                    (A) in the subsection heading, by inserting ``and 
                Hispanic-Serving Agricultural Colleges and 
                Universities'' 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)''.

SEC. 7025. 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) in paragraph (3), by inserting ``Hispanic-serving 
        agricultural colleges and universities,'' after 
        ``universities,'';
            (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. 7026. 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. 7027. INDIRECT COSTS.

    Section 1462(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) is amended by 
striking ``shall not exceed 19 percent'' and inserting ``shall be the 
negotiated indirect rate of cost established for an institution by the 
appropriate Federal audit agency for the institution, not to exceed 30 
percent''.

SEC. 7028. 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. 7029. 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. 7030. 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. 7031. INDIRECT COST RECOVERY.

    Section 1473A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3319a) is amended in the second 
sentence by striking ``not exceeding 10 percent of the direct cost'' 
and inserting ``and shall be the negotiated indirect rate of cost for 
an institution by the appropriate Federal audit agency for the 
institution, not to exceed 30 percent.''

SEC. 7032. 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''.

SEC. 7033. AQUACULTURE RESEARCH FACILITIES.

    (a) Fish Disease Program.--Section 1475(f) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3322(f)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary''; and
            (2) by adding at the end the following:
            ``(2) Viral hemorrhagic septicemia.--
                    ``(A) In general.--The study of viral hemorrhagic 
                septicemia (referred to in this paragraph as `VHS') and 
                VHS management shall be considered an area of priority 
                research under this subsection.
                    ``(B) Consultation.--
                            ``(i) In general.--The Secretary shall 
                        consult with appropriate directors of State and 
                        tribal natural resource management and 
                        agriculture agencies in areas that are VHS 
                        positive as of the date of enactment of this 
                        paragraph to develop and implement a 
                        comprehensive set of priorities for managing 
                        VHS, including providing funds for research 
                        into the spread and control of the disease, 
                        surveillance, monitoring, risk evaluation, 
                        enforcement, screening, education and outreach, 
                        and management.
                            ``(ii) Consideration.--The Secretary shall 
                        provide special consideration to the 
                        recommendations of the directors described in 
                        clause (i) in the development of the VHS 
                        priorities.''.
    (b) Authorization of Appropriations.--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. 7034. RANGELAND RESEARCH.

    (a) Grants.--Section 1480(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3333(a)) is 
amended--
            (1) in paragraph (1), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) pilot programs to coordinate and conduct 
        collaborative projects to address natural resources management 
        issues and facilitate the collection of information and 
        analysis to provide Federal and State agencies, private 
        landowners, and the public with information to allow for 
        improved management of public and private rangeland.''.
    (b) Matching Requirements.--Section 1480(b)(2) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3333(b)(2)) is amended by striking ``subsection (a)(2)'' and 
inserting ``paragraph (2) or (3) of subsection (a)''.
    (c) Authorization of Appropriations.--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. 7035. 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. 7036. 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''.
    (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''.

SEC. 7037. FARM MANAGEMENT TRAINING AND PUBLIC FARM BENCHMARKING 
              DATABASE.

    Subtitle K of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 1467 
(7 U.S.C. 3313) the following:

``SEC. 1468. FARM MANAGEMENT TRAINING AND PUBLIC FARM BENCHMARKING 
              DATABASE.

    ``(a) Definitions.--In this section:
            ``(1) Benchmark, benchmarking.--The term `benchmark' or 
        `benchmarking' means the process of comparing the performance 
        of an agricultural enterprise against the performance of other 
        similar enterprises, through the use of comparable and reliable 
        data, in order to identify business management strengths, 
        weaknesses, and steps necessary to improve management 
        performance and business profitability.
            ``(2) Farm management association.--The term `farm 
        management association' means a public or nonprofit 
        organization or educational program--
                    ``(A) the purpose of which is to assist farmers, 
                ranchers, and other agricultural operators to improve 
                financial management and business profitability by 
                providing training on farm financial planning and 
                analysis, record keeping, and other farm management 
                topics; and
                    ``(B) that is affiliated with a land-grant college 
                or university, other institution of higher education, 
                or nonprofit entity.
            ``(3) National farm management center.--The term `National 
        Farm Management Center' means a land-grant college or 
        university that, as determined by the Secretary--
                    ``(A) has collaborative partnerships with more than 
                5 farm management associations that are representative 
                of agricultural diversity in multiple regions of the 
                United States;
                    ``(B) has maintained and continues to maintain farm 
                financial analysis software applicable to the 
                production and management of a wide range of crop and 
                livestock agricultural commodities (including some 
                organic commodities);
                    ``(C) has established procedures that enable 
                producers--
                            ``(i) to benchmark the farms of the 
                        producers against peer groups; and
                            ``(ii) to query the benchmarking database 
                        by location, farm type, farm size, and 
                        commodity at the overall business and 
                        individual enterprise levels; and
                    ``(D) has provided and continues to provide public 
                online access to farm and ranch financial benchmarking 
                databases.
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish a National 
        Farm Management Center to improve the farm management knowledge 
        and skills of individuals directly involved in production 
        agriculture through--
                    ``(A) participation in a farm management education 
                and training program; and
                    ``(B) direct access to a public farm benchmarking 
                database.
            ``(2) Proposals.--The Secretary shall request proposals 
        from appropriate land-grant colleges and universities for the 
        establishment of a National Farm Management Center in 
        accordance with this section.
            ``(3) Requirements.--The National Farm Management Center 
        established under paragraph (1) shall--
                    ``(A) coordinate standardized financial analysis 
                methodologies for use by farmers, ranchers, other 
                agricultural operators, and farm management 
                associations;
                    ``(B) provide the software tools necessary for farm 
                management associations, farmers, ranchers, and other 
                agricultural operators to perform the necessary 
                financial analyses, including the benchmarking of 
                individual enterprises; and
                    ``(C) develop and maintain a national farm 
                financial database to facilitate those financial 
                analyses and benchmarking that is available online to 
                farmers, ranchers, other agricultural operators, farm 
                management associations, and the public.
    ``(c) Association Designation.--
            ``(1) In general.--The Secretary shall designate 
        collaborating farm management associations to collaborate with 
        the National Farm Management Center established under this 
        section.
            ``(2) Selection.--
                    ``(A) In general.--The Secretary shall request 
                proposals from farm management associations and make 
                selections in consultation with the National Farm 
                Management Center.
                    ``(B) National scope.--The National Farm Management 
                Center and the Secretary shall encourage the 
                establishment, nomination, and designation of qualified 
                farm management associations to provide farmers, 
                ranchers, and other agricultural operators in each 
                State with access to the training and benchmarking 
                tools described in this section.
            ``(3) Selection and designation criteria.--The designation 
        of each collaborating farm management association shall be 
        based upon--
                    ``(A) in the case of an established farm management 
                association in a State or geographic region--
                            ``(i) working with farmers, ranchers, and 
                        other agricultural operators to improve their 
                        financial management and business 
                        profitability; and
                            ``(ii) contributing farm, ranch, and other 
                        agricultural operation financial analysis data 
                        to a publicly available online benchmarking 
                        database; and
                    ``(B) in the case in which there is no established 
                farm management association in a particular State or 
                geographic region, a farm management association may be 
                designated as a collaborating farm management 
                association if the National Farm Management Center and 
                the Secretary determine that there is a strong 
                likelihood that the association will meet the ongoing 
                requirements described in subsection (d).
    ``(d) Association Requirements.--Each collaborating farm management 
association designated under subsection (c) and receiving funds under 
this section shall--
            ``(1) maintain a farm management education and training 
        program that is open to all agricultural producers;
            ``(2) provide individualized education to farmers, 
        ranchers, and other agricultural operators on accounting, 
        financial planning, and business management;
            ``(3) provide an annual farm financial analysis to each 
        participating farmer, rancher, or other agricultural operator;
            ``(4) use standardized farm business analysis procedures as 
        specified by the National Farm Management Center;
            ``(5) contribute farm and ranch financial analysis data to 
        the public online benchmarking database in a form and manner 
        determined by the National Farm Management Center; and
            ``(6) facilitate and encourage producers' sign-up for 
        ongoing multi-year participation in the training and 
        benchmarking programs.
    ``(e) Limitation on Indirect Costs.--Indirect costs charged against 
funds provided under this section shall not be charged at a rate in 
excess of the rate at which the applicable institution charged, or 
could have charged, indirect costs during fiscal year 2007 against 
funds received as described in section 1462 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3310).
    ``(f) Administrative Expenses.--Not more than 8 percent of the 
funds made available to carry out this section may be used for the 
payment of administrative expenses of the Department of Agriculture in 
carrying out this section.
    ``(g) Funding.--The Secretary shall make available each fiscal year 
not less than 25 percent of funds appropriated under subsection (h) to 
the National Farm Management Center designated under subsection (b).
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 7038. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.

    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. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.

    ``(a) Definition of Caribbean and Pacific Basins.--In this section, 
the term `Caribbean and Pacific basins', means--
            ``(1) the States of Florida and Hawaii;
            ``(2) the Commonwealth of Puerto Rico;
            ``(3) the United States Virgin Islands;
            ``(4) Guam;
            ``(5) American Samoa;
            ``(6) the Commonwealth of the Northern Mariana Islands;
            ``(7) the Federated States of Micronesia;
            ``(8) the Republic of the Marshall Islands; and
            ``(9) the Republic of Palau.
    ``(b) Establishment.--The Secretary shall establish a program, to 
be known as the `Tropical and Subtropical Agricultural Research 
Program', to sustain the agriculture and environment of the Caribbean 
and Pacific basins, by supporting the full range of research relating 
to food and agricultural sciences in the Caribbean and Pacific basins, 
with an emphasis on--
            ``(1) pest management;
            ``(2) deterring introduction and establishment of invasive 
        species;
            ``(3) enhancing existing and developing new tropical and 
        subtropical agricultural products; and
            ``(4) expanding value-added agriculture in tropical and 
        subtropical ecosystems.
    ``(c) Grants.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall provide grants to be awarded competitively to 
        support tropical and subtropical agricultural research in the 
        Caribbean and Pacific basins.
            ``(2) Eligible entities.--To be eligible to receive a 
        grant, an entity shall be a land-grant college or university, 
        or affiliated with a land-grant college or university, that is 
        located in any region of the Caribbean and Pacific basin.
            ``(3) Requirements.--
                    ``(A) Equal amounts.--The total amount of grants 
                provided under this subsection shall be equally divided 
                between the Caribbean and Pacific basins, as determined 
                by the Secretary.
                    ``(B) Research infrastructure and capability 
                priority.--In providing grants under this subsection, 
                the Secretary shall give priority to projects of 
                eligible entities that--
                            ``(i) expand the infrastructure and 
                        capability of the region of the eligible 
                        entity;
                            ``(ii) scientifically and culturally 
                        address regional agricultural and environmental 
                        challenges; and
                            ``(iii) sustain agriculture in the region 
                        of the eligible entity.
                    ``(C) Term.--The term of a grant provided under 
                this subsection shall not exceed 5 years.
                    ``(D) Prohibitions.--A grant provided under this 
                subsection shall not be used for the planning, repair, 
                rehabilitation, acquisition, or construction of any 
                building or facility.
    ``(d) Funding.--
            ``(1) Set-aside.--Not less than 25 percent of the funds 
        made available to carry out this section during a fiscal year 
        shall be used to support programs and services that--
                    ``(A) address the pest management needs of a region 
                in the Caribbean and Pacific basins; or
                    ``(B) minimize the impact to a region in the 
                Caribbean and Pacific basins of invasive species.
            ``(2) Administrative costs.--The Secretary shall use not 
        more than 4 percent of the funds made available under 
        subsection (e) for administrative costs incurred by the 
        Secretary in carrying out this section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section such sums as 
are necessary for each of fiscal years 2008 through 2012.''.

SEC. 7039. REGIONAL CENTERS OF EXCELLENCE.

    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 7036) is amended by adding at the end the following:

``SEC. 1473F. REGIONAL CENTERS OF EXCELLENCE.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to authorize regional centers of excellence for 
        specific agricultural commodities; and
            ``(2) to develop a national, coordinated program of 
        research, teaching, and extension for commodities that will--
                    ``(A) be cost effective by reducing duplicative 
                efforts regarding research, teaching, and extension;
                    ``(B) leverage available resources by using public/
                private partnerships among industry groups, 
                institutions of higher education, and the Federal 
                Government;
                    ``(C) increase the economic returns to agricultural 
                commodity industries by identifying, attracting, and 
                directing funds to high-priority industry issues; and
                    ``(D) more effectively disseminate industry issue 
                solutions to target audiences through web-based 
                extension information, instructional courses, and 
                educational or training modules.
    ``(b) Definitions.--In this section:
            ``(1) Agricultural commodity.--The term `agricultural 
        commodity' has the meaning given the term in section 513 of the 
        Commodity Promotion, Research, and Information Act of 1996 (7 
        U.S.C. 7412).
            ``(2) Land-grant colleges and universities.--The term 
        `land-grant colleges and universities' means--
                    ``(A) 1862 Institutions (as defined in section 2 of 
                the Agricultural Research, Extension, and Education 
                Reform Act of 1998 (7 U.S.C. 7601));
                    ``(B) 1890 Institutions (as defined in section 2 of 
                that Act); and
                    ``(C) 1994 Institutions (as defined in section 2 of 
                that Act).
    ``(c) Establishment.--
            ``(1) Original composition.--The Secretary shall establish 
        regional centers of excellence for specific agricultural 
        commodities that are each comprised of--
                    ``(A) a lead land-grant college or university; and
                    ``(B) 1 or more member land-grant colleges and 
                universities that provide financial support to the 
                regional center of excellence.
            ``(2) Board of directors.--Each regional center of 
        excellence shall be administered by a board of directors 
        consisting of 15 members, as determined by the lead and member 
        land-grant colleges and universities of the center.
            ``(3) Additional directors and institutions.--Each board of 
        directors of a regional center of excellence may--
                    ``(A) designate additional land-grant colleges and 
                universities as members of the center; and
                    ``(B) designate representatives of the additional 
                land-grant colleges and universities and agriculture 
                industry groups to be additional members of the board 
                of directors.
    ``(d) Programs.--Each regional center of excellence shall achieve 
the purposes of this section through--
            ``(1) research initiatives focused on issues pertaining to 
        the specific agricultural commodity;
            ``(2) teaching initiatives at lead and member land-grant 
        colleges and universities to provide intensive education 
        relating to the specific agricultural commodity; and
            ``(3) extension initiatives focusing on an internet-based 
        information gateway to provide for relevant information 
        development, warehousing, and delivery.
    ``(e) Funding.--
            ``(1) In general.--Each regional center of excellence shall 
        be funded through the use of--
                    ``(A) grants made by the Secretary; and
                    ``(B) matching funds provided by land-grant 
                colleges and universities and agriculture industry 
                groups.
            ``(2) Process.--The board of directors of each regional 
        center of excellence shall have the responsibility for 
        submitting grant proposals to the Secretary to carry out the 
        research, education, and extension program activities described 
        in subsection (d).
            ``(3) Term of grant.--The term of a grant under this 
        subsection may not exceed 5 years.
    ``(f) Poultry Sustainability Center of Excellence.--
            ``(1) In general.--The Secretary shall establish a poultry 
        sustainability center of excellence--
                    ``(A) to identify challenges and develop solutions 
                to enhance the economic and environmental 
                sustainability of the poultry industry in the southwest 
                region of the United States;
                    ``(B) to research, develop, and implement 
                programs--
                            ``(i) to recover energy and other useful 
                        products from poultry waste;
                            ``(ii) to identify new technologies for the 
                        storage, treatment, and use of animal waste; 
                        and
                            ``(iii) to assist the poultry industry in 
                        ensuring that emissions of animal waste and 
                        discharges of the industry are maintained at 
                        levels at or below applicable regulatory 
                        standards;
                    ``(C) to provide technical assistance, training, 
                applied research, and monitoring to eligible 
                applicants;
                    ``(D) to develop environmentally effective programs 
                in the poultry industry; and
                    ``(E) to collaborate with eligible applicants to 
                work with the Federal Government (including Federal 
                agencies) in the development of conservation and 
                watershed programs to help private landowners and 
                agricultural producers meet applicable water quality 
                standards.
            ``(2) Reports.--Not later than 2 years after the date of 
        enactment of this section, and for each fiscal year thereafter, 
        the Secretary shall submit to Congress a report describing--
                    ``(A) each project for which funds are provided 
                under this subsection; and
                    ``(B) any advances in technology resulting from the 
                implementation of this subsection.
    ``(g) 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. 7040. NATIONAL DROUGHT MITIGATION CENTER.

    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 7037) is amended by adding at the end the following:

``SEC. 1473G. NATIONAL DROUGHT MITIGATION CENTER.

    ``(a) In General.--The Secretary shall offer to enter into an 
agreement with the National Drought Mitigation Center, under which the 
Center shall--
            ``(1) continue to produce the United States Drought 
        Monitor;
            ``(2) maintain a clearinghouse and internet portal on 
        drought; and
            ``(3) develop new drought mitigation and preparedness 
        strategies, responses, models, and methodologies for the 
        agricultural community.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each fiscal 
year.''.

SEC. 7041. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-PACIFIC REGION.

    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 7038) is amended by adding at the end the following:

``SEC. 1473H. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-PACIFIC REGION.

    ``(a) Definitions.--In this section:
            ``(1) American-pacific region.--The term `American-Pacific 
        region' means the region encompassing--
                    ``(A) American Samoa;
                    ``(B) Guam;
                    ``(C) the Commonwealth of the Northern Mariana 
                Islands;
                    ``(D) the Federated States of Micronesia;
                    ``(E) the Republic of the Marshall Islands;
                    ``(F) the Republic of Palau;
                    ``(G) the State of Hawaii; and
                    ``(H) the State of Alaska.
            ``(2) Consortium.--The term `consortium' means a 
        collaborative group that--
                    ``(A) is composed of each eligible institution; and
                    ``(B) submits to the Secretary an application for a 
                grant under subsection (b)(2).
            ``(3) Eligible institution.--The term `eligible 
        institution' means a land-grant college or university that is 
        located in the American-Pacific region.
    ``(b) Agricultural Development in the American Pacific Grants.--
            ``(1) In general.--The Secretary may make grants to a 
        consortium of eligible institutions to carry out integrated 
        research, extension, and instruction programs in support of 
        food and agricultural sciences.
            ``(2) Application.--To receive a grant under paragraph (1), 
        a consortium of eligible institutions shall submit to the 
        Secretary an application that includes--
                    ``(A) for each eligible institution, a description 
                of each objective, procedure, and proposed use of funds 
                relating to any funds provided by the Secretary to the 
                consortium under paragraph (1); and
                    ``(B) the method of allocation proposed by the 
                consortium to distribute to each eligible institution 
                any funds provided by the Secretary to the consortium 
                under paragraph (1).
            ``(3) Use of funds.--
                    ``(A) In general.--An eligible institution that 
                receives funds through a grant under paragraph (1) 
                shall use the funds--
                            ``(i) to acquire the equipment, 
                        instrumentation, networking capability, 
                        hardware and software, digital network 
                        technology, and infrastructure required to 
                        integrate research, extension, and instruction 
                        programs in the American-Pacific region;
                            ``(ii) to develop and provide support for 
                        conducting research, extension, and instruction 
                        programs in support of food and agricultural 
                        sciences relevant to the American-Pacific 
                        region, with special emphasis on--
                                    ``(I) the management of pests; and
                                    ``(II) the control of the spread of 
                                invasive alien species; and
                            ``(iii) to provide leadership development 
                        to administrators, faculty, and staff of the 
                        eligible institution with responsibility for 
                        programs relating to agricultural research, 
                        extension, and instruction.
                    ``(B) Prohibited uses.--An eligible institution 
                that receives funds through a grant under paragraph (1) 
                may not use the funds for any cost relating to the 
                planning, acquisition, construction, rehabilitation, or 
                repair of any building or facility of the eligible 
                institution.
            ``(4) Grant term.--A grant under paragraph (1) shall have a 
        term of not more than 5 years.
            ``(5) Administration.--
                    ``(A) Authority of secretary.--The Secretary may 
                carry out this section in a manner that recognizes the 
                different needs of, and opportunities for, each 
                eligible institution.
                    ``(B) Administrative costs.--The Secretary shall 
                use not more than 4 percent of the amount appropriated 
                under subsection (d) for a fiscal year to pay 
                administrative costs incurred in carrying out this 
                section.
    ``(c) No Effect on Distribution of Funds.--Nothing in this section 
affects any basis for distribution of funds by a formula in existence 
on the date of enactment of this section relating to--
            ``(1) the Federated States of Micronesia;
            ``(2) the Republic of the Marshall Islands; or
            ``(3) the Republic of Palau.
    ``(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. 7042. 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 7039) is amended by adding at the end the following:

``SEC. 1473I. 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 newly 
                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.--
            ``(1) Eligible candidates.--The Secretary may provide 
        fellowships under this section to individuals from eligible 
        countries who specialize in 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 overall 
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. 7043. 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.) (as amended by 
section 7040) is amended by adding at the end the following:

``SEC. 1473J. NEW ERA RURAL TECHNOLOGY PROGRAM.

    ``(a) Definition of Rural Community College.--In this section, the 
term `rural community college' means an institution of higher education 
that--
            ``(1) 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, in accordance with criteria 
                established by the Secretary;
            ``(2) does not provide an educational program for which it 
        awards a bachelor's degree or an equivalent degree;
            ``(3)(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 
        that is 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; and
            ``(4) is located in a rural area (as defined in section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)).
    ``(b) Program.--
            ``(1) In general.--The Secretary shall establish a program, 
        to be known as the `New Era Rural Technology Program', under 
        which the Secretary shall make grants available for technology 
        development, applied research, and training to aid in the 
        development of an agriculture-based renewable energy workforce.
            ``(2) Fields.--In making grants under the program, the 
        Secretary shall support the fields of--
                    ``(A) bioenergy;
                    ``(B) pulp and paper manufacturing; and
                    ``(C) agriculture-based renewable energy resources.
    ``(c) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall--
            ``(1) be a rural community college or advanced 
        technological center (as determined by the Secretary), in 
        existence on the date of the enactment of this section, that 
        participates in agricultural or bioenergy research and applied 
        research;
            ``(2) have a proven record of development and 
        implementation of programs to meet the needs of students, 
        educators, 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
            ``(3) have the ability to leverage existing partnerships 
        and occupational outreach and training programs for secondary 
        schools, 4-year institutions, and relevant nonprofit 
        organizations.
    ``(d) Grant Priority.--In making grants under this section, the 
Secretary shall give preference to rural community colleges working in 
partnership--
            ``(1) to improve information sharing capacity; and
            ``(2) to maximize the ability of eligible recipients to 
        meet the purposes of this section.
    ``(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. 7044. FARM AND RANCH STRESS ASSISTANCE NETWORK.

    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 7041) is amended by adding at the end the following:

``SEC. 1473K. FARM AND RANCH STRESS ASSISTANCE NETWORK.

    ``(a) In General.--The Secretary, in cooperation with the Secretary 
of Health and Human Services, shall establish a network, to be known as 
the `Farm and Ranch Stress Assistance Network' (referred to in this 
section as the `Network').
    ``(b) Purpose.--The purpose the network shall be to provide 
behavioral health programs to participants in the agricultural sector 
in the United States.
    ``(c) Grants.--The Secretary, in collaboration with the extension 
service at the National Institute of Food and Agriculture, shall 
provide grants on a competitive basis to States and nonprofit 
organizations for use in carrying out pilot projects to achieve the 
purpose of the Network.
    ``(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. 7045. RURAL ENTREPRENEURSHIP AND ENTERPRISE FACILITATION 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 7042) is amended by adding at the end the following:

``SEC. 1473L. RURAL ENTREPRENEURSHIP AND ENTERPRISE FACILITATION 
              PROGRAM.

    ``(a) Definition of Regional Rural Development Center.--In this 
section, the term `regional rural development center' means--
            ``(1) the North Central Regional Center for Rural 
        Development (or a designee);
            ``(2) the Northeast Regional Center for Rural Development 
        (or a designee);
            ``(3) the Southern Rural Development Center (or a 
        designee); and
            ``(4) the Western Rural Development Center (or a designee).
    ``(b) Projects.--The Secretary shall carry out research, extension, 
and education projects to obtain data, convey knowledge, and develop 
skills through projects that--
            ``(1) transfer practical, reliable, and timely information 
        to rural entrepreneurs and rural entrepreneurial development 
        organizations concerning business management, business 
        planning, microenterprise, marketing, entrepreneurial education 
        and training, and the development of local and regional 
        entrepreneurial systems in rural areas and rural communities;
            ``(2) provide education, training, and technical assistance 
        to newly-operational and growing rural businesses;
            ``(3) improve access to diverse sources of capital, such as 
        microenterprise loans and venture capital;
            ``(4) determine the best methods to train entrepreneurs 
        with respect to preparing business plans, recordkeeping, tax 
        rules, financial management, and general business practices;
            ``(5) promote entrepreneurship among--
                    ``(A) rural youth, minority, and immigrant 
                populations;
                    ``(B) women; and
                    ``(C) low- and moderate-income rural residents;
            ``(6) create networks of entrepreneurial support through 
        partnerships among rural entrepreneurs, local business 
        communities, all levels of government, nonprofit organizations, 
        colleges and universities, and other sectors;
            ``(7) study and facilitate entrepreneurial development 
        systems that best align with the unique needs and strengths of 
        particular rural areas and communities; and
            ``(8) explore promising strategies for building an 
        integrated system of program delivery to rural entrepreneurs.
    ``(c) Agreements.--To carry out projects under subsection (b), the 
Secretary shall provide grants to--
            ``(1) land-grant colleges and universities, including 
        cooperative extension services, agricultural experiment 
        stations, and regional rural development centers;
            ``(2) other colleges and universities;
            ``(3) community, junior, technical, and vocational colleges 
        and other 2-year institutions of higher education, and post-
        secondary business and commerce schools;
            ``(4) elementary schools and secondary schools;
            ``(5) nonprofit organizations; and
            ``(6) Federal, State, local, and tribal governmental 
        entities.
    ``(d) Selection and Priority of Projects.--
            ``(1) In general.--In selecting projects to be carried out 
        under this section, the Secretary shall take into 
        consideration--
                    ``(A) the relevance of the project to the purposes 
                of this section;
                    ``(B) the appropriateness of the design of the 
                project;
                    ``(C) the likelihood of achieving the objectives of 
                the project; and
                    ``(D) the national or regional applicability of the 
                findings and outcomes of the project.
            ``(2) Priority.--In carrying out projects under this 
        section, the Secretary shall give priority to projects that--
                    ``(A) enhance widespread access to entrepreneurial 
                education, including access to such education in 
                community-based settings for low- and moderate-income 
                entrepreneurs and potential entrepreneurs;
                    ``(B) closely coordinate research and education 
                activities, including outreach education efforts;
                    ``(C) indicate the manner in which the findings of 
                the project will be made readily usable to rural 
                entrepreneurs and to rural community leaders;
                    ``(D) maximize the involvement and cooperation of 
                rural entrepreneurs; and
                    ``(E) involve cooperation and partnerships between 
                rural entrepreneurs, nonprofit organizations, 
                entrepreneurial development organizations, educational 
                institutions at all levels, and government agencies at 
                all levels.
    ``(e) Competitive Basis.--Grants under this section shall be 
awarded on a competitive basis, in accordance with such criteria as the 
national administrative council established under subsection (j)(1) may 
establish.
    ``(f) Term.--The term of a grant provided under this section shall 
be not more than 5 years.
    ``(g) Limitation.--Not more than 20 percent of the total amount of 
grants provided under this section shall be provided to projects in 
which cooperative extension services are involved as the sole or lead 
entity of the project.
    ``(h) Diversification of Research, Extension, and Education 
Projects.--The Secretary shall carry out projects under this section in 
areas that the Secretary determines to be broadly representative of the 
diversity of the rural areas of the United States, and of rural 
entrepreneurship in the United States, including entrepreneurship 
involving youth, minority populations, microenterprise, and women, with 
a focus on nonagricultural businesses or food and agriculturally-based 
businesses, but not direct agriculture production.
    ``(i) Administration.--The Secretary shall administer projects 
carried out under this section acting through the Administrator of the 
National Institute of Food and Agriculture.
    ``(j) National Administrative Council.--
            ``(1) Establishment.--The Secretary shall establish, in 
        accordance with this subsection, a national administrative 
        council to assist the Secretary in carrying out this section.
            ``(2) Membership.--The membership of the national 
        administrative council shall include--
                    ``(A) qualified representatives of entities with 
                demonstrable expertise relating to rural 
                entrepreneurship, including representatives of--
                            ``(i) the Cooperative State Research, 
                        Education, and Extension Service;
                            ``(ii) the Rural Business-Cooperative 
                        Service;
                            ``(iii) the Small Business Administration;
                            ``(iv) regional rural development centers;
                            ``(v) nonprofit organizations;
                            ``(vi) regional and State agencies;
                            ``(vii) cooperative extension services;
                            ``(viii) colleges and universities;
                            ``(ix) philanthropic organizations; and
                            ``(x) Indian tribal governments;
                    ``(B) self-employed rural entrepreneurs and owners 
                of rural small businesses;
                    ``(C) elementary and secondary educators that 
                demonstrate experience in rural entrepreneurship; and
                    ``(D) other persons with experience relating to 
                rural entrepreneurship and the impact of rural 
                entrepreneurship on rural communities.
            ``(3) Responsibilities.--In collaboration with the 
        Secretary, the national administrative council established 
        under this subsection shall--
                    ``(A) promote the projects carried out under this 
                section;
                    ``(B) establish goals and criteria for the 
                selection of projects under this section;
                    ``(C)(i) appoint a technical committee to evaluate 
                project proposals to be considered by the council; and
                    ``(ii) make recommendations of the technical 
                committee to the Secretary; and
                    ``(D) prepare and make publicly available an annual 
                report relating to each applicable project carried out 
                under this section, including a review of projects 
                carried out during the preceding year.
            ``(4) Conflict of interest.--A member of the national 
        administrative council or a technical committee shall not 
        participate in any determination relating to, or recommendation 
        of, a project proposed to be carried out under this section if 
        the member has had any business interest (including the 
        provision of consulting services) in the project or the 
        organization submitting the application.
    ``(k) Authorization for Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of the fiscal years 2008 through 2012.''.

SEC. 7046. SEED DISTRIBUTION.

    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 7043) is amended by adding at the end the following:

``SEC. 1473M. SEED DISTRIBUTION.

    ``(a) Establishment.--The Secretary shall establish a program, to 
be known as the `seed distribution program', under which the Secretary 
shall provide a grant to a nonprofit organization selected under 
subsection (c) to carry out a seed distribution program to administer 
and maintain the distribution of vegetable seeds donated by commercial 
seed companies.
    ``(b) Purpose.--The purpose of the seed distribution program under 
this section shall be to distribute vegetable seeds donated by 
commercial seed companies.
    ``(c) Selection of Nonprofit Organizations.--
            ``(1) In general.--The nonprofit organization selected to 
        receive a grant under subsection (a) shall demonstrate to the 
        satisfaction of the Secretary that the organization--
                    ``(A) has expertise regarding distribution of 
                vegetable seeds donated by commercial seed companies; 
                and
                    ``(B) has the ability to achieve the purpose of the 
                seed distribution program.
            ``(2) Priority.--In selecting a nonprofit organization for 
        purposes of this section, the Secretary shall give priority to 
        a nonprofit organization that, as of the date of selection, 
        carries out an activity to benefit 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.
    ``(d) Requirement.--The nonprofit organization selected under this 
section shall ensure that seeds donated by commercial seed companies 
are distributed free-of-charge to appropriate--
            ``(1) individuals;
            ``(2) groups;
            ``(3) institutions;
            ``(4) governmental and nongovernmental organizations; and
            ``(5) such other entities as the Secretary may designate.
    ``(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. 7047. FARM AND RANCH SAFETY.

    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 7044) is amended by adding at the end the following:

``SEC. 1473N. FARM AND RANCH SAFETY.

    ``(a) In General.--The Secretary shall establish a program, to be 
known as the `agricultural safety program', under which the Secretary 
shall provide grants to eligible entities to carry out projects to 
decrease the incidence of injury and death on farms and ranches.
    ``(b) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be--
            ``(1) a nonprofit organization;
            ``(2) a land-grant college or university (including a 
        cooperative extension service);
            ``(3) a minority-serving institution;
            ``(4) a 2-year or 4-year institution of higher education; 
        or
            ``(5) such other entity as the Secretary may designate.
    ``(c) Eligible Projects.--An eligible entity shall use a grant 
received under this section only to carry out--
            ``(1) a project at least 1 component of which emphasizes--
                    ``(A) preventative service through 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; or
                    ``(C) agricultural safety education and training; 
                and
            ``(2) other appropriate activities, as determined by the 
        Secretary;
    ``(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. 7048. WOMEN AND MINORITIES IN STEM FIELDS.

    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 7045) is amended by adding at the end the following:

``SEC. 1473O. WOMEN AND MINORITIES IN STEM FIELDS.

    ``(a) Establishment.--The Secretary shall establish a program under 
which the Secretary, in coordination with applicable Federal, State, 
and local programs, shall provide grants to eligible institutions to 
increase, to the maximum extent practicable, participation by women and 
underrepresented minorities from rural areas (as defined in section 
343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1991(a))), in science, technology, engineering, and mathematics fields 
(referred to in this section as `STEM fields').
    ``(b) Activities.--In carrying out the program established under 
subsection (a), the Secretary shall--
            ``(1) implement multitrack technology career advancement 
        training programs and provide related services to engage, and 
        encourage participation by, women and underrepresented 
        minorities in STEM fields;
            ``(2) develop and administer training programs for 
        educators, career counselors, and industry representatives in 
        recruitment and retention strategies to increase and retain 
        women and underrepresented minority students and job entrants 
        into STEM fields; and
            ``(3) support education-to-workforce programs for women and 
        underrepresented minorities to provide counseling, job 
        shadowing, mentoring, and internship opportunities to guide 
        participants in the academic, training, and work experience 
        needed for STEM careers.
    ``(c) Institutions.--
            ``(1) Grants.--The Secretary shall carry out the program 
        under this section at such institutions as the Secretary 
        determines to be appropriate by providing grants, on a 
        competitive basis, to the institutions.
            ``(2) Priority.--In providing grants under paragraph (1), 
        the Secretary shall give priority, to the maximum extent 
        practicable, to institutions carrying out continuing programs 
        funded by the Secretary.
    ``(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. 7049. NATURAL PRODUCTS RESEARCH 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 7046) is amended by adding at the end the following:

``SEC. 1473P. NATURAL PRODUCTS RESEARCH PROGRAM.

    ``(a) In General.--The Secretary shall establish 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 pharmaceuticals 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 important for agriculture and 
        medicine; and
            ``(3) other research priorities identified by the 
        Secretary.
    ``(c) 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. 7050. INTERNATIONAL ANTI-HUNGER AND NUTRITION 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 7047) is amended by adding at the end the following:

``SEC. 1473Q. INTERNATIONAL ANTI-HUNGER AND NUTRITION.

    ``(a) In General.--The Secretary shall provide support to 
established nonprofit organizations that focus on promoting research 
concerning--
            ``(1) anti-hunger and improved nutrition efforts 
        internationally; and
            ``(2) increased quantity, quality, and availability of 
        food.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 7051. CONSORTIUM FOR AGRICULTURAL AND RURAL TRANSPORTATION 
              RESEARCH AND EDUCATION.

    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 7048) is amended by adding at the end the following:

``SEC. 1473R. CONSORTIUM FOR AGRICULTURAL AND RURAL TRANSPORTATION 
              RESEARCH AND EDUCATION.

    ``(a) In General.--Subject to the availability of appropriations to 
carry out this section, the Secretary, acting through the Agricultural 
Marketing Service, shall award grants to the Consortium for 
Agricultural and Rural Transportation Research and Education for the 
purpose of funding prospective, independent research, education, and 
technology transfer activities.
    ``(b) Activities.--Activities funded with grants made under 
subsection (a) shall focus on critical rural and agricultural 
transportation and logistics issues facing agricultural producers and 
other rural businesses, including--
            ``(1) issues relating to the relationship between renewable 
        fuels and transportation;
            ``(2) export promotion issues based on transportation 
        strategies for rural areas;
            ``(3) transportation and rural business facility planning 
        and location issues;
            ``(4) transportation management and supply chain management 
        support issues;
            ``(5) rural road planning and finance issues;
            ``(6) advanced transportation technology applications in a 
        rural area; and
            ``(7) creation of a national agricultural marketing and 
        rural business transportation database.
    ``(c) Report.--Not later than September 30, 2011, 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 activities of Consortium for 
        Agricultural and Rural Transportation Research and Education 
        that have been funded through grants made under this section; 
        and
            ``(2) contains recommendations about the grant program.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $19,000,000 for each of fiscal years 
        2008 through 2012.
            ``(2) Administrative expenses.--Of the total amount made 
        available under paragraph (1), not more than $1,000,000 may be 
        used by the Agricultural Marketing Service for administrative 
        expenses incurred in carrying out this section.''.

SEC. 7052. REGIONAL CENTERS OF EXCELLENCE IN FOOD SYSTEMS VETERINARY 
              MEDICINE.

    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 7049) is amended by adding at the end the following:

``SEC. 1473S. REGIONAL CENTERS OF EXCELLENCE IN FOOD SYSTEMS VETERINARY 
              MEDICINE.

    ``(a) Definition of Eligible School of Veterinary Medicine.--In 
this section, the term `eligible school of veterinary medicine' means a 
school of veterinary medicine that is--
            ``(1) a public or other nonprofit entity; and
            ``(2) accredited by an entity that is approved for such 
        purpose by the Department of Education.
    ``(b) Grant Program.--The Secretary shall make grants to eligible 
schools of veterinary medicine to assist the eligible schools of 
veterinary medicine in supporting centers of emphasis in food systems 
veterinary medicine.
    ``(c) Application Process.--
            ``(1) Application requirement.--To be eligible to receive a 
        grant from the Secretary under subsection (b), an eligible 
        school of veterinary medicine shall submit to the Secretary an 
        application at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(2) Consideration of applications.--The Secretary shall 
        establish procedures to ensure that--
                    ``(A) each application submitted under paragraph 
                (1) is rigorously reviewed; and
                    ``(B) grants are competitively awarded based on--
                            ``(i) the ability of the eligible school of 
                        veterinary medicine to provide a comprehensive 
                        educational experience for students with 
                        particular emphasis on the species of food 
                        animal for which the eligible school of 
                        veterinary medicine is applying that is used 
                        for food production (including food animal 
                        veterinary medicine, food supply bioterrorism 
                        prevention and surveillance, food-safety, and 
                        the improvement of the quality of the 
                        environment);
                            ``(ii) the ability of the eligible school 
                        of veterinary medicine to increase capacity 
                        with respect to research on the species of food 
                        animal for which the eligible school of 
                        veterinary medicine is applying that is used 
                        for food production; and
                            ``(iii) any other consideration that the 
                        Secretary determines to be appropriate.
            ``(3) Preference for consortium.--In making grants under 
        subsection (b), the Secretary shall give preference to eligible 
        schools of veterinary medicine that participate in 
        interinstitutional agreements that--
                    ``(A) cover issues relating to residency, tuition, 
                or fees; and
                    ``(B) consist of more than 1 other--
                            ``(i) school of veterinary medicine;
                            ``(ii) school of public health;
                            ``(iii) school of agriculture; or
                            ``(iv) appropriate entity that carries out 
                        education and research activities with respect 
                        to food production systems, as determined by 
                        the Secretary.
    ``(d) Required Use of Funds.--The Secretary may not make a grant to 
an eligible school of veterinary medicine under subsection (b) unless 
the eligible school of veterinary medicine agrees to use the grant 
funds--
            ``(1) to develop a competitive student applicant pool 
        through linkages with other appropriate schools of veterinary 
        medicine, as determined by the Secretary;
            ``(2) to improve the capacity of the eligible school of 
        veterinary medicine--
                    ``(A) to train, recruit, and retain faculty;
                    ``(B) to pay such stipends and fellowships as the 
                Secretary determines to be appropriate in areas of 
                research relating to--
                            ``(i) food animal medicine; and
                            ``(ii) food-safety and defense; and
                    ``(C) to enhance the quality of the environment;
            ``(3) to carry out activities to improve the information 
        resources, curriculum, and clinical education of students of 
        the eligible school of veterinary medicine with respect to--
                    ``(A) food animal veterinary medicine; and
                    ``(B) food-safety;
            ``(4) to facilitate faculty and student research on health 
        issues that--
                    ``(A) affect--
                            ``(i) food-producing animals; and
                            ``(ii) food-safety; and
                    ``(B) enhance the environment;
            ``(5) to provide stipends for students to offset costs 
        relating to travel, tuition, and other expenses associated with 
        attending the eligible school of veterinary medicine; and
            ``(6) for any other purpose that the Secretary determines 
        to be appropriate.
    ``(e) Period of Grants.--
            ``(1) In general.--Subject to paragraph (2), an eligible 
        school of veterinary medicine that receives funds through a 
        grant under subsection (b) shall receive funds under the grant 
        for not more than 5 years after the date on which the grant was 
        first provided.
            ``(2) Conditions relating to grant funds.--Funds provided 
        to an eligible school of veterinary medicine through a grant 
        under subsection (b) shall be subject to--
                    ``(A) the annual approval of the Secretary; and
                    ``(B) the availability of appropriations.
    ``(f) 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.''.

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

SEC. 7101. NATIONAL GENETIC RESOURCES PROGRAM.

    (a) In General.--Section 1632 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5841) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Purpose.--The program is established for the purpose of--
            ``(1) maintaining and enhancing a program providing for the 
        collection, preservation, and dissemination of plant, animal, 
        and microbial genetic material of importance to food and 
        agriculture production in the United States; and
            ``(2) undertaking long-term research on plant and animal 
        breeding and disease resistance.''; and
            (2) in subsection (d)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following:
            ``(6) in conjunction with national programs for plant and 
        animal genetic resources, undertake long-term research on plant 
        and animal breeding, including the development of varieties 
        adapted to sustainable and organic farming systems, and disease 
        resistance; and''.
    (b) Authorization of Appropriations.--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. 7102. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) is amended--
            (1) in subsection (e), by adding at the end the following:
            ``(46) Colony collapse disorder and pollinator research 
        program.--Research and extension grants may be made to--
                    ``(A) survey and collect data on bee colony 
                production and health;
                    ``(B) investigate pollinator biology, immunology, 
                ecology, genomics, and bioinformatics;
                    ``(C) 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;
                    ``(D) develop mitigative and preventative measures 
                to improve native and managed pollinator health; and
                    ``(E) promote the health of honey bees and native 
                pollinators through habitat conservation and best 
                management practices.
            ``(47) Marine shrimp farming program.--Research and 
        extension grants may be made to establish a research program to 
        advance and maintain a domestic shrimp farming industry in the 
        United States.
            ``(48) Cranberry research program.--Research and extension 
        grants may be made to study new technologies to assist 
        cranberry growers in complying with Federal and State 
        environmental regulations, increase cranberry production, 
        develop new growing techniques, establish more efficient 
        growing methodologies, and educate farmers about sustainable 
        growth practices.
            ``(49) Turfgrass research initiative.--Research and 
        extension grants may be made 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.
            ``(50) Pesticide safety research initiative.--Research 
        grants may be made to study pesticide safety for migrant and 
        seasonal agricultural workers, including research on increased 
        risks of cancer or birth defects among migrant or seasonal 
        farmworkers and their children, identification of objective 
        biological indicators, and development of inexpensive clinical 
        tests to enable clinicians to diagnose overexposure to 
        pesticides, and development of field-level tests to determine 
        when pesticide-treated fields are safe to reenter to perform 
        hand labor activities.
            ``(51) Swine genome project.--Research grants may be made 
        under this section to conduct swine genome research and to map 
        the swine genome.
            ``(52) High plains aquifer region.--Research and extension 
        grants may be made to carry out interdisciplinary research 
        relating to diminishing water levels and increased demand for 
        water in the High Plains aquifer region encompassing the States 
        of Colorado, Kansas, Nebraska, New Mexico, Oklahoma, South 
        Dakota, Texas, and Wyoming.
            ``(53) Cellulosic feedstock transportation and delivery 
        initiative.--Research and extension grants may be made to study 
        new technologies for the economic post-harvest densification, 
        handling, transportation, and delivery of cellulosic feedstocks 
        for bioenergy conversion.
            ``(54) Deer initiative.--Research and extension grants may 
        be made 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.
            ``(55) Pasture-based beef systems for appalachia research 
        initiative.--Research and extension grants may be made to land-
        grant institutions--
                    ``(A) to study the development of forage sequences 
                and combinations for cow-calf, heifer development, 
                stocker, and finishing systems;
                    ``(B) to deliver optimal nutritive value for 
                efficient production of cattle for pasture finishing;
                    ``(C) to optimize forage systems to produce pasture 
                finished beef that is acceptable to consumers;
                    ``(D) to develop a 12-month production and 
                marketing model cycle for forage-fed beef; and
                    ``(E) to assess the effect of forage quality on 
                reproductive fitness and related measures.
            ``(56) Sustainable agricultural production for the 
        environment.--Research and extension grants may be made to--
                    ``(A) field and laboratory studies that examine the 
                ecosystem from gross to minute scales;
                    ``(B) conduct projects that explore the future 
                environmental ramifications of sustainable agricultural 
                practices; and
                    ``(C) to assess the effect of forage quality on 
                reproductive fitness and related measures.
            ``(57) Biomass-derived energy resources.--Research and 
        extension grants may be made to--
                    ``(A) study plant cell wall structure and function 
                and the use of plant biotechnology to produce 
                industrial enzymes; and
                    ``(B) conduct projects that develop renewable, 
                plant biomass-derived energy resources using the 
                technology described in subparagraph (A).
            ``(58) Brucellosis control and eradication; bighorn and 
        domestic sheep disease mechanisms.--Research and extension 
        grants may be made available--
                    ``(A) for the conduct of research relating to the 
                development of vaccines and vaccine delivery systems to 
                effectively control and eliminate brucellosis in 
                wildlife;
                    ``(B) to assist with the controlling of the spread 
                of brucellosis from wildlife to domestic animals in the 
                greater Yellowstone area; and
                    ``(C) to conduct research relating to the health 
                status (including the presence of infectious diseases) 
                of bighorn and domestic sheep under range 
                conditions.''; and
            (2) in subsection (h), by striking ``2007'' and inserting 
        ``2012, of which $20,000,000 shall be used for each fiscal year 
        to make grants described in subsection (e)(46)''.

SEC. 7103. 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) by redesignating subsection (g) as subsection (f); and
            (2) in subsection (f) (as so redesignated), by striking 
        ``2007'' and inserting ``2012''.

SEC. 7104. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    Section 1672B of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925b) is amended by striking subsection (e) and 
inserting the following:
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $16,000,000 for each 
of fiscal years 2008 through 2012, to remain available until 
expended.''.

SEC. 7105. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7106. 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''.

SEC. 7107. 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. 7201. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

    (a) Funding.--Section 401(b) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of the Food and Energy Security Act of 2007, the 
        Secretary of the Treasury shall transfer $45,000,000 to the 
        Account.''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Other funding.--
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this section 
                $200,000,000 for each of fiscal years 2008 through 
                2012.
                    ``(B) Shortage of funds.--Notwithstanding any other 
                provision of law, during any year for which funds are 
                not made available under this subsection, the Secretary 
                shall use not less than 80 percent of the funds made 
                available for competitive mission-linked systems 
                research grants under section 2(b)(10)(B) of the 
                Competitive, Special, and Facilities Research Grant Act 
                (7 U.S.C. 450i(b)(10)(B)) to carry out a competitive 
                grant program under the same terms and conditions as 
                are provided under this section.''.
    (b) Purposes.--Section 401(c) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(c)) is 
amended--
            (1) in paragraph (1)(D), by striking ``policy''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraphs (A) and (D);
                    (B) by redesignating subparagraphs (B), (C), (E), 
                and (F) as subparagraphs (A), (B), (F), and (G), 
                respectively;
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) sustainable and renewable agriculture-based 
                energy production options and policies;
                    ``(D) environmental services and outcome-based 
                conservation programs and markets;
                    ``(E) agricultural and rural entrepreneurship and 
                business and community development, including farming 
                and ranching opportunities for beginning farmers or 
                ranchers;''; and
                    (D) in subparagraph (F) (as redesignated by 
                subparagraph (B))--
                            (i) by inserting ``and environmental'' 
                        after ``natural resource''; and
                            (ii) by inserting ``agro-ecosystems and'' 
                        after ``including''; and
                    (E) in subparagraph (G) (as redesignated by 
                subparagraph (B))--
                            (i) by striking ``including the viability'' 
                        and inserting the following: ``including--
                            ``(i) the viability''; and
                            (ii) by striking ``operations.'' and 
                        inserting the following: ``operations;
                            ``(ii) farm transition options for retiring 
                        farmers or ranchers; and
                            ``(iii) farm transfer and entry 
                        alternatives for beginning or socially-
                        disadvantaged farmers or ranchers.''.

SEC. 7202. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
              RESEARCH.

    Section 402(g) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7203. PRECISION AGRICULTURE.

    Section 403(i)(1) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7204. 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. 7205. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405(h) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7206. 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. 7207. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, 
              AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA 
              INDICA.

    Section 408(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7208. 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. 7209. GRANTS FOR YOUTH ORGANIZATIONS.

    Section 410(c) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7630(c)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7210. 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. 7211. SPECIALTY CROP RESEARCH INITIATIVE.

    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 initiative established by subsection 
        (b).
            ``(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).
    ``(b) Establishment.--There is established within the Department a 
specialty crop research initiative.
    ``(c) Purpose.--The purpose of the Initiative shall be to address 
the critical needs of the specialty crop industry by providing science-
based tools to address needs of specific crops and regions, including--
            ``(1) fundamental and applied work in plant breeding, 
        genetics, and genomics to improve crop characteristics, such 
        as--
                    ``(A) product appearance, quality, taste, yield, 
                and shelf life;
                    ``(B) environmental responses and tolerances;
                    ``(C) plant-nutrient uptake efficiency resulting in 
                improved nutrient management;
                    ``(D) pest and disease management, including 
                resilience to pests and diseases resulting in reduced 
                application management strategies; and
                    ``(E) enhanced phytonutrient content;
            ``(2) efforts to prevent, identify, control, or eradicate 
        invasive species;
            ``(3) methods of improving agricultural production by 
        developing more technologically-efficient and effective 
        applications of water, nutrients, and pesticides to reduce 
        energy use;
            ``(4) new innovations and technology to enhance 
        mechanization and reduce reliance on labor;
            ``(5) methods of improving production efficiency, 
        productivity, sustainability, and profitability over the long 
        term;
            ``(6) methods to prevent, control, and respond to human 
        pathogen contamination of specialty crops, including fresh-cut 
        produce;
            ``(7) methods of improving the supply and effectiveness of 
        pollination for specialty crop production; and
            ``(8) efforts relating to optimizing the production of 
        organic specialty crops.
    ``(d) Eligible Entities.--The Secretary may carry out the 
Initiative through--
            ``(1) Federal agencies;
            ``(2) national laboratories;
            ``(3) institutions of higher education;
            ``(4) research institutions and organizations;
            ``(5) private organizations and corporations;
            ``(6) State agricultural experiment stations; and
            ``(7) individuals.
    ``(e) Research Projects.--In carrying out this section, the 
Secretary may--
            ``(1) carry out research; and
            ``(2) award grants on a competitive basis.
    ``(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 usable 
        results to producers and the public.
    ``(g) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $16,000,000 for each 
of fiscal years 2008 through 2012, to remain available until 
expended.''.

SEC. 7212. OFFICE OF PEST MANAGEMENT POLICY.

    (a) In General.--Section 614(b) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7653(b)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``Department'' and inserting ``Office of the Chief Economist'';
            (2) in paragraph (1), by striking ``the development and 
        coordination'' and inserting ``the development, coordination, 
        and representation''; and
            (3) in paragraph (3), by striking ``assisting other 
        agencies of the Department in fulfilling their'' and inserting 
        ``enabling the Secretary to fulfill the statutory''.
    (b) Authorization of Appropriations.--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''.

SEC. 7213. 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.--There is authorized to be 
appropriated to carry out this section $2,500,000 for each of fiscal 
years 2008 through 2012.''.

                         Subtitle D--Other Laws

SEC. 7301. 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. 7302. 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.''.
    (b) Endowment for 1994 Institutions.--Section 533(b) 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''.
    (c) 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''.
    (d) 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''.

SEC. 7303. SMITH-LEVER ACT.

    (a) Children, Youth, and Families Education and Research Network 
Program.--Section 3 of the Smith-Lever Act (7 U.S.C. 343) is amended by 
adding at the end the following:
    ``(k) Children, Youth, and Families Education and Research Network 
Program.--Notwithstanding section 3(d)(2) of the Act of May 8, 1914 (7 
U.S.C. 343(d)(2)), in carrying out the children, youth, and families 
education and research network program using amounts made available 
under subsection (d), the Secretary shall include 1890 Institutions (as 
defined in section 2 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7601)) as eligible program 
applicants and participants.''.
    (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.

SEC. 7304. 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
                    (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. 7305. 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. 7306. 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. 7307. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.

    (a) Competitive Grants.--The Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i) is amended in subsection (b)--
            (1) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``in the areas'' and all 
                        that follows through ``needs shall be'' and 
                        inserting ``, as''; and
                            (ii) by striking ``year.'' and inserting 
                        ``year, relating to--'';
                    (B) in subparagraph (B), by striking ``production 
                efficiency and animal well-being'' and inserting 
                ``production efficiency, animal well-being, and the 
                judicious use of antibiotics'';
                    (C) in subparagraph (D), by striking ``surface 
                water and ground water quality'' and inserting 
                ``surface water quality and ground water quality, 
                including the reduction of antibiotics or antibiotic-
                resistant bacteria'';
                    (D) in subparagraph (E), by striking ``and'' at the 
                end and inserting ``; agricultural genomics and 
                biotechnology, including the application of genomics 
                and bioinformatics tools to develop traits in plants 
                and animals (translational genomics);'';
                    (E) in subparagraph (F), by striking the period at 
                the end and inserting ``, including areas of concern to 
                beginning farmers or ranchers; and''; and
                    (F) by adding at the end the following:
                    ``(G) classical plant and animal breeding, 
                including cultivar and breed development, selection 
                theory, applied quantitative genetics, breeding for 
                organic and sustainable systems, breeding for improved 
                nutritional and eating quality, breeding for improved 
                local adaptation to biotic stress, abiotic stress, and 
                climate change, and participatory breeding with farmers 
                and end users.'';
            (2) in paragraph (4)--
                    (A) by striking ``The'' and inserting the 
                following:
                    ``(A) In general.--Subject to subparagraph (B), 
                the''; and
                    (B) by adding at the end the following:
                    ``(B) Classical plant and animal breeding.--
                            ``(i) Term.--The term of a competitive 
                        grant relating to classical plant and animal 
                        breeding under paragraph (2)(G) shall not 
                        exceed 10 years.
                            ``(ii) Availability.--Funds made available 
                        for a fiscal year for a competitive grant 
                        relating to classical plant and animal breeding 
                        under paragraph (2)(G) shall remain available 
                        until expended to pay for obligations incurred 
                        in that fiscal year.''; and
            (3) in paragraph (10), by striking ``2007'' and inserting 
        ``2012''.
    (b) National Research Support Project-7.--The Competitive, Special, 
and Facilities Research Grant Act (7 U.S.C. 450i) is amended by adding 
at the end the following:
    ``(l) National Research Support Project-7.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Project.--The term `project' means the 
                project established by the Secretary under paragraph 
                (2).
                    ``(B) Secretary.--The term `Secretary' means the 
                Secretary of Agriculture.
            ``(2) Establishment.--The Secretary shall establish the 
        National Research Support Project-7--
                    ``(A) to identify the animal drug needs for--
                            ``(i) minor species; and
                            ``(ii) minor uses in major species;
                    ``(B) to generate and disseminate data to ensure 
                the safe, effective, and lawful use of drugs to be used 
                primarily for the therapy or reproductive management of 
                minor animal species; and
                    ``(C) to facilitate the development and approval of 
                drugs for minor species, and minor uses in major 
                species, by the Center for Veterinary Medicine of the 
                Food and Drug Administration.
            ``(3) Administration of project.--
                    ``(A) National research support project-7.--The 
                Secretary shall carry out the project in accordance 
                with each purpose and principle of the National 
                Research Support Project-7 carried out by the 
                Administrator of the Cooperative State Research, 
                Education, and Extension Service as of the day before 
                the date of enactment of this subsection.
                    ``(B) Consultation with other entities.--The 
                Secretary shall carry out the project in consultation 
                with--
                            ``(i) the Commissioner of Food and Drugs;
                            ``(ii) State agricultural experiment 
                        stations;
                            ``(iii) institutions of higher education;
                            ``(iv) private entities; and
                            ``(v) any other interested individual or 
                        entity.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.''.

SEC. 7308. 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) is amended--
            (1) in subsection (a)(3), by striking ``2006'' and 
        inserting ``2012''; and
            (2) in subsection (b)--
                    (A) 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
                    (B) in paragraph (3), by striking ``2006'' and 
                inserting ``2012''.

SEC. 7309. 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) in paragraph (1)--
                    (A) in subparagraph (I), by inserting ``, including 
                energy conservation and efficiency'' after 
                ``assistance''; and
                    (B) in subparagraph (K), by inserting ``, including 
                transition to organic and other source-verified and 
                value-added alternative production and marketing 
                systems'' after ``strategies'';
            (2) 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
                            ``(ii) be in an amount that is not more 
                        than $250,000 a year.
                    ``(B) Consecutive grants.--An eligible recipient 
                may receive consecutive grants under this 
                subsection.'';
            (3) by redesignating paragraphs (5) through (7) as 
        paragraphs (9) through (11), respectively;
            (4) 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 geographic diversity.
            ``(7) Organic conversion.--The Secretary may make grants 
        under this subsection to support projects that provide 
        comprehensive technical assistance to beginning farmers or 
        ranchers who are in the process of converting to certified 
        organic production.
            ``(8) Priority.--In making grants under this subsection, 
        the Secretary shall give priority to partnerships and 
        collaborations that are led by or include non-governmental and 
        community-based organizations with expertise in new farmer 
        training and outreach.''; and
            (5) in paragraph (9) (as redesignated by paragraph (3))--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period and 
                adding ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) refugee or immigrant beginning farmers or 
                ranchers''.
    (b) Education Teams.--Section 7405(d)(2) of the Farm Security and 
Rural Investment At of 2002 (7 U.S.C. 3319f(d)(2)) is amended by 
inserting ``, including sustainable and organic farming production and 
marketing methods'' before the period at the end.
    (c) Stakeholder Input.--Section 7405(f) of the Farm Security and 
Rural Investment At of 2002 (7 U.S.C. 3319f(f)) is amended--
            (1) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and indenting 
        appropriately;
            (2) by striking ``In carrying out'' and inserting the 
        following:
            ``(1) In general.--In carrying out''; and
            (3) by adding at the end the following:
            ``(2) Review panels.--In forming review panels to evaluate 
        proposals submitted under this section, the Secretary shall 
        include individuals from the categories described in paragraph 
        (1).''.
    (d) Funding.--Section 7405 of the Farm Security and Rural 
Investment At of 2002 (7 U.S.C. 3319f) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for each of fiscal 
years 2002 through 2012.''.

SEC. 7310. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

    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)''.

SEC. 7311. 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. 7312. 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 A CHINESE GARDEN AT NATIONAL ARBORETUM.

    ``(a) In General.--A Chinese Garden may be constructed at the 
National Arboretum established under this Act with--
            ``(1) funds accepted under section 5; and
            ``(2) authorities provided to the Secretary of Agriculture 
        under section 6.
    ``(b) Report.--Each year the Secretary of Agriculture shall submit 
to Congress, and post on the public website of the National Arboretum, 
an itemized budget that shall describe, for the preceding year--
            ``(1) the total costs of the National Arboretum;
            ``(2) the costs of--
                    ``(A) operation and maintenance;
                    ``(B) horticulture and grounds;
                    ``(C) visitor services; and
                    ``(D) supplies and materials;
            ``(3) indirect costs of the Agricultural Research Service 
        relating to the National Arboretum; and
            ``(4) the total number of visitors to the National 
        Arboretum.
    ``(c) Limitation.--No Federal funds shall be used for the 
construction of the Chinese Garden authorized under subsection (a).''.

SEC. 7313. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR 
              CERTAIN LAND-GRANT UNIVERSITY ASSISTANCE.

    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.''.

SEC. 7314. EXCHANGE OR SALE AUTHORITY.

    Title III of the Department of Agriculture Reorganization Act of 
1994 is amended by adding after section 307 (7 U.S.C. 2204 note; Public 
Law 103-354) (as amended by section 2602) the following:

``SEC. 308. EXCHANGE OR SALE AUTHORITY.

    ``(a) Definition of Qualified Items of Personal Property.--In this 
section, the term `qualified items of personal property' means--
            ``(1) animals;
            ``(2) animal products;
            ``(3) plants; and
            ``(4) plant products.
    ``(b) General Authority.--Except as provided in subsection (c), 
notwithstanding chapter 5 of subtitle I of title 40, United States 
Code, the Secretary of Agriculture, 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 of Agriculture, may exchange, sell, or otherwise dispose of 
any qualified items of personal property, including by way of public 
auction, and may retain and apply the sale or other proceeds, without 
further appropriation, in whole or in partial payment--
            ``(1) to acquire any qualified items of personal property; 
        or
            ``(2) to offset costs related to the maintenance, care, or 
        feeding of any qualified items of personal property.
    ``(c) Exception.--Subsection (b) does not apply to the free 
dissemination of new varieties of seeds and germ plasm in accordance 
with section 520 of the Revised Statutes (commonly known as the 
`Department of Agriculture Organic Act of 1862') (7 U.S.C. 2201).''.

SEC. 7315. CARBON CYCLE RESEARCH.

    (a) In General.--To the extent funds are made available, the 
Secretary shall provide a grant to the Consortium for Agricultural 
Soils Mitigation of Greenhouse Gases, acting through Kansas State 
University, to develop, analyze, and implement, through the land grant 
universities described in subsection (b), carbon cycle and greenhouse 
gas management research at the national, regional, and local levels.
    (b) Land Grant Universities.--The land grant universities referred 
to in subsection (a) are--
            (1) Colorado State University;
            (2) Iowa State University;
            (3) Kansas State University;
            (4) Michigan State University;
            (5) Montana State University;
            (6) Purdue University;
            (7) Ohio State University;
            (8) Texas A&M University; and
            (9) University of Nebraska.
    (c) Use.--Land grant universities described in subsection (b) shall 
use funds made available under this section--
            (1) to conduct research to improve the scientific basis of 
        using land management practices to increase soil carbon 
        sequestration, including research on the use of new 
        technologies to increase carbon cycle effectiveness, such as 
        biotechnology and nanotechnology;
            (2) to conduct research on management of other greenhouse 
        gases in the agricultural sector;
            (3) to enter into partnerships to identify, develop, and 
        evaluate agricultural best practices, including partnerships 
        between--
                    (A) Federal, State, or private entities; and
                    (B) the Department of Agriculture;
            (4) to develop necessary computer models to predict and 
        assess the carbon cycle;
            (5) to estimate and develop mechanisms to measure carbon 
        levels made available as a result of--
                    (A) voluntary Federal conservation programs;
                    (B) private and Federal forests; and
                    (C) other land uses;
            (6) to develop outreach programs, in coordination with 
        Extension Services, to share information on carbon cycle and 
        agricultural best practices that is useful to agricultural 
        producers; and
            (7) to collaborate with the Great Plains Regional Earth 
        Science Application Center to develop a space-based carbon 
        cycle remote sensing technology program--
                    (A) to provide, on a near-continual basis, a real-
                time and comprehensive view of vegetation conditions;
                    (B) to assess and model agricultural carbon 
                sequestration; and
                    (C) to develop commercial products.
    (d) Cooperative Research.--
            (1) In general.--Subject to the availability of 
        appropriations, the Secretary, in cooperation with departments 
        and agencies participating in the U.S. Global Change Research 
        Program and eligible entities, may carry out research to 
        promote understanding of--
                    (A) the flux of carbon in soils and plants 
                (including trees); and
                    (B) the exchange of other greenhouse gases from 
                agriculture.
            (2) Eligible entities.--Research under this subsection may 
        be carried out through the competitive awarding of grants and 
        cooperative agreements to 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)).
            (3) Cooperative research purposes.--Research conducted 
        under this subsection shall encourage collaboration among 
        scientists with expertise in the areas of soil science, 
        agronomy, agricultural economics, forestry, and other 
        agricultural sciences to focus on--
                    (A) developing data addressing carbon losses and 
                gains in soils and plants (including trees) and the 
                exchange of methane and nitrous oxide from agriculture;
                    (B) understanding how agricultural and forestry 
                practices affect the sequestration of carbon in soils 
                and plants (including trees) and the exchange of other 
                greenhouse gases, including the effects of new 
                technologies such as biotechnology and nanotechnology;
                    (C) developing cost-effective means of measuring 
                and monitoring changes in carbon pools in soils and 
                plants (including trees), including computer models;
                    (D) evaluating the linkage between Federal 
                conservation programs and carbon sequestration;
                    (E) developing methods, including remote sensing, 
                to measure the exchange of carbon and other greenhouse 
                gases sequestered, and to evaluate leakage, 
                performance, and permanence issues; and
                    (F) assessing the applicability of the results of 
                research conducted under this subsection for developing 
                methods to account for the impact of agricultural 
                activities (including forestry) on the exchange of 
                greenhouse gases.
    (e) Extension Projects.--
            (1) In general.--The Secretary, in cooperation with 
        departments and agencies participating in the U.S. Global 
        Change Research Program and local extension agents, experts 
        from institutions of higher education that offer a curriculum 
        in agricultural and biological sciences, and other local 
        agricultural or conservation organizations, may implement 
        extension projects (including on-farm projects with direct 
        involvement of agricultural producers) that combine measurement 
        tools and modeling techniques into integrated packages to 
        monitor the carbon sequestering benefits of conservation 
        practices and the exchange of greenhouse gas emissions from 
        agriculture that demonstrate the feasibility of methods of 
        measuring and monitoring--
                    (A) changes in carbon content and other carbon 
                pools in soils and plants (including trees); and
                    (B) the exchange of other greenhouse gases.
            (2) Education and outreach.--The Secretary shall make 
        available to agricultural producers, private forest landowners, 
        and appropriate State agencies in each State information 
        concerning--
                    (A) the results of projects under this subsection;
                    (B) the manner in which the methods used in the 
                projects might be applicable to the operations of the 
                agricultural producers, private forest landowners, and 
                State agencies; and
                    (C) information on how agricultural producers and 
                private forest landowners can participate in carbon 
                credit and greenhouse gas trading system.
    (f) Repeal.--Section 221 of the Agricultural Risk Protection Act of 
2000 (7 U.S.C. 6711) is repealed.
    (g) 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.

SEC. 7316. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

    Title III of the Department of Agriculture Reorganization Act of 
1994 is amended by adding after section 309 (as added by section 7402) 
the following:

``SEC. 310. 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 Henry A. 
Wallace Beltsville Agricultural Research Center of the Agricultural 
Research Service and the National Agricultural Library to lease 
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 retail, wholesale, commercial, or residential 
                development;
                    ``(D) will not provide authority for the 
                development or improvement of any new property or 
                facility by any Department agency; and
                    ``(E) will not include any property or facility 
                required for any Department agency purpose without 
                prior written authority.
            ``(2) Term.--The term of the lease under this section shall 
        not exceed 50 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 covered by 
                                the lease.
                            ``(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;
                    ``(B) provision and administration of the lease;
                    ``(C) construction of any applicable real property;
                    ``(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 property or facility covered by a lease under this section.
    ``(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) Reports.--
            ``(1) Fiscal years 2008 through 2013.--For each of fiscal 
        years 2008 through 2013, 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 implementation of the 
        pilot program under this section during the preceding fiscal 
        year, including--
                    ``(A) a copy of each lease entered into pursuant to 
                this section;
                    ``(B) an assessment by the Secretary of the success 
                of the pilot program in promoting the mission of the 
                Beltsville Agricultural Research Center and the 
                National Agricultural Library; and
                    ``(C) recommendations regarding whether the pilot 
                program should be expanded or improved with respect to 
                other Department activities.
            ``(2) Fiscal year 2014 and thereafter.--For fiscal year 
        2014 and every 5 fiscal years 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 described in paragraph (1) 
        relating to the preceding 5-fiscal-year period.''.

SEC. 7317. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF ANTIBIOTIC-
              RESISTANT BACTERIA IN LIVESTOCK.

    (a) In General.--The Secretary shall provide research and education 
grants, on a competitive basis--
            (1) to study the development of antibiotic-resistant 
        bacteria in livestock; and
            (2) to study and ensure the judicious use of antibiotics in 
        livestock production to protect animal health without 
        negatively impacting human public health.
    (b) Use of Funds.--An entity shall use a grant provided under this 
section to conduct research relating to--
            (1) methods and practices of animal husbandry that ensure 
        the judicious use of antibiotics;
            (2) movement and prevention of movement of antibiotics and 
        antibiotic resistance traits from animals into ground and 
        surface water;
            (3) safe and effective alternatives to antibiotics;
            (4) the effect on antibiotic resistance from various drug 
        use regimens;
            (5) the development of better veterinary diagnostics to 
        improve decisionmaking on proper antibiotic use;
            (6) the identification of conditions or factors that affect 
        antibiotic use on farms; and
            (7) the development of procedures to monitor antibiotic use 
        at the farm level to relate findings to on-farm management 
        practices and develop intervention strategies when appropriate.

         Subtitle E--National Institute of Food and Agriculture

SEC. 7401. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

    (a) In General.--Subtitle F of the Department of Agriculture 
Reorganization Act of 1994 is amended by adding after section 252 (7 
U.S.C. 6972) the following:

``SEC. 253. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

    ``(a) Definitions.--In this section:
            ``(1) 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).
            ``(2) Competitive program.--The term `competitive 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 this section:
                    ``(A) The competitive grant program established 
                under section 2(b) of the Competitive, Special, and 
                Facilities Research Grant Act (7 U.S.C. 450i(b)), 
                commonly known as the `National Research Initiative 
                Competitive Grants Program'.
                    ``(B) 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)).
                    ``(C) The program providing community food project 
                competitive grants established under section 25 of the 
                Food Stamp Act of 1977 (7 U.S.C. 2034).
                    ``(D) Each grant program established under section 
                2501 of the Food, Agriculture, Conservation, and Trade 
                Act of 1990 (7 U.S.C. 2279) providing outreach and 
                assistance for socially disadvantaged farmers and 
                ranchers.
                    ``(E) The program providing grants under section 
                1417(b)(1) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3152(b)(1)), commonly known as `Higher Education 
                Challenge Grants'.
                    ``(F) The program providing grants and related 
                assistance established under section 1417(b)(5) of the 
                National Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3152(b)(5)) commonly known 
                as the `Higher Education Multicultural Scholars 
                Program'.
                    ``(G) The program providing food and agricultural 
                sciences national needs graduate and postgraduate 
                fellowship grants established under section 1417(b)(6) 
                of the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(6)).
                    ``(H) 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)), commonly known as `Institution Challenge 
                Grants'.
                    ``(I) The program providing grants for Hispanic-
                serving institutions established under section 1455 of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3241).
                    ``(J) 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).
                    ``(K) The program of agricultural development in 
                the American-Pacific region established under section 
                1473H of the National Agricultural Research, Extension, 
                and Teaching Policy Act of 1977.
                    ``(L) 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), 
                commonly known as the `Sustainable Agriculture Research 
                and Education program'.
                    ``(M) The biotechnology risk assessment research 
                program established under section 1668 of the Food, 
                Agriculture, Conservation, and Trade Act of 1990 (7 
                U.S.C. 5921).
                    ``(N) 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).
                    ``(O) The Initiative for Future Agriculture and 
                Food Systems established under section 401 of the 
                Agricultural Research, Extension, and Education Reform 
                Act of 1998 (7 U.S.C. 7621).
                    ``(P) The integrated research, education, and 
                extension competitive grants program established under 
                section 406 of the Agricultural Research, Extension, 
                and Education Reform Act of 1998 (7 U.S.C. 7626).
                    ``(Q) The Small Business Innovation Research 
                Program established under section 9 of the Small 
                Business Act (15 U.S.C. 638).
                    ``(R) The specialty crop research initiative under 
                section 412 of the Agricultural Research, Extension, 
                and Education Reform Act of 1998.
                    ``(S) The administration and management of the 
                regional bioenergy crop research program carried out 
                under section 9012 of the Farm Security and Rural 
                Investment Act of 2002.
                    ``(T) 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 viability and 
                competitiveness of small- and medium-sized dairy, 
                livestock, crop, and other commodity operations.
                    ``(U) Other programs, including any programs added 
                by amendments made by title VII of the Food and Energy 
                Security Act of 2007 that are competitive programs, as 
                determined by the Secretary.
            ``(3) Director.--The term `Director' means the Director of 
        the Institute.
            ``(4) Infrastructure program.--The term `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 this section:
                    ``(A) 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) (commonly 
                known as `financial assistance, technical assistance, 
                and endowments to tribal colleges and Navajo Community 
                College').
                    ``(B) 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.
                    ``(C) Each program established under subsections 
                (b), (c), and (d) of section 3 of the Smith-Lever Act 
                (7 U.S.C. 343).
                    ``(D) Each program established under the Hatch Act 
                of 1887 (7 U.S.C. 361a et seq.).
                    ``(E) Each program established under section 
                1417(b)(4) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3152(b)(4)), including grant programs under that 
                section (commonly known as the `1890 Institution 
                Teaching and Research Capacity Building Grants 
                Program').
                    ``(F) 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.).
                    ``(G) Each extension program available to 1890 
                Institutions established under sections 1444 and 1464 
                of the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3221, 3312).
                    ``(H) The program established under section 1445 of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3222) (commonly 
                known as the `Evans-Allen Program').
                    ``(I) 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).
                    ``(J) 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).
                    ``(K) 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).
                    ``(L) Each program available to 1890 Institutions 
                established under section 406 of the Agricultural 
                Research, Extension, and Education Reform Act of 1998 
                (7 U.S.C. 7626).
                    ``(M) The program providing competitive extension 
                grants to eligible 1994 Institutions under section 1464 
                of National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3312) and the 
                Equity in Educational Land-Grant Status Act of 1994 
                (Public Law 103-382; 7 U.S.C. 301 note) established 
                under section 406 of the Agricultural Research, 
                Extension, and Education Reform Act of 1998 (7 U.S.C. 
                7626).
                    ``(N) 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.).
                    ``(O) Each program established under the Renewable 
                Resources Extension Act of 1978 (16 U.S.C. 1671 et 
                seq.).
                    ``(P) Each program providing funding to Hispanic-
                serving agricultural colleges under section 1456 of the 
                National Agricultural Research, Extension and Teaching 
                Policy Act of 1977.
                    ``(Q) The administration and management of the farm 
                energy education and technical assistance program 
                carried out under section 9005 of the Farm Security and 
                Rural Investment Act of 2002.
                    ``(R) Other programs, including any programs added 
                by amendments made by title VII of the Food and Energy 
                Security Act of 2007 that are infrastructure programs, 
                as determined by the Secretary.
            ``(5) Institute.--The term `Institute' means the National 
        Institute of Food and Agriculture established by subsection 
        (b)(1)(A).
    ``(b) Establishment of National Institute for Food and 
Agriculture.--
            ``(1) Establishment.--
                    ``(A) In general.--There is established within the 
                Department an agency to be known as the `National 
                Institute of Food and Agriculture'.
                    ``(B) Location.--The location of the Institute 
                shall be in Washington, District of Columbia, as 
                determined by the Secretary.
                    ``(C) Members.--The Institute shall consist of--
                            ``(i) the Director;
                            ``(ii) the individual offices established 
                        under subsection (e); and
                            ``(iii) the staff and employees of National 
                        Institute for Food and Agriculture.
            ``(2) Transfer of authorities.--There are transferred to 
        the Institute the authorities (including all budget authorities 
        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--
                    ``(A) the infrastructure programs;
                    ``(B) the competitive programs;
                    ``(C) the research, education, economic, 
                cooperative State research programs, cooperative 
                extension and education programs, international 
                programs, and other functions and authorities delegated 
                by the 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
                    ``(D) any and all other authorities administered by 
                the Administrator of the Cooperative State Research, 
                Education, and Extension Service.
            ``(3) Consolidation of authorities.--To carry out this Act, 
        in accordance with the transfer and continuation of the 
        authorities, budgetary functions, and personnel resources under 
        this subsection, the administrative entity within the 
        Department known as the Cooperative State Research, Education, 
        and Extension Service shall terminate on the earlier of--
                    ``(A) October 1, 2008; or
                    ``(B) such earlier date as the Director determines 
                to be appropriate.
    ``(c) Director.--
            ``(1) In general.--The Institute shall be headed by a 
        Director, who shall be an individual who is--
                    ``(A) a distinguished scientist; and
                    ``(B) appointed by the President (after taking into 
                consideration recommendations made by the National 
                Academy of Sciences), by and with the advice and 
                consent of the Senate.
            ``(2) Term.--The Director shall serve for a single, 6-year 
        term.
            ``(3) Supervision.--The Director shall report directly to 
        the Secretary.
            ``(4) Compensation.--The Director shall receive basic pay 
        at the rate provided for level II of the Executive Schedule 
        under section 5513 of title 5, United States Code.
            ``(5) Authority and responsibilities of director.--
                    ``(A) In general.--Except as otherwise specifically 
                provided in this section, the Director shall--
                            ``(i) exercise all of the authority 
                        provided to the Institute by this section;
                            ``(ii) formulate programs in accordance 
                        with policies adopted by the Institute;
                            ``(iii) establish offices within the 
                        Institute;
                            ``(iv) establish procedures for the peer 
                        review of research funded by the Institute;
                            ``(v) establish procedures for the 
                        provision and administration of grants by the 
                        Institute in accordance with this section;
                            ``(vi) assess the personnel needs of 
                        agricultural research in the areas supported by 
                        the Institute, and, if determined to be 
                        appropriate by the Director, for other areas of 
                        food and agricultural research;
                            ``(vii) plan programs that will help meet 
                        agricultural personnel needs in the future, 
                        including portable fellowship and training 
                        programs in fundamental agricultural research 
                        and fundamental science; and
                            ``(viii) consult regularly with the 
                        National Agricultural Research, Extension, 
                        Education, and Economics Advisory Board.
                    ``(B) Finality of actions.--An action taken by the 
                Director in accordance with this section shall be final 
                and binding upon the Institute.
                    ``(C) Delegation and redelegation of functions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Director may, from time to 
                        time and as the Director considers to be 
                        appropriate, authorize the performance by any 
                        other officer, agency, or employee of the 
                        Institute of any of the functions of the 
                        Director under this section.
                            ``(ii) Contracts, grants, and other 
                        arrangements.--The Director may enter into 
                        contracts and other arrangements, and provide 
                        grants, in accordance with this section.
                            ``(iii) Formulation of programs.--The 
                        formulation of programs in accordance with the 
                        policies of the Institute shall be carried out 
                        by the Director.
            ``(6) Staff.--The Director shall recruit and hire such 
        senior staff and other personnel as are necessary to assist the 
        Director in carrying out this section.
            ``(7) Reporting and consultation.--The Director shall--
                    ``(A) periodically report to the Secretary with 
                respect to activities carried out by the Institute; and
                    ``(B) consult regularly with 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
                            ``(ii) the research of the Institute 
                        supplements and enhances, and does not replace, 
                        research conducted or funded by--
                                    ``(I) other agencies of the 
                                Department;
                                    ``(II) the National Science 
                                Foundation; or
                                    ``(III) the National Institutes of 
                                Health.
    ``(d) Powers.--
            ``(1) In general.--The Institute shall have such authority 
        as is necessary to carry out this section, including the 
        authority--
                    ``(A) to promulgate such regulations as the 
                Institute considers to be necessary for governance of 
                operations, organization, and personnel;
                    ``(B) to make such expenditures as are necessary to 
                carry out this section;
                    ``(C) to enter into contracts or other 
                arrangements, or modifications of contracts or other 
                arrangements--
                            ``(i) to provide for the conduct, by 
                        organizations or individuals in the United 
                        States (including other agencies of the 
                        Department, Federal agencies, and agencies of 
                        foreign countries), of such agricultural 
                        research or related activities as the Institute 
                        considers to be necessary to carry out this 
                        section; and
                            ``(ii) for the conduct of such specific 
                        agricultural research as is in the national 
                        interest or is otherwise of critical 
                        importance, as determined by the Secretary, 
                        with the concurrence of the Institute;
                    ``(D) to make advance, progress, and other payments 
                relating to research and scientific activities without 
                regard to subsections (a) and (b) of section 3324 of 
                title 31, United States Code;
                    ``(E) to receive and use donated funds, if the 
                funds are donated without restriction other than that 
                the funds be used in furtherance of 1 or more of the 
                purposes of the Institute;
                    ``(F) to publish or arrange for the publication of 
                research and scientific information to further the full 
                dissemination of information of scientific value 
                consistent with the national interest, without regard 
                to section 501 of title 44, United States Code;
                    ``(G)(i) to accept and use the services of 
                voluntary and uncompensated personnel; and
                    ``(ii) to provide such transportation and 
                subsistence as are authorized by section 5703 of title 
                5, United States Code, for individuals serving without 
                compensation;
                    ``(H) to prescribe, with the approval of the 
                Comptroller General of the United States, the extent to 
                which vouchers for funds expended under contracts for 
                scientific or engineering research shall be subject to 
                itemization or substantiation prior to payment, without 
                regard to the limitations of other laws relating to the 
                expenditure and accounting of public funds;
                    ``(I) to reimburse the Secretary, and the heads of 
                other Federal agencies, for the performance of any 
                activity that the Institute is authorized to conduct; 
                and
                    ``(J) to enter into contracts, at the request of 
                the Secretary, for the carrying out of such specific 
                agricultural research as is in the national interest or 
                otherwise of critical importance, as determined by the 
                Secretary, with the consent of the Institute.
            ``(2) Transfer of research funds of other departments or 
        agencies.--Funds available to the Secretary, or any other 
        department or agency of the Federal Government, for 
        agricultural or scientific research shall be--
                    ``(A) available for transfer, with the approval of 
                the Secretary or the head of the other appropriate 
                department or agency involved, in whole or in part, to 
                the Institute for use in providing grants in accordance 
                with the purposes for which the funds were made 
                available; and
                    ``(B) if so transferred, expendable by the 
                Institute for those purposes.
    ``(e) Offices.--
            ``(1) Establishment of offices.--
                    ``(A) Office of the agricultural research, 
                extension, and education network.--
                            ``(i) Establishment.--The Director shall 
                        establish within the Institute an Office of the 
                        Agricultural Research, Extension, and Education 
                        Network (referred to in this subparagraph as 
                        the `Office').
                            ``(ii) Duties.--At the discretion of the 
                        Director, the Office shall have responsibility 
                        for all infrastructure programs.
                    ``(B) Office of competitive programs for 
                fundamental research.--
                            ``(i) Definition of fundamental research.--
                        In this subparagraph, the term `fundamental 
                        research' means research that--
                                    ``(I) is directed toward greater 
                                knowledge or understanding of the 
                                fundamental aspects of phenomena and 
                                has the potential for broad, rather 
                                than specific, application; and
                                    ``(II) has an effect on 
                                agriculture, food, nutrition, human 
                                health, or another purpose of this 
                                section.
                            ``(ii) Establishment.--The Director shall 
                        establish within the Institute an Office of 
                        Competitive Programs for Fundamental Research 
                        (referred to in this subparagraph as the 
                        `Office').
                            ``(iii) Duties.--At the discretion of the 
                        Director, the Office shall have responsibility 
                        for all competitive programs relating to 
                        fundamental research.
                    ``(C) Office of competitive programs for applied 
                research.--
                            ``(i) Definition of applied research.--In 
                        this subparagraph, the term `applied research' 
                        means research that expands on the findings of 
                        fundamental research to uncover practical ways 
                        in which new knowledge can be advanced to 
                        benefit individuals and society.
                            ``(ii) Establishment.--The Director shall 
                        establish within the Institute an Office of 
                        Competitive Programs for Applied Research 
                        (referred to in this subparagraph as the 
                        `Office').
                            ``(iii) Duties.--At the discretion of the 
                        Director, the Office shall have responsibility 
                        for all competitive programs relating to 
                        applied research.
                    ``(D) Office of competitive programs for education 
                and other purposes.--
                            ``(i) Establishment.--The Director shall 
                        establish within the Institute an Office of 
                        Competitive Programs for Education and Other 
                        Purposes (referred to in this subparagraph as 
                        the `Office').
                            ``(ii) Duties.--At the discretion of the 
                        Director, the Office shall have responsibility 
                        for all competitive programs that provide 
                        education fellowships and other education-
                        related grants.
            ``(2) Competitive programs for fundamental and applied 
        research.--
                    ``(A) Definition of a competitive program for 
                fundamental and applied research.--In this paragraph, 
                the term `competitive program for fundamental and 
                applied research' means--
                            ``(i) the competitive grant program 
                        established under section 2 of the Competitive, 
                        Special, and Facilities Research Grant Act (7 
                        U.S.C. 450i), commonly known as the `National 
                        Research Initiative Competitive Grants 
                        Program'; and
                            ``(ii) any other competitive program within 
                        the Institute that funds both fundamental and 
                        applied research, as determined by the 
                        Director.
                    ``(B) Program allocations.--For purposes of 
                determining which Office established under paragraph 
                (1) should have primary responsibility for 
                administering grants under a competitive program for 
                fundamental and applied research, the Director shall--
                            ``(i) determine whether the grant under the 
                        competitive program for fundamental and applied 
                        research is principally related to fundamental 
                        or applied research; and
                            ``(ii) assign the grant to the appropriate 
                        Office.
            ``(3) Responsibility of the director.--The Director shall 
        ensure that the Offices established under paragraph (1) 
        coordinate with each other Office for maximum efficiency.
    ``(f) Reporting.--The Director shall submit to the Secretary, 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--
            ``(1) not later than 1 year after the date of establishment 
        of the Institute, and biennially thereafter, a comprehensive 
        report that--
                    ``(A) describes the research funded and other 
                activities carried out by the Institute during the 
                period covered by the report; and
                    ``(B) describes each contract or other arrangement 
                that the Institute has entered into, each grant awarded 
                to the Institute, and each other action of the Director 
                taken, under subsection (c)(5)(C)(ii); and
            ``(2) not later than 1 year after the date of establishment 
        of the Institute, and annually thereafter, a report that 
        describes the allocation and use of funds under subsection 
        (g)(2) of section 401 of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7621).
    ``(g) Funding.--
            ``(1) In general.--In addition to funds otherwise 
        appropriated to carry out each program administered by the 
        Institute, there are authorized to be appropriated such sums as 
        are necessary to carry out this section for each fiscal year.
            ``(2) Allocation.--Funding made available under paragraph 
        (1) shall be allocated according to recommendations contained 
        in the roadmap described in section 309(c)(1)(A).''.
    (b) National Agricultural Research, Extension, and Teaching Policy 
Act of 1977.--Section 1408(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(b)) is 
amended--
            (1) in paragraph (1), by striking ``31 members'' and 
        inserting ``24 members'';
            (2) 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.
                    ``(D) 1 member actively engaged in the production 
                of a plant commodity.
                    ``(E) 1 member actively engaged in aquaculture.
                    ``(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.
                    ``(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 
                Land-Grant Status Act of 1994 (Public Law 103-382; 7 
                U.S.C. 301 note)).
                    ``(N) 1 member representing Hispanic-serving 
                institutions.
                    ``(O) 1 member representing the American Colleges 
                of Veterinary Medicine.
                    ``(P) 1 member engaged in the transportation of 
                food and agricultural products to domestic and foreign 
                markets.
                    ``(Q) 1 member representing food retailing and 
                marketing interests.
                    ``(R) 1 member representing food and fiber 
                processors.
                    ``(S) 1 member actively engaged in rural economic 
                development.
                    ``(T) 1 member representing a national consumer 
                interest group.
                    ``(U) 1 member representing a national forestry 
                group.
                    ``(V) 1 member representing a national conservation 
                or natural resource group.
                    ``(W) 1 member representing private sector 
                organizations involved in international development.
                    ``(X) 1 member representing a national social 
                science association.''; and
            (3) in paragraph (4), 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''.
    (c) Conforming Amendments.--
            (1) Section 296(b) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
                    (A) in paragraph (4), by striking ``or'' at the 
                end;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(6) the authority of the Secretary relating to the 
        National Institute of Food and Agriculture under section 253; 
        or''.
            (2) 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''.
            (3) 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''.
            (4) 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''.
            (5) 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''.
            (6) Section 704 of the Agriculture, Rural Development, Food 
        and Drug Administration, and Related Agencies Appropriations 
        Act, 2006 (7 U.S.C. 2209b), is amended by striking 
        ``Cooperative State Research, Education, and Extension 
        Service'' and inserting ``the National Institute of Food and 
        Agriculture''.
            (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:
                            ``(vi) the National Institute of Food and 
                        Agriculture.''.
            (8) 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 inserting ``the 
        National Institute of Food and Agriculture''.
            (9) 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'' and inserting 
                ``the National Institute of Food and Agriculture''; and
                    (B) in subsection (b)(1), by striking subparagraph 
                (B) and inserting the following:
                    ``(B) the National Institute of Food and 
                Agriculture;''.
            (10) 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 the Agricultural Research Service'' 
        and inserting ``the National Institute of Food and 
        Agriculture''.
            (11) 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''.
            (12) 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 ``the National Institute of Food and Agriculture''.
            (13) 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''.
            (14) Section 401(f)(5) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7621(f)(5)) is amended by striking ``the Cooperative State 
        Research, Education, and Extension Service'' and inserting 
        ``the National Institute of Food and Agriculture''.
            (15) 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''.
            (16) 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''.
            (17) 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 ``the Director of the 
        National Institute of Food and Agriculture''.
            (18) 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, and Institute officials''.
            (19) Section 19 of the Cooperative Forestry Assistance Act 
        of 1978 (16 U.S.C. 2113) is amended in subsections (a)(2) and 
        (b)(1)(B)(i), by striking ``Extension Service,'' each place it 
        appears and inserting ``National Institute of Food and 
        Agriculture,''.
            (20) 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''.
            (21) 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;''.

SEC. 7402. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND NATIONAL 
              INSTITUTE OF FOOD AND AGRICULTURE.

    Title III of the Department of Agriculture Reorganization Act of 
1994 is amended by adding after section 308 (as added by section 7314) 
the following:

``SEC. 309. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND NATIONAL 
              INSTITUTE OF FOOD AND AGRICULTURE.

    ``(a) In General.--The Undersecretary for Research, Education, and 
Economics shall coordinate the programs under the authority of the 
Administrator of the Agricultural Research Service and the Director of 
the National Institute of Food and Agriculture, and the staff of the 
Administrator and the Director, including national program leaders, 
shall meet on a regular basis to--
            ``(1) increase coordination and integration of research 
        programs at the Agricultural Research Service and the research, 
        extension, and education programs of the National Institute of 
        Food and Agriculture;
            ``(2) coordinate responses to emerging issues;
            ``(3) minimize duplication of work and resources at the 
        staff level of each agency;
            ``(4) use the extension and education program to deliver 
        knowledge to stakeholders;
            ``(5) address critical needs facing agriculture; and
            ``(6) focus the research, extension, and education funding 
        strategy of the Department.
    ``(b) Reports.--Not later than 270 days after the date of enactment 
of this section, 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 efforts to increase coordination between the 
Agricultural Research Service and the National Institute for Food and 
Agriculture.
    ``(c) Roadmap.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, the Secretary, acting through the 
        Under Secretary for Research, Education, and Economics shall--
                    ``(A) prepare a roadmap for agricultural research, 
                extension, and education that--
                            ``(i) identifies major opportunities and 
                        gaps in agricultural research, extension, and 
                        education that no single entity in the 
                        Department would be able to carry out 
                        individually, but that is necessary to carry 
                        out agricultural research;
                            ``(ii) involves--
                                    ``(I) stakeholders from across the 
                                Federal Government;
                                    ``(II) stakeholders from across the 
                                full array of nongovernmental entities; 
                                and
                                    ``(III) 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);
                            ``(iii) incorporates roadmaps for 
                        agricultural research made publicly available 
                        by other Federal entities, agencies, or 
                        offices; and
                            ``(iv) describes recommended funding levels 
                        for areas of agricultural research, extension, 
                        and education, including--
                                    ``(I) competitive programs; and
                                    ``(II) infrastructure programs, 
                                with attention to the future growth 
                                needs of small 1862 Institutions, 1890 
                                Institutions, and 1994 Institutions (as 
                                those terms are defined in section 2 of 
                                the Agricultural Research, Extension, 
                                and Education Reform Act of 1998 (7 
                                U.S.C. 7601)), Hispanic-serving 
                                agricultural colleges (as defined in 
                                section 1456(a) of the National 
                                Agricultural Research, Extension and 
                                Teaching Policy Act of 1977), and any 
                                other public college or university that 
                                is not such an institution or college 
                                but that offers a baccalaureate or 
                                higher degree in the study of 
                                agriculture;
                    ``(B) use the roadmap to set the research, 
                extension, and education agenda of the Department; and
                    ``(C) submit a description of the roadmap to the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate.
            ``(2) Implementation.--The Secretary, acting through the 
        Under Secretary, shall implement, to the maximum extent 
        practicable, the roadmap.
            ``(3) Funding.--There are authorized to be appropriated 
        such sums as are necessary to carry out this subsection.''.

                       Subtitle F--Miscellaneous

SEC. 7501. 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 data relating to diet, health, 
        physical activity, and knowledge about diet and health, using a 
        nationally-representative sample;
            (2) to periodically collect data described in paragraph (1) 
        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 
        manner;
            (4) to analyze new data as the data becomes available;
            (5) to continuously update food composition tables; and
            (6) to research and develop data collection methods and 
        standards.

SEC. 7502. 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. 7503. REVIEW OF PLAN OF WORK REQUIREMENTS.

    (a) Review.--The Secretary of Agriculture (referred to in this 
section as 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 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), 3222(c));
            (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).
    (b) Report.--
            (1) In general.--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 describing the results of the review conducted 
        under subsection (a).
            (2) Inclusions.--The report shall include recommendations--
                    (A) to reduce the administrative burden and 
                workload on institutions associated with plan of work 
                compliance while meeting the reporting needs of the 
                Department of Agriculture for input, output, and 
                outcome indicators;
                    (B) to streamline the submission and reporting 
                requirements of the plan of work so that the plan of 
                work is of practical utility to both the Department of 
                Agriculture and the institutions; and
                    (C) for any legislative changes necessary to carry 
                out the plan of work improvements.
    (c) Consultation.--In carrying out this section, the Secretary 
shall consult with land-grant 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)).

SEC. 7504. STUDY AND REPORT ON ACCESS TO NUTRITIOUS FOODS.

    (a) In General.--The Secretary shall carry out a study of, and 
prepare a report on, areas in the United States with limited access to 
affordable and nutritious food, with a particular focus on 
predominantly lower-income neighborhoods and communities.
    (b) Contents.--The study and report shall--
            (1) assess the incidence and prevalence of areas with 
        limited access to affordable and nutritious food in the United 
        States;
            (2) identify--
                    (A) characteristics and factors causing and 
                influencing those areas; and
                    (B) the effect on local populations of limited 
                access to affordable and nutritious food; and
            (3) develop recommendations for addressing the causes and 
        influences of those areas through measures including--
                    (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.
    (c) Coordination With Other Agencies and Organizations.--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.
    (d) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit the report prepared 
under this section, including the findings and recommendations 
described in subsection (b), to--
            (1) the Committee on Agriculture of the House of 
        Representatives; and
            (2) the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate.

SEC. 7505. SENSE OF SENATE REGARDING ORGANIC RESEARCH.

    It is the sense of the Senate that--
            (1) the Secretary should recognize that sales of certified 
        organic products have been expanding by 17 to 20 percent per 
        year for more than a decade, but research and outreach 
        activities relating specifically to certified organic 
        production growth and processing of agricultural products (as 
        defined in section 2103 of the Organic Foods Production Act of 
        1990 (7 U.S.C. 6502)) has not kept pace with this expansion;
            (2) research conducted specifically on organic methods and 
        production systems benefits organic and conventional producers 
        and contributes to the strategic goals of the Department of 
        Agriculture, resulting in benefits for trade, human health, the 
        environment, and overall agricultural productivity;
            (3) in order to meet the needs of the growing organic 
        sector, the Secretary should use a portion of the total annual 
        funds of the Agricultural Research Service for research 
        specific to organic food and agricultural systems that is at 
        least commensurate with the market share of the organic sector 
        of the domestic food retail market; and
            (4) the increase in funding described in paragraph (3) 
        should include funding for efforts--
                    (A) to establish long-term core capacities for 
                organic research;
                    (B) to assist organic farmers and farmers intending 
                to transition to organic production systems; and
                    (C) to disseminate research results through the 
                Alternative Farming Systems Information Center of the 
                National Agriculture Library.

SEC. 7506. MODIFICATIONS TO INFORMATION TECHNOLOGY SERVICE.

    (a) In General.--The Secretary shall not implement any modification 
that reduces the availability or provision of information technology 
service, or administrative management control of that service, 
including data or center service agency, functions, and personnel at 
the National Finance Center and the National Information Technology 
Center service locations, until the date that is 60 days after the date 
on which the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
receive a written determination and report from the Chief Financial 
Officer or Chief Information Officer of the Department of Agriculture 
and the Secretary that states that the implementation of the 
modification is in the best interests of the Department of Agriculture.
    (b) Report on Proposed Modifications.--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, the 
Committee on Agriculture, Nutrition, and Forestry of the Senate, and 
the Comptroller General a report on any proposed modification to reduce 
the availability or provision of any information technology service, or 
administrative management control of such a service, including data or 
center service agency, functions, and personnel at the National Finance 
Center and National Technology Center service locations, that 
includes--
            (1) a business case analysis (including of the near- and 
        long-term costs and benefits to the Department of Agriculture 
        and all other Federal agencies and departments that benefit 
        from services provided by the National Finance Center and the 
        National Information Technology Center service locations) of 
        the proposed modifications, as compared with maintaining 
        administrative management control or information technology 
        service functions and personnel in the existing structure and 
        at present locations; and
            (2) an analysis of the impact of any changes in that 
        administrative management control or information technology 
        service (including data or center service agency, functions, 
        and personnel) on the ability of the National Finance Center 
        and National Information Technology Center service locations to 
        provide, in the near- and long-term, to all Federal agencies 
        and departments, cost-effective, secure, efficient, and 
        interoperable--
                    (A) information technology services;
                    (B) cross-servicing;
                    (C) e-payroll services; and
                    (D) human resource line-of-business services.
    (c) Assessment.--Not later than 90 days after the date on which the 
Comptroller General receives the report submitted under subsection (b), 
the Comptroller 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 detailed written assessment of 
the report that includes an analysis (including of near- and long-term 
cost benefits and impacts) of the alternatives available to all Federal 
agencies and departments to acquire cost-effective, secure, efficient, 
and interoperable information technology, cross-servicing, e-payroll, 
and human resource line-of-business services.
    (d) Operating Reserve.--
            (1) In general.--Of annual income amounts in the working 
        capital fund of the Department of Agriculture allocated for the 
        National Finance Center, the Secretary may reserve not more 
        than 4 percent--
                    (A) for the replacement or acquisition of capital 
                equipment, including equipment for--
                            (i) the improvement and implementation of a 
                        financial management plan;
                            (ii) information technology; and
                            (iii) other systems of the National Finance 
                        Center; or
                    (B) to pay any unforeseen, extraordinary costs of 
                the National Finance Center.
            (2) Availability for obligation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), none of the amounts reserved under paragraph (1) 
                shall be available for obligation unless the Secretary 
                submits notification of the obligation to--
                            (i) the Committees on Appropriations and 
                        Agriculture of the House of Representatives; 
                        and
                            (ii) the Committees on Appropriations and 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate.
                    (B) Exception.--The limitation described in 
                subparagraph (A) shall not apply to any obligation 
                that, as determined by the Secretary, is necessary--
                            (i) to respond to a declared state of 
                        emergency that significantly impacts the 
                        operations of the National Finance Center; or
                            (ii) to evacuate employees of the National 
                        Finance Center to a safe haven to continue 
                        operations of the National Finance Center.

SEC. 7507. STUDIES AND REPORTS BY THE DEPARTMENT OF AGRICULTURE, THE 
              DEPARTMENT OF HEALTH AND HUMAN SERVICES, AND THE NATIONAL 
              ACADEMY OF SCIENCES ON FOOD PRODUCTS FROM CLONED ANIMALS.

    (a) Study by the Department of Agriculture.--
            (1) In general.--The Secretary of Agriculture, in 
        coordination with the Economic Research Service, and after 
        consultation with the Secretary of Health and Human Services, 
        shall conduct a study and report to Congress on the state of 
        domestic and international markets for products from cloned 
        animals, including consumer acceptance. Such report shall be 
        submitted to Congress no later than 180 days after the date of 
        enactment of this Act.
            (2) Content.--The study and report under paragraph (1) 
        shall include a description of how countries regulate the 
        importation of food and agricultural products (including dairy 
        products), the basis for such regulations, and potential 
        obstacles to trade.
    (b) Study With the National Academy of Sciences.--
            (1) In general.--The Secretary of Health and Human Services 
        shall contract with the National Academy of Sciences to conduct 
        a study and report to Congress regarding the safety of food 
        products derived from cloned animals and the health effects and 
        costs attributable to milk from cloned animals in the food 
        supply. Such report shall be submitted to Congress no later 
        than 1 year after the date of enactment of this Act.
            (2) Content.--The study and report under paragraph (1) 
        shall include--
                    (A) a review and an assessment of whether the 
                studies (including peer review studies), data, and 
                analysis used in the draft risk assessment issued by 
                the Food and Drug Administration entitled Animal 
                Cloning: A Draft Risk Assessment (issued on December 
                28, 2006) supported the conclusions drawn by such draft 
                risk assessment and--
                            (i) whether there were a sufficient number 
                        of studies to support such conclusions; and
                            (ii) whether additional pertinent studies 
                        and data exist which were not considered in the 
                        draft risk assessment and how this additional 
                        information affects the conclusions drawn in 
                        such draft risk assessment; and
                    (B) an evaluation and measurement of the potential 
                public health effects and associated health care costs, 
                including any consumer behavior changes and negative 
                impacts on nutrition, health, and chronic diseases that 
                may result from any decrease in dairy consumption, 
                attributable to the commercialization of milk from 
                cloned animals and their progeny.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to impede ongoing scientific research in artificial 
reproductive health technologies.
    (d) Timeframe of Final Risk Assessment.--Notwithstanding any other 
provision of law, the Secretary of Health and Human Services (acting 
through the Commissioner of Food and Drugs) shall not issue the final 
risk assessment on the safety of cloned animals and food products 
derived from cloned animals until the date that the Secretary of 
Agriculture and the Secretary of Health and Human Services complete the 
studies required under this section.
    (e) Continuance of Moratorium.--Any voluntary moratorium on 
introducing food from cloned animals or their progeny into the food 
supply shall remain in effect at least until the date that the 
Secretary of Health and Human Services (acting through the Commissioner 
of Food and Drugs) issues the final risk assessment described in 
subsection (d).

SEC. 7508. ANIMAL BIOSCIENCE FACILITY, BOZEMAN, MONTANA.

    There is authorized to be appropriated to the Secretary for the 
period of fiscal years 2008 through 2012 $16,000,000, to remain 
available until expended, for the construction in Bozeman, Montana, of 
an animal bioscience facility within the Agricultural Research Service.

                          TITLE VIII--FORESTRY

        Subtitle A--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:
    ``(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:
            ``(1) Conserving and managing working forest landscapes for 
        multiple values and uses.
            ``(2) Protecting forests from threats to forest and forest 
        health, including unnaturally large wildfires, hurricanes, 
        tornadoes, windstorms, snow or ice storms, flooding, drought, 
        invasive species, insect or disease outbreak, or development, 
        and restoring appropriate forest structures and ecological 
        processes in response to such threats.
            ``(3) Enhancing public benefits from private forests, 
        including air and water quality, forest products, forestry-
        related jobs, production of renewable energy, wildlife, 
        enhanced biodiversity, the establishment or maintenance of 
        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 funding 
was used under this Act to address the national priorities specified in 
subsection (c) and the outcomes achieved in meeting the national 
priorities.''.

SEC. 8002. 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:

``SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(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 
                        effectively-managed 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.
            ``(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 eligible 
        entity that is 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 eligible entity that 
        is 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--
            ``(1) 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; and
            ``(2) shall not convert the property to other uses.
    ``(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.--To assist 
model stewardship of parcels acquired under the Program, 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 an equivalent official of an Indian 
tribe) 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.''.

SEC. 8003. FEDERAL, STATE, AND LOCAL COORDINATION AND COOPERATION.

    Section 19(b)(2)(D) of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2113(b)(2)(D)) is amended by inserting ``except for 
projects submitted by an Indian tribe,'' before ``make 
recommendations''.

SEC. 8004. COMPREHENSIVE STATEWIDE FOREST PLANNING.

    The Cooperative Forestry Assistance Act of 1978 is amended--
            (1) by redesignating section 20 (16 U.S.C. 2114) as section 
        22; and
            (2) by inserting after section 19 (16 U.S.C. 2113) the 
        following:

``SEC. 20. COMPREHENSIVE STATEWIDE FOREST PLANNING.

    ``(a) Establishment.--The Secretary shall establish a comprehensive 
statewide forest planning program under which the Secretary shall 
provide financial and technical assistance to States for use in the 
development and implementation of statewide forest resource assessments 
and plans.
    ``(b) Statewide Forest Resource Assessment and Plan.--For a State 
to be eligible to receive funds under this Act, not later than 2 years 
after the date of enactment of the Food and Energy Security Act of 
2007, the State Forester of the State, or an equivalent State official, 
shall develop a statewide forest resource assessment and plan that, at 
a minimum--
            ``(1) identifies each critical forest resource area in the 
        State described in section 2(c);
            ``(2) to the maximum extent practicable--
                    ``(A) incorporates any forest management plan of 
                the State in existence on the date of enactment of this 
                section (including community wildfire protection 
                plans);
                    ``(B) addresses the needs of the region, without 
                regard to the borders of each State of the region (or 
                the political subdivisions of each State of the 
                region);
                    ``(C) provides a comprehensive statewide plan 
                (including the opportunity for public participation in 
                the development of the statewide plan) for--
                            ``(i) managing the forest land in the 
                        State;
                            ``(ii) achieving the national priorities 
                        specified in section 2(c)(2);
                            ``(iii) monitoring the forest land in the 
                        State; and
                            ``(iv) administering any forestry-related 
                        Federal, State, or private grants awarded to 
                        the State under this section or any other 
                        provisions of law; and
                    ``(D) includes a multiyear, integrated forest 
                management strategy that provides a management 
                framework for--
                            ``(i) the administration of each applicable 
                        program of the State; and
                            ``(ii) the use of any funds made available 
                        for the management of the forest land in the 
                        State; and
            ``(3) is determined by the Secretary to be sufficient to 
        satisfy all relevant State planning and assessment requirements 
        under this Act.
    ``(c) Coordination.--In developing the statewide assessment and 
plan under subsection (b), the State Forester or equivalent State 
official shall--
            ``(1) coordinate with--
                    ``(A) the State Forest Stewardship Coordination 
                Committee established for the State under section 
                19(b);
                    ``(B) the State wildlife agency, with respect to 
                strategies contained in the State wildlife action 
                plans;
                    ``(C) the State Technical Committee; and
                    ``(D) applicable Federal land management agencies; 
                and
            ``(2) for purposes of the Forest Legacy Program under 
        section 7, work cooperatively with the State lead agency 
        designated by the Governor.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each fiscal 
year.''.

SEC. 8005. 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 Assistance 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,''.

        Subtitle B--Tribal-Forest Service Cooperative Relations

SEC. 8101. DEFINITIONS.

    In this subtitle:
            (1) Indian.--The term ``Indian'' means an individual who is 
        a member of an Indian tribe.
            (2) Indian tribe.--The term ``Indian tribe''--
                    (A) for purposes of title I, has the meaning given 
                the term in section 4 of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450b); and
                    (B) for purposes of title II, 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).
            (3) 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)).

     PART I--COLLABORATION BETWEEN INDIAN TRIBES AND FOREST SERVICE

SEC. 8111. FOREST LEGACY PROGRAM.

    (a) Participation by Indian Tribes.--Section 7 of the Cooperative 
Forestry Assistance Act of 1978 (16 U.S.C. 2103c) is amended--
            (1) in subsection (a), in the first sentence, by inserting 
        ``, including Indian tribes,'' after ``government'';
            (2) in subsection (b), by inserting ``or programs of Indian 
        tribes'' after ``regional programs'';
            (3) in subsection (f), in the second sentence, by striking 
        ``other appropriate State or regional natural resource 
        management agency'' and inserting ``other appropriate natural 
        resource management agency of a State, region, or Indian 
        tribe'';
            (4) in subsection (h)(2), by inserting ``, including an 
        Indian tribe'' before the period at the end; and
            (5) in subsection (j)(2), in the first sentence, by 
        inserting ``including Indian tribes,'' after ``governmental 
        units,''.
    (b) Optional State and Tribal Grants.--Section 7(l) of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c(l)) is 
amended--
            (1) in the subsection heading, by inserting ``and Tribal'' 
        after ``State'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Definition of indian tribe.--In this subsection, 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) Grants.--On request of a participating State or 
        Indian tribe, the Secretary shall provide a grant to the State 
        or Indian tribe to carry out the Forest Legacy Program in the 
        State or with the Indian tribe.
            ``(3) Administration.--If a State or Indian tribe elects to 
        receive a grant under this subsection--
                    ``(A) the Secretary shall use a portion of the 
                funds made available under subsection (m), as 
                determined by the Secretary, to provide a grant to the 
                State or Indian tribe; and
                    ``(B) the State or Indian tribe shall use the grant 
                to carry out the Forest Legacy Program in the State or 
                with the Indian tribe, including through acquisition by 
                the State or Indian tribe of land and interests in 
                land.
            ``(4) Effect on trust land.--
                    ``(A) Ineligibility.--The Secretary shall not 
                provide a grant under this subsection 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 this subsection shall be converted 
                to land held in trust by the United States on behalf of 
                any Indian tribe.''.
    (c) Conforming Amendments.--Section 7(j)(1) of the Cooperative 
Forestry Assistance Act of 1978 (16 U.S.C. 2103c(j)(1)) is amended by 
striking the first sentence and inserting the following: ``Fair market 
value shall be paid for any property interest acquired (other than by 
donation) under this section.''.

SEC. 8112. FORESTRY AND RESOURCE MANAGEMENT ASSISTANCE FOR INDIAN 
              TRIBES.

    (a) Definition of Eligible Indian Land.--In this section, the term 
``eligible Indian land'' means, with respect to each participating 
Indian tribe--
            (1) trust land located within the boundaries of the 
        reservation of the Indian tribe;
            (2) land owned in fee by the Indian tribe; and
            (3) trust land located outside the boundaries of the 
        reservation of the Indian tribe that is eligible for use for 
        land programs of the Indian tribe.
    (b) Authority To Provide Assistance.--The Secretary may provide 
financial, technical, educational, and related assistance to any Indian 
tribe for--
            (1) tribal consultation and coordination with the Forest 
        Service on issues relating to--
                    (A) access and use by members of the Indian tribe 
                to National Forest System land and resources for 
                traditional, religious, and cultural purposes;
                    (B) coordinated or cooperative management of 
                resources shared by the Forest Service and the Indian 
                tribe; or
                    (C) the provision of tribal traditional, cultural, 
                or other expertise or knowledge;
            (2) projects and activities for conservation education and 
        awareness with respect to forest land or grassland that is 
        eligible Indian land; and
            (3) technical assistance for forest resources planning, 
        management, and conservation on eligible Indian land.
    (c) Requirements.--
            (1) In general.--During any fiscal year, an Indian tribe 
        may participate in only 1 approved activity that receives 
        assistance under--
                    (A) subsection (b)(3); or
                    (B) the forest stewardship program under section 5 
                of the Cooperative Forestry Assistance Act of 1978 (16 
                U.S.C. 2103a).
    (d) Implementation.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall promulgate 
        regulations to implement subsection (b), including rules for 
        determining the distribution of assistance under that 
        subsection.
            (2) Consultation.--In developing regulations pursuant to 
        paragraph (1), the Secretary shall conduct full, open, and 
        substantive consultation with Indian tribal governments and 
        other representatives of Indian tribes.
    (e) Coordination With Secretary of Interior.--In carrying out this 
section, the Secretary shall coordinate with the Secretary of the 
Interior to ensure that activities under subsection (b)--
            (1) do not conflict with Indian tribal programs provided by 
        the Department of the Interior; and
            (2) achieve the goals established by the affected Indian 
        tribes.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

          PART II--CULTURAL AND HERITAGE COOPERATION AUTHORITY

SEC. 8121. PURPOSES.

    The purposes of this part are--
            (1) to authorize the reburial of human remains and cultural 
        items, including human remains and cultural items repatriated 
        under the Native American Graves Protection and Repatriation 
        Act (25 U.S.C. 3001 et seq.), on National Forest System land;
            (2) to prevent the unauthorized disclosure of information 
        regarding reburial sites, including--
                    (A) the quantity and identity of human remains and 
                cultural items on the sites; and
                    (B) the location of the sites;
            (3) to authorize the Secretary 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 
        free of charge to Indian tribes for traditional and cultural 
        purposes;
            (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. 8122. DEFINITIONS.

    In this part:
            (1) Adjacent site.--The term ``adjacent site'' means a site 
        that borders a boundary line of National Forest system land.
            (2) Cultural items.--
                    (A) In general.--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).
                    (B) Exception.--The term ``cultural items'' 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) 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.
            (5) Reburial site.--The term ``reburial site'' means a 
        discrete physical location at which cultural items or human 
        remains are reburied.
            (6) 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. 8123. 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 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 on reburial sites or adjacent sites 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. 8124. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL PURPOSES.

    (a) Recognition of Historic Use.--The Secretary shall, to the 
maximum extent practicable, 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) In general.--On receipt of a request from an Indian 
        tribe, the Secretary may temporarily close from public access 
        specifically designated 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. 8125. 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. 8126. 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''), any information relating 
        to--
                    (A) subject to subsection (b)(l), human remains or 
                cultural items reburied on National Forest System land 
                under section 8123; or
                    (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 
                8123.
    (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 
                        part; 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 may disclose 
        information described under paragraph (1)(B) or (2) of 
        subsection if the Secretary determines that disclosure of the 
        information to the public--
                    (A) would advance the purposes of this part;
                    (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. 8127. SEVERABILITY AND SAVINGS PROVISIONS.

    (a) Severability.--If any provision of this part, or the 
application of any provision of this part to any person or 
circumstance, is held invalid, the application of such provision or 
circumstance and the remainder of this part shall not be affected 
thereby.
    (b) Savings.--Nothing in this part--
            (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
            (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 Laws

SEC. 8201. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

    (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. 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. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.

    (a) In General.--The boundary of the Green Mountain National Forest 
is modified to include the 12 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. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.

    (a) In General.--The Lacey Act Amendments of 1981 are amended--
            (1) in section 2 (16 U.S.C. 3371)--
                    (A) by striking subsection (f) and inserting the 
                following:
    ``(f) Plant.--
            ``(1) In general.--The term `plant' means any wild member 
        of the plant kingdom, including roots, seeds, parts, and 
        products thereof.
            ``(2) Exclusions.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `plant' excludes--
                            ``(i) any cultivar or common food crop; or
                            ``(ii) a plant intended to remain planted, 
                        to be planted, or replanted (including roots, 
                        seeds, and germplasm) that is--
                                    ``(I)(aa) imported into the United 
                                States accompanied by a phytosanitary 
                                certificate issued by the national 
                                plant protection organization of the 
                                country of origin or transshipment 
                                country; or
                                    ``(bb) precleared for entry by the 
                                Secretary; or
                                    ``(II) a domestically produced 
                                plant, or derived from a domestically 
                                produced plant, that is--
                                            ``(aa) moving in interstate 
                                        commerce; and
                                            ``(bb) not listed pursuant 
                                        to any State law that provides 
                                        for the conservation of species 
                                        threatened with extinction.
                    ``(B) Limitation.--The exclusions in subparagraph 
                (A) do not apply to a plant listed--
                            ``(i) on an appendix to the Convention on 
                        International Trade in Endangered Species of 
                        Wild Fauna and Flora, done at Washington on 
                        March 3, 1973 (27 UST 1087; TIAS 8249); or
                            ``(ii) as an endangered or threatened 
                        species under the Endangered Species Act of 
                        1973 (16 U.S.C. 1531 et seq.).''.
                    (B) in subsection (h), by inserting ``also'' after 
                ``plants the term''; and
                    (C) by striking subsection (j) and inserting the 
                following:
    ``(j) Taken and Taking.--
            ``(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.'';
            (2) in section 3 (16 U.S.C. 3372)--
                    (A) in subsection (a)--
                            (i) in paragraph (2), by striking 
                        subparagraph (B) and inserting the following:
                    ``(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 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; or''; and
                            (ii) in paragraph (3), by striking 
                        subparagraph (B) and inserting the following:
                    ``(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 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) by adding at the end the following:
    ``(f) Plant Declarations.--
            ``(1) In general.--Effective 180 days from the date of 
        enactment of this subsection and except as provided in 
        paragraph (3), it shall be unlawful for any person to import 
        any plant unless the person files upon importation where 
        clearance is requested 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; and
                    ``(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 1 
                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.
            ``(3) Exclusions.--Paragraphs (1) and (2) shall not apply 
        to plants used exclusively as packaging materials to support, 
        protect, or carry another item, unless the packaging materials 
        are the items being imported.
            ``(4) Review.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this subsection, the Secretary 
                shall review the implementation of each requirement 
                described in paragraphs (1) and (2).
                    ``(B) Review of excluded wood and paper packaging 
                materials.--The Secretary--
                            ``(i) shall, in conducting the review under 
                        subparagraph (A), consider the effect of 
                        excluding the materials described in paragraph 
                        (3); and
                            ``(ii) may limit the scope of the 
                        exclusions under paragraph (3) if the Secretary 
                        determines, based on the review, that the 
                        limitations in scope are warranted.
            ``(5) Report.--
                    ``(A) In general.--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--
                            ``(i) an evaluation of--
                                    ``(I) the effectiveness of each 
                                type of information required under 
                                paragraphs (1) and (2) in assisting 
                                enforcement of section 3; and
                                    ``(II) the potential to harmonize 
                                each requirement described in 
                                paragraphs (1) and (2) with other 
                                applicable import regulations in 
                                existence as of the date of the report;
                            ``(ii) 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 section 3; and
                            ``(iii) an analysis of the effect of the 
                        provisions of subsection (a) and (f) on--
                                    ``(I) the cost of legal plant 
                                imports; and
                                    ``(II) the extent and methodology 
                                of illegal logging practices and 
                                trafficking.
                    ``(B) Public participation.--In conducting the 
                review under paragraph (4), the Secretary shall provide 
                public notice and an opportunity for comment.
            ``(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 
                described in paragraph (2) to specific plant products;
                    ``(B) to make any other necessary modification to 
                any requirement described in paragraph (2), as 
                determined by the Secretary based on the review under 
                paragraph (4); and
                    ``(C) to limit the scope of the exclusions under 
                paragraph (3) if the Secretary determines, based on the 
                review under paragraph (4), that the limitations in 
                scope are warranted.'';
            (3) in section 4 (16 U.S.C. 3373)--
                    (A) by striking ``subsections (b) and (d)'' each 
                place it appears and inserting ``subsections (b), (d), 
                and (f)'';
                    (B) by striking ``section 3(d)'' each place it 
                appears and inserting ``subsection (d) or (f) of 
                section 3''; and
                    (C) in subsection (a)(2), by striking ``subsection 
                3(b)'' and inserting ``subsection (b) or subsection (f) 
                of section 3, except as provided in paragraph (1),'';
            (4) by adding at the end of section 5 (16 U.S.C. 3374) the 
        following:
    ``(d) Civil Forfeitures.--Civil forfeitures under this section 
shall be governed by the provisions of chapter 46 of title 18, United 
States Code.''; and
            (5) in section 7(a)(1) (16 U.S.C. 3376(a)(1)), by striking 
        ``section 4'' and inserting ``section 3(f), section 4,''.
    (b) Technical Correction.--
            (1) In general.--Section 102(c) of Public Law 100-653 (102 
        Stat. 3825) is amended by striking ``(other than section 
        3(b))'' and inserting ``(other than subsection 3(b))''.
            (2) Effective date.--The amendment made by paragraph (1) 
        takes effect on November 14, 1988.
    (c) Exclusions.--
            (A) The term plant excludes--
                    (i) any cultivar or common food crop; or
                    (ii) plants intended to remain planted, to be 
                planted or replanted (including roots, seeds, and 
                germplasm) that are--
                            (I) imported into the United States 
                        accompanied by a phytosanitary certificate 
                        issued by the national plant protection 
                        organization of the country of origin or 
                        transshipment country, or that have been 
                        precleared for entry by the Secretary; or
                            (II) domestically produced, or derived from 
                        domestically produced plants, moving in 
                        interstate commerce; or
                    (iii) non-woody plant material, from plants lacking 
                a well-defined stem or stems and a more or less 
                definite crown including roots, seeds, and germplasm, 
                intended for research;
            (B) The exclusions in paragraph (A) do not apply to plants 
        listed--
                    (i) on an appendix to the Convention on 
                International Trade in Endangered Species of Wild Fauna 
                and Flora (27 UST 1087; TIAS 8249);
                    (ii) as an endangered or threatened species under 
                the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
                seq.); or
                    (iii) pursuant to any State law that provides for 
                the conservation of species threatened with extinction.

SEC. 8205. 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 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 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).
            (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 D--Qualifying Timber Contract Options

SEC. 8301. QUALIFYING TIMBER CONTRACT OPTIONS.

    (a) Definitions.--
            (1) Authorized producer price index.--The term ``authorized 
        Producer Price Index'' includes--
                    (A) the softwood commodity index (code number 
                0811);
                    (B) the hardwood commodity index (code number 
                0812);
                    (C) the wood chip index (code number PCU 
                3211332135); and
                    (D) any other subsequent comparable index, as 
                established by the Bureau of Labor Statistics of the 
                Department of Labor.
            (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 
                on the parcel of land that is the subject of the 
                contract;
                    (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 any option 
                described in subsection (b);
                    (D) that is not a salvage sale; and
                    (E) 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; 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 purchase 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--
                            (i) pays 30 percent of the total value of 
                        the qualifying contract based on current 
                        contract rates;
                            (ii) completes each contractual obligation 
                        of the timber purchaser with respect to each 
                        unit on which harvest has begun, (including the 
                        removal of downed timber, the completion of 
                        road work, and the completion of erosion 
                        control work) to a logical stopping point, as 
                        determined by the Secretary, in consultation 
                        with the timber purchaser; and
                            (iii) terminates the rights of the timber 
                        purchaser under the qualifying contract; or
                    (B) redetermine the 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) In general.--Notwithstanding any other 
                provision of law, the Secretary may, at the sole 
                discretion of the Secretary, substitute the Producer 
                Price Index in provision A20 of a qualifying contract 
                if the timber purchaser of the qualifying contract 
                identifies--
                            (i) each product that the timber purchaser 
                        intends to produce from the timber harvested 
                        from each unit of land that is the subject of 
                        the qualifying contract; and
                            (ii) a substitute index that contains 
                        products similar to each product identified in 
                        clause (i) from an authorized Producer Price 
                        Index.
                    (B) Authority of secretary to modify qualifying 
                contract.--If the Secretary substitutes the Producer 
                Price Index of a qualifying contract under subparagraph 
                (A), the Secretary may modify the qualifying contract 
                as the Secretary determines to be necessary to provide 
                for an emergency rate redetermination.
    (c) Extension of Qualifying Contracts.--With respect to a 
qualifying contract for which the current contract rate is redetermined 
by the Secretary under subsection (b)(1)(B), or for which the Producer 
Price Index is substituted by the Secretary under subsection (b)(2), 
the Secretary may--
            (1) extend the contract term for a 1-year period beginning 
        on the contract termination date; and
            (2) adjust the periodic payments required under the 
        contract in accordance with applicable law (including 
        regulations) and policies.
    (d) Effect of Options.--
            (1) In general.--This section shall not have the effect of 
        surrendering any claim by the United States against any timber 
        purchaser that arose under a qualifying contract before the 
        date on which the Secretary conducts a cancellation, rate 
        redetermination, or index substitution under subsection (b).
            (2) Release of liability.--The United States shall be 
        released from all liability, including further consideration or 
        compensation, resulting from--
                    (A) a cancellation, rate redetermination, or index 
                substitution conducted by the Secretary under 
                subsection (b); or
                    (B) a determination made by the Secretary not to 
                cancel, redetermine any rate, or substitute any index 
                under subsection (b).
            (3) Limitation.--A cancellation, rate redetermination, or 
        index substitution conducted by the Secretary under subsection 
        (b) shall release the timber purchaser from liability for any 
        damages resulting from the cancellation, rate redetermination, 
        or index substitution.

                            TITLE IX--ENERGY

SEC. 9001. ENERGY.

    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 starch.
                    ``(B) Inclusions.--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 
                        starch);
                            ``(iii) biofuel derived from waste 
                        material, including crop residue, other 
                        vegetative waste material, animal waste and 
                        byproducts (including fats, oils, greases, and 
                        manure), 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.
            ``(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 equipment 
        and processes that--
                    ``(A) convert 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 
                removed exotic species that--
                            ``(i) are byproducts of preventive 
                        treatments (such as trees, wood, brush, 
                        thinnings, chips, and slash), 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 from National Forest 
                        System land or public lands (as defined in 
                        section 103 of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1702)), in 
                        accordance with--
                                    ``(I) Federal and State law;
                                    ``(II) applicable land management 
                                plans; and
                                    ``(III) the requirements for 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 the requirements for 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);
                                    ``(IV) construction waste; and
                                    ``(V) 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) Rural area.--Except as otherwise provided in this 
        title, the term `rural area' has the meaning given the term in 
        section 343(a)(13)(A) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1991(a)(13)(A)).
            ``(15) 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) Application of section.--Except as provided in 
        paragraph (3), each procuring agency shall comply with this 
        subsection (including any regulations issued under this 
        subsection), with respect to any purchase or acquisition of a 
        procurement item for which--
                    ``(A) the purchase price of the item exceeds 
                $10,000; or
                    ``(B) the quantity of the items or of functionally-
                equivalent items purchased or acquired during the 
                preceding fiscal year was at least $10,000.
            ``(3) Procurement preference.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), after the date specified in 
                applicable guidelines prepared pursuant to paragraph 
                (5), each procuring agency that procures any items 
                designated in the guidelines and items containing 
                designated biobased intermediate ingredients and 
                feedstocks shall, in making procurement decisions 
                (consistent with maintaining a satisfactory level of 
                competition, considering the guidelines), give 
                preference to items that--
                            ``(i) are composed of the highest 
                        percentage of biobased products practicable;
                            ``(ii) are composed of at least 5 percent 
                        of intermediate ingredients and feedstocks (or 
                        a lesser percentage that the Secretary 
                        determines to be appropriate) as designated by 
                        the Secretary; or
                            ``(iii) comply with the regulations issued 
                        under section 103 of Public Law 100-556 (42 
                        U.S.C. 6914b-1).
                    ``(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) Certification.--After the date specified in 
                any applicable guidelines prepared pursuant to 
                paragraph (5), contracting offices shall require that, 
                with respect to biobased products, 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.
            ``(4) Specifications.--Each Federal agency that has the 
        responsibility for drafting or reviewing procurement 
        specifications shall, not later than 1 year after the date of 
        publication of applicable guidelines under paragraph (5), or as 
        otherwise specified in the guidelines, ensure that the 
        specifications require the use of biobased products consistent 
        with this subsection.
            ``(5) 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 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) 
                        and the procurement of which by procuring 
                        agencies will carry out the objectives of this 
                        subsection;
                            ``(ii) designate those intermediate 
                        ingredients and feedstocks and finished 
                        products that contain significant portions of 
                        biobased materials or components the 
                        procurement of which by procuring agencies will 
                        carry out the objectives of this subsection;
                            ``(iii) set forth recommended practices 
                        with respect to the procurement of biobased 
                        products and items containing such materials 
                        and with respect to certification by vendors of 
                        the percentage of biobased products used;
                            ``(iv) provide information as to the 
                        availability, relative price, performance, and 
                        environmental and public health benefits, of 
                        such materials and items; and
                            ``(v) automatically designate those items 
                        that are composed of materials and items 
                        designated pursuant to paragraph (3), if the 
                        content of the final product exceeds 50 percent 
                        (unless the Secretary determines a different 
                        composition percentage).
                    ``(C) Information provided.--Information provided 
                pursuant to subparagraph (B)(iv) 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) State procurement.--Not later than 180 days 
                after the date of enactment of this section, the 
                Secretary shall offer procurement system models that 
                States may use for the procurement of biobased products 
                by the States.
            ``(6) Administration.--
                    ``(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 conducting 
                        proactive research to inform and promote 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, 
                                including agency compliance with 
                                paragraph (4); 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 
                                paragraphs (3), (4), and (7);
                                    ``(II) the results of the annual 
                                review and monitoring program 
                                established under paragraph 
                                (7)(B)(iii);
                                    ``(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 and 
                                modernizations) 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 and 
                                modernizations) 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, to the maximum extent practicable, 
                        information concerning the types and dollar 
                        value of biobased products purchased by 
                        procuring agencies through GSA Advantage!, the 
                        Federal Supply Schedule, and the Defense 
                        Logistic Agency (including the DoD EMall).
            ``(7) Procurement program.--
                    ``(A) In general.--Not later than 1 year after the 
                date of publication of applicable guidelines under 
                paragraph (5), each Federal agency shall develop a 
                procurement program that--
                            ``(i) will ensure that items composed of 
                        biobased products will be purchased to the 
                        maximum extent practicable; and
                            ``(ii) is consistent with applicable 
                        provisions of Federal procurement law.
                    ``(B) Minimum requirements.--Each procurement 
                program required under this paragraph shall, at a 
                minimum, contain--
                            ``(i) a biobased products preference 
                        program;
                            ``(ii) an agency promotion program to 
                        promote the preference program adopted under 
                        clause (i); and
                            ``(iii) annual review and monitoring of the 
                        effectiveness of the procurement program of the 
                        agency.
                    ``(C) Consideration.--
                            ``(i) In general.--In developing a 
                        preference program, an agency shall--
                                    ``(I) consider the options 
                                described in clauses (ii) and (iii); 
                                and
                                    ``(II) adopt 1 of the options, or a 
                                substantially equivalent alternative, 
                                for inclusion in the procurement 
                                program.
                            ``(ii) Case-by-case policy development.--
                                    ``(I) In general.--Subject to 
                                paragraph (3)(B), except as provided in 
                                subclause (II), in developing a 
                                preference program, an agency shall 
                                consider a policy of awarding contracts 
                                to the vendor offering an item composed 
                                of the highest percentage of biobased 
                                products practicable.
                                    ``(II) Certain contracts allowed.--
                                Subject to paragraph (3)(B), an agency 
                                may make an award to a vendor offering 
                                items with less than the maximum 
                                biobased products content.
                            ``(iii) Minimum content standards.--In 
                        developing a preference program, an agency 
                        shall consider minimum biobased products 
                        content specifications that are established in 
                        a manner that ensures that the biobased 
                        products content required is consistent with 
                        this subsection, without violating paragraph 
                        (3)(B).
    ``(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.--
                    ``(A) Criteria.--
                            ``(i) In general.--Not later than 90 days 
                        after the date of the enactment of this 
                        section, 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 this 
                        section) 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 this section) 
                        by the Secretary.
                    ``(B) Requirements.--Criteria issued under 
                subparagraph (A)--
                            ``(i) shall encourage the purchase of 
                        products with the maximum biobased content;
                            ``(ii) shall 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, 
                        should be consistent with the guidelines issued 
                        under subsection (a)(5).
            ``(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).
            ``(4) Recognition.--The Secretary shall--
                    ``(A) establish a voluntary program to recognize 
                Federal agencies and private entities that use a 
                substantial amount of biobased products; and
                    ``(B) encourage Federal agencies to establish 
                incentives programs to recognize Federal employees or 
                contractors that make exceptional contributions to the 
                expanded use of biobased products.
    ``(c) Limitation.--Nothing in this section (other than subsections 
(f), (g), and (h)) shall apply to the procurement of motor vehicle 
fuels, heating oil, or electricity.
    ``(d) Inclusion.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of the Food and Energy Security Act of 2007, the 
        Architect of the Capitol, the Sergeant at Arms of the Senate, 
        and the Chief Administrative Officer of the House of 
        Representatives shall establish procedures that apply the 
        requirements of this section to procurement for the Capitol 
        Complex.
            ``(2) Annual showcase.--Beginning in calendar year 2008, 
        the Secretary shall sponsor or otherwise support, consistent 
        with applicable Federal laws (including regulations), an annual 
        exposition at which entities may display and demonstrate 
        biobased products.
    ``(e) Testing of Biobased Products.--
            ``(1) In general.--The Secretary may establish 1 or more 
        national testing centers for biobased products to verify 
        performance standards, biobased contents, and other product 
        characteristics.
            ``(2) Requirement.--In establishing 1 or more national 
        testing centers under paragraph (1), the Secretary shall give 
        preference to entities that have established capabilities and 
        experience in the testing of biobased materials and products.
    ``(f) Bioenergy and Other Biobased Products Education and Awareness 
Campaign.--
            ``(1) In general.--The Secretary in consultation with the 
        Secretary of Energy, shall establish a program to make 
        competitive grants to eligible entities to carry out broad-
        based education and public awareness campaigns relating to 
        bioenergy (including biofuels but excluding biodiesel) and 
        other biobased products.
            ``(2) Eligible entities.--An entity eligible to receive a 
        grant described in paragraph (1) is an entity that has 
        demonstrated a knowledge of bioenergy (including biofuels but 
        excluding biodiesel) and other biobased products and is--
                    ``(A) a State energy or agricultural office;
                    ``(B) a regional, State-based, or tribal energy 
                organization;
                    ``(C) a land-grant college or university (as 
                defined in section 1404 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103)) or other institution of higher education;
                    ``(D) a rural electric cooperative or utility;
                    ``(E) a nonprofit organization, including an 
                agricultural trade association, resource conservation 
                and development district, and energy service provider;
                    ``(F) a State environmental quality office; or
                    ``(G) any other similar entity, other than a 
                Federal agency or for-profit entity, as determined by 
                the Secretary.
    ``(g) Reports.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section 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 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) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use, to the maximum extent 
        practicable, $3,000,000 for each of fiscal years 2008 through 
        2012--
                    ``(A) to continue mandatory funding for biobased 
                products testing as required to carry out this section; 
                and
                    ``(B) to carry out the bioenergy education and 
                awareness campaign under subsection (f).
            ``(2) Authorization of appropriations.--In addition to any 
        other funds made available to carry out this section, there are 
        authorized to be appropriated to carry out this section such 
        sums as are necessary for each of fiscal years 2008 through 
        2012.
            ``(3) Priority.--At the discretion of the Secretary, the 
        Secretary may give priority to the testing of products for 
        which private sector firms provide cost sharing for the 
        testing.

``SEC. 9003. BIODIESEL FUEL EDUCATION.

    ``(a) Purpose.--The purpose of this section is to educate potential 
users about the proper use and benefits of biodiesel.
    ``(b) Establishment.--The Secretary shall, under such terms and 
conditions as are appropriate, make grants to eligible entities to 
educate governmental and private entities that operate vehicle fleets, 
oil refiners, automotive companies, owners and operators of watercraft 
fleets, other interested entities (as determined by the Secretary), and 
the public about the benefits of biodiesel fuel use.
    ``(c) Eligible Entities.--To receive a grant under subsection (b), 
an entity shall--
            ``(1) be a nonprofit organization or institution of higher 
        education (as defined in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001));
            ``(2) have demonstrated knowledge of biodiesel fuel 
        production, use, or distribution; and
            ``(3) have demonstrated the ability to conduct educational 
        and technical support programs.
    ``(d) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section, to the maximum 
extent practicable, $2,000,000 for each of fiscal years 2008 through 
2012.

``SEC. 9004. BIOMASS CROP TRANSITION.

    ``(a) Definitions.--In this section:
            ``(1) Eligible crop.--
                    ``(A) In general.--The term `eligible crop' means a 
                crop of renewable biomass.
                    ``(B) Exclusions.--The term `eligible crop' does 
                not include any plant that--
                            ``(i) the Secretary determines to be 
                        invasive or noxious on a regional basis under 
                        the Plant Protection Act (7 U.S.C. 7701 et 
                        seq.); or
                            ``(ii) has the potential to become invasive 
                        or noxious on a regional basis, as determined 
                        by the Secretary, in consultation with other 
                        appropriate Federal or State departments and 
                        agencies.
            ``(2) Eligible land.--The term `eligible land' means 
        private agricultural or forest land that the Secretary 
        determines was planted or considered to be planted for at least 
        4 of the 6 years preceding the date of enactment of the Food 
        and Energy Security Act of 2007.
            ``(3) Eligible participant.--The term `eligible 
        participant' means an agricultural producer, forest land owner, 
        or other individual holding the right to collect or harvest 
        renewable biomass--
                    ``(A) that is establishing 1 or more eligible crops 
                on eligible land to be used in the production of 
                advanced biofuels, other biobased products, heat, or 
                power from a biomass conversion facility;
                    ``(B) that is collecting or harvesting renewable 
                biomass to be used in the production of advanced 
                biofuels, other biobased products, heat, or power from 
                a biomass conversion facility;
                    ``(C) that has a letter of intent or proof of 
                financial commitment from a biomass conversion 
                facility, including a proposed biomass conversion 
                facility that is economically viable, as determined by 
                the Secretary, to purchase the eligible crops; and
                    ``(D) the production operation of which is in such 
                proximity to the biomass conversion facility described 
                in subparagraph (C) as to make delivery of the eligible 
                crops to that location economically practicable.
    ``(b) Biomass Crop Transition Assistance.--
            ``(1) Establishment of program.--The Secretary shall 
        establish a program to provide transitional assistance, 
        including planning grants, for the establishment and production 
        of eligible crops to be used in the production of advanced 
        biofuels, other biobased products, heat, or power from a 
        biomass conversion facility.
            ``(2) Exclusion.--An agricultural producer shall not be 
        eligible for assistance under paragraph (1) for the 
        establishment and production of--
                    ``(A) any crop that is eligible for benefits under 
                title I of the Food and Energy Security Act of 2007; or
                    ``(B) an annual crop.
            ``(3) Contracts.--
                    ``(A) In general.--The Secretary shall enter into 
                contracts with eligible participants and entities 
                described in subparagraph (B) to provide transitional 
                assistance payments to eligible participants.
                    ``(B) Contracts with member entities.--The 
                Secretary may enter into 1 or more contracts with 
                farmer-owned cooperatives, agricultural trade 
                associations, or other similar entities on behalf of 
                producer members that meet the requirements of, and 
                elect to be treated as, eligible participants if the 
                contract would offer greater efficiency in 
                administration of the program.
                    ``(C) Requirements.--Under a contract described in 
                subparagraph (A), an eligible participant shall be 
                required, as determined by the Secretary--
                            ``(i) to produce 1 or more eligible crops;
                            ``(ii) to develop and actively apply a 
                        conservation plan that meets the requirements 
                        for highly erodible land conservation and 
                        wetlands conservation as established under 
                        subtitles B and C of title XII of the Food 
                        Security Act of 1985 (16 U.S.C. 3811 et seq.); 
                        and
                            ``(iii) to agree to implement a 
                        conservation plan approved by the local soil 
                        conservation district, in consultation with the 
                        local committees established under section 
                        8(b)(5) of the Soil Conservation and Domestic 
                        Allotment Act (16 U.S.C. 590h(B)(5)) and the 
                        Secretary, or by the Secretary to use such 
                        conservation practices as are necessary, where 
                        appropriate--
                                    ``(I) to advance the goals and 
                                objectives of State, regional, and 
                                national fish and wildlife conservation 
                                plans and initiatives; and
                                    ``(II) to comply with mandatory 
                                environmental requirements for a 
                                producer under Federal, State, and 
                                local law.
            ``(4) Payments.--
                    ``(A) First year.--During the first year of the 
                contract, the Secretary shall make a payment to an 
                eligible participant in an amount that covers the cost 
                of establishing 1 or more eligible crops.
                    ``(B) Subsequent years.--During any subsequent year 
                of the contract, the Secretary shall make incentive 
                payments to an eligible participant in an amount 
                determined by the Secretary to encourage the eligible 
                participant to produce renewable biomass.
            ``(5) Applications.--An application to the Secretary for 
        assistance shall include--
                    ``(A) identification of the proposed biomass 
                conversion facility for which the crop is intended;
                    ``(B) letters of intent or proof of financial 
                commitment from the biomass conversion facility to 
                purchase the crop; and
                    ``(C) documentation from each eligible participant 
                that describes--
                            ``(i) the variety and acreage of the 
                        eligible crop the eligible participants have 
                        committed to producing; and
                            ``(ii) the variety and acreage of crops 
                        that the eligible participants would have grown 
                        if the eligible participants had not committed 
                        to producing the eligible crop.
            ``(6) Selection criteria.--In selecting from applications 
        submitted under this subsection, the Secretary shall consider--
                    ``(A) the likelihood that the proposed 
                establishment of the eligible crop will be viable 
                within the proposed locale;
                    ``(B) the impact of the proposed eligible crop and 
                conversion system on wildlife, air, soil, and water 
                quality and availability; and
                    ``(C) local and regional economic impacts and 
                benefits, including participation of beginning farmers 
                or ranchers and socially disadvantaged farmers or 
                ranchers.
            ``(7) Eligible crop transition planning grants.--
                    ``(A) In general.--An eligible participant or 
                member entity (as described in paragraph (3)(B)) may 
                apply for a project planning grant in an amount of not 
                more than $50,000 to assist in assessing the viability 
                for, or assembling of, a regional supply of 1 or more 
                eligible crops for use by a bioenergy conversion 
                facility.
                    ``(B) Matching requirement.--To receive a planning 
                grant under subparagraph (A), an eligible participant 
                or member entity shall provide matching funding in an 
                amount equal to 100 percent of the amount of the grant.
    ``(c) Assistance for Production of Annual Crop of Renewable 
Biomass.--
            ``(1) In general.--The Secretary may provide assistance to 
        eligible participants to plant an annual crop of renewable 
        biomass for use in a biomass conversion facility in the form 
        of--
                    ``(A) technical assistance; and
                    ``(B) cost-share assistance for the cost of 
                establishing an annual crop of renewable biomass.
            ``(2) Exclusion.--An agricultural producer shall not be 
        eligible for assistance under paragraph (1) for the 
        establishment of any crop that is eligible for benefits under 
        title I of the Food and Energy Security Act of 2007.
            ``(3) Compliance.--Eligible participants receiving 
        assistance under paragraph (1)(B) shall develop and actively 
        apply a conservation plan that meets the requirements for 
        highly erodible land conservation and wetlands conservation as 
        established under subtitles B and C of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3811 et seq.).
    ``(d) Assistance for Collection, Harvest, Storage, and Transport of 
Renewable Biomass.--
            ``(1) Establishment of program.--The Secretary shall 
        establish a program to provide assistance to eligible 
        participants for collecting, harvesting, storing, and 
        transporting renewable biomass to be used in the production of 
        advanced biofuels, biobased products, heat, or power from a 
        biomass conversion facility.
            ``(2) Payments.--
                    ``(A) In general.--An eligible participant shall 
                receive payments under this subsection for each ton of 
                renewable biomass delivered to a biomass conversion 
                facility, based on a fixed rate to be established by 
                the Secretary in accordance with subparagraph (B).
                    ``(B) Fixed rate.--The Secretary shall establish a 
                fixed payment rate for purposes of subparagraph (A) to 
                reflect--
                            ``(i) the estimated cost of collecting, 
                        harvesting, storing, and transporting the 
                        renewable biomass; and
                            ``(ii) such other factors as the Secretary 
                        determines to be appropriate.
    ``(e) Assistance for Forest Biomass Planning.--
            ``(1) In general.--The Secretary shall provide assistance 
        to eligible participants to develop forest stewardship plans 
        that involve management of forest biomass for delivery to a 
        biomass conversion facility through--
                    ``(A) a State forestry agency; or
                    ``(B) a contract or agreement with a third-party 
                provider in accordance with section 1242 of the Food 
                Security Act of 1985 (16 U.S.C. 3842).
            ``(2) Management practices.--The Secretary shall ensure 
        that any plan developed using assistance provided under 
        paragraph (1) includes management practices that will protect 
        soil, water, and wildlife habitat resources on the land covered 
        by the plan.
    ``(f) Best Practices.--
            ``(1) Recordkeeping.--Each eligible participant, and each 
        biomass conversion facility contracting with the eligible 
        participant, shall maintain and make available to the 
        Secretary, at such times as the Secretary may request, 
        appropriate records of methods used for activities for which 
        payment is received under this section.
            ``(2) Information sharing.--From the records maintained 
        under subparagraph (A), the Secretary shall maintain, and make 
        available to the public, information regarding--
                    ``(A) the production potential (including 
                evaluation of the environmental benefits) of a variety 
                of eligible crops; and
                    ``(B) best practices for producing, collecting, 
                harvesting, storing, and transporting eligible crops to 
                be used in the production of advanced biofuels.
    ``(g) Funding.--
            ``(1) Biomass crop transition assistance.--Of the funds of 
        the Commodity Credit Corporation, the Secretary shall use to 
        carry out subsections (b) and (c) $130,000,000 for fiscal year 
        2008, to remain available until expended, of which not more 
        than $5,000,000 may be used to carry out subsection (b)(7).
            ``(2) Assistance for collection, harvest, storage, and 
        transport of renewable biomass.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available to carry 
        out subsection (d) $10,000,000 for each of fiscal years 2009 
        through 2011, to remain available until expended.
            ``(3) Assistance for forest biomass planning.--Of the funds 
        made available under paragraph (1), the Secretary shall use not 
        more than 5 percent to carry out subsection (e).

``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.

    ``(a) Purpose.--The purpose of this section is to assist in the 
development of new or emerging technologies for the use of renewable 
biomass or other sources of renewable energy--
            ``(1) to develop advanced biofuels;
            ``(2) to increase the energy independence of the United 
        States by promoting the replacement of energy generated from 
        fossil fuels with energy generated from a renewable energy 
        source;
            ``(3) to promote resource conservation, public health, and 
        the environment;
            ``(4) to diversify markets for raw agricultural and 
        forestry products, and agriculture waste material; and
            ``(5) to create jobs and enhance the economic development 
        of the rural economy.
    ``(b) Definition of Repower.--In this section, the term `repower' 
means to substitute the production of heat or power from a fossil fuel 
source with heat or power from sources of renewable energy.
    ``(c) Assistance.--
            ``(1) In general.--The Secretary shall make available to 
        eligible entities described in subsection (d)--
                    ``(A) grants to assist in paying the costs of--
                            ``(i) development and construction of 
                        pilot- and demonstration-scale biorefineries 
                        intended to demonstrate the commercial 
                        viability of 1 or more processes for converting 
                        renewable biomass to advanced biofuels;
                            ``(ii) repowering a biomass conversion 
                        facility, power plant, or manufacturing 
                        facility, in whole or in part; or
                            ``(iii) conducting a study to determine the 
                        feasibility of repowering a biomass conversion 
                        facility, power plant, or manufacturing 
                        facility, in whole or in part; and
                    ``(B) guarantees for loans made to fund--
                            ``(i) the development and construction of 
                        commercial-scale biorefineries; or
                            ``(ii) the repowering of a biomass 
                        conversion facility, power plant, or 
                        manufacturing facility, in whole or in part.
            ``(2) Preference.--In selecting projects to receive grants 
        and loan guarantees under this section, the Secretary shall 
        give preference to projects that receive or will receive 
        financial support from the State in which the project is 
        carried out.
    ``(d) Eligible Entities.--An eligible entity under this section 
is--
            ``(1) an individual;
            ``(2) a corporation;
            ``(3) a farm cooperative;
            ``(4) a rural electric cooperative or public power entity;
            ``(5) an association of agricultural producers;
            ``(6) a State or local energy agency or office;
            ``(7) an Indian tribe;
            ``(8) a consortium comprised of any individuals or entities 
        described in any of paragraphs (1) through (7); or
            ``(9) any other similar entity, as determined by the 
        Secretary.
    ``(e) Grants.--
            ``(1) In general.--The Secretary shall award grants under 
        subsection (c)(1)(A) on a competitive basis.
            ``(2) Selection criteria.--
                    ``(A) Grants for development and construction of 
                pilot and demonstration scale biorefineries.--
                            ``(i) In general.--In awarding grants for 
                        development and construction of pilot and 
                        demonstration scale biorefineries under 
                        subsection (c)(1)(A)(i), the Secretary shall 
                        select projects based on the likelihood that 
                        the projects will demonstrate the commercial 
                        viability of a new or emerging process for 
                        converting renewable biomass into advanced 
                        biofuels.
                            ``(ii) Factors.--The factors to be 
                        considered under clause (i) may include--
                                    ``(I) the potential market for 1 or 
                                more products;
                                    ``(II) the level of financial 
                                participation by the applicants;
                                    ``(III) the availability of 
                                adequate funding from other sources;
                                    ``(IV) the participation of 
                                producer associations and cooperatives;
                                    ``(V) the beneficial impact on 
                                resource conservation, public health, 
                                and the environment;
                                    ``(VI) the timeframe in which the 
                                project will be operational;
                                    ``(VII) the potential for rural 
                                economic development;
                                    ``(VIII) the participation of 
                                multiple eligible entities;
                                    ``(IX) the potential for developing 
                                advance industrial biotechnology 
                                approaches; and
                                    ``(X) whether the distribution of 
                                funds would have minimal impact on 
                                existing manufacturing and other 
                                facilities that use similar feedstocks.
                    ``(B) Grants for repowering.--In selecting projects 
                to receive grants for repowering under clauses (ii) and 
                (iii) of subsection (c)(1)(A), the Secretary shall 
                consider--
                            ``(i) the change in energy efficiency that 
                        would result from the proposed repowering of 
                        the eligible entity;
                            ``(ii) the reduction in fossil fuel use 
                        that would result from the proposed repowering; 
                        and
                            ``(iii) the volume of renewable biomass 
                        located in such proximity to the eligible 
                        entity as to make local sourcing of feedstock 
                        economically practicable.
            ``(3) Cost sharing.--
                    ``(A) Limits.--
                            ``(i) Development and construction of pilot 
                        and demonstration scale biorefineries.--The 
                        amount of a grant awarded for development and 
                        construction of a biorefinery under subsection 
                        (c)(1)(A)(i) shall not exceed 50 percent of the 
                        cost of the project.
                            ``(ii) Repowering.--The amount of a grant 
                        awarded for repowering under subsection 
                        (c)(1)(A)(ii) shall not exceed 20 percent of 
                        the cost of the project.
                            ``(iii) Feasibility study for repowering.--
                        The amount of a grant awarded for a feasibility 
                        study for repowering under subsection 
                        (c)(1)(A)(iii) shall not exceed an amount equal 
                        to the lesser of--
                                    ``(I) an amount equal to 50 percent 
                                of the total cost of conducting the 
                                feasibility study; and
                                    ``(II) $150,000.
                    ``(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 the provision of services, material, or 
                        other in-kind contributions.
                            ``(ii) Limitation.--The amount of the 
                        grantee share of the cost of a project that is 
                        made in the form of the provision of services, 
                        material, or other in-kind contributions shall 
                        not exceed 15 percent of the amount of the 
                        grantee share determined under subparagraph 
                        (A).
    ``(f) Loan Guarantees.--
            ``(1) Conditions.--As a condition of making a loan 
        guarantee under subsection (c)(1)(B), the Secretary shall 
        require--
                    ``(A) demonstration of binding commitments to 
                cover, from sources other than Federal funds, at least 
                20 percent of the total cost of the project described 
                in the application;
                    ``(B) in the case of a new or emerging technology, 
                demonstration that the project design has been 
                validated through a technical review and subsequent 
                operation of a pilot or demonstration scale facility 
                that can be scaled up to commercial size; and
                    ``(C) demonstration that the applicant provided 
                opportunities to local investors (as determined by the 
                Secretary) to participate in the financing or ownership 
                of the biorefinery.
            ``(2) Local ownership.--The Secretary shall give preference 
        under subsection (c)(1)(B) to applications for projects with 
        significant local ownership.
            ``(3) Approval.--Not later than 90 days after the Secretary 
        receives an application for a loan guarantee under subsection 
        (c)(1)(B), the Secretary shall approve or disapprove the 
        application.
            ``(4) Limitations.--
                    ``(A) Maximum amount of loan guaranteed.--
                            ``(i) Commercial-scale biorefineries.--
                        Subject to clause (iii), the principal amount 
                        of a loan guaranteed under subsection 
                        (c)(1)(B)(i) may not exceed $250,000,000.
                            ``(ii) Repowering.--Subject to clause 
                        (iii), the principal amount of a loan 
                        guaranteed under subsection (c)(1)(B)(ii) may 
                        not exceed $70,000,000.
                            ``(iii) Relationship to other federal 
                        funding.--The amount of a loan guaranteed under 
                        subsection (c)(1)(B) shall be reduced by the 
                        amount of other Federal funding that the entity 
                        receives for the same project.
                    ``(B) Maximum percentage of loan guaranteed.--A 
                loan guaranteed under subsection (c)(1)(B) shall be in 
                an amount not to exceed 80 percent of the project 
                costs, as determined by the Secretary.
                    ``(C) Authority to guarantee entire amount of the 
                loan.--The Secretary may guarantee up to 100 percent of 
                the principal and interest due on a loan guaranteed 
                under subsection (c)(1)(B).
    ``(g) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use for the cost of grants and loan guarantees to 
carry out this section $300,000,000 for fiscal year 2008, to remain 
available until expended.

``SEC. 9006. 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 encourage increased purchases of renewable biomass for the 
purpose of expanding production of, and supporting new production 
capacity for, advanced biofuels.
    ``(c) Contracts.--To receive a payment, an eligible producer 
shall--
            ``(1) enter into a contract with the Secretary to increase 
        production of advanced biofuels for 1 or more fiscal years; and
            ``(2) submit to the Secretary such records as the Secretary 
        may require as evidence of increased purchase and use of 
        renewable biomass for the production of advanced biofuels.
    ``(d) Basis for Payments.--The Secretary shall make payments under 
this section to eligible producers based on--
            ``(1) the level of production by the eligible producer of 
        an advanced biofuel;
            ``(2) the price of each renewable biomass feedstock used 
        for production of the advanced biofuel;
            ``(3) the net nonrenewable energy content of the advanced 
        biofuel, if sufficient data is available, as determined by the 
        Secretary; and
            ``(4) other appropriate factors, as determined by the 
        Secretary.
    ``(e) Overpayments.--If the total amount of payments that an 
eligible producer receives for a fiscal year under this section exceeds 
the amount that the eligible producer should have received, the 
eligible producer shall repay the amount of the overpayment to the 
Secretary, with interest (as determined by the Secretary).
    ``(f) Limitations.--
            ``(1) 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.
            ``(2) Ineligibility.--An eligible producer that claims a 
        credit allowed under section 40(a)(3), 40(a)(4), or 40A(a)(3) 
        of the Internal Revenue Code of 1986 shall not be eligible to 
        receive payments under subsection (d).
            ``(3) Refining capacity.--An eligible producer may not use 
        any funds received under this section for an advanced biofuel 
        production facility or other fuel refinery the total refining 
        capacity of which is more than 150,000,000 gallons per year.
    ``(g) 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.
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $245,000,000 for the 
period of fiscal years 2008 through 2012, to remain available until 
expended.

``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, cooperatives, rural small businesses, and other 
similar entities through--
            ``(1) grants for energy audits and renewable energy 
        development assistance;
            ``(2) financial assistance for energy efficiency 
        improvements and renewable energy systems; and
            ``(3) financial assistance for facilities to convert animal 
        manure to energy.
    ``(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 technology and 
                resources.
            ``(2) Eligible entities.--An eligible entity under this 
        subsection is--
                    ``(A) a State agency;
                    ``(B) a regional, State-based, or tribal energy 
                organization;
                    ``(C) a land-grant college or university or other 
                institution of higher education;
                    ``(D) a rural electric cooperative or public power 
                entity;
                    ``(E) a nonprofit organization; and
                    ``(F) any other similar entity, as determined by 
                the Secretary.
            ``(3) Merit review.--
                    ``(A) Merit review process.--The Secretary shall 
                establish a merit review process to review applications 
                for grants under paragraph (1) that uses the expertise 
                of other Federal agencies, industry, and 
                nongovernmental organizations.
                    ``(B) Selection criteria.--In reviewing 
                applications of eligible entities to receive grants 
                under paragraph (1), the Secretary shall consider--
                            ``(i) the ability and expertise of the 
                        eligible entity in providing professional 
                        energy audits and renewable energy assessments;
                            ``(ii) the geographic scope of the program 
                        proposed by the eligible entity in relation to 
                        the identified need;
                            ``(iii) the number of agricultural 
                        producers and rural small businesses to be 
                        assisted by the program;
                            ``(iv) the potential for energy savings and 
                        environmental and public health benefits 
                        resulting from the program; and
                            ``(v) the plan of the eligible entity for 
                        providing information to agricultural producers 
                        and rural small businesses on the benefits of 
                        energy efficiency and renewable energy 
                        development.
            ``(4) Use of grant funds.--
                    ``(A) Required uses.--A recipient of a grant under 
                paragraph (1) shall use the grant funds to conduct and 
                promote energy audits for agricultural producers and 
                rural small businesses to provide recommendations on 
                how to improve energy efficiency and use renewable 
                energy technology and resources.
                    ``(B) Permitted uses.--In addition to the uses 
                described in subparagraph (A), a recipient of a grant 
                may use the grant funds to make agricultural producers 
                and rural small businesses aware of--
                            ``(i) financial assistance under subsection 
                        (c); and
                            ``(ii) other Federal, State, and local 
                        financial assistance programs for which the 
                        agricultural producers and rural small 
                        businesses may be eligible.
            ``(5) 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)(A) 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, grants, and 
        production-based incentives 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 
        grant, loan guarantee, or production-based incentive 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 comparable to an energy audit under subsection 
                (b);
                    ``(E) the estimated period of time for the energy 
                savings generated by the activity to equal the cost of 
                the activity;
                    ``(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 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) Loan guarantees.--
                            ``(i) Maximum amount.--The amount of a loan 
                        guaranteed under this subsection shall not 
                        exceed $25,000,000.
                            ``(ii) Maximum percentage.--A loan 
                        guaranteed under this subsection shall not 
                        exceed 75 percent of the cost of the activity 
                        carried out using funds from the loan.
            ``(5) Production-based incentive payments in lieu of 
        grants.--
                    ``(A) In general.--In addition to the authority 
                under subsection (b), to encourage the production of 
                electricity from renewable energy systems, the 
                Secretary, on receipt of a request of an eligible 
                applicant under this section, shall make production-
                based incentive payments to the applicant in lieu of a 
                grant.
                    ``(B) Contingency.--A payment under subparagraph 
                (A) shall be contingent on documented energy production 
                and sales by the renewable energy system of the 
                eligible applicant to a third party.
                    ``(C) Limitation.--The total net present value of a 
                production-based incentive payment under this paragraph 
                shall not exceed the lesser of--
                            ``(i) an amount equal to 25 percent of the 
                        eligible project costs, as determined by the 
                        Secretary; and
                            ``(ii) such other limit as the Secretary 
                        may establish, by rule or guidance.
    ``(d) Financial Assistance for Facilities To Convert Animal Manure 
to Energy.--
            ``(1) Definition of animal manure.--In this subsection, the 
        term `animal manure' means agricultural livestock excrement, 
        including litter, wood shavings, straw, rice hulls, bedding 
        material, and other materials incidentally collected with the 
        manure.
            ``(2) Grants and loan guarantees.--The Secretary shall make 
        grants and loan guarantees to eligible entities on a 
        competitive basis for the installation, operation, and 
        evaluation of facilities described in paragraph (4).
            ``(3) Eligible entities.--To be eligible to receive a grant 
        or loan guarantee under this subsection, an entity shall be--
                    ``(A) an agricultural producer;
                    ``(B) a rural small business;
                    ``(C) a rural cooperative; or
                    ``(D) any other similar entity, as determined by 
                the Secretary.
            ``(4) Eligible facilities.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (E), an eligible entity may receive a grant or 
                loan guarantee under this subsection for the 
                installation, first-year operation, and evaluation of 
                an on-farm or community facility (such as a digester or 
                power generator using manure for fuel) the primary 
                function of which is to convert animal manure into a 
                useful form of energy (including gaseous or liquid fuel 
                or electricity).
                    ``(B) Subsystems included.--Funds from a grant and 
                loan guarantee under subparagraph (A) may be used for 
                systems that support an on-farm or community facility 
                described in that subparagraph, which may include 
                feedstock gathering systems and gas piping systems.
                    ``(C) Conversion of renewable biomass.--An eligible 
                entity may use a grant or loan guarantee provided under 
                this subsection to convert renewable biomass other than 
                animal manure (such as waste materials from food 
                processing facilities and other green wastes) into 
                energy at a facility if the majority of materials 
                converted into energy at the facility is animal manure.
                    ``(D) Development and demonstration of new 
                technologies.--An eligible entity may use a grant or 
                loan guarantee provided under this subsection for the 
                installation, demonstration, and first 2 years of 
                operation of an on-farm or community facility that uses 
                manure-to-energy technologies--
                            ``(i) that are not in commercial use, as 
                        determined by the Secretary; and
                            ``(ii) for which sufficient research has 
                        been conducted for the Secretary to determine 
                        that the technology is commercially viable.
            ``(5) Selection of eligible entities.--In selecting 
        applications for grants and loan guarantees under this 
        subsection, the Secretary shall consider--
                    ``(A) the quality of energy produced; and
                    ``(B) the projected net energy conversion 
                efficiency, which shall be equal to the quotient 
                obtained by dividing--
                            ``(i) the energy output of the eligible 
                        facility; by
                            ``(ii) the sum of--
                                    ``(I) the energy content of animal 
                                manure at the point of collection; and
                                    ``(II) the energy consumed in 
                                facility operations, including 
                                feedstock transportation;
                    ``(C) environmental issues, including potential 
                positive and negative impacts on water quality, air 
                quality, odor emissions, pathogens, and soil quality 
                resulting from--
                            ``(i) the use and conversion of animal 
                        manure into energy;
                            ``(ii) the installation and operation of 
                        the facility; and
                            ``(iii) the disposal of any waste products 
                        (including effluent) from the facility;
                    ``(D) the net impact of the facility and any waste 
                from the facility on greenhouse gas emissions, based on 
                the estimated emissions from manure storage systems in 
                use before the installation of the manure-to-energy 
                facility;
                    ``(E) diversity factors, including diversity of--
                            ``(i) sizes of projects supported; and
                            ``(ii) geographic locations; and
                    ``(F) the proposed project costs and levels of 
                grants or loan guarantees requested.
            ``(6) Amount.--
                    ``(A) Grants.--
                            ``(i) Smaller projects.--In the case of a 
                        project with a total eligible cost (as 
                        described in paragraph (4)) of not more than 
                        $500,000, the amount of a grant made under this 
                        subsection shall not exceed 50 percent of the 
                        total eligible cost.
                            ``(ii) Larger projects.--In the case of a 
                        project with a total eligible cost (as 
                        described in paragraph (4)) of more than 
                        $500,000, the amount of a grant made under this 
                        subsection shall not exceed the greater of--
                                    ``(I) $250,000; or
                                    ``(II) 25 percent of the total 
                                eligible cost.
                            ``(iii) Maximum.--In no case shall the 
                        amount of a grant made under this section 
                        exceed $2,000,000.
                    ``(B) Loan guarantees.--The principal amount and 
                interest of a loan guaranteed under this subsection may 
                not exceed the lesser of--
                            ``(i) 80 percent of the difference 
                        between--
                                    ``(I) the total cost to install and 
                                operate the eligible facility for the 
                                first year, as determined by the 
                                Secretary; and
                                    ``(II) the amount of any Federal, 
                                State, and local funds received to 
                                support the eligible facility; and
                            ``(ii) $25,000,000.
            ``(7) Prohibition.--A grant or loan guarantee may not be 
        provided for a project under this subsection that also receives 
        assistance under subsection (b) or (c).
    ``(e) Role of State Rural Development Director.--
            ``(1) Outreach and availability of information.--
                    ``(A) Outreach.--A State rural development 
                director, acting through local rural development 
                offices, shall provide outreach regarding the 
                availability of financial assistance under this 
                section.
                    ``(B) Availability of information.--A State rural 
                development director shall make available information 
                relating to the availability of financial assistance 
                under this section at all local rural development, Farm 
                Service Agency, and Natural Resources Conservation 
                Service offices.
            ``(2) Application review.--Applications for assistance 
        under this section shall be reviewed by the appropriate State 
        rural development director.
    ``(f) Small Projects.--
            ``(1) Application and review process.--The Secretary shall 
        develop a streamlined application and expedited review process 
        for project applicants seeking less than $20,000 under this 
        section.
            ``(2) Percentage of funds.--Not less than 20 percent of the 
        funds made available under subsection (k)(1) shall be made 
        available to make grants under this section in an amount of 
        less than $20,000.
    ``(g) Preference.--In selecting projects to receive grants under 
this section, the Secretary shall give preference to projects that 
receive or will receive financial support from the State in which the 
project is carried out.
    ``(h) Rural Energy Star.--The Secretary, in coordination with the 
Administrator and the Secretary of Energy, shall extend the Energy Star 
program established by section 324A of the Energy Policy and 
Conservation Act (42 U.S.C. 6294a) to include a Rural Energy Star 
component to promote the development and use of energy-efficient 
equipment and facilities in the agricultural sector.
    ``(i) Reports.--Not later than 4 years after the date of enactment 
of the Food and Energy Security Act of 2007, the Secretary shall submit 
to Congress a report on the implementation of this section, including 
the outcomes achieved by projects funded under this section.
    ``(j) Funding.--
            ``(1) Commodity credit corporation.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall make 
        available $230,000,000 to carry out subsections (b), (c), and 
        (d) for fiscal year 2008, to remain available until expended, 
        of which--
                    ``(A) not less than 5 percent shall be used to 
                carry out subsection (b); and
                    ``(B) not less than 15 percent shall be used to 
                carry out subsection (d).
            ``(2) Authorization of appropriations.--In addition to any 
        other funds made available to carry out this section, 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. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

    ``(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; and
                    ``(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).
            ``(4) National laboratory.--The term `National Laboratory' 
        has the meaning given that term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            ``(5) Point of contact.--The term `point of contact' means 
        a point of contact designated under this section.
    ``(b) Cooperation and Coordination in Biomass Research and 
Development.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy shall cooperate with respect to, and 
        coordinate, policies and procedures that promote research and 
        development leading to the production of biofuels and biobased 
        products.
            ``(2) Points of contact.--
                    ``(A) In general.--To coordinate research and 
                development programs and activities relating to 
                biofuels and biobased products that are carried out by 
                their respective departments--
                            ``(i) 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
                            ``(ii) 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.
                    ``(B) Duties.--The points of contact shall 
                jointly--
                            ``(i) assist in arranging interlaboratory 
                        and site-specific supplemental agreements for 
                        research and development projects relating to 
                        biofuels and biobased products;
                            ``(ii) serve as cochairpersons of the 
                        Board;
                            ``(iii) administer the Initiative; and
                            ``(iv) respond in writing to each 
                        recommendation of the Advisory Committee made 
                        under subsection (d).
    ``(c) Biomass Research and Development Board.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Board, which shall supersede the 
        Interagency Council on Biobased Products and Bioenergy 
        established by Executive Order No. 13134 (7 U.S.C. 8101 note), 
        to coordinate programs within and among departments and 
        agencies of the Federal Government for the purpose of promoting 
        the use of biofuels and biobased products by--
                    ``(A) maximizing the benefits deriving from Federal 
                grants and assistance; and
                    ``(B) bringing coherence to Federal strategic 
                planning.
            ``(2) Membership.--The Board shall consist of--
                    ``(A) the point of contact of the Department of 
                Energy designated under subsection (b)(2)(A)(ii), who 
                shall serve as cochairperson of the Board;
                    ``(B) the point of contact of the Department of 
                Agriculture designated under subsection (b)(2)(A)(i), 
                who shall serve as cochairperson of the Board;
                    ``(C) 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--
                            ``(i) be appointed by the head of the 
                        respective agency; and
                            ``(ii) have a rank that is equivalent to 
                        the rank of the points of contact; and
                    ``(D) at the option of the Secretary of Agriculture 
                and the Secretary of Energy, other members appointed by 
                the Secretaries (after consultation with the members 
                described in subparagraphs (A) through (C)).
            ``(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 to 
        enable the Board to carry out the duties of the Board under 
        paragraph (3).
    ``(d) Biomass Research and Development Technical Advisory 
Committee.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Technical Advisory Committee, which 
        shall supersede the Advisory Committee on Biobased Products and 
        Bioenergy established by Executive Order No. 13134 (7 U.S.C. 
        8101 note)--
                    ``(A) to advise the Secretary of Energy, the 
                Secretary of Agriculture, and the points of contact 
                concerning--
                            ``(i) the distribution of funding;
                            ``(ii) the technical focus and direction of 
                        requests for proposals issued under the 
                        Initiative; and
                            ``(iii) procedures for reviewing and 
                        evaluating the proposals;
                    ``(B) to facilitate consultations and partnerships 
                among Federal and State agencies, agricultural 
                producers, industry, consumers, the research community, 
                and other interested groups to carry out program 
                activities relating to the Initiative; and
                    ``(C) to evaluate and perform strategic planning on 
                program activities relating to the Initiative.
            ``(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 an 
                        environmental or conservation organization;
                            ``(vii) an individual associated with State 
                        government who has expertise in biofuels and 
                        biobased products;
                            ``(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 whether, and make recommendations in 
                writing to the Board to ensure that--
                            ``(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 and that 
                        objectives and evaluation criteria of the 
                        solicitations are clearly stated and minimally 
                        prescriptive, with no areas of special 
                        interest;
                            ``(iii) 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
                            ``(iv) activities under this section are 
                        carried out in accordance with this section.
            ``(4) Coordination.--To avoid duplication of effort, the 
        Advisory Committee shall coordinate the activities of the 
        Advisory Committee with activities of other Federal advisory 
        committees working in related areas.
            ``(5) Meetings.--The Advisory Committee shall meet at least 
        quarterly to enable the Advisory Committee to carry out the 
        duties of the Advisory Committee.
            ``(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, biofuels and biobased products, and the 
        methods, practices, and technologies, for the production of the 
        fuels and product.
            ``(2) Objectives.--The objectives of the Initiative are to 
        develop--
                    ``(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 bioenergy;
                            ``(ii) 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 sustainable domestic sources 
                of renewable biomass for conversion to biofuels, 
                bioenergy, and biobased products.
            ``(3) Purposes.--The purposes of the Initiative are--
                    ``(A) to increase the energy security of the United 
                States;
                    ``(B) to create jobs and enhance the economic 
                development of the rural economy;
                    ``(C) to enhance the environment and public health; 
                and
                    ``(D) to diversify markets for raw agricultural and 
                forestry products.
            ``(4) Technical areas.--To advance the objectives and 
        purposes of the Initiative, 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 research, 
        development, and demonstration toward--
                    ``(A) feedstocks and feedstock systems relevant to 
                production of raw materials for conversion to biofuels 
                and biobased products, including--
                            ``(i) development of advanced and dedicated 
                        crops with desired features, including enhanced 
                        productivity, broader site range, low 
                        requirements for chemical inputs, and enhanced 
                        processing;
                            ``(ii) advanced crop production methods to 
                        achieve the features described in clause (i) 
                        and suitable assay techniques for those 
                        features;
                            ``(iii) feedstock harvest, handling, 
                        transport, and storage;
                            ``(iv) strategies for integrating feedstock 
                        production into existing managed land; and
                            ``(v) improving the value and quality of 
                        coproducts, including material used for animal 
                        feeding;
                    ``(B) development of cost-effective technologies 
                for the use of cellulosic biomass in the production of 
                biofuels and biobased products, including--
                            ``(i) pretreatment in combination with 
                        enzymatic or microbial hydrolysis;
                            ``(ii) thermochemical approaches, including 
                        gasification and pyrolysis; and
                            ``(iii) self-processing crops that express 
                        enzymes capable of degrading cellulosic 
                        biomass;
                    ``(C) product diversification through technologies 
                relevant to production of a range of biobased products 
                (including chemicals, animal feeds, and cogenerated 
                power) that eventually can increase the feasibility of 
                fuel production in a biorefinery, including--
                            ``(i) catalytic processing, including 
                        thermochemical fuel production;
                            ``(ii) metabolic engineering, enzyme 
                        engineering, and fermentation systems for 
                        biological production of desired products, 
                        coproducts, or cogeneration of power;
                            ``(iii) product recovery;
                            ``(iv) power production technologies, 
                        including distributed generation;
                            ``(v) integration into existing renewable 
                        biomass processing facilities, including starch 
                        ethanol plants, sugar processing or refining 
                        plants, paper mills, and power plants;
                            ``(vi) enhancement of products and 
                        coproducts, including dried distillers grains; 
                        and
                            ``(vii) technologies that allow for cost-
                        effective harvest, handling, transport, and 
                        storage; and
                    ``(D) analysis that provides strategic guidance for 
                the application of renewable biomass technologies in 
                accordance with realization of improved sustainability 
                and environmental quality, cost effectiveness, 
                security, and rural economic development, usually 
                featuring system-wide approaches, including the 
                harvest, handling, transport, and storage of renewable 
                biomass.
            ``(5) Additional considerations.--Within the technical 
        areas described in paragraph (4), and in addition to advancing 
        the purposes described in paragraph (3) and the objectives 
        described in paragraph (2), 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, such as 
                improvements in dried distillers grains and other 
                biofuel production coproducts for use as bridge 
                feedstocks;
                    ``(B) to maximize the environmental, economic, and 
                social benefits of production of biofuels and biobased 
                products on a large scale through life-cycle economic 
                and environmental analysis and other means; and
                    ``(C) to assess the potential of Federal land and 
                land management programs as feedstock resources for 
                biofuels and biobased products, consistent with the 
                integrity of soil and water resources and with other 
                environmental considerations.
            ``(6) Eligible entities.--To be eligible for a grant, 
        contract, or assistance under this subsection, 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).
            ``(7) 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 
                        competitively, on the basis of merit, after the 
                        establishment of procedures that provide for 
                        scientific peer review by an independent panel 
                        of scientific and technical peers;
                            ``(iii) give partial preference 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 not less than 15 
                        percent of funds made available to carry out 
                        this section is used for research and 
                        development relating to each of the technical 
                        areas described in paragraph (4).
                    ``(B) Matching funds.--
                            ``(i) In general.--The non-Federal share of 
                        the cost of a demonstration project under this 
                        section shall be not less than 20 percent.
                            ``(ii) Commercial applications.--The non-
                        Federal share of the cost of a commercial 
                        application project under this section shall be 
                        not less than 50 percent.
                    ``(C) Technology and information transfer to 
                agricultural users.--The Administrator of the National 
                Institute of Food and Agriculture and the Chief of the 
                Natural Resources Conservation Service shall ensure 
                that applicable research results and technologies from 
                the Initiative are--
                            ``(i) adapted, made available, and 
                        disseminated through those services, as 
                        appropriate; and
                            ``(ii) included in the best practices 
                        database established under section 220 of the 
                        Department of Agriculture Reorganization Act of 
                        1994 (7 U.S.C. 6920).
    ``(f) Administrative Support and Funds.--
            ``(1) In general.--To the extent administrative support and 
        funds are not provided by other agencies under paragraph (2), 
        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)(C), and the other members of the Board 
        appointed under subsection (c)(2)(D), may, and 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.--
            ``(1) Annual 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--
                    ``(A) 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--
                            ``(i) is consistent with the objectives, 
                        purposes, and additional considerations 
                        described in paragraphs (2) through (5) of 
                        subsection (e);
                            ``(ii) uses the set of criteria established 
                        in the initial report submitted under title III 
                        of the Agricultural Risk Protection Act of 2000 
                        (7 U.S.C. 7624 note; Public Law 106-224) (as in 
                        effect on the date before the date of enactment 
                        of the Food and Energy Security Act of 2007); 
                        and
                            ``(iii) takes into account any 
                        recommendations that have been made by the 
                        Advisory Committee;
                    ``(B) the general status of cooperation and 
                research and development efforts carried out at each 
                agency with respect to biofuels and biobased products, 
                including a report from the Advisory Committee on 
                whether the points of contact are funding proposals 
                that are selected under subsection (d)(3)(B)(iii); and
                    ``(C) 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.
            ``(2) Updates.--The Secretary of Agriculture and the 
        Secretary of Energy shall update the Vision and Roadmap 
        documents prepared for Federal biomass research and development 
        activities.
    ``(h) Funding.--
            ``(1) Commodity credit corporation funds.--Of the funds of 
        the Commodity Credit Corporation, the Secretary of Agriculture, 
        to the maximum extent practicable, shall use to carry out this 
        section, to remain available until expended--
                    ``(A) $15,000,000 for fiscal year 2008;
                    ``(B) $25,000,000 for fiscal year 2009; and
                    ``(C) $35,000,000 for fiscal year 2010.
            ``(2) Additional funding.--In addition to amounts described 
        in paragraph (1), there is authorized to be appropriated to 
        carry out this section $85,000,000 for each of fiscal years 
        2008 through 2012.

``SEC. 9009. SUN GRANT PROGRAM.

    ``(a) Purposes.--The purposes of the programs established under 
this section are--
            ``(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 between the Department of Agriculture, the 
        Department of Energy, and the land-grant colleges and 
        universities.
    ``(b) Definition of Land-Grant Colleges and Universities.--The term 
`land-grant colleges and universities' means--
            ``(1) 1862 Institutions (as defined in section 2 of the 
        Agricultural Research, Extension, and Education Reform Act of 
        1998 (7 U.S.C. 7601));
            ``(2) 1890 Institutions (as defined in section 2 of that 
        Act) and West Virginia State College; and
            ``(3) 1994 Institutions (as defined in section 2 of that 
        Act).
    ``(c) Establishment.--To carry out the purposes described in 
subsection (a), the Secretary shall provide grants to sun grant centers 
specified in subsection (d).
    ``(d) Grants to Centers.--The Secretary shall use amounts made 
available for a fiscal year under subsection (j) to provide a grants in 
equal amounts to each of the following sun grant centers:
            ``(1) 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.
            ``(2) Southeastern center.--A southeastern sun grant center 
        at the University of Tennessee at Knoxville for the region 
        composed of--
                    ``(A) the States of Alabama, Florida, Georgia, 
                Kentucky, Mississippi, North Carolina, South Carolina, 
                Tennessee, and Virginia;
                    ``(B) the Commonwealth of Puerto Rico; and
                    ``(C) the United States Virgin Islands.
            ``(3) 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.
            ``(4) Western center.--A western sun grant center at Oregon 
        State University for the region composed of--
                    ``(A) the States of Alaska, Arizona, California, 
                Hawaii, Idaho, Nevada, Oregon, Utah, and Washington; 
                and
                    ``(B) territories and possessions of the United 
                States (other than the territories referred to in 
                subparagraphs (B) and (C) of paragraph (2)).
            ``(5) 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.
            ``(6) Western insular pacific subcenter.--A western insular 
        Pacific subcenter at the University of Hawaii for the region 
        composed of the State of Alaska, the State of 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.
    ``(e) Use of Funds.--
            ``(1) Centers of excellence.--Of the amount of funds that 
        are made available for a fiscal year to a sun grant center 
        under subsection (d), the center shall use not more than 25 
        percent of the amount to support excellence in science, 
        engineering, and economics at the center to promote the 
        purposes described in subsection (a) through the State 
        agricultural experiment station, cooperative extension 
        services, and relevant educational programs of the university.
            ``(2) Grants to land-grant colleges and universities.--
                    ``(A) In general.--The sun grant center established 
                for a region shall use the funds that remain available 
                for a fiscal year after expenditures made under 
                paragraph (1) to provide competitive grants to land-
                grant colleges and universities in the region of the 
                sun grant center to conduct, consistent with the 
                purposes described in subsection (a), multi-
                institutional and multistate--
                            ``(i) research, extension, and educational 
                        programs on technology development; and
                            ``(ii) integrated research, extension, and 
                        educational programs on technology 
                        implementation.
                    ``(B) Programs.--Of the amount of funds that are 
                used to provide grants for a fiscal year under 
                subparagraph (A), the center shall use--
                            ``(i) not less than 30 percent of the funds 
                        to carry out programs described in subparagraph 
                        (A)(i); and
                            ``(ii) not less than 30 percent of the 
                        funds to carry out programs described in 
                        subparagraph (A)(ii).
            ``(3) Indirect costs.--A sun grant center may not recover 
        the indirect costs of making grants under paragraph (2) to 
        other land-grant colleges and universities.
    ``(f) Plan.--
            ``(1) In general.--Subject to the availability of funds 
        under subsection (j), in cooperation with other land-grant 
        colleges and universities and private industry in accordance 
        with paragraph (2), the sun grant centers shall jointly develop 
        and submit to the Secretary, for approval, a plan for 
        addressing at the State and regional levels the bioenergy, 
        biomass, and gasification research priorities of the Department 
        of Agriculture and the Department of Energy for the making of 
        grants under paragraphs (1) and (2) of subsection (e).
            ``(2) Gasification coordination.--
                    ``(A) In general.--In developing the plan under 
                paragraph (1) with respect to gasification research, 
                the sun grant centers identified in paragraphs (1) and 
                (2) of subsection (d) shall coordinate with land grant 
                colleges and universities in their respective regions 
                that have ongoing research activities with respect to 
                the research.
                    ``(B) Funding.--Funds made available under 
                subsection (d) to the sun grant center identified in 
                subsection (e)(2) shall be available to carry out 
                planning coordination under paragraph (1) of this 
                subsection.
    ``(g) Grants to Other Land-Grant Colleges and Universities.--
            ``(1) Priority for grants.--In making grants under 
        subsection (e)(2), a sun grant center shall give a higher 
        priority to programs that are consistent with the plan approved 
        by the Secretary under subsection (f).
            ``(2) Term of grants.--The term of a grant provided by a 
        sun grant center under subsection (e)(2) shall not exceed 5 
        years.
    ``(h) Grant Information Analysis Center.--The sun grant centers 
shall maintain a Sun Grant Information Analysis Center at the sun grant 
center specified in subsection (d)(1) to provide sun grant centers 
analysis and data management support.
    ``(i) Annual Reports.--Not later than 90 days after the end of a 
year for which a sun grant center receives a grant under subsection 
(d), the sun grant center shall submit to the Secretary a report that 
describes the policies, priorities, and operations of the program 
carried out by the center during the year, including a description of 
progress made in facilitating the priorities described in subsection 
(f).
    ``(j) Funding.--
            ``(1) Commodity credit corporation.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use to carry 
        out this section, to remain available until expended--
                    ``(A) $5,000,000 for fiscal year 2008;
                    ``(B) $10,000,000 for fiscal year 2009; and
                    ``(C) $10,000,000 for fiscal year 2010.
            ``(2) Authorization of appropriations.--
                    ``(A) In general.--In addition to any other funds 
                made available to carry out this section, there is 
                authorized to be appropriated to carry out this section 
                $70,000,000 for each of fiscal years 2008 through 2012.
                    ``(B) Grant information analysis center.--Of 
                amounts made available under subparagraph (A), not more 
                than $4,000,000 for each fiscal year shall be made 
                available to carry out subsection (h).

``SEC. 9010. REGIONAL BIOMASS CROP EXPERIMENTS.

    ``(a) Purpose.--The purpose of this section is to initiate multi-
region side-by-side crop experiments to provide a sound knowledge base 
on all aspects of the production of biomass energy crops, including 
crop species, nutrient requirements, management practices, 
environmental impacts, greenhouse gas implications, and economics.
    ``(b) Crop Experiments.--
            ``(1) In general.--The Secretary, in consultation with the 
        Board, based on the recommendations of the Advisory Committee, 
        shall award 10 competitive grants to land-grant 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)) to establish regional biomass crop 
        research experiments (including experiments involving annuals, 
        perennials, and woody biomass species).
            ``(2) Selection of grant recipients.--Grant recipients 
        shall be selected on the basis of applications submitted in 
        accordance with guidelines issued by the Secretary.
            ``(3) Selection criteria.--In selecting grant recipients, 
        the Secretary shall consider--
                    ``(A) the capabilities and experience of the 
                applicant, including--
                            ``(i) in conducting side-by-side crop 
                        experiments;
                            ``(ii) engineering and research knowledge 
                        and experience relating to biofuels or the 
                        production of inputs for biofuel production; 
                        and
                            ``(iii) demonstrated willingness to 
                        contribute significant in-kind resources;
                    ``(B) the range of species types and cropping 
                practices proposed for study;
                    ``(C) the quality of the proposed crop experiment 
                plan;
                    ``(D) the commitment of the applicant of adequate 
                acreage and necessary resources for, and continued 
                participation in, the crop experiments;
                    ``(E) the need for regional diversity among the 10 
                institutions selected; and
                    ``(F) such other factors as the Secretary may 
                determine.
    ``(c) Grants.--The Secretary shall make a grant to each land-grant 
college or university selected under subsection (b) in the amount of--
            ``(1) $1,000,000 for fiscal year 2008;
            ``(2) $2,000,000 for fiscal year 2009; and
            ``(3) $1,000,000 for fiscal year 2010.
    ``(d) Coordination.--The Secretary shall coordinate with 
participants under this section--
            ``(1) to provide coordination regarding biomass crop 
        research approaches; and
            ``(2) to ensure coordination between biomass crop research 
        activities carried out by land-grant colleges and universities 
        under this section and by sun grant centers under section 9009.
    ``(e) Funding.--
            ``(1) Commodity credit corporation.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use to carry 
        out this section, to remain available until expended--
                    ``(A) $10,000,000 for fiscal year 2008;
                    ``(B) $20,000,000 for fiscal year 2009; and
                    ``(C) $10,000,000 for fiscal year 2010.
            ``(2) Authorization of appropriations.--In addition to any 
        other funds made available to carry out this section, there are 
        authorized to be appropriated such sums are necessary to carry 
        out this section for each of fiscal years 2008 through 2012.

``SEC. 9011. NEW CENTURY FARM PROJECT.

    ``There is authorized to be appropriated to the Secretary to 
support the development and operation of an integrated and sustainable 
biomass, feedstock, and biofuels production system to serve as a model 
for a new century farm $15,000,000 for the period of fiscal years 2008 
through 2012, to remain available until expended.

``SEC. 9012. BIOCHAR RESEARCH, DEVELOPMENT, AND DEMONSTRATION.

    ``(a) Purpose.--The purpose of this section is to support research, 
development, and demonstration of biochar as a coproduct of bioenergy 
production, as a soil enhancement practice, and as a carbon management 
strategy.
    ``(b) Definition of Biochar.--In this section, the term `biochar' 
means charcoal or biomass-derived black carbon that is added to soil to 
improve soil fertility, nutrient retention, and carbon content.
    ``(c) Grants.--The Secretary shall award competitive grants to 
eligible entities to support biochar research, development, and 
demonstration projects on multiple scales, including laboratory biochar 
research and field trials, and biochar systems on a single farm scale, 
local community scale, and agricultural cooperative scale.
    ``(d) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be an eligible entity described in 
section 9005(d).
    ``(e) Areas of Biochar Research, Development, and Demonstration.--
In carrying out this section, the Secretary shall solicit proposals for 
activities that include--
            ``(1) the installation and use of biochar production 
        systems, including pyrolysis and thermocombustion systems, and 
        the integration of biochar production with bioenergy and 
        bioproducts production;
            ``(2) the study of agronomic effects of biochar usage in 
        soils, including plant growth and yield effects for different 
        application rates and soil types, and implications for water 
        and fertilizer needs;
            ``(3) biochar characterization, including analysis of 
        physical properties, chemical structure, product consistency 
        and quality, and the impacts of those properties on the soil-
        conditioning effects of biochar in different soil types;
            ``(4) the study of effects of the use of biochar on the 
        carbon content of soils, with an emphasis on the potential for 
        biochar applications to sequester carbon;
            ``(5) the study of effects of biochar on greenhouse gas 
        emissions relating to crop production, including nitrous oxide 
        and carbon dioxide emissions from cropland;
            ``(6) the study of the integration of renewable energy and 
        bioenergy production with biochar production;
            ``(7) the study of the economics of biochar production and 
        use, including considerations of feedstock competition, 
        synergies of coproduction with bioenergy, the value of soil 
        enhancements, and the value of soil carbon sequestration; and
            ``(8) such other topics as are identified by the Secretary.
    ``(f) Funding.--There is authorized to be appropriated to carry out 
this section $3,000,000 for each of fiscal years 2008 through 2012.

``SEC. 9013. RENEWABLE WOODY BIOMASS FOR ENERGY.

    ``(a) In General.--The Secretary, acting through the Chief of the 
Forest Service (referred to in this section as the `Secretary'), shall 
conduct a competitive research, technology development, and technology 
application program to encourage the use of renewable woody biomass for 
energy.
    ``(b) Eligible Entities.--Entities eligible to compete under the 
program shall include--
            ``(1) the Forest Service (through Research and 
        Development);
            ``(2) other Federal agencies;
            ``(3) State and local governments;
            ``(4) federally recognized Indian tribes;
            ``(5) colleges and universities; and
            ``(6) private entities.
    ``(c) Priority for Project Selection.--The Secretary shall give 
priority under the program to projects that--
            ``(1) develop technology and techniques to use low-value 
        woody biomass sources, 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 woody biomass into biorefineries or other existing 
        manufacturing streams;
            ``(3) develop new transportation fuels from woody 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 $5,000,000 for each of fiscal 
years 2008 through 2012.

``SEC. 9014. COMMUNITY WOOD ENERGY PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Community wood energy plan.--The term `community wood 
        energy plan' means a plan that identifies how local forests can 
        be accessed in a sustainable manner to help meet the wood 
        supply needs of 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) services 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)--
                            ``(i) to conduct feasibility studies 
                        related to community wood energy plans; and
                            ``(ii) to develop community wood energy 
                        plans; and
                    ``(B) competitive grants to State and local 
                governments--
                            ``(i) to acquire or upgrade community wood 
                        energy systems for public buildings; and
                            ``(ii) to implement a community wood energy 
                        plan.
            ``(2) Considerations.--In selecting applicants for grants 
        under paragraph (1)(B), the Secretary shall consider--
                    ``(A) the energy efficiency of the proposed system; 
                and
                    ``(B) other conservation and environmental criteria 
                that the Secretary considers appropriate.
    ``(c) Community Wood Energy Plan.--
            ``(1) In general.--A State or local government that 
        receives a grant under subsection (b)(1)(A), shall use the 
        grant, and the technical assistance of the State forester, to 
        create a community wood energy plan to meet the wood supply 
        needs of the community wood energy system, in a sustainable 
        manner, that the State or local government proposes to purchase 
        under this section.
            ``(2) Use of plan.--A State or local government applying to 
        receive a competitive grant described in subsection (b)(1)(B) 
        shall submit to the Secretary as part of the grant application 
        the applicable community wood energy plan described in 
        paragraph (1).
            ``(3) Requirement.--To be included in a community wood 
        energy plan, property shall be subject to a forest management 
        plan.
    ``(d) Use in Public Buildings.--A State or local government that 
receives a grant under subsection (b)(1)(B) shall use a community wood 
energy system acquired, in whole or in part, with the use of the grant 
funds for primary use in a public facility owned by the State or local 
government.
    ``(e) 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.
    ``(f) Matching Funds.--A State or local government that receives a 
grant under subsection (b) shall contribute an amount of non-Federal 
funds towards the feasibility study, 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.
    ``(g) 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. 9015. RURAL ENERGY SYSTEMS RENEWAL.

    ``(a) Purpose.--The purpose of this section is to establish a 
Federal program--
            ``(1) to encourage communities in rural areas of the United 
        States to establish energy systems renewal strategies for their 
        communities;
            ``(2) to provide the information, analysis assistance, and 
        guidance that the communities need; and
            ``(3) to provide financial resources to partially fund the 
        costs of carrying out community energy systems renewal 
        projects.
    ``(b) Program Authority.--The Secretary shall establish and carry 
out a program of competitive grants to support communities in rural 
areas in carrying out rural energy systems renewal projects.
    ``(c) Use of Grants.--A community may use a grant provided under 
this section to carry out a project--
            ``(1) to conduct an energy assessment that assesses total 
        energy usage by all members and activities of the community, 
        including an assessment of--
                    ``(A) energy used in community facilities, 
                including energy for heating, cooling, lighting, and 
                all other building and facility uses;
                    ``(B) energy used in transportation by community 
                members;
                    ``(C) current sources and types of energy used;
                    ``(D) energy embedded in other materials and 
                products;
                    ``(E) the major impacts of the energy usage 
                (including the impact on the quantity of oil imported, 
                total costs, the environment, and greenhouse gas 
                emissions); and
                    ``(F) such other activities as are determined 
                appropriate by the community, consistent with the 
                purposes described in subsection (a);
            ``(2) to formulate and analyze ideas for reducing 
        conventional energy usage and greenhouse gas emissions by the 
        community, including reduction of energy usage through--
                    ``(A) housing insulation, automatic controls on 
                lighting and electronics, zone energy usage, and home 
                energy conservation practices;
                    ``(B) transportation alternatives, vehicle options, 
                transit options, transportation conservation, and walk- 
                and bike-to-school programs;
                    ``(C) community configuration alternatives to 
                provide pedestrian access to regular services; and
                    ``(D) community options for alternative energy 
                systems (including alternative fuels, photovoltaic 
                electricity, wind energy, geothermal heat pump systems, 
                and combined heat and power);
            ``(3) to formulate and implement community strategies for 
        reducing conventional energy usage and greenhouse gas emissions 
        by the community;
            ``(4) to conduct assessments and to track and record the 
        results of energy system changes; and
            ``(5) to train rural community energy professionals to 
        provide expert support to community energy systems renewal 
        projects.
    ``(d) Federal Share.--The Federal cost of carrying out a project 
under this section shall be 50 percent of the total cost of the 
project.
    ``(e) Administration.--The Secretary shall--
            ``(1) issue, an annual basis, requests for proposals from 
        communities in rural areas for energy systems renewal projects; 
        and
            ``(2) in consultation with the Secretary of Energy and the 
        Secretary of Transportation, as appropriate, establish criteria 
        for program participation and evaluation of projects carried 
        out under this section, including criteria based on--
                    ``(A) the quality of the renewal projects proposed;
                    ``(B) the probability of success of the community 
                in meeting the energy systems renewal goals of the 
                community;
                    ``(C) the projected energy savings (including oil 
                savings) resulting from the proposed projects; and
                    ``(D) projected greenhouse gas emission reductions 
                resulting from the proposed projects.
    ``(f) Technical Assistance.--The Secretary, in consultation with 
the Secretary of Energy and the Secretary of Transportation, shall--
            ``(1) develop, and provide through the National Institute 
        of Food and Agriculture or State Energy Offices, information 
        and tools that communities in rural areas can use--
                    ``(A) to assess the current energy systems of the 
                communities, including sources, uses, and impacts;
                    ``(B) to identify and evaluate options for changes;
                    ``(C) to develop strategies and plans for changes; 
                and
                    ``(D) to implement changes and assess the impact of 
                the changes; and
            ``(2) provide technical assistance and support to 
        communities in rural areas that receive grants under this 
        section to assist the communities in carrying out projects 
        under this section.
    ``(g) Report.--Not later than December 31, 2011, and biennially 
thereafter, the Secretary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry, the Committee on Commerce, Science, and 
Transportation, and the Committee on Energy and Natural Resources of 
the Senate a report that documents the best practices and approaches 
used by communities in rural areas that receive funds under this 
section.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to make grants under this section 
$5,000,000 for each of fiscal years 2008 through 2012.

``SEC. 9016. VOLUNTARY RENEWABLE BIOMASS CERTIFICATION PROGRAM.

    ``(a) Establishment.--The Secretary, in consultation with 
Administrator, shall establish a voluntary program to certify renewable 
biomass that meets sustainable growing standards designed--
            ``(1) to reduce greenhouse gases and improve soil carbon 
        content;
            ``(2) to protect wildlife habitat, and
            ``(3) to protect air, soil, and water quality.
    ``(b) Voluntary Certification Requirements.--To qualify for 
certification under the program established under subsection (a), a 
biomass crop shall be inspected and certified as meeting the standards 
adopted under subsection (c) by an inspector designated under 
subsection (d).
    ``(c) Production Standards.--
            ``(1) In general.--The Secretary shall adopt standards for 
        the certification of renewable biomass under subsection (b) 
        that will apply to those producers who elect to participate in 
        the voluntary certification program.
            ``(2) Requirement.--The standards under paragraph (1) shall 
        provide measurement of a numerical reduction in greenhouse 
        gases, improvement to soil carbon content, and reduction in 
        soil and water pollutants, based on the recommendations of an 
        advisory committee jointly established by the Secretary and the 
        Administrator.
    ``(d) Inspectors.--The Secretary shall designate inspectors that 
the Secretary determines are qualified to carry out inspections and 
certifications under subsection (b) in order to certify renewable 
biomass under this section.
    ``(e) Designation.--A product produced from renewable biomass that 
is certified under this section may be designated as having been 
produced from certified renewable biomass if--
            ``(1) the producer of the product verifies that the product 
        was produced from renewable biomass; and
            ``(2) the verification includes a copy of the certification 
        obtained in accordance with subsection (b).

``SEC. 9017. ADMINISTRATION.

    ``The Secretary shall designate an entity within the Department of 
Agriculture to--
            ``(1) provide oversight and coordination of all activities 
        relating to renewable energy and biobased product development 
        within the Department;
            ``(2) act as a liaison between the Department and other 
        Federal, State, and local agencies to ensure coordination among 
        activities relating to renewable energy and biobased product 
        development;
            ``(3) assist agriculture researchers by evaluating the 
        market potential of new biobased products in the initial phase 
        of development;
            ``(4) collect and disseminate information relating to 
        renewable energy and biobased product development programs, 
        including research, within the Federal Government; and
            ``(5) establish and maintain a public database of best 
        practices to facilitate information sharing relating to--
                    ``(A) renewable energy and biobased product 
                development from programs under this title and other 
                programs; and
                    ``(B) best practices for producing, collecting, 
                harvesting, storing, and transporting crops of 
                renewable biomass, as described under section 
                9004(d)(3)(B) of the Farm Security and Rural Investment 
                Act of 2002.

``SEC. 9018. BIOFUELS INFRASTRUCTURE STUDY.

    ``(a) In General.--The Secretary, in collaboration with the 
Secretary of Energy, the Administrator, and the Secretary of 
Transportation, shall--
            ``(1) conduct an assessment of the infrastructure needs for 
        expanding the domestic production, transport, and marketing of 
        biofuels and bioenergy;
            ``(2) formulate recommendations for infrastructure 
        development needs and approaches; and
            ``(3) submit a report describing the assessment and 
        recommendations to--
                    ``(A) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate;
                    ``(B) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    ``(C) the Committee on Energy and Natural Resources 
                of the Senate; and
                    ``(D) the Committee on Environment and Public Works 
                of the Senate.
    ``(b) Infrastructure Areas.--In carrying out subsection (a), the 
Secretary shall consider--
            ``(1) biofuel transport and delivery infrastructure issues, 
        including shipment by rail, truck, pipeline, or barge;
            ``(2) biofuel storage needs;
            ``(3) biomass feedstock delivery needs, including adequacy 
        of rural roads;
            ``(4) biomass feedstock storage needs;
            ``(5) water resource needs, including water requirements 
        for biorefineries;
            ``(6) education and outreach for agricultural producers 
        transitioning to cellulosic feedstocks; and
            ``(7) such other infrastructure issues as the Secretary may 
        determine.
    ``(c) Considerations.--In carrying out subsection (a), the 
Secretary shall consider--
            ``(1) estimated future biofuels production levels of--
                    ``(A) 20,000,000,000 gallons per year to 
                40,000,000,000 gallons per year by 2020; and
                    ``(B) 50,000,000,000 gallons per year to 
                75,000,000,000 gallons per year by 2030;
            ``(2) the feasibility of shipping biofuels through existing 
        pipelines;
            ``(3) the development of new biofuels pipelines, including 
        siting, financing, timing, and other economic issues;
            ``(4) the environmental implications of alternative 
        approaches to infrastructure development;
            ``(5) the resource use and conservation characteristics of 
        alternative approaches to infrastructure development;
            ``(6) the impact on the development of renewable energy 
        when public and private utilities do not pay competitive rates 
        for wind, solar, and biogas energy from agricultural sources; 
        and
            ``(7) the environmental benefits of planting perennial 
        grasses for the production of cellulosic ethanol.
    ``(d) Implementation.--In carrying out this section, the 
Secretary--
            ``(1) shall consult with individuals and entities with 
        interest or expertise in the areas described in subsections (b) 
        and (c); and
            ``(2) may issue a solicitation for a competition to select 
        a contractor to support the Secretary.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2008 and 2009.

``SEC. 9019. RURAL NITROGEN FERTILIZER STUDY.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to assess the feasibility of producing nitrogen 
        fertilizer from renewable energy resources in rural areas; and
            ``(2) to formulate recommendations for a program to promote 
        rural nitrogen fertilizer production from renewable energy 
        resources in the future.
    ``(b) Study.--The Secretary shall--
            ``(1) conduct a study to assess and summarize the current 
        state of knowledge regarding the potential for the production 
        of nitrogen fertilizer from renewable energy sources in rural 
        areas;
            ``(2) identify the critical challenges to commercialization 
        of rural production of nitrogen fertilizer from renewables; and
            ``(3) not later than 270 days after the date of enactment 
        of this section, submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry and the Committee on Commerce, Science, 
        and Transportation of the Senate a report that summarizes the 
        results of the activities described in paragraphs (1) and (2).
    ``(c) Needs.--
            ``(1) In general.--Based on the results of the study 
        described in subsection (b), the Secretary shall identify the 
        critical needs to commercializing the rural production of 
        nitrogen fertilizer from renewables, including--
                    ``(A) identifying alternative processes for 
                renewables-to-nitrogen fertilizer production;
                    ``(B) identifying efficiency improvements that are 
                necessary for each component of renewables-to-nitrogen 
                fertilizer production processes to produce cost-
                competitive nitrogen fertilizer;
                    ``(C) identifying research and technology 
                priorities for the most promising technologies;
                    ``(D) identifying economic analyses needed to 
                better understand the commercial potential of rural 
                nitrogen production from renewables;
                    ``(E) identifying additional challenges impeding 
                commercialization, including--
                            ``(i) cost competition from nitrogen 
                        fertilizer produced using natural gas and coal;
                            ``(ii) modifications or expansion needed to 
                        the currently-installed nitrogen fertilizer 
                        (anhydrous ammonia) pipeline and storage tank 
                        system to enable interconnection of on-farm or 
                        rural renewables-to-nitrogen fertilizer 
                        systems;
                            ``(iii) impact on nitrogen fertilizer 
                        (anhydrous ammonia) transportation 
                        infrastructure, safety, and security;
                            ``(iv) supply of competitively-priced 
                        renewable electricity; and
                            ``(v) impacts on domestic water supplies; 
                        and
                    ``(F) determining greenhouse gas reduction benefits 
                of producing nitrogen fertilizer from renewable energy.
    ``(d) Program Recommendations.--As part of the report described in 
subsection (b)(3) and based on the needs identified in subsection (c), 
the Secretary shall provide recommendations on--
            ``(1) the establishment of a research, development, and 
        demonstration program to support commercialization of rural 
        nitrogen production using renewables;
            ``(2) the appropriate contents of the program;
            ``(3) the appropriate approach to implementing the program, 
        including participants and funding plans; and
            ``(4) legislation to support commercialization of rural 
        nitrogen production using renewables.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for fiscal year 2008.

``SEC. 9020. STUDY OF LIFE-CYCLE ANALYSIS OF BIOFUELS.

    ``(a) In General.--The Secretary, in consultation with the 
Secretary of Energy and the Administrator, shall conduct a study of--
            ``(1) published methods for evaluating the lifecycle 
        greenhouse gas emissions of conventional fuels and biofuels; 
        and
            ``(2) methods for performing simplified, streamlined 
        lifecycle analyses of the greenhouse gas emissions of 
        conventional fuels and biofuels.
    ``(b) Report.--Not later than 1 year 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 the results of the study conducted under subsection (a), 
including recommendations for a method for performing a simplified, 
streamlined lifecycle analysis of the greenhouse gas emissions of 
biofuels and fossil fuels that includes--
            ``(1) greenhouse gas emissions relating to the production, 
        extraction, transportation, storage, and waste disposal of the 
        fuels and the feedstocks of the fuels, including the greenhouse 
        gases associated with electrical and thermal energy inputs;
            ``(2) greenhouse gas emissions relating to the 
        distribution, marketing, and use of the fuels; and
            ``(3) to the maximum extent practicable, direct and 
        indirect greenhouse gas emissions from changes in land use and 
        land cover that occur domestically or internationally as a 
        result of biofuel feedstock production.
    ``(c) Update.--Not later than 2 years after the date on which the 
Secretary submits the report under subsection (b), 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 update containing recommendations for an improved method for 
conducting lifecycle analysis of the greenhouse gas emissions of 
biofuels and fossil fuels that takes into account advances in the 
understanding of the emissions.

``SEC. 9021. E-85 FUEL PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) E-85 fuel.--The term `E-85 fuel' means a blend of 
        gasoline at least 85 percent (or any other percentage, but not 
        less than 70 percent, as determined by the Secretary, by rule, 
        to provide for requirements relating to cold start, safety, or 
        vehicle functions) of the content of which is derived from 
        ethanol.
            ``(2) Eligible facility.--The term `eligible facility' 
        means an ethanol production facility, the majority ownership of 
        which is comprised of agricultural producers.
    ``(b) Program.--The Secretary shall make grants under this section 
to eligible facilities--
            ``(1) to install E-85 fuel infrastructure, including 
        infrastructure necessary--
                    ``(A) for the direct retail sale of E-85 fuel, 
                including E-85 fuel pumps and storage tanks; and
                    ``(B) to directly market E-85 fuel to gas 
                retailers, including in-line blending equipment, pumps, 
                storage tanks, and load-out equipment; and
            ``(2) to provide subgrants to direct retailers of E-85 fuel 
        that are located in a rural area (as defined in section 343(a) 
        of the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1991(a))) for the purpose of installing E-85 fuel 
        infrastructure for the direct retail sale of E-85 fuel, 
        including E-85 fuel pumps and storage tanks.
    ``(c) Cost Sharing.--
            ``(1) Grants.--The amount of a grant under this section 
        shall be equal to 20 percent of the total costs of the 
        installation of the E-85 fuel infrastructure, as determined by 
        the Secretary.
            ``(2) Relationship to other federal funding.--The amount of 
        a grant that an eligible facility receives under this section 
        shall be reduced by the amount of other Federal funding that 
        the eligible facility receives for the same purpose, as 
        determined by the Secretary.
            ``(3) Limitation.--Not more than 70 percent of the total 
        costs of E-85 fuel infrastructure provided assistance under 
        this section shall be provided by the Federal Government and 
        State and local governments.
    ``(d) Authorization of Appropriations.--Subject to the availability 
of appropriations, there is authorized to be appropriated to carry out 
this section $20,000,000 for the period of fiscal years 2008 through 
2012, to remain available until expended.

``SEC. 9022. RESEARCH AND DEVELOPMENT OF RENEWABLE ENERGY.

    ``(a) In General.--The Secretary, in conjunction with the Colorado 
Renewable Energy Collaboratory, shall carry out a research and 
development program relating to renewable energy--
            ``(1) to conduct research on and develop high-quality 
        energy crops that--
                    ``(A) have high energy production values;
                    ``(B) are cost efficient for producers and 
                refiners;
                    ``(C) are well suited to high yields with minimal 
                inputs in arid and semiarid regions; and
                    ``(D) are regionally appropriate;
            ``(2) to conduct research on and develop biorefining and 
        biofuels through multidisciplinary research, including research 
        relating to--
                    ``(A) biochemical engineering;
                    ``(B) process engineering;
                    ``(C) thermochemical engineering;
                    ``(D) product engineering; and
                    ``(E) systems engineering;
            ``(3) to develop cost-effective methods for the harvesting, 
        handling, transport, and storage of cellulosic biomass 
        feedstocks;
            ``(4) to conduct research on and develop fertilizers from 
        biobased sources other than hydrocarbon fuels;
            ``(5) to develop energy- and water-efficient irrigation 
        systems;
            ``(6) to research and develop water-efficient biofuel 
        production technologies;
            ``(7) to research and develop additional biobased products;
            ``(8) in cooperation with the Department of Energy and the 
        Department of Defense, to develop storage and conversion 
        technologies for wind- and solar-generated power for small-
        scale and utility-scale generation facilities; and
            ``(9) in cooperation with the Department of Energy, to 
        research fuel cell technologies for use in farm, ranch, and 
        rural applications.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $5,000,000 for each of fiscal years 
        2008 through 2012, to remain available until expended.
            ``(2) Additional funds.--In addition to funds made 
        available under paragraph (1), there are authorized to be 
        appropriated--
                    ``(A) $110,000,000 to the Under Secretary for 
                Research, Education, and Economics, acting through the 
                Agricultural Research Service, for cellulosic biofuel 
                research for each of fiscal years 2008 through 2012; 
                and
                    ``(B) $110,000,000 to the Secretary and the 
                Secretary of Energy for the development of smaller-
                scale biorefineries and biofuel plants for each of 
                fiscal years 2008 through 2012.

``SEC. 9023. NORTHEAST DAIRY NUTRIENT MANAGEMENT AND ENERGY DEVELOPMENT 
              PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Consortium.--The term `consortium' means a 
        collaboration of land-grant colleges or universities in the 
        Northeast region that have programs devoted to dairy manure 
        nutrient management and energy conversion from dairy manure.
            ``(2) Land-grant colleges and universities.--The term 
        `land-grant 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)).
            ``(3) Northeast region.--The term `Northeast region' means 
        the States of Connecticut, Delaware, Massachusetts, Maryland, 
        Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode 
        Island, Vermont, and West Virginia.
            ``(4) Program.--The term `program' means the dairy nutrient 
        management and energy development program established under 
        subsection (b).
    ``(b) Establishment.--The Secretary shall establish a dairy 
nutrient management and energy development program under which the 
Secretary shall provide funds to the consortium to carry out 
multistate, integrated research, extension, and demonstration projects 
for nutrient management and energy development in the Northeast Region.
    ``(c) Steering Committee.--
            ``(1) In general.--The consortium shall establish a 
        steering committee to administer the program.
            ``(2) Chairperson.--For each calendar year, or for such 
        other period as the consortium determines to be appropriate, 
        the consortium shall select a chairperson of the steering 
        committee in a manner that ensures that each member of the 
        consortium is represented by a chairperson on a rotating basis.
            ``(3) Board.--
                    ``(A) In general.--The steering committee shall 
                establish a board of directors to assist in the 
                administration of the program.
                    ``(B) Composition.--The board shall consist of 
                representatives of--
                            ``(i) dairy cooperatives and other producer 
                        groups;
                            ``(ii) State departments of agriculture;
                            ``(iii) conservation organizations; and
                            ``(iv) other appropriate Federal and State 
                        agencies.
    ``(d) Use of Funds.--
            ``(1) Administrative costs.--The consortium may use not 
        more than 10 percent of the total amount of funds provided to 
        the consortium under this section to pay the administrative 
        costs of the program.
            ``(2) Grant program.--
                    ``(A) In general.--The consortium shall use the 
                amounts provided under this section to provide grants 
                to applicants, including dairy cooperatives, producers 
                and producer groups, State departments of agriculture 
                and other appropriate State agencies, and institutions 
                of higher education, to carry out integrated research, 
                extension, and demonstration projects in the Northeast 
                region to address manure nutrient management and energy 
                development.
                    ``(B) Applications.--The steering committee 
                established under subsection (c)(1), in coordination 
                with the board established by the steering committee, 
                shall annually publish 1 or more requests to receive 
                applications for grants under this paragraph.
                    ``(C) Selection.--
                            ``(i) In general.--The board of the 
                        steering committee shall select applications 
                        submitted under subparagraph (B) for grants 
                        under this paragraph--
                                    ``(I) on a competitive basis;
                                    ``(II) in accordance with such 
                                priority technical areas and 
                                distribution requirements as the 
                                steering committee may establish; and
                                    ``(III) in a manner that ensures, 
                                to the maximum extent practicable, that 
                                an equal quantity of resources is 
                                provided to each member of the 
                                consortium.
                            ``(ii) Review.--Before selecting any 
                        application under clause (i), the board shall 
                        ensure that the program proposed in the 
                        application is subject to a merit review by an 
                        independent panel of scientific experts with 
                        experience relating to the program.
                            ``(iii) Priority.--In selecting 
                        applications under clause (i), the board shall 
                        give priority to applications for programs 
                        that--
                                    ``(I) include multiorganizational 
                                partnerships, especially partnerships 
                                that include producers; and
                                    ``(II) attract the most current and 
                                applicable science for nutrient 
                                management and energy development that 
                                can be applied in the Northeast region.
                    ``(D) Cost sharing.--An applicant that receives a 
                grant under this paragraph shall provide not less than 
                20 percent of the cost of the project carried out by 
                the applicant.
    ``(e) Availability of Results.--The consortium shall ensure that 
the results of each project carried out pursuant to the program are 
made publicly available.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

``SEC. 9024. REPORT ON THE GROWTH POTENTIAL FOR CELLULOSIC MATERIAL.

    ``Not later than 18 months 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 comprehensive report that, on a State-by-State 
basis--
            ``(1) identifies the range of cellulosic feedstock 
        materials that can be grown and are viable candidates for 
        renewable fuel production;
            ``(2) estimates the acreage available for growing the 
        cellulosic feedstock materials identified under paragraph (1);
            ``(3) estimates the quantity of available energy per acre 
        for each cellulosic feedstock material identified under 
        paragraph (1);
            ``(4) calculates the development potential for growing 
        cellulosic feedstock materials, based on--
                    ``(A) the range of cellulosic materials available 
                for growth;
                    ``(B) soil quality;
                    ``(C) climate variables;
                    ``(D) the quality and availability of water;
                    ``(E) agriculture systems that are in place as of 
                the date of enactment of this Act;
                    ``(F) available acreage; and
                    ``(G) other relevant factors identified by the 
                Secretary; and
            ``(5) rates the development potential for growing 
        cellulosic feedstock material, with the ratings displayed on 
        maps of the United States that indicate the development 
        potential of each State, as calculated by the Secretary under 
        paragraph (4).

``SEC. 9025. FUTURE FARMSTEADS PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a program to 
equip, in each of 5 regions of the United States chosen to represent 
different farming practices, a farm house and its surrounding fields, 
facilities, and forested areas with technologies to--
            ``(1) improve farm energy production and energy use 
        efficiencies;
            ``(2) provide working examples to farmers; and
            ``(3) serve as an education, demonstration, and research 
        facility that will teach graduate students whose focus of 
        research is related to either renewable energy or energy 
        conservation technologies.
    ``(b) Goals.--The goals of the program established under subsection 
(a) shall be to--
            ``(1) advance farm energy use efficiencies and the on-farm 
        production of renewable energies, along with advanced 
        communication and control technologies with the latest in 
        energy capture and conversion techniques, thereby enhancing 
        rural energy independence and creating new revenues for rural 
        economies;
            ``(2) accelerate private sector and university research 
        into the efficient on-farm production of renewable fuels and 
        help educate the farming industry, students, and the general 
        public; and
            ``(3) accelerate energy independence, including the 
        production and the conservation of renewable energies on farms.
    ``(c) Collaboration Partners.--The program under this section shall 
be carried out in partnership with regional land grant institutions, 
agricultural commodity commissions, biofuels companies, sensor and 
controls companies, and internet technology companies.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 9002. SENSE OF THE SENATE CONCERNING HIGHER LEVELS OF ETHANOL 
              BLENDED GASOLINE.

    (a) Findings.--The Senate finds that, as of the date of enactment 
of this Act--
            (1) annual ethanol production capacity totals 6,800,000,000 
        gallons;
            (2) current and planned construction of ethanol refineries 
        will likely increase annual ethanol production capacity to 
        12,000,000,000 to 13,000,000,000 gallons by December 31, 2009;
            (3) under existing regulations, only gasoline blended with 
        up to 10 percent ethanol (commonly known as ``E-10'') may be 
        consumed by nonflexible fuel vehicles;
            (4) the total market demand for E-10--
                    (A) is limited to 10 percent of domestic motor fuel 
                consumption; and
                    (B) is further constrained by State-administered 
                reformulated gasoline regulations and regional 
                infrastructure constraints;
            (5) beyond the market demand for E-10, insufficient E-85 
        infrastructure exists to absorb the increased ethanol 
        production beyond 12,000,000,000 to 13,000,000,000 gallons in 
        the short term;
            (6) the approval of intermediate blends of ethanol-blended 
        gasoline, such as E-13, E-15, E-20, and higher blends, is 
        critical to the uninterrupted growth of the United States 
        biofuels industry; and
            (7) maintaining the growth of the United States biofuels 
        industry is a matter of national security and sustainable 
        economic growth.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Secretary should--
            (1) collaborate with the Secretary of Energy, the Secretary 
        of Transportation, and the Administrator of the Environmental 
        Protection Agency in conducting a study of the economic and 
        environmental effects of intermediate blends of ethanol in 
        United States fuel supply;
            (2) ensure that the approval of intermediate blends of 
        ethanol occurs after the appropriate tests have successfully 
        concluded proving the drivability, compatibility, emissions, 
        durability, and health effects of higher blends of ethanol-
        blended gasoline; and
            (3) ensure that the approval of intermediate blends of 
        ethanol-blended gasoline occurs by not later than 1 year after 
        the date of enactment of this Act.

SEC. 9003. CONFORMING AMENDMENTS.

    (a) Biomass Research and Development Act of 2000.--Title III of the 
Agricultural Risk Protection Act of 2000 (7 U.S.C. 7624 note; Public 
Law 106-224) is repealed.
    (b) Marketing Program for Biobased Products.--
            (1) Implementation.--
                    (A) In general.--The Secretary shall continue to 
                carry out the designation and labeling of biobased 
                products in accordance with section 9002 of the Farm 
                Security and Rural Investment Act of 2002 (7 U.S.C. 
                8102) as in effect on the day before the date of 
                enactment of this Act until the date on which the 
                Secretary is able to begin carrying out section 9002(a) 
                of that Act (as amended by section 9001), which shall 
                begin not later than 90 days after the date of 
                enactment of this Act.
                    (B) Existing listings.--Biobased products 
                designated and labeled under section 9002 of the Farm 
                Security and Rural Investment Act of 2002 (7 U.S.C. 
                8102) as in effect on the day before the date of 
                enactment of this Act shall continue to be considered 
                designated and labeled biobased products after the date 
                of enactment of this Act.
                    (C) Proposed item designations.--Notwithstanding 
                any other provision of this Act or an amendment made by 
                this Act, the Secretary shall have the authority to 
                finalize the listings of any item proposed (prior to 
                the date of enactment of this Act) to be designated in 
                accordance with section 9002 of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 8102) as in 
                effect on the day before the date of enactment of this 
                Act.
            (2) Bioenergy education and awareness campaign.--Section 
        947 of the Energy Policy Act of 2005 (42 U.S.C. 16256) is 
        repealed.

SEC. 9004. SENSE OF CONGRESS REGARDING COOPERATIVE REGIONAL RESEARCH, 
              EXTENSION, AND EDUCATION PROGRAMS ON BIOFUELS AND 
              BIOPRODUCTS.

    It is the sense of Congress that the Secretary shall continue to 
allow and support efforts of regional consortiums of public 
institutions, including land grant universities and State departments 
of agriculture, to jointly support the bioeconomy through research, 
extension, and education activities, including--
            (1) expanding the use of biomass;
            (2) improving the efficiency and sustainability of 
        bioenergy;
            (3) supporting local ownership in the bioeconomy;
            (4) communicating about the bioeconomy;
            (5) facilitating information sharing; and
            (6) assisting to coordinate regional approaches.

     TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

                         Subtitle A--Marketing

SEC. 10001. LIVESTOCK MANDATORY REPORTING.

    (a) Mandatory Reporting for Swine.--Section 232(c)(3) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1635j(c)(3)) is amended--
            (1) in subparagraph (A), by striking ``2:00 p.m.'' and 
        inserting ``3:00 p.m.''; and
            (2) in subparagraph (B), by striking ``3:00 p.m.'' and 
        inserting ``4:00 p.m.''.
    (b) Mandatory Packer Reporting of Pork Products Sales.--
            (1) In general.--Section 232 of the Agricultural Marketing 
        Act of 1946 (7 U.S.C. 1635j) is amended by adding at the end 
        the following:
    ``(f) Mandatory Packer Reporting of Pork Products Sales.--
            ``(1) In general.--Beginning not earlier than the date on 
        which the report under section 10001(b)(2)(C) of the Food and 
        Energy Security Act of 2007 is submitted, the Secretary may 
        require the corporate officers or officially designated 
        representative of each packer processing plant to report to the 
        Secretary at least twice each reporting day (not less than once 
        before, and once after, 12:00 noon Central Time) information on 
        total pork products sales, including price and volume 
        information as specified by the Secretary.
            ``(2) Publication.--The Secretary shall make available to 
        the public any information required to be reported under 
        subparagraph (A) (including information on pork cuts and 
        retail-ready pork products) not less than twice each reporting 
        day.''.
            (2) Study and report.--
                    (A) Study.--The Secretary shall conduct a study on 
                the effects of requiring packer processing plants to 
                report to the Secretary information on total pork 
                products sales (including price and volume 
                information), including--
                            (i) the positive or negative economic 
                        effects on producers and consumers; and
                            (ii) the effects of a confidentiality 
                        requirement on mandatory reporting.
                    (B) Information.--The Secretary may collect such 
                information as is necessary to enable the Secretary to 
                conduct the study required under subparagraph (A).
                    (C) 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 on the 
                results of the study conducted under subparagraph (A).
    (c) Publication of Information on Retail Purchase Prices for 
Representative Meat Products.--Section 257(a) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1636f(a)) is amended by inserting ``and 
continuing not less than each month thereafter'' after ``this 
subtitle''.

SEC. 10002. GRADING AND INSPECTION.

    (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:
    ``(n) Grading Program.--To establish, within the Agricultural 
Marketing Service, a voluntary grading program for farm-raised animals 
described in section 10806(a)(1) of the Farm Security and Rural 
Investment Act of 2002 (21 U.S.C. 321d(a)(1)).''.
    (b) Amenable Species.--Section 1(w) of the Federal Meat Inspection 
Act (21 U.S.C. 601(w)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) farm-raised animals described in section 10806(a)(1) 
        of the Farm Security and Rural Investment Act of 2002 (21 
        U.S.C. 321d(a)(1)); and''.
    (c) Existing Activities.--The Secretary shall ensure that nothing 
in an amendment made by this section duplicates, impedes, or undermines 
any of the food safety or product grading activities conducted by the 
Department of Commerce or the Food and Drug Administration, and shall 
consult with the Secretary of Commerce before implementing any new food 
safety or grading activity authorized under this section.

SEC. 10003. 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'';
                    (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; and
                            ``(ix) 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 January 1, 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 
                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.
                    ``(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, peanuts, and macadamia nuts.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is a perishable agricultural commodity, 
                peanut, 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 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 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.'';
            (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. 10004. DISCLOSURE OF COUNTRY OF HARVEST FOR GINSENG.

    (a) In General.--The Agricultural Marketing Act of 1946 (7 U.S.C. 
1621 et seq.) is amended by adding at the end the following:

                         ``Subtitle E--Ginseng

``SEC. 291. DISCLOSURE OF COUNTRY OF HARVEST.

    ``(a) Definitions.--In this section:
            ``(1) Ginseng.--The term `ginseng' means a plant classified 
        within the genus Panax.
            ``(2) Raw agricultural commodity.--The term `raw 
        agricultural commodity' has the meaning given the term in 
        section 201 of the Federal Food, Drug, and Cosmetic Act (21 
        U.S.C. 321).
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Disclosure.--
            ``(1) In general.--A person that offers ginseng for sale as 
        a raw agricultural commodity or dehydrated whole root shall 
        disclose to a potential purchaser the country of harvest of the 
        ginseng.
            ``(2) Importation.--A person that imports ginseng as a raw 
        agricultural commodity or dehydrated whole root into the United 
        States shall disclose at the point of entry into the United 
        States, in accordance with section 304 of the Tariff Act of 
        1930 (19 U.S.C. 1304), the country in which the ginseng was 
        harvested.
    ``(c) Manner of Disclosure.--
            ``(1) In general.--The disclosure required by subsection 
        (b) shall be provided to a potential purchaser by means of a 
        label, stamp, mark, placard, or other easily legible and 
        visible sign on the ginseng or on the package, display, holding 
        unit, or bin containing the ginseng.
            ``(2) Retailers.--A retailer of ginseng as a raw 
        agricultural commodity shall--
                    ``(A) retain the means of disclosure provided under 
                subsection (b); and
                    ``(B) provide the received means of disclosure to a 
                consumer of ginseng.
            ``(3) Regulations.--The Secretary shall by regulation 
        prescribe with specificity the manner in which disclosure shall 
        be made in a transaction at the wholesale or retail level 
        (including a transaction by mail, telephone, internet, or in 
        retail stores).
    ``(d) Fines.--The Secretary may, after providing notice and an 
opportunity for a hearing before the Secretary, fine a person subject 
to subsection (b), or a person supplying ginseng to such a person, in 
an amount of not more than $1,000 for each violation if the Secretary 
determines that the person--
            ``(1) has not made a good faith effort to comply with 
        subsection (b); and
            ``(2) continues to willfully violate subsection (b).
    ``(e) Information.--The Secretary shall make information available 
to wholesalers, importers, retailers, trade associations, and other 
interested persons concerning the requirements of this section 
(including regulations promulgated to carry out this section).''.
    (b) Effective Date.--This section and the amendments made by this 
section take effect on the date that is 180 days after the date of 
enactment of this Act.

                Subtitle B--Agricultural Fair Practices

SEC. 10101. 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;
            (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 of agricultural 
                producers dedicated to promoting the common interest 
                and general welfare of producers of agricultural 
                products.'';
            (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--
                            ``(i) a producer; or
                            ``(ii) 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.''; and
            (8) by adding at the end the following:
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.''.

SEC. 10102. PROHIBITED PRACTICES.

    Section 4 of the Agricultural Fair Practices of 1967 (7 U.S.C. 
2303) is amended--
            (1) by redesignating subsections (a), (b), (c), (d), (e), 
        and (f) as paragraphs (1), (2), (3), (4), (5), and (7), 
        respectively, and indenting appropriately;
            (2) in paragraph (1) (as so redesignated)--
                    (A) by striking ``join and belong'' each place it 
                appears and inserting ``form, join, and belong''; and
                    (B) by striking ``joining or belonging'' and 
                inserting ``forming, joining, or belonging''; and
            (3) by inserting after paragraph (5) (as so redesignated) 
        the following:
            ``(6) To fail to bargain in good faith with an association 
        of producers; or''.

SEC. 10103. ENFORCEMENT.

    The Agricultural Fair Practices Act of 1967 is amended--
            (1) by striking sections 5 and 6 (7 U.S.C. 2304, 2305); and
            (2) by inserting after section 4 the following:

``SEC. 5. ENFORCEMENT.

    ``(a) Civil Actions by the Secretary Against Handlers.--In any case 
in which the Secretary has reasonable cause to believe that a handler 
or group of handlers has engaged in any act or practice that violates 
this Act, the Secretary may bring a civil action in United States 
district court by filing a complaint requesting preventive relief, 
including an application for a permanent or temporary injunction, 
restraining order, or other order, against the handler.
    ``(b) Civil Actions Against Handlers.--
            ``(1) Preventive relief.--
                    ``(A) In general.--In any case in which any handler 
                has engaged, or there are reasonable grounds to believe 
                that any handler is about to engage, in any act or 
                practice prohibited by this Act, a civil action for 
                preventive relief, including an application for a 
                permanent or temporary injunction, restraining order, 
                or other order, may be instituted by the person 
                aggrieved in United States district court.
                    ``(B) Security.--The court may provide that no 
                restraining order or preliminary injunction shall issue 
                unless security is provided by the applicant, in such 
                sum as the court determines to be appropriate, for the 
                payment of such costs and damages as may be incurred or 
                suffered by any party that is found to have been 
                wrongfully enjoined or restrained.
            ``(2) Damages.--
                    ``(A) In general.--Any person injured in the 
                business or property of the person by reason of any 
                violation of, or combination or conspiracy to violate, 
                this Act may bring a civil action in United States 
                district court to recover--
                            ``(i) damages sustained by the person as a 
                        result of the violation; and
                            ``(ii) any additional penalty that the 
                        court may allow, but not more than $1,000 per 
                        violation.
                    ``(B) Limitation on actions.--A civil action under 
                subparagraph (A) shall be barred unless commenced 
                within 4 years after the cause of action accrues.
            ``(3) Attorneys' fees.--In any action commenced under 
        paragraph (1) or (2), any person that has violated this Act 
        shall be liable to any person injured as a result of the 
        violation for the full amount of the damages sustained as a 
        result of the violation, including costs of the litigation and 
        reasonable attorneys' fees.
    ``(c) Jurisdiction of District Courts.--The district courts of the 
United States shall--
            ``(1) have jurisdiction of proceedings instituted pursuant 
        to this section; and
            ``(2) exercise that jurisdiction without regard to whether 
        the aggrieved party shall have exhausted any administrative or 
        other remedies that may be provided by law.
    ``(d) Liability for Acts of Agents.--In the construction and 
enforcement of this Act, the act, omission, or failure of any officer, 
agent, or person acting for or employed by any other person within the 
scope of the employment or office of the officer, agent, or person, 
shall be considered to be the act, omission, or failure of the other 
person.
    ``(e) Relationship to State Law.--Nothing in this Act--
            ``(1) changes or modifies State law in effect on the date 
        of enactment of this subsection; or
            ``(2) deprives a State court of jurisdiction.''.

SEC. 10104. RULES AND REGULATIONS.

    The Agricultural Fair Practices Act of 1967 is amended by inserting 
after section 5 (as added by section 10103) the following:

``SEC. 6. RULES AND REGULATIONS.

    ``The Secretary may promulgate such rules and regulations as are 
necessary to carry out this Act, including rules or regulations 
necessary to clarify what constitutes fair and normal dealing for 
purposes of the selection of customers by handlers.''.

                   Subtitle C--Packers and Stockyards

SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

    (a) In General.--The Packers and Stockyards Act, 1921 (7 U.S.C. 181 
et seq.) is amended--
            (1) by striking the title I heading and all that follows 
        through ``This Act'' and inserting the following:

                     ``TITLE I--GENERAL PROVISIONS

                       ``Subtitle A--Definitions

``SEC. 1. SHORT TITLE.

    ``This Act''; and
            (2) by inserting after section 2 (7 U.S.C. 183) the 
        following:

       ``Subtitle B--Special Counsel for Agricultural Competition

``SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

    ``(a) Establishment.--
            ``(1) In general.--There is established within the 
        Department of Agriculture an office to be known as the `Office 
        of Special Counsel for Agricultural Competition' (referred to 
        in this section as the `Office').
            ``(2) Duties.--The Office shall--
                    ``(A) have responsibility for all duties and 
                functions of the Packers and Stockyards programs of the 
                Department of Agriculture;
                    ``(B) investigate and prosecute violations of this 
                Act and the Agricultural Fair Practices Act of 1967 (7 
                U.S.C. 2301 et seq.);
                    ``(C) serve as a liaison between, and act in 
                consultation with, the Department of Agriculture, the 
                Department of Justice, and the Federal Trade Commission 
                with respect to competition and trade practices in the 
                food and agricultural sector; and
                    ``(D) maintain a staff of attorneys and other 
                professionals with the appropriate expertise.
    ``(b) Special Counsel for Agricultural Competition.--
            ``(1) In general.--The Office shall be headed by the 
        Special Counsel for Agricultural Competition (referred to in 
        this section as the `Special Counsel'), who shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate.
            ``(2) Independence of special authority.--
                    ``(A) In general.--The Special Counsel shall report 
                to and be under the general supervision of the 
                Secretary.
                    ``(B) Direction, control, and support.--The Special 
                Counsel shall be free from the direction and control of 
                any person in the Department of Agriculture other than 
                the Secretary.
                    ``(C) Prohibition on delegation.--The Secretary may 
                not delegate any duty described in subsection (a)(2) to 
                any other officer or employee of the Department other 
                than the Special Counsel.
                    ``(D) Reporting requirement.--
                            ``(i) In general.--Twice each year, the 
                        Special Counsel 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 shall 
                        include, for the relevant reporting period, a 
                        description of--
                                    ``(I) the number of complaints that 
                                the Special Counsel has received and 
                                closed;
                                    ``(II)(aa) the number of 
                                investigations and civil and 
                                administrative actions that the Special 
                                Counsel has initiated, carried out, and 
                                completed, including the number of 
                                notices given to regulated entities for 
                                violations of this Act or the 
                                Agricultural Fair Practices Act of 1967 
                                (7 U.S.C. 2301 et seq.);
                                    ``(bb) the number and types of 
                                decisions agreed to; and
                                    ``(cc) the number of stipulation 
                                agreements; and
                                    ``(III) the number of 
                                investigations and civil and 
                                administrative actions that the 
                                Secretary objected to or prohibited 
                                from being carried out, and the stated 
                                purpose of the Secretary for each 
                                objection or prohibition.
                            ``(ii) Requirement.--The basis for each 
                        complaint, investigation, or civil or 
                        administrative action described in a report 
                        under clause (i) shall--
                                    ``(I) be organized by species; and
                                    ``(II) indicate if the complaint, 
                                investigation, or civil or 
                                administration action was for anti-
                                competitive, unfair, or deceptive 
                                practices under this Act or was a 
                                violation of the Agricultural Fair 
                                Practices Act of 1967 (7 U.S.C. 2301 et 
                                seq.).
                    ``(E) Removal.--
                            ``(i) In general.--The Special Counsel may 
                        be removed from office by the President.
                            ``(ii) Communication.--The President shall 
                        communicate the reasons for any such removal to 
                        both Houses of Congress.
            ``(3) Prosecutorial authority.--Subject to paragraph (4), 
        the Special Counsel may commence, defend, or intervene in, and 
        supervise the litigation of, any civil or administrative action 
        authorized under this Act or the Agricultural Fair Practices 
        Act of 1967 (7 U.S.C. 2301 et seq.).
            ``(4) Procedure for exercise of authority to litigate or 
        appeal.--
                    ``(A) In general.--Prior to commencing, defending, 
                or intervening in any civil action under this Act or 
                the Agricultural Fair Practices Act of 1967 (7 U.S.C. 
                2301 et seq.), the Special Counsel shall give written 
                notification to, and attempt to consult with, the 
                Attorney General with respect to the proposed action.
                    ``(B) Failure to respond.--If, not later than 45 
                days after the date of provision of notification under 
                subparagraph (A), the Attorney General has failed to 
                commence, defend, or intervene in the proposed action, 
                the Special Counsel may commence, defend, or intervene 
                in, and supervise the litigation of, the action and any 
                appeal of the action in the name of the Special 
                Counsel.
                    ``(C) Authority of attorney general to intervene.--
                Nothing in this paragraph precludes the Attorney 
                General from intervening on behalf of the United States 
                in any civil action under this Act or the Agricultural 
                Fair Practices Act of 1967 (7 U.S.C. 2301 et seq.), or 
                in any appeal of such action, as may be otherwise 
                provided by law.
    ``(c) Relationship to Other Provisions.--Nothing in this section 
modifies or otherwise effects subsections (a) and (b) of section 
406.''.
    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Special Counsel for Agricultural Competition.''.

SEC. 10202. INVESTIGATION OF LIVE POULTRY DEALERS.

    (a) Removal of Poultry Slaughter Requirement From Definitions.--
Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)), 
is amended--
            (1) by striking paragraph (8) and inserting the following:
            ``(8) Poultry grower.--
                    ``(A) In general.--The term `poultry grower' means 
                any person engaged in the business of raising or caring 
                for live poultry under a poultry growing arrangement, 
                regardless of whether the poultry is owned by the 
                person or by another person.
                    ``(B) Exclusion.--The term `poultry grower' does 
                not include an employee of the owner of live poultry 
                described in subparagraph (A).'';
            (2) in paragraph (9), by striking ``and cares for live 
        poultry for delivery, in accord with another's instructions, 
        for slaughter'' and inserting ``or cares for live poultry in 
        accordance with the instructions of another person''; and
            (3) in paragraph (10), by striking ``for the purpose of 
        either slaughtering it or selling it for slaughter by 
        another''.
    (b) Administrative Enforcement Authority Over Live Poultry 
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 193, 194, 195), are amended by inserting ``or live 
poultry dealer'' after ``packer'' each place it appears.
    (c) Authority To Request Temporary Injunction or Restraining 
Order.--Section 408 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
228a), is amended in the first sentence by striking ``on account of 
poultry'' and inserting ``on account of poultry or poultry care''.
    (d) Violations by Live Poultry Dealers.--
            (1) Penalty.--Section 203(b) of the Packers and Stockyards 
        Act, 1921 (7 U.S.C. 193(b)) is amended in the third sentence by 
        striking ``$10,000'' and inserting ``$22,000''.
            (2) Repeals.--Sections 411, 412, and 413 of the Packers and 
        Stockyards Act, 1921 (7 U.S.C. 228b-2, 228b-3, 228b-4)), are 
        repealed.

SEC. 10203. PRODUCTION CONTRACTS.

    (a) Definitions.--Section 2(a) of the Packers and Stockyards Act, 
1921 (7 U.S.C. 182(a)) is amended--
            (1) by striking ``When used in this Act--'' and inserting 
        ``In this Act:'';
            (2) by striking paragraph (1);
            (3) by redesignating paragraphs (2), (3), (4), (5), (6), 
        (7), (8), (9), (10), (11), (12), (13), and (14) as paragraphs 
        (15), (6), (8), (9), (10), (13), (11), (12), (7), (2), (16), 
        (17), and (18), respectively, indenting appropriately, and 
        moving those paragraphs so as to appear in numerical order;
            (4) 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 (5), the text of 
        which is comprised of the term defined in the paragraph;
            (5) by inserting before paragraph (2) (as so designated) 
        the following:
            ``(1) Capital investment.--The term `capital investment' 
        means an investment in--
                    ``(A) a structure, such as a building or manure 
                storage structure; or
                    ``(B) machinery or equipment associated with 
                producing livestock or poultry that has a useful life 
                of more than 1 year.'';
            (6) by inserting after paragraph (2) (as so redesignated) 
        the following:
            ``(3) Contractor.--
                    ``(A) In general.--The term `contractor' means a 
                person that, in accordance with a production contract, 
                obtains livestock or poultry that is produced by a 
                contract producer.
                    ``(B) Inclusions.--The term `contractor' includes--
                            ``(i) a live poultry dealer; and
                            ``(ii) a swine contractor.
            ``(4) Contract producer.--
                    ``(A) In general.--The term `contract producer' 
                means a producer that produces livestock or poultry 
                under a production contract.
                    ``(B) Inclusions.--The term `contract producer' 
                includes--
                            ``(i) a poultry grower; and
                            ``(ii) a swine production contract grower.
            ``(5) Investment requirement.--The term `investment 
        requirement' means--
                    ``(A) a provision in a production contract that 
                requires a contract producer to make a capital 
                investment associated with producing livestock or 
                poultry that, but for the production contract, the 
                contract producer would not have made; or
                    ``(B) a representation by a contractor that results 
                in a contract producer making a capital investment.''; 
                and
            (7) by inserting after paragraph (13) (as so redesignated) 
        the following:
            ``(14) Production contract.--
                    ``(A) In general.--The term `production contract' 
                means a written agreement that provides for--
                            ``(i) the production of livestock or 
                        poultry by a contract producer; or
                            ``(ii) the provision of a management 
                        service relating to the production of livestock 
                        or poultry by a contract producer.
                    ``(B) Inclusions.--The term `production contract' 
                includes--
                            ``(i) a poultry growing arrangement;
                            ``(ii) a swine production contract;
                            ``(iii) any other contract between a 
                        contractor and a contract producer for the 
                        production of livestock or poultry; and
                            ``(iv) a contract between a live poultry 
                        dealer and poultry grower, swine contractor and 
                        swine production contract grower, or contractor 
                        and contract producer for the provision of a 
                        management service in the production of 
                        livestock or poultry.''.
    (b) Prohibitions Involving 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 contract producer may cancel a 
        production contract by mailing a cancellation notice to the 
        contractor not later than the later of--
                    ``(A) the date that is 3 business days after the 
                date on which the production contract is executed; or
                    ``(B) any cancellation date specified in the 
                production contract.
            ``(2) Disclosure.--A production contract shall clearly 
        disclose--
                    ``(A) the right of the contract producer to cancel 
                the production contract;
                    ``(B) the method by which the contract producer may 
                cancel the production contract; and
                    ``(C) the deadline for canceling the production 
                contract.
    ``(b) Production Contracts Involving Investment Requirements.--
            ``(1) Applicability.--This subsection applies only to a 
        production contract between a contract producer and a 
        contractor if the contract producer detrimentally relied on a 
        representation by the contractor or a provision in the 
        production contract that resulted in the contract producer 
        making a capital investment of $100,000 or more.
            ``(2) Restrictions on contract termination.--
                    ``(A) Notice of termination.--Except as provided in 
                subparagraph (C), a contractor shall not terminate or 
                cancel a production contract unless the contractor 
                provides the contract producer with written notice of 
                the intention of the contractor to terminate or cancel 
                the production contract at least 90 days before the 
                effective date of the termination or cancellation.
                    ``(B) Requirements.--The written notice required 
                under subparagraph (A) shall include alleged causes of 
                the termination.
                    ``(C) Exceptions.--A contractor may terminate or 
                cancel a production contract at any time without notice 
                as required under subparagraph (A) if the basis for the 
                termination or cancellation is--
                            ``(i) a voluntary abandonment of the 
                        contractual relationship by the contract 
                        producer, such as a failure of the contract 
                        producer to substantially perform under the 
                        production contract;
                            ``(ii) the conviction of the contract 
                        producer of an offense of fraud or theft 
                        committed against the contractor;
                            ``(iii) the natural end of the production 
                        contract in accordance with the terms of the 
                        production contract; or
                            ``(iv) because the well-being of the 
                        livestock or poultry subject to the contract is 
                        in jeopardy once under the care of the contract 
                        producer.
                    ``(D) Right to cure.--
                            ``(i) In general.--If, not later than 90 
                        days after the date on which the contract 
                        producer receives written notice under 
                        subparagraph (A), the contract producer 
                        remedies each cause of the breach of contract 
                        alleged in the written notice, the contractor 
                        may not terminate or cancel a production 
                        contract under this paragraph.
                            ``(ii) No admission of breach.--The remedy 
                        or attempt to remedy the causes for the breach 
                        of contract by the contract producer under 
                        clause (i) does not constitute an admission of 
                        breach of contract.
    ``(c) Additional Capital Investments in Production Contracts.--
            ``(1) In general.--A contractor shall not require a 
        contract producer to make additional capital investments in 
        connection with a production contract that exceed the initial 
        investment requirements of the production contract.
            ``(2) Exceptions.--Notwithstanding paragraph (1), a 
        contractor may require additional capital investments if--
                    ``(A)(i) the additional capital investments are 
                offset by reasonable additional consideration, 
                including compensation or a modification to the terms 
                of the production contract; and
                    ``(ii) the contract producer agrees in writing that 
                there is acceptable and satisfactory consideration for 
                the additional capital investment; or
                    ``(B) without the additional capital investments 
                the well-being of the livestock or poultry subject to 
                the contract would be in jeopardy.
    ``(d) No Effect on State Law.--Nothing in this section preempts or 
otherwise affects any State law relating to production contracts that 
establishes a requirement or standard that is more stringent than a 
requirement or standard under this section.

``SEC. 209. CHOICE OF LAW, JURISDICTION, AND VENUE.

    ``(a) Choice of Law.--Any provision in a livestock or poultry 
production or marketing contract requiring the application of the law 
of a State other than the State in which the production occurs is void 
and unenforceable.
    ``(b) Jurisdiction.--A packer, live poultry dealer, or swine 
contractor that enters into a production or marketing contract with a 
producer shall be subject to personal jurisdiction in the State in 
which the production occurs.
    ``(c) Venue.--Venue shall be determined on the basis of the 
location of the production, unless the producer selects a venue that is 
otherwise permitted by law.
    ``(d) Application.--This section shall apply to any production or 
marketing contract entered into, amended, altered, modified, renewed, 
or extended after the date of enactment of this section.

``SEC. 210. ARBITRATION.

    ``(a) In General.--If a livestock or poultry contract provides for 
the use of arbitration to resolve a controversy under the livestock or 
poultry contract, arbitration may be used to settle the controversy 
only if, after the controversy arises, both parties consent in writing 
to use arbitration to settle the controversy.
    ``(b) Application.--Subsection (a) shall apply to any contract 
entered into, amended, altered, modified, renewed, or extended after 
the date of enactment of this section.''.

SEC. 10204. RIGHT TO DISCUSS TERMS OF CONTRACT.

    Section 10503(b) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 229b(b)) is amended--
            (1) in paragraph (6), by striking ``or'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(8) a business associate of the party; or
            ``(9) a neighbor of the party or other producer.''.

SEC. 10205. ATTORNEYS' FEES.

    Section 308(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
209(a)) is amended by inserting before the period at the end the 
following: ``and for the costs of the litigation, including reasonable 
attorneys' fees''.

SEC. 10206. APPOINTMENT OF OUTSIDE COUNSEL.

    Section 407 of the Packers and Stockyards Act, 1921 (7 U.S.C. 228), 
is amended--
            (1) in subsection (a), by inserting ``obtain the services 
        of attorneys who are not employees of the Federal Government,'' 
        before ``and make such expenditures''; and
            (2) in subsection (c), by striking ``Senate Committee on 
        Agriculture and Forestry'' and inserting ``the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate''.

SEC. 10207. PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING 
              LIVESTOCK.

    (a) In General.--Section 202 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 192), is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Own or feed livestock directly, through a subsidiary, or 
through an arrangement that gives the packer operational, managerial, 
or supervisory control over the livestock, or over the farming 
operation that produces the livestock, to such an extent that the 
producer is no longer materially participating in the management of the 
operation with respect to the production of the livestock, except that 
this subsection shall not apply to--
            ``(1) an arrangement entered into within 14 days (excluding 
        any Saturday or Sunday) before slaughter of the livestock by a 
        packer, a person acting through the packer, or a person that 
        directly or indirectly controls, or is controlled by or under 
        common control with, the packer;
            ``(2) a cooperative or entity owned by a cooperative, if a 
        majority of the ownership interest in the cooperative is held 
        by active cooperative members that--
                    ``(A) own, feed, or control livestock; and
                    ``(B) provide the livestock to the cooperative for 
                slaughter;
            ``(3) a packer that is not required to report to the 
        Secretary on each reporting day (as defined in section 212 of 
        the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) 
        information on the price and quantity of livestock purchased by 
        the packer; or
            ``(4) a packer that owns 1 livestock processing plant; 
        or''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by subsection (a) take effect on the date of enactment of 
        this Act.
            (2) Transition rules.--In the case of a packer that on the 
        date of enactment of this Act owns, feeds, or controls 
        livestock intended for slaughter in violation of section 202(f) 
        of the Packers and Stockyards Act, 1921 (as amended by 
        subsection (a)), the amendments made by subsection (a) apply to 
        the packer--
                    (A) in the case of a packer of swine, beginning on 
                the date that is 18 months after the date of enactment 
                of this Act; and
                    (B) in the case of a packer of any other type of 
                livestock, beginning as soon as practicable, but not 
                later than 180 days, after the date of enactment of 
                this Act, as determined by the Secretary.

SEC. 10208. REGULATIONS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall promulgate 
regulations to implement the amendments made by this title, including--
            (1) regulations providing a definition of the term 
        ``unreasonable preference or advantage'' for purposes of 
        section 202(b) of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 192(b)); and
            (2) regulations requiring live poultry dealers to provide 
        written notice to poultry growers if the live poultry dealer 
        imposes an extended layout period in excess of 30 days, prior 
        to removal of the previous flock.
    (b) Requirements.--The Secretary shall ensure that regulations 
promulgated pursuant to subsection (a)(1) prevent discrimination 
against producers with a smaller volume of business. Nothing in this 
subsection shall be construed to require any person to enter into a 
business transaction with a producer due solely to that producer's 
volume of business.

                      Subtitle D--Related Programs

SEC. 10301. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION 
              PROGRAM.

    It is the sense of Congress that--
            (1) the Secretary should recognize the threat that 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) pseudorabies surveillance funding is necessary to 
        assist the swine industry in the monitoring, surveillance, and 
        eradication of pseudorabies, including the monitoring and 
        surveillance of other diseases effecting swine production and 
        trade; and
            (4) pseudorabies eradication is a high priority that the 
        Secretary should carry out under the Animal Health Protection 
        Act (7 U.S.C. 8301 et seq.).

SEC. 10302. SENSE OF CONGRESS REGARDING 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
            (2) implementing a national strategic plan for the cattle 
        fever tick eradication program is a high priority that the 
        Secretary should carry out--
                    (A) to prevent the entry of cattle fever ticks into 
                the United States;
                    (B) to enhance and maintain an effective 
                surveillance program to rapidly detect any fever tick 
                incursions; and
                    (C) to research, identify, and procure the tools 
                and knowledge necessary to prevent and eradicate cattle 
                ticks in the United States.

SEC. 10303. NATIONAL SHEEP AND GOAT INDUSTRY IMPROVEMENT CENTER.

    (a) Name Change.--Section 375 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008j) is amended--
            (1) in the section heading, by inserting ``and goat'' after 
        ``national sheep''; and
            (2) by inserting ``and Goat'' after ``National Sheep'' each 
        place it appears.
    (b) 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.''.
    (c) 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. 10304. TRICHINAE CERTIFICATION PROGRAM.

    Section 10409 of the Animal Health Protection Act (7 U.S.C. 8308) 
is amended by adding at the end the following:
    ``(c) Trichinae Certification Program.--
            ``(1) Establishment.--Not later than 60 days after the date 
        of enactment of this subsection, the Secretary shall issue 
        final regulations to implement a trichinae certification 
        program.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out the program 
        $1,250,000 for each of fiscal years 2008 through 2012.''.

SEC. 10305. PROTECTION OF INFORMATION IN THE ANIMAL IDENTIFICATION 
              SYSTEM.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall promulgate regulations consistent with the Freedom 
of Information Act, 5 U.S.C. 552, et. seq., regarding the disclosure of 
information submitted by farmers and ranchers who participate in the 
National Animal Identification System. The regulations promulgated, 
which shall be subject to a public comment period before finalizing, 
should address the protection of trade secrets and other proprietary 
and/or confidential business information that farmers and ranchers 
disclose in the course of participation in National Animal 
Identification System.

SEC. 10306. LOW PATHOGENIC AVIAN INFLUENZA.

    Section 10407(d)(2) of the Animal Health Protection Act (7 U.S.C. 
8306(d)(2)) is amended--
            (1) in subparagraph (A), by striking ``subparagraphs (B) 
        and (C),'' and inserting ``subparagraphs (B), (C), and (D),'';
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) Low pathogenic avian influenza.--
                            ``(i) Definition of eligible costs.--In 
                        this subparagraph, the term `eligible costs' 
                        means costs determined eligible for indemnity 
                        under part 56 of title 9, Code of Federal 
                        Regulations, as in effect on the date of 
                        enactment of this clause.
                            ``(ii) Indemnities.--Subject to 
                        subparagraphs (B) and (D), compensation to any 
                        owner or contract grower of poultry 
                        participating in the voluntary control program 
                        for low pathogenic avian influenza under the 
                        National Poultry Improvement Plan, and payments 
                        to cooperating State agencies, shall be made in 
                        an amount equal to 100 percent of the eligible 
                        costs.''.

SEC. 10307. STUDY ON BIOENERGY OPERATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary, acting through the Office of the Chief Economist, 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 potential economic issues (including potential 
costs) associated with animal manure used in normal agricultural 
operations and as a feedstock in bioenergy production.

SEC. 10308. SENSE OF THE SENATE ON INDEMNIFICATION OF LIVESTOCK 
              PRODUCERS.

    It is the sense of the Senate that the Secretary should partner 
with the private insurance industry to implement an approach for 
expediting the indemnification of livestock producers in the case of 
catastrophic disease outbreaks.

SEC. 10309. COORDINATION OF DAIRY OVERSIGHT.

    (a) In General.--The Secretary shall select an official within the 
Department of Agriculture to coordinate the sharing of information on 
oversight of the dairy industry to ensure fair competition.
    (b) Duties.--The official selected under subsection (a) shall--
            (1) serve as a liaison among the Agricultural Marketing 
        Service, Farm Service Agency, and National Agricultural 
        Statistics Service;
            (2) coordinate and maintain informal communications as 
        appropriate with other Federal agencies with an involvement or 
        interest in the dairy industry or fair competition;
            (3) hold at least 1 formal annual meeting during each 
        calendar year; and
            (4) submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate, and make available to the public, 
        an annual report that describes issues of concern in the dairy 
        industry that threaten fair competition, including an 
        evaluation of dairy markets with respect to the impact of those 
        markets on--
                    (A) reported dairy prices;
                    (B) Federal milk marketing order prices; and
                    (C) other Federal dairy programs.

                        TITLE XI--MISCELLANEOUS

                   Subtitle A--Agricultural Security

SEC. 11011. DEFINITIONS.

    In this subtitle:
            (1) Agent.--The term ``agent'' means a chemical, 
        biological, radiological, or nuclear substance that causes an 
        agricultural disease or adulteration of food products under the 
        jurisdiction of the Department.
            (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, with respect to direct exposure 
                to an agricultural disease; or
                    (C) the environment, with respect to agriculture 
                facilities, farmland, air, and water in the immediate 
                vicinity of an area associated with an agricultural 
                disease or outbreak.
            (3) Agricultural countermeasure.--
                    (A) In general.--The term ``agricultural 
                countermeasure'' means a product, practice, or 
                technology that is intended to enhance or maintain the 
                agricultural biosecurity of the United States.
                    (B) Exclusions.--The term ``agricultural 
                countermeasure'' does not include any product, 
                practice, or technology used solely for human medical 
                incidents or public health emergencies not related to 
                agriculture.
            (4) Agricultural disease.--The term ``agricultural 
        disease'' has the meaning given the term by the Secretary.
            (5) Agriculture.--The term ``agriculture'' means--
                    (A) the science and practice of activities relating 
                to food, feed, fiber, and energy production, 
                processing, marketing, distribution, use, and trade;
                    (B) nutrition, food science and engineering, and 
                agricultural economics;
                    (C) forestry, wildlife science, fishery science, 
                aquaculture, floriculture, veterinary medicine, and 
                other related natural resource sciences; and
                    (D) research and development activities relating to 
                plant- and animal-based products carried out by the 
                Department.
            (6) Agroterrorist act.--The term ``agroterrorist act'' 
        means an act that--
                    (A) causes or attempts to cause--
                            (i) damage to agriculture; or
                            (ii) injury to a person associated with 
                        agriculture; and
                    (B) is committed--
                            (i) to intimidate or coerce; or
                            (ii) to disrupt the agricultural industry.
            (7) Animal.--The term ``animal'' means any member of the 
        animal kingdom (except a human).
            (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;
                    (B) the formulation, production, and subsequent 
                modification of those products or technologies;
                    (C) the conduct of preclinical and clinical in vivo 
                and in vitro studies;
                    (D) the conduct of field, efficacy, and safety 
                studies;
                    (E) the preparation of an application for marketing 
                approval for submission to applicable agencies; and
                    (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 approval.
            (10) Plant.--
                    (A) In general.--The term ``plant'' means any plant 
                (including any plant part) for or capable of 
                propagation.
                    (B) Inclusions.--The term ``plant'' includes--
                            (i) a tree;
                            (ii) a tissue culture;
                            (iii) a plantlet culture;
                            (iv) pollen;
                            (v) a shrub;
                            (vi) a vine;
                            (vii) a cutting;
                            (viii) a graft;
                            (ix) a scion;
                            (x) a bud;
                            (xi) a bulb;
                            (xii) a root; and
                            (xiii) a seed.
            (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 from--
                    (A) an agent placed on the Select Agents and Toxins 
                list of the Department;
                    (B) an agent placed on the Plant Protection and 
                Quarantine Select Agents and Toxins list of the 
                Department; or
                    (C) an applicable agent placed on the Overlap 
                Select Agents and Toxins list of the Department and the 
                Department of Health and Human Services, in accordance 
                with--
                            (i) part 331 of title 7, Code of Federal 
                        Regulations; and
                            (ii) part 121 of title 9, Code of Federal 
                        Regulations.

SEC. 11012. NATIONAL PLANT DISEASE RECOVERY SYSTEM AND NATIONAL 
              VETERINARY STOCKPILE.

    (a) National Plant Disease Recovery System.--
            (1) Establishment.--The Secretary, in coordination with the 
        Secretary of Homeland Security, and in consultation with the 
        Administrator of the Environmental Protection Agency, shall 
        work with State and local governments and the private sector to 
        establish a national plant disease recovery system to be used 
        to respond to an outbreak of plant disease that poses a 
        significant threat to agricultural biosecurity.
            (2) Requirements.--The national plant disease recovery 
        system shall include agricultural countermeasures to be made 
        available within a single growing season for crops of 
        particular economic significance, as determined by the 
        Secretary, in coordination with the Secretary of Homeland 
        Security.
    (b) National Veterinary Stockpile.--The Secretary, in coordination 
with the Secretary of Homeland Security, and in consultation with the 
Secretary of Health and Human Services and the Administrator of the 
Environmental Protection Agency, shall work with State and local 
governments and the private sector to establish a national veterinary 
stockpile, which shall be used by the Secretary, in coordination with 
the Secretary of Homeland Security to make agricultural countermeasures 
available to any State veterinarian not later than 24 hours after 
submission of an official request for assistance by the State 
veterinarian, unless the Secretary and the Secretary of Homeland 
Security cannot accommodate such a request due to an emergency, lack of 
available resources, or other reason for disapproval of the request as 
determined the Secretary.

SEC. 11013. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

    (a) Grant Program.--
            (1) In general.--The Secretary shall establish a grant 
        program to stimulate basic and applied research and development 
        activity for qualified agricultural countermeasures.
            (2) Competitive grants.--In carrying out this section, the 
        Secretary shall develop a process through which to award grants 
        on a competitive basis.
            (3) Waiver in emergencies.--The Secretary may waive the 
        requirement in paragraph (2), 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) the waiver would lead to the rapid development 
                of a qualified agricultural countermeasure, as 
                determined by the Secretary.
    (b) Use of Foreign Disease Permissible.--The Secretary may permit 
the use of foreign animal and plant disease agents, and accompanying 
data, in research and development activities funded under this section 
if the Secretary determines that the diseases or data are necessary to 
demonstrate the safety and efficacy of an agricultural countermeasure 
in development.
    (c) Coordination on Advanced Development.--The Secretary shall 
ensure that the Secretary of Homeland Security is provided information, 
on a quarterly basis, describing each grant provided by the Secretary 
for the purpose of facilitating the acceleration and expansion of the 
advanced development of agricultural countermeasures.
    (d) Scope.--Nothing in this section impedes the ability of the 
Secretary of Homeland Security to administer grants for basic and 
applied research and advanced development activities for qualified 
agricultural countermeasures.
    (e) 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. 11014. VETERINARY WORKFORCE GRANT PROGRAM.

    (a) In General.--The Secretary shall establish a grant program to 
increase the number of veterinarians trained in agricultural 
biosecurity.
    (b) Considerations for Funding Awarded.--The Secretary shall 
establish procedures to ensure that grants are competitively awarded 
under the program based on--
            (1) the ability of an applicant to increase the number of 
        veterinarians who are trained in agricultural biosecurity 
        practice areas determined by the Secretary;
            (2) the ability of an applicant to increase research 
        capacity in areas of agricultural biosecurity determined by the 
        Secretary to be a priority; or
            (3) any other consideration the Secretary determines to be 
        appropriate.
    (c) Use of Funds.--Amounts received under this section may be used 
by a grantee to pay--
            (1) costs associated with construction and the acquisition 
        of equipment, and other capital costs relating to the expansion 
        of schools of veterinary medicine, departments of comparative 
        medicine, departments of veterinary science, or entities 
        offering residency training programs; or
            (2) 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.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
this section for each of fiscal years 2008 through 2012.

SEC. 11015. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL 
              BIOSECURITY PLANNING, PREPAREDNESS, AND RESPONSE.

    (a) Advanced Training Programs.--
            (1) Grant assistance.--The Secretary shall provide grant 
        assistance 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 are 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 provide 
        grant and low-interest loan assistance to States for use in 
        assessing agricultural disease response and food emergency 
        response capabilities.
            (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.

SEC. 11016. LIVE VIRUS OF 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 the National Bio and Agro-Defense Laboratory (referred to in 
this section as the ``NBAF'').
    (b) Limitation.--The permit shall be valid unless the Secretary 
finds that the study of live foot and mouth disease virus at the NBAF 
is not being carried out in accordance with the regulations issued by 
the Secretary pursuant to the Agricultural Bioterrorism Protection Act 
of 2002 (7 U.S.C. 8401 et seq.).
    (c) 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. 11017. PLANT PROTECTION.

    (a) Civil Penalties for Violations.--Section 424(b)(1) of the Plant 
Protection Act (7 U.S.C. 7734(b)(2)) is amended by striking 
subparagraphs (A) and (B) and inserting the following:
                    ``(A) $50,000 in the case of any individual (except 
                that the civil penalty may not exceed $1,000 in the 
                case of an initial violation of this title by an 
                individual moving regulated articles not for monetary 
                gain);
                    ``(B) $250,000 in the case of any other person for 
                each violation;
                    ``(C) $500,000 for each violation adjudicated in a 
                single proceeding;
                    ``(D) $1,000,000 for each violation adjudicated in 
                a single proceeding involving a genetically modified 
                organism (as determined by the Secretary); or
                    ``(E) twice the gross gain or gross loss for any 
                violation, forgery, counterfeiting, unauthorized use, 
                defacing, or destruction of a certificate, permit, or 
                other document provided for in this title that results 
                in the person deriving pecuniary gain or causing 
                pecuniary loss to another.''.
    (b) Time for Commencing Proceedings.--Subtitle B of the Plant 
Protection Act (7 U.S.C. 7731 et seq.) is amended by adding at the end 
the following:

``SEC. 427. TIME FOR COMMENCING PROCEEDINGS.

    ``An action, suit, or proceeding with respect to an alleged 
violation of this title shall not be considered unless the action, 
suit, or proceeding is commenced not later than 5 years after the date 
the violation is initially discovered by the Secretary.''.

                       Subtitle B--Other Programs

SEC. 11051. FORECLOSURE.

    (a) In General.--Section 307 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927) is amended by adding at the end the 
following:
    ``(f) Moratorium.--
            ``(1) In general.--Effective beginning on the date of 
        enactment of this subsection, there shall be in effect a 
        moratorium on all loan 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 
                discrimination; or
                    ``(B) files a claim of discrimination against the 
                Department.
            ``(2) Waiver of interest and offsets.--During the period of 
        the moratorium, the Secretary shall waive the accrual of 
        interest and offsets on all loans made under this subtitle for 
        which loan acceleration or foreclosure proceedings have been 
        instituted as described in 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.
            ``(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 the loan was in 
        abeyance.''.
    (b) Foreclosure Report.--
            (1) In general.--Not later than 1 year after the date of 
        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 
        loans made under subtitle A 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 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 
        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. 11052. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
              DISADVANTAGED FARMERS AND RANCHERS.

    (a) In General.--Section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(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--
                            ``(i) reaching socially disadvantaged 
                        farmers and ranchers and prospective socially 
                        disadvantaged farmers and ranchers in a 
                        culturally and linguistically appropriate 
                        manner; and
                            ``(ii) improving the participation of those 
                        farmers and ranchers in Department programs, as 
                        determined under section 2501A.'';
                    (B) in paragraph (3)--
                            (i) 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
                            (ii) by adding at the end the following:
                    ``(D) Renewal of contracts.--The Secretary may 
                provide for renewal of a grant, contract, or other 
                agreement under this section with an eligible entity 
                that--
                            ``(i) has previously received funding under 
                        this section;
                            ``(ii) has demonstrated an ability to carry 
                        out the requirements described in paragraph 
                        (2); and
                            ``(iii) demonstrates to the satisfaction of 
                        the Secretary that the entity will continue to 
                        fulfill the purposes of this section.
                    ``(E) Review of proposals.--Notwithstanding 
                subparagraph (D), the Secretary shall promulgate a 
                regulation to establish criteria for the review process 
                for grants and cooperative agreements (including 
                multiyear grants), which shall include a review 
                eligible entities on an individual basis.
                    ``(F) Report.--The Secretary shall submit to 
                Congress, and make publically available, an annual 
                report that describes--
                            ``(i) the accomplishments of the program 
                        under this section; and
                            ``(ii) any gaps or problems in service 
                        delivery as reported by grantees.''; and
                    (C) in paragraph (4)--
                            (i) by striking subparagraph (A), and 
                        inserting the following:
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection $50,000,000 for each of fiscal years 2008 
                through 2012.''; and
                            (ii) by adding at the end the following:
                    ``(C) Limitation on use of funds for administrative 
                expenses.--Not more than 5 percent of the amounts made 
                available under this paragraph for a fiscal year may be 
                used for expenses related to administering the program 
                under this section.''; and
            (2) in subsection (e)(5)(A)--
                    (A) in clause (i), by striking ``has demonstrated 
                experience in'' and inserting ``has a reputation for, 
                and has demonstrated experience in,''; and
                    (B) in clause (ii)--
                            (i) by inserting ``and on behalf of'' 
                        before ``socially''; and
                            (ii) by striking ``2-year'' and inserting 
                        ``3-year''.
    (b) Coordination With Outreach.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall develop a plan to 
        join and relocate--
                    (A) the outreach and technical assistance program 
                established under section 2501 of the Food, 
                Agriculture, Conservation, and Trade Act of 1990 (7 
                U.S.C. 2279); and
                    (B) the Office of Outreach of the Department of 
                Agriculture.
            (2) Consultation.--In preparing the plan under paragraph 
        (1), the Secretary shall, in consultation with eligible 
        entities under section 2501 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279)--
                    (A) decide the most appropriate permanent location 
                for the programs described in paragraph (1); and
                    (B) locate both programs together at that location.
            (3) Report.--After the relocation described in this 
        subsection is completed, the Secretary shall submit to Congress 
        a report that includes information describing the new location 
        of the programs.

SEC. 11053. ADDITIONAL CONTRACTING AUTHORITY.

    Section 2501(a)(3) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(a)(3)) (as amended by section 
11052(a)(1)(B)(ii)) is amended by adding at the end the following:
                    ``(G) Additional contracting authority.--
                            ``(i) In general.--The Secretary shall 
                        provide to the Office of Outreach of the 
                        Department of Agriculture, the Natural 
                        Resources Conservation Service, the Farm 
                        Service Agency, the Risk Management Agency, the 
                        Forest Service, the Food Safety and Inspection 
                        Service, and such other agencies and programs 
                        as the Secretary determines to be necessary, 
                        the authority to make grants and enter into 
                        contracts and cooperative agreements with 
                        community-based organizations that meet the 
                        definition of an eligible entity under 
                        subsection (e).
                            ``(ii) Matching funds.--The Secretary is 
                        not required to require matching funds for a 
                        grant made, or a contract or cooperative 
                        agreement entered into, under this 
                        subparagraph.
                            ``(iii) Interagency funding.--
                        Notwithstanding any other provision of law 
                        (including regulations), any Federal agency may 
                        participate in any grant made, or contract or 
                        cooperative agreement entered into, under this 
                        subsection by contributing funds, if the head 
                        of the agency determines that the objectives of 
                        the grant, contract, or cooperative agreement 
                        will further the authorized programs of the 
                        contributing agency.''.

SEC. 11054. IMPROVED PROGRAM DELIVERY BY THE 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 by striking the 
second sentence.

SEC. 11055. 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 and ranchers in agricultural production.''.

SEC. 11056. IMPROVED DATA REQUIREMENTS.

    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:
    ``(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 and ranchers by computing for each 
        program of the Department of Agriculture that serves 
        agricultural producers or 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 required 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.
    ``(d) Limitations on Use of Data.--
            ``(1) In general.--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).
            ``(3) Limitation.--Except as otherwise provided, the data 
        under this section shall not be used for the evaluation of 
        individual applications for assistance.''.

SEC. 11057. RECEIPT FOR SERVICE OR DENIAL OF SERVICE.

    Section 2501A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279-1) (as amended by section 11056) is amended by 
adding at the end the following:
    ``(e) Receipt for Service or Denial of Service.--In any case in 
which a farmer or rancher, or a prospective farmer or rancher, in 
person or in writing, requests from the Farm Service Agency or the 
Natural Resources Conservation Service of the Department of Agriculture 
any benefit or service offered by the Department to agricultural 
producers or landowners, and at the time of the request requests a 
receipt, the Secretary of Agriculture shall issue, on the date of the 
request, a receipt to the farmer or rancher, or prospective farmer or 
rancher, that contains--
            ``(1) the date, place, and subject of the request; and
            ``(2) the action taken, not taken, or recommended to the 
        farmer or rancher or prospective farmer or rancher.''.

SEC. 11058. 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.--
            ``(1) In general.--Not later than 180 days after the date 
        of 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. 11059. FARMWORKER COORDINATOR.

    (a) In General.--Subtitle B of title II of the Department of 
Agriculture Reorganization Act of 1994 is amended by inserting after 
section 226A (7 U.S.C. 6933) the following:

``SEC. 226B. FARMWORKER COORDINATOR.

    ``(a) Establishment.--The Secretary shall establish within the 
Department the position of Farmworker Coordinator (referred to in this 
section as the `Coordinator').
    ``(b) Duties.--The Secretary shall delegate to the Coordinator 
responsibility for--
            ``(1) assisting in administering the program established by 
        section 2281 of the Food, Agriculture, Conservation, and Trade 
        Act of 1990 (42 U.S.C. 5177a);
            ``(2) serving as a liaison to community-based nonprofit 
        organizations that represent and have demonstrated experience 
        serving low-income migrant and seasonal farmworkers;
            ``(3) 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;
            ``(4) consulting with the Office of Small Farm 
        Coordination, Office of Outreach, Outreach Coordinators, and 
        other entities to better integrate farmworker perspectives, 
        concerns, and interests into the ongoing programs of the 
        Department;
            ``(5) consulting with appropriate institutions on research, 
        program improvements, or agricultural education opportunities 
        that assist low-income and migrant seasonal farmworkers; and
            ``(6) ensuring that farmworkers have access to services and 
        support to enter agriculture as producers.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (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 7401(c)(1)) is amended by adding at the end the following:
            ``(7) the authority of the Secretary to establish in the 
        Department a position of Farmworker Coordinator in accordance 
        with section 226B.''.

SEC. 11060. CONGRESSIONAL BIPARTISAN FOOD SAFETY COMMISSION.

    (a) Commission.--
            (1) Establishment.--
                    (A) In general.--There is established a commission 
                to be known as the ``Congressional Bipartisan Food 
                Safety Commission'' (referred to in this section as the 
                ``Commission'').
                    (B) Purpose.--The purpose of the Commission shall 
                be to act in a bipartisan, consensus-driven fashion--
                            (i) to review the food safety system of the 
                        United States;
                            (ii) to prepare a report that--
                                    (I) summarizes information about 
                                the food safety system as in effect as 
                                of the date of enactment of this Act; 
                                and
                                    (II) makes recommendations on 
                                ways--
                                            (aa) to modernize the food 
                                        safety system of the United 
                                        States;
                                            (bb) to harmonize and 
                                        update food safety statutes;
                                            (cc) to improve Federal, 
                                        State, local, and interagency 
                                        coordination of food safety 
                                        personnel, activities, budgets, 
                                        and leadership;
                                            (dd) to best allocate 
                                        scarce resources according to 
                                        risk;
                                            (ee) to ensure that 
                                        regulations, directives, 
                                        guidance, and other standards 
                                        and requirements are based on 
                                        best-available science and 
                                        technology;
                                            (ff) to emphasize 
                                        preventative rather than 
                                        reactive strategies; and
                                            (gg) to provide to Federal 
                                        agencies funding mechanisms 
                                        necessary to effectively carry 
                                        out food safety 
                                        responsibilities; and
                            (iii) to draft specific statutory language, 
                        including detailed summaries of the language 
                        and budget recommendations, that would 
                        implement the recommendations of the 
                        Commission.
            (2) Membership.--
                    (A) Composition.--The Commission shall be composed 
                of 19 members.
                    (B) Eligibility.--Members of the Commission shall--
                            (i) have specialized training, education, 
                        or significant experience in at least 1 of the 
                        areas of--
                                    (I) food safety research;
                                    (II) food safety law and policy; 
                                and
                                    (III) program design and 
                                implementation;
                            (ii) consist of--
                                    (I) the Secretary of Agriculture 
                                (or a designee);
                                    (II) the Secretary of Health and 
                                Human Services (or a designee);
                                    (III) 1 Member of the House of 
                                Representatives; and
                                    (IV) 1 Member of the Senate; and
                                    (V) 15 additional members that 
                                include, to the maximum extent 
                                practicable, representatives of--
                                            (aa) consumer 
                                        organizations;
                                            (bb) agricultural and 
                                        livestock production;
                                            (cc) public health 
                                        professionals;
                                            (dd) State regulators;
                                            (ee) Federal employees; and
                                            (ff) the livestock and food 
                                        manufacturing and processing 
                                        industry.
                    (C) Appointments.--
                            (i) In general.--The appointment of the 
                        members of the Commission shall be made not 
                        later than 60 days after the date of enactment 
                        of this Act.
                            (ii) Certain appointments.--Of the members 
                        of the Commission described in subparagraph 
                        (B)(ii)(V)--
                                    (I) 2 shall be appointed by the 
                                President;
                                    (II) 7 shall be appointed by a 
                                working group consisting of--
                                            (aa) the Chairman of each 
                                        of the Committee on 
                                        Agriculture, Nutrition, and 
                                        Forestry and the Committee on 
                                        Health, Education, Labor, and 
                                        Pensions of the Senate;
                                            (bb) the Chairman of each 
                                        of the Committee on Agriculture 
                                        and the Committee on Energy and 
                                        Commerce of the House of 
                                        Representatives;
                                            (cc) the Speaker of the 
                                        House of Representatives; and
                                            (dd) the Majority Leader of 
                                        the Senate; and
                                    (III) 6 shall be appointed by a 
                                working group consisting of--
                                            (aa) the Ranking Member of 
                                        each of the Committees 
                                        described in items (aa) and 
                                        (bb) of subclause (II);
                                            (bb) the Minority Leader of 
                                        the House of Representatives; 
                                        and
                                            (cc) the Minority Leader of 
                                        the Senate.
                    (D) Term.--A member of the Commission shall be 
                appointed for the life of the Commission.
                    (E) Vacancies.--A vacancy on the Commission--
                            (i) shall not affect the powers of the 
                        Commission; and
                            (ii) shall be filled in the same manner as 
                        the original appointment was made.
            (3) Meetings.--
                    (A) Initial meeting.--Except as provided in 
                subparagraph (B), the initial meeting of the Commission 
                shall be conducted in Washington, District of Columbia, 
                not later than 30 days after the date of appointment of 
                the final member of the Commission under paragraph 
                (2)(C).
                    (B) Meeting for partial appointment.--If, as of the 
                date that is 90 days after the date of enactment of 
                this Act, all members of the Commission have not been 
                appointed under paragraph (2)(C), but at least 8 
                members have been appointed, the Commission may hold 
                the initial meeting of the Commission.
                    (C) Other meetings.--The Commission shall--
                            (i) hold a series of at least 5 stakeholder 
                        meetings to solicit public comment, including--
                                    (I) at least 1 stakeholder meeting, 
                                to be held in Washington, District of 
                                Columbia; and
                                    (II) at least 4 stakeholder 
                                meetings, to be held in various regions 
                                of the United States; and
                            (ii) meet at the call of--
                                    (I) the Chairperson;
                                    (II) the Vice-Chairperson; or
                                    (III) a majority of the members of 
                                the Commission.
                    (D) Public participation; information.--To the 
                maximum extent practicable--
                            (i) each meeting of the Commission shall be 
                        open to the public; and
                            (ii) all information from a meeting of the 
                        Commission shall be recorded and made available 
                        to the public.
                    (E) Quorum.--With respect to meetings of the 
                Commission--
                            (i) a majority of the members of the 
                        Commission shall constitute a quorum for the 
                        conduct of business of the Commission; but
                            (ii) for the purpose of a stakeholder 
                        meeting described in subparagraph (C)(i), 4 or 
                        more members of the Commission shall constitute 
                        a quorum.
                    (F) Facilitator.--The Commission shall contract 
                with a nonpolitical, disinterested third-party entity 
                to serve as a meeting facilitator.
            (4) Chairperson and vice-chairperson.--At the initial 
        meeting of the Commission, the members of the Commission shall 
        select from among the members a Chairperson and Vice-
        Chairperson of the Commission.
    (b) Duties.--
            (1) Recommendations.--The Commission shall review and 
        consider the statutes, studies, and reports described in 
        paragraph (2) for the purpose of understanding the food safety 
        system of the United States in existence as of the date of 
        enactment of this Act.
            (2) Statutes, studies, and reports.--The statutes, studies, 
        and reports referred to in paragraph (1) include--
                    (A) with respect with respect to laws administered 
                by the Secretary of Agriculture--
                            (i) the Federal Seed Act (7 U.S.C. 1551 et 
                        seq.);
                            (ii) the Agricultural Marketing Act of 1946 
                        (7 U.S.C. 1621 et seq.);
                            (iii) the Animal Health Protection Act (7 
                        U.S.C. 8301 et seq.);
                            (iv) the Lacey Act Amendments of 1981 (16 
                        U.S.C. 3371 et seq.);
                            (v) the Poultry Products Inspection Act (21 
                        U.S.C. 451 et seq.);
                            (vi) the Federal Meat Inspection Act (21 
                        U.S.C. 601 et seq.); and
                            (vii) the Egg Products Inspection Act (21 
                        U.S.C. 1031 et seq.);
                    (B) with respect to laws administered by the 
                Secretary of the Treasury, the Federal Alcohol 
                Administration Act (27 U.S.C. 201 et seq.);
                    (C) with respect to laws administered by the 
                Federal Trade Commission, the Act of September 26, 1914 
                (15 U.S.C. 41 et seq.);
                    (D) with respect to laws administered by the 
                Secretary of Health and Human Services--
                            (i) chapters I through IV of the Federal 
                        Food, Drug, and Cosmetic Act (21 U.S.C. 301 et 
                        seq.);
                            (ii) the Public Health Service Act (42 
                        U.S.C. 201 et seq.);
                            (iii) the Import Milk Act (21 U.S.C. 141 et 
                        seq.);
                            (iv) the Food Additives Amendment of 1958 
                        (Public Law 85-929; 52 Stat. 1041);
                            (v) the Fair Packaging and Labeling Act 
                        (Public Law 89-755; 80 Stat. 1296);
                            (vi) the Infant Formula Act of 1980 (21 
                        U.S.C. 301 note; Public Law 96-359);
                            (vii) the Pesticide Monitoring Improvements 
                        Act of 1988 (Public Law 100-418; 102 Stat. 
                        1411);
                            (viii) the Nutrition Labeling and Education 
                        Act of 1990 (21 U.S.C. 301 note; Public Law 
                        101-535);
                            (ix) the Food and Drug Administration 
                        Modernization Act of 1997 (21 U.S.C. 301 note; 
                        Public Law 105-115); and
                            (x) the Public Health Security and 
                        Bioterrorism Preparedness and Response Act of 
                        2002 (21 U.S.C. 201 note; Public Law 107-188);
                    (E) with respect to laws administered by the 
                Attorney General, the Federal Anti-Tampering Act (18 
                U.S.C. 1365 note; Public Law 98-127);
                    (F) with respect to laws administered by the 
                Administrator of the Environmental Protection Agency--
                            (i) the Federal Insecticide, Fungicide, and 
                        Rodenticide Act (7 U.S.C. 136 et seq.);
                            (ii) the Food Quality Protection Act of 
                        1996 (7 U.S.C. 136 note; Public Law 104-170);
                            (iii) the Toxic Substances Control Act (15 
                        U.S.C. 2601 et seq.); and
                            (iv) the Safe Drinking Water Act of 1974 
                        (42 U.S.C. 201 note; Public Law 93-523); and
                    (G) with respect to laws administered by the 
                Secretary of Transportation, chapter 57 of subtitle II 
                of title 49, United States Code (relating to sanitary 
                food transportation); and
                    (H) with respect to Government studies on food 
                safety--
                            (i) the report of the National Academies of 
                        Science entitled ``Ensuring Safe Food from 
                        Production to Consumption'' and dated 1998;
                            (ii) the report of the National Academies 
                        of Science entitled ``Scientific Criteria to 
                        Ensure Safe Food'' and dated 2003;
                            (iii) reports of the Office of the 
                        Inspector General of the Department of 
                        Agriculture, including--
                                    (I) report 24601-0008-CH, entitled 
                                ``Egg Products Processing Inspection'' 
                                and dated September 18, 2007;
                                    (II) report 24005-1-AT, entitled 
                                ``Food Safety and Inspection Service--
                                State Meat and Poultry Inspection 
                                Programs'' and dated September 27, 
                                2006;
                                    (III) report 24601-06-CH, entitled 
                                ``Food Safety and Inspection Service's 
                                In-Plant Performance System'' and dated 
                                March 28, 2006;
                                    (IV) report 24601-05-AT, entitled 
                                ``Hazard Analysis and Critical Control 
                                Point Implementation at Very Small 
                                Plants'' and dated June 24, 2005;
                                    (V) report 24601-04-HY, entitled 
                                ``Food Safety and Inspection Service 
                                Oversight of the 2004 Recall by Quaker 
                                Maid Meats, Inc.'' and dated May 18, 
                                2005;
                                    (VI) report 24501-01-FM, entitled 
                                ``Food Safety and Inspection Service 
                                Application Controls--Performance Based 
                                Inspection System'' and dated November 
                                24, 2004;
                                    (VII) report 24601-03-CH, entitled 
                                ``Food Safety and Inspection Service 
                                Use of Food Safety Information'' and 
                                dated September 30, 2004;
                                    (VIII) report 24601-03-HY, entitled 
                                ``Food Safety and Inspection Service 
                                Effectiveness Checks for the 2002 
                                Pilgrim's Pride Recall'' and dated June 
                                29, 2004;
                                    (IX) report 24601-02-HY, entitled 
                                ``Food Safety and Inspection Service 
                                Oversight of the Listeria Outbreak in 
                                the Northeastern United States'' and 
                                dated June 9, 2004;
                                    (X) report 24099-05-HY, entitled 
                                ``Food Safety and Inspection Service 
                                Imported Meat and Poultry Equivalence 
                                Determinations Phase III'' and dated 
                                December 29, 2003;
                                    (XI) report 24601-2-KC, entitled 
                                ``Food Safety and Inspection Service--
                                Oversight of Production Process and 
                                Recall at Conagra Plant (Establishment 
                                969)'' and dated September 30, 2003;
                                    (XII) report 24601-1-Ch, entitled 
                                ``Laboratory Testing Of Meat And 
                                Poultry Products'' and dated June 21, 
                                2000;
                                    (XIII) report 24001-3-At, 24601-1-
                                Ch, 24099-3-Hy, 24601-4-At, entitled 
                                ``Food Safety and Inspection Service: 
                                HACCP Implementation, Pathogen Testing 
                                Program, Foreign Country Equivalency, 
                                Compliance Activities'' and dated June 
                                21, 2000; and
                                    (XIV) report 24001-3-At, entitled 
                                ``Implementation of the Hazard Analysis 
                                and Critical Control Point System'' and 
                                dated June 21, 2000; and
                    (I) with respect to reports prepared by the 
                Government Accountability Office, the reports 
                designated--
                            (i) GAO-05-212;
                            (ii) GAO-02-47T;
                            (iii) GAO/T-RCED-94-223;
                            (iv) GAO/RCED-99-80;
                            (v) GAO/T-RCED-98-191;
                            (vi) GAO/RCED-98-103;
                            (vii) GAO-07-785T;
                            (viii) GAO-05-51;
                            (ix) GAO/T-RCED-94-311;
                            (x) GAO/RCED-92-152;
                            (xi) GAO/T-RCED-99-232;
                            (xii) GAO/T-RCED-98-271;
                            (xiii) GAO-07-449T;
                            (xiv) GAO-05-213;
                            (xv) GAO-04-588T;
                            (xvi) GAO/RCED-00-255;
                            (xvii) GAO/RCED-00-195; and
                            (xviii) GAO/T-RCED-99-256.
            (3) Report.--Not later than 360 days after the date on 
        which the Commission first meets, the Commission shall submit 
        to the President and Congress a report that includes the report 
        and summaries, statutory language recommendations, and budget 
        recommendations described in clauses (ii) and (iii) of 
        subsection (a)(1)(B).
    (c) Powers of the Commission.--
            (1) Hearings.--The Commission or, at the direction of the 
        Commission, any member of the Commission, may, for the purpose 
        of carrying out this section--
                    (A) hold such hearings, meet and act at such times 
                and places, take such testimony, receive such evidence, 
                and administer such oaths; and
                    (B) require the attendance and testimony of such 
                witnesses and the production of such books, records, 
                correspondence, memoranda, papers, documents, tapes, 
                and materials;
        as the Commission or member considers advisable.
            (2) Information from federal agencies.--
                    (A) In general.--The Commission may secure 
                directly, from any Federal agency, such information as 
                the Commission considers necessary to carry out this 
                section.
                    (B) Provision of information.--
                            (i) In general.--Subject to subparagraph 
                        (C), on the request of the Commission, the head 
                        of a Federal agency described in subparagraph 
                        (A) shall expeditiously furnish information 
                        requested by the Commission to the Commission.
                            (ii) Administration.--The furnishing of 
                        information by a Federal agency to the 
                        Commission shall not be considered a waiver of 
                        any exemption available to the agency under 
                        section 552 of title 5, United States Code.
                    (C) Information to be kept confidential.--For 
                purposes of section 1905 of title 18, United States 
                Code--
                            (i) the Commission shall be considered an 
                        agency of the Federal Government; and
                            (ii) any individual employed by an 
                        individual, entity, or organization that is a 
                        party to a contract with the Commission under 
                        this section shall be considered an employee of 
                        the Commission.
    (d) Commission Personnel Matters.--
            (1) Members.--
                    (A) Non-federal employees.--A member of the 
                Commission who is not an officer or employee of the 
                Federal Government shall be compensated at a rate equal 
                to the daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which the member is 
                engaged in the performance of the duties of the 
                Commission.
                    (B) Federal employees.--A member of the Commission 
                who is an officer or employee of the Federal Government 
                shall serve without compensation in addition to the 
                compensation received for the services of the member as 
                an officer or employee of the Federal Government.
                    (C) Travel expenses.--A member of the Commission 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for an 
                employee of an agency under subchapter I of chapter 57 
                of title 5, United States Code, while away from the 
                home or regular place of business of the member in the 
                performance of the duties of the Commission.
            (2) Staff.--
                    (A) Executive director.--Not later than 30 days 
                after the Chairperson and Vice-Chairperson of the 
                Commission are selected under subsection (a)(4), the 
                Chairperson and Vice-Chairperson shall jointly select 
                an individual to serve as executive director of the 
                Commission.
                    (B) Additional staff.--The Chairperson of the 
                Commission may, without regard to the civil service 
                laws (including regulations), appoint and terminate the 
                appointment of such other additional personnel as are 
                necessary to enable the Commission to perform the 
                duties of the Commission.
                    (C) Confirmation of executive director.--The 
                employment of an executive director under this 
                paragraph shall be subject to confirmation by the 
                Commission.
                    (D) Compensation.--
                            (i) In general.--Except as provided in 
                        clause (ii), the Chairperson of the Commission 
                        may fix the compensation of the executive 
                        director and other personnel without regard to 
                        the provisions of chapter 51 and subchapter III 
                        of chapter 53 of title 5, United States Code, 
                        relating to classification of positions and 
                        General Schedule pay rates.
                            (ii) Maximum rate of pay.--The rate of pay 
                        for the executive director and other personnel 
                        shall not exceed the rate payable for level II 
                        of the Executive Schedule under section 5316 of 
                        title 5, United States Code.
            (3) Detail of federal government employees.--
                    (A) In general.--An employee of the Federal 
                Government may be detailed to the Commission, without 
                reimbursement, for such period of time as is permitted 
                by law.
                    (B) Civil service status.--The detail of the 
                employee shall be without interruption or loss of civil 
                service status or privilege.
            (4) Procurement of temporary and intermittent services.--
        The Chairperson, Vice-Chairperson, and executive director of 
        the Commission may procure temporary and intermittent services 
        in accordance with section 3109(b) of title 5, United States 
        Code, at rates for individuals that do not exceed the daily 
        equivalent of the annual rate of basic pay prescribed for level 
        IV of the Executive Schedule under section 5316 of that title.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (f) Termination.--The Commission shall terminate on the date that 
is 60 days after the date on which the Commission submits the report 
under subsection (b)(2).

SEC. 11061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL 
              FARMWORKERS.

    Section 2281 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (42 U.S.C. 5177a) is amended to read as follows:

``SEC. 2281. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL 
              FARMWORKERS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        public agency, community-based organization, or network of 
        community-based organizations with tax-exempt status under 
        section 501(c)(3) of the Internal Revenue Code of 1986, that 
        has at least 5 years of demonstrated experience in representing 
        and providing emergency services to low-income migrant or 
        seasonal farmworkers.
            ``(2) Low-income migrant or seasonal farmworker.--The term 
        `low-income migrant or seasonal farmworker' means an 
        individual--
                    ``(A) who has, during any consecutive 12-month 
                period within the preceding 24-month period, performed 
                farm work for wages;
                    ``(B) who has received not less than \1/2\ of the 
                total income of the individual from, or been employed 
                at least \1/2\ of total work time in, farm work; and
                    ``(C) whose annual family income during the 12-
                month period described in paragraph (1) does not exceed 
                the higher of, as determined by the Secretary--
                            ``(i) 185 percent of the most recent annual 
                        Federal Poverty Income Guidelines published by 
                        the Department of Health and Human Services; or
                            ``(ii) 70 percent of the lower living 
                        standard income level.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Grants Available.--The Secretary may make grants to eligible 
entities if the Secretary determines that a local, State, or national 
emergency or disaster has caused low-income migrant or seasonal 
farmworkers--
            ``(1) to lose income;
            ``(2) to be unable to work; or
            ``(3) to stay home or return home in anticipation of work 
        shortages.
    ``(c) Use of Funds.--As a condition of receiving a grant under 
subsection (b), an eligible entity shall use the grant to provide 
emergency services to low-income migrant or seasonal farmworkers, with 
a focus on--
            ``(1) assistance that allows low-income migrant or seasonal 
        farmworkers to meet or access other resources to meet short-
        term emergency family needs for food, clothing, employment, 
        transportation, and housing;
            ``(2) assistance that allows low-income and migrant 
        seasonal farmworkers to remain in a disaster area; and
            ``(3) such other priorities that the Secretary determines 
        to be appropriate.
    ``(d) Disaster Fund.--
            ``(1) In general.--The Secretary shall maintain a disaster 
        fund of $2,000,000 to be used for immediate assistance for 
        events described in subsection (b).
            ``(2) Funding.--There are authorized to be appropriated to 
        the Secretary such sums as are necessary to maintain the 
        disaster fund at $2,000,000 for each of fiscal years 2008 
        through 2012.''.

SEC. 11062. 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 section 
$15,000,000 for the period of fiscal years 2008 through 2012.

SEC. 11063. INVASIVE SPECIES MANAGEMENT, HAWAII.

    (a) Definitions.--In this section:
            (1) Secretaries.--The term ``Secretaries'' means--
                    (A) the Secretary of the Interior;
                    (B) the Secretary of Agriculture; and
                    (C) the Secretary of Homeland Security.
            (2) Secretary concerned.--The term ``Secretary concerned'' 
        means--
                    (A) the Secretary of the Interior, with respect to 
                matters under the jurisdiction of the Department of the 
                Interior;
                    (B) the Secretary of Agriculture, with respect to 
                matters under the jurisdiction of the Department of 
                Agriculture; and
                    (C) the Secretary of Homeland Security, with 
                respect to matters under the jurisdiction of the 
                Department of Homeland Security.
            (3) State.--The term ``State'' means the State of Hawaii.
    (b) Controlling Introduction and Spread of Invasive Species and 
Diseases in the State.--
            (1) Consultation and cooperation.--The Secretaries 
        concerned shall--
                    (A) with respect to restricting the introduction or 
                movement of invasive species and diseases into the 
                State, consult and cooperate with the State; and
                    (B) in carrying out the activities described in 
                this subsection, consult and cooperate with appropriate 
                agencies and officers with experience relating to 
                quarantine procedures, natural resources, conservation, 
                and law enforcement of--
                            (i) the Department of Homeland Security;
                            (ii) the Department of Commerce;
                            (iii) the United States Treasury; and
                            (iv) the State.
            (2) Development of collaborative federal and state 
        procedures.--The Secretaries, in collaboration with the State, 
        shall--
                    (A) develop procedures to minimize the introduction 
                of invasive species into the State; and
                    (B) submit to Congress annual reports describing 
                progress made and results achieved in carrying out the 
                procedures.
            (3) Expedited consideration of state and local control 
        proposals.--
                    (A) Expedited process.--Not later than 1 year after 
                the date of enactment of this Act, the Secretaries 
                shall establish an expedited process for the State and 
                political subdivisions of the State under which the 
                State and political subdivisions may, through the 
                submission of an application, seek approval of the 
                Secretary concerned to impose a general or specific 
                prohibition or restriction on the introduction or 
                movement of invasive species or diseases from domestic 
                or foreign locations to the State that is in addition 
                to the applicable prohibition or restriction imposed by 
                the Secretary concerned.
                    (B) Review period.--Not later than 60 days after 
                the date of receipt by the Secretary concerned of an 
                application under subparagraph (A) that the Secretary 
                concerned determines to be a completed application, the 
                Secretary concerned shall--
                            (i) review the completed application;
                            (ii) assess each potential risk with 
                        respect to the completed application; and
                            (iii) approve or disapprove the completed 
                        application.
            (4) Response to emergency threats.--
                    (A) In general.--The State may carry out an 
                emergency action to impose a prohibition or restriction 
                on the entry of an invasive species or disease that is 
                in addition to the applicable prohibition or 
                restriction imposed by the Secretary concerned if--
                            (i) the State has submitted to the 
                        Secretary concerned a completed application 
                        under paragraph (3) that is pending approval by 
                        the Secretary concerned; and
                            (ii) an emergency or imminent threat from 
                        an invasive species or disease occurs in the 
                        State during the period in which the completed 
                        application described in clause (i) is pending 
                        approval by the Secretary concerned.
                    (B) Notice.--Before carrying out an emergency 
                action under subparagraph (A), the State shall provide 
                written notice to the Secretary concerned.
                    (C) Period of emergency action.--If, by the date 
                that is 10 days after the date of receipt of a written 
                notice under subparagraph (B), the Secretary concerned 
                does not object to the emergency action that is the 
                subject of the notice, the State may carry out the 
                emergency action during the 60-day period beginning on 
                that date.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretaries such sums as are necessary to carry out 
this section for each of fiscal years 2008 through 2012.

SEC. 11064. 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 11056) in the conduct of oversight and evaluation of civil 
rights compliance.

SEC. 11065. 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. 11066. 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 a nonprofit, community-based organization, or 
a consortium of nonprofit, community-based organizations, agricultural 
labor organizations, farmer or rancher cooperatives, and public 
entities, that has the capacity (including demonstrated experience in 
providing training, housing, or emergency services to migrant and 
seasonal farmworkers) to assist agricultural employers and farmworkers 
with improvements in the supply, stability, safety, and training of the 
agricultural labor force.
    (b) Grants.--
            (1) In general.--The Secretary may provide grants to 
        eligible entities for use in providing services to assist 
        farmworkers in securing, retaining, upgrading, or returning 
        from agricultural jobs.
            (2) Eligible services.--The services referred to in 
        paragraph (1) include--
                    (A) agricultural upgrading and cross training;
                    (B) the provision of agricultural labor market 
                information;
                    (C) transportation;
                    (D) short-term housing, including housing for 
                unaccompanied farmworkers and at migrant rest stops;
                    (E) travelers' aid;
                    (F) workplace literacy and assistance with English 
                as a second language;
                    (G) health and safety instruction, including ways 
                of safeguarding the food supply of the United States; 
                and
                    (H) limited emergency and financial assistance, in 
                cases in which the Secretary determines that a 
                national, State, or local emergency or disaster has 
                caused migrant or seasonal farmworkers to lose income 
                or employment.
            (3) Emergency assistance.--Any emergency services provided 
        using funds from a grant in accordance with paragraph (2)(H)--
                    (A) shall be consistent with section 2281 of the 
                Food, Agriculture, Conservation, and Trade Act of 1990 
                (as amended by section 11061);
                    (B) shall be focused on assistance to allow low-
                income farmworkers and their families to meet short-
                term needs for such food, clothing, employment, 
                transportation, and housing as are necessary to regain 
                employment or return home; and
                    (C) may include such other types of assistance as 
                the Secretary determines to be appropriate.
    (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.

SEC. 11067. 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 regulations.
            ``(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.
            ``(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 
        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 
        the establishment--
                    ``(A) is an eligible establishment; and
                    ``(B) is located in a State that has designated 
                personnel to inspect the eligible establishment.
            ``(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 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 enactment of this section; or
                    ``(iii) was a State establishment as of the date of 
                enactment of this section that--
                            ``(I) as of the date of 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 
                        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 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).
    ``(c) Reimbursement of State Costs.--
            ``(1) In general.--Except as provided in paragraph (2), 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.
            ``(2) Microbiological verification testing.--The Secretary 
        may reimburse a State for 100 percent of eligible State costs 
        relating to the inspection of selected establishments in the 
        State, if the State provides additional microbiological 
        verification testing of the selected establishments, using 
        standards under this Act, that is in excess of the typical 
        verification testing frequency of the Federal Government with 
        respect to Federal establishments.
    ``(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 2 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 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 under this section.
    ``(f) Inspection Training 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 an inspection training 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 inspection training 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 inspection training division; and
                    ``(B) possess appropriate qualifications and 
                expertise relating to the duties of the inspection 
                training 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 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 undergone all necessary inspection training and 
        certification to assist the Secretary in the administration and 
        enforcement of this Act, including regulations.
            ``(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.
            ``(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 the 
        establishment--
                    ``(A) is an eligible establishment; and
                    ``(B) is located in a State that has designated 
                personnel to inspect the eligible establishment.
            ``(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 enactment of this section, 
                ships in interstate commerce carcasses, 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 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 
                enactment of this section; or
                    ``(iii) was a State establishment as of the date of 
                enactment of this section that--
                            ``(I) as of the date of 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 
                        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 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.--
            ``(1) In general.--Except as provided in paragraph (2), 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.
            ``(2) Microbiological verification testing.--The Secretary 
        may reimburse a State for 100 percent of eligible State costs 
        relating to the inspection of selected establishments in the 
        State, if the State provides additional microbiological 
        verification testing of the selected establishments, using 
        standards under this Act, that is in excess of the typical 
        verification testing frequency of the Federal Government with 
        respect to Federal establishments.
    ``(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--
                            ``(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 2 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 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 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 enactment of this section, the Secretary shall promulgate 
        final regulations in accordance with paragraph (1).''.

SEC. 11068. 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
                    ``(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. 11069. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE TO 
              COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

    (a) Elimination.--Section 3716 of title 31, United States Code, is 
amended by striking subsection (e) and inserting the following:
    ``(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.
    ``(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. 11070. REPORT ON STORED QUANTITIES OF PROPANE.

    (a) Report.--
            (1) In general.--Not later than 240 days after the date of 
        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 and 
        the Committee on Homeland Security and Government Affairs of 
        the Senate and the Committee on Agriculture and the Committee 
        on Homeland Security 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)--
                    (A) shall include, at a minimum, a description of--
                            (i) 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;
                            (ii) 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;
                            (iii) the number of propane facilities 
                        initially determined to be high risk by the 
                        Secretary;
                            (iv) 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;
                            (v) the number of propane facilities that 
                        file an appeal of a finding under the final 
                        rule described in paragraph (1); and
                            (vi) 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
                    (B) may include a classified annex, as the 
                Secretary determines to be appropriate.
    (b) Educational Outreach.--
            (1) In general.--Not later than 30 days after the date of 
        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.
            (2) Use of council.--In conducting outreach activities 
        under paragraph (1), the Secretary may use the Food and 
        Agricultural Sector Coordinating Council established under the 
        national infrastructure protection plan to facilitate the 
        provision of education to rural areas regarding the top screen 
        consequence assessment requirement.

SEC. 11071. CLOSURE OF CERTAIN COUNTY FSA OFFICES.

    (a) Definition of Critical Access County FSA Office.--
            (1) In general.--In this section, the term ``critical 
        access county FSA office'' means an office of the Farm Service 
        Agency that, during the period described in paragraph (2), is--
                    (A) proposed to be closed;
                    (B) proposed to be closed with the closure delayed 
                until after January 1, 2008, due to additional review 
                pursuant to the third proviso of matter under the 
                heading ``salaries and expenses'' under the heading 
                ``Farm Service Agency'' of the Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Agencies Appropriations Act, 2006 (Public Law 109-97; 
                119 Stat. 2131); or
                    (C) included on a list of critical access county 
                FSA offices determined in accordance with that Act and 
                submitted to the Committee on Agriculture, Nutrition, 
                and Forestry of the Senate by the Secretary on October 
                24, 2007.
            (2) Description of period.--The period referred to in 
        paragraph (1) is the period beginning on November 10, 2005, and 
        ending on December 31, 2007.
            (3) Exception.--The term ``critical access county FSA 
        office'' does not include any office of the Farm Service Agency 
        that--
                    (A) is located not more than 20 miles from another 
                office of the Farm Service Agency; or
                    (B) employs no full-time equivalent employees as of 
                the date of enactment of this Act.
    (b) Extension of Period of Operation.--
            (1) In general.--Notwithstanding any other provision of 
        law, except as provided in paragraph (3), none of the funds 
        made available to the Secretary by any Act may be used to pay 
        the salaries or expenses of any officer or employee of the 
        Department of Agriculture to close any critical access county 
        FSA office during the period beginning on date of enactment and 
        ending on September 30, 2012.
            (2) Number of employees.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), the Secretary shall ensure that each critical 
                access county FSA office in each State maintains a 
                staff level of not less than 3 full-time equivalent 
                employees during the period described in paragraph (1).
                    (B) Staffing flexibility.--Notwithstanding 
                subparagraph (A) and subject to subparagraph (C), an 
                employee required to meet the staff level of a critical 
                access county FSA office in a State as described in 
                subparagraph (A) may be employed at any other county 
                office of the Farm Service Agency in that State, as the 
                Secretary determines to be appropriate.
                    (C) Minimum staffing level.--A critical access 
                county FSA office shall be staffed by not less than 1 
                full-time equivalent employee during the period 
                described in paragraph (1).
            (3) Exception.--The Secretary may close a critical access 
        county FSA office only on concurrence in the determination to 
        close the critical access county FSA office by--
                    (A) Congress; and
                    (B) the applicable State Farm Service Agency 
                committee.

SEC. 11072. ACTION BY PRESIDENT AND CONGRESS BASED ON REPORT.

    (a) President.--Not later than 180 days after the date on which the 
Congressional Bipartisan Food Safety Commission established by section 
11060(a)(1)(A) submits to the President and Congress the report 
required under section 11060(b)(3), the President shall--
            (1) review the report; and
            (2) submit to Congress proposed legislation based on the 
        recommendations for statutory language contained in the report, 
        together with an explanation of the differences, if any, 
        between the recommendations for statutory language contained in 
        the report and the proposed legislation.
    (b) Congress.--On receipt of the proposed legislation described in 
subsection (a), the appropriate committees of Congress may hold such 
hearings and carry out such other activities as are necessary for 
appropriate consideration of the recommendations for statutory language 
contained in the report and the proposed legislation.
    (c) Sense of Senate.--It is the sense of the Senate that--
            (1) it is vital for Congress to provide to food safety 
        agencies of the Federal Government, including the Department of 
        Agriculture and the Food and Drug Administration, additional 
        resources, and direction with respect to ensuring the safety of 
        the food supply of the United States;
            (2) additional inspectors are required to improve the 
        ability of the Federal Government to safeguard the food supply 
        of the United States;
            (3) because of the increasing volume of international trade 
        in food products, the Federal Government should give priority 
        to entering into agreements with trading partners of the United 
        States with respect to food safety; and
            (4) based on the report of the Commission referred to in 
        subsection (a) and the proposed legislation referred to in 
        subsection (b), Congress should work toward a comprehensive 
        legislative response to the issue of food safety.

SEC. 11073. PAYMENTS TO DECEASED INDIVIDUALS AND ESTATES.

    (a) In General.--Notwithstanding any other provision of law, the 
Secretary shall not provide to any deceased individual or estate of 
such an individual any agricultural payment under this Act, or an Act 
amended by this Act, after the date that is 2 program years (as 
determined by the Secretary with respect to the applicable payment 
program) after the date of death of the individual.
    (b) Report.--As soon as practicable after the date of enactment of 
this Act, 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, and 
post on the website of the Department of Agriculture, a report that 
describes, for the period covered by the report--
            (1) the number and aggregate amount of agricultural 
        payments described in subsection (a) provided to deceased 
        individuals and estates of deceased individuals; and
            (2) for each such payment, the length of time the estate of 
        the deceased individual that received the payment has been 
        open.

SEC. 11074. GAO REPORT ON ACCESS TO HEALTH CARE FOR FARMERS.

    (a) Report.--Not later than November 30, 2008, the Comptroller 
General of the United States shall submit to Congress a report on 
access to health care for rural Americans and farmers.
    (b) Consultation.--The report shall be done in consultation with 
the Rural Health Research Centers in the Department of Health and Human 
Services Office of Rural Health Policy.
    (c) Elements.--The report required by subsection (a) shall include 
the following:
            (1) Assessment.--An assessment of access to health care for 
        rural Americans, including the following:
                    (A) An overview of the rates of the uninsured among 
                people living in rural areas in the United States and 
                possible factors that cause the uninsurance, 
                specifically--
                            (i) a synthesis of existing research on the 
                        uninsured living in rural America; and
                            (ii) a detailed analysis of the uninsured 
                        and the factors that contribute in uninsurance 
                        in 3 to 4 rural areas.
            (2) Second assessment.--An assessment of access to health 
        care for farmers, including the following:
                    (A) An overview of the rates of the uninsured among 
                farmers in the United States and the factors that cause 
                the uninsurance, specifically--
                            (i) factors, such as land assets, that keep 
                        low-income farmers from qualifying for public 
                        insurance programs;
                            (ii) the effects of the high price of 
                        health insurance for individuals purchasing in 
                        the individual, non-group market; and
                            (iii) any other significant factor that 
                        contributes to the rates of uninsurance among 
                        farmers.
                    (B) The extent to which farmers depend on a 
                spouse's off-farm job for health care coverage.
                    (C) The effects of uninsurance on farmers and their 
                families.
            (3) Role of congress.--Recommendations regarding the 
        potential role of Congress in supporting increased access to 
        health insurance for farmers and their families, and rural 
        Americans.

SEC. 11075. CONVEYANCE OF LAND TO CHIHUAHUAN DESERT NATURE PARK.

    (a) Definitions.--In this section:
            (1) Board.--The term ``Board'' means the Chihuahuan Desert 
        Nature Park Board.
            (2) Nature park.--The term ``Nature Park'' means the 
        Chihuahuan Desert Nature Park, Inc., a nonprofit corporation in 
        the State of New Mexico.
    (b) Conveyance of Land.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, subject to valid existing rights and 
        subsection (c), the Secretary shall convey to the Nature Park, 
        by quitclaim deed, 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.
    (c) Conditions.--The conveyance of land under subsection (b) shall 
be subject to--
            (1) the reservation by the United States of all mineral and 
        subsurface rights to the land, including any geothermal 
        resources;
            (2) the condition that the 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 (d); and
            (5) any other terms and conditions that the Secretary 
        determines to be appropriate.
    (d) Reversion.--If the land conveyed under subsection (b) is no 
longer used for the purposes described in subsection (c)(4)(A)--
            (1) the land may, at the discretion of the Secretary, 
        revert to the United States; and
            (2) if the Secretary chooses to have the land revert to the 
        United States, the Secretary shall--
                    (A) determine whether the land is environmentally 
                contaminated, including contamination from hazardous 
                wastes, hazardous substances, pollutants, contaminants, 
                petroleum, or petroleum by-products; and
                    (B) 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.
    (e) Withdrawal.--All federally owned mineral and subsurface rights 
to the land described in subsection (b)(2) 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.
    (f) Water Rights.--Nothing in this section authorizes the 
conveyance of water rights to the Nature Park.

SEC. 11076. 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)(1)--
                    (A) by striking ``any person to knowingly sponsor'' 
                and inserting ``any person--
                    ``(A) to knowingly sponsor'';
                    (B) by striking the period at the end and inserting 
                ``; or''; and
                    (C) by adding at the end the following:
                    ``(B) to knowingly sponsor or exhibit an animal in 
                a dog fighting venture.'';
            (2) in subsection (b)--
                    (A) by striking ``any person to knowingly sell'' 
                and inserting ``any person--
            ``(1) to knowingly sell'';
                    (B) by striking the period at the end and inserting 
                ``; or''; and
                    (C) by adding at the end the following:
            ``(2) to knowingly sell, buy, possess, train, transport, 
        deliver, or receive for purposes of transportation, any dog or 
        other animal, for the purposes of having the dog or other 
        animal, or offspring of the dog or other animal, participate in 
        a dog fighting venture.'';
            (3) in the last sentence of subsection (f), by striking 
        ``by the United States''; and
            (4) in subsection (g) --
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following:
            ``(6) the term `dog fighting venture'--
                    ``(A) means any event that--
                            ``(i) involves a fight between at least 2 
                        animals;
                            ``(ii) includes at least 1 dog; and
                            ``(iii) is conducted for purposes of sport, 
                        wagering, or entertainment; and
                    ``(B) does not include any activity the primary 
                purpose of which involves the use of 1 or more animals 
                to hunt another animal; and''.
    (b) Enforcement of Animal Fighting Prohibitions.--Section 49 of 
title 18, United States Code, is amended to read as follows:
``Sec. 49. Enforcement of animal fighting prohibitions
    ``(a) Animal Fighting Ventures.--Whoever violates subsection 
(a)(1)(A), (b)(1), (c), or (e) of section 26 of the Animal Welfare Act 
(7 U.S.C. 2156) shall be fined under this title, imprisoned for not 
more than 3 years, or both, for each violation.
    ``(b) Dog Fighting Ventures.--Whoever violates subsection (a)(1)(B) 
or (b)(2) of section 26 of the Animal Welfare Act shall be fined under 
this title, imprisoned for not more than 5 years, or both, for each 
violation.''.

SEC. 11077. 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 promulgate regulations--
            (1) to implement, as appropriate, each issue identified in 
        the document entitled ``Lessons Learned and Revisions under 
        Consideration for APHIS' Biotechnology Framework'', dated 
        October 4, 2007; and
            (2) to improve the management and oversight of articles 
        regulated under the Plant Protection Act (7 U.S.C. 7701 et 
        seq.).
    (b) Inclusions.--In promulgating regulations under subsection (a), 
the Secretary shall include provisions 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;
            (8) standards for quality management systems and effective 
        research (including laboratory, greenhouse, and field 
        research); and
            (9) the design of electronic permits to store documents and 
        other information relating to the permit and notification 
        processes.
    (c) Consideration.--In promulgating regulations under 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. 11078. INVASIVE PEST AND DISEASE EMERGENCY RESPONSE FUNDING 
              CLARIFICATION.

    The Secretary may provide funds on an emergency basis to States to 
assist the States in combating invasive pest and disease outbreaks for 
any appropriate period of years after the date of initial detection by 
a State of an invasive pest or disease outbreak, as determined by the 
Secretary.

SEC. 11079. PROTECTION OF PETS.

    (a) Short Title.--This section may be cited as the ``Pet Safety and 
Protection Act of 2007''.
    (b) Research Facilities.--Section 7 of the Animal Welfare Act (7 
U.S.C. 2137) is amended to read as follows:

``SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FACILITIES.

    ``(a) Definition of Person.--In this section, the term `person' 
means any individual, partnership, firm, joint stock company, 
corporation, association, trust, estate, pound, shelter, or other legal 
entity.
    ``(b) Use of Dogs and Cats.--No research facility or Federal 
research facility may use a dog or cat for research or educational 
purposes if the dog or cat was obtained from a person other than a 
person described in subsection (d).
    ``(c) Selling, Donating, or Offering Dogs and Cats.--No person, 
other than a person described in subsection (d), may sell, donate, or 
offer a dog or cat to any research facility or Federal research 
facility.
    ``(d) Permissible Sources.--A person from whom a research facility 
or a Federal research facility may obtain a dog or cat for research or 
educational purposes under subsection (b), and a person who may sell, 
donate, or offer a dog or cat to a research facility or a Federal 
research facility under subsection (c), shall be--
            ``(1) a dealer licensed under section 3 that has bred and 
        raised the dog or cat;
            ``(2) a publicly owned and operated pound or shelter that--
                    ``(A) is registered with the Secretary;
                    ``(B) is in compliance with section 28(a)(1) and 
                with the requirements for dealers in subsections (b) 
                and (c) of section 28; and
                    ``(C) obtained the dog or cat from its legal owner, 
                other than a pound or shelter;
            ``(3) a person that is donating the dog or cat and that--
                    ``(A) bred and raised the dog or cat; or
                    ``(B) owned the dog or cat for not less than 1 year 
                immediately preceding the donation;
            ``(4) a research facility licensed by the Secretary; and
            ``(5) a Federal research facility licensed by the 
        Secretary.
    ``(e) Penalties.--
            ``(1) In general.--A person that violates this section 
        shall be fined $1,000 for each violation.
            ``(2) Additional penalty.--A penalty under this subsection 
        shall be in addition to any other applicable penalty.
    ``(f) No Required Sale or Donation.--Nothing in this section 
requires a pound or shelter to sell, donate, or offer a dog or cat to a 
research facility or Federal research facility.
    ``(g) Limitation.--The Secretary shall phase out, by the date that 
is 5 years after the date of enactment of this subsection, the use of 
random source dogs and cats from class B dealers in accordance with a 
schedule established by the Secretary.''.
    (c) Federal Research Facilities.--Section 8 of the Animal Welfare 
Act (7 U.S.C. 2138) is amended--
            (1) by striking ``sec. 8. No department'' and inserting the 
        following:

``SEC. 8. FEDERAL RESEARCH FACILITIES.

    ``Except as provided in section 7, no department'';
            (2) by striking ``research or experimentation or''; and
            (3) by striking ``such purposes'' and inserting ``that 
        purpose''.
    (d) Certification.--Section 28(b)(1) of the Animal Welfare Act (7 
U.S.C. 2158(b)(1)) is amended by striking ``individual or entity'' and 
inserting ``research facility or Federal research facility''.

SEC. 11080. EXEMPTION FROM AQI USER FEES.

    (a) In General.--Notwithstanding any other provision of law 
(including regulations), the owner or operator of any commercial truck 
described in subsection (b) shall be exempt from the payment of any 
agricultural quarantine and inspection user fee.
    (b) Commercial Trucks.--A commercial truck referred to in 
subsection (a) is a commercial truck that--
            (1) originates in the State of Alaska and reenters the 
        customs territory of the United States directly from Canada; or
            (2) originates in the customs territory of the United 
        States (other than the State of Alaska) and transits through 
        the customs territory of Canada directly before entering the 
        State of Alaska.
    (c) Sealed Cargo Areas.--A cargo area of any commercial truck 
carrying an agricultural product shall remain sealed during transit 
through Canada.

SEC. 11081. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY.

    (a) Reports on Conference Expenditures.--For fiscal year 2008 and 
each fiscal year thereafter, the Secretary shall submit to the 
Inspector General of the Department of Agriculture quarterly reports 
that describe the costs and contracting procedures relating to each 
conference or meeting held by the Department of Agriculture during the 
quarter covered by the report for which the cost to the Federal 
Government was more than $10,000.
    (b) Requirements.--Each report submitted under subsection (a) shall 
include, for each conference and meeting covered by the report--
            (1) a description of the number participants attending, and 
        the purpose of those participants for attending, the conference 
        or meeting;
            (2) a detailed statement of the costs incurred by the 
        Federal Government relating to that conference or meeting, 
        including--
                    (A) the cost of any food or beverages;
                    (B) the cost of any audio-visual services;
                    (C) the cost of all related travel; and
                    (D) a discussion of the methodology used to 
                determine which costs relate to that conference or 
                meeting; and
            (3) a description of the contracting procedures relating to 
        that conference or meeting, including--
                    (A) whether contracts were awarded on a competitive 
                basis; and
                    (B) a discussion of any cost comparison conducted 
                by the Department of Agriculture in evaluating 
                potential contractors for any conference or meeting.
    (c) Travel Expenses.--
            (1) Definition of conference.--In this subsection, the term 
        ``conference'' means a meeting that--
                    (A) is held for consultation, education, awareness, 
                or discussion;
                    (B) includes participants who are not all employees 
                of the same agency;
                    (C) is not held entirely at an agency facility;
                    (D) involves costs associated with travel and 
                lodging for some participants; and
                    (E) is sponsored by 1 or more agencies, 1 or more 
                organizations that are not agencies, or a combination 
                of those agencies or organizations.
            (2) Report.--Not later than September 30 of each fiscal 
        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, and post 
        on the public website of the Department of Agriculture in a 
        searchable, electronic format, a report on each conference for 
        which the Department of Agriculture paid travel expenses during 
        the fiscal year covered by the report, including--
                    (A) a description of--
                            (i) the itemized expenses paid by the 
                        Department of Agriculture, including travel 
                        expenses and any other expenditures to support 
                        the conference;
                            (ii) the primary sponsor of the conference; 
                        and
                            (iii) the location of the conference; and
                    (B) in the case of a conference for which the 
                Department of Agriculture was the primary sponsor, a 
                statement that--
                            (i) justifies the location selected;
                            (ii) demonstrates the cost efficiency of 
                        the location;
                            (iii) specifies the date or dates of the 
                        conference;
                            (iv) includes a brief explanation of the 
                        ways in which the conference advanced the 
                        mission of the Department of Agriculture; and
                            (v) specifies the total number of 
                        individuals whose travel or attendance at the 
                        conference was paid for, in whole or in part, 
                        by the Department of Agriculture.

SEC. 11082. REPORT RELATING TO THE ENDING OF CHILDHOOD HUNGER IN THE 
              UNITED STATES.

    (a) Findings.--Congress finds that--
            (1) the United States has the highest rate of childhood 
        poverty in the industrialized world, with over \1/5\ of all 
        children of the United States living in poverty, and almost 
        half of those children living in extreme poverty;
            (2) childhood poverty in the United States is growing 
        rather than diminishing;
            (3) households with children experience hunger at more than 
        double the rate as compared to households without children;
            (4) hunger is a major problem in the United States, with 
        the Department of Agriculture reporting that 12 percent of the 
        citizens of the United States (approximately 35,000,000 
        citizens) could not put food on the table of those citizens at 
        some point during 2006;
            (5) of the 35,000,000 citizens of the United States that 
        have very low food security--
                    (A) 98 percent of those citizens worried that money 
                would run out before those citizens acquired more money 
                to buy more food;
                    (B) 96 percent of those citizens had to cut the 
                size of the meals of those citizens or even go without 
                meals because those citizens did not have enough money 
                to purchase appropriate quantities of food; and
                    (C) 94 percent of those citizens could not afford 
                to eat balanced meals;
            (6) the phrase ``people with very low food security'', a 
        new phrase in our national lexicon, in simple terms means 
        ``people who are hungry'';
            (7) 30 percent of black and Hispanic children, and 40 
        percent of low income children, live in households that do not 
        have access to nutritionally adequate diets that are necessary 
        for an active and healthy life;
            (8) the increasing lack of access of the citizens of the 
        United States to nutritionally adequate diets is a significant 
        factor from which the Director of the Centers for Disease 
        Control and Prevention concluded that ``during the past 20 
        years there has been a dramatic increase in obesity in the 
        United States'';
            (9) during the last 3 decades, childhood obesity has--
                    (A) more than doubled for preschool children and 
                adolescents; and
                    (B) more than tripled for children between the ages 
                of 6 and 11 years;
            (10) as of the date of enactment of this Act, approximately 
        9,000,000 children who are 6 years old or older are considered 
        obese;
            (11) scientists have demonstrated that there is an inverse 
        relation between obesity and doing well in school; and
            (12) a study published in Pediatrics found that ``6- to 11-
        year-old food-insufficient children had significantly lower 
        arithmetic scores and were more likely to have repeated a 
        grade, have seen a psychologist, and have had difficulty 
        getting along with other children''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) it is a national disgrace that many millions of 
        citizens of the United States, a disproportionate number of 
        whom are children, are going hungry in this great nation, which 
        is the wealthiest country in the history of the world;
            (2) because the strong commitment of the United States to 
        family values is deeply undermined when families and children 
        go hungry, the United States has a moral obligation to abolish 
        hunger; and
            (3) through a variety of initiatives (including large 
        funding increases in nutrition programs of the Federal 
        Government), the United States should abolish child hunger and 
        food insufficiency in the United States by the 2013.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the relevant committees of 
Congress a report that describes the best and most cost-effected manner 
by which the Federal Government could allocate an increased amount of 
funds to new programs and programs in existence as of the date of 
enactment of this Act to achieve the goal of abolishing child hunger 
and food insufficiency in the United States by 2013.

SEC. 11083. NATIONAL EMERGENCY GRANT TO ADDRESS EFFECTS OF GREENSBURG, 
              KANSAS TORNADO.

    (a) Definitions.--In this section:
            (1) Covered funds.--The term ``covered funds'' means funds 
        provided under section 173 of the Workforce Investment Act of 
        1998 (29 U.S.C. 2918) to a State that submits an application 
        under that section not earlier than May 4, 2007, for a national 
        emergency grant to address the effects of the May 4, 2007, 
        Greensburg, Kansas tornado.
            (2) Professional municipal services.--The term 
        ``professional municipal services'' means services that are 
        necessary to facilitate the recovery of Greensburg, Kansas from 
        that tornado, and necessary to plan for or provide basic 
        management and administrative services, which may include--
                    (A) the overall coordination of disaster recovery 
                and humanitarian efforts, oversight, and enforcement of 
                building code compliance, and coordination of health 
                and safety response units; or
                    (B) the delivery of humanitarian assistance to 
                individuals affected by that tornado.
    (b) Temporary Public Sector Employment and Services.--Covered funds 
may be used to provide temporary public sector employment and services 
authorized under section 173 of such Act to individuals affected by 
such tornado, including individuals who were unemployed on the date of 
the tornado, or who are without employment history, in addition to 
individuals who are eligible for disaster relief employment under 
section 173(d)(2) of such Act.
    (c) Professional Municipal Services.--Covered funds may be used to 
provide professional municipal services for a period of not more than 
24 months, by hiring or contracting with individuals or organizations 
(including individuals employed by contractors) that the State involved 
determines are necessary to provide professional municipal services.
    (d) Limitation.--Covered funds expended under this section may be 
spent on costs incurred not earlier than May 4, 2007.

SEC. 11084. REPORT ON PROGRAM RESULTS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall submit to Congress a report that describes--
            (1) each program of the Department of Agriculture that has 
        received a Program Assessment Rating Tool score of ``results 
        not demonstrated''; and
            (2) for each such program--
                    (A) the reasons that the program has not been able 
                to demonstrate results;
                    (B) the steps being taken by the program to address 
                those reasons; and
                    (C) a description of anything that might be 
                necessary to facilitate the demonstration of results.

SEC. 11085. SENSE OF THE SENATE ON THE U.S. DEPARTMENT OF AGRICULTURE'S 
              WILDLIFE SERVICES COMPETING AGAINST PRIVATE INDUSTRY FOR 
              NUISANCE BIRD CONTROL WORK.

    (a) Findings.--The Senate finds that:
            (1) The Wildlife Services Division of the Animal and Plant 
        Health Inspection Service of the Department of Agriculture 
        (referred to in this section as ``Wildlife Services'' helps 
        agricultural producers manage nuisance wildlife problems;
            (2) Wildlife Services personnel also manage nuisance 
        wildlife in non-agricultural settings, including urban areas;
            (3) Congress granted the Secretary the authority to engage 
        in wildlife animal damage activities in the Act of March 2, 
        1931, and the Rural Development, Agriculture and Related 
        Agencies Appropriations Act, 1988;
            (4) Title I of the Rural Development, Agriculture and 
        Related Agencies Appropriations Act, 1988 expressly prohibits 
        the Secretary from performing ``urban rodent'' control but does 
        not define the term;
            (5) There are more than 19,000 professional pest management 
        companies in the United States, a significant percentage of 
        which manage nuisance birds such as European starlings, house 
        sparrows, and pigeons in urban areas;
            (6) The industry employs more than 115,000 service 
        personnel who perform over 60,000,000 services annually for 
        residential and commercial clients in every market of the 
        United States;
            (7) In areas where the private sector has the capacity to 
        provide nuisance wildlife services, the limited resources of 
        Wildlife Services would be better used to assist agricultural 
        producers with management of predators and other depredatory 
        species that prey on livestock and sport and farm fish, and 
        damage crops.
    (b) Sense of the Senate.--It is the Sense of the Senate that--
            (1) Wildlife Services should neither compete nor condone 
        competition with the private sector for business regarding the 
        management of nuisance wildlife problems in urban areas where 
        private sector services are available;
            (2) Wildlife Services, prior to entering into any 
        cooperative agreement for wildlife damage management 
        activities, should inform cooperators of the availability of 
        and their right to acquire services from private service 
        providers;
            (3) the Secretary of Agriculture should ensure that 
        Wildlife Services does not aggressively compete with the 
        private pest management industry for European starling, house 
        sparrow, and pigeon control work in urban areas where private 
        sector services are available;
            (4) the Secretary of Agriculture should rely on scientific 
        and widely accepted definitions to define the term ``urban 
        rodent,'' as used in the Rural Development, Agriculture and 
        Related Agencies Appropriations Act of 1988, in order to 
        clarify the express restrictions in that law on Wildlife 
        Services activities;
            (5) the Secretary should direct Wildlife Services to work 
        with private industry, through a Memorandum of Understanding, 
        to delineate common areas of cooperation so that issues of 
        competition are addressed, taking into account the interests of 
        the wildlife resources and the need to manage damage caused by 
        that resource.

SEC. 11086. OVERSIGHT OF NATIONAL AQUATIC ANIMAL HEALTH PLAN.

    (a) Definitions.--In this section:
            (1) Advisory committee.--The term ``advisory committee'' 
        means the General Advisory Committee for Oversight of National 
        Aquatic Animal Health established under subsection (b)(1).
            (2) Plan.--The term ``plan'' means the national aquatic 
        animal health plan developed by the National Aquatic Animal 
        Health Task Force, composed of representatives of the 
        Department of Agriculture, the Department of Commerce 
        (including the National Oceanic and Atmospheric 
        Administration), and the Department of the Interior (including 
        the United States Fish and Wildlife Service).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Administrator of the Animal 
        and Plant Health Inspection Service.
    (b) General Advisory Committee for Oversight of National Aquatic 
Animal Health.--
            (1) Establishment.--Not later than 180 days after the date 
        of enactment of this Act, the Secretary, in consultation with 
        States and the private sector, shall establish an advisory 
        committee, to be known as the ``General Advisory Committee for 
        Oversight of National Aquatic Animal Health''.
            (2) Membership.--
                    (A) Composition.--The advisory committee shall--
                            (i) be composed equally of representatives 
                        of--
                                    (I) State and tribal governments; 
                                and
                                    (II) commercial aquaculture 
                                interests; and
                            (ii) consist of not more than 20 members, 
                        to be appointed by the Secretary, of whom--
                                    (I) not less than 3 shall be 
                                representatives of Federal departments 
                                or agencies;
                                    (II) not less than 6 shall be 
                                representatives of State or tribal 
                                governments that elect to participate 
                                in the plan under subsection (d);
                                    (III) not less than 6 shall be 
                                representatives of affected commercial 
                                aquaculture interests; and
                                    (IV) not less than 2 shall be 
                                aquatic animal health experts, as 
                                determined by the Secretary, of whom at 
                                least 1 shall be a doctor of veterinary 
                                medicine.
                    (B) Nominations.--The Secretary shall publish in 
                the Federal Register a solicitation for, and may 
                accept, nominations for members of the advisory 
                committee from appropriate entities, as determined by 
                the Secretary.
    (c) Recommendations.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the advisory committee shall develop and 
        submit to the Secretary recommendations regarding--
                    (A) the establishment and membership of appropriate 
                expert and representative commissions to efficiently 
                implement and administer the plan;
                    (B) disease- and species-specific best management 
                practices relating to activities carried out under the 
                plan; and
                    (C) the establishment and administration of the 
                indemnification fund under subsection (e).
            (2) Factors for consideration.--In developing 
        recommendations under paragraph (1), the advisory committee 
        shall take into consideration all emergency aquaculture-related 
        projects that have been or are being carried out under the plan 
        as of the date of submission of the recommendations.
            (3) Regulations.--After consideration of the 
        recommendations submitted under this subsection, the Secretary 
        shall promulgate regulations to establish a national aquatic 
        animal health improvement program, in accordance with the 
        Animal Health Protection Act (7 U.S.C. 8301 et seq.).
    (d) Participation by State and Tribal Governments and Private 
Sector.--
            (1) In general.--Any State or tribal government, and any 
        entity in the private sector, may elect to participate in the 
        plan.
            (2) Duties.--On election by a State or tribal government or 
        entity in the private sector to participate in the plan under 
        paragraph (1), the State or tribal government or entity shall--
                    (A) submit to the Secretary--
                            (i) a notification of the election; and
                            (ii) nominations for members of the 
                        advisory committee, as appropriate; and
                    (B) as a condition of participation, enter into an 
                agreement with the Secretary under which the State or 
                tribal government or entity--
                            (i) assumes responsibility for a portion of 
                        the non-Federal share of the costs of carrying 
                        out the plan, as described in paragraph (3); 
                        and
                            (ii) agrees to act in accordance with 
                        applicable disease- and species-specific best 
                        management practices relating to activities 
                        carried out under the plan by the State or 
                        tribal government or entity, as the Secretary 
                        determines to be appropriate.
            (3) Non-federal share.--
                    (A) In general.--Subject to subparagraph (B), the 
                non-Federal share of the cost of carrying out the 
                plan--
                            (i) shall be determined--
                                    (I) by the Secretary, in 
                                consultation with the advisory 
                                committee; and
                                    (II) on a case-by-case basis for 
                                each project carried out under the 
                                plan; and
                            (ii) may be provided by State and tribal 
                        governments and entities in the private sector 
                        in cash or in-kind.
                    (B) Deposits into indemnification fund.--The non-
                Federal share of amounts in the indemnification fund 
                provided by each State or tribal government or entity 
                in the private sector shall be--
                            (i) zero with respect to the initial 
                        deposit into the fund; and
                            (ii) determined on a case-by-case basis for 
                        each project carried out under the plan.
    (e) Indemnification Fund.--
            (1) Establishment.--The Secretary, in consultation with the 
        advisory committee, shall establish a fund, to be known as the 
        ``indemnification fund'', consisting of such amounts as are 
        initially deposited into the fund by the Secretary under 
        subsection (g)(1).
            (2) Uses.--The Secretary shall use amounts in the 
        indemnification fund only to compensate aquatic farmers--
                    (A) the entire inventory of livestock or gametes of 
                which is eradicated as a result of a disease control or 
                eradication measure carried out under the plan; or
                    (B) for the cost of disinfecting, destruction, and 
                cleaning products or equipment in response to a 
                depopulation order carried out under the plan.
            (3) Unused amounts.--Amounts remaining in the 
        indemnification fund on September 30 of the fiscal year for 
        which the amounts were appropriated--
                    (A) shall remain in the fund;
                    (B) may be used in any subsequent fiscal year in 
                accordance with paragraph (2); and
                    (C) shall not be reprogrammed by the Secretary for 
                any other use.
    (f) Review.--Not later than 2 years after the date of enactment of 
this Act, the Secretary, in consultation with the advisory committee, 
shall review, and submit to Congress a report regarding--
            (1) activities carried out under the plan during the 
        preceding 2 years;
            (2) activities carried out by the advisory committee; and
            (3) recommendations for funding for subsequent fiscal years 
        to carry out this section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2008 and 2009, of which--
            (1) not less than 50 percent shall be deposited into the 
        indemnification fund established under subsection (e) for use 
        in accordance with that subsection; and
            (2) not more than 50 percent shall be used for the costs of 
        carrying out the plan, including the costs of--
                    (A) administration of the plan;
                    (B) implementation of the plan;
                    (C) training and laboratory testing;
                    (D) cleaning and disinfection associated with 
                depopulation orders; and
                    (E) public education and outreach activities.

SEC. 11087. FOOD SAFETY IMPROVEMENT.

    (a) Reportable Food Registries.--
            (1) Federal meat inspection.--The Federal Meat Inspection 
        Act is amended--
                    (A) by redesignating section 411 (21 U.S.C. 680) as 
                section 412; and
                    (B) by inserting after section 410 (21 U.S.C. 679a) 
                the following:

``SEC. 411. REPORTABLE FOOD EVENT.

    ``(a) Definitions.--In this section:
            ``(1) Reportable food.--The term `reportable food' means 
        meat or a meat food product under this Act for which there is a 
        reasonable probability that the use of, or exposure to, the 
        meat or meat food product will cause serious adverse health 
        consequences or death to humans or animals.
            ``(2) Registry.--The term `Registry' means the registry 
        established under subsection (b).
            ``(3) Responsible party.--The term `responsible party', 
        with respect to a reportable food, means an operator of an 
        establishment subject to inspection under this Act at which the 
        reportable food is manufactured, processed, packed, or held.
    ``(b) Establishment.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Food and Energy Security Act of 2007, the 
        Secretary shall establish within the Department of Agriculture 
        a Reportable Meat Registry to which information concerning 
        reportable food may be submitted via an electronic portal, 
        from--
                    ``(A) employees of the Food Safety and Inspection 
                Service;
                    ``(B) Federal, State, and local public health 
                officials; and
                    ``(C) responsible parties.
            ``(2) Review by secretary.--The Secretary shall promptly 
        review and assess the information submitted under paragraph (1) 
        for the purposes of--
                    ``(A) identifying reportable food;
                    ``(B) submitting entries to the Registry;
                    ``(C) taking actions under subsection (c); and
                    ``(D) exercising other food safety authority of the 
                Secretary to protect the health and safety of humans 
                and animals.
    ``(c) Issuance of an Alert by the Secretary.--
            ``(1) In general.--The Secretary shall issue, or cause to 
        be issued, an alert or a notification with respect to a 
        reportable food using information from the Registry as the 
        Secretary considers necessary to protect the health and safety 
        of humans and animals.
            ``(2) Effect.--Paragraph (1) shall not affect the authority 
        of the Secretary to issue an alert or a notification under any 
        other provision of law.
    ``(d) Reporting and Notification.--
            ``(1) In general.--Except as provided in paragraph (2), as 
        soon as practicable, but in no case later than 24 hours after a 
        responsible party determines that meat or meat food product is 
        a reportable food, the responsible party shall--
                    ``(A) submit a report to the Secretary through the 
                Registry that includes information described in 
                subsection (e) (other than the information described in 
                paragraphs (7), (8), and (9) of that subsection); and
                    ``(B) investigate the cause of the event that 
                caused the meat or meat food product to be a reportable 
                food, if the reportable food originated with the 
                responsible party.
            ``(2) No report required.--A responsible party shall not be 
        required to submit a report under paragraph (1) if--
                    ``(A) the adulteration or misbranding originated 
                with the responsible party;
                    ``(B) the responsible party detected the 
                adulteration or misbranding prior to any transfer to 
                another person of the meat or meat food product; and
                    ``(C) the responsible party--
                            ``(i) corrected the adulteration or 
                        misbranding; or
                            ``(ii) destroyed or caused the destruction 
                        of the meat or meat food product.
            ``(3) Report number.--The Secretary shall ensure that, upon 
        submission of a report under paragraph (1), a unique number is 
        issued through the Registry to the person submitting the 
        report, by which the Secretary is able--
                    ``(A) to link reports about the reportable food 
                submitted and amended under this subsection; and
                    ``(B) identify the supply chain for the reportable 
                food.
            ``(4) Response to report submitted by a responsible 
        party.--After consultation with the responsible party that 
        submitted a report under paragraph (1), the Secretary may 
        require the responsible party to perform, as soon as 
        practicable, but in no case later than a time specified by the 
        Secretary, 1 or more of the following, as determined by the 
        Secretary:
                    ``(A) Amend the report submitted by the responsible 
                party under paragraph (1) to include the information 
                described in subsection (e)(8).
                    ``(B) Provide a notification--
                            ``(i) to the immediate previous source of 
                        the reportable food;
                            ``(ii) to the immediate subsequent 
                        recipient of the reportable food; and
                            ``(iii) that includes--
                                    ``(I) the information described in 
                                subsection (e) that the Secretary 
                                considers necessary;
                                    ``(II) the actions described under 
                                paragraph (5) that the recipient of the 
                                notification shall perform, as required 
                                by the Secretary; and
                                    ``(III) any other information that 
                                the Secretary may require.
            ``(5) Subsequent reports and notifications.--Except as 
        provided in paragraph (6), the Secretary may require a 
        responsible party to perform, as soon as practicable, but in no 
        case later than a time specified by the Secretary, after the 
        responsible party receives a notification under subparagraph 
        (C) or paragraph (4)(B), 1 or more of the following:
                    ``(A) Submit a report to the Secretary through the 
                Registry established under subsection (b) that includes 
                the information described in subsection (e) and other 
                information that the Secretary considers necessary.
                    ``(B) Investigate the cause of the adulteration or 
                misbranding if the adulteration or misbranding of the 
                reportable food may have originated with the 
                responsible party.
                    ``(C) Provide a notification--
                            ``(i) to the immediate previous source of 
                        the reportable food;
                            ``(ii) to the immediate subsequent 
                        recipient of the reportable food; and
                            ``(iii) that includes--
                                    ``(I) the information described in 
                                subsection (e) that the Secretary 
                                considers necessary;
                                    ``(II) the actions described under 
                                this paragraph that the recipient of 
                                the notification shall perform, as 
                                required by the Secretary; and
                                    ``(III) any other information that 
                                the Secretary may require.
            ``(6) Amended report.--If a responsible party receives a 
        notification under paragraph (4)(B) or paragraph (5)(C) with 
        respect to a reportable food after the responsible party has 
        submitted a report to the Secretary under paragraph (1) with 
        respect to the reportable food, the responsible party--
                    ``(A) shall not be required to submit an additional 
                report or make a notification under paragraph (5); and
                    ``(B) the responsible party shall amend the report 
                submitted by the responsible party under paragraph (1) 
                to include the information described in paragraph (7), 
                and, with respect to both the notification and the 
                report, paragraph (10) of subsection (e).
    ``(e) Information.--The information described in this subsection is 
the following:
            ``(1) The date on which the meat or meat food product was 
        determined to be a reportable food.
            ``(2) A description of the reportable food, including the 
        quantity of the reportable food.
            ``(3) The extent and nature of the adulteration or 
        misbranding.
            ``(4) If the adulteration or misbranding of the reportable 
        food may have originated with the responsible party, the 
        results of the investigation required under paragraph (1)(B) or 
        (5)(B) of subsection (d), as applicable, and when known.
            ``(5) The disposition of the reportable food, if known.
            ``(6) Product information typically found on packaging 
        including product codes, use-by dates, and the names of 
        manufacturers, packers, or distributors sufficient to identify 
        the reportable food.
            ``(7) Contact information for the responsible party.
            ``(8) The contact information for parties directly linked 
        in the supply chain and notified under paragraph (4)(B) or 
        (5)(C) of subsection (d), as applicable.
            ``(9) The information required by the Secretary to be 
        included in a notification provided by the responsible party 
        involved under paragraph (4)(B) or (5)(C) of subsection (d) or 
        required in a report under subsection (d)(5)(A).
            ``(10) The unique number described in subsection (d)(3).
    ``(f) Coordination of Federal, State, and Local Efforts.--
            ``(1) Food and drug administration.--In carrying out this 
        section, the Secretary shall--
                    ``(A) share information and coordinate regulatory 
                efforts with the Commissioner of Food and Drugs; and
                    ``(B) if the Secretary receives a report submitted 
                about a food within the jurisdiction of the 
                Commissioner, promptly provide the report to the 
                Commissioner.
            ``(2) States and localities.--In carrying out this section, 
        the Secretary shall work with the State and local public health 
        officials to share information that is not confidential 
        commercial or financial information protected under section 
        552(b)(4) of title 5, United States Code, and coordinate 
        regulatory efforts, in order to--
                    ``(A) help to ensure coverage of the safety of the 
                food supply chain, including those establishments 
                regulated by the States and localities that are not 
                regulated under this Act; and
                    ``(B) reduce duplicative regulatory efforts.
    ``(g) Maintenance and Inspection of Records.--
            ``(1) In general.--The responsible party shall maintain 
        records related to each report received, notification made, and 
        report submitted to the Secretary under this section for at 
        least 2 years.
            ``(2) Inspection.--A responsible party shall, at the 
        request of the Secretary, permit inspection of records 
        maintained under paragraph (1).
    ``(h) Request for Information.--Section 552 of title 5, United 
States Code, shall apply to any request for information regarding a 
record in the Registry.
    ``(i) Safety Report.--A report or notification under subsection (d) 
may be accompanied by a statement, which shall be part of any report 
released for public disclosure, that denies that the report or the 
notification constitutes an admission that the product involved caused 
or contributed to a death, serious injury, or serious illness.
    ``(j) Admission.--A report or notification under this section shall 
not be considered an admission that the reportable food involved is 
adulterated, misbranded, or caused or contributed to a death, serious 
injury, or serious illness.
    ``(k) Homeland Security Notification.--If, after receiving a report 
under subsection (d), the Secretary believes the reportable food may 
have been deliberately adulterated or misbranded, the Secretary shall--
            ``(1) immediately notify the Secretary of Homeland 
        Security; and
            ``(2) make relevant information from the Registry available 
        to the Secretary of Homeland Security.
    ``(l) Violations.--A responsible party that fails to comply with 
any requirement of this section shall be subject to an appropriate 
penalty under section 406.''.
            (2) Poultry products inspection act.--The Poultry Products 
        Inspection Act is amended by inserting after section 10 (21 
        U.S.C. 459) the following:

``SEC. 10A. REPORTABLE FOOD EVENT.

    ``(a) Definitions.--In this section:
            ``(1) Reportable food.--The term `reportable food' means 
        poultry or a poultry product under this Act for which there is 
        a reasonable probability that the use of, or exposure to, the 
        poultry or poultry product will cause serious adverse health 
        consequences or death to humans or animals.
            ``(2) Registry.--The term `Registry' means the registry 
        established under subsection (b).
            ``(3) Responsible party.--The term `responsible party', 
        with respect to a reportable food, means an operator of an 
        official establishment.
    ``(b) Establishment.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Food and Energy Security Act of 2007, the 
        Secretary shall establish within the Department of Agriculture 
        a Reportable Poultry Registry to which information concerning 
        reportable food may be submitted via an electronic portal, 
        from--
                    ``(A) employees of the Food Safety and Inspection 
                Service;
                    ``(B) Federal, State, and local public health 
                officials; and
                    ``(C) responsible parties.
            ``(2) Review by secretary.--The Secretary shall promptly 
        review and assess the information submitted under paragraph (1) 
        for the purposes of--
                    ``(A) identifying reportable food;
                    ``(B) submitting entries to the Registry;
                    ``(C) taking actions under subsection (c); and
                    ``(D) exercising other food safety authority of the 
                Secretary to protect the health and safety of humans 
                and animals.
    ``(c) Issuance of an Alert by the Secretary.--
            ``(1) In general.--The Secretary shall issue, or cause to 
        be issued, an alert or a notification with respect to a 
        reportable food using information from the Registry as the 
        Secretary considers necessary to protect the health and safety 
        of humans and animals.
            ``(2) Effect.--Paragraph (1) shall not affect the authority 
        of the Secretary to issue an alert or a notification under any 
        other provision of law.
    ``(d) Reporting and Notification.--
            ``(1) In general.--Except as provided in paragraph (2), as 
        soon as practicable, but in no case later than 24 hours after a 
        responsible party determines that poultry or poultry product is 
        a reportable food, the responsible party shall--
                    ``(A) submit a report to the Secretary through the 
                Registry that includes information described in 
                subsection (e) (other than the information described in 
                paragraphs (7), (8), and (9) of that subsection); and
                    ``(B) investigate the cause of the event that 
                caused the poultry or poultry product to be a 
                reportable food, if the reportable food originated with 
                the responsible party.
            ``(2) No report required.--A responsible party shall not be 
        required to submit a report under paragraph (1) if--
                    ``(A) the adulteration or misbranding originated 
                with the responsible party;
                    ``(B) the responsible party detected the 
                adulteration or misbranding prior to any transfer to 
                another person of the poultry or poultry product; and
                    ``(C) the responsible party--
                            ``(i) corrected the adulteration or 
                        misbranding; or
                            ``(ii) destroyed or caused the destruction 
                        of the poultry or poultry product.
            ``(3) Report number.--The Secretary shall ensure that, upon 
        submission of a report under paragraph (1), a unique number is 
        issued through the Registry to the person submitting the 
        report, by which the Secretary is able--
                    ``(A) to link reports about the reportable food 
                submitted and amended under this subsection; and
                    ``(B) identify the supply chain for the reportable 
                food.
            ``(4) Response to report submitted by a responsible 
        party.--After consultation with the responsible party that 
        submitted a report under paragraph (1), the Secretary may 
        require the responsible party to perform, as soon as 
        practicable, but in no case later than a time specified by the 
        Secretary, 1 or more of the following, as determined by the 
        Secretary:
                    ``(A) Amend the report submitted by the responsible 
                party under paragraph (1) to include the information 
                described in subsection (e)(8).
                    ``(B) Provide a notification--
                            ``(i) to the immediate previous source of 
                        the reportable food;
                            ``(ii) to the immediate subsequent 
                        recipient of the reportable food; and
                            ``(iii) that includes--
                                    ``(I) the information described in 
                                subsection (e) that the Secretary 
                                considers necessary;
                                    ``(II) the actions described under 
                                paragraph (5) that the recipient of the 
                                notification shall perform, as required 
                                by the Secretary; and
                                    ``(III) any other information that 
                                the Secretary may require.
            ``(5) Subsequent reports and notifications.--Except as 
        provided in paragraph (6), the Secretary may require a 
        responsible party to perform, as soon as practicable, but in no 
        case later than a time specified by the Secretary, after the 
        responsible party receives a notification under subparagraph 
        (C) or paragraph (4)(B), 1 or more of the following:
                    ``(A) Submit a report to the Secretary through the 
                Registry established under subsection (b) that includes 
                the information described in subsection (e) and other 
                information that the Secretary considers necessary.
                    ``(B) Investigate the cause of the adulteration or 
                misbranding if the adulteration or misbranding of the 
                reportable food may have originated with the 
                responsible party.
                    ``(C) Provide a notification--
                            ``(i) to the immediate previous source of 
                        the reportable food;
                            ``(ii) to the immediate subsequent 
                        recipient of the reportable food; and
                            ``(iii) that includes--
                                    ``(I) the information described in 
                                subsection (e) that the Secretary 
                                considers necessary;
                                    ``(II) the actions described under 
                                this paragraph that the recipient of 
                                the notification shall perform, as 
                                required by the Secretary; and
                                    ``(III) any other information that 
                                the Secretary may require.
            ``(6) Amended report.--If a responsible party receives a 
        notification under paragraph (4)(B) or paragraph (5)(C) with 
        respect to a reportable food after the responsible party has 
        submitted a report to the Secretary under paragraph (1) with 
        respect to the reportable food, the responsible party--
                    ``(A) shall not be required to submit an additional 
                report or make a notification under paragraph (5); and
                    ``(B) the responsible party shall amend the report 
                submitted by the responsible party under paragraph (1) 
                to include the information described in paragraph (7), 
                and, with respect to both the notification and the 
                report, paragraph (10) of subsection (e).
    ``(e) Information.--The information described in this subsection is 
the following:
            ``(1) The date on which the poultry or poultry product was 
        determined to be a reportable food.
            ``(2) A description of the reportable food, including the 
        quantity of the reportable food.
            ``(3) The extent and nature of the adulteration or 
        misbranding.
            ``(4) If the adulteration or misbranding of the reportable 
        food may have originated with the responsible party, the 
        results of the investigation required under paragraph (1)(B) or 
        (5)(B) of subsection (d), as applicable, and when known.
            ``(5) The disposition of the reportable food, if known.
            ``(6) Product information typically found on packaging 
        including product codes, use-by dates, and the names of 
        manufacturers, packers, or distributors sufficient to identify 
        the reportable food.
            ``(7) Contact information for the responsible party.
            ``(8) The contact information for parties directly linked 
        in the supply chain and notified under paragraph (4)(B) or 
        (5)(C) of subsection (d), as applicable.
            ``(9) The information required by the Secretary to be 
        included in a notification provided by the responsible party 
        involved under paragraph (4)(B) or (5)(C) of subsection (d) or 
        required in a report under subsection (d)(5)(A).
            ``(10) The unique number described in subsection (d)(3).
    ``(f) Coordination of Federal, State, and Local Efforts.--
            ``(1) Food and drug administration.--In carrying out this 
        section, the Secretary shall--
                    ``(A) share information and coordinate regulatory 
                efforts with the Commissioner of Food and Drugs; and
                    ``(B) if the Secretary receives a report submitted 
                about a food within the jurisdiction of the 
                Commissioner, promptly provide the report to the 
                Commissioner.
            ``(2) States and localities.--In carrying out this section, 
        the Secretary shall work with the State and local public health 
        officials to share information that is not confidential 
        commercial or financial information protected under section 
        552(b)(4) of title 5, United States Code, and coordinate 
        regulatory efforts, in order to--
                    ``(A) help to ensure coverage of the safety of the 
                food supply chain, including those establishments 
                regulated by the States and localities that are not 
                regulated under this Act; and
                    ``(B) reduce duplicative regulatory efforts.
    ``(g) Maintenance and Inspection of Records.--
            ``(1) In general.--The responsible party shall maintain 
        records related to each report received, notification made, and 
        report submitted to the Secretary under this section for at 
        least 2 years.
            ``(2) Inspection.--A responsible party shall, at the 
        request of the Secretary, permit inspection of records 
        maintained under paragraph (1).
    ``(h) Request for Information.--Section 552 of title 5, United 
States Code, shall apply to any request for information regarding a 
record in the Registry.
    ``(i) Safety Report.--A report or notification under subsection (d) 
may be accompanied by a statement, which shall be part of any report 
released for public disclosure, that denies that the report or the 
notification constitutes an admission that the product involved caused 
or contributed to a death, serious injury, or serious illness.
    ``(j) Admission.--A report or notification under this section shall 
not be considered an admission that the reportable food involved is 
adulterated, misbranded, or caused or contributed to a death, serious 
injury, or serious illness.
    ``(k) Homeland Security Notification.--If, after receiving a report 
under subsection (d), the Secretary believes the reportable food may 
have been deliberately adulterated or misbranded, the Secretary shall--
            ``(1) immediately notify the Secretary of Homeland 
        Security; and
            ``(2) make relevant information from the Registry available 
        to the Secretary of Homeland Security.
    ``(l) Penalties.--A responsible party that fails to comply with any 
requirement of this section shall be subject to an appropriate penalty 
under section 12.''.
            (3) Conforming amendment.--Section 12(a) of the Poultry 
        Products Inspection Act (21 U.S.C. 461(a)) is amended by 
        inserting ``10A,'' after ``10,''.
            (4) Effective date.--The amendments made by the subsection 
        take effect on the date that is 1 year after the date of 
        enactment of this Act.
            (5) Guidance.--Not later than 270 days after the date of 
        enactment of this Act, the Secretary shall issue a guidance to 
        industry relating to--
                    (A) the submission of reports to the registries 
                established under section 411 of the Federal Meat 
                Inspection Act (as amended by paragraph (1)) and 
                section 10A of the Poultry Products Inspection Act (as 
                amended by paragraph (2)); and
                    (B) the provision of notification to other persons 
                in the supply chain of reportable food under those 
                sections.
            (6) Effect.--Nothing in this subsection, or an amendment 
        made by this subsection, alters the jurisdiction between the 
        Secretary and the Secretary of Health and Human Services, under 
        applicable law (including regulations).
    (b) Supplemental Plans and Reassessments.--The Secretary shall 
require that each establishment required by the Secretary to have a 
hazard analysis and critical control point plan in accordance with the 
final rule of the Secretary (61 Fed. Reg. 38806 (July 25, 1996)) shall 
submit to the Secretary, in writing--
            (1) at a minimum, a recall plan described in Directive 
        8080.1, Rev. 4 (May 24, 2004) of the Food Safety and Inspection 
        Service (or a successor directive); and
            (2) for beef products, an E. coli reassessment described in 
        the supplementary information relating to E. coli O157: H7 
        Contamination of Beef Products (67 Fed. Reg. 62325 (October 7, 
        2002); part 417 of title 9, Code of Federal Regulations).
    (c) Sanitary Transportation of Food.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Health and Human 
        Services shall promulgate regulations described in section 
        416(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
        350e(b)).
            (2) Memorandum of understanding.--Not later than 180 days 
        after the date of enactment of this Act, the Secretary, the 
        Secretary of Health and Human Services, and the Secretary of 
        Transportation shall enter into a memorandum of understanding 
        to ensure that the Secretaries work together effectively to 
        ensure the safety and security of the food supply of the United 
        States, particularly in relation to distribution channels 
        involving transportation (as described in the withdrawal of 
        notices of proposed rulemaking (70 Fed. Reg. 76228 (December 
        23, 2005))).

SEC. 11088. OFFICE OF SMALL FARMS AND BEGINNING FARMERS AND RANCHERS.

    (a) In General.--Subtitle B of title II of the Department of 
Agriculture Reorganization Act of 1994 (as amended by section 11059(a)) 
is amended by inserting after section 226B the following:

``SEC. 226C. OFFICE OF SMALL FARMS AND BEGINNING FARMERS AND RANCHERS.

    ``(a) Establishment.--Not less than 180 days after the date of 
enactment of this section, the Secretary shall establish and maintain 
within the executive operations of the Department an office, to be 
known as the `Office of Small Farms and Beginning Farmers and Ranchers' 
(referred to in this section as the `Office').
    ``(b) Purposes.--The purposes of the Office are--
            ``(1) to ensure coordination across all agencies of the 
        Department--
                    ``(A) to improve use of the programs and services 
                of the Department; and
                    ``(B) to enhance the viability of small, beginning, 
                and socially disadvantaged farmers and ranchers and 
                others, as the Secretary determines to be necessary;
            ``(2) to ensure small, beginning, and socially 
        disadvantaged farmers and ranchers access to, and equitable 
        participation in, commodity, credit, risk management and 
        disaster protection, conservation, marketing, nutrition, value-
        added, rural development, and other programs and services of 
        the Department;
            ``(3) to ensure that the number and economic contributions 
        of small, limited-resource, beginning, and socially 
        disadvantaged farmers and ranchers are accurately reflected in 
        the Census of Agriculture and in other reports; and
            ``(4) to assess and enhance the effectiveness of outreach 
        and programs of the Department--
                    ``(A) to reduce barriers to program participation;
                    ``(B) to improve service provided through programs 
                of the Department to small, beginning, and socially 
                disadvantaged farmers and ranchers; and
                    ``(C) by suggesting to the Secretary new 
                initiatives and programs to better serve the needs of 
                small, socially disadvantaged, and beginning farmers 
                and ranchers.
    ``(c) Director.--
            ``(1) In general.--The Office shall be headed by a 
        Director.
            ``(2) Assumption of duties.--Effective on the date of 
        establishment of the Office under subsection (a), the Director 
        shall assume the duties and personnel of the Director of Small 
        Farms Coordination, as in existence on the day before the date 
        of enactment of this section.
    ``(d) Duties.--The Office shall--
            ``(1) in collaboration with such other agencies and offices 
        of the Department as the Secretary determines to be necessary, 
        develop and implement a plan to coordinate the activities 
        established under Departmental Regulation 9700-1 (August 3, 
        2006), including activities of the Small and Beginning Farmers 
        and Ranchers Council and services provided by the Department to 
        small farms and beginning farmers and ranchers;
            ``(2) coordinate with the Office of Outreach to provide 
        consultation, training, and liaison activities with eligible 
        entities (as defined in section 2501(e) of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 7 U.S.C. 
        2279(e));
            ``(3) cooperate with, and monitor, agencies and offices of 
        the Department to ensure that the Department is meeting the 
        needs of small farms and of beginning farmers and ranchers;
            ``(4) establish cross-cutting and strategic departmental 
        goals and objectives for small farms and beginning farmers and 
        ranchers and for each associated program;
            ``(5) provide input to agencies and offices of the 
        Department on program and policy decisions to ensure that the 
        interests of small farms and of beginning farmers and ranchers 
        are represented;
            ``(6) measure outcomes of all small farm programs and 
        beginning farmer and rancher programs and track progress made 
        in achieving the goals of the programs;
            ``(7) supervise data collection by agencies and offices of 
        the Department regarding characteristics of small farms and 
        beginning farmers and ranchers to ensure that the goals and 
        objectives, and measures carried out to achieve those goals and 
        objectives, can be measured and evaluated; and
            ``(8) carry out any other related duties that the Secretary 
        determines to be appropriate.
    ``(e) Outreach.--The Office shall establish and maintain an 
Internet website--
            ``(1) to share information with interested producers; and
            ``(2) to collect and respond to comments from small and 
        beginning farmers and ranchers, including comments of the Small 
        and Beginning Farmers and Ranchers Council.
    ``(f) Resources.--Using funds made available to the Secretary in 
appropriations Acts, the Secretary shall provide to the Office such 
human and capital resources as are sufficient to allow the Office to 
carry out the duties of the Office under this section in a timely and 
efficient manner.
    ``(g) Annual 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 annual reports that 
describe actions taken by the Office during the preceding calendar year 
to advance the interests of small farms and beginning farmers and 
ranchers.''.
    (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (6) (as added by section 7401(c)(1)), by 
        striking ``or'' at the end;
            (2) in paragraph (7) (as added by section 11059(b)), by 
        striking the period at the end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) the authority of the Secretary to establish in the 
        Department the Office of Small Farms and Beginning Farmers and 
        Ranchers in accordance with section 226C.''.

SEC. 11089. STUDY OF IMPACTS OF LOCAL FOOD SYSTEMS AND COMMERCE.

    (a) Study.--The Secretary shall conduct a study on the impacts of 
local food systems and commerce that shall, at a minimum--
            (1) develop a working definition of local food systems and 
        commerce; and
            (2) identify indicators, and include an assessment of--
                    (A) the market share of local food systems and 
                commerce throughout the United States and by region;
                    (B) the potential community, economic, health and 
                nutrition, environmental, food safety, and food 
                security impacts of advancing local food systems and 
                commerce;
                    (C) the potential energy, transportation, water 
                resource, and climate change impacts of local food 
                systems and commerce;
                    (D) the structure of agricultural considerations 
                and impacts throughout the United States and by region;
                    (E) the interest of agricultural producers in 
                diversifying to access local markets and the barriers 
                and opportunities confronted by agricultural producers 
                in the process of diversification;
                    (F) the current availability and present and future 
                need of independent processing plants that cater to 
                local food commerce, including difficulty in meeting 
                regulatory requirements;
                    (G) the key gaps in food processing, distribution, 
                marketing, and economic development, including regional 
                differences in infrastructure gaps and other barriers;
                    (H) the role of public and private institutions and 
                institutional and governmental buying systems and 
                procurement policies in purchasing products through 
                local food systems;
                    (I) the benefits and challenges for children and 
                families in the most vulnerable rural and urban sectors 
                of the United States; and
                    (J) the challenges that prevent local foods from 
                comprising a larger share of the per capita food 
                consumption in the United States, and existing and 
                potential strategies, policies, and programs to address 
                those challenges.
    (b) Collaboration.--
            (1) In general.--The Secretary shall appoint a 
        collaborative study team to oversee and conduct the research 
        necessary to conduct the study described in subsection (a) and 
        the case studies described in subsection (c).
            (2) Membership.--The study team shall include 
        representatives of--
                    (A) the Economic Research Service, Agricultural 
                Marketing Service, and other appropriate agencies of 
                the Department of Agriculture or other Federal 
                agencies;
                    (B) the Environmental Protection Agency;
                    (C) institutions of higher education, including at 
                least 1 institution of higher education representative 
                from each of the regions studied;
                    (D) small farmers;
                    (E) nongovernmental organizations with appropriate 
                expertise; and
                    (F) State and local governments.
    (c) Case Studies.--
            (1) In general.--The study team appointed by the Secretary 
        under subsection (b) shall carry out case studies in 
        representative production and marketing regions in the United 
        States to address the issues being studied under subsection 
        (a).
            (2) Requirements.--In carrying out case studies, the study 
        team shall--
                    (A) identify opportunities for primary research; 
                and
                    (B) to the maximum extent practicable, use existing 
                surveys, data, and research.
            (3) Components.--Each case study shall--
                    (A) identify and, to the maximum extent 
                practicable, evaluate the success of relevant Federal, 
                State, and local policies that are intended to induce 
                local food purchasing and commerce;
                    (B) examine the agricultural structure in each 
                region to account for the impact of farm size and type 
                of production on local economies and barriers to 
                accessing local markets;
                    (C) determine regional market trends and the share 
                of the market supplied by current agricultural 
                producers in the region; and
                    (D) assess the potential for local food system 
                value chains and supply networks and map the supply 
                chain factors in each region involved in agricultural 
                production, processing, and distribution of locally 
                grown produce, meat, dairy, and other products.
    (d) Reports.--Not later than 2 years after the date of enactment of 
this Act, and thereafter as the Secretary considers appropriate, 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 results of the study conducted under 
        subsection (a) and the case studies under subsection (c); and
            (2) includes such recommendations for legislative action as 
        the Secretary considers appropriate.

SEC. 11090. INVASIVE SPECIES 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 Invasive Species 
        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 ``Invasive 
Species 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 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 invasive species.
                    (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--
                                    (I) to finance purchases of 
                                authorized equipment to monitor, 
                                remove, dispose of, and replace 
                                infested trees that are located--
                                            (aa) on land under the 
                                        jurisdiction of the eligible 
                                        unit of local government; and
                                            (bb) within the borders of 
                                        a quarantine area infested by 
                                        invasive species; and
                                    (II) to enter into contracts with 
                                appropriate individuals and entities to 
                                monitor, remove, dispose of, and 
                                replace infested trees that are located 
                                in each area described in subclause 
                                (I); 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--
                                    (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. 11091. COOPERATIVE AGREEMENTS RELATING TO INVASIVE SPECIES 
              PREVENTION ACTIVITIES.

    Any cooperative agreement entered into after the date of enactment 
of this Act between the Secretary and a State relating to the 
prevention of invasive species infestation shall allow the State to 
provide any cost-sharing assistance or financing mechanism provided to 
the State under the cooperative agreement to a unit of local government 
of the State that--
            (1) is engaged in any activity relating to the prevention 
        of invasive species infestation; and
            (2) is capable of documenting each invasive species 
        infestation prevention activity generally carried out by--
                    (A) the Department of Agriculture; or
                    (B) the State department of agriculture that has 
                jurisdiction over the unit of local government.

SEC. 11092. SOUTHWEST REGIONAL DAIRY, ENVIRONMENT, AND PRIVATE LAND 
              PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible institution of higher education.--The term 
        ``eligible institution of higher education'' means an 
        institution of higher education that--
                    (A) is located in--
                            (i) the State of Arizona;
                            (ii) the State of Colorado;
                            (iii) the State of New Mexico;
                            (iv) the State of Oklahoma; and
                            (v) the State of Texas;
                    (B) has facilities that are necessary for the 
                facilitation of research on issues relating to the 
                dairy industry in a practical setting;
                    (C) has a dairy research program and an institution 
                for applied environmental research;
                    (D) has a university laboratory that is--
                            (i) located on the campus of the 
                        institution of higher education; and
                            (ii) accredited by the National 
                        Environmental Laboratory Accreditation Council 
                        to ensure the quality of any proposed research 
                        activities;
                    (E) has the capability to enter into a partnership 
                with representatives of the dairy industry and other 
                public and private entities and institutions of higher 
                education;
                    (F) has experience in conducting watershed modeling 
                (including the conduct of cost-benefit analyses, policy 
                applications, and long-term watershed monitoring); and
                    (G) works with--
                            (i) producer-run advocacy groups (including 
                        Industry-Led Solutions); and
                            (ii) private land coalitions.
            (2) Program.--The term ``program'' means the Southwest 
        regional dairy, environment, and private land program 
        established under subsection (b).
    (b) Establishment.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary shall establish a 
        Southwest regional dairy, environment, and private land 
        program.
            (2) Required activities.--In carrying out the program, the 
        Secretary shall--
                    (A) identify challenges and develop solutions to 
                enhance the economic and environmental sustainability, 
                growth, and expansion of the dairy industry in the 
                Southwest region of the United States;
                    (B) research, develop, and implement programs--
                            (i) to recover energy and other useful 
                        products from dairy waste;
                            (ii) to identify best management practices; 
                        and
                            (iii) to assist the dairy industry in 
                        ensuring that animal waste emissions and 
                        discharges of the dairy industry are maintained 
                        at levels below applicable regulatory 
                        standards;
                    (C) offer technical assistance (including research 
                activities conducted by a university laboratory that is 
                accredited by the National Environmental Laboratory 
                Accreditation Council), training, applied research, and 
                watershed water quality programs monitoring to 
                applicable entities;
                    (D) develop--
                            (i) watershed modeling through the 
                        development of innovative modeling tools and 
                        data mining to develop cost-efficient and 
                        environmentally effective programs in the dairy 
                        industry; and
                            (ii) an international modeling application 
                        clearinghouse to coordinate watershed modeling 
                        tools in the United States and in other 
                        countries, to be carried out by the Secretary; 
                        and
                    (E) collaborate with a private land coalition to 
                use input gathered from landowners in the United States 
                through a program of industry led solutions to work 
                with the Federal Government (including Federal 
                agencies) in the development of conservation, 
                environmental credit trading, and watershed programs to 
                help private landowners and agricultural producers meet 
                applicable water quality standards.
    (c) Contracts.--
            (1) In general.--In carrying out the program, the Secretary 
        shall offer to enter into contracts with eligible institutions 
        of higher education.
            (2) Application.--
                    (A) Submission of application.--To enter into a 
                contract with the Secretary under paragraph (1), an 
                eligible institution of higher education shall submit 
                to the Secretary an application at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    (B) Guidelines.--As soon as practicable after the 
                date of enactment of this Act, the Secretary shall 
                promulgate guidelines describing each requirement of 
                the Secretary with respect to the application 
                requirements described in subparagraph (A).
    (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, to remain available until 
expended.

SEC. 11093. ENFORCEMENT OF UNITED STATES-CANADA SOFTWOOD LUMBER 
              AGREEMENT.

    (a) Findings.--The Senate finds that--
            (1) the Federal Government has repeatedly found that 
        Canadian softwood lumber shipped to the United States is 
        unfairly subsidized and dumped into the United States market 
        and materially injures softwood lumber producers in the United 
        States;
            (2) in September 2006, the United States and Canada entered 
        into the United States-Canada Softwood Lumber Agreement 
        (referred to in this section as the ``Agreement'') to address 
        Canada's unfair lumber trade practices;
            (3) the Agreement obligates Canada to apply export taxes 
        and quotas to Canadian softwood lumber exports to the United 
        States and to forego new subsidies to Canadian lumber 
        producers;
            (4) Canada has consistently violated the Agreement, 
        including by failing to apply export taxes and quotas as 
        required by the Agreement and by providing new subsidies to 
        Canadian lumber companies;
            (5) Canadian violations of the Agreement are contributing 
        to market conditions that are resulting in significant job 
        losses in the United States lumber mills;
            (6) the United States is challenging some of the Canadian 
        violations of the Agreement through arbitral proceedings;
            (7) as of the date of enactment of this Act, Federal 
        enforcement of the Agreement has not resulted; and
            (8) Federal executive agencies have been considering 
        proposals to enforce the Agreement.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
President should take all actions necessary to ensure that imports of 
Canadian softwood lumber are consistent with the provisions of the 
United States-Canada Softwood Lumber Agreement.

             Subtitle C--DOMESTIC PET TURTLE MARKET ACCESS

SEC. 11101. SHORT TITLE.

    This title may be cited as the ``Domestic Pet Turtle Equality 
Act''.

SEC. 11102. FINDINGS.

    Congress makes the following findings:
            (1) Pet turtles less than 10.2 centimeters in diameter have 
        been banned for sale in the United States by the Food and Drug 
        Administration since 1975 due to health concerns.
            (2) The Food and Drug Administration does not ban the sale 
        of iguanas or other lizards, snakes, frogs, or other amphibians 
        or reptiles that are sold as pets in the United States that 
        carry salmonella bacteria. The Food and Drug Administration 
        also does not require that these animals be treated for 
        salmonella bacteria before being sold as pets.
            (3) The technology to treat turtles for salmonella, and 
        make them safe for sale, has greatly advanced since 1975. 
        Treatments exist that can eradicate salmonella from turtles up 
        until the point of sale, and individuals are more aware of the 
        causes of salmonella, how to treat salmonella poisoning, and 
        the seriousness associated with salmonella poisoning.
            (4) University research has shown that these turtles can be 
        treated in such a way that they can be raised, shipped, and 
        distributed without having a recolonization of salmonella.
            (5) University research has also shown that pet owners can 
        be equipped with a treatment regimen that allows the turtle to 
        be maintained safe from salmonella.
            (6) The Food and Drug Administration and the Department of 
        Agriculture should allow the sale of turtles less than 10.2 
        centimeters in diameter as pets as long as the sellers are 
        required to use proven methods to treat these turtles for 
        salmonella.

SEC. 11103. REVIEW, REPORT, AND ACTION ON THE SALE OF BABY TURTLES.

    (a) Pet Turtle.--In this section, the term ``pet turtle'' means a 
turtle that is less than 10.2 centimeters in diameter.
    (b) Prevalence of Salmonella.--Not later than 60 days after the 
date of enactment of this title, the Secretary of Health and Human 
Services, acting through the Commissioner of Food and Drugs, shall 
determine the prevalence of salmonella in each species of reptile and 
amphibian sold legally as a pet in the United States in order to 
determine whether the prevalence of salmonella in reptiles and 
amphibians sold legally as pets in the United States on average is not 
more than 10 percent less than the percentage of salmonella in pet 
turtles.
    (c) Action if Prevalence Is Similar.--If the prevalence of 
salmonella in reptiles and amphibians sold legally as pets in the 
United States on average is not more than 10 percent less than the 
percentage of salmonella in pet turtles--
            (1) the Secretary of Agriculture shall--
                    (A) conduct a study to determine how pet turtles 
                can be sold safely as pets in the United States and 
                provide recommendations to Congress not later than 150 
                days after the date of such determination;
                    (B) in conducting such study, consult with all 
                relevant stakeholders, such as the Centers for Disease 
                Control and Prevention, the turtle farming industry, 
                academia, and the American Academy of Pediatrics; and
                    (C) examine the safety measures taken to protect 
                individuals from salmonella-related dangers involved 
                with reptiles and amphibians sold legally in the United 
                States that contain a similar or greater presence of 
                salmonella than that of pet turtles; and
            (2) the Secretary of Agriculture--
                    (A) may not prohibit the sale of pet turtles in the 
                United States; or
                    (B) shall prohibit the sale in the United States of 
                any reptile or amphibian that contains a similar or 
                greater prevalence of salmonella than that of pet 
                turtles.

                   Subtitle D--Disaster Loan Program

SEC. 11111. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Disaster 
Response and Loan Improvements Act of 2007''.

SEC. 11112. DEFINITIONS.

    In this subtitle--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``Small Business Act catastrophic national 
        disaster'' means a Small Business Act catastrophic national 
        disaster declared under section 7(b)(11) of the Small Business 
        Act (15 U.S.C. 636(b)), as added by this Act;
            (3) the term ``declared disaster'' means a major disaster 
        or a Small Business Act catastrophic national disaster;
            (4) 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;
            (5) 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));
            (6) the term ``disaster update period'' means the period 
        beginning on the date on which the President declares a major 
        disaster or a Small Business Act catastrophic national disaster 
        and ending on the date on which such declaration terminates;
            (7) 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);
            (8) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632); and
            (9) 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. 11121. DISASTER LOANS TO NONPROFITS.

    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) Loans to nonprofits.--In addition to any other loan 
        authorized by this subsection, the Administrator may make such 
        loans (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 a nonprofit organization located or operating in 
        an area affected by a natural or other disaster, as determined 
        under paragraph (1) or (2), or providing services to persons 
        who have evacuated from any such area.''.

SEC. 11122. 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 
(4), as added by this Act, the following:
            ``(5) 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--
            (1) in the matter preceding paragraph (1), by striking 
        ``the, Administration'' and inserting ``the Administration'';
            (2) in paragraph (2)(A), 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.) (in this subsection referred to as a `major disaster')''; 
        and
            (3) 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. 11123. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY GRANTS.

    Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 
648(a)(4)(C)(viii)) is amended--
            (1) in the first sentence, by striking ``as a result of a 
        business or government facility down sizing or closing, which 
        has resulted in the loss of jobs or small business 
        instability'' and inserting ``due to events that have resulted 
        or will result in, business or government facility downsizing 
        or closing''; and
            (2) by adding at the end ``At the discretion of the 
        Administrator, the Administrator may make an award greater than 
        $100,000 to a recipient to accommodate extraordinary 
        occurrences having a catastrophic impact on the small business 
        concerns in a community.''.

SEC. 11124. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

    Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is 
amended--
            (1) by striking ``At the discretion'' and inserting the 
        following: ``Small business development centers.--
                    ``(A) In general.--At the discretion''; and
            (2) by adding at the end the following:
                    ``(B) During disasters.--
                            ``(i) In general.--At the discretion of the 
                        Administrator, the Administrator may authorize 
                        a small business development center to provide 
                        such assistance to small business concerns 
                        located outside of the State, without regard to 
                        geographic proximity, if the small business 
                        concerns are located in a disaster area 
                        declared under section 7(b)(2)(A).
                            ``(ii) Continuity of services.--A small 
                        business development center that provides 
                        counselors to an area described in clause (i) 
                        shall, to the maximum extent practicable, 
                        ensure continuity of services in any State in 
                        which such small business development center 
                        otherwise provides services.
                            ``(iii) Access to disaster recovery 
                        facilities.--For purposes of providing disaster 
                        recovery assistance under this subparagraph, 
                        the Administrator shall, to the maximum extent 
                        practicable, permit small business development 
                        center personnel to use any site or facility 
                        designated by the Administrator for use to 
                        provide disaster recovery assistance.''.

SEC. 11125. OUTREACH PROGRAMS.

    (a) In General.--Not later than 30 days after the date of the 
declaration of a disaster area, the Administrator may establish a 
contracting outreach and technical assistance program for small 
business concerns which have had a primary place of business in, or 
other significant presence in, such disaster area.
    (b) Administrator Action.--The Administrator may carry out 
subsection (a) by acting through--
            (1) the Administration;
            (2) the Federal agency small business officials designated 
        under section 15(k)(1) of the Small Business Act (15 U.S.C. 
        644(k)(1)); or
            (3) any Federal, State, or local government entity, higher 
        education institution, procurement technical assistance center, 
        or private nonprofit organization that the Administrator may 
        determine appropriate, upon conclusion of a memorandum of 
        understanding or assistance agreement, as appropriate, with the 
        Administrator.

SEC. 11126. 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.

SEC. 11127. TERMINATION OF PROGRAM.

    Section 711(c) of the Small Business Competitive Demonstration 
Program Act of 1988 (15 U.S.C. 644 note) is amended by inserting after 
``January 1, 1989'' the following: ``, and shall terminate on the date 
of enactment of the Small Business Disaster Response and Loan 
Improvements Act of 2007''.

SEC. 11128. 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 Small Business Act catastrophic national disaster 
declared under subsection (b)(11))''.

SEC. 11129. 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 (5), as 
added by this Act, the following:
            ``(6) Coordination with fema.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for any disaster (including a Small 
                Business Act catastrophic national disaster) declared 
                under this subsection or major disaster, 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 a Small Business Act catastrophic 
                national disaster), 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--
                            ``(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.
            ``(7) Public awareness of disasters.--If a disaster 
        (including a Small Business Act catastrophic national disaster) 
        is declared under this subsection, 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.

SEC. 11130. 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 Administration shall submit to Congress a report 
containing all findings and recommendations of the study conducted 
under subsection (a).

SEC. 11131. 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 (7), as added by this 
Act, the following:
            ``(8) 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 or a Small Business Act catastrophic 
                national disaster declared under paragraph (11), 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 or a Small Business Act catastrophic national 
                disaster declared under paragraph (11), 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.''.
    (b) Coordination of Efforts Between the Administrator and the 
Internal Revenue Service To Expedite Loan Processing.--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. 11132. 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 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 utilize 
        and integrate District Office personnel of the Administration 
        in the response to a major disaster, including information on 
        the utilization 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) Exercises.--Not later than 6 months after the date of the 
submission of the report under subsection (a)(2), the Administrator 
shall develop and execute simulation exercises to demonstrate the 
effectiveness of the amended disaster response plan required under this 
section.

SEC. 11133. DISASTER PLANNING RESPONSIBILITIES.

    (a) Assignment of Small Business Administration Disaster Planning 
Responsibilities.--The Administrator shall specifically assign the 
disaster planning responsibilities described in subsection (b) to an 
employee of the Administration who--
            (1) is not an employee of the Office of Disaster Assistance 
        of the Administration;
            (2) shall report directly to the Administrator; and
            (3) has a background and expertise demonstrating 
        significant experience in the area of disaster planning.
    (b) Responsibilities.--The responsibilities described in this 
subsection are--
            (1) creating and maintaining the comprehensive disaster 
        response plan of the Administration;
            (2) ensuring in-service and pre-service training procedures 
        for the disaster response staff of the Administration;
            (3) coordinating and directing Administration training 
        exercises, including mock disaster responses, with other 
        Federal agencies; and
            (4) other responsibilities, as determined by the 
        Administrator.
    (c) 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 employee under subsection (a);
            (2) information detailing the background and expertise of 
        the employee assigned under subsection (a); and
            (3) information on the status of the implementation of the 
        responsibilities described in subsection (b).

SEC. 11134. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES OF THE 
              ADMINISTRATION.

    (a) In General.--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) Use of district offices.--In the event of a major 
        disaster, the Administrator may authorize a district office of 
        the Administration to process loans under paragraph (1) or 
        (2).''.
    (b) Designation.--
            (1) In general.--The Administrator may designate an 
        employee in each district office of the Administration to act 
        as a disaster loan liaison between the disaster processing 
        center and applicants under the disaster loan program of the 
        Administration.
            (2) Responsibilities.--Each employee designated under 
        paragraph (1) shall--
                    (A) be responsible for coordinating and 
                facilitating communications between applicants under 
                the disaster loan program of the Administration and 
                disaster loan processing staff regarding documentation 
                and information required for completion of an 
                application; and
                    (B) provide information to applicants under the 
                disaster loan program of the Administration regarding 
                additional services and benefits that may be available 
                to such applicants to assist with recovery.
            (3) Outreach.--In providing outreach to disaster victims 
        following a declared disaster, the Administrator shall make 
        disaster victims aware of--
                    (A) any relevant employee designated under 
                paragraph (1); and
                    (B) how to contact that employee.

SEC. 11135. 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 (9), as 
added by this Act, the following:
            ``(10) 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 750.
                    ``(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.''.

                       PART II--DISASTER LENDING

SEC. 11141. SMALL BUSINESS ACT CATASTROPHIC NATIONAL DISASTER 
              DECLARATION.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (10), as added by this 
Act, the following:
            ``(11) Small business act catastrophic national 
        disasters.--
                    ``(A) In general.--The President may make a Small 
                Business Act catastrophic national disaster declaration 
                in accordance with this paragraph.
                    ``(B) Promulgation of rules.--
                            ``(i) In general.--Not later than 6 months 
                        after the date of enactment of this paragraph, 
                        the Administrator, with the concurrence of the 
                        Secretary of Homeland Security and the 
                        Administrator of the Federal Emergency 
                        Management Agency, shall promulgate regulations 
                        establishing a threshold for a Small Business 
                        Act catastrophic national disaster declaration.
                            ``(ii) Considerations.--In promulgating the 
                        regulations required under clause (i), the 
                        Administrator shall establish a threshold 
                        that--
                                    ``(I) requires that the incident 
                                for which the President declares a 
                                Small Business Act catastrophic 
                                national disaster declaration under 
                                this paragraph has 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 and 
                                the disaster should be similar in size 
                                and scope to the events relating to the 
                                terrorist attacks of September 11, 
                                2001, and the Hurricane Katrina of 
                                2005;
                                    ``(II) requires that the President 
                                declares a major disaster before making 
                                a Small Business Act catastrophic 
                                national disaster declaration under 
                                this paragraph;
                                    ``(III) requires consideration of--
                                            ``(aa) the dollar amount 
                                        per capita of damage to the 
                                        State, its political 
                                        subdivisions, or a region;
                                            ``(bb) the number of small 
                                        business concerns damaged, 
                                        physically or economically, as 
                                        a direct result of the event;
                                            ``(cc) the number of 
                                        individuals and households 
                                        displaced from their 
                                        predisaster residences by the 
                                        event;
                                            ``(dd) the severity of the 
                                        impact on employment rates in 
                                        the State, its political 
                                        subdivisions, or a region;
                                            ``(ee) the anticipated 
                                        length and difficulty of the 
                                        recovery process;
                                            ``(ff) whether the events 
                                        leading to the relevant major 
                                        disaster declaration are of an 
                                        unusually large and calamitous 
                                        nature that is orders of 
                                        magnitude larger than for an 
                                        average major disaster; and
                                            ``(gg) any other factor 
                                        determined relevant by the 
                                        Administrator.
                    ``(C) Authorization.--If the President makes a 
                Small Business Act catastrophic national disaster 
                declaration under this paragraph, the Administrator may 
                make such loans under this paragraph (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 small business concerns 
                located anywhere in the United States that are 
                economically adversely impacted as a result of that 
                Small Business Act catastrophic national disaster.
                    ``(D) Loan terms.--A loan under this paragraph 
                shall be made on the same terms as a loan under 
                paragraph (2).''.

SEC. 11142. PRIVATE DISASTER LOANS.

    (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 (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 (as that 
                term is defined in section 102 of the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5122)) that subsequently results in the 
                President making a Small Business Act catastrophic 
                national disaster declaration under subsection (b)(11);
                    ``(B) the term `eligible small business concern' 
                means a business concern that is--
                            ``(i) a small business concern, as defined 
                        in this Act; or
                            ``(ii) a small business concern, as defined 
                        in section 103 of the Small Business Investment 
                        Act of 1958; and
                    ``(C) the term `qualified private lender' means any 
                privately-owned bank or other lending institution that 
                the Administrator determines meets the criteria 
                established under paragraph (9).
            ``(2) Authorization.--The Administrator may guarantee 
        timely payment of principal and interest, as scheduled on any 
        loan issued by a qualified private lender to an eligible small 
        business concern located in a disaster area.
            ``(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 amounts.--The maximum amount of a loan 
                guaranteed under this subsection shall be $2,000,000.
            ``(6) Loan term.--The longest term of a loan for a loan 
        guaranteed under this subsection shall be--
                    ``(A) 15 years for any loan that is issued without 
                collateral; and
                    ``(B) 25 years for any loan that is issued with 
                collateral.
            ``(7) 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 an origination fee for a loan 
                guaranteed under this subsection in an amount agreed 
                upon in advance between the qualified private lender 
                and the Administrator.
            ``(8) Documentation.--A qualified private lender may use 
        its own loan documentation for a loan guaranteed by the 
        Administrator, 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 (9).
            ``(9) 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 2007, 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 2007, 
                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.
            ``(10) 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.--Funds 
                appropriated to the Administration to carry out this 
                subsection, may be used by the Administrator, to the 
                extent available, to reduce the rate of interest for 
                any loan guaranteed under this subsection by not more 
                than 3 percentage points.
            ``(11) Purchase of loans.--The Administrator may enter into 
        an agreement with a qualified private lender to purchase any 
        loan issued under this subsection.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to disasters declared under section 7(b)(2) of the Small Business 
Act (631 U.S.C. 636(b)(2)) before, on, or after the date of enactment 
of this Act.

SEC. 11143. 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)--
                            (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. 11144. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``immediate disaster assistance'' means 
        assistance provided during the period beginning on the date on 
        which the President makes a Small Business Act catastrophic 
        disaster declaration under paragraph (11) 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 that an impacted small business 
        concern is able to secure funding through insurance claims, 
        Federal assistance programs, or other sources; and
            (2) 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 to provide small 
business concerns with immediate disaster assistance under paragraph 
(11) 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 declared 
                        disaster, or to a neighboring area, county, or 
                        parish in the disaster area; or
                            (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 made 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 1 
                percentage point above the prime rate of interest that 
                a private lender may charge;
                    (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));
                    (F) may be refinanced as part of any subsequent 
                disaster assistance provided under section 7(b) of the 
                Small Business 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. 11145. HUBZONES.

    (a) In General.--Section 3(p) of the Small Business Act (15 U.S.C. 
632(p)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D), by striking ``or'';
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(F) areas in which the President has declared a 
                major disaster (as that term is defined in section 102 
                of the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5122)) as a result of 
                Hurricane Katrina of August 2005 or Hurricane Rita of 
                September 2005, during the time period described in 
                paragraph (8); or
                    ``(G) Small Business Act catastrophic national 
                disaster areas.'';
            (2) in paragraph (4), by adding at the end the following:
                    ``(E) Small business act catastrophic national 
                disaster area.--
                            ``(i) In general.--The term `Small Business 
                        Act catastrophic national disaster area' means 
                        an area--
                                    ``(I) affected by a Small Business 
                                Act catastrophic national disaster 
                                declared under section 7(b)(11), during 
                                the time period described in clause 
                                (ii); and
                                    ``(II) for which the Administrator 
                                determines that designation as a 
                                HUBZone would substantially contribute 
                                to the reconstruction and recovery 
                                effort in that area.
                            ``(ii) Time period.--The time period for 
                        the purposes of clause (i)--
                                    ``(I) shall be the 2-year period 
                                beginning on the date that the 
                                applicable Small Business Act 
                                catastrophic national disaster was 
                                declared under section 7(b)(11); and
                                    ``(II) may, at the discretion of 
                                the Administrator, be extended to be 
                                the 3-year period beginning on the date 
                                described in subclause (I).''; and
            (3) by adding at the end the following:
            ``(8) Time period.--The time period for the purposes of 
        paragraph (1)(F)--
                    ``(A) shall be the 2-year period beginning on the 
                later of the date of enactment of this paragraph and 
                August 29, 2007; and
                    ``(B) may, at the discretion of the Administrator, 
                be extended to be the 3-year period beginning on the 
                later of the date of enactment of this paragraph and 
                August 29, 2007.''.
    (b) Tolling of Graduation.--Section 7(j)(10)(C) of the Small 
Business Act (15 U.S.C. 636(j)(10)(C)) is amended by adding at the end 
the following:
                    ``(iii)(I) For purposes of this subparagraph, if 
                the Administrator designates an area as a HUBZone under 
                section 3(p)(4)(E)(i)(II), the Administrator shall not 
                count the time period described in subclause (II) of 
                this clause for any small business concern--
                            ``(aa) that is participating in any 
                        program, activity, or contract under section 
                        8(a); and
                            ``(bb) the principal place of business of 
                        which is located in that area.
                    ``(II) The time period for purposes of subclause 
                (I)--
                            ``(aa) shall be the 2-year period beginning 
                        on the date that the applicable Small Business 
                        Act catastrophic national disaster was declared 
                        under section 7(b)(11); and
                            ``(bb) may, at the discretion of the 
                        Administrator, be extended to be the 3-year 
                        period beginning on the date described in item 
                        (aa).''.
    (c) Study of HUBZone Disaster Areas.--Not later than 1 year after 
the date of enactment of this Act, the Comptroller General of the 
United States 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 evaluating the designation by the 
Administrator of Small Business Act catastrophic national disaster 
areas, as that term is defined in section 3(p)(4)(E) of the Small 
Business Act (as added by this Act), as HUBZones.

                PART III--DISASTER ASSISTANCE OVERSIGHT

SEC. 11161. CONGRESSIONAL OVERSIGHT.

    (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 provide 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 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;
                    (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) Daily Disaster Updates to Congress for Presidentially Declared 
Disasters.--
            (1) In general.--Each day during a disaster update period, 
        excluding Federal holidays and weekends, the Administration 
        shall provide 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 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;
                    (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) 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.
    (d) 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--
                    (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.
    (e) 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).

                  TITLE XII--TRADE AND TAX PROVISIONS

SEC. 12001. SHORT TITLE; ETC.

    (a) Short Title.--This title may be cited as the ``Heartland, 
Habitat, Harvest, and Horticulture Act of 2007''.
    (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 
                 Agriculture Disaster Relief Trust Fund

SEC. 12101. SUPPLEMENTAL AGRICULTURE 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 AGRICULTURE DISASTER ASSISTANCE

``SEC. 901. PERMANENT AUTHORITY FOR SUPPLEMENTAL REVENUE ASSISTANCE.

    ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term `actual 
        production history yield' means the weighted average 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) 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).
            ``(3) 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.
            ``(4) 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.
            ``(5) 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--
                            ``(i) is used for grazing by the eligible 
                        producer; or
                            ``(ii) 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.
            ``(6) Farm-raised fish.--The term `farm-raised fish' means 
        any aquatic species (including any species of finfish, mollusk, 
        crustacean, or other aquatic invertebrate, amphibian, reptile, 
        or aquatic plant) that is propagated and reared in a controlled 
        or semicontrolled environment.
            ``(7) 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.).
            ``(8) 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.
            ``(9) Moving 5-year olympic average county yield.--The term 
        `moving 5-year Olympic average county yield' means the weighted 
        average yield obtained from the 5 most recent years of yield 
        data provided by the National Agriculture Statistics Service 
        obtained from data after dropping the highest and the lowest 
        yields.
            ``(10) 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.
            ``(11) 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).
            ``(12) 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)).
            ``(13) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(14) 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.
            ``(15) Trust fund.--The term `Trust Fund' means the 
        Agriculture Disaster Relief Trust Fund established under 
        section 902.
            ``(16) 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 52 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, the product obtained by multiplying--
                                    ``(I) the greatest of--
                                            ``(aa) the actual 
                                        production history yield;
                                            ``(bb) 90 percent of the 
                                        moving 5-year Olympic average 
                                        county yield; and
                                            ``(cc) the counter-cyclical 
                                        program payment yield for each 
                                        crop;
                                    ``(II) the percentage of the crop 
                                insurance yield guarantee;
                                    ``(III) the percentage of crop 
                                insurance price elected by the eligible 
                                producer;
                                    ``(IV) the crop insurance price; 
                                and
                                    ``(V) 115 percent; and
                            ``(ii) for each noninsurable commodity on a 
                        farm, the product obtained by multiplying--
                                    ``(I) the weighted noninsured crop 
                                assistance program yield guarantee;
                                    ``(II) except as provided in 
                                subparagraph (B), 100 percent of the 
                                noninsured crop assistance program 
                                established price; and
                                    ``(III) 115 percent.
                    ``(B) Supplemental buy-up noninsured assistance 
                program.--Beginning on the date that the Secretary 
                makes available supplemental buy-up coverage under the 
                noninsured assistance program in accordance with 
                subsection (h), the percentage described in subclause 
                (II) of subparagraph (A)(ii) shall be equal to the 
                percentage of the noninsured assistance program price 
                guarantee elected by the producer.
                    ``(C) 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.
                    ``(D) 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 prevented 
                harvesting, the adjusted assistance level shall be the 
                basis for determining the disaster assistance program 
                guarantee for the noninsurable commodity.
                    ``(E) 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.
                    ``(F) Public managed land.--Notwithstanding 
                subparagraph (A), if rangeland is managed by a Federal 
                agency and the carrying capacity of the managed 
                rangeland is reduced as a result of a disaster in the 
                preceding year that was the basis for a qualifying 
                natural disaster declaration--
                            ``(i) the calculation for the supplemental 
                        assistance program guarantee determined under 
                        subparagraph (A) as the guarantee applies to 
                        the managed rangeland shall be not less than 75 
                        percent of the guarantee for the preceding 
                        year; and
                            ``(ii) the requirement for a designation by 
                        the Secretary for the current year is waived.
            ``(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 
                        grazing and for each crop produced on a farm by 
                        using the product obtained by multiplying--
                                    ``(I) the actual crop acreage 
                                grazed or harvested by an eligible 
                                producer on a farm;
                                    ``(II) the estimated actual yield 
                                of the grazing land or crop production; 
                                and
                                    ``(III) subject to subparagraphs 
                                (B) and (C), the average market price 
                                received or value of the production 
                                during the first 5 months of the 
                                marketing year for the county in which 
                                the farm or portion of a farm is 
                                located;
                            ``(ii) 20 percent of amount of any direct 
                        payments made to the producer under section 
                        1103 of the Farm Security and Rural Investment 
                        Act of 2002 (7 U.S.C. 7913) or of any fixed 
                        direct payments made at the election of the 
                        producer in lieu of that section or a 
                        subsequent section;
                            ``(iii) the amount of payments for 
                        prevented planting on a farm;
                            ``(iv) the amount of crop insurance 
                        indemnities received by an eligible producer on 
                        a farm for each crop on a farm, including 
                        indemnities for grazing losses;
                            ``(v) the amount of payments an eligible 
                        producer on a farm received under the 
                        noninsured crop assistance program for each 
                        crop on a farm, including grazing losses; and
                            ``(vi) 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, hay, or 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 average market price received 
                or value of the production during the first 5 months of 
                the marketing year for the county in which the farm or 
                portion of a farm is located 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 expected value of grazing;
                    ``(B) the product obtained by multiplying--
                            ``(i) the greatest of--
                                    ``(I) the actual production history 
                                yield of the eligible producer on a 
                                farm;
                                    ``(II) the moving 5-year Olympic 
                                average county yield; and
                                    ``(III) the counter-cyclical 
                                program payment yield;
                            ``(ii) the acreage planted or intended to 
                        be planted for each crop; and
                            ``(iii) 100 percent of the insurance price 
                        guarantee; and
                    ``(C) the product obtained by multiplying--
                            ``(i) 100 percent of the 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) In general.--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) Emergency Assistance for Livestock, Honey Bees, and Farm-
Raised Fish.--
            ``(1) In general.--The Secretary shall use up to 
        $35,000,000 per year from the Trust Fund to provide emergency 
        relief to eligible producers of livestock, honey bees, and 
        farm-raised fish to aid in the reduction of losses due to 
        adverse weather or other environmental conditions, such as 
        blizzards and wildfires, as determined by the Secretary, that 
        are not covered under the authority of the Secretary to make 
        qualifying natural disaster declarations.
            ``(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 and not used in a crop year shall remain 
        available until expended.
    ``(e) 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 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.
                    ``(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 75 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) Amount.--The total amount of payments that a 
                person shall be entitled to receive under this 
                subsection may not exceed $100,000 per year, or an 
                equivalent value in tree seedlings.
                    ``(B) Acres.--The total quantity of acres planted 
                to trees or tree seedlings for which a person shall be 
                entitled to receive payments under this subsection may 
                not exceed 500 acres.
                    ``(C) Regulations.--The Secretary shall promulgate 
                --
                            ``(i) regulations defining the term 
                        `person' for the purposes of this subsection, 
                        which shall conform, to the maximum extent 
                        practicable, to the regulations defining the 
                        term `person' promulgated under section 1001 of 
                        the Food Security Act of 1985 (7 U.S.C. 1308); 
                        and
                            ``(ii) such regulations as the Secretary 
                        determines necessary to ensure a fair and 
                        reasonable application of the limitation 
                        established under this paragraph.
    ``(f) Plant Pest and Disease Management and Disaster Prevention.--
            ``(1) Definitions.--In this subsection:
                    ``(A) 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--
                            ``(i) the plant pests become established; 
                        or
                            ``(ii) the plant pest infestations become 
                        too large and costly to eradicate or control.
                    ``(B) Plant pest.--The term `plant pest' has the 
                meaning given such term in section 403 of the Plant 
                Protection Act (7 U.S.C. 7702).
                    ``(C) 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).
                    ``(D) 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.
            ``(2) Early plant pest detection and surveillance 
        improvement program.--
                    ``(A) Cooperative agreements.--The Secretary shall 
                enter into a cooperative agreement with each State 
                department of agriculture that agrees to conduct early 
                plant pest detection and surveillance activities.
                    ``(B) Consultation.--In carrying out this 
                paragraph, the Secretary shall consult with--
                            ``(i) the National Plant Board;
                            ``(ii) the National Association of State 
                        Departments of Agriculture; and
                            ``(iii) stakeholders.
                    ``(C) Funds under agreements.--Each State 
                department of agriculture with which the Secretary 
                enters into a cooperative agreement under this 
                paragraph shall receive funding for each of fiscal 
                years 2008 through 2012 in an amount to be determined 
                by the Secretary.
                    ``(D) Use of funds.--
                            ``(i) Plant pest detection and surveillance 
                        activities.--A State department of agriculture 
                        that receives funds under this paragraph shall 
                        use the funds to carry out early plant pest 
                        detection and surveillance activities to 
                        prevent the introduction of a plant pest or 
                        facilitate the eradication of a plant pest, 
                        pursuant to a cooperative agreement.
                            ``(ii) Subagreements.--Nothing in this 
                        paragraph prevents a State department of 
                        agriculture from using funds received under 
                        subparagraph (C) to enter into subagreements 
                        with political subdivisions of the State that 
                        have legal responsibilities relating to 
                        agricultural plant pest and disease 
                        surveillance.
                            ``(iii) 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.
                    ``(E) Special funding considerations.--The 
                Secretary shall provide funds to a State department of 
                agriculture if the Secretary determines that--
                            ``(i) the State department of agriculture 
                        is in a State that has a high risk of being 
                        affected by 1 or more plant pests; and
                            ``(ii) 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.
                    ``(F) Reporting requirement.--Not later than 180 
                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 subsection, the State department of 
                agriculture shall submit to the Secretary a report that 
                describes the purposes and results of the activities.
            ``(3) Threat identification and mitigation program.--
                    ``(A) Establishment.--The Secretary, acting through 
                the Administrator of the Animal and Plant Health 
                Inspection Service (referred to in this section as the 
                `Secretary'), shall establish a threat identification 
                and mitigation program to determine and prioritize 
                foreign threats to the domestic production of crops.
                    ``(B) Requirements.--In conducting the program 
                established under subparagraph (A), the Secretary 
                shall--
                            ``(i) consult with the Director of the 
                        Center for Plant Health Science and Technology;
                            ``(ii) conduct, in partnership with States, 
                        early plant pest detection and surveillance 
                        activities;
                            ``(iii) develop risk assessments of the 
                        potential threat to the agricultural industry 
                        of the United States from foreign sources;
                            ``(iv) collaborate with the National Plant 
                        Board on the matters described in subparagraph 
                        (C);
                            ``(v) implement action plans developed 
                        under subparagraph (C)(ii)(I) immediately after 
                        development of the action plans--
                                    ``(I) to test the effectiveness of 
                                the action plans; and
                                    ``(II) to assist in preventing the 
                                introduction and widespread 
                                dissemination of new foreign and 
                                domestic plant pest and disease threats 
                                in the United States; and
                            ``(vi) as appropriate, consult with, and 
                        use the expertise of, the Administrator of the 
                        Agricultural Research Service in the 
                        development of plant pest and disease 
                        detection, control, and eradication strategies.
                    ``(C) Matters described.--The matters described in 
                this subparagraph are--
                            ``(i) the prioritization of foreign threats 
                        to the agricultural industry; and
                            ``(ii) the development, in consultation 
                        with State departments of agriculture and other 
                        State or regional resource partnerships, of--
                                    ``(I) action plans that effectively 
                                address the foreign threats, including 
                                pathway analysis, offshore mitigation 
                                measures, and comprehensive exclusion 
                                measures at ports of entry and other 
                                key distribution centers; and
                                    ``(II) strategies to employ if a 
                                foreign plant pest or disease is 
                                introduced;
                    ``(D) Reports.--Not later than 1 year after the 
                date of enactment of this paragraph, and annually 
                thereafter, the Secretary shall update and submit to 
                Congress the priority list and action plans described 
                in subparagraph (C), including an accounting of funds 
                expended on the action plans.
            ``(4) 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--
                    ``(A) audit-based certification systems, such as 
                best management practices--
                            ``(i) to address plant pests; and
                            ``(ii) to mitigate the risk of plant pests 
                        in the movement of plants and plant products; 
                        and
                    ``(B) nursery plant pest risk management systems, 
                in collaboration with the nursery industry, research 
                institutions, and other appropriate entities--
                            ``(i) to enable growers to identify and 
                        prioritize nursery plant pests and diseases of 
                        regulatory significance;
                            ``(ii) to prevent the introduction, 
                        establishment, and spread of those plant pests 
                        and diseases; and
                            ``(iii) to reduce the risk of, mitigate, 
                        and eradicate those plant pests and diseases.
            ``(5) Funding.--The Secretary shall use from the Trust Fund 
        to carry out this subsection--
                    ``(A) $10,000,000 for fiscal year 2008;
                    ``(B) $25,000,000 for fiscal year 2009;
                    ``(C) $40,000,000 for fiscal year 2010;
                    ``(D) $50,000,000 for fiscal year 2011; and
                    ``(E) $64,000,000 for fiscal year 2012.
    ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the eligible producers on a farm shall not be 
        eligible for assistance under this section with respect to 
        losses to an insurable commodity or noninsurable commodity if 
        the eligible producers on the farm--
                    ``(A) in the case of an insurable commodity, did 
                not obtain a policy or plan of insurance for the 
                insurable commodity under the Federal Crop Insurance 
                Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance 
                pilot program under that Act) for the crop incurring 
                the losses; or
                    ``(B) in the case of a noninsurable commodity, did 
                not file the required paperwork, and pay the 
                administrative fee by the applicable State filing 
                deadline, for the noninsurable commodity under the 
                noninsured crop assistance program for the crop 
                incurring the losses.
            ``(2) Minimum.--To be considered to have obtained insurance 
        under paragraph (1), 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.--With respect to eligible producers that are 
        limited resource, minority, 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) Equitable relief.--The Secretary may provide 
        equitable relief to eligible producers on a farm that 
        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.
    ``(h) Supplemental Buy-up Noninsured Assistance Program.--
            ``(1) In general.--The Secretary shall establish a program 
        under which eligible producers on a farm may purchase under the 
        noninsured crop assistance program additional yield and price 
        coverage for a crop, including a forage, hay, or honey crop, 
        of--
                    ``(A) 60 or 65 percent (as elected by the producers 
                on the farm) of the yield established for the crop 
                under the program; and
                    ``(B) 100 percent of the price established for the 
                crop under the program.
            ``(2) Fees.--The Secretary shall establish and collect fees 
        from eligible producers on a farm participating in the program 
        established under paragraph (1) to offset all of the costs of 
        the program, as determined by the Secretary.
    ``(i) Payment Limitations.--
            ``(1) In general.--The total amount of disaster assistance 
        that an eligible producer on a farm may receive under this 
        section may not exceed $100,000.
            ``(2) 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.
    ``(j) 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, 2012, as determined by the Secretary.
    ``(k) No Duplicative Payments.--In implementing any other program 
which makes disaster assistance payments (except for indemnities made 
under the Federal Crop Insurance Act 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), or (e).

``SEC. 902. AGRICULTURE 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 `Agriculture 
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 
        Agriculture Disaster Relief Trust Fund amounts equivalent to 
        3.34 percent of the amounts received in the general fund of the 
        Treasury of the United States during fiscal years 2008 through 
        2012 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 
        Agriculture 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.
    ``(c) Administration.--
            ``(1) Reports.--The Secretary of the Treasury shall be the 
        trustee of the Agriculture 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 5 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 Agriculture Disaster 
                Relief Trust Fund as is not in his judgment required to 
                meet current withdrawals. Such investments may be made 
                only in 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 Agriculture 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 Agriculture Disaster Relief 
                Trust Fund shall be credited to and form a part of such 
                Trust Fund.
    ``(d) Expenditures From Trust Fund.--Amounts in the Agriculture 
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.
    ``(e) Authority To Borrow.--
            ``(1) In general.--There are authorized to be appropriated, 
        and are appropriated, to the Agriculture 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 Agriculture 
                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.''.
    (b) Technical Provisions Relating to the Plant Protection Act.--
            (1) Section 442(c) of the Plant Protection Act (7 U.S.C. 
        7772(c)) is amended by striking ``of longer than 60 days''.
            (2) Congress disapproves the rule submitted by the 
        Secretary of Agriculture relating to cost-sharing for animal 
        and plant health emergency programs (68 Fed. Reg. 40541 
        (2003)), and such rule shall have no force or effect.

                  Subtitle B--Conservation Provisions

            PART I--LAND AND SPECIES PRESERVATION PROVISIONS

SEC. 12201. CONSERVATION RESERVE TAX CREDIT.

    (a) Allowance of Credit.--
            (1) In general.--Subpart B of part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        section:

``SEC. 30D. CONSERVATION RESERVE CREDIT.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
rental value of any land enrolled in the conservation reserve program.
    ``(b) Limitations.--
            ``(1) Limitation based on amount of tax.--The credit 
        allowed under this section for any taxable year shall not 
        exceed the excess of--
                    ``(A) the regular tax liability for the taxable 
                year reduced by the sum of the credits allowable under 
                subpart A and sections 27, 30, 30B, and 30C, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(2) Limitation based on allocated portion of national 
        limitation.--The credit allowed under subsection (a) for any 
        taxpayer for any taxable year shall not exceed the excess of--
                    ``(A) the amount of the national credit limitation 
                allocated to such taxpayer under subsection (c) for the 
                fiscal year in which such taxable year ends and all 
                prior fiscal years, over
                    ``(B) the credit allowed under subsection (a) for 
                all prior taxable years.
    ``(c) Conservation Reserve Credit Limitation.--
            ``(1) In general.--There is a conservation reserve credit 
        limitation for each fiscal year of the United States. Such 
        limitation is--
                    ``(A) $750,000,000 for each of fiscal years 2009 
                through 2012, and
                    ``(B) zero thereafter.
            ``(2) Allocation.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of Agriculture, shall allocate the 
                conservation reserve credit limitation to taxpayers--
                            ``(i) who are owners or operators of land 
                        enrolled in the conservation reserve program, 
                        and
                            ``(ii) who have made an election under 
                        section 1234(c)(6) of the Food Security Act of 
                        1985 to receive an allocation under this 
                        paragraph in lieu of a rental payment for such 
                        year under 1233(2) of such Act.
                    ``(B) Allocation limitation.--The Secretary may not 
                allocate more than $50,000 to any 1 taxpayer for any 
                fiscal year.
            ``(3) Carryforward of limitation.--
                    ``(A) In general.--If for any fiscal year the 
                limitation under paragraph (1) (after the application 
                of this paragraph) exceeds the amount allocated to all 
                eligible taxpayers for such fiscal year, the limitation 
                amount for the following fiscal year shall be increased 
                by the amount of such excess.
                    ``(B) Special rule for 2012.--Notwithstanding 
                subparagraph (A), no amount of the conservation reserve 
                credit limitation may be carried to any fiscal year 
                following fiscal year 2012.
    ``(d) Carryforward.--If the amount of the credit allowable under 
subsection (a) for any taxpayer for any taxable year (determined 
without regard to subsection (b)(1)) exceeds the limitation under 
subsection (b)(1), such excess may be carried forward to the succeeding 
taxable year and added to the credit allowable under subsection (a) for 
such succeeding taxable year.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Conservation reserve program.--For purposes of this 
        subsection, the term `conservation reserve program' means the 
        conservation reserve program established under subchapter B of 
        chapter 1 of subtitle D of title XII of the Food Security Act 
        of 1985.
            ``(2) Denial of double benefit.--No deduction or other 
        credit shall be allowed under this chapter for any amount with 
        respect to which a credit is allowed under subsection (a).
            ``(3) Recapture of allocation.--If a taxpayer terminates a 
        contract under the conservation reserve program before the end 
        of the fiscal year with respect to which an allocation under 
        subsection (c)(2) is made, the Secretary shall recapture the 
        amount of the credit allowed under this section which bears the 
        same ratio to the amount so allocated as the number of days in 
        the fiscal year during which the contract was not in effect 
        bears to 365.
            ``(4) Treatment of credit under income tax and self-
        employment income tax.--For purposes of this chapter and 
        chapter 2, the amount of any credit received under this section 
        shall not be treated as income.''.
            (2) Clerical amendment.--The table of sections for subpart 
        B of part IV of subchapter A of chapter 1 is amended by 
        inserting after the item relating to section 30C the following 
        new item:

``Sec. 30D. Conservation reserve credit.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.
    (b) Conforming Amendments to the Food Security Act of 1985.--
            (1) Election to receive tax credits in lieu of payments.--
        Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 
        3834(c)), as amended by this Act, is amended by adding at the 
        end the following new paragraph:
            ``(6) Election to receive tax credits in lieu of 
        payments.--
                    ``(A) In general.--In lieu of an annual rental 
                payment for any year, an owner or operator with land 
                enrolled under the program established under this 
                subchapter may elect to receive for such year an 
                allocation of tax credits under section 30D(c)(2) of 
                the Internal Revenue Code of 1986.
                    ``(B) Election.--Any election under this paragraph 
                shall be made in such form and at such time as the 
                Secretary shall prescribe and shall apply to all 
                contracts of the owner or operator under this 
                subchapter.
                    ``(C) Limitation.--Any election under this 
                paragraph shall not apply with respect to payments 
                under the emergency forestry conservation reserve 
                program under section 1231(k).''.
            (2) Payment limitation.--Paragraph (1) of section 1234(e) 
        of such Act (16 U.S.C. 3834(e)(1)) is amended by inserting 
        ``and allocations of tax credits under section 30D(c)(2) of the 
        Internal Revenue Code of 1986'' after ``in-kind commodities''.

SEC. 12202. 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 before, on, or after the date of the enactment 
of this Act.

SEC. 12203. PERMANENT EXTENSION OF SPECIAL RULE ENCOURAGING 
              CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR 
              CONSERVATION PURPOSES.

    (a) In General.--
            (1) Individuals.--Subparagraph (E) of section 170(b)(1) 
        (relating to contributions of qualified conservation 
        contributions) is amended by striking clause (vi).
            (2) Corporations.--Subparagraph (B) of section 170(b)(2) 
        (relating to qualified conservation contributions by certain 
        corporate farmers and ranchers) is amended by striking clause 
        (iii).
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2007.

SEC. 12204. TAX CREDIT FOR RECOVERY AND RESTORATION OF ENDANGERED 
              SPECIES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1, 
as amended by this Act, is amended by adding at the end the following 
new section:

``SEC. 30E. ENDANGERED SPECIES RECOVERY AND RESTORATION CREDIT.

    ``(a) In General.--In the case of an eligible taxpayer, 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--
            ``(1) the habitat protection easement credit, plus
            ``(2) the habitat restoration credit.
    ``(b) Limitation.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxpayer for any taxable year shall not exceed the 
        endangered species recovery credit limitation allocated to the 
        eligible taxpayer under subsection (f) for the calendar year in 
        which the taxpayer's taxable year ends.
            ``(2) Carryforwards.--
                    ``(A) In general.--If the amount of the credit 
                allowable under subsection (a) for any taxpayer for any 
                taxable year (determined without regard to paragraph 
                (1)) exceeds the endangered species recovery credit 
                limitation allocated under subsection (f) to such 
                taxpayer for the calendar year in which the taxpayer's 
                taxable year ends, such excess may be carried forward 
                to the next taxable year for which an allocation is 
                made to such taxpayer under subsection (f). Any amount 
                carried to another taxable year under this subparagraph 
                shall be treated as added to the credit allowable under 
                subsection (a)(1) or (a)(2), whichever is appropriate, 
                for such taxable year.
                    ``(B) Carryforward of allocation amount.--If the 
                amount of the endangered species recovery credit 
                limitation allocated to a taxpayer for any calendar 
                year under subsection (f) exceeds the amount of the 
                credit allowed to the taxpayer under subsection (a) for 
                the taxable year ending in such calendar year, such 
                excess may be carried forward to the next taxable year 
                of the taxpayer. Any amount carried to another taxable 
                year under this subparagraph shall be treated as 
                allocated to the taxpayer for use in such taxable year 
                under subsection (f).
    ``(c) Eligible Taxpayer; Qualified Agreements.--For purposes of 
this section--
            ``(1) In general.--The term `eligible taxpayer' means--
                    ``(A) a taxpayer who--
                            ``(i) owns real property which contains the 
                        habitat of a qualified species, and
                            ``(ii) enters into a qualified perpetual 
                        habitat protection agreement, a qualified 30-
                        year habitat protection agreement, or a 
                        qualified habitat protection agreement with 
                        respect to such real property, and
                    ``(B) any other taxpayer who--
                            ``(i) is a party to a qualified perpetual 
                        habitat protection agreement, a qualified 30-
                        year habitat protection agreement, or a 
                        qualified habitat protection agreement, and
                            ``(ii) as part of any such agreement, 
                        agrees to assume responsibility for costs paid 
                        or incurred as a result of implementing such 
                        agreement.
            ``(2) Qualified perpetual habitat protection agreement.--
        The term `qualified perpetual habitat protection agreement' 
        means an agreement--
                    ``(A) under which a taxpayer described in paragraph 
                (1)(A) grants to the appropriate Secretary, the 
                Secretary of Agriculture, the Secretary of Defense, or 
                a State an easement in perpetuity for the protection of 
                the habitat of a qualified species, and
                    ``(B) which meets the requirements of paragraph 
                (5).
            ``(3) Qualified 30-year habitat protection agreement.--The 
        term `qualified 30-year habitat protection agreement' means an 
        agreement not described in paragraph (2)--
                    ``(A) under which a taxpayer described in paragraph 
                (1)(A) grants to the appropriate Secretary, the 
                Secretary of Agriculture, the Secretary of Defense, or 
                a State an easement for a period of 30 years or greater 
                for the protection of the habitat of a qualified 
                species, and
                    ``(B) which meets the requirements of paragraph 
                (5).
            ``(4) Qualified habitat protection agreement.--The term 
        `qualified habitat protection agreement' means an agreement--
                    ``(A) under which a taxpayer described in paragraph 
                (1)(A) enters into an agreement not described in 
                paragraph (2) or (3) with the appropriate Secretary, 
                the Secretary of Agriculture, the Secretary of Defense, 
                or a State to protect the habitat of a qualified 
                species for a specified period of time, and
                    ``(B) which meets the requirements of paragraph 
                (5).
            ``(5) Requirements.--An agreement meets the requirements of 
        this paragraph if the agreement--
                    ``(A) is consistent with any recovery plan which is 
                applicable and which has been approved for a qualified 
                species under section 4 of the Endangered Species Act 
                of 1973,
                    ``(B) includes a habitat management plan agreed to 
                by the appropriate Secretary and the eligible taxpayer, 
                and
                    ``(C) requires that technical assistance with 
                respect to the duties under the habitat management plan 
                be provided to the taxpayer by the appropriate 
                Secretary or an entity approved by the appropriate 
                Secretary.
    ``(d) Habitat Protection Easement Credit.--
            ``(1) In general.--For purposes of subsection (a)(1), the 
        habitat protection easement credit for any taxable year is an 
        amount equal to--
                    ``(A) in the case of a taxpayer described in 
                subsection (c)(1)(A) who has entered into a qualified 
                perpetual habitat protection agreement during such 
                taxable year, 100 percent of the excess (if any) of--
                            ``(i) the fair market value of the real 
                        property with respect to which the qualified 
                        perpetual habitat protection agreement is made, 
                        determined on the day before such agreement is 
                        entered into, over
                            ``(ii) the fair market value of such 
                        property, determined on the day after such 
                        agreement is entered into,
                    ``(B) in the case of a taxpayer described in 
                subsection (c)(1)(A) who has entered into a qualified 
                30-year habitat protection agreement during such 
                taxable year, 75 percent of such excess, and
                    ``(C) in the case of any other taxpayer, zero.
            ``(2) Reduction for amount received for easement.--The 
        amount determined under paragraph (1) shall be reduced by any 
        amount received by the taxpayer in connection with the 
        easement.
            ``(3) Limitation based on amount of tax.--The credit 
        allowed under subsection (a)(1) for any taxable year shall not 
        exceed the sum of--
                    ``(A) the taxpayer's regular tax liability for the 
                taxable year reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, 
                30C, and 30D, and
                    ``(B) the tax imposed by section 55(a) for the 
                taxable year.
            ``(4) Carryforward of unused credit.--If the credit 
        allowable under subsection (a)(1) for any taxable year exceeds 
        the limitation imposed by paragraph (3) for such taxable year, 
        such excess shall be carried to the succeeding taxable year and 
        added to the credit allowable under subsection (a)(1) for such 
        succeeding taxable year.
            ``(5) Qualified appraisals required.--No amount shall be 
        taken into account under this subsection unless the eligible 
        taxpayer includes with the taxpayer's return for the taxable 
        year a qualified appraisal (within the meaning of section 
        170(f)(11)(E)) of the real property.
    ``(e) Habitat Restoration Credit.--
            ``(1) In general.--For purposes of subsection (a)(2), the 
        habitat restoration credit for any taxable year shall be an 
        amount equal to--
                    ``(A) in the case of a qualified perpetual habitat 
                protection agreement, 100 percent of the costs paid or 
                incurred by an eligible taxpayer during such taxable 
                year pursuant to the habitat management plan under such 
                agreement,
                    ``(B) in the case of a qualified 30-year habitat 
                protection agreement, 75 percent of the costs paid or 
                incurred by an eligible taxpayer during such taxable 
                year pursuant to the habitat management plan under such 
                agreement, and
                    ``(C) in the case of a qualified habitat protection 
                agreement, 50 percent of the costs paid or incurred by 
                an eligible taxpayer during such taxable year pursuant 
                to the habitat management plan under such agreement.
            ``(2) Limitation based on amount of tax.--The credit 
        allowed under subsection (a)(2) for any taxable year shall not 
        exceed the excess (if any) of--
                    ``(A) the regular tax liability for the taxable 
                year reduced by the sum of the credits allowable under 
                subpart A, sections 27, 30, 30B, 30C, 30D, and 
                subsection (a)(1), over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(3) Carryforward of unused credit.--If the credit 
        allowable under subsection (a)(2) for any taxable year exceeds 
        the limitation imposed by paragraph (2) for such taxable year, 
        such excess shall be carried to the succeeding taxable year and 
        added to the credit allowable under subsection (a)(2) for such 
        succeeding taxable year.
            ``(4) Special rules.--
                    ``(A) Certain costs not included.--No amount shall 
                be taken into account with respect to any cost which is 
                paid or incurred by a taxpayer to comply with any 
                requirement of a Federal, State, or local government 
                (other than costs required under an agreement described 
                in subsection (c)).
                    ``(B) Subsidized financing.--For purposes of 
                paragraph (1), the amount of costs paid or incurred by 
                an eligible taxpayer pursuant to any habitat management 
                plan described in subsection (c)(5)(B) shall be reduced 
                by the amount of any financing provided under any 
                Federal or State program a principal purpose of which 
                is to subsidize financing for the conservation of the 
                habitat of a qualified species.
    ``(f) Endangered Species Recovery Credit Limitation.--
            ``(1) In general.--There is an endangered species recovery 
        credit limitation for each calendar year. Such limitation is--
                    ``(A) for 2008, 2009, 2010, 2011, and 2012--
                            ``(i) with respect to allocations described 
                        in paragraph (2)(A)--
                                    ``(I) $5,000,000 with respect to 
                                qualified perpetual habitat protection 
                                agreements,
                                    ``(II) $2,000,000 with respect to 
                                qualified 30-year habitat protection 
                                agreements, and
                                    ``(III) $1,000,000 with respect to 
                                qualified habitat protection 
                                agreements, and
                            ``(ii) with respect to allocations 
                        described in paragraph (2)(B)--
                                    ``(I) $290,000,000 with respect to 
                                qualified perpetual habitat protection 
                                agreements,
                                    ``(II) $55,000,000 with respect to 
                                qualified 30-year habitat protection 
                                agreements, and
                                    ``(III) $35,000,000 with respect to 
                                qualified habitat protection 
                                agreements, and
                    ``(B) except as provided in paragraph (3), zero 
                thereafter.
            ``(2) Allocation of limitation.--
                    ``(A) Allocations in coordination with the 
                secretary of agriculture.--The limitations described in 
                paragraph (1)(A)(i) shall be allocated to eligible 
                taxpayers by the Secretary in consultation with the 
                Secretary of Agriculture.
                    ``(B) Other allocations.--
                            ``(i) In general.--The limitations 
                        described in paragraph (1)(A)(ii) shall be 
                        allocated to eligible taxpayers in consultation 
                        with the Secretary of the Interior and the 
                        Secretary of Commerce.
                            ``(ii) Establishment of allocation 
                        program.--Not later than 180 days after the 
                        date of the enactment of this Act, the 
                        Secretary, in consultation with the Secretary 
                        of the Interior and the Secretary of Commerce, 
                        shall, by regulation, establish a program to 
                        process applications from eligible taxpayers 
                        and to determine how to best allocate the 
                        credit limitations under clause (i) taking into 
                        account the considerations described in clause 
                        (iii).
                            ``(iii) Considerations.--In accepting 
                        applications to make allocations to eligible 
                        taxpayers under this section, priority shall be 
                        given to taxpayers with agreements--
                                    ``(I) relating to habitats that 
                                will significantly increase the 
                                likelihood of recovering and delisting 
                                a species as an endangered species or a 
                                threatened species (as defined under 
                                section 2 of the Endangered Species Act 
                                of 1973),
                                    ``(II) that are cost-effective and 
                                maximize the benefits to a qualified 
                                species per dollar expended,
                                    ``(III) relating to habitats of 
                                species which have a federally approved 
                                recovery plan pursuant to section 4 of 
                                the Endangered Species Act of 1973,
                                    ``(IV) relating to habitats with 
                                the potential to contribute 
                                significantly to the improvement of the 
                                status of a qualified species,
                                    ``(V) relating to habitats with the 
                                potential to contribute significantly 
                                to the eradication or control of 
                                invasive species that are imperiling a 
                                qualified species,
                                    ``(VI) with habitat management 
                                plans that will manage multiple 
                                qualified species,
                                    ``(VII) with habitat management 
                                plans that will create adjacent or 
                                proximate habitat for the recovery of a 
                                qualified species,
                                    ``(VIII) relating to habitats for 
                                qualified species with an urgent need 
                                for protection,
                                    ``(IX) with habitat management 
                                plans that assist in preventing the 
                                listing of a species as endangered or 
                                threatened under the Endangered Species 
                                Act of 1973 or a similar State law,
                                    ``(X) with habitat management plans 
                                that may resolve conflicts between the 
                                protection of qualified species and 
                                otherwise lawful human activities, and
                                    ``(XI) with habitat management 
                                plans that may resolve conflicts 
                                between the protection of a qualified 
                                species and military training or other 
                                military operations.
            ``(3) Carryover of unused limitation.--If for any calendar 
        year any of the limitations under paragraph (1) (after the 
        application of this paragraph) exceeds the amount allocated to 
        eligible taxpayers for such calendar year, such limitation 
        amount for the following calendar year shall be increased by 
        the amount of such excess.
    ``(g) Other Definitions and Special Rules.--
            ``(1) Appropriate secretary.--The term `appropriate 
        Secretary' has the meaning given to the term `Secretary' under 
        section 3(15) of the Endangered Species Act of 1973.
            ``(2) Habitat management plan.--The term `habitat 
        management plan' means, with respect to any habitat, a plan 
        which--
                    ``(A) identifies one or more qualified species to 
                which the plan applies,
                    ``(B) is designed to--
                            ``(i) restore or enhance the habitat of the 
                        qualified species, or
                            ``(ii) reduce threats to the qualified 
                        species through the management of the habitat,
                    ``(C) describes the current condition of the 
                habitat to be restored or enhanced,
                    ``(D) describes the threats to the qualified 
                species that are intended to be reduced through the 
                plan,
                    ``(E) describes the management practices to be 
                undertaken by the taxpayer,
                    ``(F) provides a schedule of deadlines for 
                undertaking such management practices and the expected 
                responses of the habitat and the species,
                    ``(G) requires monitoring of the management 
                practices and the status of the qualified species and 
                its habitat, and
                    ``(H) describes the technical assistance to be 
                provided to the taxpayer and identifies the entity that 
                will provide such assistance.
            ``(3) Qualified species.--The term `qualified species' 
        means--
                    ``(A) any species listed as an endangered species 
                or threatened species under the Endangered Species Act 
                of 1973, or
                    ``(B) any species for which a finding has been made 
                under section 4(b)(3) of the Endangered Species Act of 
                1973 that listing under such Act may be warranted.
            ``(4) Taking.--The term `taking' has the meaning given to 
        such term under the Endangered Species Act of 1973.
            ``(5) Reduction in basis.--For purposes of this subtitle--
                    ``(A) Habitat protection easement credit.--The 
                basis of any property for which a credit is allowed 
                under subsection (a)(1) shall be reduced by the amount 
                of basis which is allocated, under regulations 
                prescribed by the Secretary, to the easement granted as 
                part of a qualified perpetual habitat protection 
                agreement or a qualified 30-year habitat protection 
                agreement.
                    ``(B) Habitat restoration credit.--If a credit is 
                allowed under subsection (a)(2) for any expenditure 
                with respect to any property, the increase in the basis 
                of such property which would (but for this 
                subparagraph) result from such expenditure shall be 
                reduced by the amount of the credit so allowed.
            ``(6) Denial of double benefit.--No deduction or other 
        credit shall be allowed under this chapter for any amount with 
        respect to which a credit is allowed under subsection (a).
            ``(7) Certification.--No credit shall be allowed under 
        subsection (a) unless the appropriate Secretary certifies that 
        any agreement described in subsection (c) will contribute to 
        the recovery of a qualified species.
            ``(8) Request for authorization of incidental takings.--The 
        Secretary shall request the appropriate Secretary to consider 
        whether to authorize under the Endangered Species Act of 1973 
        takings by an eligible taxpayer of a qualified species to which 
        an agreement described in subsection (c) relates if the takings 
        are incidental to--
                    ``(A) the restoration, enhancement, or management 
                of the habitat pursuant to the habitat management plan 
                under the agreement, or
                    ``(B) the use of the property to which the 
                agreement pertains at any time after the expiration of 
                the easement or the specified period described in 
                subsection (c)(4)(A), but only if such use will leave 
                the qualified species at least as well off on the 
                property as it was before the agreement was made.
            ``(9) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit under any credit allowable 
        under subsection (a) if the Secretary determines that--
                    ``(A) the taxpayer has failed to carry out the 
                duties of the taxpayer under the terms of a qualified 
                perpetual habitat protection agreement, a qualified 30-
                year habitat protection agreement, or a qualified 
                habitat protection agreement, and
                    ``(B) there are no other available means to 
                remediate such failure.''.
    (b) GAO Study.--
            (1) In general.--The Comptroller General of the United 
        States shall undertake a study on the effectiveness of the 
        credit allowed under section 30E of the Internal Revenue Code 
        of 1986 (as added by this Act).
            (2) Issues to be studied.--The study under paragraph (1) 
        shall--
                    (A) evaluate--
                            (i) the contributions that habitat 
                        management plans established under such credit 
                        have made in restoring or enhancing species 
                        habitat and reducing threats to species, and
                            (ii) the implementation of the credit 
                        allocation program established in section 
                        30E(f)(2) of such Code (as so added), and
                    (B) include recommendations for improving the 
                effectiveness of such credit.
            (3) Reports.--
                    (A) Interim report.--Not later than 3 years after 
                the date of the enactment of this Act, the Comptroller 
                General of the United States shall submit to Congress 
                an interim report on the study conducted under 
                paragraph (1).
                    (B) Final report.--Not later than 5 years after the 
                date of the enactment of this Act, the Comptroller 
                General of the United States shall submit to Congress a 
                final report on the study conducted under paragraph 
                (1).
    (c) Conforming Amendments.--
            (1) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (36), by striking the period at the end of 
        paragraph (37) and inserting ``, and'', and by inserting after 
        paragraph (37) the following new paragraph:
            ``(38) to the extent provided in section 30E(g)(5).''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1, as amended by this Act, is amended 
        by inserting after the item relating to section 30D the 
        following new item:

``Sec. 30E. Endangered species recovery and restoration credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 12205. DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDITURES.

    (a) Deduction for Endangered Species Recovery Expenditures.--
            (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 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, 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 the date of the enactment 
of this Act.

SEC. 12206. EXCLUSION FOR CERTAIN PAYMENTS AND PROGRAMS RELATING TO 
              FISH AND WILDLIFE.

    (a) In General.--Subsection (a) of section 126 (relating to certain 
cost-sharing payments) is amended by redesignating paragraph (10) as 
paragraph (13) and by inserting after paragraph (9) the following new 
paragraphs:
            ``(10) The Partners for Fish and Wildlife Program 
        authorized by the Partners for Fish and Wildlife Act.
            ``(11) The Landowner Incentive Program, the State Wildlife 
        Grants Program, and the Private Stewardship Grants Program 
        authorized by the Fish and Wildlife Act of 1956.
            ``(12) The Forest Health Protection Program and the program 
        related to integrated pest management authorized by the 
        Cooperative Forestry Assistance Act of 1978.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to payments received after the date of the enactment of this Act.

SEC. 12207. CREDIT FOR EASEMENTS GRANTED UNDER CERTAIN DEPARTMENT OF 
              AGRICULTURE CONSERVATION PROGRAMS.

    (a) In General.--
            (1) Allowance of credit.--Subpart B of part IV of 
        subchapter A of chapter 1, as amended by this Act, is amended 
        by adding at the end the following new section:

``SEC. 30F. AGRICULTURE CONSERVATION EASEMENT CREDIT.

    ``(a) In General.--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--
            ``(1) the wetlands reserve conservation credit, plus
            ``(2) the grassland reserve conservation credit.
    ``(b) Limitations.--
            ``(1) Limitation based on amount of tax.--The credit 
        allowed under this section for any taxable year shall not 
        exceed the excess of--
                    ``(A) the regular tax liability for the taxable 
                year reduced by the sum of the credits allowable under 
                subpart A and sections 27, 30, 30B, 30C, 30D, 
                30E(a)(1), and 30E(a)(2), over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(2) Limitation based on allocated portion of national 
        limitation.--The credit allowed under subsection (a) for any 
        taxpayer for any taxable year shall not exceed the excess of--
                    ``(A) the amount of the national credit limitation 
                allocated to such taxpayer under subsection (e) for 
                such taxable year and all prior taxable years, over
                    ``(B) the credit allowed under subsection (a) for 
                all prior taxable years.
    ``(c) Wetlands Reserve Conservation Credit.--
            ``(1) In general.--For purposes of subsection (a)(1), in 
        the case of a wetlands reserve eligible taxpayer, the wetlands 
        reserve conservation credit for any taxable year is an amount 
        equal to the applicable percentage of the wetlands reserve 
        easement value.
            ``(2) Wetlands reserve eligible taxpayer.--For purposes of 
        this section, the term `wetlands reserve eligible taxpayer' 
        means any taxpayer who--
                    ``(A) has granted an easement to the Secretary of 
                Agriculture under the wetlands reserve program, and
                    ``(B) who has made an election under section 
                1237A(f)(5) of the Food Security Act of 1985 to receive 
                an allocation under subsection (e)(2) in lieu of a 
                payment under section 1237A(f)(1) of such Act.
            ``(3) Applicable percentage.--For purposes paragraph (1), 
        the term `applicable percentage' means the percentage equal 
        to--
                    ``(A) 100 percent, minus
                    ``(B) the highest percentage of tax which would 
                apply under section 1 or 11 with respect to the 
                taxpayer if the taxable income of the taxpayer were 
                increased by an amount equal to the wetlands reserve 
                easement value.
            ``(4) Wetlands reserve easement value.--For purposes of 
        this section, the term `wetlands reserve easement value' means 
        the lesser of--
                    ``(A) the product of--
                            ``(i) the wetlands reserve geographic area 
                        rate for the area in which the real property to 
                        which the easement pertains is located, and
                            ``(ii) the number of acres to which the 
                        easement applies, or
                    ``(B) the value of any payment to which the 
                taxpayer would be entitled with respect to such 
                easement under section 1237A(f)(1) of the Food Security 
                Act of 1985 if the taxpayer had not made an election 
                under section 1237A(f)(5) of such Act.
            ``(5) Wetlands reserve geographic area rate.--For purposes 
        of paragraph (4)(A)(i), the wetlands reserve geographic area 
        rate with respect to any geographic area shall be the rate per 
        acre, determined by the Secretary in consultation with the 
        Secretary of Agriculture, appropriate for easements granted 
        under the wetlands reserve program in such area.
    ``(d) Grassland Reserve Conservation Credit.--
            ``(1) In general.--For purposes of subsection (a)(2), in 
        the case of any grassland reserve eligible taxpayer, the 
        grassland reserve conservation credit for any taxable year is 
        an amount equal to the applicable percentage of the grassland 
        reserve easement value.
            ``(2) Grassland reserve eligible taxpayer.--For purposes of 
        this section, the term `grassland reserve eligible taxpayer' 
        means any taxpayer who--
                    ``(A) has granted an easement under the grassland 
                reserve program to an eligible easement holder, and
                    ``(B) who has made an election under section 
                1238P(b)(2)(C) of the Food Security Act of 1985 to 
                receive an allocation under subsection (e)(2) in lieu 
                of a payment under section 1238P(b)(2)(A)(i) of such 
                Act.
            ``(3) Applicable percentage.--For purposes paragraph (1), 
        the term `applicable percentage' means the percentage equal 
        to--
                    ``(A) 100 percent, minus
                    ``(B) the highest percentage of tax which would 
                apply under section 1 or 11 with respect to the 
                taxpayer if the taxable income of the taxpayer were 
                increased by an amount equal to the grassland reserve 
                easement value.
            ``(4) Grassland reserve easement value.--For purposes of 
        this section, the term `grassland reserve easement value' 
        means--
                    ``(A) in the case of a permanent conservation 
                easement (within the meaning of section 1238N(3) of the 
                Food Security Act of 1985), the lesser of--
                            ``(i) the product of--
                                    ``(I) the grassland reserve program 
                                geographic area rate for the area in 
                                which the real property to which the 
                                easement pertains is located, and
                                    ``(II) the number of acres to which 
                                the easement applies, or
                            ``(ii) the value of any payment to which 
                        the taxpayer would be entitled in return for 
                        such easement under section 
                        1238P(b)(2)(A)(i)(I) of the Food Security Act 
                        of 1985 if the taxpayer had not made an 
                        election under section 1238P(b)(2)(C) of such 
                        Act, and
                    ``(B) in the case of a 30-year conservation 
                easement (within the meaning of section 1238O(b)(2) of 
                such Act), the lesser of--
                            ``(i) 30 percent of the lesser of the 
                        amount determined under clause (i) or (ii) of 
                        subparagraph (A), or
                            ``(ii) the value of any payment to which 
                        the taxpayer would be entitled in return for 
                        such easement under section 
                        1238P(b)(1)(A)(i)(II) of such Act if the 
                        taxpayer had not made an election under section 
                        1238P(b)(2)(C) of such Act.
            ``(5) Grassland reserve geographic area rate.--For purposes 
        of paragraph (4)(A)(i)(I), the grassland reserve geographic 
        area rate with respect to any geographic area shall be the 
        rate, determined by the Secretary in consultation with the 
        Secretary of Agriculture, appropriate for easements granted 
        under the grassland reserve program in such area.
    ``(e) National Conservation Credit Limitation.--
            ``(1) In general.--The aggregate credits allowed under 
        subsection (a) for all taxpayers shall not exceed 
        $1,000,000,000.
            ``(2) Allocation.--The Secretary, in consultation with the 
        Secretary of Agriculture, shall allocate the credit limitation 
        under paragraph (1) to taxpayers who--
                    ``(A) have granted an easement--
                            ``(i) to the Secretary of Agriculture under 
                        the wetlands reserve program, or
                            ``(ii) to an eligible easement holder under 
                        the grassland reserve program, and
                    ``(B) make an election under such program to 
                receive an allocation under this paragraph in lieu of a 
                payment under such program.
            ``(3) Limitation on allocation.--No amount of the credit 
        limitation may be allocated to any taxpayer for any taxable 
        year which ends after September 30, 2012.
    ``(f) Carryforward.--If the amount of the credit allowable under 
subsection (a) for any taxpayer for any taxable year (determined 
without regard to subsection (b)(1)) exceeds the limitation under 
subsection (b)(1), such excess may be carried forward to the succeeding 
taxable year and added to the credit allowable under subsection (a) for 
such succeeding taxable year.
    ``(g) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Wetlands reserve program.--The term `wetlands reserve 
        program' means the wetlands reserve program established under 
        subchapter C of chapter 1 of subtitle D of title XII of the 
        Food Security Act of 1985.
            ``(2) Grassland reserve program.--The term `grassland 
        reserve program' means the grassland reserve program 
        established under subchapter C of chapter 2 of subtitle D of 
        title XII of the Food Security Act of 1985.
            ``(3) Eligible easement holder.--The term `eligible 
        easement holder' means the Secretary of Agriculture or a State.
            ``(4) Denial of double benefit.--No deduction or other 
        credit shall be allowed under this chapter for any amount with 
        respect to which a credit is allowed under subsection (a).
            ``(5) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowed under 
        subsection (a) shall be reduced by the amount of basis which is 
        allocated, under regulations prescribed by the Secretary, to 
        the easement granted under the wetlands reserve program or the 
        grassland reserve program.
            ``(6) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) if the Secretary, in consultation with the 
        Secretary of Agriculture, determines that--
                    ``(A) the eligible taxpayer has failed to carry out 
                the duties of the taxpayer under the terms of the 
                easement, and
                    ``(B) there are no other available means to 
                remediate such failure.''.
            (2) Conforming amendments.--
                    (A) Section 1016(a), as amended by this Act, is 
                amended by striking ``and'' at the end of paragraph 
                (37), by striking the period at the end of paragraph 
                (38) and inserting ``, and'', and by inserting after 
                paragraph (38) the following new paragraph:
            ``(39) to the extent provided in section 30F(g)(5).''.
                    (B) The table of sections for subpart B of part IV 
                of subchapter A of chapter 1, as amended by this Act, 
                is amended by inserting after the item relating to 
                section 30E the following new item:

``Sec. 30F. Agriculture conservation easement credit.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to easements granted after September 30, 2007, in 
        taxable years ending after such date.
    (b) Conforming Amendments to the Food Security Act of 1985.--
            (1) Wetlands reserve program.--Section 1237A(f) of the Food 
        Security Act of 1985 (16 U.S.C. 3837a(f)), as amended by this 
        Act, is amended by adding at the end the following new 
        paragraph:
            ``(5) Election to receive tax credits in lieu of 
        payments.--
                    ``(A) In general.--In lieu of a payment in cash 
                under paragraph (1), the landowner may elect to receive 
                an allocation of tax credits under section 30E(e)(2) of 
                the Internal Revenue Code of 1986.
                    ``(B) Limitation.--No election may be made under 
                this paragraph with respect to payments to a landowner 
                under a special wetlands reserve enhancement program 
                described in subsection (h).''.
            (2) Grassland reserve program.--Section 1238P(b)(2) of the 
        Food Security Act of 1985 (16 U.S.C. 3838p(b)(2)) is amended by 
        adding at the end the following new subparagraph:
                    ``(C) Election to receive tax credits in lieu of 
                certain payments.--In lieu of a payment in return for a 
                permanent conservation easement under subparagraph 
                (A)(i)(I) or a 30-year conservation easement under 
                subparagraph (A)(i)(II), the landowner may elect to 
                receive an allocation of tax credits under section 
                30E(e)(2) of the Internal Revenue Code of 1986.''.

                       PART II--TIMBER PROVISIONS

SEC. 12211. FOREST CONSERVATION BONDS.

    (a) Tax-Exempt Bond Financing.--
            (1) In general.--For purposes of the Internal Revenue Code 
        of 1986, any qualified forest conservation bond shall be 
        treated as an exempt facility bond under section 142 of such 
        Code.
            (2) Qualified forest conservation bond.--For purposes of 
        this section, the term ``qualified forest conservation bond'' 
        means any bond issued as part of an issue if--
                    (A) 95 percent or more of the net proceeds (as 
                defined in section 150(a)(3) of such Code) of such 
                issue are to be used for qualified project costs, and
                    (B) such bond is issued before the date which is 36 
                months after the date of the enactment of this Act.
            (3) Limitation on aggregate amount issued.--
                    (A) In general.--The maximum aggregate face amount 
                of bonds which may be issued under this subsection 
                shall not exceed $1,500,000,000 for all projects 
                (excluding refunding bonds).
                    (B) Enforcement of limitation.--An issue shall not 
                be treated as an issue described in paragraph (2) if 
                the aggregate face amount of bonds issued pursuant to 
                such issue for any qualified projects costs (when added 
                to the aggregate face amount of bonds previously so 
                issued for such costs) exceeds the amount allocated 
                under subparagraph (C).
                    (C) Initial allocation of limitation.--The 
                limitation described in subparagraph (A) shall be 
                allocated by the Secretary of the Treasury among 
                qualified organizations as follows:
                            (i) 35 percent for qualified project costs 
                        with respect to the cost of acquisition by any 
                        qualified organization in the Pacific Northwest 
                        region.
                            (ii) 30 percent for qualified project costs 
                        with respect to the cost of acquisition by any 
                        qualified organization in the Western region.
                            (iii) 17.5 percent for qualified project 
                        costs with respect to the cost of acquisition 
                        by any qualified organization in the Southeast 
                        region.
                            (iv) 17.5 percent for qualified project 
                        costs with respect to the cost of acquisition 
                        by any qualified organization in the Northeast 
                        region.
                    (D) Secondary allocation procedure.--If for the 
                period ending on the last day of the 24th month after 
                the date of the enactment of this Act, the limitation 
                amount for any region under subparagraph (C) exceeds 
                the amount of bonds allocated by the Secretary of the 
                Treasury during such period, the Secretary of the 
                Treasury may allocate such excess among qualified 
                organizations in any other region in such manner as the 
                Secretary of the Treasury determines appropriate.
                    (E) Regions.--For purposes of this paragraph--
                            (i) Pacific northwest region.--The term 
                        ``Pacific Northwest region'' means Region 6 as 
                        defined by the United States Forest Service of 
                        the Department of Agriculture under section 
                        200.2 of title 36, Code of Federal Regulations.
                            (ii) Western region.--The term ``Western 
                        region'' means Regions 1, 2, 3, 4, 5, and 10 
                        (as so defined).
                            (iii) Southeast region.--The term 
                        ``Southeast region'' means Region 8 (as so 
                        defined).
                            (iv) Northeast region.--The term 
                        ``Northeast region'' means Region 9 (as so 
                        defined).
            (4) Qualified project costs.--For purposes of this 
        subsection, the term ``qualified project costs'' means the 
        costs of acquisition by a qualified organization from an 
        unrelated person of forests and forest land which, at the time 
        of acquisition or immediately thereafter, are subject to a 
        conservation restriction described in subsection (c)(2).
            (5) Special rules.--In applying the Internal Revenue Code 
        of 1986 to any qualified forest conservation bond, the 
        following modifications shall apply:
                    (A) Section 146 of such Code (relating to volume 
                cap) shall not apply.
                    (B) For purposes of section 147(b) of such Code 
                (relating to maturity may not exceed 120 percent of 
                economic life), the land and standing timber acquired 
                with proceeds of qualified forest conservation bonds 
                shall have an economic life of 35 years.
                    (C) Subsections (c) and (d) of section 147 of such 
                Code (relating to limitations on acquisition of land 
                and existing property) shall not apply.
            (6) Treatment of current refunding bonds.--Paragraphs 
        (2)(B) and (3) shall not apply to any bond (or series of bonds) 
        issued to refund a qualified forest conservation bond issued 
        before the date which is 36 months after the date of the 
        enactment of this Act, if--
                    (A) the average maturity date of the issue of which 
                the refunding bond is a part is not later than the 
                average maturity date of the bonds to be refunded by 
                such issue,
                    (B) the amount of the refunding bond does not 
                exceed the outstanding amount of the refunded bond, and
                    (C) the net proceeds of the refunding bond are used 
                to redeem the refunded bond not later than 90 days 
                after the date of the issuance of the refunding bond.
        For purposes of subparagraph (A), average maturity shall be 
        determined in accordance with section 147(b)(2)(A) of such 
        Code.
            (7) Effective date.--This subsection shall apply to 
        obligations issued on or after the date which is 180 days after 
        the date of the enactment of this Act.
    (b) Items From Qualified Harvesting Activities Not Subject To Tax 
or Taken Into Account.--
            (1) In general.--Income, gains, deductions, losses, or 
        credits from a qualified harvesting activity conducted by a 
        qualified organization shall not be subject to tax or taken 
        into account under subtitle A of the Internal Revenue Code of 
        1986.
            (2) Limitation.--The amount of income excluded from gross 
        income under paragraph (1) for any taxable year shall not 
        exceed the amount used by the qualified organization to make 
        debt service payments during such taxable year for qualified 
        forest conservation bonds.
            (3) Qualified harvesting activity.--For purposes of 
        paragraph (1)--
                    (A) In general.--The term ``qualified harvesting 
                activity'' means the sale, lease, or harvesting, of 
                standing timber--
                            (i) on land owned by a qualified 
                        organization which was acquired with proceeds 
                        of qualified forest conservation bonds, and
                            (ii) pursuant to a qualified conservation 
                        plan adopted by the qualified organization.
                    (B) Exceptions.--
                            (i) Cessation as qualified organization.--
                        The term ``qualified harvesting activity'' 
                        shall not include any sale, lease, or 
                        harvesting for any period during which the 
                        organization ceases to qualify as a qualified 
                        organization.
                            (ii) Exceeding limits on harvesting.--The 
                        term ``qualified harvesting activity'' shall 
                        not include any sale, lease, or harvesting of 
                        standing timber on land acquired with proceeds 
                        of qualified forest conservation bonds to the 
                        extent that--
                                    (I) the average annual area of 
                                timber harvested from such land exceeds 
                                2.5 percent of the total area of such 
                                land, or
                                    (II) the quantity of timber removed 
                                from such land exceeds the quantity 
                                which can be removed from such land 
                                annually in perpetuity on a sustained-
                                yield basis with respect to such land.
                        The limitations under subclauses (I) and (II) 
                        shall not apply to post-fire restoration and 
                        rehabilitation or sanitation harvesting of 
                        timber stands which are substantially damaged 
                        by fire, windthrow, or other catastrophes, or 
                        which are in imminent danger from insect or 
                        disease attack.
            (4) Termination.--This subsection shall not apply to any 
        qualified harvesting activity of a qualified organization 
        occurring after the date on which--
                    (A) there is no outstanding qualified forest 
                conservation bond with respect to such qualified 
                organization, or
                    (B) any such bond ceases to be a tax-exempt bond.
            (5) Partial recapture of benefits if harvesting limit 
        exceeded.--If, as of the date that this subsection ceases to 
        apply under paragraph (4)(B), the average annual area of timber 
        harvested from the land exceeds the requirement of subclause 
        (I) or (II) of paragraph (3)(B)(ii), the tax imposed by chapter 
        1 of the Internal Revenue Code of 1986 shall be increased, 
        under rules prescribed by the Secretary of the Treasury, by the 
        sum of the tax benefits attributable to such excess and 
        interest at the underpayment rate under section 6621 of such 
        Code for the period of the underpayment.
    (c) Definitions.--For purposes of this section--
            (1) Qualified conservation plan.--The term ``qualified 
        conservation plan'' means a multiple land use program or plan 
        which--
                    (A) is designed and administered primarily for the 
                purposes of protecting and enhancing wildlife and fish, 
                timber, scenic attributes, recreation, and soil and 
                water quality of the forest and forest land,
                    (B) mandates that conservation of forest and forest 
                land is the single-most significant use of the forest 
                and forest land, and
                    (C) requires that timber harvesting be consistent 
                with--
                            (i) restoring and maintaining reference 
                        conditions for the region's ecotype,
                            (ii) restoring and maintaining a 
                        representative sample of young, mid, and late 
                        successional forest age classes,
                            (iii) maintaining or restoring the 
                        resources' ecological health for purposes of 
                        preventing damage from fire, insect, or 
                        disease,
                            (iv) maintaining or enhancing wildlife or 
                        fish habitat, or
                            (v) enhancing research opportunities in 
                        sustainable renewable resource uses.
            (2) Conservation restriction.--The conservation restriction 
        described in this paragraph is a restriction which--
                    (A) is granted in perpetuity to an unrelated person 
                which is described in section 170(h)(3) of such Code 
                and which, in the case of a nongovernmental unit, is 
                organized and operated for conservation purposes,
                    (B) meets the requirements of clause (ii) or 
                (iii)(II) of section 170(h)(4)(A) of such Code,
                    (C) obligates the qualified organization to pay the 
                costs incurred by the holder of the conservation 
                restriction in monitoring compliance with such 
                restriction, and
                    (D) requires an increasing level of conservation 
                benefits to be provided whenever circumstances allow 
                it.
            (3) Qualified organization.--The term ``qualified 
        organization'' means a nonprofit organization--
                    (A) substantially all the activities of which are 
                charitable, scientific, or educational, including 
                acquiring, protecting, restoring, managing, and 
                developing forest lands and other renewable resources 
                for the long-term charitable, educational, scientific, 
                and public benefit,
                    (B) which periodically conducts educational 
                programs designed to inform the public of 
                environmentally sensitive forestry management and 
                conservation techniques,
                    (C) which has at all times a board of directors--
                            (i) at least 20 percent of the members of 
                        which are representatives of the conservation 
                        community,
                            (ii) at least 20 percent of the members of 
                        which are public officials, and
                            (iii) not more than one-third of the 
                        members of which are individuals who are or 
                        were at any time within 5 years before the 
                        beginning of a term of membership on the board, 
                        an employee of, independent contractor with 
                        respect to, officer of, director of, or held a 
                        material financial interest in, a commercial 
                        forest products enterprise with which the 
                        qualified organization has a contractual or 
                        other financial arrangement,
                    (D) the bylaws of which require at least two-thirds 
                of the members of the board of directors to vote 
                affirmatively to approve the qualified conservation 
                plan and any change thereto, and
                    (E) upon dissolution, is required to dedicate its 
                assets to--
                            (i) an organization described in section 
                        501(c)(3) of such Code which is organized and 
                        operated for conservation purposes, or
                            (ii) a governmental unit described in 
                        section 170(c)(1) of such Code.
            (4) Unrelated person.--The term ``unrelated person'' means 
        a person who is not a related person.
            (5) Related person.--A person shall be treated as related 
        to another person if--
                    (A) such person bears a relationship to such other 
                person described in section 267(b) (determined without 
                regard to paragraph (9) thereof), or 707(b)(1), of such 
                Code, determined by substituting ``25 percent'' for 
                ``50 percent'' each place it appears therein, and
                    (B) in the case such other person is a non-profit 
                organization, if such person controls directly or 
                indirectly more than 25 percent of the governing body 
                of such organization.

SEC. 12212. DEDUCTION FOR QUALIFIED TIMBER GAIN.

    (a) In General.--Part I of subchapter P of chapter 1 is amended by 
adding at the end the following new section:

``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

    ``(a) In General.--In the case of a taxpayer which elects the 
application of this section for a taxable year, there shall be allowed 
a deduction against gross income in an amount equal to 60 percent of 
the lesser of--
            ``(1) the taxpayer's qualified timber gain for such year, 
        or
            ``(2) the taxpayer's net capital gain for such year.
    ``(b) 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--
            ``(1) the sum of the taxpayer's gains described in 
        subsections (a) and (b) of section 631 for such year, over
            ``(2) the sum of the taxpayer's losses described in such 
        subsections for such year.
    ``(c) Special Rules for Pass-Thru Entities.--
            ``(1) In the case of any qualified timber gain of a pass-
        thru entity (as defined in section 1(h)(10)) other than a real 
        estate investment trust, the election under this section shall 
        be made separately by each taxpayer subject to tax on such 
        gain.
            ``(2) In the case of any qualified timber gain of a real 
        estate investment trust, the election under this section shall 
        be made by the real estate investment trust.
    ``(d) Election.--An election under this section may be made only 
with respect to the first taxable year beginning after the date of the 
enactment of this section.''.
    (b) Coordination With Maximum Capital Gains Rates.--
            (1) Taxpayers other than corporations.--Paragraph (2) of 
        section 1(h) is amended to read as follows:
            ``(2) Reduction of net capital gain.--For purposes of this 
        subsection, the net capital gain for any taxable year shall be 
        reduced (but not below zero) by the sum of--
                    ``(A) the amount which the taxpayer takes into 
                account as investment income under section 
                163(d)(4)(B)(iii), and
                    ``(B) in the case of a taxable year with respect to 
                which an election is in effect under section 1203, the 
                lesser of--
                            ``(i) the amount described in paragraph (1) 
                        of section 1203(a), or
                            ``(ii) the amount described in paragraph 
                        (2) of such section.''.
            (2) Corporations.--Section 1201 is amended by redesignating 
        subsection (b) as subsection (c) and inserting after subsection 
        (a) the following new subsection:
    ``(b) Qualified Timber Gain Not Taken Into Account.--For purposes 
of this section, in the case of a corporation with respect to which an 
election is in effect under section 1203, the net capital gain for any 
taxable year shall be reduced (but not below zero) by the corporation's 
qualified timber gain (as defined in section 1203(b)).''.
    (c) Deduction Allowed Whether or Not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 is amended by inserting 
before the last sentence the following new paragraph:
            ``(22) Qualified timber gains.--The deduction allowed by 
        section 1203.''.
    (d) Deduction Allowed in Computing Adjusted Current Earnings.--
Subparagraph (C) of section 56(g)(4) is amended by adding at the end 
the following new clause:
                            ``(vii) Deduction for qualified timber 
                        gain.--Clause (i) shall not apply to any 
                        deduction allowed under section 1203.''.
    (e) Deduction Allowed in Computing Taxable Income of Electing Small 
Business Trusts.--Subparagraph (C) of section 641(c)(2) is amended by 
inserting after clause (iii) the following new clause:
                            ``(iv) The deduction allowed under section 
                        1203.''.
    (f) Treatment of Qualified Timber Gain of Real Estate Investment 
Trusts.--Paragraph (3) of section 857(b) is amended by inserting after 
subparagraph (F) the following new subparagraph:
                    ``(G) Treatment of qualified timber gain.--For 
                purposes of this part, in the case of a real estate 
                investment trust with respect to which an election is 
                in effect under section 1203--
                            ``(i) Reduction of net capital gain.--The 
                        net capital gain of the real estate investment 
                        trust for any taxable year shall be reduced 
                        (but not below zero) by the real estate 
                        investment trust's qualified timber gain (as 
                        defined in section 1203(b)).
                            ``(ii) Adjustment to shareholder's basis 
                        attributable to deduction for qualified timber 
                        gains.--
                                    ``(I) In general.--The adjusted 
                                basis of shares in the hands of the 
                                shareholder shall be increased by the 
                                amount of the deduction allowable under 
                                section 1203(a) as provided in 
                                subclauses (II) and (III).
                                    ``(II) Allocation of basis increase 
                                for distributions made during taxable 
                                year.--For any taxable year of a real 
                                estate investment trust for which an 
                                election is in effect under section 
                                1203, in the case of a distribution 
                                made with respect to shares during such 
                                taxable year of amounts attributable to 
                                the deduction allowable under section 
                                1203(a), the adjusted basis of such 
                                shares shall be increased by the amount 
                                of such distributions.
                                    ``(III) Allocation of excess.--If 
                                the deduction allowable under section 
                                1203(a) for a taxable year exceeds the 
                                amount of distributions described in 
                                subclause (II), the excess shall be 
                                allocated to every shareholder of the 
                                real estate investment trust at the 
                                close of the trust's taxable year in 
                                the same manner as if a distribution of 
                                such excess were made with respect to 
                                such shares.
                                    ``(IV) Designations.--To the extent 
                                provided in regulations, a real estate 
                                investment trust shall designate the 
                                amounts described in subclauses (II) 
                                and (III) in a manner similar to the 
                                designations provided with respect to 
                                capital gains described in 
                                subparagraphs (C) and (D).
                                    ``(V) Definitions.--As used in this 
                                subparagraph, the terms `share' and 
                                `shareholder' shall include beneficial 
                                interests and holders of beneficial 
                                interests, respectively.
                            ``(iii) Earnings and profits deduction for 
                        qualified timber gains.--The deduction 
                        allowable under section 1203(a) for a taxable 
                        year shall be allowed as a deduction in 
                        computing the earnings and profits of the real 
                        estate investment trust for such taxable year. 
                        The earnings and profits of any such 
                        shareholder which is a corporation shall be 
                        appropriately adjusted in accordance with 
                        regulations prescribed by the Secretary.''.
    (g) Loss Attributable to Basis Adjustment for Deduction for 
Qualified Timber Gain of Real Estate Investment Trusts.--
            (1) Section 857(b)(8) is amended by redesignating 
        subparagraphs (B) and (C) as subparagraphs (C) and (D), 
        respectively, and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Loss attributable to basis adjustment for 
                deduction for qualified timber gain.--If--
                            ``(i) a shareholder of a real estate 
                        investment trust receives a basis adjustment 
                        provided under subsection (b)(3)(G)(ii), and
                            ``(ii) the taxpayer has held such share or 
                        interest for 6 months or less,
                then any loss on the sale or exchange of such share or 
                interest shall, to the extent of the amount described 
                in clause (i), be disallowed.''.
            (2) Subparagraph (D) of section 857(b)(8), as redesignated 
        by paragraph (1), is amended by striking ``subparagraph (A)'' 
        and inserting ``subparagraphs (A) and (B)''.
    (h) Conforming Amendments.--
            (1) Subparagraph (B) of section 172(d)(2) is amended to 
        read as follows:
                    ``(B) the exclusion under section 1202, and the 
                deduction under section 1203, shall not be allowed.''.
            (2) Paragraph (4) of section 642(c) is amended by striking 
        the first sentence and inserting ``To the extent that the 
        amount otherwise allowable as a deduction under this subsection 
        consists of gain described in section 1202(a) or qualified 
        timber gain (as defined in section 1203(b)), proper adjustment 
        shall be made for any exclusion allowable to the estate or 
        trust under section 1202 and for any deduction allowable to the 
        estate or trust under section 1203.''
            (3) Paragraph (3) of section 643(a) is amended by striking 
        the last sentence and inserting ``The exclusion under section 
        1202 and the deduction under section 1203 shall not be taken 
        into account.''.
            (4) Subparagraph (C) of section 643(a)(6) is amended to 
        read as follows:
                    ``(C) Paragraph (3) shall not apply to a foreign 
                trust. In the case of such a trust--
                            ``(i) there shall be included gains from 
                        the sale or exchange of capital assets, reduced 
                        by losses from such sales or exchanges to the 
                        extent such losses do not exceed gains from 
                        such sales or exchanges, and
                            ``(ii) the deduction under section 1203 
                        shall not be taken into account.''.
            (5) Paragraph (4) of section 691(c) is amended by inserting 
        ``1203,'' after ``1202,''.
            (6) Paragraph (2) of section 871(a) is amended by inserting 
        ``or 1203,'' after ``1202,''.
            (7) The table of sections for part I of subchapter P of 
        chapter 1 is amended by adding at the end the following new 
        item:

``Sec. 1203. Deduction for qualified timber gain.''.
    (i) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 12213. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION OF REAL 
              ESTATE INVESTMENT TRUSTS.

    (a) In General.--
            (1) Ordinary income.--Subparagraph (B) of section 
        4981(e)(1) is amended to read as follows:
                    ``(B) by not taking into account--
                            ``(i) any gain or loss from the sale or 
                        exchange of capital assets (determined without 
                        regard to any reduction that would be applied 
                        for purposes of section 857(b)(3)(G)(i)), and
                            ``(ii) any deduction allowable under 
                        section 1203, and''.
            (2) Capital gain net income.--Section 4981(e)(2) is amended 
        by adding at the end the following new subparagraph:
                    ``(D) Qualified timber gain.--The amount determined 
                under subparagraph (A) shall be determined without 
                regard to any reduction that would be applied for 
                purposes of section 857(b)(3)(G)(i) but shall be 
                reduced for any deduction allowable under section 1203 
                for such calendar year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 12214. 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 of 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:
            ``(8) Termination date.--For purposes of this subsection, 
        the term `termination date' means the last day of the first 
        taxable year beginning after the date of the enactment of this 
        paragraph.''.
    (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. 12215. 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 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. 12216. 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 ``not more than 20 percent of the value of its total 
assets is represented by securities of one or more taxable 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. 12217. 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 
                organizations.--
                            ``(i) In general.--In the case of 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
                                    ``(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 ``independent contractor (as 
defined in section 856(d)(3)) from whom the trust itself does not 
derive or receive 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 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' means the last 
                day of the first taxable year beginning after the date 
                of the enactment of this subparagraph.''.
    (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.

                     Subtitle C--Energy Provisions

                     PART I--ELECTRICITY GENERATION

SEC. 12301. CREDIT FOR RESIDENTIAL AND BUSINESS WIND PROPERTY.

    (a) Residential Wind Property.--
            (1) In general.--Section 25D(a) (relating to allowance of 
        credit) is amended by striking ``and'' at the end of paragraph 
        (2), by striking the period at the end of paragraph (3) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) (relating to maximum 
        credit) is amended by striking ``and'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) $500 with respect to each half kilowatt of 
                capacity (not to exceed $4,000) of wind turbines for 
                which qualified small wind energy property expenditures 
                are made.''.
            (3) Qualified small wind energy property expenditures.--
                    (A) In general.--Section 25D(d) (relating to 
                definitions) is amended by adding at the end the 
                following new paragraph:
            ``(4) Qualified small wind energy property expenditure.--
        The term `qualified small wind energy property expenditure' 
        means an expenditure for qualified small wind energy property 
        (as defined in section 48(c)(3)(A)) installed on or in 
        connection with a dwelling unit located in the United States 
        and used as a residence by the taxpayer.''.
                    (B) No double benefit.--Section 45(d)(1) (relating 
                to wind facility) is amended by adding at the end the 
                following new sentence: ``Such term shall not include 
                any facility with respect to which any qualified small 
                wind energy property expenditure (as defined in 
                subsection (d)(4) of section 25D) is taken into account 
                in determining the credit under such section.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A) (relating to maximum expenditures) is 
        amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end the following new clause:
                            ``(iv) $1,667 in the case of each half 
                        kilowatt of capacity (not to exceed $13,333) of 
                        wind turbines for which qualified small wind 
                        energy property expenditures are made.''.
    (b) Business Wind Property.--
            (1) In general.--Section 48(a)(3)(A) (defining energy 
        property) is amended by striking ``or'' at the end of clause 
        (iii), by adding ``or'' at the end of clause (iv), and by 
        inserting after clause (iv) the following new clause:
                            ``(v) qualified small wind energy 
                        property,''.
            (2) 30 percent credit.--Section 48(a)(2)(A)(i) is amended 
        by striking ``and'' at the end of subclause (II) and by 
        inserting after subclause (III) the following new subclause:
                                    ``(IV) qualified small wind energy 
                                property, and''.
            (3) Qualified small wind energy property.--Section 48(c) is 
        amended--
                    (A) by inserting ``; Qualified Small Wind Energy 
                Property'' after ``Qualified Microturbine Property'' in 
                the heading,
                    (B) by striking ``For purposes of this subsection'' 
                and inserting ``For purposes of this section'',
                    (C) by striking ``paragraph (1)'' in paragraphs 
                (1)(B) and (2)(B) and inserting ``subsection (a)(1)'', 
                and
                    (D) by adding at the end the following new 
                paragraph:
            ``(3) Qualified small wind energy property.--
                    ``(A) In general.--The term `qualified small wind 
                energy property' means property which uses a qualifying 
                small wind turbine to generate electricity.
                    ``(B) Limitation.--In the case of qualified small 
                wind energy property placed in service during the 
                taxable year, the credit otherwise determined under 
                subsection (a)(1) for such year with respect to such 
                property shall not exceed $4,000 with respect to any 
                taxpayer.
                    ``(C) Qualifying small wind turbine.--The term 
                `qualifying small wind turbine' means a wind turbine 
                which--
                            ``(i) has a nameplate capacity of not more 
                        than 100 kilowatts, and
                            ``(ii) meets the performance standards of 
                        the American Wind Energy Association.
                    ``(D) Termination.--The term `qualified small wind 
                energy property' shall not include any property for any 
                period after December 31, 2008.''.
            (4) Conforming amendment.--Section 48(a)(1) is amended by 
        striking ``paragraphs (1)(B) and (2)(B)'' and inserting 
        ``paragraphs (1)(B), (2)(B), and (3)(B)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures after December 31, 2007.

SEC. 12302. LANDOWNER INCENTIVE TO ENCOURAGE ELECTRIC TRANSMISSION 
              BUILD-OUT.

    (a) In General.--Part III of subchapter B of chapter 1 (relating to 
items specifically excluded from gross income) is amended by inserting 
after section 139A the following new section:

``SEC. 139B. ELECTRIC TRANSMISSION EASEMENT PAYMENTS.

    ``(a) In General.--Gross income shall not include any qualified 
electric transmission easement payment.
    ``(b) Qualified Electric Transmission Easement Payment.--For 
purposes of this section, the term `qualified electric transmission 
payment' means any payment which is made--
            ``(1) by an electric utility or electric transmission 
        entity pursuant to an easement or other agreement granted by 
        the payee (or any predecessor of such payee), and
            ``(2) for the right of such entity (or any successors of 
        such entity) to locate on such payee's property transmission 
        lines and equipment used to transmit electricity at 230 or more 
        kilovolts, primarily from qualified facilities described in 
        section 45(d) (without regard to any placed in service date or 
        the last sentence of paragraph (4) thereof) or energy property 
        (as defined in section 48(a)(3)) placed in service after the 
        date of the enactment of this section.
    ``(c) No Increase in Basis.--Notwithstanding any other provision of 
this subtitle, no increase in the basis or adjusted basis of any 
property shall result from any amount excluded under this subsection 
with respect to such property.
    ``(d) Denial of Double Benefit.--Notwithstanding any other 
provision of this subtitle, no deduction or credit shall be allowed (to 
the person for whose benefit a qualified electric transmission easement 
payment is made) for, or by reason of, any expenditure to the extent of 
the amount excluded under this section with respect to such 
expenditure.''.
    (b) Clerical Amendment.--The table of sections for such part III is 
amended by inserting after the item relating to section 139A the 
following new item:

``Sec. 139B. Electric transmission easement payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments received after the date of the enactment of this Act.

SEC. 12303. EXCEPTION TO REDUCTION OF RENEWABLE ELECTRICITY CREDIT.

    (a) In General.--Section 45(b)(3) (relating to credit reduced for 
grants, tax-exempt bonds, subsidized energy financing, and other 
credits) is amended by adding after the last sentence the following: 
``This paragraph shall not apply with respect to any loans, loan 
guarantees, or grants issued by the Secretary of Agriculture under 
authority granted by section 9007 of the Farm Security and Rural 
Investment Act of 2002.''
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after the date of the enactment of this 
Act.

                         PART II--ALCOHOL FUEL

SEC. 12311. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOFUEL PLANT 
              PROPERTY.

    (a) In General.--Paragraph (3) of section 168(l) (relating to 
special allowance for cellulosic biomass ethanol plant property) is 
amended to read as follows:
            ``(3) Cellulosic biofuel.--For purposes of this subsection, 
        the term `cellulosic biofuel' means any alcohol, ether, ester, 
        or hydrocarbon produced from any lignocellulosic or 
        hemicellulosic matter that is available on a renewable or 
        recurring basis.''.
    (b) Conforming Amendments.--
            (1) Subsection (l) of section 168 is amended by striking 
        ``cellulosic biomass ethanol'' each place it appears and 
        inserting ``cellulosic biofuel''.
            (2) The heading of section 168(l) is amended by striking 
        ``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic 
        Biofuel''.
            (3) The heading of paragraph (2) of section 168(l) is 
        amended by striking ``cellulosic biomass ethanol'' and 
        inserting ``cellulosic biofuel''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 12312. 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 
(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 the 
                excess of--
                            ``(i) $1.25, over
                            ``(ii) the sum of--
                                    ``(I) the amount of the credit in 
                                effect for alcohol which is ethanol 
                                under subsection (b)(1) (without regard 
                                to subsection (b)(3)) at the time of 
                                the qualified cellulosic biofuel 
                                production, plus
                                    ``(II) 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 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 biofuel mixture' means a mixture of 
                cellulosic biofuel and any petroleum fuel product 
                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.--
                            ``(i) In general.--The term `cellulosic 
                        biofuel' has the meaning given such term under 
                        section 168(l)(3), but does not include any 
                        alcohol with a proof of less than 150.
                            ``(ii) Determination of proof.--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) Application of paragraph.--This paragraph 
                shall apply with respect to qualified cellulosic 
                biofuel production after December 31, 2007, and before 
                April 1, 2015.''.
            (2) Termination date not to apply.--Subsection (e) of 
        section 40 (relating to termination) is amended--
                    (A) by inserting ``or subsection (b)(6)(G)'' 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).''.
    (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 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 for each gallon of such 
                cellulosic biomass 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.''.
    (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) Effective Date.--The amendments made by this section shall 
apply to fuel produced after December 31, 2007.

SEC. 12313. EXTENSION OF SMALL ETHANOL PRODUCER CREDIT.

    Paragraph (1) of section 40(e) (relating to termination) is 
amended--
            (1) in subparagraph (A), by inserting ``(December 31, 2012, 
        in the case of the credit allowed by reason of subsection 
        (a)(3))'' after ``December 31, 2010'', and
            (2) in subparagraph (B), by inserting ``(January 1, 2013, 
        in the case of the credit allowed by reason of subsection 
        (a)(3))'' after ``January 1, 2011''.

SEC. 12314. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.

    (a) In General.--Subsection (a) of section 40 (relating to alcohol 
used as fuel), as amended by this Act, is amended by striking ``plus'' 
at the end of paragraph (3), by striking the period at the end of 
paragraph (4) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(5) the small fossil free alcohol producer credit.''.
    (b) Small Fossil Free Alcohol Producer Credit.--Subsection (b) of 
section 40, as amended by this Act, is amended by adding at the end the 
following new paragraph:
            ``(7) Small fossil free alcohol producer credit.--
                    ``(A) In general.--In addition to any other credit 
                allowed under this section, there shall be allowed as a 
                credit against the tax imposed by this chapter for the 
                taxable year an amount equal to 10 cents for each 
                gallon of not more than 60,000,000 gallons of qualified 
                fossil free alcohol production.
                    ``(B) Qualified fossil free alcohol production.--
                For purposes of this section, the term `qualified 
                fossil free alcohol production' means alcohol which is 
                produced by an eligible small fossil free alcohol 
                producer at a fossil free alcohol production facility 
                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 
                                alcohol 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 alcohol at 
                                retail to another person and places 
                                such alcohol in the fuel tank of such 
                                other person, or
                            ``(ii) is used or sold by the taxpayer for 
                        any purpose described in clause (i).
                    ``(C) Additional distillation excluded.--The 
                qualified fossil free alcohol 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.''.
    (c) Eligible Small Fossil Free Alcohol Producer.--Section 40 is 
amended by adding at the end the following new subsection:
    ``(i) Definitions and Special Rules for Small Fossil Free Alcohol 
Producer.--For purposes of this section--
            ``(1) In general.--The term `eligible small fossil free 
        alcohol producer' means a person, who at all times during the 
        taxable year, has a productive capacity for alcohol from all 
        fossil free alcohol production facilities of the taxpayer which 
        is not in excess of 60,000,000 gallons.
            ``(2) Fossil free alcohol production facility.--The term 
        `fossil free alcohol production facility' means any facility at 
        which 90 percent of the energy used in the production of 
        alcohol is produced from biomass (as defined in section 
        45K(c)(3)).
            ``(3) Aggregation rule.--For purposes of the 60,000,000 
        gallon limitation under paragraph (1) and subsection (b)(7)(A), 
        all members of the same controlled group of corporations 
        (within the meaning of section 267(f)) and all persons under 
        common control (within the meaning of section 52(b) but 
        determined by treating an interest of more than 50 percent as a 
        controlling interest) shall be treated as 1 person.
            ``(4) Partnership, s corporations, and other pass-thru 
        entities.--In the case of a partnership, trust, S corporation, 
        or other pass-thru entity, the limitation contained in 
        paragraph (1) shall be applied at the entity level and at the 
        partner or similar level.
            ``(5)  Allocation.--For purposes of this subsection, in the 
        case of a facility in which more than 1 person has an interest, 
        productive capacity shall be allocated among such persons in 
        such manner as the Secretary may prescribe.
            ``(6) Regulations.--The Secretary may prescribe such 
        regulations as may be necessary to prevent the credit provided 
        for in subsection (a)(5) from directly or indirectly 
        benefitting any person with a direct or indirect productive 
        capacity of more than 60,000,000 gallons of alcohol from fossil 
        free alcohol production facilities during the taxable year.
            ``(7) Allocation of small fossil free alcohol producer 
        credit to patrons of cooperative.--Rules similar to the rules 
        under subsection (g)(6) shall apply for purposes of this 
        subsection.''.
    (d) Alcohol Not Used as a Fuel, etc.--
            (1) In general.--Paragraph (3) of section 40(d), as amended 
        by this Act, is amended by redesignating subparagraph (E) as 
        subparagraph (F) and by inserting after subparagraph (D) the 
        following new subparagraph:
                    ``(E) Small fossil free alcohol producer credit.--
                If--
                            ``(i) any credit is allowed under 
                        subsection (a)(5), and
                            ``(ii) any person does not use such fuel 
                        for a purpose described in subsection 
                        (b)(7)(B),
                then there is hereby imposed on such person a tax equal 
                to 10 cents for each gallon of such alcohol.''.
            (2) Conforming amendment.--Subparagraph (F) of section 
        40(d)(3), as redesignated by paragraph (1) and amended by this 
        Act, is amended by striking ``or (D)'' and inserting ``(D), or 
        (E)''.
    (e) Alcohol Produced in the United States.--Section 40(d)(6), as 
added by this Act, is amended--
            (1) by inserting ``or small fossil free alcohol producer 
        credit'' after ``cellulosic alcohol producer credit'', and
            (2) by inserting ``and fossil free'' after ``cellulosic'' 
        in the heading.
    (f) Termination.--Paragraph (1) of section 40(e), as amended by 
this Act, is amended--
            (1) in subparagraph (A), by inserting ``, and December 31, 
        2011, in the case of the credit allowed by reason of subsection 
        (a)(5)'' after ``subsection (a)(3)'', and
            (2) in subparagraph (B), by inserting ``, and January 1, 
        2012, in the case of the credit allowed by reason of subsection 
        (a)(5)'' after ``subsection (a)(3)''.
    (g) Effective Date.--The amendments made by this section shall 
apply to fuel produced after December 31, 2007.

SEC. 12315. MODIFICATION OF ALCOHOL CREDIT.

    (a) Income Tax Credit.--Subsection (h) of section 40 (relating to 
reduced credit for ethanol blenders) is amended by adding at the end 
the following new paragraph:
            ``(3) Reduced amount after sale of 7,500,000,000 gallons.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after the date described in subparagraph (B), 
                the last row in the table in paragraph (2) shall be 
                applied by substituting `46 cents' for `51 cents'.
                    ``(B) Date described.--The date described in this 
                subparagraph is the first date on which 7,500,000,000 
                gallons of ethanol (including cellulosic ethanol) have 
                been produced in or imported into the United States 
                after the date of the enactment of this paragraph, as 
                certified by the Secretary, in consultation with the 
                Administrator of the Environmental Protection 
                Agency.''.
    (b) Excise Tax Credit.--
            (1) In general.--Paragraph (2) of section 6426(b) (relating 
        to alcohol fuel mixture credit) is amended by adding at the end 
        the following new subparagraph:
                    ``(C) Reduced amount after sale of 7,500,000,000 
                gallons.--In the case of any alcohol fuel mixture 
                produced in a calendar year beginning after the date 
                described in section 40(h)(3)(B), subparagraph (A) 
                shall be applied by substituting `46 cents' for `51 
                cents'.''.
            (2) 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. 12316. 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, 2007.

SEC. 12317. 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''.

SEC. 12318. LIMITATIONS ON, AND REDUCTIONS OF, 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, an exported article that does not contain 
        ethyl alcohol or a mixture of ethyl alcohol shall not be 
        treated as the same kind and quality as a qualified article 
        that does contain ethyl alcohol or a mixture of ethyl 
        alcohol.''.
    (b) Limitations on, and Reductions of, Drawbacks.--Section 313 of 
the Tariff Act of 1930 (19 U.S.C. 1313) is amended by adding at the end 
the following new subsection:
    ``(z) Limitations on, and Reductions of, Drawbacks.--
            ``(1) Limitations.--
                    ``(A) In general.--Ethyl alcohol or mixture 
                containing ethyl alcohol described in subparagraph (B) 
                may be treated as being of the same kind and quality 
                under subsection (b) of this section or may be treated 
                as being commercially interchangeable with any other 
                ethyl alcohol or mixture containing ethyl alcohol under 
                subsection (j)(2) of this section, only if the other 
                ethyl alcohol or mixture--
                            ``(i) if imported, is subject to the 
                        additional duty under subheading 9901.00.50 of 
                        the Harmonized Tariff Schedule of the United 
                        States; or
                            ``(ii) if domestic, is suitable for use as 
                        a fuel or in a mixture to be used as a fuel as 
                        described in such subheading 9901.00.50.
                    ``(B) Ethyl alcohol or mixture containing ethyl 
                alcohol described.--Ethyl alcohol or mixture containing 
                ethyl alcohol described in this subparagraph means--
                            ``(i) ethyl alcohol classifiable under 
                        subheading 2207.10.60 or 2207.20.00 of the 
                        Harmonized Tariff Schedule of the United 
                        States, or
                            ``(ii) a mixture containing ethyl alcohol 
                        classifiable under heading 2710 or 3824 of the 
                        Harmonized Tariff Schedule of the United 
                        States,
                which, if imported would be subject to additional duty 
                under subheading 9901.00.50 of such Schedule.
            ``(2) Reduction of drawback.--For purposes of subsections 
        (b), (j)(2), and (p) of this section, the amount of the refund 
        as drawback under this section shall be reduced by an amount 
        equal to any Federal tax credit or refund of any Federal tax 
        paid on the merchandise with respect to which the drawback is 
        claimed.''.
    (c) Effective Date.--The amendments made by this section apply to 
articles exported on or after the date that is 15 days after the date 
of the enactment of this Act.

             PART III--BIODIESEL AND RENEWABLE DIESEL FUEL

SEC. 12321. EXTENSION AND MODIFICATION OF CREDIT FOR BIODIESEL AND 
              RENEWABLE DIESEL USED AS FUEL.

    (a) Extension.--
            (1) Income tax credits for biodiesel and renewable diesel 
        and small agri-biodiesel producer credit.--Section 40A(g) 
        (relating to termination) is amended by striking ``December 31, 
        2008'' and inserting ``December 31, 2010 (December 31, 2012, in 
        the case of the credit allowed by reason of subsection 
        (a)(3))''.
            (2) Excise tax credit.--Section 6426(c)(6) (relating to 
        termination) is amended by striking ``2008'' and inserting 
        ``2010''.
            (3) Fuels not used for taxable purposes.--Section 
        6427(e)(5)(B) (relating to termination) is amended by striking 
        ``2008'' and inserting ``2010''.
    (b) Modification of Credit for Renewable Diesel.--Section 40A(f) 
(relating to renewable diesel) is amended by adding at the end the 
following new paragraph:
            ``(4) Special rule for co-processed renewable diesel.--In 
        the case of a taxpayer which produces renewable diesel through 
        the co-processing of biomass and petroleum at any facility, 
        this subsection shall not apply to so much of the renewable 
        diesel produced at such facility and sold or used during the 
        taxable year in a mixture described in subsection (b)(1)(B) as 
        exceeds 60,000,000 gallons.''.
    (c) Modification Relating to Definition of Agri-Biodiesel.--
Paragraph (2) of section 40A(d) (relating to agri-biodiesel) is amended 
by striking ``and mustard seeds'' and inserting ``mustard seeds, and 
camelina''.
    (d) Eligibility of Certain Aviation Fuel.--Section 40A(f)(3) 
(defining renewable diesel) is amended by adding at the end the 
following new flush sentence:
        ``The term `renewable diesel' also means fuel derived from 
        biomass (as defined in section 45K(c)(3)) using a thermal 
        depolymerization process which meets the requirements of a 
        Department of Defense specification for military jet fuel or an 
        American Society of Testing and Materials specification for 
        aviation turbine fuel.''.
    (e) Effective Dates.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 12322. TREATMENT OF QUALIFIED ALCOHOL FUEL MIXTURES AND QUALIFIED 
              BIODIESEL FUEL MIXTURES AS TAXABLE FUELS.

    (a) In General.--
            (1) Qualified alcohol fuel mixtures.--Paragraph (2) of 
        section 4083(a) (relating to gasoline) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (A),
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C), and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) includes any qualified mixture (as defined in 
                section 40(b)(1)(B)), and''.
            (2) Qualified biodiesel fuel mixtures.--Subparagraph (A) of 
        section 4083(a)(3) (relating to diesel fuel) is amended by 
        striking ``and'' at the end of clause (ii), by redesignating 
        clause (iii) as clause (iv), and inserting after clause (ii) 
        the following new clause:
                            ``(iii) any qualified biodiesel mixture (as 
                        defined in section 40A(b)(1)(B)), and''.
    (b) Modification of Biodiesel Certification Requirement.--Paragraph 
(4) of section 40A(b) is amended by striking ``which identifies'' and 
all that follows and inserting ``which--
                    ``(A) identifies the product produced and the 
                percentage of biodiesel and agri-biodiesel in the 
                product, and
                    ``(B) documents that the biodiesel was 
                independently tested and meets the requirements of ASTM 
                D6751.''.
    (c) Information Reporting Requirement for Producers of Qualified 
Mixtures.--Section 4101(d) (relating to information reporting) is 
amended to read as follows:
    ``(d) Information Reporting.--The Secretary--
            ``(1) may require--
                    ``(A) information reporting by any person 
                registered under this section, and
                    ``(B) information reporting by such other persons 
                as the Secretary deems necessary to carry out this 
                part, and
            ``(2) shall require information reporting by any person 
        registered under this section and producing any qualified 
        mixture (as defined in section 40(b)(1)(B)) or any qualified 
        biodiesel mixture (as defined in section 40A(b)(1)(B)).
Any person who is required to report under this subsection and who has 
25 or more reportable transactions in a month shall file such report in 
electronic format.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuels removed, entered, or sold after December 31, 2007.

                       PART IV--ALTERNATIVE FUEL

SEC. 12331. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.

    (a) Extension.--
            (1) Alternative fuel credit.--Paragraph (4) of section 
        6426(d) (relating to alternative fuel credit) is amended by 
        striking ``September 30, 2009'' and inserting ``December 31, 
        2010''.
            (2) Alternative fuel mixture credit.--Paragraph (3) of 
        section 6426(e) (relating to alternative fuel mixture credit) 
        is amended by striking ``September 30, 2009'' and inserting 
        ``December 31, 2010''.
            (3) Payments.--Subparagraph (C) of section 6427(e)(5) 
        (relating to termination) is amended by striking ``September 
        30, 2009'' and inserting ``December 31, 2010''.
    (b) Modifications.--
            (1) Alternative fuel to include compressed or liquified 
        biomass gas.--Paragraph (2) of section 6426(d) (relating to 
        alternative fuel credit) is amended by striking ``and'' at the 
        end of subparagraph (E), by redesignating subparagraph (F) as 
        subparagraph (G), and by inserting after subparagraph (E) the 
        following new subparagraph:
                    ``(F) compressed or liquefied biomass gas, and''.
            (2) Credit allowed for aviation use of fuel.--Paragraph (1) 
        of section 6426(d) is amended by inserting ``sold by the 
        taxpayer for use as a fuel in aviation,'' after ``motorboat,''.
    (c) Carbon Capture Requirement for Certain Fuels.--
            (1) In general.--Subsection (d) of section 6426, as amended 
        by subsection (a), is amended by redesignating paragraph (4) as 
        paragraph (5) and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Carbon capture requirement.--
                    ``(A) In general.--The requirements of this 
                paragraph are met if the fuel is certified, under such 
                procedures as required by the Secretary, as having been 
                derived from coal produced at a gasification facility 
                which separates and sequesters not less than the 
                applicable percentage of such facility's total carbon 
                dioxide emissions.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is--
                            ``(i) 50 percent in the case of fuel 
                        produced after the date of the enactment of 
                        this paragraph and on or before the earlier 
                        of--
                                    ``(I) the date the Secretary makes 
                                a determination under subparagraph (C), 
                                or
                                    ``(II) December 30, 2010, and
                            ``(ii) 75 percent in the case of fuel 
                        produced after the date on which the applicable 
                        percentage under clause (i) ceases to apply.
                    ``(C) Determination to increase applicable 
                percentage before december 31, 2010.--If the Secretary, 
                after considering the recommendations of the Carbon 
                Sequestration Capability Panel, finds that the 
                applicable percentage under subparagraph (B) should be 
                75 percent for fuel produced before December 31, 2010, 
                the Secretary shall make a determination under this 
                subparagraph. Any determination made under this 
                subparagraph shall be made not later than 30 days after 
                the Secretary receives from the Carbon Sequestration 
                Panel the report required under section 331(c)(3)(D) of 
                the Heartland, Habitat, Harvest, and Horticulture Act 
                of 2007.''.
            (2) Conforming amendment.--Subparagraph (E) of section 
        6426(d)(2) is amended by inserting ``which meets the 
        requirements of paragraph (4) and which is'' after ``any liquid 
        fuel''.
            (3) Carbon sequestration capability panel.--
                    (A) Establishment of panel.--There is established a 
                panel to be known as the ``Carbon Sequestration 
                Capability Panel'' (hereafter in this paragraph 
                referred to as the ``Panel'').
                    (B) Membership.--The Panel shall be composed of--
                            (i) 1 representative from the National 
                        Academy of Sciences,
                            (ii) 1 representative from the University 
                        of Kentucky Center for Applied Energy Research, 
                        and
                            (iii) 1 individual appointed jointly by the 
                        representatives under clauses (i) and (ii).
                    (C) Study.--The Panel shall study the appropriate 
                percentage of carbon dioxide for separation and 
                sequestration under section 6426(d)(4) of the Internal 
                Revenue Code of 1986 consistent with the purposes of 
                such section. The panel shall consider whether it is 
                feasible to separate and sequester 75 percent of the 
                carbon dioxide emissions of a facility, including costs 
                and other factors associated with separating and 
                sequestering such percentage of carbon dioxide 
                emissions.
                    (D) Report.--Not later than 6 months after the date 
                of the enactment of this Act, the Panel shall report to 
                the Secretary of Treasury, the Committee on Finance of 
                the Senate, and the Committee on Ways and Means of the 
                House of Representatives on the study under 
                subparagraph (C).
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 12332. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    Paragraph (2) of section 30C(g) (relating to termination) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2010''.

                  Subtitle D--Agricultural Provisions

SEC. 12401. 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.

SEC. 12402. MODIFICATION OF INSTALLMENT SALE RULES FOR CERTAIN FARM 
              PROPERTY.

    (a) In General.--Section 453(i) (relating to recognition of 
recapture income in year of disposition) is amended by adding at the 
end the following new paragraph:
            ``(3) Exception for certain farm property.--Paragraph (1) 
        shall not apply to any installment sale of any single purpose 
        agricultural or horticultural structure or any tree or vine 
        bearing fruit or nuts eligible for classification as 10-year 
        property under section 168(e)(3)(D).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to installment sales occurring after the date of the enactment of this 
Act.

SEC. 12403. 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. 12404. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

    (a) In General.--Subpart H of part IV of subchapter A of chapter 1 
(relating to credits against tax) is amended by adding at the end the 
following new section:

``SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
rural renaissance bond on 1 or more credit allowance dates of the bond 
occurring 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 rural renaissance 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 rural renaissance bond is the product of--
                    ``(A) the credit rate determined by the Secretary 
                under paragraph (3) for the day on which such bond was 
                sold, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Determination.--For purposes of paragraph (2), with 
        respect to any rural renaissance bond, the Secretary shall 
        determine daily or caused to be determined daily a credit rate 
        which shall apply to the first day on which there is a binding, 
        written contract for the sale or exchange of the bond. The 
        credit rate for any day is the credit rate which the Secretary 
        or the Secretary's designee estimates will permit the issuance 
        of rural renaissance bonds with a specified maturity or 
        redemption date without discount and without interest cost to 
        the qualified issuer.
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term also includes the last day on which the bond is 
        outstanding.
            ``(5) 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.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under this part 
        (other than subpart C, section 1400N(l), and this section).
    ``(d) Rural Renaissance Bond.--For purposes of this section--
            ``(1) In general.--The term `rural renaissance bond' means 
        any bond issued as part of an issue if--
                    ``(A) the bond is issued by a qualified issuer 
                pursuant to an allocation by the Secretary to such 
                issuer of a portion of the national rural renaissance 
                bond limitation under subsection (f)(2),
                    ``(B) 95 percent or more of the proceeds from the 
                sale of such issue are to be used for capital 
                expenditures incurred by qualified borrowers for 1 or 
                more qualified projects,
                    ``(C) the qualified issuer designates such bond for 
                purposes of this section and the bond is in registered 
                form,
                    ``(D) the issue meets the requirements of 
                subsection (h), and
                    ``(E) such bond is not a federally guaranteed bond 
                (within the meaning of section 149(b)(2)).
            ``(2) Qualified project; special use rules.--
                    ``(A) In general.--The term `qualified project' 
                means 1 or more projects described in subparagraph (B) 
                located in a rural area.
                    ``(B) Projects described.--A project described in 
                this subparagraph is a project eligible for assistance 
                under--
                            ``(i) the utilities programs described in 
                        section 381E(d)(2) of the Consolidated Farm and 
                        Rural Development Act (7 U.S.C. 2009d(d)(2)),
                            ``(ii) the distance learning or 
                        telemedicine programs authorized pursuant to 
                        chapter 1 of subtitle D of title XXIII of the 
                        Food, Agriculture, Conservation, and Trade Act 
                        of 1990 (7 U.S.C. 950aaa et seq.),
                            ``(iii) the rural electric programs 
                        authorized pursuant to the Rural 
                        Electrification Act of 1936 (7 U.S.C. 901 et 
                        seq.),
                            ``(iv) the rural telephone programs 
                        authorized pursuant to the Rural 
                        Electrification Act of 1936 (7 U.S.C. 901 et 
                        seq.),
                            ``(v) the broadband access programs 
                        authorized pursuant to title VI of the Rural 
                        Electrification Act of 1936 (7 U.S.C. 950bb et 
                        seq.), and
                            ``(vi) the rural community facility 
                        programs as described in section 381E(d)(1) of 
                        the Consolidated Farm and Rural Development Act 
                        (7 U.S.C. 2009d(d)(1)).
                    ``(C) Refinancing rules.--For purposes of paragraph 
                (1)(B), a qualified project may be refinanced with 
                proceeds of a rural renaissance bond only if the 
                indebtedness being refinanced (including any obligation 
                directly or indirectly refinanced by such indebtedness) 
                was originally incurred by a qualified borrower after 
                the date of the enactment of this section.
                    ``(D) Reimbursement.--For purposes of paragraph 
                (1)(B), a rural renaissance bond may be issued to 
                reimburse a qualified borrower for amounts paid after 
                the date of the enactment of this section with respect 
                to a qualified project, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the qualified borrower declared 
                        its intent to reimburse such expenditure with 
                        the proceeds of a rural renaissance bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the qualified 
                        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.
                    ``(E) Treatment of changes in use.--For purposes of 
                paragraph (1)(B), the proceeds of an issue shall not be 
                treated as used for a qualified project to the extent 
                that a qualified borrower or qualified issuer takes any 
                action within its control which causes such proceeds 
                not to be used for a qualified project. The Secretary 
                shall prescribe regulations specifying remedial actions 
                that may be taken (including conditions to taking such 
                remedial actions) to prevent an action described in the 
                preceding sentence from causing a bond to fail to be a 
                rural renaissance bond.
                    ``(F) Treatment of other subsidies.--For purposes 
                of subparagraph (B), a qualified project does not 
                include any portion of a project financed by grants or 
                subsidized financing provided (directly or indirectly) 
                under a Federal program, including any State or local 
                obligation used to provide financing for such portion 
                the interest on which is exempt from tax under section 
                103.
    ``(e) Maturity Limitations.--
            ``(1) Duration of term.--A bond shall not be treated as a 
        rural renaissance bond if the maturity of such bond exceeds the 
        maximum term determined by the Secretary under paragraph (2) 
        with respect to such bond.
            ``(2) 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 without regard to the requirements of paragraph (3) 
        and 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.
            ``(3) Ratable principal amortization required.--A bond 
        shall not be treated as a rural renaissance bond unless it is 
        part of an issue which provides for an equal amount of 
        principal to be paid by the qualified issuer during each 
        calendar year that the issue is outstanding.
    ``(f) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national rural 
        renaissance bond limitation of $400,000,000.
            ``(2) Allocation by secretary.--
                    ``(A) In general.--In accordance with subparagraph 
                (B), the Secretary shall allocate the amount described 
                in paragraph (1) among at least 20 qualified projects, 
                or such lesser number of qualified projects with proper 
                applications filed after 12 months after the adoption 
                of the selection process under subparagraph (B).
                    ``(B) Selection process.--In consultation with the 
                Secretary of Agriculture, the Secretary shall adopt a 
                process to select projects described in subparagraph 
                (A). Under such process, the Secretary shall not 
                allocate more than 15 percent of the allocation under 
                subparagraph (A) to qualified projects within a single 
                State.
    ``(g) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(h) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if, as of the date of issuance, 
        the qualified issuer reasonably expects--
                    ``(A) at least 95 percent of the proceeds from the 
                sale of the issue are to be spent for 1 or more 
                qualified projects within the 5-year period beginning 
                on the date of issuance of the rural renaissance bond,
                    ``(B) a binding commitment with a third party to 
                spend at least 10 percent of the proceeds from the sale 
                of the issue will be incurred within the 6-month period 
                beginning on the date of issuance of the rural 
                renaissance bond or, in the case of a rural renaissance 
                bond the proceeds of which are to be loaned to 2 or 
                more qualified borrowers, such binding commitment will 
                be incurred within the 6-month period beginning on the 
                date of the loan of such proceeds to a qualified 
                borrower, and
                    ``(C) such projects will be completed with due 
                diligence and the proceeds from the sale of the issue 
                will be spent with due diligence.
            ``(2) Extension of period.--Upon submission of a request 
        prior to the expiration of the period described in paragraph 
        (1)(A), the Secretary may extend such period if the qualified 
        issuer establishes that the failure to satisfy the 5-year 
        requirement is due to reasonable cause and the related projects 
        will continue to proceed with due diligence.
            ``(3) Failure to spend required amount of bond proceeds 
        within 5 years.--To the extent that less than 95 percent of the 
        proceeds of such issue are expended by the close of the 5-year 
        period beginning on the date of issuance (or if an extension 
        has been obtained under paragraph (2), by the close of the 
        extended period), the qualified 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.
    ``(i) Special Rules Relating to Arbitrage.--A bond which is part of 
an issue shall not be treated as a rural renaissance bond unless, with 
respect to the issue of which the bond is a part, the qualified issuer 
satisfies the arbitrage requirements of section 148 with respect to 
proceeds of the issue.
    ``(j) Definitions and Special Rules Relating to Issuers and 
Borrowers.--For purposes of this section--
            ``(1) Qualified issuer.--The term `qualified issuer' 
        means--
                    ``(A) a rural renaissance bond lender,
                    ``(B) a cooperative electric company, or
                    ``(C) a governmental body.
            ``(2) Qualified borrower.--The term `qualified borrower' 
        means--
                    ``(A) a mutual or cooperative electric company 
                described in section 501(c)(12) or 1381(a)(2)(C), or
                    ``(B) a governmental body.
            ``(3) Rural renaissance bond lender.--The term `rural 
        renaissance bond lender' means a lender which is a cooperative 
        which is owned by, or has outstanding loans to, 100 or more 
        cooperative electric companies and is in existence on February 
        1, 2002, and shall include any affiliated entity which is 
        controlled by such lender.
            ``(4) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C), or a not-for-profit electric utility which has 
        received a loan or loan guarantee under the Rural 
        Electrification Act.
            ``(5) Governmental body.--The term `governmental body' 
        means any State, territory, possession of the United States, 
        the District of Columbia, Indian tribal government, and any 
        political subdivision thereof.
    ``(k) Special Rules Relating to Pool Bonds.--No portion of a pooled 
financing bond may be allocable to loan unless the borrower has entered 
into a written loan commitment for such portion prior to the issue date 
of such issue.
    ``(l) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Pooled financing bond.--The term `pooled financing 
        bond' shall have the meaning given such term by section 
        149(f)(4)(A).
            ``(3) Rural area.--The term `rural area' shall have the 
        meaning given such term by section 1393(a)(2).
            ``(4) Partnership; s corporation; and other pass-thru 
        entities.--
                    ``(A) In general.--Under regulations prescribed by 
                the Secretary, in the case of a partnership, trust, S 
                corporation, or other pass-thru entity, rules similar 
                to the rules of section 41(g) shall apply with respect 
                to the credit allowable under subsection (a).
                    ``(B) No basis adjustment.--In the case of a bond 
                held by a partnership or an S corporation, rules 
                similar to the rules under section 1397E(i) shall 
                apply.
            ``(5) Bonds held by regulated investment companies.--If any 
        rural renaissance bond is held by a regulated investment 
        company, the credit determined under subsection (a) shall be 
        allowed to shareholders of such company under procedures 
        prescribed by the Secretary.
            ``(6) Reporting.--Issuers of rural renaissance bonds shall 
        submit reports similar to the reports required under section 
        149(e).
            ``(7) Termination.--This section shall not apply with 
        respect to any bond issued after December 31, 2008.''.
    (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 rural renaissance bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A(g) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 54A(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(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) The table of sections for subpart H of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54A. Credit to holders of rural renaissance bonds.''.
            (2) Section 54(c)(2) is amended by inserting ``section 
        54A,'' after ``subpart C,''.
    (d) Issuance of Regulations.--The Secretary of Treasury shall issue 
regulations required under section 54A (as added by this section) not 
later than 120 days after the date of the enactment of this Act.
    (e) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 12405. 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,
            ``(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:
    ``(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. 12406. CREDIT FOR DRUG SAFETY AND EFFECTIVENESS TESTING FOR MINOR 
              ANIMAL SPECIES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits), as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 45P. DRUG SAFETY AND EFFECTIVENESS TESTING FOR MINOR ANIMAL 
              SPECIES.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of an eligible taxpayer, the drug safety and effectiveness testing for 
minor animal species credit determined under this section for the 
taxable year shall be an amount equal to 50 percent of the qualified 
safety and effectiveness testing expenses paid or incurred by the 
taxpayer during the taxable year.
    ``(b) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' any taxpayer--
            ``(1) which--
                    ``(A) applies for the designation of a new animal 
                drug for use on a minor animal species under section 
                573 of the Federal Food, Drug, and Cosmetic Act, or
                    ``(B) owns animals which are the subject of safety 
                and effectiveness testing, and
            ``(2) which elects the application of this section for the 
        taxable year.
    ``(c) Qualified Safety and Effectiveness Testing Expenses.--For 
purposes of this section--
            ``(1) In general.--The term `qualified safety and 
        effectiveness testing expenses' means the sum of the following 
        amounts which are paid or incurred by the eligible taxpayer 
        during the taxable year in carrying on any trade or business of 
        such taxpayer:
                    ``(A) In-house safety and effectiveness testing 
                expenses.
                    ``(B) Contract safety and effectiveness testing 
                expenses.
        Such term does not include any amount to the extent such amount 
        is funded by any grant, contract, or otherwise by another 
        person (or any governmental entity).
            ``(2) In-house safety and effectiveness testing expenses.--
                    ``(A) In general.--The term `in-house safety and 
                effectiveness testing expenses' means--
                            ``(i) any wages paid or incurred to an 
                        employee for qualified services performed by 
                        such employee,
                            ``(ii) any amount paid or incurred for 
                        supplies used in the conduct of safety and 
                        effectiveness testing, and
                            ``(iii) under regulations prescribed by the 
                        Secretary, any amount paid or incurred to 
                        another person for the right to use computers 
                        in the conduct of safety and effectiveness 
                        testing.
                Clause (iii) shall not apply to any amount to the 
                extent that the taxpayer (or any person with whom the 
                taxpayer must aggregate expenditures under rules 
                specified under subsection (f)(2)) receives or accrues 
                any amount from any other person for the right to use 
                substantially identical personal property.
                    ``(B) Qualified services.--The term `qualified 
                services' means services consisting of--
                            ``(i) engaging in safety and effectiveness 
                        testing, or
                            ``(ii) engaging in the direct supervision 
                        or direct support of such testing.
                If substantially all of the services performed by an 
                individual for the taxpayer during the taxable year 
                consists of services meeting the requirements of clause 
                (i) or (ii), the term `qualified services' means all of 
                the services performed by such individual for the 
                taxpayer during the taxable year.
                    ``(C) Wages and supplies.--The terms `wages' and 
                `supplies' have the meanings given such terms by 
                section 41(b).
            ``(3) Contract safety and effectiveness testing expenses.--
                    ``(A) In general.--The term `contract safety and 
                effectiveness testing expenses' means any amount paid 
                or incurred by the taxpayer to any person (other than 
                an employee of the taxpayer) for safety and 
                effectiveness testing.
                    ``(B) Prepaid amounts.--If any contract safety and 
                effectiveness testing expenses paid or incurred during 
                any taxable year are attributable to safety and 
                effectiveness testing to be conducted after the close 
                of such taxable year, such amount shall be treated as 
                paid or incurred during the period during which the 
                safety and effectiveness testing is conducted.
    ``(d) Safety and Effectiveness Testing.--For purposes of this 
section--
            ``(1) In general.--The term `safety and effectiveness 
        testing' means any testing which--
                    ``(A) is related to the use of a new animal drug 
                for use on a minor animal species for which it was 
                designated under section 573 of the Federal Food, Drug, 
                and Cosmetic Act,
                    ``(B) is carried out under an exemption for such 
                new animal drug under section 512(j) of such Act (or 
                regulations issued under such section),
                    ``(C) occurs--
                            ``(i) after the date on which the 
                        application for designation of such new animal 
                        drug under section 573 of such Act is filed, 
                        and
                            ``(ii) before the date on which such 
                        application is approved under section 512(c) of 
                        such Act, and
                    ``(D) which is conducted by or on behalf of an 
                eligible taxpayer.
            ``(2) Minor animal species.--
                    ``(A) In general.--The term `minor animal species' 
                means animals, other than humans, which are not major 
                animal species.
                    ``(B) Major animal species.--The term `major animal 
                species' means cattle, horses, swine, chickens, 
                turkeys, dogs, cats, and any other species as 
                determined by the Secretary, after consultation with 
                the Secretary of Agriculture.
    ``(e) Treatment of Qualified Safety and Effectiveness Testing 
Expenses.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        qualified safety and effectiveness testing expenses for a 
        taxable year to which an election under this section applies 
        shall not be taken into account for purposes of determining the 
        credit allowable under section 41 for such taxable year.
            ``(2) Treated as base period research expenses.--Any 
        qualified safe and effectiveness testing expenses for any 
        taxable year which are qualified research expenses (within the 
        meaning of section 41(b)) shall be taken into account in 
        determining base period research expenses for purposes of 
        applying section 41 to subsequent taxable years.
    ``(f) Special Rules.--
            ``(1) Limitation.--No credit shall be allowed under this 
        section with respect to any safety and effectiveness testing 
        conducted by a corporation to which an election under section 
        936 applies.
            ``(2) Aggregation of expenditures and allocations of 
        credit.--Rules similar to the rules of paragraphs (1) and (2) 
        of section 41(f) and section 41(g) shall apply for purposes of 
        this section.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b), as amended by this Act, is amended by striking ``plus'' at the 
end of paragraph (31), by striking the period at the end of paragraph 
(32) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(33) the drug safety and effectiveness testing for minor 
        animal species credit determined under section 45P(a).''.
    (c) Denial of Double Benefit.--Section 280C, as amended by this 
Act, is amended by adding at the end the following new subsection:
    ``(g) Drug Safety and Effectiveness Testing for Minor Animal 
Species Credit.--
            ``(1) In general.--No deduction shall be allowed for that 
        portion of the qualified safety and effectiveness testing 
        expenses (as defined in section 45P(c)(1)) otherwise allowable 
        as a deduction for the taxable year which is equal to the 
        amount of the credit determined for such taxable year under 
        section 45P(a).
            ``(2) Similar rule where taxpayer capitalizes rather than 
        deducts expenses.--If--
                    ``(A) the amount of the credit determined for the 
                taxable year under section 45P(a), exceeds
                    ``(B) the amount allowable as a deduction for such 
                taxable year for qualified safety and effectiveness 
                testing expenses (determined without regard to 
                paragraph (1)),
        the amount chargeable to capital account for the taxable year 
        for such expenses shall be reduced by the amount of such 
        excess.
            ``(3) Controlled groups.--Paragraph (3) of subsection (b) 
        shall apply for purposes of this subsection.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1, as amended by this Act, is 
amended by adding at the end the following new item:

``Sec. 45P. Drug safety and effectiveness testing for minor animal 
                            species.''.
    (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. 12407. CERTAIN FARMING BUSINESS MACHINERY AND EQUIPMENT TREATED AS 
              5-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(B) (defining 5-year property) is 
amended by striking ``and'' at the end of clause (v), by striking the 
period at the end of clause (vi)(III) and inserting ``, and'', and by 
inserting after clause (vi) the following new clause:
                            ``(vii) any machinery or equipment (other 
                        than any grain bin, cotton ginning asset, 
                        fence, or other land improvement) which is used 
                        in a farming business (as defined in section 
                        263A(e)(4)), the original use of which 
                        commences with the taxpayer after the date of 
                        the enactment of this clause, and which is 
                        placed in service before January 1, 2010.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property assigned to 
classes) is amended by inserting after the item relating to 
subparagraph (B)(iii) the following:

 
 
 
  ``(B)(vii)..............................................         10''.
 

    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 12408. EXPENSING OF BROADBAND INTERNET ACCESS EXPENDITURES.

    (a) In General.--Part VI of subchapter B of chapter 1 (relating to 
itemized deductions for individuals and corporations) is amended by 
inserting after section 190 the following new section:

``SEC. 191. BROADBAND EXPENDITURES.

    ``(a) Treatment of Expenditures.--
            ``(1) In general.--A taxpayer may elect to treat any 
        qualified broadband expenditure which is paid or incurred by 
        the taxpayer as an expense which is not chargeable to a capital 
        account. Any expenditure which is so treated shall be allowed 
        as a deduction.
            ``(2) Election.--An election under paragraph (1) shall be 
        made at such time and in such manner as the Secretary may 
        prescribe by regulation.
    ``(b) Qualified Broadband Expenditures.--For purposes of this 
section--
            ``(1) In general.--The term `qualified broadband 
        expenditure' means, with respect to any taxable year, any 
        direct or indirect costs incurred after the date of the 
        enactment of this section, and on or before the first December 
        31 which is 3 years after such date, and properly taken into 
        account with respect to--
                    ``(A) the purchase or installation of qualified 
                equipment (including any upgrades thereto), and
                    ``(B) the connection of such qualified equipment to 
                any qualified subscriber.
            ``(2) Certain satellite expenditures excluded.--Such term 
        shall not include any costs incurred with respect to the 
        launching of any satellite equipment.
            ``(3) Leased equipment.--Such term shall include so much of 
        the purchase price paid by the lessor of qualified equipment 
        subject to a lease described in subsection (c)(2)(B) as is 
        attributable to expenditures incurred by the lessee which would 
        otherwise be described in paragraph (1).
            ``(4) Limitation with regard to current generation 
        broadband services.--Only 50 percent of the amounts taken into 
        account under paragraph (1) with respect to qualified equipment 
        through which current generation broadband services are 
        provided shall be treated as qualified broadband expenditures.
    ``(c) When Expenditures Taken Into Account.--For purposes of this 
section--
            ``(1) In general.--Qualified broadband expenditures with 
        respect to qualified equipment shall be taken into account with 
        respect to the first taxable year in which--
                    ``(A) current generation broadband services are 
                provided through such equipment to qualified 
                subscribers, or
                    ``(B) next generation broadband services are 
                provided through such equipment to qualified 
                subscribers.
            ``(2) Limitation.--
                    ``(A) In general.--Qualified expenditures shall be 
                taken into account under paragraph (1) only with 
                respect to qualified equipment--
                            ``(i) the original use of which commences 
                        with the taxpayer, and
                            ``(ii) which is placed in service after the 
                        date of the enactment of this Act.
                    ``(B) Sale-leasebacks.--For purposes of 
                subparagraph (A), if property--
                            ``(i) is originally placed in service after 
                        the date of the enactment of this Act by any 
                        person, and
                            ``(ii) sold and leased back by such person 
                        within 3 months after the date such property 
                        was originally placed in service,
                such property shall be treated as originally placed in 
                service not earlier than the date on which such 
                property is used under the leaseback referred to in 
                clause (ii).
    ``(d) Special Allocation Rules.--
            ``(1) Current generation broadband services.--For purposes 
        of determining the amount of qualified broadband expenditures 
        under subsection (a)(1) with respect to qualified equipment 
        through which current generation broadband services are 
        provided, if the qualified equipment is capable of serving both 
        qualified subscribers and other subscribers, the qualified 
        broadband expenditures shall be multiplied by a fraction--
                    ``(A) the numerator of which is the sum of the 
                number of potential qualified subscribers within the 
                rural areas and the underserved areas which the 
                equipment is capable of serving with current generation 
                broadband services, and
                    ``(B) the denominator of which is the total 
                potential subscriber population of the area which the 
                equipment is capable of serving with current generation 
                broadband services.
            ``(2) Next generation broadband services.--For purposes of 
        determining the amount of qualified broadband expenditures 
        under subsection (a)(1) with respect to qualified equipment 
        through which next generation broadband services are provided, 
        if the qualified equipment is capable of serving both qualified 
        subscribers and other subscribers, the qualified broadband 
        expenditures shall be multiplied by a fraction--
                    ``(A) the numerator of which is the sum of--
                            ``(i) the number of potential qualified 
                        subscribers within the rural areas and 
                        underserved areas, plus
                            ``(ii) the number of potential qualified 
                        subscribers within the area consisting only of 
                        residential subscribers not described in clause 
                        (i),
                which the equipment is capable of serving with next 
                generation broadband services, and
                    ``(B) the denominator of which is the total 
                potential subscriber population of the area which the 
                equipment is capable of serving with next generation 
                broadband services.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Antenna.--The term `antenna' means any device used to 
        transmit or receive signals through the electromagnetic 
        spectrum, including satellite equipment.
            ``(2) Cable operator.--The term `cable operator' has the 
        meaning given such term by section 602(5) of the Communications 
        Act of 1934 (47 U.S.C. 522(5)).
            ``(3) Commercial mobile service carrier.--The term 
        `commercial mobile service carrier' means any person authorized 
        to provide commercial mobile radio service as defined in 
        section 20.3 of title 47, Code of Federal Regulations.
            ``(4) Current generation broadband service.--The term 
        `current generation broadband service' means the transmission 
        of signals at a rate of at least 5,000,000 bits per second to 
        the subscriber and at least 1,000,000 bits per second from the 
        subscriber.
            ``(5) Multiplexing or demultiplexing.--The term 
        `multiplexing' means the transmission of 2 or more signals over 
        a single channel, and the term `demultiplexing' means the 
        separation of 2 or more signals previously combined by 
        compatible multiplexing equipment.
            ``(6) Next generation broadband service.--The term `next 
        generation broadband service' means the transmission of signals 
        at a rate of at least 100,000,000 bits per second to the 
        subscriber and at least 20,000,000 bits per second from the 
        subscriber.
            ``(7) Nonresidential subscriber.--The term `nonresidential 
        subscriber' means any person who purchases broadband services 
        which are delivered to the permanent place of business of such 
        person.
            ``(8) Open video system operator.--The term `open video 
        system operator' means any person authorized to provide service 
        under section 653 of the Communications Act of 1934 (47 U.S.C. 
        573).
            ``(9) Other wireless carrier.--The term `other wireless 
        carrier' means any person (other than a telecommunications 
        carrier, commercial mobile service carrier, cable operator, 
        open video system operator, or satellite carrier) providing 
        current generation broadband services or next generation 
        broadband service to subscribers through the radio transmission 
        of energy.
            ``(10) Packet switching.--The term `packet switching' means 
        controlling or routing the path of any digitized transmission 
        signal which is assembled into packets or cells.
            ``(11) Provider.--The term `provider' means, with respect 
        to any qualified equipment--
                    ``(A) a cable operator,
                    ``(B) a commercial mobile service carrier,
                    ``(C) an open video system operator,
                    ``(D) a satellite carrier,
                    ``(E) a telecommunications carrier, or
                    ``(F) any other wireless carrier,
        providing current generation broadband services or next 
        generation broadband services to subscribers through such 
        qualified equipment.
            ``(12) Provision of services.--A provider shall be treated 
        as providing services to 1 or more subscribers if--
                    ``(A) such a subscriber has been passed by the 
                provider's equipment and can be connected to such 
                equipment for a standard connection fee,
                    ``(B) the provider is physically able to deliver 
                current generation broadband services or next 
                generation broadband services, as applicable, to such a 
                subscriber without making more than an insignificant 
                investment with respect to such subscriber,
                    ``(C) the provider has made reasonable efforts to 
                make such subscribers aware of the availability of such 
                services,
                    ``(D) such services have been purchased by 1 or 
                more such subscribers, and
                    ``(E) such services are made available to such 
                subscribers at average prices comparable to those at 
                which the provider makes available similar services in 
                any areas in which the provider makes available such 
                services.
            ``(13) Qualified equipment.--
                    ``(A) In general.--The term `qualified equipment' 
                means equipment which provides current generation 
                broadband services or next generation broadband 
                services--
                            ``(i) at least a majority of the time 
                        during periods of maximum demand to each 
                        subscriber who is utilizing such services, and
                            ``(ii) in a manner substantially the same 
                        as such services are provided by the provider 
                        to subscribers through equipment with respect 
                        to which no deduction is allowed under 
                        subsection (a)(1).
                    ``(B) Only certain investment taken into account.--
                Except as provided in subparagraph (C) or (D), 
                equipment shall be taken into account under 
                subparagraph (A) only to the extent it--
                            ``(i) extends from the last point of 
                        switching to the outside of the unit, building, 
                        dwelling, or office owned or leased by a 
                        subscriber in the case of a telecommunications 
                        carrier or broadband-over-powerline operator,
                            ``(ii) extends from the customer side of 
                        the mobile telephone switching office to a 
                        transmission/receive antenna (including such 
                        antenna) owned or leased by a subscriber in the 
                        case of a commercial mobile service carrier,
                            ``(iii) extends from the customer side of 
                        the headend to the outside of the unit, 
                        building, dwelling, or office owned or leased 
                        by a subscriber in the case of a cable operator 
                        or open video system operator, or
                            ``(iv) extends from a transmission/receive 
                        antenna (including such antenna) which 
                        transmits and receives signals to or from 
                        multiple subscribers, to a transmission/receive 
                        antenna (including such antenna) on the outside 
                        of the unit, building, dwelling, or office 
                        owned or leased by a subscriber in the case of 
                        a satellite carrier or other wireless carrier, 
                        unless such other wireless carrier is also a 
                        telecommunications carrier.
                    ``(C) Packet switching equipment.--Packet switching 
                equipment, regardless of location, shall be taken into 
                account under subparagraph (A) only if it is deployed 
                in connection with equipment described in subparagraph 
                (B) and is uniquely designed to perform the function of 
                packet switching for current generation broadband 
                services or next generation broadband services, but 
                only if such packet switching is the last in a series 
                of such functions performed in the transmission of a 
                signal to a subscriber or the first in a series of such 
                functions performed in the transmission of a signal 
                from a subscriber.
                    ``(D) Multiplexing and demultiplexing equipment.--
                Multiplexing and demultiplexing equipment shall be 
                taken into account under subparagraph (A) only to the 
                extent it is deployed in connection with equipment 
                described in subparagraph (B) and is uniquely designed 
                to perform the function of multiplexing and 
                demultiplexing packets or cells of data and making 
                associated application adaptions, but only if such 
                multiplexing or demultiplexing equipment is located 
                between packet switching equipment described in 
                subparagraph (C) and the subscriber's premises.
            ``(14) Qualified subscriber.--The term `qualified 
        subscriber' means--
                    ``(A) with respect to the provision of current 
                generation broadband services--
                            ``(i) any nonresidential subscriber 
                        maintaining a permanent place of business in a 
                        rural area or underserved area, or
                            ``(ii) any residential subscriber residing 
                        in a dwelling located in a rural area or 
                        underserved area which is not a saturated 
                        market, and
                    ``(B) with respect to the provision of next 
                generation broadband services--
                            ``(i) any nonresidential subscriber 
                        maintaining a permanent place of business in a 
                        rural area or underserved area, or
                            ``(ii) any residential subscriber.
            ``(15) Residential subscriber.--The term `residential 
        subscriber' means any individual who purchases broadband 
        services which are delivered to such individual's dwelling.
            ``(16) Rural area.--The term `rural area' means any census 
        tract which--
                    ``(A) is not within 10 miles of any incorporated or 
                census designated place containing more than 25,000 
                people, and
                    ``(B) is not within a county or county equivalent 
                which has an overall population density of more than 
                500 people per square mile of land.
            ``(17) Rural subscriber.--The term `rural subscriber' means 
        any residential subscriber residing in a dwelling located in a 
        rural area or nonresidential subscriber maintaining a permanent 
        place of business located in a rural area.
            ``(18) Satellite carrier.--The term `satellite carrier' 
        means any person using the facilities of a satellite or 
        satellite service licensed by the Federal Communications 
        Commission and operating in the Fixed-Satellite Service under 
        part 25 of title 47 of the Code of Federal Regulations or the 
        Direct Broadcast Satellite Service under part 100 of title 47 
        of such Code to establish and operate a channel of 
        communications for distribution of signals, and owning or 
        leasing a capacity or service on a satellite in order to 
        provide such point-to-multipoint distribution.
            ``(19) Saturated market.--The term `saturated market' means 
        any census tract in which, as of the date of the enactment of 
        this section--
                    ``(A) current generation broadband services have 
                been provided by a single provider to 85 percent or 
                more of the total number of potential residential 
                subscribers residing in dwellings located within such 
                census tract, and
                    ``(B) such services can be utilized--
                            ``(i) at least a majority of the time 
                        during periods of maximum demand by each such 
                        subscriber who is utilizing such services, and
                            ``(ii) in a manner substantially the same 
                        as such services are provided by the provider 
                        to subscribers through equipment with respect 
                        to which no deduction is allowed under 
                        subsection (a)(1).
            ``(20) Subscriber.--The term `subscriber' means any person 
        who purchases current generation broadband services or next 
        generation broadband services.
            ``(21) Telecommunications carrier.--The term 
        `telecommunications carrier' has the meaning given such term by 
        section 3(44) of the Communications Act of 1934 (47 U.S.C. 
        153(44)), but--
                    ``(A) includes all members of an affiliated group 
                of which a telecommunications carrier is a member, and
                    ``(B) does not include a commercial mobile service 
                carrier.
            ``(22) Total potential subscriber population.--The term 
        `total potential subscriber population' means, with respect to 
        any area and based on the most recent census data, the total 
        number of potential residential subscribers residing in 
        dwellings located in such area and potential nonresidential 
        subscribers maintaining permanent places of business located in 
        such area.
            ``(23) Underserved area.--The term `underserved area' 
        means--
                    ``(A) any census tract which is located in--
                            ``(i) an empowerment zone or enterprise 
                        community designated under section 1391, or
                            ``(ii) the District of Columbia Enterprise 
                        Zone established under section 1400, or
                    ``(B) any census tract--
                            ``(i) the poverty level of which is at 
                        least 30 percent (based on the most recent 
                        census data), and
                            ``(ii) the median family income of which 
                        does not exceed--
                                    ``(I) in the case of a census tract 
                                located in a metropolitan statistical 
                                area, 70 percent of the greater of the 
                                metropolitan area median family income 
                                or the statewide median family income, 
                                and
                                    ``(II) in the case of a census 
                                tract located in a nonmetropolitan 
                                statistical area, 70 percent of the 
                                nonmetropolitan statewide median family 
                                income.
            ``(24) Underserved subscriber.--The term `underserved 
        subscriber' means any residential subscriber residing in a 
        dwelling located in an underserved area or nonresidential 
        subscriber maintaining a permanent place of business located in 
        an underserved area.
    ``(f) Special Rules.--
            ``(1) Property used outside the united states, etc., not 
        qualified.--No expenditures shall be taken into account under 
        subsection (a)(1) with respect to the portion of the cost of 
        any property referred to in section 50(b) or with respect to 
        the portion of the cost of any property specified in an 
        election under section 179.
            ``(2) Basis reduction.--
                    ``(A) In general.--For purposes of this title, the 
                basis of any property shall be reduced by the portion 
                of the cost of such property taken into account under 
                subsection (a)(1).
                    ``(B) Ordinary income recapture.--For purposes of 
                section 1245, the amount of the deduction allowable 
                under subsection (a)(1) with respect to any property 
                which is of a character subject to the allowance for 
                depreciation shall be treated as a deduction allowed 
                for depreciation under section 167.
            ``(3) Coordination with section 38.--No credit shall be 
        allowed under section 38 with respect to any amount for which a 
        deduction is allowed under subsection (a)(1).''.
    (b) Special Rule for Mutual or Cooperative Telephone Companies.--
Section 512(b) (relating to modifications) is amended by adding at the 
end the following new paragraph:
            ``(20) Special rule for mutual or cooperative telephone 
        companies.--A mutual or cooperative telephone company which for 
        the taxable year satisfies the requirements of section 
        501(c)(12)(A) may elect to reduce its unrelated business 
        taxable income for such year, if any, by an amount that does 
        not exceed the qualified broadband expenditures which would be 
        taken into account under section 191 for such year by such 
        company if such company was not exempt from taxation. Any 
        amount which is allowed as a deduction under this paragraph 
        shall not be allowed as a deduction under section 191 and the 
        basis of any property to which this paragraph applies shall be 
        reduced under section 1016(a)(40).''.
    (c) Conforming Amendments.--
            (1) Section 263(a)(1) (relating to capital expenditures) is 
        amended by striking ``or'' at the end of subparagraph (J), by 
        striking the period at the end of subparagraph (K) and 
        inserting ``, or'', and by adding at the end the following new 
        subparagraph:
                    ``(L) expenditures for which a deduction is allowed 
                under section 191.''.
            (2) Section 1016(a), as amended by this Act, is amended by 
        striking ``and'' at the end of paragraph (38), by striking the 
        period at the end of paragraph (39) and inserting ``, and'', 
        and by adding at the end the following new paragraph:
            ``(40) to the extent provided in section 191(f)(2).''.
            (3) The table of sections for part VI of subchapter A of 
        chapter 1 is amended by inserting after the item relating to 
        section 190 the following new item:

``Sec. 191. Broadband expenditures.''.
    (d) Designation of Census Tracts.--
            (1) In general.--The Secretary of the Treasury shall, not 
        later than 90 days after the date of the enactment of this Act, 
        designate and publish those census tracts meeting the criteria 
        described in paragraphs (16), (22), and (23) of section 191(e) 
        of the Internal Revenue Code of 1986 (as added by this 
        section). In making such designations, the Secretary of the 
        Treasury shall consult with such other departments and agencies 
        as the Secretary determines appropriate.
            (2) Saturated market.--
                    (A) In general.--For purposes of designating and 
                publishing those census tracts meeting the criteria 
                described in subsection (e)(19) of such section 191--
                            (i) the Secretary of the Treasury shall 
                        prescribe not later than 30 days after the date 
                        of the enactment of this Act the form upon 
                        which any provider which takes the position 
                        that it meets such criteria with respect to any 
                        census tract shall submit a list of such census 
                        tracts (and any other information required by 
                        the Secretary) not later than 60 days after the 
                        date of the publication of such form, and
                            (ii) the Secretary of the Treasury shall 
                        publish an aggregate list of such census tracts 
                        and the applicable providers not later than 30 
                        days after the last date such submissions are 
                        allowed under clause (i).
                    (B) No subsequent lists required.--The Secretary of 
                the Treasury shall not be required to publish any list 
                of census tracts meeting such criteria subsequent to 
                the list described in subparagraph (A)(ii).
    (e) Other Regulatory Matters.--
            (1) Prohibition.--No Federal or State agency or 
        instrumentality shall adopt regulations or ratemaking 
        procedures that would have the effect of eliminating or 
        reducing any deduction or portion thereof allowed under section 
        191 of the Internal Revenue Code of 1986 (as added by this 
        section) or otherwise subverting the purpose of this section.
            (2) Treasury regulatory authority.--It is the intent of 
        Congress in providing the election to deduct qualified 
        broadband expenditures under section 191 of the Internal 
        Revenue Code of 1986 (as added by this section) to provide 
        incentives for the purchase, installation, and connection of 
        equipment and facilities offering expanded broadband access to 
        the Internet for users in certain low income and rural areas of 
        the United States, as well as to residential users nationwide, 
        in a manner that maintains competitive neutrality among the 
        various classes of providers of broadband services. 
        Accordingly, the Secretary of the Treasury shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of section 191 of such Code, including--
                    (A) regulations to determine how and when a 
                taxpayer that incurs qualified broadband expenditures 
                satisfies the requirements of section 191 of such Code 
                to provide broadband services, and
                    (B) regulations describing the information, 
                records, and data taxpayers are required to provide the 
                Secretary to substantiate compliance with the 
                requirements of section 191 of such Code.

SEC. 12409. CREDIT FOR ENERGY EFFICIENT MOTORS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits), as amended by this Act, is 
amended by inserting at the end the following new section:

``SEC. 45Q. CREDIT FOR ENERGY EFFICIENT MOTORS.

    ``(a) In General.--For purposes of section 38, the energy efficient 
motors credit determined under this section for any taxable year is an 
amount equal to the lesser of--
            ``(1) $15 per horsepower generated by qualified energy 
        efficient motors the original use of which begins with the 
        taxpayer during such taxable year, or
            ``(2) $1,250,000.
    ``(b) Qualified Energy Efficient Motor.--The term `qualified energy 
efficient motor' means a general- or definite-purpose electric motor of 
500 horsepower or less which meets or exceeds the efficiency levels 
specified in Tables 12-12 or 12-13 of the National Electrical 
Manufacturers Association MG-1 (2006).
    ``(c) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., certain 
        depreciable property not qualified.--No credit shall be allowed 
        under subsection (a) with respect to any property referred to 
        in section 50(b) or with respect to the portion of the cost of 
        any property taken into account under section 179.
    ``(d) Termination.--This section shall not apply to any property 
placed in service after the date which is 3 years after the date of the 
enactment of this section.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b), as amended by this Act, is amended by striking ``plus'' at the 
end of paragraph (32), by striking the period at the end of paragraph 
(33) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(34) the credit for energy efficient motors determined 
        under section 45Q(a).''.
    (c) Conforming Amendments.--
            (1) Section 1016(a), as amended by this Act, is amended by 
        striking ``and'' at the end of paragraph (39), by striking the 
        period at the end of paragraph (40) and inserting ``, and'', 
        and by adding at the end the following new paragraph:
            ``(41) to the extent provided in section 45Q(c)(1).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by this Act, is amended 
        by adding at the end the following new item:

``Sec. 45Q. Credit for energy efficient motors.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

                     Subtitle E--Revenue Provisions

                PART I--MISCELLANEOUS REVENUE PROVISIONS

SEC. 12501. LIMITATION ON FARMING 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 Farming Losses of Certain Taxpayers.--
            ``(1) In general.--If an applicable taxpayer has a farming 
        loss for the taxable year, such loss shall be allowed for such 
        taxable year only to the extent such loss does not exceed 
        $200,000.
            ``(2) Farming loss.--For purposes of this subsection, the 
        term `farming loss' means the excess of the deductions of the 
        taxpayer for the taxable year which are attributable to farming 
        businesses (as defined in section 263A(e)(4)) of such taxpayer 
        over income or gain of such taxpayer for the taxable year which 
        is attributable to such deductions.
            ``(3) Disallowed loss carried to next 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.
            ``(4) Applicable taxpayer.--For purposes of this 
        subsection, the term `applicable taxpayer' means, with respect 
        to any taxable year, any individual, partnership, estate, or 
        trust which receives--
                    ``(A) benefits under subtitle A or B of title I of 
                the Food and Energy Security Act of 2007 in such 
                taxable year, or
                    ``(B) Commodity Credit Corporation loans in such 
                taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 12502. 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)--
            ``(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:

                        ``Upper and Lower Limits

    ``(k) 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. 12503. 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, 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.

SEC. 12504. MODIFICATION OF SECTION 1031 TREATMENT FOR CERTAIN REAL 
              ESTATE.

    (a) In General.--Section 1031 (relating to exchange of property 
held for productive use or investment), as amended by this Act, is 
amended by adding at the end the following new subsection:
    ``(j) Special Rule for Subsidized Agricultural Real Property.--
            ``(1) In general.--Subsidized agricultural real property 
        and nonagricultural real property are not property of a like 
        kind.
            ``(2) Subsidized agricultural real property.--For purposes 
        of this subsection, the term `subsidized agricultural real 
        property' means real property--
                    ``(A) which is used as a farm for farming purposes 
                (within the meaning of section 2032A(e)(5)); and
                    ``(B) with respect to which a taxpayer receives, in 
                the taxable year in which an exchange of such property 
                is made, any payment or benefit under--
                            ``(i) part I of subtitle A,
                            ``(ii) part III (other than sections 1307 
                        and 1308) of subtitle A, or
                            ``(iii) subtitle B,
                of title I of the Food and Energy Security Act of 2007.
            ``(3) Nonagricultural real property.--For purposes of this 
        subsection, the term `nonagricultural real property' means real 
        property which is not used as a farm for farming purposes 
        (within the meaning of section 2032A(e)(5)).
            ``(4) Exception.--Paragraph (1) shall not apply with 
        respect to any subsidized agricultural real property which, not 
        later than the date of the exchange, is permanently retired 
        from any program under which any payment or benefit described 
        in paragraph (2)(B) is made.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to exchanges completed after the date of the enactment of this 
Act.

SEC. 12505. MODIFICATION OF EFFECTIVE DATE OF LEASING PROVISIONS OF THE 
              AMERICAN JOBS CREATION ACT OF 2004.

    (a) Leases to Foreign Entities.--Section 849(b) of the American 
Jobs Creation Act of 2004 is amended by adding at the end the following 
new paragraph:
            ``(5) Leases to foreign entities.--In the case of tax-
        exempt use property leased to a tax-exempt entity which is a 
        foreign person or entity, the amendments made by this part 
        shall apply to taxable years beginning after December 31, 2006, 
        with respect to leases entered into on or before March 12, 
        2004.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of the American Jobs Creation 
Act of 2004.

SEC. 12506. 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 7.00 percentage 
points.

SEC. 12507. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, AND OTHER 
              AMOUNTS.

    (a) In General.--Subsection (f) of section 162 (relating to trade 
or business expenses) is amended to read as follows:
    ``(f) Fines, Penalties, and Other Amounts.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        deduction otherwise allowable shall be allowed under this 
        chapter for any amount paid or incurred (whether by suit, 
        agreement, or otherwise) to, or at the direction of, a 
        government or entity described in paragraph (4) in relation 
        to--
                    ``(A) the violation of any law, or
                    ``(B) an investigation or inquiry into the 
                potential violation of any law which is initiated by 
                such government or entity.
            ``(2) Exception for amounts constituting restitution or 
        paid to come into compliance with law.--Paragraph (1) shall not 
        apply to any amount which--
                    ``(A) the taxpayer establishes--
                            ``(i) constitutes restitution (or 
                        remediation of property) for damage or harm 
                        caused by, or which may be caused by, the 
                        violation of any law or the potential violation 
                        of any law, or
                            ``(ii) is paid to come into compliance with 
                        any law which was violated or involved in the 
                        investigation or inquiry, and
                    ``(B) is identified as an amount described in 
                clause (i) or (ii) of subparagraph (A), as the case may 
                be, in the court order or settlement agreement, except 
                that the requirement of this subparagraph shall not 
                apply in the case of any settlement agreement which 
                requires the taxpayer to pay or incur an amount not 
                greater than $1,000,000.
        A taxpayer shall not meet the requirements of subparagraph (A) 
        solely by reason of an identification under subparagraph (B). 
        This paragraph shall not apply to any amount paid or incurred 
        as reimbursement to the government or entity for the costs of 
        any investigation or litigation unless such amount is paid or 
        incurred for a cost or fee regularly charged for any routine 
        audit or other customary review performed by the government or 
        entity.
            ``(3) Exception for amounts paid or incurred as the result 
        of certain court orders.--Paragraph (1) shall not apply to any 
        amount paid or incurred by order of a court in a suit in which 
        no government or entity described in paragraph (4) is a party.
            ``(4) Certain nongovernmental regulatory entities.--An 
        entity is described in this paragraph if it is--
                    ``(A) a nongovernmental entity which exercises 
                self-regulatory powers (including imposing sanctions) 
                in connection with a qualified board or exchange (as 
                defined in section 1256(g)(7)), or
                    ``(B) to the extent provided in regulations, a 
                nongovernmental entity which exercises self-regulatory 
                powers (including imposing sanctions) as part of 
                performing an essential governmental function.
            ``(5) Exception for taxes due.--Paragraph (1) shall not 
        apply to any amount paid or incurred as taxes due.''.
    (b) Reporting of Deductible Amounts.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 is amended by inserting after section 6050V the 
        following new section:

``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES, PENALTIES, AND 
              OTHER AMOUNTS.

    ``(a) Requirement of Reporting.--
            ``(1) In general.--The appropriate official of any 
        government or entity which is described in section 162(f)(4) 
        which is involved in a suit or agreement described in paragraph 
        (2) shall make a return in such form as determined by the 
        Secretary setting forth--
                    ``(A) the amount required to be paid as a result of 
                the suit or agreement to which paragraph (1) of section 
                162(f) applies,
                    ``(B) any amount required to be paid as a result of 
                the suit or agreement which constitutes restitution or 
                remediation of property, and
                    ``(C) any amount required to be paid as a result of 
                the suit or agreement for the purpose of coming into 
                compliance with any law which was violated or involved 
                in the investigation or inquiry.
            ``(2) Suit or agreement described.--
                    ``(A) In general.--A suit or agreement is described 
                in this paragraph if--
                            ``(i) it is--
                                    ``(I) a suit with respect to a 
                                violation of any law over which the 
                                government or entity has authority and 
                                with respect to which there has been a 
                                court order, or
                                    ``(II) an agreement which is 
                                entered into with respect to a 
                                violation of any law over which the 
                                government or entity has authority, or 
                                with respect to an investigation or 
                                inquiry by the government or entity 
                                into the potential violation of any law 
                                over which such government or entity 
                                has authority, and
                            ``(ii) the aggregate amount involved in all 
                        court orders and agreements with respect to the 
                        violation, investigation, or inquiry is $600 or 
                        more.
                    ``(B) Adjustment of reporting threshold.--The 
                Secretary may adjust the $600 amount in subparagraph 
                (A)(ii) as necessary in order to ensure the efficient 
                administration of the internal revenue laws.
            ``(3) Time of filing.--The return required under this 
        subsection shall be filed not later than--
                    ``(A) 30 days after the date on which a court order 
                is issued with respect to the suit or the date the 
                agreement is entered into, as the case may be, or
                    ``(B) the date specified by the Secretary.
    ``(b) Statements To Be Furnished to Individuals Involved in the 
Settlement.--Every person required to make a return under subsection 
(a) shall furnish to each person who is a party to the suit or 
agreement a written statement showing--
            ``(1) the name of the government or entity, and
            ``(2) the information supplied to the Secretary under 
        subsection (a)(1).
The written statement required under the preceding sentence shall be 
furnished to the person at the same time the government or entity 
provides the Secretary with the information required under subsection 
(a).
    ``(c) Appropriate Official Defined.--For purposes of this section, 
the term `appropriate official' means the officer or employee having 
control of the suit, investigation, or inquiry or the person 
appropriately designated for purposes of this section.''.
            (2) Conforming amendment.--The table of sections for 
        subpart B of part III of subchapter A of chapter 61 is amended 
        by inserting after the item relating to section 6050V the 
        following new item:

``Sec. 6050W. Information with respect to certain fines, penalties, and 
                            other amounts''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred on or after the date of the enactment 
of this Act, except that such amendments shall not apply to amounts 
paid or incurred under any binding order or agreement entered into 
before such date. Such exception shall not apply to an order or 
agreement requiring court approval unless the approval was obtained 
before such date.

SEC. 12508. INCREASE IN INFORMATION RETURN PENALTIES.

    (a) Failure To File Correct Information Returns.--
            (1) In general.--Section 6721(a)(1) is amended--
                    (A) by striking ``$50'' and inserting ``$250'', and
                    (B) by striking ``$250,000'' and inserting 
                ``$3,000,000''.
            (2) Reduction where correction in specified period.--
                    (A) Correction within 30 days.--Section 6721(b)(1) 
                is amended--
                            (i) by striking ``$15'' and inserting 
                        ``$50'',
                            (ii) by striking ``$50'' and inserting 
                        ``$250'', and
                            (iii) by striking ``$75,000'' and inserting 
                        ``$500,000''.
                    (B) Failures corrected on or before august 1.--
                Section 6721(b)(2) is amended--
                            (i) by striking ``$30'' and inserting 
                        ``$100'',
                            (ii) by striking ``$50'' and inserting 
                        ``$250'', and
                            (iii) by striking ``$150,000'' and 
                        inserting ``$1,500,000''.
            (3) Lower limitation for persons with gross receipts of not 
        more than $5,000,000.--Section 6721(d)(1) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``$100,000'' and inserting 
                        ``$1,000,000'', and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$3,000,000'',
                    (B) in subparagraph (B)--
                            (i) by striking ``$25,000'' and inserting 
                        ``$175,000'', and
                            (ii) by striking ``$75,000'' and inserting 
                        ``$500,000'', and
                    (C) in subparagraph (C)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$500,000'', and
                            (ii) by striking ``$150,000'' and inserting 
                        ``$1,500,000''.
            (4) Penalty in case of intentional disregard.--Section 
        6721(e) is amended--
                    (A) by striking ``$100'' in paragraph (2) and 
                inserting ``$500'',
                    (B) by striking ``$250,000'' in paragraph (3)(A) 
                and inserting ``$3,000,000''.
    (b) Failure To Furnish Correct Payee Statements.--
            (1) In general.--Section 6722(a) is amended--
                    (A) by striking ``$50'' and inserting ``$250'', and
                    (B) by striking ``$100,000'' and inserting 
                ``$1,000,000''.
            (2) Penalty in case of intentional disregard.--Section 
        6722(c) is amended--
                    (A) by striking ``$100'' in paragraph (1) and 
                inserting ``$500'', and
                    (B) by striking ``$100,000'' in paragraph (2)(A) 
                and inserting ``$1,000,000''.
    (c) Failure To Comply With Other Information Reporting 
Requirements.--Section 6723 is amended--
            (1) by striking ``$50'' and inserting ``$250'', and
            (2) by striking ``$100,000'' and inserting ``$1,000,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to information returns required to be filed on or 
after January 1, 2008.

SEC. 12509. ASSET TREATMENT OF HORSES.

    (a) 3-Year Depreciation for All Race Horses.--
            (1) In general.--Clause (i) of section 168(e)(3)(A) of the 
        Internal Revenue Code of 1986 (relating to 3-year property) is 
        amended to read as follows:
                            ``(i) any race horse,''.
            (2) Effective date.--The amendment made by this section 
        shall apply to property placed in service on or after the date 
        of the enactment of this Act.
    (b) Reduction of Holding Period to 12 Months for Purposes of 
Determining Whether Horses Are Section 1231 Assets.--
            (1) In general.--Subparagraph (A) of section 1231(b)(3) of 
        the Internal Revenue Code of 1986 (relating to definition of 
        livestock) is amended by striking ``and horses''.
            (2) Effective date.--The amendment made by this section 
        shall apply to taxable years beginning after December 31, 2007.

SEC. 12510. ELIMINATION OF PRIVATE PAYMENT TEST FOR PROFESSIONAL SPORTS 
              FACILITY BONDS.

    (a) In General.--Section 141(a) (defining private activity bond) is 
amended by adding at the end the following new flush sentence:
``In the case of any professional sports facility bond, paragraph (1) 
shall be applied without regard to subparagraph (B) thereof.''.
    (b) Professional Sports Facility Bond Defined.--Section 141 is 
amended by adding at the end the following new subsection:
    ``(f) Professional Sports Facility Bond.--For purposes of 
subsection (a)--
            ``(1) In general.--The term `professional sports facility 
        bond' means any bond issued as part of an issue any portion of 
        the proceeds of which are to be used to provide a professional 
        sports facility.
            ``(2) Professional sports facility.--The term `professional 
        sports facility' means real property and related improvements 
        used, in whole or in part, for professional sports, 
        professional sports exhibitions, professional games, or 
        professional training.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act, 
other than bonds with respect to which a resolution was issued by an 
issuer or conduit borrower before January 24, 2007.

SEC. 12511. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP 
              RETURNS; LIMITATION ON DISCLOSURE.

    (a) Extension of Time Limitation.--Section 6698(a) (relating to 
failure to file partnership returns) is amended by striking ``5 
months'' and inserting ``12 months''.
    (b) Increase in Penalty Amount.--Paragraph (1) of section 6698(b) 
is amended by striking ``$50'' and inserting ``$100''.
    (c) Limitation on Disclosure of Taxpayer Returns to Partners, S 
Corporation Shareholders, Trust Beneficiaries, and Estate 
Beneficiaries.--
            (1) In general.--Section 6103(e) (relating to disclosure to 
        persons having material interest) is amended by adding at the 
        end the following new paragraph:
            ``(10) Limitation on certain disclosures under this 
        subsection.--In the case of an inspection or disclosure under 
        this subsection relating to the return of a partnership, S 
        corporation, trust, or an estate, the information inspected or 
        disclosed shall not include any supporting schedule, 
        attachment, or list which includes the taxpayer identity 
        information of a person other than the entity making the return 
        or the person conducting the inspection or to whom the 
        disclosure is made.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to returns required to be filed after the date of the 
enactment of this Act.

SEC. 12512. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO 
              TREAT ELECTIVE DEFERRALS AS ROTH CONTRIBUTIONS.

    (a) In General.--Section 402A(e)(1) (defining applicable retirement 
plan) is amended by striking ``and'' at the end of subparagraph (A), by 
striking the period at the end of subparagraph (B) and inserting ``, 
and'', and by adding at the end the following:
                    ``(C) an eligible deferred compensation plan (as 
                defined in section 457(b)) of an eligible employer 
                described in section 457(e)(1)(A).''.
    (b) Elective Deferrals.--Section 402A(e)(2) (defining elective 
deferral) is amended to read as follows:
            ``(2) Elective deferral.--The term `elective deferral' 
        means--
                    ``(A) any elective deferral described in 
                subparagraph (A) or (C) of section 402(g)(3), and
                    ``(B) any elective deferral of compensation by an 
                individual under an eligible deferred compensation plan 
                (as defined in section 457(b)) of an eligible employer 
                described in section 457(e)(1)(A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

                  PART II--ECONOMIC SUBSTANCE DOCTRINE

SEC. 12521. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

    (a) In General.--Section 7701 is amended by redesignating 
subsection (p) as subsection (q) and by inserting after subsection (o) 
the following new subsection:
    ``(p) Clarification of Economic Substance Doctrine; Etc.--
            ``(1) General rules.--
                    ``(A) In general.--In any case in which a court 
                determines that the economic substance doctrine is 
                relevant for purposes of this title to a transaction 
                (or series of transactions), such transaction (or 
                series of transactions) shall have economic substance 
                only if the requirements of this paragraph are met.
                    ``(B) Definition of economic substance.--For 
                purposes of subparagraph (A)--
                            ``(i) In general.--A transaction has 
                        economic substance only if--
                                    ``(I) the transaction changes in a 
                                meaningful way (apart from Federal tax 
                                effects) the taxpayer's economic 
                                position, and
                                    ``(II) subject to clause (iii), the 
                                taxpayer has a substantial purpose 
                                (other than a Federal tax purpose) for 
                                entering into such transaction.
                            ``(ii) Special rule where taxpayer relies 
                        on profit potential.--A transaction shall not 
                        be treated as having economic substance solely 
                        by reason of having a potential for profit 
                        unless the present value of the reasonably 
                        expected pre-Federal tax profit from the 
                        transaction is substantial in relation to the 
                        present value of the expected net Federal tax 
                        benefits that would be allowed if the 
                        transaction were respected. In determining pre-
                        Federal tax profit, there shall be taken into 
                        account fees and other transaction expenses and 
                        to the extent provided by the Secretary, 
                        foreign taxes.
                            ``(iii) Special rules for determining 
                        whether non-federal tax purpose.--For purposes 
                        of clause (i)(II)--
                                    ``(I) a purpose of achieving a 
                                financial accounting benefit shall not 
                                be taken into account in determining 
                                whether a transaction has a substantial 
                                purpose (other than a Federal tax 
                                purpose) if the origin of such 
                                financial accounting benefit is a 
                                reduction of Federal tax, and
                                    ``(II) the taxpayer shall not be 
                                treated as having a substantial purpose 
                                (other than a Federal tax purpose) with 
                                respect to a transaction if the only 
                                such purpose is the reduction of non-
                                Federal taxes and the transaction will 
                                result in a reduction of Federal taxes 
                                substantially equal to, or greater 
                                than, the reduction in non-Federal 
                                taxes because of similarities between 
                                the laws imposing the taxes.
            ``(2) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Economic substance doctrine.--The term 
                `economic substance doctrine' means the common law 
                doctrine under which tax benefits under subtitle A with 
                respect to a transaction are not allowable if the 
                transaction does not have economic substance or lacks a 
                business purpose.
                    ``(B) Exception for personal transactions of 
                individuals.--In the case of an individual, this 
                subsection shall apply only to transactions entered 
                into in connection with a trade or business or an 
                activity engaged in for the production of income.
            ``(3) Other provisions not affected.--Except as 
        specifically provided in this subsection, the provisions of 
        this subsection shall not be construed as altering or 
        supplanting any other rule of law or provision of this title, 
        and the requirements of this subsection shall be construed as 
        being in addition to any such other rule of law or provision of 
        this title.
            ``(4) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of this subsection. Such regulations may include 
        exemptions from the application of this subsection.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transactions entered into after the date of the enactment of 
this Act.

SEC. 12522. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO TRANSACTIONS 
              LACKING ECONOMIC SUBSTANCE, ETC.

    (a) In General.--Subchapter A of chapter 68 is amended by inserting 
after section 6662A the following new section:

``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO TRANSACTIONS 
              LACKING ECONOMIC SUBSTANCE, ETC.

    ``(a) Imposition of Penalty.--If a taxpayer has an noneconomic 
substance transaction understatement for any taxable year, there shall 
be added to the tax an amount equal to 30 percent of the amount of such 
understatement.
    ``(b) Reduction of Penalty for Disclosed Transactions.--Subsection 
(a) shall be applied by substituting `20 percent' for `30 percent' with 
respect to the portion of any noneconomic substance transaction 
understatement with respect to which the relevant facts affecting the 
tax treatment of the item are adequately disclosed in the return or a 
statement attached to the return.
    ``(c) Noneconomic Substance Transaction Understatement.--For 
purposes of this section--
            ``(1) In general.--The term `noneconomic substance 
        transaction understatement' means any amount which would be an 
        understatement under section 6662A(b)(1) if section 6662A were 
        applied by taking into account items attributable to 
        noneconomic substance transactions rather than items to which 
        section 6662A would apply without regard to this paragraph.
            ``(2) Noneconomic substance transaction.--The term 
        `noneconomic substance transaction' means any transaction if 
        there is a lack of economic substance (within the meaning of 
        section 7701(p)(1)(B)) for the transaction giving rise to the 
        claimed benefit.
    ``(d) Rules Applicable To Assertion, Compromise, and Collection of 
Penalty.--
            ``(1) In general.--Only the Chief Counsel for the Internal 
        Revenue Service may assert a penalty imposed under this section 
        or may compromise all or any portion of such penalty. The Chief 
        Counsel may delegate the authority under this paragraph only to 
        an individual holding the position of chief of a branch within 
        the Office of the Chief Counsel for the Internal Revenue 
        Service.
            ``(2) Specific requirements.--
                    ``(A) Assertion of penalty.--The Chief Counsel for 
                the Internal Revenue Service (or the Chief Counsel's 
                delegate under paragraph (1)) shall not assert a 
                penalty imposed under this section unless, before the 
                assertion of the penalty, the taxpayer is provided--
                            ``(i) a notice of intent to assert the 
                        penalty, and
                            ``(ii) an opportunity to provide to the 
                        Commissioner (or the Chief Counsel's delegate 
                        under paragraph (1)) a written response to the 
                        proposed penalty within a reasonable period of 
                        time after such notice.
                    ``(B) Compromise of penalty.--A compromise shall 
                not result in a reduction in the penalty imposed by 
                this section in an amount greater than the amount which 
                bears the same ratio to the amount of the penalty 
                determined without regard to the compromise as--
                            ``(i) the reduction under the compromise in 
                        the noneconomic substance transaction 
                        understatement to which the penalty relates, 
                        bears to
                            ``(ii) the amount of the noneconomic 
                        substance transaction understatement determined 
                        without regard to the compromise.
            ``(3) Rules relating to relevancy requirement.--
                    ``(A) Determination of relevance by chief 
                counsel.--The Chief Counsel for the Internal Revenue 
                Service (or the Chief Counsel's delegate under 
                paragraph (1)) may assert, compromise, or collect a 
                penalty imposed by this section with respect to a 
                noneconomic substance transaction even if there has not 
                been a court determination that the economic substance 
                doctrine was relevant for purposes of this title to the 
                transaction if the Chief Counsel (or delegate) 
                determines that either was so relevant.
                    ``(B) Final order of court.--If there is a final 
                order of a court that determines that the economic 
                substance doctrine was not relevant for purposes of 
                this title to a transaction (or series of 
                transactions), any penalty imposed under this section 
                with respect to the transaction (or series of 
                transactions) shall be rescinded.
            ``(4) Applicable rules.--The rules of paragraphs (2) and 
        (3) of section 6707A(d) shall apply to a compromise under 
        paragraph (1).
    ``(e) Coordination With Other Penalties.--Except as otherwise 
provided in this part, the penalty imposed by this section shall be in 
addition to any other penalty imposed by this title.
    ``(f) Cross References.--

            ``(1) For coordination of penalty with 
            understatements under section 6662 and other 
            special rules, see section 6662A(e).
            ``(2) For reporting of penalty imposed under 
            this section to the Securities and Exchange 
            Commission, see section 6707A(e).''.
    (b) Coordination With Other Understatements and Penalties.--
            (1) The second sentence of section 6662(d)(2)(A) is amended 
        by inserting ``and without regard to items with respect to 
        which a penalty is imposed by section 6662B'' before the period 
        at the end.
            (2) Subsection (e) of section 6662A is amended--
                    (A) in paragraph (1), by inserting ``and 
                noneconomic substance transaction understatements'' 
                after ``reportable transaction understatements'' both 
                places it appears,
                    (B) in paragraph (2)(A)--
                            (i) by inserting ``6662B or'' before 
                        ``6663'' in the text, and
                            (ii) by striking ``penalty'' in the heading 
                        and inserting ``and economic substance 
                        penalties'',
                    (C) in paragraph (2)(B)--
                            (i) by inserting ``and section 6662B'' 
                        after ``This section'', and
                            (ii) by striking ``penalty'' in the heading 
                        and inserting ``and economic substance 
                        penalties'',
                    (D) in paragraph (3), by inserting ``or noneconomic 
                substance transaction understatement'' after 
                ``reportable transaction understatement'', and
                    (E) by adding at the end the following new 
                paragraph:
            ``(4) Noneconomic substance transaction understatement.--
        For purposes of this subsection, the term `noneconomic 
        substance transaction understatement' has the meaning given 
        such term by section 6662B(c).''.
            (3) Subsection (e) of section 6707A is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (B), and
                    (B) by striking subparagraph (C) and inserting the 
                following new subparagraphs:
                    ``(C) is required to pay a penalty under section 
                6662B with respect to any noneconomic substance 
                transaction, or
                    ``(D) is required to pay a penalty under section 
                6662(h) with respect to any transaction and would (but 
                for section 6662A(e)(2)(B)) have been subject to 
                penalty under section 6662A at a rate prescribed under 
                section 6662A(c) or to penalty under section 6662B,''.
    (c) Clerical Amendment.--The table of sections for part II of 
subchapter A of chapter 68 is amended by inserting after the item 
relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions 
                            lacking economic substance, etc.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to transactions entered into after the date of the enactment of 
this Act.

SEC. 12523. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
              ATTRIBUTABLE TO NONECONOMIC SUBSTANCE TRANSACTIONS.

    (a) In General.--Section 163(m) (relating to interest on unpaid 
taxes attributable to nondisclosed reportable transactions) is 
amended--
            (1) by striking ``attributable'' and all that follows and 
        inserting the following: ``attributable to--
            ``(1) the portion of any reportable transaction 
        understatement (as defined in section 6662A(b)) with respect to 
        which the requirement of section 6664(d)(2)(A) is not met, or
            ``(2) any noneconomic substance transaction understatement 
        (as defined in section 6662B(c)).'', and
            (2) by inserting ``and Noneconomic Substance Transactions'' 
        in the heading thereof after ``Transactions''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transactions after the date of the enactment of this Act in 
taxable years ending after such date.

               Subtitle F--Protection of Social Security

SEC. 12601. 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, $86,000,000.
            (2) For fiscal year 2010, $90,000,000.
            (3) For fiscal year 2011, $88,000,000.
            (4) For fiscal year 2012, $88,000,000.
            (5) For fiscal year 2013, $5,000,000.
            (6) For fiscal year 2014, $5,000,000.
            (7) For fiscal year 2015, $4,000,000.
            (8) For each fiscal year after fiscal year 2015, 
        $2,000,000.

SEC. 12602. 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.--Notwithstanding subparagraph (A), 
                for loans (other than guaranteed loans) for water and 
                waste disposal facilities--
                            ``(i) in the case of a loan that would be 
                        subject to the 5 percent interest rate 
                        limitation under subparagraph (A), the 
                        Secretary shall set the interest rate equal to 
                        60 percent of the current market yield for 
                        outstanding municipal obligations with 
                        remaining periods to maturity comparable to the 
                        average maturity of such loans, adjusted to the 
                        nearest one-eight of 1 per centum; and
                            ``(ii) in the case of a loan that would be 
                        subject to the 7 percent limitation in 
                        subparagraph (A), the Secretary shall set the 
                        interest rate equal to 80 percent of the 
                        current market yield for outstanding municipal 
                        obligations with remaining periods to maturity 
                        comparable to the average maturity of such 
                        loans, adjusted to the nearest one-eight of 1 
                        per centum.''.

           Subtitle G--Kansas Disaster Tax Relief Assistance

SEC. 12701. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND 
              SURROUNDING AREA.

    The following provisions of or relating to the Internal Revenue 
Code of 1986 shall apply, in addition to the areas described in such 
provisions, to 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 
attributed to such storms and tornados:
            (1) 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''.
            (2) Extension of replacement period for nonrecognition of 
        gain.--Section 405 of the Katrina Emergency Tax Relief Act of 
        2005, by substituting ``on or after May 4, 2007, by reason of 
        the May 4, 2007, storms and tornados'' for ``on or after August 
        25, 2005, by reason of Hurricane Katrina''.
            (3) 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,
                    (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.
            (4) 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.
            (5) 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.
            (6) 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 
                clean-up 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.
            (7) Treatment of public utility property disaster losses.--
        Section 1400N(o) of such Code.
            (8) 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,
                    (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.
            (9) Treatment of representations regarding income 
        eligibility for purposes of qualified rental project 
        requirements.--Section 1400N(n) of such Code.
            (10) 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 ``qualified storm 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (D) 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),
                    (E) by substituting ``beginning on May 4, 2007, and 
                ending on November 5, 2007'' for ``beginning on August 
                25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (F) by substituting ``qualified storm individual'' 
                for ``qualified Hurricane Katrina individual'' each 
                place it appears,
                    (G) by substituting ``December 31, 2007'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (H) by substituting ``beginning on June 4, 2007, 
                and ending on December 31, 2007'' for ``beginning on 
                September 24, 2005, and ending on December 31, 2006'' 
                in subsection (c)(4)(A)(i),
                    (I) by substituting ``May 4, 2007'' for ``August 
                25, 2005'' in subsection (c)(4)(A)(ii), and
                    (J) by substituting ``January 1, 2008'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).

                      Subtitle H--Other Provisions

SEC. 12801. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH 
              THE EXXON VALDEZ LITIGATION.

    (a) Income Averaging of Amounts Received From the Exxon Valdez 
Litigation.--For purposes of section 1301 of the Internal Revenue Code 
of 1986--
            (1) any qualified taxpayer who receives any qualified 
        settlement income in any taxable year shall be treated as 
        engaged in a fishing business (determined without regard to the 
        commercial nature of the business), and
            (2) such qualified settlement income shall be treated as 
        income attributable to such a fishing business for such taxable 
        year.
    (b) Contributions of Amounts Received to Retirement Accounts.--
            (1) In general.--Any qualified taxpayer who receives 
        qualified settlement income during the taxable year may, at any 
        time before the end of the taxable year in which such income 
        was received, make one or more contributions to an eligible 
        retirement plan of which such qualified taxpayer is a 
        beneficiary in an aggregate amount not to exceed the lesser 
        of--
                    (A) $100,000 (reduced by the amount of qualified 
                settlement income contributed to an eligible retirement 
                plan in prior taxable years pursuant to this 
                subsection), or
                    (B) the amount of qualified settlement income 
                received by the individual during the taxable year.
            (2) Time when contributions deemed made.--For purposes of 
        paragraph (1), a qualified taxpayer shall be deemed to have 
        made a contribution to an eligible retirement plan on the last 
        day of the taxable year in which such income is received if the 
        contribution is made on account of such taxable year and is 
        made not later than the time prescribed by law for filing the 
        return for such taxable year (not including extensions 
        thereof).
            (3) Treatment of contributions to eligible retirement 
        plans.--For purposes of the Internal Revenue Code of 1986, if a 
        contribution is made pursuant to paragraph (1) with respect to 
        qualified settlement income, then--
                    (A) except as provided in paragraph (4)--
                            (i) to the extent of such contribution, the 
                        qualified settlement income shall not be 
                        included in gross income, and
                            (ii) for purposes of section 72 of such 
                        Code, such contribution shall not be considered 
                        to be investment in the contract,
                    (B) the qualified taxpayer shall, to the extent of 
                the amount of the contribution, be treated--
                            (i) as having received the qualified 
                        settlement income--
                                    (I) in the case of a contribution 
                                to an individual retirement plan (as 
                                defined under section 7701(a)(37) of 
                                such Code), in a distribution described 
                                in section 408(d)(3) of such Code, and
                                    (II) in the case of any other 
                                eligible retirement plan, in an 
                                eligible rollover distribution (as 
                                defined under section 402(f)(2) of such 
                                Code), and
                            (ii) as having transferred the amount to 
                        the eligible retirement plan in a direct 
                        trustee to trustee transfer within 60 days of 
                        the distribution,
                    (C) section 408(d)(3)(B) of the Internal Revenue 
                Code of 1986 shall not apply with respect to amounts 
                treated as a rollover under this paragraph, and
                    (D) section 408A(c)(3)(B) of the Internal Revenue 
                Code of 1986 shall not apply with respect to amounts 
                contributed to a Roth IRA (as defined under section 
                408A(b) of such Code) or a designated Roth contribution 
                to an applicable retirement plan (within the meaning of 
                section 402A of such Code) under this paragraph.
            (4) Special rule for roth iras and roth 401(k)s.--For 
        purposes of the Internal Revenue Code of 1986, if a 
        contribution is made pursuant to paragraph (1) with respect to 
        qualified settlement income to a Roth IRA (as defined under 
        section 408A(b) of such Code) or as a designated Roth 
        contribution to an applicable retirement plan (within the 
        meaning of section 402A of such Code), then--
                    (A) the qualified settlement income shall be 
                includible in gross income, and
                    (B) for purposes of section 72 of such Code, such 
                contribution shall be considered to be investment in 
                the contract.
            (5) Eligible retirement plan.--For purpose of this 
        subsection, the term ``eligible retirement plan'' has the 
        meaning given such term under section 402(c)(8)(B) of the 
        Internal Revenue Code of 1986.
    (c) Treatment of Qualified Settlement Income Under Employment 
Taxes.--
            (1) SECA.--For purposes of chapter 2 of the Internal 
        Revenue Code of 1986 and section 211 of the Social Security 
        Act, no portion of qualified settlement income received by a 
        qualified taxpayer shall be treated as self-employment income.
            (2) FICA.--For purposes of chapter 21 of the Internal 
        Revenue Code of 1986 and section 209 of the Social Security 
        Act, no portion of qualified settlement income received by a 
        qualified taxpayer shall be treated as wages.
    (d) Qualified Taxpayer.--For purposes of this section, the term 
``qualified taxpayer'' means--
            (1) any individual who is a plaintiff in the civil action 
        In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. 
        Alaska); or
            (2) any individual who is a beneficiary of the estate of 
        such a plaintiff who--
                    (A) acquired the right to receive qualified 
                settlement income from that plaintiff; and
                    (B) was the spouse or an immediate relative of that 
                plaintiff.
    (e) Qualified Settlement Income.--For purposes of this section, the 
term ``qualified settlement income'' means any interest and punitive 
damage awards which are--
            (1) otherwise includible in gross income (determined 
        without regard to subsection (b)), and
            (2) received (whether as lump sums or periodic payments) in 
        connection with the civil action In re Exxon Valdez, No. 89-
        095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or post-
        judgment and whether related to a settlement or judgment).

SEC. 12802. 2-YEAR EXTENSION AND EXPANSION OF CHARITABLE DEDUCTION FOR 
              CONTRIBUTIONS OF FOOD INVENTORY.

    (a) In General.--Section 170(e)(3)(C) (relating to special rule for 
certain contributions of inventory and other property) is amended--
            (1) by striking ``December 31, 2007'' in clause (iv) and 
        inserting ``December 31, 2009'', and
            (2) by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively, and by inserting after clause (ii) the 
        following new clause:
                            ``(iii) Determination of basis.--If a 
                        taxpayer--
                                    ``(I) does not account for 
                                inventories under section 471, and
                                    ``(II) is not required to 
                                capitalize indirect costs under section 
                                263A,
                        the taxpayer may elect, solely for purposes of 
                        subparagraph (B), to treat the basis of any 
                        apparently wholesome food as being equal to 25 
                        percent of the fair market value of such 
                        food.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2007.

SEC. 12803. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED 
              FROM GROSS INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 is amended 
by inserting after section 139A the following new section:

``SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.

    ``(a) In General.--Gross income of an individual does not include 
amounts received, from an organization described in section 170(c), as 
reimbursement of operating expenses with respect to use of a passenger 
automobile for the benefit of such organization. The preceding sentence 
shall apply only to the extent that such reimbursement would be 
deductible under this chapter if section 274(d) were applied--
            ``(1) by using the standard business mileage rate in effect 
        under section 162(a) at the time of such use, and
            ``(2) as if the individual were an employee of an 
        organization not described in section 170(c).
    ``(b) Application to Volunteer Services Only.--Subsection (a) shall 
not apply with respect to any expenses relating to the performance of 
services for compensation.
    ``(c) No Double Benefit.--No deduction or credit shall be allowed 
under any other provision of this title with respect to the expenses 
excludable from gross income under subsection (a).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 139A and 
inserting the following new item:
``Sec. 139B. Reimbursement for use of passenger automobile for 
                            charity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 12804. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING 
              CHARITABLE CONTRIBUTIONS OF PROPERTY.

    (a) Technical Amendment Related to Section 1203 of the Pension 
Protection Act of 2006.--Subsection (d) of section 1366 is amended by 
adding at the end the following new paragraph:
            ``(4) Application of limitation on charitable 
        contributions.--In the case of any charitable contribution of 
        property to which the second sentence of section 1367(a)(2) 
        applies, paragraph (1) shall not apply to the extent of the 
        excess (if any) of--
                    ``(A) the shareholder's pro rata share of such 
                contribution, over
                    ``(B) the shareholder's pro rata share of the 
                adjusted basis of such property.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provision of the Pension Protection Act of 
2006 to which it relates.

SEC. 12805. PRIVATE PAYMENT TEST FOR PROFESSIONAL SPORTS FACILITY 
              BONDS.

    Section 141, as amended by this Act, is amended--
            (1) by striking the last sentence of subsection (a), and
            (2) by striking subsection (f).

SEC. 12806. APPLICATION OF REHABILITATION CREDIT AND DEPRECIATION 
              SCHEDULES TO CERTAIN LOW-INCOME HOUSING FOR THE ELDERLY.

    (a) In General.--Section 251(d)(4)(X) of the Tax Reform Act of 1986 
is repealed.
    (b) Effective Date.--The repeal made by this section shall apply to 
property placed in service after the date of the enactment of this Act.

SEC. 12807. 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.

SEC. 12808. 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 70 percent of 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 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 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.--Available project proceeds 
                invested during the expenditure period shall not be 
                subject to the requirements of subparagraph (A).
                    ``(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 in a manner 
                        reasonably expected to result in an amount not 
                        greater than an amount necessary to repay the 
                        issue, and
                            ``(ii) 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.
    ``(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 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) 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 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 donated 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 501(c)(3) organization (as defined 
in section 150(a)(4)).''.
    (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.''.

    (d) Effective Dates.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

            TITLE XIII--AMENDMENTS TO COMMODITY EXCHANGE ACT

SEC. 13001. SHORT TITLE.

    This title may be cited as the ``CFTC Reauthorization Act of 
2007''.

                     Subtitle A--General Provisions

SEC. 13101. CFTC AUTHORITY OVER OFF-EXCHANGE RETAIL FOREIGN CURRENCY 
              TRANSACTIONS.

    (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 
                                        17(h) of the Securities 
                                        Exchange Act of 1934 (15 U.S.C. 
                                        78o-5(b), 78q(h));
                                            ``(cc) a futures commission 
                                        merchant registered under this 
                                        Act (that is not also a person 
                                        described in item (bb)), or an 
                                        affiliated person of such a 
                                        futures commission merchant 
                                        (that is not also a person 
                                        described in item (bb)) if such 
                                        futures commission merchant 
                                        makes and keeps records under 
                                        section 4f(c)(2)(B) of this Act 
                                        concerning the futures and 
                                        other financial activities of 
                                        such 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); or
                                            ``(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))).
                            ``(ii) Notwithstanding item (cc) 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 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 
                        an affiliated person of a futures commission 
                        merchant registered under this Act that is not 
                        also a person described in any of items (aa), 
                        (bb), (dd), (ee), or (ff) of clause (i) of this 
                        subparagraph.
                            ``(iii)(I) Notwithstanding item (cc) of 
                        clause (i)(II), a person shall not participate 
                        in the solicitation or recommendation of any 
                        agreement, contract, or transaction described 
                        in clause (i) entered into with or to be 
                        entered into with a person described in such 
                        item, unless the person--
                                    ``(aa) is registered in such 
                                capacity as the Commission by rule, 
                                regulation, or order shall determine; 
                                and
                                    ``(bb) is a member of a futures 
                                association registered under section 
                                17.
                                    ``(II) Subclause (I) shall not 
                                apply to--
                                            ``(aa) any person described 
                                        in any of items (aa), (bb), 
                                        (dd), (ee), or (ff) of 
                                        subparagraph (B)(i)(II); or
                                            ``(bb) any such person's 
                                        associated persons.
                    ``(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 
                        items (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) 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 items (aa), 
                (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); 
                or
                    ``(bb) any such person's associated persons.
    ``(iii)(I) A person shall not participate in the solicitation or 
recommendation of any agreement, contract, or transaction described in 
clause (i) of this subparagraph unless the person is registered in such 
capacity as the Commission by rule, regulation, or order shall 
determine, and is a member of a futures association registered under 
section 17.
    ``(II) Subclause (I) shall not apply to--
            ``(aa) any person described in any of items (aa), (bb), 
        (dd), (ee), or (ff) of subparagraph (B)(i)(II); or
            ``(bb) any such person's associated persons.
                            ``(iv)(I) 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.
                            ``(II) The Commission may, after issuing 
                        notice and soliciting comment, issue rules 
                        proscribing fraud in connection with any 
                        agreement, contract, or transaction described 
                        in clause (i) in an exempt commodity or an 
                        agricultural commodity. Nothing in this 
                        provision shall affect the determination of 
                        whether such agreement, contract, or 
                        transaction is a contract for the purchase or 
                        sale of a commodity for future delivery for 
                        purposes of section 4(a).
                            ``(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.--Clause (iii) of section 2(c)(2)(B) and clause 
(iii) of section 2(c)(2)(C) 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 such other time as the 
Commodity Futures Trading Commission shall determine.

SEC. 13102. LIAISON WITH DEPARTMENT OF JUSTICE.

    Section 2(a)(9) of the Commodity Exchange Act (7 U.S.C. 2(a)(9)) is 
amended by adding at the end the following:
                    ``(C) Liaison with department of justice.--
                            ``(i) In general.--The Commission shall, in 
                        cooperation with the Attorney General, maintain 
                        a liaison between the Commission and the 
                        Department of Justice to coordinate civil and 
                        criminal investigations and prosecutions of 
                        violations of this Act as appropriate.
                            ``(ii) Designation.--The Attorney General 
                        shall designate a person as liaison and take 
                        such steps as are necessary to facilitate 
                        communications described in clause (i).''.

SEC. 13103. 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 ``SEC.4b.'' and all that follows 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;
                    ``(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. 13104. 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 paragraph (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), 
        or section 9(a)(2), a civil penalty of not more than the 
        greater of $1,000,000 or triple the monetary gain to such 
        person for each such violation,''.
    (b) Nonenforcement of Rules of Government or Other Violations.--
Section 6b of the Commodity Exchange 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 sections 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, 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 the 
Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended by striking 
``(d)'' and all that follows through the end of paragraph (1) 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 sections 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 of the Commodity Exchange Act 
(7 U.S.C. 13) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1)--
                    (A) by striking ``(or $500,000 in the case of a 
                person who is an individual)''; and
                    (B) by striking ``five years'' and inserting ``10 
                years'';
            (2) by re-designating subsection (f) as subsection (e); and
            (3) in paragraph (1) of subsection (e) (as redesignated by 
        paragraph (2)), by striking the period at the end and inserting 
        ``; or''.

SEC. 13105. 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. 13106. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 6a(e)) is 
amended in the last proviso 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) 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)''.

SEC. 13107. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.

    (a) The agencies represented on the President's Working Group on 
Financial Markets 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, 2008, risk-based portfolio margining 
        for security options and security futures products; and
            (2) by June 30, 2008, 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)(A).''.
    (b) Standards Applicable to Significant Price Discovery 
Contracts.--Section 2(h) of the Commodity Exchange Act (7 U.S.C. 2(h)) 
is amended by adding at the end the following:
            ``(7) Standards applicable to significant price discover 
        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 (E), under such rules and 
                regulations as the Commission may 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 so as to permit 
                        market participants to effectively arbitrage 
                        between the markets by simultaneously 
                        maintaining positions or executing trades in 
                        the contracts on the electronic trading 
                        facility and the designated contract market or 
                        derivatives transaction execution facility 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 impact on other agreements, 
                        contracts, or transactions listed for trading 
                        on or subject to the rules of a designated 
                        contract market, a derivatives trading 
                        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, 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 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 such 
                                        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 position 
                                limitations or position accountability 
                                for speculators in significant price 
                                discovery contracts, where necessary 
                                and appropriate, to reduce the 
                                potential threat of market 
                                manipulation, price distortion, and 
                                disruptions of the delivery or cash-
                                settlement process 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 
                                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 for significant 
                                price discovery contracts, as the 
                                Commission considers appropriate.
                                    ``(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 such 
                                contracts and any limitations on access 
                                to the electronic trading facility with 
                                respect to such contracts.
                                    ``(VIII) Conflict of interest.--The 
                                electronic trading facility 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.
                                    ``(IX) Antitrust considerations.--
                                Unless necessary or appropriate to 
                                achieve the purposes of this Act, the 
                                electronic trading facility 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.--The electronic trading 
                facility shall have discretion to take into account 
                differences between cleared and uncleared significant 
                price discovery contracts in applying core principles 
                in subclauses (IV) and (V) of subparagraph (C), and the 
                Commission shall take such differences into 
                consideration when reviewing the implementation of such 
                core principles by an electronic trading facility.
                    ``(E) New significant price discovery contracts.--
                            ``(i) Notification.--An electronic trading 
                        facility shall notify the Commission whenever 
                        the electronic trading facility has reason to 
                        believe that an agreement, contract, or 
                        transaction conducted in reliance on the 
                        exemption provided in paragraph (3) displays 
                        any of the factors relating to a significant 
                        price discovery function as described in 
                        subparagraph (B) (including regulations under 
                        this paragraph).
                            ``(ii) Review.--In addition to any review 
                        conducted upon receiving a notification 
                        pursuant to clause (i), at any other such time 
                        the Commission determines to be appropriate, 
                        but at least on an annual basis, the Commission 
                        shall conduct an evaluation, appropriate to the 
                        agreement, contract, or transaction, to 
                        determine whether any agreement, contract, or 
                        transaction conducted on an electronic trading 
                        facility in reliance on the exemption provided 
                        in paragraph (3) is performing a significant 
                        price discovery function.''.

SEC. 13202. LARGE TRADER REPORTING.

    (a) Reporting and Recordkeeping.--Section 4g of the Commodity 
Exchange Act (7 U.S.C. 6g) is amended in subsection (a) by striking 
``elsewhere;'' and inserting ``elsewhere, and in any significant price 
discovery contract traded or executed on an electronic trading 
facility;''.
    (b) Reports of Positions Equal to or in Excess of Trading Limits.--
Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is amended--
            (1) by inserting ``, or any significant price discovery 
        contract on an electronic trading facility'' after ``subject to 
        the rules of any contract market or derivatives transaction 
        execution facility'' ; and
            (2) by inserting in the matter following paragraph (2), 
        ``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 the Commodity Exchange 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)(1) Section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C. 
2(a)(1)(A)) is amended by inserting after ``section 19 of this Act'' 
the following: ``, and significant price discovery contracts traded or 
executed on an electronic trading facility''.
    (2) Nothing contained in this subtitle or amendments made by this 
subtitle shall be construed to affect the jurisdiction that the 
Commission or any regulatory authority may otherwise have under any 
other provision of law with respect to contracts, agreements, or 
transactions that are not significant price discovery contracts.
    (d) Section 2(h)(3) of the Commodity Exchange 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 the Commodity Exchange Act (7 U.S.C. 
2(h)(4)) is amended 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.''.
    (f) Section 2(h)(5)(B)(iii)(I) of the Commodity Exchange 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 the Commodity Exchange Act (7 U.S.C. 6a) is 
amended--
            (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 the Commodity Exchange 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 limits or accountability.--To reduce the 
        potential threat of market manipulation, price distortion, and 
        disruption of the delivery or cash-settled process 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 the Commodity Exchange 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 the Commodity Exchange Act (7 U.S.C. 7a-2(b)) 
is amended--
            (1) by striking paragraph (1) and inserting 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 inserting ``contract market, derivatives 
        transaction execution facility, or electronic trading 
        facility''.
    (k) Section 5c(d)(1) of the Commodity Exchange 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 the Commodity Exchange 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 
``resubmitted in completed form: 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,''.

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.--The 
Commission shall--
            (1) not later than 180 days after the date of the enactment 
        of this Act, issue a proposed rule regarding the significant 
        price discovery standards in section 13201; and
            (2) not later than 270 days after the date of enactment of 
        this Act, issue a final rule.
    (c) Significant Price Discovery Determinations.--With respect to 
any electronic trading facility operating on the effective date of the 
final rule regarding significant price discovery standards, the 
Commission shall complete a review of the agreements, contracts, and 
transactions of such facilities not later than 180 days after that 
effective date to determine whether any such agreement, contract, or 
transaction performs a significant price discovery function.

            Attest:

                                                             Secretary.
110th CONGRESS

  1st Session

                               H. R. 2419

_______________________________________________________________________

                               AMENDMENT
```