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:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Food and Energy Security Act of 2007’’.
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1 (b) TABLEOF CONTENTS.—The table of contents of this

2 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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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 landgrant 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.
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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.
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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.
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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.
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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.
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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.
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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 selfemployment.

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.
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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.

1 SEC. 2. DEFINITION OF SECRETARY.

2 In this Act, the term ‘‘Secretary’’ means the Secretary

3 of Agriculture.

4 TITLE I—PRODUCER INCOME

5 PROTECTION PROGRAMS

6 SEC. 1001. DEFINITIONS.

7 In this title (other than part III of subtitle A):

8 (1) AVERAGE CROP REVENUE PAYMENT.—The

9 term ‘‘average crop revenue payment’’ means a pay10 ment made to producers on a farm under section

11 1401.
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1 (2) BASEACRES.—The term ‘‘base acres’’, with

2 respect to a covered commodity on a farm, means the

3 number of acres established under section 1101 of the

4 Farm Security and Rural Investment Act of 2002 (7

5 U.S.C. 7911) as in effect on the day before the date

6 of enactment of this Act, subject to any adjustment

7 under section 1101 of this Act.

8 (3) COUNTER-CYCLICAL PAYMENT.—The term

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

10 to producers on a farm under section 1104.

11 (4) COVERED COMMODITY.—The term ‘‘covered

12 commodity’’ means wheat, corn, grain sorghum, bar13 ley, oats, upland cotton, long grain rice, medium

14 grain rice, pulse crops, soybeans, and other oilseeds.

15 (5) DIRECT PAYMENT.—The term ‘‘direct pay16 ment’’ means a payment made to producers on a

17 farm under section 1103.

18 (6) EFFECTIVE PRICE.—The term ‘‘effective

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

20 crop year, means the price calculated by the Secretary

21 under section 1104 to determine whether counter-cy22 clical payments are required to be made for that crop

23 year.

24 (7) EXTRA LONG STAPLECOTTON.—The term

25 ‘‘extra long staple cotton’’ means cotton that—
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1 (A) is produced from pure strain varieties

2 of the Barbadense species or any hybrid of the

3 species, or other similar types of extra long sta4 ple cotton, designated by the Secretary, having

5 characteristics needed for various end uses for

6 which United States upland cotton is not suit7 able and grown in irrigated cotton-growing re8 gions of the United States designated by the Sec9 retary or other areas designated by the Secretary

10 as suitable for the production of the varieties or

11 types; and

12 (B) is ginned on a roller-type gin or, if au13 thorized by the Secretary, ginned on another

14 type gin for experimental purposes.

15 (8) LOAN COMMODITY.—The term ‘‘loan com16 modity’’ means wheat, corn, grain sorghum, barley,

17 oats, upland cotton, extra long staple cotton, long

18 grain rice, medium grain rice, soybeans, other oil19 seeds, wool, mohair, honey, dry peas, lentils, small

20 chickpeas, and large chickpeas.

21 (9) MEDIUM GRAIN RICE.—The term ‘‘medium

22 grain rice’’ includes short grain rice.

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

24 means a crop of sunflower seed, rapeseed, canola, saf-
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1 flower, flaxseed, mustard seed, crambe, sesame seed,

2 camelina, or any oilseed designated by the Secretary.

3 (11) PAYMENT ACRES.—The term ‘‘payment

4 acres’’ means, in the case of direct payments and

5 counter-cyclical payments, 85 percent of the base

6 acres of a covered commodity on a farm on which di7 rect payments or counter-cyclical payments are made.

8 (12) PAYMENT YIELD.—The term ‘‘payment

9 yield’’ means the yield established for direct payments

10 and counter-cyclical payments under section 1102 of

11 the Farm Security and Rural Investment Act of 2002

12 (7 U.S.C. 7912) as in effect on the day before the date

13 of enactment of this Act, or under section 1102 of this

14 Act, for a farm for a covered commodity.

15 (13) PRODUCER.—

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

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

18 sharecropper that shares in the risk of producing

19 a crop and is entitled to share in the crop avail20 able for marketing from the farm, or would have

21 shared had the crop been produced.

22 (B) HYBRID SEED.—In determining wheth23 er a grower of hybrid seed is a producer, the Sec24 retary shall—
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1 (i) not take into consideration the ex2 istence of a hybrid seed contract; and

3 (ii) ensure that program requirements

4 do not adversely affect the ability of the

5 grower to receive a payment under this

6 title.

7 (14) PULSECROP.—The term ‘‘pulse crop’’

8 means dry peas, lentils, small chickpeas, and large

9 chickpeas.

10 (15) STATE.—The term ‘‘State’’ means—

11 (A) a State;

12 (B) the District of Columbia;

13 (C) the Commonwealth of Puerto Rico; and

14 (D) any other territory or possession of the

15 United States.

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

17 means the price per bushel, pound, or hundredweight

18 (or other appropriate unit) of a covered commodity

19 used to determine the payment rate for counter-cycli20 cal payments.

21 (17) UNITED STATES.—The term ‘‘United

22 States’’, when used in a geographical sense, means all

23 of the States.
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1 Subtitle A—Traditional Payments

2 and Loans

3 PART I—DIRECT PAYMENTS AND COUNTER4 CYCLICAL PAYMENTS

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

6 (a) ADJUSTMENT OF BASE ACRES.—

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

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

9 for covered commodities for a farm whenever the fol10 lowing circumstances occurs:

11 (A) A conservation reserve contract entered

12 into under section 1231 of the Food Security Act

13 of 1985 (16 U.S.C. 3831) with respect to the

14 farm expires or is voluntarily terminated.

15 (B) Cropland is released from coverage

16 under a conservation reserve contract by the Sec17 retary.

18 (C) The producer has eligible pulse crop or

19 camelina acreage.

20 (D) The producer has eligible oilseed acre21 age as the result of the Secretary designating ad22 ditional oilseeds.

23 (2) SPECIAL CONSERVATION RESERVE ACREAGE

24 PAYMENT RULES.—For the crop year in which a base

25 acres adjustment under subparagraph (A) or (B) of
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1 paragraph (1) is first made, the owner of the farm

2 shall elect to receive either direct payments and

3 counter-cyclical payments with respect to the acreage

4 added to the farm under this subsection or a prorated

5 payment under the conservation reserve contract, but

6 not both.

7 (b) PREVENTION OF EXCESS BASE ACRES.—

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

9 base acres for a farm, together with the acreage de10 scribed in paragraph (2) exceeds the actual cropland

11 acreage of the farm, the Secretary shall reduce the

12 base acres for 1 or more covered commodities for the

13 farm or the base acres for peanuts for the farm so that

14 the sum of the base acres and acreage described in

15 paragraph (2) does not exceed the actual cropland

16 acreage of the farm.

17 (2) OTHER ACREAGE.—For purposes of para18 graph (1), the Secretary shall include the following:

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

20 (B) Any acreage on the farm enrolled in the

21 conservation reserve program or wetlands reserve

22 program under chapter 1 of subtitle D of title

23 XII of the Food Security Act of 1985 (16 U.S.C.

24 3830 et seq.).
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1 (C) Any other acreage on the farm enrolled

2 in a Federal conservation program for which

3 payments are made in exchange for not pro4 ducing an agricultural commodity on the acre5 age.

6 (D) Any eligible pulse crop or camelina

7 acreage, which shall be determined in the same

8 manner as eligible oilseed acreage under section

9 1101(a)(2) of the Farm Security and Rural In10 vestment Act of 2002 (7 U.S.C. 7911(a)(2)).

11 (E) If the Secretary designates additional

12 oilseeds, any eligible oilseed acreage, which shall

13 be determined in the same manner as eligible oil14 seed acreage under section 1101(a)(2) of the

15 Farm Security and Rural Investment Act of

16 2002 (7 U.S.C. 7911(a)(2)).

17 (3) SELECTION OF ACRES.—The Secretary shall

18 give the owner of the farm the opportunity to select

19 the base acres for a covered commodity or the base

20 acres for peanuts for the farm against which the re21 duction required by paragraph (1) will be made.

22 (4) EXCEPTION FOR DOUBLE-CROPPED ACRE23 AGE.—In applying paragraph (1), the Secretary shall

24 make an exception in the case of double cropping, as

25 determined by the Secretary.
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1 (5) COORDINATED APPLICATION OF REQUIRE2 MENTS.—The Secretary shall take into account sec3 tion 1302(b) when applying the requirements of this

4 subsection.

5 (c) REDUCTION IN BASE ACRES.—

6 (1) REDUCTION AT OPTION OF OWNER.—

7 (A) IN GENERAL.—The owner of a farm

8 may reduce, at any time, the base acres for any

9 covered commodity for the farm.

10 (B) EFFECT OF REDUCTION.—A reduction

11 under subparagraph (A) shall be permanent and

12 made in a manner prescribed by the Secretary.

13 (2) REQUIRED ACTION BY SECRETARY.—

14 (A) IN GENERAL.—The Secretary shall sus15 pend all direct, counter-cyclical, and average

16 crop revenue payments on base acres for covered

17 commodities for land that is no longer a farming

18 operation or used in conjunction with a farming

19 operation, as determined by the Secretary.

20 (B) REDUCTION.—The Secretary shall re21 duce base acres for covered commodities in a

22 manner prescribed by the Secretary, for land

23 that—

24 (i) has been developed for commercial

25 or industrial use unless the producer dem-
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1 onstrates that the land remains devoted ex2 clusively to agricultural production; or

3 (ii) has been subdivided and developed

4 for multiple residential units or other non5 farming uses, unless the producer dem6 onstrates that the land remains devoted ex7 clusively to agricultural production.

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

9 to the maximum extent practicable, that payments

10 are received only by producers, the Secretary shall—

11 (A) track each reconstitution of land that is

12 reported by a producer that is covered by para13 graph (2);

14 (B) include in any end-of-the-year review

15 for purposes of payment limitations or other

16 compliance inspections or other actions taken by

17 the Secretary, a review to ensure compliance

18 with paragraph (2); and

19 (C) submit to Congress a report that de20 scribes the results of the actions taken under sub21 paragraphs (A) and (B).

22 SEC. 1102. PAYMENT YIELDS.

23 (a) ESTABLISHMENT AND PURPOSE.—For the purpose

24 of making direct payments and counter-cyclical payments

25 under this subtitle, the Secretary shall provide for the estab-
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1 lishment of a yield for each farm for any designated oilseed,

2 camelina, or eligible pulse crop for which a payment yield

3 was not established under section 1102 of the Farm Secu4 rity and Rural Investment Act of 2002 (7 U.S.C. 7912) in

5 accordance with this section.

6 (b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS,

7 CAMELINA, AND ELIGIBLE PULSE CROPS.—

8 (1) DETERMINATION OF AVERAGE YIELD.—In the

9 case of designated oilseeds, camelina, and eligible

10 pulse crops, the Secretary shall determine the average

11 yield per planted acre for the designated oilseed,

12 camelina, or pulse crop on a farm for the 1998

13 through 2001 crop years, excluding any crop year in

14 which the acreage planted to the designated oilseed,

15 camelina, or pulse crop was zero.

16 (2) ADJUSTMENT FOR PAYMENT YIELD.—

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

18 farm for a designated oilseed, camelina, or eligi19 ble pulse crop shall be equal to the product of the

20 following:

21 (i) The average yield for the designated

22 oilseed, camelina, or pulse crop determined

23 under paragraph (1).

24 (ii) The ratio resulting from dividing

25 the national average yield for the designated
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1 oilseed, camelina, or pulse crop for the 1981

2 through 1985 crops by the national average

3 yield for the designated oilseed, camelina, or

4 pulse crop for the 1998 through 2001 crops.

5 (B) NO NATIONAL AVERAGE YIELD INFOR6 MATION AVAILABLE.—To the extent that national

7 average yield information for a designated oil8 seed, camelina, or pulse crop is not available, the

9 Secretary shall use such information as the Sec10 retary determines to be fair and equitable to es11 tablish a national average yield under this sec12 tion.

13 (3) USEOF PARTIAL COUNTY AVERAGEYIELD.—

14 If the yield per planted acre for a crop of a des15 ignated oilseed, camelina, or pulse crop for a farm for

16 any of the 1998 through 2001 crop years was less

17 than 75 percent of the county yield for that des18 ignated oilseed, camelina, or pulse crop, the Secretary

19 shall assign a yield for that crop year equal to 75

20 percent of the county yield for the purpose of deter21 mining the average under paragraph (1).

22 (4) NO HISTORIC YIELD DATA AVAILABLE.—In

23 the case of establishing yields for designated oilseeds,

24 camelina, and eligible pulse crops, if historic yield

25 data is not available, the Secretary shall use the ratio
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1 for dry peas calculated under paragraph (2)(A)(ii) in

2 determining the yields for designated oilseeds,

3 camelina, and eligible pulse crops, as determined to

4 be fair and equitable by the Secretary.

5 SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

6 (a) PAYMENT REQUIRED.—Except as provided in sec7 tion 1401, for each of the 2008 through 2012 crop years

8 of each covered commodity (other than pulse crops), the Sec9 retary shall make direct payments to producers on farms

10 for which payment yields and base acres are established.

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

12 direct payments with respect to covered commodities for a

13 crop year are as follows:

14 (1) Wheat, $0.52 per bushel.

15 (2) Corn, $0.28 per bushel.

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

17 (4) Barley, $0.24 per bushel.

18 (5) Oats, $0.024 per bushel.

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

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

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

22 (9) Soybeans, $0.44 per bushel.

23 (10) Other oilseeds, $0.80 per hundredweight.

24 (c) PAYMENT AMOUNT.—The amount of the direct pay25 ment to be paid to the producers on a farm for a covered
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1 commodity for a crop year shall be equal to the product

2 of the following:

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

4 (2) The payment acres of the covered commodity

5 on the farm.

6 (3) The payment yield for the covered commodity

7 for the farm.

8 (d) TIMEFOR PAYMENT.—

9 (1) IN GENERAL.—In the case of each of the 2008

10 through 2012 crop years, the Secretary shall make di11 rect payments under this section not earlier than Oc12 tober 1 of the calendar year in which the crop of the

13 covered commodity is harvested.

14 (2) ADVANCEPAYMENTS.—

15 (A) OPTION.—At the option of the producers

16 on a farm, the Secretary shall pay in advance

17 up to 22 percent of the direct payment for a cov18 ered commodity for any of the 2008 through

19 2011 crop years to the producers on a farm.

20 (B) MONTH.—

21 (i) SELECTION.—Subject to clauses (ii)

22 and (iii), the producers on a farm shall se23 lect the month during which the advance

24 payment for a crop year will be made.
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1 (ii) OPTIONS.—The month selected

2 may be any month during the period—

3 (I) beginning on December 1 of

4 the calendar year before the calendar

5 year in which the crop of the covered

6 commodity is harvested; and

7 (II) ending during the month

8 within which the direct payment would

9 otherwise be made.

10 (iii) CHANGE.—The producers on a

11 farm may change the selected month for a

12 subsequent advance payment by providing

13 advance notice to the Secretary.

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

15 producer on a farm that receives an advance direct

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

17 that farm, or the extent to which the producer shares

18 in the risk of producing a crop changes, before the

19 date the remainder of the direct payment is made, the

20 producer shall be responsible for repaying the Sec21 retary the applicable amount of the advance payment,

22 as determined by the Secretary.
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1 SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAY2 MENTS.

3 (a) PAYMENT REQUIRED.—Subject to sections 1107

4 and 1401, for each of the 2008 through 2012 crop years

5 for each covered commodity, the Secretary shall make

6 counter-cyclical payments to producers on farms for which

7 payment yields and base acres are established with respect

8 to the covered commodity if the Secretary determines that

9 the effective price for the covered commodity is less than

10 the target price for the covered commodity.

11 (b) EFFECTIVE PRICE.—

12 (1) COVERED COMMODITIES OTHER THAN

13 RICE.—Except as provided in paragraph (2), for pur14 poses of subsection (a), the effective price for a covered

15 commodity is equal to the sum of the following:

16 (A) The higher of the following:

17 (i) The national average market price

18 received by producers during the 12-month

19 marketing year for the covered commodity,

20 as determined by the Secretary.

21 (ii) The national average loan rate for

22 a marketing assistance loan for the covered

23 commodity in effect for the applicable pe24 riod under part II.

25 (B) The payment rate in effect for the cov26 ered commodity under section 1103 for the pur-
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1 pose of making direct payments with respect to

2 the covered commodity.

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

4 medium grain rice, for purposes of subsection (a), the

5 effective price for each type or class of rice is equal

6 to the sum of the following:

7 (A) The higher of the following:

8 (i) The national average market price

9 received by producers during the 12-month

10 marketing year for the type or class of rice,

11 as determined by the Secretary.

12 (ii) The national average loan rate for

13 a marketing assistance loan for the type or

14 class of rice in effect for the applicable pe15 riod under part II.

16 (B) The payment rate in effect for the type

17 or class of rice under section 1103 for the pur18 pose of making direct payments with respect to

19 the type or class of rice.

20 (c) TARGET PRICE.—

21 (1) IN GENERAL.—For purposes of each of the

22 2008 through 2012 crop years, the target prices for

23 covered commodities shall be as follows:

24 (A) Wheat, $4.20 per bushel.

25 (B) Corn, $2.63 per bushel.
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1 (C) Grain sorghum, $2.63 per bushel.

2 (D) Barley, $2.63 per bushel.

3 (E) Oats, $1.83 per bushel.

4 (F) Upland cotton, $0.7225 per pound.

5 (G) Long grain rice, $10.50 per hundred6 weight.

7 (H) Medium grain rice, $10.50 per hun8 dredweight.

9 (I) Soybeans, $6.00 per bushel.

10 (J) Other oilseeds, $12.74 per hundred11 weight.

12 (K) Dry peas, $8.33 per hundredweight.

13 (L) Lentils, $12.82 per hundredweight.

14 (M) Small chickpeas, $10.36 per hundred15 weight.

16 (N) Large chickpeas, $12.82 per hundred17 weight.

18 (2) SEPARATE TARGET PRICE.—The Secretary

19 may not establish a target price for a covered com20 modity that is different from the target price specified

21 in paragraph (1) for the covered commodity.

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

23 counter-cyclical payments with respect to a covered com24 modity for a crop year shall be equal to the difference

25 between—
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1 (1) the target price for the covered commodity;

2 and

3 (2) the effective price determined under sub4 section (b) for the covered commodity.

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

6 are required to be paid for any of the 2008 through 2012

7 crop years of a covered commodity, the amount of the

8 counter-cyclical payment to be paid to the producers on a

9 farm for that crop year shall be equal to the product of

10 the following:

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

12 (2) The payment acres of the covered commodity

13 on the farm.

14 (3) The payment yield for the covered commodity

15 for the farm.

16 (f) TIMEFOR PAYMENTS.—

17 (1) GENERAL RULE.—If the Secretary deter18 mines under subsection (a) that counter-cyclical pay19 ments are required to be made under this section for

20 the crop of a covered commodity, the Secretary shall

21 make the counter-cyclical payments for the crop be22 ginning October 1, or as soon as practicable there23 after, after the end of the applicable marketing year

24 for the covered commodity.

25 (2) AVAILABILITY OF PARTIAL PAYMENTS.—
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1 (A) IN GENERAL.—If, before the end of the

2 12-month marketing year for a covered com3 modity, the Secretary estimates that counter-cy4 clical payments will be required for the crop of

5 the covered commodity, the Secretary shall give

6 producers on a farm the option to receive partial

7 payments of the counter-cyclical payment pro8 jected to be made for that crop of the covered

9 commodity.

10 (B) ELECTION.—

11 (i) IN GENERAL.—The Secretary shall

12 allow producers on a farm to make an elec13 tion to receive partial payments for a cov14 ered commodity under subparagraph (A) at

15 any time but not later than 30 days prior

16 to the end of the marketing year for that

17 covered commodity.

18 (ii) DATEOF ISSUANCE.—The Sec19 retary shall issue the partial payment after

20 the date of an announcement by the Sec21 retary but not later than 30 days prior to

22 the end of the marketing year.

23 (3) TIMEFOR PARTIAL PAYMENTS.—When the

24 Secretary makes partial payments for a covered com-
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1 modity for any of the 2008 through 2010 crop

2 years—

3 (A) the first partial payment shall be made

4 after completion of the first 180 days of the mar5 keting year for the covered commodity; and

6 (B) the final partial payment shall be made

7 beginning October 1, or as soon as practicable

8 thereafter, after the end of the applicable mar9 keting year for the covered commodity.

10 (4) AMOUNT OF PARTIAL PAYMENT.—

11 (A) FIRST PARTIAL PAYMENT.—For each of

12 the 2008 through 2010 crops of a covered com13 modity, the first partial payment under para14 graph (3) to the producers on a farm may not

15 exceed 40 percent of the projected counter-cyclical

16 payment for the covered commodity for the crop

17 year, as determined by the Secretary.

18 (B) FINAL PAYMENT.—The final payment

19 for a covered commodity for a crop year shall be

20 equal to the difference between—

21 (i) the actual counter-cyclical payment

22 to be made to the producers for the covered

23 commodity for that crop year; and
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1 (ii) the amount of the partial payment

2 made to the producers under subparagraph

3 (A).

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

5 receive a partial payment under this subsection for a

6 crop year shall repay to the Secretary the amount, if

7 any, by which the total of the partial payments exceed

8 the actual counter-cyclical payment to be made for

9 the covered commodity for that crop year.

10 SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDI11 TION OF PROVISION OF DIRECT PAYMENTS

12 AND COUNTER-CYCLICAL PAYMENTS.

13 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—

14 (1) REQUIREMENTS.—Before the producers on a

15 farm may receive direct payments or counter-cyclical

16 payments with respect to the farm, the producers shall

17 agree, during the crop year for which the payments

18 are made and in exchange for the payments—

19 (A) to comply with applicable conservation

20 requirements under subtitle B of title XII of the

21 Food Security Act of 1985 (16 U.S.C. 3811 et

22 seq.);

23 (B) to comply with applicable wetland pro24 tection requirements under subtitle C of title XII

25 of that Act (16 U.S.C. 3821 et seq.);
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1 (C) to comply with the planting flexibility

2 requirements of section 1106;

3 (D) to use the land on the farm, in a quan4 tity equal to the attributable base acres for the

5 farm and any base acres for peanuts for the

6 farm under part III, for an agricultural or con7 serving use, and not for a nonagricultural com8 mercial, industrial, or residential use (including

9 land subdivided and developed into residential

10 units or other nonfarming uses, or that is other11 wise no longer intended to be used in conjunction

12 with a farming operation), as determined by the

13 Secretary; and

14 (E) to effectively control noxious weeds and

15 otherwise maintain the land in accordance with

16 sound agricultural practices, as determined by

17 the Secretary, if the agricultural or conserving

18 use involves the noncultivation of any portion of

19 the land referred to in subparagraph (D).

20 (2) COMPLIANCE.—The Secretary may issue such

21 rules as the Secretary considers necessary to ensure

22 producer compliance with the requirements of para23 graph (1).

24 (3) MODIFICATION.—At the request of the trans25 feree or owner, the Secretary may modify the require-
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1 ments of this subsection if the modifications are con2 sistent with the objectives of this subsection, as deter3 mined by the Secretary.

4 (b) TRANSFER OR CHANGEOF INTEREST IN FARM.—

5 (1) TERMINATION.—

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

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

8 interest of the producers on a farm in base acres

9 for which direct payments or counter-cyclical

10 payments are made shall result in the termi11 nation of the payments with respect to the base

12 acres, unless the transferee or owner of the acre13 age agrees to assume all obligations under sub14 section (a).

15 (B) EFFECTIVE DATE.—The termination

16 shall take effect on the date determined by the

17 Secretary.

18 (2) EXCEPTION.—If a producer entitled to a di19 rect payment or counter-cyclical payment dies, be20 comes incompetent, or is otherwise unable to receive

21 the payment, the Secretary shall make the payment,

22 in accordance with rules issued by the Secretary.

23 (c) ACREAGE REPORTS.—

24 (1) IN GENERAL.—As a condition on the receipt

25 of any benefits under this part or part II, the Sec-
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1 retary shall require producers on a farm to submit to

2 the Secretary annual acreage reports with respect to

3 all cropland on the farm.

4 (2) PENALTIES.—No penalty with respect to ben5 efits under this part or part II shall be assessed

6 against the producers on a farm for an inaccurate

7 acreage report unless the producers on the farm know8 ingly and willfully falsified the acreage report.

9 (d) TENANTS AND SHARECROPPERS.—In carrying out

10 this subtitle, the Secretary shall provide adequate safe11 guards to protect the interests of tenants and sharecroppers.

12 (e) SHARING OF PAYMENTS.—The Secretary shall pro13 vide for the sharing of direct payments and counter-cyclical

14 payments among the producers on a farm on a fair and

15 equitable basis.

16 SEC. 1106. PLANTING FLEXIBILITY.

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

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

19 a farm.

20 (b) LIMITATIONS REGARDING CERTAIN COMMOD21 ITIES.—

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

23 agricultural commodity specified in paragraph (3)

24 shall be prohibited on base acres unless the com25 modity, if planted, is destroyed before harvest.
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1 (2) TREATMENT OF TREES AND OTHER

2 PERENNIALS.—The planting of an agricultural com3 modity specified in paragraph (3) that is produced

4 on a tree or other perennial plant shall be prohibited

5 on base acres.

6 (3) COVERED AGRICULTURAL COMMODITIES.—

7 Paragraphs (1) and (2) apply to the following agri8 cultural commodities:

9 (A) Fruits.

10 (B) Vegetables (other than mung beans and

11 pulse crops).

12 (C) Wild rice.

13 (c) EXCEPTIONS.—Paragraphs (1) and (2) of sub14 section (b) shall not limit the planting of an agricultural

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

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

17 double-cropping of covered commodities with agricul18 tural commodities specified in subsection (b)(3), as

19 determined by the Secretary, in which case the dou20 ble-cropping shall be permitted;

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

22 a history of planting agricultural commodities speci23 fied in subsection (b)(3) on base acres, except that di24 rect payments and counter-cyclical payments shall be
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1 reduced by an acre for each acre planted to such an

2 agricultural commodity; or

3 (3) by the producers on a farm that the Sec4 retary determines has an established planting history

5 of a specific agricultural commodity specified in sub6 section (b)(3), except that—

7 (A) the quantity planted may not exceed the

8 average annual planting history of such agricul9 tural commodity by the producers on the farm in

10 the 1991 through 1995 or 1998 through 2001

11 crop years (excluding any crop year in which no

12 plantings were made), as determined by the Sec13 retary; and

14 (B) direct payments and counter-cyclical

15 payments shall be reduced by an acre for each

16 acre planted to such agricultural commodity.

17 (d) PLANTING TRANSFERABILITY PILOT PROJECT.—

18 (1) PILOT PROJECT AUTHORIZED.—In addition

19 to the exceptions provided in subsection (c), the Sec20 retary shall carry out a pilot project in the State of

21 Indiana under which paragraphs (1) and (2) of sub22 section (b) shall not limit the planting of tomatoes

23 grown for processing on up to 10,000 base acres dur24 ing each of the 2008 through 2009 crop years.
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1 (2) CONTRACT AND MANAGEMENT REQUIRE2 MENTS.—To be eligible for selection to participate in

3 the pilot project, the producers on a farm shall—

4 (A) have entered into a contract to produce

5 tomatoes for processing; and

6 (B) agree to produce the tomatoes as part of

7 a program of crop rotation on the farm to

8 achieve agronomic and pest and disease manage9 ment benefits.

10 (3) TEMPORARY REDUCTION IN BASE ACRES.—

11 The base acres on a farm participating in the pilot

12 program for a crop year shall be reduced by an acre

13 for each acre planted to tomatoes under the pilot pro14 gram.

15 (4) RECALCULATION OF BASE ACRES.—

16 (A) IN GENERAL.—If the Secretary recal17 culates base acres for a farm while the farm is

18 included in the pilot project, the planting and

19 production of tomatoes on base acres for which

20 a temporary reduction was made under this sec21 tion shall be considered to be the same as the

22 planting and production of a covered com23 modity.
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1 (B) PROHIBITION.—Nothing in this para2 graph provides authority for the Secretary to re3 calculate base acres for a farm.

4 SEC. 1107. SPECIAL RULE FOR LONG GRAIN AND MEDIUM

5 GRAIN RICE.

6 (a) CALCULATION METHOD.—Subject to subsections

7 (b) and (c), for the purposes of determining the amount of

8 the counter-cyclical payments to be paid to the producers

9 on a farm for long grain rice and medium grain rice under

10 section 1104, the base acres of rice on the farm shall be

11 apportioned using the 4-year average of the percentages of

12 acreage planted in the applicable State to long grain rice

13 and medium grain rice during the 2003 through 2006 crop

14 years, as determined by the Secretary.

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

16 calculation method described in subsection (a), the Sec17 retary shall provide producers on a farm the opportunity

18 to elect to apportion rice base acres on the farm using the

19 4-year average of—

20 (1) the percentages of acreage planted on the

21 farm to long grain rice and medium grain rice dur22 ing the 2003 through 2006 crop years;

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

24 that the producers were prevented from planting to

25 long grain rice and medium grain rice during the
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1 2003 through 2006 crop years because of drought,

2 flood, other natural disaster, or other condition be3 yond the control of the producers, as determined by

4 the Secretary; and

5 (3) in the case of a crop year for which a pro6 ducer on a farm elected not to plant to long grain

7 and medium grain rice during the 2003 through 2006

8 crop years, the percentages of acreage planted in the

9 applicable State to long grain rice and medium grain

10 rice, as determined by the Secretary.

11 (c) LIMITATION.—In carrying out this section, the Sec12 retary shall use the same total base acres, payment acres,

13 and payment yields established with respect to rice under

14 sections 1101 and 1102 of the Farm Security and Rural

15 Investment Act of 2002 (7 U.S.C. 7911, 7912), as in effect

16 on the day before the date of enactment of this Act, subject

17 to any adjustment under section 1101 of this Act.

18 SEC. 1108. PERIOD OF EFFECTIVENESS.

19 This part shall be effective beginning with the 2008

20 crop year of each covered commodity through the 2012 crop

21 year.
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1 PART II—MARKETING ASSISTANCE LOANS AND

2 LOAN DEFICIENCY PAYMENTS

3 SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING

4 ASSISTANCE LOANS FOR LOAN COMMOD5 ITIES.

6 (a) NONRECOURSE LOANS AVAILABLE.—

7 (1) AVAILABILITY.—Except as provided in sec8 tion 1401, for each of the 2008 through 2012 crops of

9 each loan commodity, the Secretary shall make avail10 able to producers on a farm nonrecourse marketing

11 assistance loans for loan commodities produced on the

12 farm.

13 (2) TERMS AND CONDITIONS.—The marketing as14 sistance loans shall be made under terms and condi15 tions that are prescribed by the Secretary and at the

16 loan rate established under section 1202 for the loan

17 commodity.

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

19 shall be eligible for a marketing assistance loan under sub20 section (a) for any quantity of a loan commodity produced

21 on the farm.

22 (c) TREATMENT OF CERTAIN COMMINGLED COMMOD23 ITIES.—In carrying out this part, the Secretary shall make

24 loans to producers on a farm that would be eligible to obtain

25 a marketing assistance loan, but for the fact the loan com26 modity owned by the producers on the farm is commingled
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1 with loan commodities of other producers in facilities unli2 censed for the storage of agricultural commodities by the

3 Secretary or a State licensing authority, if the producers

4 obtaining the loan agree to immediately redeem the loan

5 collateral in accordance with section 166 of the Federal Ag6 riculture Improvement and Reform Act of 1996 (7 U.S.C.

7 7286).

8 (d) COMPLIANCE WITH CONSERVATION AND WET9 LANDS REQUIREMENTS.—As a condition of the receipt of

10 a marketing assistance loan under subsection (a), the pro11 ducer shall comply with applicable conservation require12 ments under subtitle B of title XII of the Food Security

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

14 protection requirements under subtitle C of title XII of the

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

16 SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING

17 ASSISTANCE LOANS.

18 (a) LOAN RATES.—For each of the 2008 through 2012

19 crop years, the loan rate for a marketing assistance loan

20 under section 1201 for a loan commodity shall be equal to

21 the following:

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

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

24 (3) In the case of grain sorghum, $1.95 per bush25 el.
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1 (4) In the case of barley, $1.95 per bushel.

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

3 (6) In the case of the base quality of upland cot4 ton, $0.52 per pound.

5 (7) In the case of extra long staple cotton,

6 $0.7977 per pound.

7 (8) In the case of long grain rice, $6.50 per hun8 dredweight.

9 (9) in the case of medium grain rice, $6.50 per

10 hundredweight.

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

12 (11) In the case of other oilseeds, $10.09 per hun13 dredweight.

14 (12) In the case of dry peas, $5.40 per hundred15 weight.

16 (13) In the case of lentils, $11.28 per hundred17 weight.

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

19 hundredweight.

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

21 hundredweight.

22 (16) In the case of graded wool, $1.20 per pound.

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

24 pound.

25 (18) In the case of mohair, $4.20 per pound.
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1 (19) In the case of honey, $0.72 per pound.

2 (b) SINGLE COUNTY LOAN RATEFOR OTHER OIL3 SEEDS.—The Secretary shall establish a single loan rate in

4 each county for each kind of other oilseeds described in sub5 section (a)(10).

6 (c) GRADING BASIS FOR MARKETING LOANS FOR

7 PULSE CROPS.—The loan rate for pulse crops—

8 (1) shall be based on a grade not less than grade

9 number 2 or other grade factors, including the fair

10 and average quality of the 1 or more crops in any

11 year; and

12 (2) may be adjusted by the Secretary to reflect

13 the normal market discounts for grades less than

14 number 2 quality.

15 (d) CORN AND GRAIN SORGHUM.—The Secretary

16 shall—

17 (1) establish a single county loan rate for corn

18 and grain sorghum in each county;

19 (2) establish a single national average loan rate

20 for corn and grain sorghum; and

21 (3) determine each county loan rate and the na22 tional average loan rate for corn and grain sorghum,

23 and any and all other program loan rates applicable

24 to corn and grain sorghum, from a data set that in25 cludes prices for both corn and grain sorghum.
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1 SEC. 1203. TERM OF LOANS.

2 (a) TERM OF LOAN.—In the case of each loan com3 modity, a marketing assistance loan under section 1201

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

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

6 made.

7 (b) EXTENSIONS PROHIBITED.—The Secretary may

8 not extend the term of a marketing assistance loan for any

9 loan commodity.

10 SEC. 1204. REPAYMENT OF LOANS.

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

12 producers on a farm to repay a marketing assistance loan

13 under section 1201 for a loan commodity (other than up14 land cotton, long grain rice, medium grain rice, extra long

15 staple cotton, and confectionery and each other kind of sun16 flower seed (other than oil sunflower seed)) at a rate that

17 is the lesser of—

18 (1) the loan rate established for the commodity

19 under section 1202, plus interest (determined in ac20 cordance with section 163 of the Federal Agriculture

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

22 7283)); or

23 (2) a rate that the Secretary determines will—

24 (A) minimize potential loan forfeitures;

25 (B) minimize the accumulation of stocks of

26 the commodity by the Federal Government;
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1 (C) minimize the cost incurred by the Fed2 eral Government in storing the commodity;

3 (D) allow the commodity produced in the

4 United States to be marketed freely and competi5 tively, both domestically and internationally;

6 and

7 (E) minimize discrepancies in marketing

8 loan benefits across State boundaries and across

9 county boundaries.

10 (b) REPAYMENT RATES FOR UPLAND COTTON, LONG

11 GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary

12 shall permit producers to repay a marketing assistance loan

13 under section 1201 for upland cotton, long grain rice, and

14 medium grain rice at a rate that is the lesser of—

15 (1) the loan rate established for the commodity

16 under section 1202, plus interest (determined in ac17 cordance with section 163 of the Federal Agriculture

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

19 7283)); or

20 (2) the prevailing world market price for the

21 commodity (adjusted to United States quality and lo22 cation), as determined by the Secretary.

23 (c) REPAYMENT RATES FOR EXTRA LONG STAPLE

24 COTTON.—Repayment of a marketing assistance loan for

25 extra long staple cotton shall be at the loan rate established
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1 for the commodity under section 1202, plus interest (deter2 mined in accordance with section 163 of the Federal Agri3 culture Improvement and Reform Act of 1996 (7 U.S.C.

4 7283)).

5 (d) PREVAILING WORLD MARKET PRICE.—For pur6 poses of this section and section 1207, the Secretary shall

7 prescribe by regulation—

8 (1) a formula to determine—

9 (A) the prevailing world market price for

10 upland cotton (adjusted to United States quality

11 and location); and

12 (B) the prevailing world market price for

13 long grain rice and medium grain rice, adjusted

14 to United States quality and location; and

15 (2) a mechanism by which the Secretary shall

16 announce periodically the prevailing world market

17 price for upland cotton, long grain rice, and medium

18 grain rice.

19 (e) ADJUSTMENT OF PREVAILING WORLD MARKET

20 PRICEFOR UPLAND COTTON.—

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

22 on the date of enactment of this Act and ending July

23 31, 2013, the Secretary may further adjust the pre24 vailing world market price for upland cotton (ad-
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1 justed to United States quality and location) if the

2 Secretary determines the adjustment is necessary—

3 (A) to minimize potential loan forfeitures;

4 (B) to minimize the accumulation of stocks

5 of upland cotton by the Federal Government;

6 (C) to allow upland cotton produced in the

7 United States to be marketed freely and competi8 tively, both domestically and internationally;

9 (D) to ensure that upland cotton produced

10 in the United States is competitive in world

11 markets; and

12 (E) to ensure an appropriate transition be13 tween current-crop and forward-crop price

14 quotations, except that the Secretary may use

15 forward-crop price quotations prior to July 31 of

16 a marketing year only if—

17 (i) there are insufficient current-crop

18 price quotations; and

19 (ii) the forward-crop price quotation is

20 the lowest such quotation available.

21 (2) GUIDELINES FOR ADDITIONAL ADJUST22 MENTS.—In making adjustments under this sub23 section, the Secretary shall establish a mechanism for

24 determining and announcing the adjustments in
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1 order to avoid undue disruption in the United States

2 market.

3 (f) REPAYMENT RATES FOR CONFECTIONERY AND

4 OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary

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

6 assistance loan under section 1201 for confectionery and

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

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

9 (1) the loan rate established for the commodity

10 under section 1202, plus interest (determined in ac11 cordance with section 163 of the Federal Agriculture

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

13 7283)); or

14 (2) the repayment rate established for oil sun15 flower seed.

16 (g) QUALITY GRADES FOR PULSE CROPS.—The loan

17 repayment rate for pulse crops shall be based on the quality

18 grades for the applicable commodity specified in section

19 1202(c).

20 (h) PAYMENT OF COTTON STORAGE COSTS.—Effective

21 for the 2008 through 2012 crop years, the Secretary shall

22 use the funds of the Commodity Credit Corporation to pro23 vide cotton storage payments in the same manner, and at

24 the same rates, as the Secretary provided those payments

25 for the 2006 crop of cotton.
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1 SEC. 1205. LOAN DEFICIENCY PAYMENTS.

2 (a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.—

3 (1) IN GENERAL.—Except as provided in sub4 section (d) and section 1401, the Secretary may make

5 loan deficiency payments available to producers on a

6 farm that, although eligible to obtain a marketing as7 sistance loan under section 1201 with respect to a

8 loan commodity, agree to forgo obtaining the loan for

9 the commodity in return for loan deficiency payments

10 under this section.

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

12 (A) MARKETING ASSISTANCE LOANS.—Sub13 ject to subparagraph (B), nongraded wool in the

14 form of unshorn pelts and hay and silage derived

15 from a loan commodity are not eligible for a

16 marketing assistance loan under section 1201.

17 (B) LOAN DEFICIENCY PAYMENT.—Effective

18 for the 2008 through 2012 crop years, the Sec19 retary may make loan deficiency payments

20 available under this section to producers on a

21 farm that produce unshorn pelts or hay and si22 lage derived from a loan commodity.

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

24 loan commodity or commodity referred to in subsection

25 (a)(2) shall be computed by multiplying—
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1 (1) the payment rate determined under sub2 section (c) for the commodity; by

3 (2) the quantity of the commodity produced by

4 the eligible producers, excluding any quantity for

5 which the producers obtain a marketing assistance

6 loan under section 1201.

7 (c) PAYMENT RATE.—

8 (1) IN GENERAL.—In the case of a loan com9 modity, the payment rate shall be the amount by

10 which—

11 (A) the loan rate established under section

12 1202 for the loan commodity; exceeds

13 (B) the rate at which a marketing assist14 ance loan for the loan commodity may be repaid

15 under section 1204.

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

17 pelts, the payment rate shall be the amount by

18 which—

19 (A) the loan rate established under section

20 1202 for ungraded wool; exceeds

21 (B) the rate at which a marketing assist22 ance loan for ungraded wool may be repaid

23 under section 1204.
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1 (3) HAY AND SILAGE.—In the case of hay or si2 lage derived from a loan commodity, the payment

3 rate shall be the amount by which—

4 (A) the loan rate established under section

5 1202 for the loan commodity from which the hay

6 or silage is derived; exceeds

7 (B) the rate at which a marketing assist8 ance loan for the loan commodity may be repaid

9 under section 1204.

10 (d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.—

11 This section shall not apply with respect to extra long staple

12 cotton.

13 (e) EFFECTIVE DATEFOR PAYMENT RATE DETER14 MINATION.—

15 (1) LOSS OF BENEFICIAL INTEREST.—The Sec16 retary shall determine the amount of the loan defi17 ciency payment to be made under this section to the

18 producers on a farm with respect to a quantity of a

19 loan commodity or commodity referred to in sub20 section (a)(2) using the payment rate in effect under

21 subsection (c) as soon as practicable after the date on

22 which the producers on the farm lose beneficial inter23 est.

24 (2) ON-FARM CONSUMPTION.—For the quantity

25 of a loan commodity or commodity referred to in sub-
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1 section (a)(2) consumed on a farm, the Secretary

2 shall provide procedures to determine a date on which

3 the producers on the farm lose beneficial interest.

4 (3) APPLICABILITY.—This subsection does not

5 apply for the 2009 through 2012 crop years.

6 SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY7 MENTS FOR GRAZED ACREAGE.

8 (a) ELIGIBLE PRODUCERS.—

9 (1) IN GENERAL.—Except as provided in section

10 1401, effective for the 2008 through 2012 crop years,

11 in the case of a producer that would be eligible for a

12 loan deficiency payment under section 1205 for

13 wheat, barley, or oats, but that elects to use acreage

14 planted to the wheat, barley, or oats for the grazing

15 of livestock, the Secretary shall make a payment to

16 the producer under this section if the producer enters

17 into an agreement with the Secretary to forgo any

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

19 acreage.

20 (2) GRAZING OF TRITICALEACREAGE.—Effective

21 for the 2008 through 2012 crop years, with respect to

22 a producer on a farm that uses acreage planted to

23 triticale for the grazing of livestock, the Secretary

24 shall make a payment to the producer under this sec25 tion if the producer enters into an agreement with the
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1 Secretary to forgo any other harvesting of triticale on

2 that acreage.

3 (b) PAYMENT AMOUNT.—

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

5 made under this section to a producer on a farm de6 scribed in subsection (a)(1) shall be equal to the

7 amount determined by multiplying—

8 (A) the loan deficiency payment rate deter9 mined under section 1205(c) in effect, as of the

10 date of the agreement, for the county in which

11 the farm is located; by

12 (B) the payment quantity determined by

13 multiplying—

14 (i) the quantity of the grazed acreage

15 on the farm with respect to which the pro16 ducer elects to forgo harvesting of wheat,

17 barley, or oats; and

18 (ii) the payment yield in effect for the

19 calculation of direct payments under part I

20 with respect to that loan commodity on the

21 farm or, in the case of a farm without a

22 payment yield for that loan commodity, an

23 appropriate yield established by the Sec24 retary in a manner consistent with section

25 1102(c).
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1 (2) GRAZING OF TRITICALEACREAGE.—The

2 amount of a payment made under this section to a

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

4 shall be equal to the amount determined by

5 multiplying—

6 (A) the loan deficiency payment rate deter7 mined under section 1205(c) in effect for wheat,

8 as of the date of the agreement, for the county in

9 which the farm is located; by

10 (B) the payment quantity determined by

11 multiplying—

12 (i) the quantity of the grazed acreage

13 on the farm with respect to which the pro14 ducer elects to forgo harvesting of triticale;

15 and

16 (ii) the payment yield in effect for the

17 calculation of direct payments under part I

18 with respect to wheat on the farm or, in the

19 case of a farm without a payment yield for

20 wheat, an appropriate yield established by

21 the Secretary in a manner consistent with

22 section 1102(c).

23 (c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.—

24 (1) TIMEAND MANNER.—A payment under this

25 section shall be made at the same time and in the
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1 same manner as loan deficiency payments are made

2 under section 1205.

3 (2) AVAILABILITY.—

4 (A) IN GENERAL.—The Secretary shall es5 tablish an availability period for the payments

6 authorized by this section.

7 (B) CERTAIN COMMODITIES.—In the case of

8 wheat, barley, and oats, the availability period

9 shall be consistent with the availability period

10 for the commodity established by the Secretary

11 for marketing assistance loans authorized by this

12 part.

13 (d) PROHIBITION ON CROP INSURANCE INDEMNITY OR

14 NONINSURED CROP ASSISTANCE.—A 2008 through 2012

15 crop of wheat, barley, oats, or triticale planted on acreage

16 that a producer elects, in the agreement required by sub17 section (a), to use for the grazing of livestock in lieu of any

18 other harvesting of the crop shall not be eligible for an in19 demnity under a policy or plan of insurance authorized

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

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

22 Federal Agriculture Improvement and Reform Act of 1996

23 (7 U.S.C. 7333).
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1 SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UP2 LAND COTTON.

3 (a) SPECIAL IMPORT QUOTA.—

4 (1) DEFINITION OF SPECIAL IMPORT QUOTA.—In

5 this subsection, the term ‘‘special import quota’’

6 means a quantity of imports that is not subject to the

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

8 (2) ESTABLISHMENT.—

9 (A) IN GENERAL.—The President shall

10 carry out an import quota program during the

11 period beginning on the date of the enactment of

12 this Act through July 31, 2013, as provided in

13 this subsection.

14 (B) PROGRAM REQUIREMENTS.—Whenever

15 the Secretary determines and announces that for

16 any consecutive 4-week period, the Friday

17 through Thursday average price quotation for the

18 lowest-priced United States growth, as quoted for

Middling (M) 13 19 ⁄32-inch cotton, delivered to a de20 finable and significant international market, as

21 determined by the Secretary, exceeds the pre22 vailing world market price, there shall imme23 diately be in effect a special import quota.

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

25 week’s consumption of cotton by domestic mills at the
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1 seasonally adjusted average rate of the most recent 3

2 months for which data are available.

3 (4) APPLICATION.—The quota shall apply to up4 land cotton purchased not later than 90 days after the

5 date of the Secretary’s announcement under para6 graph (2) and entered into the United States not later

7 than 180 days after that date.

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

9 established that overlaps any existing quota period if

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

11 quota period may not be established under this sub12 section if a quota period has been established under

13 subsection (b).

14 (6) PREFERENTIAL TARIFF TREATMENT.—The

15 quantity under a special import quota shall be con16 sidered to be an in-quota quantity for purposes of—

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

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

19 (B) section 204 of the Andean Trade Pref20 erence Act (19 U.S.C. 3203);

21 (C) section 503(d) of the Trade Act of 1974

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

23 (D) General Note 3(a)(iv) to the Har24 monized Tariff Schedule.
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1 (7) LIMITATION.—The quantity of cotton entered

2 into the United States during any marketing year

3 under the special import quota established under this

4 subsection may not exceed the equivalent of 10 week’s

5 consumption of upland cotton by domestic mills at

6 the seasonally adjusted average rate of the 3 months

7 immediately preceding the first special import quota

8 established in any marketing year.

9 (b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND

10 COTTON.—

11 (1) DEFINITIONS.—In this subsection:

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

13 using the latest official data of the Bureau of the

14 Census, the Department of Agriculture, and the

15 Department of the Treasury—

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

17 the beginning of the marketing year (ad18 justed to 480-pound bales) in which the

19 quota is established;

20 (ii) production of the current crop; and

21 (iii) imports to the latest date avail22 able during the marketing year.

23 (B) DEMAND.—The term ‘‘demand’’

24 means—
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1 (i) the average seasonally adjusted an2 nual rate of domestic mill consumption of

3 cotton during the most recent 3 months for

4 which data are available; and

5 (ii) the larger of—

6 (I) average exports of upland cot7 ton during the preceding 6 marketing

8 years; or

9 (II) cumulative exports of upland

10 cotton plus outstanding export sales for

11 the marketing year in which the quota

12 is established.

13 (C) LIMITED GLOBAL IMPORT QUOTA.—The

14 term ‘‘limited global import quota’’ means a

15 quantity of imports that is not subject to the

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

17 (2) PROGRAM.—The President shall carry out an

18 import quota program that provides that whenever

19 the Secretary determines and announces that the av20 erage price of the base quality of upland cotton, as de21 termined by the Secretary, in the designated spot

22 markets for a month exceeded 130 percent of the aver23 age price of the quality of cotton in the markets for

24 the preceding 36 months, notwithstanding any other

25 provision of law, there shall immediately be in effect
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1 a limited global import quota subject to the following

2 conditions:

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

4 shall be equal to 21 days of domestic mill con5 sumption of upland cotton at the seasonally ad6 justed average rate of the most recent 3 months

7 for which data are available or as estimated by

8 the Secretary.

9 (B) QUANTITY IF PRIOR QUOTA.—If a quota

10 has been established under this subsection during

11 the preceding 12 months, the quantity of the

12 quota next established under this subsection shall

13 be the smaller of 21 days of domestic mill con14 sumption calculated under subparagraph (A) or

15 the quantity required to increase the supply to

16 130 percent of the demand.

17 (C) PREFERENTIAL TARIFF TREATMENT.—

18 The quantity under a limited global import

19 quota shall be considered to be an in-quota quan20 tity for purposes of—

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

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

23 2703(d));

24 (ii) section 204 of the Andean Trade

25 Preference Act (19 U.S.C. 3203);
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1 (iii) section 503(d) of the Trade Act of

2 1974 (19 U.S.C. 2463(d)); and

3 (iv) General Note 3(a)(iv) to the Har4 monized Tariff Schedule.

5 (D) QUOTA ENTRY PERIOD.—When a quota

6 is established under this subsection, cotton may

7 be entered under the quota during the 90-day pe8 riod beginning on the date the quota is estab9 lished by the Secretary.

10 (3) NO OVERLAP.—Notwithstanding paragraph

11 (2), a quota period may not be established that over12 laps an existing quota period or a special quota pe13 riod established under subsection (a).

14 (c) ECONOMIC ADJUSTMENT ASSISTANCETO USERS

15 OF UPLAND COTTON.—

16 (1) IN GENERAL.—Subject to paragraph (2), the

17 Secretary shall, on a monthly basis, provide economic

18 adjustment assistance to domestic users of upland cot19 ton in the form of payments for all documented use

20 of that upland cotton during the previous monthly pe21 riod regardless of the origin of the upland cotton.

22 (2) VALUEOF ASSISTANCE.—

23 (A) BEGINNING PERIOD.—During the pe24 riod beginning on August 1, 2008, and ending

25 on June 30, 2013, the value of the assistance
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1 provided under paragraph (1) shall be 4 cents

2 per pound.

3 (B) SUBSEQUENT PERIOD.—Effective begin4 ning on July 1, 2013, the value of the assistance

5 provided under paragraph (1) shall be 0 cents

6 per pound.

7 (3) ALLOWABLEPURPOSES.—Economic adjust8 ment assistance under this subsection shall be made

9 available only to domestic users of upland cotton that

10 certify that the assistance shall be used only to ac11 quire, construct, install, modernize, develop, convert,

12 or expand land, plant, buildings, equipment, facili13 ties, or machinery.

14 (4) REVIEW OR AUDIT.—The Secretary may con15 duct such review or audit of the records of a domestic

16 user under this subsection as the Secretary determines

17 necessary to carry out this subsection.

18 (5) IMPROPER USE OF ASSISTANCE.—If the Sec19 retary determines, after a review or audit of the

20 records of the domestic user, that economic adjustment

21 assistance under this subsection was not used for the

22 purposes specified in paragraph (3), the domestic user

23 shall be—
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1 (A) liable to repay the assistance to the Sec2 retary, plus interest, as determined by the Sec3 retary; and

4 (B) ineligible to receive assistance under

5 this subsection for a period of 1 year following

6 the determination of the Secretary.

7 SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA

8 LONG STAPLE COTTON.

9 (a) COMPETITIVENESS PROGRAM.—Notwithstanding

10 any other provision of law, during the period beginning on

11 the date of the enactment of this Act through July 31, 2013,

12 the Secretary shall carry out a program—

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

14 extra long staple cotton produced in the United

15 States;

16 (2) to increase exports of extra long staple cotton

17 produced in the United States; and

18 (3) to ensure that extra long staple cotton pro19 duced in the United States remains competitive in

20 world markets.

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

22 the program, the Secretary shall make payments available

23 under this section whenever—

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

25 market price for the lowest priced competing growth
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1 of extra long staple cotton (adjusted to United States

2 quality and location and for other factors affecting

3 the competitiveness of such cotton), as determined by

4 the Secretary, is below the prevailing United States

5 price for a competing growth of extra long staple cot6 ton; and

7 (2) the lowest priced competing growth of extra

8 long staple cotton (adjusted to United States quality

9 and location and for other factors affecting the com10 petitiveness of such cotton), as determined by the Sec11 retary, is less than 134 percent of the loan rate for

12 extra long staple cotton.

13 (c) ELIGIBLE RECIPIENTS.—The Secretary shall make

14 payments available under this section to domestic users of

15 extra long staple cotton produced in the United States and

16 exporters of extra long staple cotton produced in the United

17 States that enter into an agreement with the Commodity

18 Credit Corporation to participate in the program under

19 this section.

20 (d) PAYMENT AMOUNT.—Payments under this section

21 shall be based on the amount of the difference in the prices

22 referred to in subsection (b)(1) during the fourth week of

23 the consecutive 4-week period multiplied by the amount of

24 documented purchases by domestic users and sales for ex-
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1 port by exporters made in the week following such a con2 secutive 4-week period.

3 SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH

4 MOISTURE FEED GRAINS AND SEED COTTON.

5 (a) HIGH MOISTURE FEED GRAINS.—

6 (1) DEFINITION OF HIGH MOISTURE STATE.—In

7 this subsection, the term ‘‘high moisture state’’ means

8 corn or grain sorghum having a moisture content in

9 excess of Commodity Credit Corporation standards

10 for marketing assistance loans made by the Secretary

11 under section 1201.

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

13 the 2008 through 2012 crops of corn and grain sor14 ghum, the Secretary shall make available recourse

15 loans, as determined by the Secretary, to producers on

16 a farm that—

17 (A) normally harvest all or a portion of

18 their crop of corn or grain sorghum in a high

19 moisture state;

20 (B) present—

21 (i) certified scale tickets from an in22 spected, certified commercial scale, includ23 ing a licensed warehouse, feedlot, feed mill,

24 distillery, or other similar entity approved
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1 by the Secretary, pursuant to regulations

2 issued by the Secretary; or

3 (ii) field or other physical measure4 ments of the standing or stored crop in re5 gions of the United States, as determined by

6 the Secretary, that do not have certified

7 commercial scales from which certified scale

8 tickets may be obtained within reasonable

9 proximity of harvest operation;

10 (C) certify that they were the owners of the

11 feed grain at the time of delivery to, and that the

12 quantity to be placed under loan under this sub13 section was in fact harvested on the farm and de14 livered to, a feedlot, feed mill, or commercial or

15 on-farm high-moisture storage facility, or to a

16 facility maintained by the users of corn and

17 grain sorghum in a high moisture state; and

18 (D) comply with deadlines established by

19 the Secretary for harvesting the corn or grain

20 sorghum and submit applications for loans

21 under this subsection within deadlines estab22 lished by the Secretary.

23 (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—

24 A loan under this subsection shall be made on a

25 quantity of corn or grain sorghum of the same crop
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1 acquired by the producer equivalent to a quantity de2 termined by multiplying—

3 (A) the acreage of the corn or grain sor4 ghum in a high moisture state harvested on the

5 producer’s farm; by

6 (B) the lower of the farm program payment

7 yield used to make counter-cyclical payments

8 under part I or the actual yield on a field, as

9 determined by the Secretary, that is similar to

10 the field from which the corn or grain sorghum

11 was obtained.

12 (b) RECOURSE LOANS AVAILABLEFOR SEED COT13 TON.—For each of the 2008 through 2012 crops of upland

14 cotton and extra long staple cotton, the Secretary shall make

15 available recourse seed cotton loans, as determined by the

16 Secretary, on any production.

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

18 loan made under this section shall be at the loan rate estab19 lished for the commodity by the Secretary, plus interest (de20 termined in accordance with section 163 of the Federal Ag21 riculture Improvement and Reform Act of 1996 (7 U.S.C.

22 7283)).

23 SEC. 1210. ADJUSTMENTS OF LOANS.

24 (a) ADJUSTMENT AUTHORITY.—Subject to subsections

25 (e) and (f), the Secretary may make appropriate adjust-
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1 ments in the loan rates for any loan commodity (other than

2 cotton) for differences in grade, type, quality, location, and

3 other factors.

4 (b) MANNER OF ADJUSTMENT.—The adjustments

5 under subsection (a) shall, to the maximum extent prac6 ticable, be made in such a manner that the average loan

7 level for the commodity will, on the basis of the anticipated

8 incidence of the factors, be equal to the level of support de9 termined in accordance with this subtitle and subtitles B

10 through E.

11 (c) ADJUSTMENT ON COUNTY BASIS.—

12 (1) IN GENERAL.—The Secretary may establish

13 loan rates for a crop for producers in individual

14 counties in a manner that results in the lowest loan

15 rate being 95 percent of the national average loan

16 rate, if those loan rates do not result in an increase

17 in outlays.

18 (2) PROHIBITION.—Adjustments under this sub19 section shall not result in an increase in the national

20 average loan rate for any year.

21 (d) ADJUSTMENT IN LOAN RATEFOR COTTON.—

22 (1) IN GENERAL.—The Secretary may make ap23 propriate adjustments in the loan rate for cotton for

24 differences in quality factors.
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1 (2) REVISIONS TO QUALITY ADJUSTMENTS FOR

2 UPLAND COTTON.—

3 (A) IN GENERAL.—Not later than 180 days

4 after the enactment of this Act and after con5 sultation with the private sector in accordance

6 with paragraph (3), the Secretary shall imple7 ment revisions in the administration of the mar8 keting assistance loan program for upland cotton

9 to more accurately and efficiently reflect market

10 values for upland cotton.

11 (B) MANDATORY REVISIONS.—Revisions

12 under subparagraph (A) shall include—

13 (i) the elimination of warehouse loca14 tion differentials;

15 (ii) the establishment of differentials

16 for the various quality factors and staple

17 lengths of cotton based on a 3-year, weight18 ed moving average of the weighted des19 ignated spot market regions, as determined

20 by regional production;

21 (iii) the elimination of any artificial

22 split in the premium or discount between

23 upland cotton with a 32 or 33 staple length

24 due to micronaire; and
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1 (iv) a mechanism to ensure that no

2 premium or discount is established that ex3 ceeds the premium or discount associated

4 with a leaf grade that is 1 better than the

5 applicable color grade.

6 (C) DISCRETIONARY REVISIONS.—Revisions

7 under subparagraph (A) may include—

8 (i) the use of non-spot market price

9 data, in addition to spot market price data,

10 that would enhance the accuracy of the

11 price information used in determining qual12 ity adjustments under this subsection;

13 (ii) adjustments in the premiums or

14 discounts associated with upland cotton

15 with a staple length of 33 or above due to

16 micronaire with the goal of eliminating any

17 unnecessary artificial splits in the calcula18 tions of the premiums or discounts; and

19 (iii) such other adjustments as the Sec20 retary determines appropriate, after con21 sultations conducted in accordance with

22 paragraph (3).

23 (3) CONSULTATION WITH PRIVATESECTOR.—

24 (A) PRIOR TO REVISION.—Prior to imple25 menting any revisions to the administration of
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1 the marketing assistance loan program for up2 land cotton, the Secretary shall consult with a

3 private sector committee that—

4 (i) is in existence as of the date of en5 actment of this Act;

6 (ii) has a membership that includes

7 representatives of the production, ginning,

8 warehousing, cooperative, and merchan9 dising segments of the United States cotton

10 industry; and

11 (iii) has developed recommendations

12 concerning the revisions.

13 (B) REVIEW OF ADJUSTMENTS.—The Sec14 retary shall consult with the committee described

15 in subparagraph (A) when conducting a review

16 of adjustments in the operation of the loan pro17 gram for upland cotton in accordance with para18 graph (4).

19 (C) INAPPLICABILITY OF FEDERAL ADVI20 SORY COMMITTEE ACT.—The Federal Advisory

21 Committee Act (5 U.S.C. App.) shall not apply

22 to consultations under this subsection.

23 (4) REVIEW OF ADJUSTMENTS.—The Secretary

24 may review the operation of the upland cotton quality

25 adjustments implemented pursuant to this subsection
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1 and may make further revisions to the administration

2 of the loan program for upland cotton, by—

3 (A) revoking or revising any actions taken

4 under paragraph (2)(B); or

5 (B) revoking or revising any actions taken

6 or authorized to be taken under paragraph

7 (2)(C).

8 (5) ADJUSTMENTS IN EFFECT PRIOR TO REVI9 SION.—The quality differences (premiums and dis10 counts for quality factors) applicable to the loan pro11 gram for upland cotton (prior to any revisions in ac12 cordance with this subsection) shall be established by

13 the Secretary by giving equal weight to—

14 (A) loan differences for the preceding crop;

15 and

16 (B) market differences for the crop in the

17 designated United States spot markets.

18 (e) CORN AND GRAIN SORGHUM.—In the case of corn

19 and grain sorghum, the Secretary—

20 (1) shall administer the applicable loan, mar21 keting loan, and related programs using a single loan

22 rate for corn and grain sorghum that is identical in

23 each individual county;

24 (2) shall provide that any adjustment in the

25 corn and grain sorghum loan rate for location shall
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1 be determined and applied on the basis of the com2 bined corn and grain sorghum data set in a manner

3 that any transportation adjustment shall be the same

4 for corn and grain sorghum in each individual coun5 ty; and

6 (3) may provide for adjustments for grade, type,

7 and quality, as appropriate, for the corn or grain sor8 ghum involved in each specific transaction.

9 (f) RICE.—The Secretary shall not make adjustments

10 in the loan rates for long grain rice and medium grain

11 rice, except for differences in grade and quality (including

12 milling yields).

13 PART III—PEANUTS

14 SEC. 1301. DEFINITIONS.

15 In this part:

16 (1) BASE ACRES FOR PEANUTS.—The term ‘‘base

17 acres for peanuts’’ means the number of acres as18 signed to a farm pursuant to section 1302 of the

19 Farm Security and Rural Investment Act of 2002 (7

20 U.S.C. 7952), as in effect on the day before the date

21 of enactment of this Act, subject to any adjustment

22 under section 1302 of this Act.

23 (2) COUNTER-CYCLICAL PAYMENT.—The term

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

25 to producers on a farm under section 1304.
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1 (3) DIRECT PAYMENT.—The term ‘‘direct pay2 ment’’ means a direct payment made to producers on

3 a farm under section 1303.

4 (4) EFFECTIVE PRICE.—The term ‘‘effective

5 price’’ means the price calculated by the Secretary

6 under section 1304 for peanuts to determine whether

7 counter-cyclical payments are required to be made

8 under that section for a crop year.

9 (5) PAYMENT ACRES.—The term ‘‘payment

10 acres’’ means 85 percent of the base acres for peanuts.

11 (6) PAYMENT YIELD.—The term ‘‘payment

12 yield’’ means the yield established for direct payments

13 and counter-cyclical payments under section 1302 of

14 the Farm Security and Rural Investment Act of 2002

15 (7 U.S.C. 7952), as in effect on the day before the

16 date of enactment of this Act, for a farm for peanuts.

17 (7) PRODUCER.—

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

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

20 sharecropper that shares in the risk of producing

21 a crop on a farm and is entitled to share in the

22 crop available for marketing from the farm, or

23 would have shared had the crop been produced.
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1 (B) HYBRID SEED.—In determining wheth2 er a grower of hybrid seed is a producer, the Sec3 retary shall—

4 (i) not take into consideration the ex5 istence of a hybrid seed contract; and

6 (ii) ensure that program requirements

7 do not adversely affect the ability of the

8 grower to receive a payment under this

9 part.

10 (8) STATE.—The term ‘‘State’’ means—

11 (A) a State;

12 (B) the District of Columbia;

13 (C) the Commonwealth of Puerto Rico; and

14 (D) any other territory or possession of the

15 United States.

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

17 means the price per ton of peanuts used to determine

18 the payment rate for counter-cyclical payments.

19 (10) UNITED STATES.—The term ‘‘United

20 States’’, when used in a geographical sense, means all

21 of the States.

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

23 (a) ADJUSTMENT OF BASE ACREAGE FOR PEANUTS.—

24 (1) TREATMENT OF CONSERVATION RESERVE

25 CONTRACT ACREAGE.—The Secretary shall provide for
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1 an adjustment, as appropriate, in the base acres for

2 peanuts for a farm whenever either of the following

3 circumstances occur:

4 (A) A conservation reserve contract entered

5 into under section 1231 of the Food Security Act

6 of 1985 (16 U.S.C. 3831) with respect to the

7 farm expires or is voluntarily terminated.

8 (B) Cropland is released from coverage

9 under a conservation reserve contract by the Sec10 retary.

11 (C) The producer has eligible pulse crop or

12 camelina acreage.

13 (D) The producer has eligible oilseed acre14 age as the result of the Secretary designating ad15 ditional oilseeds.

16 (2) SPECIAL CONSERVATION RESERVE ACREAGE

17 PAYMENT RULES.—For the crop year in which a base

18 acres for peanuts adjustment under paragraph (1) is

19 first made, the owner of the farm shall elect to receive

20 either direct payments and counter-cyclical payments

21 with respect to the acreage added to the farm under

22 this subsection or a prorated payment under the con23 servation reserve contract, but not both.

24 (b) PREVENTION OF EXCESS BASE ACRES FOR PEA25 NUTS.—
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1 (1) REQUIRED REDUCTION.—If the sum of the

2 base acres for peanuts for a farm, together with the

3 acreage described in paragraph (2), exceeds the actual

4 cropland acreage of the farm, the Secretary shall re5 duce the base acres for peanuts for the farm or the

6 base acres for 1 or more covered commodities for the

7 farm so that the sum of the base acres for peanuts

8 and acreage described in paragraph (2) does not ex9 ceed the actual cropland acreage of the farm.

10 (2) OTHER ACREAGE.—For purposes of para11 graph (1), the Secretary shall include the following:

12 (A) Any base acres for the farm for a cov13 ered commodity.

14 (B) Any acreage on the farm enrolled in the

15 conservation reserve program or wetlands reserve

16 program under chapter 1 of subtitle D of title

17 XII of the Food Security Act of 1985 (16 U.S.C.

18 3830 et seq.).

19 (C) Any other acreage on the farm enrolled

20 in a Federal conservation program for which

21 payments are made in exchange for not pro22 ducing an agricultural commodity on the acre23 age.

24 (D) Any eligible pulse crop or camelina

25 acreage, which shall be determined in the same
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1 manner as eligible oilseed acreage under section

2 1101(a)(2) of the Farm Security and Rural In3 vestment Act of 2002 (7 U.S.C. 7911(a)(2)).

4 (E) If the Secretary designates additional

5 oilseeds, any eligible oilseed acreage, which shall

6 be determined in the same manner as eligible oil7 seed acreage under section 1101(a)(2) of the

8 Farm Security and Rural Investment Act of

9 2002 (7 U.S.C. 7911(a)(2)).

10 (3) SELECTION OF ACRES.—The Secretary shall

11 give the owner of the farm the opportunity to select

12 the base acres for peanuts or the base acres for covered

13 commodities against which the reduction required by

14 paragraph (1) will be made.

15 (4) EXCEPTION FOR DOUBLE-CROPPED ACRE16 AGE.—In applying paragraph (1), the Secretary shall

17 make an exception in the case of double cropping, as

18 determined by the Secretary.

19 (5) COORDINATED APPLICATION OF REQUIRE20 MENTS.—The Secretary shall take into account sec21 tion 1101(b) when applying the requirements of this

22 subsection.

23 (c) REDUCTION IN BASE ACRES.—

24 (1) REDUCTION AT OPTION OF OWNER.—
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1 (A) IN GENERAL.—The owner of a farm

2 may reduce, at any time, the base acres for pea3 nuts for the farm.

4 (B) EFFECT OF REDUCTION.—A reduction

5 under subparagraph (A) shall be permanent and

6 made in a manner prescribed by the Secretary.

7 (2) REQUIRED ACTION BY SECRETARY.—

8 (A) IN GENERAL.—The Secretary shall sus9 pend all direct, counter-cyclical, and average

10 crop revenue payments on base acres for peanuts

11 for land that is no longer a farming operation

12 or used in conjunction with a farming operation,

13 as determined by the Secretary.

14 (B) REDUCTION.—The Secretary shall re15 duce base acres for peanuts in a manner pre16 scribed by the Secretary, for land that—

17 (i) has been developed for commercial

18 or industrial use unless the producer dem19 onstrates that the land remains devoted ex20 clusively to agricultural production; or

21 (ii) has been subdivided and developed

22 for multiple residential units or other non23 farming uses, unless the producer dem24 onstrates that the land remains devoted ex25 clusively to agricultural production.
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1 (3) REVIEW AND REPORT.—Each year, to ensure,

2 to the maximum extent practicable, that payments

3 are received only by producers, the Secretary shall—

4 (A) track each reconstitution of land that is

5 reported by a producer that is covered by para6 graph (2);

7 (B) include in any end-of-the-year review

8 for purposes of payment limitations or other

9 compliance inspections or other actions taken by

10 the Secretary, a review to ensure compliance

11 with paragraph (2); and

12 (C) submit to Congress a report that de13 scribes the results of the actions taken under sub14 paragraphs (A) and (B).

15 SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEA16 NUTS.

17 (a) PAYMENT REQUIRED.—Except as provided in sec18 tion 1401, for each of the 2008 through 2012 crop years

19 for peanuts, the Secretary shall make direct payments to

20 the producers on a farm to which a payment yield and base

21 acres for peanuts are established.

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

23 direct payments with respect to peanuts for a crop year

24 shall be equal to $36 per ton.
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1 (c) PAYMENT AMOUNT.—The amount of the direct pay2 ment to be paid to the producers on a farm for the 2008

3 through 2012 crops of peanuts shall be equal to the product

4 of the following:

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

6 (2) The payment acres on the farm.

7 (3) The payment yield for the farm.

8 (d) TIMEFOR PAYMENT.—

9 (1) IN GENERAL.—In the case of each of the 2008

10 through 2012 crop years, the Secretary shall make di11 rect payments under this section not earlier than Oc12 tober 1 of the calendar year in which the crop is har13 vested.

14 (2) ADVANCEPAYMENTS.—

15 (A) OPTION.—At the option of the producers

16 on a farm, the Secretary shall pay in advance

17 up to 22 percent of the direct payment for pea18 nuts for any of the 2008 through 2011 crop years

19 to the producers on a farm.

20 (B) MONTH.—

21 (i) SELECTION.—Subject to clauses (ii)

22 and (iii), the producers on a farm shall se23 lect the month during which the advance

24 payment for a crop year will be made.
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1 (ii) OPTIONS.—The month selected

2 may be any month during the period—

3 (I) beginning on December 1 of

4 the calendar year before the calendar

5 year in which the crop of peanuts is

6 harvested; and

7 (II) ending during the month

8 within which the direct payment would

9 otherwise be made.

10 (iii) CHANGE.—The producers on a

11 farm may change the selected month for a

12 subsequent advance payment by providing

13 advance notice to the Secretary.

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

15 producer on a farm that receives an advance direct

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

17 that farm, or the extent to which the producer shares

18 in the risk of producing a crop changes, before the

19 date the remainder of the direct payment is made, the

20 producer shall be responsible for repaying the Sec21 retary the applicable amount of the advance payment,

22 as determined by the Secretary.
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1 SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAY2 MENTS FOR PEANUTS.

3 (a) PAYMENT REQUIRED.—Except as provided in sec4 tion 1401, for each of the 2008 through 2012 crop years

5 for peanuts, the Secretary shall make counter-cyclical pay6 ments to producers on farms for which payment yields and

7 base acres for peanuts are established if the Secretary deter8 mines that the effective price for peanuts is less than the

9 target price for peanuts.

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

11 (a), the effective price for peanuts is equal to the sum of

12 the following:

13 (1) The higher of the following:

14 (A) The national average market price for

15 peanuts received by producers during the 12-

16 month marketing year for peanuts, as deter17 mined by the Secretary.

18 (B) The national average loan rate for a

19 marketing assistance loan for peanuts in effect

20 for the applicable period under this part.

21 (2) The payment rate in effect for peanuts under

22 section 1303 for the purpose of making direct pay23 ments.

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

25 the target price for peanuts shall be equal to $495 per ton.
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1 (d) PAYMENT RATE.—The payment rate used to make

2 counter-cyclical payments for a crop year shall be equal to

3 the difference between—

4 (1) the target price; and

5 (2) the effective price determined under sub6 section (b).

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

8 are required to be paid for any of the 2008 through 2012

9 crops of peanuts, the amount of the counter-cyclical pay10 ment to be paid to the producers on a farm for that crop

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

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

13 (2) The payment acres on the farm.

14 (3) The payment yield for the farm.

15 (f) TIMEFOR PAYMENTS.—

16 (1) GENERAL RULE.—If the Secretary deter17 mines under subsection (a) that counter-cyclical pay18 ments are required to be made under this section for

19 a crop year, the Secretary shall make the counter-cy20 clical payments for the crop year beginning on Octo21 ber 1 or as soon as practicable after the end of the

22 marketing year.

23 (2) AVAILABILITY OF PARTIAL PAYMENTS.—

24 (A) IN GENERAL.—If, before the end of the

25 12-month marketing year, the Secretary esti-
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1 mates that counter-cyclical payments will be re2 quired under this section for a crop year, the

3 Secretary shall give producers on a farm the op4 tion to receive partial payments of the counter5 cyclical payment projected to be made for the

6 crop.

7 (B) ELECTION.—

8 (i) IN GENERAL.—The Secretary shall

9 allow participants to make an election to

10 receive partial payments under subpara11 graph (A) at any time but not later than 30

12 days prior to the end of the marketing year

13 for the crop.

14 (ii) DATEOF ISSUANCE.—The Sec15 retary shall issue the partial payment after

16 the date of an announcement by the Sec17 retary but not later than 30 days prior to

18 the end of the marketing year.

19 (3) TIMEFOR PARTIAL PAYMENTS.—When the

20 Secretary makes partial payments available for any

21 of the 2008 through 2010 crop years—

22 (A) the first partial payment shall be made

23 after completion of the first 180 days of the mar24 keting year for that crop; and
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1 (B) the final partial payment shall be made

2 on October 1 of the fiscal year starting in the

3 same calendar year as the end of the marketing

4 year for that crop.

5 (4) AMOUNT OF PARTIAL PAYMENTS.—

6 (A) FIRST PARTIAL PAYMENT.—For each of

7 the 2008 through 2010 crop years, the first par8 tial payment under paragraph (3) to the pro9 ducers on a farm may not exceed 40 percent of

10 the projected counter-cyclical payment for the

11 crop year, as determined by the Secretary.

12 (B) FINAL PAYMENT.—The final payment

13 for a crop year shall be equal to the difference

14 between—

15 (i) the actual counter-cyclical payment

16 to be made to the producers for that crop

17 year; and

18 (ii) the amount of the partial payment

19 made to the producers under subparagraph

20 (A).

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

22 receive a partial payment under this subsection for a

23 crop year shall repay to the Secretary the amount, if

24 any, by which the total of the partial payments exceed
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1 the actual counter-cyclical payment to be made for

2 that crop year.

3 SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDI4 TION ON PROVISION OF DIRECT PAYMENTS

5 AND COUNTER-CYCLICAL PAYMENTS.

6 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—

7 (1) REQUIREMENTS.—Before the producers on a

8 farm may receive direct payments or counter-cyclical

9 payments under this part with respect to the farm,

10 the producers shall agree, during the crop year for

11 which the payments are made and in exchange for the

12 payments—

13 (A) to comply with applicable conservation

14 requirements under subtitle B of title XII of the

15 Food Security Act of 1985 (16 U.S.C. 3811 et

16 seq.);

17 (B) to comply with applicable wetland pro18 tection requirements under subtitle C of title XII

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

20 (C) to comply with the planting flexibility

21 requirements of section 1306;

22 (D) to use the land on the farm, in a quan23 tity equal to the attributable base acres for pea24 nuts and any base acres for the farm under part

25 I, for an agricultural or conserving use, and not
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1 for a nonagricultural commercial, industrial, or

2 residential use (including land subdivided and

3 developed into residential units or other non4 farming uses, or that is otherwise no longer in5 tended to be used in conjunction with a farming

6 operation), as determined by the Secretary; and

7 (E) to effectively control noxious weeds and

8 otherwise maintain the land in accordance with

9 sound agricultural practices, as determined by

10 the Secretary, if the agricultural or conserving

11 use involves the noncultivation of any portion of

12 the land referred to in subparagraph (D).

13 (2) COMPLIANCE.—The Secretary may issue such

14 rules as the Secretary considers necessary to ensure

15 producer compliance with the requirements of para16 graph (1).

17 (3) MODIFICATION.—At the request of the trans18 feree or owner, the Secretary may modify the require19 ments of this subsection if the modifications are con20 sistent with the objectives of this subsection, as deter21 mined by the Secretary.

22 (b) TRANSFER OR CHANGEOF INTEREST IN FARM.—

23 (1) TERMINATION.—

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

25 paragraph (2), a transfer of (or change in) the
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1 interest of the producers on a farm in the base

2 acres for peanuts for which direct payments or

3 counter-cyclical payments are made shall result

4 in the termination of the payments with respect

5 to those acres, unless the transferee or owner of

6 the acreage agrees to assume all obligations

7 under subsection (a).

8 (B) EFFECTIVE DATE.—The termination

9 shall take effect on the date determined by the

10 Secretary.

11 (2) EXCEPTION.—If a producer entitled to a di12 rect payment or counter-cyclical payment dies, be13 comes incompetent, or is otherwise unable to receive

14 the payment, the Secretary shall make the payment,

15 in accordance with rules issued by the Secretary.

16 (c) ACREAGE REPORTS.—

17 (1) IN GENERAL.—As a condition on the receipt

18 of any benefits under this part, the Secretary shall re19 quire producers on a farm to submit to the Secretary

20 annual acreage reports with respect to all cropland on

21 the farm.

22 (2) PENALTIES.—No penalty with respect to ben23 efits under this part shall be assessed against the pro24 ducers on a farm for an inaccurate acreage report un-
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1 less the producers on the farm knowingly and will2 fully falsified the acreage report.

3 (d) TENANTS AND SHARECROPPERS.—In carrying out

4 this part, the Secretary shall provide adequate safeguards

5 to protect the interests of tenants and sharecroppers.

6 (e) SHARING OF PAYMENTS.—The Secretary shall pro7 vide for the sharing of direct payments and counter-cyclical

8 payments among the producers on a farm on a fair and

9 equitable basis.

10 SEC. 1306. PLANTING FLEXIBILITY.

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

12 any commodity or crop may be planted on the base acres

13 for peanuts on a farm.

14 (b) LIMITATIONS REGARDING CERTAIN COMMOD15 ITIES.—

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

17 agricultural commodity specified in paragraph (3)

18 shall be prohibited on base acres for peanuts unless

19 the commodity, if planted, is destroyed before harvest.

20 (2) TREATMENT OF TREES AND OTHER

21 PERENNIALS.—The planting of an agricultural com22 modity specified in paragraph (3) that is produced

23 on a tree or other perennial plant shall be prohibited

24 on base acres for peanuts.
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1 (3) COVERED AGRICULTURAL COMMODITIES.—

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

4 (A) Fruits.

5 (B) Vegetables (other than mung beans and

6 pulse crops).

7 (C) Wild rice.

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

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

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

12 double-cropping of peanuts with agricultural com13 modities specified in subsection (b)(3), as determined

14 by the Secretary, in which case the double-cropping

15 shall be permitted;

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

17 a history of planting agricultural commodities speci18 fied in subsection (b)(3) on the base acres for peanuts,

19 except that direct payments and counter-cyclical pay20 ments shall be reduced by an acre for each acre plant21 ed to such an agricultural commodity; or

22 (3) by the producers on a farm that the Sec23 retary determines has an established planting history

24 of a specific agricultural commodity specified in sub25 section (b)(3), except that—
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1 (A) the quantity planted may not exceed the

2 average annual planting history of such agricul3 tural commodity by the producers on the farm in

4 the 1991 through 1995 or 1998 through 2001

5 crop years (excluding any crop year in which no

6 plantings were made), as determined by the Sec7 retary; and

8 (B) direct payments and counter-cyclical

9 payments shall be reduced by an acre for each

10 acre planted to such agricultural commodity.

11 SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DE12 FICIENCY PAYMENTS FOR PEANUTS.

13 (a) NONRECOURSE LOANS AVAILABLE.—

14 (1) AVAILABILITY.—Except as provided in sec15 tion 1401, for each of the 2008 through 2012 crops of

16 peanuts, the Secretary shall make available to pro17 ducers on a farm nonrecourse marketing assistance

18 loans for peanuts produced on the farm.

19 (2) TERMS AND CONDITIONS.—The loans shall be

20 made under terms and conditions that are prescribed

21 by the Secretary and at the loan rate established

22 under subsection (b).

23 (3) ELIGIBLEPRODUCTION.—The producers on a

24 farm shall be eligible for a marketing assistance loan
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1 under this subsection for any quantity of peanuts

2 produced on the farm.

3 (4) TREATMENT OF CERTAIN COMMINGLED COM4 MODITIES.—In carrying out this subsection, the Sec5 retary shall make loans to producers on a farm that

6 would be eligible to obtain a marketing assistance

7 loan, but for the fact the peanuts owned by the pro8 ducers on the farm are commingled with other pea9 nuts in facilities unlicensed for the storage of agricul10 tural commodities by the Secretary or a State licens11 ing authority, if the producers obtaining the loan

12 agree to immediately redeem the loan collateral in ac13 cordance with section 166 of the Federal Agriculture

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

15 7286).

16 (5) OPTIONS FOR OBTAINING LOAN.—A mar17 keting assistance loan under this subsection, and loan

18 deficiency payments under subsection (e), may be ob19 tained at the option of the producers on a farm

20 through—

21 (A) a designated marketing association or

22 marketing cooperative of producers that is ap23 proved by the Secretary; or

24 (B) the Farm Service Agency.
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1 (6) STORAGEOF LOAN PEANUTS.—As a condi2 tion on the Secretary’s approval of an individual or

3 entity to provide storage for peanuts for which a mar4 keting assistance loan is made under this section, the

5 individual or entity shall agree—

6 (A) to provide such storage on a non7 discriminatory basis; and

8 (B) to comply with such additional require9 ments as the Secretary considers appropriate to

10 accomplish the purposes of this section and pro11 mote fairness in the administration of the bene12 fits of this section.

13 (7) STORAGE, HANDLING, AND ASSOCIATED

14 COSTS.—

15 (A) IN GENERAL.—Beginning with the 2007

16 crop of peanuts, to ensure proper storage of pea17 nuts for which a loan is made under this section

18 or section 1307 of the Farm Security and Rural

19 Investment Act of 2002 (7 U.S.C. 7957), the Sec20 retary shall use the funds of the Commodity

21 Credit Corporation to pay handling and other

22 associated costs (other than storage costs) in23 curred at the time at which the peanuts are

24 placed under loan, as determined by the Sec25 retary.
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1 (B) REDEMPTION AND FORFEITURE.—The

2 Secretary shall—

3 (i) require the repayment of handling

4 and other associated costs paid under sub5 paragraph (A) for all peanuts pledged as

6 collateral for a loan that is redeemed under

7 this section or section 1307 of the Farm Se8 curity and Rural Investment Act of 2002 (7

9 U.S.C. 7957); and

10 (ii) pay storage, handling, and other

11 associated costs for all peanuts pledged as

12 collateral that are forfeited under this sec13 tion or section 1307 of that Act.

14 (8) MARKETING.—A marketing association or co15 operative may market peanuts for which a loan is

16 made under this section in any manner that conforms

17 to consumer needs, including the separation of pea18 nuts by type and quality.

19 (b) LOAN RATE.—The loan rate for a marketing assist20 ance loan for peanuts under subsection (a) shall be equal

21 to $355 per ton.

22 (c) TERM OF LOAN.—

23 (1) IN GENERAL.—A marketing assistance loan

24 for peanuts under subsection (a) shall have a term of
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1 9 months beginning on the first day of the first month

2 after the month in which the loan is made.

3 (2) EXTENSIONS PROHIBITED.—The Secretary

4 may not extend the term of a marketing assistance

5 loan for peanuts under subsection (a).

6 (d) REPAYMENT RATE.—The Secretary shall permit

7 producers on a farm to repay a marketing assistance loan

8 for peanuts under subsection (a) at a rate that is the lesser

9 of—

10 (1) the loan rate established for peanuts under

11 subsection (b), plus interest (determined in accord12 ance with section 163 of the Federal Agriculture Im13 provement and Reform Act of 1996 (7 U.S.C. 7283));

14 or

15 (2) a rate that the Secretary determines will—

16 (A) minimize potential loan forfeitures;

17 (B) minimize the accumulation of stocks of

18 peanuts by the Federal Government;

19 (C) minimize the cost incurred by the Fed20 eral Government in storing peanuts; and

21 (D) allow peanuts produced in the United

22 States to be marketed freely and competitively,

23 both domestically and internationally.

24 (e) LOAN DEFICIENCY PAYMENTS.—
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1 (1) AVAILABILITY.—The Secretary may make

2 loan deficiency payments available to producers on a

3 farm that, although eligible to obtain a marketing as4 sistance loan for peanuts under subsection (a), agree

5 to forgo obtaining the loan for the peanuts in return

6 for loan deficiency payments under this subsection.

7 (2) COMPUTATION.—A loan deficiency payment

8 under this subsection shall be computed by

9 multiplying—

10 (A) the payment rate determined under

11 paragraph (3) for peanuts; by

12 (B) the quantity of the peanuts produced by

13 the producers, excluding any quantity for which

14 the producers obtain a marketing assistance loan

15 under subsection (a).

16 (3) PAYMENT RATE.—For purposes of this sub17 section, the payment rate shall be the amount by

18 which—

19 (A) the loan rate established under sub20 section (b); exceeds

21 (B) the rate at which a loan may be repaid

22 under subsection (d).

23 (4) EFFECTIVEDATEFOR PAYMENT RATEDE24 TERMINATION.—
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1 (A) IN GENERAL.—The Secretary shall de2 termine the amount of the loan deficiency pay3 ment to be made under this subsection to the

4 producers on a farm with respect to a quantity

5 of peanuts using the payment rate in effect

6 under paragraph (3) as soon as practicable after

7 the date on which the producers on the farm lose

8 beneficial interest.

9 (B) APPLICABILITY.—This paragraph does

10 not apply for the 2009 through 2012 crop years.

11 (f) COMPLIANCE WITH CONSERVATION AND WETLANDS

12 REQUIREMENTS.—As a condition of the receipt of a mar13 keting assistance loan under subsection (a), the producer

14 shall comply with applicable conservation requirements

15 under subtitle B of title XII of the Food Security Act of

16 1985 (16 U.S.C. 3811 et seq.) and applicable wetland pro17 tection requirements under subtitle C of title XII of that

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

19 (g) REIMBURSABLE AGREEMENTS AND PAYMENT OF

20 ADMINISTRATIVE EXPENSES.—The Secretary may imple21 ment any reimbursable agreements or provide for the pay22 ment of administrative expenses under this part only in

23 a manner that is consistent with such activities in regard

24 to other commodities.
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1 SEC. 1308. ADJUSTMENTS OF LOANS.

2 (a) ADJUSTMENT AUTHORITY.—The Secretary may

3 make appropriate adjustments in the loan rates for peanuts

4 for differences in grade, type, quality, location, and other

5 factors.

6 (b) MANNER OF ADJUSTMENT.—The adjustments

7 under subsection (a) shall, to the maximum extent prac8 ticable, be made in such a manner that the average loan

9 level for peanuts will, on the basis of the anticipated inci10 dence of the factors, be equal to the level of support deter11 mined in accordance with this subtitle and subtitles B

12 through E.

13 (c) ADJUSTMENT ON COUNTY BASIS.—

14 (1) IN GENERAL.—The Secretary may establish

15 loan rates for a crop of peanuts for producers in indi16 vidual counties in a manner that results in the lowest

17 loan rate being 95 percent of the national average

18 loan rate, if those loan rates do not result in an in19 crease in outlays.

20 (2) PROHIBITION.—Adjustments under this sub21 section shall not result in an increase in the national

22 average loan rate for any year.
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1 Subtitle B—Average Crop Revenue

2 Program

3 SEC. 1401. AVAILABILITY OF AVERAGE CROP REVENUE PAY4 MENTS.

5 (a) AVAILABILITY AND ELECTION OF ALTERNATIVE

6 APPROACH.—

7 (1) AVAILABILITY OF AVERAGE CROP REVENUE

8 PAYMENTS.—As an alternative to receiving payments

9 or loans under subtitle A with respect to all covered

10 commodities and peanuts on a farm (other than loans

11 for graded and nongraded wool, mohair, and honey),

12 the Secretary shall give the producers on the farm an

13 opportunity to make a 1-time election to instead re14 ceive average crop revenue payments under this sec15 tion for—

16 (A) the 2010, 2011, and 2012 crop years;

17 (B) the 2011 and 2012 crop years; or

18 (C) the 2012 crop year.

19 (2) ELECTION; TIME FOR ELECTION.—

20 (A) IN GENERAL.—The Secretary shall pro21 vide notice to producers regarding the oppor22 tunity to make the election described in para23 graph (1).

24 (B) NOTICE REQUIREMENTS.—The notice

25 shall include—
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1 (i) notice of the opportunity of the pro2 ducers on a farm to make the election; and

3 (ii) information regarding the manner

4 in which the election must be made and the

5 time periods and manner in which notice of

6 the election must be submitted to the Sec7 retary.

8 (3) ELECTION DEADLINE.—Within the time pe9 riod and in the manner prescribed pursuant to para10 graph (2), the producers on a farm shall submit to the

11 Secretary notice of the election made under para12 graph (1).

13 (4) EFFECT OF FAILURE TO MAKE ELECTION.—

14 If the producers on a farm fail to make the election

15 under paragraph (1) or fail to timely notify the Sec16 retary of the election made, as required by paragraph

17 (3), the producers shall be deemed to have made the

18 election to receive payments and loans under subtitle

19 A for all covered commodities and peanuts on the

20 farm for the applicable crop year.

21 (b) PAYMENTS REQUIRED.—

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

23 farm who make the election under subsection (a) to

24 receive average crop revenue payments, for any of the

25 2010 through 2012 crop years for all covered commod-
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1 ities and peanuts, the Secretary shall make average

2 crop revenue payments available to the producers on

3 a farm in accordance with this subsection.

4 (2) FIXED PAYMENT COMPONENT.—Subject to

5 paragraph (3), in the case of producers on a farm de6 scribed in paragraph (1), the Secretary shall make

7 average crop revenue payments available to the pro8 ducers on a farm for each crop year in an amount

9 equal to not less than the product obtained by

10 multiplying—

11 (A) $15 per acre; and

12 (B) 100 percent of the quantity of base

13 acres on the farm for all covered commodities

14 and peanuts (as adjusted in accordance with the

15 terms and conditions of section 1101 or 1302, as

16 determined by the Secretary).

17 (3) REVENUE COMPONENT.—The Secretary shall

18 increase the amount of the average crop revenue pay19 ments available to the producers on a farm in a State

20 for a crop year if—

21 (A) the actual State revenue for the crop

22 year for the covered commodity or peanuts in the

23 State determined under subsection (c); is less

24 than
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1 (B) the average crop revenue program guar2 antee for the crop year for the covered com3 modity or peanuts in the State determined under

4 subsection (d).

5 (4) TIMEFOR PAYMENTS.—In the case of each of

6 the 2010 through 2012 crop years, the Secretary shall

7 make average crop revenue payments beginning Octo8 ber 1, or as soon as practicable thereafter, after the

9 end of the applicable marketing year for the covered

10 commodity or peanuts.

11 (c) ACTUAL STATE REVENUE.—

12 (1) IN GENERAL.—For purposes of subsection

13 (b)(3)(A), the amount of the actual State revenue for

14 a crop year of a covered commodity shall equal the

15 product obtained by multiplying—

16 (A) the actual State yield for each planted

17 acre for the crop year for the covered commodity

18 or peanuts determined under paragraph (2); and

19 (B) the average crop revenue program har20 vest price for the crop year for the covered com21 modity or peanuts determined under paragraph

22 (3).

23 (2) ACTUAL STATEYIELD.—For purposes of

24 paragraph (1)(A) and subsection (d)(1)(A), the actual

25 State yield for each planted acre for a crop year for
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1 a covered commodity or peanuts in a State shall

2 equal (as determined by the Secretary)—

3 (A) the quantity of the covered commodity

4 or peanuts that is produced in the State during

5 the crop year; divided by

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

7 the covered commodity or peanuts in the State

8 during the crop year.

9 (3) AVERAGE CROP REVENUE PROGRAM HARVEST

10 PRICE.—

11 (A) IN GENERAL.—For purposes of para12 graph (1)(B), subject to subparagraph (B), the

13 average crop revenue program harvest price for

14 a crop year for a covered commodity or peanuts

15 in a State shall equal the harvest price that is

16 used to calculate revenue under revenue coverage

17 plans that are offered for the crop year for the

18 covered commodity or peanuts in the State under

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

20 et seq.).

21 (B) ASSIGNED PRICE.—If the Secretary

22 cannot establish the harvest price for a crop year

23 for a covered commodity or peanuts in a State

24 in accordance with subparagraph (A), the Sec25 retary shall assign a price for the covered com-
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1 modity or peanuts in the State on the basis of

2 comparable price data.

3 (d) AVERAGE CROP REVENUE PROGRAM GUAR4 ANTEE.—

5 (1) IN GENERAL.—The average crop revenue pro6 gram guarantee for a crop year for a covered com7 modity or peanuts in a State shall equal 90 percent

8 of the product obtained by multiplying—

9 (A) the expected State yield for each planted

10 acre for the crop year for the covered commodity

11 or peanuts in a State determined under para12 graph (2); and

13 (B) the average crop revenue program pre14 planting price for the crop year for the covered

15 commodity or peanuts determined under para16 graph (3).

17 (2) EXPECTED STATE YIELD.—

18 (A) IN GENERAL.—For purposes of para19 graph (1)(A), subject to subparagraph (B), the

20 expected State yield for each planted acre for a

21 crop year for a covered commodity or peanuts in

22 a State shall equal the projected yield for the

23 crop year for the covered commodity or peanuts

24 in the State, based on a linear regression trend

25 of the yield per acre planted to the covered com-
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1 modity or peanuts in the State during the 1980

2 through 2006 period using National Agricultural

3 Statistics Service data.

4 (B) ASSIGNED YIELD.—If the Secretary

5 cannot establish the expected State yield for each

6 planted acre for a crop year for a covered com7 modity or peanuts in a State in accordance with

8 subparagraph (A) or if the linear regression

9 trend of the yield per acre planted to the covered

10 commodity or peanuts in the State (as deter11 mined under subparagraph (A)) is negative, the

12 Secretary shall assign an expected State yield for

13 each planted acre for the crop year for the cov14 ered commodity or peanuts in the State on the

15 basis of expected State yields for planted acres

16 for the crop year for the covered commodity or

17 peanuts in similar States.

18 (3) AVERAGE CROP REVENUE PROGRAM PRE19 PLANTING PRICE.—

20 (A) IN GENERAL.—For purposes of para21 graph (1)(B), subject to subparagraphs (B) and

22 (C), the average crop revenue program pre-plant23 ing price for a crop year for a covered com24 modity or peanuts in a State shall equal the av25 erage price that is used to calculate revenue
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1 under revenue coverage plans that are offered for

2 the covered commodity in the State under the

3 Federal Crop Insurance Act (7 U.S.C. 1501 et

4 seq.) for the crop year and the preceding 2 crop

5 years.

6 (B) ASSIGNED PRICE.—If the Secretary

7 cannot establish the pre-planting price for a crop

8 year for a covered commodity or peanuts in a

9 State in accordance with subparagraph (A), the

10 Secretary shall assign a price for the covered

11 commodity or peanuts in the State on the basis

12 of comparable price data.

13 (C) MINIMUM AND MAXIMUM PRICE.—In the

14 case of each of the 2011 through 2012 crop years,

15 the average crop revenue program pre-planting

16 price for a crop year for a covered commodity or

17 peanuts under subparagraph (A) shall not de18 crease or increase more than 15 percent from the

19 pre-planting price for the preceding year.

20 (e) PAYMENT AMOUNT.—If average crop revenue pay21 ments are required to be paid for any of the 2010 through

22 2012 crop years of a covered commodity or peanuts under

23 subsection (b)(3), in addition to the amount payable under

24 subsection (b)(2), the amount of the average crop revenue

25 payment to be paid to the producers on the farm for the
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1 crop year under this section shall be increased by an

2 amount equal to the product obtained by multiplying—

3 (1) the difference between—

4 (A) the average crop revenue program guar5 antee for the crop year for the covered com6 modity or peanuts in the State determined under

7 subsection (d); and

8 (B) the actual State revenue from the crop

9 year for the covered commodity or peanuts in the

10 State determined under subsection (c);

11 (2) 85 percent of the quantity of base acres on

12 the farm for the covered commodity or peanuts (as

13 adjusted in accordance with the terms and conditions

14 of section 1101 or 1302, as determined by the Sec15 retary);

16 (3) the quotient obtained by dividing—

17 (A)(i) the yield used to calculate crop insur18 ance coverage for the covered commodity or pea19 nuts on the farm under the Federal Crop Insur20 ance Act (7 U.S.C. 1501 et seq.) (commonly re21 ferred to as ‘‘actual production history’’); or

22 (ii) if actual production history for the cov23 ered commodity or peanuts on the farm is not

24 available, a comparable yield as determined by

25 the Secretary; by
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1 (B) the expected State yield for the crop

2 year, as determined under subsection (d)(2); and

3 (4) 90 percent.

4 (f) RECOURSE LOANS.—For each of the 2010 through

5 2012 crops of a covered commodity or peanuts, the Sec6 retary shall make available to producers on a farm who

7 elect to receive payments under this section recourse loans,

8 as determined by the Secretary, on any production of the

9 covered commodity.

10 SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AV11 ERAGE CROP REVENUE PAYMENTS.

12 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—

13 (1) REQUIREMENTS.—Before the producers on a

14 farm may receive average crop revenue payments

15 with respect to the farm, the producers shall agree,

16 and in the case of subparagraph (C), the Farm Serv17 ice Agency shall certify, during the crop year for

18 which the payments are made and in exchange for the

19 payments—

20 (A) to comply with applicable conservation

21 requirements under subtitle B of title XII of the

22 Food Security Act of 1985 (16 U.S.C. 3811 et

23 seq.);
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1 (B) to comply with applicable wetland pro2 tection requirements under subtitle C of title XII

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

4 (C) that the individuals or entities receiving

5 payments are producers;

6 (D) to use the land on the farm, in a quan7 tity equal to the attributable base acres for the

8 farm and any base acres for peanuts for the

9 farm under part III of subtitle A, for an agricul10 tural or conserving use, and not for a non11 agricultural commercial, industrial, or residen12 tial use (including land subdivided and devel13 oped into residential units or other nonfarming

14 uses, or that is otherwise no longer intended to

15 be used in conjunction with a farming oper16 ation), as determined by the Secretary; and

17 (E) to effectively control noxious weeds and

18 otherwise maintain the land in accordance with

19 sound agricultural practices, as determined by

20 the Secretary, if the agricultural or conserving

21 use involves the noncultivation of any portion of

22 the land referred to in subparagraph (D).

23 (2) COMPLIANCE.—The Secretary may issue such

24 rules as the Secretary considers necessary to ensure
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1 producer compliance with the requirements of para2 graph (1).

3 (3) MODIFICATION.—At the request of the trans4 feree or owner, the Secretary may modify the require5 ments of this subsection if the modifications are con6 sistent with the objectives of this subsection, as deter7 mined by the Secretary.

8 (b) TRANSFER OR CHANGEOF INTEREST IN FARM.—

9 (1) TERMINATION.—

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

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

12 interest of the producers on a farm for which av13 erage crop revenue payments are made shall re14 sult in the termination of the payments, unless

15 the transferee or owner of the farm agrees to as16 sume all obligations under subsection (a).

17 (B) EFFECTIVE DATE.—The termination

18 shall take effect on the date determined by the

19 Secretary.

20 (2) EXCEPTION.—If a producer entitled to an

21 average crop revenue payment dies, becomes incom22 petent, or is otherwise unable to receive the payment,

23 the Secretary shall make the payment, in accordance

24 with rules issued by the Secretary.

25 (c) ACREAGE REPORTS.—
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1 (1) IN GENERAL.—As a condition on the receipt

2 of any benefits under this subtitle, the Secretary shall

3 require producers on a farm to submit to the Sec4 retary annual acreage reports with respect to all

5 cropland on the farm.

6 (2) PENALTIES.—No penalty with respect to ben7 efits under subtitle shall be assessed against the pro8 ducers on a farm for an inaccurate acreage report un9 less the producers on the farm knowingly and will10 fully falsified the acreage report.

11 (d) TENANTS AND SHARECROPPERS.—In carrying out

12 this subtitle, the Secretary shall provide adequate safe13 guards to protect the interests of tenants and sharecroppers.

14 (e) SHARING OF PAYMENTS.—The Secretary shall pro15 vide for the sharing of average crop revenue payments

16 among the producers on a farm on a fair and equitable

17 basis.

18 (f) AUDIT AND REPORT.—Each year, to ensure, to the

19 maximum extent practicable, that payments are received

20 only by producers, the Secretary shall—

21 (1) conduct an audit of average crop revenue

22 payments; and

23 (2) submit to Congress a report that describes the

24 results of that audit.
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1 SEC. 1403. PLANTING FLEXIBILITY.

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

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

4 a farm for which the producers on a farm elect to receive

5 average crop revenue payments (referred to in this section

6 as ‘‘base acres’’).

7 (b) LIMITATIONS REGARDING CERTAIN COMMOD8 ITIES.—

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

10 agricultural commodity specified in paragraph (3)

11 shall be prohibited on base acres unless the com12 modity, if planted, is destroyed before harvest.

13 (2) TREATMENT OF TREES AND OTHER

14 PERENNIALS.—The planting of an agricultural com15 modity specified in paragraph (3) that is produced

16 on a tree or other perennial plant shall be prohibited

17 on base acres.

18 (3) COVERED AGRICULTURAL COMMODITIES.—

19 Paragraphs (1) and (2) apply to the following agri20 cultural commodities:

21 (A) Fruits.

22 (B) Vegetables (other than mung beans and

23 pulse crops).

24 (C) Wild rice.
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1 (c) EXCEPTIONS.—Paragraphs (1) and (2) of sub2 section (b) shall not limit the planting of an agricultural

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

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

5 double-cropping of covered commodities with agricul6 tural commodities specified in subsection (b)(3), as

7 determined by the Secretary, in which case the dou8 ble-cropping shall be permitted;

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

10 a history of planting agricultural commodities speci11 fied in subsection (b)(3) on base acres, except that av12 erage crop revenue payments shall be reduced by an

13 acre for each acre planted to such an agricultural

14 commodity; or

15 (3) by the producers on a farm that the Sec16 retary determines has an established planting history

17 of a specific agricultural commodity specified in sub18 section (b)(3), except that—

19 (A) the quantity planted may not exceed the

20 average annual planting history of such agricul21 tural commodity by the producers on the farm in

22 the 1991 through 1995 or 1998 through 2001

23 crop years (excluding any crop year in which no

24 plantings were made), as determined by the Sec25 retary; and
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1 (B) average crop revenue payments shall be

2 reduced by an acre for each acre planted to such

3 agricultural commodity.

4 (d) PLANTING TRANSFERABILITY PILOT PROJECT.—

5 Producers on a farm that elect to receive average crop rev6 enue payments shall be eligible to participate in the pilot

7 program established under section 1106(d) under the same

8 terms and conditions as producers that receive direct pay9 ments and counter-cyclical payments.

10 (e) PRODUCTION OF FRUITS OR VEGETABLES FOR

11 PROCESSING.—

12 (1) IN GENERAL.—Subject to paragraphs (2)

13 through (4), effective beginning with the 2010 crop

14 years, producers on a farm that elect to receive aver15 age crop revenue payments, with the consent of the

16 owner of and any other producers on the farm, may

17 reduce the base acres for a covered commodity for the

18 farm if the reduced acres are used for the planting

19 and production of fruits or vegetables for processing.

20 (2) REVERSION TO BASE ACRES FOR COVERED

21 COMMODITY.—Any reduced acres on a farm devoted to

22 the planting and production of fruits or vegetables

23 during a crop year under paragraph (1) shall be in24 cluded in base acres for the covered commodity for the

25 subsequent crop year, unless the producers on the
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1 farm make the election described in paragraph (1) for

2 the subsequent crop year.

3 (3) RECALCULATION OF BASE ACRES.—

4 (A) IN GENERAL.—Subject to subparagraph

5 (B), if the Secretary recalculates base acres for

6 a farm, the planting and production of fruits or

7 vegetables for processing under paragraph (1)

8 shall be considered to be the same as the plant9 ing, prevented planting, or production of a cov10 ered commodity.

11 (B) AUTHORITY.—Nothing in this sub12 section provides authority for the Secretary to

13 recalculate base acres for a farm covered by this

14 subsection other than as provided in this sub15 section.

16 (4) LIMITATIONS.—

17 (A) IN GENERAL.—This subsection applies

18 in land located in each of the States of Illinois,

19 Indiana, Iowa, Michigan, Minnesota, Ohio, and

20 Wisconsin.

21 (B) ACREAGE LIMIT.—The total number of

22 base acres that may be reduced in any State

23 under this subsection shall not exceed 10,000.
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1 Subtitle C—Sugar

2 SEC. 1501. SUGAR PROGRAM.

3 Section 156 of the Federal Agriculture Improvement

4 and Reform Act of 1996 (7 U.S.C. 7272) is amended to

5 read as follows:

6 ‘‘SEC. 156. SUGAR PROGRAM.

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

8 available to processors of domestically grown sugarcane at

9 a rate equal to—

10 ‘‘(1) 18.00 cents per pound for raw cane sugar

11 for the 2008 crop year;

12 ‘‘(2) 18.25 cents per pound for raw cane sugar

13 for the 2009 crop year;

14 ‘‘(3) 18.50 cents per pound for raw cane sugar

15 for the 2010 crop year;

16 ‘‘(4) 18.75 cents per pound for raw cane sugar

17 for the 2011 crop year; and

18 ‘‘(5) 19.00 cents per pound for raw cane sugar

19 for the 2012 crop year.

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

21 available to processors of domestically grown sugar beets at

22 a rate per pound for refined beet sugar that is equal to

23 128.5 percent of the loan rate per pound of raw cane sugar

24 for the applicable crop year under subsection (a).

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

2 during any fiscal year shall be made available not

3 earlier than the beginning of the fiscal year and shall

4 mature at the earlier of—

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

7 month in which the loan is made; or

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

9 loan is made.

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

11 loan made under this section in the last 3 months of

12 a fiscal year, the processor may repledge the sugar as

13 collateral for a second loan in the subsequent fiscal

14 year, except that the second loan shall—

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

16 the time the first loan was made; and

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

18 of time that the first loan was in effect.

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

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

21 carry out this section through the use of nonrecourse

22 loans.

23 ‘‘(2) PROCESSOR ASSURANCES.—

24 ‘‘(A) IN GENERAL.—The Secretary shall ob25 tain from each processor that receives a loan
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1 under this section such assurances as the Sec2 retary considers adequate to ensure that the

3 processor will provide payments to producers

4 that are proportional to the value of the loan re5 ceived by the processor for the sugar beets and

6 sugarcane delivered by producers to the proc7 essor.

8 ‘‘(B) MINIMUM PAYMENTS.—

9 ‘‘(i) IN GENERAL.—Subject to clause

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

12 this paragraph.

13 ‘‘(ii) LIMITATION.—In the case of

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

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

19 ‘‘(3) ADMINISTRATION.—The Secretary may not

20 impose or enforce any prenotification requirement, or

21 similar administrative requirement not otherwise in

22 effect on May 13, 2002, that has the effect of pre23 venting a processor from electing to forfeit the loan

24 collateral (of an acceptable grade and quality) on the

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

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

3 SYRUPS.—In this subsection, the term ‘in-process sug4 ars and syrups’ does not include raw sugar, liquid

5 sugar, invert sugar, invert syrup, or other finished

6 product that is otherwise eligible for a loan under

7 subsection (a) or (b).

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

9 nonrecourse loans available to processors of a crop of

10 domestically grown sugarcane and sugar beets for in11 process sugars and syrups derived from the crop.

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

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

14 sugar or refined beet sugar, as determined by the Sec15 retary on the basis of the source material for the in16 process sugars and syrups.

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

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

19 forfeiture of in-process sugars and syrups serving

20 as collateral for a loan under paragraph (2), the

21 processor shall, within such reasonable time pe22 riod as the Secretary may prescribe and at no

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

25 cane sugar or refined beet sugar of acceptable
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1 grade and quality for sugars eligible for loans

2 under subsection (a) or (b).

3 ‘‘(B) TRANSFER TO CORPORATION.—Once

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

6 the processor shall transfer the sugar to the Com7 modity Credit Corporation.

8 ‘‘(C) PAYMENT TO PROCESSOR.—On trans9 fer of the sugar, the Secretary shall make a pay10 ment to the processor in an amount equal to the

11 amount obtained by multiplying—

12 ‘‘(i) the difference between—

13 ‘‘(I) the loan rate for raw cane

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

16 ‘‘(II) the loan rate the processor

17 received under paragraph (3); by

18 ‘‘(ii) the quantity of sugar transferred

19 to the Secretary.

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

21 not forfeit the collateral as described in paragraph

22 (4), but instead further processes the in-process sugars

23 and syrups into raw cane sugar or refined beet sugar

24 and repays the loan on the in-process sugars and syr25 ups, the processor may obtain a loan under subsection
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1 (a) or (b) for the raw cane sugar or refined beet

2 sugar, as appropriate.

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

4 under this subsection for a quantity of in-process sug5 ars and syrups, when combined with the term of a

6 loan made with respect to the raw cane sugar or re7 fined beet sugar derived from the in-process sugars

8 and syrups, may not exceed 9 months, consistent with

9 subsection (c).

10 ‘‘(f) FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO11 ENERGY PRODUCERS.—

12 ‘‘(1) DEFINITIONS.—In this subsection:

13 ‘‘(A) BIOENERGY.—The term ‘bioenergy’

14 means fuel grade ethanol and other biofuel.

15 ‘‘(B) BIOENERGY PRODUCER.—The term

16 ‘bioenergy producer’ means a producer of bio17 energy that uses an eligible commodity to

18 produce bioenergy under this subsection.

19 ‘‘(C) ELIGIBLECOMMODITY.—The term ‘eli20 gible commodity’ means a form of raw or refined

21 sugar or in-process sugar that is eligible—

22 ‘‘(i) to be marketed in the United

23 States for human consumption; or

24 ‘‘(ii) to be used for the extraction of

25 sugar for human consumption.
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1 ‘‘(D) ELIGIBLEENTITY.—The term ‘eligible

2 entity’ means an entity located in the United

3 States that markets an eligible commodity in the

4 United States.

5 ‘‘(2) FEEDSTOCK FLEXIBILITY PROGRAM.—

6 ‘‘(A) PURCHASES AND SALES.—For each of

7 fiscal years 2008 through 2012, the Secretary

8 shall purchase eligible commodities from eligible

9 entities and sell such commodities to bioenergy

10 producers for the purpose of producing bioenergy

11 in a manner that ensures that this section is op12 erated at no cost to the Federal Government and

13 avoids forfeitures to the Commodity Credit Cor14 poration.

15 ‘‘(B) COMPETITIVE PROCEDURES.—In car16 rying out the purchases and sales required under

17 subparagraph (A), the Secretary shall, to the

18 maximum extent practicable, use competitive

19 procedures, including the receiving, offering, and

20 accepting of bids, when entering into contracts

21 with eligible entities and bioenergy producers,

22 provided that the procedures are consistent with

23 the purposes of subparagraph (A).

24 ‘‘(C) LIMITATION.—The purchase and sale

25 of eligible commodities under subparagraph (A)
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1 shall only be made for a fiscal year for which the

2 purchases and sales are necessary to ensure that

3 the program under this section is operated at no

4 cost to the Federal Government by avoiding for5 feitures to the Commodity Credit Corporation.

6 ‘‘(3) NOTICE.—

7 ‘‘(A) IN GENERAL.—As soon as practicable

8 after the date of enactment of the Food and En9 ergy Security Act of 2007, and each September

10 1 thereafter through fiscal year 2011, the Sec11 retary shall provide notice to eligible entities and

12 bioenergy producers of the quantity of eligible

13 commodities that shall be made available for

14 purchase and sale for the subsequent fiscal year

15 under this subsection.

16 ‘‘(B) REESTIMATES.—Not later than the

17 first day of each of the second through fourth

18 quarters of each of fiscal years 2008 through

19 2012, the Secretary shall reestimate the quantity

20 of eligible commodities determined under sub21 paragraph (A), and provide notice and make

22 purchases and sales based on the reestimates.

23 ‘‘(4) COMMODITY CREDIT CORPORATION INVEN24 TORY.—To the extent that an eligible commodity is

25 owned and held in inventory by the Commodity Cred-
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1 it Corporation (accumulated pursuant to the program

2 under this section), the Secretary shall sell the eligible

3 commodity to bioenergy producers under this sub4 section.

5 ‘‘(5) TRANSFER RULE; STORAGE FEES.—

6 ‘‘(A) GENERAL TRANSFER RULE.—Except

7 as provided in subparagraph (C), the Secretary

8 shall ensure that bioenergy producers that pur9 chase eligible commodities pursuant to this sub10 section take possession of the eligible commodities

11 not later than 30 calendar days after the date of

12 the purchase from the Commodity Credit Cor13 poration.

14 ‘‘(B) PAYMENT OF STORAGE FEES PROHIB15 ITED.—

16 ‘‘(i) IN GENERAL.—The Secretary

17 shall, to the maximum extent practicable,

18 carry out this subsection in a manner that

19 ensures no storage fees are paid by the Com20 modity Credit Corporation in the adminis21 tration of this subsection.

22 ‘‘(ii) EXCEPTION.—Clause (i) shall not

23 apply with respect to any commodities

24 owned and held in inventory by the Com25 modity Credit Corporation (accumulated
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1 pursuant to the program under this sec2 tion).

3 ‘‘(C) OPTION TO PREVENT STORAGE

4 FEES.—

5 ‘‘(i) IN GENERAL.—The Secretary may

6 enter into contracts with bioenergy pro7 ducers to sell eligible commodities to the bio8 energy producers prior in time to entering

9 into contracts with eligible entities to pur10 chase the eligible commodities to be used to

11 satisfy the contracts entered into with the

12 bioenergy producers.

13 ‘‘(ii) SPECIAL TRANSFER RULE.—If the

14 Secretary makes a sale and purchase re15 ferred to in clause (i), the Secretary shall

16 ensure that the bioenergy producer that pur17 chased eligible commodities takes possession

18 of the eligible commodities not later than 30

19 calendar days after the date on which the

20 Commodity Credit Corporation purchases

21 the eligible commodities.

22 ‘‘(6) RELATION TO OTHER LAWS.—If sugar that

23 is subject to a marketing allotment under part VII of

24 subtitle B of title III of the Agricultural Adjustment

25 Act of 1938 (7 U.S.C. 1359aa et seq.) is the subject
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1 of a purchase by the Secretary under paragraph (2),

2 the sugar shall be considered marketed and shall

3 count against the allocation of a processor of an allot4 ment under that part, as applicable.

5 ‘‘(7) FUNDING.—The Secretary shall use the

6 funds, facilities, and authorities of the Commodity

7 Credit Corporation, including the use of such sums as

8 are necessary, to carry out this subsection.

9 ‘‘(g) AVOIDING FORFEITURES; CORPORATION INVEN10 TORY DISPOSITION.—

11 ‘‘(1) IN GENERAL.—Subject to subsection (d)(3),

12 to the maximum extent practicable, the Secretary

13 shall operate the program established under this sec14 tion at no cost to the Federal Government by avoid15 ing the forfeiture of sugar to the Commodity Credit

16 Corporation.

17 ‘‘(2) INVENTORY DISPOSITION.—

18 ‘‘(A) IN GENERAL.—To carry out para19 graph (1), the Commodity Credit Corporation

20 may accept bids to obtain raw cane sugar or re21 fined beet sugar in the inventory of the Com22 modity Credit Corporation from (or otherwise

23 make available such commodities, on appro24 priate terms and conditions, to) processors of

25 sugarcane and processors of sugar beets (acting
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1 in conjunction with the producers of the sugar2 cane or sugar beets processed by the processors)

3 in return for the reduction of production of raw

4 cane sugar or refined beet sugar, as appropriate.

5 ‘‘(B) BIOENERGY FEEDSTOCK.—Sugar beets

6 or sugarcane planted on acreage diverted from

7 production to achieve any reduction required

8 under subparagraph (A) may not be used for

9 any commercial purpose other than as a bio10 energy feedstock.

11 ‘‘(C) ADDITIONAL AUTHORITY.—The author12 ity provided under this paragraph is in addition

13 to any authority of the Commodity Credit Cor14 poration under any other law.

15 ‘‘(h) INFORMATION REPORTING.—

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

17 REPORT.—A sugarcane processor, cane sugar refiner,

18 and sugar beet processor shall furnish the Secretary,

19 on a monthly basis, such information as the Secretary

20 may require to administer sugar programs, including

21 the quantity of purchases of sugarcane, sugar beets,

22 and sugar, and production, importation, distribution,

23 and stock levels of sugar.

24 ‘‘(2) DUTY OF PRODUCERS TO REPORT.—
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1 ‘‘(A) PROPORTIONATESHARESTATES.—As

2 a condition of a loan made to a processor for the

3 benefit of a producer, the Secretary shall require

4 each producer of sugarcane located in a State

5 (other than the Commonwealth of Puerto Rico)

6 in which there are in excess of 250 producers of

7 sugarcane to report, in the manner prescribed by

8 the Secretary, the sugarcane yields and acres

9 planted to sugarcane of the producer.

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

11 require each producer of sugarcane or sugar beets

12 not covered by subparagraph (A) to report, in a

13 manner prescribed by the Secretary, the yields

14 of, and acres planted to, sugarcane or sugar

15 beets, respectively, of the producer.

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

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

18 subparagraph (B), the Secretary shall require an

19 importer of sugars, syrups, or molasses to be

20 used for human consumption or to be used for

21 the extraction of sugar for human consumption

22 to report, in the manner prescribed by the Sec23 retary, the quantities of the products imported

24 by the importer and the sugar content or equiva25 lent of the products.
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1 ‘‘(B) TARIFF-RATEQUOTAS.—Subpara2 graph (A) shall not apply to sugars, syrups, or

3 molasses that are within the quantities of tariff4 rate quotas that are subject to the lower rate of

5 duties.

6 ‘‘(4) INFORMATION ON MEXICO.—

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

8 collect—

9 ‘‘(i) information of the production,

10 consumption, stocks, and trade of sugar in

11 Mexico, including United States exports of

12 sugar to Mexico; and

13 ‘‘(ii) publicly-available information on

14 Mexican production, consumption, and

15 trade of high fructose corn syrups.

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

17 under subparagraph (A) shall be published in

18 each edition of the World Agricultural Supply

19 and Demand Estimates.

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

21 refusing to furnish the information required under

22 paragraph (1), (2), or (3), or furnishing willfully any

23 false information, shall be subject to a civil penalty

24 of not more than $10,000 for each such violation.
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1 ‘‘(6) MONTHLY REPORTS.—Taking into consider2 ation the information received under this subsection,

3 the Secretary shall publish on a monthly basis com4 posite data on production, imports, distribution, and

5 stock levels of sugar.

6 ‘‘(i) SUBSTITUTION OF REFINED SUGAR.—For pur7 poses of Additional U.S. Note 6 to chapter 17 of the Har8 monized Tariff Schedule of the United States and the reex9 port programs and polyhydric alcohol program adminis10 tered by the Secretary, all refined sugars (whether derived

11 from sugar beets or sugarcane) produced by cane sugar re12 fineries and beet sugar processors shall be fully substitutable

13 for the export of sugar and sugar-containing products under

14 those programs.

15 ‘‘(j) EFFECTIVE PERIOD.—

16 ‘‘(1) IN GENERAL.—This section shall be effective

17 only for the 2008 through 2012 crops of sugar beets

18 and sugarcane.

19 ‘‘(2) TRANSITION.—The Secretary shall make

20 loans for raw cane sugar and refined beet sugar

21 available for the 2007 crop year on the terms and

22 conditions provided in this section as in effect on the

23 day before the date of enactment of the Food and En24 ergy Security Act of 2007.’’.
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1 SEC. 1502. STORAGE FACILITY LOANS.

2 Section 1402(c) of the Farm Security and Rural In3 vestment Act of 2002 (7 U.S.C. 7971(c)) is amended—

4 (1) in paragraph (1), by striking ‘‘and’’ at the

5 end;

6 (2) by redesignating paragraph (2) as para7 graph (3);

8 (3) by inserting after paragraph (1) the fol9 lowing:

10 ‘‘(2) not include any penalty for prepayment’’;

11 and

12 (4) in paragraph (3) (as redesignated by para13 graph (2)), by inserting ‘‘other’’ after ‘‘on such’’.

14 SEC. 1503. COMMODITY CREDIT CORPORATION STORAGE

15 PAYMENTS.

16 Subtitle E of the Federal Agriculture Improvement

17 and Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended

18 by adding at the end the following:

19 ‘‘SEC. 167. COMMODITY CREDIT CORPORATION STORAGE

20 PAYMENTS.

21 ‘‘(a) INITIAL CROP YEARS.—Notwithstanding any

22 other provision of law, for each of the 2008 through 2011

23 crop years, the Commodity Credit Corporation shall estab24 lish rates for the storage of forfeited sugar in an amount

25 that is not less than—
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1 ‘‘(1) in the case of refined sugar, 15 cents per

2 hundredweight of refined sugar per month; and

3 ‘‘(2) in the case of raw cane sugar, 10 cents per

4 hundredweight of raw cane sugar per month.

5 ‘‘(b) SUBSEQUENT CROP YEARS.—For each of the 2012

6 and subsequent crop years, the Commodity Credit Corpora7 tion shall establish rates for the storage of forfeited sugar

8 in the same manner as was used on the day before the date

9 of enactment of this section.’’.

10 SEC. 1504. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

11 (a) DEFINITIONS.—Section 359a of the Agricultural

12 Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended—

13 (1) by redesignating paragraphs (1), (2), (3),

14 and (4) as paragraphs (2), (4), (5), and (6), respec15 tively;

16 (2) by inserting before paragraph (2) (as so re17 designated) the following:

18 ‘‘(1) HUMAN CONSUMPTION.—The term ‘human

19 consumption’, when used in the context of a reference

20 to sugar (whether in the form of sugar, in-process

21 sugar, syrup, molasses, or in some other form) for

22 human consumption, includes sugar for use in human

23 food, beverages, or similar products.’’; and

24 (3) by inserting after paragraph (2) (as so redes25 ignated) the following:
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1 ‘‘(3) MARKET.—

2 ‘‘(A) IN GENERAL.—The term ‘market’

3 means to sell or otherwise dispose of in commerce

4 in the United States.

5 ‘‘(B) INCLUSIONS.—The term ‘market’

6 includes—

7 ‘‘(i) the forfeiture of sugar under the

8 loan program for sugar established under

9 section 156 of the Federal Agriculture Im10 provement and Reform Act of 1996 (7

11 U.S.C. 7272);

12 ‘‘(ii) with respect to any integrated

13 processor and refiner, the movement of raw

14 cane sugar into the refining process; and

15 ‘‘(iii) the sale of sugar for the produc16 tion of ethanol or other bioenergy product,

17 if the disposition of the sugar is adminis18 tered by the Secretary under section 156(f)

19 of the Federal Agriculture Improvement and

20 Reform Act of 1996 (7 U.S.C. 7272(f)).

21 ‘‘(C) MARKETING YEAR.—Forfeited sugar

22 described in subparagraph (B)(i) shall be consid23 ered to have been marketed during the crop year

24 for which a loan is made under the loan pro25 gram described in that subparagraph.’’.
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1 (b) FLEXIBLE MARKETING ALLOTMENTS FOR

2 SUGAR.—Section 359b of the Agricultural Adjustment Act

3 of 1938 (7 U.S.C. 1359bb) is amended to read as follows:

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

5 SUGAR.

6 ‘‘(a) SUGAR ESTIMATES.—

7 ‘‘(1) IN GENERAL.—Not later than August 1 be8 fore the beginning of each of the 2008 through 2012

9 crop years for sugarcane and sugar beets, the Sec10 retary shall estimate—

11 ‘‘(A) the quantity of sugar that will be sub12 ject to human consumption in the United States

13 during the crop year;

14 ‘‘(B) the quantity of sugar that would pro15 vide for reasonable carryover stocks;

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

17 available from carry-in stocks for human con18 sumption in the United States during the crop

19 year;

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

21 available from the domestic processing of sugar22 cane, sugar beets, and in-process beet sugar; and

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

24 molasses that will be imported for human con25 sumption or to be used for the extraction of
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1 sugar for human consumption in the United

2 States during the crop year, whether the articles

3 are under a tariff-rate quota or are in excess or

4 outside of a tariff-rate quota.

5 ‘‘(2) EXCLUSION.—The estimates under this sub6 section shall not apply to sugar imported for the pro7 duction of polyhydric alcohol or to any sugar refined

8 and reexported in refined form or in products con9 taining sugar.

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

11 reestimates of sugar consumption, stocks, production,

12 and imports for a crop year as necessary, but not

13 later than the beginning of each of the second through

14 fourth quarters of the crop year.

15 ‘‘(b) SUGAR ALLOTMENTS.—

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

17 each crop year, the Secretary shall establish for that

18 crop year appropriate allotments under section 359c

19 for the marketing by processors of sugar processed

20 from sugar cane or sugar beets or in-process beet

21 sugar (whether the sugar beets or in-process beet sugar

22 was produced domestically or imported) at a level

23 that is—

24 ‘‘(A) sufficient to maintain raw and refined

25 sugar prices above forfeiture levels so that there
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1 will be no forfeitures of sugar to the Commodity

2 Credit Corporation under the loan program for

3 sugar established under section 156 of the Fed4 eral Agriculture Improvement and Reform Act of

5 1996 (7 U.S.C. 7272); but

6 ‘‘(B) not less than 85 percent of the esti7 mated quantity of sugar for domestic human

8 consumption for the crop year.

9 ‘‘(2) PRODUCTS.—The Secretary may include

10 sugar products, the majority content of which is su11 crose for human consumption, derived from sugar

12 cane, sugar beets, molasses, or sugar in the allotments

13 established under paragraph (1) if the Secretary de14 termines it to be appropriate for purposes of this

15 part.

16 ‘‘(c) COVERAGE OF ALLOTMENTS.—

17 ‘‘(1) IN GENERAL.—The marketing allotments

18 under this part shall apply to the marketing by proc19 essors of sugar intended for domestic human con20 sumption that has been processed from sugar cane,

21 sugar beets, or in-process beet sugar, whether such

22 sugar beets or in-process beet sugar was produced do23 mestically or imported.

24 ‘‘(2) EXCEPTIONS.—Consistent with the adminis25 tration of marketing allotments during for each of the
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1 2002 through 2007 crop years, the marketing allot2 ments shall not apply to sugar sold—

3 ‘‘(A) to facilitate the exportation of the

4 sugar to a foreign country, except that the ex5 ports of sugar shall not be eligible to receive cred6 its under reexport programs for refined sugar or

7 sugar containing products administered by the

8 Secretary;

9 ‘‘(B) to enable another processor to fulfill an

10 allocation established for that processor; or

11 ‘‘(C) for uses other than domestic human

12 consumption, except for the sale of sugar for the

13 production of ethanol or other bioenergy if the

14 disposition of the sugar is administered by the

15 Secretary under section 156(f) of the Federal Ag16 riculture Improvement and Reform Act of 1996

17 (7 U.S.C. 7272(f)).

18 ‘‘(3) REQUIREMENT.—The sale of sugar described

19 in paragraph (2)(B) shall be—

20 ‘‘(A) made prior to May 1; and

21 ‘‘(B) reported to the Secretary.

22 ‘‘(d) PROHIBITIONS.—

23 ‘‘(1) IN GENERAL.—During all or part of any

24 crop year for which marketing allotments have been

25 established, no processor of sugar beets or sugarcane
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1 shall market for domestic human consumption a

2 quantity of sugar in excess of the allocation estab3 lished for the processor, except—

4 ‘‘(A) to enable another processor to fulfill an

5 allocation established for that other processor; or

6 ‘‘(B) to facilitate the exportation of the

7 sugar.

8 ‘‘(2) CIVIL PENALTY.—Any processor who know9 ingly violates paragraph (1) shall be liable to the

10 Commodity Credit Corporation for a civil penalty in

11 an amount equal to 3 times the United States market

12 value, at the time of the commission of the violation,

13 of that quantity of sugar involved in the violation.’’.

14 (c) ESTABLISHMENT OF FLEXIBLE MARKETING AL15 LOTMENTS.—Section 359c of the Agricultural Adjustment

16 Act of 1938 (7 U.S.C. 1359cc) is amended—

17 (1) by striking subsection (b) and inserting the

18 following:

19 ‘‘(b) OVERALL ALLOTMENT QUANTITY.—

20 ‘‘(1) IN GENERAL.—The Secretary shall establish

21 the overall quantity of sugar to be allotted for the

22 crop year (referred to in this part as the ‘overall al23 lotment quantity’) at a level that is—

24 ‘‘(A) sufficient to maintain raw and refined

25 sugar prices above forfeiture levels to avoid for-
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1 feiture of sugar to the Commodity Credit Cor2 poration; but

3 ‘‘(B) not less than a quantity equal to 85

4 percent of the estimated quantity of sugar for do5 mestic human consumption for the crop year.

6 ‘‘(2) ADJUSTMENT.—Subject to paragraph (1),

7 the Secretary shall adjust the overall allotment quan8 tity to maintain—

9 ‘‘(A) raw and refined sugar prices above

10 forfeiture levels to avoid the forfeiture of sugar to

11 the Commodity Credit Corporation; and

12 ‘‘(B) adequate supplies of raw and refined

13 sugar in the domestic market.’’;

14 (2) in subsection (d)(2), by inserting ‘‘or in15 process beet sugar’’ before the period at the end;

16 (3) in subsection (g)(1)—

17 (A) by striking ‘‘(1) IN GENERAL. The Sec18 retary’’ and inserting the following:

19 ‘‘(1) ADJUSTMENTS.—

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (B), the Secretary’’; and

22 (B) by adding at the end the following:

23 ‘‘(B) LIMITATION.—In carrying out sub24 paragraph (A), the Secretary may not reduce the

25 overall allotment quantity to a quantity of less
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1 than 85 percent of the estimated quantity of

2 sugar for domestic human consumption for the

3 crop year.’’; and

4 (4) by striking subsection (h).

5 (d) ALLOCATION OF MARKETING ALLOTMENTS.—Sec6 tion 359d(b) of the Agricultural Adjustment Act of 1938 (7

7 U.S.C. 1359dd(b)) is amended—

8 (1) in paragraph (1)(F), by striking ‘‘Except as

9 otherwise provided in section 359f(c)(8), if’’ and in10 serting ‘‘If’’; and

11 (2) in paragraph (2), by striking subparagraphs

12 (H) and (I) and inserting the following:

13 ‘‘(H) NEW ENTRANTS STARTING PRODUC14 TION OR REOPENING FACTORIES.—

15 ‘‘(i) DEFINITION OF NEW ENTRANT.—

16 ‘‘(I) IN GENERAL.—In this sub17 paragraph, the term ‘new entrant’

18 means an individual, corporation, or

19 other entity that—

20 ‘‘(aa) does not have an allo21 cation of the beet sugar allotment

22 under this part;

23 ‘‘(bb) is not affiliated with

24 any other individual, corporation,

25 or entity that has an allocation of
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1 beet sugar under this part (re2 ferred to in this clause as a ‘third

3 party’); and

4 ‘‘(cc) will process sugar beets

5 produced by sugar beet growers

6 under contract with the new en7 trant for the production of sugar

8 at the new or re-opened factory

9 that is the basis for the new en10 trant allocation.

11 ‘‘(II) AFFILIATION.—For purposes

12 of subclause (I)(bb), a new entrant and

13 a third party shall be considered to be

14 affiliated if—

15 ‘‘(aa) the third party has an

16 ownership interest in the new en17 trant;

18 ‘‘(bb) the new entrant and

19 the third party have owners in

20 common;

21 ‘‘(cc) the third party has the

22 ability to exercise control over the

23 new entrant by organizational

24 rights, contractual rights, or any

25 other means;
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1 ‘‘(dd) the third party has a

2 contractual relationship with the

3 new entrant by which the new en4 trant will make use of the facili5 ties or assets of the third party; or

6 ‘‘(ee) there are any other

7 similar circumstances by which

8 the Secretary determines that the

9 new entrant and the third party

10 are affiliated.

11 ‘‘(ii) ALLOCATION FOR A NEW ENTRANT

12 THAT HAS CONSTRUCTED A NEW FACTORY

13 OR REOPENED A FACTORY THAT WAS NOT

14 OPERATED SINCE BEFORE 1998.—If a new

15 entrant constructs a new sugar beet proc16 essing factory, or acquires and reopens a

17 sugar beet processing factory that last proc18 essed sugar beets prior to the 1998 crop

19 year and there is no allocation currently as20 sociated with the factory, the Secretary

21 shall—

22 ‘‘(I) assign an allocation for beet

23 sugar to the new entrant that provides

24 a fair and equitable distribution of the

25 allocations for beet sugar so as to en-
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1 able the new entrant to achieve a fac2 tory utilization rate comparable to the

3 factory utilization rates of other simi4 larly-situated processors; and

5 ‘‘(II) reduce the allocations for

6 beet sugar of all other processors on a

7 pro rata basis to reflect the allocation

8 to the new entrant.

9 ‘‘(iii) ALLOCATION FOR A NEW EN10 TRANT THAT HAS ACQUIRED AN EXISTING

11 FACTORY WITH A PRODUCTION HISTORY.—

12 ‘‘(I) IN GENERAL.—If a new en13 trant acquires an existing factory that

14 has processed sugar beets from the 1998

15 or subsequent crop year and has a pro16 duction history, on the mutual agree17 ment of the new entrant and the com18 pany currently holding the allocation

19 associated with the factory, the Sec20 retary shall transfer to the new entrant

21 a portion of the allocation of the cur22 rent allocation holder to reflect the his23 torical contribution of the production

24 of the acquired factory to the total allo25 cation of the current allocation holder.
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1 ‘‘(II) PROHIBITION.—In the ab2 sence of a mutual agreement described

3 in subclause (I), the new entrant shall

4 be ineligible for a beet sugar allocation.

5 ‘‘(iv) APPEALS.—Any decision made

6 under this subsection may be appealed to

7 the Secretary in accordance with section

8 359i.’’.

9 (e) REASSIGNMENT OF DEFICITS.—Section 359e(b) of

10 the Agricultural Adjustment Act of 1938 (7 U.S.C.

11 1359ee(b)) is amended in paragraphs (1)(D) and (2)(C),

12 by inserting ‘‘of raw cane sugar’’ after ‘‘imports’’ each place

13 it appears.

14 (f) PROVISIONS APPLICABLETO PRODUCERS.—Section

15 359f(c) of the Agricultural Adjustment Act of 1938 (7

16 U.S.C. 1359ff(c)) is amended—

17 (1) by striking paragraph (8);

18 (2) by redesignating paragraphs (1) through (7)

19 as paragraphs (2) through (8), respectively;

20 (3) by inserting before paragraph (2) (as so re21 designated) the following:

22 ‘‘(1) DEFINITION OF SEED.—

23 ‘‘(A) IN GENERAL.—In this subsection, the

24 term ‘seed’ means only those varieties of seed

25 that are dedicated to the production of sugarcane
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1 from which is produced sugar for human con2 sumption.

3 ‘‘(B) EXCLUSION.—The term ‘seed’ does not

4 include seed of a high-fiber cane variety dedi5 cated to other uses, as determined by the Sec6 retary’’;

7 (4) in paragraph (3) (as so redesignated)—

8 (A) in the first sentence—

9 (i) by striking ‘‘paragraph (1)’’ and

10 inserting ‘‘paragraph (2)’’; and

11 (ii) by inserting ‘‘sugar produced

12 from’’ after ‘‘quantity of’’; and

13 (B) in the second sentence, by striking

14 ‘‘paragraph (7)’’ and inserting ‘‘paragraph (8)’’;

15 (5) in the first sentence of paragraph (6)(C) (as

16 so redesignated), by inserting ‘‘for sugar’’ before ‘‘in

17 excess of the farm’s proportionate share’’; and

18 (6) in paragraph (8) (as so redesignated), by in19 serting ‘‘sugar from’’ after ‘‘the amount of’’.

20 (g) SPECIAL RULES.—Section 359g of the Agricultural

21 Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended—

22 (1) by striking subsection (a) and inserting the

23 following:

24 ‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.—
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1 ‘‘(1) IN GENERAL.—For the purpose of estab2 lishing proportionate shares for sugarcane farms

3 under section 359f(c), the Secretary, on application of

4 any producer, with the written consent of all owners

5 of a farm, may transfer the acreage base history of the

6 farm to any other parcels of land of the applicant.

7 ‘‘(2) CONVERTED ACREAGE BASE.—

8 ‘‘(A) IN GENERAL.—Sugarcane base acreage

9 established under section 359f(c) that has been or

10 is converted to nonagricultural use on or after

11 May 13, 2002, may be transferred to other land

12 suitable for the production of sugarcane that can

13 be delivered to a processor in a proportionate

14 share State in accordance with this paragraph.

15 ‘‘(B) NOTIFICATION.—Not later than 90

16 days after the date of the enactment of this para17 graph, or on the subsequent conversion of any

18 sugarcane base acreage to a nonagricultural use,

19 the Administrator of the Farm Service Agency

20 shall notify the 1 or more affected landowners of

21 the transferability of the applicable sugarcane

22 acreage base.

23 ‘‘(C) INITIAL TRANSFER PERIOD.—Not later

24 than the end of the 90-day period beginning on

25 the date of receipt of the notification under sub-
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1 paragraph (B), the owner of the base attributable

2 to the acreage at the time of the conversion may

3 transfer the base to 1 or more farms owned by

4 the owner.

5 ‘‘(D) GROWER OF RECORD.—If a transfer

6 under subparagraph (C) cannot be accomplished

7 during the period specified in that subpara8 graph, the grower of record with regard to the

9 acreage base on the date on which the acreage

10 was converted to nonagricultural use shall—

11 ‘‘(i) be notified; and

12 ‘‘(ii) have 90 days from the date of the

13 receipt of the notification to transfer the

14 base to 1 or more farms operated by the

15 grower.

16 ‘‘(E) POOL DISTRIBUTION.—

17 ‘‘(i) IN GENERAL.—If transfers under

18 subparagraphs (B) and (C) cannot be ac19 complished during the periods specified in

20 those subparagraphs, the county committee

21 of the Farm Service Agency for the applica22 ble county shall place the acreage base in a

23 pool for possible assignment to other farms.

24 ‘‘(ii) ACCEPTANCE OF REQUESTS.—

25 After providing reasonable notice to farm
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1 owners, operators, and growers of record in

2 the county, the county committee shall ac3 cept requests from owners, operators, and

4 growers of record in the county.

5 ‘‘(iii) ASSIGNMENT.—The county com6 mittee shall assign the acreage base to other

7 farms in the county that are eligible and

8 capable of accepting the acreage base, based

9 on a random drawing from among the re10 quests received under clause (ii).

11 ‘‘(F) STATEWIDE REALLOCATION.—

12 ‘‘(i) IN GENERAL.—Any acreage base

13 remaining unassigned after the transfers

14 and processes described in subparagraphs

15 (A) through (E) shall be made available to

16 the State committee of the Farm Service

17 Agency for allocation among the remaining

18 county committees in the State representing

19 counties with farms eligible for assignment

20 of the base, based on a random drawing.

21 ‘‘(ii) ALLOCATION.—Any county com22 mittee receiving acreage base under this

23 subparagraph shall allocate the acreage base

24 to eligible farms using the process described

25 in subparagraph (E).
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1 ‘‘(G) STATUS OF REASSIGNED BASE.—After

2 acreage base has been reassigned in accordance

3 with this subparagraph, the acreage base shall—

4 ‘‘(i) remain on the farm; and

5 ‘‘(ii) be subject to the transfer provi6 sions of paragraph (1).’’; and

7 (2) in subsection (d)—

8 (A) in paragraph (1)—

9 (i) by inserting ‘‘affected’’ before ‘‘crop10 share owners’’ each place it appears; and

11 (ii) by striking ‘‘, and from the proc12 essing company holding the applicable allo13 cation for such shares,’’; and

14 (B) in paragraph (2), by striking ‘‘based

15 on’’ and all that follows through the end of sub16 paragraph (B) and inserting ‘‘based on—

17 ‘‘(A) the number of acres of sugarcane base

18 being transferred; and

19 ‘‘(B) the pro rata amount of allocation at

20 the processing company holding the applicable

21 allocation that equals the contribution of the

22 grower to allocation of the processing company

23 for the sugarcane acreage base being trans24 ferred.’’.
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1 (h) APPEALS.—Section 359i of the Agricultural Ad2 justment Act of 1938 (7 U.S.C. 1359ii) is amended—

3 (1) in subsection (a), by inserting ‘‘or 359g(d)’’

4 after ‘‘359f’’; and

5 (2) by striking subsection (c).

6 (i) REALLOCATING SUGAR QUOTA IMPORT SHORT7 FALLS.—Section 359k of the Agricultural Adjustment Act

8 of 1938 (7 U.S.C. 1359kk) is repealed.

9 (j) ADMINISTRATION OF TARIFF RATE QUOTAS.—Part

10 VII of subtitle B of title III of the Agricultural Adjustment

11 Act of 1938 (7 U.S.C. 1359aa) (as amended by subsection

12 (i)) is amended by adding at the end the following:

13 ‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS.

14 ‘‘(a) ESTABLISHMENT.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2) and notwithstanding any other provision of

17 law, at the beginning of the quota year, the Secretary

18 shall establish the tariff-rate quotas for raw cane

19 sugar and refined sugars at the minimum level nec20 essary to comply with obligations under international

21 trade agreements that have been approved by Con22 gress.

23 ‘‘(2) EXCEPTION.—Paragraph (1) shall not

24 apply to specialty sugar.

25 ‘‘(b) ADJUSTMENT.—
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1 ‘‘(1) BEFORE APRIL 1.—Before April 1 of each

2 fiscal year, if there is an emergency shortage of sugar

3 in the United States market that is caused by a war,

4 flood, hurricane, or other natural disaster, or other

5 similar event as determined by the Secretary—

6 ‘‘(A) the Secretary shall take action to in7 crease the supply of sugar in accordance with

8 sections 359c(b)(2) and 359e(b), including an in9 crease in the tariff-rate quota for raw cane sugar

10 to accommodate the reassignment to imports;

11 and

12 ‘‘(B) if there is still a shortage of sugar in

13 the United States market, and marketing of do14 mestic sugar has been maximized, the Secretary

15 may increase the tariff-rate quota for refined

16 sugars sufficient to accommodate the supply in17 crease, if the further increase will not threaten to

18 result in the forfeiture of sugar pledged as collat19 eral for a loan under section 156 of the Federal

20 Agriculture Improvement and Reform Act of

21 1996 (7 U.S.C. 7272).

22 ‘‘(2) ON OR AFTER APRIL 1.—On or after April

23 1 of each fiscal year—

24 ‘‘(A) the Secretary may take action to in25 crease the supply of sugar in accordance with
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1 sections 359c(b)(2) and 359e(b), including an in2 crease in the tariff-rate quota for raw cane sugar

3 to accommodate the reassignment to imports;

4 and

5 ‘‘(B) if there is still a shortage of sugar in

6 the United States market, and marketing of do7 mestic sugar has been maximized, the Secretary

8 may increase the tariff-rate quota for raw cane

9 sugar if the further increase will not threaten to

10 result in the forfeiture of sugar pledged as collat11 eral for a loan under section 156 of the Federal

12 Agriculture Improvement and Reform Act of

13 1996 (7 U.S.C. 7272).’’.

14 (k) PERIOD OF EFFECTIVENESS.—Part VII of subtitle

15 B of title III of the Agricultural Adjustment Act of 1938

16 (7 U.S.C. 1359aa) (as amended by subsection (j)) is amend17 ed by adding at the end the following:

18 ‘‘SEC. 359l. PERIOD OF EFFECTIVENESS.

19 ‘‘(a) IN GENERAL.—This part shall be effective only

20 for the 2008 through 2012 crop years for sugar.

21 ‘‘(b) TRANSITION.—The Secretary shall administer

22 flexible marketing allotments for sugar for the 2007 crop

23 year for sugar on the terms and conditions provided in this

24 part as in effect on the day before the date of enactment

25 of this section.’’.
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1 (l) UNITED STATES MEMBERSHIP IN THE INTER2 NATIONAL SUGAR ORGANIZATION.—Not later than 1 year

3 after the date of enactment of this Act, the Secretary shall

4 work with the Secretary of State to restore, to the maximum

5 extent practicable, United States membership in the Inter6 national Sugar Organization.

7 SEC. 1505. SENSE OF THE SENATE REGARDING NAFTA

8 SUGAR COORDINATION.

9 It is the sense of the Senate that in order to further

10 strengthen the operations of the North American Free Trade

11 Agreement—

12 (1) the United States Government and the Gov13 ernment of Mexico should coordinate the operation of

14 their respective sugar policies, to the fullest extent

15 consistent with the international obligations of the

16 United States; and

17 (2) the United States Government should consult

18 with the Government of Mexico on policies to avoid

19 disruptions of the United States and Mexican sweet20 ener markets in order to maximize the benefits of

21 sugar policies for growers, processors, and consumers

22 of sugar in the United States and Mexico, while sup23 porting the interests of corn growers, corn refiners,

24 and sweetener users in both markets.
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1 Subtitle D—Dairy

2 SEC. 1601. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

3 (a) SUPPORT ACTIVITIES.—During the period begin4 ning on January 1, 2008, and ending on December 31,

5 2012, the Secretary shall support the price of cheddar

6 cheese, butter, and nonfat dry milk through the purchase

7 of such products made from milk produced in the United

8 States.

9 (b) PURCHASE PRICE.—To carry out subsection (a),

10 the Secretary shall purchase cheddar cheese, butter, and

11 nonfat dry milk at prices that are equivalent to—

12 (1) in the case of cheddar cheese—

13 (A) in blocks, not less than $1.13 per

14 pound;

15 (B) in barrels, not less than $1.10 per

16 pound;

17 (2) in the case of butter, not less than $1.05 per

18 pound; and

19 (3) in the case of nonfat dry milk, not less than

20 $0.80 per pound.

21 (c) UNIFORM PURCHASE PRICE.—The prices that the

22 Secretary pays for cheese, butter, or nonfat dry milk under

23 this section shall be uniform for all regions of the United

24 States.

25 (d) SALES FROM INVENTORIES.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), in the case of each commodity specified in

3 subsection (b) that is available for unrestricted use in

4 inventories of the Commodity Credit Corporation, the

5 Secretary may sell the commodity at the market

6 prices prevailing for that commodity at the time of

7 sale.

8 (2) MINIMUM AMOUNT.—The sale price described

9 in paragraph (1) may not be less than 110 percent

10 of the minimum purchase price specified in subsection

11 (b) for that commodity.

12 SEC. 1602. NATIONAL DAIRY MARKET LOSS PAYMENTS.

13 (a) DEFINITIONS.—In this section:

14 (1) CLASS I MILK.—The term ‘‘Class I milk’’

15 means milk (including milk components) classified as

16 Class I milk under a Federal milk marketing order.

17 (2) ELIGIBLEPRODUCTION.—The term ‘‘eligible

18 production’’ means milk produced by a producer in

19 a participating State.

20 (3) FEDERAL MILK MARKETING ORDER.—The

21 term ‘‘Federal milk marketing order’’ means an order

22 issued under section 8c of the Agricultural Adjust23 ment Act (7 U.S.C. 608c), reenacted with amend24 ments by the Agricultural Marketing Agreement Act

25 of 1937.
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1 (4) PARTICIPATING STATE.—The term ‘‘partici2 pating State’’ means each State.

3 (5) PRODUCER.—The term ‘‘producer’’ means an

4 individual or entity that directly or indirectly (as de5 termined by the Secretary)—

6 (A) shares in the risk of producing milk;

7 and

8 (B) makes contributions (including land,

9 labor, management, equipment, or capital) to the

10 dairy farming operation of the individual or en11 tity that are at least commensurate with the

12 share of the individual or entity of the proceeds

13 of the operation.

14 (b) PAYMENTS.—The Secretary shall offer to enter into

15 contracts with producers on a dairy farm located in a par16 ticipating State under which the producers receive pay17 ments on eligible production.

18 (c) AMOUNT.—Payments to a producer under this sec19 tion shall be calculated by multiplying (as determined by

20 the Secretary)—

21 (1) the payment quantity for the producer dur22 ing the applicable month established under subsection

23 (d);

24 (2) the amount equal to—

25 (A) $16.94 per hundredweight; less
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1 (B) the Class I milk price per hundred2 weight in Boston under the applicable Federal

3 milk marketing order; by

4 (3)(A) for the period beginning October 1, 2007,

5 and ending September 30, 2008, 34 percent;

6 (B) for the period beginning October 1, 2008,

7 and ending August 31, 2012, 45 percent; and

8 (C) for the period beginning September 1, 2012,

9 and thereafter, 34 percent.

10 (d) PAYMENT QUANTITY.—

11 (1) IN GENERAL.—Subject to paragraph (2), the

12 payment quantity for a producer during the applica13 ble month under this section shall be equal to the

14 quantity of eligible production marketed by the pro15 ducer during the month.

16 (2) LIMITATION.—

17 (A) IN GENERAL.—The payment quantity

18 for all producers on a single dairy operation for

19 which the producers receive payments under sub20 section (b) shall not exceed—

21 (i) for the period beginning October 1,

22 2007, and ending September 30, 2008,

23 2,400,000 pounds;
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1 (ii) for the period beginning October 1,

2 2008, and ending August 31, 2012,

3 4,150,000 pounds; and

4 (iii) effective beginning September 1,

5 2012, 2,400,000 pounds.

6 (B) STANDARDS.—For purposes of deter7 mining whether producers are producers on sepa8 rate dairy operations or a single dairy oper9 ation, the Secretary shall apply the same stand10 ards as were applied in implementing the dairy

11 program under section 805 of the Agriculture,

12 Rural Development, Food and Drug Administra13 tion, and Related Agencies Appropriations Act,

14 2001 (as enacted into law by Public Law 106–

15 387; 114 Stat. 1549A–50).

16 (3) RECONSTITUTION.—The Secretary shall en17 sure that a producer does not reconstitute a dairy op18 eration for the sole purpose of receiving additional

19 payments under this section.

20 (e) PAYMENTS.—A payment under a contract under

21 this section shall be made on a monthly basis not later than

22 60 days after the last day of the month for which the pay23 ment is made.

24 (f) SIGNUP.—The Secretary shall offer to enter into

25 contracts under this section during the period beginning on
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1 the date that is 90 days after the date of enactment of this

2 Act and ending on September 30, 2012.

3 (g) DURATION OF CONTRACT.—

4 (1) IN GENERAL.—Except as provided in para5 graph (2), any contract entered into by producers on

6 a dairy farm under this section shall cover eligible

7 production marketed by the producers on the dairy

8 farm during the period starting with the first day of

9 month the producers on the dairy farm enter into the

10 contract and ending on September 30, 2012.

11 (2) VIOLATIONS.—If a producer violates the con12 tract, the Secretary may—

13 (A) terminate the contract and allow the

14 producer to retain any payments received under

15 the contract; or

16 (B) allow the contract to remain in effect

17 and require the producer to repay a portion of

18 the payments received under the contract based

19 on the severity of the violation.

20 SEC. 1603. DAIRY EXPORT INCENTIVE AND DAIRY INDEM21 NITY PROGRAMS.

22 (a) DAIRY EXPORT INCENTIVE PROGRAM.—Section

23 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a–

24 14(a)) is amended by striking ‘‘2007’’ and inserting

25 ‘‘2012’’.
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1 (b) DAIRY INDEMNITY PROGRAM.—Section 3 of Public

2 Law 90–484 (7 U.S.C. 450l) is amended by striking ‘‘2007’’

3 and inserting ‘‘2012’’.

4 SEC. 1604. FUNDING OF DAIRY PROMOTION AND RESEARCH

5 PROGRAM.

6 Section 113(e)(2) of the Dairy Production Stabiliza7 tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by strik8 ing ‘‘2007’’ and inserting ‘‘2012’’.

9 SEC. 1605. REVISION OF FEDERAL MARKETING ORDER

10 AMENDMENT PROCEDURES.

11 Section 8c of the Agricultural Adjustment Act (7

12 U.S.C. 608c), reenacted with amendments by the Agricul13 tural Marketing Agreement Act of 1937, is amended by

14 striking subsection (17) and inserting the following:

15 ‘‘(17) PROVISIONS APPLICABLETO AMEND16 MENTS.—

17 ‘‘(A) APPLICABILITY TO AMENDMENTS.—

18 The provisions of this section and section 8d ap19 plicable to orders shall be applicable to amend20 ments to orders.

21 ‘‘(B) SUPPLEMENTAL RULES OF PRAC22 TICE.—

23 ‘‘(i) IN GENERAL.—Not later than 60

24 days after the date of enactment of this sub25 paragraph, the Secretary shall issue, using
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1 informal rulemaking, supplemental rules of

2 practice to define guidelines and timeframes

3 for the rulemaking process relating to

4 amendments to orders.

5 ‘‘(ii) ISSUES.—At a minimum, the

6 supplemental rules of practice shall

7 establish—

8 ‘‘(I) proposal submission require9 ments;

10 ‘‘(II) pre-hearing information ses11 sion specifications;

12 ‘‘(III) written testimony and data

13 request requirements;

14 ‘‘(IV) public participation time15 frames; and

16 ‘‘(V) electronic document submis17 sion standards.

18 ‘‘(iii) EFFECTIVE DATE.—The supple19 mental rules of practice shall take effect not

20 later than 120 days after the date of enact21 ment of this subparagraph, as determined

22 by the Secretary.

23 ‘‘(C) HEARING TIMEFRAMES.—

24 ‘‘(i) IN GENERAL.—Not more than 30

25 days after the receipt of a proposal for an
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1 amendment hearing regarding a milk mar2 keting order, the Secretary shall—

3 ‘‘(I) issue a notice providing an

4 action plan and expected timeframes

5 for completion of the hearing not more

6 than 180 days after the date of the

7 issuance of the notice;

8 ‘‘(II)(aa) issue a request for addi9 tional information to be used by the

10 Secretary in making a determination

11 regarding the proposal; and

12 ‘‘(bb) if the additional informa13 tion is not provided to the Secretary

14 within the timeframe requested by the

15 Secretary, issue a denial of the request;

16 or

17 ‘‘(III) issue a denial of the re18 quest.

19 ‘‘(ii) NOTICE.—A notice issued under

20 clause (i)(I) shall be individualized for each

21 proceeding and take into consideration—

22 ‘‘(I) the number of orders affected;

23 ‘‘(II) the complexity of issues in24 volved; and
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1 ‘‘(III) the extent of the analyses

2 required by applicable Executive orders

3 (including Executive orders relating to

4 civil rights, regulatory flexibility, and

5 economic impact).

6 ‘‘(iii) RECOMMENDED DECISIONS.—A

7 recommended decision on a proposed

8 amendment to an order shall be issued not

9 later than 90 days after the deadline estab10 lished after the hearing for the submission

11 of post-hearing briefs, unless otherwise pro12 vided in the initial notice issued under

13 clause (i)(I).

14 ‘‘(iv) FINAL DECISIONS.—A final deci15 sion on a proposed amendment to an order

16 shall be issued not later than 60 days after

17 the deadline for submission of comments

18 and exceptions to the recommended decision

19 issued under clause (ii), unless otherwise

20 provided in the initial notice issued under

21 clause (i)(I).

22 ‘‘(D) INDUSTRY ASSESSMENTS.—If the Sec23 retary determines it is necessary to improve or

24 expedite rulemaking under this subsection, the

25 Secretary may impose an assessment on the af-
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1 fected industry to supplement appropriated

2 funds for the procurement of service providers,

3 such as court reporters.

4 ‘‘(E) USEOF INFORMAL RULEMAKING.—The

5 Secretary may use rulemaking under section 553

6 of title 5, United States Code, to amend orders,

7 other than provisions of orders that directly af8 fecting milk prices.

9 ‘‘(F) MONTHLY FEED AND FUEL COSTS FOR

10 MAKEALLOWANCES.—As part of any hearing to

11 adjust make allowances under marketing orders,

12 the Secretary shall—

13 ‘‘(i) determine the average monthly

14 prices of feed and fuel incurred by dairy

15 producers in the relevant marketing area;

16 ‘‘(ii) consider the most recent monthly

17 feed and fuel price data available; and

18 ‘‘(iii) consider those prices in deter19 mining whether or not to adjust make al20 lowances.’’.

21 SEC. 1606. DAIRY FORWARD PRICING PROGRAM.

22 (a) IN GENERAL.—Section 23 of the Agricultural Ad23 justment Act (7 U.S.C. 627), reenacted with amendments

24 by the Agricultural Marketing Agreement Act of 1937, is

25 amended—
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1 (1) in the section heading, by striking ‘‘PILOT’’;

2 (2) by striking subsection (a) and inserting the

3 following:

4 ‘‘(a) PROGRAM REQUIRED.—The Secretary of Agri5 culture shall establish a program under which milk pro6 ducers and cooperative associations of producers are author7 ized to voluntarily enter into forward price contracts with

8 milk handlers.’’;

9 (3) in subsection (c)—

10 (A) in the subsection heading, by striking

11 ‘‘PILOT’’; and

12 (B) in paragraph (1), by striking ‘‘pilot’’;

13 (4) by striking subsections (d) and (e); and

14 (5) by adding at the end the following:

15 ‘‘(d) VOLUNTARY PROGRAM.—

16 ‘‘(1) IN GENERAL.—A milk handler may not re17 quire participation in a forward price contract as a

18 condition of the handler receiving milk from a pro19 ducer or cooperative association of producers.

20 ‘‘(2) EFFECT OF NONPARTICIPATION.—A pro21 ducer or cooperative association that does not enter

22 into a forward price contract may continue to have

23 milk priced under the minimum payment provisions

24 of the applicable milk marketing order.

25 ‘‘(3) COMPLAINTS.—The Secretary shall—
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1 ‘‘(A) investigate complaints made by pro2 ducers or cooperative associations of coercion by

3 handlers to enter into forward price contracts;

4 and

5 ‘‘(B) if the Secretary finds evidence of coer6 cion, take appropriate action.

7 ‘‘(e) DURATION.—No forward price contract under this

8 section may—

9 ‘‘(1) be entered into after September 30, 2012; or

10 ‘‘(2) may extend beyond September 30, 2015.’’.

11 (b) CONFORMING AMENDMENTS.—Section 23 of the

12 Agricultural Adjustment Act (7 U.S.C. 627), reenacted with

13 amendments by the Agricultural Marketing Agreement Act

14 of 1937, is amended by striking ‘‘cooperatives’’ each place

15 it appears in subsections (b) and (c)(2) and inserting ‘‘co16 operative associations of producers’’.

17 SEC. 1607. REPORT ON DEPARTMENT OF AGRICULTURE RE18 PORTING PROCEDURES FOR NONFAT DRY

19 MILK.

20 Not later than 90 days after the date of the enactment

21 of this Act, the Secretary shall submit to the Committee on

22 Agriculture of the House of Representatives and the Com23 mittee on Agriculture, Nutrition, and Forestry of the Senate

24 a report regarding Department of Agriculture reporting

25 procedures for nonfat dry milk and the impact of the proce-
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1 dures on Federal milk marketing order minimum prices

2 during the period beginning on July 1, 2006, and ending

3 on the date of the enactment of this Act.

4 SEC. 1608. FEDERAL MILK MARKETING ORDER REVIEW COM5 MISSION.

6 (a) DEFINITION OF ASCARR INSTITUTION.—In this

7 section:

8 (1) IN GENERAL.—The term ‘‘ASCARR Institu9 tion’’ means a public college or university offering a

10 baccalaureate or higher degree in the study of agri11 culture.

12 (2) EXCLUSIONS.—The term ‘‘ASCARR Institu13 tion’’ does not include an institution eligible to re14 ceive funds under—

15 (A) the Act of July 2, 1862 (commonly

16 known as the ‘‘First Morrill Act’’) (7 U.S.C. 301

17 et seq.);

18 (B) the Act of August 30, 1890 (commonly

19 known as the ‘‘Second Morrill Act’’) (7 U.S.C.

20 321 et seq.); or

21 (C) the Equity in Educational Land-Grant

22 Status Act of 1994 (Public Law 103–382; 7

23 U.S.C. 301 note).

24 (b) ESTABLISHMENT.—Subject to the availability of

25 funds appropriated to carry out this section, the Secretary
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1 shall establish a commission to be known as the ‘‘Federal

2 Milk Marketing Order Review Commission’’ (referred to in

3 this section as the ‘‘Commission’’), which shall conduct a

4 comprehensive review and evaluation of—

5 (1) the Federal milk marketing order system in

6 effect on the date of enactment of this Act; and

7 (2) non-Federal milk marketing order systems.

8 (c) ELEMENTS OF REVIEW AND EVALUATION.—As

9 part of the review and evaluation under subsection (b), the

10 Commission shall consider legislative and regulatory op11 tions for—

12 (1) ensuring that the competitiveness of dairy

13 products with other competing products in the mar14 ketplace is preserved and enhanced;

15 (2) ensuring that dairy producers receive fair

16 and reasonable minimum prices;

17 (3) enhancing the competitiveness of United

18 States dairy producers in world markets;

19 (4) preventing anticompetitive behavior and en20 suring that dairy markets are not prone to manipula21 tion;

22 (5) increasing the responsiveness of the Federal

23 milk marketing order system to market forces;
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1 (6) streamlining and expediting the process by

2 which amendments to Federal milk market orders are

3 adopted;

4 (7) simplifying the Federal milk marketing order

5 system;

6 (8) evaluating whether the Federal milk mar7 keting order system, established during the Great De8 pression, continues to serve the interests of the public,

9 dairy processors, and dairy producers;

10 (9) evaluating whether Federal milk marketing

11 orders are operating in a manner to minimize costs

12 to taxpayers and consumers, while still maintaining

13 a fair price for producers;

14 (10) evaluating the nutritional composition of

15 milk, including the potential benefits and costs of ad16 justing the milk content standards;

17 (11) evaluating the economic benefits to milk

18 producers of establishing a 2-class system of

19 classifying milk consisting of a fluid milk class and

20 a manufacturing grade milk class, with the price of

21 both classes determined using the component prices of

22 butterfat, protein, and other solids; and

23 (12) evaluating a change in advance pricing that

24 is used to calculate the advance price of Class II skim

25 milk under Federal milk marketing orders using the
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1 4-week component prices that are used to calculate

2 prices for Class III and Class IV milk.

3 (d) MEMBERSHIP.—

4 (1) COMPOSITION.—The Commission shall con5 sist of 18 members.

6 (2) MEMBERS.—As soon as practicable after the

7 date on which funds are first made available to carry

8 out this section—

9 (A) 2 members of the Commission shall be

10 appointed by the Chairman of the Committee on

11 Agriculture of the House of Representatives, in

12 consultation with the ranking member of that

13 committee;

14 (B) 2 members of the Commission shall be

15 appointed by the Chairman of the Committee on

16 Agriculture, Nutrition, and Forestry of the Sen17 ate, in consultation with the ranking member of

18 that committee;

19 (C) 10 members of the Commission shall be

20 appointed by the Secretary;

21 (D) 2 members of the Commission shall be

22 appointed by the Chairman of the Subcommittee

23 on Agriculture, Rural Development, Food and

24 Drug Administration, and Related Agencies of

25 the House of Representatives, in consultation
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1 with the ranking member of that subcommittee;

2 and

3 (E) 2 members of the Commission shall be

4 appointed by the Chairman of the Subcommittee

5 on Agriculture, Rural Development, Food and

6 Drug Administration, and Related Agencies of

7 the Senate, in consultation with the ranking

8 member of that subcommittee.

9 (3) SPECIAL APPOINTMENT REQUIREMENTS.—In

10 the case of members of the Commission appointed

11 under paragraph (2)(C), the Secretary shall ensure

12 that—

13 (A) at least 1 member represents a national

14 consumer organization;

15 (B) at least 4 members represent land-grant

16 colleges or universities (as defined in section

17 1404 of the National Agricultural Research, Ex18 tension, and Teaching Policy Act of 1977 (7

19 U.S.C. 3103)) or ASCARR institutions with ac20 credited dairy economic programs, with at least

21 2 of those members being experts in the field of

22 economics;

23 (C) at least 1 member represents the food

24 and beverage retail sector; and
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1 (D) 4 dairy producers and 4 dairy proc2 essors are appointed in a manner that will—

3 (i) balance geographical distribution of

4 milk production and dairy processing;

5 (ii) reflect all segments of dairy proc6 essing; and

7 (iii) represent all regions of the United

8 States equitably, including States that oper9 ate outside of a Federal milk marketing

10 order.

11 (4) CHAIR.—The Commission shall elect 1 of the

12 members of the Commission to serve as chairperson

13 for the duration of the proceedings of the Commission.

14 (5) VACANCY.—Any vacancy occurring before the

15 termination of the Commission shall be filled in the

16 same manner as the original appointment.

17 (6) COMPENSATION.—A member of the Commis18 sion shall serve without compensation, but shall be re19 imbursed by the Secretary from existing budget au20 thority for necessary and reasonable expenses incurred

21 in the performance of the duties of the Commission.

22 (e) REPORT.—

23 (1) IN GENERAL.—Not later than 2 years after

24 the date of the first meeting of the Commission, the

25 Commission shall submit to Congress and the Sec-
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1 retary a report describing the results of the review

2 and evaluation conducted under this section, includ3 ing such recommendations regarding the legislative

4 and regulatory options considered under subsection

5 (c) as the Commission considers to be appropriate.

6 (2) SUPPORT.—The report findings shall reflect,

7 to the maximum extent practicable, a consensus opin8 ion of the Commission members, but the report may

9 include majority and minority findings regarding

10 those matters for which consensus was not reached.

11 (f) ADVISORY NATURE.—The Commission is wholly

12 advisory in nature and the recommendations of the Com13 mission are nonbinding.

14 (g) NO EFFECT ON EXISTING PROGRAMS.—The Sec15 retary shall not allow the existence of the Commission to

16 impede, delay, or otherwise affect any decisionmaking proc17 ess of the Department of Agriculture, including any rule18 making procedures planned, proposed, or near completion.

19 (h) ADMINISTRATIVE ASSISTANCE.—The Secretary

20 shall provide such administrative support to the Commis21 sion, and expend such funds as necessary from budget au22 thority available to the Secretary, as is necessary to carry

23 out this section.
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1 (i) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated such sums as are necessary

3 to carry out this section.

4 (j) TERMINATION OF EFFECTIVENESS.—The authority

5 provided by this section terminates effective on the date of

6 the submission of the report under subsection (e).

7 SEC. 1609. MANDATORY REPORTING OF DAIRY COMMOD8 ITIES.

9 Section 273 of the Agricultural Marketing Act of 1946

10 (7 U.S.C. 1637b) is amended by striking subsections (a)

11 and (b) and inserting the following:

12 ‘‘(a) DAILY REPORTING.—

13 ‘‘(1) IN GENERAL.—Not later than 180 days

14 after the enactment of the Food and Energy Security

15 Act of 2007, the Secretary shall—

16 ‘‘(A) establish a program for mandatory

17 daily dairy product information reporting

18 that—

19 ‘‘(i) provides timely, accurate, and re20 liable market information;

21 ‘‘(ii) facilitates more informed mar22 keting decisions; and

23 ‘‘(iii) promotes competition in the

24 dairy product manufacturing industry; and
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1 ‘‘(B) require officers or officially designated

2 representatives of each dairy processor to report

3 daily pricing information for relevant sales

4 transaction involving a dairy product, as deter5 mined by the Secretary.

6 ‘‘(2) PUBLICATION.—The Secretary shall make

7 the information reported under paragraph (1) avail8 able to the public not less frequently than once each

9 reporting day, categorized by appropriate product

10 characteristics, as determined by the Secretary.

11 ‘‘(b) REQUIREMENTS.—

12 ‘‘(1) PRICEREPORTING.—

13 ‘‘(A) IN GENERAL.—Subject to the condi14 tions described in paragraph (3), on each busi15 ness day of the Department of Agriculture, each

16 dairy manufacturer shall report to the Secretary

17 on all sales of dairy products that the dairy

18 manufacturer made on the immediately pre19 ceding day or since the last report by the dairy

20 manufacturer.

21 ‘‘(B) REQUIREMENTS.—A dairy manufac22 turer shall report such price, quantity, and prod23 uct characteristics as the Secretary determines

24 appropriate.
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1 ‘‘(C) SUBMISSION.—Reports under this

2 paragraph shall be submitted by electronic

3 means at such time as designated by the Sec4 retary.

5 ‘‘(D) AVAILABILITY.—The Secretary shall

6 compile the information reported under this

7 paragraph and make the compiled information

8 available to the public on the same day as the

9 information is reported.

10 ‘‘(2) STORAGEREPORTING.—

11 ‘‘(A) IN GENERAL.—The Secretary shall re12 quire each dairy manufacturer or other person

13 storing dairy products to report, at periodic in14 tervals determined by the Secretary, information

15 regarding the quantities of dairy products in

16 storage.

17 ‘‘(B) AVAILABILITY.—The Secretary shall

18 make information described under subparagraph

19 (A) available to the public in a timely manner.

20 ‘‘(3) CONDITIONS.—The conditions referred to in

21 paragraph (1) are that the information required

22 under that paragraph is required only—

23 ‘‘(A) with respect to those package sizes ac24 tually used to establish minimum prices for
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1 Class III or Class IV milk under a Federal milk

2 marketing order; and

3 ‘‘(B) to the extent that the information is

4 actually used to establish minimum prices for

5 Class III or Class IV milk under a Federal milk

6 marketing order.

7 ‘‘(4) EXEMPTION FOR SMALL PROCESSORS.—The

8 daily reporting requirements of this subsection shall

9 not apply to a processor that processes not more than

10 1,000,000 pounds of dairy products a year.

11 ‘‘(5) PERIODIC REVIEW.—The Secretary shall—

12 ‘‘(A) periodically review the information re13 ported for products under this subsection; and

14 ‘‘(B) propose changes for the information

15 required to be reported under this subsection,

16 through the public hearing process established

17 under the applicable Federal milk marketing

18 order.

19 ‘‘(6) ELECTRONIC REPORTING.—To the max20 imum extent practicable, the Secretary shall carry out

21 the program established under this subsection using

22 electronic reporting technology.’’.
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1 SEC. 1610. ADDITIONAL MANDATORY DAIRY REPORTING.

2 Subsection (b)(3) of section 273 of the Agricultural

3 Marketing Act of 1946 (7 U.S.C. 1637b) (as redesignated

4 by section 1609(2)) is amended—

5 (1) by striking ‘‘shall take such actions’’ and in6 serting ‘‘shall—

7 ‘‘(A) take such actions’’;

8 (2) in subparagraph (A) (as designated by para9 graph (1)), by striking the period at the end and in10 serting ‘‘; and’’; and

11 (3) by adding at the end the following:

12 ‘‘(B) include regular audits and compari13 sons with other related dairy market statistics on

14 at least a quarterly basis.’’.

15 Subtitle E—Administration

16 SEC. 1701. ADMINISTRATION GENERALLY.

17 (a) USEOF COMMODITY CREDIT CORPORATION.—Ex18 cept as otherwise provided in subtitles A through D and

19 this subtitle, the Secretary shall use the funds, facilities, and

20 authorities of the Commodity Credit Corporation to carry

21 out subtitles A through D and this subtitle.

22 (b) DETERMINATIONS BY SECRETARY.—A determina23 tion made by the Secretary under this title shall be final

24 and conclusive.

25 (c) REGULATIONS.—
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1 (1) IN GENERAL.—Not later than 90 days after

2 the date of the enactment of this Act, the Secretary

3 and the Commodity Credit Corporation, as appro4 priate, shall promulgate such regulations as are nec5 essary to implement this title and the amendments

6 made by this title.

7 (2) PROCEDURE.—The promulgation of the regu8 lations and administration of this title and the

9 amendments made by this title shall be made without

10 regard to—

11 (A) chapter 35 of title 44, United States

12 Code (commonly known as the ‘‘Paperwork Re13 duction Act’’);

14 (B) the Statement of Policy of the Secretary

15 of Agriculture effective July 24, 1971 (36 Fed.

16 Reg. 13804), relating to notices of proposed rule17 making and public participation in rulemaking;

18 and

19 (C) the notice and comment provisions of

20 section 553 of title 5, United States Code.

21 (3) CONGRESSIONAL REVIEW OF AGENCY RULE22 MAKING.—In carrying out this subsection, the Sec23 retary shall use the authority provided under section

24 808 of title 5, United States Code.
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1 (d) ADJUSTMENT AUTHORITY RELATED TO TRADE

2 AGREEMENTS COMPLIANCE.—

3 (1) REQUIRED DETERMINATION; ADJUSTMENT.—

4 If the Secretary determines that expenditures under

5 subtitles A through D and this subtitle that are sub6 ject to the total allowable domestic support levels

7 under the Uruguay Round Agreements (as defined in

8 section 2 of the Uruguay Round Agreements Act (19

9 U.S.C. 3501)) will exceed such allowable levels for

10 any applicable reporting period, the Secretary shall,

11 to the maximum extent practicable, make adjustments

12 in the amount of such expenditures during that pe13 riod to ensure that such expenditures do not exceed

14 such allowable levels.

15 (2) CONGRESSIONAL NOTIFICATION.—Before

16 making any adjustment under paragraph (1), the

17 Secretary shall submit to the Committee on Agri18 culture of the House of Representatives or the Com19 mittee on Agriculture, Nutrition, and Forestry of the

20 Senate a report describing the determination made

21 under that paragraph and the extent of the adjust22 ment to be made.

23 (e) TREATMENT OF ADVANCE PAYMENT OPTION.—Sec24 tion 1601(d) of the Farm Security and Rural Investment

25 Act of 2002 (7 U.S.C. 7991(d)) is amended—
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1 (1) in paragraph (1), by striking ‘‘and’’ at the

2 end;

3 (2) in paragraph (2), by striking the period at

4 the end and inserting ‘‘; and’’; and

5 (3) by adding at the end the following:

6 ‘‘(3) the advance payment of direct payments

7 and counter-cyclical payments under title I of the

8 Food and Energy Security Act of 2007.’’.

9 SEC. 1702. SUSPENSION OF PERMANENT PRICE SUPPORT

10 AUTHORITY.

11 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The

12 following provisions of the Agricultural Adjustment Act of

13 1938 shall not be applicable to the 2008 through 2012 crops

14 of covered commodities and sugar and shall not be applica15 ble to milk during the period beginning on the date of enact16 ment of this Act through December 31, 2012:

17 (1) Parts II through V of subtitle B of title III

18 (7 U.S.C. 1326 et seq.).

19 (2) In the case of upland cotton, section 377 (7

20 U.S.C. 1377).

21 (3) Subtitle D of title III (7 U.S.C. 1379a et

22 seq.).

23 (4) Title IV (7 U.S.C. 1401 et seq.).

24 (b) AGRICULTURAL ACT OF 1949.—The following pro25 visions of the Agricultural Act of 1949 shall not be applica-
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1 ble to the 2008 through 2012 crops of covered commodities

2 and sugar and shall not be applicable to milk during the

3 period beginning on the date of enactment of this Act and

4 through December 31, 2012:

5 (1) Section 101 (7 U.S.C. 1441).

6 (2) Section 103(a) (7 U.S.C. 1444(a)).

7 (3) Section 105 (7 U.S.C. 1444b).

8 (4) Section 107 (7 U.S.C. 1445a).

9 (5) Section 110 (7 U.S.C. 1445e).

10 (6) Section 112 (7 U.S.C. 1445g).

11 (7) Section 115 (7 U.S.C. 1445k).

12 (8) Section 201 (7 U.S.C. 1446).

13 (9) Title III (7 U.S.C. 1447 et seq.).

14 (10) Title IV (7 U.S.C. 1421 et seq.), other than

15 sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and

16 1431).

17 (11) Title V (7 U.S.C. 1461 et seq.).

18 (12) Title VI (7 U.S.C. 1471 et seq.).

19 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—

20 The joint resolution entitled ‘‘A joint resolution relating to

21 corn and wheat marketing quotas under the Agricultural

22 Adjustment Act of 1938, as amended’’, approved May 26,

23 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to

24 the crops of wheat planted for harvest in the calendar years

25 2008 through 2012.
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1 SEC. 1703. PAYMENT LIMITATIONS.

2 (a) EXTENSION OF LIMITATIONS.—Sections 1001 and

3 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308,

4 1308–3(a)) are amended by striking ‘‘Farm Security and

5 Rural Investment Act of 2002’’ each place it appears and

6 inserting ‘‘Food and Energy Security Act of 2007’’.

7 (b) REVISION OF LIMITATIONS.—

8 (1) DEFINITIONS.—Section 1001(a) of the Food

9 Security Act of 1985 (7 U.S.C. 1308) is amended—

10 (A) in the matter preceding paragraph (1),

11 by inserting ‘‘and section 1001A’’ after ‘‘sec12 tion’’;

13 (B) by striking paragraph (2) and redesig14 nating paragraph (3) as paragraph (5); and

15 (C) by inserting after paragraph (1) the fol16 lowing:

17 ‘‘(2) FAMILY MEMBER.—The term ‘family mem18 ber’ means an individual to whom a member in the

19 farming operation is related as lineal ancestor, lineal

20 descendant, sibling, or spouse.

21 ‘‘(3) LEGAL ENTITY.—The term ‘legal entity’

22 means an entity that is created under Federal or

23 State law and that—

24 ‘‘(A) owns land or an agricultural com25 modity; or

26 ‘‘(B) produces an agricultural commodity.
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1 ‘‘(4) PERSON.—The term ‘person’ means a nat2 ural person, and does not include a legal entity.’’.

3 (2) LIMITATION ON DIRECT PAYMENTS AND

4 COUNTER-CYCLICAL PAYMENTS.—Section 1001 of the

5 Food Security Act of 1985 (7 U.S.C. 1308) is amend6 ed by striking subsections (b), (c) and (d) and insert7 ing the following:

8 ‘‘(b) LIMITATION ON DIRECT AND COUNTER-CYCLICAL

9 PAYMENTS FOR COVERED COMMODITIES (OTHER THAN

10 PEANUTS).—

11 ‘‘(1) DIRECT PAYMENTS.—The total amount of

12 direct payments received, directly or indirectly, by a

13 person or legal entity (except a joint venture or a gen14 eral partnership) for any crop year under part I of

15 subtitle A of title I of the Food and Energy Security

16 Act of 2007 for 1 or more covered commodities (except

17 for peanuts), or average crop revenue payments deter18 mined under section 1401(b)(2) of that Act, may not

19 exceed $40,000.

20 ‘‘(2) COUNTER-CYCLICAL PAYMENTS.—The total

21 amount of counter-cyclical payments received, directly

22 or indirectly, by a person or legal entity (except a

23 joint venture or a general partnership) for any crop

24 year under part I of subtitle A of title I of the Food

25 and Energy Security Act of 2007 for one or more cov-
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1 ered commodities (except for peanuts), or average

2 crop revenue payments determined under section

3 1401(b)(3) of that Act, may not exceed $60,000.

4 ‘‘(c) LIMITATION ON DIRECT PAYMENTS AND

5 COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.—

6 ‘‘(1) DIRECT PAYMENTS.—The total amount of

7 direct payments received, directly or indirectly, by a

8 person or legal entity (except a joint venture or a gen9 eral partnership) for any crop year under part III of

10 subtitle A of title I of the Food and Energy Security

11 Act of 2007 for peanuts, or average crop revenue pay12 ments determined under section 1401(b)(2) of that

13 Act, may not exceed $40,000.

14 ‘‘(2) COUNTER-CYCLICAL PAYMENTS.—The total

15 amount of counter-cyclical payments received, directly

16 or indirectly, by a person or legal entity (except a

17 joint venture or a general partnership) for any crop

18 year under part III of subtitle A of title I of the Food

19 and Energy Security Act of 2007 for peanuts, or av20 erage crop revenue payments determined under sec21 tion 1401(b)(3) of that Act, may not exceed $60,000.’’.

22 ‘‘(d) LIMITATION ON APPLICABILITY.—Nothing in this

23 section authorizes any limitation on any benefit associated

24 with the marketing assistance loan program or the loan de-
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1 ficiency payment program under title I of the Food and

2 Energy Security Act of 2007.’’.

3 (3) DIRECT ATTRIBUTION.—Section 1001 of the

4 Food Security Act of 1985 (7 U.S.C. 1308) is amend5 ed by striking subsection (e) and redesignating sub6 sections (f) and (g) as (g) and (h), respectively, and

7 inserting the following:

8 ‘‘(e) ATTRIBUTION OF PAYMENTS.—

9 ‘‘(1) IN GENERAL.—In implementing subsections

10 (b) and (c) and a program described in section

11 1001D(b)(2)(C), the Secretary shall issue such regula12 tions as are necessary to ensure that the total amount

13 of payments are attributed to a person by taking into

14 account the direct and indirect ownership interests of

15 the person in a legal entity that is eligible to receive

16 the payments.

17 ‘‘(2) PAYMENTS TO A PERSON.—Each payment

18 made directly to a person shall be combined with the

19 pro rata interest of the person in payments received

20 by a legal entity in which the person has a direct or

21 indirect ownership interest unless the payments of the

22 legal entity have been reduced by the pro rata share

23 of the person.

24 ‘‘(3) PAYMENTS TO A LEGAL ENTITY.—
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1 ‘‘(A) IN GENERAL.—Each payment made to

2 a legal entity shall be attributed to those persons

3 who have a direct or indirect ownership interest

4 in the legal entity unless the payment to the

5 legal entity has been reduced by the pro rata

6 share of the person.

7 ‘‘(B) ATTRIBUTION OF PAYMENTS.—

8 ‘‘(i) PAYMENT LIMITS.—Except as pro9 vided in clause (ii), payments made to a

10 legal entity shall not exceed the amounts

11 specified in subsections (b) and (c).

12 ‘‘(ii) EXCEPTION FOR JOINT VENTURES

13 AND GENERAL PARTNERSHIPS.—Payments

14 made to a joint venture or a general part15 nership shall not exceed, for each payment

16 specified in subsections (b) and (c), the

17 amount determined by multiplying the

18 maximum payment amount specified in

19 subsections (b) and (c) by the number of

20 persons and legal entities (other than joint

21 ventures and general partnerships) that

22 comprise the ownership of the joint venture

23 or general partnership.

24 ‘‘(iii) REDUCTION.—Payments made to

25 a legal entity shall be reduced proportion-
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1 ately by an amount that represents the di2 rect or indirect ownership in the legal enti3 ty by any individual or legal entity that

4 has otherwise exceeded the applicable max5 imum payment limitation.

6 ‘‘(4) 4 LEVELS OF ATTRIBUTION FOR EMBEDDED

7 LEGAL ENTITIES.—

8 ‘‘(A) IN GENERAL.—Attribution of pay9 ments made to legal entities shall be traced

10 through 4 levels of ownership in legal entities.

11 ‘‘(B) FIRST LEVEL.—Any payments made

12 to a legal entity (a first-tier legal entity) that is

13 owned in whole or in part by a person shall be

14 attributed to the person in an amount that rep15 resents the direct ownership in the first-tier legal

16 entity by the person.

17 ‘‘(C) SECOND LEVEL.—

18 ‘‘(i) IN GENERAL.—Any payments

19 made to a first-tier legal entity that is

20 owned (in whole or in part) by another

21 legal entity (a second-tier legal entity) shall

22 be attributed to the second-tier legal entity

23 in proportion to the ownership of the sec24 ond-tier legal entity in the first-tier legal

25 entity.
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1 ‘‘(ii) OWNERSHIP BY A PERSON.—If

2 the second-tier legal entity is owned (in

3 whole or in part) by a person, the amount

4 of the payment made to the first-tier legal

5 entity shall be attributed to the person in

6 the amount that represents the indirect

7 ownership in the first-tier legal entity by

8 the person.

9 ‘‘(D) THIRD AND FOURTH LEVELS.—

10 ‘‘(i) IN GENERAL.—Except as provided

11 in clause (ii), the Secretary shall attribute

12 payments at the third and fourth tiers of

13 ownership in the same manner as specified

14 in subparagraph (C).

15 ‘‘(ii) FOURTH-TIER OWNERSHIP.—If

16 the fourth-tier of ownership is that of a

17 fourth-tier legal entity and not that of a

18 person, the Secretary shall reduce the

19 amount of the payment to be made to the

20 first-tier legal entity in the amount that

21 represents the indirect ownership in the

22 first-tier legal entity by the fourth-tier legal

23 entity.

24 ‘‘(f) SPECIAL RULES.—

25 ‘‘(1) MINOR CHILDREN.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), payments received by a child

3 under the age of 18 shall be attributed to the

4 parents of the child.

5 ‘‘(B) REGULATIONS.—The Secretary shall

6 issue regulations specifying the conditions under

7 which payments received by a child under the

8 age of 18 will not be attributed to the parents of

9 the child.

10 ‘‘(2) MARKETING COOPERATIVES.—Subsections

11 (b) and (c) shall not apply to a cooperative associa12 tion of producers with respect to commodities pro13 duced by the members of the association that are mar14 keted by the association on behalf of the members of

15 the association but shall apply to the producers as

16 persons.

17 ‘‘(3) TRUSTS AND ESTATES.—

18 ‘‘(A) IN GENERAL.—With respect to irrev19 ocable trusts and estates, the Secretary shall ad20 minister this section through section 1001F in

21 such manner as the Secretary determines will

22 ensure the fair and equitable treatment of the

23 beneficiaries of the trusts and estates.

24 ‘‘(B) IRREVOCABLE TRUST.—
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1 ‘‘(i) IN GENERAL.—In order for a trust

2 to be considered an irrevocable trust, the

3 terms of the trust agreement shall not—

4 ‘‘(I) allow for modification or ter5 mination of the trust by the grantor;

6 ‘‘(II) allow for the grantor to have

7 any future, contingent, or remainder

8 interest in the corpus of the trust; or

9 ‘‘(III) except as provided in clause

10 (ii), provide for the transfer of the cor11 pus of the trust to the remainder bene12 ficiary in less than 20 years beginning

13 on the date the trust is established.

14 ‘‘(ii) EXCEPTION.—Clause (i)(III)

15 shall not apply in a case in which the

16 transfer is—

17 ‘‘(I) contingent on the remainder

18 beneficiary achieving at least the age of

19 majority; or

20 ‘‘(II) is contingent on the death of

21 the grantor or income beneficiary.

22 ‘‘(C) REVOCABLE TRUST.—For the purposes

23 of this section through section 1001F, a revocable

24 trust shall be considered to be the same person as

25 the grantor of the trust.
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1 ‘‘(4) CASH RENT TENANTS.—

2 ‘‘(A) DEFINITION.—In this paragraph, the

3 term ‘cash rent tenant’ means a person or legal

4 entity that rents land—

5 ‘‘(i) for cash; or

6 ‘‘(ii) for a crop share guaranteed as to

7 the amount of the commodity to be paid in

8 rent.

9 ‘‘(B) RESTRICTION.—A cash rent tenant

10 who makes a significant contribution of active

11 personal management, but not of personal labor,

12 with respect to a farming operation shall be eli13 gible to receive a payment described in sub14 section (b) or (c) only if the tenant makes a sig15 nificant contribution of equipment to the farm16 ing operation.

17 ‘‘(5) FEDERAL AGENCIES.—

18 ‘‘(A) IN GENERAL.—A Federal agency shall

19 not be eligible to receive any payment described

20 in subsection (b) or (c).

21 ‘‘(B) LAND RENTAL.—A lessee of land

22 owned by a Federal agency may receive a pay23 ment described in subsection (b) or (c) if the les24 see otherwise meets all applicable criteria.

25 ‘‘(6) STATE AND LOCAL GOVERNMENTS.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

2 subsection (g), a State or local government, or

3 political subdivision or agency of the govern4 ment, shall not be eligible to receive a payment

5 described in subsection (b) or (c).

6 ‘‘(B) TENANTS.—A lessee of land owned by

7 a State or local government, or political subdivi8 sion or agency of the government, may receive

9 payments described in subsections (b) and (c) if

10 the lessee otherwise meet all applicable criteria.

11 ‘‘(7) CHANGES IN FARMING OPERATIONS.—

12 ‘‘(A) IN GENERAL.—In the administration

13 of this section through section 1001F, the Sec14 retary may not approve any change in a farm15 ing operation that otherwise will increase the

16 number of persons to which the limitations

17 under this section are applied unless the Sec18 retary determines that the change is bona fide

19 and substantive.

20 ‘‘(B) FAMILY MEMBERS.—The addition of a

21 family member to a farming operation under the

22 criteria set out in section 1001A shall be consid23 ered a bona fide and substantive change in the

24 farming operation.

25 ‘‘(8) DEATH OF OWNER.—
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1 ‘‘(A) IN GENERAL.—If any ownership inter2 est in land or a commodity is transferred as the

3 result of the death of a program participant, the

4 new owner of the land or commodity may, if the

5 person is otherwise eligible to participate in the

6 applicable program, succeed to the contract of the

7 prior owner and receive payments subject to this

8 section without regard to the amount of pay9 ments received by the new owner.

10 ‘‘(B) LIMITATIONS ON PRIOR OWNER.—Pay11 ments made under this paragraph shall not ex12 ceed the amount to which the previous owner was

13 entitled to receive under the terms of the contract

14 at the time of the death of the prior owner.’’.

15 (c) REPEAL OF 3-ENTITY RULE.—Section 1001A of the

16 Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—

17 (1) in the section heading, by striking ‘‘PRE18 VENTION OF CREATION OF ENTITIES TO QUAL19 IFY AS SEPARATE PERSONS’’ and inserting ‘‘NO20 TIFICATION OF INTERESTS’’; and

21 (2) by striking subsection (a) and inserting the

22 following:

23 ‘‘(a) NOTIFICATION OF INTERESTS.—To facilitate ad24 ministration of section 1001 and this section, each person

25 or legal entity receiving payments described in subsections
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1 (b) and (c) of section 1001 as a separate person or legal

2 entity shall separately provide to the Secretary, at such

3 times and in such manner as prescribed by the Secretary—

4 ‘‘(1) the name and social security number of

5 each individual, or the name and taxpayer identifica6 tion number of each legal entity, that holds or ac7 quires an ownership interest in the separate person or

8 legal entity; and

9 ‘‘(2) the name and taxpayer identification num10 ber of each legal entity in which the person or legal

11 entity holds an ownership interest.’’.

12 (d) AMENDMENT FOR CONSISTENCY.—Section 1001A

13 of the Food Security Act of 1985 (7 U.S.C. 1308–1) is

14 amended by striking subsection (b) and inserting the fol15 lowing:

16 ‘‘(b) ACTIVELY ENGAGED.—

17 ‘‘(1) IN GENERAL.—To be eligible to receive a

18 payment described in subsection (b) or (c) of section

19 1001, a person or legal entity shall be actively en20 gaged in farming with respect to a farming operation

21 as provided in this subsection or subsection (c).

22 ‘‘(2) CLASSES ACTIVELY ENGAGED.—Except as

23 provided in subsections (c) and (d)—

24 ‘‘(A) a person (including a person partici25 pating in a farming operation as a partner in
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1 a general partnership, a participant in a joint

2 venture, a grantor of a revocable trust, or a par3 ticipant in a similar entity, as determined by

4 the Secretary) shall be considered to be actively

5 engaged in farming with respect to a farming

6 operation if—

7 ‘‘(i) the person makes a significant

8 contribution (based on the total value of the

9 farming operation) to the farming oper10 ation of—

11 ‘‘(I) capital, equipment, or land;

12 and

13 ‘‘(II) personal labor or active per14 sonal management;

15 ‘‘(ii) the person’s share of the profits or

16 losses from the farming operation is com17 mensurate with the contributions of the per18 son to the farming operation; and

19 ‘‘(iii) the contributions of the person

20 are at risk;

21 ‘‘(B) a legal entity that is a corporation,

22 joint stock company, association, limited part23 nership, charitable organization, or other similar

24 entity determined by the Secretary (including

25 any such legal entity participating in the farm-
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1 ing operation as a partner in a general partner2 ship, a participant in a joint venture, a grantor

3 of a revocable trust, or as a participant in a

4 similar legal entity as determined by the Sec5 retary) shall be considered as actively engaged in

6 farming with respect to a farming operation if—

7 ‘‘(i) the legal entity separately makes a

8 significant contribution (based on the total

9 value of the farming operation) of capital,

10 equipment, or land;

11 ‘‘(ii) the stockholders or members col12 lectively make a significant contribution of

13 personal labor or active personal manage14 ment to the operation; and

15 ‘‘(iii) the standards provided in clauses

16 (ii) and (iii) of subparagraph (A), as ap17 plied to the legal entity, are met by the legal

18 entity;

19 ‘‘(C) if a legal entity that is a general part20 nership, joint venture, or similar entity, as de21 termined by the Secretary, separately makes a

22 significant contribution (based on the total value

23 of the farming operation involved) of capital,

24 equipment, or land, and the standards provided

25 in clauses (ii) and (iii) of subparagraph (A), as
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1 applied to the legal entity, are met by the legal

2 entity, the partners or members making a sig3 nificant contribution of personal labor or active

4 personal management shall be considered to be

5 actively engaged in farming with respect to the

6 farming operation involved; and

7 ‘‘(D) in making determinations under this

8 subsection regarding equipment and personal

9 labor, the Secretary shall take into consideration

10 the equipment and personal labor normally and

11 customarily provided by farm operators in the

12 area involved to produce program crops.

13 ‘‘(c) SPECIAL CLASSES ACTIVELY ENGAGED.—

14 ‘‘(1) LANDOWNER.—A person or legal entity that

15 is a landowner contributing the owned land to a

16 farming operation shall be considered to be actively

17 engaged in farming with respect to the farming oper18 ation if—

19 ‘‘(A) the landowner receives rent or income

20 for the use of the land based on the production

21 on the land or the operating results of the oper22 ation; and

23 ‘‘(B) the person or legal entity meets the

24 standards provided in clauses (ii) and (iii) of

25 subsection (b)(2)(A).
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1 ‘‘(2) ADULT FAMILY MEMBER.—If a majority of

2 the participants in a farming operation are family

3 members, an adult family member shall be considered

4 to be actively engaged in farming with respect to the

5 farming operation if the person—

6 ‘‘(A) makes a significant contribution,

7 based on the total value of the farming operation,

8 of active personal management or personal labor;

9 and

10 ‘‘(B) with respect to such contribution,

11 meets the standards provided in clauses (ii) and

12 (iii) of subsection (b)(2)(A).

13 ‘‘(3) SHARECROPPER.—A sharecropper who

14 makes a significant contribution of personal labor to

15 a farming operation shall be considered to be actively

16 engaged in farming with respect to the farming oper17 ation if the contribution meets the standards provided

18 in clauses (ii) and (iii) of subsection (b)(2)(A).

19 ‘‘(4) GROWERS OF HYBRID SEED.—In deter20 mining whether a person or legal entity growing hy21 brid seed under contract shall be considered to be ac22 tively engaged in farming, the Secretary shall not

23 take into consideration the existence of a hybrid seed

24 contract.

25 ‘‘(5) CUSTOM FARMING SERVICES.—
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1 ‘‘(A) IN GENERAL.—A person or legal entity

2 receiving custom farming services shall be con3 sidered separately eligible for payment limita4 tion purposes if the person or legal entity is ac5 tively engaged in farming based on subsection

6 (b)(2) or paragraphs (1) through (4) of this sub7 section.

8 ‘‘(B) PROHIBITION.—No other rules with re9 spect to custom farming shall apply.

10 ‘‘(6) SPOUSE.—If 1 spouse (or estate of a de11 ceased spouse) is determined to be actively engaged,

12 the other spouse shall be determined to have met the

13 requirements of subsection (b)(2)(A)(i)(II).

14 ‘‘(d) CLASSES NOT ACTIVELY ENGAGED.—

15 ‘‘(1) CASH RENT LANDLORD.—A landlord con16 tributing land to a farming operation shall not be

17 considered to be actively engaged in farming with re18 spect to the farming operation if the landlord receives

19 cash rent, or a crop share guaranteed as to the

20 amount of the commodity to be paid in rent, for the

21 use of the land.

22 ‘‘(2) OTHER PERSONS AND LEGAL ENTITIES.—

23 Any other person or legal entity that the Secretary

24 determines does not meet the standards described in

25 subsections (b)(2) and (c) shall not be considered to
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1 be actively engaged in farming with respect to a

2 farming operation.’’.

3 (e) DENIAL OF PROGRAM BENEFITS.—Section 1001B

4 of the Food Security Act of 1985 (7 U.S.C. 1308–2) is

5 amended to read as follows:

6 ‘‘SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

7 ‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A per8 son or legal entity shall be ineligible to receive payments

9 specified in subsections (b) and (c) of section 1001 for the

10 crop year, and the succeeding crop year, in which the Sec11 retary determines that the person or legal entity—

12 ‘‘(1) failed to comply with section 1001A(b) and

13 adopted or participated in adopting a scheme or de14 vice to evade the application of section 1001, 1001A,

15 or 1001C; or

16 ‘‘(2) intentionally concealed the interest of the

17 person or legal entity in any farm or legal entity en18 gaged in farming.

19 ‘‘(b) EXTENDED INELIGIBILITY.—If the Secretary de20 termines that a person or legal entity, for the benefit of the

21 person or legal entity or the benefit of any other person

22 or legal entity, has knowingly engaged in, or aided in the

23 creation of a fraudulent document, presented false informa24 tion that was material and relevant to the administration

25 of sections 1001 through 1001F, or committed other equally
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1 serious actions (as identified in regulations issued by the

2 Secretary), the Secretary may for a period not to exceed

3 5 crop years deny the issuance of payments to the person

4 or legal entity.

5 ‘‘(c) PRO RATA DENIAL.—

6 ‘‘(1) IN GENERAL.—Payments otherwise owed to

7 a person or legal entity described in subsections (a)

8 or (b) shall be denied in a pro rata manner based on

9 the ownership interest of the person or legal entity in

10 a farm.

11 ‘‘(2) CASH RENT TENANT.—Payments otherwise

12 payable to the person or legal entity described in sub13 section (a) or (b) who is a cash rent tenant on a farm

14 owned or under the control of the person or legal enti15 ty shall be denied.

16 ‘‘(d) JOINT AND SEVERAL LIABILITY.—Any member of

17 any legal entity (including partnerships and joint ventures)

18 determined to have knowingly participated in a scheme or

19 device to evade, or that has the purpose of evading, sections

20 1001, 1001A, or 1001C shall be jointly and severally liable

21 for any amounts that are payable to the Secretary as the

22 result of the scheme or device (including amounts necessary

23 to recover those amounts).

24 ‘‘(e) RELEASE.—The Secretary may partially or fully

25 release from liability any person or legal entity who cooper-
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1 ates with the Secretary in enforcing sections 1001, 1001A,

2 and 1001C, and this section.’’.

3 (f) CONFORMING AMENDMENTS.—

4 (1) Section 1009(e) of the Food Security Act of

5 1985 (7 U.S.C. 1308a(e)) is amended in the second

6 sentence by striking ‘‘of $50,000’’.

7 (2) Section 609(b)(1) of the Emergency Livestock

8 Feed Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is

9 amended by inserting ‘‘(before the amendment made

10 by section 1703(a) of the Food and Energy Security

11 Act of 2007)’’ after ‘‘1985’’.

12 (3) Section 524(b)(3) of the Federal Crop Insur13 ance Act (7 U.S.C. 1524(b)(3)) is amended by insert14 ing ‘‘(before the amendment made by section 1703(a)

15 of the Food and Energy Security Act of 2007)’’ after

16 ‘‘1308(5)))’’.

17 (4) Section 196(i) of the Federal Agriculture Im18 provement and Reform Act of 1996 (7 U.S.C. 7333(i))

19 is amended in paragraphs (1)(A) and (5) by insert20 ing ‘‘(before the amendment made by section 1703(a)

21 of the Food and Energy Security Act of 2007)’’ after

22 ‘‘1308)’’ each place it appears.

23 (5) Section 10204(c)(1) of the Farm Security

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

25 8204(c)(1)) is amended by inserting ‘‘(before the
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1 amendment made by section 1703(a) of the Food and

2 Energy Security Act of 2007)’’ after ‘‘1308)’’.

3 (6) Section 1271(c)(3)(A) of the Food, Agri4 culture, Conservation, and Trade Act of 1990 (16

5 U.S.C. 2106a(c)(3)(A)) is amended by inserting ‘‘(be6 fore the amendment made by section 1703(a) of the

7 Food and Energy Security Act of 2007)’’ after

8 ‘‘1308)’’.

9 (7) Section 291(2) of the Trade Act of 1974 (19

10 U.S.C. 2401(2)) is amended by inserting ‘‘(before the

11 amendment made by section 1703(a) of the Food and

12 Energy Security Act of 2007)’’ before the period at

13 the end.

14 (g) TRANSITION.—Section 1001, 1001A, and 1001B of

15 the Food Security Act of 1985 (7 U.S.C. 1308, 1308–1,

16 1308–2), as in effect on the day before the date of the enact17 ment of this Act, shall continue to apply with respect to

18 the 2007 crop of any covered commodity or peanuts.

19 SEC. 1704. ADJUSTED GROSS INCOME LIMITATION.

20 (a) EXTENSION OF ADJUSTED GROSS INCOME LIMITA21 TION.—Section 1001D(e) of the Food Security Act of 1985

22 (7 U.S.C. 1308–3a(e)) is amended by striking ‘‘2007’’ and

23 inserting ‘‘2012’’.
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1 (b) ALLOCATION OF INCOME.—Section 1001D(a) of the

2 Food Security Act of 1985 (7 U.S.C. 1308–3a(a)) is amend3 ed by adding at the end the following:

4 ‘‘(3) ALLOCATION OF INCOME.—On the request of

5 any individual filing a joint tax return, the Secretary

6 shall provide for the allocation of adjusted gross in7 come among the individuals filing the return based on

8 a certified statement provided by a certified public

9 accountant or attorney specifying the manner in

10 which the income would have been declared and re11 ported if the individuals had filed 2 separate returns,

12 if the Secretary determines that the calculation is

13 consistent with the information supporting the filed

14 joint return.’’.

15 (c) MODIFICATION OF LIMITATION.—Section 1001D of

16 the Food Security Act of 1985 (7 U.S.C. 1308–3a) is

17 amended by striking subsection (b) and inserting the fol18 lowing:

19 ‘‘(b) LIMITATION.—

20 ‘‘(1) COMMODITY AND CONSERVATION PRO21 GRAMS.—

22 ‘‘(A) COMMODITY PROGRAMS.—

23 ‘‘(i) 2009 CROP YEAR.—Notwith24 standing any other provision of law, an in25 dividual or entity shall not be eligible to re-
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1 ceive any benefit described in paragraph

2 (2)(A) during the 2009 crop year if the av3 erage adjusted gross income of the indi4 vidual or entity exceeds $1,000,000, unless

5 not less than 66.66 percent of the average

6 adjusted gross income of the individual or

7 entity is derived from farming, ranching, or

8 forestry operations, as determined by the

9 Secretary.

10 ‘‘(ii) 2010 AND SUBSEQUENT CROP

11 YEARS.—Notwithstanding any other provi12 sion of law, an individual or entity shall

13 not be eligible to receive any benefit de14 scribed in paragraph (2)(A) during any of

15 the 2010 and subsequent crop years if the

16 average adjusted gross income of the indi17 vidual or entity exceeds $750,000, unless

18 not less than 66.66 percent of the average

19 adjusted gross income of the individual or

20 entity is derived from farming, ranching, or

21 forestry operations, as determined by the

22 Secretary.

23 ‘‘(B) CONSERVATION PROGRAMS.—Notwith24 standing any other provision of law, an indi25 vidual or entity shall not be eligible to receive
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1 any benefit described in paragraph (2)(B) dur2 ing a fiscal year if the average adjusted gross in3 come of the individual or entity exceeds

4 $2,500,000, unless not less than 75 percent of the

5 average adjusted gross income of the individual

6 or entity is derived from farming, ranching, or

7 forestry operations, as determined by the Sec8 retary.

9 ‘‘(2) COVERED BENEFITS.—

10 ‘‘(A) IN GENERAL.—Paragraph (1)(A)

11 apply with respect to the following:

12 ‘‘(i) A direct payment or counter-cycli13 cal payment under part I or III of subtitle

14 A of title I of the Food and Energy Security

15 Act of 2007.

16 ‘‘(ii) A marketing loan gain or loan

17 deficiency payment under part II or III of

18 subtitle A of title I of the Food and Energy

19 Security Act of 2007.

20 ‘‘(iii) An average crop revenue pay21 ment under subtitle B of title I of Food and

22 Energy Security Act of 2007.

23 ‘‘(B) CONSERVATION PROGRAMS.—Para24 graph (1)(B) applies with respect to a payment

25 under any program under—
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1 ‘‘(i) title XII of this Act;

2 ‘‘(ii) title II of the Farm Security and

3 Rural Investment Act of 2002 (Public Law

4 107–171; 116 Stat. 223); or

5 ‘‘(iii) title II of the Food and Energy

6 Security Act of 2007.

7 ‘‘(3) INCOME DERIVED FROM FARMING, RANCH8 ING OR FORESTRY OPERATIONS.—In determining

9 what portion of the average adjusted gross income of

10 an individual or entity is derived from farming,

11 ranching, or forestry operations, the Secretary shall

12 include income derived from—

13 ‘‘(A) the production of crops, livestock, or

14 unfinished raw forestry products;

15 ‘‘(B) the sale, including the sale of ease16 ments and development rights, of farm, ranch, or

17 forestry land or water or hunting rights;

18 ‘‘(C) the sale of equipment to conduct farm,

19 ranch, or forestry operations;

20 ‘‘(D) the rental or lease of land used for

21 farming, ranching, or forestry operations, in22 cluding water or hunting rights;

23 ‘‘(E) the provision of production inputs and

24 services to farmers, ranchers, and foresters;
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1 ‘‘(F) the processing (including packing),

2 storing (including shedding), and transporting of

3 farm, ranch, and forestry commodities;

4 ‘‘(G) the sale of land that has been used for

5 agriculture; and

6 ‘‘(H) payments or other income attributable

7 to benefits received under any program author8 ized under title I or II of the Food and Energy

9 Security Act of 2007.’’.

10 (d) TRANSITION.—Section 1001D of the Food Security

11 Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day

12 before the date of the enactment of this Act, shall continue

13 to apply with respect to the 2007 and 2008 crops of any

14 covered commodity or peanuts.

15 SEC. 1705. AVAILABILITY OF QUALITY INCENTIVE PAY16 MENTS FOR CERTAIN PRODUCERS.

17 (a) INCENTIVE PAYMENTS REQUIRED.—Subject to sub18 section (b), the Secretary shall use funds made available

19 under subsection (g) to provide quality incentive payments

20 for the production of oilseeds with specialized traits that

21 enhance human health, as determined by the Secretary.

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

23 payments under this section only for the production of an

24 oilseed variety that has, as determined by the Secretary—
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1 (1) been demonstrated to improve the health pro2 file of the oilseed for use in human consumption by—

3 (A) reducing or eliminating the need to

4 partially hydrogenate the oil derived from the

5 oilseed for use in human consumption; or

6 (B) adopting new technology traits; and

7 (2) 1 or more impediments to commercialization.

8 (c) REQUEST FOR PROPOSALS.—

9 (1) ISSUANCE.—If funds are made available to

10 carry out this section for a crop year, the Secretary

11 shall issue a request for proposals for payments under

12 this section.

13 (2) MULTIYEAR PROPOSALS.—An entity may

14 submit a multiyear proposal for payments under this

15 section.

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

17 payments under this section shall include a descrip18 tion of—

19 (A) each oilseed variety described in sub20 section (b) and the value of the oilseed variety as

21 a matter of public policy;

22 (B) a range for the amount of total per

23 bushel or hundredweight premiums to be paid to

24 producers;
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1 (C) a per bushel or hundredweight amount

2 of incentive payments requested for each year

under this section that does not exceed 1 3 ⁄3 of the

4 total premium offered for any year;

5 (D) the period of time, not to exceed 4

6 years, during which incentive payments are to be

7 provided to producers; and

8 (E) the targeted total quantity of produc9 tion and estimated acres needed to produce the

10 targeted quantity for each year under this sec11 tion.

12 (d) CONTRACTS FOR PRODUCTION.—

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

14 successful proposals submitted under subsection (c) on

15 a timely basis so as to allow production contracts to

16 be entered into with producers in advance of the

17 spring planting season for the 2009 crop year.

18 (2) TIMING OF PAYMENTS.—The Secretary shall

19 make payments to producers under this section after

20 the Secretary receives documentation that the pre21 mium required under a contract has been made to

22 covered producers.

23 (e) ADMINISTRATION.—If funding provided for a crop

24 year is not fully allocated under the initial request for pro25 posals under subsection (c), the Secretary shall issue addi-
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1 tional requests for proposals for subsequent crop years

2 under this section.

3 (f) PROPRIETARY INFORMATION.—The Secretary shall

4 protect proprietary information provided to the Secretary

5 for the purpose of administering this section.

6 (g) AUTHORIZATION OF APPROPRIATIONS.—There are

7 authorized to be appropriated to carry out this section

8 $400,000,000 for the period of fiscal years 2008 through

9 2012.

10 SEC. 1706. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

11 (a) DEFINITIONS.—In this section:

12 (1) ELIGIBLE HARD WHITE WHEAT SEED.—The

13 term ‘‘eligible hard white wheat seed’’ means hard

14 white wheat seed that, as determined by the Sec15 retary, is—

16 (A) certified;

17 (B) of a variety that is suitable for the

18 State in which the seed will be planted;

19 (C) rated at least superior with respect to

20 quality; and

21 (D) specifically approved under a seed es22 tablishment program established by the State De23 partment of Agriculture and the State Wheat

24 Commission of the 1 or more States in which the

25 seed will be planted.
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1 (2) PROGRAM.—The term ‘‘program’’ means the

2 hard white wheat development program established

3 under subsection (b)(1).

4 (3) SECRETARY.—The term ‘‘Secretary’’ means

5 the Secretary of Agriculture, in consultation with the

6 State Departments of Agriculture and the State

7 Wheat Commissions of the States in regions in which

8 hard white wheat is produced, as determined by the

9 Secretary.

10 (b) ESTABLISHMENT.—

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

12 a hard white wheat development program in accord13 ance with paragraph (2) to promote the establishment

14 of hard white wheat as a viable market class of wheat

15 in the United States by encouraging production of at

16 least 240,000,000 bushels of hard white wheat by

17 2012.

18 (2) PAYMENTS.—

19 (A) IN GENERAL.—Subject to subpara20 graphs (B) and (C) and subsection (c), the Sec21 retary shall make available incentive payments

22 to producers of each of the 2008 through 2012

23 crops of hard white wheat.

24 (B) ACREAGE LIMITATION.—The Secretary

25 shall carry out subparagraph (A) subject to a re-
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1 gional limitation determined by the Secretary on

2 the number of acres for which payments may be

3 received that takes into account planting history

4 and potential planting, but does not exceed a

5 total of 2,900,000 acres or the equivalent volume

6 of production based on a yield of 50 bushels per

7 acre.

8 (C) PAYMENT LIMITATIONS.—Payments to

9 producers on a farm described in subparagraph

10 (A) shall be—

11 (i) in an amount that is not less than

12 $0.20 per bushel; and

13 (ii) in an amount that is not less than

14 $2.00 per acre for planting eligible hard

15 white wheat seed.

16 (c) FUNDING.—The Secretary shall make available

17 $35,000,000 of funds of the Commodity Credit Corporation

18 during the period of crop years 2008 through 2012 to pro19 vide incentive payments to producers of hard white wheat

20 under this section.

21 SEC. 1707. DURUM WHEAT QUALITY PROGRAM.

22 (a) IN GENERAL.—Subject to the availability of funds

23 under subsection (c), the Secretary shall provide compensa24 tion to producers of durum wheat in an amount not to ex25 ceed 50 percent of the actual cost of fungicides applied to
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1 a crop of durum wheat of the producers to control Fusarium

2 head blight (wheat scab) on acres certified to have been

3 planted to Durum wheat in a crop year.

4 (b) INSUFFICIENT FUNDS.—If the total amount of

5 funds appropriated for a fiscal year under subsection (c)

6 are insufficient to fulfill all eligible requests for compensa7 tion under this section, the Secretary shall prorate the com8 pensation payments in a manner determined by the Sec9 retary to be equitable.

10 (c) AUTHORIZATION OF APPROPRIATIONS.—There is

11 authorized to be appropriated to carry out this section

12 $10,000,000 for each of fiscal years 2008 through 2012.

13 SEC. 1708. STORAGE FACILITY LOANS.

14 (a) IN GENERAL.—As soon as practicable after the

15 date of enactment of this Act, the Secretary shall establish

16 a storage facility loan program to provide funds for pro17 ducers of grains, oilseeds, pulse crops, hay, renewable bio18 mass, and other storable commodities (other than sugar),

19 as determined by the Secretary, to construct or upgrade

20 storage and handling facilities for the commodities.

21 (b) ELIGIBLE PRODUCERS.—A storage facility loan

22 under this section shall be made available to any producer

23 described in subsection (a) that, as determined by the

24 Secretary—

25 (1) has a satisfactory credit history;
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1 (2) has a need for increased storage capacity;

2 and

3 (3) demonstrates an ability to repay the loan.

4 (c) TERM OF LOANS.—A storage facility loan under

5 this section shall have a maximum term of 12 years.

6 (d) LOAN AMOUNT.—The maximum principal amount

7 of a storage facility loan under this section shall be

8 $500,000.

9 (e) LOAN DISBURSEMENTS.—The Secretary shall pro10 vide for partial disbursements of loan principal, as deter11 mined to be appropriate and subject to acceptable docu12 mentation, to facilitate the purchase and construction of eli13 gible facilities.

14 (f) LOAN SECURITY.—Approval of a storage facility

15 loan under this section shall—

16 (1) for loan amounts of less than $150,000, not

17 require a lien on the real estate parcel on which the

18 storage facility is located;

19 (2) for loan amounts equal to or more than

20 $150,000, not require a severance agreement from the

21 holder of any prior lien on the real estate parcel on

22 which the storage facility is located, if the borrower—

23 (A) agrees to increase the down payment on

24 the storage facility loan by an amount deter25 mined appropriate by the Secretary; or
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1 (B) provides other security acceptable to the

2 Secretary; and

3 (3) allow a borrower, upon the approval of the

4 Secretary, to define a subparcel of real estate as secu5 rity for the storage facility loan if the subparcel is—

6 (A) of adequate size and value to adequately

7 secure the loan; and

8 (B) not subject to any other liens or mort9 gages that are superior to the lien interest of the

10 Commodity Credit Corporation.

11 SEC. 1709. PERSONAL LIABILITY OF PRODUCERS FOR DEFI12 CIENCIES.

13 Section 164 of the Federal Agriculture Improvement

14 and Reform Act of 1996 (7 U.S.C. 7284) is amended by

15 striking ‘‘and title I of the Farm Security and Rural In16 vestment Act of 2002’’ each place it appears and inserting

17 ‘‘title I of the Farm Security and Rural Investment Act

18 of 2002, and title I of the Food and Energy Security Act

19 of 2007’’.

20 SEC. 1710. EXTENSION OF EXISTING ADMINISTRATIVE AU21 THORITY REGARDING LOANS.

22 Section 166 of the Federal Agriculture Improvement

23 and Reform Act of 1996 (7 U.S.C. 7286) is amended in

24 subsections (a) and (c)(1) by striking ‘‘and subtitle B and

25 C of title I of the Farm Security and Rural Investment
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1 Act of 2002’’ each place it appears and inserting ‘‘title I

2 of the Farm Security and Rural Investment Act of 2002,

3 and title I of the Food and Energy Security Act of 2007’’.

4 SEC. 1711. ASSIGNMENT OF PAYMENTS.

5 (a) IN GENERAL.—The provisions of section 8(g) of the

6 Soil Conservation and Domestic Allotment Act (16 U.S.C.

7 590h(g)), relating to assignment of payments, shall apply

8 to payments made under the authority of subtitles A

9 through E and this subtitle.

10 (b) NOTICE.—The producer making the assignment, or

11 the assignee, shall provide the Secretary with notice, in such

12 manner as the Secretary may require, of any assignment

13 made under this section.

14 SEC. 1712. COTTON CLASSIFICATION SERVICES.

15 Section 3a of the Act of March 3, 1927 (7 U.S.C.

16 473a), is amended to read as follows:

17 ‘‘SEC. 3a. COTTON CLASSIFICATION SERVICES.

18 ‘‘(a) IN GENERAL.—The Secretary of Agriculture (re19 ferred to in this section as the ‘Secretary’) shall—

20 ‘‘(1) make cotton classification services available

21 to producers of cotton; and

22 ‘‘(2) provide for the collection of classification

23 fees from participating producers or agents that vol24 untarily agree to collect and remit the fees on behalf

25 of producers.
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1 ‘‘(b) USEOF FEES.—Classification fees collected under

2 subsection (a)(2) and the proceeds from the sales of samples

3 submitted under this section shall, to the maximum extent

4 practicable, be used to pay the cost of the services provided

5 under this section, including administrative and super6 visory costs.

7 ‘‘(c) CONSULTATION.—

8 ‘‘(1) IN GENERAL.—In establishing the amount

9 of fees under this section, the Secretary shall consult

10 with representatives of the United States cotton in11 dustry.

12 ‘‘(2) EXEMPTION.—The Federal Advisory Com13 mittee Act (5 U.S.C. App.) shall not apply to con14 sultations with representatives of the United States

15 cotton industry under this section.

16 ‘‘(d) CREDITING OF FEES.—Any fees collected under

17 this section and under section 3d, late payment penalties,

18 the proceeds from the sales of samples, and interest earned

19 from the investment of such funds shall—

20 ‘‘(1) be credited to the current appropriation ac21 count that incurs the cost of services provided under

22 this section and section 3d; and

23 ‘‘(2) remain available without fiscal year limita24 tion to pay the expenses of the Secretary in providing

25 those services.
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1 ‘‘(e) INVESTMENT OF FUNDS.—Funds described in sub2 section (d) may be invested—

3 ‘‘(1) by the Secretary in insured or fully

4 collateralized, interest-bearing accounts; or

5 ‘‘(2) at the discretion of the Secretary, by the

6 Secretary of the Treasury in United States Govern7 ment debt instruments.

8 ‘‘(f) LEASE AGREEMENTS.—Notwithstanding any

9 other provision of law, the Secretary may enter into long10 term lease agreements that exceed 5 years or may take title

11 to property (including through purchase agreements) for the

12 purpose of obtaining offices to be used for the classification

13 of cotton in accordance with this Act, if the Secretary deter14 mines that action would best effectuate the purposes of this

15 Act.

16 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—To the

17 extent that financing is not available from fees and the pro18 ceeds from the sales of samples, there are authorized to be

19 appropriated such sums as are necessary to carry out this

20 section.’’.

21 SEC. 1713. DESIGNATION OF STATES FOR COTTON RE22 SEARCH AND PROMOTION.

23 Section 17(f) of the Cotton Research and Promotion

24 Act (7 U.S.C. 2116(f)) is amended—
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1 (1) by striking ‘‘(f) The term’’ and inserting the

2 following:

3 ‘‘(f) COTTON-PRODUCING STATE.—

4 ‘‘(1) IN GENERAL.—The term’’;

5 (2) by striking ‘‘more, and the term’’ and all

6 that follows through the end of the subsection and in7 serting the following: ‘‘more.

8 ‘‘(2) INCLUSIONS.—The term ‘cotton-producing

9 State’ includes—

10 ‘‘(A) any combination of States described in

11 paragraph (1); and

12 ‘‘(B) effective beginning with the 2008 crop

13 of cotton, the States of Kansas, Virginia, and

14 Florida.’’.

15 SEC. 1714. GOVERNMENT PUBLICATION OF COTTON PRICE

16 FORECASTS.

17 Section 15 of the Agricultural Marketing Act (12

18 U.S.C. 1141j) is amended—

19 (1) by striking subsection (d); and

20 (2) by redesignating subsections (e) through (g)

21 as subsections (d) through (f), respectively.

22 SEC. 1715. STATE, COUNTY, AND AREA COMMITTEES.

23 Section 8(b)(5)(B)(ii) of the Soil Conservation and

24 Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is

25 amended—
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1 (1) by redesignating subclauses (I) and (II) as

2 items (aa) and (bb), respectively, and indenting ap3 propriately;

4 (2) in the matter preceding item (aa) (as redes5 ignated by paragraph (1)), by striking ‘‘A committee

6 established’’ and inserting the following:

7 ‘‘(I) IN GENERAL.—Except as pro8 vided in subclause (II), a committee es9 tablished’’; and

10 (3) by adding at the end the following:

11 ‘‘(II) COMBINATION OR CONSOLI12 DATION OF AREAS.—A committee es13 tablished by combining or consoli14 dating 2 or more county or area com15 mittees shall consist of not fewer than

16 3 nor more than 11 members that—

17 ‘‘(aa) are fairly representa18 tive of the agricultural producers

19 within the area covered by the

20 county, area, or local committee;

21 and

22 ‘‘(bb) are elected by the agri23 cultural producers that partici24 pate or cooperate in programs ad25 ministered within the area under
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1 the jurisdiction of the county,

2 area, or local committee.

3 ‘‘(III) REPRESENTATION OF SO4 CIALLY DISADVANTAGED FARMERS AND

5 RANCHERS.—The Secretary shall en6 sure, to the extent practicable, that rep7 resentation of socially disadvantaged

8 farmers and ranchers is maintained on

9 combined or consolidated committees.

10 ‘‘(IV) ELIGIBILITY FOR MEMBER11 SHIP.—Notwithstanding any other

12 producer eligibility requirements for

13 service on county or area committees,

14 if a county or area is consolidated or

15 combined, a producer shall be eligible

16 to serve only as a member of the coun17 ty or area committee that the producer

18 elects to administer the farm records of

19 the producer.’’.

20 SEC. 1716. PROHIBITION ON CHARGING CERTAIN FEES.

21 Public Law 108–470 (7 U.S.C. 7416a) is amended—

22 (1) in subsection (a), by striking ‘‘may’’ and in23 serting ‘‘shall’’; and

24 (2) by adding at the end the following:
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1 ‘‘(c) PROHIBITION ON CHARGING CERTAIN FEES.—

2 The Secretary may not charge any fees or related costs for

3 the collection of commodity assessments pursuant to this

4 Act.’’.

5 SEC. 1717. SIGNATURE AUTHORITY.

6 In carrying out this title and title II and amendments

7 made by those titles, if the Secretary approves a document

8 containing signatures of program applicants, the Secretary

9 shall not subsequently determine the document is inad10 equate or invalid because of the lack of authority of any

11 applicant signing the document on behalf of the applicant

12 or any other individual, entity, general partnership, or

13 joint venture, or the documents relied upon were determined

14 inadequate or invalid, unless the applicant knowingly and

15 willfully falsified the evidence of signature authority or a

16 signature.

17 SEC. 1718. MODERNIZATION OF FARM SERVICE AGENCY.

18 The Secretary shall modernize the Farm Service Agen19 cy information technology and communication systems to

20 ensure timely and efficient program delivery at national,

21 State, and County offices.

22 SEC. 1719. GEOSPATIAL SYSTEMS.

23 (a) IN GENERAL.—The Secretary shall ensure that all

24 agencies of the Department of Agriculture consolidate the

25 geospatial systems of the agencies into a single enterprise
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1 system that ensures that geospatial data is shareable, port2 able, and standardized.

3 (b) REQUIREMENTS.—In carrying out subsection (a),

4 the Secretary shall—

5 (1) identify common datasets;

6 (2) give responsibility for managing each identi7 fied dataset to the agency best suited for collecting

8 and maintaining that data, as determined by the Sec9 retary; and

10 (3) make every effort to minimize the duplica11 tion of efforts.

12 (c) AVAILABILITY OF DATA.—The Secretary shall en13 sure, to the maximum extent practicable, that data is read14 ily available to all agencies beginning not later than 2 years

15 after the date of enactment of this Act.

16 SEC. 1720. LEASING OFFICE SPACE.

17 The Secretary may use the funds, facilities, and au18 thorities of the Commodity Credit Corporation to lease

19 space for use by agencies of the Department of Agriculture

20 in cases in which office space would be jointly occupied by

21 the agencies.

22 SEC. 1721. REPEALS.

23 (a) COMMISSION ON APPLICATION OF PAYMENT LIMI24 TATIONS.—Section 1605 of the Farm Security and Rural

25 Investment Act of 2002 (7 U.S.C. 7993) is repealed.
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1 (b) RENEWED AVAILABILITY OF MARKET LOSS AS2 SISTANCEAND CERTAIN EMERGENCY ASSISTANCETO PER3 SONS THAT FAILED TO RECEIVE ASSISTANCE UNDER EAR4 LIER AUTHORITIES.—Section 1617 of the Farm Security

5 and Rural Investment Act of 2002 (7 U.S.C. 8000) is re6 pealed.

7 Subtitle F—Specialty Crop

8 Programs

9 SEC. 1801. DEFINITIONS.

10 In this subtitle:

11 (1) SPECIALTY CROP.—The term ‘‘specialty

12 crop’’ has the meaning given the term in section 3 of

13 the Specialty Crops Competitiveness Act of 2004 (7

14 U.S.C. 1621 note; Public Law 108–465).

15 (2) STATE.—The term ‘‘State’’ means each of the

16 several States of the United States.

17 (3) STATE DEPARTMENT OF AGRICULTURE.—The

18 term ‘‘State department of agriculture’’ means the

19 agency, commission, or department of a State govern20 ment responsible for protecting and promoting agri21 culture in the State.
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1 PART I—MARKETING, INFORMATION, AND

2 EDUCATION

3 SEC. 1811. FRUIT AND VEGETABLE MARKET NEWS ALLOCA4 TION.

5 (a) IN GENERAL.—The Secretary, acting through the

6 Administrator of the Agricultural Marketing Service, shall

7 carry out market news activities to provide timely price

8 information of United States fruits and vegetables in the

9 United States.

10 (b) AUTHORIZATION OF APPROPRIATIONS.—There is

11 authorized to be appropriated to carry out this section

12 $9,000,000 for each of fiscal years 2008 through 2012, to

13 remain available until expended.

14 SEC. 1812. FARMERS’ MARKET PROMOTION PROGRAM.

15 Section 6 of the Farmer-to-Consumer Direct Marketing

16 Act of 1976 (7 U.S.C. 3005) is amended—

17 (1) in subsection (a), by inserting ‘‘and to pro18 mote direct producer-to-consumer marketing’’ before

19 the period at the end;

20 (2) in subsection (b)(1)(B), by striking ‘‘infra21 structure’’ and inserting ‘‘marketing opportunities’’;

22 (3) in subsection (c)(1), by inserting ‘‘or a pro23 ducer network or association’’ after ‘‘cooperative’’;

24 and

25 (4) by striking subsection (e) and inserting the

26 following:
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1 ‘‘(e) FUNDING.—Of the funds of the Commodity Credit

2 Corporation, the Secretary shall use to carry out this

3 section—

4 ‘‘(1) $5,000,000 for each of fiscal years 2008

5 through 2011; and

6 ‘‘(2) $10,000,000 for fiscal year 2012.’’.

7 SEC. 1813. FOOD SAFETY INITIATIVES.

8 (a) INITIATIVE AUTHORIZED.—The Secretary may

9 carry out a food safety education program to educate the

10 public and persons in the fresh produce industry about—

11 (1) scientifically proven practices for reducing

12 microbial pathogens on fresh produce; and

13 (2) methods of reducing the threat of cross-con14 tamination of fresh produce through unsanitary han15 dling practices.

16 (b) COOPERATION.—The Secretary may carry out the

17 education program in cooperation with public and private

18 partners.

19 (c) AUTHORIZATION OF APPROPRIATIONS.—There is

20 authorized to be appropriated to the Secretary to carry out

21 this section $1,000,000.

22 SEC. 1814. CENSUS OF SPECIALTY CROPS.

23 (a) ESTABLISHMENT.—Not later than September 30,

24 2008, and each 5 years thereafter, the Secretary shall con25 duct a census of specialty crops to assist in the regularly
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1 development and dissemination of information relative to

2 specialty crops.

3 (b) RELATION TO OTHER CENSUS.—The Secretary

4 may include the census of specialty crops in the census on

5 agriculture.

6 PART II—ORGANIC PRODUCTION

7 SEC. 1821. ORGANIC DATA COLLECTION AND PRICE RE8 PORTING.

9 Section 2104 of the Organic Foods Production Act of

10 1990 (7 U.S.C. 6503) is amended by adding at the end the

11 following:

12 ‘‘(e) DATA COLLECTION AND PRICE REPORTING.—Of

13 the funds of the Commodity Credit Corporation, the Sec14 retary shall use $5,000,000 for the period of fiscal years

15 2008 through 2012—

16 ‘‘(1) to collect data relating to organic agri17 culture;

18 ‘‘(2) to identify and publish organic production

19 and market data initiatives and surveys;

20 ‘‘(3) to expand, collect, and publish organic cen21 sus data analyses;

22 ‘‘(4) to fund comprehensive reporting of prices

23 relating to organically-produced agricultural prod24 ucts;
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1 ‘‘(5) to conduct analysis relating to organic pro2 duction, handling, distribution, retail, and trend

3 studies;

4 ‘‘(6) to study and perform periodic updates on

5 the effects of organic standards on consumer behavior;

6 and

7 ‘‘(7) to conduct analyses for organic agriculture

8 using the national crop table.’’.

9 SEC. 1822. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS

10 FROM ASSESSMENTS.

11 Section 501(e) of the Federal Agriculture Improvement

12 and Reform Act of 1996 (7 U.S.C. 7401(e)) is amended by

13 striking paragraph (1) and inserting the following:

14 ‘‘(1) IN GENERAL.—Notwithstanding any provi15 sion of a commodity promotion law, a person that

16 produces and markets organic products shall be ex17 empt from the payment of an assessment under a

18 commodity promotion law with respect to that por19 tion of agricultural commodities that the person—

20 ‘‘(A) produces on a certified organic farm

21 (as defined in section 2103 of the Organic Foods

22 Production Act of 1990 (7 U.S.C. 6502); and

23 ‘‘(B) produces or markets as organically

24 produced (as so defined).’’.
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1 SEC. 1823. NATIONAL ORGANIC CERTIFICATION COST

2 SHARE PROGRAM.

3 Section 10606 of the Farm Security and Rural Invest4 ment Act of 2002 (7 U.S.C. 6523) is amended to read as

5 follows:

6 ‘‘SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST7 SHARE PROGRAM.

8 ‘‘(a) DEFINITIONS.—In this section:

9 ‘‘(1) PROGRAM.—The term ‘program’ means the

10 national certification cost-share program established

11 under subsection (b).

12 ‘‘(2) SECRETARY.—The term ‘Secretary’ means

13 the Secretary of Agriculture, acting through the Agri14 cultural Marketing Service.

15 ‘‘(b) ESTABLISHMENT.—The Secretary shall use

16 amounts made available under subsection (f) to establish

17 a national organic certification cost-share program under

18 which the Secretary shall make payments to States to assist

19 producers and handlers of agricultural products in obtain20 ing certification under the national organic production pro21 gram established under the Organic Foods Production Act

22 of 1990 (7 U.S.C. 6501 et seq.).

23 ‘‘(c) FEDERAL SHARE.—

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

25 Secretary shall pay under this section not more than

26 75 percent of the costs incurred by a producer or han-
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1 dler in obtaining certification under the national or2 ganic production program, as certified to and ap3 proved by the Secretary.

4 ‘‘(2) MAXIMUM AMOUNT.—The maximum

5 amount of a payment made to a producer or handler

6 under this section shall be $750.

7 ‘‘(d) RECORDKEEPING REQUIREMENTS.—

8 ‘‘(1) IN GENERAL.—The Secretary shall—

9 ‘‘(A) keep accurate, up-to-date records of re10 quests and disbursements from the program; and

11 ‘‘(B) require accurate and consistent record12 keeping from each State and entity that receives

13 program payments.

14 ‘‘(2) FEDERAL REQUIREMENTS.—Not later than

15 30 days after the last day on which a State may re16 quest funding under the program, the Secretary

17 shall—

18 ‘‘(A) determine the number of States re19 questing funding and the amount of each request;

20 and

21 ‘‘(B) distribute the funding to the States.

22 ‘‘(3) STATE REQUIREMENTS.—An annual fund23 ing request from a State shall include data from the

24 program during the preceding year, including—

25 ‘‘(A) a description of—
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1 ‘‘(i) the entities that requested reim2 bursement;

3 ‘‘(ii) the amount of each reimburse4 ment request; and

5 ‘‘(iii) any discrepancies between the

6 amount requested and the amount provided;

7 ‘‘(B) data to support increases in requests

8 expected in the coming year, including informa9 tion from certifiers or other data showing growth

10 projections; and

11 ‘‘(C) an explanation of any case in which

12 an annual request is lower than the request of

13 the preceding year.

14 ‘‘(e) REPORTING.—Not later than March 1 of each

15 year, the Secretary shall submit to Congress a report that

16 describes the expenditures for each State under the program

17 during the previous fiscal year, including the number of

18 producers and handlers served by the program in the pre19 vious fiscal year.

20 ‘‘(f) FUNDING.—

21 ‘‘(1) IN GENERAL.—Not later than 30 days after

22 the date of enactment of the Food and Energy Secu23 rity Act of 2007, out of any funds in the Treasury

24 not otherwise appropriated, the Secretary of the

25 Treasury shall transfer to the Secretary of Agriculture
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1 to carry out this section $22,000,000, to remain

2 available until expended.

3 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary

4 shall be entitled to receive, shall accept, and shall use

5 to carry out this section the funds transferred under

6 paragraph (1), without further appropriation.’’.

7 SEC. 1824. NATIONAL ORGANIC PROGRAM.

8 Section 2123 of the Organic Foods Production Act of

9 1990 (7 U.S.C. 6522) is amended—

10 (1) by striking ‘‘There are’’ and inserting the fol11 lowing:

12 ‘‘(a) IN GENERAL.—There are’’; and

13 (2) by adding at the end the following:

14 ‘‘(b) NATIONAL ORGANIC PROGRAM.—Notwithstanding

15 any other provision of law, in order to carry out the activi16 ties of the Agricultural Marketing Service under the na17 tional organic program established under this title, there

18 are authorized to be appropriated—

19 ‘‘(1) $5,000,000 for fiscal year 2008;

20 ‘‘(2) $6,500,000 for fiscal year 2009;

21 ‘‘(3) $8,000,000 for fiscal year 2010;

22 ‘‘(4) $9,500,000 for fiscal year 2011; and

23 ‘‘(5) $11,000,000 for fiscal year 2012.’’.
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1 PART III—INTERNATIONAL TRADE

2 SEC. 1831. FOREIGN MARKET ACCESS STUDY AND STRAT3 EGY PLAN.

4 (a) DEFINITION OF URUGUAY ROUND AGREEMENTS.—

5 In this section, the term ‘‘Uruguay Round Agreements’’ in6 cludes any agreement described in section 101(d) of the

7 Uruguay Round Agreements Act (19 U.S.C. 3511(d)).

8 (b) STUDY.—The Comptroller General of the United

9 States shall study—

10 (1) the extent to which United States specialty

11 crops have or have not benefitted from any reductions

12 of foreign trade barriers, as provided for in the Uru13 guay Round Agreements; and

14 (2) the reasons why United States specialty

15 crops have or have not benefitted from such trade-bar16 rier reductions.

17 (c) STRATEGY PLAN.—The Secretary shall prepare a

18 foreign market access strategy plan based on the study in

19 subsection (b), to increase exports of specialty crops, includ20 ing an assessment of the foreign trade barriers that are in21 compatible with the Uruguay Round Agreements and a

22 strategy for removing those barriers.

23 (d) REPORT.—Not later than 18 months after the date

24 of enactment of this Act—
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1 (1) the Comptroller General shall submit to Con2 gress a report that contains the results of the study;

3 and

4 (2) the Secretary shall submit to Congress the

5 strategy plan.

6 SEC. 1832. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

7 Section 3205 of the Farm Security and Rural Invest8 ment Act of 2002 (7 U.S.C. 5680) is amended by striking

9 subsection (d) and inserting the following:

10 ‘‘(d) PETITION.—A participant in the program may

11 petition the Secretary for an extension of a project carried

12 out under this section that exceeds, or will exceed, applicable

13 time restrictions.

14 ‘‘(e) FUNDING.—

15 ‘‘(1) IN GENERAL.—The Secretary shall make

16 available to carry out the program under this

17 section—

18 ‘‘(A) $6,800,000 of funds of, or an equal

19 value of commodities owned by, the Commodity

20 Credit Corporation for each of fiscal years 2008

21 through 2011; and

22 ‘‘(B) $2,000,000 of funds of, or an equal

23 value of commodities owned by, the Commodity

24 Credit Corporation for fiscal year 2012 and each

25 subsequent fiscal year.
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1 ‘‘(2) CARRYOVER OF UNOBLIGATED FUNDS.—In

2 a case in which the total amount of funds or commod3 ities made available under paragraph (1) for a fiscal

4 year is not obligated in that fiscal year, the Secretary

5 shall make available in the subsequent fiscal year an

6 amount equal to—

7 ‘‘(A) the amount made available for the fis8 cal year under paragraph (1); plus

9 ‘‘(B) the amount not obligated in the pre10 vious fiscal year.’’

11 SEC. 1833. CONSULTATIONS ON SANITARY AND

12 PHYTOSANITARY RESTRICTIONS FOR FRUITS

13 AND VEGETABLES.

14 To the maximum extent practicable, the Secretary and

15 the United States Trade Representative shall consult with

16 interested persons, and conduct annual briefings, on sani17 tary and phytosanitary trade issues, including—

18 (1) the development of a strategic risk manage19 ment framework; and

20 (2) as appropriate, implementation of peer re21 view for risk analysis.

22 PART IV—SPECIALTY CROPS COMPETITIVENESS

23 SEC. 1841. SPECIALTY CROP BLOCK GRANTS.

24 (a) EXTENSION OF PROGRAM.—Section 101(a) of the

25 Specialty Crops Competitiveness Act of 2004 (7 U.S.C.
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1 1621 note; Public Law 108–465) is amended by striking

2 ‘‘2009’’ and inserting ‘‘2012’’.

3 (b) ELIGIBILITY.—Section 101 of the Specialty Crops

4 Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public

5 Law 108–465) is amended by striking subsection (e) and

6 inserting the following:

7 ‘‘(e) PLAN REQUIREMENTS.—

8 ‘‘(1) IN GENERAL.—The State plan shall identify

9 the lead agency charged with the responsibility for

10 carrying out the plan and indicate how the grant

11 funds will be used to enhance the competitiveness of

12 specialty crops.

13 ‘‘(2) REPRESENTATION OF CERTAIN INDIVID14 UALS.—To the maximum extent practicable and ap15 propriate, the State plan shall be developed taking

16 into consideration the opinions and expertise of be17 ginning farmers or ranchers (as defined in section

18 343(a) of the Consolidated Farm and Rural Develop19 ment Act (7 U.S.C. 1991(a)) and socially disadvan20 taged farmers or ranchers (as defined in section

21 355(e) of the Consolidated Farm and Rural Develop22 ment Act (7 U.S.C. 2003(e))) who produce specialty

23 crops.’’.

24 (c) AUDIT AND PLAN REQUIREMENTS.—Section 101 of

25 the Specialty Crops Competitiveness Act of 2004 (7 U.S.C.
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1 1621 note; Public Law 108–465) is amended by striking

2 subsection (h) and inserting the following:

3 ‘‘(h) AUDIT AND PLAN REQUIREMENTS.—

4 ‘‘(1) IN GENERAL.—For each year that a State

5 receives a grant under this section, the State shall

6 conduct an audit of the expenditures of grant funds

7 by the State.

8 ‘‘(2) SUBMISSION OF AUDIT AND DESCRIPTION.—

9 Not later than 30 days after the date of completion

10 of an audit under paragraph (1), the State shall sub11 mit to the Secretary of Agriculture—

12 ‘‘(A) a copy of the audit;

13 ‘‘(B) a description of the ways in which the

14 State is complying with the requirement under

15 subsection (e); and

16 ‘‘(C) such additional information as the

17 Secretary may request to ensure, to the max18 imum extent practicable, that the State is com19 plying with that requirement.’’.

20 (d) AVAILABILITY OF FUNDS.—Section 101 of the Spe21 cialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621

22 note; Public Law 108–465) is amended by striking sub23 section (i) and inserting the following:
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1 ‘‘(i) FUNDING.—Of the funds of the Commodity Credit

2 Corporation, the Secretary of Agriculture shall make grants

3 under this section, using—

4 ‘‘(1) $60,000,000 for fiscal year 2008;

5 ‘‘(2) $65,000,000 for fiscal year 2009;

6 ‘‘(3) $70,000,000 for fiscal year 2010;

7 ‘‘(4) $75,000,000 for fiscal year 2011; and

8 ‘‘(5) $0 for fiscal year 2012.’’.

9 (e) CONFORMING AMENDMENTS.—Section 101 of the

10 Specialty Crops Competitiveness Act of 2004 (7 U.S.C.

11 1621 note; Public Law 108–465) is amended—

12 (1) in subsection (a), by striking ‘‘Subject to the

13 appropriation of funds to carry out this section’’ and

14 inserting ‘‘Using the funds made available under sub15 section (i)’’;

16 (2) in subsection (b), by striking ‘‘appropriated

17 pursuant to the authorization of appropriations in’’

18 and inserting ‘‘made available under’’;

19 (3) by striking subsection (c) and inserting the

20 following:

21 ‘‘(c) MINIMUM GRANT AMOUNT.—Notwithstanding

22 subsection (b), each State shall receive a grant under this

23 section for each fiscal year in an amount that is at least

1 24 ⁄2 of 1 percent of the total amount of funding made avail25 able to carry out this section for the fiscal year.’’;
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1 (4) by redesignating subsection (i) as subsection

2 (j); and

3 (5) by inserting after subsection (h) the fol4 lowing:

5 ‘‘(i) REALLOCATION.—The Secretary may reallocate to

6 other States any amounts made available under this section

7 that are not obligated or expended by a date determined

8 by the Secretary.’’.

9 (f) DEFINITION OF SPECIALTY CROP.—Section 3 of the

10 Specialty Crops Competitiveness Act of 2004 (7 U.S.C.

11 1621 note; Public Law 108–465) is amended by striking

12 paragraph (1) and inserting the following:

13 ‘‘(1) SPECIALTY CROP.—The term ‘specialty

14 crop’ means fruits, vegetables, tree nuts, dried fruits,

15 nursery crops, floriculture, and horticulture, includ16 ing turfgrass sod and herbal crops.’’.

17 (g) DEFINITION OF STATE.—Section 3(2) of the Spe18 cialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621

19 note; Public Law 108–465) is amended by striking ‘‘and

20 the Commonwealth of Puerto Rico’’ and inserting ‘‘the

21 Commonwealth of Puerto Rico, Guam, American Samoa,

22 the United States Virgin Islands, and the Commonwealth

23 of the Northern Mariana Islands’’.
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1 SEC. 1842. GRANT PROGRAM TO IMPROVE MOVEMENT OF

2 SPECIALTY CROPS.

3 Title II of the Specialty Crops Competitiveness Act of

4 2004 (Public Law 108–465; 118 Stat. 3884) is amended

5 by adding at the end the following:

6 ‘‘SEC. 204. GRANT PROGRAM TO IMPROVE MOVEMENT OF

7 SPECIALTY CROPS.

8 ‘‘(a) IN GENERAL.—The Secretary of Agriculture may

9 make grants under this section to an eligible entity de10 scribed in subsection (b)—

11 ‘‘(1) to improve the cost-effective movement of

12 specialty crops to local, regional, national, and inter13 national markets; and

14 ‘‘(2) to address regional intermodal transpor15 tation deficiencies that adversely affect the movement

16 of specialty crops to markets inside or outside the

17 United States.

18 ‘‘(b) ELIGIBLE ENTITIES.—Grants may be made

19 under this section to—

20 ‘‘(1) a State or local government;

21 ‘‘(2) a grower cooperative;

22 ‘‘(3) a State or regional producer or shipper or23 ganization;

24 ‘‘(4) a nonprofit trucking association and their

25 research entities;
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1 ‘‘(5) a combination of the entities described in

2 paragraphs (1) through (4); or

3 ‘‘(6) other entities, as determined by the Sec4 retary.

5 ‘‘(c) MATCHING FUNDS.—As a condition of the receipt

6 of a grant under this section, the recipient of a grant under

7 this section shall contribute an amount of non-Federal

8 funds toward the project for which the grant is provided

9 that is at least equal to the amount of grant funds received

10 by the recipient under this section.

11 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated such sums as are nec13 essary to carry out this section for each of fiscal years 2008

14 through 2012.’’.

15 SEC. 1843. HEALTHY FOOD ENTERPRISE DEVELOPMENT

16 CENTER.

17 Title II of the Specialty Crops Competitiveness Act of

18 2004 (Public Law 108–465; 118 Stat. 3884) (as amended

19 by section 1842) is amended by adding at the end the fol20 lowing:

21 ‘‘SEC. 205. HEALTHY FOOD ENTERPRISE DEVELOPMENT

22 CENTER.

23 ‘‘(a) DEFINITIONS.—In this section:
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1 ‘‘(1) CENTER.—The term ‘Center’ means the

2 healthy food enterprise development center established

3 under subsection (b).

4 ‘‘(2) ELIGIBLEENTITY.—The term ‘eligible enti5 ty’ means—

6 ‘‘(A) a nonprofit organization;

7 ‘‘(B) a cooperative;

8 ‘‘(C) a business;

9 ‘‘(D) an agricultural producer;

10 ‘‘(E) an academic institution;

11 ‘‘(F) an individual; and

12 ‘‘(G) such other entities as the Secretary

13 may designate.

14 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

15 the Secretary of Agriculture.

16 ‘‘(4) UNDERSERVED COMMUNITY.—The term ‘un17 derserved community’ means a community (including

18 an urban or rural community and an Indian tribal

19 community) that, as determined by the Secretary,

20 has—

21 ‘‘(A) limited access to affordable, healthy

22 foods, including fresh fruits and vegetables;

23 ‘‘(B) a high incidence of a diet-related dis24 ease (including obesity) as compared to the na25 tional average;
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1 ‘‘(C) a high rate of hunger or food insecu2 rity; or

3 ‘‘(D) severe or persistent poverty.

4 ‘‘(b) CENTER.—The Secretary, acting through the Ag5 ricultural Marketing Service, shall offer to enter into a con6 tract with a nonprofit organization to establish and support

7 a healthy food enterprise development center to increase ac8 cess to healthy, affordable foods, such as fresh fruit and vege9 tables, particularly for school-aged children and individuals

10 in low-income communities.

11 ‘‘(c) ACTIVITIES.—

12 ‘‘(1) PURPOSE.—The purpose of the Center is to

13 increase access to healthy affordable foods, including

14 locally produced agricultural products, to underserved

15 communities.

16 ‘‘(2) TECHNICAL ASSISTANCE AND INFORMA17 TION.—The Center shall collect, develop, and provide

18 technical assistance and information to small and

19 mid-sized agricultural producers, food wholesalers and

20 retailers, schools, and other individuals and entities

21 regarding best practices and the availability of assist22 ance for aggregating, storing, processing, and mar23 keting locally produced agricultural products and in24 creasing the availability of the products in under25 served communities.
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1 ‘‘(d) AUTHORITY TO SUBGRANT.—The Center may

2 provide subgrants to eligible entities to carry out feasibility

3 studies to establish businesses to carry out the purposes of

4 this section.

5 ‘‘(e) PRIORITY.—In providing technical assistance and

6 grants under subsections (c)(2) and (d), the Center shall

7 give priority to applications that have components that

8 will—

9 ‘‘(1) benefit underserved communities; and

10 ‘‘(2) develop market opportunities for small and

11 mid-sized farm and ranch operations.

12 ‘‘(f) REPORT.—For each fiscal year for which the non13 profit organization described in subsection (b) receives

14 funds, the organization shall submit to the Secretary a re15 port describing the activities carried out in the previous fis16 cal year, including—

17 ‘‘(1) a description of technical assistance pro18 vided;

19 ‘‘(2) the total number and a description of the

20 subgrants provided under subsection (d);

21 ‘‘(3) a complete listing of cases in which the ac22 tivities of the Center have resulted in increased access

23 to healthy, affordable foods, such as fresh fruit and

24 vegetables, particularly for school-aged children and

25 individuals in low-income communities; and
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1 ‘‘(4) a determination of whether the activities

2 identified in paragraph (3) are sustained in the years

3 following the initial provision of technical assistance

4 and subgrants under this section.

5 ‘‘(g) COMPETITIVE AWARD PROCESS.—The Secretary

6 shall use a competitive process to award funds to establish

7 the Center.

8 ‘‘(h) FUNDING.—Out of any funds in the Treasury not

9 otherwise appropriated, the Secretary of the Treasury shall

10 transfer to the Secretary to carry out this section—

11 ‘‘(1) $1,000,000 for fiscal year 2009; and

12 ‘‘(2) $2,000,000 for each of fiscal years 2010

13 through 2012.’’.

14 PART V—MISCELLANEOUS

15 SEC. 1851. CLEAN PLANT NETWORK.

16 (a) IN GENERAL.—The Secretary shall establish a pro17 gram to be known as the ‘‘National Clean Plant Network’’

18 (referred to in this section as the ‘‘Program’’).

19 (b) REQUIREMENTS.—Under the Program, the Sec20 retary shall establish a network of clean plant centers for

21 diagnostic and pathogen elimination services to—

22 (1) produce clean propagative plant material;

23 and

24 (2) maintain blocks of pathogen-tested plant ma25 terial in sites located throughout the United States.
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1 (c) AVAILABILITY OF CLEAN PLANT SOURCE MATE2 RIAL.—Clean plant source material may be made available

3 to—

4 (1) a State for a certified plant program of the

5 State; and

6 (2) private nurseries and producers.

7 (d) CONSULTATION AND COLLABORATION.—In car8 rying out the Program, the Secretary shall—

9 (1) consult with State departments of agriculture

10 and land grant universities; and

11 (2) to the extent practicable and with input from

12 the appropriate State officials and industry rep13 resentatives, use existing Federal or State facilities to

14 serve as clean plant centers.

15 (e) FUNDING.—Of the funds of the Commodity Credit

16 Corporation, the Secretary shall use to carry out the Pro17 gram $4,000,000 for each of fiscal years 2008 through 2012.

18 SEC. 1852. MARKET LOSS ASSISTANCE FOR ASPARAGUS

19 PRODUCERS.

20 (a) IN GENERAL.—As soon as practicable after the

21 date of enactment of this Act, the Secretary shall make pay22 ments to producers of the 2007 crop of asparagus for market

23 loss resulting from imports during the 2004 through 2007

24 crop years.
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1 (b) PAYMENT RATE.—The payment rate for a payment

2 under this section shall be based on the reduction in revenue

3 received by asparagus producers associated with imports

4 during the 2004 through 2007 crop years.

5 (c) PAYMENT QUANTITY.—The payment quantity for

6 asparagus for which the producers on a farm are eligible

7 for payments under this section shall be equal to the average

8 quantity of the 2003 crop of asparagus produced by pro9 ducers on the farm.

10 (d) FUNDING.—

11 (1) IN GENERAL.—Subject to paragraph (2), the

12 Secretary shall make available $15,000,000 of the

13 funds of the Commodity Credit Corporation to carry

14 out a program to provide market loss payments to

15 producers of asparagus under this section.

16 (2) ALLOCATION.—Of the amount made avail17 able under paragraph (1), the Secretary shall use—

18 (A) $7,500,000 to make payments to pro19 ducers of asparagus for the fresh market; and

20 (B) $7,500,000 to make payments to pro21 ducers of asparagus for the processed or frozen

22 market.
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1 SEC. 1853. MUSHROOM PROMOTION, RESEARCH, AND CON2 SUMER INFORMATION.

3 (a) REGIONS AND MEMBERS.—Section 1925(b)(2) of

4 the Mushroom Promotion, Research, and Consumer Infor5 mation Act of 1990 (7 U.S.C. 6104(b)(2)) is amended—

6 (1) in subparagraph (B), by striking ‘‘4 regions’’

7 and inserting ‘‘3 regions’’;

8 (2) in subparagraph (D), by striking

9 ‘‘35,000,000 pounds’’ and inserting ‘‘50,000,000

10 pounds’’; and

11 (3) by striking subparagraph (E), and inserting

12 the following:

13 ‘‘(E) ADDITIONAL MEMBERS.—In addition

14 to the members appointed pursuant to para15 graph (1), and subject to the 9-member limita16 tion on members on the Council provided in that

17 paragraph, the Secretary shall appoint addi18 tional members to the Council from a region that

19 attains additional pounds of production of

20 mushrooms as follows:

21 ‘‘(i) If the annual production of the re22 gion is greater than 110,000,000 pounds,

23 but not more than 180,000,000 pounds, the

24 region shall be represented by 1 additional

25 member.
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1 ‘‘(ii) If the annual production of the

2 region is greater than 180,000,000 pounds,

3 but not more than 260,000,000 pounds, the

4 region shall be represented by 2 additional

5 members.

6 ‘‘(iii) If the annual production of the

7 region is greater than 260,000,000 pounds,

8 the region shall be represented by 3 addi9 tional members.’’.

10 (b) POWERS AND DUTIES OF COUNCIL.—Section

11 1925(c) of the Mushroom Promotion, Research, and Con12 sumer Information Act of 1990 (7 U.S.C. 6104(c)) is

13 amended—

14 (1) by redesignating paragraphs (6), (7), and (8)

15 as paragraphs (7), (8), and (9), respectively; and

16 (2) by inserting after paragraph (5) the fol17 lowing:

18 ‘‘(6) to develop food safety programs, including

19 good agricultural practices and good handling prac20 tices or related activities for mushrooms;’’.

21 SEC. 1854. NATIONAL HONEY BOARD.

22 Section 7(c) of the Honey Research, Promotion, and

23 Consumer Information Act (7 U.S.C. 4606(c)) is amended

24 by adding at the end the following:

25 ‘‘(12) REFERENDUM REQUIREMENT.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding any

2 other provision of law, subject to subparagraph

3 (B), the order providing for the establishment

4 and operation of the Honey Board in effect on

5 the date of enactment of this paragraph shall

6 continue in force, and the Secretary shall not

7 schedule or conduct any referendum on the con8 tinuation or termination of the order, until the

9 Secretary first conducts, at the earliest prac10 ticable date, concurrent referenda among all eli11 gible producers, importers, packers, and handlers

12 of honey for the purpose of ascertaining whether

13 eligible producers, importers, packers, and han14 dlers of honey approve of 1 or more orders to es15 tablish successor marketing boards for honey.

16 ‘‘(B) REQUIREMENTS.—In conducting con17 current referenda under subparagraph (A), the

18 Secretary shall ensure that—

19 ‘‘(i) a referendum of United States

20 honey producers for the establishment of a

21 marketing board solely for United States

22 honey producers is included in the process;

23 and

24 ‘‘(ii) the rights and interests of honey

25 producers, importers, packers, and handlers
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1 of honey are protected in the transition to

2 any new marketing board.’’.

3 SEC. 1855. IDENTIFICATION OF HONEY.

4 Section 203(h) of the Agricultural Marketing Act of

5 1946 (7 U.S.C. 1622(h)) is amended—

6 (1) by designating the first through sixth sen7 tences as paragraphs (1), (2)(A), (2)(B), (3), (4), and

8 (5), respectively; and

9 (2) by adding at the end the following:

10 ‘‘(6) IDENTIFICATION OF HONEY.—The use of a

11 label or advertising material on, or in conjunction

12 with, packaged honey that bears any official certifi13 cate of quality, grade mark or statement, continuous

14 inspection mark or statement, sampling mark or

15 statement, or any combination of the certificates,

16 marks, or statements of the Department of Agriculture

17 shall be considered a deceptive practice that is prohib18 ited under this Act unless there appears legibly and

19 permanently in close proximity to the certificate,

20 mark, or statement, and in at least a comparable size,

21 the 1 or more names of the 1 or more countries of ori22 gin of the lot or container of honey, preceded by

23 ‘Product of’ or other words of similar meaning.’’.
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1 SEC. 1856. EXPEDITED MARKETING ORDER FOR HASS AVO2 CADOS FOR GRADES AND STANDARDS AND

3 OTHER PURPOSES.

4 (a) IN GENERAL.—The Secretary shall initiate proce5 dures under the Agricultural Adjustment Act (7 U.S.C. 601

6 et seq.), reenacted with amendments by the Agricultural

7 Marketing Agreement Act of 1937, to determine whether it

8 would be appropriate to establish a Federal marketing order

9 for Hass avocados relating to grades and standards and for

10 other purposes under that Act.

11 (b) EXPEDITED PROCEDURES.—

12 (1) PROPOSAL FOR AN ORDER.—An organization

13 of domestic avocado producers in existence on the date

14 of enactment of this Act may request the issuance of,

15 and submit to the Secretary a proposal for, an order

16 described in subsection (a).

17 (2) PUBLICATION OF PROPOSAL.—Not later than

18 60 days after the date on which the Secretary receives

19 a proposed order under paragraph (1), the Secretary

20 shall initiate procedures described in subsection (a) to

21 determine whether the proposed order should proceed.

22 (c) EFFECTIVE DATE.—Any order issued under this

23 section shall become effective not later than 15 months after

24 the date on which the Secretary initiates procedures under

25 the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), re-
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1 enacted with amendments by the Agricultural Marketing

2 Agreement Act of 1937.

3 Subtitle G—Risk Management

4 SEC. 1901. DEFINITION OF ORGANIC CROP.

5 Section 502(b) of the Federal Crop Insurance Act (7

6 U.S.C. 1502(b)) is amended—

7 (1) by redesignating paragraphs (7) and (8) as

8 paragraphs (8) and (9), respectively; and

9 (2) by inserting after paragraph (6) the fol10 lowing:

11 ‘‘(7) ORGANIC CROP.—The term ‘organic crop’

12 means an agricultural commodity that is organically

13 produced consistent with section 2103 of the Organic

14 Foods Production Act of 1990 (7 U.S.C. 6502).’’.

15 SEC. 1902. GENERAL POWERS.

16 (a) IN GENERAL.—Section 506 of the Federal Crop In17 surance Act (7 U.S.C. 1506) is amended—

18 (1) in the first sentence of subsection (d), by

19 striking ‘‘The Corporation’’ and inserting ‘‘Subject to

20 section 508(j)(2)(A), the Corporation’’; and

21 (2) by striking subsection (n).

22 (b) CONFORMING AMENDMENTS.—

23 (1) Section 506 of the Federal Crop Insurance

24 Act (7 U.S.C. 1506) is amended by redesignating sub-
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1 sections (o), (p), and (q) as subsections (n), (o), and

2 (p), respectively.

3 (2) Section 521 of the Federal Crop Insurance

4 Act (7 U.S.C. 1521) is amended by striking the last

5 sentence.

6 SEC. 1903. REDUCTION IN LOSS RATIO.

7 (a) PROJECTED LOSS RATIO.—Subsection (n)(2) of

8 section 506 of the Federal Crop Insurance Act (7 U.S.C.

9 1506) (as redesignated by section 1902(b)(1)) is amended—

10 (1) in the paragraph heading, by striking ‘‘AS

11 OF OCTOBER 1, 1998’’;

12 (2) by striking ‘‘, on and after October 1, 1998,’’;

13 and

14 (3) by striking ‘‘1.075’’ and inserting ‘‘1.0’’.

15 (b) PREMIUMS REQUIRED.—Section 508(d)(1) of the

16 Federal Crop Insurance Act (7 U.S.C. 1508(d)(1)) is

17 amended by striking ‘‘not greater than’’ and all that follows

18 and inserting ‘‘not greater than—

19 ‘‘(A) 1.1 through September 30, 1998;

20 ‘‘(B) 1.075 for the period beginning October

21 1, 1998, and ending on the date of enactment of

22 the Food and Energy Security Act of 2007; and

23 ‘‘(C) 1.0 on and after the date of enactment

24 of that Act.’’.
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1 SEC. 1904. CONTROLLED BUSINESS INSURANCE.

2 Section 508(a) of the Federal Crop Insurance Act (7

3 U.S.C. 1508(a) is amended by adding at the end the fol4 lowing:

5 ‘‘(9) COMMISSIONS.—

6 ‘‘(A) DEFINITION OF IMMEDIATE FAMILY.—

7 In this paragraph, the term ‘immediate family’

8 means a person’s father, mother, stepfather, step9 mother, brother, sister, stepbrother, stepsister,

10 son, daughter, stepson, stepdaughter, grand11 parent, grandson, granddaughter, father-in-law,

12 mother-in-law, brother-in-law, sister-in-law, son13 in-law, daughter-in-law, the spouse of the fore14 going, and the person’s spouse.

15 ‘‘(B) PROHIBITION.—No person may receive

16 a commission or share of a commission for any

17 policy or plan of insurance offered under this

18 Act in which the person has a substantial bene19 ficial interest or in which a member of the per20 son’s immediate family has a substantial bene21 ficial interest if, in a calendar year, the aggre22 gate of the commissions exceeds 30 percent of the

23 aggregate of all commissions received by the per24 son for any policy or plan of insurance offered

25 under this Act.
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1 ‘‘(C) REPORTING.—On the completion of the

2 reinsurance year, any person that received a

3 commission or share of a commission for any

4 policy or plan of insurance offered under this

5 Act in the prior calendar year shall certify to

6 applicable approved insurance providers that the

7 person received the commissions in compliance

8 with this paragraph.

9 ‘‘(D) SANCTIONS.—The requirements and

10 sanctions prescribed in section 515(h) shall

11 apply to the prosecution of a violation of this

12 paragraph.

13 ‘‘(E) APPLICABILITY.—

14 ‘‘(i) IN GENERAL.—Sanctions for vio15 lations under this paragraph shall only

16 apply to the person directly responsible for

17 the certification required under subpara18 graph (C) or the failure to comply with the

19 requirements of this paragraph.

20 ‘‘(ii) PROHIBITION.—No sanctions

21 shall apply with respect to the policy or

22 plans of insurance upon which commissions

23 are received, including the reinsurance for

24 those policies or plans.’’.
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1 SEC. 1905. ADMINISTRATIVE FEE.

2 Section 508(b)(5) of the Federal Crop Insurance Act

3 (7 U.S.C. 1508(b)(5)) is amended—

4 (1) in subparagraph (A), by striking ‘‘$100’’ and

5 inserting ‘‘$200’’; and

6 (2) in subparagraph (B)—

7 (A) by striking ‘‘PAYMENT ON BEHALF OF

8 PRODUCERS’’ and inserting ‘‘PAYMENT OF CATA9 STROPHIC RISK PROTECTION FEE ON BEHALF OF

10 PRODUCERS’’;

11 (B) in clause (i)—

12 (i) by striking ‘‘or other payment’’;

13 and

14 (ii) by striking ‘‘with catastrophic risk

15 protection or additional coverage’’ and in16 serting ‘‘through the payment of cata17 strophic risk protection administrative

18 fees’’;

19 (C) by striking clauses (ii) and (vi);

20 (D) by redesignating clauses (iii), (iv), and

21 (v) as clauses (ii), (iii), and (iv), respectively;

22 (E) in clause (iii) (as so redesignated), by

23 striking ‘‘A policy or plan of insurance’’ and in24 serting ‘‘Catastrophic risk protection coverage’’;

25 and

26 (F) in clause (iv) (as so redesignated)—
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1 (i) by striking ‘‘or other arrangement

2 under this subparagraph’’; and

3 (ii) by striking ‘‘additional’’.

4 SEC. 1906. TIME FOR PAYMENT.

5 Section 508 of the Federal Crop Insurance Act (7

6 U.S.C. 1508) is amended—

7 (1) in subsection (d), by adding at the end the

8 following:

9 ‘‘(4) TIMEFOR PAYMENT.—Effective beginning

10 with the 2012 reinsurance year, a producer that ob11 tains a policy or plan of insurance under this title

12 shall submit the required premium not later than

13 September 30 of the year for which the plan or policy

14 of insurance was obtained.’’; and

15 (2) in subsection (k)(4), by adding at the end the

16 following:

17 ‘‘(D) TIME FOR REIMBURSEMENT.—Effec18 tive beginning with the 2012 reinsurance year,

19 the Corporation shall reimburse approved insur20 ance providers and agents for the allowable ad21 ministrative and operating costs of the providers

22 and agents as soon as practicable after October

23 1 (but not later than October 31) of the reinsur24 ance year for which reimbursements are

25 earned.’’.
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1 SEC. 1907. SURCHARGE PROHIBITION.

2 Section 508(d) of the Federal Crop Insurance Act (7

3 U.S.C. 1508(d)) (as amended by section 1906(1)) is amend4 ed by adding at the end the following:

5 ‘‘(5) SURCHARGEPROHIBITION.—

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

7 subparagraph (B), the Corporation may not re8 quire producers to pay a premium surcharge for

9 using scientifically-sound sustainable and or10 ganic farming practices and systems.

11 ‘‘(B) EXCEPTION.—

12 ‘‘(i) IN GENERAL.—A surcharge may

13 be required for individual organic crops on

14 the basis of significant, consistent, and sys15 temic increased risk factors (including loss

16 history) demonstrated by published crop17 ping system research (as applied to crop

18 types and regions) and other relevant

19 sources of information.

20 ‘‘(ii) CONSULTATION.—The Corpora21 tion shall evaluate the reliability of infor22 mation described in clause (i) in consulta23 tion with independent experts in the field.’’.
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1 SEC. 1908. PREMIUM REDUCTION PLAN.

2 Section 508(e) of Federal Crop Insurance Act (7

3 U.S.C. 1508(e)) is amended by striking paragraph (3) and

4 inserting the following:

5 ‘‘(3) DISCOUNT STUDY.—

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

7 commission an entity independent of the crop in8 surance industry (with expertise that includes

9 traditional crop insurance) to study the feasi10 bility of permitting approved insurance pro11 viders to provide discounts to producers pur12 chasing crop insurance coverage without under13 mining the viability of the Federal crop insur14 ance program.

15 ‘‘(B) COMPONENTS.—The study should

16 include—

17 ‘‘(i) an evaluation of the operation of

18 a premium reduction plan that examines—

19 ‘‘(I) the clarity, efficiency, and ef20 fectiveness of the statutory language

21 and related regulations;

22 ‘‘(II) whether the regulations frus23 trated the goal of offering producers

24 upfront, predictable, and reliable pre25 mium discount payments; and
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1 ‘‘(III) whether the regulations

2 provided for reasonable, cost-effective

3 oversight by the Corporation of pre4 mium discounts offered by approved

5 insurance providers, including—

6 ‘‘(aa) whether the savings

7 were generated from verifiable cost

8 efficiencies adequate to offset the

9 cost of discounts paid; and

10 ‘‘(bb) whether appropriate

11 control was exercised to prevent

12 approved insurance providers

13 from preferentially offering the

14 discount to producers of certain

15 agricultural commodities, in cer16 tain regions, or in specific size

17 categories;

18 ‘‘(ii) examination of the impact on

19 producers, the crop insurance industry, and

20 profitability from offering discounted crop

21 insurance to producers;

22 ‘‘(iii) examination of implications for

23 industry concentration from offering dis24 counted crop insurance to producers;
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1 ‘‘(iv) an examination of the desir2 ability and feasibility of allowing other

3 forms of price competition in the Federal

4 crop insurance program;

5 ‘‘(v) a review of the history of commis6 sions paid by crop insurance providers; and

7 ‘‘(vi) recommendations on—

8 ‘‘(I) potential changes to this title

9 that would address the deficiencies in

10 past efforts to provide discounted crop

11 insurance to producers,

12 ‘‘(II) whether approved insurance

13 providers should be allowed to draw on

14 both administrative and operating re15 imbursement and underwriting gains

16 to provide discounted crop insurance to

17 producers; and

18 ‘‘(III) any other action that could

19 increase competition in the crop insur20 ance industry that will benefit pro21 ducers but not undermine the viability

22 of the Federal crop insurance program.

23 ‘‘(C) REQUEST FOR PROPOSALS.—In devel24 oping the request for proposals for the study, the

25 Secretary shall consult with parties in the crop
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1 insurance industry (including producers and ap2 proved insurance providers and agents, includ3 ing providers and agents with experience selling

4 discount crop insurance products).

5 ‘‘(D) REVIEW OF STUDY.—The independent

6 entity selected by Secretary under subparagraph

7 (A) shall seek comments from interested stake8 holders before finalizing the report of the entity.

9 ‘‘(E) REPORT.—Not later than 18 months

10 after the date of enactment of the Food and En11 ergy Security Act of 2007, the Secretary shall

12 submit to the Committee on Agriculture of the

13 House of Representatives and the Committee on

14 Agriculture, Nutrition, and Forestry of the Sen15 ate a report that describes the results and rec16 ommendations of the study.’’.

17 SEC. 1909. ENTERPRISE AND WHOLE FARM UNITS.

18 Section 508(e) of Federal Crop Insurance Act (7

19 U.S.C. 1508(e)) is amended by adding at the end the fol20 lowing:

21 ‘‘(6) ENTERPRISEAND WHOLEFARM UNITS.—

22 ‘‘(A) IN GENERAL.—The Corporation may

23 carry out a pilot program under which the Cor24 poration pays a portion of the premiums for

25 plans or policies of insurance for which the in-
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1 surable unit is defined on a whole farm or enter2 prise unit basis that is higher than would other3 wise be paid in accordance with paragraph (2)

4 for policyholders that convert from a plan or pol5 icy of insurance for which the insurable unit is

6 defined on optional or basic unit basis.

7 ‘‘(B) ELIGIBILITY.—To be eligible to par8 ticipate in a pilot program established under

9 this paragraph, a policyholder shall—

10 ‘‘(i) have purchased additional cov11 erage for the 2005 crop on an optional or

12 basic unit basis for at least 90 percent of

13 the acreage to be covered by enterprise or

14 whole farm unit policy for the current crop;

15 and

16 ‘‘(ii) purchase the enterprise or whole

17 farm unit policy at not less than the highest

18 coverage level that was purchased for the

19 acreage for the 2005 crop.

20 ‘‘(C) AMOUNT.—

21 ‘‘(i) IN GENERAL.—The amount of the

22 premium per acre paid by the Corporation

23 to a policyholder for a policy with an enter24 prise and whole farm unit under this para25 graph shall be, the maximum extent prac-
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1 ticable, equal to the average dollar amount

2 of subsidy per acre paid by the Corporation

3 under paragraph (2) for a basic or optional

4 unit.

5 ‘‘(ii) LIMITATION.—The amount of the

6 premium paid by the Corporation under

7 this paragraph may not exceed the total

8 premium for the enterprise or whole farm

9 unit policy.

10 ‘‘(D) CONVERSION OF PILOT TO A PERMA11 NENT PROGRAM.—Not earlier than 180 days

12 after the date of enactment of this paragraph, the

13 Corporation may convert the pilot program de14 scribed in this paragraph to a permanent pro15 gram if the Corporation has—

16 ‘‘(i) carried out the pilot program;

17 ‘‘(ii) analyzed the results of the pilot

18 program; and

19 ‘‘(iii) submitted to Congress a report

20 describing the results of the analysis.’’.

21 SEC. 1910. DENIAL OF CLAIMS.

22 Section 508(j)(2)(A) of the Federal Crop Insurance Act

23 (7 U.S.C. 1508(j)(2)(A)) is amended by inserting ‘‘on behalf

24 of the Corporation’’ after ‘‘approved provider’’.
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1 SEC. 1911. MEASUREMENT OF FARM-STORED COMMODITIES.

2 Section 508(j) of the Federal Crop Insurance Act (7

3 U.S.C. 1508(j)) is amended by adding at the end the fol4 lowing:

5 ‘‘(5) MEASUREMENT OF FARM-STORED COMMOD6 ITIES.—Beginning with the 2009 crop year, for the

7 purpose of determining the amount of any insured

8 production loss sustained by a producer and the

9 amount of any indemnity to be paid under a plan of

10 insurance—

11 ‘‘(A) a producer may elect, at the expense of

12 the producer, to have the Farm Service Agency

13 measure the quantity of the commodity; and

14 ‘‘(B) the results of the measurement shall be

15 used as the evidence of the quantity of the com16 modity that was produced.’’.

17 SEC. 1912. REIMBURSEMENT RATE.

18 Section 508(k)(4) of the Federal Crop Insurance Act

19 (7 U.S.C. 1508(k)(4)) (as amended by section 1906(2)) is

20 amended—

21 (1) in subparagraph (A), by striking ‘‘Except as

22 provided in subparagraph (B)’’ and inserting ‘‘Ex23 cept as otherwise provided in this paragraph’’; and

24 (2) by adding at the end the following:

25 ‘‘(E) REIMBURSEMENT RATE REDUCTION.—

26 For each of the 2009 and subsequent reinsurance
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1 years, the reimbursement rates for administra2 tive and operating costs shall be 2 percentage

3 points below the rates in effect as of the date of

4 enactment of the Food and Energy Security Act

5 of 2007 for all crop insurance policies used to de6 fine loss ratio, except that the reduction shall not

7 apply in a reinsurance year to the total pre8 mium written in a State in which the State loss

9 ratio is greater than 1.2.

10 ‘‘(F) REIMBURSEMENT RATE FOR AREA

11 POLICIES AND PLANS OF INSURANCE.—Notwith12 standing subparagraphs (A) through (E), for

13 each of the 2009 and subsequent reinsurance

14 years, the reimbursement rate for area policies

15 and plans of insurance shall be 17 percent of the

16 premium used to define loss ratio for that rein17 surance year.’’.

18 SEC. 1913. RENEGOTIATION OF STANDARD REINSURANCE

19 AGREEMENT.

20 Section 508(k) of the Federal Crop Insurance Act (7

21 U.S.C. 1508(k)) is amended by adding at the end the fol22 lowing:

23 ‘‘(8) RENEGOTIATION OF STANDARD REINSUR24 ANCE AGREEMENT.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding sec2 tion 536 of the Agricultural Research, Extension,

3 and Education Reform Act of 1998 (7 U.S.C.

4 1506 note; Public Law 105–185) and section 148

5 of the Agricultural Risk Protection Act of 2000

6 (7 U.S.C. 1506 note; Public Law 106–224), the

7 Corporation may renegotiate the financial terms

8 and conditions of each Standard Reinsurance

9 Agreement—

10 ‘‘(i) following the reinsurance year

11 ending June 30, 2012;

12 ‘‘(ii) once during each period of 5 rein13 surance years thereafter; and

14 ‘‘(iii) subject to subparagraph (B), in

15 any case in which the approved insurance

16 providers, as a whole, experience unexpected

17 adverse circumstances, as determined by the

18 Secretary.

19 ‘‘(B) NOTIFICATION REQUIREMENT.—If the

20 Corporation renegotiates a Standard Reinsur21 ance Agreement under subparagraph (A)(iii), the

22 Corporation shall notify the Committee on Agri23 culture of the House of Representatives and the

24 Committee on Agriculture, Nutrition, and For25 estry of the Senate of the renegotiation.
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1 ‘‘(C) CONSULTATION.—The approved insur2 ance providers may confer with each other and

3 collectively with the Corporation during any re4 negotiation under subparagraph (A).’’.

5 SEC. 1914. CHANGE IN DUE DATE FOR CORPORATION PAY6 MENTS FOR UNDERWRITING GAINS.

7 Section 508(k) of the Federal Crop Insurance Act (7

8 U.S.C. 1508(k)) (as amended by section 1912) is amended

9 by adding at the end the following:

10 ‘‘(9) DUEDATEFOR PAYMENT OF UNDER11 WRITING GAINS.—Effective beginning with the 2011

12 reinsurance year, the Corporation shall make pay13 ments for underwriting gains under this title on—

14 ‘‘(A) for the 2011 reinsurance year, October

15 1, 2012; and

16 ‘‘(B) for each reinsurance year thereafter,

17 October 1 of the following calendar year.’’.

18 SEC. 1915. ACCESS TO DATA MINING INFORMATION.

19 (a) IN GENERAL.—Section 515(j)(2) of the Federal

20 Crop Insurance Act (7 U.S.C. 1515(j)(2)) is amended—

21 (1) by striking ‘‘The Secretary’’ and inserting

22 the following:

23 ‘‘(A) IN GENERAL.—The Secretary’’; and

24 (2) by adding at the end the following:
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1 ‘‘(B) ACCESS TO DATA MINING INFORMA2 TION.—

3 ‘‘(i) IN GENERAL.—The Secretary shall

4 establish a fee-for-access program under

5 which approved insurance providers pay to

6 the Secretary a user fee in exchange for ac7 cess to the data mining system established

8 under subparagraph (A) for the purpose of

9 assisting in fraud and abuse detection.

10 ‘‘(ii) PROHIBITION.—

11 ‘‘(I) IN GENERAL.—Except as pro12 vided in subclause (II), the Corpora13 tion shall not impose a requirement on

14 approved insurance providers to access

15 the data mining system established

16 under subparagraph (A).

17 ‘‘(II) ACCESS WITHOUT FEE.—If

18 the Corporation requires approved in19 surance providers to access the data

20 mining system established under sub21 paragraph (A), including for quality

22 assurance purposes under the Standard

23 Reinsurance Agreement access will be

24 provided without charge to the extent

25 necessary to fulfill the requirements.
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1 ‘‘(iii) ACCESS LIMITATION.—In estab2 lishing the program under clause (i), the

3 Secretary shall ensure that an approved in4 surance provider has access only to infor5 mation relating to the policies or plans of

6 insurance for which the approved insurance

7 provider provides insurance coverage, in8 cluding any information relating to—

9 ‘‘(I) information of agents and

10 adjusters relating to policies for which

11 the approved insurance provider pro12 vides coverage;

13 ‘‘(II) the other policies or plans of

14 an insured that are insured through

15 another approved insurance providers;

16 and

17 ‘‘(III) the policies or plans of an

18 insured for prior crop insurance

19 years.’’.

20 (b) INSURANCE FUND.—Section 516 of the Federal

21 Crop Insurance Act (7 U.S.C. 1516) is amended—

22 (1) in subsection (b), by adding at the end the

23 following:

24 ‘‘(3) DATA MINING SYSTEM.—The Corporation

25 shall use amounts deposited in the insurance fund es-
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1 tablished under subsection (c) from fees collected

2 under section 515(j)(2)(B) to administer and carry

3 out improvements to the data mining system under

4 that section.’’; and

5 (2) in subsection (c)(1)—

6 (A) by striking ‘‘and civil’’ and inserting

7 ‘‘civil’’; and

8 (B) by inserting ‘‘and fees collected under

9 section 515(j)(2)(B)(i),’’ after ‘‘section 515(h),’’.

10 SEC. 1916. PRODUCER ELIGIBILITY.

11 Section 520(2) of the Federal Crop Insurance Act (7

12 U.S.C. 1520(2)) is amended by inserting ‘‘or is a person

13 who raises livestock owned by other persons (that is not cov14 ered by insurance under this title by another person)’’ after

15 ‘‘sharecropper’’.

16 SEC. 1917. CONTRACTS FOR ADDITIONAL CROP POLICIES.

17 Section 522(c) of the Federal Crop Insurance Act (7

18 U.S.C. 1522) is amended—

19 (1) by redesignating paragraph (10) as para20 graph (14); and

21 (2) by inserting after paragraph (9) the fol22 lowing:

23 ‘‘(10) ENERGY CROP INSURANCE POLICY.—

24 ‘‘(A) DEFINITION OF DEDICATED ENERGY

25 CROP.—In this subsection, the term ‘dedicated
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1 energy crop’ means an annual or perennial crop

2 that—

3 ‘‘(i) is grown expressly for the purpose

4 of producing a feedstock for renewable

5 biofuel, renewable electricity, or bio-based

6 products; and

7 ‘‘(ii) is not typically used for food,

8 feed, or fiber.

9 ‘‘(B) AUTHORITY.—The Corporation shall

10 offer to enter into 1 or more contracts with

11 qualified entities to carry out research and devel12 opment regarding a policy to insure dedicated

13 energy crops.

14 ‘‘(C) RESEARCH AND DEVELOPMENT.—Re15 search and development described in subpara16 graph (B) shall evaluate the effectiveness of risk

17 management tools for the production of dedicated

18 energy crops, including policies and plans of in19 surance that—

20 ‘‘(i) are based on market prices and

21 yields;

22 ‘‘(ii) to the extent that insufficient

23 data exist to develop a policy based on mar24 ket prices and yields, evaluate the policies

25 and plans of insurance based on the use of
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1 weather or rainfall indices to protect the in2 terests of crop producers; and

3 ‘‘(iii) provide protection for production

4 or revenue losses, or both.

5 ‘‘(11) AQUACULTUREINSURANCEPOLICY.—

6 ‘‘(A) DEFINITION OF AQUACULTURE.—In

7 this subsection:

8 ‘‘(i) IN GENERAL.—The term ‘aqua9 culture’ means the propagation and rearing

10 of aquatic species in controlled or selected

11 environments, including shellfish cultivation

12 on grants or leased bottom and ocean

13 ranching.

14 ‘‘(ii) EXCLUSION.—The term ‘aqua15 culture’ does not include the private ocean

16 ranching of Pacific salmon for profit in

17 any State in which private ocean ranching

18 of Pacific salmon is prohibited by any law

19 (including regulations).

20 ‘‘(B) AUTHORITY.—The Corporation shall

21 offer to enter into 1 or more contracts with

22 qualified entities to carry out research and devel23 opment regarding a policy to insure aquaculture

24 operations.
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1 ‘‘(C) RESEARCH AND DEVELOPMENT.—Re2 search and development described in subpara3 graph (B) shall evaluate the effectiveness of risk

4 management tools for the production of fish and

5 other seafood in aquaculture operations, includ6 ing policies and plans of insurance that—

7 ‘‘(i) are based on market prices and

8 yields;

9 ‘‘(ii) to the extent that insufficient

10 data exist to develop a policy based on mar11 ket prices and yields, evaluate how best to

12 incorporate insuring of aquaculture oper13 ations into existing policies covering ad14 justed gross revenue; and

15 ‘‘(iii) provide protection for production

16 or revenue losses, or both.

17 ‘‘(12) ORGANIC CROP PRODUCTION COVERAGE IM18 PROVEMENTS.—

19 ‘‘(A) IN GENERAL.—Not later than 180

20 days after the date of enactment of this para21 graph, the Corporation shall offer to enter into

22 1 or more contracts with qualified entities for the

23 development of improvements in Federal crop in24 surance policies covering organic crops.

25 ‘‘(B) PRICE ELECTION.—
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1 ‘‘(i) IN GENERAL.—The contracts

2 under subparagraph (A) shall include the

3 development of procedures (including any

4 associated changes in policy terms or mate5 rials required for implementation of the

6 procedures) to offer producers of organic

7 crops a price election that would reflect the

8 actual retail or wholesale prices, as appro9 priate, received by producers for organic

10 crops, as established using data collected

11 and maintained by the Agricultural Mar12 keting Service.

13 ‘‘(ii) DEADLINE.—The development of

14 the procedures required under clause (i)

15 shall be completed not later than the date

16 necessary to allow the Corporation to offer

17 the price election—

18 ‘‘(I) beginning in the 2009 rein19 surance year for organic crops with

20 adequate data available; and

21 ‘‘(II) subsequently for additional

22 organic crops as data collection for

23 those organic crops is sufficient, as de24 termined by the Corporation.

25 ‘‘(13) SKIPROW CROPPING PRACTICES.—
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1 ‘‘(A) IN GENERAL.—The Corporation shall

2 offer to enter into a contract with a qualified en3 tity to carry out research into needed modifica4 tions of policies to insure corn and sorghum pro5 duced in the Central Great Plains (as deter6 mined by the Agricultural Research Service)

7 through use of skiprow cropping practices.

8 ‘‘(B) RESEARCH.—Research described in

9 subparagraph (A) shall—

10 ‘‘(i) review existing research on

11 skiprow cropping practices and actual pro12 duction history of producers using skiprow

13 cropping practices; and

14 ‘‘(ii) evaluate the effectiveness of risk

15 management tools for producers using

16 skiprow cropping practices, including—

17 ‘‘(I) the appropriateness of rules

18 in existence as of the date of enactment

19 of this paragraph relating to the deter20 mination of acreage planted in

21 skiprow patterns; and

22 ‘‘(II) whether policies for crops

23 produced through skiprow cropping

24 practices reflect actual production ca25 pabilities.’’.
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1 SEC. 1918. RESEARCH AND DEVELOPMENT.

2 (a) REIMBURSEMENT AUTHORIZED.—Section 522(b)

3 of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is

4 amended by striking paragraph (1) and inserting the fol5 lowing:

6 ‘‘(1) RESEARCH AND DEVELOPMENT REIMBURSE7 MENT.—The Corporation shall provide a payment to

8 reimburse an applicant for research and development

9 costs directly related to a policy that—

10 ‘‘(A) is submitted to, and approved by, the

11 Board pursuant to a FCIC reimbursement grant

12 under paragraph (7); or

13 ‘‘(B) is—

14 ‘‘(i) submitted to the Board and ap15 proved by the Board under section 508(h)

16 for reinsurance; and

17 ‘‘(ii) if applicable, offered for sale to

18 producers.’’.

19 (b) FCIC REIMBURSEMENT GRANTS.—Section 522(b)

20 of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is

21 amended by adding at the end the following:

22 ‘‘(7) FCIC REIMBURSEMENT GRANTS.—

23 ‘‘(A) GRANTS AUTHORIZED.—The Corpora24 tion shall provide FCIC reimbursement grants to

25 persons (referred to in this paragraph as ‘sub26 mitters’) proposing to prepare for submission to
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1 the Board crop insurance policies and provisions

2 under subparagraphs (A) and (B) of section

3 508(h)(1), that apply and are approved for the

4 FCIC reimbursement grants under this para5 graph.

6 ‘‘(B) SUBMISSION OF APPLICATION.—

7 ‘‘(i) IN GENERAL.—The Board shall re8 ceive and consider applications for FCIC

9 reimbursement grants at least once each

10 year.

11 ‘‘(ii) REQUIREMENTS.—An application

12 to receive a FCIC reimbursement grant

13 from the Corporation shall consist of such

14 materials as the Board may require,

15 including—

16 ‘‘(I) a concept paper that de17 scribes the proposal in sufficient detail

18 for the Board to determine whether the

19 proposal satisfies the requirements of

20 subparagraph (C); and

21 ‘‘(II) a description of—

22 ‘‘(aa) the need for the prod23 uct, including an assessment of

24 marketability and expected de25 mand among affected producers;
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1 ‘‘(bb) support from pro2 ducers, producer organizations,

3 lenders, or other interested par4 ties; and

5 ‘‘(cc) the impact the product

6 would have on producers and on

7 the crop insurance delivery sys8 tem; and

9 ‘‘(III) a statement that no prod10 ucts are offered by the private sector

11 that provide the same benefits and risk

12 management services as the proposal;

13 ‘‘(IV) a summary of data sources

14 available that demonstrate that the

15 product can reasonably be developed

16 and properly rated; and

17 ‘‘(V) an identification of the risks

18 the proposed product will cover and an

19 explanation of how the identified risks

20 are insurable under this title.

21 ‘‘(C) APPROVAL CONDITIONS.—

22 ‘‘(i) IN GENERAL.—A majority vote of

23 the Board shall be required to approve an

24 application for a FCIC reimbursement

25 grant.
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1 ‘‘(ii) REQUIRED FINDINGS.—The

2 Board shall approve the application if the

3 Board finds that—

4 ‘‘(I) the proposal contained in the

5 application—

6 ‘‘(aa) provides coverage to a

7 crop or region not traditionally

8 served by the Federal crop insur9 ance program;

10 ‘‘(bb) provides crop insur11 ance coverage in a significantly

12 improved form;

13 ‘‘(cc) addresses a recognized

14 flaw or problem in the Federal

15 crop insurance program or an ex16 isting product;

17 ‘‘(dd) introduces a signifi18 cant new concept or innovation to

19 the Federal crop insurance pro20 gram; or

21 ‘‘(ee) provides coverage or

22 benefits not available from the

23 private sector;

24 ‘‘(II) the submitter demonstrates

25 the necessary qualifications to complete
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1 the project successfully in a timely

2 manner with high quality;

3 ‘‘(III) the proposal is in the inter4 ests of producers and can reasonably be

5 expected to be actuarially appropriate

6 and function as intended;

7 ‘‘(IV) the Board determines that

8 the Corporation has sufficient available

9 funding to award the FCIC reimburse10 ment grant; and

11 ‘‘(V) the proposed budget and

12 timetable are reasonable.

13 ‘‘(D) PARTICIPATION.—

14 ‘‘(i) IN GENERAL.—In reviewing pro15 posals under this paragraph, the Board

16 may use the services of persons that the

17 Board determines appropriate to carry out

18 expert review in accordance with section

19 508(h).

20 ‘‘(ii) CONFIDENTIALITY.—All proposals

21 submitted under this paragraph shall be

22 treated as confidential in accordance with

23 section 508(h)(4).

24 ‘‘(E) ENTERING INTO AGREEMENT.—Upon

25 approval of an application, the Board shall offer
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1 to enter into an agreement with the submitter for

2 the development of a formal submission that

3 meets the requirements for a complete submission

4 established by the Board under section 508(h).

5 ‘‘(F) FEASIBILITY STUDIES.—

6 ‘‘(i) IN GENERAL.—In appropriate

7 cases, the Corporation may structure the

8 FCIC reimbursement grant to require, as

9 an initial step within the overall process,

10 the submitter to complete a feasibility

11 study, and report the results of the study to

12 the Corporation, prior to proceeding with

13 further development.

14 ‘‘(ii) MONITORING.—The Corporation

15 may require such other reports as the Cor16 poration determines necessary to monitor

17 the development efforts.

18 ‘‘(G) RATES.—Payment for work performed

19 by the submitter under this paragraph shall be

20 based on rates determined by the Corporation for

21 products—

22 ‘‘(i) submitted under section 508(h); or

23 ‘‘(ii) contracted by the Corporation

24 under subsection (c).

25 ‘‘(H) TERMINATION.—
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1 ‘‘(i) IN GENERAL.—The Corporation or

2 the submitter may terminate any FCIC re3 imbursement grant at any time for just

4 cause.

5 ‘‘(ii) REIMBURSEMENT.—If the Cor6 poration or the submitter terminates the

7 FCIC reimbursement grant before final ap8 proval of the product covered by the grant,

9 the submitter shall be entitled to—

10 ‘‘(I) reimbursement of all eligible

11 costs incurred to that point; or

12 ‘‘(II) in the case of a fixed rate

13 agreement, payment of an appropriate

14 percentage, as determined by the Cor15 poration.

16 ‘‘(iii) DENIAL.—If the submitter termi17 nates development without just cause, the

18 Corporation may deny reimbursement or

19 recover any reimbursement already made.

20 ‘‘(I) CONSIDERATION OF PRODUCTS.—The

21 Board shall consider any product developed

22 under this paragraph and submitted to the

23 Board under the rules the Board has established

24 for products submitted under section 508(h).’’.
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1 (c) CONFORMING AMENDMENT.—Section 523(b)(10) of

2 the Federal Crop Insurance Act (7 U.S.C. 1523(b)(10)) is

3 amended by striking ‘‘(other than research and development

4 costs covered by section 522)’’.

5 SEC. 1919. FUNDING FROM INSURANCE FUND.

6 Section 522(e) of the Federal Crop Insurance Act (7

7 U.S.C. 1522(e)) is amended—

8 (1) in paragraph (1), by striking ‘‘$10,000,000’’

9 and all that follows through the end of the paragraph

10 and inserting ‘‘$7,500,000 for fiscal year 2008 and

11 each subsequent fiscal year’’;

12 (2) in paragraph (2)(A), by striking

13 ‘‘$20,000,000 for’’ and all that follows through ‘‘year

14 2004’’ and inserting ‘‘$12,500,000 for fiscal year

15 2008’’; and

16 (3) in paragraph (3), by striking ‘‘the Corpora17 tion may use’’ and all that follows through the end

18 of the paragraph and inserting ‘‘the Corporation may

19 use—

20 ‘‘(A) not more than $5,000,000 for each fis21 cal year to improve program integrity, including

22 by—

23 ‘‘(i) increasing compliance-related

24 training;
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1 ‘‘(ii) improving analysis tools and

2 technology regarding compliance;

3 ‘‘(iii) use of information technology, as

4 determined by the Corporation;

5 ‘‘(iv) identifying and using innovative

6 compliance strategies; and

7 ‘‘(B) any excess amounts to carry out other

8 activities authorized under this section.’’.

9 SEC. 1920. CAMELINA PILOT PROGRAM.

10 (a) IN GENERAL.—Section 523 of the Federal Crop In11 surance Act (7 U.S.C. 1523) is amended by adding at the

12 end the following:

13 ‘‘(f) CAMELINA PILOT PROGRAM.—

14 ‘‘(1) IN GENERAL.—Beginning with the 2008

15 crop year, the Corporation shall establish a pilot pro16 gram under which producers or processors of

17 camelina may propose for approval by the Board

18 policies or plans of insurance for camelina, in accord19 ance with section 508(h).

20 ‘‘(2) DETERMINATION BY BOARD.—The Board

21 shall approve a policy or plan of insurance proposed

22 under paragraph (1) if, as determined by the Board,

23 the policy or plan of insurance—

24 ‘‘(A) protects the interests of producers;

25 ‘‘(B) is actuarially sound; and
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1 ‘‘(C) meets the requirements of this title.’’.

2 (b) NONINSURED CROP ASSISTANCE PROGRAM.—Sec3 tion 196(a)(2) of the Federal Agriculture Improvement and

4 Reform Act of 1996 (7 U.S.C. 7333(a)(2)) is amended by

5 adding at the end the following:

6 ‘‘(D) CAMELINA.—

7 ‘‘(i) IN GENERAL.—For each of crop

8 years 2008 through 2011, the Secretary

9 shall consider camelina to be an eligible

10 crop for purposes of the noninsured crop

11 disaster assistance program under this sec12 tion.

13 ‘‘(ii) LIMITATION.—Producers that are

14 eligible to purchase camelina crop insur15 ance, including camelina crop insurance

16 under a pilot program, shall not be eligible

17 for assistance under this section.’’.

18 SEC. 1921. SESAME INSURANCE PILOT PROGRAM.

19 Section 523 of the Federal Crop Insurance Act (7

20 U.S.C. 1523) is amended by adding at the end the following:

21 ‘‘(g) SESAME INSURANCE PILOT PROGRAM.—

22 ‘‘(1) IN GENERAL.—The Secretary of Agriculture

23 shall establish and carry out a pilot program under

24 which a producer of non-dehiscent sesame under con-
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1 tract may elect to obtain multi-peril crop insurance,

2 as determined by the Secretary.

3 ‘‘(2) TERMS AND CONDITIONS.—The multi-peril

4 crop insurance offered under the sesame insurance

5 pilot program shall—

6 ‘‘(A) be offered through reinsurance ar7 rangements with private insurance companies;

8 ‘‘(B) be actuarially sound; and

9 ‘‘(C) require the payment of premiums and

10 administrative fees by a producer obtaining the

11 insurance.

12 ‘‘(3) LOCATION.—The sesame insurance pilot

13 program shall be carried out only in the State of

14 Texas.

15 ‘‘(4) Relation to Prohibition on Research and

16 Development by Corporation-Section 522(e)(4) of the

17 Federal Crop Insurance Act (7 U.S.C. 1522(e)(4))

18 shall apply with respect to the sesame insurance pilot

19 program.

20 ‘‘(5) DURATION.—The Secretary shall commence

21 the sesame insurance pilot program as soon as prac22 ticable after the date of the enactment of this Act and

23 continue the program through the 2012 crop year.’’
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1 SEC. 1922. RISK MANAGEMENT EDUCATION FOR BEGINNING

2 FARMERS OR RANCHERS.

3 Section 524(a) of the Federal Crop Insurance Act (7

4 U.S.C. 1524(a)) is amended—

5 (1) in paragraph (1), by striking ‘‘paragraph

6 (4)’’ and inserting ‘‘paragraph (5)’’;

7 (2) by redesignating paragraph (4) as para8 graph (5); and

9 (3) by inserting after paragraph (3) the fol10 lowing:

11 ‘‘(4) REQUIREMENTS.—In carrying out the pro12 grams established under paragraphs (2) and (3), the

13 Secretary shall place special emphasis on risk man14 agement strategies, education, and outreach specifi15 cally targeted at—

16 ‘‘(A) beginning farmers or ranchers;

17 ‘‘(B) immigrant farmers or ranchers that

18 are attempting to become established producers

19 in the United States;

20 ‘‘(C) socially disadvantaged farmers or

21 ranchers;

22 ‘‘(D) farmers or ranchers that—

23 ‘‘(i) are preparing to retire; and

24 ‘‘(ii) are using transition strategies to

25 help new farmers or ranchers get started;

26 and
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1 ‘‘(E) new or established farmers or ranchers

2 that are converting production and marketing

3 systems to pursue new markets.’’.

4 SEC. 1923. AGRICULTURAL MANAGEMENT ASSISTANCE.

5 Section 524(b)(4) of the Federal Crop Insurance Act

6 (7 U.S.C. 1524(b)(4)) is amended by adding at end the fol7 lowing:

8 ‘‘(C) COST-SHARING.—The Secretary may

9 provide matching funds to any State described

10 in paragraph (1) that appropriates a portion of

11 the budget of the State to provide financial as12 sistance for producer-paid premiums for crop in13 surance policies reinsured by the Corporation.’’.

14 SEC. 1924. CROP INSURANCE MEDIATION.

15 Section 275 of the Department of Agriculture Reorga16 nization Act of 1994 (7 U.S.C. 6995) is amended—

17 (1) by striking ‘‘If an officer’’ and inserting the

18 following:

19 ‘‘(a) IN GENERAL.—If an officer’’;

20 (2) by striking ‘‘With respect to’’ and inserting

21 the following:

22 ‘‘(b) FARM SERVICE AGENCY.—With respect to’’;

23 (3) by striking ‘‘If a mediation’’; and inserting

24 the following:

25 ‘‘(c) MEDIATION.—If a mediation’’; and
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1 (4) in subsection (c) (as so designated)—

2 (A) by striking ‘‘participant shall be of3 fered’’ and inserting ‘‘participant shall—

4 ‘‘(1) be offered’’; and

5 (B) by striking the period at the end and

6 inserting the following: ‘‘; and

7 ‘‘(2) to the maximum extent practicable, be al8 lowed to use both informal agency review and medi9 ation to resolve disputes under that title.’’.

10 SEC. 1925. DROUGHT COVERAGE FOR AQUACULTURE

11 UNDER NONINSURED CROP ASSISTANCE PRO12 GRAM.

13 Section 196(c)(2) of the Federal Agriculture Improve14 ment and Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is

15 amended—

16 (1) by striking ‘‘On making’’ and inserting the

17 following:

18 ‘‘(A) IN GENERAL.—On making’’; and

19 (2) by adding at the end the following:

20 ‘‘(B) AQUACULTUREPRODUCERS.—On

21 making a determination described in subsection

22 (a)(3) for aquaculture producers, the Secretary

23 shall provide assistance under this section to

24 aquaculture producers from all losses related to

25 drought.’’.
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1 SEC. 1926. INCREASE IN SERVICE FEES FOR NONINSURED

2 CROP ASSISTANCE PROGRAM.

3 Section 196(k)(1) of the Federal Agriculture Improve4 ment and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is

5 amended—

6 (1) in subparagraph (A), by striking ‘‘$100’’ and

7 inserting ‘‘$200’’; and

8 (2) in subparagraph (B)—

9 (A) by striking ‘‘$300’’ and inserting

10 ‘‘$600’’; and

11 (B) by striking ‘‘$900’’ and inserting

12 ‘‘$1,500’’.

13 SEC. 1927. DETERMINATION OF CERTAIN SWEET POTATO

14 PRODUCTION.

15 Section 9001(d) of the U.S. Troop Readiness, Veterans’

16 Care, Katrina Recovery, and Iraq Accountability Appro17 priations Act, 2007 (Public Law 110–28; 121 Stat. 211)

18 is amended—

19 (1) by redesignating paragraph (8) as para20 graph (9); and

21 (2) by inserting after paragraph (7) the fol22 lowing:

23 ‘‘(8) SWEET POTATOES.—

24 ‘‘(A) DATA.—In the case of sweet potatoes,

25 any data obtained under a pilot program car26 ried out by the Risk Management Agency shall
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1 not be considered for the purpose of determining

2 the quantity of production under the crop dis3 aster assistance program established under this

4 section.

5 ‘‘(B) EXTENSION OF DEADLINE.—If this

6 paragraph is not implemented before the sign-up

7 deadline for the crop disaster assistance program

8 established under this section, the Secretary shall

9 extend the deadline for producers of sweet pota10 toes to permit sign-up for the program in ac11 cordance with this paragraph.’’.

12 SEC. 1928. PERENNIAL CROP REPORT.

13 Not later than 180 days after the date of enactment

14 of this Act, the Secretary shall submit to the Committee on

15 Agriculture of the House of Representatives and the Com16 mittee on Agriculture, Nutrition, and Forestry of the Senate

17 a report containing details about activities and administra18 tive options of the Federal Crop Insurance Corporation and

19 Risk Management Agency that address issues relating to—

20 (1) declining yields on the actual production his21 tories of producers; and

22 (2) declining and variable yields for perennial

23 crops, including pecans.
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1 SEC. 1929. MALTING BARLEY.

2 Section 508(m) of the Federal Crop Insurance Act (7

3 U.S.C. 1508(m)) is amended by adding at the end the fol4 lowing:

5 ‘‘(5) SPECIAL PROVISIONS FOR MALTING BAR6 LEY.—The Corporation shall promulgate special pro7 visions under this subsection specific to malting bar8 ley, taking into consideration any changes in quality

9 factors, as required by applicable market conditions.’’.

10 SEC. 1930. DEFINITION OF BASIC UNIT.

11 The Secretary shall not modify the definition of ‘‘basic

12 unit’’ in accordance with the proposed regulations entitled

13 ‘‘Common Crop Insurance Regulations’’ (72 Fed. Reg.

14 28895; relating to common crop insurance regulations) or

15 any successor regulation.

16 TITLE II—CONSERVATION

17 Subtitle A—Definitions

18 SEC. 2001. DEFINITIONS.

19 Section 1201(a) of the Food Security Act of 1985 (16

20 U.S.C. 3801(a)) is amended—

21 (1) by redesignating paragraphs (2) through

22 (11), (12), (13) through (15), and (16), (17), and (18)

23 as paragraphs (3) through (12), (14), (16) through

24 (18), and (20), (22), and (23), respectively;

25 (2) by inserting after paragraph (1) the fol26 lowing:
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1 ‘‘(2) BEGINNING FARMER OR RANCHER.—The

2 term ‘beginning farmer or rancher’ has, to the max3 imum extent practicable, the meaning given the term

4 in section 343(a) of the Consolidated Farm and Rural

5 Development Act (7 U.S.C. 1991(a)), except that the

6 Secretary may include in the definition of the term—

7 ‘‘(A) a fair and reasonable test of net worth;

8 and

9 ‘‘(B) such other criteria as the Secretary de10 termines to be appropriate.’’;

11 (3) by inserting after paragraph (12) (as redes12 ignated by paragraph (1)) the following:

13 ‘‘(13) INDIAN TRIBE.—The term ‘Indian tribe’

14 has the meaning given the term in section 4 of the In15 dian Self-Determination and Education Assistance

16 Act (25 U.S.C. 450b).’’.

17 (4) by inserting after paragraph (14) (as redes18 ignated by paragraph (1)) the following:

19 ‘‘(15) NONINDUSTRIAL PRIVATEFOREST LAND.—

20 The term ‘nonindustrial private forest land’ means

21 rural land, as determined by the Secretary, that—

22 ‘‘(A) has existing tree cover or is suitable

23 for growing trees; and

24 ‘‘(B) is owned by any nonindustrial private

25 individual, group, association, corporation, In-
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1 dian tribe, or other private legal entity that has

2 definitive decisionmaking authority over the

3 land.’’;

4 (5) by inserting after paragraph (18) (as redes5 ignated by paragraph (1)) the following:

6 ‘‘(19) SOCIALLY DISADVANTAGED FARMER OR

7 RANCHER.—The term ‘socially disadvantaged farmer

8 or rancher’ has the meaning given the term in section

9 355(e) of the Consolidated Farm and Rural Develop10 ment Act (7 U.S.C. 2003(e)).’’; and

11 (6) by inserting after paragraph (20) (as redes12 ignated by paragraph (1)) the following:

13 ‘‘(21) TECHNICAL ASSISTANCE.—

14 ‘‘(A) IN GENERAL.—The term ‘technical as15 sistance’ means technical expertise, information,

16 and tools necessary for the conservation of nat17 ural resources on land active in agricultural, for18 estry, or related uses.

19 ‘‘(B) INCLUSIONS.—The term ‘technical as20 sistance’ includes—

21 ‘‘(i) technical services provided directly

22 to farmers, ranchers, and other eligible enti23 ties, such as conservation planning, tech24 nical consultation, and assistance with de-
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1 sign and implementation of conservation

2 practices; and

3 ‘‘(ii) technical infrastructure, includ4 ing activities, processes, tools, and agency

5 functions needed to support delivery of tech6 nical services, such as technical standards,

7 resource inventories, training, data, tech8 nology, monitoring, and effects analyses.’’.

9 Subtitle B—Highly Erodible Land

10 Conservation

11 SEC. 2101. REVIEW OF GOOD FAITH DETERMINATIONS; EX12 EMPTIONS.

13 Section 1212 of the Food Security Act of 1985 (16

14 U.S.C. 3812) is amended by striking subsection (f) and in15 serting the following:

16 ‘‘(f) GRADUATED PENALTIES.—

17 ‘‘(1) INELIGIBILITY.—No person shall become in18 eligible under section 1211 for program loans, pay19 ments, and benefits as a result of the failure of the

20 person to actively apply a conservation plan, if the

21 Secretary determines that the person has acted in

22 good faith and without an intent to violate this sub23 title.
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1 ‘‘(2) ELIGIBLE REVIEWERS.—A determination of

2 the Secretary, or a designee of the Secretary, under

3 paragraph (1) shall be reviewed by the applicable—

4 ‘‘(A) State Executive Director, with the

5 technical concurrence of the State Conserva6 tionist; or

7 ‘‘(B) district director, with the technical

8 concurrence of the area conservationist.

9 ‘‘(3) PERIOD FOR IMPLEMENTATION.—A person

10 who meets the requirements of paragraph (1) shall be

11 allowed a reasonable period of time, as determined by

12 the Secretary, but not to exceed 1 year, during which

13 to implement the measures and practices necessary to

14 be considered to be actively applying the conservation

15 plan of the person.

16 ‘‘(4) PENALTIES.—

17 ‘‘(A) APPLICATION.—This paragraph ap18 plies if the Secretary determines that—

19 ‘‘(i) a person who has failed to comply

20 with section 1211 with respect to highly

21 erodible cropland, and has acted in good

22 faith and without an intent to violate sec23 tion 1211; or

24 ‘‘(ii) the violation—
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1 ‘‘(I) is technical and minor in na2 ture; and

3 ‘‘(II) has a minimal effect on the

4 erosion control purposes of the con5 servation plan applicable to the land

6 on which the violation has occurred.

7 ‘‘(B) REDUCTION.—If this paragraph ap8 plies under subparagraph (A), the Secretary

9 shall, in lieu of applying the ineligibility provi10 sions of section 1211, reduce program benefits de11 scribed in section 1211 that the producer would

12 otherwise be eligible to receive in a crop year by

13 an amount commensurate with the seriousness of

14 the violation, as determined by the Secretary.

15 ‘‘(5) SUBSEQUENT CROP YEARS.—Any person

16 whose benefits are reduced for any crop year under

17 this subsection shall continue to be eligible for all of

18 the benefits described in section 1211 for any subse19 quent crop year if, prior to the beginning of the subse20 quent crop year, the Secretary determines that the

21 person is actively applying a conservation plan ac22 cording to the schedule specified in the plan.’’.
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1 Subtitle C—Wetland Conservation

2 SEC. 2201. REVIEW OF GOOD FAITH DETERMINATIONS.

3 Section 1222(h) of the Food Security Act of 1985 (16

4 U.S.C. 3822(h)) is amended—

5 (1) by redesignating paragraph (2) as para6 graph (3);

7 (2) by inserting after paragraph (1) the fol8 lowing:

9 ‘‘(2) ELIGIBLE REVIEWERS.—A determination of

10 the Secretary, or a designee of the Secretary, under

11 paragraph (1) shall be reviewed by the applicable—

12 ‘‘(A) State Executive Director, with the

13 technical concurrence of the State Conserva14 tionist; or

15 ‘‘(B) district director, with the technical

16 concurrence of the area conservationist.’’; and

17 (3) in paragraph (3) (as redesignated by para18 graph (1)), by inserting ‘‘be’’ before ‘‘actively’’.
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1 Subtitle D—Agricultural Resources

2 Conservation Program

3 CHAPTER 1—COMPREHENSIVE

4 CONSERVATION ENHANCEMENT

5 Subchapter A—Comprehensive Conservation

6 Enhancement Program

7 SEC. 2301. REAUTHORIZATION AND EXPANSION OF PRO8 GRAMS COVERED.

9 (a) IN GENERAL.—Section 1230 of the Food Security

10 Act of 1985 (16 U.S.C. 3830) is amended to read as follows:

11 ‘‘SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCE12 MENT PROGRAM.

13 ‘‘(a) ESTABLISHMENT.—

14 ‘‘(1) IN GENERAL.—During the 1996 through

15 2012 fiscal years, the Secretary shall establish a com16 prehensive conservation enhancement program (re17 ferred to in this section as ‘CCEP’) to be implemented

18 through contracts and the acquisition of easements to

19 assist owners and operators of farms, ranches, and

20 nonindustrial private forestland to conserve and en21 hance soil, water, and related natural resources, in22 cluding grazing land, wetland, and wildlife habitat.

23 ‘‘(2) MEANS.—The Secretary shall carry out the

24 CCEP by—
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1 ‘‘(A) providing for the long-term protection

2 of environmentally-sensitive land; and

3 ‘‘(B) providing technical and financial as4 sistance to farmers, ranchers, and nonindustrial

5 private forest landowners—

6 ‘‘(i) to improve the management and

7 operation of the farms, ranches, and private

8 nonindustrial forest land; and

9 ‘‘(ii) to reconcile productivity and

10 profitability with protection and enhance11 ment of the environment;

12 ‘‘(C) reducing administrative burdens and

13 streamlining application and planning proce14 dures to encourage producer participation; and

15 ‘‘(D) providing opportunities to leverage

16 Federal conservation investments through inno17 vative partnerships with governmental agencies,

18 education institutions, producer groups, and

19 other nongovernmental organizations.

20 ‘‘(3) PROGRAMS.—The CCEP shall consist of—

21 ‘‘(A) the conservation reserve program es22 tablished under subchapter B;

23 ‘‘(B) the wetlands reserve program estab24 lished under subchapter C; and
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1 ‘‘(C) the healthy forests reserve program es2 tablished under subchapter D.

3 ‘‘(b) CONTRACTS AND ENROLLMENTS.—

4 ‘‘(1) IN GENERAL.—In carrying out the CCEP,

5 the Secretary shall enter into contracts with owners

6 and operators and acquire interests in land through

7 easements from owners, as provided in this chapter.

8 ‘‘(2) PRIOR ENROLLMENTS.—Acreage enrolled in

9 the conservation reserve program, wetlands reserve

10 program, or healthy forests reserve program prior to

11 the date of enactment of the Food and Energy Secu12 rity Act of 2007 shall be considered to be placed into

13 the CCEP.

14 ‘‘(c) ADMINISTRATION.—

15 ‘‘(1) LIMITATIONS.—

16 ‘‘(A) IN GENERAL.—The Secretary shall not

17 enroll more than 25 percent of the cropland in

18 any county in the programs administered under

19 subchapters B and C of this chapter.

20 ‘‘(B) EASEMENTS.—Within the limit de21 scribed in subparagraph (A), not more than 10

22 percent of the land described in that subpara23 graph may be subject to an easement acquired

24 under subchapter C of this chapter.
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1 ‘‘(C) EXCLUSION.—Subparagraphs (A) and

2 (B) shall not apply to acres enrolled in the spe3 cial conservation reserve enhancement program

4 described in section 1234(f)(3).

5 ‘‘(D) EXCEPTIONS.—The Secretary may ex6 ceed the limitation in subparagraph (A) if the

7 Secretary determines that—

8 ‘‘(i)(I) the action would not adversely

9 affect the local economy of a county; and

10 ‘‘(II) operators in the county are hav11 ing difficulties complying with conservation

12 plans implemented under section 1212;

13 ‘‘(ii)(I) the acreage to be enrolled could

14 not be used for an agricultural purpose or

15 is precluded from planting as a result of a

16 State or local law, order, or regulation pro17 hibiting water use for agricultural produc18 tion; and

19 ‘‘(II) enrollment in the program would

20 benefit the acreage enrolled or land adjacent

21 to the acreage enrolled; or

22 ‘‘(iii) with respect to cropland in coun23 ties in the State of Washington that exceed

24 the limitation described in subparagraph
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1 (A) as of the date of enrollment in the

2 program—

3 ‘‘(I) the acreage to be enrolled is

4 considered to be essential by Federal or

5 State plans for a sustainable wildlife

6 habitat; and

7 ‘‘(II) enrollment in the program

8 would assist the producer in meeting

9 environmental goals in the Federal or

10 State plans.’’.

11 ‘‘(E) SHELTERBELTS AND WINDBREAKS.—

12 The limitations established under this paragraph

13 shall not apply to cropland that is subject to an

14 easement under chapter 1 or 3 that is used for

15 the establishment of shelterbelts and windbreaks.

16 ‘‘(F) ENROLLMENT.—The Secretary shall

17 enroll acreage described in subparagraph (D)(ii)

18 not later than 180 days after the date of a re19 quest by a landowner to enroll the acreage.

20 ‘‘(G) PAYMENTS.—Rental payments for

21 acreage described in subparagraph (D)(ii) shall

22 be based on the cash rent market value prior to

23 the application of a State or local law, order, or

24 regulation prohibiting water use for agricultural

25 production.
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1 ‘‘(2) TENANT PROTECTION.—Except for a person

2 who is a tenant on land that is subject to a conserva3 tion reserve contract that has been extended by the

4 Secretary, the Secretary shall provide adequate safe5 guards to protect the interests of tenants and share6 croppers, including provisions for sharing, on a fair

7 and equitable basis, in payments under the programs

8 established under this subtitle and subtitles B and C.

9 ‘‘(3) PROVISION OF TECHNICAL ASSISTANCE BY

10 OTHER SOURCES.—

11 ‘‘(A) IN GENERAL.—In the preparation and

12 application of a conservation compliance plan

13 under subtitle B or similar plan required as a

14 condition for assistance from the Department of

15 Agriculture, the Secretary shall permit persons

16 to secure technical assistance from approved

17 sources, as determined by the Secretary, other

18 than the Natural Resources Conservation Serv19 ice.

20 ‘‘(B) REJECTION.—If the Secretary rejects a

21 technical determination made by a source de22 scribed in subparagraph (A), the basis of the de23 termination of the Secretary shall be supported

24 by documented evidence.
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1 ‘‘(4) REGULATIONS.—Not later than 90 days

2 after the date of enactment of the Food and Energy

3 Security Act of 2007, the Secretary shall promulgate

4 regulations to implement the conservation reserve and

5 wetlands reserve programs established under this

6 chapter.’’.

7 (b) CONFORMING AMENDMENTS.—

8 (1) Section 1243 of the Food Security Act of

9 1985 (16 U.S.C. 3843) is repealed.

10 (2) Section 1222(g) of the Food Security Act of

11 1985 (16 U.S.C. 3822(g)) is amended by striking

12 ‘‘1243’’ and inserting ‘‘1230(c)’’.

13 (3) Section 1231(k)(3)(C)(i) of the Food Security

14 Act of 1985 (16 U.S.C. 3831(k)(3)(C)(i)) is amended

15 by striking ‘‘1243(b)’’ and inserting ‘‘1230(c)(1)’’.

16 Subchapter B—Conservation Reserve

17 SEC. 2311. CONSERVATION RESERVE PROGRAM.

18 (a) IN GENERAL.—Section 1231(a) of the Food Secu19 rity Act of 1985 (16 U.S.C. 3831(a)) is amended—

20 (1) by striking ‘‘2007’’ and inserting ‘‘2012’’;

21 and

22 (2) by striking ‘‘and wildlife’’ and inserting

23 ‘‘wildlife, and pollinator habitat’’.

24 (b) ELIGIBLE LAND.—Section 1231(b) of the Food Se25 curity Act of 1985 (16 U.S.C. 3831(b)) is amended—
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1 (1) in paragraph (1)(B), by striking the period

2 at the end and inserting a semicolon;

3 (2) in paragraph (4)—

4 (A) in subparagraph (C), by striking ‘‘; or’’

5 and inserting a semicolon;

6 (B) in subparagraph (D), by striking ‘‘and’’

7 at the end and inserting ‘‘or’’; and

8 (C) in subparagraph (E), by inserting ‘‘in

9 the case of alfalfa or other forage crops,’’ before

10 ‘‘enrollment’’;

11 (3) in paragraph (5), by striking the period at

12 the end and inserting a semicolon; and

13 (4) by adding at the end the following:

14 ‘‘(6) marginal pasture land or hay land that is

15 otherwise ineligible, if the land—

16 ‘‘(A) is to be devoted to native vegetation

17 appropriate to the ecological site; and

18 ‘‘(B) would contribute to the restoration of

19 a long-leaf pine forest or other declining forest

20 ecosystem, as defined by the Secretary; or

21 ‘‘(7) land that is enrolled in the flooded farm22 land program established under section 1235B.’’.

23 (c) ENROLLMENT.—Section 1231(d) of the Food Secu24 rity Act of 1985 (16 U.S.C. 3831(d)) is amended by striking

25 ‘‘up to’’ and all that follows through ‘‘2007’’ and inserting
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1 ‘‘up to 39,200,000 acres in the conservation reserve at any

2 1 time during the 2008 through 2012’’.

3 (d) CONSERVATION PRIORITY AREAS.—Section

4 1231(f)(1) of the Food Security Act of 1985 (16 U.S.C.

5 3831(f)(1)) is amended—

6 (1) by striking ‘‘(Pennsylvania, Maryland, and

7 Virginia)’’; and

8 (2) by inserting ‘‘the Prairie Pothole Region, the

9 Grand Lake St. Mary’s Watershed, the Eastern Snake

10 Plain Aquifer,’’ after ‘‘Sound Region,’’.

11 (e) PILOT PROGRAM FOR ENROLLMENT OF WETLAND

12 AND BUFFER ACREAGE IN CONSERVATION RESERVE.—Sec13 tion 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)

14 is amended by striking subsection (h) and inserting the fol15 lowing:

16 ‘‘(h) PILOT PROGRAM FOR ENROLLMENT OF WET17 LAND, SHALLOW WATER AREAS, AND BUFFER ACREAGE IN

18 CONSERVATION RESERVE.—

19 ‘‘(1) PROGRAM.—

20 ‘‘(A) IN GENERAL.—During the 2008

21 through 2012 calendar years, the Secretary shall

22 carry out a program in each State under which

23 the Secretary shall enroll eligible acreage de24 scribed in paragraph (2).
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1 ‘‘(B) PARTICIPATION AMONG STATES.—The

2 Secretary shall ensure, to the maximum extent

3 practicable, that owners and operators in each

4 State have an equitable opportunity to partici5 pate in the pilot program established under this

6 subsection.

7 ‘‘(2) ELIGIBLEACREAGE.—

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graphs (B) through (E), an owner or operator

10 may enroll in the conservation reserve under this

11 subsection—

12 ‘‘(i)(I) a wetland (including a con13 verted wetland described in section

14 1222(b)(1)(A)) that had a cropping history

15 during at least 3 of the immediately pre16 ceding 10 crop years;

17 ‘‘(II) a shallow water area that was

18 devoted to a commercial pond-raised aqua19 culture operation any year during the pe20 riod of calendar years 2002 through 2007;

21 or

22 ‘‘(III) an agriculture drainage water

23 treatment that receives flow from a row

24 crop agriculture drainage system and is de-
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1 signed to provide nitrogen removal in addi2 tion to other wetland functions; and

3 ‘‘(ii) buffer acreage that—

4 ‘‘(I) is contiguous to a wetland or

5 shallow water area described in clause

6 (i);

7 ‘‘(II) is used to protect the wet8 land or shallow water area described

9 in clause (i); and

10 ‘‘(III) is of such width as the Sec11 retary determines is necessary to pro12 tect the wetland or shallow water area

13 described in clause (i) or to enhance

14 the wildlife benefits, including through

15 restriction of bottomland hardwood

16 habitat, taking into consideration and

17 accommodating the farming practices

18 (including the straightening of bound19 aries to accommodate machinery) used

20 with respect to the cropland that sur21 rounds the wetland or shallow water

22 area.

23 ‘‘(B) EXCLUSIONS.—Except for a shallow

24 water area described in paragraph (2)(A)(i), an
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1 owner or operator may not enroll in the con2 servation reserve under this subsection—

3 ‘‘(i) any wetland, or land on a flood4 plain, that is, or is adjacent to, a perennial

5 riverine system wetland identified on the

6 final national wetland inventory map of the

7 Secretary of the Interior; or

8 ‘‘(ii) in the case of an area that is not

9 covered by the final national inventory

10 map, any wetland, or land on a floodplain,

11 that is adjacent to a perennial stream iden12 tified on a 1–24,000 scale map of the

13 United States Geological Survey.

14 ‘‘(C) PROGRAM LIMITATIONS.—

15 ‘‘(i) IN GENERAL.—The Secretary may

16 enroll in the conservation reserve under this

17 subsection not more than—

18 ‘‘(I) 100,000 acres in any 1 State

19 referred to in paragraph (1); and

20 ‘‘(II) not more than a total of

21 1,000,000 acres.

22 ‘‘(ii) RELATIONSHIP TO PROGRAM MAX23 IMUM.—Subject to clause (iii), for the pur24 poses of subsection (d), any acreage enrolled

25 in the conservation reserve under this sub-
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1 section shall be considered acres maintained

2 in the conservation reserve.

3 ‘‘(iii) RELATIONSHIP TO OTHER EN4 ROLLED ACREAGE.—Acreage enrolled under

5 this subsection shall not affect for any fiscal

6 year the quantity of—

7 ‘‘(I) acreage enrolled to establish

8 conservation buffers as part of the pro9 gram announced on March 24, 1998

10 (63 Fed. Reg. 14109); or

11 ‘‘(II) acreage enrolled into the

12 conservation reserve enhancement pro13 gram announced on May 27, 1998 (63

14 Fed. Reg. 28965).

15 ‘‘(iv) REVIEW; POTENTIAL INCREASE IN

16 ENROLLMENT ACREAGE.—Not later than 3

17 years after the date of enactment of the

18 Food and Energy Security Act of 2007, the

19 Secretary shall—

20 ‘‘(I) conduct a review of the pro21 gram under this subsection with re22 spect to each State that has enrolled

23 land in the program; and

24 ‘‘(II) notwithstanding clause

25 (i)(I), increase the number of acres
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1 that may be enrolled by a State under

2 clause (i)(I) to not more than 150,000

3 acres, as determined by the Secretary.

4 ‘‘(D) OWNER OR OPERATOR LIMITATIONS.—

5 ‘‘(i) WETLAND.—

6 ‘‘(I) IN GENERAL.—Except for a

7 shallow water area described in para8 graph (2)(A)(i), the maximum size of

9 any wetland described in subpara10 graph (A)(i) of an owner or operator

11 enrolled in the conservation reserve

12 under this subsection shall be 40 con13 tiguous acres.

14 ‘‘(II) COVERAGE.—All acres de15 scribed in subclause (I) (including

16 acres that are ineligible for payment)

17 shall be covered by the conservation

18 contract.

19 ‘‘(ii) BUFFER ACREAGE.—The max20 imum size of any buffer acreage described

21 in subparagraph (A)(ii) of an owner or op22 erator enrolled in the conservation reserve

23 under this subsection shall be determined by

24 the Secretary in consultation with the State

25 Technical Committee.
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1 ‘‘(iii) TRACTS.—Except for a shallow

2 water area described in paragraph (2)(A)(i)

3 and buffer acreage, the maximum size of

4 any eligible acreage described in subpara5 graph (A) in a tract (as determined by the

6 Secretary) of an owner or operator enrolled

7 in the conservation reserve under this sub8 section shall be 40 acres.

9 ‘‘(3) DUTIES OF OWNERS AND OPERATORS.—

10 Under a contract entered into under this subsection,

11 during the term of the contract, an owner or operator

12 of a farm or ranch shall agree—

13 ‘‘(A) to restore the hydrology of the wetland

14 within the eligible acreage to the maximum ex15 tent practicable, as determined by the Secretary;

16 ‘‘(B) to establish vegetative cover (which

17 may include emerging vegetation in water and

18 bottomland hardwoods, cypress, and other appro19 priate tree species in shallow water areas) on the

20 eligible acreage, as determined by the Secretary;

21 ‘‘(C) to a general prohibition of commercial

22 use of the enrolled land; and

23 ‘‘(D) to carry out other duties described in

24 section 1232.

25 ‘‘(4) DUTIES OF THE SECRETARY.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraphs (B) and (C), in return for a con3 tract entered into by an owner or operator under

4 this subsection, the Secretary shall make pay5 ments based on rental rates for cropland and

6 provide assistance to the owner or operator in

7 accordance with sections 1233 and 1234.

8 ‘‘(B) CONTINUOUS SIGNUP.—The Secretary

9 shall use continuous signup under section

10 1234(c)(2)(B) to determine the acceptability of

11 contract offers and the amount of rental pay12 ments under this subsection.

13 ‘‘(C) INCENTIVES.—The amounts payable to

14 owners and operators in the form of rental pay15 ments under contracts entered into under this

16 subsection shall reflect incentives that are pro17 vided to owners and operators to enroll

18 filterstrips in the conservation reserve under sec19 tion 1234.’’.

20 (f) BALANCEOF NATURAL RESOURCE PURPOSES.—

21 Section 1231(j) of the Food Security Act of 1985 (16 U.S.C.

22 3831(j)) is amended by striking ‘‘and wildlife’’ and insert23 ing ‘‘wildlife, and pollinator’’.
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1 (g) DUTIES OF PARTICIPANTS.—Section 1232(a) of the

2 Food Security Act of 1985 (16 U.S.C. 3832(a)) is

3 amended—

4 (1) in paragraph (4)—

5 (A) by redesignating subparagraphs (A)

6 and (B) as subparagraphs (B) and (C), respec7 tively; and

8 (B) by inserting before subparagraph (B)

9 (as so redesignated) the following:

10 ‘‘(A) approved vegetative cover shall encour11 age the planting of native species and restoration

12 of biodiversity;’’;

13 (2) by redesignating paragraphs (5) through (10)

14 as paragraphs (6) through (11), respectively; and

15 (3) by inserting after paragraph (4) the fol16 lowing:

17 ‘‘(5) to undertake active management on the

18 land as needed throughout the term of the contract to

19 implement the conservation plan;’’.

20 (h) MANAGED HARVESTING AND GRAZING.—Section

21 1232(a)(7) of the Food Security Act of 1985 (16 U.S.C.

22 3832(a)(7)) is amended—

23 (1) in the matter preceding subparagraph (A),

24 by inserting ‘‘and brood rearing’’ after ‘‘habitat dur25 ing nesting’’; and
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1 (2) in subparagraph (A), by striking ‘‘biomass)’’

2 and inserting ‘‘biomass and prescribed grazing for the

3 control of invasive species), if such activity is per4 mitted and consistent with the conservation plan de5 scribed in subsection (b)(1)(A))’’.

6 (i) CONSERVATION PLANS.—Section 1232(b)(1)(A) of

7 the Food Security Act of 1985 (16 U.S.C. 3832(b)(1)(A))

8 is amended by striking ‘‘contract; and’’ and inserting the

9 following: ‘‘contract that are—

10 ‘‘(i) compatible with the conservation

11 and improvement of soil, water, and wild12 life and wildlife habitat;

13 ‘‘(ii) clearly described and apply

14 throughout the duration of the contract;

15 ‘‘(iii) actively managed by the owner

16 or operator that entered into the contract;

17 and

18 ‘‘(iv) consistent with local active man19 agement conservation measures and prac20 tices, as determined by the Secretary; and’’.

21 (j) ACCEPTANCE OF CONTRACT OFFERS.—Section

22 1234(c) of the Food Security Act of 1985 (16 U.S.C.

23 3834(c)) is amended—

24 (1) by striking paragraph (3) and inserting the

25 following:
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1 ‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.—

2 ‘‘(A) EVALUATION OF OFFERS.—In deter3 mining the acceptability of contract offers, the

4 Secretary may take into consideration the extent

5 to which enrollment of the land that is the sub6 ject of the contract offer would improve soil re7 sources, water quality, pollinator, fish, or wild8 life habitat, or provide other environmental bene9 fits.

10 ‘‘(B) LOCAL PREFERENCE.—In determining

11 the acceptability of contract offers for new enroll12 ments if, as determined by the Secretary, the

13 land would provide at least equivalent conserva14 tion benefits to land under competing offers, the

15 Secretary shall, to the maximum extent prac16 ticable, accept an offer from an owner or oper17 ator that is a resident of the county in which the

18 land is located or of a contiguous county.’’; and

19 (2) by adding at the end the following:

20 ‘‘(5) RENTAL RATES.—

21 ‘‘(A) ANNUAL ESTIMATES.—Not later than

22 1 year after the date of enactment of this para23 graph, the Secretary (acting through the Na24 tional Agricultural Statistics Service) shall con25 duct an annual survey of per acre estimates of
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1 county average market dryland and irrigated

2 cash rental rates for cropland and pastureland

3 in all counties or equivalent subdivisions within

4 each State that have 20,000 acres or more of

5 cropland and pastureland.

6 ‘‘(B) PUBLIC AVAILABILITY OF ESTI7 MATES.—The estimates derived from the annual

8 survey conducted under subparagraph (A) shall

9 be maintained on a website of the Department of

10 Agriculture for use by the general public.’’.

11 (k) EARLY TERMINATION BY OWNER OR OPERATOR.—

12 Section 1235(e)(1) of the Food Security Act of 1985 (16

13 U.S.C. 3835(e)(1)) is amended by striking subparagraph

14 (A) and inserting the following:

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

16 allow a participant to terminate a conservation

17 reserve contract at any time if, as determined by

18 the Secretary—

19 ‘‘(i) the participant entered into a con20 tract under this subchapter before January

21 1, 1995, and the contract has been in effect

22 for at least 5 years; or

23 ‘‘(ii) in the case of a participant who

24 is disabled (as defined in section 72(m)(7)

25 of the Internal Revenue Code of 1986) or re-
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1 tired from farming or ranching, the partici2 pant has endured financial hardship as a

3 result of the taxation of rental payments re4 ceived.’’.

5 SEC. 2312. FLOODED FARMLAND PROGRAM.

6 Subchapter B of chapter 1 of subtitle D of title XII

7 of the Food Security Act of 1985 (16 U.S.C. 3831a et seq.)

8 is amended by adding at the end the following:

9 ‘‘SEC. 1235B. FLOODED FARMLAND PROGRAM.

10 ‘‘(a) DEFINITIONS.—In this section:

11 ‘‘(1) CLOSED BASIN LAKE OR POTHOLE.—The

12 term ‘closed basin lake or pothole’ means a naturally

13 occurring lake, pond, pothole, or group of potholes

14 within a tract that—

15 ‘‘(A) covered, on average, at least 5 acres in

16 surface area during the preceding 3 crop years,

17 as determined by the Secretary; and

18 ‘‘(B) has no natural outlet.

19 ‘‘(2) TRACT.—The term ‘tract’ has the meaning

20 given the term by the Secretary.

21 ‘‘(b) PROGRAM.—

22 ‘‘(1) IN GENERAL.—Notwithstanding any other

23 provision of law (including regulations), as part of

24 the conservation reserve program established under

25 this subchapter, the Secretary shall offer to enter into
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1 contracts under which the Secretary shall permit the

2 enrollment in the conservation reserve of eligible crop3 land and grazing land that has been flooded by the

4 natural overflow of a closed basin lake or pothole lo5 cated within the Prairie Pothole Region of the north6 ern Great Plains priority area (as determined by the

7 Secretary, by regulation).

8 ‘‘(2) EXTENSIONS.—The Secretary may offer to

9 extend a contract entered into under paragraph (1) if

10 the Secretary determines that conditions persist that

11 make cropland or grazing land covered by the con12 tract and eligible for entry into the program under

13 this section.

14 ‘‘(c) CONTINUOUS SIGNUP.—The Secretary shall offer

15 the program under this section through continuous signup

16 under this subchapter.

17 ‘‘(d) ELIGIBILITY.—

18 ‘‘(1) IN GENERAL.—To be eligible to enter into a

19 contract under subsection (b), the owner shall own

20 land that, as determined by the Secretary—

21 ‘‘(A) during the 3 crop years preceding

22 entry into the contract, was rendered incapable

23 of use for the production of an agricultural com24 modity or for grazing purposes; and
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1 ‘‘(B) prior to the natural overflow of a

2 closed basin lake or pothole caused by a period

3 of precipitation in excess of historical patterns,

4 had been consistently used for the production of

5 crops or as grazing land.

6 ‘‘(2) INCLUSIONS.—Land described in paragraph

7 (1) shall include—

8 ‘‘(A) land that has been flooded as the result

9 of the natural overflow of a closed basin lake or

10 pothole;

11 ‘‘(B) land that has been rendered inacces12 sible due to flooding as the result of the natural

13 overflow of a closed basin lake or pothole; and

14 ‘‘(C) a reasonable quantity of additional

15 land adjoining the flooded land that would en16 hance the conservation or wildlife value of the

17 tract, as determined by the Secretary.

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

19 establish—

20 ‘‘(A) reasonable minimum acreage levels for

21 individual parcels of land that may be included

22 in a contract entered into under this section; and

23 ‘‘(B) the location and area of adjoining

24 flooded land that may be included in a contract

25 entered into under this section.
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1 ‘‘(e) PAYMENTS.—

2 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

3 rate of an annual rental payment under this section,

4 as determined by the Secretary—

5 ‘‘(A) shall be based on the rental rate under

6 this subchapter for cropland, and an appropriate

7 rental rate for pastureland; and

8 ‘‘(B) may be reduced by up to 25 percent,

9 based on the ratio of upland associated with the

10 enrollment of the flooded land.

11 ‘‘(2) EXCLUSIONS.—During the term of a con12 tract entered into under this section, an owner shall

13 not be eligible to participate in or receive benefits for

14 land that is included in the contract under—

15 ‘‘(A) the Federal crop insurance program

16 established under the Federal Crop Insurance

17 Act (7 U.S.C. 1501 et seq.);

18 ‘‘(B) the noninsured crop assistance pro19 gram established under section 196 of the Fed20 eral Agriculture Improvement and Reform Act of

21 1996 (7 U.S.C. 7333); or

22 ‘‘(C) any Federal agricultural crop disaster

23 assistance program.

24 ‘‘(f) RELATIONSHIP TO AGRICULTURAL COMMODITY

25 PROGRAMS.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

2 Secretary, by regulation, shall provide for the preser3 vation of cropland base, allotment history, and pay4 ment yields applicable to land that was rendered in5 capable of use for the production of an agricultural

6 commodity or for grazing purposes as the result of the

7 natural overflow of a closed basin lake or pothole.

8 ‘‘(2) TERMINATION OF CONTRACT.—On termi9 nation of a contract under this section, the Secretary

10 shall adjust the cropland base, allotment history, and

11 payment yields for land covered by the contract to en12 sure equitable treatment of the land relative to pro13 gram payment yields of comparable land in the coun14 ty that was not flooded as a result of the natural

15 overflow of a closed basin lake or pothole and was ca16 pable of remaining in agricultural production.

17 ‘‘(g) USEOF LAND.—An owner that has entered into

18 a contract with the Secretary under this section shall take

19 such actions as are necessary to avoid degrading any wild20 life habitat on land covered by the contract that has natu21 rally developed as a result of the natural overflow of a closed

22 basin lake or pothole.’’.

23 SEC. 2313. WILDLIFE HABITAT PROGRAM.

24 Subchapter B of chapter 1 of subtitle D of title XII

25 of the Food Security Act of 1985 (16 U.S.C. 3831a et seq.)
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1 (as amended by section 2312) is amended by adding at the

2 end the following:

3 ‘‘SEC. 1235C. WILDLIFE HABITAT PROGRAM.

4 ‘‘(a) IN GENERAL.—As part of the conservation reserve

5 program established under this subchapter, the Secretary

6 shall carry out a program to provide to owners and opera7 tors who have entered into contracts under this subchapter

8 and established softwood pine stands, for each of fiscal years

9 2008 through 2012, assistance to carry out, on the acreage

10 of the owner or operator enrolled in the program under this

11 subchapter, activities that improve the condition of the en12 rolled land for the benefit of wildlife.

13 ‘‘(b) SCOPEOF PROGRAM.—In carrying out the pro14 gram under this section, the Secretary shall determine—

15 ‘‘(1) the amount and rate of payments (includ16 ing incentive payments and cost-sharing payments)

17 to be made to owners and operators who participate

18 in the program to ensure the participation of those

19 owners and operators;

20 ‘‘(2) the areas in each of the States in which

21 owners and operators referred to in subsection (a) are

22 located that should be given priority under the pro23 gram, based on the need in those areas for changes in

24 the condition of land to benefit wildlife; and
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1 ‘‘(3) the management strategies and practices

2 (including thinning, burning, seeding, establishing

3 wildlife food plots, and such other practices that have

4 benefits for wildlife as are approved by the Secretary)

5 that may be carried out by owners and operators

6 under the program.

7 ‘‘(c) AGREEMENTS.—

8 ‘‘(1) IN GENERAL.—An owner or operator de9 scribed in subsection (a) that seeks to receive assist10 ance under this section shall enter into an agreement

11 with the Secretary that—

12 ‘‘(A) describes the management strategies

13 and practices referred to in subsection (b)(3) that

14 will be carried out by the owner or operator

15 under the agreement;

16 ‘‘(B) describes measures to be taken by the

17 owner or operator to ensure active but flexible

18 management of acreage covered by the agree19 ment;

20 ‘‘(C) requires the owner or operator to sub21 mit to periodic monitoring and evaluation by

22 wildlife or forestry agencies of the State in which

23 land covered by the agreement is located; and

24 ‘‘(D) contains such other terms or condi25 tions as the Secretary may require.
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1 ‘‘(2) TERM; INCLUSION IN CONTRACT.—An agree2 ment entered into under this section shall have a term

3 of not more than 5 years.

4 ‘‘(d) PARTNERSHIPS.—In carrying out this section, the

5 Secretary may establish or identify and, as appropriate,

6 require owners and operators participating in the program

7 under this section to work cooperatively with, partnerships

8 among the Secretary and State, local, and nongovernmental

9 organizations.

10 ‘‘(e) TECHNICAL ASSISTANCEAND COST SHARING.—

11 The Secretary may provide to owners and operators partici12 pating in the program under this section, and members of

13 partnerships described in subsection (d)—

14 ‘‘(1) technical assistance for use in carrying out

15 an activity covered by an agreement described in sub16 section (c); and

17 ‘‘(2) a payment for use in covering a percentage

18 of the costs of carrying out each such activity that

19 does not exceed the applicable amount and rate deter20 mined by the Secretary under subsection (b)(1).

21 ‘‘(f) TERMINATION OF PROGRAM.—The program under

22 this section shall terminate on September 30, 2011.’’.
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1 Subchapter C—Wetlands Reserve Program

2 SEC. 2321. WETLANDS RESERVE PROGRAM.

3 Section 1237 of the Food Security Act of 1985 (16

4 U.S.C. 3837) is amended—

5 (1) by striking subsection (b) and inserting the

6 following:

7 ‘‘(b) ENROLLMENT CONDITIONS.—

8 ‘‘(1) ANNUAL ENROLLMENT.—To the maximum

9 extent practicable, the Secretary shall enroll 250,000

10 acres in each fiscal year, with no enrollments begin11 ning in fiscal year 2013.

12 ‘‘(2) METHODS OF ENROLLMENT.—

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

14 subparagraph (B), the Secretary shall enroll

15 acreage into the wetlands reserve program

16 through the use of—

17 ‘‘(i) permanent easements;

18 ‘‘(ii) 30-year easements;

19 ‘‘(iii) restoration cost-share agree20 ments; or

21 ‘‘(iv) any combination of the options

22 described in clauses (i) through (iii).

23 ‘‘(B) ACREAGE OWNED BY INDIAN

24 TRIBES.—In the case of acreage owned by an In25 dian tribe, the Secretary shall enroll acreage into
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1 the wetlands reserve program through the use

2 of—

3 ‘‘(i) a 30-year contract (the value of

4 which shall be equivalent to the value of a

5 30-year easement);

6 ‘‘(ii) restoration cost-share agreements;

7 or

8 ‘‘(iii) any combination of the options

9 described in clauses (i) and (ii).’’;

10 (2) in subsection (c), by striking ‘‘2007 cal11 endar’’ and inserting ‘‘2012 fiscal’’; and

12 (3) in subsection (d)—

13 (A) in paragraph (2), by striking ‘‘or’’ at

14 the end; and

15 (B) by striking paragraph (3) and inserting

16 the following:

17 ‘‘(3) a riparian area; or

18 ‘‘(4) a riparian area and an adjacent area that

19 links the riparian area to other parcels of wetland

20 that are protected by wetlands reserve agreements or

21 some other device or circumstance that achieves the

22 same purpose as a wetlands reserve agreement.’’.
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1 SEC. 2322. EASEMENTS AND AGREEMENTS.

2 (a) TERMS OF EASEMENT.—Section 1237A(b)(2)(B) of

3 the Food Security Act of 1985 (16 U.S.C. 3837a(b)(2)(B))

4 is amended—

5 (1) in clause (i), by striking ‘‘or’’ at the end;

6 (2) in clause (ii), by striking ‘‘; and’’ and insert7 ing ‘‘; or’’; and

8 (3) by adding at the end the following:

9 ‘‘(iii) to meet habitat needs of specific

10 wildlife species; and’’.

11 (b) COMPENSATION.—Section 1237A(f) of the Food Se12 curity Act of 1985 (16 U.S.C. 3837a(f)) is amended—

13 (1) in the first sentence—

14 (A) by striking ‘‘Compensation’’ and insert15 ing the following:

16 ‘‘(1) IN GENERAL.—Compensation’’; and

17 (B) by striking ‘‘agreed to’’ and all that fol18 lows through ‘‘encumbered by the easement’’ and

19 inserting ‘‘determined under paragraph (4)’’;

20 (2) in the second sentence, by striking ‘‘Lands’’

21 and inserting the following:

22 ‘‘(2) BIDS.—Land’’;

23 (3) by striking the third sentence and inserting

24 the following:

25 ‘‘(3) PAYMENTS.—Compensation may be pro26 vided in not less than 1 and not more than 30 annual
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1 payments of equal or unequal size, as agreed to by the

2 owner and the Secretary.’’; and

3 (4) by adding at the end the following:

4 ‘‘(4) COMPENSATION.—Effective on the date of

5 enactment of this paragraph, the Secretary shall pay

6 the lowest amount of compensation for a conservation

7 easement, as determined by a comparison of subpara8 graphs (A), (B), and (C):

9 ‘‘(A) The amount necessary to encourage the

10 enrollment of parcels of land that are of impor11 tance in achieving the purposes of the program,

12 as determined by the State Conservationist, with

13 advice from the State technical committee, based

14 on 1 of the following:

15 ‘‘(i) The net present value of 30 years

16 of annual rental payments based on the

17 county simple average soil rental rates de18 veloped under subchapter B.

19 ‘‘(ii) An area-wide market analysis or

20 survey.

21 ‘‘(iii) An amount not less than the

22 value of the agricultural or otherwise unde23 veloped raw land based on the Uniform

24 Standards of Professional Appraisal Prac25 tice.
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1 ‘‘(B) The amount corresponding to a geo2 graphical area value limitation, as determined

3 by the State Conservationist, with advice from

4 the State technical committee.

5 ‘‘(C) The amount contained in the offer

6 made by the landowner.’’.

7 (c) WETLANDS RESERVE ENHANCEMENT PROGRAM.—

8 Section 1237A of the Food Security Act of 1985 (16 U.S.C.

9 3837a) is amended by adding at the end the following:

10 ‘‘(h) WETLANDS RESERVE ENHANCEMENT PRO11 GRAM.—

12 ‘‘(1) IN GENERAL.—The Secretary may enter

13 into 1 or more agreements with a State (including a

14 political subdivision or agency of a State), non15 governmental organization, or Indian tribe to carry

16 out a special wetlands reserve enhancement program

17 that the Secretary determines would advance the pur18 poses of this subchapter.

19 ‘‘(2) RESERVED RIGHTS.—Under the wetlands

20 reserve enhancement program, the Secretary may use

21 unique wetlands reserve agreements that may include

22 certain compatible uses as reserved rights in the war23 ranty easement deed restriction, if using those agree24 ments is determined by the Secretary to be—
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1 ‘‘(A) consistent with the long-term wetland

2 protection and enhancement goals for which the

3 easement was established; and

4 ‘‘(B) in accordance with a conservation

5 plan.’’.

6 (d) REPORT.—

7 (1) IN GENERAL.—Not later than January 1,

8 2010, the Secretary shall submit to the Committee on

9 Agriculture of the House of Representatives and the

10 Committee on Agriculture, Nutrition, and Forestry of

11 the Senate a report that evaluates the implications of

12 the long-term nature of conservation easements grant13 ed under section 1237A of the Food Security Act of

14 1985 (16 U.S.C. 3837a) on resources of the Depart15 ment of Agriculture.

16 (2) INCLUSIONS.—The report shall include—

17 (A) data relating to the number and loca18 tion of conservation easements granted under

19 that section that the Secretary holds or has a sig20 nificant role in monitoring or managing;

21 (B) an assessment of the extent to which the

22 oversight of the conservation easement agree23 ments impacts the availability of resources, in24 cluding technical assistance;
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1 (C) an assessment of the uses and value of

2 agreements with partner organizations; and

3 (D) any other relevant information relating

4 to costs or other effects that would be helpful to

5 the Committees.

6 SEC. 2323. PAYMENTS.

7 Section 1237D(c) of the Food Security Act of 1985 (16

8 U.S.C. 3837d(c)) is amended—

9 (1) in paragraph (1)—

10 (A) by striking ‘‘The total’’ and inserting

11 ‘‘Subject to section 1244(i), the total’’;

12 (B) by striking ‘‘easement payments’’ and

13 inserting ‘‘payments’’;

14 (C) by striking ‘‘person’’ and inserting ‘‘in15 dividual’’; and

16 (D) by inserting ‘‘or under 30-year con17 tracts or restoration agreements’’ before the pe18 riod at the end; and

19 (2) in paragraph (3)—

20 (A) by striking ‘‘Easement payments’’ and

21 inserting ‘‘Payments’’; and

22 (B) by striking ‘‘the Food, Agriculture, Con23 servation, and Trade Act of 1990, or the Agricul24 tural Act of 1949 (7 U.S.C. 1421 et seq.)’’ and

25 inserting ‘‘the Federal Agriculture Improvement
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1 and Reform Act of 1996 (Public Law 104–127;

2 110 Stat. 888), or the Farm Security and Rural

3 Investment Act of 2002 (Public Law 107–171;

4 116 Stat. 134)’’.

5 Subchapter D—Healthy Forests Reserve

6 Program

7 SEC. 2331. HEALTHY FORESTS RESERVE PROGRAM.

8 (a) IN GENERAL.—Chapter 1 of subtitle D of title XII

9 of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.)

10 is amended by adding at the end the following:

11 ‘‘Subchapter D—Healthy Forests Reserve

12 Program

13 ‘‘SEC. 1237M. ESTABLISHMENT OF HEALTHY FORESTS RE14 SERVE PROGRAM.

15 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

16 the healthy forests reserve program for the purpose of restor17 ing and enhancing forest ecosystems—

18 ‘‘(1) to promote the recovery of threatened and

19 endangered species;

20 ‘‘(2) to improve biodiversity; and

21 ‘‘(3) to enhance carbon sequestration.

22 ‘‘(b) COORDINATION.—The Secretary shall carry out

23 the healthy forests reserve program in coordination with the

24 Secretary of the Interior and the Secretary of Commerce.
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1 ‘‘SEC. 1237N. ELIGIBILITY AND ENROLLMENT OF LANDS IN

2 PROGRAM.

3 ‘‘(a) IN GENERAL.—The Secretary, in coordination

4 with the Secretary of the Interior and the Secretary of Com5 merce, shall describe and define forest ecosystems that are

6 eligible for enrollment in the healthy forests reserve pro7 gram.

8 ‘‘(b) ELIGIBILITY.—To be eligible for enrollment in the

9 healthy forests reserve program, land shall be—

10 ‘‘(1) private land the enrollment of which will

11 restore, enhance, or otherwise measurably increase the

12 likelihood of recovery of a species listed as endangered

13 or threatened under section 4 of the Endangered Spe14 cies Act of 1973 (16 U.S.C. 1533); and

15 ‘‘(2) private land the enrollment of which will

16 restore, enhance, or otherwise measurably improve the

17 well-being of species that—

18 ‘‘(A) are not listed as endangered or threat19 ened under section 4 of the Endangered Species

20 Act of 1973 (16 U.S.C. 1533); but

21 ‘‘(B) are candidates for such listing, State22 listed species, or special concern species.

23 ‘‘(c) OTHER CONSIDERATIONS.—In enrolling land that

24 satisfies the criteria under subsection (b), the Secretary

25 shall give additional consideration to land the enrollment

26 of which will—
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1 ‘‘(1) improve biological diversity; and

2 ‘‘(2) increase carbon sequestration.

3 ‘‘(d) ENROLLMENT BY WILLING OWNERS.—The Sec4 retary shall enroll land in the healthy forests reserve pro5 gram only with the consent of the owner of the land.

6 ‘‘(e) METHODS OF ENROLLMENT.—

7 ‘‘(1) IN GENERAL.—Land may be enrolled in the

8 healthy forests reserve program in accordance with—

9 ‘‘(A) a 10-year cost-share agreement;

10 ‘‘(B) a 30-year easement; or

11 ‘‘(C) a permanent easement.

12 ‘‘(2) PROPORTION.—The extent to which each en13 rollment method is used shall be based on the approxi14 mate proportion of owner interest expressed in that

15 method in comparison to the other methods.

16 ‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In

17 the case of acreage owned by an Indian tribe, the Sec18 retary may enroll acreage into the healthy forests re19 serve program through the use of—

20 ‘‘(A) a 30-year contract (the value of which

21 shall be equivalent to the value of a 30-year ease22 ment);

23 ‘‘(B) a 10-year cost-share agreement; or

24 ‘‘(C) any combination of the options de25 scribed in subparagraphs (A) and (B).
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1 ‘‘(f) ENROLLMENT PRIORITY.—

2 ‘‘(1) SPECIES.—The Secretary shall give priority

3 to the enrollment of land that provides the greatest

4 conservation benefit to—

5 ‘‘(A) primarily, species listed as endangered

6 or threatened under section 4 of the Endangered

7 Species Act of 1973 (16 U.S.C. 1533); and

8 ‘‘(B) secondarily, species that—

9 ‘‘(i) are not listed as endangered or

10 threatened under section 4 of the Endan11 gered Species Act of 1973 (16 U.S.C. 1533);

12 but

13 ‘‘(ii) are candidates for such listing,

14 State-listed species, or special concern spe15 cies.

16 ‘‘(2) COST-EFFECTIVENESS.—The Secretary shall

17 also consider the cost-effectiveness of each agreement

18 or easement, and associated restoration plans, so as

19 to maximize the environmental benefits per dollar ex20 pended.

21 ‘‘SEC. 1237O. RESTORATION PLANS.

22 ‘‘(a) IN GENERAL.—Land enrolled in the healthy for23 ests reserve program shall be subject to a restoration plan,

24 to be developed jointly by the landowner and the Secretary,

25 in coordination with the Secretary of Interior.
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1 ‘‘(b) PRACTICES.—The restoration plan shall require

2 such restoration practices as are necessary to restore and

3 enhance habitat for—

4 ‘‘(1) species listed as endangered or threatened

5 under section 4 of the Endangered Species Act of

6 1973 (16 U.S.C. 1533); and

7 ‘‘(2) animal or plant species before the species

8 reach threatened or endangered status, such as can9 didate, State-listed species, and special concern spe10 cies.

11 ‘‘SEC. 1237P. FINANCIAL ASSISTANCE.

12 ‘‘(a) PERMANENT EASEMENTS.—In the case of land

13 enrolled in the healthy forests reserve program using a per14 manent easement, the Secretary shall pay to the owner of

15 the land an amount equal to not less than 75 percent, nor

16 more than 100 percent, of (as determined by the Sec17 retary)—

18 ‘‘(1) the fair market value of the enrolled land

19 during the period the land is subject to the easement,

20 less the fair market value of the land encumbered by

21 the easement; and

22 ‘‘(2) the actual costs of the approved conservation

23 practices or the average cost of approved practices

24 carried out on the land during the period in which

25 the land is subject to the easement.
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1 ‘‘(b) 30-YEAR EASEMENT OR CONTRACT.—In the case

2 of land enrolled in the healthy forests reserve program using

3 a 30-year easement or contract, the Secretary shall pay the

4 owner of the land an amount equal to not more than (as

5 determined by the Secretary)—

6 ‘‘(1) 75 percent of the fair market value of the

7 land, less the fair market value of the land encum8 bered by the easement or contract; and

9 ‘‘(2) 75 percent of the actual costs of the ap10 proved conservation practices or 75 percent of the av11 erage cost of approved practices.

12 ‘‘(c) 10-YEAR AGREEMENT.—In the case of land en13 rolled in the healthy forests reserve program using a 10-

14 year cost-share agreement, the Secretary shall pay the

15 owner of the land an amount equal to not more than (as

16 determined by the Secretary)—

17 ‘‘(1) 50 percent of the actual costs of the ap18 proved conservation practices; or

19 ‘‘(2) 50 percent of the average cost of approved

20 practices.

21 ‘‘(d) ACCEPTANCE OF CONTRIBUTIONS.—The Sec22 retary may accept and use contributions of non-Federal

23 funds to make payments under this section.
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1 ‘‘SEC. 1237Q. TECHNICAL ASSISTANCE.

2 ‘‘(a) IN GENERAL.—The Secretary shall provide land3 owners with technical assistance to assist the owners in

4 complying with the terms of plans (as included in agree5 ments or easements) under the healthy forests reserve pro6 gram.

7 ‘‘(b) TECHNICAL SERVICE PROVIDERS.—The Secretary

8 may request the services of, and enter into cooperative

9 agreements with, individuals or entities certified as tech10 nical service providers under section 1242, to assist the Sec11 retary in providing technical assistance necessary to de12 velop and implement the healthy forests reserve program.

13 ‘‘SEC. 1237R. PROTECTIONS AND MEASURES.

14 ‘‘(a) PROTECTIONS.—In the case of a landowner that

15 enrolls land in the program and whose conservation activi16 ties result in a net conservation benefit for listed, candidate,

17 or other species, the Secretary shall make available to the

18 landowner safe harbor or similar assurances and protection

19 under—

20 ‘‘(1) section 7(b)(4) of the Endangered Species

21 Act of 1973 (16 U.S.C. 1536(b)(4)); or

22 ‘‘(2) section 10(a)(1) of that Act (16 U.S.C.

23 1539(a)(1)).

24 ‘‘(b) MEASURES.—If protection under subsection (a)

25 requires the taking of measures that are in addition to the

26 measures covered by the applicable restoration plan agreed
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1 to under section 1237O, the cost of the additional measures,

2 as well as the cost of any permit, shall be considered part

3 of the restoration plan for purposes of financial assistance

4 under section 1237P.

5 ‘‘SEC. 1237S. INVOLVEMENT BY OTHER AGENCIES AND OR6 GANIZATIONS.

7 ‘‘In carrying out this subchapter, the Secretary may

8 consult with—

9 ‘‘(1) nonindustrial private forest landowners;

10 ‘‘(2) other Federal agencies;

11 ‘‘(3) State fish and wildlife agencies;

12 ‘‘(4) State forestry agencies;

13 ‘‘(5) State environmental quality agencies;

14 ‘‘(6) other State conservation agencies; and

15 ‘‘(7) nonprofit conservation organizations.

16 ‘‘SEC. 1237T. AUTHORIZATION OF APPROPRIATIONS.

17 ‘‘There are authorized to be appropriated to carry out

18 this subchapter such sums as are necessary for each of fiscal

19 years 2008 through 2012.’’.

20 (b) CONFORMING AMENDMENTS.—The Healthy Forests

21 Restoration Act of 2003 (16 U.S.C. 6501 et seq.) is

22 amended—

23 (1) by striking title V (16 U.S.C. 6571 et seq.);

24 and
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1 (2) by redesignating title VI and section 601 (16

2 U.S.C. 6591) as title V and section 501, respectively.

3 CHAPTER 2—COMPREHENSIVE

4 STEWARDSHIP INCENTIVES PROGRAM

5 Subchapter A—General Provisions

6 SEC. 2341. COMPREHENSIVE STEWARDSHIP INCENTIVES

7 PROGRAM.

8 Subtitle D of title XII of the Food Security Act of 1985

9 (16 U.S.C. 3830 et seq.) is amended by adding at the end

10 the following:

11 ‘‘CHAPTER 6—COMPREHENSIVE

12 STEWARDSHIP INCENTIVES PROGRAM

13 ‘‘Subchapter A—Comprehensive Stewardship

14 Incentives Program

15 ‘‘SEC. 1240T. COMPREHENSIVE STEWARDSHIP INCENTIVES

16 PROGRAM.

17 ‘‘(a) ESTABLISHMENT.—

18 ‘‘(1) IN GENERAL.—The Secretary shall establish

19 a comprehensive stewardship incentives program (re20 ferred to in this chapter as ‘CSIP’) to—

21 ‘‘(A) promote coordinated efforts within

22 conservation programs in this chapter to address

23 resources of concern, as identified at the local

24 level;
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1 ‘‘(B) encourage the adoption of conservation

2 practices, activities and management measures;

3 and

4 ‘‘(C) promote agricultural production and

5 environmental quality as compatible goals.

6 ‘‘(2) MEANS.—The Secretary shall carry out

7 CSIP by—

8 ‘‘(A) identifying resources of concern at a

9 local level as described in subsection (b)(4);

10 ‘‘(B) entering into contracts with owners

11 and operators of agricultural and nonindustrial

12 private forest land to—

13 ‘‘(i) address natural resource concerns;

14 ‘‘(ii) meet regulatory requirements; or

15 ‘‘(iii) achieve and maintain new con16 servation practices, activities and manage17 ment measures; and

18 ‘‘(C) providing technical assistance.

19 ‘‘(3) PROGRAMS.—CSIP shall consist of—

20 ‘‘(A) the conservation stewardship program;

21 and

22 ‘‘(B) the environmental quality incentives

23 program.
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1 ‘‘(4) DEFINITION OF RESOURCE OF CONCERN.—

2 In this chapter, the term ‘resource of concern’

3 means—

4 ‘‘(A) a specific resource concern on agricul5 tural or nonindustrial private forest land that—

6 ‘‘(i) is identified by the Secretary in

7 accordance with subsection (b)(4);

8 ‘‘(ii) represents a significant conserva9 tion concern in the State to which agricul10 tural activities are contributing; and

11 ‘‘(iii) is likely to be addressed success12 fully through the implementation of con13 servation practices, activities, and manage14 ment measures by owners and operators of

15 agricultural and nonindustrial private for16 est land; or

17 ‘‘(B) a specific resource concern on agricul18 tural or nonindustrial private forest land that is

19 the subject of mandatory environmental require20 ments that apply to a producer under Federal,

21 State, or local law.

22 ‘‘(b) ADMINISTRATION.—

23 ‘‘(1) IN GENERAL.—In carrying out CSIP, the

24 Secretary shall ensure that the conservation programs
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1 under this chapter are managed in a coordinated

2 manner.

3 ‘‘(2) PLANS.—The Secretary shall, to the max4 imum extent practicable, avoid duplication in the

5 conservation plans required under this chapter and

6 comparable conservation and regulatory programs,

7 including a permit acquired under an approved

8 water or air quality regulatory program.

9 ‘‘(3) TENANT PROTECTION.—The Secretary shall

10 provide adequate safeguards to protect the interests of

11 tenants and sharecroppers, including provision for

12 sharing, on a fair and equitable basis, in payments

13 under the programs established under this chapter.

14 ‘‘(4) IDENTIFICATION OF RESOURCES OF CON15 CERN.—

16 ‘‘(A) IN GENERAL.—The Secretary shall en17 sure that resources of concern are identified at

18 the State level in consultation with the State

19 Technical Committee.

20 ‘‘(B) LIMITATION.—The Secretary shall

21 identify not more than 5 resources of concern in

22 a particular watershed or other appropriate re23 gion or area within a State.

24 ‘‘(5) REGULATIONS.—Not later than 180 days

25 after the date of enactment of the Food and Energy
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1 Security Act of 2007 the Secretary shall issue regula2 tions to implement the programs established under

3 this chapter.

4 ‘‘Subchapter B—Conservation Stewardship

5 Program

6 ‘‘SEC. 1240U. PURPOSES.

7 ‘‘The purpose of the conservation stewardship program

8 is to promote agricultural production and environmental

9 quality as compatible goals, and to optimize environmental

10 benefits, by assisting producers—

11 ‘‘(1) in promoting conservation and improving

12 resources of concern (including soil, water, and en13 ergy conservation, soil, water, and air quality, bio14 diversity, fish, wildlife and pollinator habitat, and re15 lated resources of concern, as defined by the Sec16 retary) by providing flexible assistance to install, im17 prove, and maintain conservation systems, practices,

18 activities, and management measures on agricultural

19 land (including cropland, grazing land, and wetland)

20 while sustaining production of food and fiber;

21 ‘‘(2) in making beneficial, cost-effective changes

22 to conservation systems, practices, activities, and

23 management measures carried out on agricultural

24 and forest land relating to—

25 ‘‘(A) cropping systems;
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1 ‘‘(B) grazing management systems;

2 ‘‘(C) nutrient management associated with

3 livestock and crops;

4 ‘‘(D) forest management;

5 ‘‘(E) fuels management;

6 ‘‘(F) integrated pest management;

7 ‘‘(G) irrigation management;

8 ‘‘(H) invasive species management;

9 ‘‘(I) energy conservation; or

10 ‘‘(J) other management-intensive issues;

11 ‘‘(3) in complying with Federal, State, tribal,

12 and local requirements concerning—

13 ‘‘(A) soil, water, and air quality;

14 ‘‘(B) fish, wildlife, and pollinator habitat;

15 and

16 ‘‘(C) surface water and groundwater con17 servation;

18 ‘‘(4) in avoiding, to the maximum extent prac19 ticable, the need for resource and regulatory programs

20 by protecting resources of concern and meeting envi21 ronmental quality criteria established by Federal,

22 State, tribal, and local agencies; and

23 ‘‘(5) by encouraging, consolidating, and stream24 lining conservation planning and regulatory compli25 ance processes to reduce administrative burdens on
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1 producers and the cost of achieving environmental

2 goals.

3 ‘‘SEC. 1240V. DEFINITIONS.

4 ‘‘In this chapter:

5 ‘‘(1) COMPREHENSIVE CONSERVATION PLAN.—

6 The term ‘comprehensive conservation plan’ means a

7 plan produced by following the planning process out8 lined in the applicable National Planning Procedures

9 Handbook of the Department of Agriculture with re10 gard to all applicable resources of concern.

11 ‘‘(2) CONTRACT OFFER.—The term ‘contract

12 offer’ means an application submitted by a producer

13 that seeks to address 1 or more resources of concern

14 with the assistance of the program.

15 ‘‘(3) ENHANCEMENT PAYMENT.—The term ‘en16 hancement payment’ means a payment described in

17 section 1240X(d).

18 ‘‘(4) ELIGIBLELAND.—The term ‘eligible land’

19 means land described in section 1240X(b).

20 ‘‘(5) LIVESTOCK.—The term ‘livestock’ means

21 dairy cattle, beef cattle, laying hens, broilers, turkeys,

22 swine, sheep, goats, ducks, ratites, shellfish, alpacas,

23 bison, catfish, managed pollinators, and such other

24 animals and fish as are determined by the Secretary.
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1 ‘‘(6) MANAGEMENT INTENSITY.—The term ‘man2 agement intensity’ means the degree, scope, and com3 prehensiveness of conservation systems, practices, ac4 tivities, or management measures adopted by a pro5 ducer to improve and sustain the condition of a re6 source of concern.

7 ‘‘(7) PAYMENT.—The term ‘payment’ means fi8 nancial assistance provided to a producer under the

9 program to compensate the producers for incurred

10 costs associated with planning, materials, installa11 tion, labor, management, maintenance, technical as12 sistance, and training, the value of risk, and income

13 forgone by the producer, as applicable, including—

14 ‘‘(A) enhancement payments;

15 ‘‘(B) CSP supplemental payments; and

16 ‘‘(C) other payments provided under this

17 chapter.

18 ‘‘(8) PRACTICE.—

19 ‘‘(A) IN GENERAL.—The term ‘practice’

20 means 1 or more measures that improve or sus21 tain a resource of concern.

22 ‘‘(B) INCLUSIONS.—The term ‘practice’

23 includes—
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1 ‘‘(i) structural measures, vegetative

2 measures, and land management measures,

3 as determined by the Secretary; and

4 ‘‘(ii) planning activities needed to im5 prove or sustain a resource of concern, in6 cluding implementation of—

7 ‘‘(I) a comprehensive conservation

8 plan; and

9 ‘‘(II) a comprehensive nutrient

10 management plan.

11 ‘‘(9) PRODUCER.—The term ‘producer’ means an

12 individual who is an owner, operator, landlord, ten13 ant, or sharecropper that—

14 ‘‘(A) derives income from, and controls, the

15 production or management of an agricultural

16 commodity, livestock, or nonindustrial forest

17 land regardless of ownership;

18 ‘‘(B) shares in the risk of producing any

19 crop or livestock; and

20 ‘‘(C)(i) is entitled to share in the crop or

21 livestock available for marketing from a farm (or

22 would have shared had the crop or livestock been

23 produced); or

24 ‘‘(ii) is a custom feeder or contract grower.
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1 ‘‘(10) PROGRAM.—The term ‘program’ means the

2 conservation stewardship program established under

3 this chapter.

4 ‘‘(11) RESOURCE-CONSERVING CROP.—The term

5 ‘resource-conserving crop’ means—

6 ‘‘(A) a perennial grass;

7 ‘‘(B) a legume grown for use as forage, seed

8 for planting, or green manure;

9 ‘‘(C) a legume-grass mixture;

10 ‘‘(D) a small grain grown in combination

11 with a grass or legume, whether interseeded or

12 planted in succession;

13 ‘‘(E) a winter annual oilseed crop that pro14 vides soil protection; and

15 ‘‘(F) such other plantings as the Secretary

16 determines to be appropriate for a particular

17 area.

18 ‘‘(12) RESOURCE-CONSERVING CROP ROTA19 TION.—The term ‘resource-conserving crop rotation’

20 means a crop rotation that—

21 ‘‘(A) includes at least 1 resource-conserving

22 crop;

23 ‘‘(B) reduces erosion;

24 ‘‘(C) improves soil fertility and tilth;

25 ‘‘(D) interrupts pest cycles; and
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1 ‘‘(E) in applicable areas, reduces depletion

2 of soil moisture (or otherwise reduces the need for

3 irrigation).

4 ‘‘(13) RESOURCE-SPECIFIC INDICES.—The term

5 ‘resource-specific indices’ means indices developed by

6 the Secretary that measure or estimate the expected

7 level of resource and environmental outcomes of the

8 conservation systems, practices, activities, and man9 agement measures employed by a producer to address

10 a resource of concern on an agricultural operation.

11 ‘‘(14) STEWARDSHIP CONTRACT.—The term

12 ‘stewardship contract’ means a contract entered into

13 under the conservation stewardship program to carry

14 out the programs and activities described in this

15 chapter.

16 ‘‘(15) STEWARDSHIP THRESHOLD.—The term

17 ‘stewardship threshold’ means the level of natural re18 source conservation and environmental management

19 required, as determined by the Secretary—

20 ‘‘(A) to maintain, conserve, and improve

21 the quality or quantity of a resource of concern

22 reflecting at a minimum, the resource manage23 ment system quality criteria described in the

24 handbooks of the Natural Resource Conservation

25 Service, if available and appropriate; or
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1 ‘‘(B) in the case of a resource of concern

2 that is the subject of a Federal, State, or local

3 regulatory requirement, to meet the higher of—

4 ‘‘(i) the standards that are established

5 by the requirement for the resource of con6 cern; or

7 ‘‘(ii) standards reflecting the resource

8 management system quality criteria de9 scribed in the handbooks of the Natural Re10 source Conservation Service, if available

11 and appropriate.

12 ‘‘SEC. 1240W. ESTABLISHMENT OF PROGRAM.

13 ‘‘The Secretary shall establish and, for each of fiscal

14 years 2008 through 2012, carry out a conservation steward15 ship program to assist producers in improving environ16 mental quality by addressing resources of concern in a com17 prehensive manner through—

18 ‘‘(1) the addition of conservation systems, prac19 tices, activities, and management measures; and

20 ‘‘(2) the active management, maintenance, and

21 improvement of existing, and adoption of new, con22 servation systems, practices, activities, and manage23 ment measures.

24 ‘‘SEC. 1240X. ELIGIBILITY.

25 ‘‘(a) ELIGIBLE PRODUCERS.—
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1 ‘‘(1) GENERAL PROGRAM ELIGIBILITY.—To be el2 igible to participate in the conservation stewardship

3 program, a producer shall—

4 ‘‘(A) submit to the Secretary for approval a

5 contract offer to participate in the program;

6 ‘‘(B) agree to receive technical services, ei7 ther directly from the Secretary or, at the option

8 of the producer, from an approved third party

9 under section 1242(b)(3);

10 ‘‘(C) enter into a contract with the Sec11 retary, as described in subsection (c); and

12 ‘‘(D) demonstrate to the satisfaction of the

13 Secretary that the producer—

14 ‘‘(i) is addressing resources of concern

15 relating to both soil and water to at least

16 the stewardship threshold; and

17 ‘‘(ii) is adequately addressing other re18 sources of concern applicable to the agricul19 tural operation, as determined by the Sec20 retary.

21 ‘‘(b) ELIGIBLE LAND.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), private agricultural land that is eligible

24 for enrollment in the program includes—
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1 ‘‘(A) cropland (including vineyards and or2 chards);

3 ‘‘(B) pasture land;

4 ‘‘(C) rangeland;

5 ‘‘(D) other agricultural land used for the

6 production of livestock;

7 ‘‘(E) land used for agroforestry;

8 ‘‘(F) land used for aquaculture;

9 ‘‘(G) riparian areas adjacent to otherwise

10 eligible land;

11 ‘‘(H) land under the jurisdiction of an In12 dian tribe (as determined by the Secretary);

13 ‘‘(I) public land, if failure to enroll the land

14 in the program would defeat the purposes of the

15 program on private land that is an integral part

16 of the operation enrolled or offered to be enrolled

17 in the program by the producer;

18 ‘‘(J) State and school owned land that is

19 under the effective control of a producer; and

20 ‘‘(K) other agricultural land (including

21 cropped woodland and marshes) that the Sec22 retary determines is vulnerable to serious threats

23 to resources of concern.

24 ‘‘(2) EXCLUSIONS.—
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1 ‘‘(A) LAND ENROLLED IN OTHER CONSERVA2 TION PROGRAMS.—The following land is not eli3 gible for enrollment in the program:

4 ‘‘(i) Land enrolled in the conservation

5 reserve program under subchapter B of

6 chapter 1.

7 ‘‘(ii) Land enrolled in the wetlands re8 serve program established under subchapter

9 C of chapter 1.

10 ‘‘(B) CONVERSION TO CROPLAND.—With re11 gard to the program, land used for crop produc12 tion after May 13, 2002, that had not been

13 planted, considered to be planted, or devoted to

14 crop production for at least 4 of the 6 years pre15 ceding that date (except for land enrolled in the

16 conservation reserve program or that has been

17 maintained using long-term crop rotation prac18 tices, as determined by the Secretary) shall not

19 be the basis for any payment under the program.

20 ‘‘(3) ECONOMIC USES.—The Secretary shall not

21 restrict economic uses of land covered by a program

22 contract (including buffers and other partial field

23 conservation practices) that comply with the agree24 ment and comprehensive conservation plan, or other

25 applicable law.
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1 ‘‘(c) CONTRACT REQUIREMENTS AND PROVISIONS.—

2 ‘‘(1) IN GENERAL.—After a determination by the

3 Secretary that a producer is eligible to participate in

4 the program, and on acceptance of the contract offer

5 of the producer, the Secretary shall enter into a con6 tract with the producer to enroll the land to be cov7 ered by the contract.

8 ‘‘(2) AGRICULTURAL OPERATIONS.—All acres of

9 all agricultural operations, whether or not contiguous,

10 that are under the effective control of a producer

11 within a particular watershed or region (or in a con12 tiguous watershed or region) of a State and constitute

13 a cohesive management unit, as determined by the

14 Secretary, at the time the producer enters into a stew15 ardship contract shall be covered by the stewardship

16 contract, other than land the producer has enrolled in

17 the conservation reserve program or the wetlands re18 serve program.

19 ‘‘(3) RESOURCES OF CONCERN.—Each steward20 ship contract shall, at a minimum, meet or exceed the

21 stewardship threshold for at least 1 additional re22 source of concern by the end of the stewardship con23 tract through—
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1 ‘‘(A) the installation and adoption of addi2 tional conservation systems, practices, activities,

3 or management measures; and

4 ‘‘(B) the active management and improve5 ment of conservation systems, practices, activi6 ties, and management measures in place at the

7 operation of the producer at the time the con8 tract offer is accepted by the Secretary.

9 ‘‘(4) TERMS.—A contract entered into under

10 paragraph (1) shall—

11 ‘‘(A) describe the land covered by the con12 tract;

13 ‘‘(B) describe the practices or technical serv14 ices from an approved third party, to be imple15 mented on eligible land of the producer;

16 ‘‘(C) state the amount of payments (deter17 mined in accordance with subsection (f)) the Sec18 retary agrees to make to the producer each year

19 of the contract;

20 ‘‘(D) describe existing conservation systems,

21 practices, activities, and management measures

22 the producer agrees to maintain, manage, and

23 improve during the term of the stewardship con24 tract in order to meet and exceed the appropriate
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1 stewardship threshold for the resources of con2 cern;

3 ‘‘(E) describe the additional conservation

4 systems, practices, activities, and management

5 measures the producer agrees to plan, install,

6 maintain, and manage during the term of the

7 stewardship contract in order to meet and exceed

8 the appropriate stewardship threshold for the ap9 propriate resource or resources of concern;

10 ‘‘(F) if applicable, describe the on-farm con11 servation research, demonstration, training, or

12 pilot project activities the producer agrees to un13 dertake during the term of the contract;

14 ‘‘(G) if applicable, describe the on-farm

15 monitoring and evaluation activities the pro16 ducer agrees to undertake during the term of the

17 contract relating to—

18 ‘‘(i) a comprehensive conservation

19 plan; or

20 ‘‘(ii) conservation systems, practices,

21 activities, and management measures; and

22 ‘‘(H) include such other provisions as the

23 Secretary determines are necessary to ensure that

24 the purposes of the program are achieved.
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1 ‘‘(5) ON-FARM RESEARCH, DEMONSTRATION,

2 TRAINING, OR PILOT PROJECTS.—The Secretary may

3 approve a stewardship contract that includes—

4 ‘‘(A) on-farm conservation research, dem5 onstration, and training activities; and

6 ‘‘(B) pilot projects for evaluation of new

7 technologies or innovative conservation practices.

8 ‘‘(6) DURATION.—A contract under this chapter

9 shall have a term of 5 years.

10 ‘‘(7) EVALUATION OF CONTRACT OFFERS.—In

11 evaluating contract offers made by producers to enter

12 into contracts under the program, the Secretary

13 shall—

14 ‘‘(A) prioritize applications based on—

15 ‘‘(i) the level of conservation treatment

16 on all resources of concern at the time of

17 application, based on the initial scores re18 ceived by the producer on applicable re19 source-specific indices;

20 ‘‘(ii) the degree to which the proposed

21 conservation treatment effectively increases

22 the level of performance on applicable re23 source-specific indices or the level of man24 agement intensity with which the producer
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1 addresses the designated resources of con2 cern;

3 ‘‘(iii) the extent to which all resources

4 of concern will exceed the stewardship

5 threshold level by the end of the contract pe6 riod;

7 ‘‘(iv) the extent to which resources of

8 concern in addition to resources of concern

9 will be addressed to meet and exceed the

10 stewardship threshold level by the end of the

11 contract period;

12 ‘‘(v) the extent to which the producer

13 proposes to address the goals and objectives

14 of State, regional, and national fish and

15 wildlife conservation plans and initiatives;

16 ‘‘(vi) whether the proposed conserva17 tion treatment reflects the multiple natural

18 resource and environmental benefits of con19 servation-based farming systems, including

20 resource-conserving crop rotations, advanced

21 integrated pest management, and managed

22 rotational grazing; and

23 ‘‘(vii) whether the application includes

24 land transitioning out of the conservation

25 reserve program, on the condition that the
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1 land is maintained in a grass-based system

2 and would help meet habitat needs for fish

3 and wildlife;

4 ‘‘(B) evaluate the extent to which the antici5 pated environmental benefits from the contract

6 would be provided in the most cost-effective man7 ner, relative to other similarly beneficial contract

8 offers;

9 ‘‘(C) reward higher levels of environmental

10 performance and management intensity;

11 ‘‘(D) develop criteria for use in evaluating

12 applications that will ensure that national,

13 State, and local conservation priorities are effec14 tively addressed;

15 ‘‘(E) evaluate the extent to which the envi16 ronmental benefits expected to result from the

17 contract complement other conservation efforts in

18 the watershed or region; and

19 ‘‘(F) provide opportunities to agricultural

20 producers that have not previously participated

21 in Federal conservation programs, including be22 ginning farmers and ranchers and socially dis23 advantaged farmers and ranchers.

24 ‘‘(8) TERMINATION OF CONTRACTS.—

25 ‘‘(A) IN GENERAL.—
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1 ‘‘(i) VOLUNTARY TERMINATION.—The

2 producer may terminate a contract entered

3 into with the Secretary under this chapter

4 if the Secretary determines that the termi5 nation is in the public interest.

6 ‘‘(ii) INVOLUNTARY TERMINATION.—

7 The Secretary may terminate a contract

8 under this chapter if the Secretary deter9 mines that the producer violated the con10 tract.

11 ‘‘(B) REPAYMENT.—If a contract is termi12 nated, the Secretary may—

13 ‘‘(i) allow the producer to retain pay14 ments already received under the contract

15 if—

16 ‘‘(I) the producer has complied

17 with the terms and conditions of the

18 contract; and

19 ‘‘(II) the Secretary determines

20 that allowing the producer to retain

21 the payments is consistent with the

22 purposes of the program;

23 ‘‘(ii) require repayment, in whole or in

24 part, of payments already received; and
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1 ‘‘(iii) assess liquidated damages, if

2 doing so is consistent with the purposes of

3 the program.

4 ‘‘(C) TRANSFER OR CHANGE OF INTEREST

5 IN LAND SUBJECT TO A CONTRACT.—

6 ‘‘(i) IN GENERAL.—Except as provided

7 in clause (ii), the transfer, or change in the

8 interest, of a producer in land subject to a

9 contract under this chapter shall result in

10 the termination of the contract.

11 ‘‘(ii) TRANSFER OF DUTIES AND

12 RIGHTS.—Clause (i) shall not apply if—

13 ‘‘(I) within a reasonable period of

14 time (as determined by the Secretary)

15 after the date of the transfer or change

16 in the interest in land, the transferee of

17 the land provides written notice to the

18 Secretary that all duties and rights

19 under the contract have been trans20 ferred to, and assumed by, the trans21 feree; and

22 ‘‘(II) the transferee meets the eli23 gibility requirements of this sub24 chapter.

25 ‘‘(9) MODIFICATION.—
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1 ‘‘(A) IN GENERAL.—The Secretary may

2 allow a producer to modify a contract before the

3 expiration of the contract if the Secretary deter4 mines that failure to modify the contract would

5 significantly interfere with achieving the pur6 poses of the program.

7 ‘‘(B) PARTICIPATION IN OTHER PRO8 GRAMS.—If appropriate payment reductions and

9 other adjustments (as determined by the Sec10 retary) are made to the contract of a producer,

11 the producer may remove land enrolled in the

12 conservation stewardship program for enrollment

13 in the conservation reserve program, wetlands re14 serve program, or other conservation programs,

15 as determined by the Secretary.

16 ‘‘(C) CHANGES IN SIZE OF OPERATION.—

17 The Secretary shall allow a producer to modify

18 a stewardship contract before the expiration of

19 the stewardship contract if the agricultural oper20 ation of the producer has reduced or enlarged in

21 size to reflect the new acreage total.

22 ‘‘(D) NEW ACREAGE.—With respect to acre23 age added to the agricultural operation of a pro24 ducer after entering into a stewardship contract,

25 a producer may elect to not add the acreage to
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1 the stewardship contract during the term of the

2 current stewardship contract, except that such

3 additional acreage shall be included in any con4 tract renewal.

5 ‘‘(E) CHANGES IN PRODUCTION.—The Sec6 retary shall allow a producer to modify a stew7 ardship contract before the expiration of the

8 stewardship contract if—

9 ‘‘(i) the producer has a change in pro10 duction that requires a change to scheduled

11 conservation practices and activities; and

12 ‘‘(ii) the Secretary determines that—

13 ‘‘(I) all relevant conservation

14 standards will be maintained or im15 proved; and

16 ‘‘(II) there is no increase in total

17 payment under the stewardship con18 tract.

19 ‘‘(10) EFFECT OF NONCOMPLIANCEDUETO CIR20 CUMSTANCES BEYOND THE CONTROL OF PRODUCER.—

21 The Secretary shall include in each contract a provi22 sion to ensure that a producer shall not be considered

23 in violation of the contract for failure to comply with

24 the contract due to circumstances beyond the control

25 of the producer, including a disaster or related weath-
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1 er, pest, disease, or other similar condition, as deter2 mined by the Secretary.

3 ‘‘(11) COORDINATION WITH ORGANIC CERTIFI4 CATION.—

5 ‘‘(A) IN GENERAL.—Not later than 180

6 days after the date of enactment of this chapter,

7 the Secretary shall establish a transparent and

8 producer-friendly means by which producers

9 may coordinate and simultaneously certify eligi10 bility under—

11 ‘‘(i) a stewardship contract; and

12 ‘‘(ii) the national organic production

13 program established under the Organic

14 Foods Production Act of 1990 (7 U.S.C.

15 6501 et seq.).

16 ‘‘(B) PROGRAMMATIC CONSIDERATIONS.—

17 The Secretary shall identify and implement pro18 grammatic considerations, including conserva19 tion systems, practices, activities, and manage20 ment measures, technical assistance, evaluation

21 of contract offers, enhancement payments, on22 farm research, demonstration, training, and

23 pilot projects, and data management, through

24 which to maximize the purposes of the program

25 by enrolling producers who are certified under
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1 the national organic production program estab2 lished under the Organic Foods Production Act

3 of 1990 (7 U.S.C. 6501 et seq.).

4 ‘‘(12) RENEWAL.—At the end of a stewardship

5 contract of a producer, the Secretary shall allow the

6 producer to renew the stewardship contract for an ad7 ditional 5-year period if the producer—

8 ‘‘(A) demonstrates compliance with the

9 terms of the existing contract, including a dem10 onstration that the producer has complied with

11 the schedule for the implementation of additional

12 conservation systems, practices, activities, and

13 management measures included in the steward14 ship contract and is addressing the designated

15 resources of concern to a level that meets and ex16 ceeds the stewardship threshold; and

17 ‘‘(B) agrees to implement and maintain

18 such additional conservation practices and ac19 tivities as the Secretary determines to be nec20 essary and feasible to achieve higher levels of per21 formance on applicable resource-specific indices

22 or higher levels of management intensity with

23 which the producer addresses the resources of

24 concern.

25 ‘‘(d) ENHANCEMENT PAYMENTS.—
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1 ‘‘(1) LOWER PAYMENTS.—In evaluating applica2 tions and making payments under this chapter, the

3 Secretary shall not assign a higher priority to any

4 application because the applicant is willing to accept

5 a lower payment than the applicant would otherwise

6 be entitled to receive.

7 ‘‘(2) EVALUATION OF CONTRACT OFFERS.—Noth8 ing in this subsection relieves the Secretary of the ob9 ligation, in evaluating applications for payments, to

10 evaluate and prioritize the applications in accordance

11 with subsection (e)(4)), including the requirement for

12 contracts to be cost-effective.

13 ‘‘(3) LOWEST-COST ALTERNATIVES.—In deter14 mining the eligibility of a conservation system, prac15 tice, activity, or management measure for a payment

16 under this subsection, the Secretary shall require, to

17 the maximum extent practicable, that the lowest-cost

18 alternatives be used to achieve the purposes of the con19 tract, as determined by the Secretary.

20 ‘‘(4) METHOD OF PAYMENT.—Payments under

21 this subsection shall be made in such amounts and in

22 accordance with such time schedule as is agreed on

23 and specified in the contract.

24 ‘‘(5) ACTIVITIES QUALIFYING FOR PAYMENTS.—
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1 ‘‘(A) IN GENERAL.—To receive an enhance2 ment payment under this subsection, a producer

3 shall agree—

4 ‘‘(i) to implement additional conserva5 tion systems, practices, activities, and man6 agement measures and maintain, manage,

7 and improve existing conservation systems,

8 practices, activities, and management meas9 ures in order to maintain and improve the

10 level of performance of the producer, as de11 termined by applicable resource-specific in12 dices, or the level of management intensity

13 of the producer with respect to resources of

14 concern in order to meet and exceed the

15 stewardship threshold for resources of con16 cern; and

17 ‘‘(ii) to maintain, and make available

18 to the Secretary at such times as the Sec19 retary may request, appropriate records

20 demonstrating the effective and timely im21 plementation of the stewardship contract.

22 ‘‘(B) COMPENSATION.—Subject to subpara23 graph (C), the Secretary shall provide an en24 hancement payment to a producer to compensate

25 the producer for—
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1 ‘‘(i) ongoing implementation, active

2 management, and maintenance of conserva3 tion systems, practices, activities, and man4 agement measures in place on the operation

5 of the producer at the time the contract offer

6 of the producer is accepted; and

7 ‘‘(ii) installation and adoption of ad8 ditional conservation systems, practices, ac9 tivities, and management measures or im10 provements to conservation systems, prac11 tices, activities, and management measures

12 in place on the operation of the producer at

13 the time the contract offer is accepted.

14 ‘‘(C) ADJUSTMENTS.—A payment under

15 subparagraph (B) shall be adjusted to reflect—

16 ‘‘(i) management intensity; or

17 ‘‘(ii) resource-specific indices, in a case

18 in which those indices have been developed

19 and implemented.

20 ‘‘(D) ON-FARM RESEARCH, DEMONSTRA21 TION, TRAINING, AND PILOT PROJECT PAY22 MENTS.—The Secretary shall provide an addi23 tional enhancement payment to a producer who

24 opts to participate as part of the stewardship

25 contract in an on-farm conservation research,
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1 demonstration, training or pilot project certified

2 by the Secretary to compensate the producer for

3 the cost of participation.

4 ‘‘(E) RESTRICTION ON STRUCTURAL PRAC5 TICES.—For purposes of the conservation stew6 ardship program, structural practices shall be el7 igible for payment only if the structural prac8 tices are integrated with and essential to support

9 site-specific management activities that are part

10 of an implemented management system designed

11 to address 1 or more resources of concern.

12 ‘‘(6) EXCLUSIONS.—An enhancement payment to

13 a producer under this subsection shall not be provided

14 for the design, construction, or maintenance of ani15 mal waste storage or treatment facilities or associated

16 waste transport or transfer devices for animal feeding

17 operations.

18 ‘‘(7) TIMING OF PAYMENTS.—

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

20 make enhancement payments as soon as prac21 ticable after October 1 of each fiscal year.

22 ‘‘(B) ADDITIONAL SYSTEMS, PRACTICES, AC23 TIVITIES, AND MANAGEMENT MEASURES.—The

24 Secretary shall make enhancement payments to

25 compensate producers for installation and adop-
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1 tion of additional conservation systems, prac2 tices, activities, and management measures or

3 improvements to existing conservation systems,

4 practices, activities, and management measures

5 at the time at which the systems, practices, ac6 tivities, and measures or improvements are in7 stalled and adopted.

8 ‘‘(8) RESEARCH, DEMONSTRATION, TRAINING,

9 AND PILOT PROJECT PAYMENT LIMITATIONS.—An en10 hancement payment for research, demonstration,

11 training and pilot projects may not exceed $25,000

12 for each 5-year term of the stewardship contract (ex13 cluding funding arrangements with federally recog14 nized Indian tribes or Alaska Native Corporations).

15 ‘‘(e) CSP SUPPLEMENTAL PAYMENTS.—

16 ‘‘(1) IN GENERAL.—The Secretary shall provide

17 additional payments to producers that, in partici18 pating in the conservation stewardship program,

19 agree to adopt resource-conserving crop rotations to

20 achieve optimal crop rotations as appropriate for the

21 land of the producers.

22 ‘‘(2) OPTIMAL CROP ROTATIONS.—The Secretary

23 shall determine whether a resource-conserving crop ro24 tation is an optimal crop rotation eligible for addi25 tional payments under paragraph (1), based on
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1 whether the resource-conserving crop rotation is de2 signed to optimize natural resource conservation and

3 production benefits, including—

4 ‘‘(A) increased efficiencies in pesticide, fer5 tilizer, and energy use; and

6 ‘‘(B) improved disease management.

7 ‘‘(3) ELIGIBILITY.—To be eligible to receive a

8 payment described in paragraph (1), a producer shall

9 agree to adopt and maintain optimal resource-con10 serving crop rotations for the term of the contract.

11 ‘‘(4) RATE.—The Secretary shall provide pay12 ments under this subsection at a rate that encourages

13 producers to adopt optimal resource-conserving crop

14 rotations.

15 ‘‘(f) LIMITATION ON PAYMENTS.—Subject to section

16 1244(i), an individual or entity may not receive, directly

17 or indirectly, payments under this subchapter that, in the

18 aggregate, exceed $240,000 for all contracts entered into

19 under the conservation stewardship program during any 6-

20 year period.

21 ‘‘(g) DUTIES OF PRODUCERS.—In order to receive as22 sistance under this chapter, a producer shall—

23 ‘‘(1) implement the terms of the contract ap24 proved by the Secretary;
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1 ‘‘(2) not conduct any practices on the covered

2 land that would defeat the purposes of the program;

3 ‘‘(3) on the violation of a term or condition of

4 the contract at any time the producer has control of

5 the land—

6 ‘‘(A) if the Secretary determines that the

7 violation warrants termination of the contract—

8 ‘‘(i) forfeit all rights to receive pay9 ments under the contract; and

10 ‘‘(ii) refund to the Secretary all or a

11 portion of the payments received by the

12 owner or operator under the contract, in13 cluding any interest on the payments or liq14 uidated damages, as determined by the Sec15 retary;

16 ‘‘(B) if the Secretary determines that the

17 violation does not warrant termination of the

18 contract, refund to the Secretary, or accept ad19 justments to, the payments provided to the owner

20 or operator, as the Secretary determines to be

21 appropriate; or

22 ‘‘(C) comply with a combination of the rem23 edies authorized by subparagraphs (A) and (B),

24 as the Secretary determines to be appropriate;
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1 ‘‘(4) on the transfer of the right and interest of

2 the producer in land subject to the contract (unless

3 the transferee of the right and interest agrees with the

4 Secretary to assume all obligations of the contract) re5 fund any cost-share payments, incentive payments,

6 and stewardship payments received under the pro7 gram, as determined by the Secretary;

8 ‘‘(5) supply information as required by the Sec9 retary to determine compliance with the contract and

10 requirements of the program; and

11 ‘‘(6) comply with such additional provisions as

12 the Secretary determines are necessary to carry out

13 the contract.

14 ‘‘(h) DUTIES OF SECRETARY.—

15 ‘‘(1) IN GENERAL.—To achieve the conservation

16 and environmental goals of a contract under this

17 chapter, to the extent appropriate, the Secretary

18 shall—

19 ‘‘(A) provide to a producer information and

20 training to aid in implementation of the con21 servation systems, practices, activities, and man22 agement measures covered by the contract;

23 ‘‘(B) develop agreements with governmental

24 agencies, nonprofit organizations, and private
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1 entities to facilitate the provision of technical

2 and administrative assistance and services;

3 ‘‘(C) make the program available to eligible

4 producers on a continuous enrollment basis;

5 ‘‘(D) when identifying biodiversity or fish

6 and wildlife as a resource of concern for a par7 ticular watershed or other appropriate region or

8 area within a State, ensure that the

9 identification—

10 ‘‘(i) is specific with respect to par11 ticular species or habitat; and

12 ‘‘(ii) would further the goals and objec13 tives of State, regional, and national fish

14 and wildlife conservation plans and initia15 tives;

16 ‘‘(E) provide technical assistance and pay17 ments for each of fiscal years 2008 through 2012;

18 ‘‘(F) maintain contract and payment data

19 relating to the conservation stewardship program

20 in a manner that provides detailed and seg21 mented data and allows for quantification of the

22 amount of payments made to producers for—

23 ‘‘(i) the installation and adoption of

24 additional conservation systems, practices,

25 activities, or management measures;
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1 ‘‘(ii) participating in research, dem2 onstration, training, and pilot projects;

3 ‘‘(iii) the development, monitoring,

4 and evaluation of comprehensive conserva5 tion plans; and

6 ‘‘(iv) the maintenance and active man7 agement of conservation systems, practices,

8 activities, and management measures, and

9 the improvement of conservation practices,

10 in place on the operation of the producer on

11 the date on which the contract offer is ac12 cepted by the Secretary;

13 ‘‘(G) develop resource-specific indices for

14 purposes of determining eligibility and pay15 ments; and

16 ‘‘(H) establish and publicize design proto17 cols and application procedures for individual

18 producer and collaborative on-farm research,

19 demonstration, training, and pilot projects.

20 ‘‘(2) SPECIALTY CROP PRODUCERS.—The Sec21 retary shall ensure that outreach and technical assist22 ance are available and program specifications are ap23 propriate to enable specialty crop producers to par24 ticipate in the conservation stewardship program.
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1 ‘‘(3) ADDITIONAL REQUIREMENTS.—For the pe2 riod beginning on the date of enactment of this chap3 ter and ending on September 30, 2017, with respect

4 to eligible land of producers participating in the pro5 gram, the Secretary shall—

6 ‘‘(A) to the maximum extent practicable,

7 enroll an additional 13,273,000 acres for each

8 fiscal year, but not to exceed 79,638,000 acres;

9 ‘‘(B) implement the program nationwide to

10 make the program available to producers meeting

11 the eligibility requirements in each county;

12 ‘‘(C) to the maximum extent practicable,

13 manage the program to achieve a national aver14 age annual cost per acre of $19, which shall in15 clude the costs of all financial assistance, tech16 nical assistance, and any other expenses associ17 ated with enrollment or participation in the pro18 gram of those acres; and

19 ‘‘(D) establish a minimum contract value,

20 to ensure equity for small acreage farms, includ21 ing specialty crop and organic producers.

22 ‘‘(i) ACRE ALLOCATION.—

23 ‘‘(1) INITIAL ALLOCATIONS TO STATES.—In mak24 ing allocations of acres to States to enroll in the con25 servation stewardship program, to the maximum ex-
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1 tent practicable, the Secretary shall allocate to each

2 State a number of acres equal to the proportion

3 that—

4 ‘‘(A) the number of acres of eligible land in

5 the State; bears to

6 ‘‘(B) the number of acres of eligible land in

7 all States.

8 ‘‘(2) MINIMUM ACREALLOCATION.—Of the acres

9 allocated for each fiscal year, no State shall have allo10 cated fewer than the lesser of—

11 ‘‘(A) 20,000 acres; or

12 ‘‘(B) 2.2 percent of the number of acres of

13 eligible land in the State.

14 ‘‘(3) REALLOCATION TO STATES.—For any fiscal

15 year, acres not obligated under this subsection by a

16 date determined by the Secretary through rulemaking

17 shall be reallocated to each State that—

18 ‘‘(A) has obligated 100 percent of the initial

19 allocation of the State; and

20 ‘‘(B) requests additional acres.

21 ‘‘SEC. 1240Y. REGULATIONS.

22 ‘‘Not later than 180 days after the date of enactment

23 of this chapter, the Secretary shall promulgate such regula24 tions as are necessary to carry out the program, including

25 regulations that—
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1 ‘‘(1) provide for adequate safeguards to protect

2 the interests of tenants and sharecroppers, including

3 provision for sharing payments, on a fair and equi4 table basis;

5 ‘‘(2) prescribe such other rules as the Secretary

6 determines to be necessary to ensure a fair and rea7 sonable application of the program; and

8 ‘‘(3) to the maximum extent practicable, elimi9 nate duplication of planning activities under the pro10 gram and comparable conservation programs.’’.

11 Subchapter B—Environmental Quality

12 Incentives Program

13 SEC. 2351. PURPOSES.

14 Section 1240 of the Food Security Act of 1985 (16

15 U.S.C. 3839aa) is amended—

16 (1) in the matter preceding paragraph (1), by

17 inserting ‘‘, forest management,’’ after ‘‘agricultural

18 production’’;

19 (2) in paragraph (3)—

20 (A) by inserting ‘‘, forest land,’’ after ‘‘graz21 ing land’’; and

22 (B) by inserting ‘‘pollinators,’’ after ‘‘wet23 land),’’; and

24 (3) in paragraph (4)—
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1 (A) by inserting ‘‘fuels management, forest

2 management,’’ after ‘‘grazing management,’’;

3 and

4 (B) by inserting ‘‘and forested’’ after ‘‘agri5 cultural’’.

6 SEC. 2352. DEFINITIONS.

7 (a) ELIGIBLE LAND.—Section 1240A(2) of the Food

8 Security Act of 1985 (16 U.S.C. 3839aa–1(2)) is

9 amended—

10 (1) in subparagraph (A), by striking ‘‘commod11 ities or livestock’’ and inserting ‘‘commodities, live12 stock, or forest-related products’’; and

13 (2) in subparagraph (B)—

14 (A) by striking clause (v) and inserting the

15 following:

16 ‘‘(v) nonindustrial private forest

17 land;’’;

18 (B) by redesignating clause (vi) as clause

19 (vii); and

20 (C) by inserting after clause (v) the fol21 lowing:

22 ‘‘(vi) land used for pond-raised aqua23 culture production; and’’.
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1 (b) LAND MANAGEMENT PRACTICE.—Section 1240A(3)

2 of the Food Security Act of 1985 (16 U.S.C. 3839aa–1(3))

3 is amended—

4 (1) by striking ‘‘The term’’ and inserting the fol5 lowing:

6 ‘‘(A) IN GENERAL.—The term’’;

7 (2) by inserting ‘‘fuels management, forest man8 agement,’’ after ‘‘grazing management’’; and

9 (3) by adding at the end the following:

10 ‘‘(B) FOREST MANAGEMENT.—For purposes

11 of subparagraph (A), forest management prac12 tices may include activities that the Secretary

13 determines are necessary—

14 ‘‘(i) to improve water, soil, or air qual15 ity;

16 ‘‘(ii) to restore forest biodiversity;

17 ‘‘(iii) to control invasive species;

18 ‘‘(iv) to improve wildlife habitat; or

19 ‘‘(v) to achieve conservation priorities

20 identified in an applicable forest resource

21 assessment and plan.’’.

22 (c) PRACTICE.—Section 1240A(5) of the Food Security

23 Act of 1985 (16 U.S.C. 3839aa–1(5)) is amended by insert24 ing ‘‘conservation planning practices,’’ after ‘‘land manage25 ment practices,’’.
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1 (d) CUSTOM FEEDING BUSINESS.—Section 1240A of

2 the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is

3 amended—

4 (1) by redesignating paragraph (6) as para5 graph (7); and

6 (2) by inserting after paragraph (5) the fol7 lowing:

8 ‘‘(6) PRODUCER.—The term ‘producer’ includes

9 a custom feeding business and a contract grower or

10 finisher.’’.

11 (e) STRUCTURAL PRACTICE.—Paragraph (7)(A) of sec12 tion 1240A of the Food Security Act of 1985 (16 U.S.C.

13 3839aa–1) (as redesignated by subsection (d)(1)) is amend14 ed by inserting ‘‘firebreak, fuelbreak,’’ after ‘‘constructed

15 wetland,’’.

16 SEC. 2353. ESTABLISHMENT AND ADMINISTRATION OF EN17 VIRONMENTAL QUALITY INCENTIVES PRO18 GRAM.

19 (a) ESTABLISHMENT.—Section 1240B(a) of the Food

20 Security Act of 1985 (16 U.S.C. 3839aa–2(a)) is

21 amended—

22 (1) in paragraph (1), by striking ‘‘2010’’ and in23 serting ‘‘2012’’; and

24 (2) in paragraph (2)(B), by inserting ‘‘conserva25 tion plan or’’ after ‘‘develops a’’.
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1 (b) PRACTICES AND TERM.—Section 1240B(b) of the

2 Food Security Act of 1985 (16 U.S.C. 3839aa–2(b)) is

3 amended—

4 (1) in paragraph (1), by inserting ‘‘conservation

5 planning practices,’’ after ‘‘land management prac6 tices,’’; and

7 (2) in paragraph (2)(B), by striking ‘‘10’’ and

8 inserting ‘‘5’’.

9 (c) ESTABLISHMENT AND ADMINISTRATION.—Section

10 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–

11 2) is amended—

12 (1) by striking subsection (c);

13 (2) in subsection (d)—

14 (A) in paragraph (2), by striking subpara15 graph (A) and inserting the following:

16 ‘‘(A) SOCIALLY DISADVANTAGED FARMERS

17 OR RANCHERS AND BEGINNING FARMERS OR

18 RANCHERS.—

19 ‘‘(i) IN GENERAL.—In the case of a

20 producer that is a socially disadvantaged

21 farmer or rancher or a beginning farmer or

22 rancher, the Secretary may increase the

23 amount that would otherwise be provided to

24 the producer under paragraph (1) to—
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1 ‘‘(I) not more than 90 percent;

2 and

3 ‘‘(II) not less than 15 percent

4 above the otherwise applicable rate.

5 ‘‘(ii) ADVANCEPAYMENTS.—Not more

6 than 30 percent of the amount determined

7 under clause (i) may be provided in ad8 vance for the purpose of purchasing mate9 rials or contracting.’’;

10 (B) by striking paragraph (3) and inserting

11 the following:

12 ‘‘(3) OTHER PAYMENTS.—A producer shall not

13 be eligible for cost-share payments for practices on eli14 gible land under the program if the producer receives

15 cost-share payments or other benefits for the same

16 practice on the same land under another program.’’;

17 and

18 (C) by adding at the end the following:

19 ‘‘(4) GUARANTEED LOAN ELIGIBILITY.—Notwith20 standing section 333(1) of the Consolidated Farm and

21 Rural Development Act (7 U.S.C. 1983(1)), with re22 spect to the cost of a loan, a producer with an appli23 cation that meets the standards for a cost-share pay24 ment under this subsection but that is not approved

25 by the Secretary shall receive priority consideration
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1 for a guaranteed loan under section 304 of that Act

2 (7 U.S.C. 1924).’’;

3 (3) in subsection (e), by striking paragraph (2)

4 and inserting the following:

5 ‘‘(2) SPECIAL RULE.—In determining the

6 amount and rate of incentive payments, the Secretary

7 may accord great significance to a practice that pro8 motes residue, nutrient, air quality, pest, or predator

9 deterrence, including practices to deter predator spe10 cies protected under the Endangered Species Act of

11 1973 (16 U.S.C. 1531 et seq.), gray wolves, grizzly

12 bears, and black bears.’’;

13 (4) in subsection (g), by striking ‘‘2007’’ and in14 serting ‘‘2012’’;

15 (5) by redesignating subsections (d) through (h)

16 as subsections (c) through (g), respectively; and

17 (6) by adding at the end the following:

18 ‘‘(h) WATER CONSERVATION OR IRRIGATION EFFI19 CIENCY PRACTICE.—

20 ‘‘(1) IN GENERAL.—The Secretary may provide

21 technical assistance, cost-share payments, and incen22 tive payments to a producer for a water conservation

23 or irrigation practice.

24 ‘‘(2) PRIORITY.—In providing assistance and

25 payments to producers for a water conservation or ir-
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1 rigation practice, the Secretary may give priority to

2 applications in which—

3 ‘‘(A) there is an improvement in surface

4 flows or a reduction in the use of groundwater

5 in the agricultural operation of the producer,

6 consistent with the law of the State in which the

7 operation of the producer is located; or

8 ‘‘(B) the producer agrees not to use any as9 sociated water savings to bring new land, other

10 than incidental land needed for efficient oper11 ations, under irrigated production, unless the

12 producer is participating in a watershed-wide

13 project that will effectively conserve water, as de14 termined by the Secretary.

15 ‘‘(i) AIR QUALITY IMPROVEMENT PRACTICE.—

16 ‘‘(1) IN GENERAL.—The Secretary shall provide

17 technical and financial assistance to a producer to

18 promote air quality improvements and address air

19 quality concerns associated with agriculture.

20 ‘‘(2) PRIORITY.—In providing assistance for im21 provements in air quality, the Secretary shall give

22 priority to applications that—

23 ‘‘(A) are located in areas—

24 ‘‘(i) that are nonattainment areas with

25 respect to ambient air quality standards; or
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1 ‘‘(ii) in which there is air quality deg2 radation recognized by a State or local

3 agency or by the Secretary (in consultation

4 with the State Technical Committee) to

5 which agricultural emissions significantly

6 contribute;

7 ‘‘(B) are the most cost-effective in address8 ing air quality concerns; and

9 ‘‘(C)(i) reduce emissions and air pollutant

10 precursors from agricultural operations, includ11 ing through making improvements in mobile or

12 stationary equipment (including engines);

13 ‘‘(ii) would assist producers in meeting

14 Federal, State, or local regulatory requirements

15 relating to air quality;

16 ‘‘(iii) are part of a group of producers im17 plementing eligible conservation activities in a

18 coordinated manner to promote air quality; or

19 ‘‘(iv) reflect innovative approaches and

20 technologies.’’.

21 (d) ELIGIBILITY REQUIREMENT.—Section 1240B of

22 the Food Security Act of 1985 (16 U.S.C. 3839aa–2) (as

23 amended by subsection (c)) is amended by adding at the

24 end the following:
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1 ‘‘(i) ELIGIBILITY REQUIREMENT.—A producer shall

2 not be eligible to receive any payment under this section

3 unless the producer is a farmer or rancher that, as deter4 mined by the Secretary, derives or expects to derive at least

5 $15,000 in gross sales from farming, ranching, or forestry

6 operations (not including payments under the conservation

7 reserve program established under subchapter B of chapter

8 1 of subtitle D), as determined by the Secretary.’’.

9 SEC. 2354. EVALUATION OF OFFERS AND PAYMENTS.

10 Section 1240C of the Food Security Act of 1985 (16

11 U.S.C. 3839aa–3) is amended—

12 (1) in paragraph (1), by striking ‘‘and’’ at the

13 end;

14 (2) by redesignating paragraph (2) as para15 graph (3); and

16 (3) by inserting after paragraph (1) the fol17 lowing:

18 ‘‘(2) improve conservation practices or systems

19 in place on the operation at the time the contract

20 offer is accepted or to complete a conservation system;

21 and’’.

22 SEC. 2355. DUTIES OF PRODUCERS.

23 Section 1240D(2) of the Food Security Act of 1985 (16

24 U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm or

25 ranch’’ and inserting ‘‘farm, ranch, or forest land’’.
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1 SEC. 2356. ENVIRONMENTAL QUALITY INCENTIVES PRO2 GRAM PLAN.

3 Section 1240E(a) of the Food Security Act of 1985 (16

4 U.S.C. 3839aa–5(a)) is amended—

5 (1) in the matter preceding paragraph (1), by

6 inserting ‘‘, or an entity described in section 1244(e)

7 acting on behalf of producers,’’ after ‘‘producer’’;

8 (2) in paragraph (2), by striking ‘‘and’’ after the

9 semicolon at the end;

10 (3) in paragraph (3), by striking the period at

11 the end and inserting ‘‘; and’’; and

12 (4) by adding at the end the following:

13 ‘‘(4) in the case of forest land, is consistent with

14 a forest management plan that is approved by the

15 Secretary, which may include—

16 ‘‘(A) a forest stewardship plan described in

17 section 5 of the Cooperative Forestry Assistance

18 Act of 1978 (16 U.S.C. 2103a);

19 ‘‘(B) another practice plan approved by the

20 State forester; or

21 ‘‘(C) another plan determined appropriate

22 by the Secretary.’’.

23 SEC. 2357. LIMITATION ON PAYMENTS.

24 Section 1240G of the Food Security Act of 1985 (16

25 U.S.C. 3839aa–7) is amended—
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1 (1) by striking ‘‘An individual’’ and inserting

2 ‘‘(a) IN GENERAL.—Subject to section 1244(i), an in3 dividual’’; and

4 (2) by adding at the end the following:

5 ‘‘(b) PRODUCER ORGANIZATIONS.—In the case of an

6 entity described in section 1244(e), the limitation estab7 lished under this section shall apply to each participating

8 producer and not to the entity described in section

9 1244(e).’’.

10 SEC. 2358. CONSERVATION INNOVATION GRANTS.

11 Section 1240H of the Food Security Act of 1985 (16

12 U.S.C. 3839aa–8) is amended—

13 (1) by striking subsection (a) and inserting the

14 following:

15 ‘‘(a) IN GENERAL.—The Secretary may pay the cost

16 of competitive grants that leverage Federal investment in

17 environmental enhancement and protection through the

18 program by—

19 ‘‘(1) stimulating the development of innovative

20 technologies; and

21 ‘‘(2) transferring those technologies to agricul22 tural and nonindustrial private forest land in pro23 duction.’’; and

24 (2) in subsection (b), by striking paragraph (2)

25 and inserting the following:
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1 ‘‘(2)(A) implement innovative conservation tech2 nologies, such as market systems for pollution reduc3 tion and practices for the storing of carbon in the

4 soil;

5 ‘‘(B) provide a mechanism for transferring those

6 technologies to agricultural and nonindustrial private

7 forest land in production; and

8 ‘‘(C) increase environmental and resource con9 servation benefits through specialty crop production;

10 and’’.

11 SEC. 2359. GROUND AND SURFACE WATER CONSERVATION.

12 Section 1240I of the Food Security Act of 1985 (16

13 U.S.C. 3839aa–9) is amended by striking subsection (c) and

14 inserting the following:

15 ‘‘(c) FUNDING.—

16 ‘‘(1) AVAILABILITY OF FUNDS.—Of the funds of

17 the Commodity Credit Corporation, in addition to

18 amounts made available under section 1241(a) to

19 carry out this chapter, the Secretary shall use—

20 ‘‘(A) $65,000,000 for each of fiscal years

21 2008 through 2012; and

22 ‘‘(B) $60,000,000 for each fiscal year there23 after.
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1 ‘‘(2) FUNDING FOR CERTAIN STATES.—Of the

2 funds made available under paragraph (1), the Sec3 retary shall—

4 ‘‘(A) provide to each State that received

5 funds under this title during the period of fiscal

6 years 2002 through 2007, the greater of—

7 ‘‘(i) the simple average of amounts al8 located to producers in the State under this

9 section for the period of fiscal years 2002

10 through 2007; or

11 ‘‘(ii) the amount allocated to producers

12 in the State under this section in fiscal year

13 2007; and

14 ‘‘(B) in the case of each State the bound15 aries of which encompass a multistate aquifer

16 from which documented groundwater with17 drawals exceed 16,000,000,000 gallons per day,

18 provide an amount not less than the greater of—

19 ‘‘(i) $3,000,000; or

20 ‘‘(ii) the amount provided under sub21 paragraph (A).

22 ‘‘(3) EASTERN SNAKE PLAIN AQUIFER PILOT.—

23 ‘‘(A) IN GENERAL.—Of the funds made

24 available under paragraph (1), the Secretary

25 shall reserve not less than $2,000,000, to remain
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1 available until expended, for regional water con2 servation activities in the Eastern Snake Aquifer

3 region.

4 ‘‘(B) APPROVAL.—The Secretary may ap5 prove regional water conservation activities

6 under this paragraph that address, in whole or

7 in part, water quality issues.’’.

8 SEC. 2360. ORGANIC CONVERSION.

9 The Food Security Act of 1985 is amended by inserting

10 after section 1240I (16 U.S.C. 3839aa–9) the following:

11 ‘‘SEC. 1240J. ORGANIC CONVERSION.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) NATIONAL ORGANIC PROGRAM.—The term

14 ‘national organic program’ means the national or15 ganic program established under the Organic Foods

16 Production Act of 1990 (7 U.S.C. 6501 et. seq.).

17 ‘‘(2) ORGANIC SYSTEM PLAN.—The term ‘organic

18 system plan’ means an organic plan approved under

19 the national organic program.

20 ‘‘(b) ESTABLISHMENT.—Under the environmental

21 quality incentives program established under this chapter,

22 not later than 180 days after the date of enactment of this

23 section, the Secretary shall establish a program under which

24 the Secretary shall provide cost-share and incentive pay25 ments to producers to promote conservation practices and
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1 activities for production systems undergoing conversion on

2 some or all of the operations of the producer to organic pro3 duction in accordance with the Organic Foods Production

4 Act of 1990 (7 U.S.C. 6501 et seq.).

5 ‘‘(c) ORGANIC CONVERSION COST-SHAREAND INCEN6 TIVE PAYMENTS.—The Secretary shall provide organic con7 version cost-share and incentive payments to producers

8 that—

9 ‘‘(1) are converting to organic production sys10 tems, including producers with existing certified or11 ganic production for conversion to organic production

12 of land and livestock not previously certified organic;

13 and

14 ‘‘(2) enter into contracts with the Secretary for

15 eligible practices and activities described in subsection

16 (d).

17 ‘‘(d) ELIGIBLE PRACTICES AND ACTIVITIES.—Pro18 ducers may use funds made available under subsection (c)

19 for—

20 ‘‘(1) practices and activities during conversion to

21 certified organic production that—

22 ‘‘(A) are required by, or consistent with, an

23 approved organic system plan; and

24 ‘‘(B) protect resources of concern, as identi25 fied by the Secretary;
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1 ‘‘(2) technical services, including the costs of de2 veloping an approved organic system plan; and

3 ‘‘(3) such other measures as the Secretary deter4 mines to be appropriate and consistent with an ap5 proved organic system plan.

6 ‘‘(e) ELIGIBLE PRODUCERS.—To be eligible to receive

7 cost-share and incentive payments under this section, a pro8 ducer shall agree—

9 ‘‘(1) to develop and carry out conservation and

10 environmental activities that—

11 ‘‘(A) are required by, or consistent with, an

12 approved organic system plan; and

13 ‘‘(B) protect resources of concern, as identi14 fied by the Secretary;

15 ‘‘(2) to receive technical and educational assist16 ance from the Secretary or from an organization, in17 stitute, or consultant with a cooperative agreement

18 with the Secretary relating to—

19 ‘‘(A) the development of an organic system

20 plan and the implementation of conservation

21 practices and activities that are part of an or22 ganic system plan; or

23 ‘‘(B) other aspects of an organic system

24 plan, including marketing, credit, business, and

25 risk management plans; and
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1 ‘‘(3) to submit annual verification by a certi2 fying entity accredited by the Secretary to determine

3 the compliance of the producer with organic certifi4 cation requirements.

5 ‘‘(f) TERM.—Notwithstanding section 1240B(b)(2)(A),

6 a contract under this section shall have a term of—

7 ‘‘(1) not less than 3 years; and

8 ‘‘(2) not more than 4 years.

9 ‘‘(g) LIMITATIONS ON PAYMENTS.—As part of the pay10 ment limitation described in section 1240G, an individual

11 or entity may not receive, directly or indirectly, cost-share

12 or incentive payments under this section—

13 ‘‘(1) for a period of more than 4 years; or

14 ‘‘(2) that, in the aggregate and exclusive of tech15 nical assistance, exceed—

16 ‘‘(A) $20,000 per year; or

17 ‘‘(B) a total amount of $80,000.

18 ‘‘(h) TERMINATION OF CONTRACTS.—The Secretary

19 may cancel or otherwise nullify a contract entered into

20 under this section if the Secretary determines the producers

21 are not pursuing organic certification.’’.

22 SEC. 2361. CHESAPEAKE BAY WATERSHED CONSERVATION

23 PROGRAM.

24 The Food Security Act of 1985 is amended by inserting

25 after section 1240J (as added by section 2360) the following:
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1 ‘‘SEC. 1240K. CHESAPEAKE BAY WATERSHED CONSERVA2 TION PROGRAM.

3 ‘‘(a) DEFINITION OF CHESAPEAKE BAY WATER4 SHED.—In this section, the term ‘Chesapeake Bay water5 shed’ includes all tributaries, backwaters, and side channels

6 (including watersheds) draining into the Chesapeake Bay.

7 ‘‘(b) ESTABLISHMENT.—The Secretary shall use the

8 authorities granted under the environmental quality incen9 tives program established under this chapter to address nat10 ural resource concerns relating to agricultural and non11 industrial private forest land in the Chesapeake Bay water12 shed.

13 ‘‘(c) FUNDING.—Of the funds of the Commodity Credit

14 Corporation, the Secretary shall use $165,000,000 to carry

15 out this section for the period of fiscal years 2008 through

16 2012.’’.

17 CHAPTER 3—FARMLAND PROTECTION

18 Subchapter A—Farmland Protection Program

19 SEC. 2371. FARMLAND PROTECTION PROGRAM.

20 (a) DEFINITIONS.—Section 1238H of the Food Secu21 rity Act of 1985 (16 U.S.C. 3838h) is amended—

22 (1) by striking paragraph (1) and inserting the

23 following:

24 ‘‘(1) ELIGIBLEENTITY.—The term ‘eligible enti25 ty’ means—
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1 ‘‘(A) any agency of any State or local gov2 ernment or an Indian tribe (including a farm3 land protection board or land resource council

4 established under State law); or

5 ‘‘(B) any organization that—

6 ‘‘(i) is organized for, and at all times

7 since the formation of the organization has

8 been operated principally for, 1 or more of

9 the conservation purposes specified in clause

10 (i), (ii), (iii), or (iv) of section 170(h)(4)(A)

11 of the Internal Revenue Code of 1986;

12 ‘‘(ii) is an organization described in

13 section 501(c)(3) of that Code that is ex14 empt from taxation under section 501(a) of

15 that Code; and

16 ‘‘(iii) is—

17 ‘‘(I) described in paragraph (1) or

18 (2) of section 509(a) of that Code; or

19 ‘‘(II) described in section

20 509(a)(3), and is controlled by an or21 ganization described in section

22 509(a)(2), of that Code.’’; and

23 (2) in paragraph (2)—

24 (A) in subparagraph (A), by striking

25 clauses (i) and (ii) and inserting the following:
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1 ‘‘(i) has prime, unique, or other pro2 ductive soil;

3 ‘‘(ii) contains historical or archae4 ological resources; or

5 ‘‘(iii) furthers a State or local policy

6 consistent with the purposes of the pro7 gram.’’; and

8 (B) in subparagraph (B)—

9 (i) in clause (iv), by striking ‘‘and’’ at

10 the end;

11 (ii) by striking clause (v) and insert12 ing the following:

13 ‘‘(v) forest land that—

14 ‘‘(I) contributes to the economic

15 viability of an agricultural operation;

16 or

17 ‘‘(II) serves as a buffer to protect

18 an agricultural operation from devel19 opment; and

20 ‘‘(vi) land that is incidental to land

21 described in clauses (i) through (v), if the

22 incidental land is determined by the Sec23 retary to be necessary for the efficient ad24 ministration of a conservation easement.’’.
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1 (b) FARMLAND PROTECTION.—Section 1238I of the

2 Food Security Act of 1985 (16 U.S.C. 3838i) is amended—

3 (1) in subsection (a), by striking ‘‘purchase con4 servation easements’’ and all the follows through the

5 end of the subsection and inserting ‘‘enter into cooper6 ative agreements with eligible entities for the eligible

7 entities to purchase permanent conservation ease8 ments or other interests in eligible land for the pur9 pose of protecting the agricultural use and related

10 conservation values of the land by limiting incompat11 ible nonagricultural uses of the land.’’;

12 (2) by redesignating subsections (b) and (c) as

13 subsections (e) and (f), respectively;

14 (3) by inserting after subsection (a) the fol15 lowing:

16 ‘‘(b) TERMS AND CONDITIONS FOR COOPERATIVE

17 AGREEMENTS.—

18 ‘‘(1) IN GENERAL.—The Secretary shall establish

19 the terms and conditions of any cooperative agree20 ment entered into under this subchapter under which

21 the eligible entity shall use funds provided by the Sec22 retary.

23 ‘‘(2) MINIMUM REQUIREMENTS.—A cooperative

24 agreement shall, at a minimum—
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1 ‘‘(A) specify the qualifications of the eligible

2 entity to carry out the responsibilities of the eli3 gible entity under the program, including acqui4 sition and management policies and procedures

5 that ensure the long-term integrity of the con6 servation easement protections;

7 ‘‘(B) subject to subparagraph (C), identify a

8 specific project or a range of projects funded

9 under the agreement;

10 ‘‘(C) allow, upon mutual agreement of the

11 parties, substitution of qualified projects that are

12 identified at the time of substitution;

13 ‘‘(D) specify the manner in which the eligi14 ble entity will evaluate and report the use of

15 funds to the Secretary;

16 ‘‘(E) allow the eligible entity flexibility to

17 use the terms and conditions of the eligible entity

18 for conservation easements and other purchases

19 of interests in land, except that—

20 ‘‘(i) subject to clause (ii), each ease21 ment shall include a limitation on the total

22 quantity of impervious surface of not more

23 than—

24 ‘‘(I) 20 percent of the first 10

25 acres;
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1 ‘‘(II) 5 percent of the next 90

2 acres; and

3 ‘‘(III) 1 percent of any additional

4 acres; and

5 ‘‘(ii) the Secretary may waive a limi6 tation under clause (i) after a determina7 tion by the Secretary that the eligible entity

8 has in place a requirement that provides

9 substantially-similar protection consistent

10 with agricultural activities regarding the

11 impervious surfaces to be allowed for any

12 conservation easement or other interest in

13 land purchases using funds provided under

14 the program;

15 ‘‘(F) require appraisals of acquired interests

16 in eligible land that comply with, at the option

17 of the eligible entity—

18 ‘‘(i) the Uniform Standards of Profes19 sional Appraisal Practice; or

20 ‘‘(ii) any other industry-approved

21 standard, as determined by the Secretary;

22 and

23 ‘‘(G) allow as part of the share of the eligi24 ble entity of the cost to purchase a conservation

25 easement or other interest in eligible land de-
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1 scribed in subsection (a), that an eligible entity

2 may include a charitable donation or qualified

3 conservation contribution (as defined by section

4 170(h) of the Internal Revenue Code of 1986),

5 from the private landowner from which the con6 servation easement will be purchased.

7 ‘‘(c) COST SHARING.—

8 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

9 and (3), the Secretary may provide a share of the

10 purchase price of a conservation easement or other in11 terest in land acquired by an eligible entity under the

12 program.

13 ‘‘(2) MAXIMUM AMOUNT OF FAIR MARKET

14 VALUE.—The Secretary shall not pay more than 50

15 percent of the appraised fair market value of the ac16 quisition under this subsection.

17 ‘‘(3) MINIMUM SHAREBY ELIGIBLEENTITY.—

18 The eligible entity shall be required to provide a share

19 of the cost under this subsection in an amount that

20 is not less than the lesser of—

‘‘(A) 1 21 ⁄2 of the purchase price of the acquisi22 tion;

23 ‘‘(B) if the landowner has made a donation

24 of 25 percent or less of the appraised fair market

25 value of the acquisition, an amount that, when
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1 combined with the donation, equals the amount

2 of the payment by the Secretary; or

3 ‘‘(C) if the landowner has made a donation

4 of more than 25 percent of the appraised fair

market value of the acquisition, 1 5 ⁄3 of the pur6 chase price of the acquisition.

7 ‘‘(d) PROTECTION OF FEDERAL INVESTMENT.—

8 ‘‘(1) IN GENERAL.—The Secretary shall ensure

9 that the terms of an easement acquired by the eligible

10 entity provides protection for the Federal investment

11 through an executory limitation by the Federal Gov12 ernment.

13 ‘‘(2) RELATIONSHIP TO FEDERAL ACQUISITION

14 OF REAL PROPERTY.—The inclusion of a Federal ex15 ecutory limitation described in paragraph (1) shall—

16 ‘‘(A) not be considered the Federal acquisi17 tion of real property; and

18 ‘‘(B) not trigger any Federal appraisal or

19 other real property requirements, including the

20 Federal standards and procedures for land ac21 quisition.’’; and

22 (4) in subsection (f) (as redesignated by para23 graph (2)), by striking ‘‘COST SHARING.—’’ and all

24 that follows through ‘‘BIDDING DOWN.—’’ and insert25 ing ‘‘BIDDING DOWN.—’’.
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1 Subchapter B—Grassland Reserve Program

2 SEC. 2381. GRASSLAND RESERVE PROGRAM.

3 Subchapter C of chapter 2 of subtitle D of title XII

4 of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.)

5 is amended to read as follows:

6 ‘‘Subchapter C—Grassland Reserve Program

7 ‘‘SEC. 1238N. DEFINITIONS.

8 ‘‘In this subchapter:

9 ‘‘(1) ELIGIBLEENTITY.—The term ‘eligible enti10 ty’ means—

11 ‘‘(A) any agency of any State or local gov12 ernment or an Indian tribe (including a farm13 land protection board or land resource council

14 established under State law); or

15 ‘‘(B) any organization that—

16 ‘‘(i) is organized for, and at all times

17 since the formation of the organization has

18 been operated principally for, 1 or more of

19 the conservation purposes specified in clause

20 (i), (ii), (iii), or (iv) of section 170(h)(4)(A)

21 of the Internal Revenue Code of 1986;

22 ‘‘(ii) is an organization described in

23 section 501(c)(3) of that Code that is ex24 empt from taxation under section 501(a) of

25 that Code; and
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1 ‘‘(iii) is—

2 ‘‘(I) described in paragraph (1) or

3 (2) of section 509(a) of that Code; or

4 ‘‘(II) described in section

5 509(a)(3), and is controlled by an or6 ganization described in section

7 509(a)(2), of that Code.

8 ‘‘(2) ELIGIBLELAND.—The term ‘eligible land’

9 means private land that—

10 ‘‘(A) is grassland, rangeland, land that con11 tains forbs, or shrub land (including improved

12 rangeland and pastureland) for which grazing is

13 the predominant use;

14 ‘‘(B) is located in an area that has been his15 torically dominated by grassland, forbs, or shrub

16 land, and the land potentially could provide

17 habitat for animal or plant populations of sig18 nificant ecological value if the land—

19 ‘‘(i) is retained in the current use of

20 the land;

21 ‘‘(ii) is restored to a natural condition;

22 ‘‘(iii) contains historical or archeo23 logical resources;

24 ‘‘(iv) would further the goals and objec25 tives of State, regional, and national fish,
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1 and wildlife conservation plans and initia2 tives; or

3 ‘‘(v) is incidental to land described in

4 clauses (i) through (iv), if the incidental

5 land is determined by the Secretary to be

6 necessary for the efficient administration of

7 an agreement or conservation easement.

8 ‘‘(3) PERMANENT CONSERVATION EASEMENT.—

9 The term ‘permanent conservation easement’ means a

10 conservation easement that is—

11 ‘‘(A) a permanent easement; or

12 ‘‘(B) in a State that imposes a maximum

13 duration for easements, an easement for the max14 imum duration allowed under State law.

15 ‘‘SEC. 1238O. GRASSLAND RESERVE PROGRAM.

16 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

17 and carry out a grassland reserve program through which

18 the Secretary shall provide payments and technical assist19 ance to landowners to assist in restoring and conserving

20 eligible land described in section 1238N(2).

21 ‘‘(b) ENROLLMENT OF LAND.—

22 ‘‘(1) IN GENERAL.—The Secretary may enroll el23 igible land in the program through—

24 ‘‘(A) an easement or contract described in

25 paragraph (2); or
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1 ‘‘(B) a cooperative agreement with an eligi2 ble entity.

3 ‘‘(2) OPTIONS.—Eligible land enrolled in the

4 program shall be subject to—

5 ‘‘(A) a 30-year contract;

6 ‘‘(B) a 30-year conservation easement; or

7 ‘‘(C) a permanent conservation easement.

8 ‘‘(3) ENROLLMENT OF CONSERVATION RESERVE

9 ACREAGE.—

10 ‘‘(A) IN GENERAL.—Eligible land enrolled

11 in the conservation reserve program established

12 under subchapter B of chapter 1 may be enrolled

13 into permanent conservation easements under

14 this subchapter if—

15 ‘‘(i) the Secretary determines that the

16 eligible land—

17 ‘‘(I) is of high ecological value;

18 and

19 ‘‘(II) would be under significant

20 threat of conversion to other uses if the

21 conservation reserve program contract

22 were terminated; and

23 ‘‘(ii) the landowner agrees to the en24 rollment.
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1 ‘‘(B) MAXIMUM ENROLLMENT.—The number

2 of acres of conservation reserve program land en3 rolled under this paragraph in a calendar year

4 shall not exceed the number of acres that could

5 be funded by 10 percent of the total amount of

6 funds available for this section for a fiscal year.

7 ‘‘(C) PROHIBITION ON DUPLICATEPAY8 MENTS.—Eligible land enrolled in the program

9 shall no longer be eligible for payments under the

10 conservation reserve program.

11 ‘‘(c) RESTORATION AGREEMENTS.—The Secretary

12 may enter into a restoration agreement with a landowner,

13 as determined appropriate by the Secretary.

14 ‘‘(d) CONSERVATION EASEMENT TITLE.—The title

15 holder of a conservation easement obtained under this sub16 chapter may be—

17 ‘‘(1) the Secretary; or

18 ‘‘(2) an eligible entity.

19 ‘‘SEC. 1238P. DUTIES.

20 ‘‘(a) DUTIES OF LANDOWNERS.—

21 ‘‘(1) IN GENERAL.—To become eligible to enroll

22 eligible land through the grant of a conservation ease23 ment, the landowner shall—
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1 ‘‘(A) create and record an appropriate deed

2 restriction in accordance with applicable State

3 law;

4 ‘‘(B) provide proof of clear title to the un5 derlying fee interest in the eligible land that is

6 subject of the conservation easement;

7 ‘‘(C) provide a written statement of consent

8 to the easement signed by persons holding a secu9 rity interest or any vested interest in the land;

10 ‘‘(D) grant the conservation easement to the

11 Secretary or an eligible entity; and

12 ‘‘(E) comply with the terms of the conserva13 tion easement and any associated restoration

14 agreement.

15 ‘‘(2) RESTORATION AGREEMENT.—If a restora16 tion agreement is required by the Secretary, the land17 owner shall develop and implement a restoration

18 plan.

19 ‘‘(b) DUTIES OF SECRETARY.—

20 ‘‘(1) EVALUATION OF OFFERS.—

21 ‘‘(A) IN GENERAL.—The Secretary shall es22 tablish criteria to evaluate and rank applica23 tions for easements and contracts under this sub24 chapter.
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1 ‘‘(B) CONSIDERATIONS.—In establishing the

2 criteria, the Secretary shall emphasize support

3 for—

4 ‘‘(i) grazing operations;

5 ‘‘(ii) plant and animal biodiversity;

6 ‘‘(iii) grassland, land that contains

7 forbs, and shrubland under the greatest

8 threat of conversion; and

9 ‘‘(iv) other considerations, as deter10 mined by the Secretary.

11 ‘‘(C) PRIORITY.—In evaluating offers under

12 this subchapter, the Secretary may give priority

13 to applications that—

14 ‘‘(i) include a cash contribution from

15 the eligible entity submitting the applica16 tion; or

17 ‘‘(ii) leverage resources from other

18 sources.

19 ‘‘(2) COMPENSATION.—

20 ‘‘(A) IN GENERAL.—

21 ‘‘(i) EASEMENTS AND CONTRACTS.—In

22 return for the granting of an easement, the

23 Secretary shall provide to the landowner an

24 amount that is equal to—
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1 ‘‘(I) in the case of a permanent

2 easement, the fair market value of the

3 land less the grazing value of the land

4 encumbered by the easement; and

5 ‘‘(II) in the case of a 30-year

6 easement or 30-year contract, 30 per7 cent of the fair market value of the

8 land less the grazing value of the land

9 for the period during which the land is

10 encumbered by the easement.

11 ‘‘(ii) RESTORATION AGREEMENTS.—In

12 making cost-share payments for restoration

13 agreements, the Secretary shall make pay14 ments to the landowner—

15 ‘‘(I) in the case of a permanent

16 easement, in an amount that is not less

17 than 90, but not more than 100, per18 cent of the eligible costs; and

19 ‘‘(II) in the case of a 30-year

20 easement or 30-year contract, in an

21 amount that is not less than 50, but

22 not more than 75, percent of the eligi23 ble costs.

24 ‘‘(B) DELIVERY OF PAYMENTS.—
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1 ‘‘(i) PAYMENT SCHEDULE.—Except as

2 otherwise provided in this subchapter, pay3 ments may be provided pursuant to an

4 easement, contract, or other agreement, in

5 not more than 30 annual payments, and in

6 an equal or unequal amounts, as agreed to

7 by the Secretary and the landowner.

8 ‘‘(ii) PAYMENTS TO OTHERS.—If an

9 owner that is entitled to a payment under

10 this subchapter dies, becomes incompetent,

11 is otherwise unable to receive the payment,

12 or is succeeded by another person who ren13 ders or completes the required performance,

14 the Secretary shall make the payment, in

15 accordance with regulations promulgated by

16 the Secretary and without regard to any

17 other provision of law, in such manner as

18 the Secretary determines is fair and reason19 able after considering all the circumstances.

20 ‘‘(3) TECHNICAL ASSISTANCE.—If a restoration

21 agreement is required by the Secretary, the Secretary

22 shall provide technical assistance to comply with the

23 terms and conditions of the restoration agreement.
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1 ‘‘SEC. 1238Q. TERMS AND CONDITIONS.

2 ‘‘(a) TERMS AND CONDITIONS OF EASEMENT OR CON3 TRACTS.—An easement or contract under this subchapter

4 shall—

5 ‘‘(1) permit—

6 ‘‘(A) common grazing practices, including

7 maintenance and necessary cultural practices, on

8 the land in a manner that is consistent with

9 maintaining the viability of grassland, forb, and

10 shrub species appropriate to that locality;

11 ‘‘(B) haying, mowing, or harvesting for seed

12 production, subject to appropriate restrictions

13 during the nesting season for birds in the local

14 area that are in significant decline or are con15 served in accordance with Federal or State law,

16 as determined by the State Conservationist; and

17 ‘‘(C) fire presuppression, rehabilitation, and

18 construction of fire breaks and fences (including

19 placement of the posts necessary for fences);

20 ‘‘(2) prohibit—

21 ‘‘(A) the production of crops (other than

22 hay), fruit trees, vineyards, or any other agricul23 tural commodity that is inconsistent with main24 taining grazing land; and

25 ‘‘(B) except as permitted under a restora26 tion plan, the conduct of any other activity that
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1 would be inconsistent with maintaining grazing

2 land covered by the easement or agreement; and

3 ‘‘(3) include such additional provisions as the

4 Secretary determines are appropriate to carry out or

5 facilitate the administration of this subchapter.

6 ‘‘(b) TERMS AND CONDITIONS OF COOPERATIVE

7 AGREEMENTS.—

8 ‘‘(1) IN GENERAL.—The Secretary shall establish

9 the terms and conditions of any cooperative agree10 ment entered into under this subchapter under which

11 the eligible entity shall use funds provided by the Sec12 retary.

13 ‘‘(2) MINIMUM REQUIREMENTS.—A cooperative

14 agreement shall, at a minimum—

15 ‘‘(A) specify the qualification of the eligible

16 entity to carry out the responsibilities of the eli17 gible entity under the program, including acqui18 sition, monitoring, enforcement, and manage19 ment policies and procedures that ensure the

20 long-term integrity of the conservation easement

21 protections;

22 ‘‘(B) subject to subparagraph (C), identify a

23 specific project or a range of projects funded

24 under the agreement;
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1 ‘‘(C) allow, upon mutual agreement of the

2 parties, substitution of qualified projects that are

3 identified at the time of substitution;

4 ‘‘(D) specify the manner in which the eligi5 ble entity will evaluate and report the use of

6 funds to the Secretary;

7 ‘‘(E) allow the eligible entity flexibility to

8 develop and use terms and conditions for con9 servation easements and other purchases of inter10 est in eligible land, if the Secretary finds the

11 terms and conditions consistent with the pur12 poses of the program and adequate to achieve

13 and permit effective enforcement of the conserva14 tion purposes of the conservation easements or

15 other interests;

16 ‘‘(F) require appraisals of acquired interests

17 in eligible land that comply with a method ap18 proved by industry;

19 ‘‘(G) if applicable, allow as part of the

20 share of the eligible entity of the cost to purchase

21 a conservation easement or other interest in eli22 gible land described in section 1238O(b), that an

23 eligible entity may include a charitable donation

24 or qualified conservation contribution (as defined

25 by section 170(h) of the Internal Revenue Code
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1 of 1986), from the private landowner for which

2 the conservation easement will be purchased; and

3 ‘‘(H) provide for a schedule of payments to

4 an eligible entity, as agreed to by the Secretary

5 and the eligible entity, over a term of not to ex6 ceed 30 years.

7 ‘‘(3) PROTECTION OF FEDERAL INVESTMENT.—

8 ‘‘(A) IN GENERAL.—The Secretary shall en9 sure that the terms of an easement acquired by

10 the eligible entity provides protection for the

11 Federal investment through an executory limita12 tion by the Federal government.

13 ‘‘(B) RELATIONSHIP TO FEDERAL ACQUISI14 TION OF REAL PROPERTY.—The inclusion of an

15 executory limitation described in subparagraph

16 (A) shall—

17 ‘‘(i) not be considered the Federal ac18 quisition of real property; and

19 ‘‘(ii) not trigger any Federal appraisal

20 or other real property requirements, includ21 ing the Federal standards and procedures

22 for land acquisition.

23 ‘‘(C) TERMS OF RESTORATION AGREE24 MENT.—A restoration agreement shall contain—
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1 ‘‘(i) a statement of the conservation

2 measures and practices that will be under3 taken in regard to the eligible land subject

4 to the conservation easement;

5 ‘‘(ii) restrictions on the use of the eligi6 ble land subject to the conservation ease7 ment; and

8 ‘‘(iii) a statement of the respective du9 ties of the Secretary, landowner, and eligi10 ble entity, as appropriate.

11 ‘‘(c) VIOLATION.—If a violation occurs of the terms or

12 conditions of a conservation easement, contract, cooperative

13 agreement or restoration agreement entered into under this

14 section—

15 ‘‘(1) the conservation easement, contract, cooper16 ative agreement, or restoration agreement shall re17 main in force; and

18 ‘‘(2) the Secretary may require the owner or en19 tity to refund all or part of any payments received

20 by the owner under this subchapter, with interest on

21 the payments as determined appropriate by the Sec22 retary.’’.
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1 CHAPTER 4—OTHER CONSERVATION

2 PROGRAMS

3 SEC. 2391. CONSERVATION SECURITY PROGRAM.

4 Subchapter A of chapter 2 of subtitle D of title XII

5 of the Food Security Act of 1985 is amended by adding

6 after section 1238C (16 U.S.C. 3838c) the following:

7 ‘‘SEC. 1238D. PERIOD OF EFFECTIVENESS.

8 ‘‘(a) IN GENERAL.—This subchapter, and the terms

9 and conditions of the conservation security program, shall

10 continue to apply to conservation security contracts entered

11 into as of the date before the date of enactment of this sec12 tion.

13 ‘‘(b) PAYMENTS.—The Secretary shall make payments

14 under this subchapter with respect to conservation security

15 contracts described in subsection (a) during the term of the

16 contracts.

17 ‘‘(c) PROHIBITION ON NEW CONTRACTS.—A conserva18 tion security contract may not be entered into or renewed

19 under this subchapter as of the date of enactment of this

20 section.

21 ‘‘(d) LIMITATION.—A contract described in subsection

22 (a) may not be administered under the regulations issued

23 under section 1240Y.’’.
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1 SEC. 2392. CONSERVATION OF PRIVATE GRAZING LAND.

2 Section 1240M(e) of the Food Security Act of 1985 (16

3 U.S.C. 3839bb(e)) is amended by striking ‘‘2007’’ and in4 serting ‘‘2012’’.

5 SEC. 2393. REAUTHORIZATION OF WILDLIFE HABITAT IN6 CENTIVE PROGRAM.

7 Section 1240N of the Food Security Act of 1985 (16

8 U.S.C. 3839bb–1) is amended—

9 (1) in subsection (b)—

10 (A) in the subsection heading, by striking

11 ‘‘COST-SHARE’’;

12 (B) in paragraph (1), by inserting ‘‘and in13 centive’’ after ‘‘cost-share’’; and

14 (C) in paragraph (2)(B), by striking ‘‘15

15 percent’’ and inserting ‘‘25 percent’’; and

16 (2) by adding at the end the following:

17 ‘‘(d) FISH AND WILDLIFE CONSERVATION PLANS AND

18 INITIATIVES.—In carrying out this section, the Secretary

19 shall give priority to projects that would further the goals

20 and objectives of State, regional, and national fish and

21 wildlife conservation plans and initiatives.

22 ‘‘(e) DURATION OF PROGRAM.—Using funds made

23 available under section 1241(a)(7), the Secretary shall

24 carry out the program during each of fiscal years 2008

25 through 2012.’’.
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1 SEC. 2394. GRASSROOTS SOURCE WATER PROTECTION PRO2 GRAM.

3 Section 1240O of the Food Security Act of 1985 (16

4 U.S.C. 3839bb–2) is amended by striking subsection (b) and

5 inserting the following:

6 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to carry out this section

8 $20,000,000 for each of fiscal years 2008 through 2012.’’.

9 SEC. 2395. GREAT LAKES BASIN PROGRAM FOR SOIL ERO10 SION AND SEDIMENT CONTROL.

11 Section 1240P of the Food Security Act of 1985 (16

12 U.S.C. 3839bb–3) is amended to read as follows:

13 ‘‘SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL ERO14 SION AND SEDIMENT CONTROL.

15 ‘‘(a) IN GENERAL.—The Secretary, in consultation

16 with the Great Lakes Commission created by Article IV of

17 the Great Lakes Basin Compact (82 Stat. 415) and in co18 operation with the Administrator of the Environmental

19 Protection Agency and the Secretary of the Army, may

20 carry out the Great Lakes basin program for soil erosion

21 and sediment control (referred to in this section as the ‘pro22 gram’) to assist in implementing the recommendations of

23 the Great Lakes Regional Collaboration Strategy to Restore

24 and Protect the Great Lakes.

25 ‘‘(b) ASSISTANCE.—In carrying out the program, the

26 Secretary may—
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1 ‘‘(1) provide project demonstration grants, pro2 vide technical assistance, and carry out information

3 and educational programs to improve water quality

4 in the Great Lakes basin by reducing soil erosion and

5 improving sediment control; and

6 ‘‘(2) establish a priority for projects and activi7 ties that—

8 ‘‘(A) directly reduce soil erosion or improve

9 sediment control;

10 ‘‘(B) reduce soil loss in degraded rural wa11 tersheds; or

12 ‘‘(C) improve hydrological conditions in

13 urban watersheds.

14 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated to carry out this section

16 $5,000,000 for each of fiscal years 2008 through 2012.’’.

17 SEC. 2396. FARM VIABILITY PROGRAM.

18 Section 1238J(b) of the Food Security Act of 1985 (16

19 U.S.C. 3838j(b)) is amended by striking ‘‘2007’’ and insert20 ing ‘‘2012’’.

21 SEC. 2397. DISCOVERY WATERSHED DEMONSTRATION PRO22 GRAM.

23 Chapter 5 of subtitle D of title XII of the Food Security

24 Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by add25 ing at the end the following:
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1 ‘‘SEC. 1240Q. DISCOVERY WATERSHED DEMONSTRATION

2 PROGRAM.

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

4 and carry out a demonstration program in not less than

5 30 small watersheds in States of the Upper Mississippi

6 River basin to identify and promote the most cost-effective

7 and efficient approaches to reducing the loss of nutrients

8 to surface waters.

9 ‘‘(b) PURPOSE.—The demonstration program shall

10 demonstrate in small watersheds performance-based and

11 market-based approaches—

12 ‘‘(1) to reduce the loss of nutrients to surface wa13 ters from agricultural land; and

14 ‘‘(2) to monitor the cost-effectiveness of manage15 ment practices designed to reduce the loss of nutrients

16 to surface waters from agricultural land.

17 ‘‘(c) PARTNERSHIPS.—In carrying out this section, the

18 Secretary may establish or identify, as appropriate, part19 nerships to select the watersheds and to encourage coopera20 tive effort among the Secretary and State, local, and non21 governmental organizations.

22 ‘‘(d) SELECTION OF SMALL WATERSHEDS.—In select23 ing small watersheds for participation in the program, the

24 Secretary shall consider the extent to which—

25 ‘‘(1) reducing nutrient losses to surface water in

26 the small watershed would be likely to result in meas-
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1 urable improvements in water quality in the small

2 watershed;

3 ‘‘(2) a demonstration project would use innova4 tive approaches to attract a high level of producer

5 participation in the small watershed to ensure suc6 cess;

7 ‘‘(3) a demonstration project could be imple8 mented through a third party, including a producer

9 organization, farmer cooperative, conservation dis10 trict, water utility, agency of State or local govern11 ment, conservation organization, or other organiza12 tion with appropriate expertise;

13 ‘‘(4) a demonstration project would leverage

14 funding from State, local, and private sources;

15 ‘‘(5) a demonstration project would demonstrate

16 market-based approaches to nutrient losses to surface

17 waters;

18 ‘‘(6) baseline data related to water quality and

19 agricultural practices and contributions from non20 agricultural sources as relevant in the small water21 shed has been collected or could be readily collected;

22 and

23 ‘‘(7) water quality monitoring infrastructure is

24 in place or could reasonably be put in place in the

25 small watershed.
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1 ‘‘(e) USEOF FUNDS.—

2 ‘‘(1) IN GENERAL.—Funding provided for the

3 program under subsection (f) shall be used in not less

4 than 30 small watersheds—

5 ‘‘(A) to provide technical assistance;

6 ‘‘(B) to provide and assess financial incen7 tives to agricultural producers implementing

8 conservation practices that reduce nutrient losses

9 to surface waters;

10 ‘‘(C) to monitor the performance and costs

11 of alternative nutrient management techniques,

12 including soil tests, stalk tests, cover crops, soil

13 amendments, buffers, and tillage practices; and

14 ‘‘(D) to share the cost of data collection,

15 monitoring, and analysis.

16 ‘‘(2) PROHIBITION.—None of the funds made

17 available to carry out the program for each fiscal

18 year may be used for administrative expenses.

19 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

20 authorized to be appropriated such sums as are necessary

21 to carry out this section.’’.

22 SEC. 2398. EMERGENCY LANDSCAPE RESTORATION PRO23 GRAM.

24 (a) IN GENERAL.—Chapter 5 of subtitle D of the Food

25 Security Act of 1985 (16 U.S.C. 3839bb et seq.) (as amend-
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1 ed by section 2386) is amended by adding at the end the

2 following:

3 ‘‘SEC. 1240R. EMERGENCY LANDSCAPE RESTORATION PRO4 GRAM.

5 ‘‘(a) DEFINITION OF ELIGIBLE RECIPIENT.—In this

6 section, the term ‘eligible recipient’ means—

7 ‘‘(1) an organization that is eligible for technical

8 assistance and cost-share payments under this section

9 and assists working agricultural land and nonindus10 trial private forest land, including—

11 ‘‘(A) a community-based association; and

12 ‘‘(B) a city, county, or regional government,

13 including a watershed council and a conserva14 tion district; and

15 ‘‘(2) an individual who is eligible for technical

16 assistance and cost-share payments under this section,

17 including—

18 ‘‘(A) a producer;

19 ‘‘(B) a rancher;

20 ‘‘(C) an operator;

21 ‘‘(D) a nonindustrial private forest land22 owner; and

23 ‘‘(E) a landlord on working agricultural

24 land.
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1 ‘‘(b) PURPOSE.—The purpose of the emergency land2 scape restoration program is to rehabilitate watersheds,

3 nonindustrial private forest land, and working agricultural

4 land adversely affected by natural catastrophic events, by—

5 ‘‘(1) providing a source of assistance for restora6 tion of the land back to a productive state;

7 ‘‘(2) preventing further impairment of land and

8 water, including prevention through the purchase of

9 floodplain easements; and

10 ‘‘(3) providing further protection of natural re11 sources.

12 ‘‘(c) ESTABLISHMENT.—The Secretary, acting through

13 the Natural Resources Conservation Service, shall carry out

14 an emergency landscape restoration program under which

15 technical assistance and cost-share payments are made

16 available to eligible recipients to carry out remedial activi17 ties to restore landscapes damaged by—

18 ‘‘(1) fire;

19 ‘‘(2) drought;

20 ‘‘(3) flood;

21 ‘‘(4) hurricane force or excessive winds;

22 ‘‘(5) ice storms or blizzards; or

23 ‘‘(6) other resource-impacting natural events, as

24 determined by the Secretary.
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1 ‘‘(d) PRIORITIZATION.—The Secretary shall provide

2 the highest priority for those activities that protect human

3 health and safety.

4 ‘‘(e) TECHNICAL ASSISTANCEAND COST-SHARE PAY5 MENTS.—

6 ‘‘(1) IN GENERAL.—The Secretary shall provide

7 technical assistance and cost-share payments in

8 amounts of up to 75 percent of the cost of remedial

9 activities described in paragraph (2) to rehabilitate

10 watersheds, nonindustrial private forest land, and

11 working agricultural land.

12 ‘‘(2) REMEDIAL ACTIVITIES.—Remedial activi13 ties that are eligible for technical assistance and cost14 share payments under this section include—

15 ‘‘(A) removal of debris from streams, agri16 cultural land, and nonindustrial forest land,

17 including—

18 ‘‘(i) the restoration of natural hydrol19 ogy; and

20 ‘‘(ii) the removal of barriers for aquat21 ic species;;

22 ‘‘(B) restoration of destabilized

23 streambanks;

24 ‘‘(C) establishment of cover on critically

25 eroding land;
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1 ‘‘(D) restoration of fences;

2 ‘‘(E) construction of conservation structures;

3 ‘‘(F) provision of water for livestock in

4 drought situations;

5 ‘‘(G) rehabilitation of farm or ranch land;

6 ‘‘(H) restoration of damaged nonindustrial

7 private forest land, including—

8 ‘‘(i) the removal of damaged standing

9 trees and downed timber; and

10 ‘‘(ii) site preparation, tree planting,

11 direct seeding, and firebreaks;

12 ‘‘(I) the carrying out of emergency water

13 conservation measures;

14 ‘‘(J) restoration of wildlife habitat and cor15 ridors;

16 ‘‘(K) livestock carcass removal and disposal;

17 and

18 ‘‘(L) such other remedial activities as are

19 determined by the Secretary.

20 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

21 authorized to be appropriated to the Secretary to carry out

22 this section such sums as are necessary for each of fiscal

23 years 2008 through 2012, to remain available until ex24 pended.
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1 ‘‘(g) TEMPORARY ADMINISTRATION OF EMERGENCY

2 LANDSCAPE RESTORATION PROGRAM.—

3 ‘‘(1) IN GENERAL.—During the period beginning

4 on the date of enactment of this section and ending

5 on the termination date described in paragraph (2),

6 to ensure that technical assistance, cost-share pay7 ments, and other payments continue to be adminis8 tered in an orderly manner until the date on which

9 final regulations are promulgated to implement the

10 emergency landscape restoration program, the Sec11 retary shall, to the extent the terms and conditions of

12 the programs described in clauses (i) and (ii) of sub13 paragraph (A) are consistent with the emergency

14 landscape restoration program, continue to—

15 ‘‘(A) provide technical assistance, cost-share

16 payments, and other payments under the terms

17 and conditions of—

18 ‘‘(i) the emergency conservation pro19 gram established under title IV of the Agri20 cultural Credit Act of 1978 (16 U.S.C. 2201

21 et seq.); and

22 ‘‘(ii) the emergency watershed protec23 tion program established under section 403

24 of the Agricultural Credit Act of 1978 (16

25 U.S.C. 2203); and
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1 ‘‘(B) use for those purposes—

2 ‘‘(i) any funds made available under

3 those programs; and

4 ‘‘(ii) as the Secretary determines to be

5 necessary, any funds made available to

6 carry out the emergency landscape restora7 tion program.

8 ‘‘(2) TERMINATION OF AUTHORITY.—The author9 ity of the Secretary to carry out paragraph (1) shall

10 terminate on the effective date of final regulations to

11 implement the emergency landscape restoration pro12 gram.’’.

13 (b) CONFORMING AMENDMENTS.—

14 (1) Effective on the effective date of final regula15 tions to implement the emergency landscape restora16 tion program under section 1240R of the Food Secu17 rity Act of 1985 (as added by subsection (a)), title IV

18 of the Agricultural Credit Act of 1978 (16 U.S.C.

19 2201 et seq.) is repealed.

20 (2) Section 1211(a)(3)(C) of the Food Security

21 Act of 1985 (16 U.S.C. 3811(a)(3)(C)) is amended by

22 inserting ‘‘section 1240R or’’ after ‘‘a payment

23 under’’.

24 (3) Section 1221(b)(3)(C) of the Food Security

25 Act of 1985 (16 U.S.C. 3821(b)(3)(C)) is amended by
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1 inserting ‘‘section 1240R or’’ after ‘‘A payment

2 under’’.

3 SEC. 2399. VOLUNTARY PUBLIC ACCESS AND HABITAT IN4 CENTIVE PROGRAM.

5 Chapter 5 of subtitle D of title XII of the Food Security

6 Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended by sec7 tion 2387(a)) is amended by adding at the end the fol8 lowing:

9 ‘‘SEC. 1240S. VOLUNTARY PUBLIC ACCESS AND HABITAT IN10 CENTIVE PROGRAM.

11 ‘‘(a) IN GENERAL.—The Secretary shall establish a

12 voluntary public access program under which States and

13 tribal governments may apply for grants to encourage own14 ers and operators of privately-held farm, ranch, and forest

15 land to voluntarily make that land available for access by

16 the public for wildlife-dependent recreation, including hunt17 ing or fishing under programs administered by the States

18 and tribal governments.

19 ‘‘(b) APPLICATIONS.—In submitting applications for a

20 grant under the program, a State or tribal government shall

21 describe—

22 ‘‘(1) the benefits that the State or tribal govern23 ment intends to achieve by encouraging public access

24 to private farm and ranch land for—

25 ‘‘(A) hunting and fishing; and
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1 ‘‘(B) to the maximum extent practicable,

2 other recreational purposes; and

3 ‘‘(2) the methods that will be used to achieve

4 those benefits.

5 ‘‘(c) PRIORITY.—In approving applications and

6 awarding grants under the program, the Secretary shall

7 give priority to States and tribal governments that

8 propose—

9 ‘‘(1) to maximize participation by offering a

10 program the terms of which are likely to meet with

11 widespread acceptance among landowners;

12 ‘‘(2) to ensure that land enrolled under the State

13 or tribal government program has appropriate wild14 life habitat;

15 ‘‘(3) to strengthen wildlife habitat improvement

16 efforts on land enrolled in a special conservation re17 serve enhancement program described in section

18 1234(f)(3) by providing incentives to increase public

19 hunting and other recreational access on that land;

20 ‘‘(4) to use additional Federal, State, tribal gov21 ernment, or private resources in carrying out the pro22 gram; and

23 ‘‘(5) to make available to the public the location

24 of land enrolled.
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1 ‘‘(d) RELATIONSHIP TO OTHER LAWS.—Nothing in

2 this section preempts a State or tribal government law (in3 cluding any State or tribal government liability law).

4 ‘‘(e) REGULATIONS.—The Secretary shall promulgate

5 such regulations as are necessary to carry out this section.’’.

6 Subtitle E—Funding and

7 Administration

8 SEC. 2401. FUNDING AND ADMINISTRATION.

9 Section 1241(a) of the Food Security Act of 1985 (16

10 U.S.C. 3841(a)) is amended—

11 (1) in the matter preceding paragraph (1), by

12 striking ‘‘2007’’ and inserting ‘‘2012’’; and

13 (2) by striking paragraphs (3) through (7) and

14 inserting the following:

15 ‘‘(3) The conservation security program under

16 subchapter A of chapter 2, using $2,317,000,000 to

17 administer contracts entered into as of the day before

18 the date of enactment of the Food and Energy Secu19 rity Act of 2007, to remain available until expended.

20 ‘‘(4) The conservation stewardship program

21 under subchapter B of chapter 6.

22 ‘‘(5) The farmland protection program under

23 subchapter B of chapter 2, using, to the maximum ex24 tent practicable, $97,000,000 for each of fiscal years

25 2008 through 2012.
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1 ‘‘(6) The grassland reserve program under sub2 chapter C of chapter 2, using, to the maximum extent

3 practicable, $240,000,000 for the period of fiscal years

4 2008 through 2012.

5 ‘‘(7) The environmental quality incentives pro6 gram under chapter 4, using, to the maximum extent

7 practicable—

8 ‘‘(A) $1,270,000,000 for each of fiscal years

9 2008 and 2009; and

10 ‘‘(B) $1,300,000,000 for each of fiscal years

11 2010 through 2012.

12 ‘‘(8) The wildlife habitat incentives program

13 under section 1240N, using, to the maximum extent

14 practicable, $85,000,000 for each of fiscal years 2008

15 through 2012.

16 ‘‘(9) The voluntary public access program under

17 section 1240S, using, to the maximum extent prac18 ticable, $20,000,000 in each of fiscal years 2008

19 through 2012.’’.

20 SEC. 2402. REGIONAL EQUITY.

21 Section 1241 of the Food Security Act of 1985 (16

22 U.S.C. 3841) is amended by striking subsection (d) and in23 serting the following:

24 ‘‘(d) REGIONAL EQUITY.—
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1 ‘‘(1) IN GENERAL.—Before April 1 of each fiscal

2 year, the Secretary shall give priority for funding

3 under the conservation programs under subtitle D

4 and the agricultural management assistance program

5 under section 524(b) of the Federal Crop Insurance

6 Act (7 U.S.C. 1524(b)) (excluding the conservation re7 serve program under subchapter B of chapter 1 and

8 the wetlands reserve program under subchapter C of

9 chapter 1) to approved applications in any State that

10 has not received, for the fiscal year, an aggregate

11 amount of at least $15,000,000 for those conservation

12 programs.

13 ‘‘(e) SPECIFIC FUNDING ALLOCATIONS.—In deter14 mining the specific funding allocations for each State under

15 paragraph (1), the Secretary shall consider the respective

16 demand for each program in each State.

17 ‘‘(f) ALLOCATIONS REVIEW AND UPDATE.—

18 ‘‘(1) REVIEW.—Not later than January 1, 2012,

19 the Secretary shall conduct a review of conservation

20 program allocation formulas to determine the suffi21 ciency of the formulas in accounting for State-level

22 economic factors, level of agricultural infrastructure,

23 or related factors that affect conservation program

24 costs.
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1 ‘‘(2) UPDATE.—The Secretary shall improve con2 servation program allocation formulas as necessary to

3 ensure that the formulas adequately reflect the costs of

4 carrying out the conservation programs.’’.

5 SEC. 2403. CONSERVATION ACCESS.

6 Section 1241 of the Food Security Act of 1985 (16

7 U.S.C. 3841) (as amended by section 2402) is amended by

8 adding at the end the following:

9 ‘‘(g) CONSERVATION ACCESS.—

10 ‘‘(1) ASSISTANCETO ELIGIBLEFARMERS OR

11 RANCHERS.—

12 ‘‘(A) DEFINITION OF ELIGIBLE FARMER OR

13 RANCHER.—In this paragraph, the term ‘eligible

14 farmer or rancher’ means a farmer or rancher

15 that, as determined by the Secretary—

16 ‘‘(i) derives or expects to derive at least

17 $15,000 in gross sales from agriculture (not

18 including payments under the conservation

19 reserve program established under sub20 chapter B of chapter 1 of subtitle D); and

21 ‘‘(ii) is—

22 ‘‘(I) a beginning farmer or ranch23 er (as defined in section 343 of the

24 Consolidated Farm and Rural Devel25 opment Act (7 U.S.C. 1991)), except
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1 that in determining whether the farmer

2 or rancher qualifies as a beginning

3 farmer or rancher, the Secretary

4 may—

5 ‘‘(aa) employ a fair and rea6 sonable test of net worth; and

7 ‘‘(bb) use such other criteria

8 as the Secretary determines to be

9 appropriate; or

10 ‘‘(II) a socially disadvantaged

11 farmer or rancher (as defined in sec12 tion 355(e) of the Consolidated Farm

13 and Rural Development Act (7 U.S.C.

14 2003(e)).

15 ‘‘(B) ASSISTANCE.—In the case of each pro16 gram described in subsection (a), except as pro17 vided in paragraph (2), for each fiscal year in

18 which funding is made available for the pro19 gram, 10 percent of the funds available for the

20 fiscal year shall be used by the Secretary to as21 sist eligible farmers or ranchers.

22 ‘‘(2) ACREAGE PROGRAMS.—In the case of the

23 conservation reserve and wetlands reserve programs,

24 10 percent of the acreage authorized to be enrolled in
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1 any fiscal year shall be used to assist eligible farmers

2 or ranchers.

3 ‘‘(3) REPOOLING.—In any fiscal year, amounts

4 not obligated under this subsection by a date deter5 mined by the Secretary shall be available for pay6 ments and technical assistance to all persons eligible

7 for payments or technical assistance in that fiscal

8 year under the program for which the amounts were

9 originally made available under this title.

10 ‘‘(4) CONSERVATION INNOVATION GRANTS.—

11 Funding under paragraph (1) for conservation inno12 vation grants under section 1240H may, in addition

13 to purposes described in subsection (b) of that section,

14 be used for—

15 ‘‘(A) technology transfer;

16 ‘‘(B) farmer-to-farmer workshops; and

17 ‘‘(C) demonstrations of innovative conserva18 tion practices.

19 ‘‘(5) TECHNICAL ASSISTANCE.—The Secretary

20 shall offer, to the maximum extent practicable, higher

21 levels of technical assistance to beginning farmers or

22 ranchers and socially disadvantaged farmers or

23 ranchers than are otherwise made available to pro24 ducers participating in programs under this title.
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1 ‘‘(6) COOPERATIVE AGREEMENTS.—The Sec2 retary may develop and implement cooperative agree3 ments with entities (including government agencies,

4 extension entities, nongovernmental and community5 based organizations, and educational institutions)

6 with expertise in addressing the needs of beginning

7 farmers or ranchers and socially disadvantaged farm8 ers or ranchers to provide technical assistance, com9 prehensive conservation planning education, and sus10 tainable agriculture training.’’.

11 SEC. 2404. DELIVERY OF TECHNICAL ASSISTANCE.

12 Section 1242 of the Food Security Act of 1985 (16

13 U.S.C. 3842) is amended to read as follows:

14 ‘‘SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

15 ‘‘(a) DEFINITION OF ELIGIBLE PARTICIPANT.—In this

16 section, the term ‘eligible participant’ means—

17 ‘‘(1) an agricultural producer;

18 ‘‘(2) an eligible entity;

19 ‘‘(3) an eligible landowner; and

20 ‘‘(4) an interested organization.

21 ‘‘(b) PURPOSE.—The purpose of technical assistance

22 authorized by this title is to provide eligible participants

23 with consistent, science-based, site-specific practices de24 signed to achieve conservation objectives on land active in

25 agricultural, forestry, or related uses.
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1 ‘‘(c) PROVISION OF TECHNICAL ASSISTANCE.—The

2 Secretary shall provide technical assistance under this title

3 to an eligible participant—

4 ‘‘(1) directly;

5 ‘‘(2) through a contract or agreement with a

6 third-party provider; or

7 ‘‘(3) at the option of the eligible participant,

8 through a payment, as determined by the Secretary,

9 to the eligible participant for an approved third10 party provider, if available.

11 ‘‘(d) CERTIFICATION OF THIRD-PARTY PROVIDERS.—

12 ‘‘(1) IN GENERAL.—The Secretary shall continue

13 to carry out the technical service provider program

14 established under regulations promulgated under sub15 section (b)(1) (as in existence on the day before the

16 date of enactment of this subsection).

17 ‘‘(2) PURPOSE.—The purpose of the technical

18 service provider program shall be to increase the

19 availability and range of technical expertise available

20 to farmers, ranchers, and eligible landowners to plan

21 and implement conservation measures.

22 ‘‘(3) EXPERTISE.—In promulgating regulations

23 to carry out this subsection, the Secretary shall—

24 ‘‘(A) ensure that persons with expertise in

25 the technical aspects of conservation planning,
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1 watershed planning, and environmental engi2 neering (including commercial entities, nonprofit

3 entities, State or local governments or agencies,

4 and other Federal agencies) are eligible to be5 come approved providers of the technical assist6 ance; and

7 ‘‘(B) to the maximum extent practicable—

8 ‘‘(i) provide national criteria for the

9 certification of technical service providers;

10 and

11 ‘‘(ii) approve any unique certification

12 standards established at the State level.

13 ‘‘(4) SYSTEM ADMINISTRATION.—

14 ‘‘(A) FUNDING.—Effective for fiscal year

15 2008 and each subsequent fiscal year, funds of

16 the Commodity Credit Corporation that are

17 made available to carry out each of the programs

18 specified in section 1241 shall be available for

19 the provision of technical assistance from third20 party providers under this section.

21 ‘‘(B) CONTRACT TERM.—A contract under

22 this section shall have a term that—

23 ‘‘(i) at a minimum, is equal to the

24 period—
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1 ‘‘(I) beginning on the date on

2 which the contract is entered into; and

3 ‘‘(II) ending on the date that is 1

4 year after the date on which all activi5 ties in the contract have been com6 pleted;

7 ‘‘(ii) does not exceed 3 years; and

8 ‘‘(iii) can be renewed, as determined

9 by the Secretary.

10 ‘‘(C) REVIEW OF CERTIFICATION REQUIRE11 MENTS.—Not later than 1 year after the date of

12 enactment of this subsection, the Secretary

13 shall—

14 ‘‘(i) review certification requirements

15 for third-party providers; and

16 ‘‘(ii) make any adjustments considered

17 necessary by the Secretary to improve par18 ticipation.

19 ‘‘(D) ELIGIBLEACTIVITIES.—The Secretary

20 may include in activities eligible for payment to

21 a third-party provider—

22 ‘‘(i) education and outreach to eligible

23 participants; and
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1 ‘‘(ii) administrative services necessary

2 to support conservation program implemen3 tation.

4 ‘‘(5) PAYMENT AMOUNTS.—The Secretary shall

5 establish fair and reasonable amounts of payments for

6 technical services provided by third-party providers.

7 ‘‘(e) AVAILABILITY OF TECHNICAL SERVICES.—

8 ‘‘(1) AVAILABILITY.—

9 ‘‘(A) IN GENERAL.—In carrying out the

10 programs under this title and the agricultural

11 management assistance program under section

12 524 of the Federal Crop Insurance Act (7 U.S.C.

13 1524), the Secretary shall make technical services

14 available to all eligible participants who are in15 stalling an eligible practice.

16 ‘‘(B) TECHNICAL SERVICE CONTRACTS.—In

17 any case in which financial assistance is not re18 quested or is not provided under subparagraph

19 (A), the Secretary may enter into a technical

20 service contract with the applicable eligible par21 ticipant for the purposes of assisting in the plan22 ning, design, or installation of an eligible prac23 tice.

24 ‘‘(2) REVIEW OF CONSERVATION PRACTICE

25 STANDARDS.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall—

2 ‘‘(i) review conservation practice

3 standards, including engineering design

4 specifications, in effect on the date of enact5 ment of this subsection;

6 ‘‘(ii) ensure, to the maximum extent

7 practicable, the completeness and relevance

8 of the standards to local agricultural, for9 estry, and natural resource needs, including

10 specialty crops, native and managed polli11 nators, bioenergy crop production, forestry,

12 and such other needs as are determined by

13 the Secretary; and

14 ‘‘(iii) ensure that the standards pro15 vide for the optimal balance between meet16 ing site-specific conservation needs and

17 minimizing risks of design failure and asso18 ciated costs of construction and installation.

19 ‘‘(B) CONSULTATION.—In conducting the

20 assessment under subparagraph (A), the Sec21 retary shall consult with eligible participants,

22 crop consultants, cooperative extension and land

23 grant universities, nongovernmental organiza24 tions, and other qualified entities.
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1 ‘‘(C) EXPEDITED REVISION OF STAND2 ARDS.—If the Secretary determines under sub3 paragraph (A) that revisions to the conservation

4 practice standards, including engineering design

5 specifications, are necessary, the Secretary shall

6 establish an administrative process for expe7 diting the revisions.

8 ‘‘(3) ADDRESSING CONCERNS OF SPECIALITY

9 CROP, ORGANIC, AND PRECISION AGRICULTURE PRO10 DUCERS.—

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

12 ‘‘(i) to the maximum extent prac13 ticable, fully incorporate specialty crop pro14 duction, organic crop production, and pre15 cision agriculture into the conservation

16 practice standards; and

17 ‘‘(ii) provide for the appropriate range

18 of conservation practices and resource miti19 gation measures available to producers in20 volved with organic or specialty crop pro21 duction or precision agriculture.

22 ‘‘(B) AVAILABILITY OF ADEQUATE TECH23 NICAL ASSISTANCE.—

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

25 ensure that adequate technical assistance is
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1 available for the implementation of con2 servation practices by producers involved

3 with organic or specialty crop production

4 or precision agriculture through Federal

5 conservation programs.

6 ‘‘(ii) REQUIREMENTS.—In carrying

7 out clause (i), the Secretary shall develop—

8 ‘‘(I) programs that meet specific

9 needs of producers involved with or10 ganic or specialty crop production or

11 precision agriculture through coopera12 tive agreements with other agencies

13 and nongovernmental organizations;

14 and

15 ‘‘(II) program specifications that

16 allow for innovative approaches to en17 gage local resources in providing tech18 nical assistance for planning and im19 plementation of conservation prac20 tices.’’.

21 SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CON22 SERVATION PROGRAMS.

23 (a) STREAMLINED APPLICATION PROCESS.—Section

24 1244 of the Food Security Act of 1985 (16 U.S.C. 3844)

25 is amended—
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1 (1) by redesignating subsection (b) as subsection

2 (c); and

3 (2) by inserting after subsection (a) the fol4 lowing:

5 ‘‘(b) STREAMLINED APPLICATION PROCESS.—

6 ‘‘(1) IN GENERAL.—In carrying out each con7 servation program under this title, the Secretary shall

8 ensure that the application process used by producers

9 and landowners is streamlined to minimize com10 plexity and eliminate redundancy.

11 ‘‘(2) REVIEW AND STREAMLINING.—

12 ‘‘(A) REVIEW.—The Secretary shall carry

13 out a review of the application forms and proc14 esses for each conservation program covered by

15 this subsection.

16 ‘‘(B) STREAMLINING.—On completion of the

17 review the Secretary shall revise application

18 forms and processes, as necessary, to ensure

19 that—

20 ‘‘(i) all required application informa21 tion is essential for the efficient, effective,

22 and accountable implementation of con23 servation programs;

24 ‘‘(ii) conservation program applicants

25 are not required to provide information that
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1 is readily available to the Secretary through

2 existing information systems of the Depart3 ment of Agriculture;

4 ‘‘(iii) information provided by the ap5 plicant is managed and delivered efficiently

6 for use in all stages of the application proc7 ess, or for multiple applications; and

8 ‘‘(iv) information technology is used ef9 fectively to minimize data and information

10 input requirements.

11 ‘‘(3) IMPLEMENTATION AND NOTIFICATION.—Not

12 later than 1 year after the date of enactment of the

13 Food and Energy Security Act of 2007, the Secretary

14 shall submit to Congress a written notification of

15 completion of the requirements of this subsection.’’.

16 (b) ADMINISTRATION.—Section 1244 of the Food Secu17 rity Act of 1985 (16 U.S.C. 3844) (as amended by sub18 section (a)) is amended by adding at the end the following:

19 ‘‘(d) COOPERATION REGARDING PROTECTION.—In the

20 case of a landowner who enrolls land in a conservation pro21 gram authorized under this title that results in a net con22 servation benefit for a listed, candidate, or other species,

23 the Secretary shall cooperate at the request of the landowner

24 with the Secretary of the Interior and the Secretary of Com25 merce, as appropriate, to make available to the landowner
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1 safe harbor or similar assurances and protections under sec2 tions 7(b)(4) and 10(a), as applicable, of the Endangered

3 Species Act of 1973 (16 U.S.C. 1536(b)(4), 1539(a)).

4 ‘‘(e) ELIGIBILITY OF PRODUCER ORGANIZATIONS.—

5 ‘‘(1) IN GENERAL.—In carrying out a conserva6 tion program administered by the Secretary, the Sec7 retary shall accept applications from, and shall pro8 vide cost-share and incentive payments and other as9 sistance to, producers who elect to apply through an

10 organization that represents producers and of which

11 producers make up a majority of the governing body,

12 if the Secretary determines that—

13 ‘‘(A) the full objective of the proposed activ14 ity, practice, or plan cannot be realized without

15 the participation of all or substantially all of the

16 producers in the affected area; and

17 ‘‘(B) the benefits achieved through the pro18 posed activity, practice, or plan are likely to be

19 greater and to be delivered more cost-effectively if

20 provided through a single organization with re21 lated conservation expertise and management ex22 perience.

23 ‘‘(2) LIMITATION.—Any applicable payment lim24 itation shall apply to each participating producer
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1 and not to the organization described in paragraph

2 (1).

3 ‘‘(f) PARTNERSHIPS AND COOPERATION.—

4 ‘‘(1) IN GENERAL.—In carrying out each pro5 gram under subtitle D (excluding the wetlands reserve

6 program and the conservation reserve program), the

7 Secretary, acting through the State Conservationist,

8 shall designate special projects to enhance conserva9 tion outcomes by working with multiple producers to

10 address conservation issues, if recommended by the

11 State Conservationist, in consultation with the State

12 technical committee.

13 ‘‘(2) GUIDELINES.—The Secretary shall establish

14 guidelines to be used by States in the designation of

15 special projects under paragraph (1).

16 ‘‘(3) PURPOSES.—The purposes of special

17 projects carried out under this subsection shall be to

18 achieve local, statewide, or regional conservation ob19 jectives by—

20 ‘‘(A) encouraging producers to cooperate in

21 the installation and maintenance of conservation

22 practices that affect multiple agricultural oper23 ations;

24 ‘‘(B) encouraging producers to cooperate in

25 meeting applicable Federal, State, and local reg-
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1 ulatory requirements regarding natural resources

2 and the environment;

3 ‘‘(C) encouraging producers to share infor4 mation and technical and financial resources;

5 ‘‘(D) facilitating cumulative conservation

6 benefits in geographic areas; and

7 ‘‘(E) promoting the development and dem8 onstration of innovative conservation methods.

9 ‘‘(4) ELIGIBLEPARTNERS.—State and local gov10 ernment entities (including irrigation and water dis11 tricts and canal companies), Indian tribes, farmer co12 operatives, institutions of higher education, non13 governmental organizations, and producer associa14 tions shall be eligible to apply under this subsection.

15 ‘‘(5) SPECIAL PROJECT APPLICATION.—To apply

16 for designation as a special project, partners shall

17 submit an application to the Secretary that

18 includes—

19 ‘‘(A) a description of the geographic area,

20 the current conditions, the conservation objectives

21 to be achieved through the special project, and

22 the expected level of participation by agricul23 tural and nonindustrial private forest land24 owners;
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1 ‘‘(B) a description of the partners collabo2 rating to achieve the project objectives and the

3 roles, responsibilities, and capabilities of the

4 partners;

5 ‘‘(C) a description of the program resources

6 from 1 or more programs under subtitle D that

7 are requested from the Secretary, in relevant

8 units, and the non-Federal resources that will be

9 leveraged by the Federal contribution;

10 ‘‘(D) a description of the plan for moni11 toring, evaluating, and reporting on any

12 progress made towards achieving the purposes of

13 the special project; and

14 ‘‘(E) such other information as described in

15 guidelines established by the Secretary under

16 paragraph (2).

17 ‘‘(6) DUTIES OF THE SECRETARY.—

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

19 enter into multiyear agreements with partners to

20 facilitate the delivery of conservation program

21 resources in a manner to achieve the purposes

22 described in paragraph (3).

23 ‘‘(B) PROJECT SELECTION.—
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1 ‘‘(i) IN GENERAL.—The Secretary shall

2 conduct a competitive process to select

3 projects funded under this subsection.

4 ‘‘(ii) FACTORS CONSIDERED.—In con5 ducting the process described in clause (i),

6 the Secretary shall make public the factors

7 to be considered in evaluating applications.

8 ‘‘(iii) PRIORITY.—The Secretary may

9 give priority to applications based on—

10 ‘‘(I) the highest percentage of pro11 ducers involved, and the inclusion of

12 the highest percentage of working agri13 cultural land in the area;

14 ‘‘(II) the highest percentage of on15 the-ground conservation to be imple16 mented;

17 ‘‘(III) non-Federal resources to be

18 leveraged;

19 ‘‘(IV) innovation in conservation

20 methods and delivery, including out21 come-based performance measures and

22 methods; and

23 ‘‘(V) other factors, as determined

24 by the Secretary.
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1 ‘‘(C) TECHNICAL AND FINANCIAL ASSIST2 ANCE.—The Secretary and partners shall provide

3 appropriate technical and financial assistance to

4 producers participating in a special project in

5 an amount determined by the Secretary to be

6 necessary to achieve the purposes described in

7 paragraph (3).

8 ‘‘(D) ADMINISTRATION.—

9 ‘‘(i) IN GENERAL.—The Secretary shall

10 ensure that resources made available under

11 this subsection are delivered in accordance

12 with applicable program rules relating to

13 basic program functions, including rules

14 governing appeals, payment limitations,

15 and conservation compliance.

16 ‘‘(ii) FLEXIBILITY.—The Secretary

17 may adjust elements of the programs under

18 this title, as requested by the State Con19 servationist, to better reflect unique local

20 circumstances and purposes, if the Sec21 retary determines that such adjustments are

22 necessary to achieve the purposes of this

23 subsection.

24 ‘‘(iii) ADDITIONAL REQUIREMENTS.—

25 The Secretary may establish additional re-
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1 quirements beyond applicable program rules

2 in order to effectively implement this sub3 section.

4 ‘‘(7) SPECIAL RULES APPLICABLE TO REGIONAL

5 WATER ENHANCEMENT PROJECTS.—

6 ‘‘(A) DEFINITIONS.—In this paragraph:

7 ‘‘(i) ELIGIBLEPARTNER.—The term

8 ‘eligible partner’ means—

9 ‘‘(I) an eligible partner identified

10 in paragraph (4); and

11 ‘‘(II) a water or wastewater agen12 cy of a State.

13 ‘‘(ii) ELIGIBLEPROJECT.—

14 ‘‘(I) IN GENERAL.—The term ‘eli15 gible project’ means a project that is

16 specifically targeted to improve water

17 quality or quantity in an area.

18 ‘‘(II) INCLUSIONS.—The term ‘eli19 gible project’ includes a project that

20 involves—

21 ‘‘(aa) resource condition as22 sessment and modeling;

23 ‘‘(bb) water quality, water

24 quantity, or water conservation

25 plan development;
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1 ‘‘(cc) management system

2 and environmental monitoring

3 and evaluation;

4 ‘‘(dd) cost-share restoration

5 or enhancement;

6 ‘‘(ee) incentive payments for

7 land management practices;

8 ‘‘(ff) easement purchases;

9 ‘‘(gg) conservation contracts

10 with landowners;

11 ‘‘(hh) improved irrigation

12 systems;

13 ‘‘(ii) water banking and

14 other forms of water transactions;

15 ‘‘(jj) groundwater recharge;

16 ‘‘(kk) stormwater capture;

17 and

18 ‘‘(ll) other water-related ac19 tivities that the Secretary deter20 mines will help to achieve the

21 water quality or water quantity

22 benefits identified in the agree23 ment in subparagraph (E).

24 ‘‘(B) REGIONAL WATER ENHANCEMENT PRO25 CEDURES.—With respect to proposals for eligible
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1 projects by eligible partners, the Secretary shall

2 establish specific procedures (to be known collec3 tively as ‘regional water enhancement proce4 dures’) in accordance with this paragraph.

5 ‘‘(C) MEANS.—Regional water enhancement

6 activities in a particular region shall be carried

7 out through a combination of—

8 ‘‘(i) multiyear agreements between the

9 Secretary and eligible partners;

10 ‘‘(ii) other regional water enhancement

11 activities carried out by the Secretary; and

12 ‘‘(iii) regional water enhancement ac13 tivities carried out by eligible partners

14 through other means.

15 ‘‘(D) MULTIYEAR AGREEMENTS WITH ELIGI16 BLEPARTNERS.—

17 ‘‘(i) SOLICITATION OF PROPOSALS.—

18 Not later than 90 days after the date of en19 actment of this subsection, the Secretary

20 shall invite prospective eligible partners to

21 submit proposals for regional water en22 hancement projects.

23 ‘‘(ii) ELEMENTS OF PROPOSALS.—To

24 be eligible for consideration for participa-
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1 tion in the program, a proposal submitted

2 by an eligible partner shall include—

3 ‘‘(I) identification of the exact ge4 ographic area for which the partner5 ship is proposed, which may be based

6 on—

7 ‘‘(aa) a watershed (or por8 tion of a watershed);

9 ‘‘(bb) an irrigation, water, or

10 drainage district;

11 ‘‘(cc) the service area of an

12 irrigation water delivery entity;

13 or

14 ‘‘(dd) some other geographic

15 area with characteristics that

16 make the area suitable for land17 scape-wide program implementa18 tion;

19 ‘‘(II) identification of the water

20 quality or water quantity issues that

21 are of concern in the area;

22 ‘‘(III) a method for determining a

23 baseline assessment of water quality,

24 water quantity, and other related re25 source conditions in the region;
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1 ‘‘(IV) a detailed description of the

2 proposed water quality or water quan3 tity improvement activities to be un4 dertaken in the area, including an esti5 mated timeline and program resources

6 for every activity; and

7 ‘‘(V) a description of the perform8 ance measures to be used to gauge the

9 effectiveness of the water quality or

10 water quantity improvement activities.

11 ‘‘(iii) SELECTION OF PROPOSALS.—The

12 Secretary shall award multiyear agreements

13 competitively, with priority given, as deter14 mined by the Secretary, to selecting pro15 posals that—

16 ‘‘(I) have the highest likelihood of

17 improving the water quality or quan18 tity issues of concern for the area;

19 ‘‘(II) involve multiple stakeholders

20 and will ensure the highest level of par21 ticipation by producers and land22 owners in the area through perform23 ance incentives to encourage adoption

24 of specific practices in specific loca25 tions;
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1 ‘‘(III) will result in the inclusion

2 of the highest percentage of working ag3 ricultural land in the area;

4 ‘‘(IV) will result in the highest

5 percentage of on-the-ground activities

6 as compared to administrative costs;

7 ‘‘(V) will provide the greatest con8 tribution to sustaining or enhancing

9 agricultural or silvicultural production

10 in the area; and

11 ‘‘(VI) include performance meas12 ures that will allow post-activity con13 ditions to be satisfactorily measured to

14 gauge overall effectiveness.

15 ‘‘(iv) IDENTIFICATION OF WATER

16 QUALITY AND WATER QUANTITY PRIORITY

17 AREAS.—

18 ‘‘(I) IN GENERAL.—Subject to

19 subclause (II), the Secretary shall iden20 tify areas in which protecting or im21 proving water quality or water quan22 tity is a priority.

23 ‘‘(II) MANDATORY INCLUSIONS.—

24 The Secretary shall include in any
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1 identification of areas under subclause

2 (I)—

3 ‘‘(aa) the Chesapeake Bay;

4 ‘‘(bb) the Upper Mississippi

5 River basin;

6 ‘‘(cc) the greater Everglades

7 ecosystem;

8 ‘‘(dd) the Klamath River

9 basin;

10 ‘‘(ee) the Sacramento/San

11 Joaquin River watershed;

12 ‘‘(ff) the Mobile River basin;

13 ‘‘(gg) the Puget Sound;

14 ‘‘(hh) the Ogallala Aquifer;

15 ‘‘(ii) the Illinois River water16 shed (located in the States of Ar17 kansas and Oklahoma);

18 ‘‘(jj) the Champlain Basin

19 watershed;

20 ‘‘(kk) the Platte River water21 shed;

22 ‘‘(ll) the Republican River

23 watershed;

24 ‘‘(mm) the Chattahoochee

25 River watershed; and
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1 ‘‘(nn) the Rio Grande water2 shed.

3 ‘‘(E) AGREEMENTS.—Not later than 30

4 days after the date on which the Secretary

5 awards an agreement under subparagraph (D),

6 the Secretary shall enter into an agreement with

7 the eligible partner that, at a minimum,

8 contains—

9 ‘‘(i) a description of the respective du10 ties and responsibilities of the Secretary

11 and the eligible partner in carrying out the

12 activities in the area; and

13 ‘‘(ii) the criteria that the Secretary

14 will use to evaluate the overall effectiveness

15 of the regional water enhancement activities

16 funded by the multiyear agreement in im17 proving the water quality or quantity con18 ditions of the region relative to the perform19 ance measures in the proposal.

20 ‘‘(F) CONTRACTS WITH OTHER PARTIES.—

21 An agreement awarded under subparagraph (D)

22 may provide for the use of third-party providers

23 (including other eligible partners) to undertake

24 specific regional water enhancement activities in
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1 a region on a contractual basis with the Sec2 retary or the eligible partner.

3 ‘‘(G) CONSULTATION WITH OTHER AGEN4 CIES.—With respect to areas in which a Federal

5 or State agency is, or will be, undertaking other

6 water quality or quantity-related activities, the

7 Secretary and the eligible partner may consult

8 with the Federal or State agency in order to—

9 ‘‘(i) coordinate activities;

10 ‘‘(ii) avoid duplication; and

11 ‘‘(iii) ensure that water quality or

12 quantity improvements attributable to the

13 other activities are taken into account in

14 the evaluation of the Secretary under sub15 paragraph (E)(ii).

16 ‘‘(H) RELATIONSHIP TO OTHER PRO17 GRAMS.—The Secretary shall ensure that, to the

18 extent that producers and landowners are indi19 vidually participating in other programs under

20 subtitle D in a region in which a regional water

21 enhancement project is in effect, any improve22 ments to water quality or water quantity attrib23 utable to the individual participation are in24 cluded in the evaluation criteria developed under

25 subparagraph (E)(ii).
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1 ‘‘(I) CONSISTENCY WITH STATE LAW.—Any

2 water quality or water quantity improvement

3 activity undertaken under this paragraph shall

4 be consistent with State water laws.

5 ‘‘(8) DURATION.—

6 ‘‘(A) IN GENERAL.—Multiyear agreements

7 under this subsection shall be for a period not to

8 exceed 5 years.

9 ‘‘(B) EARLY TERMINATION.—The Secretary

10 may terminate a multiyear agreement before the

11 end of the agreement if the Secretary determines

12 that performance measures are not being met.

13 ‘‘(9) FUNDING.—

14 ‘‘(A) SET ASIDE.—

15 ‘‘(i) IN GENERAL.—Of the funds pro16 vided for each of fiscal years 2008 through

17 2012 to carry out the conservation pro18 grams in subtitle D (excluding the conserva19 tion reserve program, the conservation secu20 rity program, the conservation stewardship

21 program, and the wetlands reserve pro22 gram), the Secretary shall reserve 10 per23 cent of the funds allocated to each State for

24 use for activities under this subsection.
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1 ‘‘(ii) CONSERVATION STEWARDSHIP

2 PROGRAM.—Of the acres allocated for the

3 conservation stewardship program for each

4 of fiscal years 2008 through 2012, the Sec5 retary shall reserve 10 percent of acres allo6 cated to each State for use for activities

7 under this subsection.

8 ‘‘(B) USE OF RESOURCES.—Of the funds re9 served and acres allocated to each State under

10 this subsection in each fiscal year, the Secretary

11 shall—

12 ‘‘(i) allocate not less than 75 percent to

13 be used by the State Conservationist to

14 carry out special projects under this sub15 section (including regional water enhance16 ment projects); and

17 ‘‘(ii) use not more than 25 percent for

18 multistate projects authorized under this

19 subsection.

20 ‘‘(C) PARTNERS.—Overhead or administra21 tive costs of partners may not be covered by

22 funds provided through this subsection.

23 ‘‘(D) UNUSED FUNDING.—Any funds made

24 available, and any acres reserved, for a fiscal

25 year under subparagraph (A) that are not obli-
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1 gated or enrolled by April 1 of the fiscal year

2 may be used to carry out other activities under

3 conservation programs under subtitle D during

4 the fiscal year in which the funding becomes

5 available.

6 ‘‘(g) ACCURACY OF PAYMENTS.—Immediately after the

7 date of enactment of this subsection, the Secretary shall im8 plement policies and procedures to ensure proper payment

9 of farm program benefits to producers participating in con10 servation easement programs and correct other management

11 deficiencies identified in Report No. 50099–11–SF issued

12 by the Department of Agriculture Office of Inspector Gen13 eral in August 2007.

14 ‘‘(h) COMPLIANCEAND PERFORMANCE.—For each con15 servation program under this title, the Secretary shall de16 velop procedures—

17 ‘‘(1) to monitor compliance with program re18 quirements by landowners and eligible entities;

19 ‘‘(2) to measure program performance;

20 ‘‘(3) to demonstrate whether the long-term con21 servation benefits of the program are being achieved;

22 and

23 ‘‘(4) to coordinate activities described in this

24 subsection with the national conservation program
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1 authorized under section 5 of the Soil and Water Re2 sources Conservation Act of 1977 (16 U.S.C. 2004).

3 ‘‘(i) DIRECT ATTRIBUTION OF PAYMENTS.—In imple4 menting payment limitations for any program under this

5 title, the Secretary shall issue such regulations as are nec6 essary to ensure that the total amount of payments are at7 tributed to an individual by taking into account the direct

8 and indirect ownership interests of the individual in an

9 entity that is eligible to receive the payments.’’.

10 (c) CONFORMING AMENDMENTS.—Section 1234 of the

11 Food Security Act of 1985 (16 U.S.C. 3834) is amended—

12 (1) in subsection (d)(3)(B), by striking ‘‘(f)(4)’’

13 and inserting ‘‘(f)(3)’’; and

14 (2) in subsection (f)—

15 (A) in paragraph (1)—

16 (i) by striking ‘‘The total’’ and insert17 ing ‘‘Subject to section 1244(i), the total’’;

18 and

19 (ii) by striking ‘‘a person’’ and insert20 ing ‘‘an individual’’;

21 (B) by striking paragraph (2); and

22 (C) by redesignating paragraphs (3) and

23 (4) as paragraphs (2) and (3), respectively.
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1 SEC. 2406. CONSERVATION PROGRAMS IN ENVIRONMENTAL

2 SERVICES MARKETS.

3 Subtitle E of the Food Security Act of 1985 (16 U.S.C.

4 3841 et seq.) is amended by adding at the end the following:

5 ‘‘SEC. 1245. CONSERVATION PROGRAMS IN ENVIRON6 MENTAL SERVICES MARKETS.

7 ‘‘(a) FRAMEWORK.—

8 ‘‘(1) IN GENERAL.—The Secretary shall establish

9 a framework to facilitate the participation of farmers,

10 ranchers, and forest landowners in emerging environ11 mental services markets.

12 ‘‘(2) PROCESS.—In carrying out paragraph (1),

13 the Secretary shall use a collaborative process that in14 cludes representatives of—

15 ‘‘(A) farm, ranch, and forestry interests;

16 ‘‘(B) financial institutions involved in envi17 ronmental services trading;

18 ‘‘(C) institutions of higher education with

19 relevant expertise or experience;

20 ‘‘(D) nongovernmental organizations with

21 relevant expertise or experience;

22 ‘‘(E) government agencies of relevant juris23 diction, including—

24 ‘‘(i) the Department of Commerce;

25 ‘‘(ii) the Department of Energy;

26 ‘‘(iii) the Department of the Interior;
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1 ‘‘(iv) the Department of Transpor2 tation;

3 ‘‘(v) the Environmental Protection

4 Agency; and

5 ‘‘(vi) the Corps of Engineers; and

6 ‘‘(F) other appropriate interests, as deter7 mined by the Secretary.

8 ‘‘(3) REQUIREMENTS.—

9 ‘‘(A) DEFINITION OF STANDARD.—In this

10 paragraph, the term ‘standard’ means a tech11 nical guideline that outlines accepted, science12 based methods to quantify the environmental

13 services benefits from agricultural and forest con14 servation and land management practices, as de15 termined by the Secretary.

16 ‘‘(B) FRAMEWORK REQUIREMENTS.—In es17 tablishing the framework under paragraph (1),

18 the Secretary shall—

19 ‘‘(i) establish uniform standards;

20 ‘‘(ii) design accounting procedures to

21 quantify environmental services benefits

22 that would assist farmers, ranchers, and

23 forest landowners in using the uniform

24 standards to establish certifications, as de-
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1 fined in emerging environmental services

2 markets;

3 ‘‘(iii) establish—

4 ‘‘(I) a protocol to report environ5 mental services benefits; and

6 ‘‘(II) a registry to report and

7 maintain the benefits for future use in

8 emerging environmental services mar9 kets; and

10 ‘‘(iv) establish a process to verify that

11 a farmer, rancher, or forest landowner that

12 reports and maintains an environmental

13 services benefit in the registry described in

14 clause (iii)(II) has implemented the re15 ported conservation or land management

16 activity.

17 ‘‘(C) THIRD-PARTY SERVICE PROVIDERS.—

18 In developing the process described in subpara19 graph (B)(iv), the Secretary shall consider the

20 role of third-party service providers.

21 ‘‘(4) COORDINATION.—The Secretary shall co22 ordinate and leverage activities in existence on the

23 date of enactment of this section in agriculture and

24 forestry relating to emerging environmental services

25 markets.
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1 ‘‘(5) PRIORITY.—In establishing the framework

2 under this subsection, the Secretary shall give priority

3 to providing assistance to farmers, ranchers, and for4 est landowners participating in carbon markets.

5 ‘‘(b) AUTHORITY TO DELEGATE.—The Secretary may

6 delegate any responsibility under this section to a relevant

7 agency or office, as determined by the Secretary.

8 ‘‘(c) REPORTS TO CONGRESS.—

9 ‘‘(1) STATUS OF COLLABORATIVEPROCESS.—Not

10 later than 90 days after the date of enactment of this

11 section, the Secretary shall provide to the Committee

12 on Agriculture of the House of Representatives and

13 the Committee on Agriculture, Nutrition, and For14 estry of the Senate information on the status of the

15 collaborative process under subsection (a)(2).

16 ‘‘(2) INTERIM REPORT.—Not later than 180 days

17 after the date of enactment of this section, the Sec18 retary shall submit to the committees of Congress de19 scribed in paragraph (1) an interim report that—

20 ‘‘(A) describes the adequacy of existing re21 search and methods to quantify environmental

22 services benefits;

23 ‘‘(B) proposes methods—
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1 ‘‘(i) to establish technical guidelines,

2 accounting procedures, and reporting proto3 cols; and

4 ‘‘(ii) to structure the registry; and

5 ‘‘(C) includes recommendations for actions

6 to remove barriers for farmers, ranchers, and for7 est landowners to participation, reporting, reg8 istration, and verification relating to environ9 mental services markets.

10 ‘‘(3) FINAL REPORT.—Not later than 18 months

11 after the date of enactment of this section, the Sec12 retary shall submit to the committees of Congress de13 scribed in paragraph (1) a report that describes—

14 ‘‘(A) the progress of the Secretary in meet15 ing the requirements described in subsection

16 (a)(3)(B);

17 ‘‘(B) the rates of participation of farmers,

18 ranchers, and forest landowners in emerging en19 vironmental services markets; and

20 ‘‘(C) any recommendations of the Secretary

21 relating to reauthorization of this section.

22 ‘‘(d) FUNDING.—There are authorized to be appro23 priated to the Secretary to carry out this section such sums

24 as are necessary for each of fiscal years 2008 through

25 2012.’’.
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1 Subtitle F—State Technical

2 Committees

3 SEC. 2501. STATE TECHNICAL COMMITTEES.

4 (a) STANDARDS.—Section 1261 of the Food Security

5 Act of 1985 (16 U.S.C. 3861(c)) is amended by striking sub6 section (b) and inserting the following:

7 ‘‘(b) STANDARDS.—Not later than 180 days after the

8 date of enactment of the Food and Energy Security Act of

9 2007, the Secretary shall develop—

10 ‘‘(1) standard operating procedures to stand11 ardize the operations of State technical committees;

12 and

13 ‘‘(2) standards to be used by the State technical

14 committees in the development of technical guidelines

15 under section 1262(b) for the implementation of the

16 conservation provisions of this title.’’.

17 (b) COMPOSITION.—Section 1261(c) of the Food Secu18 rity Act of 1985 (16 U.S.C. 3861(c)) is amended—

19 (1) by striking paragraphs (1) and (2) and in20 serting the following:

21 ‘‘(1) the Natural Resources Conservation Service;

22 ‘‘(2) the Farm Service Agency;’’;

23 (2) by striking paragraph (5) and inserting the

24 following:

25 ‘‘(5) Rural Development agencies;’’;
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1 (3) in paragraph (11), by striking ‘‘and’’ at the

2 end;

3 (4) in paragraph (12), by striking the period at

4 the end and inserting ‘‘; and’’; and

5 (5) by adding at the end the following:

6 ‘‘(13) nonindustrial private forest land owners.’’.

7 (c) FACA REQUIREMENTS.—Section 1262(e) of the

8 Food Security Act of 1985 (16 U.S.C. 3862(e)) is

9 amended—

10 (1) by striking ‘‘The committees’’ and inserting

11 the following:

12 ‘‘(1) IN GENERAL.—The committees’’; and

13 (2) by adding at the end the following:

14 ‘‘(2) LOCAL WORKING GROUPS.—For purposes of

15 the Federal Advisory Committee Act (5 U.S.C. App.),

16 any local working group established under this sub17 title shall be considered to be a subcommittee of the

18 applicable State technical committee.’’.

19 Subtitle G—Other Authorities

20 SEC. 2601. AGRICULTURAL MANAGEMENT ASSISTANCE.

21 Section 524(b) of the Federal Crop Insurance Act (7

22 U.S.C. 1524(b)) is amended—

23 (1) in paragraph (1), by inserting ‘‘Idaho’’ after

24 ‘‘Delaware’’; and
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1 (2) in paragraph (4)(B), by striking ‘‘2007’’

2 each place it appears and inserting ‘‘2012’’.

3 SEC. 2602. AGRICULTURE CONSERVATION EXPERIENCED

4 SERVICES PROGRAM.

5 The Department of Agriculture Reorganization Act of

6 1994 (7 U.S.C. 6901 et seq.) is amended by adding at the

7 end the following:

8 ‘‘SEC. 307. AGRICULTURE CONSERVATION EXPERIENCED

9 SERVICES PROGRAM.

10 ‘‘(a) ESTABLISHMENT.—

11 ‘‘(1) IN GENERAL.—Notwithstanding any other

12 provision of law relating to Federal grants, coopera13 tive agreements, or contracts, there is established in

14 the Department the agriculture conservation experi15 enced services program (referred to in this section as

16 the ‘ACE program’).

17 ‘‘(2) AUTHORIZATION.—Under the ACE pro18 gram, the Secretary may offer to enter into agree19 ments with nonprofit private agencies and organiza20 tions eligible to receive grants for the applicable fiscal

21 year under title V of the Older Americans Act of 1965

22 (42 U.S.C. 3056 et seq.) to use the talents of individ23 uals who are age 55 or older, to provide conservation

24 technical assistance in support of the administration
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1 of conservation-related programs and authorities ad2 ministered by the Secretary.

3 ‘‘(3) FUNDING.—Agreements described in para4 graph (2) may be carried out using funds made avail5 able to carry out—

6 ‘‘(A) the environmental quality incentives

7 program of the comprehensive stewardship incen8 tives program established under subchapter A of

9 chapter 6 of subtitle D of title XII of the Food

10 Security Act of 1985;

11 ‘‘(B) the Soil Conservation and Domestic

12 Allotment Act (16 U.S.C. 590a et seq.); or

13 ‘‘(C) title V of the Older Americans Act of

14 1965 (42 U.S.C. 3056).

15 ‘‘(b) DETERMINATION.—Prior to entering into an

16 agreement described in subsection (a)(2), the Secretary shall

17 determine that the agreement would not—

18 ‘‘(1) result in the displacement of individuals

19 employed by the Department, including partial dis20 placement through reduction of nonovertime hours,

21 wages, or employment benefits;

22 ‘‘(2) result in the use of an individual covered by

23 this section for a job or function in a case in which

24 a Federal employee is in a layoff status from the
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1 same or a substantially-equivalent job or function

2 with the Department; or

3 ‘‘(3) affect existing contracts for services.

4 ‘‘(c) TECHNICAL ASSISTANCE.—The Secretary may

5 make available to individuals providing technical assist6 ance under an agreement authorized by this section appro7 priate conservation technical tools, including the use of

8 agency vehicles necessary to carry out technical assistance

9 in support of the conservation-related programs affected by

10 the ACE program.’’.

11 SEC. 2603. TECHNICAL ASSISTANCE.

12 (a) SOIL CONSERVATION AND DOMESTIC ALLOTMENT

13 ACT.—

14 (1) PREVENTION OF SOIL EROSION.—

15 (A) IN GENERAL.—The first section of the

16 Soil Conservation and Domestic Allotment Act

17 (16 U.S.C. 590a) is amended—

18 (i) by striking ‘‘That it’’ and inserting

19 the following:

20 ‘‘SECTION 1. PURPOSE.

21 ‘‘It’’; and

22 (ii) in the matter preceding paragraph

23 (1), by striking ‘‘and thereby to preserve

24 natural resources,’’ and inserting ‘‘to pre-
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1 serve soil, water, and related resources, pro2 mote soil and water quality,’’.

3 (B) POLICIES AND PURPOSES.—Section

4 7(a)(1) of the Soil Conservation and Domestic

5 Allotment Act (16 U.S.C. 590g(a)(1)) is amended

6 by striking ‘‘fertility’’ and inserting ‘‘and water

7 quality and related resources’’.

8 (2) DEFINITIONS.—Section 10 of the Soil Con9 servation and Domestic Allotment Act (16 U.S.C.

10 590j) is amended to read as follows:

11 ‘‘SEC. 10. DEFINITIONS.

12 ‘‘In this Act:

13 ‘‘(1) AGRICULTURAL COMMODITY.—The term ‘ag14 ricultural commodity’ means—

15 ‘‘(A) an agricultural commodity; and

16 ‘‘(B) any regional or market classification,

17 type, or grade of an agricultural commodity.

18 ‘‘(2) TECHNICAL ASSISTANCE.—

19 ‘‘(A) IN GENERAL.—The term ‘technical as20 sistance’ means technical expertise, information,

21 and tools necessary for the conservation of nat22 ural resources on land active in agricultural, for23 estry, or related uses.

24 ‘‘(B) INCLUSIONS.—The term ‘technical as25 sistance’ includes—
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1 ‘‘(i) technical services provided directly

2 to farmers, ranchers, and other eligible enti3 ties, such as conservation planning, tech4 nical consultation, and assistance with de5 sign and implementation of conservation

6 practices; and

7 ‘‘(ii) technical infrastructure, includ8 ing activities, processes, tools, and agency

9 functions needed to support delivery of tech10 nical services, such as technical standards,

11 resource inventories, training, data, tech12 nology, monitoring, and effects analyses.’’.

13 (b) SOIL AND WATER RESOURCES CONSERVATION ACT

14 OF 1977.—

15 (1) CONGRESSIONAL FINDINGS.—Section 2 of the

16 Soil and Water Resources Conservation Act of 1977

17 (16 U.S.C. 2001) is amended—

18 (A) in paragraph (2), by striking ‘‘base, of

19 the’’ and inserting ‘‘base of the’’; and

20 (B) in paragraph (3), by striking ‘‘(3)’’ and

21 all that follows through ‘‘Since individual’’ and

22 inserting the following:

23 ‘‘(3) Appraisal and inventory of resources, as24 sessment and inventory of conservation needs, evalua25 tion of the effects of conservation practices, and anal-
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1 yses of alternative conservation programs are basic to

2 effective soil, water, and related natural resource con3 servation.

4 ‘‘(4) Since individual’’.

5 (2) CONTINUING APPRAISAL OF SOIL, WATER,

6 AND RELATED RESOURCES.—Section 5 of the Soil and

7 Water Resources Conservation Act of 1977 (16 U.S.C.

8 2004) is amended—

9 (A) in subsection (a)—

10 (i) in paragraph (5), by striking

11 ‘‘and’’ at the end;

12 (ii) in paragraph (6), by striking the

13 period at the end and inserting ‘‘; and’’;

14 and

15 (iii) by adding at the end the fol16 lowing:

17 ‘‘(7) data on conservation plans, conservation

18 practices planned or implemented, environmental out19 comes, economic costs, and related matters under con20 servation programs administered by the Secretary.’’;

21 (B) by redesignating subsection (d) as sub22 section (e);

23 (C) by inserting after subsection (c) the fol24 lowing:
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1 ‘‘(d) EVALUATION OF APPRAISAL.—In conducting the

2 appraisal described in subsection (a), the Secretary shall

3 concurrently solicit and evaluate recommendations for im4 proving the appraisal, including the content, scope, process,

5 participation in, and other elements of the appraisal, as

6 determined by the Secretary.’’; and

7 (D) in subsection (e) (as redesignated by

8 subparagraph (B)), by striking ‘‘December 31,

9 1979’’ and all that follows through ‘‘December

10 31, 2005’’ and inserting ‘‘December 31, 2010,

11 December 31, 2015, December 31, 2020, and De12 cember 31, 2025’’.

13 (3) SOIL AND WATER CONSERVATION PRO14 GRAM.—Section 6 of the Soil and Water Resources

15 Conservation Act of 1977 (16 U.S.C. 2005) is

16 amended—

17 (A) by redesignating subsection (b) as sub18 section (d);

19 (B) by inserting after subsection (a) the fol20 lowing:

21 ‘‘(b) EVALUATION OF EXISTING CONSERVATION PRO22 GRAMS.—In evaluating existing conservation programs, the

23 Secretary shall emphasize demonstration, innovation, and

24 monitoring of specific program components in order to en-
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1 courage further development and adoption of practices and

2 performance-based standards.

3 ‘‘(c) IMPROVEMENT TO PROGRAM.—In developing a

4 national soil and water conservation program under sub5 section (a), the Secretary shall solicit and evaluate rec6 ommendations for improving the program, including the

7 content, scope, process, participation in, and other elements

8 of the program, as determined by the Secretary.’’; and

9 (C) in subsection (d) (as redesignated by

10 subparagraph (A)), by striking ‘‘December 31,

11 1979’’ and all that follows through ‘‘December

12 31, 2007’’ and inserting ‘‘December 31, 2011,

13 December 31, 2016, December 31, 2021, and De14 cember 31, 2026’’.

15 (4) REPORTS TO CONGRESS.—Section 7 of the

16 Soil and Water Resources Conservation Act of 1977

17 (16 U.S.C. 2006) is amended to read as follows:

18 ‘‘SEC. 7. REPORTS TO CONGRESS.

19 ‘‘(a) APPRAISAL.—Not later than the date on which

20 Congress convenes in 2011, 2016, 2021, and 2026, the Presi21 dent shall transmit to the Speaker of the House of Rep22 resentatives and the President of the Senate the appraisal

23 developed under section 5 and completed prior to the end

24 of the previous year.
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1 ‘‘(b) PROGRAM AND STATEMENT OF POLICY.—Not

2 later than the date on which Congress convenes in 2012,

3 2017, 2022, and 2027, the President shall transmit to the

4 Speaker of the House of Representatives and the President

5 of the Senate—

6 ‘‘(1) the initial program or updated program de7 veloped under section 6 and completed prior to the

8 end of the previous year;

9 ‘‘(2) a detailed statement of policy regarding soil

10 and water conservation activities of the Department

11 of Agriculture; and

12 ‘‘(3) a special evaluation of the status, condi13 tions, and trends of soil quality on cropland in the

14 United States that addresses the challenges and op15 portunities for reducing soil erosion to tolerance lev16 els.

17 ‘‘(c) IMPROVEMENTS TO APPRAISAL AND PROGRAM.—

18 Not later than the date on which Congress convenes in 2012,

19 the Secretary shall submit to the Speaker of the House of

20 Representatives and the President of the Senate a report

21 describing the plans of the Department of Agriculture for

22 improving the resource appraisal and national conserva23 tion program required under this Act, based on the rec24 ommendations received under sections 5(d) and 6(c).’’.
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1 (5) TERMINATION OF PROGRAM.—Section 10 of

2 the Soil and Water Resources Conservation Act of

3 1977 (16 U.S.C. 2009) is amended by striking ‘‘2008’’

4 and inserting ‘‘2028’’.

5 SEC. 2604. SMALL WATERSHED REHABILITATION PROGRAM.

6 Section 14 of the Watershed Protection and Flood Pre7 vention Act (16 U.S.C. 1012) is amended by striking sub8 section (h) and inserting the following:

9 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated such sums as are nec11 essary to carry out this section for each of fiscal years 2008

12 through 2012.’’.

13 SEC. 2605. RESOURCE CONSERVATION AND DEVELOPMENT

14 PROGRAM.

15 (a) LOCALLY LED PLANNING PROCESS.—Section 1528

16 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451)

17 is amended—

18 (1) in paragraph (1), in the matter preceding

19 subparagraph (A), by striking ‘‘planning process’’

20 and inserting ‘‘locally led planning process’’;

21 (2) by redesignating paragraphs (8) and (9) as

22 paragraphs (9) and (8), respectively, and moving

23 those paragraphs so as to appear in numerical order;

24 (3) in paragraph (8) (as so redesignated)—
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1 (A) by striking ‘‘(8) PLANNING PROCESS’’

2 and inserting ‘‘(8) LOCALLY LED PLANNING

3 PROCESS’’; and

4 (B) by striking ‘‘council’’ and inserting ‘‘lo5 cally led council’’.

6 (b) AUTHORIZED TECHNICAL ASSISTANCE.—Section

7 1528(13) of the Agriculture and Food Act of 1981 (16

8 U.S.C. 3451(13)) is amended by striking subparagraphs (C)

9 and (D) and inserting the following:

10 ‘‘(C) providing assistance for the implemen11 tation of area plans and projects; and

12 ‘‘(D) providing services that involve the re13 sources of Department of Agriculture programs

14 in a local community, as defined in the locally

15 led planning process.’’.

16 (c) IMPROVED PROVISION OF TECHNICAL ASSIST17 ANCE.—Section 1531 of the Agriculture and Food Act of

18 1981 (16 U.S.C. 3454) is amended—

19 (1) by redesignating paragraphs (1) through (4)

20 as clauses (i) through (iv), respectively, and indenting

21 appropriately;

22 (2) by striking ‘‘In carrying’’ and inserting the

23 following:

24 ‘‘(1) IN GENERAL.—In carrying’’; and

25 (3) by adding at the end the following:
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1 ‘‘(b) COORDINATOR.—

2 ‘‘(1) IN GENERAL.—To improve the provision of

3 technical assistance to councils under this subtitle, the

4 Secretary shall designate for each council an indi5 vidual to be the coordinator for the council.

6 ‘‘(2) RESPONSIBILITY.—A coordinator for a

7 council shall be directly responsible for the provision

8 of technical assistance to the council.’’.

9 (d) PROGRAM EVALUATION.—Section 1534 of the Agri10 culture and Food Act of 1981 (16 U.S.C. 3457) is repealed.

11 SEC. 2606. NATIONAL NATURAL RESOURCES CONSERVA12 TION FOUNDATION.

13 (a) ADVISORY FUNCTIONS.—Section 353 of the Federal

14 Agriculture Improvement and Reform Act of 1996 (16

15 U.S.C. 5802) is amended—

16 (1) in subsection (b)(3), by striking ‘‘agencies’’

17 and inserting ‘‘agencies, individuals,’’; and

18 (2) by adding at the end the following:

19 ‘‘(d) ADVISORY FUNCTIONS.—Notwithstanding the re20 quirements of the Federal Advisory Committee Act (5

21 U.S.C. App.), the Foundation may provide advice and rec22 ommendations to the Secretary.’’.

23 (b) GIFTS, DEVISES, AND BEQUESTS OF PERSONAL

24 PROPERTY.—Section 354 of the Federal Agriculture Im-
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1 provement and Reform Act of 1996 (16 U.S.C. 5803) is

2 amended by adding at the end the following:

3 ‘‘(h) GIFTS, DEVISES, AND BEQUESTS OF PERSONAL

4 PROPERTY.—

5 ‘‘(1) IN GENERAL.—Prior to the appointment

6 and initial meeting of the members of the Board and

7 after the initial meeting of the Board, the Secretary

8 may, on behalf of the Foundation—

9 ‘‘(A) accept, receive, and hold nonmonetary

10 gifts, devises, or bequests of personal property;

11 and

12 ‘‘(B) accept and receive monetary gifts, de13 vises, or bequests.

14 ‘‘(2) HELD IN TRUST.—Gifts, devises, or bequests

15 of monetary and nonmonetary personal property

16 shall—

17 ‘‘(A) be held in trust for the Foundation;

18 and

19 ‘‘(B) shall not be—

20 ‘‘(i) considered gifts to the United

21 States; or

22 ‘‘(ii) used for the benefit of the United

23 States.

24 ‘‘(3) TREASURY ACCOUNT.—The Secretary shall

25 deposit monetary gifts, devises, and bequests to the
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1 Foundation in a special interest-bearing account in

2 the Treasury of the United States.

3 ‘‘(4) INITIAL GIFTS, DEVISES, AND BEQUESTS.—

4 ‘‘(A) IN GENERAL.—The Secretary may use

5 initial gifts, devises, or bequests received prior to

6 the first meeting of the Board for any necessary

7 expenses and activities related to the first meet8 ing of the Board.

9 ‘‘(B) TRANSFER.—Except with respect to

10 any amounts expended under subparagraph (A),

11 the Secretary shall, at the first meeting of the

12 Board, transfer to the Foundation all gifts, de13 vises, or bequests received prior to the first meet14 ing of the Board.’’.

15 (c) OFFICERS AND EMPLOYEES.—Section 355(b)(1) of

16 the Federal Agriculture Improvement and Reform Act of

17 1996 (16 U.S.C. 5804(b)(1)) is amended—

18 (1) by striking ‘‘Foundation—’’ and all that fol19 lows through ‘‘shall not,’’ in subparagraph (A) and

20 inserting ‘‘Foundation shall not’’;

21 (2) by striking ‘‘employee; and’’ and inserting

22 ‘‘employee.’’; and

23 (3) by striking subparagraph (B).
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1 (d) CONTRACTS AND AGREEMENTS.—Section 356 of

2 the Federal Agriculture Improvement Reform Act of 1996

3 (16 U.S.C. 5805) is amended—

4 (1) in subsection (c)(7), by striking ‘‘State or

5 local’’ and inserting ‘‘Federal, State, or local’’; and

6 (2) in subsection (d)(2)—

7 (A) by striking ‘‘A gift’’ and inserting the

8 following:

9 ‘‘(A) IN GENERAL.—A gift’’; and

10 (B) by adding at the end the following:

11 ‘‘(B) TAX STATUS.—A gift, devise, or be12 quest to the Foundation shall be treated as a gift,

13 devise, or bequest to an organization exempt

14 from taxation under section 501(c)(3) of the In15 ternal Revenue Code of 1986.’’.

16 (e) ADMINISTRATIVE SERVICES AND SUPPORT.—Sec17 tion 356 of the Federal Agriculture Improvement Reform

18 Act of 1996 (16 U.S.C. 5806) is amended by striking ‘‘1996

19 through 1998’’ and inserting ‘‘2008 through 2012.’’.

20 SEC. 2607. DESERT TERMINAL LAKES.

21 Section 2507 of the Farm Security and Rural Invest22 ment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–

23 171) is amended—

24 (1) in subsection (a), by striking ‘‘, as soon as

25 practicable after the date of enactment of this Act,’’
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1 and inserting the following: ‘‘and paragraph (1) of

2 section 207(a) of Public Law 108–7 (117 Stat. 146),

3 notwithstanding paragraph (3) of that section, on the

4 date of enactment of the Food and Energy Security

5 Act of 2007,’’; and

6 (2) by striking subsection (b) and inserting the

7 following:

8 ‘‘(b) PERMITTED USES.—In any case in which there

9 are willing sellers, the funds described in subsection (a) may

10 be used—

11 ‘‘(1) to lease water; or

12 ‘‘(2) to purchase land, water appurtenant to the

13 land, and related interests in the Walker River Basin

14 in accordance with section 208(a)(1)(A) of the Energy

15 and Water Development Appropriations Act, 2006

16 (Public Law 109–103, 119 Stat. 2268).’’.

17 SEC. 2607A. DESERT TERMINAL LAKES.

18 Section 2507 of the Farm Security and Rural Invest19 ment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–

20 171) is amended—

21 (1) in subsection (a), by striking ‘‘, as soon as

22 practicable after the date of enactment of this Act,’’

23 and inserting the following: ‘‘and paragraph (1) of

24 section 207(a) of Public Law 108–7 (117 Stat. 146),

25 notwithstanding paragraph (3) of that section, on the
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1 date of enactment of the Food and Energy Security

2 Act of 2007,’’; and

3 (2) by striking subsection (b) and inserting the

4 following:

5 ‘‘(b) PERMITTED USES.—In any case in which there

6 are willing sellers, the funds described in subsection (a) may

7 be used—

8 ‘‘(1) to lease water; or

9 ‘‘(2) to purchase land, water appurtenant to the

10 land, and related interests in the Walker River Basin

11 in accordance with section 208(a)(1)(A) of the Energy

12 and Water Development Appropriations Act, 2006

13 (Public Law 109–103, 119 Stat. 2268).’’.

14 SEC. 2608. CROP INSURANCE INELIGIBILITY RELATING TO

15 CROP PRODUCTION ON NATIVE SOD.

16 (a) FEDERAL CROP INSURANCE.—Section 508 of the

17 Federal Crop Insurance Act (7 U.S.C. 1508) is amended

18 by adding at the end the following:

19 ‘‘(o) CROP INSURANCE INELIGIBILITY RELATING TO

20 CROP PRODUCTION ON NATIVE SOD.—

21 ‘‘(1) DEFINITION OF NATIVE SOD.—In this sub22 section, the term ‘native sod’ means land—

23 ‘‘(A) on which the plant cover is composed

24 principally of native grasses, grasslike plants,
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1 forbs, or shrubs suitable for grazing and brows2 ing; and

3 ‘‘(B) that has never been used for produc4 tion of an agricultural commodity.

5 ‘‘(2) INELIGIBILITY.—

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

7 subparagraph (B), native sod acreage on which

8 an agricultural commodity is planted for which

9 a policy or plan of insurance is available under

10 this title shall be ineligible for benefits under this

11 Act.

12 ‘‘(B) DE MINIMIS ACREAGE EXEMPTION.—

13 The Secretary shall exempt areas of 5 acres or

14 less from subparagraph (A).’’.

15 (b) NONINSURED CROP DISASTER ASSISTANCE.—Sec16 tion 196(a) of the Federal Agriculture Improvement and

17 Reform Act of 1996 (7 U.S.C. 7333(a)) is amended by add18 ing at the end the following:

19 ‘‘(4) PROGRAM INELIGIBILITY RELATING TO CROP

20 PRODUCTION ON NATIVESOD.—

21 ‘‘(A) DEFINITION OF NATIVE SOD.—In this

22 paragraph, the term ‘native sod’ means land—

23 ‘‘(i) on which the plant cover is com24 posed principally of native grasses, grasslike
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1 plants, forbs, or shrubs suitable for grazing

2 and browsing; and

3 ‘‘(ii) that has never been used for pro4 duction of an agricultural commodity.

5 ‘‘(B) INELIGIBILITY.—Except as provided

6 in subparagraph (C), native sod acreage on

7 which an agricultural commodity is planted for

8 which a policy or plan of Federal crop insurance

9 is available shall be ineligible for benefits under

10 this section.

11 ‘‘(C) DE MINIMIS ACREAGE EXEMPTION.—

12 The Secretary shall exempt areas of 5 acres or

13 less from subparagraph (B).’’.

14 (c) CROPLAND REPORT.—

15 (1) BASELINE.—Not later than 180 days after

16 the date of enactment of this Act, the Secretary shall

17 submit to the Committee on Agriculture of the House

18 of Representatives and the Committee on Agriculture,

19 Nutrition, and Forestry of the Senate a report that

20 describes the cropland acreage in each county and

21 State, and the change in cropland acreage from the

22 preceding year in each county and State, beginning

23 with calendar year 1995 and including that informa24 tion for the most recent year for which that informa25 tion is available.
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1 (2) ANNUAL UPDATES.—Not later than January

2 1, 2008, and each January 1 thereafter through Janu3 ary 1, 2012, the Secretary shall submit to the Com4 mittee on Agriculture of the House of Representatives

5 and the Committee on Agriculture, Nutrition, and

6 Forestry of the Senate a report that describes—

7 (A) the cropland acreage in each county

8 and State as of the date of submission of the re9 port; and

10 (B) the change in cropland acreage from the

11 preceding year in each county and State.

12 SEC. 2609. HIGH PLAINS WATER STUDY.

13 Notwithstanding any other provision of this Act, no

14 person shall become ineligible for any program benefits

15 under this Act or an amendment made by this Act solely

16 as a result of participating in a 1-time study of recharge

17 potential for the Ogallala Aquifer in the High Plains of

18 the State of Texas.

19 SEC. 2610. PAYMENT OF EXPENSES.

20 Section 17(d) of the Federal Insecticide, Fungicide,

21 and Rodenticide Act (7 U.S.C. 136o(d)) is amended—

22 (1) by striking ‘‘The Administrator’’ and insert23 ing the following:

24 ‘‘(1) IN GENERAL.—The Administrator’’; and

25 (2) by adding at the end the following:
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1 ‘‘(2) DEPARTMENT OF STATE EXPENSES.—Any

2 expenses incurred by an employee of the Environ3 mental Protection Agency who participates in any

4 international technical, economic, or policy review

5 board, committee, or other official body that is meet6 ing in relation to an international treaty shall be

7 paid by the Department of State.’’.

8 SEC. 2611. USE OF FUNDS IN BASIN FUNDS FOR SALINITY

9 CONTROL ACTIVITIES UPSTREAM OF IMPE10 RIAL DAM.

11 (a) IN GENERAL.—Section 202(a) of the Colorado

12 River Basin Salinity Control Act (43 U.S.C. 1592(a)) is

13 amended by adding at the end the following:

14 ‘‘(7) BASIN STATES PROGRAM.—

15 ‘‘(A) IN GENERAL.—A Basin States Pro16 gram that the Secretary, acting through the Bu17 reau of Reclamation, shall implement to carry

18 out salinity control activities in the Colorado

19 River Basin using funds made available under

20 section 205(f).

21 ‘‘(B) ASSISTANCE.—The Secretary, in con22 sultation with the Colorado River Basin Salinity

23 Control Advisory Council, shall carry out this

24 paragraph using funds described in subpara25 graph (A) directly or by providing grants, grant
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1 commitments, or advance funds to Federal or

2 non-Federal entities under such terms and condi3 tions as the Secretary may require.

4 ‘‘(C) ACTIVITIES.—Funds described in sub5 paragraph (A) shall be used to carry out, as de6 termined by the Secretary—

7 ‘‘(i) cost-effective measures and associ8 ated works to reduce salinity from saline

9 springs, leaking wells, irrigation sources,

10 industrial sources, erosion of public and

11 private land, or other sources;

12 ‘‘(ii) operation and maintenance of sa13 linity control features constructed under the

14 Colorado River Basin salinity control pro15 gram; and

16 ‘‘(iii) studies, planning, and adminis17 tration of salinity control activities.

18 ‘‘(D) REPORT.—

19 ‘‘(i) IN GENERAL.—Not later than 30

20 days before implementing the program es21 tablished under this paragraph, the Sec22 retary shall submit to the appropriate com23 mittees of Congress a planning report that

24 describes the proposed implementation of

25 the program.
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1 ‘‘(ii) IMPLEMENTATION.—The Sec2 retary may not expend funds to implement

3 the program established under this para4 graph before the expiration of the 30-day

5 period beginning on the date on which the

6 Secretary submits the report, or any revi7 sion to the report, under clause (i).’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Section 202 of the Colorado River Basin Sa10 linity Control Act (43 U.S.C. 1592) is amended—

11 (A) in subsection (a), in the matter pre12 ceding paragraph (1), by striking ‘‘program’’

13 and inserting ‘‘programs’’; and

14 (B) in subsection (b)(4)—

15 (i) by striking ‘‘program’’ and insert16 ing ‘‘programs’’; and

17 (ii) by striking ‘‘and (6)’’ and insert18 ing ‘‘(6), and (7)’’.

19 (2) Section 205 of the Colorado River Basin Sa20 linity Control Act (43 U.S.C. 1595) is amended by

21 striking subsection (f) and inserting the following:

22 ‘‘(f) UPFRONT COST SHARE.—

23 ‘‘(1) IN GENERAL.—Effective beginning on the

24 date of enactment of this paragraph, subject to para25 graph (3), the cost share obligations required by this
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1 section shall be met through an upfront cost share

2 from the Basin Funds, in the same proportions as the

3 cost allocations required under subsection (a), as pro4 vided in paragraph (2).

5 ‘‘(2) BASIN STATES PROGRAM.—The Secretary

6 shall expend the required cost share funds described in

7 paragraph (1) through the Basin States Program for

8 salinity control activities established under section

9 202(a)(7).

10 ‘‘(3) EXISTING SALINITY CONTROL ACTIVITIES.—

11 The cost share contribution required by this section

12 shall continue to be met through repayment in a

13 manner consistent with this section for all salinity

14 control activities for which repayment was com15 menced prior to the date of enactment of this para16 graph.’’.

17 SEC. 2612. TECHNICAL CORRECTIONS TO THE FEDERAL IN18 SECTICIDE, FUNGICIDE, AND RODENTICIDE

19 ACT.

20 (a) PESTICIDE REGISTRATION SERVICE FEES.—Sec21 tion 33 of the Federal Insecticide, Fungicide, and

22 Rodenticide Act (7 U.S.C. 136w–8) is amended—

23 (1) in subsection (b)(7)—

24 (A) in subparagraph (D)—
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1 (i) by striking clause (i) and inserting

2 the following:

3 ‘‘(i) IN GENERAL.—The Administrator

4 may exempt from, or waive a portion of, the

5 registration service fee for an application

6 for minor uses for a pesticide.’’; and

7 (ii) in clause (ii), by inserting ‘‘or ex8 emption’’ after ‘‘waiver’’; and

9 (B) in subparagraph (E)—

10 (i) in the paragraph heading, by strik11 ing ‘‘WAIVER’’ and inserting ‘‘EXEMPTION’’;

12 (ii) by striking ‘‘waive the registration

13 service fee for an application’’ and inserting

14 ‘‘exempt an application from the registra15 tion service fee’’; and

16 (iii) in clause (ii), by striking ‘‘waiv17 er’’ and inserting ‘‘exemption’’; and

18 (2) in subsection (m)(2), by striking ‘‘2008’’ each

19 place it appears and inserting ‘‘2012’’.

20 (b) EFFECTIVE DATE.—The amendments made by sub21 section (a) take effect on October 1, 2007.
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1 TITLE III—TRADE

2 Subtitle A—Food for Peace Act

3 SEC. 3001. SHORT TITLE.

4 (a) IN GENERAL.—Section 1 of the Agricultural Trade

5 Development and Assistance Act of 1954 (7 U.S.C. 1691

6 note; 104 Stat. 3633) is amended by striking ‘‘Agricultural

7 Trade Development and Assistance Act of 1954’’ and insert8 ing ‘‘Food for Peace Act’’.

9 (b) CONFORMING AMENDMENTS.—

10 (1) IN GENERAL.—Each provision of law de11 scribed in paragraph (2) is amended—

12 (A) by striking ‘‘Agricultural Trade Devel13 opment and Assistance Act of 1954’’ each place

14 it appears and inserting ‘‘Food for Peace Act’’;

15 and

16 (B) in each section heading, by striking

17 ‘‘AGRICULTURAL TRADE DEVELOPMENT

18 AND ASSISTANCE ACT OF 1954’’ each place it

19 appears and inserting ‘‘FOOD FOR PEACE

20 ACT’’.

21 (2) PROVISIONS OF LAW.—The provisions of law

22 referred to in paragraph (1) are the following:

23 (A) The Agriculture and Food Act of 1981

24 (Public Law 97–98; 95 Stat. 1213).
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1 (B) The Agricultural Act of 1949 (7 U.S.C.

2 1421 et seq.).

3 (C) Section 9(a) of the Military Construc4 tion Codification Act (7 U.S.C. 1704c).

5 (D) Section 201 of the Africa: Seeds of

6 Hope Act of 1998 (7 U.S.C. 1721 note; Public

7 Law 105–385).

8 (E) The Bill Emerson Humanitarian Trust

9 Act (7 U.S.C. 1736f–1 et seq.).

10 (F) The Food for Progress Act of 1985 (7

11 U.S.C. 1736o).

12 (G) Section 3107 of the Farm Security and

13 Rural Investment Act of 2002 (7 U.S.C. 1736o–

14 1).

15 (H) Sections 605B and 606C of the Act of

16 August 28, 1954 (commonly known as the ‘‘Agri17 cultural Act of 1954’’) (7 U.S.C. 1765b, 1766b).

18 (I) Section 206 of the Agricultural Act of

19 1956 (7 U.S.C. 1856).

20 (J) The Agricultural Competitiveness and

21 Trade Act of 1988 (7 U.S.C. 5201 et seq.).

22 (K) The Agricultural Trade Act of 1978 (7

23 U.S.C. 5601 et seq.).

24 (L) The Export-Import Bank Act of 1945

25 (12 U.S.C. 635 et seq.).
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1 (M) Section 301 of title 13, United States

2 Code.

3 (N) Section 8 of the Endangered Species

4 Act of 1973 (16 U.S.C. 1537).

5 (O) Section 604 of the Enterprise for the

6 Americas Act of 1992 (22 U.S.C. 2077).

7 (P) Section 5 of the International Health

8 Research Act of 1960 (22 U.S.C. 2103).

9 (Q) The Foreign Assistance Act of 1961 (22

10 U.S.C. 2151 et seq.).

11 (R) The Horn of Africa Recovery and Food

12 Security Act (22 U.S.C. 2151 note; Public Law

13 102–274).

14 (S) Section 105 of the Mutual Educational

15 and Cultural Exchange Act of 1961 (22 U.S.C.

16 2455).

17 (T) Section 35 of the Foreign Military Sales

18 Act (22 U.S.C. 2775).

19 (U) The Support for East European De20 mocracy (SEED) Act of 1989 (22 U.S.C. 5401 et

21 seq.).

22 (V) Section 1707 of the Cuban Democracy

23 Act of 1992 (22 U.S.C. 6006).
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1 (W) The Cuban Liberty and Democratic

2 Solidarity (LIBERTAD) Act of 1996 (22 U.S.C.

3 6021 et seq.).

4 (X) Section 902 of the Trade Sanctions Re5 form and Export Enhancement Act of 2000 (22

6 U.S.C. 7201).

7 (Y) Chapter 553 of title 46, United State

8 Code.

9 (Z) Section 4 of the Strategic and Critical

10 Materials Stock Piling Act (50 U.S.C. 98c).

11 (AA) The Food, Agriculture, Conservation,

12 and Trade Act of 1990 (Public Law 101–624;

13 104 Stat. 3359).

14 (BB) Section 738 of the Agriculture, Rural

15 Development, Food and Drug Administration,

16 and Related Agencies Appropriations Act, 2001

17 (Public Law 106–387; 114 Stat 1549A–34).

18 (c) REFERENCES.—Any reference in any Federal,

19 State, tribal, or local law (including regulations) to the

20 ‘‘Agricultural Trade Development and Assistance Act of

21 1954’’ shall be considered to be a reference to the ‘‘Food

22 for Peace Act’’.

23 SEC. 3002. UNITED STATES POLICY.

24 Section 2 of the Food for Peace Act (7 U.S.C. 1691)

25 is amended—
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1 (1) by striking paragraph (4); and

2 (2) by redesignating paragraphs (5) and (6) as

3 paragraphs (4) and (5), respectively.

4 SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

5 Section 3(b) of the Food for Peace Act (7 U.S.C.

6 1691a(b)) is amended by striking ‘‘(b)’’ and all that follows

7 through paragraph (1) and inserting the following:

8 ‘‘(b) SENSE OF CONGRESS.—It is the sense of Congress

9 that—

10 ‘‘(1) in negotiations with other countries at the

11 Food Aid Convention, the World Trade Organization,

12 the United Nations Food and Agriculture Organiza13 tion, and other appropriate venues, the President

14 shall—

15 ‘‘(A) seek commitments of higher levels of

16 food aid by donors in order to meet the legiti17 mate needs of developing countries;

18 ‘‘(B) ensure, to the maximum extent prac19 ticable, that humanitarian nongovernmental or20 ganizations, recipient country governments,

21 charitable bodies, and international organiza22 tions shall continue—

23 ‘‘(i) to be eligible to receive resources

24 based on assessments of need conducted by

25 those organizations and entities; and
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1 ‘‘(ii) to implement food aid programs

2 in agreements with donor countries; and

3 ‘‘(C) ensure, to the maximum extent prac4 ticable, that options for providing food aid for

5 emergency and nonemergency, or chronic, needs

6 shall not be subject to limitation, including in7 kind commodities, provision of funds for com8 modity procurement, and monetization of com9 modities, on the condition that the provision of

10 those commodities or funds—

11 ‘‘(i) is based on assessments of need

12 and intended to benefit the food security of

13 or otherwise assist recipients, and

14 ‘‘(ii) is provided in a manner that

15 avoids disincentives to local agricultural

16 production and marketing and with mini17 mal potential for disruption of commercial

18 markets; and’’.

19 SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

20 (a) Title I of the Food for Peace Act (7 U.S.C. 1701

21 et seq.) is amended in the title heading, by striking

22 ‘‘TRADE AND DEVELOPMENT ASSISTANCE’’

23 and inserting ‘‘ECONOMIC ASSISTANCE AND

24 FOOD SECURITY’’.
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1 (b) Section 101 of the Food for Peace Act (7 U.S.C.

2 1701) is amended in the section heading, by striking

3 ‘‘TRADE AND DEVELOPMENT ASSISTANCE’’ and in4 serting ‘‘ECONOMIC ASSISTANCE AND FOOD SECU5 RITY’’.

6 SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

7 AND PRIVATE ENTITIES.

8 Section 102 of the Food for Peace Act (7 U.S.C. 1702)

9 is amended—

10 (1) in subsection (a)—

11 (A) by striking paragraph (1); and

12 (B) by redesignating paragraphs (2) and

13 (3) as paragraphs (1) and (2), respectively; and

14 (2) by striking subsection (c).

15 SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

16 Section 104(c) of the Food for Peace Act (7 U.S.C.

17 1704(c)) is amended—

18 (1) in the matter preceding paragraph (1), by

19 inserting ‘‘, through agreements with recipient gov20 ernments, private voluntary organizations, and co21 operatives,’’ after ‘‘developing country’’;

22 (2) in paragraph (2)—

23 (A) in subparagraph (C), by striking ‘‘and’’

24 at the end;
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1 (B) in subparagraph (D), by striking the

2 period at the end and inserting ‘‘; and’’; and

3 (C) by adding at the end the following:

4 ‘‘(E) the improvement of the trade capacity

5 of the recipient country.’’;

6 (3) by striking paragraphs (1), (3), (4), (5), and

7 (6); and

8 (4) by redesignating paragraphs (2), (7), (8),

9 and (9) as paragraphs (1), (2), (3), and (4), respec10 tively.

11 SEC. 3007. GENERAL AUTHORITY.

12 Section 201 of the Food for Peace Act (7 U.S.C. 1721)

13 is amended—

14 (1) by striking paragraph (1) and inserting the

15 following:

16 ‘‘(1) address famine and respond to emergency

17 food needs arising from man-made and natural disas18 ters;’’;

19 (2) in paragraph (5), by inserting ‘‘food security

20 and support’’ after ‘‘promote’’; and

21 (3) by striking paragraph (6) and inserting the

22 following:

23 ‘‘(6) protect livelihoods, provide safety nets for

24 food insecure populations, and encourage participa-
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1 tion in educational, training, and other productive

2 activities.’’.

3 SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

4 Section 202 of the Food for Peace Act (7 U.S.C. 1722)

5 is amended—

6 (1) in subsection (b)(2), by striking ‘‘may not

7 deny a request for funds’’ and inserting ‘‘may not use

8 as a sole rationale for denying a request for funds’’;

9 (2) in subsection (e)(1)—

10 (A) in the matter preceding subparagraph

11 (A)—

12 (i) by striking ‘‘Of the funds made

13 available in’’ and inserting ‘‘Of the total

14 amount of funds made available from all

15 sources for’’; and

16 (ii) by striking ‘‘not less than 5 per17 cent nor more than 10 percent’’ and insert18 ing ‘‘not less than 7.5 percent’’;

19 (B) in subparagraph (A), by striking ‘‘and’’

20 at the end;

21 (C) by striking subparagraph (B) and in22 serting the following:

23 ‘‘(B) meeting specific administrative, man24 agement, personnel, programmatic, and oper25 ational activities, and internal transportation
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1 and distribution costs for carrying out new and

2 existing programs in foreign countries under this

3 title; and’’

4 (D) by adding at the end the following:

5 ‘‘(C) improving and implementing meth6 odologies for food aid programs, including needs

7 assessments, monitoring, and evaluation.’’; and

8 (3) by striking subsection (h) and inserting the

9 following:

10 ‘‘(h) FOOD AID QUALITY.—

11 ‘‘(1) IN GENERAL.—The Administrator shall use

12 funds made available for fiscal year 2008 and subse13 quent fiscal years to carry out this title—

14 ‘‘(A) to assess the types and quality of agri15 cultural commodities and products donated for

16 food aid;

17 ‘‘(B) to adjust products and formulations as

18 necessary to cost-effectively meet nutrient needs

19 of target populations; and

20 ‘‘(C) to pretest prototypes.

21 ‘‘(2) ADMINISTRATION.—The Administrator—

22 ‘‘(A) shall carry out this subsection in con23 sultation with and through an independent enti24 ty with proven impartial expertise in food aid

25 commodity quality enhancements;
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1 ‘‘(B) may enter into contracts to obtain the

2 services of such an entity; and

3 ‘‘(C) shall consult with the Food Aid Con4 sultative Group on how to carry out this sub5 section.

6 ‘‘(3) REPORTS.—The Administrator shall submit

7 to the Committees on Agriculture and Foreign Affairs

8 of the House of Representatives and the Committee on

9 Agriculture, Nutrition, and Forestry of the Senate—

10 ‘‘(A) a report that describes the activities of

11 the Administrator in carrying out paragraph (1)

12 for fiscal year 2008; and

13 ‘‘(B) an annual report that describes the

14 progress of the Administrator in addressing food

15 aid quality issues.’’.

16 SEC. 3009. MICROENTERPRISE ACTIVITIES.

17 Section 203(d)(2) of the Food for Peace Act (7

18 U.S.C.1723(d)(2)) is amended by inserting ‘‘, including ac19 tivities involving microenterprise and village banking,’’

20 after ‘‘other developmental activities’’.

21 SEC. 3010. LEVELS OF ASSISTANCE.

22 Section 204(a)(1) of the Food for Peace Act (7 U.S.C.

23 1724(a)(1)) is amended by striking ‘‘2007’’ and inserting

24 ‘‘2012’’.
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1 SEC. 3011. FOOD AID CONSULTATIVE GROUP.

2 Section 205 of the Food for Peace Act (7 U.S.C. 1725)

3 is amended—

4 (1) in subsection (b)—

5 (A) in paragraph (5), by striking ‘‘and’’ at

6 the end;

7 (B) in paragraph (6), by striking the period

8 and inserting ‘‘; and’’; and

9 (C) by inserting at the end the following:

10 ‘‘(7) representatives from the maritime transpor11 tation sector involved in transporting agricultural

12 commodities overseas for programs under this Act.’’;

13 (2) in subsection (d)—

14 (A) by striking ‘‘In preparing’’ and insert15 ing the following:

16 ‘‘(1) IN GENERAL.—In preparing’’;

17 (B) by striking ‘‘The Administrator’’ and

18 inserting the following:

19 ‘‘(2) BIANNUAL CONSULTATION.—The Adminis20 trator’’; and

21 (C) by adding at the end the following:

22 ‘‘(3) CONSULTATION FOR DRAFT REGULA23 TIONS.—In addition to the meetings required under

24 paragraph (2), the Administrator shall consult and

25 meet with the Group—
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1 ‘‘(A) before issuing the draft regulations to

2 carry out the program described in section 209;

3 and

4 ‘‘(B) during the public comment period re5 lating to those draft regulations.’’; and

6 (3) in subsection (f), by striking ‘‘2007’’ and in7 serting ‘‘2012’’.

8 SEC. 3012. ADMINISTRATION.

9 Section 207 of the Food for Peace Act (7 U.S.C. 1726a)

10 is amended—

11 (1) in subsection (a)(3), by striking ‘‘must be

12 met for the approval of such proposal’’ and inserting

13 ‘‘should be considered for a proposal in a future fiscal

14 year’’;

15 (2) in subsection (c), by striking paragraph (3);

16 (3) by striking subsection (d) and inserting the

17 following:

18 ‘‘(d) TIMELY PROVISION OF COMMODITIES.—The Ad19 ministrator, in consultation with the Secretary, shall de20 velop procedures that ensure expedited processing of com21 modity call forwards in order to provide commodities over22 seas in a timely manner and to the extent feasible, accord23 ing to planned delivery schedules.’’;

24 (4) in subsection (e)(2), by striking ‘‘December

25 1’’ and inserting ‘‘June 1’’; and
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1 (5) by adding at the end the following:

2 ‘‘(f) PROGRAM OVERSIGHT.—

3 ‘‘(1) IN GENERAL.—Funds made available to

4 carry out this title may be used to pay the expenses

5 of the United States Agency for International Devel6 opment associated with program monitoring, evalua7 tion, assessments, food aid data collection, and food

8 aid information management and commodity report9 ing systems.

10 ‘‘(2) CONTRACT AUTHORITY.—

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graphs (B) and (C) and notwithstanding any

13 other provision of law, in carrying out adminis14 trative and management activities related to the

15 implementation of programs under this title, the

16 Administrator may contract with 1 or more in17 dividuals for personal service to be performed in

18 recipient countries or neighboring countries.

19 ‘‘(B) PROHIBITION.—Individuals con20 tracting with the Administrator under subpara21 graph (A) shall not be considered to be employees

22 of the United States Government for the purpose

23 of any law administered by the Office of Per24 sonnel Management.
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1 ‘‘(C) PERSONAL SERVICE.—Subparagraph

2 (A) does not limit the ability of the Adminis3 trator to contract with individuals for personal

4 service under section 202(a).

5 ‘‘(g) INDIRECT SUPPORT COSTS TO THE WORLD FOOD

6 PROGRAM OF THE UNITED NATIONS.—

7 ‘‘(1) IN GENERAL.—Notwithstanding any other

8 provision of law, in providing assistance under this

9 title, the Administrator may make contributions to

10 the World Food Program of the United Nations to the

11 extent that the contributions are made in accordance

12 with the rules and regulations of that program for in13 direct cost rates.

14 ‘‘(2) REPORT.—The Administrator shall submit

15 the Committees on Agriculture and Foreign Affairs of

16 the House of Representatives and the Committee on

17 Agriculture, Nutrition, and Forestry of the Senate an

18 annual report on the level of the contribution and the

19 reasons for the level.

20 ‘‘(h) INDIRECT SUPPORT COSTS TO COOPERATING

21 SPONSORS.—Notwithstanding any other provision of law,

22 the Administrator may pay to a private voluntary organi23 zation or cooperative indirect costs associated with any

24 funds received or generated for programs, costs, or activities

25 under this title, on the condition that the indirect costs are
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1 consistent with Office of Management and Budget cost prin2 ciples.

3 ‘‘(i) PROJECT REPORTING.—

4 ‘‘(1) IN GENERAL.—In submitting project reports

5 to the Administrator, a private voluntary organiza6 tion or cooperative shall provide a copy of the report

7 in such form as is necessary for the report to be dis8 played for public use on the website of the United

9 States Agency for International Development.

10 ‘‘(2) CONFIDENTIAL INFORMATION.—An organi11 zation or cooperative described in paragraph (1) may

12 omit any confidential information from the copy of

13 the report submitted for public display under that

14 paragraph.’’.

15 SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID

16 TRANSPORTATION, DELIVERY, AND DIS17 TRIBUTION OF SHELF-STABLE PREPACKAGED

18 FOODS.

19 Section 208(f) of the Food for Peace Act (7 U.S.C.

20 1726b(f)) is amended—

21 (1) by striking ‘‘$3,000,000’’ and inserting

22 ‘‘$8,000,000’’; and

23 (2) by striking ‘‘2007’’ and inserting ‘‘2012’’.
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1 SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.

2 Chapter 1 of part I of the Foreign Assistance Act of

3 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the

4 end the following:

5 ‘‘SEC. 136. PILOT PROGRAM FOR LOCAL PURCHASE OF ELI6 GIBLE COMMODITIES.

7 ‘‘(a) DEFINITIONS.—In this section:

8 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis9 trator’ means the Administrator of the Agency for

10 International Development.

11 ‘‘(2) ELIGIBLECOMMODITY.—The term ‘eligible

12 commodity’ means an agricultural commodity, or the

13 product of an agricultural commodity, that is pro14 duced in—

15 ‘‘(A) the recipient country;

16 ‘‘(B) a low-income, developing country near

17 the recipient country; or

18 ‘‘(C) Africa.

19 ‘‘(3) ELIGIBLEORGANIZATION.—The term ‘eligi20 ble organization’ means—

21 ‘‘(A) an organization that is—

22 ‘‘(i) described in section 202(d) of the

23 Food for Peace Act; and

24 ‘‘(ii) subject to guidelines promulgated

25 to carry out this section, including United
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1 States audit requirements that are applica2 ble to non-governmental organizations; or

3 ‘‘(B) an intergovernmental organization, if

4 the organization agrees to be subject to all re5 quirements of this section, including any regula6 tions promulgated or guidelines issued by the

7 Administrator to carry out this section.

8 ‘‘(4) PILOT PROGRAM.—The term ‘pilot program’

9 means the pilot program established under subsection

10 (b).

11 ‘‘(b) ESTABLISHMENT.—The Administrator shall es12 tablish a field-based pilot program for local and regional

13 purchases of eligible commodities in accordance with this

14 section.

15 ‘‘(c) PURPOSES.—Eligible commodities under the pilot

16 program shall be used solely—

17 ‘‘(1) to address severe food shortages caused by

18 sudden events, including—

19 ‘‘(A) earthquakes, floods, and other unfore20 seen crises; or

21 ‘‘(B) human-made crises, such as conflicts;

22 ‘‘(2) to prevent or anticipate increasing food

23 scarcity as the result of slow-onset events, such as

24 drought, crop failures, pests, economic shocks, and

25 diseases that result in an erosion of the capacity of
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1 communities and vulnerable populations to meet food

2 needs;

3 ‘‘(3) to address recovery, resettlement, and recon4 struction following 1 or more disasters or emergencies

5 described in paragraph (1) or (2); and

6 ‘‘(4) to protect and improve livelihoods and food

7 security, provide safety nets for food insecure or un8 dernourished populations, and encourage participa9 tion in education and other productive activities.

10 ‘‘(d) PROCUREMENT.—Eligible commodities under the

11 pilot program shall for emergency situations be procured

12 through the most effective 1 or more approaches or meth13 odologies that are likely to expedite the provision of food

14 aid to affected populations.

15 ‘‘(e) REVIEW OF PRIOR LOCAL CASH PURCHASE EX16 PERIENCE.—

17 ‘‘(1) IN GENERAL.—Not later than 30 days after

18 the date of enactment of this section, the Adminis19 trator shall initiate the process to commission an ex20 ternal review of local cash purchase projects conducted

21 before the date of enactment of this section by other

22 donor countries, private voluntary organizations, and

23 the World Food Program of the United Nations.

24 ‘‘(2) USE OF REVIEW.—The Administrator shall

25 use the results of the review to develop—
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1 ‘‘(A) proposed guidelines under subsection

2 (j); and

3 ‘‘(B) requests for applications under sub4 section (f).

5 ‘‘(3) REPORT.—Not later than 270 days after the

6 date of enactment of this section, the Administrator

7 shall submit to the Committees on Agriculture and

8 Foreign Affairs of the House of Representatives and

9 the Committee on Agriculture, Nutrition, and For10 estry of the Senate a report containing the results of

11 the review.

12 ‘‘(f) GRANTS TO ELIGIBLE ORGANIZATIONS.—

13 ‘‘(1) IN GENERAL.—After the promulgation of

14 final guidelines under subsection (j), the Adminis15 trator may seek applications from and provide grants

16 to eligible organizations to carry out the pilot pro17 gram.

18 ‘‘(2) COMPLETION REQUIREMENT.—As a condi19 tion of receiving a grant under the pilot program, an

20 eligible organization shall agree—

21 ‘‘(A) to complete all projects funded through

22 the grant not later than September 30, 2011; and

23 ‘‘(B) to provide information about the re24 sults of the project in accordance with subsection

25 (i).
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1 ‘‘(3) OTHER REQUIREMENTS.—Other require2 ments for submission of proposals for consideration

3 under this title shall apply to the submission of an

4 application for a grant under this section.

5 ‘‘(g) PROJECT DIVERSITY.—In selecting projects to

6 fund under the pilot program, the Administrator shall select

7 a diversity of projects, including—

8 ‘‘(1) at least 1 project for each of the situations

9 described in subsection (c);

10 ‘‘(2) at least 1 project carried out jointly with a

11 project funded through grassroots efforts by agricul12 tural producers through eligible United States organi13 zations;

14 ‘‘(3) projects in both food surplus and food def15 icit regions, using regional procurement for food def16 icit regions; and

17 ‘‘(4) projects in diverse geographical regions,

18 with most, but not all, projects located in Africa.

19 ‘‘(h) INFORMATION REQUIRED IN APPLICATIONS.—In

20 submitting an application under this section, an eligible

21 organization shall—

22 ‘‘(1) request funding for up to 3 years; and

23 ‘‘(2) include in the application—

24 ‘‘(A) a description of the target population

25 through a needs assessment and sufficient infor-
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1 mation to demonstrate that the situation is a sit2 uation described in subsection (c);

3 ‘‘(B) an assurance that the local or regional

4 procurement—

5 ‘‘(i) is likely to expedite the provision

6 of food aid to the affected population; and

7 ‘‘(ii) would meet the requirements of

8 subsection (d);

9 ‘‘(C) a description of—

10 ‘‘(i) the quantities and types of eligible

11 commodities that would be procured;

12 ‘‘(ii) the rationale for selecting those el13 igible commodities; and

14 ‘‘(iii) how the eligible commodities

15 could be procured and delivered in a timely

16 manner;

17 ‘‘(D) an analysis of the potential impact of

18 the purchase of eligible commodities on the pro19 duction, pricing, and marketing of the same and

20 similar agricultural commodities in the country

21 and localities in which the purchase will take

22 place;

23 ‘‘(E) a description of food quality and safe24 ty assurance measures; and
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1 ‘‘(F) a monitoring and evaluation plan that

2 ensures collection of sufficient data—

3 ‘‘(i) to determine the full cost of pro4 curement, delivery, and administration;

5 ‘‘(ii) to report on the agricultural pro6 duction, marketing, and price impact of the

7 local or regional purchases, including the

8 impact on low-income consumers; and

9 ‘‘(iii) to provide sufficient information

10 to support the completion of the report de11 scribed in subsection (i).

12 ‘‘(i) INDEPENDENT EVALUATION AND REPORT.—

13 ‘‘(1) IN GENERAL.—The Administrator shall—

14 ‘‘(A) arrange for an independent evaluation

15 of the pilot program; and

16 ‘‘(B) provide access to all records and re17 ports for the completion of the evaluation.

18 ‘‘(2) REPORT.—Not later than 4 years after the

19 date of enactment of this section, the Administrator

20 shall submit to the Committees on Agriculture and

21 Foreign Affairs of the House of Representatives and

22 the Committee on Agriculture, Nutrition, and For23 estry of the Senate a report that—

24 ‘‘(A) includes the analysis and findings of

25 the independent evaluation;
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1 ‘‘(B) assesses whether the requirements of

2 this section have been met;

3 ‘‘(C) describes for each of the relevant mar4 kets in which the commodities were purchased—

5 ‘‘(i) prevailing and historic supply, de6 mand, and price movements;

7 ‘‘(ii) impact on producer and con8 sumer prices;

9 ‘‘(iii) government market interferences

10 and other donor activities that may have af11 fected the supply and demand in the area

12 in which the local or regional purchase took

13 place; and

14 ‘‘(iv) the quantities and types of eligi15 ble commodities procured in each market,

16 the time frame for procurement, and the

17 complete costs of the procurement (including

18 procurement, storage, handling, transpor19 tation, and administrative costs);

20 ‘‘(D) assesses the impact of different meth21 odologies and approaches on local and regional

22 agricultural producers (including large and

23 small producers), markets, low-income con24 sumers, and program recipients;
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1 ‘‘(E) assesses the time elapsed from initi2 ation of the procurement process to delivery;

3 ‘‘(F) compares different methodologies used

4 in terms of—

5 ‘‘(i) the benefits to local agriculture;

6 ‘‘(ii) the impact on markets and con7 sumers;

8 ‘‘(iii) the time for procurement and de9 livery;

10 ‘‘(iv) quality and safety assurances;

11 and

12 ‘‘(v) implementation costs; and

13 ‘‘(G) to the extent adequate information is

14 available, includes a comparison of the different

15 methodologies used by other donors to make local

16 and regional purchases, including purchases con17 ducted through the World Food Program of the

18 United Nations.

19 ‘‘(j) GUIDELINES.—Prior to approving projects or the

20 procurement of eligible commodities under this section, not

21 later than 1 year after the date of enactment of this section,

22 the Administrator shall issue guidelines to carry out this

23 section.

24 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There are authorized to be

2 appropriated $25,000,000 for each of the fiscal years

3 2009 through 2012 to carry out this section.

4 ‘‘(2) AVAILABILITY.—Any amounts appropriated

5 pursuant to paragraph (1) shall remain available

6 until expended.’’.

7 SEC. 3015. GENERAL AUTHORITIES AND REQUIREMENTS.

8 (a) IN GENERAL.—Section 401 of the Food for Peace

9 Act (7 U.S.C. 1731) is amended—

10 (1) by striking subsection (a);

11 (2) redesignating subsections (b) and (c) as sub12 sections (a) and (b), respectively; and

13 (3) in subsection (b) (as so redesignated), by

14 striking ‘‘(b)(1)’’ and inserting ‘‘(a)(1)’’.

15 (b) CONFORMING AMENDMENTS.—

16 (1) Section 406(a) of the Food for Peace Act (7

17 U.S.C. 1736(a)) is amended by striking ‘‘(that have

18 been determined to be available under section

19 401(a))’’.

20 (2) Subsection (e)(1) of the Food for Progress Act

21 of 1985 (7 U.S.C. 1736o(e)(1)) is amended by striking

22 ‘‘determined to be available under section 401 of the

23 Food for Peace Act’’.
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1 SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

2 Section 406(b)(2) of the Food for Peace Act (7 U.S.C.

3 1736(b)(2)) is amended by inserting ‘‘, including the costs

4 of carrying out section 415’’ before the semicolon.

5 SEC. 3017. ADMINISTRATIVE PROVISIONS.

6 Section 407 of the Food for Peace Act (7 U.S.C. 1736a)

7 is amended—

8 (1) in subsection (c)(4)—

9 (A) by striking ‘‘2007’’ and inserting

10 ‘‘2012’’;

11 (B) by striking ‘‘$2,000,000’’ and inserting

12 ‘‘$4,000,000’’; and

13 (C) by adding at the end the following:

14 ‘‘(5) NONEMERGENCY OR MULTIYEAR AGREE15 MENTS.—Annual resource requests for ongoing non16 emergency or multiyear agreements under title II

17 shall be finalized not later than October 1 of the fiscal

18 year in which the agricultural commodities will be

19 shipped under the agreement.’’; and

20 (2) in subsection (f)—

21 (A) in paragraph (2)—

22 (i) in subparagraph (B), by inserting

23 ‘‘, and the amount of funds, tonnage levels,

24 and types of activities for nonemergency

25 programs under title II’’ before the semi26 colon;
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1 (ii) in subparagraph (C), by inserting

2 ‘‘, and a general description of the projects

3 and activities implemented’’ before the semi4 colon; and

5 (iii) in subparagraph (D), by striking

6 ‘‘achieving food security’’ and inserting ‘‘re7 ducing food insecurity’’; and

8 (B) in paragraph (3)—

9 (i) by striking ‘‘shall submit’’ and in10 serting the following: ‘‘shall—

11 ‘‘(A) submit’’;

12 (ii) by striking ‘‘January 15’’ and in13 serting ‘‘April 1’’; and

14 (iii) by striking ‘‘of the Senate’’. and

15 inserting the following: ‘‘of the Senate; and

16 ‘‘(B) make the reports available to the pub17 lic by electronic and other means.’’.

18 SEC. 3018. EXPIRATION DATE.

19 Section 408 of the Food for Peace Act (7 U.S.C. 1736b)

20 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

21 SEC. 3019. AUTHORIZATION OF APPROPRIATIONS.

22 Section 412 of the Food for Peace Act (7 U.S.C. 1736f)

23 is amended by striking subsection (b) and inserting the fol24 lowing:
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1 ‘‘(b) MINIMUM LEVEL OF NONEMERGENCY FOOD AS2 SISTANCE.—For each of fiscal years 2008 through 2012, of

3 the amounts made available to carry out emergency and

4 nonemergency food assistance programs under title II, not

5 less than $600,000,000 for each of those fiscal years shall

6 be obligated and expended for nonemergency food assistance

7 programs under title II.’’.

8 SEC. 3020. MICRONUTRIENT FORTIFICATION PROGRAMS.

9 Section 415 of the Food for Peace Act (7 U.S.C. 1736g–

10 2) is amended—

11 (1) in subsection (a)—

12 (A) in paragraph (1), by striking ‘‘Not later

13 than September 30, 2003, the Administrator, in

14 consultation with the Secretary’’ and inserting

15 ‘‘Not later than September 30, 2008, the Sec16 retary, in consultation with the Administrator’’;

17 and

18 (B) in paragraph (2)—

19 (i) in subparagraph (A), by adding

20 ‘‘and’’ after the semicolon at the end; and

21 (ii) by striking subparagraphs (B) and

22 (C) and inserting the following:

23 ‘‘(B) assess and apply technologies and sys24 tems to improve and ensure the quality, shelf

25 life, bioavailability, and safety of fortified food
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1 aid agricultural commodities, and products of

2 those agricultural commodities, that are provided

3 to developing countries, using recommendations

4 included in the report entitled ‘Micronutrient

5 Compliance Review of Fortified Public Law 480

6 Commodities’, published in October 2001, with

7 implementation by an independent entity with

8 proven impartial experience and expertise in

9 food aid commodity quality enhancements.’’;

10 (2) by striking subsection (b) and redesignating

11 subsections (c) and (d) as subsections (b) and (c), re12 spectively; and

13 (3) in subsection (c) (as redesignated by para14 graph (2), by striking ‘‘2007’’ and inserting ‘‘2012’’.

15 SEC. 3021. GERMPLASM CONSERVATION.

16 Title IV of the Food for Peace Act (7 U.S.C. 1731 et

17 seq.) is amended by adding at the end the following:

18 ‘‘SEC. 417. GERMPLASM CONSERVATION.

19 ‘‘(a) CONTRIBUTION.—The Administrator of the

20 United States Agency for International Development shall

21 contribute funds to endow the Global Crop Diversity Trust

22 (referred to in this section as the ‘Trust’) to assist in the

23 conservation of genetic diversity in food crops through the

24 collection and storage of the germplasm of food crops in a

25 manner that provides for—
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1 ‘‘(1) the maintenance and storage of seed collec2 tions;

3 ‘‘(2) the documentation and cataloguing of the

4 genetics and characteristics of conserved seeds to en5 sure efficient reference for researchers, plant breeders,

6 and the public;

7 ‘‘(3) building the capacity of seed collection in

8 developing countries;

9 ‘‘(4) making information regarding crop genetic

10 data publicly available for researchers, plant breeders,

11 and the public (including through the provision of an

12 accessible Internet website);

13 ‘‘(5) the operation and maintenance of a back14 up facility in which are stored duplicate samples of

15 seeds, in the case of natural or man-made disasters;

16 and

17 ‘‘(6) oversight designed to ensure international

18 coordination of those actions and efficient, public ac19 cessibility to that diversity through a cost-effective

20 system.

21 ‘‘(b) UNITED STATES CONTRIBUTION LIMIT.—The ag22 gregate contributions of funds of the Federal Government

23 provided to the Trust shall not exceed 25 percent of the total

24 of the funds contributed to the Trust from all sources.
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1 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is

2 authorized to be appropriated to carry out this section

3 $60,000,000 for the period of fiscal years 2008 through

4 2012.’’.

5 SEC. 3022. JOHN OGONOWSKI AND DOUG BEREUTER FARM6 ER-TO-FARMER PROGRAM.

7 Section 501 of the Food for Peace Act (7 U.S.C. 1737)

8 is amended by striking ‘‘2007’’ each place it appears and

9 inserting ‘‘2012’’.

10 Subtitle B—Agricultural Trade Act

11 of 1978 and Related Statutes

12 SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

13 (a) REPEAL OF SUPPLIER CREDIT GUARANTEE PRO14 GRAM AND INTERMEDIATE EXPORT CREDIT GUARANTEE

15 PROGRAM.—Section 202 of the Agricultural Trade Act of

16 1978 (7 U.S.C. 5622) is amended—

17 (1) in subsection (a)—

18 (A) in paragraph (1), by striking ‘‘The

19 Commodity’’ and inserting ‘‘Subject to para20 graph (2), the Commodity’’; and

21 (B) by striking paragraphs (2) and (3) and

22 inserting the following:

23 ‘‘(2) TENURE.—Beginning with the 2012 fiscal

24 year, credit terms described in paragraph (1) may

25 not exceed a 180-day period.’’;
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1 (2) by striking subsections (b) and (c);

2 (3) by redesignating subsections (d) through (l)

3 as subsections (b) through (j), respectively; and

4 (4) by adding at the end the following:

5 ‘‘(k) ADMINISTRATION.—

6 ‘‘(1) DEFINITION OF LONG TERM.—In this sub7 section, the term ‘long term’ means a period of 10 or

8 more years.

9 ‘‘(2) GUARANTEES.—In administering the export

10 credit guarantees authorized under this section, the

11 Secretary shall—

12 ‘‘(A) maximize the export sales of agricul13 tural commodities;

14 ‘‘(B) maximize the export credit guarantees

15 that are made available and used during the

16 course of a fiscal year;

17 ‘‘(C) develop an approach to risk evaluation

18 that facilitates accurate country risk designa19 tions and timely adjustments to the designations

20 (on an ongoing basis) in response to material

21 changes in country risk conditions, with ongoing

22 opportunity for input and evaluation from the

23 private sector;
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1 ‘‘(D) adjust risk-based guarantees as nec2 essary to ensure program effectiveness and

3 United States competitiveness; and

4 ‘‘(E) work with industry to ensure that

5 risk-based fees associated with the guarantees

6 cover, but do not exceed, the operating costs and

7 losses over the long term.’’.

8 (b) CONFORMING AMENDMENTS.—The Agricultural

9 Trade Act of 1978 is amended—

10 (1) in section 202 (7 U.S.C. 5622)—

11 (A) in subsection (b)(4) (as redesignated by

12 subsection (a)(3)), by striking ‘‘, consistent with

13 the provisions of subsection (c)’’;

14 (B) in subsection (d) (as redesignated by

15 subsection (a)(3))—

16 (i) by striking ‘‘(1)’’ and all that fol17 lows through ‘‘The Commodity’’ and insert18 ing ‘‘The Commodity’’; and

19 (ii) by striking paragraph (2); and

20 (C) in subsection (g)(2) (as redesignated by

21 subsection (a)(3)), by striking ‘‘subsections (a)

22 and (b)’’ and inserting ‘‘subsection (a)’’; and

23 (2) in section 211, by striking subsection (b) and

24 inserting the following:
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1 ‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—The

2 Commodity Credit Corporation shall make available for

3 each of fiscal years 1996 through 2012 not less than

4 $5,000,000,000 in credit guarantees under section 202(a).’’.

5 SEC. 3102. MARKET ACCESS PROGRAM.

6 (a) ORGANIC COMMODITIES.—Section 203(a) of the

7 Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is

8 amended by inserting after ‘‘agricultural commodities’’ the

9 following: ‘‘(including commodities that are organically

10 produced (as defined in section 2103 of the Organic Foods

11 Production Act of 1990 (7 U.S.C. 6502)))’’.

12 (b) FUNDING.—Section 211(c)(1)(A) of the Agricul13 tural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amend14 ed by striking ‘‘, and $200,000,000 for each of fiscal years

15 2006 and 2007’’ and inserting ‘‘$200,000,000 for each of

16 fiscal years 2006 and 2007, $210,000,000 for fiscal year

17 2008, $220,000,000 for fiscal year 2009, $230,000,000 for

18 fiscal year 2010, $240,000,000 for fiscal year 2011, and

19 $200,000,000 for fiscal year 2012 and each subsequent fiscal

20 year’’.

21 SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

22 (a) IN GENERAL.—Section 301 of the Agricultural

23 Trade Act of 1978 (7 U.S.C. 5651) is repealed.

24 (b) CONFORMING AMENDMENTS.—The Agricultural

25 Trade Act of 1978 is amended—
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1 (1) in title III, by striking the title heading and

2 inserting the following:

3 ‘‘TITLE III—BARRIERS TO

4 EXPORTS’’;

5 (2) by redesignating section 302 as section 301;

6 (3) by striking section 303;

7 (4) in section 401 (7 U.S.C. 5661)—

8 (A) in subsection (a), by striking ‘‘section

9 201, 202, or 301’’ and inserting ‘‘section 201 or

10 202’’; and

11 (B) in subsection (b), by striking ‘‘sections

12 201, 202, and 301’’ and inserting ‘‘sections 201

13 and 202’’; and

14 (5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)),

15 by striking ‘‘sections 201, 202, 203, and 301’’ and in16 serting ‘‘sections 201, 202, and 203’’.

17 SEC. 3104. VOLUNTARY CERTIFICATION OF CHILD LABOR

18 STATUS OF AGRICULTURAL IMPORTS.

19 Section 414 of the Agricultural Trade Act of 1978 (7

20 U.S.C. 5674) is amended by adding at the end the following:

21 ‘‘(d) REDUCING CHILD LABOR AND FORCED LABOR.—

22 ‘‘(1) DEFINITIONS.—In this subsection:

23 ‘‘(A) CHILD LABOR.—The term ‘child labor’

24 means the worst forms of child labor as defined

25 in International Labor Convention 182, the Con-
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1 vention Concerning the Prohibition and Imme2 diate Action for the Elimination of the Worst

3 Forms of Child Labor, done at Geneva on June

4 17, 1999.

5 ‘‘(B) FORCED LABOR.—The term ‘forced

6 labor’ means all work or service—

7 ‘‘(i) that is exacted from any indi8 vidual under menace of any penalty for

9 non-performance of the work or service, and

10 for which the individual does not offer him11 self or herself voluntarily, by coercion, debt

12 bondage, involuntary servitude (as those

13 terms are defined in section 103 of the Traf14 ficking Victims Protection Act of 2000 (22

15 U.S.C. 7102)); and

16 ‘‘(ii) by 1 or more individuals who, at

17 the time of production, were being subjected

18 to a severe form of trafficking in persons (as

19 that term is defined in that section).

20 ‘‘(2) DEVELOPMENT OF STANDARD SET OF PRAC21 TICES.—

22 ‘‘(A) IN GENERAL.—The Secretary, in co23 ordination with the Secretary of Labor, shall de24 velop a standard set of practices for the produc25 tion of agricultural commodities that are im-
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1 ported, sold, or marketed in the United States in

2 order to reduce the likelihood that the agricul3 tural commodities are produced with the use of

4 forced labor or child labor.

5 ‘‘(B) REQUIREMENT.—The standard set of

6 practices shall be developed in accordance with

7 the requirements of the Trafficking Victims Pro8 tection Act of 2000 (22 U.S.C. 7101 et seq.).

9 ‘‘(3) REQUIREMENTS.—Not later than 3 years

10 after the date of enactment of this subsection, the Sec11 retary shall, with respect to the standard set of prac12 tices developed under paragraph (2), promulgate pro13 posed regulations that shall, at a minimum, establish

14 a voluntary certification program to enforce this sub15 section by—

16 ‘‘(A) requiring agricultural commodity

17 traceability and inspection at all stages of the

18 supply chain;

19 ‘‘(B) allowing for multistakeholder partici20 pation in the certification process;

21 ‘‘(C) providing for annual onsite inspection

22 by a certifying agent, who shall be certified in

23 accordance with the International Organization

24 for Standardization Guide 65, of each affected

25 worksite and handling operation;
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1 ‘‘(D) incorporating a comprehensive conflict

2 of interest policy for certifying agents, in accord3 ance with section 2116(h) of the Organic Foods

4 Production Act of 1990 (7 U.S.C. 6515(h)); and

5 ‘‘(E) providing an anonymous grievance

6 procedure that—

7 ‘‘(i) is accessible by third parties to

8 allow for the identification of new or con9 tinuing violations of the regulations; and

10 ‘‘(ii) provides protections for whistle11 blowers.

12 ‘‘(4) REPORTING REQUIREMENT.—Not later than

13 180 days after the date of enactment of this sub14 section, and annually thereafter, the Secretary shall

15 submit to the Committee on Agriculture of the House

16 of Representatives and the Committee on Agriculture,

17 Nutrition, and Forestry of the Senate, a report on the

18 development and implementation of the standard set

19 of practices under this subsection.’’.

20 SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR

21 PROGRAM.

22 Section 703(a) of the Agricultural Trade Act of 1978

23 (7 U.S.C. 5723(a)) is amended by striking ‘‘amount of

24 $34,500,000 for each of fiscal years 2002 through 2007’’ and

25 inserting ‘‘amount of—
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1 ‘‘(1) $39,500,000 for each of fiscal years 2008

2 and 2009;

3 ‘‘(2) $44,500,000 for fiscal year 2010; and

4 ‘‘(3) $34,500,000 for fiscal year 2011 and each

5 subsequent fiscal year.’’.

6 SEC. 3106. FOOD FOR PROGRESS ACT OF 1985.

7 The Food for Progress Act of 1985 (7 U.S.C. 1736o)

8 is amended—

9 (1) by striking ‘‘2007’’ each place it appears and

10 inserting ‘‘2012’’;

11 (2) in subsection (b)(5)—

12 (A) by striking subparagraphs (A), (B), and

13 (F);

14 (B) in subparagraph (D), by inserting

15 ‘‘and’’ after the semicolon;

16 (C) in subparagraph (E), by striking ‘‘;

17 and’’ and inserting a period; and

18 (D) by redesignating subparagraphs (C),

19 (D), and (E) as subparagraphs (A), (B), and

20 (C), respectively; and

21 (3) in subsection (f), by striking paragraph (3)

22 and inserting the following:

23 ‘‘(3) FUNDING LIMITATIONS.—With respect to el24 igible commodities made available under section

25 416(b) of the Agricultural Act of 1949 (42 U.S.C.
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1 1431(b)), unless authorized in advance in appropria2 tion Acts—

3 ‘‘(A) for each of fiscal years 2008 through

4 2010, no funds of the Corporation in excess of

5 $48,000,000 (exclusive of the cost of eligible com6 modities) may be used to carry out this section;

7 and

8 ‘‘(B) for fiscal year 2011 and each fiscal

9 year thereafter, no funds of the Corporation in

10 excess of $40,000,000 (exclusive of the cost of eli11 gible commodities) may be used to carry out this

12 section.’’.

13 SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR

14 EDUCATION AND CHILD NUTRITION PRO15 GRAM.

16 Section 3107 of the Farm Security and Rural Invest17 ment Act of 2002 (7 U.S.C. 1736o–1) is amended—

18 (1) in subsection (b), by inserting ‘‘in the De19 partment of Agriculture’’ after ‘‘establish a program’’;

20 (2) in subsections (c)(2)(B), (f)(1), (h), (i), and

21 (l)(1) by striking ‘‘President’’ each place it appears

22 and inserting ‘‘Secretary’’;

23 (3) in subsection (d), by striking ‘‘The President

24 shall designate 1 or more Federal agencies’’ and in25 serting ‘‘The Secretary shall’’;
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1 (4) in paragraph (f)(2), by striking ‘‘imple2 menting agency’’ and inserting ‘‘Secretary’’; and

3 (5) in subsection (l)(2), by striking ‘‘such sums’’

4 and all that follows through ‘‘2007’’ and inserting

5 ‘‘$300,000,000 for each of fiscal years 2008 through

6 2012’’.

7 Subtitle C—Miscellaneous

8 SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

9 Section 302 of the Bill Emerson Humanitarian Trust

10 Act (7 U.S.C. 1736f–1) is amended—

11 (1) in subsection (a), by striking ‘‘a trust stock’’

12 and all that follows through the end of the subsection

13 and inserting the following: ‘‘a trust of commodities,

14 for use as described in subsection (c), to consist of—

15 ‘‘(1) quantities equivalent to not more than

16 4,000,000 metric tons of commodities; or

17 ‘‘(2) any combination of funds and commodities

18 equivalent to not more than 4,000,000 metric tons of

19 commodities.’’;

20 (2) in subsection (b)—

21 (A) in paragraph (1)—

22 (i) in subparagraph (B)—

23 (I) by striking ‘‘replenish’’ each

24 place it appears and inserting ‘‘reim25 burse’’; and
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1 (II) by striking ‘‘replenished’’ and

2 inserting ‘‘reimbursed’’; and

3 (ii) by striking subparagraph (D) and

4 inserting the following:

5 ‘‘(D) funds made available—

6 ‘‘(i) under paragraph (2)(B);

7 ‘‘(ii) as a result of an exchange of any

8 commodity held in the trust for an equiva9 lent amount of funds from—

10 ‘‘(I) the Agricultural Trade Devel11 opment and Assistance Act of 1954 (7

12 U.S.C. 1691 et seq.);

13 ‘‘(II) the McGovern-Dole Inter14 national Food for Education and Child

15 Nutrition Program established under

16 section 3107 of the Farm Security and

17 Rural Investment Act of 2002 (7

18 U.S.C. 1736o–1); or

19 ‘‘(III) the market, if the Secretary

20 determines that such a sale of the com21 modity on the market will not unduly

22 disrupt domestic markets; and

23 ‘‘(iii) in the course of management of

24 the trust or to maximize the value of the
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1 trust, in accordance with subsection

2 (d)(3).’’; and

3 (B) in paragraph (2)(B)—

4 (i) in the matter preceding clause (i),

5 by striking ‘‘replenish’’ and inserting ‘‘re6 imburse’’;

7 (ii) in clause (i)—

8 (I) by striking ‘‘2007’’ each place

9 it appears and inserting ‘‘2012’’;

10 (II) by striking ‘‘(c)(2)’’ and in11 serting ‘‘(c)(1)’’; and

12 (III) by striking ‘‘and’’ at the

13 end;

14 (iii) in clause (ii), by striking the pe15 riod at the end and inserting ‘‘; or’’; and

16 (iv) by adding at the end the following:

17 ‘‘(iii) from funds accrued through the

18 management of the trust under subsection

19 (d).’’;

20 (3) in subsection (c)—

21 (A) by striking paragraphs (1) and (2) and

22 inserting the following:

23 ‘‘(1) RELEASES FOR EMERGENCY ASSISTANCE.—

24 ‘‘(A) DEFINITION OF EMERGENCY.—
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1 ‘‘(i) IN GENERAL.—In this paragraph,

2 the term ‘emergency’ means an urgent

3 situation—

4 ‘‘(I) in which there is clear evi5 dence that an event or series of events

6 described in clause (ii) has occurred—

7 ‘‘(aa) that causes human suf8 fering or imminently threatens

9 human lives or livelihoods; and

10 ‘‘(bb) for which a government

11 concerned has not the means to

12 remedy; or

13 ‘‘(II) created by a demonstrably

14 abnormal event or series of events that

15 produces dislocation in the lives of

16 residents of a country or region of a

17 country on an exceptional scale.

18 ‘‘(ii) EVENT OR SERIES OF EVENTS.—

19 An event or series of events referred to in

20 clause (i) includes 1 or more of—

21 ‘‘(I) a sudden calamity, such as

22 an earthquake, flood, locust infestation,

23 or similar unforeseen disaster;

24 ‘‘(II) a human-made emergency

25 resulting in—
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1 ‘‘(aa) a significant influx of

2 refugees;

3 ‘‘(bb) the internal displace4 ment of populations; or

5 ‘‘(cc) the suffering of other6 wise affected populations;

7 ‘‘(III) food scarcity conditions

8 caused by slow-onset events, such as

9 drought, crop failure, pest infestation,

10 and disease, that result in an erosion

11 of the ability of communities and vul12 nerable populations to meet food needs;

13 and

14 ‘‘(IV) severe food access or avail15 ability conditions resulting from sud16 den economic shocks, market failure, or

17 economic collapse, that result in an

18 erosion of the ability of communities

19 and vulnerable populations to meet

20 food needs.

21 ‘‘(B) RELEASES.—

22 ‘‘(i) IN GENERAL.—Any funds or com23 modities held in the trust may be released

24 to provide assistance under title II of the
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1 Food for Peace Act (7 U.S.C. 1721 et

2 seq.)—

3 ‘‘(I) to meet emergency needs, in4 cluding during the period immediately

5 preceding the emergency;

6 ‘‘(II) to respond to an emergency;

7 or

8 ‘‘(III) for recovery and rehabilita9 tion after an emergency.

10 ‘‘(ii) PROCEDURE.—Subject to sub11 paragraph (B), a release under clause (i)

12 shall be carried out in the same manner,

13 and pursuant to the same authority as pro14 vided in title II of that Act.

15 ‘‘(C) INSUFFICIENCY OF OTHER FUNDS.—

16 The funds and commodities held in the trust

17 shall be made immediately available on a deter18 mination by the Administrator that funds avail19 able for emergency needs under title II of that

20 Act (7 U.S.C. 1721 et seq.) for a fiscal year are

21 insufficient to meet emergency needs during the

22 fiscal year.’’; and

23 (B) by redesignating paragraphs (3)

24 through (5) as paragraphs (2) through (4), re25 spectively;
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1 (4) in subsection (d)—

2 (A) by redesignating paragraphs (1)

3 through (3) as subparagraphs (A) through (C),

4 respectively, and indenting the subparagraphs

5 appropriately;

6 (B) by striking the subsection designation

7 and heading and all that follows through ‘‘pro8 vide—’’ and inserting the following:

9 ‘‘(d) MANAGEMENT OF TRUST.—

10 ‘‘(1) IN GENERAL.—The Secretary shall provide

11 for the management of eligible commodities and funds

12 held in the trust in a manner that is consistent with

13 maximizing the value of the trust, as determined by

14 the Secretary.

15 ‘‘(2) ELIGIBLECOMMODITIES.—The Secretary

16 shall provide—’’;

17 (C) in paragraph (2) (as redesignated by

18 subparagraph (B))—

19 (i) in subparagraph (B) (as redesig20 nated by subparagraph (A)), by striking

21 ‘‘and’’ at the end;

22 (ii) in subparagraph (C) (as redesig23 nated by subparagraph (A)), by striking the

24 period at the end and inserting ‘‘; and’’;

25 and
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1 (iii) by adding at the end the fol2 lowing:

3 ‘‘(D) for the management of price risks as4 sociated with commodities held or potentially

5 held in the trust.’’; and

6 (D) by adding at the end the following:

7 ‘‘(3) FUNDS.—

8 ‘‘(A) REQUIREMENT.—The Secretary shall

9 maximize the value of funds held in the trust, to

10 the maximum extent practicable.

11 ‘‘(B) RELEASES ON EMERGENCY.—If any

12 commodity is released from the trust in the case

13 of an emergency under subsection (c), the Sec14 retary shall transfer to the trust funds of the

15 Commodity Credit Corporation in an amount

16 equal to, as determined by the Secretary, the

17 amount of storage charges that will be saved by

18 Commodity Credit Corporation due to the emer19 gency release.

20 ‘‘(C) EXCHANGES.—If any commodity held

21 in the trust is exchanged for funds under sub22 section (b)(1)(D)(ii)—

23 ‘‘(i) the funds shall be held in the trust

24 until the date on which the funds are re-
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1 leased in the case of an emergency under

2 subsection (c); and

3 ‘‘(ii) the Secretary shall transfer to the

4 trust funds of the Commodity Credit Cor5 poration in an amount equal to, as deter6 mined by the Secretary, the amount of stor7 age charges that will be saved by Com8 modity Credit Corporation due to the ex9 change.

10 ‘‘(D) INVESTMENT.—The Secretary—

11 ‘‘(i) may invest funds held in the trust

12 in any short-term obligation of the United

13 States or any other low-risk short-term in14 strument or security insured by the Federal

15 Government in which a regulated insurance

16 company may invest under the laws of the

17 District of Columbia; and

18 ‘‘(ii) shall not invest any funds held in

19 the trust in real estate.’’;

20 (5) in subsection (f)(2)(A), by striking ‘‘replen21 ish’’ and inserting ‘‘reimburse’’; and

22 (6) in subsection (h)—

23 (A) in paragraph (1), by striking ‘‘replen24 ish’’ and inserting ‘‘reimburse’’; and
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1 (B) in each of paragraphs (1) and (2), by

2 striking ‘‘2007’’ each place it appears and in3 serting ‘‘2012’’.

4 SEC. 3202. EMERGING MARKETS AND FACILITY GUARANTEE

5 LOAN PROGRAM.

6 Section 1542 of the Food, Agriculture, Conservation,

7 and Trade Act of 1990 (7 U.S.C. 5622 note; Public Law

8 101–624) is amended—

9 (1) in subsection (a), by striking ‘‘2007’’ and in10 serting ‘‘2012’’;

11 (2) in subsection (b)—

12 (A) in the first sentence, by redesignating

13 paragraphs (1) and (2) as subparagraphs (A)

14 and (B), respectively, and indenting appro15 priately;

16 (B) by striking ‘‘A portion’’ and inserting

17 the following:

18 ‘‘(1) IN GENERAL.—A portion’’;

19 (C) in the second sentence, by striking ‘‘The

20 Commodity Credit Corporation’’ and inserting

21 the following:

22 ‘‘(2) PRIORITY.—The Commodity Credit Cor23 poration’’; and

24 (D) by adding at the end the following:
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1 ‘‘(3) CONSTRUCTION WAIVER.—The Secretary

2 may waive any applicable requirements relating to

3 the use of United States goods in the construction of

4 a proposed facility, if the Secretary determines that—

5 ‘‘(A) goods from the United States are not

6 available; or

7 ‘‘(B) the use of goods from the United States

8 is not practicable.

9 ‘‘(4) TERM OF GUARANTEE.—A facility payment

10 guarantee under this subsection shall be for a term

11 that is not more than the lesser of—

12 ‘‘(A) the term of the depreciation schedule of

13 the facility assisted; or

14 ‘‘(B) 20 years.’’; and

15 (3) in subsection (d)(1)(A)(i) by striking ‘‘2007’’

16 and inserting ‘‘2012’’.

17 SEC. 3203. BIOTECHNOLOGY AND AGRICULTURAL TRADE

18 PROGRAM.

19 Section 1543A(d) of the Food, Agriculture, Conserva20 tion, and Trade Act of 1990 (7 U.S.C. 5679(d)) is amended

21 by striking ‘‘2007’’ and inserting ‘‘2012’’.

22 SEC. 3204. TECHNICAL ASSISTANCE FOR THE RESOLUTION

23 OF TRADE DISPUTES.

24 (a) IN GENERAL.—The Secretary may provide moni25 toring, analytic support, and other technical assistance to
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1 limited resource persons that are involved in trading agri2 cultural commodities, as determined by the Secretary, to

3 reduce trade barriers to the persons.

4 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

5 authorized to be appropriated such sums as are necessary

6 to carry out this section.

7 SEC. 3205. IMPORTATION OF LIVE DOGS.

8 (a) IN GENERAL.—The Animal Welfare Act is amend9 ed by adding after section 17 (7 U.S.C. 2147) the following:

10 ‘‘SEC. 18. IMPORTATION OF LIVE DOGS.

11 ‘‘(a) DEFINITIONS.—In this section:

12 ‘‘(1) IMPORTER.—The term ‘importer’ means

13 any person who, for purposes of resale, transports

14 into the United States puppies from a foreign coun15 try.

16 ‘‘(2) RESALE.—The term ‘resale’ includes any

17 transfer of ownership or control of an imported dog

18 of less than 6 months of age to another person, for

19 more than de minimis consideration.

20 ‘‘(b) REQUIREMENTS.—

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), no person shall import a dog into the

23 United States for purposes of resale unless, as deter24 mined by the Secretary, the dog—

25 ‘‘(A) is in good health;
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1 ‘‘(B) has received all necessary vaccinations;

2 and

3 ‘‘(C) is at least 6 months of age, if imported

4 for resale.

5 ‘‘(2) EXCEPTION.—The Secretary, by regulation,

6 shall provide an exception to any requirement under

7 paragraph (1) in any case in which a dog is im8 ported for—

9 ‘‘(A) research purposes; or

10 ‘‘(B) veterinary treatment.

11 ‘‘(c) IMPLEMENTATION AND REGULATIONS.—The Sec12 retary, the Secretary of Health and Human Services, the

13 Secretary of Commerce, and the Secretary of Homeland Se14 curity shall promulgate such regulations as the Secretaries

15 determine to be necessary to implement and enforce this sec16 tion.

17 ‘‘(d) ENFORCEMENT.—An importer that fails to com18 ply with this section shall—

19 ‘‘(1) be subject to penalties under section 19; and

20 ‘‘(2) provide for the care (including appropriate

21 veterinary care), forfeiture, and adoption of each ap22 plicable dog, at the expense of the importer.’’.

23 (b) EFFECTIVE DATE.—The amendment made by sub24 section (a) takes effect on the date of enactment of this Act.
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1 SEC. 3206. REPORT ON THE IMPORTATION OF HIGH PRO2 TEIN FOOD INGREDIENTS.

3 (a) IN GENERAL.—Not later than 180 days after the

4 date of enactment of this Act, the Secretary and the Sec5 retary of Health and Human Services (acting through the

6 Commissioner of Food and Drugs), in consultation with the

7 heads of other appropriate Federal agencies, shall jointly

8 submit to Congress a report on imports of high protein food

9 ingredients (including gluten, casein, and milk protein con10 centrate) into the United States during the 5-year period

11 preceding the date of enactment of this Act.

12 (b) COMPONENTS.—The report required under sub13 section (a) shall include—

14 (1) a description of—

15 (A) the quantity of each high protein food

16 ingredient imported into the United States; and

17 (B) the source of the high protein food in18 gredients being imported;

19 (2) an accounting of the percentage of imports in

20 each category and subcategory of high protein food in21 gredients that were inspected, including whether the

22 inspections were—

23 (A) basic or visual inspections; or

24 (B) more intensive inspections or laboratory

25 analyses;

26 (3) an evaluation of—
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1 (A) whether the laboratory tests conducted

2 on high protein food ingredients were able to de3 tect adulteration with other high nitrogen com4 pounds, such as melamine; and

5 (B) if some of the laboratory tests were sen6 sitive and others were not sensitive, the number

7 and results for each sensitivity; and

8 (4) a survey of whether high protein food ingre9 dients were imported for food uses or non-food uses,

10 including an analysis of—

11 (A) whether the food uses were animal or

12 human food uses; and

13 (B) whether any non-food or animal feed

14 products could have entered the human food sup15 ply, including an analysis of any safeguards to

16 prevent such products from entering the human

17 food supply.

18 (c) AVAILABILITY.—As soon as practicable after the

19 completion of the report under subsection (a), the Secretary

20 and the Secretary of Health and Human Services shall

21 make the report available to the public.

22 SEC. 3207. QUALITY REQUIREMENTS FOR CLEMENTINES.

23 Section 8e(a) of the Agricultural Adjustment Act (7

24 U.S.C. 608e–1(a)), reenacted with amendments by the Agri25 cultural Marketing Agreement Act of 1937, is amended in
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1 the matter preceding the first proviso in the first sentence

2 by inserting ‘‘clementines,’’ after ‘‘nectarines,’’.

3 TITLE IV—NUTRITION

4 PROGRAMS

5 Subtitle A—Food and Nutrition

6 Program

7 PART I—RENAMING OF FOOD STAMP PROGRAM

8 SEC. 4001. RENAMING OF FOOD STAMP PROGRAM.

9 (a) SHORT TITLE.—The first section of the Food

10 Stamp Act of 1977 (7 U.S.C. 2011 note; Public Law 88–

11 525) is amended by striking ‘‘Food Stamp Act of 1977’’

12 and inserting ‘‘Food and Nutrition Act of 2007’’.

13 (b) PROGRAM.—The Food and Nutrition Act of 2007

14 (7 U.S.C. 2011 et seq.) (as amended by subsection (a)) is

15 amended by striking ‘‘food stamp program’’ each place it

16 appears and inserting ‘‘food and nutrition program’’.

17 PART II—IMPROVING PROGRAM BENEFITS

18 SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS

19 FROM INCOME.

20 Section 5(d) of the Food and Nutrition Act of 2007

21 (7 U.S.C. 2014(d)) is amended—

22 (1) by striking ‘‘(d) Household’’ and inserting

23 ‘‘(d) EXCLUSIONS FROM INCOME.—Household’’;

24 (2) by striking ‘‘only (1) any’’ and inserting

25 ‘‘only—
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1 ‘‘(1) any’’;

2 (3) by indenting each of paragraphs (2) through

3 (18) so as to align with the margin of paragraph (1)

4 (as amended by paragraph (1));

5 (4) by striking the comma at the end of each of

6 paragraphs (1) through (16) and inserting a semi7 colon;

8 (5) in paragraph (3)—

9 (A) by striking ‘‘like (A) awarded’’ and in10 serting ‘‘like—

11 ‘‘(A) awarded’’;

12 (B) by striking ‘‘thereof, (B) to’’ and insert13 ing ‘‘thereof;

14 ‘‘(B) to’’; and

15 (C) by striking ‘‘program, and (C) to’’ and

16 inserting ‘‘program; and

17 ‘‘(C) to’’;

18 (6) in paragraph (11), by striking ‘‘)), or (B) a’’

19 and inserting ‘‘)); or

20 ‘‘(B) a’’;

21 (7) in paragraph (17), by striking ‘‘, and’’ at the

22 end and inserting a semicolon;

23 (8) in paragraph (18), by striking the period at

24 the end and inserting ‘‘; and’’; and

25 (9) by adding at the end the following:
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1 ‘‘(19) any additional payment under chapter 5

2 of title 37, United States Code, or otherwise des3 ignated by the Secretary to be appropriate for exclu4 sion under this paragraph, that is received by or from

5 a member of the United States Armed Forces deployed

6 to a designated combat zone, if the additional pay—

7 ‘‘(A) is the result of deployment to or service

8 in a combat zone; and

9 ‘‘(B) was not received immediately prior to

10 serving in a combat zone.’’.

11 SEC. 4102. STRENGTHENING THE FOOD PURCHASING

12 POWER OF LOW-INCOME AMERICANS.

13 Section 5(e)(1) of the Food and Nutrition Act of 2007

14 (7 U.S.C. 2014(e)(1)) is amended—

15 (1) in subparagraph (A)(ii), by striking ‘‘not less

16 than $134’’ and all that follows through the end of the

17 clause and inserting the following: ‘‘not less than—

18 ‘‘(I) for fiscal year 2008, $140,

19 $239, $197, and $123, respectively;

20 and

21 ‘‘(II) for fiscal year 2009 and

22 each fiscal year thereafter, an amount

23 that is equal to the amount from the

24 previous fiscal year adjusted to the

25 nearest lower dollar increment to re-
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1 flect changes for the 12-month period

2 ending on the preceding June 30 in the

3 Consumer Price Index for All Urban

4 Consumers published by the Bureau of

5 Labor Statistics of the Department of

6 Labor, for items other than food.’’;

7 (2) in subparagraph (B)(ii), by striking ‘‘not

8 less than $269’’ and all that follows through the end

9 of the clause and inserting the following: ‘‘not less

10 than—

11 ‘‘(I) for fiscal year 2008, $281;

12 and

13 ‘‘(II) for fiscal year 2009 and

14 each fiscal year thereafter, an amount

15 that is equal to the amount from the

16 previous fiscal year adjusted to the

17 nearest lower dollar increment to re18 flect changes for the 12-month period

19 ending on the preceding June 30 in the

20 Consumer Price Index for All Urban

21 Consumers published by the Bureau of

22 Labor Statistics of the Department of

23 Labor, for items other than food.’’; and

24 (3) by adding at the end the following:
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1 ‘‘(C) REQUIREMENT.—Each adjustment

2 under subparagraphs (A)(ii)(II) and (B)(ii)(II)

3 shall be based on the unrounded amount for the

4 prior 12-month period.’’.

5 SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD

6 CARE EXPENSES.

7 Section 5(e)(3)(A) of the Food and Nutrition Act of

8 2007 (7 U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘,

9 the maximum allowable level of which shall be $200 per

10 month for each dependent child under 2 years of age and

11 $175 per month for each other dependent,’’.

12 SEC. 4104. ENCOURAGING RETIREMENT AND EDUCATION

13 SAVINGS AMONG FOOD STAMP RECIPIENTS.

14 (a) ALLOWABLE FINANCIAL RESOURCES.—Section

15 5(g) of the Food and Nutrition Act of 2007 (7 U.S.C.

16 2014(g)) is amended—

17 (1) by striking ‘‘(g)(1) The Secretary’’ and in18 serting the following:

19 ‘‘(g) ALLOWABLE FINANCIAL RESOURCES.—

20 ‘‘(1) TOTAL AMOUNT.—

21 ‘‘(A) IN GENERAL.—The Secretary’’;

22 (2) in subparagraph (A) (as designated by para23 graph (1))—
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1 (A) by striking ‘‘$2,000’’ and inserting

2 ‘‘$3,500 (as adjusted in accordance with sub3 paragraph (B))’’; and

4 (B) by striking ‘‘$3,000’’ and inserting

5 ‘‘$4,500 (as adjusted in accordance with sub6 paragraph (B))’’; and

7 (3) by adding at the end the following:

8 ‘‘(B) ADJUSTMENT FOR INFLATION.—

9 ‘‘(i) IN GENERAL.—Beginning on Octo10 ber 1, 2008, and each October 1 thereafter,

11 the amounts in subparagraph (A) shall be

12 adjusted and rounded down to the nearest

13 $250 to reflect changes for the 12-month pe14 riod ending the preceding June in the Con15 sumer Price Index for All Urban Consumers

16 published by the Bureau of Labor Statistics

17 of the Department of Labor.

18 ‘‘(ii) REQUIREMENT.—Each adjust19 ment under clause (i) shall be based on the

20 unrounded amount for the prior 12-month

21 period.’’.

22 (b) EXCLUSION OF RETIREMENT ACCOUNTS FROM AL23 LOWABLE FINANCIAL RESOURCES.—

24 (1) IN GENERAL.—Section 5(g)(2)(B)(v) of the

25 Food and Nutrition Act of 2007 (7 U.S.C.
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1 2014(g)(2)(B)(v)) is amended by striking ‘‘or retire2 ment account (including an individual account)’’ and

3 inserting ‘‘account’’.

4 (2) MANDATORY AND DISCRETIONARY EXCLU5 SIONS.—Section 5(g) of the Food and Nutrition Act

6 of 2007 (7 U.S.C. 2014(g)) is amended by adding at

7 the end the following:

8 ‘‘(7) EXCLUSION OF RETIREMENT ACCOUNTS

9 FROM ALLOWABLE FINANCIAL RESOURCES.—

10 ‘‘(A) MANDATORY EXCLUSIONS.—The Sec11 retary shall exclude from financial resources

12 under this subsection the value of—

13 ‘‘(i) any funds in a plan, contract, or

14 account, described in sections 401(a),

15 403(a), 403(b), 408, 408A, 457(b), and

16 501(c)(18) of the Internal Revenue Code of

17 1986 and the value of funds in a Federal

18 Thrift Savings Plan account as provided in

19 section 8439 of title 5, United States Code;

20 and

21 ‘‘(ii) any retirement program or ac22 count included in any successor or similar

23 provision that may be enacted and deter24 mined to be exempt from tax under the In25 ternal Revenue Code of 1986.
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1 ‘‘(B) DISCRETIONARY EXCLUSIONS.—The

2 Secretary may exclude from financial resources

3 under this subsection the value of any other re4 tirement plans, contracts, or accounts (as deter5 mined by the Secretary).’’.

6 (c) EXCLUSION OF EDUCATION ACCOUNTS FROM AL7 LOWABLE FINANCIAL RESOURCES.—Section 5(g) of the

8 Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) (as

9 amended by subsection (b)) is amended by adding at the

10 end the following:

11 ‘‘(8) EXCLUSION OF EDUCATION ACCOUNTS FROM

12 ALLOWABLE FINANCIAL RESOURCES.—

13 ‘‘(A) MANDATORY EXCLUSIONS.—The Sec14 retary shall exclude from financial resources

15 under this subsection the value of any funds in

16 a qualified tuition program described in section

17 529 of the Internal Revenue Code of 1986 or in

18 a Coverdell education savings account under sec19 tion 530 of that Code.

20 ‘‘(B) DISCRETIONARY EXCLUSIONS.—The

21 Secretary may exclude from financial resources

22 under this subsection the value of any other edu23 cation programs, contracts, or accounts (as de24 termined by the Secretary).’’.
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1 SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

2 Section 6(c)(1)(A) of the Food and Nutrition Act of

3 2007 (7 U.S.C. 2015(c)(1)(A)) is amended—

4 (1) by striking ‘‘reporting by’’ and inserting ‘‘re5 porting’’;

6 (2) in clause (i), by inserting ‘‘for periods short7 er than 4 months by’’ before ‘‘migrant’’;

8 (3) in clause (ii), by inserting ‘‘for periods short9 er than 4 months by’’ before ‘‘households’’; and

10 (4) in clause (iii), by inserting ‘‘for periods

11 shorter than 1 year by’’ before ‘‘households’’.

12 SEC. 4106. ACCRUAL OF BENEFITS.

13 Section 7(i) of the Food and Nutrition Act of 2007

14 (7 U.S.C. 2016(i)) is amended by adding at the end the

15 following:

16 ‘‘(12) RECOVERING ELECTRONIC BENEFITS.—

17 ‘‘(A) IN GENERAL.—A State agency shall es18 tablish a procedure for recovering electronic ben19 efits from the account of a household due to inac20 tivity.

21 ‘‘(B) BENEFIT STORAGE.—A State agency

22 may store recovered electronic benefits off-line in

23 accordance with subparagraph (D), if the house24 hold has not accessed the account after 6 months.
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1 ‘‘(C) BENEFIT EXPUNGING.—A State agency

2 shall expunge benefits that have not been accessed

3 by a household after a period of 12 months.

4 ‘‘(D) NOTICE.—A State agency shall—

5 ‘‘(i) send notice to a household the ben6 efits of which are stored under subpara7 graph (B); and

8 ‘‘(ii) not later than 48 hours after re9 quest by the household, make the stored ben10 efits available to the household.’’.

11 SEC. 4107. ELIGIBILITY FOR UNEMPLOYED ADULTS.

12 (a) IN GENERAL.—Section 6(o) of the Food and Nutri13 tion Act of 2007 (7 U.S.C. 2015(o)) is amended—

14 (1) in paragraph (2), in the matter preceding

15 subparagraph (A) by striking ‘‘3 months’’ and insert16 ing ‘‘6 months’’; and

17 (2) in paragraph (5), by striking subparagraph

18 (C).

19 (b) EFFECTIVE DATE.—The amendments made by sub20 section (a) take effect on October 1, 2008.

21 SEC. 4108. TRANSITIONAL BENEFITS OPTION.

22 Section 11(s)(1) of the Food and Nutrition Act of 2007

23 (7 U.S.C. 2020(s)(1)) is amended—

24 (1) by striking ‘‘benefits to a household’’; and in25 serting ‘‘benefits—
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1 ‘‘(A) to a household’’;

2 (2) by striking the period at the end and insert3 ing ‘‘; or’’; and

4 (3) by adding at the end the following:

5 ‘‘(B) at the option of the State, to a house6 hold with children that ceases to receive cash as7 sistance under a State-funded public assistance

8 program.’’.

9 SEC. 4109. MINIMUM BENEFIT.

10 (a) IN GENERAL.—Section 8(a) of the Food and Nutri11 tion Act of 2007 (7 U.S.C. 2017(a)) is amended by striking

12 ‘‘$10 per month’’ and inserting ‘‘10 percent of the thrifty

13 food plan for a household containing 1 member’’.

14 (b) EFFECTIVE DATE.—The amendment made by sub15 section (a) takes effect on October 1, 2008.

16 SEC. 4110. AVAILABILITY OF COMMODITIES FOR THE EMER17 GENCY FOOD ASSISTANCE PROGRAM.

18 (a) IN GENERAL.—Section 27(a) of the Food and Nu19 trition Act of 2007 (7 U.S.C. 2036(a)) is amended—

20 (1) by striking ‘‘(a) PURCHASEOF COMMOD21 ITIES’’ and all that follows through ‘‘through 2007’’

22 and inserting the following:

23 ‘‘(a) PURCHASEOF COMMODITIES.—

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2), for

25 fiscal year 2008 and each fiscal year thereafter’’; and
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1 (2) by adding at the end the following:

2 ‘‘(2) AMOUNTS.—In addition to the amounts

3 made available under paragraph (1), for fiscal year

4 2008 and each fiscal year thereafter, from amounts

5 made available to carry out this Act, the Secretary

6 shall use to carry out this subsection $110,000,000.’’.

7 (b) EFFECTIVE DATE.—The amendments made by sub8 section (a) take effect on the date of enactment of this Act.

9 PART III—IMPROVING PROGRAM OPERATIONS

10 SEC. 4201. TECHNICAL CLARIFICATION REGARDING ELIGI11 BILITY.

12 Section 6(k) of the Food and Nutrition Act of 2007

13 (7 U.S.C. 2015(k)) is amended—

14 (1) by redesignating paragraphs (1) and (2) as

15 subparagraphs (A) and (B), respectively, and indent16 ing appropriately;

17 (2) by striking ‘‘No member’’ and inserting the

18 following:

19 ‘‘(1) IN GENERAL.—No member’’; and

20 (3) by adding at the end the following:

21 ‘‘(2) PROCEDURES.—The Secretary shall issue

22 consistent procedures—

23 ‘‘(A) to define the terms ‘fleeing’ and ‘ac24 tively seeking’ for purposes of this subsection;

25 and
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1 ‘‘(B) to ensure that State agencies use con2 sistent procedures that disqualify individuals

3 whom law enforcement authorities are actively

4 seeking for the purpose of holding criminal pro5 ceedings against the individual.’’.

6 SEC. 4202. ISSUANCE AND USE OF PROGRAM BENEFITS.

7 (a) IN GENERAL.—Section 7 of the Food and Nutri8 tion Act of 2007 (7 U.S.C. 2016) is amended—

9 (1) by striking the section designation and head10 ing and all that follows through ‘‘subsection (j)) shall

11 be’’ and inserting the following:

12 ‘‘SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.

13 ‘‘(a) IN GENERAL.—Except as provided in subsection

14 (i), EBT cards shall be’’;

15 (2) in subsection (b)—

16 (A) by striking ‘‘(b) Coupons’’ and inserting

17 the following:

18 ‘‘(b) USE.—

19 ‘‘(1) IN GENERAL.—Benefits’’;

20 (B) in paragraph (1) (as designated by sub21 paragraph (A)), by striking the second proviso;

22 and

23 (C) by adding at the end the following:

24 ‘‘(2) STUDY.—As soon as practicable after the

25 date of enactment of this paragraph, the Comptroller
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1 General of the United States shall conduct a study of

2 the effects of the Secretary issuing a rule requiring

3 that benefits shall only be used to purchase food that

4 is included in the most recent applicable thrifty food

5 plan market basket.’’;

6 (3) in subsection (c)—

7 (A) by striking ‘‘(c) Coupons’’ and inserting

8 the following:

9 ‘‘(c) DESIGN.—

10 ‘‘(1) IN GENERAL.—EBT cards’’;

11 (B) in the first sentence, by striking ‘‘and

12 define their denomination’’; and

13 (C) by striking the second sentence and in14 serting the following:

15 ‘‘(2) PROHIBITION.—The name of any public of16 ficial shall not appear on any EBT card.’’;

17 (4) by striking subsection (d);

18 (5) in subsection (e)—

19 (A) by striking ‘‘coupons’’ each place it ap20 pears and inserting ‘‘benefits’’; and

21 (B) by striking ‘‘coupon issuers’’ each place

22 it appears and inserting ‘‘benefit issuers’’;

23 (6) in subsection (f)—

24 (A) by striking ‘‘coupons’’ each place it ap25 pears and inserting ‘‘benefits’’;
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1 (B) by striking ‘‘coupon issuer’’ and insert2 ing ‘‘benefit issuers’’;

3 (C) by striking ‘‘section 11(e)(20)’’ and in4 serting ‘‘section 11(e)(19).’’; and

5 (D) by striking ‘‘and allotments’’;

6 (7) by striking subsection (g) and inserting the

7 following:

8 ‘‘(g) ALTERNATIVE BENEFIT DELIVERY.—

9 ‘‘(1) IN GENERAL.—If the Secretary determines,

10 in consultation with the Inspector General of the De11 partment of Agriculture, that it would improve the

12 integrity of the food and nutrition program, the Sec13 retary shall require a State agency to issue or deliver

14 benefits using alternative methods.

15 ‘‘(2) NO IMPOSITION OF COSTS.—The cost of doc16 uments or systems that may be required by this sub17 section may not be imposed upon a retail food store

18 participating in the food and nutrition program.

19 ‘‘(3) DEVALUATION AND TERMINATION OF

20 ISSUANCEOF PAPER COUPONS.—

21 ‘‘(A) COUPON ISSUANCE.—Effective on the

22 date of enactment of the Food and Energy Secu23 rity Act of 2007, no State shall issue any cou24 pon, stamp, certificate, or authorization card to
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1 a household that receives food and nutrition ben2 efits under this Act.

3 ‘‘(B) EBT CARDS.—Effective beginning on

4 the date that is 1 year after the date of enact5 ment of the Food and Energy Security Act of

6 2007, only an EBT card issued under subsection

7 (i) shall be eligible for exchange at any retail

8 food store.

9 ‘‘(C) DE-OBLIGATION OF COUPONS.—Cou10 pons not redeemed during the 1-year period be11 ginning on the date of enactment of the Food

12 and Energy Security Act of 2007 shall—

13 ‘‘(i) no longer be an obligation of the

14 Federal Government; and

15 ‘‘(ii) not be redeemable.’’;

16 (8) in subsection (h)(1), by striking ‘‘coupons’’

17 and inserting ‘‘benefits’’;

18 (9) in subsection (i), by adding at the end the

19 following:

20 ‘‘(12) INTERCHANGE FEES.—No interchange fees

21 shall apply to electronic benefit transfer transactions

22 under this subsection.’’;

23 (10) in subsection (j)—

24 (A) in paragraph (2)(A)(ii), by striking

25 ‘‘printing, shipping, and redeeming coupons’’
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1 and inserting ‘‘issuing and redeeming benefits’’;

2 and

3 (B) in paragraph (5), by striking ‘‘coupon’’

4 and inserting ‘‘benefit’’;

5 (11) in subsection (k)—

6 (A) by striking ‘‘coupons in the form of’’

7 each place it appears and inserting ‘‘program

8 benefits in the form of’’;

9 (B) by striking ‘‘a coupon issued in the

10 form of’’ each place it appears and inserting

11 ‘‘program benefits in the form of’’; and

12 (C) in subparagraph (A), by striking ‘‘sub13 section (i)(11)(A)’’ and inserting ‘‘subsection

14 (h)(11)(A)’’; and

15 (12) by redesignating subsections (e) through (k)

16 as subsections (d) through (j), respectively.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 3 of the Food and Nutrition Act of

19 2007 (7 U.S.C. 2012) is amended—

20 (A) in subsection (a), by striking ‘‘coupons’’

21 and inserting ‘‘benefits’’;

22 (B) by striking subsection (b) and inserting

23 the following:
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1 ‘‘(b) BENEFIT.—The term ‘benefit’ means the value of

2 food and nutrition assistance provided to a household by

3 means of—

4 ‘‘(1) an electronic benefit transfer under section

5 7(i); or

6 ‘‘(2) other means of providing assistance, as de7 termined by the Secretary.’’;

8 (C) in subsection (c), in the first sentence,

9 by striking ‘‘authorization cards’’ and inserting

10 ‘‘benefits’’;

11 (D) in subsection (d), by striking ‘‘or access

12 device’’ and all that follows through the end of

13 the subsection and inserting a period;

14 (E) in subsection (e)—

15 (i) by striking ‘‘(e) ‘Coupon issuer’

16 means’’ and inserting the following:

17 ‘‘(e) BENEFIT ISSUER.—The term ‘benefit issuer’

18 means’’; and

19 (ii) by striking ‘‘coupons’’ and insert20 ing ‘‘benefits’’;

21 (F) in subsection (g)(7), by striking ‘‘sub22 section (r)’’ and inserting ‘‘subsection (j)’’;

23 (G) in subsection (i)(5)—
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1 (i) in subparagraph (B), by striking

2 ‘‘subsection (r)’’ and inserting ‘‘subsection

3 (j)’’; and

4 (ii) in subparagraph (D), by striking

5 ‘‘coupons’’ and inserting ‘‘benefits’’;

6 (H) in subsection (j), by striking ‘‘(as that

7 term is defined in subsection (p))’’;

8 (I) in subsection (k)—

9 (i) in paragraph (1)(A), by striking

10 ‘‘subsection (u)(1)’’ and inserting ‘‘sub11 section (r)(1)’’;

12 (ii) in paragraph (2), by striking

13 ‘‘subsections (g)(3), (4), (5), (7), (8), and

14 (9) of this section’’ and inserting ‘‘para15 graphs (3), (4), (5), (7), (8), and (9) of sub16 section (k)’’; and

17 (iii) in paragraph (3), by striking

18 ‘‘subsection (g)(6) of this section’’ and in19 serting ‘‘subsection (k)(6)’’;

20 (J) in subsection (t), by inserting ‘‘, includ21 ing point of sale devices,’’ after ‘‘other means of

22 access’’;

23 (K) in subsection (u), by striking ‘‘(as de24 fined in subsection (g))’’; and

25 (L) by adding at the end the following:
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1 ‘‘(v) EBT CARD.—The term ‘EBT card’ means an

2 electronic benefit transfer card issued under section 7(i).’’;

3 and

4 (M) by redesignating subsections (a)

5 through (v) as subsections (b), (d), (f), (g), (e),

6 (h), (k), (l), (n), (o), (p), (q), (s), (t), (u), (v), (c),

7 (j), (m), (a), (r), and (i), respectively, and mov8 ing so as to appear in alphabetical order.

9 (2) Section 4(a) of the Food and Nutrition Act

10 of 2007 (7 U.S.C. 2013(a)) is amended—

11 (A) by striking ‘‘coupons’’ each place it ap12 pears and inserting ‘‘benefits’’; and

13 (B) by striking ‘‘Coupons issued’’ and in14 serting ‘‘benefits issued’’.

15 (3) Section 5 of the Food and Nutrition Act of

16 2007 (7 U.S.C. 2014) is amended—

17 (A) in subsection (a), by striking ‘‘section

18 3(i)(4)’’ and inserting ‘‘section 3(n)(4)’’;

19 (B) in subsection (h)(3)(B), in the second

20 sentence, by striking ‘‘section 7(i)’’ and inserting

21 ‘‘section 7(h)’’; and

22 (C) in subsection (i)(2)(E), by striking ‘‘, as

23 defined in section 3(i) of this Act,’’.

24 (4) Section 6 of the Food and Nutrition Act of

25 2007 (7 U.S.C. 2015) is amended—
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1 (A) in subsection (b)(1)—

2 (i) in subparagraph (B), by striking

3 ‘‘coupons or authorization cards’’ and in4 serting ‘‘program benefits’’; and

5 (ii) by striking ‘‘coupons’’ each place it

6 appears and inserting ‘‘benefits’’; and

7 (B) in subsection (d)(4)(L), by striking

8 ‘‘section 11(e)(22)’’ and inserting ‘‘section

9 11(e)(19)’’.

10 (5) Section 7(f) of the Food and Nutrition Act

11 of 2007 (7 U.S.C. 2016(f)) is amended by striking

12 ‘‘including any losses’’ and all that follows through

13 ‘‘section 11(e)(20),’’.

14 (6) Section 8 of the Food and Nutrition Act of

15 2007 (7 U.S.C. 2017) is amended—

16 (A) in subsection (b), by striking ‘‘, whether

17 through coupons, access devices, or otherwise’’;

18 and

19 (B) in subsections (e)(1) and (f), by striking

20 ‘‘section 3(i)(5)’’ each place it appears and in21 serting ‘‘section 3(n)(5)’’.

22 (7) Section 9 of the Food and Nutrition Act of

23 2007 (7 U.S.C. 2018) is amended—

24 (A) by striking ‘‘coupons’’ each place it ap25 pears and inserting ‘‘benefits’’;
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1 (B) in subsection (a)—

2 (i) in paragraph (1), by striking ‘‘cou3 pon business’’ and inserting ‘‘benefit trans4 actions’’; and

5 (ii) by striking paragraph (3) and in6 serting the following:

7 ‘‘(3) AUTHORIZATION PERIODS.—The Secretary

8 shall establish specific time periods during which au9 thorization to accept and redeem benefits shall be

10 valid under the food and nutrition program.’’; and

11 (C) in subsection (g), by striking ‘‘section

12 3(g)(9)’’ and inserting ‘‘section 3(k)(9)’’.

13 (8) Section 10 of the Food and Nutrition Act of

14 2007 (7 U.S.C. 2019) is amended—

15 (A) by striking the section designation and

16 heading and all that follows through ‘‘Regula17 tions’’ and inserting the following:

18 ‘‘SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

19 ‘‘Regulations’’;

20 (B) by striking ‘‘section 3(k)(4) of this Act’’

21 and inserting ‘‘section 3(p)(4)’’;

22 (C) by striking ‘‘section 7(i)’’ and inserting

23 ‘‘section 7(h)’’; and

24 (D) by striking ‘‘coupons’’ each place it ap25 pears and inserting ‘‘benefits’’.
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1 (9) Section 11 of the Food and Nutrition Act of

2 2007 (7 U.S.C. 2020) is amended—

3 (A) in subsection (d)—

4 (i) by striking ‘‘section 3(n)(1) of this

5 Act’’ each place it appears and inserting

6 ‘‘section 3(t)(1)’’; and

7 (ii) by striking ‘‘section 3(n)(2) of this

8 Act’’ each place it appears and inserting

9 ‘‘section 3(t)(2)’’;

10 (B) in subsection (e)—

11 (i) in paragraph (8)(E), by striking

12 ‘‘paragraph (16) or (20)(B)’’ and inserting

13 ‘‘paragraph (15) or (18)(B)’’;

14 (ii) by striking paragraphs (15) and

15 (19);

16 (iii) by redesignating paragraphs (16)

17 through (18) and (20) through (25) as

18 paragraphs (15) through (17) and (18)

19 through (23), respectively; and

20 (iv) in paragraph (17) (as so redesig21 nated), by striking ‘‘(described in section

22 3(n)(1) of this Act)’’ and inserting ‘‘de23 scribed in section 3(t)(1)’’;

24 (C) in subsection (h), by striking ‘‘coupon

25 or coupons’’ and inserting ‘‘benefits’’;
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1 (D) by striking ‘‘coupon’’ each place it ap2 pears and inserting ‘‘benefit’’;

3 (E) by striking ‘‘coupons’’ each place it ap4 pears and inserting ‘‘benefits’’;

5 (F) in subsection (q), by striking ‘‘section

6 11(e)(20)(B)’’ and inserting ‘‘subsection

7 (e)(18)(B)’’

8 (10) Section 13 of the Food and Nutrition Act

9 of 2007 (7 U.S.C. 2022) is amended by striking ‘‘cou10 pons’’ each place it appears and inserting ‘‘benefits’’.

11 (11) Section 15 of the Food and Nutrition Act

12 of 2007 (7 U.S.C. 2024) is amended—

13 (A) in subsection (a), by striking ‘‘coupons’’

14 and inserting ‘‘benefits’’;

15 (B) in subsection (b)(1)—

16 (i) by striking ‘‘coupons, authorization

17 cards, or access devices’’ each place it ap18 pears and inserting ‘‘benefits’’;

19 (ii) by striking ‘‘coupons or authoriza20 tion cards’’ and inserting ‘‘benefits’’; and

21 (iii) by striking ‘‘access device’’ each

22 place it appears and inserting ‘‘benefit’’;

23 (C) in subsection (c), by striking ‘‘coupons’’

24 each place it appears and inserting ‘‘benefits’’;
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1 (D) in subsection (d), by striking ‘‘Cou2 pons’’ and inserting ‘‘Benefits’’;

3 (E) by striking subsections (e) and (f);

4 (F) by redesignating subsections (g) and (h)

5 as subsections (e) and (f), respectively; and

6 (G) in subsection (e) (as so redesignated),

7 by striking ‘‘coupon, authorization cards or ac8 cess devices’’ and inserting ‘‘benefits’’.

9 (12) Section 16(a) of the Food and Nutrition Act

10 of 2007 (7 U.S.C. 2025(a)) is amended by striking

11 ‘‘coupons’’ each place it appears and inserting ‘‘bene12 fits’’.

13 (13) Section 17 of the Food and Nutrition Act

14 of 2007 (7 U.S.C. 2026) is amended—

15 (A) in subsection (a)(2), by striking ‘‘cou16 pon’’ and inserting ‘‘benefit’’;

17 (B) in subsection (b)(1)—

18 (i) in subparagraph (B)—

19 (I) in clause (iv)—

20 (aa) in subclause (I), insert21 ing ‘‘or otherwise providing bene22 fits in a form not restricted to the

23 purchase of food’’ after ‘‘of cash’’;
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1 (bb) in subclause (III)(aa),

2 by striking ‘‘section 3(i)’’ and in3 serting ‘‘section 3(n)’’; and

4 (cc) in subclause (VII), by

5 striking ‘‘section 7(j)’’ and insert6 ing ‘‘section 7(i)’’; and

7 (II) in clause (v)—

8 (aa) by striking

9 ‘‘countersigned food coupons or

10 similar’’; and

11 (bb) by striking ‘‘food cou12 pons’’ and inserting ‘‘EBT

13 cards’’; and

14 (ii) in subparagraph (C)(i)(I), by

15 striking ‘‘coupons’’ and inserting ‘‘EBT

16 cards’’;

17 (C) in subsection (f), by striking ‘‘section

18 7(g)(2)’’ and inserting ‘‘section 7(f)(2)’’; and

19 (D) in subsection (j), by striking ‘‘coupon’’

20 and inserting ‘‘benefit’’.

21 (14) Section 19(a)(2)(A)(ii) of the Food and Nu22 trition Act of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) is

23 amended by striking ‘‘section 3(o)(4)’’ and inserting

24 ‘‘section 3(u)(4)’’.
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1 (15) Section 21 of the Food and Nutrition Act

2 of 2007 (7 U.S.C. 2030) is amended—

3 (A) in subsection (b)(2)(G)(i), by striking

4 ‘‘and (19)’’ and inserting ‘‘(and (17)’’;

5 (B) in subsection (d)(3), by striking ‘‘food

6 coupons’’ and inserting ‘‘EBT cards’’; and

7 (C) by striking ‘‘coupons’’ each place it ap8 pears and inserting ‘‘EBT cards’’.

9 (16) Section 22 of the Food and Nutrition Act

10 of 2007 (7 U.S.C. 2031) is amended—

11 (A) by striking ‘‘food coupons’’ each place it

12 appears and inserting ‘‘benefits’’;

13 (B) by striking ‘‘coupons’’ each place it ap14 pears and inserting ‘‘benefits’’; and

15 (C) in subsection (g)(1)(A), by striking

16 ‘‘coupon’’ and inserting ‘‘benefits’’.

17 (17) Section 26(f)(3) of the Food and Nutrition

18 Act of 2007 (7 U.S.C. 2035(f)(3)) is amended—

19 (A) in subparagraph (A), by striking ‘‘sub20 sections (a) through (g)’’ and inserting ‘‘sub21 sections (a) through (f)’’; and

22 (B) in subparagraph (E), by striking ‘‘(16),

23 (18), (20), (24), and (25)’’ and inserting ‘‘(15),

24 (17), (18), (22), and (23)’’.

25 (c) CONFORMING CROSS-REFERENCES.—
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1 (1) IN GENERAL.—

2 (A) USEOF TERMS.—Each provision of law

3 described in subparagraph (B) is amended (as

4 applicable)—

5 (i) by striking ‘‘coupons’’ each place it

6 appears and inserting ‘‘benefits’’;

7 (ii) by striking ‘‘coupon’’ each place it

8 appears and inserting ‘‘benefit’’;

9 (iii) by striking ‘‘food coupons’’ each

10 place it appears and inserting ‘‘benefits’’;

11 (iv) in each section heading, by strik12 ing ‘‘FOOD COUPONS’’ each place it ap13 pears and inserting ‘‘BENEFITS’’;

14 (v) by striking ‘‘food stamp coupon’’

15 each place it appears and inserting ‘‘ben16 efit’’; and

17 (vi) by striking ‘‘food stamps’’ each

18 place it appears and inserting ‘‘benefits’’.

19 (B) PROVISIONS OF LAW.—The provisions

20 of law referred to in subparagraph (A) are the

21 following:

22 (i) Section 2 of Public Law 103–205

23 (7 U.S.C. 2012 note; 107 Stat. 2418).

24 (ii) Section 1956(c)(7)(D) of title 18,

25 United States Code.
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1 (iii) Titles II through XIX of the So2 cial Security Act (42 U.S.C. 401 et seq.).

3 (iv) Section 401(b)(3) of the Social Se4 curity Amendments of 1972 (42 U.S.C.

5 1382e note; Public Law 92–603).

6 (v) The Robert T. Stafford Disaster

7 Relief and Emergency Assistance Act (42

8 U.S.C. 5121 et seq.).

9 (vi) Section 802(d)(2)(A)(i)(II) of the

10 Cranston-Gonzalez National Affordable

11 Housing Act (42 U.S.C.

12 8011(d)(2)(A)(i)(II)).

13 (2) DEFINITION REFERENCES.—

14 (A) Section 2 of Public Law 103–205 (7

15 U.S.C. 2012 note; 107 Stat. 2418) is amended by

16 striking ‘‘section 3(k)(1)’’ and inserting ‘‘section

17 3(p)(1)’’.

18 (B) Section 205 of the Food Stamp Pro19 gram Improvements Act of 1994 (7 U.S.C. 2012

20 note; Public Law 103–225) is amended by strik21 ing ‘‘section 3(k) of such Act (as amended by sec22 tion 201)’’ and inserting ‘‘section 3(p) of that

23 Act’’.
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1 (C) Section 115 of the Personal Responsi2 bility and Work Opportunity Reconciliation Act

3 of 1996 (21 U.S.C. 862a) is amended—

4 (i) by striking ‘‘section 3(h)’’ each

5 place it appears and inserting ‘‘section

6 3(l)’’; and

7 (ii) in subsection (e)(2), by striking

8 ‘‘section 3(m)’’ and inserting ‘‘section 3(s)’’.

9 (D) Section 402(a) of the Personal Respon10 sibility and Work Opportunity Reconciliation

11 Act of 1996 (8 U.S.C. 1612(a)) is amended—

12 (i) in paragraph (2)(F)(ii), by striking

13 ‘‘section 3(r)’’ and inserting ‘‘section 3(j)’’;

14 and

15 (ii) in paragraph (3)(B), by striking

16 ‘‘section 3(h)’’ and inserting ‘‘section 3(l)’’.

17 (E) Section 3803(c)(2)(C)(vii) of title 31,

18 United States Code, is amended by striking ‘‘sec19 tion 3(h)’’ and inserting ‘‘section 3(l)’’.

20 (F) Section 303(d)(4) of the Social Security

21 Act (42 U.S.C. 503(d)(4)) is amended by strik22 ing ‘‘section 3(n)(1)’’ and inserting ‘‘section

23 3(t)(1)’’.

24 (G) Section 404 of the Social Security Act

25 (42 U.S.C. 604) is amended by striking ‘‘section
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1 3(h)’’ each place it appears and inserting ‘‘sec2 tion 3(l)’’.

3 (H) Section 531 of the Social Security Act

4 (42 U.S.C. 654) is amended by striking ‘‘section

5 3(h)’’ each place it appears and inserting ‘‘sec6 tion 3(l)’’.

7 (I) Section 802(d)(2)(A)(i)(II) of the Cran8 ston-Gonzalez National Affordable Housing Act

9 (42 U.S.C. 8011(d)(2)(A)(i)(II)) is amended by

10 striking ‘‘(as defined in section 3(e) of such

11 Act)’’.

12 (d) REFERENCES.—Any reference in any Federal,

13 State, tribal, or local law (including regulations) to a ‘‘cou14 pon’’, ‘‘authorization card’’, or other access device provided

15 under the Food and Nutrition Act of 2007 (7 U.S.C. 2011

16 et seq.) shall be considered to be a reference to a ‘‘benefit’’

17 provided under that Act.

18 SEC. 4203. CLARIFICATION OF SPLIT ISSUANCE.

19 Section 7(h) of the Food and Nutrition Act of 2007

20 (7 U.S.C. 2016(h)) is amended by striking paragraph (2)

21 and inserting the following:

22 ‘‘(2) REQUIREMENTS.—

23 ‘‘(A) IN GENERAL.—Any procedure estab24 lished under paragraph (1) shall—
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1 ‘‘(i) not reduce the allotment of any

2 household for any period; and

3 ‘‘(ii) ensure that no household experi4 ences an interval between issuances of more

5 than 40 days.

6 ‘‘(B) MULTIPLEISSUANCES.—The proce7 dure may include issuing benefits to a household

8 in more than 1 issuance only when a benefit cor9 rection is necessary.’’.

10 SEC. 4204. STATE OPTION FOR TELEPHONIC SIGNATURE.

11 Section 11(e)(2)(C) of the Food and Nutrition Act of

12 2007 (7 U.S.C. 2020(e)(2)(C)) is amended—

13 (1) by striking ‘‘Nothing in this Act’’ and insert14 ing the following:

15 ‘‘(C) ELECTRONIC AND AUTOMATED SYS16 TEMS.—

17 ‘‘(i) IN GENERAL.—Nothing in this

18 Act’’; and

19 (2) by adding at the end the following:

20 ‘‘(ii) STATE OPTION FOR TELEPHONIC

21 SIGNATURE.—A State agency may establish

22 a system by which an applicant household

23 may sign an application through a recorded

24 verbal assent over the telephone.
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1 ‘‘(iii) REQUIREMENTS.—A system es2 tablished under clause (ii) shall—

3 ‘‘(I) record for future reference the

4 verbal assent of the household member

5 and the information to which assent

6 was given;

7 ‘‘(II) include effective safeguards

8 against impersonation, identity theft,

9 and invasions of privacy;

10 ‘‘(III) not deny or interfere with

11 the right of the household to apply in

12 writing;

13 ‘‘(IV) promptly provide to the

14 household member a written copy of

15 the completed application, with in16 structions for a simple procedure for

17 correcting any errors or omissions;

18 ‘‘(V) comply with paragraph

19 (1)(B);

20 ‘‘(VI) satisfy all requirements for

21 a signature on an application under

22 this Act and other laws applicable to

23 the food and nutrition program, with

24 the date on which the household mem25 ber provides verbal assent considered as
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1 the date of application for all purposes;

2 and

3 ‘‘(VII) comply with such other

4 standards as the Secretary may estab5 lish.’’.

6 SEC. 4205. PRIVACY PROTECTIONS.

7 Section 11(e)(8) of the Food and Nutrition Act of 2007

8 (7 U.S.C. 2020(e)(8)) is amended—

9 (1) in the matter preceding subparagraph (A)—

10 (A) by striking ‘‘limit’’ and inserting ‘‘pro11 hibit’’; and

12 (B) by striking ‘‘to persons’’ and all that

13 follows through ‘‘State programs’’;

14 (2) by redesignating subparagraphs (A) through

15 (E) as subparagraphs (B) through (F), respectively;

16 (3) by inserting before subparagraph (B) (as so

17 redesignated) the following:

18 ‘‘(A) the safeguards shall permit—

19 ‘‘(i) the disclosure of such information

20 to persons directly connected with the ad21 ministration or enforcement of the provi22 sions of this Act, regulations issued pursu23 ant to this Act, Federal assistance pro24 grams, or federally-assisted State programs;

25 and
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1 ‘‘(ii) the subsequent use of the informa2 tion by persons described in clause (i) only

3 for such administration or enforcement;’’;

4 and

5 (4) in subparagraph (F) (as so redesignated) by

6 inserting ‘‘or subsection (u)’’ before the semicolon at

7 the end.

8 SEC. 4206. STUDY ON COMPARABLE ACCESS TO FOOD AND

9 NUTRITION ASSISTANCE FOR PUERTO RICO.

10 (a) IN GENERAL.—The Secretary shall carry out a

11 study of the feasibility and effects of including the Common12 wealth of Puerto Rico in the definition of the term ‘‘State’’

13 under section 3 of the Food and Nutrition Act of 2007 (7

14 U.S.C. 2012), in lieu of providing block grants under sec15 tion 19 of that Act (7 U.S.C. 2028).

16 (b) INCLUSIONS.—The study shall include—

17 (1) an assessment of the administrative, finan18 cial management, and other changes that would be

19 necessary for the Commonwealth to establish a com20 parable food and nutrition program, including com21 pliance with appropriate program rules under the

22 Food and Nutrition Act of 2007 (7 U.S.C. 2011 et

23 seq,), such as—

24 (A) benefit levels under section 3(o) of that

25 Act (7 U.S.C. 3012(o));
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1 (B) income eligibility standards under sec2 tions 5(c) and 6 of that Act (7 U.S.C. 2014(c),

3 2015); and

4 (C) deduction levels under section 5(e) of

5 that Act (7 U.S.C. 2014(e));

6 (2) an estimate of the impact on Federal and

7 Commonwealth benefit and administrative costs;

8 (3) an assessment of the impact of the program

9 on low-income Puerto Ricans, as compared to the

10 program under section 19 of that Act (7 U.S.C.

11 2028);

12 (4) such other matters as the Secretary considers

13 to be appropriate.

14 (c) REPORT.—Not later than 1 year after the date of

15 enactment of this Act, the Secretary shall submit to the

16 Committee on Agriculture of the House of Representatives

17 and the Committee on Agriculture, Nutrition, and Forestry

18 of the Senate a report that describes the results of the study

19 conducted under this section.

20 (d) FUNDING.—

21 (1) IN GENERAL.—On October 1, 2008, out of

22 any funds in the Treasury not otherwise appro23 priated, the Secretary of the Treasury shall transfer

24 to the Secretary to carry out this section $1,000,000,

25 to remain available until expended.
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1 (2) RECEIPT AND ACCEPTANCE.—The Secretary

2 shall be entitled to receive, shall accept, and shall use

3 to carry out this section the funds transferred under

4 paragraph (1), without further appropriation.

5 SEC. 4207. CIVIL RIGHTS COMPLIANCE.

6 Section 11 of the Food and Nutrition Act of 2007 (7

7 U.S.C. 2020) is amended by striking subsection (c) and in8 serting the following:

9 ‘‘(c) CIVIL RIGHTS COMPLIANCE.—

10 ‘‘(1) IN GENERAL.—In the certification of appli11 cant households for the food and nutrition program,

12 there shall be no discrimination by reason of race,

13 sex, religious creed, national origin, or political affili14 ation.

15 ‘‘(2) RELATION TO OTHER LAWS.—The adminis16 tration of the program by a State agency shall be con17 sistent with the rights of households under the fol18 lowing laws (including implementing regulations):

19 ‘‘(A) The Age Discrimination Act of 1975

20 (42 U.S.C. 6101 et seq.).

21 ‘‘(B) Section 504 of the Rehabilitation Act

22 of 1973 (29 U.S.C. 794).

23 ‘‘(C) The Americans with Disabilities Act of

24 1990 (42 U.S.C. 12101 et seq.).
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1 ‘‘(D) Title VI of the Civil Rights Act of

2 1964 (42 U.S.C. 2000d et seq.).’’.

3 SEC. 4208. EMPLOYMENT, TRAINING, AND JOB RETENTION.

4 Section 6(d)(4) of the Food and Nutrition Act of 2007

5 (7 U.S.C. 2015(d)(4)) is amended—

6 (1) in subparagraph (B)—

7 (A) by redesignating clause (vii) as clause

8 (viii); and

9 (B) by inserting after clause (vi) the fol10 lowing:

11 ‘‘(vii) Programs intended to ensure job

12 retention by providing job retention serv13 ices, if the job retention services are pro14 vided for a period of not more than 90 days

15 after an individual who received employ16 ment and training services under this para17 graph gains employment.’’; and

18 (2) in subparagraph (F), by adding at the end

19 the following:

20 ‘‘(iii) Any individual voluntarily elect21 ing to participate in a program under this

22 paragraph shall not be subject to the limita23 tions described in clauses (i) and (ii).’’.
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1 SEC. 4209. CODIFICATION OF ACCESS RULES.

2 Section 11(e)(1)) of the Food and Nutrition Act of

3 2007 (7 U.S.C. 2020(e)(1)) is amended—

4 (1) by striking ‘‘shall (A) at’’ and inserting

5 ‘‘shall—

6 ‘‘(A) at’’; and

7 (2) by striking ‘‘and (B) use’’ and inserting

8 ‘‘and

9 ‘‘(B) comply with regulations of the Sec10 retary requiring the use of’’.

11 SEC. 4210. EXPANDING THE USE OF EBT CARDS AT FARM12 ERS’ MARKETS.

13 (a) IN GENERAL.—For each of fiscal years 2008

14 through 2010, the Secretary shall make grants to pay 100

15 percent of the costs of eligible entities approved by the Sec16 retary to carry out projects to expand the number of farm17 ers’ markets that accept EBT cards by—

18 (1) providing equipment and training necessary

19 for farmers’ markets to accept EBT cards;

20 (2) educating and providing technical assistance

21 to farmers and farmers’ market operators about the

22 process and benefits of accepting EBT cards; or

23 (3) other activities considered to be appropriate

24 by the Secretary.

25 (b) LIMITATION.—A grant under this section—
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1 (1) may not be made for the ongoing cost of car2 rying out any project; and

3 (2) shall only be provided to eligible entities that

4 demonstrate a plan to continue to provide EBT card

5 access at 1 or more farmers’ markets following the re6 ceipt of the grant.

7 (c) ELIGIBLE ENTITIES.—To be eligible to receive a

8 grant under this section, an entity shall be—

9 (1) a State agency administering the food and

10 nutrition program established under the Food and

11 Nutrition Act of 2007 (7 U.S.C. 2011 et seq.);

12 (2) a State agency or local government; or

13 (3) a private nonprofit entity that coordinates

14 farmers’ markets in a State in cooperation with a

15 State or local government.

16 (d) SELECTION OF ELIGIBLE ENTITIES.—The

17 Secretary—

18 (1) shall develop criteria to select eligible entities

19 to receive grants under this section; and

20 (2) may give preference to any eligible entity

21 that consists of a partnership between a government

22 entity and a nongovernmental entity.

23 (e) MANDATORY FUNDING.—

24 (1) IN GENERAL.—On October 1, 2007, out of

25 any funds in the Treasury not otherwise appro-
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1 priated, the Secretary of the Treasury shall transfer

2 to the Secretary of Agriculture to carry out this sec3 tion $5,000,000, to remain available until expended.

4 (2) RECEIPT AND ACCEPTANCE.—The Secretary

5 shall be entitled to receive, shall accept, and shall use

6 to carry out this section the funds transferred under

7 paragraph (1), without further appropriation.

8 SEC. 4211. REVIEW OF MAJOR CHANGES IN PROGRAM DE9 SIGN.

10 Section 11 of the Food and Nutrition Act of 2007 (7

11 U.S.C. 2020) is amended by striking subsection (a) and in12 serting the following:

13 ‘‘(a) STATE RESPONSIBILITY.—

14 ‘‘(1) IN GENERAL.—The State agency of each

15 participating State shall have responsibility for certi16 fying applicant households and issuing EBT cards.

17 ‘‘(2) LOCAL ADMINISTRATION.—The responsi18 bility of the agency of the State government shall not

19 be affected by whether the program is operated on a

20 State-administered or county-administered basis, as

21 provided under section 3(t)(1).

22 ‘‘(3) RECORDS.—

23 ‘‘(A) IN GENERAL.—Each State agency

24 shall keep such records as may be necessary to

25 determine whether the program is being con-
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1 ducted in compliance with this Act (including

2 regulations issued under this Act).

3 ‘‘(B) INSPECTION AND AUDIT.—Records de4 scribed in subparagraph (A) shall—

5 ‘‘(i) be available for inspection and

6 audit at any reasonable time;

7 ‘‘(ii) subject to subsection (e)(8), be

8 available for review in any action filed by

9 a household to enforce any provision of this

10 Act (including regulations issued under this

11 Act); and

12 ‘‘(iii) be preserved for such period of

13 not less than 3 years as may be specified in

14 regulations.

15 ‘‘(4) REVIEW OF MAJOR CHANGES IN PROGRAM

16 DESIGN.—

17 ‘‘(A) IN GENERAL.—The Secretary shall de18 velop standards for identifying major changes in

19 the operations of a State agency, including—

20 ‘‘(i) large or substantially-increased

21 numbers of low-income households that do

22 not live in reasonable proximity to an office

23 performing the major functions described in

24 subsection (e);
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1 ‘‘(ii) substantial increases in reliance

2 on automated systems for the performance

3 of responsibilities previously performed by

4 personnel described in subsection (e)(6)(B);

5 ‘‘(iii) changes that potentially increase

6 the difficulty of reporting information

7 under subsection (e) or section 6(c); and

8 ‘‘(iv) changes that may disproportion9 ately increase the burdens on any of the

10 types of households described in subsection

11 (e)(2)(A).

12 ‘‘(B) NOTIFICATION.—If a State agency im13 plements a major change in operations, the State

14 agency shall—

15 ‘‘(i) notify the Secretary; and

16 ‘‘(ii) collect such information as the

17 Secretary shall require to identify and cor18 rect any adverse effects on program integ19 rity or access, including access by any of

20 the types of households described in sub21 section (e)(2)(A).’’.
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1 SEC. 4212. PRESERVATION OF ACCESS AND PAYMENT ACCU2 RACY.

3 Section 16 of the Food and Nutrition Act of 2007 (7

4 U.S.C. 2025) is amended by striking subsection (g) and in5 serting the following:

6 ‘‘(g) COST SHARING FOR COMPUTERIZATION.—

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graphs (2) and (3), the Secretary is authorized to pay

9 to each State agency the amount provided under sub10 section (a)(6) for the costs incurred by the State agen11 cy in the planning, design, development, or installa12 tion of 1 or more automatic data processing and in13 formation retrieval systems that the Secretary

14 determines—

15 ‘‘(A) would assist in meeting the require16 ments of this Act;

17 ‘‘(B) meet such conditions as the Secretary

18 prescribes;

19 ‘‘(C) are likely to provide more efficient and

20 effective administration of the food and nutrition

21 program;

22 ‘‘(D) would be compatible with other sys23 tems used in the administration of State pro24 grams, including the program funded under part

25 A of title IV of the Social Security Act (42

26 U.S.C. 601 et seq.);
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1 ‘‘(E) would be tested adequately before and

2 after implementation, including through pilot

3 projects in limited areas for major systems

4 changes as determined under rules promulgated

5 by the Secretary, data from which shall be thor6 oughly evaluated before the Secretary approves

7 the system to be implemented more broadly; and

8 ‘‘(F) would be operated in accordance with

9 an adequate plan for—

10 ‘‘(i) continuous updating to reflect

11 changed policy and circumstances; and

12 ‘‘(ii) testing the effect of the system on

13 access for eligible households and on pay14 ment accuracy.

15 ‘‘(2) LIMITATION.—The Secretary shall not make

16 payments to a State agency under paragraph (1) to

17 the extent that the State agency—

18 ‘‘(A) is reimbursed for the costs under any

19 other Federal program; or

20 ‘‘(B) uses the systems for purposes not con21 nected with the food and nutrition program.’’.

22 SEC. 4213. NUTRITION EDUCATION.

23 (a) AUTHORITY TO PROVIDE NUTRITION EDU24 CATION.—Section 4(a) of the Food and Nutrition Act of

25 2007 (7 U.S.C. 2013(a)) is amended in the first sentence
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1 by inserting ‘‘and through an approved State plan, nutri2 tion education’’ after ‘‘an allotment’’.

3 (b) IMPLEMENTATION.—Section 11 of the Food and

4 Nutrition Act of 2007 (7 U.S.C. 2020(f) is amended by

5 striking subsection (f) and inserting the following:

6 ‘‘(f) NUTRITION EDUCATION.—

7 ‘‘(1) IN GENERAL.—State agencies may imple8 ment a nutrition education program for individuals

9 eligible for program benefits that promotes healthy

10 food choices consistent with the most recent Dietary

11 Guidelines for Americans published under section 301

12 of the National Nutrition Monitoring and Related Re13 search Act of 1990 (7 U.S.C. 5341).

14 ‘‘(2) DELIVERY OF NUTRITION EDUCATION.—

15 State agencies may deliver nutrition education di16 rectly to eligible persons or through agreements with

17 the Cooperative State Research, Education, and Ex18 tension Service, including through the expanded food

19 and nutrition education under section 3(d) of the Act

20 of May 8, 1914 (7 U.S.C. 343(d)), and other State

21 and community health and nutrition providers and

22 organizations.

23 ‘‘(3) NUTRITION EDUCATION STATE PLANS.—

24 ‘‘(A) IN GENERAL.—A State agency that

25 elects to provide nutrition education under this
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1 subsection shall submit a nutrition education

2 State plan to the Secretary for approval.

3 ‘‘(B) REQUIREMENTS.—The plan shall—

4 ‘‘(i) identify the uses of the funding for

5 local projects; and

6 ‘‘(ii) conform to standards established

7 by the Secretary through regulations or

8 guidance.

9 ‘‘(C) REIMBURSEMENT.—State costs for

10 providing nutrition education under this sub11 section shall be reimbursed pursuant to section

12 16(a).

13 ‘‘(4) NOTIFICATION.—To the maximum extent

14 practicable, State agencies shall notify applicants,

15 participants, and eligible program participants of the

16 availability of nutrition education under this sub17 section.’’.

18 PART IV—IMPROVING PROGRAM INTEGRITY

19 SEC. 4301. MAJOR SYSTEMS FAILURES.

20 (a) IN GENERAL.—Section 13(b) of the Food and Nu21 trition Act of 2007 (7 U.S.C. 2022(b)) is amended by add22 ing at the end the following:

23 ‘‘(5) OVER ISSUANCES CAUSED BY SYSTEMIC

24 STATEERRORS.—
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1 ‘‘(A) IN GENERAL.—If the Secretary deter2 mines that a State agency over issued benefits to

3 a substantial number of households in a fiscal

4 year as a result of a major systemic error by the

5 State agency, as determined by the Secretary, the

6 Secretary may prohibit the State agency from

7 collecting these over issuances from some or all

8 households.

9 ‘‘(B) PROCEDURES.—

10 ‘‘(i) INFORMATION REPORTING BY

11 STATES.—Every State agency shall provide

12 to the Secretary all information requested

13 by the Secretary concerning the issuance of

14 benefits to households by the State agency in

15 the applicable fiscal year.

16 ‘‘(ii) FINAL DETERMINATION.—After

17 reviewing relevant information provided by

18 a State agency, the Secretary shall make a

19 final determination—

20 ‘‘(I) whether the State agency over

21 issued benefits to a substantial number

22 of households as a result of a systemic

23 error in the applicable fiscal year; and
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1 ‘‘(II) as to the amount of the over

2 issuance in the applicable fiscal year

3 for which the State agency is liable.

4 ‘‘(iii) ESTABLISHING A CLAIM.—Upon

5 determining under clause (ii) that a State

6 agency has over issued benefits to households

7 due to a major systemic error determined

8 under subparagraph (A), the Secretary shall

9 establish a claim against the State agency

10 equal to the value of the over issuance

11 caused by the systemic error.

12 ‘‘(iv) ADMINISTRATIVEAND JUDICIAL

13 REVIEW.—Administrative and judicial re14 view, as provided in section 14, shall apply

15 to the final determinations by the Secretary

16 under clause (ii).

17 ‘‘(v) REMISSION TO THE SECRETARY.—

18 ‘‘(I) DETERMINATION NOT AP19 PEALED.—If the determination of the

20 Secretary under clause (ii) is not ap21 pealed, the State agency shall, as soon

22 as practicable, remit to the Secretary

23 the dollar amount specified in the

24 claim under clause (iii).
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1 ‘‘(II) DETERMINATION AP2 PEALED.—If the determination of the

3 Secretary under clause (ii) is appealed,

4 upon completion of administrative and

5 judicial review under clause (iv), and

6 a finding of liability on the part of the

7 State, the appealing State agency

8 shall, as soon as practicable, remit to

9 the Secretary a dollar amount subject

10 to the finding of the administrative

11 and judicial review.

12 ‘‘(vi) ALTERNATIVE METHOD OF COL13 LECTION.—

14 ‘‘(I) IN GENERAL.—If a State

15 agency fails to make a payment under

16 clause (v) within a reasonable period

17 of time, as determined by the Sec18 retary, the Secretary may reduce any

19 amount due to the State agency under

20 any other provision of this Act by the

21 amount due.

22 ‘‘(II) ACCRUAL OF INTEREST.—

23 During the period of time determined

24 by the Secretary to be reasonable under
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1 subclause (I), interest in the amount

2 owed shall not accrue.

3 ‘‘(vii) LIMITATION.—Any liability

4 amount established under section

5 16(c)(1)(C) shall be reduced by the amount

6 of the claim established under this subpara7 graph.’’.

8 (b) CONFORMING AMENDMENT.—Section 14(a)(6) of

9 the Food and Nutrition Act of 2007 (7 U.S.C. 2023(a)(6))

10 is amended by striking ‘‘pursuant to section’’ and inserting

11 ‘‘pursuant to section 13(b)(5) and’’.

12 SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC

13 IDENTIFICATION TECHNOLOGY.

14 Section 16 of the Food and Nutrition Act of 2007 (7

15 U.S.C. 2025) is amended by adding at the end the following:

16 ‘‘(l) PERFORMANCE STANDARDS FOR BIOMETRIC

17 IDENTIFICATION TECHNOLOGY.—

18 ‘‘(1) DEFINITION OF BIOMETRIC IDENTIFICATION

19 TECHNOLOGY.—In this subsection, the term ‘biometric

20 identification technology’ means a technology that

21 provides an automated method to identify an indi22 vidual based on physical characteristics, such as fin23 gerprints or retinal scans.

24 ‘‘(2) ADMINISTRATIVEFUNDS.—The Secretary

25 may not pay a State agency any amount for admin-
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1 istrative costs for the development, purchase, adminis2 tration, or other costs associated with the use of bio3 metric identification technology unless the State agen4 cy has, under such terms and conditions as the Sec5 retary considers appropriate—

6 ‘‘(A) provided to the Secretary an analysis

7 of the cost-effectiveness of the use of the proposed

8 biometric identification technology to detect

9 fraud in carrying out the food and nutrition

10 program;

11 ‘‘(B) demonstrated to the Secretary that the

12 analysis is—

13 ‘‘(i) statistically valid; and

14 ‘‘(ii) based on appropriate and valid

15 assumptions for the households served by the

16 food and nutrition program;

17 ‘‘(C) demonstrated to the Secretary that—

18 ‘‘(i) the proposed biometric identifica19 tion technology is cost-effective in reducing

20 fraud; and

21 ‘‘(ii) there are no other technologies or

22 fraud-detection methods that are at least as

23 cost-effective in carrying out the purposes of

24 the proposed biometric identification sys25 tem; and
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1 ‘‘(D) demonstrated to the Secretary that no

2 information produced by or used in the biomet3 ric information technology system will be made

4 available or used for any purpose other than a

5 purpose allowed under section 11(e)(8).

6 ‘‘(3) STANDARDS.—The Secretary shall establish

7 uniform standards for the evaluation of cost-effective8 ness analyses submitted to the Secretary under para9 graph (2).’’.

10 SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF

11 RETAIL FOOD STORES AND WHOLESALE

12 FOOD CONCERNS.

13 Section 12 of the Food and Nutrition Act of 2007 (7

14 U.S.C. 2021) is amended—

15 (1) by striking the section designation and head16 ing and all that follows through the end of subsection

17 (a) and inserting the following:

18 ‘‘SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RE19 TAIL FOOD STORES AND WHOLESALE FOOD

20 CONCERNS.

21 ‘‘(a) DISQUALIFICATION.—

22 ‘‘(1) IN GENERAL.—An approved retail food store

23 or wholesale food concern that violates a provision of

24 this Act or a regulation under this Act may be—
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1 ‘‘(A) disqualified for a specified period of

2 time from further participation in the food and

3 nutrition program; or

4 ‘‘(B) assessed a civil penalty of up to

5 $100,000 for each violation.

6 ‘‘(2) REGULATIONS.—Regulations promulgated

7 under this Act shall provide criteria for the finding

8 of a violation of, the suspension or disqualification of,

9 and the assessment of a civil penalty against, a retail

10 food store or wholesale food concern on the basis of

11 evidence that may include facts established through

12 on-site investigations, inconsistent redemption data,

13 or evidence obtained through a transaction report

14 under an electronic benefit transfer system.’’;

15 (2) in subsection (b)—

16 (A) by striking ‘‘(b) Disqualification’’ and

17 inserting the following:

18 ‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to sub19 section (c), a disqualification’’;

20 (B) in paragraph (1), by striking ‘‘of no

21 less than six months nor more than five years’’

22 and inserting ‘‘not to exceed 5 years’’;

23 (C) in paragraph (2), by striking ‘‘of no

24 less than twelve months nor more than ten

25 years’’ and inserting ‘‘not to exceed 10 years’’;
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1 (D) in paragraph (3)(B)—

2 (i) by inserting ‘‘or a finding of the

3 unauthorized redemption, use, transfer, ac4 quisition, alteration, or possession of EBT

5 cards’’ after ‘‘concern’’ the first place it ap6 pears; and

7 (ii) by striking ‘‘civil money penalties’’

8 and inserting ‘‘civil penalties’’; and

9 (E) by striking ‘‘civil money penalty’’ each

10 place it appears and inserting ‘‘civil penalty’’;

11 (3) in subsection (c)—

12 (A) by striking ‘‘(c) The action’’ and insert13 ing the following:

14 ‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICA15 TION AND PENALTY DETERMINATIONS.—

16 ‘‘(1) CIVIL PENALTY.—In addition to a disquali17 fication under this section, the Secretary may assess

18 a civil penalty in an amount not to exceed $100,000

19 for each violation.

20 ‘‘(2) REVIEW.—The action’’; and

21 (B) in paragraph (2) (as designated by sub22 paragraph (A)), by striking ‘‘civil money pen23 alty’’ and inserting ‘‘civil penalty’’;

24 (4) in subsection (d)—
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1 (A) by striking ‘‘(d)’’ and all that follows

2 through ‘‘. The Secretary shall’’ and inserting

3 the following:

4 ‘‘(d) CONDITIONS OF AUTHORIZATION.—

5 ‘‘(1) IN GENERAL.—As a condition of authoriza6 tion to accept and redeem benefits, the Secretary may

7 require a retail food store or wholesale food concern

8 that, pursuant to subsection (a), has been disqualified

9 for more than 180 days, or has been subjected to a

10 civil penalty in lieu of a disqualification period of

11 more than 180 days, to furnish a collateral bond or

12 irrevocable letter of credit for a period of not more

13 than 5 years to cover the value of benefits that the

14 store or concern may in the future accept and redeem

15 in violation of this Act.

16 ‘‘(2) COLLATERAL.—The Secretary also may re17 quire a retail food store or wholesale food concern that

18 has been sanctioned for a violation and incurs a sub19 sequent sanction regardless of the length of the dis20 qualification period to submit a collateral bond or ir21 revocable letter of credit.

22 ‘‘(3) BOND REQUIREMENTS.—The Secretary

23 shall’’;

24 (B) by striking ‘‘If the Secretary finds’’ and

25 inserting the following
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1 ‘‘(4) FORFEITURE.—If the Secretary finds’’; and

2 (C) by striking ‘‘Such store or concern’’ and

3 inserting the following:

4 ‘‘(5) HEARING.—A store or concern described in

5 paragraph (4)’’;

6 (5) in subsection (e), by striking ‘‘civil money

7 penalty’’ each place it appears and inserting ‘‘civil

8 penalty’’; and

9 (6) by adding at the end the following:

10 ‘‘(h) FLAGRANT VIOLATIONS.—

11 ‘‘(1) IN GENERAL.—The Secretary, in consulta12 tion with the Inspector General of the Department of

13 Agriculture, shall establish procedures under which

14 the processing of program benefit redemptions for a

15 retail food store or wholesale food concern may be im16 mediately suspended pending administrative action to

17 disqualify the retail food store or wholesale food con18 cern.

19 ‘‘(2) REQUIREMENTS.—Under the procedures de20 scribed in paragraph (1), if the Secretary, in con21 sultation with the Inspector General, determines that

22 a retail food store or wholesale food concern is en23 gaged in flagrant violations of this Act (including

24 regulations promulgated under this Act), unsettled
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1 program benefits that have been redeemed by the re2 tail food store or wholesale food concern—

3 ‘‘(A) may be suspended; and

4 ‘‘(B)(i) if the program disqualification is

5 upheld, may be subject to forfeiture pursuant to

6 subsection (g); or

7 ‘‘(ii) if the program disqualification is not

8 upheld, shall be released to the retail food store

9 or wholesale food concern.

10 ‘‘(3) NO LIABILITY FOR INTEREST.—The Sec11 retary shall not be liable for the value of any interest

12 on funds suspended under this subsection.’’.

13 SEC. 4304. FUNDING OF EMPLOYMENT AND TRAINING PRO14 GRAMS.

15 (a) IN GENERAL.—Section 16(h)(1)(A) of the Food

16 and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) is

17 amended in subparagraph (A), by striking ‘‘to remain

18 available until expended’’ and inserting ‘‘to remain avail19 able for 2 fiscal years’’.

20 (b) RESCISSION OF FUNDS.—Notwithstanding any

21 other provision of law, funds provided under section

22 16(h)(1)(A) of the Food and Nutrition Act of 2007 (7 U.S.C.

23 2025(h)(1)(A)) for any fiscal year before the fiscal year be24 ginning October 1, 2007, shall be rescinded on the date of
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1 enactment of this Act, unless obligated by a State agency

2 before that date.

3 SEC. 4305. ELIGIBILITY DISQUALIFICATION.

4 Section 6 of the Food and Nutrition Assistance Act of

5 2007 (7 U.S.C. 2015) is amended by adding at the end the

6 following:

7 ‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DE8 STROYING FOOD AND COLLECTING DEPOSITS.—Any person

9 who has been found by a State or Federal court or adminis10 trative agency or in a hearing under subsection (b) to have

11 intentionally obtained cash by purchasing products with

12 food and nutrition benefits that have containers that require

13 return deposits, discarding the product, and returning the

14 container for the deposit amount shall be ineligible for bene15 fits under this Act for such period of time as the Secretary

16 shall prescribe by regulation.

17 ‘‘(q) DISQUALIFICATION FOR SALEOF FOOD PUR18 CHASED WITH FOOD AND NUTRITION BENEFITS.—Subject

19 to any requirements established by the Secretary, any per20 son who has been found by a State or Federal court or ad21 ministrative agency or in a hearing under subsection (b)

22 to have intentionally sold any food that was purchased

23 using food and nutrition benefits shall be ineligible for bene24 fits under this Act for such period of time as the Secretary

25 shall prescribe by regulation.’’.
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1 PART V—MISCELLANEOUS

2 SEC. 4401. DEFINITION OF STAPLE FOODS.

3 Subsection (r) of section 3 of the Food and Nutrition

4 Act of 2007 (7 U.S.C. 2012) (as redesignated by section

5 4202(b)(1)(M)) is amended—

6 (1) by striking ‘‘(r)(1) Except’’ and inserting the

7 following:

8 ‘‘(r) STAPLE FOODS.—

9 ‘‘(1) IN GENERAL.—Except’’; and

10 (2) by striking paragraph (2) and inserting the

11 following:

12 ‘‘(2) EXCEPTIONS.—The term ‘staple foods’ does

13 not include accessory food items, such as coffee, tea,

14 cocoa, carbonate and uncarbonated drinks, candy,

15 condiments, and spices, or dietary supplements.

16 ‘‘(3) DEPTH OF STOCK.—The Secretary may

17 issue regulations to define depth of stock to ensure

18 that stocks of staple foods are available on a contin19 uous basis.’’.

20 SEC. 4402. ACCESSORY FOOD ITEMS.

21 Section 9(a) of the Food and Nutrition Act of 2007

22 (7 U.S.C. 2018(a)) is amended by adding at the end the

23 following:

24 ‘‘(4) ACCESSORY FOOD ITEMS.—

25 ‘‘(A) IN GENERAL.—Not later than 1 year

26 after the date of enactment of this paragraph, the
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1 Secretary shall promulgate proposed regulations

2 providing that a dietary supplement shall not be

3 considered an accessory food item unless the die4 tary supplement—

5 ‘‘(i) contains folic acid or calcium in

6 accordance with sections 101.72 and 101.79

7 of title 21, Code of Federal Regulations (as

8 in effect on the date of enactment of this

9 paragraph); and

10 ‘‘(ii) is a multivitamin-mineral sup11 plement that—

‘‘(I) provides at least 2 12 ⁄3 of the es13 sential vitamins and minerals at 100

14 percent of the daily value levels, as de15 termined by the Food and Drug Ad16 ministration; and

17 ‘‘(II) does not exceed the daily

18 upper limit for those nutrients for

19 which an established daily upper limit

20 has been determined by the Institute of

21 Medicine of the National Academy of

22 Sciences.

23 ‘‘(B) FINAL REGULATIONS.—Not later than

24 2 years after the date of enactment of this para-
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1 graph, the Secretary shall promulgate final regu2 lations in accordance with subparagraph (A).

3 ‘‘(C) PURCHASEOF DIETARY SUPPLE4 MENTS.—No dietary supplements may be pur5 chased using benefits under this Act until the

6 earlier of—

7 ‘‘(i) the date on which the Secretary

8 promulgates final regulations under sub9 paragraph (B); or

10 ‘‘(ii) the date on which the Secretary

11 certifies a voluntary system of labeling for

12 the ready and accurate identification of eli13 gible dietary supplements, as developed by

14 the Secretary in consultation with the die15 tary supplement industry and dietary sup16 plement retailers.’’.

17 SEC. 4403. PILOT PROJECTS TO EVALUATE HEALTH AND

18 NUTRITION PROMOTION IN THE FOOD AND

19 NUTRITION PROGRAM.

20 Section 17 of the Food and Nutrition Act of 2007 (7

21 U.S.C. 2026) is amended by adding at the end the following:

22 ‘‘(k) PILOT PROJECTS TO EVALUATE HEALTH AND

23 NUTRITION PROMOTION IN THE FOOD AND NUTRITION

24 PROGRAM.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall carry

2 out, under such terms and conditions as the Secretary

3 considers to be appropriate, pilot projects to develop

4 and test methods—

5 ‘‘(A) of using the food and nutrition pro6 gram to improve the dietary and health status of

7 households participating in the food and nutri8 tion program; and

9 ‘‘(B) to reduce overweight, obesity (includ10 ing childhood obesity), and associated co11 morbidities in the United States.

12 ‘‘(2) PROJECTS.—Pilot projects carried out

13 under paragraph (1) may include projects to deter14 mine whether healthier food purchases by and

15 healthier diets among households participating in the

16 food and nutrition program result from projects

17 that—

18 ‘‘(A) increase the food and nutrition assist19 ance purchasing power of the participating

20 households by providing increased food and nu21 trition assistance benefit allotments to the par22 ticipating households;

23 ‘‘(B) increase access to farmers markets by

24 participating households through the electronic
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1 redemption of food and nutrition assistance at

2 the farmers markets;

3 ‘‘(C) provide incentives to authorized food

4 and nutrition program vendors to increase the

5 availability of healthy foods to participating

6 households;

7 ‘‘(D) subject authorized food and nutrition

8 program vendors to stricter vendor requirements

9 with respect to carrying and stocking healthy

10 foods;

11 ‘‘(E) provide incentives at the point of pur12 chase to encourage participating households to

13 purchase fruits, vegetables, or other healthy foods;

14 or

15 ‘‘(F) provide to participating households in16 tegrated communication and education pro17 grams, including the provision of funding for a

18 portion of a school based nutrition coordinator to

19 implement a broad nutrition action plan and

20 parent nutrition education programs in elemen21 tary schools, separately or in combination with

22 pilot projects carried out under subparagraphs

23 (A) through (E).
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1 ‘‘(3) DURATION.—A pilot project carried out

2 under this subsection shall have a term of not more

3 than 5 years.

4 ‘‘(4) EVALUATIONS AND REPORTS.—

5 ‘‘(A) EVALUATIONS.—

6 ‘‘(i) INDEPENDENT EVALUATION.—

7 ‘‘(I) IN GENERAL.—The Secretary

8 shall provide for an independent eval9 uation of each pilot project under this

10 subsection that measures the impact of

11 the pilot program on health and nutri12 tion as described in paragraph (1).

13 ‘‘(II) REQUIREMENT.—The inde14 pendent evaluation under subclause (I)

15 shall use rigorous methodologies, par16 ticularly random assignment or other

17 methods that are capable of producing

18 scientifically-valid information regard19 ing which activities are effective.

20 ‘‘(ii) COSTS.—The Secretary may use

21 funds provided to carry out this section to

22 pay costs associated with monitoring and

23 evaluating each pilot project.

24 ‘‘(B) REPORTS.—Not later than 90 days

25 after the last day of fiscal year 2008 and each
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1 fiscal year thereafter until the completion of the

2 last evaluation under subparagraph (A), the Sec3 retary shall submit to the Committee on Agri4 culture of the House of Representatives and the

5 Committee on Agriculture, Nutrition, and For6 estry of the Senate a report that includes a de7 scription of—

8 ‘‘(i) the status of each pilot project;

9 ‘‘(ii) the results of the evaluation com10 pleted during the previous fiscal year; and

11 ‘‘(iii) to the maximum extent

12 practicable—

13 ‘‘(I) the impact of the pilot project

14 on appropriate health, nutrition, and

15 associated behavioral outcomes among

16 households participating in the pilot

17 project;

18 ‘‘(II) baseline information rel19 evant to the stated goals and desired

20 outcomes of the pilot project; and

21 ‘‘(III) equivalent information

22 about similar or identical measures

23 among control or comparison groups

24 that did not participate in the pilot

25 project.
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1 ‘‘(5) FUNDING.—

2 ‘‘(A) IN GENERAL.—Out of any funds made

3 available under section 18, the Secretary shall

4 use $50,000,000 to carry out this section, to re5 main available until expended.

6 ‘‘(B) USEOF FUNDS.—Of funds made

7 available under subparagraph (A), the Secretary

8 shall use not more than $25,000,000 to carry out

9 a pilot project described in paragraph (2)(E).’’.

10 SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS

11 AND MICKEY LELAND INTERNATIONAL HUN12 GER FELLOWS.

13 (a) IN GENERAL.—The Food and Nutrition Act of

14 2007 (7 U.S.C. 2011 et seq.) is amended by adding at the

15 end the following:

16 ‘‘SEC. 28. BILL EMERSON NATIONAL HUNGER FELLOWS AND

17 MICKEY LELAND INTERNATIONAL HUNGER

18 FELLOWS.

19 ‘‘(a) SHORT TITLE.—This section may be cited as the

20 ‘Bill Emerson National Hunger Fellows and Mickey Leland

21 International Hunger Fellows Program Act of 2007’.

22 ‘‘(b) FINDINGS.—Congress finds that—

23 ‘‘(1) there is a critical need for compassionate

24 individuals who are committed to assisting people
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1 who suffer from hunger to initiate and administer so2 lutions to the hunger problem;

3 ‘‘(2) Bill Emerson, the distinguished late Rep4 resentative from the 8th District of Missouri,

5 demonstrated—

6 ‘‘(A) his commitment to solving the problem

7 of hunger in a bipartisan manner;

8 ‘‘(B) his commitment to public service; and

9 ‘‘(C) his great affection for the institution

10 and ideals of the United States Congress;

11 ‘‘(3) George T. (Mickey) Leland, the distin12 guished late Representative from the 18th District of

13 Texas, demonstrated—

14 ‘‘(A) his compassion for those in need;

15 ‘‘(B) his high regard for public service; and

16 ‘‘(C) his lively exercise of political talents;

17 ‘‘(4) the special concern that Mr. Emerson and

18 Mr. Leland demonstrated during their lives for the

19 hungry and poor was an inspiration for others to

20 work toward the goals of equality and justice for all;

21 ‘‘(5) these 2 outstanding leaders maintained a

22 special bond of friendship regardless of political affili23 ation and worked together to encourage future leaders

24 to recognize and provide service to others; and
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1 ‘‘(6) it is especially appropriate to honor the

2 memory of Mr. Emerson and Mr. Leland by creating

3 a fellowship program to develop and train the future

4 leaders of the United States to pursue careers in hu5 manitarian service.

6 ‘‘(c) DEFINITIONS.—In this subsection:

7 ‘‘(1) DIRECTOR.—The term ‘Director’ means the

8 head of the Congressional Hunger Center.

9 ‘‘(2) FELLOW.—The term ‘fellow’ means—

10 ‘‘(A) a Bill Emerson Hunger Fellow; or

11 ‘‘(B) Mickey Leland Hunger Fellow

12 ‘‘(3) FELLOWSHIP PROGRAMS.—The term ‘Fel13 lowship Programs’ means the Bill Emerson National

14 Hunger Fellowship Program and the Mickey Leland

15 International Hunger Fellowship Program established

16 under subsection (d)(1).

17 ‘‘(d) FELLOWSHIP PROGRAMS.—

18 ‘‘(1) IN GENERAL.—There is established the Bill

19 Emerson National Hunger Fellowship Program and

20 the Mickey Leland International Hunger Fellowship

21 Program.

22 ‘‘(2) PURPOSES.—

23 ‘‘(A) IN GENERAL.—The purposes of the

24 Fellowship Programs are—
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1 ‘‘(i) to encourage future leaders of the

2 United States—

3 ‘‘(I) to pursue careers in humani4 tarian and public service;

5 ‘‘(II) to recognize the needs of low6 income people and hungry people;

7 ‘‘(III) to provide assistance to

8 people in need; and

9 ‘‘(IV) to seek public policy solu10 tions to the challenges of hunger and

11 poverty;

12 ‘‘(ii) to provide training and develop13 ment opportunities for such leaders through

14 placement in programs operated by appro15 priate organizations or entities; and

16 ‘‘(iii) to increase awareness of the im17 portance of public service.

18 ‘‘(B) BILL EMERSON HUNGER FELLOWSHIP

19 PROGRAM.—The purpose of the Bill Emerson

20 Hunger Fellowship Program is to address hunger

21 and poverty in the United States.

22 ‘‘(C) MICKEY LELAND HUNGER FELLOWSHIP

23 PROGRAM.—The purpose of the Mickey Leland

24 Hunger Fellowship Program is to address inter25 national hunger and other humanitarian needs.
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1 ‘‘(3) ADMINISTRATION.—

2 ‘‘(A) IN GENERAL.—Subject to subpara3 graph (B), the Secretary shall offer to provide a

4 grant to the Congressional Hunger Center to ad5 minister the Fellowship Programs.

6 ‘‘(B) TERMS OF GRANT.—The terms of the

7 grant provided under subparagraph (A), includ8 ing the length of the grant and provisions for the

9 alteration or termination of the grant, shall be

10 determined by the Secretary in accordance with

11 this section.

12 ‘‘(e) FELLOWSHIPS.—

13 ‘‘(1) IN GENERAL.—The Director shall make

14 available Bill Emerson Hunger Fellowships and

15 Mickey Leland Hunger Fellowships in accordance

16 with this subsection.

17 ‘‘(2) CURRICULUM.—

18 ‘‘(A) IN GENERAL.—The Fellowship Pro19 grams shall provide experience and training to

20 develop the skills necessary to train fellows to

21 carry out the purposes described in subsection

22 (d)(2), including—

23 ‘‘(i) training in direct service pro24 grams for the hungry and other anti-hunger

25 programs in conjunction with community-
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1 based organizations through a program of

2 field placement; and

3 ‘‘(ii) providing experience in policy de4 velopment through placement in a govern5 mental entity or nongovernmental, non6 profit, or private sector organization.

7 ‘‘(B) WORK PLAN.—To carry out subpara8 graph (A) and assist in the evaluation of the fel9 lowships under paragraph (6), the Director shall,

10 for each fellow, approve a work plan that identi11 fies the target objectives for the fellow in the fel12 lowship, including specific duties and respon13 sibilities relating to those objectives.

14 ‘‘(3) PERIOD OF FELLOWSHIP.—

15 ‘‘(A) BILL EMERSON HUNGER FELLOW.—A

16 Bill Emerson Hunger Fellowship awarded under

17 this section shall be for not more than 15

18 months.

19 ‘‘(B) MICKEY LELAND HUNGER FELLOW.—A

20 Mickey Leland Hunger Fellowship awarded

21 under this section shall be for not more than 2

22 years.

23 ‘‘(4) SELECTION OF FELLOWS.—
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1 ‘‘(A) IN GENERAL.—Fellowships shall be

2 awarded pursuant to a nationwide competition

3 established by the Director.

4 ‘‘(B) QUALIFICATIONS.—A successful pro5 gram applicant shall be an individual who has

6 demonstrated—

7 ‘‘(i) an intent to pursue a career in

8 humanitarian services and outstanding po9 tential for such a career;

10 ‘‘(ii) leadership potential or actual

11 leadership experience;

12 ‘‘(iii) diverse life experience;

13 ‘‘(iv) proficient writing and speaking

14 skills;

15 ‘‘(v) an ability to live in poor or di16 verse communities; and

17 ‘‘(vi) such other attributes as are con18 sidered to be appropriate by the Director.

19 ‘‘(5) AMOUNT OF AWARD.—

20 ‘‘(A) IN GENERAL.—A fellow shall receive—

21 ‘‘(i) a living allowance during the term

22 of the Fellowship; and

23 ‘‘(ii) subject to subparagraph (B), an

24 end-of-service award.
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1 ‘‘(B) REQUIREMENT FOR SUCCESSFUL COM2 PLETION OF FELLOWSHIP.—Each fellow shall be

3 entitled to receive an end-of-service award at an

4 appropriate rate for each month of satisfactory

5 service completed, as determined by the Director.

6 ‘‘(C) TERMS OF FELLOWSHIP.—A fellow

7 shall not be considered an employee of—

8 ‘‘(i) the Department of Agriculture;

9 ‘‘(ii) the Congressional Hunger Center;

10 or

11 ‘‘(iii) a host agency in the field or pol12 icy placement of the fellow.

13 ‘‘(D) RECOGNITION OF FELLOWSHIP

14 AWARD.—

15 ‘‘(i) EMERSON FELLOW.—An indi16 vidual awarded a fellowship from the Bill

17 Emerson Hunger Fellowship shall be known

18 as an ‘Emerson Fellow’.

19 ‘‘(ii) LELAND FELLOW.—An individual

20 awarded a fellowship from the Mickey Le21 land Hunger Fellowship shall be known as

22 a ‘Leland Fellow’.

23 ‘‘(6) EVALUATIONS AND AUDITS.—Under terms

24 stipulated in the contract entered into under sub25 section (d)(3), the Director shall—
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1 ‘‘(A) conduct periodic evaluations of the

2 Fellowship Programs; and

3 ‘‘(B) arrange for annual independent finan4 cial audits of expenditures under the Fellowship

5 Programs.

6 ‘‘(f) AUTHORITY.—

7 ‘‘(1) IN GENERAL.—Subject to paragraph (2), in

8 carrying out this section, the Director may solicit, ac9 cept, use, and dispose of gifts, bequests, or devises of

10 services or property, both real and personal, for the

11 purpose of facilitating the work of the Fellowship Pro12 grams.

13 ‘‘(2) LIMITATION.—Gifts, bequests, or devises of

14 money and proceeds from sales of other property re15 ceived as gifts, bequests, or devises shall be used exclu16 sively for the purposes of the Fellowship Programs.

17 ‘‘(g) REPORT.—The Director shall annually submit to

18 the Secretary of Agriculture, the Committee on Agriculture

19 of the House of Representatives, and the Committee on Agri20 culture, Nutrition, and Forestry of the Senate a report

21 that—

22 ‘‘(1) describes the activities and expenditures of

23 the Fellowship Programs during the preceding fiscal

24 year, including expenditures made from funds made

25 available under subsection (h); and
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1 ‘‘(2) includes the results of evaluations and au2 dits required by subsection (f).

3 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated to the Secretary such

5 sums as are necessary to carry out this section, to remain

6 available until expended.’’.

7 (b) REPEAL.—Section 4404 of the Farm Security and

8 Rural Investment Act of 2002 (2 U.S.C. 1161) is repealed.

9 SEC. 4405. HUNGER-FREE COMMUNITIES.

10 (a) DEFINITIONS.—In this section:

11 (1) DOMESTIC HUNGER GOAL.—The term ‘‘do12 mestic hunger goal’’ means—

13 (A) the goal of reducing hunger in the

14 United States to at or below 2 percent by 2010;

15 or

16 (B) the goal of reducing food insecurity in

17 the United States to at or below 6 percent by

18 2010.

19 (2) EMERGENCY FEEDING ORGANIZATION.—The

20 term ‘‘emergency feeding organization’’ has the mean21 ing given the term in section 201A of the Emergency

22 Food Assistance Act of 1983 (7 U.S.C. 7501).

23 (3) FOOD SECURITY.—The term ‘‘food security’’

24 means the state in which an individual has access to

25 enough food for an active, healthy life.
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1 (4) HUNGER-FREE COMMUNITIES GOAL.—The

2 term ‘‘hunger-free communities goal’’ means any of

3 the 14 goals described in the H. Con. Res. 302 (102nd

4 Congress).

5 (b) HUNGER REPORTS.—

6 (1) STUDY.—

7 (A) TIMELINE.—

8 (i) IN GENERAL.—Not later than 1

9 year after the date of enactment of this Act,

10 the Secretary shall conduct a study of major

11 matters relating to the problem of hunger in

12 the United States, as determined by the Sec13 retary.

14 (ii) UPDATE.—Not later than 5 years

15 after the date on which the study under

16 clause (i) is conducted, the Secretary shall

17 update the study.

18 (B) MATTERS TO BE ASSESSED.—The mat19 ters to be assessed by the Secretary in the study

20 and update under this paragraph shall

21 include—

22 (i) data on hunger and food insecurity

23 in the United States;

24 (ii) measures carried out during the

25 previous year by Federal, State, and local
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1 governments to achieve domestic hunger

2 goals and hunger-free communities goals;

3 and

4 (iii) measures that could be carried out

5 by Federal, State, and local governments to

6 achieve domestic hunger goals and hunger7 free communities goals.

8 (2) RECOMMENDATIONS.—The Secretary shall

9 develop recommendations on—

10 (A) removing obstacles to achieving domes11 tic hunger goals and hunger-free communities

12 goals; and

13 (B) otherwise reducing domestic hunger.

14 (3) REPORT.—The Secretary shall submit to the

15 President and Congress—

16 (A) not later than 1 year after the date of

17 enactment of this Act, a report that contains—

18 (i) a detailed statement of the results of

19 the study, or the most recent update to the

20 study, conducted under paragraph (1)(A);

21 and

22 (ii) the most recent recommendations

23 of the Secretary under paragraph (2); and
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1 (B) not later than 5 years after the date of

2 submission of the report under subparagraph

3 (A), an update of the report.

4 (c) HUNGER-FREE COMMUNITIES COLLABORATIVE

5 GRANTS.—

6 (1) DEFINITION OF ELIGIBLE ENTITY.—In this

7 subsection, the term ‘‘eligible entity’’ means a public

8 food program service provider or a nonprofit organi9 zation, including but not limited to an emergency

10 feeding organization, that demonstrates the organiza11 tion has collaborated, or will collaborate, with 1 or

12 more local partner organizations to achieve at least 1

13 hunger-free communities goal.

14 (2) PROGRAM AUTHORIZED.—

15 (A) IN GENERAL.—The Secretary shall use

16 not more than 55 percent of any funds made

17 available under subsection (f) to make grants to

18 eligible entities to pay the Federal share of the

19 costs of an activity described in paragraph (4).

20 (B) FEDERAL SHARE.—The Federal share

21 of the cost of carrying out an activity under this

22 subsection shall not exceed 80 percent.

23 (C) NON-FEDERAL SHARE.—

24 (i) CALCULATION.—The non-Federal

25 share of the cost of an activity under this
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1 subsection may be provided in cash or in

2 kind, fairly evaluated, including facilities,

3 equipment, or services.

4 (ii) SOURCES.—Any entity may pro5 vide the non-Federal share of the cost of an

6 activity under this subsection through a

7 State government, a local government, or a

8 private source.

9 (3) APPLICATION.—

10 (A) IN GENERAL.—To receive a grant under

11 this subsection, an eligible entity shall submit an

12 application to the Secretary at the time and in

13 the manner and accompanied by any informa14 tion the Secretary may require.

15 (B) CONTENTS.—Each application sub16 mitted under subparagraph (A) shall—

17 (i) identify any activity described in

18 paragraph (4) that the grant will be used to

19 fund;

20 (ii) describe the means by which an ac21 tivity identified under clause (i) will reduce

22 hunger in the community of the eligible en23 tity;
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1 (iii) list any partner organizations of

2 the eligible entity that will participate in

3 an activity funded by the grant;

4 (iv) describe any agreement between a

5 partner organization and the eligible entity

6 necessary to carry out an activity funded

7 by the grant; and

8 (v) if an assessment described in para9 graph (4)(A) has been performed, include—

10 (I) a summary of that assessment;

11 and

12 (II) information regarding the

13 means by which the grant will help re14 duce hunger in the community of the

15 eligible entity.

16 (C) PRIORITY.—In making grants under

17 this subsection, the Secretary shall give priority

18 to eligible entities that—

19 (i) demonstrate in the application of

20 the eligible entity that the eligible entity

21 makes collaborative efforts to reduce hunger

22 in the community of the eligible entity; and

23 (ii)(I) serve communities in which the

24 rates of food insecurity, hunger, poverty, or
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1 unemployment are demonstrably higher

2 than national average rates;

3 (II) provide evidence of long-term ef4 forts to reduce hunger in the community;

5 (III) provide evidence of public sup6 port for the efforts of the eligible entity; or

7 (IV) demonstrate in the application of

8 the eligible entity a commitment to achiev9 ing more than 1 hunger-free communities

10 goal.

11 (4) USEOF FUNDS.—

12 (A) ASSESSMENT OF HUNGER IN THE COM13 MUNITY.—

14 (i) IN GENERAL.—An eligible entity in

15 a community that has not performed an as16 sessment described in clause (ii) may use a

17 grant received under this subsection to per18 form the assessment for the community.

19 (ii) ASSESSMENT.—The assessment re20 ferred to in clause (ii) shall include—

21 (I) an analysis of the problem of

22 hunger in the community served by the

23 eligible entity;

24 (II) an evaluation of any facility

25 and any equipment used to achieve a
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1 hunger-free communities goal in the

2 community;

3 (III) an analysis of the effective4 ness and extent of service of existing

5 nutrition programs and emergency

6 feeding organizations; and

7 (IV) a plan to achieve any other

8 hunger-free communities goal in the

9 community.

10 (B) ACTIVITIES.—An eligible entity in a

11 community that has submitted an assessment to

12 the Secretary shall use a grant received under

13 this subsection for any fiscal year for activities

14 of the eligible entity, including—

15 (i) meeting the immediate needs of peo16 ple in the community served by the eligible

17 entity who experience hunger by—

18 (I) distributing food;

19 (II) providing community out20 reach; or

21 (III) improving access to food as

22 part of a comprehensive service;

23 (ii) developing new resources and

24 strategies to help reduce hunger in the com25 munity;
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1 (iii) establishing a program to achieve

2 a hunger-free communities goal in the com3 munity, including—

4 (I) a program to prevent, mon5 itor, and treat children in the commu6 nity experiencing hunger or poor nu7 trition; or

8 (II) a program to provide infor9 mation to people in the community on

10 hunger, domestic hunger goals, and

11 hunger-free communities goals; and

12 (iv) establishing a program to provide

13 food and nutrition services as part of a co14 ordinated community-based comprehensive

15 service.

16 (d) HUNGER-FREE COMMUNITIES INFRASTRUCTURE

17 GRANTS.—

18 (1) DEFINITION OF ELIGIBLE ENTITY.—In this

19 subsection, the term ‘‘eligible entity’’ means an emer20 gency feeding organization (as defined in section

21 201A(4) of the Emergency Food Assistance Act of

22 1983 (7 U.S.C. 7501(4))).

23 (2) PROGRAM AUTHORIZED.—

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

25 not more than 45 percent of any funds made
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1 available under subsection (f) to make grants to

2 eligible entities to pay the Federal share of the

3 costs of an activity described in paragraph (4).

4 (B) FEDERAL SHARE.—The Federal share

5 of the cost of carrying out an activity under this

6 subsection shall not exceed 80 percent.

7 (3) APPLICATION.—

8 (A) IN GENERAL.—To receive a grant under

9 this subsection, an eligible entity shall submit an

10 application to the Secretary at the time and in

11 the manner and accompanied by any informa12 tion the Secretary may require.

13 (B) CONTENTS.—Each application sub14 mitted under subparagraph (A) shall—

15 (i) identify any activity described in

16 paragraph (4) that the grant will be used to

17 fund; and

18 (ii) describe the means by which an ac19 tivity identified under clause (i) will reduce

20 hunger in the community of the eligible en21 tity.

22 (C) PRIORITY.—In making grants under

23 this subsection, the Secretary shall give priority

24 to eligible entities the applications of which dem25 onstrate 2 or more of the following:
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1 (i) The eligible entity serves a commu2 nity in which the rates of food insecurity,

3 hunger, poverty, or unemployment are de4 monstrably higher than national average

5 rates.

6 (ii) The eligible entity serves a commu7 nity that has carried out long-term efforts

8 to reduce hunger in the community.

9 (iii) The eligible entity serves a com10 munity that provides public support for the

11 efforts of the eligible entity.

12 (iv) The eligible entity is committed to

13 achieving more than 1 hunger-free commu14 nities goal.

15 (4) USEOF FUNDS.—An eligible entity shall use

16 a grant received under this subsection for any fiscal

17 year to carry out activities of the eligible entity,

18 including—

19 (A) constructing, expanding, or repairing a

20 facility or equipment to support hunger relief

21 agencies in the community;

22 (B) assisting an emergency feeding organi23 zation in the community in obtaining locally24 produced produce and protein products; and
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1 (C) assisting an emergency feeding organi2 zation in the community to process and serve

3 wild game.

4 (e) REPORT.—If funds are made available under sub5 section (f), not later than September 30, 2012, the Secretary

6 shall submit to Congress a report describing—

7 (1) each grant made under this section,

8 including—

9 (A) a description of any activity funded by

10 such a grant; and

11 (B) the degree of success of each activity

12 funded by such a grant in achieving hunger-free

13 communities goals; and

14 (2) the degree of success of all activities funded

15 by grants under this section in achieving domestic

16 hunger goals.

17 (f) AUTHORIZATION OF APPROPRIATIONS.—There is

18 authorized to be appropriated to carry out this section

19 $50,000,000 for each of fiscal years 2008 through 2012.

20 SEC. 4406. STATE PERFORMANCE ON ENROLLING CHIL21 DREN RECEIVING PROGRAM BENEFITS FOR

22 FREE SCHOOL MEALS.

23 (a) IN GENERAL.—Not later than June 30 of each

24 year, the Secretary shall submit to the Committee on Agri25 culture of the House of Representatives and the Committee
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1 on Agriculture, Nutrition, and Forestry of the Senate a re2 port that assesses the effectiveness of each State in enrolling

3 school-aged children in households receiving program bene4 fits under the Food and Nutrition Act of 2007 (7 U.S.C.

5 2011 et seq.) (referred to in this section as ‘‘program bene6 fits’’) for free school meals using direct certification.

7 (b) SPECIFIC MEASURES.—The assessment of the Sec8 retary of the performance of each State shall include—

9 (1) an estimate of the number of school-aged chil10 dren, by State, who were members of a household re11 ceiving program benefits at any time in July, August,

12 or September of the prior year;

13 (2) an estimate of the number of school-aged chil14 dren, by State, who were directly certified as eligible

15 for free lunches under the Richard B. Russell Na16 tional School Lunch Act (42 U.S.C. 1751 et seq.),

17 based on receipt of program benefits, as of October 1

18 of the prior year; and

19 (3) an estimate of the number of school-aged chil20 dren, by State, who were members of a household re21 ceiving program benefits at any time in July, August,

22 or September of the prior year who were not can23 didates for direct certification because on October 1 of

24 the prior year the children attended a school oper25 ating under the special assistance provisions of sec-
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1 tion 11(a)(1) of the Richard B. Russell National

2 School Lunch Act (42 U.S.C. 1759a) that is not oper3 ating in a base year.

4 (c) PERFORMANCE INNOVATIONS.—The report of the

5 Secretary shall describe best practices from States with the

6 best performance or the most improved performance from

7 the previous year.

8 SEC. 4407. SENSE OF CONGRESS REGARDING NUTRITION

9 EDUCATION UNDER THE FOOD AND NUTRI10 TION PROGRAM.

11 (a) FINDINGS.—Congress finds that—

12 (1) nutrition education under the Food and Nu13 trition Act of 2007 (7 U.S.C. 2011 et seq.) plays an

14 essential role in improving the dietary and physical

15 activity practices of low-income people in the United

16 States, helping to reduce food insecurity, prevent obe17 sity, and reduce the risks of chronic disease;

18 (2) expert organizations, such as the Institute of

19 Medicine, indicate that dietary and physical activity

20 behavior change is more likely to result from the com21 bined application of public health approaches and

22 education than from education alone; and

23 (3) State programs are implementing nutrition

24 education using effective strategies, including direct

25 education, group activities, and social marketing.
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1 (b) SENSE OF CONGRESS.—It is the sense of Congress

2 that—

3 (1) the Secretary should support and encourage

4 effective interventions for nutrition education under

5 the Food and Nutrition Act of 2007 (7 U.S.C. 2011

6 et seq.), including coordination with public health ap7 proaches and traditional education, to increase the

8 likelihood that recipients of food and nutrition pro9 gram benefits and people who are potentially eligible

10 for those benefits will choose diets and physical activ11 ity practices consistent with the Dietary Guidelines

12 for Americans;

13 (2) to promote the most effective implementation

14 of publicly-funded programs, State nutrition edu15 cation activities under the Food and Nutrition Act of

16 2007 (7 U.S.C. 2011 et seq.)—

17 (A) should be coordinated with other feder18 ally-funded food assistance and public health

19 programs; and

20 (B) should leverage public/private partner21 ships to maximize the resources and impact of

22 the programs; and

23 (3) funds provided under the Food and Nutrition

24 Act of 2007 (7 U.S.C. 2011 et seq.) for nutrition edu25 cation should be used only for activities that promote
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1 diets and physical activity consistent with the Die2 tary Guidelines for Americans among—

3 (A) recipients of food and nutrition pro4 gram benefits; and

5 (B) people who are potentially eligible for

6 those benefits.

7 Subtitle B—Food Distribution

8 Program on Indian Reservations

9 SEC. 4501. ASSESSING THE NUTRITIONAL VALUE OF THE

10 FDPIR FOOD PACKAGE.

11 (a) IN GENERAL.—Section 4 of the Food and Nutri12 tion Act of 2007 (7 U.S.C. 2013) is amended by striking

13 subsection (b) and inserting the following:

14 ‘‘(b) FOOD DISTRIBUTION PROGRAM ON INDIAN RES15 ERVATIONS.—

16 ‘‘(1) IN GENERAL.—Distribution of commodities,

17 with or without the food and nutrition program, shall

18 be made whenever a request for concurrent or separate

19 food program operations, respectively, is made by a

20 tribal organization.

21 ‘‘(2) ADMINISTRATION.—

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graphs (B) and (C), in the event of distribution

24 on all or part of an Indian reservation, the ap25 propriate agency of the State government in the
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1 area involved shall be responsible for the dis2 tribution.

3 ‘‘(B) ADMINISTRATION BY TRIBAL ORGANI4 ZATION.—If the Secretary determines that a trib5 al organization is capable of effectively and effi6 ciently administering a distribution described in

7 paragraph (1), then the tribal organization shall

8 administer the distribution.

9 ‘‘(C) PROHIBITION.—The Secretary shall

10 not approve any plan for a distribution de11 scribed in paragraph (1) that permits any

12 household on any Indian reservation to partici13 pate simultaneously in the food and nutrition

14 program and the distribution of federally do15 nated foods.

16 ‘‘(3) DISQUALIFIED PARTICIPANTS.—An indi17 vidual who is disqualified from participation in the

18 food distribution program on Indian reservations

19 under this subsection is not eligible to participate in

20 the food and nutrition program under this Act.

21 ‘‘(4) ADMINISTRATIVECOSTS.—The Secretary is

22 authorized to pay such amounts for administrative

23 costs and distribution costs on Indian reservations as

24 the Secretary finds necessary for effective administra-
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1 tion of such distribution by a State agency or tribal

2 organization.

3 ‘‘(5) BISON MEAT.—Subject to the availability of

4 appropriations, the Secretary may purchase bison

5 meat for recipients of food distributed under this sub6 section, including bison meat from—

7 ‘‘(A) Native American bison producers; and

8 ‘‘(B) producer–owned cooperatives of bison

9 ranchers.

10 ‘‘(6) TRADITIONAL FOOD FUND.—

11 ‘‘(A) IN GENERAL.—Subject to the avail12 ability of appropriations, the Secretary shall es13 tablish a fund for use in purchasing traditional

14 foods for recipients of food distributed under this

15 subsection.

16 ‘‘(B) SURVEY.—In carrying out this para17 graph, the Secretary shall—

18 ‘‘(i) survey participants of the food

19 distribution program on Indian reserva20 tions established under this subsection to de21 termine which traditional foods are most

22 desired by those participants; and

23 ‘‘(ii) purchase or offer to purchase

24 those traditional foods that may be procured

25 cost-effectively.
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1 ‘‘(C) AUTHORIZATION OF APPROPRIA2 TIONS.—There is authorized to be appropriated

3 to the Secretary to carry out this paragraph

4 $5,000,000 for each of fiscal years 2008 through

5 2012.’’.

6 (b) FDPIR FOOD PACKAGE.—Not later than 180 days

7 after the date of enactment of this Act, the Secretary of Ag8 riculture shall submit to the Committee on Agriculture of

9 the House of Representatives and the Committee on Agri10 culture, Nutrition, and Forestry of the Senate a report that

11 describes—

12 (1) how the Secretary derives the process for de13 termining the food package under the food distribu14 tion program on Indian reservations established

15 under section 4(b) of the Food and Nutrition Act of

16 2007 (7 U.S.C. 2013(b)) (referred to in this subsection

17 as the ‘‘food package’’);

18 (2) the extent to which the food package—

19 (A) addresses the nutritional needs of low20 income Americans compared to the food and nu21 trition program, particularly for very low-in22 come households;

23 (B) conforms (or fails to conform) to the

24 2005 Dietary Guidelines for Americans pub25 lished under section 301 of the National Nutri-
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1 tion Monitoring and Related Research Act of

2 1990 (7 U.S.C. 5341);

3 (C) addresses (or fails to address) the nutri4 tional and health challenges that are specific to

5 Native Americans; and

6 (D) is limited by distribution costs or chal7 lenges of infrastructure;

8 (3) any plans of the Secretary to revise and up9 date the food package to conform with the most recent

10 Dietary Guidelines for Americans, including any

11 costs associated with the planned changes; and

12 (4) if the Secretary does not plan changes to the

13 food package, the rationale of the Secretary for retain14 ing the food package.

15 Subtitle C—Administration of

16 Emergency Food Assistance Pro17 gram and Commodity Supple18 mental Food Program

19 SEC. 4601. EMERGENCY FOOD ASSISTANCE.

20 (a) STATE PLAN.—Section 202A of the Emergency

21 Food Assistance Act of 1983 (7 U.S.C. 7503) is amended

22 by striking subsection (a) and inserting the following:

23 ‘‘(a) PLANS.—To receive commodities under this Act,

24 every 3 years, a State shall submit to the Secretary an oper-
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1 ation and administration plan for the provision of assist2 ance under this Act.’’.

3 (b) DONATED WILD GAME.—Section 204(a)(1) of the

4 Emergency Food Assistance Act of 1983 (7 U.S.C.

5 7508(a)(1)) is amended in the first sentence by inserting

6 ‘‘and donated wild game’’ before the period at the end.

7 SEC. 4602. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

8 Section 5 of the Agriculture and Consumer Protection

9 Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is

10 amended by striking subsection (g) and inserting the fol11 lowing:

12 ‘‘(g) PROHIBITION.—Notwithstanding any other provi13 sion of law (including regulations), the Secretary may not

14 require a State or local agency to prioritize assistance to

15 a particular group of individuals that are—

16 ‘‘(1) low-income persons aged 60 and older; or

17 ‘‘(2) women, infants, and children.’’.

18 Subtitle D—Senior Farmers’ Market

19 Nutrition Program

20 SEC. 4701. EXCLUSION OF BENEFITS IN DETERMINING ELI21 GIBILITY FOR OTHER PROGRAMS.

22 (a) IN GENERAL.—Section 4402 of the Farm Security

23 and Rural Investment Act of 2002 (7 U.S.C. 3007) is

24 amended—
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1 (1) in subsection (a), by striking ‘‘each of fiscal

2 years 2003 through 2007’’ and inserting ‘‘fiscal year

3 2008 and each fiscal year thereafter’’;

4 (2) by redesignating subsections (b) and (c) as

5 subsections (c) and (e), respectively;

6 (3) by inserting after subsection (a) the fol7 lowing:

8 ‘‘(b) ADDITIONAL FUNDS.—In addition to the amounts

9 made available under subsection (a), for fiscal year 2008

10 and each fiscal year thereafter, of the funds of the Com11 modity Credit Corporation, the Secretary of Agriculture

12 shall use $10,000,000 to expand the program established

13 under this section.’’; and

14 (4) by inserting after subsection (c) (as redesig15 nated by paragraph (2)) the following:

16 ‘‘(d) EXCLUSION OF BENEFITS IN DETERMINING ELI17 GIBILITY FOR OTHER PROGRAMS.—The value of any benefit

18 provided under the program under this section shall not

19 be taken into consideration in determining the eligibility

20 of an individual for any other Federal or State assistance

21 program.’’.

22 (b) EFFECTIVE DATE.—The amendments made by sub23 section (a) take effect on the date of enactment of this Act.
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1 SEC. 4702. PROHIBITION ON COLLECTION OF SALES TAX.

2 Section 4402 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 3007) is amended by inserting

4 after subsection (d) (as added by section 4701(a)(4)) the fol5 lowing:

6 ‘‘(e) PROHIBITION ON COLLECTION OF SALES TAX.—

7 A State that collects any sales tax on the purchase of food

8 using a benefit provided under the program under this sec9 tion shall not be eligible to participate in the program.’’.

10 Subtitle E—Reauthorization of

11 Federal Food Assistance Programs

12 SEC. 4801. FOOD AND NUTRITION PROGRAM.

13 (a) GRANTS FOR SIMPLE APPLICATION AND ELIGI14 BILITY DETERMINATION SYSTEMS AND IMPROVED ACCESS

15 TO BENEFITS.—Section 11(t)(1) of the Food and Nutrition

16 Act of 2007 (7 U.S.C. 2020(t)(1)) is amended by striking

17 ‘‘For each of fiscal years 2003 through 2007’’ and inserting

18 ‘‘For fiscal year 2008 and each fiscal year thereafter’’.

19 (b) FUNDING OF EMPLOYMENT AND TRAINING PRO20 GRAMS.—Section 16(h)(1) of the Food and Nutrition Act

21 of 2007 (7 U.S.C. 2025(h)(1)) is amended—

22 (1) in subparagraph (A)(vii), by striking ‘‘for

23 each of fiscal years 2002 through 2007’’ and inserting

24 ‘‘for fiscal year 2008 and each fiscal year thereafter’’;

25 and
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1 (2) in subparagraph (E)(i), by striking ‘‘for each

2 of fiscal years 2002 through 2007’’ and inserting ‘‘for

3 fiscal year 2008 and each fiscal year thereafter’’.

4 (c) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE

5 COSTS.—Section 16(k)(3) of the Food and Nutrition Act

6 of 2007 (7 U.S.C. 2025(k)(3)) is amended—

7 (1) in the first sentence of subparagraph (A), by

8 striking ‘‘for each of fiscal years 1999 through 2007’’

9 and inserting ‘‘for fiscal year 2008 and each fiscal

10 year thereafter’’; and

11 (2) in subparagraph (B)(ii), by striking

12 ‘‘through fiscal year 2007’’.

13 (d) CASH PAYMENT PILOT PROJECTS.—Section

14 17(b)(1)(B)(vi) of the Food and Nutrition Act of 2007 (7

15 U.S.C. 2026(b)(1)(B(vi)) is amended by striking ‘‘through

16 October 1, 2007’’.

17 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

18 18(a)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.

19 2027(a)(1)) is amended in the first sentence by striking ‘‘for

20 each of the fiscal years 2003 through 2007’’ and inserting

21 ‘‘for fiscal year 2008 and each fiscal year thereafter’’.

22 (f) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO

23 AND AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of the

24 Food and Nutrition Act of 2007 (7 U.S.C.

25 2028(a)(2)(A)(ii)) by striking ‘‘for each of fiscal years 2004
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1 through 2007’’ and inserting ‘‘for fiscal year 2008 and each

2 fiscal year thereafter’’.

3 (g) ASSISTANCEFOR COMMUNITY FOOD PROJECTS.—

4 Section 25 of the Food and Nutrition Act of 2007 (7 U.S.C.

5 2034) is amended—

6 (1) in subsection (b)(2), by striking subpara7 graph (B) and inserting the following:

8 ‘‘(B) $10,000,000 for each of fiscal years

9 2008 through 2012.’’; and

10 (2) in subsection (h)(4), by striking ‘‘2007’’ and

11 inserting ‘‘2012’’.

12 SEC. 4802. COMMODITY DISTRIBUTION.

13 (a) EMERGENCY FOOD ASSISTANCE.—Section

14 204(a)(1) of the Emergency Food Assistance Act of 1983

15 (7 U.S.C. 7508(a)(1)) is amended in the first sentence by

16 striking ‘‘$60,000,000 for each of the fiscal years 2003

17 through 2007’’ and inserting ‘‘$100,000,000 for fiscal year

18 2008 and each fiscal year thereafter’’.

19 (b) COMMODITY DISTRIBUTION PROGRAM.—Section

20 4(a) of the Agriculture and Consumer Protection Act of

21 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended

22 in the first sentence by striking ‘‘years 1991 through 2007’’

23 and inserting ‘‘year 2008 and each fiscal year thereafter’’.

24 (c) COMMODITY SUPPLEMENTAL FOOD PROGRAM.—

25 Section 5 of the Agriculture and Consumer Protection Act
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1 of 1973 (7 U.S.C. 612c note; Public Law 93–86) is

2 amended—

3 (1) in subsection (a)—

4 (A) in paragraph (1), by striking ‘‘each of

5 fiscal years 2003 through 2007’’ and inserting

6 ‘‘fiscal year 2008 and each fiscal year there7 after’’; and

8 (B) in paragraph (2)(B), by striking ‘‘(B)

9 FISCAL YEARS 2004 THROUGH 2007.—’’ and all

10 that follows through ‘‘2007’’ and inserting the

11 following:

12 ‘‘(B) SUBSEQUENT FISCAL YEARS.—For fis13 cal year 2004 and each subsequent fiscal year’’;

14 (2) in subsection (d)(2), by striking ‘‘each of the

15 fiscal years 1991 through 2007’’ and inserting ‘‘fiscal

16 year 2008 and each fiscal year thereafter’’; and

17 (3) in subsection (g)—

18 (A) by striking ‘‘If a local’’ and inserting

19 the following:

20 ‘‘(1) IN GENERAL.—If a local’’; and

21 (B) by adding at the end the following:

22 ‘‘(2) STATEOPTION.—Subject to a determination

23 by the Secretary that annual appropriations have en24 abled every State seeking to participate in the com25 modity supplemental food program to participate in
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1 that program, a State may serve low-income persons

2 aged 60 and older that have a household income that

3 is not more than 185 percent of the most recent an4 nual Federal Poverty Income Guidelines published by

5 the Department of Health and Human Services, if—

6 ‘‘(A) the State has submitted to the Sec7 retary justification for that service; and

8 ‘‘(B) the Secretary has approved the request

9 of the State.’’.

10 (d) DISTRIBUTION OF SURPLUS COMMODITIES TO

11 SPECIAL NUTRITION PROJECTS.—Section 1114(a)(2)(A) of

12 the Agriculture and Food Act of 1981 (7 U.S.C.

13 1431e(2)(A)) is amended in the first sentence by striking

14 ‘‘2007’’ and inserting ‘‘2012’’.

15 SEC. 4803. NUTRITION INFORMATION AND AWARENESS

16 PILOT PROGRAM.

17 Section 4403(f) of the Farm Security and Rural In18 vestment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–

19 171) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

20 Subtitle F—Miscellaneous

21 SEC. 4901. PERIODIC SURVEYS OF FOODS PURCHASED BY

22 SCHOOL FOOD AUTHORITIES.

23 Section 6 of the Richard B. Russell National School

24 Lunch Act (42 U.S.C. 1755) is amended by adding at the

25 end the following:
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1 ‘‘(f) PERIODIC SURVEYS OF FOODS PURCHASED BY

2 SCHOOL FOOD AUTHORITIES.—

3 ‘‘(1) IN GENERAL.—For fiscal year 2008 and

4 every fifth fiscal year thereafter, the Secretary shall

5 carry out a nationally representative survey of the

6 foods purchased during the most recent school year for

7 which data is available by school authorities partici8 pating in the national school lunch program.

9 ‘‘(2) REPORT.—On completion of each survey,

10 the Secretary shall submit to Congress a report that

11 describes the results of the survey.

12 ‘‘(3) FUNDING.—Of the funds made available

13 under section 3, the Secretary shall use to carry out

14 this subsection not more than $3,000,000 for fiscal

15 year 2008 and every fifth fiscal year thereafter.’’.

16 SEC. 4902. PURCHASES OF LOCALLY GROWN FRUITS AND

17 VEGETABLES.

18 Section 9(j) of the Richard B. Russell National School

19 Lunch Act (42 U.S.C. 1758(j)) is amended to read as fol20 lows:

21 ‘‘(j) PURCHASES OF LOCALLY GROWN FRUITS AND

22 VEGETABLES.—The Secretary shall—

23 ‘‘(1) encourage institutions receiving funds under

24 this Act and the Child Nutrition Act of 1966 (42

25 U.S.C. 1771 et seq.) to purchase locally grown fruits
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1 and vegetables, to the maximum extent practicable

2 and appropriate;

3 ‘‘(2) advise institutions participating in a pro4 gram described in paragraph (1) of the policy de5 scribed in that paragraph and post information con6 cerning the policy on the website maintained by the

7 Secretary; and

8 ‘‘(3) allow institutions receiving funds under this

9 Act and the Child Nutrition Act of 1966 (42 U.S.C.

10 1771 et seq.), including the Department of Defense, to

11 use a geographic preference for the procurement of lo12 cally grown fruits and vegetables.’’.

13 SEC. 4903. HEALTHY FOOD EDUCATION AND PROGRAM

14 REPLICABILITY.

15 Section 18(i) of the Richard B. Russell National

16 School Lunch Act (42 U.S.C. 1769(i)) is amended—

17 (1) in paragraph (1)(C), by inserting ‘‘promotes

18 healthy food education in the school curriculum and’’

19 before ‘‘incorporates’’;

20 (2) by redesignating paragraph (2) as para21 graph (4);

22 (3) by inserting after paragraph (1) the fol23 lowing:
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1 ‘‘(2) ADMINISTRATION.—In providing grants

2 under paragraph (1), the Secretary shall give priority

3 to projects that can be replicated in schools.

4 ‘‘(3) PILOT PROGRAM FOR HIGH-POVERTY

5 SCHOOLS.—

6 ‘‘(A) DEFINITIONS.—In this paragraph:

7 ‘‘(i) ELIGIBLEPROGRAM.—The term

8 ‘eligible program’ means—

9 ‘‘(I) a school-based program with

10 hands-on vegetable gardening and nu11 trition education that is incorporated

12 into the curriculum for 1 or more

13 grades at 2 or more eligible schools; or

14 ‘‘(II) a community-based summer

15 program with hands-on vegetable gar16 dening and nutrition education that is

17 part of, or coordinated with, a summer

18 enrichment program at 2 or more eli19 gible schools.

20 ‘‘(ii) ELIGIBLESCHOOL.—The term ‘el21 igible school’ means a public school, at least

22 50 percent of the students of which are eligi23 ble for free or reduced price meals under

24 this Act.
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1 ‘‘(B) ESTABLISHMENT.—The Secretary

2 shall carry out a pilot program under which the

3 Secretary shall provide to nonprofit organiza4 tions or public entities in not more than 5 States

5 grants to develop and run, through eligible pro6 grams, community gardens at eligible schools in

7 the States that would—

8 ‘‘(i) be planted, cared for, and har9 vested by students at the eligible schools;

10 and

11 ‘‘(ii) teach the students participating

12 in the community gardens about agri13 culture, sound farming practices, and diet.

14 ‘‘(C) PRIORITY STATES.—Of the States pro15 vided a grant under this paragraph—

16 ‘‘(i) at least 1 State shall be among the

17 15 largest States, as determined by the Sec18 retary;

19 ‘‘(ii) at least 1 State shall be among

20 the 16th to 30th largest States, as deter21 mined by the Secretary; and

22 ‘‘(iii) at least 1 State shall be a State

23 that is not described in clause (i) or (ii).
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1 ‘‘(D) USEOF PRODUCE.—Produce from a

2 community garden provided a grant under this

3 paragraph may be—

4 ‘‘(i) used to supplement food provided

5 at the eligible school;

6 ‘‘(ii) distributed to students to bring

7 home to the families of the students; or

8 ‘‘(iii) donated to a local food bank or

9 senior center nutrition program.

10 ‘‘(E) NO COST-SHARING REQUIREMENT.—A

11 nonprofit organization or public entity that re12 ceives a grant under this paragraph shall not be

13 required to share the cost of carrying out the ac14 tivities assisted under this paragraph.

15 ‘‘(F) EVALUATION.—A nonprofit organiza16 tion or public entity that receives a grant under

17 this paragraph shall be required to cooperate in

18 an evaluation in accordance with paragraph

19 (1)(H).

20 ‘‘(G) AUTHORIZATION OF APPROPRIA21 TIONS.—There is authorized to be appropriated

22 to carry out this paragraph $10,000,000.’’; and

23 (4) in paragraph (4) (as redesignated by para24 graph (2)), by inserting ‘‘(other than paragraph (3))’’

25 after ‘‘this subsection’’.
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1 SEC. 4904. FRESH FRUIT AND VEGETABLE PROGRAM.

2 (a) IN GENERAL.—The Richard B. Russell National

3 School Lunch Act is amended by inserting after section 18

4 (42 U.S.C. 1769) the following:

5 ‘‘SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.

6 ‘‘(a) IN GENERAL.—For the school year beginning

7 July 2008 and each subsequent school year, the Secretary

8 shall provide grants to States to carry out a program to

9 make free fresh fruits and vegetables available in elementary

10 schools (referred to in this section as the ‘program’).

11 ‘‘(b) PROGRAM.—A school participating in the pro12 gram shall make free fresh fruits and vegetables available

13 to students throughout the school day (or at such other times

14 as are considered appropriate by the Secretary) in 1 or

15 more areas designated by the school.

16 ‘‘(c) FUNDING TO STATES.—

17 ‘‘(1) MINIMUM GRANT.—The Secretary shall pro18 vide to each of the 50 States and the District of Co19 lumbia an annual grant in an amount equal to 1

20 percent of the funds made available for a fiscal year

21 to carry out the program.

22 ‘‘(2) ADDITIONAL FUNDING.—Of the funds re23 maining after grants are made under paragraph (1),

24 the Secretary shall allocate additional funds to each

25 State that is operating a school lunch program under

26 section 4 based on the proportion that—
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1 ‘‘(A) the population of the State; bears to

2 ‘‘(B) the population of the United States.

3 ‘‘(d) SELECTION OF SCHOOLS.—

4 ‘‘(1) IN GENERAL.—In selecting schools to par5 ticipate in the program, each State shall—

6 ‘‘(A) ensure that each school chosen to par7 ticipate in the program is a school—

8 ‘‘(i) except as provided in paragraph

9 (2), in which not less than 50 percent of the

10 students are eligible for free or reduced price

11 meals under this Act; and

12 ‘‘(ii) that submits an application in

13 accordance with subparagraph (C); and

14 ‘‘(B) to the maximum extent practicable,

15 give the highest priority to schools with the high16 est proportion of children who are eligible for

17 free or reduced price meals under this Act;

18 ‘‘(C) solicit applications from interested

19 schools that include—

20 ‘‘(i) information pertaining to the per21 centage of students enrolled in the school

22 submitting the application who are eligible

23 for free or reduced price school lunches

24 under this Act;
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1 ‘‘(ii) a certification of support for par2 ticipation in the program signed by the

3 school food manager, the school principal,

4 and the district superintendent (or equiva5 lent positions, as determined by the school);

6 and

7 ‘‘(iii) such other information as may

8 be requested by the Secretary;

9 ‘‘(D) give priority to schools that submit a

10 plan for implementation of the program that in11 cludes a partnership with 1 or more entities that

12 provide non-Federal resources (including entities

13 representing the fruit and vegetable industry)

14 for—

15 ‘‘(i) the acquisition, handling, pro16 motion, or distribution of fresh and dried

17 fruits and fresh vegetables; or

18 ‘‘(ii) other support that contributes to

19 the purposes of the program;

20 ‘‘(E) give priority to schools that provide

21 evidence of efforts to integrate activities carried

22 out under this section with other efforts to pro23 mote sound health and nutrition, reduce over24 weight and obesity, or promote physical activity;

25 and
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1 ‘‘(F) ensure that each school selected is an

2 elementary school.

3 ‘‘(2) EXCEPTION.—Clause (i) of paragraph

4 (1)(A) shall not apply to a State if the State does not

5 have a sufficient number of schools that meet the re6 quirement of that clause.

7 ‘‘(3) CONSORTIA.—A consortia of schools may

8 apply for funding under this section.

9 ‘‘(e) NOTICEOF AVAILABILITY.—To be eligible to par10 ticipate in the program, a school shall widely publicize

11 within the school the availability of free fresh fruits and

12 vegetables under the program.

13 ‘‘(f) PER-STUDENT GRANT.—The per-student grant

14 provided to a school under this section shall be—

15 ‘‘(1) determined by a State agency; and

16 ‘‘(2) not less than $50, nor more than $75, annu17 ally.

18 ‘‘(g) LIMITATION.—To the maximum extent prac19 ticable, each State agency shall ensure that in making

20 available to students the fruits and vegetables provided

21 under this section, schools participating in the program

22 offer the fruits and vegetables separately from meals other23 wise provided at the school under this Act or the Child Nu24 trition Act of 1966 (42 U.S.C. 1771 et seq.).
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1 ‘‘(h) SCHOOLS ON INDIAN RESERVATIONS.—The Sec2 retary shall ensure that not less than 100 of the schools cho3 sen to participate in the program are schools operated on

4 Indian reservations.

5 ‘‘(i) EVALUATION AND REPORTS.—

6 ‘‘(1) IN GENERAL.—The Secretary shall conduct

7 an evaluation of the program, including a determina8 tion as to whether children experienced, as a result of

9 participating in the program—

10 ‘‘(A) increased consumption of fruits and

11 vegetables;

12 ‘‘(B) other dietary changes, such as de13 creased consumption of less nutritious foods; and

14 ‘‘(C) such other outcomes as are considered

15 appropriate by the Secretary.

16 ‘‘(2) REPORT.—Not later than September 30,

17 2011, the Secretary shall submit to the Committee on

18 Education and Labor of the House of Representatives

19 and the Committee on Agriculture, Nutrition, and

20 Forestry of the Senate, a report that describes the re21 sults of the evaluation under paragraph (1).

22 ‘‘(j) FUNDING.—

23 ‘‘(1) IN GENERAL.—Out of any funds in the

24 Treasury not otherwise appropriated, the Secretary of
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1 the Treasury shall transfer to the Secretary to carry

2 out this section—

3 ‘‘(A) on October 1, 2007, $225,000,000; and

4 ‘‘(B) on October 1, 2008, and each October

5 1 thereafter, the amount made available for the

6 preceding fiscal year, as adjusted to reflect

7 changes for the 12-month period ending the pre8 ceding June 30 in the Consumer Price Index for

9 All Urban Consumers published by the Bureau of

10 Labor Statistics of the Department of Labor, for

11 items other than food.

12 ‘‘(2) EVALUATION FUNDING.—On October 1,

13 2007, out of any funds in the Treasury not otherwise

14 appropriated, the Secretary of the Treasury shall

15 transfer to the Secretary to carry out the evaluation

16 required under subsection (i), $3,000,000, to remain

17 available until expended.

18 ‘‘(3) RECEIPT AND ACCEPTANCE.—The Secretary

19 shall be entitled to receive, shall accept, and shall use

20 to carry out this section any funds transferred for

21 that purpose, without further appropriation.

22 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—In

23 addition to any other amounts made available to

24 carry out this section, there are authorized to be ap-
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1 propriated such sums as are necessary to expand the

2 program established under this section.

3 ‘‘(5) ADMINISTRATIVECOSTS.—Of funds made

4 available to carry out this section for a fiscal year,

5 the Secretary may use not more than $500,000 for the

6 administrative costs of carrying out the program.

7 ‘‘(6) REALLOCATION.—

8 ‘‘(A) AMONG STATES.—The Secretary may

9 reallocate any amounts made available to carry

10 out this section that are not obligated or ex11 pended by a date determined by the Secretary.

12 ‘‘(B) WITHIN STATES.—A State that re13 ceives a grant under this section may reallocate

14 any amounts made available under the grant

15 that are not obligated or expended by a date de16 termined by the Secretary.’’.

17 (b) CONFORMING AMENDMENTS.—Section 18 of the

18 Richard B. Russell National School Lunch Act (42 U.S.C.

19 1769) is amended—

20 (1) by striking subsection (g); and

21 (2) by redesignating subsections (h) through (k)

22 as subsections (g) through (j), respectively.
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1 SEC. 4905. TEAM NUTRITION NETWORK.

2 Section 19 of the Child Nutrition Act of 1966 (42

3 U.S.C. 1788) is amended by striking subsection (l) and in4 serting the following:

5 ‘‘(l) FUNDING.—

6 ‘‘(1) MANDATORY FUNDING.—

7 ‘‘(A) IN GENERAL.—On October 1, 2008,

8 and on each October 1 thereafter through October

9 1, 2011, out of any funds in the Treasury not

10 otherwise appropriated, the Secretary of the

11 Treasury shall transfer to the Secretary to carry

12 out this section $3,000,000, to remain available

13 until expended.

14 ‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec15 retary shall be entitled to receive, shall accept,

16 and shall use to carry out this section the funds

17 transferred under subparagraph (A), without

18 further appropriation.

19 ‘‘(C) NUTRITIONAL HEALTH OF SCHOOL

20 CHILDREN.—In allocating funds made available

21 under this paragraph, the Secretary shall give

22 priority to carrying out subsections (a) through

23 (g).

24 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In

25 addition to the amounts made available under para-
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1 graph (1), there are authorized to be appropriated

2 such sums as are necessary to carry out this section.’’.

3 SEC. 4906. BUY AMERICAN REQUIREMENTS.

4 (a) FINDINGS.—Congress finds the following:

5 (1) Federal law requires that commodities and

6 products purchased with Federal funds be, to the ex7 tent practicable, of domestic origin.

8 (2) Federal Buy American statutory require9 ments seek to ensure that purchases made with Fed10 eral funds benefit domestic producers.

11 (3) The Richard B. Russell National School

12 Lunch Act (42 U.S.C. 1751 et seq.) requires the use

13 of domestic food products for all meals served under

14 the program, including foods products for all meals

15 served under the program, including foods products

16 purchased with local funds.

17 (b) BUY AMERICAN STATUTORY REQUIREMENTS.—The

18 Department of Agriculture should undertake training, guid19 ance, and enforcement of the various current Buy American

20 statutory requirements and regulations, including those of

21 the Richard B. Russell National School Lunch Act (42

22 U.S.C. 1751 et seq.) and the Department of Defense fresh

23 fruit and vegetable distribution program.
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1 SEC. 4907. MINIMUM PURCHASES OF FRUITS, VEGETABLES,

2 AND NUTS THROUGH SECTION 32 TO SUP3 PORT DOMESTIC NUTRITION ASSISTANCE

4 PROGRAMS.

5 (a) MINIMUM FUNDING FOR PURCHASES OF FRUITS,

6 VEGETABLES, AND NUTS.—In lieu of the purchases of

7 fruits, vegetables, and nuts required by section 10603 of the

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

9 612c–4), the Secretary shall purchase fruits, vegetables, and

10 nuts for the purpose of providing nutritious foods for use

11 in domestic nutrition assistance programs, using, of the

12 funds made available under section 32 of the Act of August

13 24, 1935 (7 U.S.C. 612c), the following amounts:

14 (1) $390,000,000 for fiscal year 2008.

15 (2) $393,000,000 for fiscal year 2009.

16 (3) $399,000,000 for fiscal year 2010.

17 (4) $403,000,000 for fiscal year 2011.

18 (5) $406,000,000 for fiscal year 2012 and each

19 fiscal year thereafter.

20 (b) FORM OF PURCHASES.—Fruits, vegetables, and

21 nuts may be purchased under this section in frozen, canned,

22 dried, or fresh form.

23 (c) VALUE-ADDED PRODUCTS.—The Secretary may

24 offer value-added products containing fruits, vegetables, or

25 nuts under this section, taking into consideration—
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1 (1) whether demand exists for the value-added

2 product; and

3 (2) the interests of entities that receive fruits,

4 vegetables, and nuts under this section.

5 SEC. 4908. AGRICULTURAL POLICY AND PUBLIC HEALTH.

6 (a) IN GENERAL.—The Comptroller General of the

7 United States shall conduct a study to assess whether the

8 agricultural policies of the United States have an impact

9 on health, nutrition, overweight and obesity, and diet-re10 lated chronic disease.

11 (b) REQUIREMENTS.—In conducting the study under

12 subsection (a), the Comptroller General of the United States

13 shall—

14 (1) review, and evaluate the methodological rigor

15 of, existing literature and studies relating to the sub16 jects of the study required under subsection (a);

17 (2) summarize the existing literature and ex18 plain the extent, if any, to which the literature shows

19 a clear association or causal relationship between

20 United States agricultural policy and health, nutri21 tion, overweight and obesity, and diet-related chronic

22 diseases; and

23 (3) if the existing literature shows that there is

24 a relationship between United States agricultural pol25 icy and health, nutrition, overweight and obesity, and
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1 diet-related chronic diseases, make recommendations

2 to guide or revise Federal agricultural policies to im3 prove health and reduce obesity and diet-related

4 chronic disease.

5 (c) REPORT.—Not later than 18 months after the date

6 of enactment of this section, the Comptroller General of the

7 United States shall submit to the Committee on Agriculture

8 of the House of Representatives and the Committee on Agri9 culture, Nutrition, and Forestry of the Senate a report that

10 describes the results of the study conducted under this sec11 tion.

12 SEC. 4909. CONFORMING AMENDMENTS TO RENAMING OF

13 FOOD STAMP PROGRAM.

14 (a) IN GENERAL.—

15 (1) Section 4 of the Food and Nutrition Act of

16 2007 (7 U.S.C. 2013) is amended in the section head17 ing by striking ‘‘FOOD STAMP PROGRAM’’ and insert18 ing ‘‘FOOD AND NUTRITION PROGRAM’’.

19 (2) Section 5(h)(2)(A) of the Food and Nutrition

20 Act of 2007 (7 U.S.C. 2014(h)(2)(A)) is amended by

21 striking ‘‘Food Stamp Disaster Task Force’’ and in22 serting ‘‘Food and Nutrition Disaster Task Force’’.

23 (3) Section 6 of the Food and Nutrition Act of

24 2007 (7 U.S.C. 2015) is amended—
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1 (A) in subsection (d)(3), by striking ‘‘eligi2 ble for food stamps’’ and inserting ‘‘eligible to re3 ceive food and nutrition assistance’’;

4 (B) in subsection (g), by striking ‘‘food

5 stamps’’ and inserting ‘‘food and nutrition as6 sistance’’;

7 (C) in subsection (j), in the subsection head8 ing, by striking ‘‘FOOD STAMP’’ and inserting

9 ‘‘FOOD AND NUTRITION’’; and

10 (D) in subsection (o)—

11 (i) in paragraph (2), by striking ‘‘food

12 stamp benefits’’ and inserting ‘‘food and

13 nutrition assistance’’; and

14 (ii) in paragraph (6)—

15 (I) in subparagraph (A)—

16 (aa) in clause (i), by striking

17 ‘‘food stamps’’ and inserting ‘‘food

18 and nutrition assistance’’; and

19 (bb) in clause (ii)—

20 (AA) in the matter pre21 ceding subclause (I), by strik22 ing ‘‘a food stamp recipient’’

23 and inserting ‘‘a member of

24 a household that receives food
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1 and nutrition assistance’’;

2 and

3 (BB) by striking ‘‘food

4 stamp benefits’’ each place it

5 appears and inserting ‘‘food

6 and nutrition assistance’’;

7 and

8 (II) in subparagraphs (D) and

9 (E), by striking ‘‘food stamp recipi10 ents’’ each place it appears and insert11 ing ‘‘members of households that re12 ceive food and nutrition assistance’’.

13 (4) Section 7 of the Food and Nutrition Act of

14 2007 (7 U.S.C. 2016) (as amended by section

15 4202(a)(11)) is amended—

16 (A) in subsection (h)—

17 (i) in paragraph (3)(B)(ii), by striking

18 ‘‘food stamp households’’ and inserting

19 ‘‘households receiving food and nutrition as20 sistance’’; and

21 (ii) in paragraph (7), by striking

22 ‘‘food stamp issuance’’ and inserting ‘‘food

23 and nutrition assistance issuance’’; and

24 (B) in subsection (j)—
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1 (i) in paragraph (2), by striking ‘‘food

2 stamp benefits’’ and inserting ‘‘food and

3 nutrition assistance benefits’’; and

4 (ii) in paragraph (3), by striking

5 ‘‘food stamp retail’’ and inserting ‘‘food and

6 nutrition assistance retail’’.

7 (5) Section 9(b)(1) of that Food and Nutrition

8 Act of 2007 (7 U.S.C. 2018(b)(1)) is amended by

9 striking ‘‘food stamp households’’ and inserting

10 ‘‘households that receive food and nutrition assist11 ance’’.

12 (6) Section 11 of the Food and Nutrition Act of

13 2007 (7 U.S.C. 2020) (as amended by section

14 4202(b)(9)(B)(III)) is amended—

15 (A) in subsection (e)—

16 (i) in paragraph (2)—

17 (I) in subparagraph (A), by strik18 ing ‘‘food stamp offices’’ and inserting

19 ‘‘food and nutrition assistance offices’’;

20 and

21 (II) in subparagraph (B)—

22 (aa) in clause (iii), by strik23 ing ‘‘food stamp office’’ and in24 serting ‘‘food and nutrition assist25 ance office’’;
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1 (bb) in clause (v)(II), by

2 striking ‘‘food stamps’’ and insert3 ing ‘‘food and nutrition assist4 ance’’; and

5 (cc) in clause (vii), by strik6 ing ‘‘food stamp offices’’ and in7 serting ‘‘food and nutrition assist8 ance offices’’;

9 (ii) in paragraph (14), by striking

10 ‘‘food stamps’’ and inserting ‘‘food and nu11 trition assistance’’;

12 (iii) in paragraph (15), by striking

13 ‘‘food stamps’’ and inserting ‘‘food and nu14 trition assistance’’; and

15 (iv) in paragraph (23)—

16 (I) in the matter preceding sub17 paragraph (A), by striking ‘‘Simplified

18 Food Stamp Program’’ and inserting

19 ‘‘Simplified Food and Nutrition As20 sistance Program’’; and

21 (II) in subparagraph (A), by

22 striking ‘‘food stamp benefits’’ and in23 serting ‘‘food and nutrition assist24 ance’’;
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1 (B) in subsection (k), by striking ‘‘may

2 issue, upon request by the State agency, food

3 stamps’’ and inserting ‘‘may provide, on request

4 by the State agency, food and nutrition assist5 ance’’;

6 (C) in subsection (l), by striking ‘‘food

7 stamp participation’’ and inserting ‘‘food and

8 nutrition program participation’’;

9 (D) in subsections (q) and (r), in the sub10 section headings, by striking ‘‘FOOD STAMPS’’

11 each place it appears and inserting ‘‘FOOD AND

12 NUTRITION ASSISTANCE’’;

13 (E) in subsection (s), by striking ‘‘food

14 stamp benefits’’ each place it appears and insert15 ing ‘‘food and nutrition assistance’’; and

16 (F) in subsection (t)(1)—

17 (i) in subparagraph (A), by striking

18 ‘‘food stamp application’’ and inserting

19 ‘‘food and nutrition assistance application’’;

20 and

21 (ii) in subparagraph (B), by striking

22 ‘‘food stamp benefits’’ and inserting ‘‘food

23 and nutrition assistance’’.

24 (7) Section 14(b) of the Food and Nutrition Act

25 of 2007 (7 U.S.C. 2023(b)) is amended by striking
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1 ‘‘food stamp allotments’’ and inserting ‘‘food and nu2 trition assistance’’.

3 (8) Section 16 of the Food and Nutrition Act of

4 2007 (7 U.S.C. 2025) is amended—

5 (A) in subsection (a)(4), by striking ‘‘food

6 stamp informational activities’’ and inserting

7 ‘‘informational activities relating to the food and

8 nutrition program’’;

9 (B) in subsection (c)(9)(C), by striking

10 ‘‘food stamp caseload’’ and inserting ‘‘the case11 load under the food and nutrition program’’;

12 and

13 (C) in subsection (h)(1)(E)(i), by striking

14 ‘‘food stamp recipients’’ and inserting ‘‘house15 holds receiving food and nutrition assistance’’.

16 (9) Section 17 of the Food and Nutrition Act of

17 2007 (7 U.S.C. 2026) is amended—

18 (A) in subsection (a)(2), by striking ‘‘food

19 stamp benefits’’ each place it appears and insert20 ing ‘‘food and nutrition assistance benefits’’;

21 (B) in subsection (b)—

22 (i) in paragraph (1)—

23 (I) in subparagraph (A), by strik24 ing ‘‘food stamp benefits’’ and insert-
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1 ing ‘‘food and nutrition assistance’’;

2 and

3 (II) in subparagraph (B)—

4 (aa) in clause (ii)(II), by

5 striking ‘‘food stamp recipients’’

6 and inserting ‘‘food and nutrition

7 assistance recipients’’;

8 (bb) in clause (iii)(I), by

9 striking ‘‘the State’s food stamp

10 households’’ and inserting ‘‘the

11 number of households in the State

12 receiving food and nutrition as13 sistance’’; and

14 (cc) in clause (iv)(IV)(bb), by

15 striking ‘‘food stamp deductions’’

16 and inserting ‘‘food and nutrition

17 assistance deductions’’;

18 (ii) in paragraph (2), by striking

19 ‘‘food stamp benefits’’ and inserting ‘‘food

20 and nutrition assistance’’; and

21 (iii) in paragraph (3)—

22 (I) in subparagraph (A), by strik23 ing ‘‘food stamp employment’’ and in24 serting ‘‘food and nutrition program

25 employment’’;
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1 (II) in subparagraph (B), by

2 striking ‘‘food stamp recipients’’ and

3 inserting ‘‘food and nutrition assist4 ance recipients’’;

5 (III) in subparagraph (C), by

6 striking ‘‘food stamps’’ and inserting

7 ‘‘food and nutrition assistance’’; and

8 (IV) in subparagraph (D), by

9 striking ‘‘food stamp benefits’’ and in10 serting ‘‘food and nutrition assistance

11 benefits’’;

12 (C) in subsection (c), by striking ‘‘food

13 stamps’’ and inserting ‘‘food and nutrition as14 sistance’’;

15 (D) in subsection (d)—

16 (i) in paragraph (1)(B), by striking

17 ‘‘food stamp benefits’’ and inserting ‘‘food

18 and nutrition assistance’’;

19 (ii) in paragraph (2)—

20 (I) in subparagraph (A), by strik21 ing ‘‘food stamp allotments’’ each place

22 it appears and inserting ‘‘food and nu23 trition assistance’’; and

24 (II) in subparagraph (C)(ii), by

25 striking ‘‘food stamp benefit’’ and in-
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1 serting ‘‘food and nutrition assist2 ance’’; and

3 (iii) in paragraph (3)(E), by striking

4 ‘‘food stamp benefits’’ and inserting ‘‘food

5 and nutrition assistance’’;

6 (E) in subsections (e) and (f), by striking

7 ‘‘food stamp benefits’’ each place it appears and

8 inserting ‘‘food and nutrition assistance’’;

9 (F) in subsection (g), in the first sentence,

10 by striking ‘‘receipt of food stamp’’ and inserting

11 ‘‘receipt of food and nutrition assistance’’; and

12 (G) in subsection (j), by striking ‘‘food

13 stamp agencies’’ and inserting ‘‘food and nutri14 tion program agencies’’.

15 (10) Section 18(a)(3)(A)(ii) of the Food and Nu16 trition Act of 2007 (7 U.S.C. 2027(a)(3)(A)(ii)) is

17 amended by striking ‘‘food stamps’’ and inserting

18 ‘‘food and nutrition assistance’’.

19 (11) Section 21(d)(3) of the Food and Nutrition

20 Act of 2007 (7 U.S.C. 2030(d)(3)) is amended by

21 striking ‘‘food stamp benefits’’ and inserting ‘‘food

22 and nutrition assistance’’.

23 (12) Section 22 of the Food and Nutrition Act

24 of 2007 (7 U.S.C. 2031) is amended—
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1 (A) in the section heading, by striking

2 ‘‘FOOD STAMP PORTION OF MINNESOTA FAMILY

3 INVESTMENT PLAN’’ and inserting ‘‘FOOD AND

4 NUTRITION ASSISTANCEPORTION OF MINNESOTA

5 FAMILY INVESTMENT PROJECT’’;

6 (B) in subsections (b)(12) and (d)(3), by

7 striking ‘‘the Food Stamp Act, as amended,’’

8 each place it appears and inserting ‘‘this Act’’;

9 and

10 (C) in subsection (g)(1), by striking ‘‘the

11 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)’’

12 and inserting ‘‘this Act’’.

13 (13) Section 26 of the Food and Nutrition Act

14 of 2007 (7 U.S.C. 2035) is amended—

15 (A) in the section heading, by striking

16 ‘‘SIMPLIFIED FOOD STAMP PROGRAM’’ and insert17 ing ‘‘SIMPLIFIED FOOD AND NUTRITION PRO18 GRAM’’; and

19 (B) in subsection (b), by striking ‘‘sim20 plified food stamp program’’ and inserting ‘‘sim21 plified food and nutrition program’’.

22 (b) CONFORMING CROSS-REFERENCES.—

23 (1) IN GENERAL.—Each provision of law de24 scribed in paragraph (2) is amended (as applica25 ble)—
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1 (A) by striking ‘‘food stamp program’’ each

2 place it appears and inserting ‘‘food and nutri3 tion program’’;

4 (B) by striking ‘‘Food Stamp Act of 1977’’

5 each place it appears and inserting ‘‘Food and

6 Nutrition Act of 2007’’;

7 (C) by striking ‘‘Food Stamp Act’’ each

8 place it appears and inserting ‘‘Food and Nutri9 tion Act of 2007’’;

10 (D) by striking ‘‘food stamp’’ each place it

11 appears and inserting ‘‘food and nutrition as12 sistance’’;

13 (E) by striking ‘‘food stamps’’ each place it

14 appears and inserting ‘‘food and nutrition as15 sistance’’;

16 (F) in each applicable title, subtitle, chap17 ter, subchapter, and section heading, by striking

18 ‘‘FOOD STAMP’’ each place it appears and in19 serting ‘‘FOOD AND NUTRITION ASSIST20 ANCE’’;

21 (G) in each applicable subsection and ap22 propriations heading, by striking ‘‘FOOD

23 STAMP’’ each place it appears and inserting

24 ‘‘FOOD AND NUTRITION ASSISTANCE’’;
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1 (H) in each applicable heading other than

2 a title, subtitle, chapter, subchapter, section, sub3 section, or appropriations heading, by striking

4 ‘‘FOOD STAMP’’ each place it appears and insert5 ing ‘‘FOOD AND NUTRITION ASSISTANCE’’;

6 (I) in each applicable title, subtitle, chapter,

7 subchapter, and section heading, by striking

8 ‘‘FOOD STAMPS’’ each place it appears and in9 serting ‘‘FOOD AND NUTRITION ASSIST10 ANCE’’;

11 (J) in each applicable subsection and ap12 propriations heading, by striking ‘‘FOOD

13 STAMPS’’ each place it appears and inserting

14 ‘‘FOOD AND NUTRITION ASSISTANCE’’; and

15 (K) in each applicable heading other than

16 a title, subtitle, chapter, subchapter, section, sub17 section, or appropriations heading, by striking

18 ‘‘FOOD STAMPS’’ each place it appears and in19 serting ‘‘FOOD AND NUTRITION ASSISTANCE’’.

20 (2) PROVISIONS OF LAW.—The provisions of law

21 referred to in paragraph (1) are the following:

22 (A) The Hunger Prevention Act of 1988

23 (Public Law 100–435; 102 Stat. 1645).
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1 (B) The Food Stamp Program Improve2 ments Act of 1994 (Public Law 103–225; 108

3 Stat. 106).

4 (C) Title IV of the Farm Security and

5 Rural Investment Act of 2002 (Public Law 107–

6 171; 116 Stat. 305).

7 (D) Section 2 of Public Law 103–205 (7

8 U.S.C. 2012 note).

9 (E) Section 807(b) of the Stewart B.

10 McKinney Homeless Assistance Act (7 U.S.C.

11 2014 note; Public Law 100–77).

12 (F) The Electronic Benefit Transfer Inter13 operability and Portability Act of 2000 (Public

14 Law 106–171; 114 Stat. 3).

15 (G) Section 502(b) of the Agricultural Re16 search, Extension, and Education Reform Act of

17 1998 (7 U.S.C. 2025 note; Public Law 105–185).

18 (H) The National Agricultural Research,

19 Extension, and Teaching Policy Act of 1977 (7

20 U.S.C. 3101 et seq.).

21 (I) The Emergency Food Assistance Act of

22 1983 (7 U.S.C. 7501 et seq.).

23 (J) The Immigration and Nationality Act

24 (8 U.S.C. 1101 et seq.).
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1 (K) Section 8119 of the Department of De2 fense Appropriations Act, 1999 (10 U.S.C. 113

3 note; Public Law 105–262).

4 (L) The Armored Car Industry Reciprocity

5 Act of 1993 (15 U.S.C. 5901 et seq.).

6 (M) Title 18, United States Code.

7 (N) The Higher Education Act of 1965 (20

8 U.S.C. 1001 et seq.).

9 (O) The Internal Revenue Code of 1986.

10 (P) Section 650 of the Treasury and Gen11 eral Government Appropriations Act, 2000 (26

12 U.S.C. 7801 note; Public Law 106–58).

13 (Q) The Wagner-Peysner Act (29 U.S.C. 49

14 et seq.).

15 (R) The Workforce Investment Act of 1998

16 (29 U.S.C. 2801 et seq.).

17 (S) Title 31, United States Code.

18 (T) Title 37, United States Code.

19 (U) The Public Health Service Act (42

20 U.S.C. 201 et seq.).

21 (V) Titles II through XIX of the Social Se22 curity Act (42 U.S.C. 401 et seq.).

23 (W) Section 406 of the Family Support Act

24 of 1988 (Public Law 100–485; 102 Stat. 2400).
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1 (X) Section 232 of the Social Security Act

2 Amendments of 1994 (42 U.S.C. 1314a).

3 (Y) The United States Housing Act of 1937

4 (42 U.S.C. 1437 et seq.).

5 (Z) The Richard B. Russell National School

6 Lunch Act (42 U.S.C. 1751 et seq.).

7 (AA) The Child Nutrition Act of 1966 (42

8 U.S.C. 1771 et seq.).

9 (BB) The Older Americans Act of 1965 (42

10 U.S.C. 3001 et seq.).

11 (CC) Section 208 of the Intergovernmental

12 Personnel Act of 1970 (42 U.S.C. 4728).

13 (DD) The Robert T. Stafford Disaster Relief

14 and Emergency Assistance Act (42 U.S.C. 5121

15 et seq.).

16 (EE) The Low-Income Home Energy Assist17 ance Act of 1981 (42 U.S.C. 8621 et seq.).

18 (FF) Section 658K of the Child Care and

19 Development Block Grant Act of 1990 (42 U.S.C.

20 9858i).

21 (GG) The Alaska Native Claims Settlement

22 Act (43 U.S.C. 1601 et seq.).

23 (HH) Public Law 95–348 (92 Stat. 487).

24 (II) The Agriculture and Food Act of 1981

25 (Public Law 97–98; 95 Stat. 1213).
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1 (JJ) The Disaster Assistance Act of 1988

2 (Public Law 100–387; 102 Stat. 924).

3 (KK) The Food, Agriculture, Conservation,

4 and Trade Act of 1990 (Public Law 101–624;

5 104 Stat. 3359).

6 (LL) The Cranston-Gonzalez National Af7 fordable Housing Act (Public Law 101–625; 104

8 Stat. 4079).

9 (MM) Section 388 of the Persian Gulf Con10 flict Supplemental Authorization and Personnel

11 Benefits Act of 1991 (Public Law 102–25; 105

12 Stat. 98).

13 (NN) The Food, Agriculture, Conservation,

14 and Trade Act Amendments of 1991 (Public Law

15 102–237; 105 Stat. 1818).

16 (OO) The Act of March 26, 1992 (Public

17 Law 102–265; 106 Stat. 90).

18 (PP) Public Law 105–379 (112 Stat. 3399).

19 (QQ) Section 101(c) of the Emergency Sup20 plemental Act, 2000 (Public Law 106–246; 114

21 Stat. 528).

22 (c) REFERENCES.—Any reference in any Federal,

23 State, tribal, or local law (including regulations) to the

24 ‘‘food stamp program’’ established under the Food and Nu25 trition Act of 2007 (7 U.S.C. 2011 et seq.) shall be consid-
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1 ered to be a reference to the ‘‘food and nutrition program’’

2 established under that Act.

3 SEC. 4910. EFFECTIVE AND IMPLEMENTATION DATES.

4 (a) GENERAL EFFECTIVE DATE.—Except as otherwise

5 provided in this title, this title and the amendments made

6 by this title take effect on April 1, 2008.

7 (b) IMPLEMENTATION OF IMPROVEMENTS TO PROGRAM

8 BENEFITS.—

9 (1) IN GENERAL.—A State agency may imple10 ment the amendments made by part II of subtitle A

11 beginning on a date (as determined by the State

12 agency) during the period beginning on April 1,

13 2008, and ending on October 1, 2008.

14 (2) CERTIFICATION PERIOD.—At the option of a

15 State agency, the State agency may implement 1 or

16 more of the amendments made by sections 4103 and

17 4104 for a certification period that begins not earlier

18 than the implementation date determined by the State

19 under paragraph (1).

20 SEC. 4911. APPLICATION.

21 (a) IN GENERAL.—Notwithstanding any other provi22 sion of this title or amendments made by this title, the

23 amendments made by the provisions described in subsection

24 (b) shall be in effect during the period beginning on the

25 date of enactment of this Act (or such other effective date
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1 as is otherwise provided in this title) and ending on Sep2 tember 30, 2012.

3 (b) PROVISIONS.—The provisions referred to in sub4 section (a) are—

5 (1) section 4101;

6 (2) section 4102;

7 (3) section 4103;

8 (4) section 4104;

9 (5) section 4107;

10 (6) section 4108;

11 (7) section 4109;

12 (8) section 4110(a)(2);

13 (9) section 4208;

14 (10) section 4701(a)(3);

15 (11) section 4801(g); and

16 (12) section 4903.

17 SEC. 4912. GRAIN PILOT PROGRAM.

18 (a) IN GENERAL.—Section 17A of the Richard B. Rus19 sell National School Lunch Act (42 U.S.C. 1766a) is

20 amended by adding at the end the following:

21 ‘‘(e) GRAIN PILOT PROGRAM.—

22 ‘‘(1) DEFINITION OF ELIGIBLE GRAIN AND GRAIN

23 PRODUCT.—In this subsection, the terms ‘eligible

24 grain’ and ‘grain product’ mean a grain or bread

25 product, including but not limited to, baked products
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1 and ready-to-eat cereals, having whole grain as the

2 primary ingredient by weight as specified on the label

3 or according to the recipe; except that the Secretary

4 may review and update as necessary the definition es5 tablished under this section.’’

6 ‘‘(2) PROGRAM.—

7 ‘‘(A) IN GENERAL.—For the school year be8 ginning July 2008, the Secretary shall carry out

9 a pilot program to provide eligible grain and

10 grain products to—

11 ‘‘(i) up to 125 elementary or secondary

12 schools operating a program under this sec13 tion in each of 6 States; and

14 ‘‘(ii) elementary or secondary schools

15 operating a program under this section on

16 1 Indian reservation.

17 ‘‘(B) REQUIREMENT.—A school partici18 pating in the program shall provide eligible

19 grain and grain products as one of the meal sup20 plement components as described in subsection

21 (d) to students participating in a program au22 thorized under this section.

23 ‘‘(C) FUNDING TO STATES.—The Secretary

24 shall allocate funds to each participating State
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1 based on the prior year claiming pattern for the

2 afterschool snack program in selected schools.

3 ‘‘(3) SELECTION OF SCHOOLS.—In selecting

4 schools to participate in the program under para5 graph (2), the Secretary shall—

6 ‘‘(A) ensure each school selected is located in

7 a needy area as defined in subsection (c)(1); and

8 ‘‘(B) solicit applications from interested

9 schools that meet the criteria established in sub10 paragraph (A) and include—

11 ‘‘(i) a certification of support for par12 ticipation in the program signed by the

13 school food manager, the school principal,

14 and the district superintendent (or equiva15 lent positions, as determined by the school);

16 and

17 ‘‘(ii) such other information as may be

18 requested by the Secretary.

19 ‘‘(4) REPORT.—Not later than December 31,

20 2010, the Secretary, acting through the Administrator

21 of the Food and Nutrition Service, shall submit to the

22 Committee on Education and Labor of the House of

23 Representatives and the Committee on Agriculture,

24 Nutrition, and Forestry of the Senate a report that

25 describes the results of the pilot program.
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1 ‘‘(5) FUNDING.—The Secretary shall use not

2 more than $4,000,000 to carry out this subsection

3 (other than paragraph (4)), of which—

4 ‘‘(A) $2,000,000 shall be from funds made

5 available to carry out the senior farmers’ market

6 nutrition program under section 4402 of the

7 Farm Security and Rural Investment Act of

8 2002 (7 U.S.C. 3007); and

9 ‘‘(B) $2,000,000 shall be from funds made

10 available to carry out assistance for community

11 food projects under section 25 of the Food and

12 Nutrition Act of 2007 (7 U.S.C. 2034).

13 ‘‘(6) EVALUATION AND ADMINISTRATION.—Of the

14 funding made available the Secretary shall use not

15 more than $3,000,000 to carry out the evaluation re16 quired in paragraph (4) and for the administration

17 of the program.’’.

18 (b) EFFECTIVE DATE.—The amendment made by this

19 section shall take effect on the date of enactment of this Act.

20 SEC. 4913. REPORT ON FEDERAL HUNGER PROGRAMS.

21 Not later than 2 years after the date of enactment of

22 this Act, the Comptroller General of the United States shall

23 submit to Congress a report that contains—

24 (1) a complete list of all Federal programs that

25 seek to alleviate hunger or food insecurity or improve
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1 nutritional intake, including programs that support

2 collaboration, coordination, research, or infrastructure

3 related to these issues;

4 (2) for each program listed under paragraph

5 (1)—

6 (A) the total amount of Federal funds used

7 to carry out the program in the most recent fis8 cal year for which comparable data is available;

9 (B) a comparison of the amount described

10 in subparagraph (A) with the amount used to

11 carry out a similar program 10 and 20 years

12 previously;

13 (C) to the maximum extent practicable, the

14 amount of Federal funds used under the program

15 to provide direct food aid to individuals (includ16 ing the amount used for the costs of admin17 istering the program); and

18 (D) a review to determine whether the pro19 gram has been independently reviewed for effec20 tiveness with respect to achieving the goals of the

21 program, including—

22 (i) the findings of the independent re23 view; and

24 (ii) for the 10 highest-cost programs, a

25 determination of whether the review was
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1 conducted in accordance with accepted re2 search principles;

3 (3) for the 10- and 20-year periods before the

4 date of enactment of this Act, and for the most recent

5 year for which data is available, the estimated num6 ber of people in the United States who are hungry (or

7 food insecure) or obese; and

8 (4) as of the date of submission of the report—

9 (A) the number of employees of the Depart10 ment of Agriculture, including contractors and

11 other individuals whose salary is paid in full or

12 part by the Department; and

13 (B) the number of farmers and other agri14 cultural producers in the United States that re15 ceive some form of assistance from the Depart16 ment.

17 SEC. 4914. FOOD EMPLOYMENT EMPOWERMENT AND DE18 VELOPMENT PROGRAM.

19 (a) DEFINITIONS.—In this section:

20 (1) ELIGIBLEENTITY.—The term ‘‘eligible enti21 ty’’ means an entity that meets the requirements of

22 subsection (b)(2).

23 (2) VULNERABLE SUBPOPULATION.—

24 (A) IN GENERAL.—The term ‘‘vulnerable

25 subpopulation’’ means low-income individuals,
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1 unemployed individuals, and other subpopula2 tions identified by the Secretary as being likely

3 to experience special risks from hunger or a spe4 cial need for job training.

5 (B) INCLUSIONS.—The term ‘‘vulnerable

6 subpopulation’’ includes—

7 (i) addicts (as defined in section 102 of

8 the Controlled Substances Act (21 U.S.C.

9 802));

10 (ii) at-risk youths (as defined in sec11 tion 1432 of the Elementary and Secondary

12 Education Act of 1965 (20 U.S.C. 6472));

13 (iii) individuals that are basic skills

14 deficient (as defined in section 101 of the

15 Workforce Investment Act of 1998 (29

16 U.S.C. 2801));

17 (iv) homeless individuals (as defined in

18 section 17(b) of the Child Nutrition Act of

19 1966 (42 U.S.C. 1786(b));

20 (v) homeless youths (as defined in sec21 tion 387 of the Runaway and Homeless

22 Youth Act (42 U.S.C. 5732a));

23 (vi) individuals with disabilities (as

24 defined in section 3 of the Americans with

25 Disabilities Act of 1990 (42 U.S.C. 12102));
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1 (vii) low-income individuals (as de2 fined in section 101 of the Workforce Invest3 ment Act of 1998 (29 U.S.C. 2801)); and

4 (viii) older individuals (as defined in

5 section 102 of the Older Americans Act of

6 1965 (42 U.S.C. 3002)).

7 (b) FOOD EMPLOYMENT EMPOWERMENT AND DEVEL8 OPMENT PROGRAM.—

9 (1) ESTABLISHMENT.—The Secretary shall estab10 lish a food employment empowerment and develop11 ment program under which the Secretary shall make

12 grants to eligible entities to encourage the effective use

13 of community resources to combat hunger and the

14 root causes of hunger by creating opportunity through

15 food recovery and job training.

16 (2) ELIGIBLE ENTITIES.—To be eligible to re17 ceive a grant under this section, an entity shall be a

18 public agency, or private nonprofit institution, that

19 conducts, or will conduct, 2 or more of the following

20 activities as an integral part of the normal operation

21 of the entity:

22 (A) Recovery of donated food from area res23 taurants, caterers, hotels, cafeterias, farms, or

24 other food service businesses.
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1 (B) Distribution of meals or recovered food

2 to—

3 (i) nonprofit organizations described

4 in section 501(c)(3) of the Internal Revenue

5 Code of 1986;

6 (ii) entities that feed vulnerable sub7 populations; and

8 (iii) other agencies considered appro9 priate by the Secretary.

10 (C) Training of unemployed and under11 employed adults for careers in the food service

12 industry.

13 (D) Carrying out of a welfare-to-work job

14 training program in combination with—

15 (i) production of school meals, such as

16 school meals served under the Richard B.

17 Russell National School Lunch Act (42

18 U.S.C. 1751 et seq.) or the Child Nutrition

19 Act of 1966 (42 U.S.C. 1771 et seq.); or

20 (ii) support for after-school programs,

21 such as programs conducted by community

22 learning centers (as defined in section

23 4201(b) of the Elementary and Secondary

24 Education Act of 1965 (20 U.S.C.

25 7171(b))).
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1 (3) USEOF FUNDS.—An eligible entity may use

2 a grant awarded under this section for—

3 (A) capital investments related to the oper4 ation of the eligible entity;

5 (B) support services for clients, including

6 staff, of the eligible entity and individuals en7 rolled in job training programs;

8 (C) purchase of equipment and supplies re9 lated to the operation of the eligible entity or

10 that improve or directly affect service delivery;

11 (D) building and kitchen renovations that

12 improve or directly affect service delivery;

13 (E) educational material and services;

14 (F) administrative costs, in accordance with

15 guidelines established by the Secretary; and

16 (G) additional activities determined appro17 priate by the Secretary.

18 (4) PREFERENCES.—In awarding grants under

19 this section, the Secretary shall give preference to eli20 gible entities that perform, or will perform, any of the

21 following activities:

22 (A) Carrying out food recovery programs

23 that are integrated with—

24 (i) culinary worker training programs,

25 such as programs conducted by a food serv-
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1 ice management institute under section 21

2 of the Richard B. Russell National School

3 Lunch Act (42 U.S.C. 1769b–1);

4 (ii) school education programs; or

5 (iii) programs of service-learning (as

6 defined in section 101 of the National and

7 Community Service Act of 1990 (42 U.S.C.

8 12511)).

9 (B) Providing job skills training, life skills

10 training, and case management support to vul11 nerable subpopulations.

12 (C) Integrating recovery and distribution of

13 food with a job training program.

14 (D) Maximizing the use of an established

15 school, community, or private food service facil16 ity or resource in meal preparation and cul17 inary skills training.

18 (E) Providing job skills training, life skills

19 training, and case management support to vul20 nerable subpopulations.

21 (5) ELIGIBILITY FOR JOB TRAINING.—To be eli22 gible to receive job training assistance from an eligi23 ble entity using a grant made available under this

24 section, an individual shall be a member of a vulner25 able subpopulation.
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1 (6) PERFORMANCE INDICATORS.—The Secretary

2 shall establish, for each year of the program, perform3 ance indicators and expected levels of performance for

4 meal and food distribution and job training for eligi5 ble entities to continue to receive and use grants

6 under this section.

7 (7) TECHNICAL ASSISTANCE.—The Secretary

8 may provide such technical assistance to eligible enti9 ties as the Secretary considers appropriate to help the

10 eligible entities in carrying out this section.

11 (8) RELATIONSHIP TO OTHER LAW.—

12 (A) BILL EMERSON GOOD SAMARITAN FOOD

13 DONATION ACT.—An action taken by an eligible

14 entity using a grant provided under this section

15 shall be covered by the Bill Emerson Good Sa16 maritan Food Donation Act (42 U.S.C. 1791).

17 (B) FOOD HANDLING GUIDELINES.—In

18 using a grant provided under this section, an el19 igible entity shall comply with any applicable

20 food handling guideline established by a State or

21 local authority.

22 (9) MAXIMUM AMOUNT OF GRANT.—The amount

23 of a grant provided to an eligible entity for a fiscal

24 year under this section shall not exceed $200,000.

25 (c) AUTHORIZATION OF APPROPRIATIONS.—
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1 (1) IN GENERAL.—There are authorized to be ap2 propriated such sums as are necessary to carry out

3 this section for each of fiscal years 2008 through

4 2012.

5 (2) TECHNICAL ASSISTANCE.—Of the amount of

6 funds that are made available for a fiscal year under

7 paragraph (1), the Secretary shall use to provide tech8 nical assistance under subsection (b)(7) not more

9 than the greater of—

10 (A) 5 percent of the amount of funds that

11 are made available for the fiscal year under

12 paragraph (1); or

13 (B) $1,000,000.

14 SEC. 4915. INFRASTRUCTURE AND TRANSPORTATION

15 GRANTS TO SUPPORT RURAL FOOD BANK DE16 LIVERY OF HEALTHY PERISHABLE FOODS.

17 (a) PURPOSE.—The purpose of this section is to pro18 vide grants to State and local food banks and other emer19 gency feeding organizations (as defined in section 201A of

20 the Emergency Food Assistance Act of 1983 (7 U.S.C.

21 7501))—

22 (1) to support and expand the efforts of food

23 banks operating in rural areas to procure and trans24 port highly perishable and healthy food;
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1 (2) to improve identification of potential pro2 viders of donated food and to enhance the nonprofit

3 food donation system, particularly in and for rural

4 areas; and

5 (3) to support the procurement of locally pro6 duced food from small and family farms and ranches

7 for distribution to needy people.

8 (b) DEFINITION OF TIME-SENSITIVE FOOD PROD9 UCT.—

10 (1) IN GENERAL.—In this section, the term

11 ‘‘time-sensitive food product’’ means a fresh, raw, or

12 processed food with a short time limitation for safe

13 and acceptable consumption, as determined by the

14 Secretary.

15 (2) INCLUSIONS.—The term ‘‘time-sensitive food

16 product’’ includes—

17 (A) fruits;

18 (B) vegetables;

19 (C) dairy products;

20 (D) meat;

21 (E) fish; and

22 (F) poultry.

23 (c) GRANT PROGRAM.—

24 (1) IN GENERAL.—The Secretary shall establish

25 a program under which the Secretary shall provide
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1 grants, on a competitive basis, to expand the capacity

2 and infrastructure of food banks, statewide food bank

3 associations, and regional food bank collaboratives

4 that operate in rural areas to improve the capacity

5 of the food banks to receive, store, distribute, track,

6 collect, and deliver time-sensitive food products made

7 available from national and local food donors.

8 (2) MAXIMUM AMOUNT.—The maximum amount

9 of a grant provided under this subsection shall be not

10 more than $1,000,000 for a fiscal year.

11 (3) USEOF FUNDS.—A food bank may use a

12 grant provided under this section for—

13 (A) the development and maintenance of a

14 computerized system for the tracking of time-sen15 sitive food products;

16 (B) capital, infrastructure, and operating

17 costs associated with—

18 (i) the collection and transportation of

19 time-sensitive food products; or

20 (ii) the storage and distribution of

21 time-sensitive food products;

22 (C) improving the security and diversity of

23 the emergency food distribution and recovery sys24 tems of the United States through the support

25 of—
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1 (i) small, midsize, or family farms and

2 ranches;

3 (ii) fisheries and aquaculture; and

4 (iii) donations from local food pro5 ducers and manufacturers to persons in

6 need;

7 (D) providing recovered healthy foods to

8 food banks and similar nonprofit emergency food

9 providers to reduce hunger in the United States;

10 and

11 (E) improving the identification of—

12 (i) potential providers of donated

13 foods;

14 (ii) potential nonprofit emergency food

15 providers; and

16 (iii) persons in need of emergency food

17 assistance in rural areas.

18 (d) AUDITS.—The Secretary shall establish fair and

19 reasonable procedures to audit the use of funds made avail20 able to carry out this section.

21 (e) AUTHORIZATION OF APPROPRIATIONS.—There is

22 authorized to be appropriated to carry out this section

23 $10,000,000 for each of fiscal years 2008 through 2012.
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1 TITLE V—CREDIT

2 Subtitle A—Farm Ownership Loans

3 SEC. 5001. DIRECT LOANS.

4 Section 302 of the Consolidated Farm and Rural De5 velopment Act (7 U.S.C. 1922) is amended—

6 (1) by striking the section designation and head7 ing and all that follows through ‘‘(a) The Secretary

8 is authorized to’’ and inserting the following:

9 ‘‘SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

10 ‘‘(a) IN GENERAL.—The Secretary may’’; and

11 (2) in subsection (a)(2), by inserting ‘‘, taking

12 into consideration all farming experience of the appli13 cant, without regard to any lapse between farming ex14 periences’’ after ‘‘farming operations’’.

15 SEC. 5002. PURPOSES OF LOANS.

16 Section 303(a)(1) of the Consolidated Farm and Rural

17 Development Act (7 U.S.C. 1923(a)(1)) is amended—

18 (1) in subparagraph (D), by striking ‘‘or’’ at the

19 end;

20 (2) in subparagraph (E), by striking the period

21 at the end and inserting ‘‘; or’’; and

22 (3) by adding at the end the following:

23 ‘‘(F) refinancing guaranteed farm owner24 ship loans of qualified beginning farmers and

25 ranchers under this subtitle that were used to
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1 carry out purposes described in subparagraphs

2 (A) through (E).’’.

3 SEC. 5003. SOIL AND WATER CONSERVATION AND PROTEC4 TION.

5 Section 304 of the Consolidated Farm and Rural De6 velopment Act (7 U.S.C. 1924) is amended—

7 (1) in subsection (a)—

8 (A) in paragraph (4), by inserting ‘‘or con9 version to a certified organic farm in accordance

10 with the Organic Foods Production Act of 1990

11 (7 U.S.C. 6501 et seq.)’’ after ‘‘systems’’;

12 (B) in paragraph (5), by striking ‘‘and’’ at

13 the end;

14 (C) by redesignating paragraph (6) as

15 paragraph (7); and

16 (D) by inserting after paragraph (5) the fol17 lowing:

18 ‘‘(6) the implementation of 1 or more practices

19 under the environmental quality section of the com20 prehensive stewardship incentives program established

21 under subchapter A of chapter 6 of subtitle D of title

22 XII of the Food Security Act of 1985; and’’; and

23 (2) by striking subsections (b) and (c) and in24 serting the following:
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1 ‘‘(b) PRIORITY.—In making or guaranteeing loans

2 under this section, the Secretary shall give priority to—

3 ‘‘(1) qualified beginning farmers or ranchers and

4 socially disadvantaged farmers or ranchers;

5 ‘‘(2) owners or tenants who use the loans to con6 vert to sustainable or organic agricultural production

7 systems;

8 ‘‘(3) producers who use the loans to build con9 servation structures or establish conservation practices

10 to comply with section 1212 of the Food Security Act

11 of 1985 (16 U.S.C. 3812); and

12 ‘‘(4) producers who have a certification from the

13 Natural Resources Conservation Service issued pursu14 ant to section 1240B(d) of the Food Security Act of

15 1985.’’.

16 SEC. 5004. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP

17 LOANS.

18 Section 305(a)(2) of the Consolidated Farm and Rural

19 Development Act (7 U.S.C. 1925(a)(2)) is amended by

20 striking ‘‘$200,000’’ and inserting ‘‘$300,000’’.

21 SEC. 5005. DOWN PAYMENT LOAN PROGRAM.

22 Section 310E of the Consolidated Farm and Rural De23 velopment Act (7 U.S.C. 1935) is amended—
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1 (1) in subsection (a)(1), by inserting ‘‘and so2 cially disadvantaged farmers and ranchers’’ after

3 ‘‘ranchers’’;

4 (2) in subsection (b)—

5 (A) by striking paragraph (1) and inserting

6 the following:

7 ‘‘(1) PRINCIPAL.—

8 ‘‘(A) PURCHASEPRICEOF $500,000 OR

9 LESS.—Each loan made under this section for a

10 purchase price that is $500,000 or less, shall be

11 in an amount that does not exceed 45 percent of

12 the lesser of—

13 ‘‘(i) the purchase price; or

14 ‘‘(ii) the appraised value of the farm or

15 ranch to be acquired.

16 ‘‘(B) PURCHASEPRICEGREATER THAN

17 $500,000.—Each loan made under this section for

18 a purchase price that is greater than $500,000,

19 shall be in an amount that does not exceed 45

20 percent of the lesser of—

21 ‘‘(i) $500,000; or

22 ‘‘(ii) the appraised value of the farm or

23 ranch to be acquired.’’;

24 (B) by striking paragraph (2) and inserting

25 the following:
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1 ‘‘(2) INTEREST RATE.—The interest rate on any

2 loan made by the Secretary under this section shall

3 be a rate equal to the greater of—

4 ‘‘(A) the difference obtained by subtracting

5 400 basis points from the interest rate for reg6 ular farm ownership loans under this subtitle; or

7 ‘‘(B) 2 percent.’’; and

8 (C) in paragraph (3), by striking ‘‘15’’ and

9 inserting ‘‘20’’;

10 (3) in subsection (c)—

11 (A) in paragraph (1), by striking ‘‘10 per12 cent’’ and inserting ‘‘5 percent’’;

13 (B) by striking paragraph (2);

14 (C) by redesignating paragraph (3) as

15 paragraph (2); and

16 (D) in subparagraph (B) of paragraph (2)

17 (as so redesignated), by striking ‘‘15-year’’ and

18 inserting ‘‘20-year’’; and

19 (4) in subsection (d)—

20 (A) in paragraph (3), by striking the ‘‘and’’

21 at the end;

22 (B) in paragraph (4), by striking the period

23 at the end and inserting ‘‘; and’’; and

24 (C) by adding at the end the following:
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1 ‘‘(5) establish annual performance goals to pro2 mote the use of the down payment loan program and

3 other joint financing participation loans as the pre4 ferred choice for direct real estate loans made by any

5 lender to a qualified beginning farmer or rancher or

6 socially disadvantaged farmer or rancher.’’.

7 SEC. 5006. BEGINNING FARMER OR RANCHER CONTRACT

8 LAND SALES PROGRAM.

9 Section 310F of the Consolidated Farm and Rural De10 velopment Act (7 U.S.C. 1936) is amended to read as fol11 lows:

12 ‘‘SEC. 310F. BEGINNING FARMER OR RANCHER CONTRACT

13 LAND SALES PROGRAM.

14 ‘‘(a) IN GENERAL.—Subject to subsection (c), the Sec15 retary shall, in accordance with each condition described

16 in subsection (b), provide a prompt payment guarantee for

17 any loan made by a private seller of farmland or ranch

18 land to a qualified beginning farmer or rancher on a con19 tract land sale basis.

20 ‘‘(b) CONDITIONS FOR GUARANTEE.—To receive a

21 guarantee for a loan by the Secretary under subsection

22 (a)—

23 ‘‘(1) the qualified beginning farmer or rancher

24 shall—
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1 ‘‘(A) on the date on which the contract land

2 sale that is the subject of the loan is complete,

3 own and operate the farmland or ranch land

4 that is the subject of the contract land sale;

5 ‘‘(B) on the date on which the contract land

6 sale that is the subject of the loan is

7 commenced—

8 ‘‘(i) have a credit history that—

9 ‘‘(I) includes a record of satisfac10 tory debt repayment, as determined by

11 the Secretary; and

12 ‘‘(II) is acceptable to the Sec13 retary; and

14 ‘‘(ii) demonstrate to the Secretary that

15 the qualified beginning farmer or rancher is

16 unable to obtain sufficient credit without a

17 guarantee to finance any actual need of the

18 qualified beginning farmer or rancher at a

19 reasonable rate or term;

20 ‘‘(2) the loan made by the private seller of farm21 land or ranch land to the qualified beginning farmer

22 or rancher on a contract land sale basis shall meet

23 applicable underwriting criteria, as determined by

24 the Secretary; and

25 ‘‘(3) to carry out the loan—
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1 ‘‘(A) a commercial lending institution shall

2 agree to serve as an escrow agent; or

3 ‘‘(B) the private seller of farmland or ranch

4 land, in cooperation with the qualified beginning

5 farmer or rancher, shall use an appropriate al6 ternate arrangement, as determined by the Sec7 retary.

8 ‘‘(c) LIMITATIONS.—

9 ‘‘(1) DOWN PAYMENT.—The Secretary shall not

10 guarantee a loan made by a private seller of farm11 land or ranch land to a qualified beginning farmer

12 or rancher under subsection (a) if the contribution of

13 the qualified beginning farmer or rancher to the down

14 payment for the farmland or ranch land that is the

15 subject of the contract land sale would be an amount

16 less than 5 percent of the purchase price of the farm17 land or ranch land.

18 ‘‘(2) MAXIMUM PURCHASEPRICE.—The Sec19 retary shall not guarantee a loan made by a private

20 seller of farmland or ranch land to a qualified begin21 ning farmer or rancher under subsection (a) if the

22 purchase price or the appraisal value of the farmland

23 or ranch land that is the subject of the contract land

24 sale is an amount greater than $500,000.
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1 ‘‘(d) PERIOD OF GUARANTEE.—The Secretary shall

2 guarantee a loan made by a private seller of farmland or

3 ranch land to a qualified beginning farmer or rancher

4 under subsection (a) for a 10-year period beginning on the

5 date on which the Secretary guarantees the loan.

6 ‘‘(e) PROMPT PAYMENT GUARANTEE.—The Secretary

7 shall provide to a private seller of farmland or ranch land

8 who makes a loan to a qualified beginning farmer or ranch9 er that is guaranteed by the Secretary, a prompt payment

10 guarantee, which shall cover—

11 ‘‘(1) 3 amortized annual installments; or

12 ‘‘(2) an amount equal to 3 annual installments

13 (including an amount equal to the total cost of any

14 tax and insurance incurred during the period covered

15 by the annual installments).’’.

16 Subtitle B—Operating Loans

17 SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIRE18 MENT.

19 Section 311 of the Consolidated Farm and Rural De20 velopment Act (7 U.S.C. 1941) is amended—

21 (1) by striking the section designation and all

22 that follows through ‘‘(a) The Secretary is authorized

23 to’’ and inserting the following:

24 ‘‘SEC. 311. PERSONS ELIGIBLE FOR LOANS.

25 ‘‘(a) IN GENERAL.—The Secretary may’’;
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1 (2) in subsection (a)(2), by inserting ‘‘, taking

2 into consideration all farming experience of the appli3 cant, without regard to any lapse between farming ex4 periences’’ after ‘‘farming operations’’; and

5 (3) in subsection (c)(1)(C), by striking ‘‘6’’ and

6 inserting ‘‘7’’.

7 SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING

8 LOANS.

9 Section 313(a)(1) of the Consolidated Farm and Rural

10 Development Act (7 U.S.C. 1943(a)(1)) is amended by

11 striking ‘‘$200,000’’ and inserting ‘‘$300,000’’.

12 SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGI13 BLE FOR GUARANTEED ASSISTANCE.

14 Section 319 of the Consolidated Farm and Rural De15 velopment Act (7 U.S.C. 1949) is repealed.

16 Subtitle C—Administrative

17 Provisions

18 SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL

19 DEVELOPMENT ACCOUNTS PILOT PROGRAM.

20 The Consolidated Farm and Rural Development Act

21 is amended by adding after section 333A (7 U.S.C. 1983a)

22 the following:
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1 ‘‘SEC. 333B. BEGINNING FARMER AND RANCHER INDI2 VIDUAL DEVELOPMENT ACCOUNTS PILOT

3 PROGRAM.

4 ‘‘(a) DEFINITIONS.—In this section:

5 ‘‘(1) DEMONSTRATION PROGRAM.—The term

6 ‘demonstration program’ means a demonstration pro7 gram carried out by a qualified entity under the pilot

8 program established in subsection (b)(1).

9 ‘‘(2) ELIGIBLEPARTICIPANT.—The term ‘eligible

10 participant’ means a qualified beginning farmer or

11 rancher that—

12 ‘‘(A) lacks significant financial resources or

13 assets; and

14 ‘‘(B) has an income that is less than—

15 ‘‘(i) 80 percent of the median income

16 of the area in which the eligible participant

17 is located; or

18 ‘‘(ii) 200 percent of the most recent an19 nual Federal Poverty Income Guidelines

20 published by the Department of Health and

21 Human Services for that area.

22 ‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The

23 term ‘individual development account’ means a sav24 ings account described in subsection (b)(4)(A).

25 ‘‘(4) QUALIFIED ENTITY.—
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1 ‘‘(A) IN GENERAL.—The term ‘qualified en2 tity’ means—

3 ‘‘(i) 1 or more organizations—

4 ‘‘(I) described in section 501(c)(3)

5 of the Internal Revenue Code of 1986;

6 and

7 ‘‘(II) exempt from taxation under

8 section 501(a) of such Code; or

9 ‘‘(ii) a State, local, or tribal govern10 ment submitting an application jointly

11 with an organization described in clause

12 (i).

13 ‘‘(B) NO PROHIBITION ON COLLABORA14 TION.—An organization described in subpara15 graph (A)(i) may collaborate with a financial

16 institution or for-profit community development

17 corporation to carry out the purposes of this sec18 tion.

19 ‘‘(b) PILOT PROGRAM.—

20 ‘‘(1) IN GENERAL.—The Secretary shall establish

21 a pilot program to be known as the ‘New Farmer In22 dividual Development Accounts Pilot Program’ under

23 which the Secretary shall work through qualified enti24 ties to establish demonstration programs—

25 ‘‘(A) of at least 5 years in duration; and
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1 ‘‘(B) in at least 15 States.

2 ‘‘(2) COORDINATION.—The Secretary shall oper3 ate the pilot program through, and in coordination

4 with the farm loan programs of, the Farm Service

5 Agency.

6 ‘‘(3) RESERVE FUNDS.—

7 ‘‘(A) IN GENERAL.—Each demonstration

8 program shall establish a reserve fund consisting

9 of a non-Federal match of 25 percent of the total

10 amount of the grant awarded to the demonstra11 tion program under this section.

12 ‘‘(B) FEDERAL FUNDS.—After a demonstra13 tion program has deposited in the reserve fund

14 the non-Federal matching funds described in sub15 paragraph (A), the Secretary shall provide to the

16 demonstration program for deposit in the reserve

17 fund the total amount of the grant awarded

18 under this section.

19 ‘‘(C) USEOF FUNDS.—Of funds deposited

20 in a reserve fund under subparagraphs (A) and

21 (B), a demonstration program—

22 ‘‘(i) may use up to 20 percent for ad23 ministrative expenses; and
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1 ‘‘(ii) shall use the remainder to make

2 matching awards described in paragraph

3 (4)(B)(ii)(I).

4 ‘‘(D) INTEREST.—Any interest earned on

5 amounts in a reserve fund established under sub6 paragraph (A) may be used as additional match7 ing funds for, or to administer, the demonstra8 tion program.

9 ‘‘(E) GUIDANCE.—The Secretary shall im10 plement guidance regarding the investment re11 quirements of reserve funds established under

12 this paragraph.

13 ‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.—

14 ‘‘(A) IN GENERAL.—A qualified entity re15 ceiving a grant under this section shall establish

16 and administer an individual development ac17 count for each eligible participant.

18 ‘‘(B) CONTRACT REQUIREMENTS.—To be el19 igible to receive funds under this section from a

20 qualified entity, each eligible participant shall

21 enter into a contract with a qualified entity

22 under which—

23 ‘‘(i) the eligible participant shall

24 agree—
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1 ‘‘(I) to deposit a certain amount

2 of funds of the eligible participant in

3 a personal savings account, as pre4 scribed by the contractual agreement

5 between the eligible participant and

6 the qualified entity; and

7 ‘‘(II) to use the funds described in

8 subclause (I) only for 1 or more eligible

9 expenditures described in paragraph

10 (5)(A); and

11 ‘‘(ii) the qualified entity shall agree—

12 ‘‘(I) to deposit not later than 1

13 month after a deposit described in

14 clause (i)(I) at least a 100-percent,

15 and up to a 300-percent, match of that

16 amount into the individual develop17 ment account established for the eligi18 ble participant;

19 ‘‘(II) with uses of funds proposed

20 by the eligible participant; and

21 ‘‘(III) to complete qualified finan22 cial training.

23 ‘‘(C) LIMITATION.—

24 ‘‘(i) IN GENERAL.—A qualified entity

25 administering a demonstration program
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1 may provide not more than $9,000 for each

2 fiscal year in matching funds to any eligi3 ble participant.

4 ‘‘(ii) TREATMENT OF AMOUNT.—An

5 amount provided under clause (i) shall not

6 be considered to be a gift or loan for mort7 gage purposes.

8 ‘‘(D) INTEREST.—Any interest earned on

9 amounts in an individual development account

10 shall be compounded with amounts otherwise de11 posited in the individual development account.

12 ‘‘(5) ELIGIBLE EXPENDITURES.—

13 ‘‘(A) IN GENERAL.—An eligible expenditure

14 described in this subparagraph is an

15 expenditure—

16 ‘‘(i) to purchase farmland or make a

17 down payment on an accepted purchase

18 offer for farmland;

19 ‘‘(ii) to make mortgage payments for

20 up to 180 days after the date of purchase of

21 farmland;

22 ‘‘(iii) to purchase farm equipment or

23 production, storage, or marketing infra24 structure or buy into an existing value25 added business;
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1 ‘‘(iv) to purchase breeding stock or

2 fruit or nut trees or trees to harvest for tim3 ber;

4 ‘‘(v) to pay training or mentorship ex5 penses to facilitate specific entrepreneurial

6 agricultural activities; and

7 ‘‘(vi) for other similar expenditures, as

8 determined by the Secretary.

9 ‘‘(B) TIMING.—

10 ‘‘(i) IN GENERAL.—An eligible expend11 iture may be made at any time during the

12 2-year period beginning on the date on

13 which the last matching funds are provided

14 under paragraph (4)(B)(ii)(I).

15 ‘‘(ii) UNEXPENDED FUNDS.—Funds re16 maining in an individual development ac17 count after the period described in clause (i)

18 shall revert to the reserve fund of the dem19 onstration program.

20 ‘‘(C) PROHIBITION.—An eligible partici21 pant that uses funds in an individual develop22 ment account for an eligible expenditure de23 scribed in subparagraph (A)(viii) shall not be el24 igible to receive funds for a substantially similar

25 purpose (as determined by the Secretary) under
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1 the national organic program established under

2 the Organic Foods Production Act of 1990 (7

3 U.S.C. 6501 et seq.).

4 ‘‘(c) APPLICATIONS.—

5 ‘‘(1) ANNOUNCEMENT OF DEMONSTRATION PRO6 GRAMS.—Not later than 180 days after the date of en7 actment of this section, the Secretary shall—

8 ‘‘(A) publicly announce the availability of

9 funding under this section for demonstration

10 programs; and

11 ‘‘(B) ensure that applications to carry out

12 demonstration programs are widely available to

13 qualified entities.

14 ‘‘(2) SUBMISSION.—Not later than 270 days

15 after the date of enactment of this section, a qualified

16 entity may submit to the Secretary an application to

17 carry out a demonstration program.

18 ‘‘(3) CRITERIA.—In considering whether to ap19 prove an application to carry out a demonstration

20 program, the Secretary shall assess—

21 ‘‘(A) the degree to which the demonstration

22 program described in the application is likely to

23 aid eligible participants in successfully pursuing

24 new farming opportunities;
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1 ‘‘(B) the experience and ability of the quali2 fied entity to responsibly administer the project;

3 ‘‘(C) the experience and ability of the quali4 fied entity in recruiting, educating, and assist5 ing eligible participants to increase economic

6 independence and pursue or advance farming

7 opportunities;

8 ‘‘(D) the aggregate amount of direct funds

9 from non-Federal public sector and private

10 sources that are formally committed to the dem11 onstration program as matching contributions;

12 ‘‘(E) the adequacy of the plan for providing

13 information relevant to an evaluation of the

14 demonstration program; and

15 ‘‘(F) such other factors as the Secretary con16 siders to be appropriate.

17 ‘‘(4) PREFERENCES.—In considering an applica18 tion to conduct a demonstration program under this

19 part, the Secretary shall give preference to an appli20 cation from a qualified entity that demonstrates—

21 ‘‘(A) a track record of serving clients tar22 geted by the program, including, as appropriate,

23 socially disadvantaged farmers and ranchers;

24 and
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1 ‘‘(B) expertise in dealing with financial

2 management aspects of farming.

3 ‘‘(5) APPROVAL.—

4 ‘‘(A) IN GENERAL.—Not later than 1 year

5 after the date of enactment of this section, in ac6 cordance with this section, the Secretary shall,

7 on a competitive basis, approve such applica8 tions to conduct demonstration programs as the

9 Secretary considers appropriate.

10 ‘‘(B) DIVERSITY.—The Secretary shall en11 sure, to the maximum extent practicable, that

12 approved applications involve demonstration

13 programs for a range of geographic areas and di14 verse populations.

15 ‘‘(6) TERM OF AUTHORITY.—If the Secretary ap16 proves an application to carry out a demonstration

17 program, the Secretary shall authorize the applying

18 qualified entity to carry out the project for a period

19 of 5 years, plus an additional 2 years for the making

20 of eligible expenditures in accordance with subsection

21 (b)(5)(B).

22 ‘‘(d) GRANT AUTHORITY.—

23 ‘‘(1) IN GENERAL.—For each year during which

24 a demonstration program is carried out under this

25 section, the Secretary shall make a grant to the quali-
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1 fied entity authorized to carry out the demonstration

2 program.

3 ‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The aggre4 gate amount of grant funds provided to a demonstra5 tion program carried out under this section shall not

6 exceed $300,000.

7 ‘‘(e) REPORTS.—

8 ‘‘(1) ANNUAL PROGRESS REPORTS.—

9 ‘‘(A) IN GENERAL.—Not later than 60 days

10 after the end of the calendar year in which the

11 Secretary authorizes a qualified entity to carry

12 out a demonstration program, and annually

13 thereafter until the conclusion of the demonstra14 tion program, the qualified entity shall prepare

15 an annual report that includes, for the period

16 covered by the report—

17 ‘‘(i) an evaluation of the progress of

18 the demonstration program;

19 ‘‘(ii) information about the demonstra20 tion program and eligible participants;

21 ‘‘(iii) the number and characteristics of

22 individuals that have made 1 or more de23 posits into an individual development ac24 count;
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1 ‘‘(iv) the amounts in the reserve fund

2 established with respect to the program;

3 ‘‘(v) the amounts deposited in the indi4 vidual development accounts;

5 ‘‘(vi) the amounts withdrawn from the

6 individual development accounts and the

7 purposes for which the amounts were with8 drawn;

9 ‘‘(vii) the balances remaining in the

10 individual development accounts;

11 ‘‘(viii) such other information as the

12 Secretary may require.

13 ‘‘(B) SUBMISSION OF REPORTS.—A quali14 fied entity shall submit each report required

15 under subparagraph (A) to the Secretary.

16 ‘‘(2) REPORTS BY THE SECRETARY.—Not later

17 than 1 year after the date on which all demonstration

18 programs under this section are concluded, the Sec19 retary shall submit to Congress a final report that de20 scribes the results and findings of all reports and

21 evaluations carried out under this section.

22 ‘‘(f) REGULATIONS.—In carrying out this section, the

23 Secretary may promulgate regulations to ensure that the

24 program includes provisions for—

25 ‘‘(1) the termination of demonstration programs;
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1 ‘‘(2) control of the reserve funds in the case of

2 such a termination;

3 ‘‘(3) transfer of demonstration programs to other

4 qualified entities; and

5 ‘‘(4) remissions from a reserve fund to the Sec6 retary in a case in which a demonstration program

7 is terminated without transfer to a new qualified en8 tity.

9 ‘‘(g) FUNDING.—

10 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—

11 There is authorized to be appropriated to carry out

12 this section $10,000,000 for each of fiscal years 2008

13 through 2012.

14 ‘‘(2) ADMINISTRATION AND TRAINING.—Of the

15 total funds made available under paragraph (1) and

16 in addition to any other available funds, not more

17 than 10 percent may be used by the Secretary—

18 ‘‘(A) to administer the pilot program; and

19 ‘‘(B) to provide training, or hire 1 or more

20 consultants to provide training, to instruct

21 qualified entities in carrying out demonstration

22 programs, including payment of reasonable costs

23 incurred with respect to that training for—

24 ‘‘(i) staff or consultant travel;

25 ‘‘(ii) lodging;
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1 ‘‘(iii) meals; and

2 ‘‘(iv) materials.’’.

3 SEC. 5202. INVENTORY SALES PREFERENCES; LOAN FUND

4 SET-ASIDES.

5 (a) INVENTORY SALES PREFERENCES.—Section 335(c)

6 of the Consolidated Farm and Rural Development Act (7

7 U.S.C. 1985(c)) is amended—

8 (1) in paragraph (1)—

9 (A) in subparagraph (B)—

10 (i) in the subparagraph heading, by

11 inserting ‘‘; SOCIALLY DISADVANTAGED

12 FARMER OR RANCHER’’ after ‘‘OR RANCH13 ER’’;

14 (ii) in clause (i), by inserting ‘‘ or a

15 socially disadvantaged farmer or rancher’’

16 after ‘‘or rancher’’;

17 (iii) in clause (ii), by inserting ‘‘or so18 cially disadvantaged farmer or rancher’’

19 after ‘‘or rancher’’;

20 (iv) in clause (iii), by inserting ‘‘or a

21 socially disadvantaged farmer or rancher’’

22 after ‘‘or rancher’’; and

23 (v) in clause (iv), by inserting ‘‘and

24 socially disadvantaged farmers and ranch25 ers’’ after ‘‘and ranchers’’; and
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1 (B) in subparagraph (C), by inserting ‘‘or

2 a socially disadvantaged farmer or rancher’’

3 after ‘‘or rancher’’;

4 (2) in paragraph (5)(B)—

5 (A) in clause (i)—

6 (i) in the clause heading, by inserting

7 ‘‘; SOCIALLY DISADVANTAGED FARMER OR

8 RANCHER’’ after ‘‘OR RANCHER’’;

9 (ii) by inserting ‘‘or a socially dis10 advantaged farmer or rancher’’ after ‘‘a be11 ginning farmer or rancher’’; and

12 (iii) by inserting ‘‘or the socially dis13 advantaged farmer or rancher’’ after ‘‘the

14 beginning farmer or rancher’’; and

15 (B) in clause (ii)—

16 (i) in the matter preceding subclause

17 (I), by inserting ‘‘or a socially disadvan18 taged farmer or rancher’’ after ‘‘or ranch19 er’’; and

20 (ii) in subclause (II), by inserting ‘‘or

21 the socially disadvantaged farmer or ranch22 er’’ after ‘‘or rancher’’; and

23 (3) in paragraph (6)—
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1 (A) in subparagraph (A), by inserting ‘‘or

2 a socially disadvantaged farmer or rancher’’

3 after ‘‘or rancher’’; and

4 (B) in subparagraph (C)—

5 (i) in clause (i)(I), by inserting ‘‘and

6 socially disadvantaged farmers and ranch7 ers’’ after ‘‘and ranchers’’; and

8 (ii) in clause (ii), by inserting ‘‘or so9 cially disadvantaged farmers or ranchers’’

10 after ‘‘or ranchers’’.

11 (b) LOAN FUND SET-ASIDES.—Section 346(b)(2) of

12 the Consolidated Farm and Rural Development Act (7

13 U.S.C. 1994(b)(2)) is amended—

14 (1) in subparagraph (A)—

15 (A) in clause (i)—

16 (i) in subclause (I), by striking ‘‘70

17 percent’’ and inserting ‘‘an amount that is

18 not less than 75 percent of the total

19 amount’’; and

20 (ii) in subclause (II)—

21 (I) in the subclause heading, by

22 inserting ‘‘; JOINT FINANCING AR23 RANGEMENTS’’ after ‘‘PAYMENT

24 LOANS’’;
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1 (II) by striking ‘‘60 percent’’ and

inserting ‘‘an amount not less than 2 2 ⁄3

3 of the amount’’; and

4 (III) by inserting ‘‘and joint fi5 nancing arrangements under section

6 307(a)(3)(D)’’ after ‘‘section 310E’’;

7 and

8 (B) in clause (ii)(III), by striking ‘‘2003

9 through 2007, 35 percent’’ and inserting ‘‘2008

10 through 2012, an amount that is not less than

11 50 percent of the total amount’’; and

12 (2) in subparagraph (B)(i), by striking ‘‘25 per13 cent’’ and inserting ‘‘an amount that is not less than

14 40 percent of the total amount’’.

15 SEC. 5203. TRANSITION TO PRIVATE COMMERCIAL OR

16 OTHER SOURCES OF CREDIT.

17 Subtitle D of the Consolidated Farm and Rural Devel18 opment Act is amended by inserting after section 344 (7

19 U.S.C. 1992) the following:

20 ‘‘SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR

21 OTHER SOURCES OF CREDIT.

22 ‘‘(a) IN GENERAL.—In making or insuring a farm

23 loan under subtitle A or B, the Secretary shall establish

24 a plan and promulgate regulations (including performance

25 criteria) that promote the goal of transitioning borrowers
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1 to private commercial credit and other sources of credit in

2 the shortest practicable period of time.

3 ‘‘(b) COORDINATION.—In carrying out this section, the

4 Secretary shall integrate and coordinate the transition pol5 icy described in subsection (a) with—

6 ‘‘(1) the borrower training program established

7 by section 359;

8 ‘‘(2) the loan assessment process established by

9 section 360;

10 ‘‘(3) the supervised credit requirement established

11 by section 361;

12 ‘‘(4) the market placement program established

13 by section 362; and

14 ‘‘(5) other appropriate programs and authorities,

15 as determined by the Secretary.’’.

16 SEC. 5204. LOAN AUTHORIZATION LEVELS.

17 Section 346(b)(1) of the Consolidated Farm and Rural

18 Development Act (7 U.S.C. 1994(b)(1)) is amended—

19 (1) in the matter preceding subparagraph (A),

20 by striking ‘‘$3,796,000,000 for each of fiscal years

21 2003 through 2007’’ and inserting ‘‘$4,226,000,000

22 for each of fiscal years 2008 through 2012’’; and

23 (2) in subparagraph (A)—
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1 (A) in the matter preceding clause (i), by

2 striking ‘‘$770,000,000’’ and inserting

3 ‘‘$1,200,000,000’’;

4 (B) in clause (i), by striking

5 ‘‘$205,000,000’’ and inserting ‘‘$350,000,000’’;

6 and

7 (C) in clause (ii), by striking

8 ‘‘$565,000,000’’ and inserting ‘‘$850,000,000’’.

9 SEC. 5205. INTEREST RATE REDUCTION PROGRAM.

10 Section 351(a) of the Consolidated Farm and Rural

11 Development Act (7 U.S.C. 1999(a)) is amended—

12 (1) in the subsection heading, by inserting ‘‘AND

13 AVAILABILITY’’ after ‘‘ESTABLISHMENT’’;

14 (2) by striking ‘‘The Secretary’’ and inserting

15 the following:

16 ‘‘(1) ESTABLISHMENT.—The Secretary’’; and

17 (3) by adding at the end the following:

18 ‘‘(2) AVAILABILITY.—The program established

19 under paragraph (1) shall be available with respect to

20 new guaranteed operating loans or guaranteed oper21 ating loans restructured under this title after the date

22 of enactment of this paragraph that meet the require23 ments of subsection (b).’’.
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1 SEC. 5206. DEFERRAL OF SHARED APPRECIATION RECAP2 TURE AMORTIZATION.

3 Section 353(e)(7)(D) of the Consolidated Farm and

4 Rural Development Act (7 U.S.C. 2001(e)(7)(D)) is

5 amended—

6 (1) in the subparagraph heading, by inserting

7 ‘‘AND DEFERRAL’’ after ‘‘REAMORTIZATION’’; and

8 (2) in clause (ii)—

9 (A) by redesignating subclause (II) as sub10 clause (III); and

11 (B) by inserting after subclause (I) the fol12 lowing:

13 ‘‘(II) TERM OF DEFERRAL.—The

14 term of a deferral under this subpara15 graph shall not exceed 1 year.’’.

16 SEC. 5207. RURAL DEVELOPMENT, HOUSING, AND FARM

17 LOAN PROGRAM ACTIVITIES.

18 Subtitle D of the Consolidated Farm and Rural Devel19 opment Act is amended by inserting after section 364 (7

20 U.S.C. 2006f) the following:

21 ‘‘SEC. 365. RURAL DEVELOPMENT, HOUSING, AND FARM

22 LOAN PROGRAM ACTIVITIES.

23 ‘‘The Secretary may not complete a study of, or enter

24 into a contract with a private party to carry out, without

25 specific authorization in a subsequent Act of Congress, a

26 competitive sourcing activity of the Secretary, including
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1 support personnel of the Department of Agriculture, relat2 ing to rural development, housing, or farm loan pro3 grams.’’.

4 Subtitle D—Farm Credit

5 SEC. 5301. AUTHORITY TO PASS ALONG COST OF INSUR6 ANCE PREMIUMS.

7 (a) IN GENERAL.—Section 1.12(b) of the Farm Credit

8 Act of 1971 (12 U.S.C. 2020(b)) is amended—

9 (1) in the first sentence, by striking ‘‘Each

10 Farm’’ and inserting the following;

11 ‘‘(1) IN GENERAL.—Each Farm’’; and

12 (2) by striking the second sentence and inserting

13 the following:

14 ‘‘(2) COMPUTATION.—The assessment on any as15 sociation or other financing institution described in

16 paragraph (1) for any period shall be computed in an

17 equitable manner, as determined by the Corpora18 tion.’’.

19 (b) RULES AND REGULATIONS.—Section 5.58(10) of

20 the Farm Credit Act of 1971 (12 U.S.C. 2277a–7(10)) is

21 amended by inserting ‘‘and section 1.12(b)’’ after ‘‘part’’.

22 SEC. 5302. TECHNICAL CORRECTION.

23 Section 3.3(b) of the Farm Credit Act of 1971 (12

24 U.S.C. 2124(b)) is amended in the first sentence by striking

25 ‘‘per’’ and inserting ‘‘par’’.
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1 SEC. 5303. CONFIRMATION OF CHAIRMAN.

2 Section 5.8(a) of the Farm Credit Act of 1971 (12

3 U.S.C. 2242(a)) is amended in the fifth sentence by insert4 ing ‘‘by and with the advice and consent of the Senate,’’

5 after ‘‘designated by the President,’’.

6 SEC. 5304. PREMIUMS.

7 (a) AMOUNT IN FUND NOT EXCEEDING SECURE BASE

8 AMOUNT.—Section 5.55(a) of the Farm Credit Act of 1971

9 (12 U.S.C. 2277a—4(a)) is amended—

10 (1) in paragraph (1)—

11 (A) in the matter preceding subparagraph

12 (A)—

13 (i) by striking ‘‘paragraph (2)’’ and

14 inserting ‘‘paragraph (3)’’; and

15 (ii) by striking ‘‘annual’’ ; and

16 (B) by striking subparagraphs (A) through

17 (D) and inserting the following:

18 ‘‘(A) the average outstanding insured obli19 gations issued by the bank for the calendar year,

20 after deducting from the obligations the percent21 ages of the guaranteed portions of loans and in22 vestments described in paragraph (2), multiplied

23 by 0.0020; and

24 ‘‘(B) the product obtained by multiplying—

25 ‘‘(i) the sum of—
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1 ‘‘(I) the average principal out2 standing for the calendar year on loans

3 made by the bank that are in non4 accrual status; and

5 ‘‘(II) the average amount out6 standing for the calendar year of other7 than-temporarily impaired investments

8 made by the bank; by

9 ‘‘(ii) 0.0010.’’;

10 (2) by striking paragraph (4);

11 (3) by redesignating paragraphs (2) and (3) as

12 paragraphs (3) and (4), respectively;

13 (4) by inserting after paragraph (1) the fol14 lowing:

15 ‘‘(2) DEDUCTIONS FROM AVERAGE OUTSTANDING

16 INSURED OBLIGATIONS.—The average outstanding in17 sured obligations issued by the bank for the calendar

18 year referred to in paragraph (1)(A) shall be reduced

19 by deducting from the obligations the sum of (as de20 termined by the Corporation)—

21 ‘‘(A) 90 percent of each of—

22 ‘‘(i) the average principal outstanding

23 for the calendar year on the guaranteed por24 tions of Federal government-guaranteed
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1 loans made by the bank that are in accrual

2 status; and

3 ‘‘(ii) the average amount outstanding

4 for the calendar year of the guaranteed por5 tions of Federal government-guaranteed in6 vestments made by the bank that are not

7 permanently impaired; and

8 ‘‘(B) 80 percent of each of—

9 ‘‘(i) the average principal outstanding

10 for the calendar year on the guaranteed por11 tions of State government-guaranteed loans

12 made by the bank that are in accrual sta13 tus; and

14 ‘‘(ii) the average amount outstanding

15 for the calendar year of the guaranteed por16 tions of State government-guaranteed in17 vestments made by the bank that are not

18 permanently impaired.’’;

19 (5) in paragraph (3) (as redesignated by para20 graph (3)), by striking ‘‘annual’’; and

21 (6) in paragraph (4) (as redesignated by para22 graph (3))—

23 (A) in the paragraph heading, by inserting

24 ‘‘OR INVESTMENTS’’ after ‘‘LOANS’’; and
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1 (B) in the matter preceding subparagraph

2 (A), by striking ‘‘As used’’ and all that follows

3 through ‘‘guaranteed—’’ and inserting ‘‘In this

4 section, the term ‘‘government-guaranteed’’, when

5 applied to a loan or an investment, means a

6 loan, credit, or investment, or portion of a loan,

7 credit, or investments, that is guaranteed—’’.

8 (b) AMOUNT IN FUND EXCEEDING SECURE BASE

9 AMOUNT.—Section 5.55(b) of the Farm Credit Act of 1971

10 (12 U.S.C. 2277a–4(b)) is amended by striking ‘‘annual’’.

11 (c) SECURE BASE AMOUNT.—Section 5.55(c) of the

12 Farm Credit Act of 1971 (12 U.S.C. 2277a–4(c)) is

13 amended—

14 (1) by striking ‘‘For purposes’’ and inserting the

15 following:

16 ‘‘(1) IN GENERAL.—For purposes’’;

17 (2) by striking ‘‘(adjusted downward’’ and all

18 that follows through ‘‘by the Corporation)’’ and in19 serting ‘‘(as adjusted under paragraph (2))’’; and

20 (3) by adding at the end the following:

21 ‘‘(2) ADJUSTMENT.—The aggregate outstanding

22 insured obligations of all insured System banks under

23 paragraph (1) shall be adjusted downward to exclude

24 an amount equal to the sum of (as determined by the

25 Corporation)—
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1 ‘‘(A) 90 percent of each of—

2 ‘‘(i) the guaranteed portions of prin3 cipal outstanding on Federal government4 guaranteed loans in accrual status made by

5 the banks; and

6 ‘‘(ii) the guaranteed portions of the

7 amount of Federal government-guaranteed

8 investments made by the banks that are not

9 permanently impaired; and

10 ‘‘(B) 80 percent of each of—

11 ‘‘(i) the guaranteed portions of prin12 cipal outstanding on State government13 guaranteed loans in accrual status made by

14 the banks; and

15 ‘‘(ii) the guaranteed portions of the

16 amount of State government-guaranteed in17 vestments made by the banks that are not

18 permanently impaired.’’.

19 (d) DETERMINATION OF LOAN AND INVESTMENT

20 AMOUNTS.—Section 5.55(d) of the Farm Credit Act of 1971

21 (12 U.S.C. 2277a–4(d)) is amended—

22 (1) in the paragraph heading, by striking

23 ‘‘PRINCIPAL OUTSTANDING’’ and inserting ‘‘LOAN

24 AND INVESTMENT AMOUNTS’’;
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1 (2) in the matter preceding paragraph (1), by

2 striking ‘‘For the purpose’’ and all that follows

3 through ‘‘made—’’ and inserting ‘‘For the purpose of

4 subsections (a) and (c), the principal outstanding on

5 all loans made by an insured System bank, and the

6 amount outstanding on all investments made by an

7 insured System bank, shall be determined based on—

8 ’’;

9 (3) by inserting ‘‘all loans or investments made’’

10 before ‘‘by’’ the first place it appears in each of para11 graph (1), (2), and (3); and

12 (4) in paragraphs (1) and (2), by inserting ‘‘or

13 investments’’ after ‘‘that is able to make such loans’’

14 each place it appears.

15 (e) ALLOCATION TO SYSTEM INSTITUTIONS OF EXCESS

16 RESERVES.—Section 5.55(e) of the Farm Credit Act of

17 1971 (12 U.S.C. 2277a–4(e)) is amended—

18 (1) in paragraph (3), by striking ‘‘the average

19 secure base amount for the calendar year (as cal20 culated on an average daily balance basis)’’ and in21 serting ‘‘the secure base amount’’;

22 (2) in paragraph (4), by striking subparagraph

23 (B) and inserting the following:

24 ‘‘(B) there shall be credited to the Allocated

25 Insurance Reserves Account of each insured Sys-
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1 tem bank an amount that bears the same ratio

2 to the total amount (less any amount credited

3 under subparagraph (A)) as—

4 ‘‘(i) the average principal outstanding

5 for the calendar year on insured obligations

6 issued by the bank (after deducting from the

7 principal the percentages of the guaranteed

8 portions of loans and investments described

9 in subsection (a)(2)); bears to

10 ‘‘(ii) the average principal outstanding

11 for the calendar year on insured obligations

12 issued by all insured System banks (after

13 deducting from the principal the percent14 ages of the guaranteed portions of loans and

15 investments described in subsection

16 (a)(2)).’’; and

17 (3) in paragraph (6)—

18 (A) in subparagraph (A)—

19 (i) in the matter preceding clause (i),

20 by striking ‘‘beginning more’’ and all that

21 follows through ‘‘January 1, 2005’’;

22 (ii) by striking clause (i) and inserting

23 the following:

24 ‘‘(i) subject to subparagraph (D), pay

25 to each insured System bank, in a manner
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1 determined by the Corporation, an amount

2 equal to the balance in the Allocated Insur3 ance Reserves Account of the System bank;

4 and’’; and

5 (iii) in clause (ii)—

6 (I) by striking ‘‘subparagraphs

7 (C), (E), and (F)’’ and inserting ‘‘sub8 paragraphs (C) and (E)’’; and

9 (II) by striking ‘‘, of the lesser

10 of—’’ and all that follows through the

11 end of subclause (II) and inserting ‘‘at

12 the time of the termination of the Fi13 nancial Assistance Corporation, of the

14 balance in the Allocated Insurance Re15 serves Account established under para16 graph (1)(B).’’;

17 (B) in subparagraph (C)—

18 (i) in clause (i), by striking ‘‘(in addi19 tion to the amounts described in subpara20 graph (F)(ii))’’; and

21 (ii) by striking clause (ii) and insert22 ing the following:

23 ‘‘(iii) TERMINATION OF ACCOUNT.—On

24 disbursement of amount equal to

25 $56,000,000, the Corporation shall—
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1 ‘‘(I) close the Account established

2 under paragraph (1)(B); and

3 ‘‘(II) transfer any remaining

4 funds in the Account to the remaining

5 Allocated Insurance Reserves Accounts

6 in accordance with paragraph (4)(B)

7 for the calendar year in which the

8 transfer occurs.’’.

9 (C) by striking subparagraph (F).

10 SEC. 5305. CERTIFICATION OF PREMIUMS.

11 (a) FILING CERTIFIED STATEMENT.—Section 5.56 of

12 the Farm Credit Act of 1971 (12 U.S.C. 2277a–5) is amend13 ed by striking subsection (a) and inserting the following:

14 ‘‘(a) FILING CERTIFIED STATEMENT.—On a date to

15 be determined in the sole discretion of the Board of Direc16 tors of the Corporation, each insured System bank that be17 came insured before the beginning of the period for which

18 premiums are being assessed (referred to in this section as

19 the ‘period’) shall file with the Corporation a certified state20 ment showing—

21 ‘‘(1) the average outstanding insured obligations

22 for the period issued by the bank;

23 ‘‘(2)(A) the average principal outstanding for the

24 period on the guaranteed portion of Federal govern25 ment-guaranteed loans that are in accrual status; and
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1 ‘‘(B) the average amount outstanding for the pe2 riod of Federal government-guaranteed investments

3 that are not permanently impaired (as defined in sec4 tion 5.55(a)(4));

5 ‘‘(3)(A) the average principal outstanding for the

6 period on State government-guaranteed loans that are

7 in accrual status; and

8 ‘‘(B) the average amount outstanding for the pe9 riod of State government-guaranteed investments that

10 are not permanently impaired (as defined in section

11 5.55(a)(4));

12 ‘‘(4)(A) the average principal outstanding for the

13 period on loans that are in nonaccrual status; and

14 ‘‘(B) the average amount outstanding for the pe15 riod of other-than-temporarily impaired investments;

16 and

17 ‘‘(5) the amount of the premium due the Cor18 poration from the bank for the period.’’.

19 (b) PREMIUM PAYMENTS.—Section 5.56 of the Farm

20 Credit Act of 1971 (12 U.S.C. 2277a–5(c)) is amended by

21 striking subsection (c) and inserting the following:

22 ‘‘(c) PREMIUM PAYMENTS.—

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), each insured System bank shall pay to the

25 Corporation the premium payments required under
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1 subsection (a), not more frequently than once in each

2 calendar quarter, in such manner and at such 1 or

3 more times as the Board of Directors shall prescribe.

4 ‘‘(2) PREMIUM AMOUNT.—The amount of the

5 premium shall be established not later than 60 days

6 after filing the certified statement specifying the

7 amount of the premium.’’.

8 (c) SUBSEQUENT PREMIUM PAYMENTS.—Section 5.56

9 of the Farm Credit Act of 1971 (12 U.S.C. 2277a–5) is

10 amended—

11 (1) by striking subsection (d); and

12 (2) by redesignating subsection (e) as subsection

13 (d).

14 SEC. 5306. RURAL UTILITY LOANS.

15 (a) DEFINITION OF QUALIFIED LOAN.—Section 8.0(9)

16 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) is

17 amended—

18 (1) in subparagraph (A)(iii), by striking ‘‘or’’ at

19 the end;

20 (2) in subparagraph (B)(ii), by striking the pe21 riod at the end and inserting ‘‘; or’’; and

22 (3) by adding at the end the following:

23 ‘‘(C) that is a loan, or an interest in a loan,

24 for an electric or telephone facility by a coopera25 tive lender to a borrower that has received, or is
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1 eligible to receive, a loan under the Rural Elec2 trification Act of 1936 (7 U.S.C. 901 et seq.).’’.

3 (b) GUARANTEE OF QUALIFIED LOANS.—Section

4 8.6(a)(1) of the Farm Credit Act of 1971 (12 U.S.C.

5 2279aa–6(a)(1)) is amended by inserting ‘‘applicable’’ be6 fore ‘‘standards’’ each place it appears in subparagraphs

7 (A) and (B)(i).

8 (c) STANDARDS FOR QUALIFIED LOANS.—Section 8.8

9 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–8) is

10 amended—

11 (1) in subsection (a)—

12 (A) by striking the first sentence and insert13 ing the following:

14 ‘‘(1) IN GENERAL.—The Corporation shall estab15 lish underwriting, security appraisal, and repayment

16 standards for qualified loans taking into account the

17 nature, risk profile, and other differences between dif18 ferent categories of qualified loans.

19 ‘‘(2) SUPERVISION, EXAMINATION, AND REPORT

20 OF CONDITION.—The standards shall be subject to the

21 authorities of the Farm Credit Administration under

22 section 8.11.’’; and

23 (B) in the last sentence, by striking ‘‘In es24 tablishing’’ and inserting the following:

25 ‘‘(3) MORTGAGELOANS.—In establishing’’;
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1 (2) in subsection (b)—

2 (A) in the matter preceding paragraph (1),

3 by inserting ‘‘with respect to loans secured by

4 agricultural real estate’’ after ‘‘subsection (a)’’;

5 and

6 (B) in paragraph (5)—

7 (i) by striking ‘‘borrower’’ the first

8 place it appears and inserting ‘‘farmer or

9 rancher’’; and

10 (ii) by striking ‘‘site’’ and inserting

11 ‘‘farm or ranch’’;

12 (3) in subsection (c)(1), by inserting ‘‘secured by

13 agricultural real estate’’ after ‘‘A loan’’;

14 (4) by striking subsection (d); and

15 (5) by redesignating subsection (e) as subsection

16 (d).

17 (d) RISK-BASED CAPITAL LEVELS.—Section

18 8.32(a)(1) of the Farm Credit Act of 1971 (12 U.S.C.

19 2279bb–1(a)(1)) is amended—

20 (1) by striking ‘‘With respect’’ and inserting the

21 following:

22 ‘‘(A) IN GENERAL.—With respect’’; and

23 (2) by adding at the end the following:

24 ‘‘(B) RURAL UTILITY LOANS.—With respect

25 to securities representing an interest in, or obli-
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1 gation backed by, a pool of qualified loans de2 scribed in section 8.0(9)(C) owned or guaranteed

3 by the Corporation, losses occur at a rate of de4 fault and severity reasonably related to risks in

5 electric and telephone facility loans (as applica6 ble), as determined by the Director.’’.

7 SEC. 5307. EQUALIZATION OF LOAN-MAKING POWERS OF

8 CERTAIN DISTRICT ASSOCIATIONS.

9 (a) IN GENERAL.—The Farm Credit Act of 1971 is

10 amended by inserting after section 7.6 (12 U.S.C. 2279b)

11 the following:

12 ‘‘SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF

13 CERTAIN DISTRICT ASSOCIATIONS.

14 ‘‘(a) EQUALIZATION OF LOAN-MAKING POWERS.—

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) FEDERAL LAND BANK ASSOCIA17 TIONS.—Subject to paragraph (2), any associa18 tion that owns a Federal land bank association

19 authorized as of January 1, 2007, to make long20 term loans under title I in its chartered territory

21 within the geographic area described in sub22 section (b) may make short- and intermediate23 term loans and otherwise operate as a produc24 tion credit association under title II within that

25 same chartered territory.
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1 ‘‘(B) PRODUCTION CREDIT ASSOCIATIONS.—

2 Subject to paragraph (2), any association that

3 under its charter has title I lending authority

4 and that owns a production credit association

5 authorized as of January 1, 2007, to make short6 and intermediate-term loans under title II in the

7 geographic area described in subsection (b) may

8 make long-term loans and otherwise operate, di9 rectly or through a subsidiary association, as a

10 Federal land bank association or Federal land

11 credit association under title I in the geographic

12 area.

13 ‘‘(C) FARM CREDIT BANK.—Notwith14 standing section 5.17(a), the Farm Credit Bank

15 with which any association had a written fi16 nancing agreement as of January 1, 2007, may

17 make loans and extend other similar financial

18 assistance with respect to, and may purchase,

19 any loans made under the new authority pro20 vided under subparagraph (A) or (B) by an as21 sociation exercising such authority.

22 ‘‘(2) REQUIRED APPROVALS.—An association

23 may exercise the additional authority provided for in

24 paragraph (1) only after the exercise of the authority

25 is approved by—
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1 ‘‘(A) the board of directors of the associa2 tion; and

3 ‘‘(B) a majority of the voting stockholders of

4 the association (or, if the association is a sub5 sidiary of another association, the voting stock6 holders of the parent association) voting, in per7 son or by proxy, at a duly authorized meeting of

8 stockholders in accordance with the process de9 scribed in section 7.11.

10 ‘‘(b) APPLICABILITY.—This section applies only to as11 sociations the chartered territory of which was within the

12 geographic area served by the Federal intermediate credit

13 bank immediately prior to its merger with a Farm Credit

14 Bank under section 410(e)(1) of the Agricultural Credit Act

15 of 1987 (12 U.S.C. 2011 note; Public Law 100–233).’’.

16 (c) CHARTER AMENDMENTS.—Section 5.17(a) of the

17 Farm Credit Act of 1971 (12 U.S.C. 2252(a)) is amended

18 by adding at the end the following:

19 ‘‘(15)(A) Approve amendments to the charters of

20 institutions of the Farm Credit System to implement

21 the equalization of loan-making powers of a Farm

22 Credit System association under section 7.7.

23 ‘‘(B) Amendments described in subparagraph (A)

24 to the charters of an association and the related Farm

25 Credit Bank shall be approved by the Farm Credit
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1 Administration, subject to any conditions of approval

2 imposed, by not later than 30 days after the date on

3 which the Farm Credit Administration receives all

4 approvals required by section 7.7 (a)(2).’’.

5 (d) CONFORMING AMENDMENTS.—

6 (1) Section 5.17(a)(2) of the Farm Credit Act of

7 1971 (12 U.S.C. 2252(a)(2)) is amended—

8 (A) by striking ‘‘(2)(A)’’ and inserting

9 ‘‘(2)’’; and

10 (B) by striking subparagraphs (B) and (C).

11 (2) SECTION 410 OF THE 1987 ACT.—Section

12 410(e)(1)(A)(iii) of the Agricultural Credit Act of

13 1987 (12 U.S.C. 2011 note; Public Law 100–233) is

14 amended by inserting ‘‘(except section 7.7 of that

15 Act)’’ after ‘‘(12 U.S.C. 2001 et seq.)’’.

16 (3) SECTION 401 OF THE 1992 ACT.—Section

17 401(b) of the Farm Credit Banks and Associations

18 Safety and Soundness Act of 1992 (12 U.S.C. 2011

19 note; Public Law 102–552) is amended—

20 (A) by inserting ‘‘(except section 7.7 of the

21 Farm Credit Act of 1971)’’ after ‘‘provision of

22 law’’; and

23 (B) by striking ‘‘, subject to such limita24 tions’’ and all that follows through the end of the

25 paragraph and inserting a period.
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1 (e) EFFECTIVE DATE.—The amendments made by this

2 section take effect on January 1, 2010.

3 Subtitle E—Miscellaneous

4 SEC. 5401. LOANS TO PURCHASERS OF HIGHLY

5 FRACTIONED LAND.

6 The first section of Public Law 91–229 (25 U.S.C. 488)

7 is amended—

8 (1) by striking ‘‘That the Secretary’’ and insert9 ing the following:

10 ‘‘SECTION 1. LOANS TO PURCHASERS OF HIGHLY

11 FRACTIONED LAND.

12 ‘‘(a) IN GENERAL.—The Secretary’’; and

13 (2) by adding at the end the following:

14 ‘‘(b) HIGHLY FRACTIONATED LAND.—

15 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

16 Secretary of Agriculture may make and insure loans

17 in accordance with section 309 of the Consolidated

18 Farm and Rural Development Act (7 U.S.C. 1929) to

19 eligible purchasers of highly fractionated land pursu20 ant to section 205(c) of the Indian Land Consolida21 tion Act (25 U.S.C. 2204(c)).

22 ‘‘(2) EXCLUSION.—Section 4 shall not apply to

23 trust land, restricted tribal land, or tribal corporation

24 land that is mortgaged in accordance with paragraph

25 (1).’’.
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1 SEC. 5402. DETERMINATION ON MERITS OF PIGFORD

2 CLAIMS.

3 (a) DEFINITIONS.—In this section:

4 (1) CONSENT DECREE.—The term ‘‘consent de5 cree’’ means the consent decree in the case of Pigford

6 v. Glickman, approved by the United States District

7 Court for the District of Columbia on April 14, 1999.

8 (2) PIGFORD CLAIM.—The term ‘‘Pigford claim’’

9 means a discrimination complaint, as defined by sec10 tion 1(h) of the consent decree and documented under

11 section 5(b) of the consent decree.

12 (3) PIGFORD CLAIMANT.—The term ‘‘Pigford

13 claimant’’ means an individual who previously sub14 mitted a late-filing request under section 5(g) of the

15 consent decree.

16 (b) DETERMINATION ON MERITS.—Any Pigford claim17 ant who has not previously obtained a determination on

18 the merits of a Pigford claim may, in a civil action brought

19 in the United States District Court for the District of Co20 lumbia, obtain that determination.

21 (c) LIMITATION.—

22 (1) IN GENERAL.—Subject to paragraph (2), all

23 payments or debt relief (including any limitation on

24 foreclosure under subsection (g)) shall be made exclu25 sively from funds made available under subsection

26 (h).
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1 (2) MAXIMUM AMOUNT.—The total amount of

2 payments and debt relief pursuant to an action com3 menced under subsection (b) shall not exceed

4 $100,000,000.

5 (d) INTENT OF CONGRESS AS TO REMEDIAL NATURE

6 OF SECTION.—It is the intent of Congress that this section

7 be liberally construed so as to effectuate its remedial pur8 pose of giving a full determination on the merits for each

9 Pigford claim denied that determination.

10 (e) LOAN DATA.—

11 (1) REPORT TO PERSON SUBMITTING PETI12 TION.—Not later than 60 days after the Secretary re13 ceives notice of a complaint filed by a claimant under

14 subsection (b), the Secretary shall provide to the

15 claimant a report on farm credit loans made within

16 the claimant’s county or adjacent county by the De17 partment during the period beginning on January 1

18 of the year preceding the year or years covered by the

19 complaint and ending on December 31 of year fol20 lowing such year or years. Such report shall contain

21 information on all persons whose application for a

22 loan was accepted, including—

23 (A) the race of the applicant;

24 (B) the date of application;

25 (C) the date of the loan decision;
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1 (D) the location of the office making the

2 loan decision; and

3 (E) all data relevant to the process of decid4 ing on the loan.

5 (2) NO PERSONALLY IDENTIFIABLE INFORMA6 TION.—The reports provided pursuant to paragraph

7 (1) shall not contain any information that would

8 identify any person that applied for a loan from the

9 Department of Agriculture.

10 (f) EXPEDITED RESOLUTIONS AUTHORIZED.—Any

11 person filing a complaint under this Act for discrimination

12 in the application for, or making or servicing of, a farm

13 loan, at his or her discretion, may seek liquidated damages

14 of $50,000, discharge of the debt that was incurred under,

15 or affected by, the discrimination that is the subject of the

16 person’s complaint, and a tax payment in the amount equal

17 to 25 percent of the liquidated damages and loan principal

18 discharged, in which case—

19 (1) if only such damages, debt discharge, and tax

20 payment are sought, the complainant shall be able to

21 prove his or her case by substantial evidence (as de22 fined in section 1(l) of the consent decree); and

23 (2) the court shall decide the case based on a re24 view of documents submitted by the complainant and
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1 defendant relevant to the issues of liability and dam2 ages.

3 (g) LIMITATION ON FORECLOSURES.—Notwith4 standing any other provision of law, the Secretary may not

5 begin acceleration on or foreclosure of a loan if the borrower

6 is a Pigford claimant and, in an appropriate administra7 tive proceeding, makes a prima facie case that the fore8 closure is related to a Pigford claim.

9 (h) FUNDING.—

10 (1) IN GENERAL.—Of the funds of the Com11 modity Credit Corporation, the Secretary shall make

12 available for payments and debt relief in satisfaction

13 of claims against the United States under subsection

14 (b) and for any actions under subsection (g)

15 $100,000,000 for fiscal year 2008, to remain available

16 until expended.

17 (2) AUTHORIZATION OF APPROPRIATIONS.—In

18 addition to funds made available under paragraph

19 (1), there are authorized to be appropriated such

20 sums as are necessary to carry out this section.

21 SEC. 5403. SENSE OF THE SENATE RELATING TO CLAIMS

22 BROUGHT BY SOCIALLY DISADVANTAGED

23 FARMERS OR RANCHERS.

24 It is the sense of the Senate that the Secretary should

25 resolve all claims and class actions brought against the De-
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1 partment of Agriculture by socially disadvantaged farmers

2 or ranchers (as defined in section 355(e) of the Consolidated

3 Farm and Rural Development Act (7 U.S.C. 2003(e)), in4 cluding Native American, Hispanic, and female farmers or

5 ranchers, based on racial, ethnic, or gender discrimination

6 in farm program participation in an expeditious and just

7 manner.

8 SEC. 5404. ELIGIBILITY OF EQUINE FARMERS AND RANCH9 ERS FOR EMERGENCY LOANS.

10 Section 321(a) of the Consolidated Farm and Rural

11 Development Act (7 U.S.C. 1961(a)) is amended—

12 (1) in paragraph (1), by striking ‘‘farmers,

13 ranchers’’ and inserting ‘‘farmers or ranchers (includ14 ing equine farmers or ranchers)’’; and

15 (2) in paragraph (2)(A), by striking ‘‘farming,

16 ranching,’’ and inserting ‘‘farming or ranching (in17 cluding equine farming or ranching)’’.
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1 TITLE VI—RURAL DEVELOPMENT

2 AND INVESTMENT

3 Subtitle A—Consolidated Farm and

4 Rural Development Act

5 SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FA6 CILITY GRANTS.

7 Section 306(a)(2)(B)(vii) of the Consolidated Farm

8 and Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii))

9 is amended, by striking ‘‘2007’’ and inserting ‘‘2012’’.

10 SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS.

11 Section 306(a)(11)(D) of the Consolidated Farm and

12 Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is

13 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

14 SEC. 6003. CHILD DAY CARE FACILITY GRANTS, LOANS, AND

15 LOAN GUARANTEES.

16 Section 306(a)(19) of the Consolidated Farm and

17 Rural Development Act (7 U.S.C. 1926(a)(19)) is amended

18 by striking subparagraph (C) and inserting the following:

19 ‘‘(C) CHILD DAY CAREFACILITIES.—

20 ‘‘(i) IN GENERAL.—Of the funds of the

21 Commodity Credit Corporation, the Sec22 retary shall use for the costs of grants,

23 loans, and loan guarantees to pay the Fed24 eral share of the cost of developing and con25 structing day care facilities for children in
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1 rural areas, as determined by the Secretary,

2 $40,000,000 for fiscal year 2008, to remain

3 available until expended.

4 ‘‘(ii) RELATIONSHIP TO OTHER FUND5 ING AND AUTHORITIES.—The funds and au6 thorities made available under this sub7 paragraph shall be in addition to other

8 funds and authorities relating to develop9 ment and construction of rural day care fa10 cilities.’’.

11 SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT

12 RIDER PROGRAM.

13 Section 306(a)(22) of the Consolidated Farm and

14 Rural Development Act (7 U.S.C. 1926(a)(22)) is

15 amended—

16 (1) in subparagraph (B), by striking ‘‘2002 (115

17 Stat. 719)’’ and inserting ‘‘2008’’; and

18 (2) in subparagraph (C), by striking

19 ‘‘$15,000,000 for fiscal year 2003’’ and inserting

20 ‘‘$20,000,000 for fiscal year 2008’’.

21 SEC. 6005. MULTIJURISDICTIONAL REGIONAL PLANNING

22 ORGANIZATIONS.

23 Section 306(a)(23)(E) of the Consolidated Farm and

24 Rural Development Act (7 U.S.C. 1926(a)(23)(E)) is

25 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
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1 SEC. 6006. RURAL HOSPITAL LOANS AND LOAN GUARAN2 TEES.

3 Section 306(a)(24) of the Consolidated Farm and

4 Rural Development Act (7 U.S.C. 1926(a)(24)) is amended

5 by adding at the end the following:

6 ‘‘(C) RURAL HOSPITALS.—

7 ‘‘(i) IN GENERAL.—Of the funds of the

8 Commodity Credit Corporation, the Sec9 retary shall use for the costs of loans and

10 loan guarantees to pay the Federal share of

11 the cost of rehabilitating or improving hos12 pitals that have not more than 100 acute

13 beds in rural areas, as determined by the

14 Secretary, $50,000,000 for fiscal year 2008,

15 to remain available until expended, of

16 which not less than $25,000,000 shall be for

17 use at hospitals in rural areas with not

18 more than 50 acute beds.

19 ‘‘(ii) PRIORITY.—In making loans and

20 loan guarantees under this subparagraph,

21 the Secretary shall give priority to hospitals

22 for—

23 ‘‘(I) the provision of facilities to

24 improve and install patient care,

25 health quality outcomes, and health in26 formation technology, including com-
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1 puter hardware and software, equip2 ment for electronic medical records,

3 handheld computer technology, and

4 equipment that improves interoper5 ability; or

6 ‘‘(II) the acquisition of equipment

7 and software purchased collectively in

8 a cost effective manner to address tech9 nology needs.

10 ‘‘(iii) RELATIONSHIP TO OTHER FUND11 ING AND AUTHORITIES.—The funds and au12 thorities made available under this sub13 paragraph shall be in addition to other

14 funds and authorities relating to rehabilita15 tion and improvement of hospitals described

16 in clause (i).’’.

17 SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL

18 COMMUNITY FACILITIES.

19 Section 306(a)(25) of the Consolidated Farm and

20 Rural Development Act (7 U.S.C. 1926(a)(25)) is

21 amended—

22 (1) in subparagraph (B)(ii), by striking ‘‘75 per23 cent’’ and inserting ‘‘95 percent’’; and

24 (2) in subparagraph (C), by striking ‘‘2007’’ and

25 inserting ‘‘2012’’.
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1 SEC. 6008. COMMUNITY FACILITY LOANS AND GRANTS FOR

2 FREELY ASSOCIATED STATES AND OUTLYING

3 AREAS.

4 Section 306(a) of the Consolidated Farm and Rural

5 Development Act (7 U.S.C. 1926(a)) is amended by adding

6 at the end the following:

7 ‘‘(26) COMMUNITY FACILITY LOANS AND GRANTS

8 FOR FREELY ASSOCIATED STATES AND OUTLYING

9 AREAS.—

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (B), of the amount that is made available

12 for each fiscal year for each of the community fa13 cility loan and grant programs established under

14 paragraphs (1), (19), (20), (21), and (25), the

15 Secretary shall allocate 0.5 percent of the

16 amount for making loans or grants (as applica17 ble) under the program to eligible entities that

18 are located in freely associated States or outlying

19 areas (as those terms are defined in section

20 1121(c) of the Elementary and Secondary Edu21 cation Act of 1965 (20 U.S.C. 6331(c)) that are

22 subject to the jurisdiction of the United States

23 and are otherwise covered by this Act.

24 ‘‘(B) REALLOCATION.—If the Secretary de25 termines that a sufficient number of applications

26 for loans or grants for a program described in
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1 subparagraph (A) have not been received from el2 igible entities for a fiscal year during the 180-

3 day period beginning on October 1 of the fiscal

4 year, the Secretary shall reallocate any unused

5 funds to make loans or grants (as applicable)

6 under the program to eligible entities that are lo7 cated in States.’’.

8 SEC. 6009. PRIORITY FOR COMMUNITY FACILITY LOAN AND

9 GRANT PROJECTS WITH HIGH NON-FEDERAL

10 SHARE.

11 Section 306(a) of the Consolidated Farm and Rural

12 Development Act (7 U.S.C. 1926(a)) (as amended by section

13 6008) is amended by adding at the end the following:

14 ‘‘(27) PRIORITY FOR COMMUNITY FACILITY LOAN

15 AND GRANT PROJECTS WITH HIGH NON-FEDERAL

16 SHARE.—In carrying out the community facility loan

17 and grant programs established under paragraphs

18 (1), (19), (20), (21), and (25), the Secretary shall give

19 priority to projects that will be carried out with a

20 non-Federal share of funds that is substantially great21 er than the minimum requirement, as determined by

22 the Secretary by regulation.’’.
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1 SEC. 6010. SEARCH GRANTS.

2 Section 306(a) of the Consolidated Farm and Rural

3 Development Act (7 U.S.C. 1926(a)) (as amended by section

4 6009) is amended by adding at the end the following:

5 ‘‘(28) APPLICATIONS FILED BY ELIGIBLE COMMU6 NITIES.—

7 ‘‘(A) ELIGIBLECOMMUNITY.—In this para8 graph, the term ‘eligible community’ means a

9 community that, as determined by the

10 Secretary—

11 ‘‘(i) has a population of 2,500 or fewer

12 inhabitants; and

13 ‘‘(ii) is financially distressed.

14 ‘‘(B) APPLICATIONS.—In the case of water

15 and waste disposal and wastewater facilities

16 grant programs authorized under this title, the

17 Secretary may accept applications from eligible

18 communities for grants for feasibility study, de19 sign, and technical assistance.

20 ‘‘(C) TERMS.—

21 ‘‘(i) IN GENERAL.—Except as provided

22 in clause (ii), the terms of the grant pro23 grams described in subparagraph (B) shall

24 apply to the applications described in that

25 subparagraph.
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1 ‘‘(ii) EXCEPTIONS.—Grants made pur2 suant to applications described in subpara3 graph (B)—

4 ‘‘(I) shall fund up to 100 percent

5 of eligible project costs; and

6 ‘‘(II) shall be subject to the least

7 documentation requirements prac8 ticable.

9 ‘‘(iii) PROCESSING.—The Secretary

10 shall process applications received under

11 subparagraph (B) in the same manner as

12 other similar grant applications.

13 ‘‘(D) FUNDING.—In addition to any other

14 funds made available for technical assistance, the

15 Secretary may use to carry out this paragraph

16 not more than 4 percent of the total amount of

17 funds made available for a fiscal year for water,

18 waste disposal, and essential community facili19 ties.’’.

20 SEC. 6011. EMERGENCY AND IMMINENT COMMUNITY WATER

21 ASSISTANCE GRANT PROGRAM.

22 Section 306A(i)(2) of the Consolidated Farm and

23 Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended

24 by striking ‘‘2007’’ and inserting ‘‘2012’’.
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1 SEC. 6012. WATER SYSTEMS FOR RURAL AND NATIVE VIL2 LAGES IN ALASKA.

3 Section 306D of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1926d) is amended—

5 (1) in subsection (a)—

6 (A) by striking ‘‘make grants to the State’’

7 and inserting ‘‘make grants to—

8 ‘‘(1) the State’’;

9 (B) by striking the period at the end and

10 inserting ‘‘; and’’; and

11 (C) by adding at the end the following:

12 ‘‘(2) the Denali Commission to improve solid

13 waste disposal sites that are contaminating, or threat14 en to contaminate, rural drinking water supplies in

15 the State of Alaska.’’;

16 (2) in subsection (c)—

17 (A) in the subsection heading by striking

18 ‘‘WITH THE STATEOF ALASKA’’; and

19 (B) by striking ‘‘the State of Alaska’’ and

20 inserting ‘‘the appropriate grantee under sub21 section (a)’’; and

22 (3) in subsection (d)—

23 (A) in paragraph (1), by striking ‘‘2007’’

24 and inserting ‘‘2013’’;

25 (B) by redesignating paragraph (3) as

26 paragraph (4); and
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1 (C) by inserting after paragraph (2) the fol2 lowing:

3 ‘‘(3) DENALI COMMISSION.—Not more than 5

4 percent of the amount made available under para5 graph (1) for a fiscal year may be transferred to the

6 Denali Commission to improve solid waste disposal

7 sites that are contaminating, or threaten to contami8 nate, rural drinking supplies in the State of Alaska.’’.

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

10 (a) GRANTS TO NONPROFIT ORGANIZATIONS TO FI11 NANCETHE CONSTRUCTION, REFURBISHING, AND SERV12 ICING OF INDIVIDUALLY-OWNED HOUSEHOLD WATER

13 WELL SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH

14 LOW OR MODERATE INCOMES.—Section 306E(d) of the

15 Consolidated Farm and Rural Development Act (7 U.S.C.

16 1926e(d)) is amended by striking ‘‘2007’’ and inserting

17 ‘‘2012’’.

18 (b) GRANTS TO DEVELOP AREA WELLS IN ISOLATED

19 AREAS.—Subtitle A of the Consolidated Farm and Rural

20 Development Act is amended by inserting after section

21 306E (7 U.S.C. 1926e) the following:

22 ‘‘SEC. 306F. GRANTS TO DEVELOP AREA WELLS IN ISO23 LATED AREAS.

24 ‘‘(a) DEFINITION OF ISOLATED AREA.—In this section,

25 the term ‘isolated area’ means an area—
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1 ‘‘(1) in which the development of a traditional

2 water system is not financially practical due to—

3 ‘‘(A) the distances or geography of the area;

4 and

5 ‘‘(B) the limited number of households

6 present to be served; and

7 ‘‘(2) that is not part of a city of more than 1,000

8 inhabitants.

9 ‘‘(b) GRANTS.—The Secretary may make grants to

10 nonprofit organizations to develop and construct household,

11 shared, and community water wells in isolated rural areas.

12 ‘‘(c) PRIORITY IN AWARDING GRANTS.—In awarding

13 grants under this section, the Secretary shall give priority

14 to applicants that have demonstrated experience in devel15 oping safe and similar projects including household, shared,

16 and community wells in rural areas.

17 ‘‘(d) REQUIREMENTS.—

18 ‘‘(1) IN GENERAL.—As a condition on receipt of

19 a grant under this section, the water from wells fund20 ed under this section shall be tested annually for

21 water quality, as determined by the Secretary.

22 ‘‘(2) RESULTS.—The results of tests under para23 graph (1) shall be made available to—

24 ‘‘(A) the users of the wells; and

25 ‘‘(B) the appropriate State agency.
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1 ‘‘(e) LIMITATION.—The amount of a grant under this

2 section shall not exceed the lesser of—

3 ‘‘(1) $50,000; or

4 ‘‘(2) the amount that is 75 percent of the cost of

5 a single well and associated system.

6 ‘‘(f) PROHIBITION.—The Secretary may not award

7 grants under this section in any area in which a majority

8 of the users of a proposed well have a household income that

9 is greater than the nonmetropolitan median household in10 come of the State or territory, as determined by the Sec11 retary.

12 ‘‘(g) ADMINISTRATIVE EXPENSES.—Not more than 10

13 percent of the amount of a grant made under this section

14 may be used to pay administrative expenses associated with

15 providing project assistance, as determined by the Sec16 retary.

17 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is

18 authorized to be appropriated to carry out this section

19 $10,000,000 for each of fiscal years 2008 through 2012.’’.

20 SEC. 6014. COOPERATIVE EQUITY SECURITY GUARANTEE.

21 Section 310B of the Consolidated Farm and Rural De22 velopment Act (7 U.S.C. 1932) is amended—

23 (1) in the first sentence of subsection (a), by in24 serting ‘‘and private investment funds that invest pri-
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1 marily in cooperative organizations’’ after ‘‘or non2 profit’’; and

3 (2) in subsection (g)—

4 (A) in paragraph (1), by inserting ‘‘, in5 cluding guarantees described in paragraph

6 (3)(A)(ii)’’ before the period at the end;

7 (B) in paragraph (3)(A)—

8 (i) by striking ‘‘(A) IN GENERAL.—The

9 Secretary’’ and inserting the following:

10 ‘‘(A) ELIGIBILITY.—

11 ‘‘(i) IN GENERAL.—The Secretary’’;

12 and

13 (ii) by adding at the end the following:

14 ‘‘(ii) EQUITY.—The Secretary may

15 guarantee a loan made for the purchase of

16 preferred stock or similar equity issued by

17 a cooperative organization or a fund that

18 invests primarily in cooperative organiza19 tions, if the guarantee significantly benefits

20 1 or more entities eligible for assistance

21 under subsection (a)(1), as determined by

22 the Secretary.’’; and

23 (C) in paragraph (8)(A)(ii), by striking ‘‘a

24 project—’’ and all that follows through the end

25 of subclause (II) and inserting ‘‘a project that—
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1 ‘‘(I)(aa) is in a rural area; and

2 ‘‘(bb) provides for the value-added

3 processing of agricultural commodities;

4 or

5 ‘‘(II) significantly benefits 1 or

6 more entities eligible for assistance

7 under subsection (a)(1), as determined

8 by the Secretary.’’.

9 SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

10 (a) ELIGIBILITY.—Section 310B(e)(5) of the Consoli11 dated Farm and Rural Development Act (7 U.S.C.

12 1932(e)(5)) is amended—

13 (1) in subparagraph (A), by striking ‘‘a nation14 ally coordinated, regionally or State-wide operated

15 project’’ and inserting ‘‘activities to promote and as16 sist the development of cooperatively- and mutually17 owned businesses’’;

18 (2) in subparagraph (B), by inserting ‘‘to pro19 mote and assist the development of cooperatively- and

20 mutually-owned businesses’’ before the semicolon;

21 (3) by striking subparagraph (D);

22 (4) by redesignating subparagraph (E) as sub23 paragraph (D);

24 (5) in subparagraph (D) (as so redesignated), by

25 striking ‘‘and’’ at the end;
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1 (6) by inserting after subparagraph (D) (as so

2 redesignated) the following:

3 ‘‘(E) demonstrate a commitment to—

4 ‘‘(i) networking with and sharing the

5 results of the efforts of the center with other

6 cooperative development centers and other

7 organizations involved in rural economic

8 development efforts; and

9 ‘‘(ii) developing multiorganization and

10 multistate approaches to addressing the co11 operative and economic development needs

12 of rural areas; and’’;

13 (7) in subparagraph (F), by striking ‘‘providing

14 greater than’’ and inserting ‘‘providing’’.

15 (b) AUTHORITY TO AWARD MULTIYEAR GRANTS.—

16 Section 310B(e) of the Consolidated Farm and Rural Devel17 opment Act (7 U.S.C. 1932(e)) is amended by striking

18 paragraph (6) and inserting the following:

19 ‘‘(6) GRANT PERIOD.—

20 ‘‘(A) IN GENERAL.—A grant awarded to a

21 center that has received no prior funding under

22 this subsection shall be made for a period of 1

23 year.

24 ‘‘(B) MULTIYEAR GRANTS.—If the Secretary

25 determines it to be in the best interest of the pro-
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1 gram, the Secretary shall award grants for a pe2 riod of more than 1 year, but not more than 3

3 years, to a center that has successfully met the

4 parameters described in paragraph (5).’’.

5 (c) AUTHORITY TO EXTEND GRANT PERIOD.—Section

6 310B(e) of the Consolidated Farm and Rural Development

7 Act (7 U.S.C. 1932(e)) is amended—

8 (1) by redesignating paragraphs (7), (8), and (9)

9 as paragraphs (8), (9), and (12), respectively; and

10 (2) inserting after paragraph (6) the following:

11 ‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.—

12 The Secretary may extend for 1 additional 12-month

13 period the period in which a grantee may use a grant

14 made under this subsection.’’.

15 (d) COOPERATIVE RESEARCH PROGRAM.—Section

16 310B(e) of the Consolidated Farm and Rural Development

17 Act (7 U.S.C. 1932(e)) is amended by inserting after para18 graph (9) (as redesignated by subsection (c)(1)) the fol19 lowing:

20 ‘‘(10) COOPERATIVE RESEARCH PROGRAM.—The

21 Secretary shall enter into a cooperative research

22 agreement with 1 or more qualified academic institu23 tions in each fiscal year to conduct research on the

24 national economic effects of all types of cooperatives.’’.
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1 (e) ADDRESSING NEEDS OF MINORITY COMMU2 NITIES.—Section 310B(e) of the Consolidated Farm and

3 Rural Development Act (7 U.S.C. 1932(e)) is amended by

4 inserting after paragraph (10) (as added by subsection (d))

5 the following:

6 ‘‘(11) ADDRESSING NEEDS OF MINORITY COMMU7 NITIES.—

8 ‘‘(A) DEFINITION OF SOCIALLY DISADVAN9 TAGED.—In this paragraph, the term ‘socially

10 disadvantaged’ has the meaning given the term

11 in section 355(e).

12 ‘‘(B) RESERVATION OF FUNDS.—

13 ‘‘(i) IN GENERAL.—If the total amount

14 appropriated under paragraph (12) for a

15 fiscal year exceeds $7,500,000, the Secretary

16 shall reserve an amount equal to 20 percent

17 of the total amount appropriated for grants

18 for cooperative development centers, indi19 vidual cooperatives, or groups of coopera20 tives that serve socially disadvantaged com21 munities, a majority of the boards of direc22 tors or governing boards of which are com23 prised of socially disadvantaged individ24 uals.
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1 ‘‘(ii) INSUFFICIENT APPLICATIONS.—

2 To the extent that the Secretary determines

3 that funds reserved under clause (i) would

4 not be used for grants described in that

5 clause due to insufficient applications for

6 the grants, the Secretary shall use the funds

7 as otherwise authorized by this subsection.’’.

8 (f) AUTHORIZATION OF APPROPRIATIONS.—Paragraph

9 (12) of section 310B(e) of the Consolidated Farm and Rural

10 Development Act (7 U.S.C. 1932(e)) (as redesignated by

11 subsection (c)(1)) is amended by striking ‘‘2007’’ and in12 serting ‘‘2012’’.

13 SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

14 Section 310B(f)(3) of the Consolidated Farm and

15 Rural Development Act (7 U.S.C. 1932(f)(3)) is amended

16 by striking ‘‘2007’’ and inserting ‘‘2012’’.

17 SEC. 6017. LOCALLY-PRODUCED AGRICULTURAL FOOD

18 PRODUCTS.

19 Section 310B(g) of the Consolidated Farm and Rural

20 Development Act (7 U.S.C. 1932(g)) is amended by adding

21 at the end the following:

22 ‘‘(9) LOCALLY-PRODUCED AGRICULTURAL FOOD

23 PRODUCTS.—

24 ‘‘(A) DEFINITIONS.—In this paragraph:
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1 ‘‘(i) LOCALLY-PRODUCED AGRICUL2 TURAL FOOD PRODUCT.—The term ‘locally3 produced agricultural food product’ means

4 any agricultural product raised, produced,

5 and distributed in—

6 ‘‘(I) the locality or region in

7 which the final agricultural product is

8 marketed, so that the total distance

9 that the agricultural product is trans10 ported is less than 300 miles from the

11 origin of the agricultural product; or

12 ‘‘(II) the State in which the agri13 cultural product is produced.

14 ‘‘(ii) UNDERSERVED COMMUNITY.—The

15 term ‘underserved community’ means a

16 community (including an urban or rural

17 community and an Indian tribal commu18 nity) that has, as determined by the

19 Secretary—

20 ‘‘(I) limited access to affordable,

21 healthy foods, including fresh fruits

22 and vegetables, in grocery retail stores

23 or farmer-to-consumer direct markets

24 or a high incidence of a diet-related
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1 disease as compared to the national av2 erage, including obesity; and

3 ‘‘(II) a high rate of hunger or food

4 insecurity or a high poverty rate.

5 ‘‘(B) LOAN AND LOAN GUARANTEE PRO6 GRAM.—

7 ‘‘(i) IN GENERAL.—The Secretary, act8 ing through the Administrator of the Rural

9 Business-Cooperative Service in coordina10 tion with the Administration of the Agricul11 tural Marketing Service, shall make or

12 guarantee loans to individuals, cooperatives,

13 businesses, and other entities to establish

14 and facilitate enterprises that process, dis15 tribute, aggregate, store, and market locally16 produced agricultural food products.

17 ‘‘(ii) REQUIREMENT.—The recipient of

18 a loan or loan guarantee under clause (i)

19 shall agree to make a reasonable effort, as

20 determined by the Secretary, to work with

21 retail and institutional facilities to which

22 the recipient sells locally-produced agricul23 tural food products to inform the consumers

24 of the retail or institutional facilities that
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1 the consumers are purchasing or consuming

2 locally-produced agricultural food products.

3 ‘‘(iii) PRIORITY.—In making or guar4 anteeing a loan under clause (i), the Sec5 retary shall give priority to—

6 ‘‘(I) projects that support commu7 nity development and farm and ranch

8 income by marketing, distributing,

9 storing, aggregating, or processing a

10 locally-produced agricultural food

11 product; and

12 ‘‘(II) projects that have compo13 nents benefitting underserved commu14 nities.

15 ‘‘(iv) RETAIL OR INSTITUTIONAL FA16 CILITIES.—The Secretary may allow recipi17 ents of loans or loan guarantees under

18 clause (i) to provide up to $250,000 in loan

19 or loan guarantee funds per retail or insti20 tutional facility for an underserved commu21 nity in a rural or nonrural area to help re22 tail facilities—

23 ‘‘(I) to modify and update the fa24 cilities to accommodate locally-pro25 duced agricultural food products; and
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1 ‘‘(II) to provide outreach to con2 sumers about the sale of locally-pro3 duced agricultural food products.

4 ‘‘(v) REPORTS.—Not later than 1 year

5 after the date of enactment of this para6 graph and annually thereafter, the Sec7 retary shall submit to the Committee on Ag8 riculture of the House of Representatives

9 and the Committee on Agriculture, Nutri10 tion, and Forestry of the Senate a report

11 that describes projects carried out using

12 loans or loan guarantees made under clause

13 (i), including—

14 ‘‘(I) the characteristics of the com15 munities served by the projects; and

16 ‘‘(II) benefits of the projects.

17 ‘‘(vi) RESERVATION OF FUNDS.—

18 ‘‘(I) IN GENERAL.—For each of

19 fiscal years 2008 through 2012, the

20 Secretary shall reserve not less than 5

21 percent of the funds made available to

22 carry out this subsection to carry out

23 this subparagraph.

24 ‘‘(II) AVAILABILITY OF FUNDS.—

25 Funds reserved under subclause (I) for
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1 a fiscal year shall be reserved until

2 April 1 of the fiscal year.’’.

3 SEC. 6018. APPROPRIATE TECHNOLOGY TRANSFER FOR

4 RURAL AREAS.

5 Section 310B of the Consolidated Farm and Rural De6 velopment Act (7 U.S.C. 1932) is amended by adding at

7 the end the following:

8 ‘‘(i) APPROPRIATE TECHNOLOGY TRANSFER FOR

9 RURAL AREAS PROGRAM.—

10 ‘‘(1) DEFINITION OF NATIONAL NONPROFIT AGRI11 CULTURAL ASSISTANCEINSTITUTION.—In this sub12 section, the term ‘national nonprofit agricultural as13 sistance institution’ means an organization that—

14 ‘‘(A) is described in section 501(c)(3) of the

15 Internal Revenue Code of 1986 and exempt from

16 taxation under 501(a) of that Code;

17 ‘‘(B) has staff and offices in multiple re18 gions of the United States;

19 ‘‘(C) has experience and expertise in oper20 ating national sustainable agriculture technical

21 assistance programs; and

22 ‘‘(D) provides the technical assistance

23 through toll-free hotlines, 1 or more websites,

24 publications, and workshops.
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1 ‘‘(2) ESTABLISHMENT.—The Secretary shall es2 tablish a national appropriate technology transfer for

3 rural areas program to assist agricultural producers

4 that are seeking information to help the agricultural

5 producers—

6 ‘‘(A) reduce input costs;

7 ‘‘(B) conserve energy resources;

8 ‘‘(C) diversify operations through new en9 ergy crops and energy generation facilities; and

10 ‘‘(D) expand markets for the agricultural

11 commodities produced by the producers through

12 use of practices involving sustainable agri13 culture.

14 ‘‘(3) IMPLEMENTATION.—

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

16 carry out the program under this subsection by

17 making a grant to, or offering to enter into a co18 operative agreement with, a national nonprofit

19 agricultural assistance organization.

20 ‘‘(B) GRANT AMOUNT.—A grant made, or

21 cooperative agreement entered into, under sub22 paragraph (A) shall provide 100 percent of the

23 cost of providing information described in para24 graph (2).
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1 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—

2 There are authorized to be appropriated to carry out

3 this subsection $5,000,000 for each of fiscal years

4 2008 through 2012.’’.

5 SEC. 6019. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

6 Section 310B of the Consolidated Farm and Rural De7 velopment Act (7 U.S.C. 1932) (as amended by section

8 6019) is amended by adding at the end the following:

9 ‘‘(j) RURAL ECONOMIC AREA PARTNERSHIP ZONES.—

10 For the period beginning on the date of enactment of this

11 subsection and ending on September 30, 2012, the Secretary

12 shall carry out rural economic area partnership zones in

13 the States of New York, North Dakota, and Vermont, in ac14 cordance with the terms and conditions contained in the

15 memorandums of agreement entered into by the Secretary

16 for the rural economic area partnership zones, except as oth17 erwise provided in this subsection.’’.

18 SEC. 6020. DEFINITIONS.

19 (a) RURAL AREA.—Section 343(a) of the Consolidated

20 Farm and Rural Development Act (7 U.S.C. 1991(a)) is

21 amended by striking paragraph (13) and inserting the fol22 lowing:

23 ‘‘(13) RURAL AND RURAL AREA.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graphs (B) and (C), the terms ‘rural’ and ‘rural

3 area’ mean any area other than—

4 ‘‘(i) a city or town that has a popu5 lation of greater than 50,000 inhabitants,

6 except that, for all activities under pro7 grams in the rural development mission

8 area within the areas of the County of Hon9 olulu, Hawaii, and the Commonwealth of

10 Puerto Rico, the Secretary may designate

11 any portion of the areas as a rural area or

12 eligible rural community that the Secretary

13 determines is not urban in character, other

14 than any area included in the Honolulu

15 Census Designated Place or the San Juan

16 Census Designated Place;

17 ‘‘(ii) any urbanized area (as defined

18 by the Bureau of the Census) contiguous

19 and adjacent to a city or town described in

20 clause (i); and

21 ‘‘(iii) any collection of census blocks

22 contiguous to each other (as defined by the

23 Bureau of the Census) that—
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1 ‘‘(I) is adjacent to a city or town

2 described in clause (i) or an urbanized

3 area described in clause (ii); and

4 ‘‘(II) has a housing density that

5 the Secretary estimates is greater than

6 200 housing units per square mile, ex7 cept that an applicant may appeal the

8 estimate based on actual data for the

9 area.

10 ‘‘(B) WATER AND WASTE DISPOSAL GRANTS

11 AND DIRECT AND GUARANTEED LOANS.—For the

12 purpose of water and waste disposal grants and

13 direct and guaranteed loans provided under

14 paragraphs (1), (2), and (24) of section 306(a),

15 the terms ‘rural’ and ‘rural area’ mean a city,

16 town, or unincorporated area that has a popu17 lation of no more than 10,000 inhabitants.

18 ‘‘(C) COMMUNITY FACILITY LOANS AND

19 GRANTS.—For the purpose of community facility

20 direct and guaranteed loans and grants under

21 paragraphs (1), (19), (20), (21), and (24) of sec22 tion 306(a), the terms ‘rural’ and ‘rural area’

23 mean any area other than—

24 ‘‘(i) an area described in clause (i),

25 (ii), or (iii) of subparagraph (A); and
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1 ‘‘(ii) a city, town, or unincorporated

2 area that has a population of greater than

3 20,000 inhabitants.

4 ‘‘(D) AREAS RURAL IN CHARACTER.—

5 ‘‘(i) IN GENERAL.—Notwithstanding

6 any other provision of this paragraph, the

7 Under Secretary for Rural Development

8 may determine (pursuant to a petition by

9 a local community or on the initiative of

10 the Under Secretary) that an area described

11 in clause (ii) or (iii) of subparagraph (A)

12 is a rural area for the purposes of this

13 paragraph, if the Under Secretary finds

14 that the area is rural in character, as deter15 mined by the Under Secretary.

16 ‘‘(ii) ADMINISTRATION.—In carrying

17 out clause (i), the Under Secretary for

18 Rural Development—

19 ‘‘(I) shall not delegate the author20 ity described in clause (i); but

21 ‘‘(II) shall consult with the appli22 cable rural development State or re23 gional director of the Department of

24 Agriculture.
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1 ‘‘(E) EXCLUSIONS.—Notwithstanding any

2 other provision of this paragraph, in deter3 mining which census blocks are not in a rural

4 area (as defined in this paragraph), the Sec5 retary shall exclude any cluster of census blocks

6 that would otherwise be considered not in a rural

7 area only because the cluster is adjacent to not

8 more than 2 census blocks that are otherwise con9 sidered not in a rural area under this para10 graph.’’.

11 (b) ANNUAL REPORTS.—Not later than 2 years after

12 the date of enactment of this Act and every 2 years there13 after, the Secretary shall prepare and submit to the Com14 mittee on Agriculture of the House of Representatives and

15 the Committee on Agriculture, Nutrition, and Forestry of

16 the Senate a report that—

17 (1) assesses the various definitions of the term

18 ‘‘rural’’ and ‘‘rural area’’ that are used with respect

19 to programs administered by the Secretary;

20 (2) describes the effects that the variations in

21 those definitions have on those programs;

22 (3) make recommendations for ways to better

23 target funds provided through rural development pro24 grams;
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1 (4) describes the effects the changes to the defini2 tions of the terms ‘‘rural’’ and ‘‘rural area’’ in the

3 Farm Security and Rural Investment Act of 2002

4 and this Act had on those programs and eligible

5 areas; and

6 (5) determines what effects the changes had on

7 the level of rural development funding and participa8 tion in those programs in each State.

9 (b) ADDITIONAL TERMS.—Section 343(a) of the Con10 solidated Farm and Rural Development Act (7 U.S.C.

11 1991(a)) is amended by adding at the end the following:

12 ‘‘(14) SUSTAINABLEAGRICULTURE.—The term

13 ‘sustainable agriculture’ means an integrated system

14 of plant and animal production practices having a

15 site-specific application that will, over the long16 term—

17 ‘‘(A) satisfy human food and fiber needs;

18 ‘‘(B) enhance environmental quality and

19 the natural resource base upon which the agri20 culture economy depends;

21 ‘‘(C) make the most efficient use of non22 renewable resources and on-farm resources and

23 integrate, where appropriate, natural biological

24 cycles and controls;
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1 ‘‘(D) sustain the economic viability of farm

2 operations; and

3 ‘‘(E) enhance the quality of life for farmers

4 and society as a whole.

5 ‘‘(15) TECHNICAL ASSISTANCE.—The term ‘tech6 nical assistance’ means managerial, financial, oper7 ational, and scientific analysis and consultation to

8 assist an individual or entity (including a borrower

9 or potential borrower under this title)—

10 ‘‘(A) to identify and evaluate practices, ap11 proaches, problems, opportunities, or solutions;

12 and

13 ‘‘(B) to assist in the planning, implementa14 tion, management, operation, marketing, or

15 maintenance of projects authorized under this

16 title.’’.

17 (c) COMMERCIAL FISHING.—Section 343 of the Con18 solidated Farm and Rural Development Act (7 U.S.C.

19 1991) is amended—

20 (1) in subsection (a), by inserting ‘‘and, in the

21 case of subtitle B, commercial fishing’’ before the pe22 riod at the end of each of paragraphs (1) and (2);

23 and

24 (2) by adding at the end the following:
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1 ‘‘(c) DEFINITION OF FARM.—In subtitle B, the term

2 ‘farm’ includes a commercial fishing enterprise the owner

3 or operator of which is unable to obtain commercial credit

4 from a bank or other lender, as determined by the Sec5 retary.’’.

6 SEC. 6021. GEOGRAPHICALLY DISADVANTAGED FARMERS

7 AND RANCHERS.

8 (a) IN GENERAL.—The Consolidated Farm and Rural

9 Development Act is amended by inserting after section 344

10 (7 U.S.C. 1992) the following:

11 ‘‘SEC. 345. GEOGRAPHICALLY DISADVANTAGED FARMERS

12 AND RANCHERS.

13 ‘‘(a) DEFINITIONS.—In this section:

14 ‘‘(1) AGRICULTURAL COMMODITY.—The term ‘ag15 ricultural commodity’ has the meaning given the term

16 in section 102 of the Agricultural Trade Act of 1978

17 (7 U.S.C. 5602).

18 ‘‘(2) GEOGRAPHICALLY DISADVANTAGED FARMER

19 OR RANCHER.—The term ‘geographically disadvan20 taged farmer or rancher’ has the meaning given the

21 term in section 10906(a) of the Farm Security and

22 Rural Investment Act of 2002 (7 U.S.C. 2204 note;

23 Public Law 107–171).

24 ‘‘(b) AUTHORIZATION.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2)

2 and the availability of funds under subsection (d), for

3 each fiscal year, the Secretary may provide geo4 graphically disadvantaged farmers or ranchers direct

5 reimbursement payments for activities described in

6 subsection (c).

7 ‘‘(2) LIMITATION.—The total amount of direct

8 reimbursement payments provided by the Secretary

9 under this section shall not exceed $15,000,000 for

10 each fiscal year.

11 ‘‘(c) TRANSPORTATION.—

12 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

13 and (3), the Secretary may provide direct reimburse14 ment payments to a geographically disadvantaged

15 farmer or rancher to transport an agricultural com16 modity, or inputs used to produce an agricultural

17 commodity, during a fiscal year.

18 ‘‘(2) PROOF OF ELIGIBILITY.—To be eligible to

19 receive assistance under paragraph (1), farmer or

20 rancher shall provide to the Secretary proof (as deter21 mined by the Secretary) that transportation or the

22 agricultural commodity or inputs occurred over a dis23 tance of more than 30 miles.

24 ‘‘(3) AMOUNT.—The amount of direct reimburse25 ment payments made to a geographically disadvan-
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1 taged farmer or rancher under a subsection for a fis2 cal year shall equal the product obtained by

3 multiplying—

4 ‘‘(A) the amount of costs incurred by the

5 farmer or rancher for transportation of the agri6 cultural commodity or inputs during the fiscal

7 year; and

8 ‘‘(B) the percentage of the allowance for

9 that fiscal year made under section 5941 of title

10 5, United States Code, for Federal employees sta11 tioned in Alaska and Hawaii.

12 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated such sums as are nec14 essary to carry out this section.’’.

15 (b) EFFECTIVE DATE.—The amendment made by sub16 section (a) takes effect on October 1, 2007.

17 SEC. 6022. RURAL MICROENTERPRISE ASSISTANCE PRO18 GRAM.

19 Subtitle D of the Consolidated Farm and Rural Devel20 opment Act (as amended by section 5207) is amended by

21 inserting after section 365 the following:

22 ‘‘SEC. 366. RURAL MICROENTERPRISE ASSISTANCE PRO23 GRAM.

24 ‘‘(a) DEFINITIONS.—In this section:
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1 ‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has

2 the meaning given the term in section 4 of the Indian

3 Self-Determination and Education Assistance Act (25

4 U.S.C. 450b).

5 ‘‘(2) LOW- OR MODERATE-INCOMEINDIVIDUAL.—

6 The term ‘low- or moderate-income individual’ means

7 an individual with an income (adjusted for family

8 size) of not more than 80 percent of the national me9 dian income.

10 ‘‘(3) MICROCREDIT.—The term ‘microcredit’

11 means a business loan or loan guarantee of not more

12 than $50,000 that is provided to a rural microenter13 prise.

14 ‘‘(4) MICROENTERPRISE DEVELOPMENT ORGANI15 ZATION.—The term ‘microenterprise development or16 ganization’ means an organization that—

17 ‘‘(A) is—

18 ‘‘(i) a nonprofit entity;

19 ‘‘(ii) an Indian tribe, the tribal gov20 ernment of which certifies to the Secretary

21 that no microenterprise development organi22 zation or microenterprise development pro23 gram exists under the jurisdiction of the In24 dian tribe; or
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1 ‘‘(iii) for the purpose of subsection (b),

2 a public institution of higher education;

3 ‘‘(B) provides training and technical assist4 ance to rural microenterprises;

5 ‘‘(C) facilitates access to capital or another

6 service described in subsection (b) for rural

7 microenterprises; and

8 ‘‘(D) has a demonstrated record of deliv9 ering services to economically disadvantaged

10 microenterprises, or an effective plan to develop

11 a program to deliver microenterprise services to

12 rural microenterprises effectively, as determined

13 by the Secretary.

14 ‘‘(5) RURAL CAPACITY BUILDING SERVICE.—The

15 term ‘rural capacity building service’ means a service

16 provided to an organization that—

17 ‘‘(A) is, or is in the process of becoming, a

18 microenterprise development organization; and

19 ‘‘(B) serves rural areas for the purpose of

20 enhancing the ability of the organization to pro21 vide training, technical assistance, and other

22 services relating to rural development.

23 ‘‘(6) RURAL MICROENTERPRISE.—

24 ‘‘(A) IN GENERAL.—The term ‘rural micro25 enterprise’ means an individual described in
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1 subparagraph (B) who is unable to obtain suffi2 cient training, technical assistance, or micro3 credit other than under this section, as deter4 mined by the Secretary.

5 ‘‘(B) DESCRIPTION.—An individual de6 scribed in this subparagraph is—

7 ‘‘(i) a self-employed individual located

8 in a rural area; or

9 ‘‘(ii) an owner and operator, or pro10 spective owner and operator, of a business

11 entity located in a rural area with not more

12 than 10 full-time-equivalent employees.

13 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

14 the Secretary of Agriculture, acting through the Rural

15 Business-Cooperative Service.

16 ‘‘(b) RURAL MICROENTERPRISE PROGRAM.—

17 ‘‘(1) ESTABLISHMENT.—The Secretary shall es18 tablish a rural microenterprise program.

19 ‘‘(2) PURPOSE.—The purpose of the rural micro20 enterprise program shall be to provide low- or mod21 erate-income individuals with—

22 ‘‘(A) the skills necessary to establish new

23 rural microenterprises; and
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1 ‘‘(B) continuing technical and financial as2 sistance as individuals and business starting or

3 operating rural microenterprises.

4 ‘‘(3) GRANTS.—

5 ‘‘(A) IN GENERAL.—The Secretary may

6 make a grant under the rural microenterprise

7 program to microenterprise development

8 organizations—

9 ‘‘(i) to provide training, operational

10 support, business planning assistance, mar11 ket development assistance, and other re12 lated services to rural microenterprises,

13 with an emphasis on rural microenterprises

14 that—

15 ‘‘(I) are composed of low- or mod16 erate-income individuals; or

17 ‘‘(II) are in areas that have lost

18 population;

19 ‘‘(ii) to assist in researching and devel20 oping the best practices in delivering train21 ing, technical assistance, and microcredit to

22 rural microenterprises; and

23 ‘‘(iii) to carry out such other projects

24 and activities as the Secretary determines
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1 to be consistent with the purposes of this

2 section.

3 ‘‘(B) DIVERSITY.—In making grants under

4 this paragraph, the Secretary shall ensure, to the

5 maximum extent practicable, that grant recipi6 ents include microenterprise development

7 organizations—

8 ‘‘(i) of varying sizes; and

9 ‘‘(ii) that serve racially- and eth10 nically-diverse populations.

11 ‘‘(C) COST SHARING.—

12 ‘‘(i) FEDERAL SHARE.—The Federal

13 share of the cost of a project carried out

14 using funds from a grant made under this

15 paragraph shall be 75 percent.

16 ‘‘(ii) FORM OF NON-FEDERAL

17 SHARE.—The non-Federal share of the cost

18 of a project described in clause (i) may be

19 provided—

20 ‘‘(I) in cash (including through

21 fees, grants (including community de22 velopment block grants), and gifts); or

23 ‘‘(II) as in-kind contributions.

24 ‘‘(4) RURAL MICROLOAN PROGRAM.—
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1 ‘‘(A) ESTABLISHMENT.—In carrying out

2 the rural microenterprise program, the Secretary

3 may carry out a rural microloan program.

4 ‘‘(B) PURPOSE.—The purpose of the rural

5 microloan program shall be to provide technical

6 and financial assistance to rural microenter7 prises that—

8 ‘‘(i) are composed of low- or moderate9 income individuals; or

10 ‘‘(ii) are in areas that have lost popu11 lation.

12 ‘‘(C) AUTHORITY OF SECRETARY.—In car13 rying out the rural microloan program, the Sec14 retary may—

15 ‘‘(i) make direct loans to microenter16 prise development organizations for the pur17 pose of making fixed interest rate

18 microloans to startup, newly established,

19 and growing rural microenterprises; and

20 ‘‘(ii) in conjunction with those loans,

21 provide technical assistance grants in ac22 cordance with subparagraph (E) to those

23 microenterprise development organizations.

24 ‘‘(D) LOAN DURATION; INTEREST RATES;

25 CONDITIONS.—
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1 ‘‘(i) LOAN DURATION.—A direct loan

2 made by the Secretary under this para3 graph shall be for a term not to exceed 20

4 years.

5 ‘‘(ii) APPLICABLE INTEREST RATE.—A

6 direct loan made by the Secretary under

7 this paragraph shall bear an annual inter8 est rate of 1 percent.

9 ‘‘(iii) LOAN LOSS RESERVE FUND.—

10 The Secretary shall require each microenter11 prise development organization that receives

12 a direct loan under this paragraph to—

13 ‘‘(I) establish a loan loss reserve

14 fund; and

15 ‘‘(II) maintain the reserve fund in

16 an amount equal to at least 5 percent

17 of the outstanding balance of such

18 loans owed by the microenterprise de19 velopment organization, until all obli20 gations owed to the Secretary under

21 this paragraph are repaid.

22 ‘‘(iv) DEFERRAL OF INTEREST AND

23 PRINCIPAL.—The Secretary shall permit the

24 deferral of payments on principal and in25 terest due on a loan made under this para-
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1 graph during the 2-year period beginning

2 on the date on which the loan is made.

3 ‘‘(E) TECHNICAL ASSISTANCE GRANT

4 AMOUNTS.—

5 ‘‘(i) IN GENERAL.—Except as otherwise

6 provided in this section, each microenter7 prise development organization that receives

8 a direct loan under this paragraph shall be

9 eligible to receive a technical assistance

10 grant to provide marketing, management,

11 and technical assistance to rural micro12 enterprises that are borrowers or potential

13 borrowers under this subsection.

14 ‘‘(ii) MAXIMUM AMOUNT OF TECHNICAL

15 ASSISTANCE GRANT FOR MICROENTERPRISE

16 DEVELOPMENT ORGANIZATIONS.—Each

17 microenterprise development organization

18 that receives a direct loan under this para19 graph shall receive an annual technical as20 sistance grant in an amount equal to not

21 more than 25 percent of the total out22 standing balance of microloans made by the

23 microenterprise development organization

24 under this paragraph, as of the date of pro25 vision of the technical assistance grant.
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1 ‘‘(iii) MATCHING REQUIREMENT.—

2 ‘‘(I) IN GENERAL.—As a condi3 tion of any grant made to a micro4 enterprise development organization

5 under this subparagraph, the Secretary

6 shall require the microenterprise devel7 opment organization to match not less

8 than 15 percent of the total amount of

9 the grant.

10 ‘‘(II) FORM OF NON-FEDERAL

11 SHARE.—The non-Federal share of the

12 cost of a project described in subclause

13 (I) may be provided—

14 ‘‘(aa) in cash; or

15 ‘‘(bb) as indirect costs or in16 kind contributions.

17 ‘‘(c) ADMINISTRATIVE EXPENSES.—Not more than 10

18 percent of a grant received by a microenterprise develop19 ment organization for a fiscal year under this section may

20 be used to pay administrative expenses.

21 ‘‘(d) FUNDING.—

22 ‘‘(1) MANDATORY FUNDING.—

23 ‘‘(A) IN GENERAL.—Of the funds of the

24 Commodity Credit Corporation, the Secretary

25 shall use to carry out this section $40,000,000
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1 for fiscal year 2008, to remain available until

2 expended.

3 ‘‘(B) ALLOCATION OF FUNDS.—Of the

4 amount made available by subparagraph (A) for

5 fiscal year 2008—

6 ‘‘(i) not less than $25,000,000 shall be

7 available for use in carrying out subsection

8 (b)(3); and

9 ‘‘(ii) not less than $15,000,000 shall be

10 available for use in carrying out subsection

11 (b)(4), of which not more than $7,000,000

12 shall be used for the cost of direct loans.

13 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In

14 addition to amounts made available under paragraph

15 (1), there are authorized to be appropriated such

16 sums as are necessary to carry out this section for

17 each of fiscal years 2009 through 2012.’’.

18 SEC. 6023. ARTISANAL CHEESE CENTERS.

19 Subtitle D of the Consolidated Farm and Rural Devel20 opment Act is amended by inserting after section 366 (as

21 added by section 6022) the following:

22 ‘‘SEC. 367. ARTISANAL CHEESE CENTERS.

23 ‘‘(a) IN GENERAL.—The Secretary shall establish

24 artisanal cheese centers to provide educational and tech25 nical assistance relating to the manufacture and marketing
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1 of artisanal cheese by small- and medium-sized producers

2 and businesses.

3 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is

4 authorized to be appropriated such sums as are necessary

5 to carry out this section for each of fiscal years 2008

6 through 2012.’’.

7 SEC. 6024. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

8 Section 378 of the Consolidated Farm and Rural De9 velopment Act (7 U.S.C. 2008m) is amended—

10 (1) in subsection (g)(1), by striking ‘‘2007’’ and

11 inserting ‘‘2012’’; and

12 (2) in subsection (h), by striking ‘‘the date that

13 is 5 years after the date of enactment of this section’’

14 and inserting ‘‘September 30, 2012’’.

15 SEC. 6025. HISTORIC BARN PRESERVATION.

16 Section 379A(c) of the Consolidated Farm and Rural

17 Development Act (7 U.S.C. 2008o(c)) is amended—

18 (1) by striking paragraph (2) and inserting the

19 following:

20 ‘‘(2) ELIGIBLEPROJECTS.—

21 ‘‘(A) IN GENERAL.—A grant under this sub22 section may be made to an eligible applicant for

23 a project—

24 ‘‘(i) to rehabilitate or repair a historic

25 barn;
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1 ‘‘(ii) to preserve a historic barn; and

2 ‘‘(iii) to identify, document, survey,

3 and conduct research on a historic barn or

4 historic farm structure to develop and

5 evaluate appropriate techniques or best

6 practices for protecting historic barns.

7 ‘‘(B) PRIORITY.—The Secretary shall give

8 the highest funding priority to grants for projects

9 described in subparagraph (A)(iii).’’; and

10 (2) in paragraph (4), by striking ‘‘2007’’ and in11 serting ‘‘2012’’.

12 SEC. 6026. GRANTS FOR NOAA WEATHER RADIO TRANSMIT13 TERS.

14 Section 379B(d) of the Consolidated Farm and Rural

15 Development Act (7 U.S.C. 2008p(d)) is amended by strik16 ing ‘‘2007’’ and inserting ‘‘2012’’.

17 SEC. 6027. GRANTS TO TRAIN FARM WORKERS IN NEW

18 TECHNOLOGIES AND TO TRAIN FARM WORK19 ERS IN SPECIALIZED SKILLS NECESSARY FOR

20 HIGHER VALUE CROPS.

21 Section 379C(c) of the Consolidated Farm and Rural

22 Development Act (7 U.S.C. 2008q(c)) is amended by strik23 ing ‘‘2007’’ and inserting ‘‘2012’’.
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1 SEC. 6028. GRANTS FOR EXPANSION OF EMPLOYMENT OP2 PORTUNITIES FOR INDIVIDUALS WITH DIS3 ABILITIES IN RURAL AREAS.

4 Subtitle D of the Consolidated Farm and Rural Devel5 opment Act (7 U.S.C. 1981 et seq.) is amended by adding

6 at the end the following:

7 ‘‘SEC. 379E. GRANTS FOR EXPANSION OF EMPLOYMENT OP8 PORTUNITIES FOR INDIVIDUALS WITH DIS9 ABILITIES IN RURAL AREAS.

10 ‘‘(a) DEFINITIONS.—In this section:

11 ‘‘(1) INDIVIDUAL WITH A DISABILITY.—The term

12 ‘individual with a disability’ means an individual

13 with a disability (as defined in section 3 of the Amer14 icans with Disabilities Act of 1990 (42 U.S.C.

15 12102)).

16 ‘‘(2) INDIVIDUALS WITH DISABILITIES.—The

17 term ‘individuals with disabilities’ means more than

18 1 individual with a disability.

19 ‘‘(b) GRANTS.—The Secretary shall make grants to

20 nonprofit organizations, or to a consortium of nonprofit or21 ganizations, to expand and enhance employment opportuni22 ties for individuals with disabilities in rural areas.

23 ‘‘(c) ELIGIBILITY.—To be eligible to receive a grant

24 under this section, a nonprofit organization or consortium

25 of nonprofit organizations shall have—
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1 ‘‘(1) a significant focus on serving the needs of

2 individuals with disabilities;

3 ‘‘(2) demonstrated knowledge and expertise in—

4 ‘‘(A) employment of individuals with dis5 abilities; and

6 ‘‘(B) advising private entities on accessi7 bility issues involving individuals with disabil8 ities;

9 ‘‘(3) expertise in removing barriers to employ10 ment for individuals with disabilities, including ac11 cess to transportation, assistive technology, and other

12 accommodations;

13 ‘‘(4) existing relationships with national organi14 zations focused primarily on the needs of rural areas;

15 ‘‘(5) affiliates in a majority of the States; and

16 ‘‘(6) a close working relationship with the De17 partment of Agriculture.

18 ‘‘(d) USES.—A grant received under this section may

19 be used only to expand or enhance—

20 ‘‘(1) employment opportunities for individuals

21 with disabilities in rural areas by developing na22 tional technical assistance and education resources to

23 assist small businesses in a rural area to recruit, hire,

24 accommodate, and employ individuals with disabil25 ities; and
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1 ‘‘(2) self-employment and entrepreneurship op2 portunities for individuals with disabilities in a

3 rural area.

4 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is

5 authorized to be appropriated to carry out this section

6 $2,000,000 for each of fiscal years 2008 through 2012.’’.

7 SEC. 6029. DELTA REGIONAL AUTHORITY.

8 (a) HEALTH CARE SERVICES.—Section 382C of the

9 Consolidated Farm and Rural Development Act (7 U.S.C.

10 2009aa–2) is amended by adding at the end the following:

11 ‘‘(c) HEALTH CARE SERVICES.—

12 ‘‘(1) IN GENERAL.—Subject to the availability of

13 appropriated funds, the Secretary may award a grant

14 to the Delta Health Alliance for the development of

15 health care services, health education programs, and

16 health care job training programs fields, and for the

17 development and expansion of public health-related

18 facilities, in the Mississippi Delta region to address

19 longstanding and unmet health needs in the Mis20 sissippi Delta region.

21 ‘‘(2) USE.—As a condition of the receipt of the

22 grant, the Delta Health Alliance shall use the grant

23 to fund projects and activities described in paragraph

24 (1), based on input solicited from local governments,
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1 public health care providers, and other entities in the

2 Mississippi Delta region.

3 ‘‘(3) FEDERAL INTEREST IN PROPERTY.—Not4 withstanding any other provision of law, with respect

5 to the use of grant funds provided under this sub6 section for a project involving the construction or

7 major alteration of property, the Federal interest in

8 the property shall terminate on the earlier of—

9 ‘‘(A) the date that is 1 year after the date

10 of the completion of the project; or

11 ‘‘(B) the date on which the Federal Govern12 ment is compensated for the proportionate inter13 est of the Federal Government in the property, if

14 the use of the property changes or the property

15 is transferred or sold.’’.

16 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

17 382M(a) of the Consolidated Farm and Rural Development

18 Act (7 U.S.C. 2009aa–12(a)) is amended by striking

19 ‘‘2007’’ and inserting ‘‘2012’’.

20 (c) TERMINATION OF AUTHORITY.—Section 382N of

21 the Consolidated Farm and Rural Development Act (7

22 U.S.C. 2009aa–13) is amended by striking ‘‘2007’’ and in23 serting ‘‘2012’’.

24 (d) DELTA REGION AGRICULTURAL ECONOMIC DEVEL25 OPMENT.—Section 379D(b) of the Consolidated Farm and
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1 Rural Development Act (7 U.S.C. 2008r(b)) is amended by

2 striking ‘‘2007’’ and inserting ‘‘2012’’.

3 SEC. 6030. NORTHERN GREAT PLAINS REGIONAL AUTHOR4 ITY.

5 (a) ESTABLISHMENT.—Section 383B of the Consoli6 dated Farm and Rural Development Act (7 U.S.C. 2009bb–

7 1) is amended—

8 (1) in subsection (a), by adding at the end the

9 following:

10 ‘‘(4) FAILURETO CONFIRM.—

11 ‘‘(A) FEDERAL MEMBER.—Notwithstanding

12 any other provision of this section, if a Federal

13 member described in paragraph (2)(A) has not

14 been confirmed by the Senate by not later than

15 180 days after the date of enactment of this

16 paragraph, the Authority may organize and op17 erate without the Federal member.

18 ‘‘(B) INDIAN CHAIRPERSON.—Notwith19 standing any other provision of this section, if a

20 chairperson of an Indian Tribe described in

21 paragraph (2)(C) has not been confirmed by the

22 Senate by not later than 180 days after the date

23 of enactment of this paragraph, the leaders of the

24 Indian tribes in the region may select that mem25 ber.’’;
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1 (2) in subsection (d)—

2 (A) in paragraph (1), by striking ‘‘to estab3 lish priorities and’’ and inserting ‘‘for multistate

4 cooperation to advance the economic and social

5 well-being of the region and to’’

6 (B) in paragraph (3), by striking ‘‘local de7 velopment districts,’’ and inserting ‘‘regional

8 and local development districts or organizations,

9 regional boards established under subtitle I,’’;

10 (C) in paragraph (4), by striking ‘‘coopera11 tion;’’ and inserting ‘‘cooperation for—

12 ‘‘(i) renewable energy development and

13 transmission;

14 ‘‘(ii) transportation planning and eco15 nomic development;

16 ‘‘(iii) information technology;

17 ‘‘(iv) movement of freight and individ18 uals within the region;

19 ‘‘(v) federally-funded research at insti20 tutions of higher education; and

21 ‘‘(vi) conservation land management;’’;

22 (D) by striking paragraph (6) and insert23 ing the following:

24 ‘‘(6) enhance the capacity of, and provide sup25 port for, multistate development and research organi-
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1 zations, local development organizations and districts,

2 and resource conservation districts in the region;’’;

3 and

4 (E) in paragraph (7), by inserting ‘‘renew5 able energy,’’ after ‘‘commercial,’’.

6 (3) in subsection (f)(2), by striking ‘‘the Federal

7 cochairperson’’ and inserting ‘‘a cochairperson’’;

8 (4) in subsection (g)(1), by striking subpara9 graphs (A) through (C) and inserting the following:

10 ‘‘(A) for each of fiscal years 2008 and 2009,

11 100 percent;

12 ‘‘(B) for fiscal year 2010, 75 percent; and

13 ‘‘(C) for fiscal year 2011 and each fiscal

14 year thereafter, 50 percent.’’.

15 (b) INTERSTATE COOPERATION FOR ECONOMIC OP16 PORTUNITY AND EFFICIENCY.—

17 (1) IN GENERAL.—Subtitle G of the Consolidated

18 Farm and Rural Development Act is amended—

19 (A) by redesignating sections 383C through

20 383N (7 U.S.C. 2009bb–2 through 2009bb–13) as

21 sections 383D through 383O, respectively; and

22 (B) by inserting after section 383B (7

23 U.S.C. 2009bb–1) the following:
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1 ‘‘SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OP2 PORTUNITY AND EFFICIENCY.

3 ‘‘(a) IN GENERAL.—The Authority shall provide as4 sistance to States in developing regional plans to address

5 multistate economic issues, including plans—

6 ‘‘(1) to develop a regional transmission system

7 for movement of renewable energy to markets outside

8 the region,

9 ‘‘(2) to assist in the harmonization of transpor10 tation policies and regulations that impact the inter11 state movement of goods and individuals, including

12 the establishment of a Northern Great Plains Re13 gional Transportation Working Group;

14 ‘‘(3) to encourage and support interstate collabo15 ration on federally-funded research that is in the na16 tional interest; and

17 ‘‘(4) to establish a Regional Working Group on

18 Agriculture Development and Transportation.

19 ‘‘(b) ECONOMIC ISSUES.—The multistate economic

20 issues referred to in subsection (a) shall include—

21 ‘‘(1) renewable energy development and trans22 mission;

23 ‘‘(2) transportation planning and economic de24 velopment;

25 ‘‘(3) information technology;
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1 ‘‘(4) movement of freight and individuals within

2 the region;

3 ‘‘(5) federally-funded research at institutions of

4 higher education; and

5 ‘‘(6) conservation land management.’’.

6 (2) CONFORMING AMENDMENTS.—

7 (A) Section 383B(c)(3)(B) of the Consoli8 dated Farm and Rural Development Act (7

9 U.S.C. 2009bb–1(c)(3)(B)) is amended by strik10 ing ‘‘383I’’ and inserting ‘‘383J’’.

11 (B) Section 383D(a) of the Consolidated

12 Farm and Rural Development Act (as redesig13 nated by paragraph (1)(A)) is amended by strik14 ing ‘‘383I’’ and inserting ‘‘383J’’.

15 (C) Section 383E of the Consolidated Farm

16 and Rural Development Act (as so redesignated)

17 is amended—

18 (i) in subsection (b)(1), by striking

19 ‘‘383F(b)’’ and inserting ‘‘383G(b)’’; and

20 (ii) in subsection (c)(2)(A), by striking

21 ‘‘383I’’ and inserting ‘‘383J’’.

22 (D) Section 383G of the Consolidated Farm

23 and Rural Development Act (as so redesignated)

24 is amended—

25 (i) in subsection (b)—
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1 (I) in paragraph (1), by striking

2 ‘‘383M’’ and inserting ‘‘383N’’; and

3 (II) in paragraph (2), by striking

4 ‘‘383D(b)’’ and inserting ‘‘383E(b)’’;

5 (ii) in subsection (c)(2)(A), by striking

6 ‘‘383E(b)’’ and inserting ‘‘383F(b)’’; and

7 (iii) in subsection (d)—

8 (I) by striking ‘‘383M’’ and in9 serting ‘‘383N’’; and

10 (II) by striking ‘‘383C(a)’’ and

11 inserting ‘‘383D(a)’’.

12 (E) Section 383J(c)(2) of the Consolidated

13 Farm and Rural Development Act (as so redesig14 nated) is amended by striking ‘‘383H’’ and in15 serting ‘‘383I’’.

16 (c) ECONOMIC AND COMMUNITY DEVELOPMENT

17 GRANTS.—Section 383D of the Consolidated Farm and

18 Rural Development Act (as redesignated by subsection

19 (b)(1)(A)) is amended—

20 (1) in subsection (a)—

21 (A) in paragraph (1), by striking ‘‘trans22 portation and telecommunication’’ and inserting

23 ‘‘transportation, renewable energy transmission,

24 and telecommunication’’; and
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1 (B) by redesignating paragraphs (1) and

2 (2) as paragraphs (2) and (1), respectively, and

3 moving those paragraphs so as to appear in nu4 merical order; and

5 (2) in subsection (b)(2), by striking ‘‘the activi6 ties in the following order or priority’’ and inserting

7 ‘‘the following activities’’.

8 (d) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—

9 Section 383E(a) of the Consolidated Farm and Rural De10 velopment Act (as redesignated by subsection (b)(1)(A)) is

11 amended by striking ‘‘, including local development dis12 tricts,’’.

13 (e) MULTISTATEAND LOCAL DEVELOPMENT DIS14 TRICTS AND ORGANIZATIONS AND NORTHERN GREAT

15 PLAINS INC.—Section 383F of the Consolidated Farm and

16 Rural Development Act (as redesignated by subsection

17 (b)(1)(A)) is amended—

18 (1) by striking the section heading and inserting

19 ‘‘MULTISTATE AND LOCAL DEVELOPMENT DIS20 TRICTS AND ORGANIZATIONS AND NORTHERN

21 GREAT PLAINS INC.’’;

22 (2) by striking subsections (a) and (b) and in23 serting the following:

24 ‘‘(a) DEFINITION OF MULTISTATEAND LOCAL DEVEL25 OPMENT DISTRICT OR ORGANIZATION.—In this section, the
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1 term ‘multistate and local development district or organiza2 tion’ means an entity—

3 ‘‘(1) that—

4 ‘‘(A) is a planning district in existence on

5 the date of enactment of this subtitle that is rec6 ognized by the Economic Development Adminis7 tration of the Department of Commerce; or

8 ‘‘(B) is—

9 ‘‘(i) organized and operated in a man10 ner that ensures broad-based community

11 participation and an effective opportunity

12 for other nonprofit groups to contribute to

13 the development and implementation of pro14 grams in the region;

15 ‘‘(ii) a nonprofit incorporated body or16 ganized or chartered under the law of the

17 State in which the entity is located;

18 ‘‘(iii) a nonprofit agency or instru19 mentality of a State or local government;

20 ‘‘(iv) a public organization established

21 before the date of enactment of this subtitle

22 under State law for creation of multijuris23 dictional, area-wide planning organiza24 tions;
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1 ‘‘(v) a nonprofit agency or instrumen2 tality of a State that was established for the

3 purpose of assisting with multistate co4 operation; or

5 ‘‘(vi) a nonprofit association or com6 bination of bodies, agencies, and instrumen7 talities described in clauses (ii) through (v);

8 and

9 ‘‘(2) that has not, as certified by the Federal

10 cochairperson—

11 ‘‘(A) inappropriately used Federal grant

12 funds from any Federal source; or

13 ‘‘(B) appointed an officer who, during the

14 period in which another entity inappropriately

15 used Federal grant funds from any Federal

16 source, was an officer of the other entity.

17 ‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL

18 DEVELOPMENT DISTRICTS AND ORGANIZATIONS.—

19 ‘‘(1) IN GENERAL.—The Authority may make

20 grants for administrative expenses under this section

21 to multistate, local, and regional development dis22 tricts and organizations.

23 ‘‘(2) CONDITIONS FOR GRANTS.—

24 ‘‘(A) MAXIMUM AMOUNT.—The amount of

25 any grant awarded under paragraph (1) shall
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1 not exceed 80 percent of the administrative ex2 penses of the regional or local development dis3 trict or organization receiving the grant.

4 ‘‘(B) MAXIMUM PERIOD.—No grant de5 scribed in paragraph (1) shall be awarded for a

6 period greater than 3 years.

7 ‘‘(3) LOCAL SHARE.—The contributions of a re8 gional or local development district or organization

9 for administrative expenses may be in cash or in

10 kind, fairly evaluated, including space, equipment,

11 and services.’’; and

12 (3) in subsection (c)—

13 (A) by striking ‘‘DUTIES’’ and inserting

14 ‘‘AUTHORITIES’’; and

15 (B) in the matter preceding paragraph (1),

16 by striking ‘‘shall’’ and inserting ‘‘may’’.

17 (f) DISTRESSED COUNTIES AND AREAS AND NONDIS18 TRESSED COUNTIES.—Section 383G of the Consolidated

19 Farm and Rural Development Act (as redesignated by sub20 section (b)(1)(A)) is amended—

21 (1) in subsection (b)(1), by striking ‘‘75’’ and in22 serting ‘‘50’’;

23 (2) by striking subsection (c);

24 (3) by redesignating subsection (d) as subsection

25 (c); and
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1 (4) in subsection (c) (as so redesignated)—

2 (A) in the subsection heading, by inserting

3 ‘‘, RENEWABLE ENERGY,’’ after ‘‘TELECOMMUNI4 CATION,’’; and

5 (B) by inserting ‘‘, renewable energy,’’ after

6 ‘‘telecommunication,’’.

7 (g) DEVELOPMENT PLANNING PROCESS.—Section

8 383H of the Consolidated Farm and Rural Development

9 Act (as redesignated by subsection (b)(1)(A)) is amended—

10 (1) in subsection (c)(1), by striking subpara11 graph (A) and inserting the following:

12 ‘‘(A) multistate, regional, and local develop13 ment districts and organizations; and’’; and

14 (2) in subsection (d)(1), by striking ‘‘State and

15 local development districts’’ and inserting

16 ‘‘multistate, regional, and local development districts

17 and organizations’’.

18 (h) PROGRAM DEVELOPMENT CRITERIA.—Section

19 383I(a)(1) of the Consolidated Farm and Rural Develop20 ment Act (as redesignated by subsection (b)(1)(A)) is

21 amended by inserting ‘‘multistate or’’ before ‘‘regional’’.

22 (i) AUTHORIZATION OF APPROPRIATIONS.—Section

23 383N(a) of the Consolidated Farm and Rural Development

24 Act (as redesignated by subsection (b)(1)(A)) is amended
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1 by striking ‘‘2002 through 2007’’ and inserting ‘‘2008

2 through 2012’’.

3 (j) TERMINATION OF AUTHORITY.—Section 383O of

4 the Consolidated Farm and Rural Development Act (as re5 designated by subsection (b)(1)(A)) is amended by striking

6 ‘‘2007’’ and inserting ‘‘2012’’.

7 SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.

8 (a) ISSUANCEAND GUARANTEE OF TRUST CERTIFI9 CATES.—Section 384F of the Consolidated Farm and Rural

10 Development Act (7 U.S.C. 2009cc–5) is amended—

11 (1) in subsection (a)(1), by inserting ‘‘, includ12 ing an investment pool created entirely by such bank

13 or savings association’’ before the period at the end;

14 (2) in subsection (b)(3)(A), by striking ‘‘In the

15 event’’ and inserting the following:

16 ‘‘(i) AUTHORITY TO PREPAY.—A deben17 ture may be prepaid at any time without

18 penalty.

19 ‘‘(ii) REDUCTION OF GUARANTEE.—

20 Subject to clause (i), if’’; and

21 (3) in subsection (e), by adding at the end the

22 following:

23 ‘‘(6) DISTRIBUTIONS.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall au2 thorize distributions to investors for unrealized

3 income from a debenture.

4 ‘‘(B) TREATMENT.—Distributions made by

5 a rural business investment company to an in6 vestor of private capital in the rural business in7 vestment company for the purpose of covering the

8 tax liability of the investor resulting from unre9 alized income of the rural business investment

10 company shall not require the repayment of a

11 debenture.’’.

12 (b) FEES.—Section 384G of the Consolidated Farm

13 and Rural Development Act (7 U.S.C. 2009cc–6) is

14 amended—

15 (1) in subsection (a), by striking ‘‘such fees as

16 the Secretary considers appropriate’’ and inserting ‘‘a

17 fee that does not exceed $500’’;

18 (2) in subsection (b), by striking ‘‘approved by

19 the Secretary’’ and inserting ‘‘that does not exceed

20 $500’’; and

21 (3) in subsection (c)—

22 (A) in paragraph (1), by striking ‘‘The’’

23 and inserting ‘‘Except as provided in paragraph

24 (3), the’’;

25 (B) in paragraph (2)—
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1 (i) in subparagraph (A), by striking

2 ‘‘and’’ at the end;

3 (ii) in subparagraph (B), by striking

4 the period at the end and inserting ‘‘; and’’;

5 and

6 (iii) by adding at the end the fol7 lowing:

8 ‘‘(C) shall not exceed $500 for any fee col9 lected under this subsection.’’; and

10 (C) by adding at the end the following:

11 ‘‘(3) PROHIBITION ON COLLECTION OF CERTAIN

12 FEES.—In the case of a license described in para13 graph (1) that was approved before July 1, 2007, the

14 Secretary shall not collect any fees due on or after the

15 date of enactment of this paragraph.’’.

16 (c) RURAL BUSINESS INVESTMENT COMPANIES.—Sec17 tion 384I(c) of the Consolidated Farm and Rural Develop18 ment Act (7 U.S.C. 2009cc–8(c)) is amended—

19 (1) by redesignating paragraph (3) as para20 graph (4); and

21 (2) by inserting after paragraph (2) the fol22 lowing:

23 ‘‘(3) TIMEFRAME.—Each rural business invest24 ment company shall have a period of 2 years to meet

25 the capital requirements of this subsection.’’.
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1 (d) FINANCIAL INSTITUTION INVESTMENTS.—Section

2 384J of the Consolidated Farm and Rural Development Act

3 (7 U.S.C. 2009cc–9) is amended by striking subsection (c).

4 (e) CONTRACTING OF FUNCTIONS.—Section 384Q of

5 the Consolidated Farm and Rural Development Act (7

6 U.S.C. 2009cc–16) is repealed.

7 (f) FUNDING.—The Consolidated Farm and Rural De8 velopment Act is amended by striking section 384S (7

9 U.S.C. 2009cc–18) and inserting the following:

10 ‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

11 ‘‘There are authorized to be appropriated such sums

12 as are necessary to carry out this subtitle.’’.

13 SEC. 6032. RURAL COLLABORATIVE INVESTMENT PROGRAM.

14 Subtitle I of the Consolidated Farm and Rural Devel15 opment Act (7 U.S.C. 2009dd et seq.) is amended to read

16 as follows:

17 ‘‘Subtitle I—Rural Collaborative

18 Investment Program

19 ‘‘SEC. 385A. PURPOSE.

20 ‘‘The purpose of this subtitle is to establish a regional

21 rural collaborative investment program—

22 ‘‘(1) to provide rural regions with a flexible in23 vestment vehicle, allowing for local control with Fed24 eral oversight, assistance, and accountability;
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1 ‘‘(2) to provide rural regions with incentives and

2 resources to develop and implement comprehensive

3 strategies for achieving regional competitiveness, in4 novation, and prosperity;

5 ‘‘(3) to foster multisector community and eco6 nomic development collaborations that will optimize

7 the asset-based competitive advantages of rural re8 gions with particular emphasis on innovation, entre9 preneurship, and the creation of quality jobs;

10 ‘‘(4) to foster collaborations necessary to provide

11 the professional technical expertise, institutional ca12 pacity, and economies of scale that are essential for

13 the long-term competitiveness of rural regions; and

14 ‘‘(5) to better use Department of Agriculture and

15 other Federal, State, and local governmental re16 sources, and to leverage those resources with private,

17 nonprofit, and philanthropic investments, to achieve

18 measurable community and economic prosperity,

19 growth, and sustainability.

20 ‘‘SEC. 385B. DEFINITIONS.

21 ‘‘In this subtitle:

22 ‘‘(1) BENCHMARK.—The term ‘benchmark’ means

23 an annual set of goals and performance measures es24 tablished for the purpose of assessing performance in
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1 meeting a regional investment strategy of a Regional

2 Board.

3 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has

4 the meaning given the term in section 4 of the Indian

5 Self-Determination and Education Assistance Act (25

6 U.S.C. 450b).

7 ‘‘(3) NATIONAL BOARD.—The term ‘National

8 Board’ means the National Rural Investment Board

9 established under section 385C(c).

10 ‘‘(4) NATIONAL INSTITUTE.—The term ‘National

11 Institute’ means the National Institute on Regional

12 Rural Competitiveness and Entrepreneurship estab13 lished under section 385C(b)(2).

14 ‘‘(5) REGIONAL BOARD.—The term ‘Regional

15 Board’ means a Regional Rural Investment Board

16 described in section 385D(a).

17 ‘‘(6) REGIONAL INNOVATION GRANT.—The term

18 ‘regional innovation grant’ means a grant made by

19 the Secretary to a certified Regional Board under sec20 tion 385F.

21 ‘‘(7) REGIONAL INVESTMENT STRATEGY

22 GRANT.—The term ‘regional investment strategy

23 grant’ means a grant made by the Secretary to a cer24 tified Regional Board under section 385E.
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1 ‘‘SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF

2 RURAL COLLABORATIVE INVESTMENT PRO3 GRAM.

4 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

5 a Rural Collaborative Investment Program to support com6 prehensive regional investment strategies for achieving

7 rural competitiveness.

8 ‘‘(b) DUTIES OF SECRETARY.—In carrying out this

9 subtitle, the Secretary shall—

10 ‘‘(1) appoint and provide administrative and

11 program support to the National Board;

12 ‘‘(2) establish a national institute, to be known

13 as the ‘National Institute on Regional Rural Com14 petitiveness and Entrepreneurship’, to provide tech15 nical assistance to the Secretary and the National

16 Board regarding regional competitiveness and rural

17 entrepreneurship, including technical assistance for—

18 ‘‘(A) the development of rigorous analytic

19 programs to assist Regional Boards in deter20 mining the challenges and opportunities that

21 need to be addressed to receive the greatest re22 gional competitive advantage;

23 ‘‘(B) the provision of support for best prac24 tices developed by the Regional Boards;

25 ‘‘(C) the establishment of programs to sup26 port the development of appropriate governance
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1 and leadership skills in the applicable regions;

2 and

3 ‘‘(D) the evaluation of the progress and per4 formance of the Regional Boards in achieving

5 benchmarks established in a regional investment

6 strategy;

7 ‘‘(3) work with the National Board to develop a

8 national rural investment plan, which shall—

9 ‘‘(A) create a framework to encourage and

10 support a more collaborative and targeted rural

11 investment portfolio in the United States;

12 ‘‘(B) establish the Rural Philanthropic Ini13 tiative, to work with rural communities to create

14 and enhance the pool of permanent philanthropic

15 resources committed to rural community and

16 economic development;

17 ‘‘(C) cooperate with the Regional Boards

18 and State and local governments, organizations,

19 and entities to ensure investment strategies are

20 developed that take into consideration existing

21 rural assets; and

22 ‘‘(D) encourage the organization of Regional

23 Boards;
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1 ‘‘(4) certify the eligibility of Regional Boards to

2 receive regional investment strategy grants and re3 gional innovation grants;

4 ‘‘(5) provide grants for Regional Boards to de5 velop and implement regional investment strategies;

6 ‘‘(6) provide technical assistance to Regional

7 Boards on issues, best practices, and emerging trends

8 relating to rural development, in cooperation with the

9 National Rural Investment Board; and

10 ‘‘(7) provide analytic and programmatic support

11 for regional rural competitiveness through the Na12 tional Institute, including—

13 ‘‘(A) programs to assist Regional Boards in

14 determining the challenges and opportunities

15 that must be addressed to receive the greatest re16 gional competitive advantage;

17 ‘‘(B) support for best practices development

18 by the regional investment boards;

19 ‘‘(C) programs to support the development

20 of appropriate governance and leadership skills

21 in the region; and

22 ‘‘(D) a review and annual evaluation of the

23 performance of the Regional Boards (including

24 progress in achieving benchmarks established in
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1 a regional investment strategy) in an annual re2 port submitted to—

3 ‘‘(i) the Committee on Agriculture of

4 the House of Representatives; and

5 ‘‘(ii) the Committee on Agriculture,

6 Nutrition, and Forestry of the Senate.

7 ‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The

8 Secretary shall establish within the Department of Agri9 culture a board to be known as the ‘National Rural Invest10 ment Board’.

11 ‘‘(d) DUTIES OF NATIONAL BOARD.—The National

12 Board shall—

13 ‘‘(1) not later than 180 days after the date of es14 tablishment of the National Board, develop rules re15 lating to the operation of the National Board;

16 ‘‘(2) provide advice to the Secretary and subse17 quently review the design, development, and execution

18 of the National Rural Investment Plan;

19 ‘‘(3) provide advice to Regional Boards on

20 issues, best practices, and emerging trends relating to

21 rural development; and

22 ‘‘(4) provide advice to the Secretary and the Na23 tional Institute on the development and execution of

24 the program under this subtitle.

25 ‘‘(e) MEMBERSHIP.—
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1 ‘‘(1) IN GENERAL.—The National Board shall

2 consist of 14 members appointed by the Secretary not

3 later than 180 days after the date of enactment of the

4 Food and Energy Security Act of 2007.

5 ‘‘(2) SUPERVISION.—The National Board shall

6 be subject to the general supervision and direction of

7 the Secretary.

8 ‘‘(3) SECTORS REPRESENTED.—The National

9 Board shall consist of representatives from each of—

10 ‘‘(A) nationally recognized entrepreneurship

11 organizations;

12 ‘‘(B) regional strategy and development or13 ganizations;

14 ‘‘(C) community-based organizations;

15 ‘‘(D) elected members of county and munic16 ipal governments;

17 ‘‘(E) elected members of State legislatures;

18 ‘‘(F) primary, secondary, and higher edu19 cation, job skills training, and workforce develop20 ment institutions;

21 ‘‘(G) the rural philanthropic community;

22 ‘‘(H) financial, lending, venture capital, en23 trepreneurship, and other related institutions;
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1 ‘‘(I) private sector business organizations,

2 including chambers of commerce and other for3 profit business interests;

4 ‘‘(J) Indian tribes; and

5 ‘‘(K) cooperative organizations.

6 ‘‘(4) SELECTION OF MEMBERS.—

7 ‘‘(A) IN GENERAL.—In selecting members of

8 the National Board, the Secretary shall consider

9 recommendations made by—

10 ‘‘(i) the chairman and ranking mem11 ber of each of the Committee on Agriculture

12 of the House of Representatives and the

13 Committee on Agriculture, Nutrition, and

14 Forestry of the Senate;

15 ‘‘(ii) the Majority Leader and Minor16 ity Leader of the Senate; and

17 ‘‘(iii) the Speaker and Minority Lead18 er of the House of Representatives.

19 ‘‘(B) EX-OFFICIO MEMBERS.—In consulta20 tion with the chairman and ranking member of

21 each of the Committee on Agriculture of the

22 House of Representatives and the Committee on

23 Agriculture, Nutrition, and Forestry of the Sen24 ate, the Secretary may appoint not more than 3

25 other officers or employees of the Executive
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1 Branch to serve as ex-officio, non-voting mem2 bers of the National Board.

3 ‘‘(5) TERM OF OFFICE.—

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graph (B), the term of office of a member of the

6 National Board appointed under paragraph

7 (1)(A) shall be for a period of not more than 4

8 years.

9 ‘‘(B) STAGGERED TERMS.—The members of

10 the National Board shall be appointed to serve

11 staggered terms.

12 ‘‘(6) INITIAL APPOINTMENTS.—Not later than

13 120 days after the date of enactment of the Food and

14 Energy Security Act of 2007, the Secretary shall ap15 point the initial members of the National Board.

16 ‘‘(7) VACANCIES.—A vacancy on the National

17 Board shall be filled in the same manner as the origi18 nal appointment.

19 ‘‘(8) COMPENSATION.—A member of the National

20 Board shall receive no compensation for service on the

21 National Board, but shall be reimbursed for related

22 travel and other expenses incurred in carrying out the

23 duties of the member of the National Board in accord24 ance with section 5702 and 5703 of title 5, United

25 States Code.
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1 ‘‘(9) CHAIRPERSON.—The National Board shall

2 select a chairperson from among the members of the

3 National Board.

4 ‘‘(10) FEDERAL STATUS.—For purposes of Fed5 eral law, a member of the National Board shall be

6 considered a special Government employee (as defined

7 in section 202(a) of title 18, United States Code).

8 ‘‘(f) ADMINISTRATIVE SUPPORT.—The Secretary, on a

9 reimbursable basis from funds made available under section

10 385H(b)(3), may provide such administrative support to

11 the National Board as the Secretary determines is necessary

12 to carry out the duties of the National Board.

13 ‘‘SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.

14 ‘‘(a) IN GENERAL.—A Regional Rural Investment

15 Board shall be a multijurisdictional and multisectoral

16 group that—

17 ‘‘(1) represents the long-term economic, commu18 nity, and cultural interests of a region;

19 ‘‘(2) is certified by the Secretary to establish a

20 rural investment strategy and compete for regional

21 innovation grants;

22 ‘‘(3) is composed of residents of a region that are

23 broadly representative of diverse public, nonprofit,

24 and private sector interests in investment in the re-
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1 gion, including (to the maximum extent practicable)

2 representatives of—

3 ‘‘(A) units of local government (including

4 multijurisdictional units of local government);

5 ‘‘(B) nonprofit community-based develop6 ment organizations, including community devel7 opment financial institutions and community

8 development corporations;

9 ‘‘(C) agricultural, natural resource, and

10 other asset-based related industries;

11 ‘‘(D) in the case of regions with federally

12 recognized Indian tribes, Indian tribes;

13 ‘‘(E) regional development organizations;

14 ‘‘(F) private business organizations, includ15 ing chambers of commerce;

16 ‘‘(G)(i) institutions of higher education (as

17 defined in section 101(a) of the Higher Edu18 cation Act of 1965 (20 U.S.C. 1001(a)));

19 ‘‘(ii) tribally controlled colleges or univer20 sities (as defined in section 2(a) of Tribally Con21 trolled College or University Assistance Act of

22 1978 (25 U.S.C. 1801(a))); and

23 ‘‘(iii) tribal technical institutions;

24 ‘‘(H) workforce and job training organiza25 tions;
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1 ‘‘(I) other entities and organizations, as de2 termined by the Regional Board;

3 ‘‘(J) cooperatives; and

4 ‘‘(K) consortia of entities and organizations

5 described in subparagraphs (A) through (J);

6 ‘‘(4) represents a region inhabited by—

7 ‘‘(A) more than 25,000 individuals, as de8 termined in the latest available decennial census

9 conducted under section 141(a) of title 13,

10 United States Code; or

11 ‘‘(B) in the case of a region with a popu12 lation density of less than 2 individuals per

13 square mile, at least 10,000 individuals, as de14 termined in that latest available decennial cen15 sus;

16 ‘‘(5) has a membership of which not less than 25

17 percent, nor more than 40 percent, represents—

18 ‘‘(A) units of local government and Indian

19 tribes described in subparagraphs (A) and (D) of

20 paragraph (3);

21 ‘‘(B) nonprofit community and economic

22 development organizations and institutions of

23 higher education described in subparagraphs (B)

24 and (G) of paragraph (3); or
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1 ‘‘(C) private business (including chambers

2 of commerce and cooperatives) and agricultural,

3 natural resource, and other asset-based related

4 industries described in subparagraphs (C) and

5 (F) of paragraph (3);

6 ‘‘(6) has a membership that may include an offi7 cer or employee of a Federal or State agency, serving

8 as an ex-officio, nonvoting member of the Regional

9 Board to represent the agency; and

10 ‘‘(7) has organizational documents that dem11 onstrate that the Regional Board shall—

12 ‘‘(A) create a collaborative, inclusive public13 private strategy process;

14 ‘‘(B) develop, and submit to the Secretary

15 for approval, a regional investment strategy that

16 meets the requirements of section 385E, with

17 benchmarks—

18 ‘‘(i) to promote investment in rural

19 areas through the use of grants made avail20 able under this subtitle; and

21 ‘‘(ii) to provide financial and technical

22 assistance to promote a broad-based re23 gional development program aimed at in24 creasing and diversifying economic growth,
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1 improved community facilities, and im2 proved quality of life;

3 ‘‘(C) implement the approved regional in4 vestment strategy;

5 ‘‘(D) provide annual reports to the Sec6 retary and the National Board on progress made

7 in achieving the benchmarks of the regional in8 vestment strategy, including an annual financial

9 statement; and

10 ‘‘(E) select a non-Federal organization

11 (such as a regional development organization) in

12 the local area served by the Regional Board that

13 has previous experience in the management of

14 Federal funds to serve as fiscal manager of any

15 funds of the Regional Board.

16 ‘‘(b) URBAN AREAS.—A resident of an urban area

17 may serve as an ex-officio member of a Regional Board.

18 ‘‘(c) DUTIES.—A Regional Board shall—

19 ‘‘(1) create a collaborative and inclusive plan20 ning process for public-private investment within a

21 region;

22 ‘‘(2) develop, and submit to the Secretary for ap23 proval, a regional investment strategy;
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1 ‘‘(3) develop approaches that will create perma2 nent resources for philanthropic giving in the region,

3 to the maximum extent practicable;

4 ‘‘(4) implement an approved strategy; and

5 ‘‘(5) provide annual reports to the Secretary and

6 the National Board on progress made in achieving the

7 strategy, including an annual financial statement.

8 ‘‘SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.

9 ‘‘(a) IN GENERAL.—The Secretary shall make regional

10 investment strategy grants available to Regional Boards for

11 use in developing, implementing, and maintaining regional

12 investment strategies.

13 ‘‘(b) REGIONAL INVESTMENT STRATEGY.—A regional

14 investment strategy shall provide—

15 ‘‘(1) an assessment of the competitive advantage

16 of a region, including—

17 ‘‘(A) an analysis of the economic conditions

18 of the region;

19 ‘‘(B) an assessment of the current economic

20 performance of the region;

21 ‘‘(C) a background overview of the popu22 lation, geography, workforce, transportation sys23 tem, resources, environment, and infrastructure

24 needs of the region; and
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1 ‘‘(D) such other pertinent information as

2 the Secretary may request;

3 ‘‘(2) an analysis of regional economic and com4 munity development challenges and opportunities,

5 including—

6 ‘‘(A) incorporation of relevant material

7 from other government-sponsored or supported

8 plans and consistency with applicable State, re9 gional, and local workforce investment strategies

10 or comprehensive economic development plans;

11 and

12 ‘‘(B) an identification of past, present, and

13 projected Federal and State economic and com14 munity development investments in the region;

15 ‘‘(3) a section describing goals and objectives

16 necessary to solve regional competitiveness challenges

17 and meet the potential of the region;

18 ‘‘(4) an overview of resources available in the re19 gion for use in—

20 ‘‘(A) establishing regional goals and objec21 tives;

22 ‘‘(B) developing and implementing a re23 gional action strategy;

24 ‘‘(C) identifying investment priorities and

25 funding sources; and
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1 ‘‘(D) identifying lead organizations to exe2 cute portions of the strategy;

3 ‘‘(5) an analysis of the current state of collabo4 rative public, private, and nonprofit participation

5 and investment, and of the strategic roles of public,

6 private, and nonprofit entities in the development

7 and implementation of the regional investment strat8 egy;

9 ‘‘(6) a section identifying and prioritizing vital

10 projects, programs, and activities for consideration by

11 the Secretary, including—

12 ‘‘(A) other potential funding sources; and

13 ‘‘(B) recommendations for leveraging past

14 and potential investments;

15 ‘‘(7) a plan of action to implement the goals and

16 objectives of the regional investment strategy;

17 ‘‘(8) a list of performance measures to be used to

18 evaluate the implementation of the regional invest19 ment strategy, including—

20 ‘‘(A) the number and quality of jobs, includ21 ing self-employment, created during implementa22 tion of the regional rural investment strategy;

23 ‘‘(B) the number and types of investments

24 made in the region;
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1 ‘‘(C) the growth in public, private, and

2 nonprofit investment in the human, community,

3 and economic assets of the region;

4 ‘‘(D) changes in per capita income and the

5 rate of unemployment; and

6 ‘‘(E) other changes in the economic environ7 ment of the region;

8 ‘‘(9) a section outlining the methodology for use

9 in integrating the regional investment strategy with

10 the economic priorities of the State; and

11 ‘‘(10) such other information as the Secretary de12 termines to be appropriate.

13 ‘‘(c) MAXIMUM AMOUNT OF GRANT.—A regional in14 vestment strategy grant shall not exceed $150,000.

15 ‘‘(d) COST SHARING.—

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), of

17 the share of the costs of developing, maintaining, eval18 uating, implementing, and reporting with respect to

19 a regional investment strategy funded by a grant

20 under this section—

21 ‘‘(A) not more than 40 percent may be paid

22 using funds from the grant; and

23 ‘‘(B) the remaining share shall be provided

24 by the applicable Regional Board or other eligi25 ble grantee.
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1 ‘‘(2) FORM.—A Regional Board or other eligible

2 grantee shall pay the share described in paragraph

3 (1)(B) in the form of cash, services, materials, or

4 other in-kind contributions, on the condition that not

5 more than 50 percent of that share is provided in the

6 form of services, materials, and other in-kind con7 tributions.

8 ‘‘SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.

9 ‘‘(a) GRANTS.—

10 ‘‘(1) IN GENERAL.—The Secretary shall provide,

11 on a competitive basis, regional innovation grants to

12 Regional Boards for use in implementing projects and

13 initiatives that are identified in a regional rural in14 vestment strategy approved under section 385E.

15 ‘‘(2) TIMING.—After October 1, 2008, the Sec16 retary shall provide awards under this section on a

17 quarterly funding cycle.

18 ‘‘(b) ELIGIBILITY.—For a Regional Board to receive

19 a regional innovation grant, the Secretary shall determine

20 that—

21 ‘‘(1) the regional rural investment strategy of a

22 Regional Board has been reviewed by the National

23 Board prior to approval by the Secretary;

24 ‘‘(2) the management and organizational struc25 ture of the Regional Board is sufficient to oversee
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1 grant projects, including management of Federal

2 funds; and

3 ‘‘(3) the Regional Board has a plan to achieve,

4 to the maximum extent practicable, the performance5 based benchmarks of the project in the regional rural

6 investment strategy of the Regional Board.

7 ‘‘(c) LIMITATIONS.—

8 ‘‘(1) AMOUNT RECEIVED.—A Regional Board

9 may not receive more than $6,000,000 in regional in10 novation grants under this section during any 5-year

11 period.

12 ‘‘(2) DETERMINATION OF AMOUNT.—The Sec13 retary shall determine the amount of a regional inno14 vation grant based on—

15 ‘‘(A) the needs of the region being addressed

16 by the applicable regional rural investment

17 strategy consistent with the purposes described in

18 subsection (f)(2); and

19 ‘‘(B) the size of the geographical area of the

20 region.

21 ‘‘(3) GEOGRAPHIC DIVERSITY.—The Secretary

22 shall ensure that not more than 10 percent of funding

23 made available under this section is provided to Re24 gional Boards in any State.

25 ‘‘(d) COST-SHARING.—
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1 ‘‘(1) LIMITATION.—Subject to paragraph (2), the

2 amount of a grant made under this section shall not

3 exceed 50 percent of the cost of the project.

4 ‘‘(2) WAIVER OF GRANTEE SHARE.—The Sec5 retary may waive the limitation in paragraph (1)

6 under special circumstances, as determined by the

7 Secretary, including—

8 ‘‘(A) a sudden or severe economic disloca9 tion;

10 ‘‘(B) significant chronic unemployment or

11 poverty;

12 ‘‘(C) a natural disaster; or

13 ‘‘(D) other severe economic, social, or cul14 tural duress.

15 ‘‘(3) OTHER FEDERAL ASSISTANCE.—For the

16 purpose of determining cost-share limitations for any

17 other Federal program, funds provided under this sec18 tion shall be considered to be non-Federal funds.

19 ‘‘(e) PREFERENCES.—In providing regional innova20 tion grants under this section, the Secretary shall give—

21 ‘‘(1) a high priority to strategies that dem22 onstrate significant leverage of capital and quality

23 job creation; and

24 ‘‘(2) a preference to an application proposing

25 projects and initiatives that would—
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1 ‘‘(A) advance the overall regional competi2 tiveness of a region;

3 ‘‘(B) address the priorities of a regional

4 rural investment strategy, including priorities

5 that—

6 ‘‘(i) promote cross-sector collaboration,

7 public-private partnerships, or the provi8 sion of collaborative gap financing or seed

9 capital for program implementation;

10 ‘‘(ii) exhibit collaborative innovation

11 and entrepreneurship, particularly within a

12 public-private partnership; and

13 ‘‘(iii) represent a broad coalition of in14 terests described in section 385D(a);

15 ‘‘(C) include a strategy to leverage public

16 non-Federal and private funds and existing as17 sets, including agricultural assets, natural assets,

18 and public infrastructure, with substantial em19 phasis placed on the existence of real financial

20 commitments to leverage the available funds;

21 ‘‘(D) create quality jobs;

22 ‘‘(E) enhance the role, relevance, and

23 leveraging potential of community and regional

24 foundations in support of regional investment

25 strategies;
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1 ‘‘(F) demonstrate a history, or involve orga2 nizations with a history, of successful leveraging

3 of capital for economic development and public

4 purposes;

5 ‘‘(G) address gaps in existing basic services,

6 including technology, within a region;

7 ‘‘(H) address economic diversification, in8 cluding agricultural and non-agriculturally

9 based economies, within a regional framework;

10 ‘‘(I) improve the overall quality of life in

11 the region (including with respect to education,

12 health care, housing, recreation, and arts and

13 culture);

14 ‘‘(J) enhance the potential to expand eco15 nomic development successes across diverse stake16 holder groups within the region;

17 ‘‘(K) include an effective working relation18 ship with 1 or more institutions of higher edu19 cation, tribally controlled colleges or universities,

20 or tribal technical institutions; or

21 ‘‘(L) help to meet the other regional com22 petitiveness needs identified by a Regional

23 Board.

24 ‘‘(f) USES.—
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1 ‘‘(1) LEVERAGE.—A Regional Board shall

2 prioritize projects and initiatives carried out using

3 funds from a regional innovation grant provided

4 under this section, based in part on the degree to

5 which members of the Regional Board are able to le6 verage additional funds for the implementation of the

7 projects.

8 ‘‘(2) PURPOSES.—A Regional Board may use a

9 regional innovation grant—

10 ‘‘(A) to support the development of critical

11 infrastructure (including technology deployment

12 and services) necessary to facilitate the competi13 tiveness of a region;

14 ‘‘(B) to provide assistance to entities within

15 the region that provide essential public and com16 munity services;

17 ‘‘(C) to enhance the value-added production,

18 marketing, and use of agricultural and natural

19 resources within the region, including activities

20 relating to renewable and alternative energy pro21 duction and usage;

22 ‘‘(D) to assist with entrepreneurship, job

23 training, workforce development, housing, edu24 cational, or other quality of life services or needs,
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1 relating to the development and maintenance of

2 strong local and regional economies;

3 ‘‘(E) to assist in the development of unique

4 new collaborations that link public, private, and

5 philanthropic resources, including community

6 foundations;

7 ‘‘(F) to provide support for business and en8 trepreneurial investment, strategy, expansion,

9 and development, including feasibility strategies,

10 technical assistance, peer networks, and business

11 development funds;

12 ‘‘(G) to carry out other broad activities re13 lating to strengthening the economic competitive14 ness of the region; and

15 ‘‘(H) to provide matching funds to enable

16 community foundations located within the region

17 to build endowments which provide permanent

18 philanthropic resources to implement a regional

19 investment strategy.

20 ‘‘(3) AVAILABILITY OF FUNDS.—The funds made

21 available to a Regional Board or any other eligible

22 grantee through a regional innovation grant shall re23 main available for the 7-year period beginning on the

24 date on which the award is provided, on the condition

25 that the Regional Board or other grantee continues to
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1 be certified by the Secretary as making adequate

2 progress toward achieving established benchmarks.

3 ‘‘(g) COST SHARING.—

4 ‘‘(1) WAIVER OF GRANTEE SHARE.—The Sec5 retary may waive the share of a grantee of the costs

6 of a project funded by a regional innovation grant

7 under this section if the Secretary determines that

8 such a waiver is appropriate, including with respect

9 to special circumstances within tribal regions, in the

10 event an area experiences—

11 ‘‘(A) a sudden or severe economic disloca12 tion;

13 ‘‘(B) significant chronic unemployment or

14 poverty;

15 ‘‘(C) a natural disaster; or

16 ‘‘(D) other severe economic, social, or cul17 tural duress.

18 ‘‘(2) OTHER FEDERAL PROGRAMS.—For the pur19 pose of determining cost-sharing requirements for any

20 other Federal program, funds provided as a regional

21 innovation grant under this section shall be consid22 ered to be non-Federal funds.

23 ‘‘(h) NONCOMPLIANCE.—If a Regional Board or other

24 eligible grantee fails to comply with any requirement relat-
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1 ing to the use of funds provided under this section, the Sec2 retary may—

3 ‘‘(1) take such actions as are necessary to obtain

4 reimbursement of unused grant funds; and

5 ‘‘(2) reprogram the recaptured funds for pur6 poses relating to implementation of this subtitle.

7 ‘‘(i) PRIORITY TO AREAS WITH AWARDS AND AP8 PROVED STRATEGIES.—

9 ‘‘(1) IN GENERAL.—Subject to paragraph (3), in

10 providing rural development assistance under other

11 programs, the Secretary shall give a high priority to

12 areas that receive innovation grants under this sec13 tion.

14 ‘‘(2) CONSULTATION.—The Secretary shall con15 sult with the heads of other Federal agencies to pro16 mote the development of priorities similar to those de17 scribed in paragraph (1).

18 ‘‘(3) EXCLUSION OF CERTAIN PROGRAMS.—Para19 graph (1) shall not apply to the provision of rural de20 velopment assistance under any program relating to

21 basic health, safety, or infrastructure, including

22 broadband deployment or minimum environmental

23 needs.
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1 ‘‘SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.

2 ‘‘(a) IN GENERAL.—The Secretary may provide long3 term loans to eligible community foundations to assist in

4 the implementation of regional investment strategies.

5 ‘‘(b) ELIGIBLE COMMUNITY FOUNDATIONS.—To be eli6 gible to receive a loan under this section, a community

7 foundation shall—

8 ‘‘(1) be located in an area that is covered by a

9 regional investment strategy;

10 ‘‘(2) match the amount of the loan with an

11 amount that is at least 250 percent of the amount of

12 the loan; and

13 ‘‘(3) use the loan and the matching amount to

14 carry out the regional investment strategy targeted to

15 community and economic development, including

16 through the development of community foundation en17 dowments.

18 ‘‘(c) TERMS.—A loan made under this section shall—

19 ‘‘(1) have a term of not less than 10, nor more

20 than 20, years;

21 ‘‘(2) bear an interest rate of 1 percent per

22 annum; and

23 ‘‘(3) be subject to such other terms and condi24 tions as are determined appropriate by the Secretary.
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1 ‘‘SEC. 385H. FUNDING.

2 ‘‘(a) IN GENERAL.—Of the funds of the Commodity

3 Credit Corporation, the Secretary shall use $135,000,000 to

4 carry out this subtitle, to remain available until expended.

5 ‘‘(b) USEBY SECRETARY.—Of the amounts made

6 available to the Secretary under subsection (a), the Sec7 retary shall use—

8 ‘‘(1) $15,000,000 to be provided for regional in9 vestment strategy grants to Regional Boards under

10 section 385E;

11 ‘‘(2) $110,000,000 to provide innovation grants

12 to Regional Boards under section 385F and for the

13 cost of rural endowment loans under section 385G;

14 ‘‘(3) $5,000,000 for fiscal year 2008 to admin15 ister the duties of the National Board, to remain

16 available until expended; and

17 ‘‘(4) $5,000,000 for fiscal year 2008 to admin18 ister the National Institute, to remain available until

19 expended.

20 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—In addi21 tion to funds otherwise made available to carry out this

22 subtitle, there are authorized to be appropriated to the Sec23 retary such sums as are necessary to carry out this sub24 title.’’.
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1 SEC. 6033. FUNDING OF PENDING RURAL DEVELOPMENT

2 LOAN AND GRANT APPLICATIONS.

3 (a) DEFINITION OF APPLICATION.—In this section, the

4 term ‘‘application’’ does not include an application for a

5 loan or grant that, as of the date of enactment of this Act,

6 is in the preapplication phase of consideration under regu7 lations of the Secretary in effect on the date of enactment

8 of this Act.

9 (b) USEOF FUNDS.—Subject to subsection (c), the Sec10 retary shall use funds made available under subsection (d)

11 to provide funds for applications that are pending on the

12 date of enactment of this Act for—

13 (1) water or waste disposal grants or direct

14 loans under paragraph (1) or (2) of section 306(a) of

15 the Consolidated Farm and Rural Development Act

16 (7 U.S.C. 1926(a)); and

17 (2) emergency community water assistance

18 grants under section 306A of that Act (7 U.S.C.

19 1926a).

20 (c) LIMITATIONS.—

21 (1) APPROPRIATED AMOUNTS.—Funds made

22 available under this section shall be available to the

23 Secretary to provide funds for applications for loans

24 and grants described in subsection (b) that are pend25 ing on the date of enactment of this Act only to the

26 extent that funds for the loans and grants appro-
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1 priated in the annual appropriations Act for fiscal

2 year 2007 have been exhausted.

3 (2) PROGRAM REQUIREMENTS.—The Secretary

4 may use funds made available under this section to

5 provide funds for a pending application for a loan or

6 grant described in subsection (b) only if the Secretary

7 processes, reviews, and approves the application in

8 accordance with regulations in effect on the date of

9 enactment of this Act.

10 (3) PRIORITY.—In providing funding under this

11 section for pending applications for loans or grants

12 described in subsection (b), the Secretary shall provide

13 funding in the following order of priority (until funds

14 made available under this section are exhausted):

15 (A) Pending applications for water systems.

16 (B) Pending applications for waste disposal

17 systems.

18 (4) INDIVIDUAL STATES.—In allocating funds

19 made available under subsection (d), the Secretary

20 shall use not more 5 percent of the funds for pending

21 applications for loans or grants described in sub22 section (b) that are made in any individual State.

23 (d) FUNDING.—Notwithstanding any other provision

24 of law, of the funds of the Commodity Credit Corporation,
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1 the Secretary shall use to carry out this section

2 $135,000,000, to remain available until expended.

3 SEC. 6034. NORTHERN BORDER ECONOMIC DEVELOPMENT

4 COMMISSION.

5 The Consolidated Farm and Rural Development Act

6 (7 U.S.C. 1921 et seq.) is amended by adding at the end

7 the following:

8 ‘‘Subtitle J—Northern Border

9 Economic Development Commission

10 ‘‘SEC. 386A. DEFINITIONS.

11 ‘‘In this subtitle:

12 ‘‘(1) COMMISSION.—The term ‘Commission’

13 means the Northern Border Economic Development

14 Commission established by section 386B.

15 ‘‘(2) FEDERAL GRANT PROGRAM.—The term

16 ‘Federal grant program’ means a Federal grant pro17 gram to provide assistance in carrying out economic

18 and community development activities and conserva19 tion activities that are consistent with economic de20 velopment.

21 ‘‘(3) NON-PROFIT ENTITY.—The term ‘non-profit

22 entity’ means any entity with tax-exempt or non23 profit status, as defined by the Internal Revenue

24 Service.
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1 ‘‘(4) REGION.—The term ‘region’ means the area

2 covered by the Commission (as described in section

3 386N).

4 ‘‘SEC. 386B. NORTHERN BORDER ECONOMIC DEVELOPMENT

5 COMMISSION.

6 ‘‘(a) ESTABLISHMENT.—

7 ‘‘(1) IN GENERAL.—There is established the

8 Northern Border Economic Development Commission.

9 ‘‘(2) COMPOSITION.—The Commission shall be

10 composed of—

11 ‘‘(A) a Federal member, to be appointed by

12 the President, with the advice and consent of the

13 Senate; and

14 ‘‘(B) the Governor of each State in the re15 gion that elects to participate in the Commis16 sion.

17 ‘‘(3) COCHAIRPERSONS.—The Commission shall

18 be headed by—

19 ‘‘(A) the Federal member, who shall serve—

20 ‘‘(i) as the Federal cochairperson; and

21 ‘‘(ii) as a liaison between the Federal

22 Government and the Commission; and

23 ‘‘(B) a State cochairperson, who—

24 ‘‘(i) shall be a Governor of a partici25 pating State in the region; and
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1 ‘‘(ii) shall be elected by the State mem2 bers for a term of not less than 1 year.

3 ‘‘(b) ALTERNATE MEMBERS.—

4 ‘‘(1) STATE ALTERNATES.—

5 ‘‘(A) APPOINTMENT.—The State member of

6 a participating State may have a single alter7 nate, who shall be appointed by the Governor of

8 the State from among the Governor’s cabinet or

9 personal staff.

10 ‘‘(B) VOTING.—An alternate shall vote in

11 the event of the absence, death, disability, re12 moval, or resignation of the member for whom

13 the individual is an alternate.

14 ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.—

15 The President shall appoint an alternate Federal co16 chairperson.

17 ‘‘(3) QUORUM.—

18 ‘‘(A) IN GENERAL.—Subject to the require19 ments of this paragraph, the Commission shall

20 determine what constitutes a quorum of the Com21 mission.

22 ‘‘(B) FEDERAL COCHAIRPERSON.—The Fed23 eral cochairperson or the Federal cochairperson’s

24 designee must be present for the establishment of

25 a quorum of the Commission.
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1 ‘‘(C) STATE ALTERNATES.—A State alter2 nate shall not be counted toward the establish3 ment of a quorum of the Commission.

4 ‘‘(4) DELEGATION OF POWER.—No power or re5 sponsibility of the Commission specified in para6 graphs (3) and (4) of subsection (c), and no voting

7 right of any Commission member, shall be delegated

8 to any person—

9 ‘‘(A) who is not a Commission member; or

10 ‘‘(B) who is not entitled to vote in Commis11 sion meetings.

12 ‘‘(c) DECISIONS.—

13 ‘‘(1) REQUIREMENTS FOR APPROVAL.—Except as

14 provided in subsection (g), decisions by the Commis15 sion shall require the affirmative vote of the Federal

16 cochairperson and of a majority of the State members,

17 exclusive of members representing States delinquent

18 under subsection (g)(2)(C).

19 ‘‘(2) CONSULTATION.—In matters coming before

20 the Commission, the Federal cochairperson, to the ex21 tent practicable, shall consult with the Federal de22 partments and agencies having an interest in the sub23 ject matter.
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1 ‘‘(3) DECISIONS REQUIRING QUORUM OF STATE

2 MEMBERS.—The following decisions may not be made

3 without a quorum of State members:

4 ‘‘(A) A decision involving Commission pol5 icy.

6 ‘‘(B) Approval of State, regional, or sub7 regional development plans or strategy state8 ments.

9 ‘‘(C) Modification or revision of the Com10 mission’s code.

11 ‘‘(D) Allocation of amounts among the

12 States.

13 ‘‘(4) PROJECT AND GRANT PROPOSALS.—The ap14 proval of project and grant proposals is a responsi15 bility of the Commission and shall be carried out in

16 accordance with section 386H.

17 ‘‘(d) DUTIES.—The Commission shall—

18 ‘‘(1) develop, on a continuing basis, comprehen19 sive and coordinated plans and programs to establish

20 priorities and approve grants for the economic devel21 opment of the region, giving due consideration to

22 other Federal, State, and local planning and develop23 ment activities in the region;

24 ‘‘(2) not later than 365 days after the date of en25 actment of this Act, establish priorities in a develop-
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1 ment plan for the region (including 5-year regional

2 outcome targets);

3 ‘‘(3) assess the needs and capital assets of the re4 gion based on available research, demonstration

5 projects, assessments, and evaluations of the region

6 prepared by Federal, State, or local agencies, local de7 velopment districts, and any other relevant source;

8 ‘‘(4)(A) enhance the capacity of, and provide

9 support for, local development districts in the region;

10 or

11 ‘‘(B) if no local development district exists in an

12 area in a participating State in the region, foster the

13 creation of a local development district;

14 ‘‘(5) actively solicit the participation of rep15 resentatives of local development districts, industry

16 groups, and other appropriate organizations as ap17 proved by the Commission, in all public proceedings

18 of the Commission conducted under subsection (e)(1),

19 either in-person or through interactive telecommuni20 cations; and

21 ‘‘(6) encourage private investment in industrial,

22 commercial, and other economic development projects

23 in the region.

24 ‘‘(e) ADMINISTRATION.—In carrying out subsection

25 (d), the Commission may—
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1 ‘‘(1) hold such hearings, sit and act at such

2 times and places, take such testimony, receive such

3 evidence, and print or otherwise reproduce and dis4 tribute a description of the proceedings and reports

5 on actions by the Commission as the Commission con6 siders appropriate;

7 ‘‘(2) authorize, through the Federal or State co8 chairperson or any other member of the Commission

9 designated by the Commission, the administration of

10 oaths if the Commission determines that testimony

11 should be taken or evidence received under oath;

12 ‘‘(3) request from any Federal, State, or local de13 partment or agency such information as may be

14 available to or procurable by the department or agen15 cy that may be of use to the Commission in carrying

16 out duties of the Commission;

17 ‘‘(4) adopt, amend, and repeal bylaws and rules

18 governing the conduct of Commission business and the

19 performance of Commission duties;

20 ‘‘(5) request the head of any Federal department

21 or agency to detail to the Commission such personnel

22 as the Commission requires to carry out duties of the

23 Commission, each such detail to be without loss of se24 niority, pay, or other employee status;
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1 ‘‘(6) request the head of any State department or

2 agency or local government to detail to the Commis3 sion such personnel as the Commission requires to

4 carry out duties of the Commission, each such detail

5 to be without loss of seniority, pay, or other employee

6 status;

7 ‘‘(7) provide for coverage of Commission employ8 ees in a suitable retirement and employee benefit sys9 tem by—

10 ‘‘(A) making arrangements or entering into

11 contracts with any participating State govern12 ment; or

13 ‘‘(B) otherwise providing retirement and

14 other employee benefit coverage;

15 ‘‘(8) accept, use, and dispose of gifts or donations

16 of services or real, personal, tangible, or intangible

17 property;

18 ‘‘(9) enter into and perform such contracts or

19 other transactions as are necessary to carry out Com20 mission duties;

21 ‘‘(10) establish and maintain a central office lo22 cated within the Northern Border Economic Develop23 ment Commission region and field offices at such lo24 cations as the Commission may select; and
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1 ‘‘(11) provide for an appropriate level of rep2 resentation in Washington, DC.

3 ‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal

4 agency shall—

5 ‘‘(1) cooperate with the Commission; and

6 ‘‘(2) provide, on request of the Federal cochair7 person, appropriate assistance in carrying out this

8 subtitle, in accordance with applicable Federal laws

9 (including regulations).

10 ‘‘(g) ADMINISTRATIVE EXPENSES.—

11 ‘‘(1) IN GENERAL.—Administrative expenses of

12 the Commission (except for the expenses of the Federal

13 cochairperson, including expenses of the alternate and

14 staff of the Federal cochairperson, which shall be paid

15 solely by the Federal Government) shall be paid—

16 ‘‘(A) by the Federal Government, in an

17 amount equal to 50 percent of the administrative

18 expenses; and

19 ‘‘(B) by the States in the region partici20 pating in the Commission, in an amount equal

21 to 50 percent of the administrative expenses.

22 ‘‘(2) STATESHARE.—

23 ‘‘(A) IN GENERAL.—The share of adminis24 trative expenses of the Commission to be paid by
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1 each State shall be determined by the Commis2 sion.

3 ‘‘(B) NO FEDERAL PARTICIPATION.—The

4 Federal cochairperson shall not participate or

5 vote in any decision under subparagraph (A).

6 ‘‘(C) DELINQUENT STATES.—If a State is

7 delinquent in payment of the State’s share of ad8 ministrative expenses of the Commission under

9 this subsection—

10 ‘‘(i) no assistance under this subtitle

11 shall be furnished to the State (including

12 assistance to a political subdivision or a

13 resident of the State); and

14 ‘‘(ii) no member of the Commission

15 from the State shall participate or vote in

16 any action by the Commission.

17 ‘‘(h) COMPENSATION.—

18 ‘‘(1) FEDERAL COCHAIRPERSON.—The Federal

19 cochairperson shall be compensated by the Federal

20 Government at level III of the Executive Schedule in

21 subchapter II of chapter 53 of title V, United States

22 Code.

23 ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.—

24 The alternate Federal cochairperson—
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1 ‘‘(A) shall be compensated by the Federal

2 Government at level V of the Executive Schedule

3 described in paragraph (1); and

4 ‘‘(B) when not actively serving as an alter5 nate for the Federal cochairperson, shall perform

6 such functions and duties as are delegated by the

7 Federal cochairperson.

8 ‘‘(3) STATE MEMBERS AND ALTERNATES.—

9 ‘‘(A) IN GENERAL.—A State shall com10 pensate each member and alternate representing

11 the State on the Commission at the rate estab12 lished by law of the State.

13 ‘‘(B) NO ADDITIONAL COMPENSATION.—No

14 State member or alternate member shall receive

15 any salary, or any contribution to or sup16 plementation of salary from any source other

17 than the State for services provided by the mem18 ber or alternate to the Commission.

19 ‘‘(4) DETAILED EMPLOYEES.—

20 ‘‘(A) IN GENERAL.—No person detailed to

21 serve the Commission under paragraph (5) or

22 (6) of subsection (e) shall receive any salary or

23 any contribution to or supplementation of salary

24 for services provided to the Commission from—
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1 ‘‘(i) any source other than the Federal,

2 State, local, or intergovernmental depart3 ment or agency from which the person was

4 detailed; or

5 ‘‘(ii) the Commission.

6 ‘‘(B) VIOLATION.—Any person that violates

7 this paragraph shall be fined not more than

8 $5,000, imprisoned not more than 1 year, or

9 both.

10 ‘‘(C) APPLICABLELAW.—The Federal co11 chairperson, the alternate Federal cochairperson,

12 and any Federal officer or employee detailed to

13 duty on the Commission under subsection (e)(5)

14 shall not be subject to subparagraph (A), but

15 shall remain subject to sections 202 through 209

16 of title 18, United States Code.

17 ‘‘(5) ADDITIONAL PERSONNEL.—

18 ‘‘(A) COMPENSATION.—

19 ‘‘(i) IN GENERAL.—The Commission

20 may appoint and fix the compensation of

21 an executive director and such other per22 sonnel as are necessary to enable the Com23 mission to carry out the duties of the Com24 mission.
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1 ‘‘(ii) EXCEPTION.—Compensation

2 under clause (i) shall not exceed the max3 imum rate for the Senior Executive Service

4 under section 5382 of title 5, United States

5 Code, including any applicable locality6 based comparability payment that may be

7 authorized under section 5304(h)(2)(C) of

8 that title.

9 ‘‘(B) EXECUTIVE DIRECTOR.—The executive

10 director shall be responsible for—

11 ‘‘(i) the carrying out of the adminis12 trative duties of the Commission;

13 ‘‘(ii) direction of the Commission staff;

14 and

15 ‘‘(iii) such other duties as the Commis16 sion may assign.

17 ‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No

18 member, alternate, officer, or employee of the

19 Commission (except the Federal cochairperson of

20 the Commission, the alternate and staff for the

21 Federal cochairperson, and any Federal em22 ployee detailed to the Commission under sub23 section (e)(5)) shall be considered to be a Federal

24 employee for any purpose.

25 ‘‘(i) CONFLICTS OF INTEREST.—
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1 ‘‘(1) IN GENERAL.—Except as provided under

2 paragraph (2), no State member, alternate, officer, or

3 employee of the Commission shall participate person4 ally and substantially as a member, alternate, officer,

5 or employee of the Commission, through decision, ap6 proval, disapproval, recommendation, the rendering

7 of advice, investigation, or otherwise, in any pro8 ceeding, application, request for a ruling or other de9 termination, contract, claim, controversy, or other

10 matter in which, to knowledge of the member, alter11 nate, officer, or employee any of the following persons

12 has a financial interest:

13 ‘‘(A) The member, alternate, officer, or em14 ployee.

15 ‘‘(B) The spouse, minor child, partner, or

16 organization (other than a State or political sub17 division of the State) of the member, alternate,

18 officer, or employee, in which the member, alter19 nate, officer, or employee is serving as officer, di20 rector, trustee, partner, or employee.

21 ‘‘(C) Any person or organization with

22 whom the member, alternate, officer, or employee

23 is negotiating or has any arrangement con24 cerning prospective employment.
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1 ‘‘(2) DISCLOSURE.—Paragraph (1) shall not

2 apply if the State member, alternate, officer, or

3 employee—

4 ‘‘(A) immediately advises the Commission

5 of the nature and circumstances of the pro6 ceeding, application, request for a ruling or other

7 determination, contract, claim, controversy, or

8 other particular matter presenting a potential

9 conflict of interest;

10 ‘‘(B) makes full disclosure of the financial

11 interest; and

12 ‘‘(C) before the proceeding concerning the

13 matter presenting the conflict of interest, receives

14 a written determination by the Commission that

15 the interest is not so substantial as to be likely

16 to affect the integrity of the services that the

17 Commission may expect from the State member,

18 alternate, officer, or employee.

19 ‘‘(3) VIOLATION.—Any person that violates this

20 subsection shall be fined not more than $10,000, im21 prisoned not more than 2 years, or both.

22 ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.—

23 The Commission may declare void any contract, loan, or

24 grant of or by the Commission in relation to which the

25 Commission determines that there has been a violation of
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1 any provision under subsection (h)(4), subsection (i), or sec2 tions 202 through 209 of title 18, United States Code.

3 ‘‘SEC. 386C. ECONOMIC AND COMMUNITY DEVELOPMENT

4 GRANTS.

5 ‘‘(a) IN GENERAL.—The Commission may approve

6 grants to States, local development districts (as defined in

7 section 386E(a)), and public and nonprofit entities for

8 projects, approved in accordance with section 386H—

9 ‘‘(1) to develop the infrastructure of the region

10 for the purpose of facilitating economic development

11 in the region (except that grants for this purpose may

12 only be made to a State or local government);

13 ‘‘(2) to assist the region in obtaining job train14 ing, employment-related education, business develop15 ment, and small business development and entrepre16 neurship;

17 ‘‘(3) to assist the region in community and eco18 nomic development;

19 ‘‘(4) to support the development of severely dis20 tressed and underdeveloped areas;

21 ‘‘(5) to promote resource conservation, forest

22 management, tourism, recreation, and preservation of

23 open space in a manner consistent with economic de24 velopment goals;
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1 ‘‘(6) to promote the development of renewable

2 and alternative energy sources; and

3 ‘‘(7) to achieve the purposes of this subtitle.

4 ‘‘(b) FUNDING.—

5 ‘‘(1) IN GENERAL.—Funds for grants under sub6 section (a) may be provided—

7 ‘‘(A) entirely from appropriations to carry

8 out this section;

9 ‘‘(B) in combination with funds available

10 under another State or Federal grant program;

11 or

12 ‘‘(C) from any other source.

13 ‘‘(2) ELIGIBLEPROJECTS.—The Commission

14 may provide assistance, make grants, enter into con15 tracts, and otherwise provide funds to eligible entities

16 in the region for projects that promote—

17 ‘‘(A) business development;

18 ‘‘(B) job training or employment-related

19 education;

20 ‘‘(C) small businesses and entrepreneurship,

21 including—

22 ‘‘(i) training and education to aspir23 ing entrepreneurs, small businesses, and

24 students;
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1 ‘‘(ii) access to capital and facilitating

2 the establishment of small business venture

3 capital funds;

4 ‘‘(iii) existing entrepreneur and small

5 business development programs and

6 projects; and

7 ‘‘(iv) projects promoting small business

8 innovation and research;

9 ‘‘(D) local planning and leadership develop10 ment;

11 ‘‘(E) basic public infrastructure, including

12 high-tech infrastructure and productive natural

13 resource conservation;

14 ‘‘(F) information and technical assistance

15 for the modernization and diversification of the

16 forest products industry to support value-added

17 forest products enterprises;

18 ‘‘(G) forest-related cultural, nature-based,

19 and heritage tourism;

20 ‘‘(H) energy conservation and efficiency in

21 the region to enhance its economic competitive22 ness;

23 ‘‘(I) the use of renewable energy sources in

24 the region to produce alternative transportation

25 fuels, electricity and heat; and
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1 ‘‘(J) any other activity facilitating eco2 nomic development in the region.

3 ‘‘(3) FEDERAL SHARE.—Notwithstanding any

4 provision of law limiting the Federal share in any

5 grant program, funds appropriated or otherwise made

6 available to carry out this section may be used to in7 crease a Federal share in a grant program, as the

8 Commission determines appropriate.

9 ‘‘SEC. 386D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

10 ‘‘(a) FEDERAL GRANT PROGRAM FUNDING.—In ac11 cordance with subsection (b), the Federal cochairperson

12 may use amounts made available to carry out this subtitle,

13 without regard to any limitations on areas eligible for as14 sistance or authorizations for appropriation under any

15 other Act, to fund all or any portion of the basic Federal

16 contribution to a project or activity under a Federal grant

17 program in the region in an amount that is above the fixed

18 maximum portion of the cost of the project otherwise au19 thorized by applicable law, but not to exceed 80 percent of

20 the costs of the project.

21 ‘‘(b) CERTIFICATION.—

22 ‘‘(1) IN GENERAL.—In the case of any program

23 or project for which all or any portion of the basic

24 Federal contribution to the project under a Federal

25 grant program is proposed to be made under this sec-
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1 tion, no Federal contribution shall be made until the

2 Federal official administering the Federal law au3 thorizing the contribution certifies that the program

4 or project—

5 ‘‘(A) meets the applicable requirements of

6 the applicable Federal grant law; and

7 ‘‘(B) could be approved for Federal con8 tribution under the law if funds were available

9 under the law for the program or project.

10 ‘‘(2) CERTIFICATION BY COMMISSION.—

11 ‘‘(A) IN GENERAL.—The certifications and

12 determinations required to be made by the Com13 mission for approval of projects under this sub14 title in accordance with section 386H—

15 ‘‘(i) shall be controlling; and

16 ‘‘(ii) shall be accepted by the Federal

17 agencies.

18 ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR19 PERSON.—Any finding, report, certification, or

20 documentation required to be submitted to the

21 head of the department, agency, or instrumen22 tality of the Federal Government responsible for

23 the administration of any Federal grant pro24 gram shall be accepted by the Federal cochair-
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1 person with respect to a supplemental grant for

2 any project under the program.

3 ‘‘SEC. 386E. LOCAL DEVELOPMENT DISTRICTS; CERTIFI4 CATION AND ADMINISTRATIVE EXPENSES.

5 ‘‘(a) DEFINITION OF LOCAL DEVELOPMENT DIS6 TRICT.—In this section, the term ‘local development district’

7 means an entity designated by the State that—

8 ‘‘(1) is—

9 ‘‘(A)(i) a planning district in existence on

10 the date of enactment of this Act that is recog11 nized by the Economic Development Administra12 tion of the Department of Commerce; or

13 ‘‘(ii) a development district recognized by

14 the State; or

15 ‘‘(B) if an entity described in subparagraph

16 (A)(i) or (A)(ii) does not exist, an entity des17 ignated by the Commission that satisfies the cri18 teria developed by the Economic Development

19 Administration for a local development district;

20 and

21 ‘‘(2) has not, as certified by the Federal

22 cochairperson—

23 ‘‘(A) inappropriately used Federal grant

24 funds from any Federal source; or
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1 ‘‘(B) appointed an officer who, during the

2 period in which another entity inappropriately

3 used Federal grant funds from any Federal

4 source, was an officer of the other entity.

5 ‘‘(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—

6 ‘‘(1) IN GENERAL.—The Commission may make

7 grants for administrative expenses under this section.

8 ‘‘(2) CONDITIONS FOR GRANTS.—

9 ‘‘(A) MAXIMUM AMOUNT.—The amount of

10 any grant awarded under paragraph (1) shall

11 not exceed 80 percent of the administrative ex12 penses of the local development district receiving

13 the grant.

14 ‘‘(B) LOCAL SHARE.—The contributions of

15 a local development district for administrative

16 expenses may be in cash or in kind, fairly evalu17 ated, including space, equipment, and services.

18 ‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—

19 A local development district shall—

20 ‘‘(1) operate as a lead organization serving

21 multicounty areas in the region at the local level; and

22 ‘‘(2) serve as a liaison between State and local

23 governments, nonprofit organizations (including com24 munity-based groups and educational institutions),

25 the business community, and citizens that—
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1 ‘‘(A) are involved in multijurisdictional

2 planning;

3 ‘‘(B) provide technical assistance to local

4 jurisdictions and potential grantees; and

5 ‘‘(C) provide leadership and civic develop6 ment assistance.

7 ‘‘SEC. 386F. DEVELOPMENT PLANNING PROCESS.

8 ‘‘(a) STATE DEVELOPMENT PLAN.—In accordance

9 with policies established by the Commission, each State

10 member shall submit a development plan for the area of

11 the region represented by the State member.

12 ‘‘(b) CONTENT OF PLAN.—A State development plan

13 submitted under subsection (a) shall reflect the goals, objec14 tives, and priorities identified in the regional development

15 plan developed under section 386B(d)(2).

16 ‘‘(c) CONSULTATION.—In carrying out the development

17 planning process, a State shall—

18 ‘‘(1) consult with—

19 ‘‘(A) local development districts;

20 ‘‘(B) local units of government;

21 ‘‘(C) institutions of higher learning; and

22 ‘‘(D) stakeholders; and

23 ‘‘(2) take into consideration the goals, objectives,

24 priorities, and recommendations of the entities de25 scribed in paragraph (1).
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1 ‘‘(d) PUBLIC PARTICIPATION.—The Commission and

2 applicable State and local development districts shall en3 courage and assist, to the maximum extent practicable, pub4 lic participation in the development, revision, and imple5 mentation of all plans and programs under this subtitle.

6 ‘‘SEC. 386G. PROGRAM DEVELOPMENT CRITERIA.

7 ‘‘(a) IN GENERAL.—In considering programs and

8 projects to be provided assistance under this subtitle, and

9 in establishing a priority ranking of the requests for assist10 ance provided by the Commission, the Commission shall fol11 low procedures that ensure, to the maximum extent prac12 ticable, consideration of—

13 ‘‘(1) the relationship of the project to overall re14 gional development;

15 ‘‘(2) the economic distress of an area, including

16 the per capita income, outmigration, poverty and un17 employment rates, and other socioeconomic indicators

18 for the area;

19 ‘‘(3) the financial resources available to the ap20 plicants for assistance seeking to carry out the

21 project, with emphasis on ensuring that projects are

22 adequately financed to maximize the probability of

23 successful economic development;
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1 ‘‘(4) the importance of the project in relation to

2 other projects that may be in competition for the same

3 funds;

4 ‘‘(5) the prospects that the project for which as5 sistance is sought will improve, on a continuing rath6 er than a temporary basis, the opportunities for em7 ployment, the average level of income, or the economic

8 development of the area served by the project;

9 ‘‘(6) the extent to which the project design pro10 vides for detailed outcome measurements by which

11 grant expenditures and the results of the expenditures

12 may be evaluated; and

13 ‘‘(7) the preservation of multiple uses, including

14 conservation, of natural resources.

15 ‘‘(b) NO RELOCATION ASSISTANCE.—No financial as16 sistance authorized by this subtitle shall be used to assist

17 an establishment in relocating from 1 area to another.

18 ‘‘(c) REDUCTION OF FUNDS.—Funds may be provided

19 for a program or project in a State under this subtitle only

20 if the Commission determines that the level of Federal or

21 State financial assistance provided under a law other than

22 this subtitle, for the same type of program or project in

23 the same area of the State within the region, will not be

24 reduced as a result of funds made available by this subtitle.
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1 ‘‘SEC. 386H. APPROVAL OF DEVELOPMENT PLANS AND

2 PROJECTS.

3 ‘‘(a) IN GENERAL.—A State or regional development

4 plan or any multistate subregional plan that is proposed

5 for development under this subtitle shall be reviewed by the

6 Commission.

7 ‘‘(b) EVALUATION BY STATE MEMBER.—An applica8 tion for a grant or any other assistance for a project under

9 this subtitle shall be made through and evaluated for ap10 proval by the State member of the Commission representing

11 the applicant.

12 ‘‘(c) CERTIFICATION.—An application for a grant or

13 other assistance for a project shall be approved only on cer14 tification by the State member and Federal cochairperson

15 that the application for the project—

16 ‘‘(1) describes ways in which the project complies

17 with any applicable State development plan;

18 ‘‘(2) meets applicable criteria under section

19 386G;

20 ‘‘(3) provides adequate assurance that the pro21 posed project will be properly administered, operated,

22 and maintained; and

23 ‘‘(4) otherwise meets the requirements of this sub24 title.

25 ‘‘(d) VOTES FOR DECISIONS.—Upon certification of an

26 application for a grant or other assistance for a specific
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1 project under this section, an affirmative vote of the Com2 mission under section 386B(c) shall be required for ap3 proval of the application.

4 ‘‘SEC. 386I. CONSENT OF STATES.

5 ‘‘Nothing in this subtitle requires any State to engage

6 in or accept any program under this subtitle without the

7 consent of the State.

8 ‘‘SEC. 386J. RECORDS.

9 ‘‘(a) RECORDS OF THE COMMISSION.—

10 ‘‘(1) IN GENERAL.—The Commission shall main11 tain accurate and complete records of all transactions

12 and activities of the Commission.

13 ‘‘(2) AVAILABILITY.—All records required under

14 paragraph (1) shall be available for audit by the

15 Comptroller General of the United States and the

16 Commission (including authorized representatives of

17 the Comptroller General and the Commission).

18 ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST19 ANCE.—

20 ‘‘(1) IN GENERAL.—A recipient of Federal funds

21 under this subtitle shall, as required by the Commis22 sion, maintain accurate and complete records of

23 transactions and activities financed with Federal

24 funds and report on the transactions and activities to

25 the Commission.
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1 ‘‘(2) AVAILABILITY.—All records required under

2 paragraph (1) shall be available for audit by the

3 Comptroller General of the United States and the

4 Commission (including authorized representatives of

5 the Comptroller General and the Commission).

6 ‘‘SEC. 386K. ANNUAL REPORT.

7 ‘‘Not later than 180 days after the end of each fiscal

8 year, the Commission shall submit to the President and to

9 Congress a report describing the activities carried out under

10 this subtitle.

11 ‘‘SEC. 386L. AUTHORIZATION OF APPROPRIATIONS.

12 ‘‘(a) IN GENERAL.—There is authorized to be appro13 priated to the Commission to carry out this subtitle

14 $40,000,000 for each of fiscal years 2008 through 2012, to

15 remain available until expended.

16 ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5

17 percent of the amount appropriated under subsection (a)

18 for a fiscal year shall be used for administrative expenses

19 of the Commission.

20 ‘‘SEC. 386M. TERMINATION OF COMMISSION.

21 ‘‘This subtitle shall have no force or effect on or after

22 October 1, 2012.
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1 ‘‘SEC. 386N. REGION OF NORTHERN BORDER ECONOMIC DE2 VELOPMENT COMMISSION.

3 ‘‘(a) GOAL.—It shall be the goal of the Commission

4 to address economic distress along the northern border of

5 the United States east of, and including, Cayuga County,

6 New York, especially in rural areas.

7 ‘‘(b) COUNTIES INCLUDED IN NORTHERN BORDER RE8 GION.—Consistent with the goal described in subsection (a),

9 the region of Commission shall include the following coun10 ties:

11 ‘‘(1) In Maine, the counties of Aroostook, Frank12 lin, Oxford, Somerset, and Washington.

13 ‘‘(2) In New Hampshire, the county of Coos.

14 ‘‘(3) In New York, the counties of Cayuga, Clin15 ton, Franklin, Jefferson, Oswego, and St. Lawrence.

16 ‘‘(4) In Vermont, the counties of Essex, Franklin,

17 Grand Isle, and Orleans.

18 ‘‘(c) CONTIGUOUS COUNTIES.—

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2), in

20 addition to the counties listed in subsection (b), the

21 region of Commission shall include the following

22 counties:

23 ‘‘(A) In Maine, the counties of

24 Androscoggin, Kennebec, Penobscot, Piscataquis,

25 and Waldo.
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1 ‘‘(B) In New York, the counties of Essex,

2 Hamilton, Herkimer, Lewis, Oneida, and Sen3 eca.

4 ‘‘(C) In Vermont, the county of Caledonia.

5 ‘‘(2) RECOMMENDATIONS TO CONGRESS.—As

6 part of an annual report submitted under section

7 386K, the Commission may recommend to Congress

8 removal of a county listed in paragraph (1) from the

9 region on the basis that the county no longer exhibits

10 2 or more of the following economic distress factors:

11 population loss, poverty, income levels, and unem12 ployment.

13 ‘‘(d) EXAMINATION OF ADDITIONAL COUNTIES AND

14 AREAS FOR INCLUSION IN THE REGION.—

15 ‘‘(1) IN GENERAL.—Not later than one year after

16 the date of enactment of this Act, the Commission—

17 ‘‘(A) shall examine all counties that border

18 the region of the Commission specified in sub19 section (a), including the political subdivisions

20 and census tracts within such counties; and

21 ‘‘(B) may add a county or any portion of

22 a county examined under subparagraph (A)to

23 the region, if the Commission determines that the

24 county or portion—
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1 ‘‘(i) is predominantly rural in nature;

2 and

3 ‘‘(ii) exhibits significant economic dis4 tress in terms of population loss, poverty,

5 income levels, unemployment, or other eco6 nomic indicator that the Commission con7 siders appropriate.

8 ‘‘(2) PRIORITY.—In carrying out paragraph

9 (1)(A), the Commission shall first examine the fol10 lowing counties:

11 ‘‘(A) In Maine, the counties of Hancock and

12 Knox.

13 ‘‘(B) In New Hampshire, the counties of

14 Grafton, Carroll, and Sullivan.

15 ‘‘(C) In New York, the counties of Fulton,

16 Madison, Warren, Saratoga, and Washington.

17 ‘‘(D) In Vermont, the county of Lamoille.

18 ‘‘(e) ADDITION OF COUNTIES AND OTHER AREAS.—

19 ‘‘(1) RECOMMENDATIONS.—Following the one20 year period beginning on the date of enactment of this

21 Act, as part of an annual report submitted under sec22 tion 386K, the Commission may recommend to Con23 gress additional counties or portions of counties for

24 inclusion in the region.
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1 ‘‘(2) AREAS OF ECONOMIC DISTRESS.—The Com2 mission may recommend that an entire county be in3 cluded in the region on the basis of one or more dis4 tressed areas within the county.

5 ‘‘(3) ASSESSMENTS OF ECONOMIC CONDITIONS.—

6 The Commission may provide technical and financial

7 assistance to a county that is not included in the re8 gion for the purpose of conducting an economic as9 sessment of the county. The results of such an assess10 ment may be used by the Commission in making rec11 ommendations under paragraph (1).

12 ‘‘(f) LIMITATION.—A county eligible for assistance

13 from the Appalachian Regional Commission under subtitle

14 IV of title 40, United States Code, shall not be eligible for

15 assistance from the Northern Border Economic Develop16 ment Commission.’’.

17 Subtitle B—Rural Electrification

18 Act of 1936

19 SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

20 Sections 2(a) and 4 of the Rural Electrification Act

21 of 1936 (7 U.S.C. 902(a), 904) are amended by inserting

22 ‘‘efficiency and’’ before ‘‘conservation’’ each place it ap23 pears.
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1 SEC. 6102. LOANS AND GRANTS FOR ELECTRIC GENERA2 TION AND TRANSMISSION.

3 (a) IN GENERAL.—Section 4 of the Rural Electrifica4 tion Act of 1936 (7 U.S.C. 904) is amended in the first

5 sentence by striking ‘‘authorized and empowered, from the

6 sums hereinbefore authorized, to’’ and inserting ‘‘shall’’.

7 (b) RURAL COMMUNITIES WITH EXTREMELY HIGH

8 ENERGY COSTS.—Section 19(a) of the Rural Electrification

9 Act of 1936 (7 U.S.C. 918a(a)) is amended in the matter

10 preceding paragraph (1) by striking ‘‘may’’ and inserting

11 ‘‘shall’’.

12 SEC. 6103. FEES FOR ELECTRIFICATION BASELOAD GEN13 ERATION LOAN GUARANTEES.

14 The Rural Electrification Act of 1936 is amended by

15 inserting after section 4 (7 U.S.C. 904) the following:

16 ‘‘SEC. 5. FEES FOR ELECTRIFICATION BASELOAD GENERA17 TION LOAN GUARANTEES.

18 ‘‘(a) IN GENERAL.—For electrification baseload gen19 eration loan guarantees, the Secretary shall, at the request

20 of the borrower, charge an upfront fee to cover the costs of

21 the loan guarantee.

22 ‘‘(b) FEE.—

23 ‘‘(1) IN GENERAL.—The fee described in sub24 section (a) for a loan guarantee shall be at least equal

25 to the costs of the loan guarantee (within the meaning
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1 of section 502(5)(C) of the Federal Credit Reform Act

2 of 1990 (2 U.S.C. 661a(5)(C)).

3 ‘‘(2) SEPARATE FEE.—The Secretary may estab4 lish a separate fee for each loan.

5 ‘‘(c) ELIGIBILITY.—To be eligible for an electrification

6 baseload generation loan guarantee under this section, a

7 borrower shall—

8 ‘‘(1) provide a rating of the loan, exclusive of the

9 Federal guarantee, by an organization identified by

10 the Securities and Exchange Commission as a nation11 ally recognized statistical rating organization that de12 termines that the loan has at least a AA rating, or

13 equivalent rating, as determined by the Secretary; or

14 ‘‘(2) obtain insurance or a guarantee for the full

15 and timely repayment of principal and interest on

16 the loan from an entity that has at least an AA or

17 equivalent rating by a nationally recognized statis18 tical rating organization.

19 ‘‘(d) LIMITATION.—Funds received from a borrower to

20 pay for the fees described in this section shall not be derived

21 from a loan or other debt obligation that is made or guaran22 teed by the Federal Government.’’.
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1 SEC. 6104. DEFERMENT OF PAYMENTS TO ALLOWS LOANS

2 FOR IMPROVED ENERGY EFFICIENCY AND DE3 MAND REDUCTION.

4 Section 12 of the Rural Electrification Act of 1936 (7

5 U.S.C. 912) is amended by adding at the end the following:

6 ‘‘(c) DEFERMENT OF PAYMENTS TO ALLOW LOANS

7 FOR IMPROVED ENERGY EFFICIENCY AND DEMAND REDUC8 TION.—

9 ‘‘(1) IN GENERAL.—The Secretary shall allow

10 borrowers to defer payment of principal and interest

11 on any direct loan made under this Act to enable the

12 borrower to make loans to residential, commercial,

13 and industrial consumers to install energy efficient

14 measures or devices that reduce the demand on elec15 tric systems.

16 ‘‘(2) AMOUNT.—The total amount of a deferment

17 under this subsection shall not exceed the sum of the

18 principal and interest on the loans made to a cus19 tomer of the borrower, as determined by the Secretary.

20 ‘‘(3) TERM.—The term of a deferment under this

21 subsection shall not exceed 60 months.’’.

22 SEC. 6105. RURAL ELECTRIFICATION ASSISTANCE.

23 Section 13 of the Rural Electrification Act of 1936 (7

24 U.S.C. 913) is amended to read as follows:

25 ‘‘SEC. 13. DEFINITIONS.

26 ‘‘In this Act:
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1 ‘‘(1) FARM.—The term ‘farm’ means a farm, as

2 defined by the Bureau of the Census.

3 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has

4 the meaning given the term in section 4 of the Indian

5 Self-Determination and Education Assistance Act (25

6 U.S.C. 450b).

7 ‘‘(3) RURAL AREA.—

8 ‘‘(A) IN GENERAL.—Except as provided oth9 erwise in this Act, the term ‘rural area’ means

10 the farm and nonfarm population of—

11 ‘‘(i) any area described in section

12 343(a)(13)(A) of the Consolidated Farm

13 and Rural Development Act (7 U.S.C.

14 1991(a)(13)(A)); and

15 ‘‘(ii) any area within a service area of

16 a borrower for which a borrower has an

17 outstanding loan made under titles I

18 through V as of the date of enactment of this

19 paragraph.

20 ‘‘(B) RURAL BROADBAND ACCESS.—For the

21 purpose of loans and loan guarantees made

22 under section 601, the term ‘rural area’ has the

23 meaning given the term in section 343(a)(13)(C)

24 of the Consolidated Farm and Rural Develop25 ment Act (7 U.S.C. 1991(a)(13)(C)).
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1 ‘‘(4) TERRITORY.—The term ‘territory’ includes

2 any insular possession of the United States.

3 ‘‘(5) SECRETARY.—The term ‘Secretary’ means

4 the Secretary of Agriculture.’’.

5 SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED

6 FOR ELECTRIFICATION OR TELEPHONE PUR7 POSES.

8 Section 313A of the Rural Electrification Act of 1936

9 (7 U.S.C. 940c–1) is amended—

10 (1) in subsection (b)—

11 (A) in paragraph (1), by striking ‘‘for elec12 trification’’ and all that follows through the end

13 and inserting ‘‘for eligible electrification or tele14 phone purposes consistent with this Act.’’; and

15 (B) by striking paragraph (4) and inserting

16 the following:

17 ‘‘(4) ANNUAL AMOUNT.—The total amount of

18 guarantees provided by the Secretary under this sec19 tion during a fiscal year shall not exceed

20 $1,000,000,000, subject to the availability of funds

21 under subsection (e).’’;

22 (2) in subsection (c), by striking paragraphs (2)

23 and (3) and inserting the following:

24 ‘‘(2) AMOUNT.—
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1 ‘‘(A) IN GENERAL.—The amount of the an2 nual fee paid for the guarantee of a bond or note

3 under this section shall be equal to 30 basis

4 points of the amount of the unpaid principal of

5 the bond or note guaranteed under this section.

6 ‘‘(B) PROHIBITION.—Except as otherwise

7 provided in this subsection and subsection (e)(2),

8 no other fees shall be assessed.

9 ‘‘(3) PAYMENT.—

10 ‘‘(A) IN GENERAL.—A lender shall pay the

11 fees required under this subsection on a semi12 annual basis.

13 ‘‘(B) STRUCTURED SCHEDULE.—The Sec14 retary shall, with the consent of the lender, struc15 ture the schedule for payment of the fee to ensure

16 that sufficient funds are available to pay the

17 subsidy costs for note or bond guarantees as pro18 vided for in subsection (e)(2).’’; and

19 (3) in subsection (f), by striking ‘‘2007’’ and in20 serting ‘‘2012’’.

21 SEC. 6107. EXPANSION OF 911 ACCESS.

22 Section 315 of the Rural Electrification Act of 1936

23 (7 U.S.C. 940e) is amended to read as follows:
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1 ‘‘SEC. 315. EXPANSION OF 911 ACCESS.

2 ‘‘(a) IN GENERAL.—Subject to such terms and condi3 tions as the Secretary may prescribe, the Secretary may

4 make loans under this title to entities eligible to borrow

5 from the Rural Utilities Service, emergency communica6 tions equipment providers, State or local governments, In7 dian tribes (as defined in section 4 of the Indian Self-Deter8 mination and Education Assistance Act (25 U.S.C. 450b)),

9 or other public entities for facilities and equipment to ex10 pand or improve—

11 ‘‘(1) 911 access;

12 ‘‘(2) integrated interoperable emergency commu13 nications, including multiuse networks that—

14 ‘‘(A) serve rural areas; and

15 ‘‘(B) provide commercial services or trans16 portation information services in addition to

17 emergency communications services;

18 ‘‘(3) homeland security communications;

19 ‘‘(4) transportation safety communications; or

20 ‘‘(5) location technologies used outside an urban21 ized area.

22 ‘‘(b) LOAN SECURITY.—Government-imposed fees re23 lated to emergency communications (including State or

24 local 911 fees) may be considered to be security for a loan

25 under this section.

26 ‘‘(c) REGULATIONS.—The Secretary shall—
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1 ‘‘(1) not later than 90 days after the date of en2 actment of this subsection, promulgate proposed regu3 lations to carry out this section; and

4 ‘‘(2) not later than 90 days after the publication

5 of proposed rules to carry out this section, adopt final

6 rules.

7 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—The Sec8 retary shall use to make loans under this section any funds

9 otherwise made available for telephone or broadband loans

10 for each of fiscal years 2007 through 2012.’’.

11 SEC. 6108. ELECTRIC LOANS TO RURAL ELECTRIC CO12 OPERATIVES.

13 Title III of the Rural Electrification Act of 1936 is

14 amended by inserting after section 316 (7 U.S.C. 940f) the

15 following:

16 ‘‘SEC. 317. ELECTRIC LOANS TO RURAL ELECTRIC CO17 OPERATIVES.

18 ‘‘(a) DEFINITION OF RENEWABLE ENERGY SOURCE.—

19 In this section, the term ‘renewable energy source’ has the

20 meaning given the term ‘qualified energy resources’ in sec21 tion 45(c)(1) of the Internal Revenue Code of 1986.

22 ‘‘(b) LOANS.—In addition to any other funds or au23 thorities otherwise made available under this Act, the Sec24 retary may make electric loans under this title for—
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1 ‘‘(1) electric generation from renewable energy

2 resources for resale to rural and nonrural residents;

3 and

4 ‘‘(2) transmission lines principally for the pur5 pose of wheeling power from 1 or more renewable en6 ergy sources.

7 ‘‘(c) RATE.—The rate of a loan under this section shall

8 be equal to the average tax-exempt municipal bond rate of

9 similar maturities.’’.

10 SEC. 6109. AGENCY PROCEDURES.

11 Title III of the Rural Electrification Act of 1936 is

12 amended by inserting after section 317 (as added by section

13 6108) the following:

14 ‘‘SEC. 318. AGENCY PROCEDURES.

15 ‘‘(a) CUSTOMER SERVICE.—The Secretary shall ensure

16 that loan applicants under this Act are contacted at least

17 once each month by the Rural Utilities Service regarding

18 the status of any pending loan applications.

19 ‘‘(b) FINANCIAL NEED.—The Secretary shall ensure

20 that—

21 ‘‘(1) an applicant for any grant program ad22 ministered by the Rural Utilities Service has an op23 portunity to present special economic circumstances

24 in support of the grant, such as the high cost of liv-
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1 ing, out migration, low levels of employment, weather

2 damage, or environmental loss; and

3 ‘‘(2) the special economic circumstances pre4 sented by the applicant are considered in determining

5 the financial need of the applicant.

6 ‘‘(c) MOBILE DIGITAL WIRELESS.—To facilitate the

7 transition from analog wireless service to digital mobile

8 wireless service, the Secretary may adjust population limi9 tations under this Act related to digital mobile wireless

10 service up to the level permitted under section 601.

11 ‘‘(d) BONDING REQUIREMENTS.—The Secretary shall

12 review the bonding requirements for all programs adminis13 tered by the Rural Utilities Service under this Act to ensure

14 that bonds are not required if—

15 ‘‘(1) the interests of the Secretary are adequately

16 protected by product warranties; or

17 ‘‘(2) the costs or conditions associated with a

18 bond exceed the benefit of the bond to the Secretary.’’.

19 SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS

20 SERVICES IN RURAL AREAS.

21 (a) IN GENERAL.—Section 601 of the Rural Elec22 trification Act of 1936 (7 U.S.C. 950bb) is amended to read

23 as follows:
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1 ‘‘SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS

2 SERVICES IN RURAL AREAS.

3 ‘‘(a) PURPOSE.—The purpose of this section is to pro4 vide loans and loan guarantees to provide funds for the costs

5 of the construction, improvement, and acquisition of facili6 ties and equipment for broadband service in rural areas.

7 ‘‘(b) DEFINITION OF BROADBAND SERVICE.—In this

8 section:

9 ‘‘(1) IN GENERAL.—The term ‘broadband service’

10 means any technology identified by the Secretary as

11 having the capacity to transmit data to enable a sub12 scriber to the service to originate and receive high13 quality voice, data, graphics, and video.

14 ‘‘(2) MOBILEBROADBAND.—The term

15 ‘broadband service’ includes any service described in

16 paragraph (1) that is provided over a licensed spec17 trum through the use of a mobile station or receiver

18 communicating with a land station or other mobile

19 stations communicating among themselves.

20 ‘‘(c) LOANS AND LOAN GUARANTEES.—

21 ‘‘(1) IN GENERAL.—The Secretary shall make or

22 guarantee loans to eligible entities described in sub23 section (d) to provide funds for the construction, im24 provement, or acquisition of facilities and equipment

25 for the provision of broadband service in rural areas.
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1 ‘‘(2) PRIORITY.—In making or guaranteeing

2 loans under paragraph (1), the Secretary shall give

3 the highest priority to applicants that offer to provide

4 broadband service to the greatest proportion of house5 holds that, prior to the provision of the service, had

6 no terrestrial broadband service provider.

7 ‘‘(3) OFFER OF SERVICE.—For purposes of this

8 section, a provider shall be considered to offer

9 broadband service in a rural area if the provider

10 makes the broadband service available to households

11 in the rural area at not more than average prices as

12 compared to the prices at which similar services are

13 made available in the nearest urban area, as deter14 mined by the Secretary.

15 ‘‘(d) ELIGIBLE ENTITIES.—

16 ‘‘(1) REQUIREMENTS.—

17 ‘‘(A) IN GENERAL.—To be eligible to obtain

18 a loan or loan guarantee under this section, an

19 entity shall—

20 ‘‘(i) have the ability to furnish, im21 prove, or extend a broadband service to a

22 rural area;

23 ‘‘(ii) submit to the Secretary a pro24 posal that meets the requirements of this

25 section for a project to offer to provide serv-
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1 ice to at least 25 percent of households in a

2 specified rural area that, as of the date on

3 which the proposal is submitted, are not of4 fered broadband service by a terrestrial

5 broadband service provider; and

6 ‘‘(iii) agree to complete buildout of the

7 broadband service described in the proposal

8 not later than 3 years after the date on

9 which a loan or loan guarantee under this

10 section is received.

11 ‘‘(B) PROHIBITION.—In carrying out this

12 section, the Secretary may not make a loan or

13 loan guarantee for a project in any specific area

14 in which broadband service is offered by 3 or

15 more terrestrial service providers that offer serv16 ices that are comparable to the services proposed

17 by the applicant.

18 ‘‘(C) EQUITY AND MARKET SURVEY RE19 QUIREMENTS.—

20 ‘‘(i) IN GENERAL.—The Secretary may

21 require an entity to provide a cost share in

22 an amount not to exceed 10 percent of the

23 amount of the loan or loan guarantee re24 quested in the application of the entity.
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1 ‘‘(ii) CREDIT.—Recurring revenues of

2 an entity, including broadband service cli3 ent revenues, may be credited toward the

4 cost share required under clause (i).

5 ‘‘(iii) MARKET SURVEY.—

6 ‘‘(I) IN GENERAL.—The Secretary

7 may require an entity that proposes to

8 have a subscriber projection of more

9 than 20 percent of the broadband serv10 ice market in a rural area to submit to

11 the Secretary a market survey.

12 ‘‘(II) LESS THAN 20 PERCENT.—

13 The Secretary may not require an en14 tity that proposes to have a subscriber

15 projection of less than 20 percent of the

16 broadband service market in a rural

17 area to submit to the Secretary a mar18 ket survey.

19 ‘‘(2) STATE AND LOCAL GOVERNMENTS AND IN20 DIAN TRIBES.—Subject to paragraph (1), a State or

21 local government (including any agency, subdivision,

22 or instrumentality thereof (including consortia there23 of)) and an Indian tribe shall be eligible for a loan

24 or loan guarantee under this section to provide

25 broadband services to a rural area.
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1 ‘‘(3) ADEQUACY OF SECURITY.—The Secretary

2 shall ensure that the type, amount, and method of se3 curity used to secure any loan or loan guarantee pro4 vided under this section is commensurate to the risk

5 involved with the loan or loan guarantee, particularly

6 if the loan or loan guarantee is issued to a finan7 cially-healthy, strong, and stable entity.

8 ‘‘(4) LIMITATION.—No entity (including subsidi9 aries of an entity) may acquire more than 20 percent

10 of the resources of the program under this section in

11 any fiscal year, as determined by the Secretary.

12 ‘‘(5) NOTICE REQUIREMENT.—The Secretary

13 shall include a notice of applications under this sec14 tion on the website of the Secretary for a period of

15 not less than 90 days.

16 ‘‘(6) PROPOSAL INFORMATION.—

17 ‘‘(A) PUBLIC ACCESS.—The Secretary shall

18 make available on the website of the Secretary

19 during the consideration of a loan by the

20 Secretary—

21 ‘‘(i) the name of the applicant;

22 ‘‘(ii) a description and geographical

23 representation of the proposed area of

24 broadband service;
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1 ‘‘(iii) a geographical representation

2 and numerical estimate of the households

3 that have no terrestrial broadband service

4 offered in the proposed service area of the

5 project; and

6 ‘‘(iv) such other relevant information

7 that the Secretary determines to be appro8 priate.

9 ‘‘(B) PROPRIETARY INFORMATION.—In

10 making information available relating to a loan

11 proposal as described in subparagraph (A), the

12 Secretary shall not make available information

13 that is proprietary (within the meaning of sec14 tion 552(b)(4) of title 5, United States Code) to

15 the business interests of the loan applicant.

16 ‘‘(7) TIMELINE.—The Secretary shall establish a

17 timeline on the website for the Secretary for tracking

18 applications received under this section.

19 ‘‘(8) ADDITIONAL INFORMATION AND DETERMINA20 TION.—

21 ‘‘(A) PROMPT PROCESSING OF APPLICA22 TIONS.—

23 ‘‘(i) IN GENERAL.—The Secretary shall

24 establish, by regulation, procedures to en-
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1 sure prompt processing of loan and loan

2 guarantee applications under this section.

3 ‘‘(ii) TIMELIMITS.—Subject to clause

4 (iii), the regulations shall establish general

5 time limits for action by the Secretary and

6 applicant response.

7 ‘‘(iii) EXTENSIONS.—The Secretary

8 may grant an extension for a time limit es9 tablished under clause (ii).

10 ‘‘(iv) ANNUAL REPORTS.—The Sec11 retary shall publish an annual report

12 that—

13 ‘‘(I) describes processing times for

14 loan and loan guarantee applications

15 under this section; and

16 ‘‘(II) provides an explanation for

17 any processing time extensions re18 quired by the Secretary.

19 ‘‘(B) ADDITIONAL INFORMATION.—Not later

20 than 60 days after the date on which an appli21 cant submits an application, the Secretary shall

22 request any additional information required for

23 the application to be complete.

24 ‘‘(C) DETERMINATION.—Not later than 180

25 days after the date on which an applicant sub-
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1 mits a completed application, the Secretary shall

2 make a determination of whether to approve the

3 application.

4 ‘‘(9) LOAN CLOSING.—Not later than 45 days

5 after the date on which the Secretary approves an ap6 plication, documents necessary for the closing of the

7 loan or loan guarantee shall be provided to applicant.

8 ‘‘(10) FUND DISBURSEMENT.—Not later than 10

9 business days after the date of the receipt of valid doc10 umentation requesting disbursement of the approved,

11 closed loan, the disbursement of loan funds shall

12 occur.

13 ‘‘(11) PREAPPLICATION PROCESS.—The Sec14 retary shall establish an optional preapplication

15 process under which an applicant may apply to the

16 Rural Utilities Service for a binding determination of

17 area eligibility prior to preparing a full loan appli18 cation.

19 ‘‘(12) PENDING APPLICATIONS.—An application

20 for a loan or loan guarantee under this section, or a

21 petition for reconsideration of a decision on such an

22 application, that is pending on the date of enactment

23 of this paragraph shall be considered under eligibility

24 and feasibility criteria that are no less favorable to
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1 the applicant than the criteria in effect on the origi2 nal date of submission of the application.

3 ‘‘(e) BROADBAND SERVICE.—

4 ‘‘(1) IN GENERAL.—The Secretary shall, from

5 time to time as advances in technology warrant, re6 view and recommend modifications of rate-of-data

7 transmission criteria for purposes of the identifica8 tion of broadband service technologies under sub9 section (b).

10 ‘‘(2) PROHIBITION.—The Secretary shall not es11 tablish requirements for bandwidth or speed that have

12 the effect of precluding the use of evolving technologies

13 appropriate for rural areas outside rural commu14 nities.

15 ‘‘(f) TECHNOLOGICAL NEUTRALITY.—For purposes of

16 determining whether to make a loan or loan guarantee for

17 a project under this section, the Secretary shall use criteria

18 that are technologically neutral.

19 ‘‘(g) TERMS AND CONDITIONS FOR LOANS AND LOAN

20 GUARANTEES.—

21 ‘‘(1) IN GENERAL.—Notwithstanding any other

22 provision of law, a loan or loan guarantee under sub23 section (c) shall—

24 ‘‘(A) bear interest at an annual rate of, as

25 determined by the Secretary—
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1 ‘‘(i) in the case of a direct loan, the

2 lower of—

3 ‘‘(I) the cost of borrowing to the

4 Department of the Treasury for obliga5 tions of comparable maturity; or

6 ‘‘(II) 4 percent; and

7 ‘‘(ii) in the case of a guaranteed loan,

8 the current applicable market rate for a

9 loan of comparable maturity; and

10 ‘‘(B) except as provided in paragraph (2),

11 have a term not to exceed the useful life of the

12 assets constructed, improved, or acquired with

13 the proceeds of the loan or extension of credit.

14 ‘‘(2) TERM OF LOAN EXCEPTION.—A loan or

15 loan guarantee under subsection (c) may have a term

16 not to exceed 30 years if the Secretary determines that

17 the loan security is sufficient.

18 ‘‘(3) RECURRING REVENUE.—The Secretary shall

19 consider the recurring revenues of the entity at the

20 time of application in determining an adequate level

21 of credit support.

22 ‘‘(h) USEOF LOAN PROCEEDS TO REFINANCE LOANS

23 FOR DEPLOYMENT OF BROADBAND SERVICE.—Notwith24 standing any other provision of this Act, the proceeds of

25 any loan made or guaranteed by the Secretary under this
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1 Act may be used by the recipient of the loan for the purpose

2 of refinancing an outstanding obligation of the recipient on

3 another telecommunications-related loan made under this

4 Act if the use of the proceeds for that purpose will further

5 the construction, improvement, or acquisition of facilities

6 and equipment for the provision of broadband service in

7 rural areas.

8 ‘‘(i) REPORTS.—Not later than 1 year after the date

9 of enactment of the Food and Energy Security Act of 2007,

10 and biennially thereafter, the Administrator shall submit

11 to Congress a report that—

12 ‘‘(1) describes the ways in which the Adminis13 trator determines under subsection (b)(1) that a serv14 ice enables a subscriber to originate and receive high15 quality voice, data, graphics, and video; and

16 ‘‘(2) provides a detailed list of services that have

17 been granted assistance under this section.

18 ‘‘(j) FUNDING.—

19 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—

20 There is authorized to be appropriated to the Sec21 retary to carry out this section $25,000,000 for each

22 of fiscal years 2008 through 2012.

23 ‘‘(2) ALLOCATION OF FUNDS.—
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1 ‘‘(A) IN GENERAL.—From amounts made

2 available for each fiscal year under this sub3 section, the Secretary shall—

4 ‘‘(i) establish a national reserve for

5 loans and loan guarantees to eligible enti6 ties in States under this section; and

7 ‘‘(ii) allocate amounts in the reserve to

8 each State for each fiscal year for loans and

9 loan guarantees to eligible entities in the

10 State.

11 ‘‘(B) AMOUNT.—Based on information

12 available from the most recent decennial census,

13 the amount of an allocation made to a State for

14 a fiscal year under subparagraph (A) shall bear

15 the same ratio to the amount of allocations made

16 for all States for the fiscal year as—

17 ‘‘(i) the number of communities with a

18 population of 2,500 inhabitants or less in

19 the State; bears to

20 ‘‘(ii) the number of communities with

21 a population of 2,500 inhabitants or less in

22 all States.

23 ‘‘(C) UNOBLIGATED AMOUNTS.—Any

24 amounts in the reserve established for a State for

25 a fiscal year under subparagraph (B) that are
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1 not obligated by April 1 of the fiscal year shall

2 be available to the Secretary to make loans and

3 loan guarantees under this section to eligible en4 tities in any State, as determined by the Sec5 retary.

6 ‘‘(k) TERMINATION OF AUTHORITY.—No loan or loan

7 guarantee may be made under this section after September

8 30, 2012.’’.

9 (b) NATIONAL CENTER FOR RURAL TELECOMMUNI10 CATIONS ASSESSMENT.—Title VI of Rural Electrification

11 Act of 1936 (7 U.S.C. 950bb et seq.) is amended by adding

12 at the end the following:

13 ‘‘SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNI14 CATIONS ASSESSMENT.

15 ‘‘(a) ESTABLISHMENT OF CENTER.—The Secretary

16 shall designate a National Center for Rural Telecommuni17 cations Assessment (referred to in this section as the ‘Cen18 ter’).

19 ‘‘(b) CRITERIA.—In designating the Center, the Sec20 retary shall ensure that—

21 ‘‘(1) the Center is an entity with a focus on

22 rural policy research and a minimum of 5 years ex23 perience in rural telecommunications research and as24 sessment;
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1 ‘‘(2) the Center is capable of assessing broadband

2 services in rural areas; and

3 ‘‘(3) the Center has significant experience with

4 other rural economic development centers and organi5 zations in the assessment of rural policies and formu6 lation of policy solutions at the local, State, and Fed7 eral levels.

8 ‘‘(c) DUTIES.—The Center shall—

9 ‘‘(1) assess the effectiveness of programs under

10 this section in increasing broadband availability and

11 use in rural areas, especially in those rural commu12 nities identified by the Secretary as having no service

13 before award of a broadband loan or loan guarantee

14 under section 601(c);

15 ‘‘(2) develop assessments of broadband avail16 ability in rural areas, working with existing rural de17 velopment centers selected by the Center;

18 ‘‘(3) identify policies and initiatives at the local,

19 State, and Federal level that have increased

20 broadband availability and use in rural areas;

21 ‘‘(4) conduct national studies of rural households

22 and businesses focusing on the adoption of, barriers

23 to, and use of broadband services, with specific atten24 tion addressing the economic, social and educational
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1 consequences of inaccessibility to affordable broadband

2 services;

3 ‘‘(5) provide reports to the public on the activi4 ties carried out and funded under this section; and

5 ‘‘(6) conduct studies and provide recommenda6 tions to local, State, and Federal policymakers on ef7 fective strategies to bring affordable broadband serv8 ices to rural citizens residing outside of the municipal

9 boundaries of rural cities and towns.

10 ‘‘(d) REPORTING REQUIREMENTS.—Not later than De11 cember 1, 2008, and each year thereafter through December

12 1, 2012, the Center shall submit to the Secretary a report

13 that—

14 ‘‘(1) describes the activities of the Center, the re15 sults of research carried out by the Center, and any

16 additional information for the preceding fiscal year

17 that the Secretary may request; and

18 ‘‘(2) includes—

19 ‘‘(A) assessments of the programs carried

20 out under this section and section 601;

21 ‘‘(B) annual assessments on the effects of the

22 policy initiatives identified under subsection

23 (c)(3); and
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1 ‘‘(C) results from the national studies of

2 rural households and businesses conducted under

3 subsection (c)(4).

4 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is

5 authorized to be appropriated to the Secretary to carry out

6 this section $1,000,000 for each of fiscal years 2008 through

7 2012.’’.

8 (c) REGULATIONS.—The Secretary may promulgate

9 such regulations as are necessary to implement the amend10 ments made by this section.

11 SEC. 6111. COMPREHENSIVE RURAL BROADBAND.

12 (a) COMPREHENSIVE RURAL BROADBAND STRAT13 EGY.—

14 (1) IN GENERAL.—Not later than 1 year after

15 the date of enactment of this Act, and annually there16 after, the Chairman of the Federal Communications

17 Commission, in coordination with the Secretary, shall

18 submit to the Committees on Energy and Commerce

19 and Agriculture of the House of Representatives and

20 the Committees on Commerce, Science, and Transpor21 tation and Agriculture, Nutrition, and Forestry of the

22 Senate a report describing a comprehensive rural

23 broadband strategy that includes—

24 (A) recommendations—
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1 (i) to promote interagency coordina2 tion of Federal agencies in regards to poli3 cies, procedures, and targeted resources, and

4 to improve and streamline the polices, pro5 grams, and services;

6 (ii) to coordinate among Federal agen7 cies regarding existing rural broadband or

8 rural initiatives that could be of value to

9 rural broadband development;

10 (iii) to address both short- and long11 term solutions and needs assessments for a

12 rapid build-out of rural broadband solu13 tions and applications for Federal, State,

14 regional, and local government policy mak15 ers; and

16 (iv) to identify how specific Federal

17 agency programs and resources can best re18 spond to rural broadband requirements and

19 overcome obstacles that currently impede

20 rural broadband deployment; and

21 (B) a description of goals and timeframes to

22 achieve the strategic plans and visions identified

23 in the report.

24 (2) UPDATES.—The Chairman of the Federal

25 Communications Commission, in coordination with
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1 the Secretary shall update and evaluate the report de2 scribed in paragraph (1) on an annual basis.

3 (b) RURAL BROADBAND.—Section 306(a)(20)(E) of the

4 Consolidated Rural Development Act (7 U.S.C.

5 1926(a)(20)(E)) is amended by striking ‘‘dial-up Internet

6 access or’’.

7 SEC. 6112. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

8 The Rural Electrification Act of 1936 is amended by

9 inserting after section 306E (7 U.S.C. 936e) the following:

10 ‘‘SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

11 ‘‘(a) DEFINITIONS.—In this section:

12 ‘‘(1) SUBSTANTIALLY UNDERSERVED TRUST

13 AREA.—The term ‘substantially underserved trust

14 area’ means a community in ‘trust land’ (as defined

15 in section 3765 of title 38, United States Code) in

16 which more than 20 percent of the beneficiaries do not

17 have modern, affordable, or reliable utility services, as

18 determined by the Secretary.

19 ‘‘(2) UTILITY SERVICE.—The term ‘utility serv20 ice’ means electric, telecommunications, broadband, or

21 water service.

22 ‘‘(b) INITIATIVE.—The Secretary, in consultation with

23 local governments and Federal agencies, may implement an

24 initiative to identify and improve the availability and
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1 quality of utility services in communities in substantially

2 underserved trust areas.

3 ‘‘(c) AUTHORITY OF SECRETARY.—In carrying out

4 subsection (b), the Secretary—

5 ‘‘(1) may make available from loan or loan

6 guarantee programs administered by the Rural Utili7 ties Service to qualified utilities or applicants financ8 ing with an interest rate as low as 2 percent, and ex9 tended repayment terms, for use in facilitating im10 proved utility service in substantially underserved

11 trust areas;

12 ‘‘(2) may waive nonduplication restrictions,

13 matching fund requirements, credit support require14 ments, or other regulations from any loan or grant

15 program administered by the Rural Utilities Service

16 to facilitate the construction, acquisition, or improve17 ment of infrastructure used to deliver affordable util18 ity services to substantially underserved trust areas;

19 ‘‘(3) may assign the highest funding priority to

20 projects in substantially underserved trust areas;

21 ‘‘(4) shall make any loan or loan guarantee

22 found to be financially feasible to provide service to

23 substantially underserved trust areas; and

24 ‘‘(5) may conduct research and participate in

25 regulatory proceedings to recommend policy changes
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1 to enhance utility service in substantially underserved

2 trust areas.

3 ‘‘(d) REPORT.—Not later than 1 year after the date

4 of enactment of this section and annually thereafter, the

5 Secretary shall submit to Congress a report that describes—

6 ‘‘(1) the progress of the initiative implemented

7 under subsection (b); and

8 ‘‘(2) recommendations for any regulatory or leg9 islative changes that would be appropriate to improve

10 services to substantially underserved trust areas.’’.

11 SEC. 6113. STUDY OF FEDERAL ASSISTANCE FOR

12 BROADBAND INFRASTRUCTURE.

13 (a) IN GENERAL.—The Comptroller General of the

14 United States shall conduct a study of—

15 (1) how the Rural Utilities Service takes into ac16 count economic factors in the decisionmaking process

17 of the Service in allocating Federal broadband bene18 fits;

19 (2) what other considerations the Rural Utilities

20 Service takes into account in making benefit awards;

21 (3) what economic forces prompt Rural Utilities

22 Service broadband loan applicants to seek Federal

23 funding rather than relying on the private market

24 alone;
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1 (4) how awards made by the Rural Utilities

2 Service of Federal benefits impact the expansion of

3 broadband infrastructure by the private sector; and

4 (5) what changes to Federal policy are needed to

5 further encourage technology expansion by private

6 broadband service providers.

7 (b) REPORT.—Not later than 30 months after the date

8 of enactment of this Act, the Comptroller General of the

9 United States shall submit to the Committee on Agriculture

10 of the House of Representatives and the Committee on Agri11 culture, Nutrition, and Forestry of the Senate a report that

12 describes the results of the study conducted under subsection

13 (a), including any findings and recommendations.

14 Subtitle C—Connect the Nation Act

15 SEC. 6201. SHORT TITLE.

16 This subtitle may be cited as the ‘‘Connect the Nation

17 Act’’.

18 SEC. 6202. GRANTS TO ENCOURAGE STATE INITIATIVES TO

19 IMPROVE BROADBAND SERVICE.

20 (a) DEFINITIONS.—In this section:

21 (1) BROADBAND SERVICE.—The term

22 ‘‘broadband service’’ means any service that connects

23 the public to the Internet with a data transmission24 rate equivalent that is at least 200 kilobits per second

25 or 200,000 bits per second, or any successor trans-
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1 mission-rate established by the Federal Communica2 tions Commission for broadband, in at least 1 direc3 tion.

4 (2) ELIGIBLEENTITY.—The term ‘‘eligible enti5 ty’’ means a nonprofit organization that, in conjunc6 tion with State agencies and private sector partners,

7 carries out an initiative under the section to identify

8 and track the availability and adoption of broadband

9 services within States.

10 (3) NONPROFIT ORGANIZATION.—The term ‘‘non11 profit organization’’ means an organization that—

12 (A) is described in section 501(c)(3) of the

13 Internal Revenue Code of 1986 and exempt from

14 tax under section 501(a) of that Code;

15 (B) has net earnings that do not inure to

16 the benefit of any member, founder, contributor,

17 or individual associated with the organization;

18 (C) has an established record of competence

19 and working with public and private sectors to

20 accomplish widescale deployment and adoption

21 of broadband services and information tech22 nology; and

23 (D) has a board of directors that does not

24 have a majority of individuals who are employed
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1 by, or otherwise associated with, any Federal,

2 State, or local government or agency.

3 (4) SECRETARY.—The term ‘‘Secretary’’ means

4 the Secretary of Commerce.

5 (b) PROGRAM.—The Secretary shall award grants to

6 eligible entities to pay the Federal share of the cost of the

7 development and implementation of statewide initiatives to

8 identify and track the availability and adoption of

9 broadband services within States.

10 (c) PURPOSES.—The purpose of a grant made this sec11 tion shall be—

12 (1) to ensure, to the maximum extent prac13 ticable, that all citizens and businesses in States have

14 access to affordable and reliable broadband service;

15 (2) to promote improved technology literacy, in16 creased computer ownership, and home broadband use

17 among those citizens and businesses;

18 (3) to establish and empower local grassroots

19 technology teams in States to plan for improved tech20 nology use across multiple community sectors; and

21 (4) to establish and sustain an environment that

22 supports broadband services and information tech23 nology investment.

24 (d) ELIGIBILITY.—To be eligible to receive a grant for

25 an initiative under this section, an eligible entity shall—
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1 (1) submit an application to the Secretary at

2 such time, in such manner, and containing such in3 formation as the Secretary may require; and

4 (2) provide matching non-Federal funds in an

5 amount that is equal to not less than 20 percent of

6 the total cost of the initiative.

7 (e) COMPETITIVE BASIS.—Grants under this section

8 shall be awarded on a competitive basis.

9 (f) PEER REVIEW.—

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

11 technical and scientific peer review of applications for

12 grants under this section.

13 (2) REVIEW PROCEDURES.—The Secretary shall

14 require that any technical and scientific peer review

15 group—

16 (A) be provided a written description of the

17 grant to be reviewed;

18 (B) provide the results of any review by the

19 group to the Secretary; and

20 (C) certify that the group will enter into

21 such voluntary nondisclosure agreements as are

22 necessary to prevent the unauthorized disclosure

23 of confidential and propriety information pro24 vided by broadband service providers in connec-
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1 tion with projects funded by a grant under this

2 section.

3 (g) USEOF FUNDS.—A grant awarded to an eligible

4 entity under this section shall be used—

5 (1) to provide a baseline assessment of

6 broadband service deployment in 1 or more partici7 pating States;

8 (2) to identify and track—

9 (A) areas in the participating States that

10 have low levels of broadband service deployment;

11 (B) the rate at which individuals and busi12 nesses adopt broadband service and other related

13 information technology services; and

14 (C) possible suppliers of the services;

15 (3) to identify barriers to the adoption by indi16 viduals and businesses of broadband service and re17 lated information technology services, including

18 whether—

19 (A) the demand for the services is absent;

20 and

21 (B) the supply for the services is capable of

22 meeting the demand for the services;

23 (4) to create and facilitate in each county or des24 ignated region in the participating States a local

25 technology planning team—
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1 (A) with members representing a cross sec2 tion of communities, including representatives of

3 business, telecommunications labor organiza4 tions, K–12 education, health care, libraries,

5 higher education, community-based organiza6 tions, local government, tourism, parks and

7 recreation, and agriculture; and

8 (B) that shall—

9 (i) benchmark technology use across

10 relevant community sectors;

11 (ii) set goals for improved technology

12 use within each sector; and

13 (iii) develop a tactical business plan

14 for achieving the goals of the team, with

15 specific recommendations for online appli16 cation development and demand creation;

17 (5) to work collaboratively with broadband serv18 ice providers and information technology companies

19 to encourage deployment and use, especially in

20 unserved, underserved, and rural areas, through the

21 use of local demand aggregation, mapping analysis,

22 and the creation of market intelligence to improve the

23 business case for providers to deploy;
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1 (6) to establish programs to improve computer

2 ownership and Internet access for unserved, under3 served, and rural populations;

4 (7) to collect and analyze detailed market data

5 concerning the use and demand for broadband service

6 and related information technology services;

7 (8) to facilitate information exchange regarding

8 the use and demand for broadband services between

9 public and private sectors; and

10 (9) to create within the participating States a

11 geographic inventory map of broadband service that

12 shall—

13 (A) identify gaps in the service through a

14 method of geographic information system map15 ping of service availability at the census block

16 level; and

17 (B) provide a baseline assessment of state18 wide broadband deployment in terms of house19 holds with high-speed availability.

20 (h) PARTICIPATION LIMITATION.—For each partici21 pating State, an eligible entity may not receive a new grant

22 under this section to carry out the activities described in

23 subsection (g) within the participating State if the eligible

24 entity obtained prior grant awards under this section to
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1 carry out the same activities in the participating State for

2 each of the previous 4 fiscal years.

3 (i) REPORT.—Each recipient of a grant under this sec4 tion shall submit to the Secretary a report describing the

5 use of the funds provided by the grant.

6 (j) NO REGULATORY AUTHORITY.—Nothing in this

7 section provides any public or private entity with any regu8 latory jurisdiction or oversight authority over providers of

9 broadband services or information technology.

10 (k) AUTHORIZATION OF APPROPRIATIONS.—There is

11 authorized to be appropriated to carry out this section

12 $40,000,000 for each of fiscal years 2008 through 2012.

13 Subtitle D—Food, Agriculture, Con14 servation, and Trade Act of 1990

15 SEC. 6301. RURAL ELECTRONIC COMMERCE EXTENSION

16 PROGRAM.

17 Section 1670(e) of the Food, Agriculture, Conservation,

18 and Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by

19 striking ‘‘2007’’ and inserting ‘‘2012’’.

20 SEC. 6302. TELEMEDICINE, LIBRARY CONNECTIVITY, PUB21 LIC TELEVISION, AND DISTANCE LEARNING

22 SERVICES IN RURAL AREAS.

23 (a) IN GENERAL.—Chapter 1 of subtitle D of title

24 XXII of the Food, Agriculture, Conservation, and Trade Act

25 of 1990 (7 U.S.C. 950aaa et seq.) is amended in the chapter
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1 heading by striking ‘‘AND DISTANCE LEARNING’’

2 and inserting ‘‘, LIBRARY CONNECTIVITY, PUB3 LIC TELEVISION, AND DISTANCE LEARN4 ING’’.

5 (b) PURPOSE.—Section 2331 of the Food, Agriculture,

6 Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa)

7 is amended by striking ‘‘telemedicine services and distance

8 learning’’ and inserting ‘‘telemedicine services, library

9 connectivity, and distance learning’’.

10 (c) DEFINITIONS.—Section 2332 of the Food, Agri11 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

12 950aaa–1) is amended—

13 (1) by redesignating paragraphs (1) through (3)

14 as paragraphs (2) through (4), respectively; and

15 (2) by inserting before paragraph (2) (as so re16 designated) the following:

17 ‘‘(1) CONNECTIVITY.—The term ‘connectivity’

18 means the ability to use a range of high-speed digital

19 services or networks.’’.

20 (d) TELEMEDICINE, LIBRARY CONNECTIVITY, AND DIS21 TANCE LEARNING SERVICES IN RURAL AREAS.—Section

22 2333 of the Food, Agriculture, Conservation, and Trade Act

23 of 1990 (7 U.S.C. 950aaa–2) is amended—

24 (1) in the section heading, by striking ‘‘AND

25 DISTANCE LEARNING’’ and inserting ‘‘, LIBRARY
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1 CONNECTIVITY, PUBLIC TELEVISION, AND DIS2 TANCE LEARNING’’;

3 (2) in subsection (a), by striking ‘‘construction of

4 facilities and systems to provide telemedicine services

5 and distance learning services’’ and inserting ‘‘con6 struction and use of facilities and systems to provide

7 telemedicine services, library connectivity, distance

8 learning services, and public television station digital

9 conversion’’;

10 (3) in subsection (b), by striking paragraph (2)

11 and inserting the following:

12 ‘‘(2) FORM.—The Secretary shall establish by no13 tice the amount of the financial assistance available

14 to applicants in the form of grants, costs of money

15 loans, combinations of grants and loans, or other fi16 nancial assistance so as to—

17 ‘‘(A)(i) further the purposes of this chapter;

18 and

19 ‘‘(ii) in the case of loans, result in the max20 imum feasible repayment to the Federal Govern21 ment of the loan; and

22 ‘‘(B) to ensure that funds made available to

23 carry out this chapter are used to the maximum

24 extent practicable to assist useful and needed

25 projects.’’;
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1 (4) in subsection (c)—

2 (A) in paragraph (1)—

3 (i) in the matter preceding subpara4 graph (A), by striking ‘‘financial assist5 ance’’ and inserting ‘‘assistance in the form

6 of grants’’;

7 (ii) in subparagraph (A), by striking

8 ‘‘and’’ at the end;

9 (iii) in subparagraph (B)—

10 (I) by striking ‘‘service or dis11 tance’’ and inserting ‘‘services, library

12 connectivity services, public television

13 station digital conversion, or distance’’;

14 (II) by striking the period at the

15 end and inserting a semicolon; and

16 (III) by adding at the end the fol17 lowing:

18 ‘‘(C) libraries or library support organiza19 tions;

20 ‘‘(D) public television stations and the par21 ent organizations of public television stations;

22 and

23 ‘‘(E) schools, libraries, and other facilities

24 operated by the Bureau of Indian Affairs or the

25 Indian Health Service.’’;
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1 (B) in paragraph (4), by striking ‘‘services

2 or distance’’ and inserting ‘‘service, library

3 connectivity, public television station digital

4 conversion, or distance’’; and

5 (C) by adding at the end the following:

6 ‘‘(5) PUBLIC TELEVISION GRANTS.—The Sec7 retary shall establish a separate competitive process to

8 determine the allocation of grants under this chapter

9 to public television stations.’’;

10 (5) in subsection (d)—

11 (A) in the matter preceding paragraph (1),

12 by inserting ‘‘1 or more of’’ after ‘‘considering’’;

13 (B) in paragraph (12), by striking ‘‘and’’

14 at the end;

15 (C) by redesignating paragraph (13) as

16 paragraph (14); and

17 (D) by inserting after paragraph (12) the

18 following:

19 ‘‘(13) the cost and availability of high-speed net20 work access; and’’;

21 (6) by striking subsection (f) and inserting the

22 following:

23 ‘‘(f) USEOF FUNDS.—Financial assistance provided

24 under this chapter shall be used for—
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1 ‘‘(1) the development, acquisition, and digital

2 distribution of instructional programming to rural

3 users;

4 ‘‘(2) the development and acquisition, through

5 lease or purchase, of computer hardware and soft6 ware, audio and visual equipment, computer network

7 components, telecommunications terminal equipment,

8 telecommunications transmission facilities, data ter9 minal equipment, or interactive video equipment,

10 teleconferencing equipment, or other facilities that

11 would further telemedicine services, library

12 connectivity, or distance learning services;

13 ‘‘(3) the provision of technical assistance and in14 struction for the development or use of the program15 ming, equipment, or facilities referred to in para16 graphs (1) and (2);

17 ‘‘(4) the acquisition of high-speed network trans18 mission equipment or services that would not other19 wise be available or affordable to the applicant;

20 ‘‘(5) costs relating to the coordination and col21 laboration among and between libraries on

22 connectivity and universal service initiatives, or the

23 development of multi-library connectivity plans that

24 benefit rural users;
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1 ‘‘(6) competitive grants, for public television sta2 tions or a consortium of public television stations, to

3 provide education, outreach, and assistance, in co4 operation with community groups, to rural commu5 nities and vulnerable populations with respect to the

6 digital television transition, and particularly the ac7 quisition, delivery, and installation of the digital-to8 analog converter boxes described in section 3005 of the

9 Digital Television Transition and Public Safety Act

10 of 2005 (47 U.S.C. 309 note); or

11 ‘‘(7) other uses that are consistent with this

12 chapter, as determined by the Secretary.’’; and

13 (7) in subsection (i)—

14 (A) in paragraph (1), by striking ‘‘telemedi15 cine or distance’’ and inserting ‘‘telemedicine, li16 brary connectivity, public television station dig17 ital conversion, or distance’’; and

18 (B) in paragraph (2)—

19 (i) in subparagraph (A), by striking

20 ‘‘telemedicine or distance’’ and inserting

21 ‘‘telemedicine, library connectivity, or dis22 tance’’; and

23 (ii) in subparagraph (B), by inserting

24 ‘‘nonproprietary information contained in’’

25 before ‘‘the applications’’.
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1 (e) ADMINISTRATION.—Section 2334 of the Food, Agri2 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

3 950aaa–3) is amended—

4 (1) in subsection (a), by striking ‘‘services or dis5 tance’’ and inserting ‘‘services, library connectivity,

6 or distance’’; and

7 (2) in subsection (d), by striking ‘‘or distance

8 learning’’ and all that follows through the end of the

9 subsection and inserting ‘‘, library connectivity, or

10 distance learning services through telecommunications

11 in rural areas.’’.

12 (f) AUTHORIZATION OF APPROPRIATIONS.—Section

13 2335A of the Food, Agriculture, Conservation, and Trade

14 Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking

15 ‘‘2007’’ and inserting ‘‘2012’’.

16 (g) CONFORMING AMENDMENT.—Section 1(b) of Public

17 Law 102–551 (7 U.S.C. 950aaa note; Public Law 102–551)

18 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

19 Subtitle E—Miscellaneous

20 SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MAR21 KET DEVELOPMENT GRANTS.

22 (a) DEFINITIONS.—Section 231 of the Agricultural

23 Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public

24 Law 106–224) is amended by striking subsection (a) and

25 inserting the following:
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1 ‘‘(a) DEFINITIONS.—In this section:

2 ‘‘(1) ASSISTING ORGANIZATION.—The term ‘as3 sisting organization’ means a nonprofit organization,

4 institution of higher education, or units of govern5 ment with expertise, as determined by the Secretary,

6 to assist eligible producers and entities described in

7 subsection (b)(1) through—

8 ‘‘(A) the provision of market research,

9 training, or technical assistance; or

10 ‘‘(B) the development of supply networks for

11 value-added products that strengthen the profit12 ability of small and mid-sized family farms.

13 ‘‘(2) TECHNICAL ASSISTANCE.—The term ‘tech14 nical assistance’ means managerial, financial, oper15 ational, and scientific analysis and consultation to

16 assist an individual or entity (including a recipient

17 or potential recipient of a grant under this section)—

18 ‘‘(A) to identify and evaluate practices, ap19 proaches, problems, opportunities, or solutions;

20 and

21 ‘‘(B) to assist in the planning, implementa22 tion, management, operation, marketing, or

23 maintenance of projects authorized under this

24 section.

25 ‘‘(3) VALUE-ADDED AGRICULTURAL PRODUCT.—
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1 ‘‘(A) IN GENERAL.—The term ‘value-added

2 agricultural product’ means any agricultural

3 commodity or product that—

4 ‘‘(i)(I) has undergone a change in

5 physical state;

6 ‘‘(II) was produced in a manner that

7 enhances the value of the agricultural com8 modity or product, as demonstrated through

9 a business plan that shows the enhanced

10 value, as determined by the Secretary; or

11 ‘‘(III) is physically segregated in a

12 manner that results in the enhancement of

13 the value of the agricultural commodity or

14 product; and

15 ‘‘(ii) as a result of the change in phys16 ical state or the manner in which the agri17 cultural commodity or product was pro18 duced, marketed, or segregated—

19 ‘‘(I) the customer base for the ag20 ricultural commodity or product has

21 been expanded; and

22 ‘‘(II) a greater portion of the rev23 enue derived from the marketing, proc24 essing, or physical segregation of the

25 agricultural commodity or product is
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1 available to the producer of the com2 modity or product.

3 ‘‘(B) INCLUSION.—The term ‘value-added

4 agricultural products’ includes—

5 ‘‘(i) farm- or ranch-based renewable

6 energy, including the sale of E–85 fuel; and

7 ‘‘(ii) the aggregation and marketing of

8 locally-produced agricultural food prod9 ucts.’’.

10 (b) GRANT PROGRAM.—Section 231(b) of the Agricul11 tural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Pub12 lic Law 106–224) is amended—

13 (1) in paragraph (2)—

14 (A) in subparagraph (A), by striking ‘‘ex15 ceed $500,000’’ and inserting ‘‘exceed—

16 ‘‘(i) $300,000 in the case of grants in17 cluding working capital; and

18 ‘‘(ii) $100,000 in the case of all other

19 grants.’’; and

20 (B) by adding at the end the following:

21 ‘‘(C) RESEARCH, TRAINING, TECHNICAL AS22 SISTANCE, AND OUTREACH.—The amount of

23 grant funds provided to an assisting organiza24 tion for a fiscal year may not exceed 10 percent

25 of the total amount of funds that are used to
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1 make grants for the fiscal year under this sub2 section.’’;

3 (2) in paragraph (3)—

4 (A) in subparagraph (A), by striking ‘‘or’’

5 at the end;

6 (B) in subparagraph (B), by striking the

7 period at the end and inserting ‘‘; or’’; and

8 (C) by adding at the end the following:

9 ‘‘(C) to conduct market research, provide

10 training and technical assistance, develop supply

11 networks, or provide program outreach.’’; and

12 (3) by striking paragraph (4) and inserting the

13 following:

14 ‘‘(4) TERM.—A grant under this section shall

15 have a term that does not exceed 3 years.

16 ‘‘(5) SIMPLIFIED APPLICATION.—The Secretary

17 shall offer a simplified application form and process

18 for project proposals requesting less than $50,000.

19 ‘‘(6) PRIORITY.—

20 ‘‘(A) IN GENERAL.—In awarding grants,

21 the Secretary shall give the priority to projects

22 that—

23 ‘‘(i) contribute to increasing opportu24 nities for beginning farmers or ranchers, so25 cially disadvantaged farmers or ranchers,
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1 and operators of small- and medium-sized

2 farms and ranches that are not larger than

3 family farms; and

4 ‘‘(ii) support new ventures that do not

5 have well-established markets or product de6 velopment staffs and budgets, including the

7 development of local food systems and the

8 development of infrastructure to support

9 local food systems.

10 ‘‘(B) PARTICIPATION.—To the maximum

11 extent practicable, the Secretary shall provide

12 grants to projects that provide training and out13 reach activities in areas that have, as determined

14 by the Secretary, received relatively fewer grants

15 than other areas.

16 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

17 There are authorized to be appropriated such sums as

18 are necessary to carry out this subsection for each of

19 fiscal years 2008 through 2012.’’.

20 SEC. 6402. INSURANCE OF LOANS FOR HOUSING AND RE21 LATED FACILITIES FOR DOMESTIC FARM

22 LABOR.

23 Section 514(f)(3) of the Housing Act of 1949 (42

24 U.S.C. 1484(f)(3)) is amended by striking ‘‘or the handling

25 of such commodities in the unprocessed stage’’ and inserting
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1 ‘‘, the handling of agricultural or aquacultural commodities

2 in the unprocessed stage, or the processing of agricultural

3 or aquacultural commodities’’.

4 Subtitle F—Housing Assistance

5 Council

6 SEC. 6501. SHORT TITLE.

7 This title may be cited as the ‘‘Housing Assistance

8 Council Authorization Act of 2007’’.

9 SEC. 6502. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.

10 (a) USE.—The Secretary of Housing and Urban De11 velopment may provide financial assistance to the Housing

12 Assistance Council for use by such Council to develop the

13 ability and capacity of community-based housing develop14 ment organizations to undertake community development

15 and affordable housing projects and programs in rural

16 areas. Assistance provided by the Secretary under this sec17 tion may be used by the Housing Assistance Council for—

18 (1) technical assistance, training, support, and

19 advice to develop the business and administrative ca20 pabilities of rural community-based housing develop21 ment organizations;

22 (2) loans, grants, or other financial assistance to

23 rural community-based housing development organi24 zations to carry out community development and af-
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1 fordable housing activities for low- and moderate-in2 come families; and

3 (3) such other activities as may be determined by

4 the Housing Assistance Council.

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There is

6 authorized to be appropriated for financial assistance under

7 this section for the Housing Assistance Council—

8 (1) $10,000,000 for fiscal year 2008; and

9 (2) $15,000,000 for each of fiscal years 2009 and

10 2010.

11 SEC. 6503. AUDITS AND REPORTS.

12 (a) AUDIT.—In any year in which the Housing Assist13 ance Council receives funds under this title, the Comptroller

14 General of the United States shall—

15 (1) audit the financial transactions and activi16 ties of such Council only with respect to such funds

17 so received; and

18 (2) submit a report detailing such audit to the

19 Committee on Banking, Housing, and Urban Affairs

20 of the Senate and the Committee on Financial Serv21 ices of the House of Representatives.

22 (b) GAO REPORT.—The Comptroller General of the

23 United States shall conduct a study and submit a report

24 to the Committee on Banking, Housing, and Urban Affairs

25 of the Senate and the Committee on Financial Services of
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1 the House of Representative on the use of any funds appro2 priated to the Housing Assistance Council over the past 10

3 years.

4 SEC. 6504. PERSONS NOT LAWFULLY PRESENT IN THE

5 UNITED STATES.

6 None of the funds made available under this title may

7 be used to provide direct housing assistance to any person

8 not lawfully present in the United States.

9 SEC. 6505. LIMITATION ON USE OF AUTHORIZED AMOUNTS.

10 None of the amounts authorized by this title may be

11 used to lobby or retain a lobbyist for the purpose of influ12 encing a Federal, State, or local governmental entity or offi13 cer.

14 TITLE VII—RESEARCH AND

15 RELATED MATTERS

16 Subtitle A—National Agricultural

17 Research, Extension, and Teach18 ing Policy Act of 1977

19 SEC. 7001. DEFINITIONS.

20 Section 1404 of the National Agricultural Research,

21 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

22 3103) is amended—

23 (1) in paragraph (4)—
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1 (A) by redesignating subparagraphs (A)

2 through (E) as clauses (i) through (v), respec3 tively;

4 (B) by striking ‘‘(4) The terms’’ and insert5 ing the following:

6 ‘‘(4) COLLEGE AND UNIVERSITY.—

7 ‘‘(A) IN GENERAL.—The terms’’; and

8 (C) by adding at the end the following:

9 ‘‘(B) INCLUSIONS.—The terms ‘college’ and

10 ‘university’ include a research foundation main11 tained by a college or university described in

12 subparagraph (A).’’;

13 (2) by redesignating paragraphs (6) through (8),

14 (9) through (14), (15), and (16) as paragraphs (7)

15 through (9), (11) through (16), (19), and (6), respec16 tively, and moving the paragraphs so as to appear in

17 alphabetical order;

18 (3) by inserting after paragraph (9) (as redesig19 nated by paragraph (2)) the following:

20 ‘‘(10) HISPANIC-SERVING AGRICULTURAL COL21 LEGES AND UNIVERSITIES.—The term ‘Hispanic-serv22 ing agricultural colleges and universities’ means a

23 college or university that—

24 ‘‘(A) qualifies as a Hispanic-serving insti25 tution; and
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1 ‘‘(B) offers associate, bachelor’s, or other ac2 credited degree programs in agriculture-related

3 fields.’’; and

4 (4) by striking paragraph (11) (as so redesig5 nated) and inserting the following:

6 ‘‘(11) HISPANIC-SERVING INSTITUTION.—The

7 term ‘Hispanic-serving institution’ has the meaning

8 given the term in section 502(a) of the Higher Edu9 cation Act of 1965 (20 U.S.C. 1101a(a)).’’.

10 SEC. 7002. NATIONAL AGRICULTURAL RESEARCH, EXTEN11 SION, EDUCATION, AND ECONOMICS ADVI12 SORY BOARD.

13 Section 1408 of the National Agricultural Re14 search, Extension, and Teaching Policy Act of 1977

15 (7 U.S.C. 3123) is amended—

16 (A) in subsection (g)(1), by striking

17 ‘‘$350,000’’ and inserting ‘‘$500,000’’; and

18 (B) in subsection (h), by striking ‘‘2007’’

19 and inserting ‘‘2012’’.

20 SEC. 7003. VETERINARY MEDICINE LOAN REPAYMENT.

21 Section 1415A of the National Agricultural Research,

22 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

23 3151a) is amended—

24 (1) by redesignating subsection (d) as subsection

25 (g); and
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1 (2) by inserting after subsection (c) the fol2 lowing:

3 ‘‘(d) INITIAL IMPLEMENTATION.—To address the ur4 gent security concerns of the United States with respect to

5 public health, bioterrorism preparedness, and food supply

6 security, in implementing the first phase of the veterinary

7 medicine loan repayment program, the Secretary shall give

8 priority to large and mixed animal practitioner shortages

9 in rural communities.

10 ‘‘(e) USEOF FUNDS.—None of the funds appropriated

11 to the Secretary under subsection (g) may be used to carry

12 out section 5379 of title 5, United States Code.

13 ‘‘(f) REGULATIONS.—Notwithstanding subchapter II of

14 chapter 5 of title 5, United States Code, not later than 270

15 days after the date of enactment of this subsection, the Sec16 retary shall promulgate regulations to carry out this sec17 tion.’’.

18 SEC. 7004. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT

19 OF COLUMBIA FOR GRANTS AND FELLOW20 SHIPS FOR FOOD AND AGRICULTURAL

21 SCIENCES EDUCATION.

22 Section 1417 of the National Agricultural Research,

23 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

24 3152) is amended—
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1 (1) in the matter preceding paragraph (1) of

2 subsection (b), by inserting ‘‘(including the Univer3 sity of the District of Columbia)’’ after ‘‘land-grant

4 colleges and universities’’; and

5 (2) in subsection (d)(2), by inserting ‘‘(including

6 the University of the District of Columbia)’’ after

7 ‘‘universities’’.

8 SEC. 7005. GRANTS TO 1890 INSTITUTIONS TO EXPAND EX9 TENSION CAPACITY.

10 Section 1417(b)(4) of the National Agricultural Re11 search, Extension, and Teaching Policy Act of 1977 (7

12 U.S.C. 3152(b)(4)) is amended by striking ‘‘teaching and

13 research’’ and inserting ‘‘teaching, research, and extension’’.

14 SEC. 7006. EXPANSION OF FOOD AND AGRICULTURAL

15 SCIENCES AWARDS.

16 Section 1417(i) of the National Agricultural Research,

17 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

18 3152(i)) is amended—

19 (1) in the subsection heading, by striking

20 ‘‘TEACHING AWARDS ’’ and ‘‘TEACHING, EXTENSION,

21 AND RESEARCH AWARDS’’; and

22 (2) by striking paragraph (1) and inserting the

23 following:

24 ‘‘(1) ESTABLISHMENT.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall es2 tablish a National Food and Agricultural

3 Sciences Teaching, Extension, and Research

4 Awards program to recognize and promote excel5 lence in teaching, extension, and research in the

6 food and agricultural sciences at a college or

7 university.

8 ‘‘(B) MINIMUM REQUIREMENT.—The Sec9 retary shall make at least 1 cash award in each

10 fiscal year to a nominee selected by the Secretary

11 for excellence in each of the areas of teaching, ex12 tension, and research of food and agricultural

13 science at a college or university.’’.

14 SEC. 7007. GRANTS AND FELLOWSHIPS FOR FOOD AND AG15 RICULTURAL SCIENCES EDUCATION.

16 (a) EDUCATION TEACHING PROGRAMS.—Section

17 1417(j) of the National Agricultural Research, Extension

18 and Teaching Policy Act of 1977 (7 U.S.C. 3152(j)) is

19 amended—

20 (1) in the subsection heading, by striking ‘‘AND

21 2-YEAR POSTSECONDARY EDUCATION TEACHING PRO22 GRAMS’’ and inserting ‘‘, 2-YEAR POSTSECONDARY

23 EDUCATION, AND AGRICULTUREIN THE K–12 CLASS24 ROOM’’; and

25 (2) in paragraph (3)—
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1 (A) in the matter preceding subparagraph

2 (A), by striking ‘‘and institutions of higher edu3 cation that award an associate’s degree’’ and in4 serting ‘‘, institutions of higher education that

5 award an associate’s degree, other institutions of

6 higher education, and nonprofit organizations’’;

7 (B) in subparagraph (E), by striking ‘‘and’’

8 at the end;

9 (C) in subparagraph (F), by striking the

10 period at the end and inserting ‘‘; and’’; and

11 (D) by adding at the end the following:

12 ‘‘(G) to support current agriculture in the

13 classroom programs for grades K–12.’’.

14 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

15 1417(l) of the National Agricultural Research, Extension,

16 and Teaching Policy Act of 1977 (7 U.S.C. 3152(l)) is

17 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

18 (c) REPORT.—Section 1417 of the National Agricul19 tural Research, Extension and Teaching Policy Act of 1977

20 (7 U.S.C. 3152) is amended—

21 (1) by redesignating subsection (l) as subsection

22 (m); and

23 (2) by inserting after subsection (k) the fol24 lowing:
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1 ‘‘(l) REPORT.—The Secretary shall submit an annual

2 report to the Committee on Agriculture of the House of Rep3 resentatives and the Committee on Agriculture, Nutrition,

4 and Forestry of the Senate describing the distribution of

5 funds used to implement teaching programs under sub6 section (j).’’.

7 SEC. 7008. GRANTS FOR RESEARCH ON PRODUCTION AND

8 MARKETING OF ALCOHOLS AND INDUSTRIAL

9 HYDROCARBONS FROM AGRICULTURAL COM10 MODITIES AND FOREST PRODUCTS.

11 Section 1419(d) of the National Agricultural Research,

12 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

13 3154(d)) is amended by striking ‘‘2007’’ and inserting

14 ‘‘2012’’.

15 SEC. 7009. POLICY RESEARCH CENTERS.

16 Section 1419A of the National Agricultural Research,

17 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

18 3155) is amended—

19 (1) in subsection (b), by inserting ‘‘(including

20 the Food Agricultural Policy Research Institute, the

21 Agricultural and Food Policy Center, the Rural Pol22 icy Research Institute, and the Community Vitality

23 Center)’’ after ‘‘research institutions and organiza24 tions’’; and
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1 (2) in subsection (d), by striking ‘‘2007’’ and in2 serting ‘‘2012’’.

3 SEC. 7010. HUMAN NUTRITION INTERVENTION AND HEALTH

4 PROMOTION RESEARCH PROGRAM.

5 Section 1424(d) of the National Agricultural Research,

6 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

7 3174(d)) is amended by striking ‘‘2007’’ and inserting

8 ‘‘2012’’.

9 SEC. 7011. PILOT RESEARCH PROGRAM TO COMBINE MED10 ICAL AND AGRICULTURAL RESEARCH.

11 Section 1424A(d) of the National Agricultural Re12 search, Extension, and Teaching Policy Act of 1977 (7

13 U.S.C. 3174a(d)) is amended by striking ‘‘2007’’ and in14 serting ‘‘2012’’.

15 SEC. 7012. NUTRITION EDUCATION PROGRAM.

16 (a) DEFINITIONS.—Section 1425 of the National Agri17 cultural Research, Extension, and Teaching Policy Act of

18 1977 (7 U.S.C. 3175) is amended—

19 (1) by redesignating subsections (a) through (c)

20 as subsections (b) through (d), respectively;

21 (2) by striking the section heading and ‘‘SEC.

22 1425.’’ and inserting the following:

23 ‘‘SEC. 1425. NUTRITION EDUCATION PROGRAM.

24 ‘‘(a) DEFINITIONS.—In this section, the terms ‘1862

25 Institution’ and ‘1890 Institution’ have the meaning given
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1 those terms in section 2 of the Agricultural Research, Exten2 sion, and Education Reform Act of 1998 (7 U.S.C. 7601).’’;

3 (3) in subsection (b) (as redesignated by para4 graph (1)), by striking ‘‘The Secretary’’ and inserting

5 the following:

6 ‘‘(b) ESTABLISHMENT.—The Secretary’’; and

7 (4) in subsection (c) (as so redesignated), by

8 striking ‘‘In order to enable’’ and inserting the fol9 lowing:

10 ‘‘(c) EMPLOYMENT AND TRAINING.—To enable’’.

11 (b) FUNDING TO 1862, 1890, AND INSULAR AREA IN12 STITUTIONS.—Subsection (d) of section 1425 of the Na13 tional Agricultural Research, Extension, and Teaching Pol14 icy Act of 1977 (7 U.S.C. 3175) (as redesignated by sub15 section (a)(1)) is amended—

16 (1) in the matter preceding paragraph (1), by

17 striking ‘‘Beginning’’ and inserting the following:

18 ‘‘(d) ALLOCATION OF FUNDING.—Beginning’’; and

19 (2) in paragraph (2), by striking subparagraph

20 (B) and inserting the following:

21 ‘‘(B) Notwithstanding section 3(d)(2) of the

22 Act of May 8, 1914 (7 U.S.C. 343(d)(2)), the re23 mainder shall be allocated among the States as

24 follows:
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1 ‘‘(i) $100,000 shall be distributed to

2 each 1862 and 1890 land-grant college and

3 university.

4 ‘‘(ii)(I) Subject to subclause (II), of the

5 remainder, 10 percent for fiscal year 2008,

6 11 percent for fiscal year 2009, 12 percent

7 for fiscal year 2010, 13 percent for fiscal

8 year 2011, 14 percent for fiscal year 2012,

9 and 15 percent for each fiscal year there10 after, shall be distributed among the 1890

11 Institutions, to be allocated to each 1890 In12 stitution in an amount that bears the same

13 ratio to the total amount to be allocated

14 under this clause as—

15 ‘‘(aa) the population living at or

16 below 125 percent of the income pov17 erty guidelines (as prescribed by the

18 Office of Management and Budget and

19 as adjusted pursuant to section 673(2)

20 of the Community Services Block

21 Grant Act (42 U.S.C. 9902(2))) in the

22 State in which the 1890 Institution is

23 located; bears to

24 ‘‘(bb) the total population living

25 at or below 125 percent of the income
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1 poverty guidelines in all States that

2 have 1890 Institutions, as determined

3 by the last preceding decennial census

4 at the time each such additional

5 amount is first appropriated.

6 ‘‘(II) The total amount allocated under

7 this clause shall not exceed the amount of

8 the funds appropriated for the conduct of

9 the expanded food and nutrition education

10 program for the fiscal year that are in ex11 cess of the amount appropriated for the con12 duct of the program for fiscal year 2007.

13 ‘‘(iii)(I) Subject to subclauses (II) and

14 (III), the remainder shall be allocated to the

15 1860 institution in each State (including

16 the appropriate insular area institution

17 and the University of the District of Colum18 bia) in an amount that bears the same ratio

19 to the total amount to be allocated under

20 this subparagraph as—

21 ‘‘(aa) the population of the State

22 living at or below 125 percent of the

23 income poverty guidelines prescribed

24 by the Office of Management and

25 Budget (adjusted pursuant to section
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1 673(2) of the Omnibus Budget Rec2 onciliation Act of 1981 (42 U.S.C.

3 9902(2))); bears to

4 ‘‘(bb) the total population of all

5 the States living at or below 125 per6 cent of the income poverty guidelines,

7 as determined by the last preceding de8 cennial census at the time each such

9 additional amount is first appro10 priated.

11 ‘‘(II) The total amount allocated under

12 this clause to the University of the District

13 of Columbia shall not exceed the amount de14 scribed in clause (ii)(II), reduced by the

15 amount allocated to the University of the

16 District of Columbia under clause (ii).

17 ‘‘(III) Nothing in this clause precludes

18 the Secretary from developing educational

19 materials and programs for persons in in20 come ranges above the level designated in

21 this clause.’’.

22 (c) AUTHORIZATION OF APPROPRIATIONS.—Subsection

23 (d)(3) of section 1425 of the National Agricultural Re24 search, Extension, and Teaching Policy Act of 1977 (7
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1 U.S.C. 3175) (as redesignated by subsection (a)(1)) is

2 amended—

3 (1) by striking ‘‘There is’’ and inserting the fol4 lowing:

5 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

6 There is’’; and

7 (2) by striking ‘‘$83,000,000 for each of fiscal

8 years 1996 through 2007’’ and inserting ‘‘$90,000,000

9 for each of fiscal years 2008 through 2012’’.

10 (d) CONFORMING AMENDMENT.—Section 1588(b) of

11 the Food Security Act of 1985 (7 U.S.C. 3175e(b)) is

12 amended by striking ‘‘section 1425(c)(2)’’ and inserting

13 ‘‘section 1425(d)(2)’’.

14 (e) EFFECTIVE DATE.—The amendments made by this

15 section take effect on October 1, 2007.

16 SEC. 7013. PURPOSES AND FINDINGS RELATING TO ANIMAL

17 HEALTH AND DISEASE RESEARCH.

18 Section 1429 of the National Agricultural Research,

19 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

20 3191) is amended—

21 (1) in paragraph (8), by striking ‘‘and’’ at the

22 end;

23 (2) in paragraph (9), by striking the period at

24 the end and inserting ‘‘; and’’; and

25 (3) by adding at the end the following:
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1 ‘‘(10) support work with agricultural colleges

2 and universities to develop methods and practices of

3 animal husbandry that ensure the judicious use of

4 antibiotics.’’.

5 SEC. 7014. CONTINUING ANIMAL HEALTH AND DISEASE RE6 SEARCH PROGRAMS.

7 Section 1433(a) of the National Agricultural Research,

8 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

9 3195(a)) is amended in the first sentence by striking

10 ‘‘2007’’ and inserting ‘‘2012’’.

11 SEC. 7015. APPROPRIATIONS FOR RESEARCH ON NATIONAL

12 OR REGIONAL PROBLEMS.

13 Section 1434(a) of the National Agricultural Research,

14 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

15 3196(a)) is amended by striking ‘‘2007’’ and inserting

16 ‘‘2012’’.

17 SEC. 7016. ANIMAL HEALTH AND DISEASE RESEARCH PRO18 GRAM.

19 Section 1434(b) of the National Agricultural Research,

20 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

21 3196(b)) is amended by inserting after ‘‘universities’’ the

22 following: ‘‘(including 1890 Institutions (as defined in sec23 tion 2 of the Agricultural Research, Extension, and Edu24 cation Reform Act of 1998 (7 U.S.C. 7601)))’’.
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1 SEC. 7017. AUTHORIZATION LEVEL FOR EXTENSION AT 1890

2 LAND-GRANT COLLEGES.

3 Section 1444(a)(2) of the National Agricultural Re4 search, Extension, and Teaching Policy Act of 1977 (7

5 U.S.C. 3221(a)(2)) is amended by striking ‘‘15 percent’’

6 and inserting ‘‘20 percent’’.

7 SEC. 7018. AUTHORIZATION LEVEL FOR AGRICULTURAL RE8 SEARCH AT 1890 LAND-GRANT COLLEGES.

9 Section 1445(a)(2) of the National Agricultural Re10 search, Extension, and Teaching Policy Act of 1977 (7

11 U.S.C. 3222(a)(2)) is amended by striking ‘‘25 percent’’

12 and inserting ‘‘30 percent’’.

13 SEC. 7019. GRANTS TO UPGRADE AGRICULTURAL AND FOOD

14 SCIENCES FACILITIES AT 1890 LAND-GRANT

15 COLLEGES, INCLUDING TUSKEGEE UNIVER16 SITY.

17 Section 1447(b) of the National Agricultural Research,

18 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

19 3222b(b)) is amended by striking ‘‘2007’’ and inserting

20 ‘‘2012’’.

21 SEC. 7020. GRANTS TO UPGRADE AGRICULTURE AND FOOD

22 SCIENCES FACILITIES AT THE DISTRICT OF

23 COLUMBIA LAND GRANT UNIVERSITY.

24 The National Agricultural Research, Extension, and

25 Teaching Policy Act of 1977 is amended by inserting after

26 section 1447 (7 U.S.C. 3222b) the following:
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1 ‘‘SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND

2 FOOD SCIENCES FACILITIES AT THE DIS3 TRICT OF COLUMBIA LAND GRANT UNIVER4 SITY.

5 ‘‘(a) PURPOSE.—It is the intent of Congress to assist

6 the land grant university in the District of Columbia estab7 lished under section 208 of the District of Columbia Public

8 Postsecondary Education Reorganization Act (Public Law

9 93–471; 88 Stat. 1428) in efforts to acquire, alter, or repair

10 facilities or relevant equipment necessary for conducting

11 agricultural research.

12 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated to carry out this section

14 $750,000 for each of fiscal years 2008 through 2012.’’.

15 SEC. 7021. NATIONAL RESEARCH AND TRAINING VIRTUAL

16 CENTERS.

17 Section 1448 of the National Agricultural Research,

18 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

19 3222c) is amended by striking ‘‘2007’’ each place it appears

20 in subsections (a)(1) and (f) and inserting ‘‘2012’’.

21 SEC. 7022. MATCHING FUNDS REQUIREMENT FOR RE22 SEARCH AND EXTENSION ACTIVITIES OF 1890

23 INSTITUTIONS.

24 Section 1449(c) of the National Agricultural Research,

25 Extension, and Teaching Policy Act of 1977 (7 U.S.C.
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1 3222d(c)) is amended in the first sentence by striking

2 ‘‘2007’’ and inserting ‘‘2012.’’.

3 SEC. 7023. HISPANIC-SERVING INSTITUTIONS.

4 Section 1455 of the National Agricultural Research,

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

6 3241) is amended—

7 (1) in subsection (a) by striking ‘‘(or grants

8 without regard to any requirement for competition)’’;

9 (2) in subsection (b)—

10 (A) in paragraph (1), by striking ‘‘of con11 sortia’’;

12 (B) in paragraph (3), by striking ‘‘, begin13 ning with the mentoring of students’’ and all

14 that follows through ‘‘doctoral degree’’; and

15 (C) in paragraph (4)—

16 (i) by striking ‘‘2 or more’’; and

17 (ii) by striking ‘‘, or between His18 panic-serving’’ and all that follows through

19 ‘‘the private sector,’’; and

20 (3) in subsection (c)—

21 (A) by striking ‘‘$20,000,000’’ and inserting

22 ‘‘$40,000,000’’; and

23 (B) by striking ‘‘2007’’ and inserting

24 ‘‘2012’’.
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1 SEC. 7024. HISPANIC-SERVING AGRICULTURAL COLLEGES

2 AND UNIVERSITIES.

3 (a) IN GENERAL.—The National Agricultural Re4 search, Extension and Teaching Policy Act of 1977 is

5 amended by inserting after section 1455 (7 U.S.C. 3241)

6 the following:

7 ‘‘SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES

8 AND UNIVERSITIES.

9 ‘‘(a) DEFINITION OF ENDOWMENT FUND.—In this sec10 tion, the term ‘endowment fund’ means the Hispanic-Serv11 ing Agricultural Colleges and Universities Fund established

12 under subsection (b).

13 ‘‘(b) ENDOWMENT.—

14 ‘‘(1) IN GENERAL.—The Secretary of the Treas15 ury shall establish in accordance with this subsection

16 a Hispanic-Serving Agricultural Colleges and Univer17 sities Fund.

18 ‘‘(2) AGREEMENTS.—The Secretary of the Treas19 ury may enter into such agreements as are necessary

20 to carry out this subsection.

21 ‘‘(3) DEPOSIT TO THE ENDOWMENT FUND.—The

22 Secretary of the Treasury shall deposit in the endow23 ment fund any—

24 ‘‘(A) amounts made available through Acts

25 of appropriations, which shall be the endowment

26 fund corpus; and
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1 ‘‘(B) interest earned on the endowment fund

2 corpus.

3 ‘‘(4) INVESTMENTS.—The Secretary of the Treas4 ury shall invest the endowment fund corpus and in5 come in interest-bearing obligations of the United

6 States.

7 ‘‘(5) WITHDRAWALS AND EXPENDITURES.—

8 ‘‘(A) CORPUS.—The Secretary of the Treas9 ury may not make a withdrawal or expenditure

10 from the endowment fund corpus.

11 ‘‘(B) WITHDRAWALS.—On September 30,

12 2008, and each September 30 thereafter, the Sec13 retary of the Treasury shall withdraw the

14 amount of the income from the endowment fund

15 for the fiscal year and warrant the funds to the

16 Secretary of Agriculture who, after making ad17 justments for the cost of administering the en18 dowment fund, shall distribute the adjusted in19 come as follows:

20 ‘‘(i) 60 percent shall be distributed

21 among the Hispanic-serving agricultural

22 colleges and universities on a pro rata basis

23 based on the Hispanic enrollment count of

24 each institution.
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1 ‘‘(ii) 40 percent shall be distributed in

2 equal shares to the Hispanic-serving agri3 cultural colleges and universities.

4 ‘‘(6) ENDOWMENTS.—Amounts made available

5 under this subsection shall be held and considered to

6 be granted to Hispanic-serving agricultural colleges

7 and universities to establish an endowment in accord8 ance with this subsection.

9 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

10 There are authorized to be appropriated to the Sec11 retary such sums as are necessary to carry out this

12 subsection for fiscal year 2008 and each fiscal year

13 thereafter.

14 ‘‘(c) AUTHORIZATION FOR ANNUAL PAYMENTS.—

15 ‘‘(1) IN GENERAL.—For fiscal year 2008 and

16 each fiscal year thereafter, there are authorized to be

17 appropriated to the Department of Agriculture to

18 carry out this subsection an amount equal to the

19 product obtained by multiplying—

20 ‘‘(A) $80,000; by

21 ‘‘(B) the number of Hispanic-serving agri22 cultural colleges and universities.

23 ‘‘(2) PAYMENTS.—For fiscal year 2008 and each

24 fiscal year thereafter, the Secretary of the Treasury

25 shall pay to the treasurer of each Hispanic-Serving
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1 agricultural college and university an amount equal

2 to—

3 ‘‘(A) the total amount made available by

4 appropriations under subparagraph (A); divided

5 by

6 ‘‘(B) the number of Hispanic-serving agri7 cultural colleges and universities.

8 ‘‘(3) USEOF FUNDS.—

9 ‘‘(A) IN GENERAL.—Amounts authorized to

10 be appropriated under this subsection shall be

11 used in the same manner as is prescribed for col12 leges under the Act of August 30, 1890 (com13 monly known as the ‘Second Morrill Act’) (7

14 U.S.C. 321 et seq.).

15 ‘‘(B) RELATIONSHIP TO OTHER LAW.—Ex16 cept as otherwise provided in this subsection, the

17 requirements of that Act shall apply to His18 panic-serving agricultural colleges and univer19 sities under this section.

20 ‘‘(d) INSTITUTIONAL CAPACITY-BUILDING GRANTS.—

21 ‘‘(1) IN GENERAL.—For fiscal year 2008 and

22 each fiscal year thereafter, the Secretary shall make

23 grants to assist Hispanic-serving agricultural colleges

24 and universities in institutional capacity building
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1 (not including alteration, repair, renovation, or con2 struction of buildings).

3 ‘‘(2) CRITERIA FOR INSTITUTIONAL CAPACITY4 BUILDING GRANTS.—

5 ‘‘(A) REQUIREMENTS FOR GRANTS.—The

6 Secretary shall make grants under this sub7 section on the basis of a competitive application

8 process under which Hispanic-serving agricul9 tural colleges and universities may submit appli10 cations to the Secretary at such time, in such

11 manner, and containing such information as the

12 Secretary may require.

13 ‘‘(B) DEMONSTRATION OF NEED.—

14 ‘‘(i) IN GENERAL.—As part of an ap15 plication for a grant under this subsection,

16 the Secretary shall require the applicant to

17 demonstrate need for the grant, as deter18 mined by the Secretary.

19 ‘‘(ii) OTHER SOURCES OF FUNDING.—

20 The Secretary may award a grant under

21 this subsection only to an applicant that

22 demonstrates a failure to obtain funding for

23 a project after making a reasonable effort to

24 otherwise obtain the funding.
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1 ‘‘(C) PAYMENT OF NON-FEDERAL SHARE.—

2 A grant awarded under this subsection shall be

3 made only if the recipient of the grant pays a

4 non-Federal share in an amount that is specified

5 by the Secretary and based on assessed institu6 tional needs.

7 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

8 There are authorized to be appropriated to the Sec9 retary such sums as are necessary to carry out this

10 subsection for fiscal year 2008 and each fiscal year

11 thereafter.

12 ‘‘(e) COMPETITIVE GRANTS PROGRAM.—

13 ‘‘(1) IN GENERAL.—The Secretary shall establish

14 a competitive grants program to fund fundamental

15 and applied research at Hispanic-serving agricultural

16 colleges and universities in agriculture, human nutri17 tion, food science, bioenergy, and environmental

18 science.

19 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—

20 There are authorized to be appropriated to the Sec21 retary such sums as are necessary to carry out this

22 subsection for fiscal year 2008 and each fiscal year

23 thereafter.’’.

24 (b) EXTENSION.—Section 3 of the Smith-Lever Act (7

25 U.S.C. 343) is amended—
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1 (1) in subsection (b), by adding at the end the

2 following:

3 ‘‘(4) ANNUAL APPROPRIATION FOR HISPANIC4 SERVING AGRICULTURAL COLLEGES AND UNIVER5 SITIES.—

6 ‘‘(A) AUTHORIZATION OF APPROPRIA7 TIONS.—There are authorized to be appropriated

8 to the Secretary such sums as are necessary to

9 carry out this paragraph for fiscal year 2008

10 and each fiscal year thereafter.

11 ‘‘(B) ADDITIONAL AMOUNT.—Amounts made

12 available under this paragraph shall be in addi13 tion to any other amounts made available under

14 this section to States, the Commonwealth of

15 Puerto Rico, or any other territory or possession

16 of the United States.

17 ‘‘(C) ADMINISTRATION.—Amounts made

18 available under this paragraph shall be—

19 ‘‘(i) distributed on the basis of a com20 petitive application process to be developed

21 and implemented by the Secretary and paid

22 by the Secretary to the State institutions es23 tablished in accordance with the Act of July

24 2, 1862 (commonly known as the ‘First

25 Morrill Act’) (7 U.S.C. 301 et seq.); and
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1 ‘‘(ii) administered by State institu2 tions through cooperative agreements with

3 the Hispanic-serving agricultural colleges

4 and universities (as defined in section 1456

5 of the National Agricultural Research, Ex6 tension and Teaching Policy Act of 1977)

7 in the State in accordance with regulations

8 promulgated by the Secretary.’’; and

9 (2) in subsection (f)—

10 (A) in the subsection heading, by inserting

11 ‘‘AND HISPANIC-SERVING AGRICULTURAL COL12 LEGES AND UNIVERSITIES’’ after ‘‘1994 INSTITU13 TIONS’’; and

14 (B) by striking ‘‘pursuant to subsection

15 (b)(3)’’ and inserting ‘‘or Hispanic-serving agri16 cultural colleges and universities in accordance

17 with paragraphs (3) and (4) of subsection (b)’’.

18 SEC. 7025. INTERNATIONAL AGRICULTURAL RESEARCH, EX19 TENSION, AND EDUCATION.

20 Section 1458(a) of the National Agricultural Research,

21 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

22 3291(a)) is amended—

23 (1) in paragraph (1)—

24 (A) in subparagraph (A), by striking ‘‘and’’

25 after the semicolon;
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1 (B) in subparagraph (B), by adding ‘‘and’’

2 at the end; and

3 (C) by adding at the end the following:

4 ‘‘(C) giving priority to those institutions

5 with existing memoranda of understanding,

6 agreements, or other formal ties to United States

7 institutions, or Federal or State agencies;’’;

8 (2) in paragraph (3), by inserting ‘‘Hispanic9 serving agricultural colleges and universities,’’ after

10 ‘‘universities,’’;

11 (3) in paragraph (7)(A), by striking ‘‘and land12 grant colleges and universities’’ and inserting ‘‘, land13 grant colleges and universities, and Hispanic-serving

14 agricultural colleges and universities’’;

15 (4) in paragraph (9)—

16 (A) in subparagraph (A), by striking ‘‘or

17 other colleges and universities’’ and inserting ‘‘,

18 Hispanic-serving agricultural colleges and uni19 versities, or other colleges and universities’’; and

20 (B) in subparagraph (D), by striking ‘‘and’’

21 at the end;

22 (5) in paragraph (10), by striking the period at

23 the end and inserting ‘‘; and’’; and

24 (6) by adding at the end the following:
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1 ‘‘(11) establish a program for the purpose of pro2 viding fellowships to United States or foreign students

3 to study at foreign agricultural colleges and univer4 sities working under agreements provided for under

5 paragraph (3).’’.

6 SEC. 7026. COMPETITIVE GRANTS FOR INTERNATIONAL AG7 RICULTURAL SCIENCE AND EDUCATION PRO8 GRAMS.

9 Section 1459A(c) of the National Agricultural Re10 search, Extension, and Teaching Policy Act of 1977 (7

11 U.S.C. 3292b(c)) is amended by striking ‘‘2007’’ and insert12 ing ‘‘2012’’.

13 SEC. 7027. INDIRECT COSTS.

14 Section 1462(a) of the National Agricultural Research,

15 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

16 3310(a)) is amended by striking ‘‘shall not exceed 19 per17 cent’’ and inserting ‘‘shall be the negotiated indirect rate

18 of cost established for an institution by the appropriate

19 Federal audit agency for the institution, not to exceed 30

20 percent’’.

21 SEC. 7028. RESEARCH EQUIPMENT GRANTS.

22 Section 1462A(e) of the National Agricultural Re23 search, Extension, and Teaching Policy Act of 1977 (7

24 U.S.C. 3310a(e)) is amended by striking ‘‘2007’’ and insert25 ing ‘‘2012’’.
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1 SEC. 7029. UNIVERSITY RESEARCH.

2 Section 1463 of the National Agricultural Research,

3 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

4 3311) is amended by striking ‘‘2007’’ each place it appears

5 in subsections (a) and (b) and inserting ‘‘2012’’.

6 SEC. 7030. EXTENSION SERVICE.

7 Section 1464 of the National Agricultural Research,

8 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

9 3312) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

10 SEC. 7031. INDIRECT COST RECOVERY.

11 Section 1473A of the National Agricultural Research,

12 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

13 3319a) is amended in the second sentence by striking ‘‘not

14 exceeding 10 percent of the direct cost’’ and inserting ‘‘and

15 shall be the negotiated indirect rate of cost for an institution

16 by the appropriate Federal audit agency for the institution,

17 not to exceed 30 percent.’’

18 SEC. 7032. SUPPLEMENTAL AND ALTERNATIVE CROPS.

19 Section 1473D(a) of the National Agricultural Re20 search, Extension, and Teaching Policy Act of 1977 (7

21 U.S.C. 3319d(a)) is amended by striking ‘‘2007’’ and in22 serting ‘‘2012’’.

23 SEC. 7033. AQUACULTURE RESEARCH FACILITIES.

24 (a) FISH DISEASE PROGRAM.—Section 1475(f) of the

25 National Agricultural Research, Extension, and Teaching

26 Policy Act of 1977 (7 U.S.C. 3322(f)) is amended—
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1 (1) by striking ‘‘The Secretary’’ and inserting

2 the following:

3 ‘‘(1) IN GENERAL.—The Secretary’’; and

4 (2) by adding at the end the following:

5 ‘‘(2) VIRAL HEMORRHAGIC SEPTICEMIA.—

6 ‘‘(A) IN GENERAL.—The study of viral hem7 orrhagic septicemia (referred to in this para8 graph as ‘VHS’) and VHS management shall be

9 considered an area of priority research under

10 this subsection.

11 ‘‘(B) CONSULTATION.—

12 ‘‘(i) IN GENERAL.—The Secretary shall

13 consult with appropriate directors of State

14 and tribal natural resource management

15 and agriculture agencies in areas that are

16 VHS positive as of the date of enactment of

17 this paragraph to develop and implement a

18 comprehensive set of priorities for man19 aging VHS, including providing funds for

20 research into the spread and control of the

21 disease, surveillance, monitoring, risk eval22 uation, enforcement, screening, education

23 and outreach, and management.

24 ‘‘(ii) CONSIDERATION.—The Secretary

25 shall provide special consideration to the
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1 recommendations of the directors described

2 in clause (i) in the development of the VHS

3 priorities.’’.

4 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

5 1477 of the National Agricultural Research, Extension, and

6 Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended

7 by striking ‘‘2007’’ and inserting ‘‘2012’’.

8 SEC. 7034. RANGELAND RESEARCH.

9 (a) GRANTS.—Section 1480(a) of the National Agri10 cultural Research, Extension, and Teaching Policy Act of

11 1977 (7 U.S.C. 3333(a)) is amended—

12 (1) in paragraph (1), by striking ‘‘; and’’ and

13 inserting a semicolon;

14 (2) in paragraph (2), by striking the period at

15 the end and inserting ‘‘; and’’; and

16 (3) by adding at the end the following:

17 ‘‘(3) pilot programs to coordinate and conduct

18 collaborative projects to address natural resources

19 management issues and facilitate the collection of in20 formation and analysis to provide Federal and State

21 agencies, private landowners, and the public with in22 formation to allow for improved management of pub23 lic and private rangeland.’’.

24 (b) MATCHING REQUIREMENTS.—Section 1480(b)(2)

25 of the National Agricultural Research, Extension, and
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1 Teaching Policy Act of 1977 (7 U.S.C. 3333(b)(2)) is

2 amended by striking ‘‘subsection (a)(2)’’ and inserting

3 ‘‘paragraph (2) or (3) of subsection (a)’’.

4 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

5 1483(a) of the National Agricultural Research, Extension,

6 and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is

7 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

8 SEC. 7035. SPECIAL AUTHORIZATION FOR BIOSECURITY

9 PLANNING AND RESPONSE.

10 Section 1484(a) of the National Agricultural Research,

11 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

12 3351(a)) is amended by striking ‘‘2007’’ and inserting

13 ‘‘2012’’.

14 SEC. 7036. RESIDENT INSTRUCTION AND DISTANCE EDU15 CATION GRANTS PROGRAM FOR INSULAR

16 AREA INSTITUTIONS OF HIGHER EDUCATION.

17 (a) DISTANCE EDUCATION GRANTS FOR INSULAR

18 AREAS.—Section 1490(f) of the National Agricultural Re19 search, Extension, and Teaching Policy Act of 1977 (7

20 U.S.C. 3362(f)) is amended by striking ‘‘2007’’ and insert21 ing ‘‘2012’’.

22 (b) RESIDENT INSTRUCTION GRANTS FOR INSULAR

23 AREAS.—Section 1491 of the National Agricultural Re24 search, Extension, and Teaching Policy Act of 1977 (7

25 U.S.C. 3363) is amended—
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1 (1) by redesignating subsection (e) as subsection

2 (c); and

3 (2) in subsection (c) (as so redesignated), by

4 striking ‘‘2007’’ and inserting ‘‘2012’’.

5 SEC. 7037. FARM MANAGEMENT TRAINING AND PUBLIC

6 FARM BENCHMARKING DATABASE.

7 Subtitle K of the National Agricultural Research, Ex8 tension, and Teaching Policy Act of 1977 is amended by

9 inserting after section 1467 (7 U.S.C. 3313) the following:

10 ‘‘SEC. 1468. FARM MANAGEMENT TRAINING AND PUBLIC

11 FARM BENCHMARKING DATABASE.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) BENCHMARK, BENCHMARKING.—The term

14 ‘benchmark’ or ‘benchmarking’ means the process of

15 comparing the performance of an agricultural enter16 prise against the performance of other similar enter17 prises, through the use of comparable and reliable

18 data, in order to identify business management

19 strengths, weaknesses, and steps necessary to improve

20 management performance and business profitability.

21 ‘‘(2) FARM MANAGEMENT ASSOCIATION.—The

22 term ‘farm management association’ means a public

23 or nonprofit organization or educational program—

24 ‘‘(A) the purpose of which is to assist farm25 ers, ranchers, and other agricultural operators to
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1 improve financial management and business

2 profitability by providing training on farm fi3 nancial planning and analysis, record keeping,

4 and other farm management topics; and

5 ‘‘(B) that is affiliated with a land-grant

6 college or university, other institution of higher

7 education, or nonprofit entity.

8 ‘‘(3) NATIONAL FARM MANAGEMENT CENTER.—

9 The term ‘National Farm Management Center’ means

10 a land-grant college or university that, as determined

11 by the Secretary—

12 ‘‘(A) has collaborative partnerships with

13 more than 5 farm management associations that

14 are representative of agricultural diversity in

15 multiple regions of the United States;

16 ‘‘(B) has maintained and continues to

17 maintain farm financial analysis software ap18 plicable to the production and management of a

19 wide range of crop and livestock agricultural

20 commodities (including some organic commod21 ities);

22 ‘‘(C) has established procedures that enable

23 producers—

24 ‘‘(i) to benchmark the farms of the pro25 ducers against peer groups; and
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1 ‘‘(ii) to query the benchmarking data2 base by location, farm type, farm size, and

3 commodity at the overall business and indi4 vidual enterprise levels; and

5 ‘‘(D) has provided and continues to provide

6 public online access to farm and ranch financial

7 benchmarking databases.

8 ‘‘(b) ESTABLISHMENT.—

9 ‘‘(1) IN GENERAL.—The Secretary shall establish

10 a National Farm Management Center to improve the

11 farm management knowledge and skills of individuals

12 directly involved in production agriculture through—

13 ‘‘(A) participation in a farm management

14 education and training program; and

15 ‘‘(B) direct access to a public farm

16 benchmarking database.

17 ‘‘(2) PROPOSALS.—The Secretary shall request

18 proposals from appropriate land-grant colleges and

19 universities for the establishment of a National Farm

20 Management Center in accordance with this section.

21 ‘‘(3) REQUIREMENTS.—The National Farm

22 Management Center established under paragraph (1)

23 shall—

24 ‘‘(A) coordinate standardized financial

25 analysis methodologies for use by farmers, ranch-
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1 ers, other agricultural operators, and farm man2 agement associations;

3 ‘‘(B) provide the software tools necessary for

4 farm management associations, farmers, ranch5 ers, and other agricultural operators to perform

6 the necessary financial analyses, including the

7 benchmarking of individual enterprises; and

8 ‘‘(C) develop and maintain a national farm

9 financial database to facilitate those financial

10 analyses and benchmarking that is available on11 line to farmers, ranchers, other agricultural op12 erators, farm management associations, and the

13 public.

14 ‘‘(c) ASSOCIATION DESIGNATION.—

15 ‘‘(1) IN GENERAL.—The Secretary shall des16 ignate collaborating farm management associations to

17 collaborate with the National Farm Management Cen18 ter established under this section.

19 ‘‘(2) SELECTION.—

20 ‘‘(A) IN GENERAL.—The Secretary shall re21 quest proposals from farm management associa22 tions and make selections in consultation with

23 the National Farm Management Center.

24 ‘‘(B) NATIONAL SCOPE.—The National

25 Farm Management Center and the Secretary
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1 shall encourage the establishment, nomination,

2 and designation of qualified farm management

3 associations to provide farmers, ranchers, and

4 other agricultural operators in each State with

5 access to the training and benchmarking tools

6 described in this section.

7 ‘‘(3) SELECTION AND DESIGNATION CRITERIA.—

8 The designation of each collaborating farm manage9 ment association shall be based upon—

10 ‘‘(A) in the case of an established farm

11 management association in a State or geo12 graphic region—

13 ‘‘(i) working with farmers, ranchers,

14 and other agricultural operators to improve

15 their financial management and business

16 profitability; and

17 ‘‘(ii) contributing farm, ranch, and

18 other agricultural operation financial anal19 ysis data to a publicly available online

20 benchmarking database; and

21 ‘‘(B) in the case in which there is no estab22 lished farm management association in a par23 ticular State or geographic region, a farm man24 agement association may be designated as a col25 laborating farm management association if the
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1 National Farm Management Center and the Sec2 retary determine that there is a strong likelihood

3 that the association will meet the ongoing re4 quirements described in subsection (d).

5 ‘‘(d) ASSOCIATION REQUIREMENTS.—Each collabo6 rating farm management association designated under sub7 section (c) and receiving funds under this section shall—

8 ‘‘(1) maintain a farm management education

9 and training program that is open to all agricultural

10 producers;

11 ‘‘(2) provide individualized education to farmers,

12 ranchers, and other agricultural operators on ac13 counting, financial planning, and business manage14 ment;

15 ‘‘(3) provide an annual farm financial analysis

16 to each participating farmer, rancher, or other agri17 cultural operator;

18 ‘‘(4) use standardized farm business analysis

19 procedures as specified by the National Farm Man20 agement Center;

21 ‘‘(5) contribute farm and ranch financial anal22 ysis data to the public online benchmarking database

23 in a form and manner determined by the National

24 Farm Management Center; and
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1 ‘‘(6) facilitate and encourage producers’ sign-up

2 for ongoing multi-year participation in the training

3 and benchmarking programs.

4 ‘‘(e) LIMITATION ON INDIRECT COSTS.—Indirect costs

5 charged against funds provided under this section shall not

6 be charged at a rate in excess of the rate at which the appli7 cable institution charged, or could have charged, indirect

8 costs during fiscal year 2007 against funds received as de9 scribed in section 1462 of the National Agricultural Re10 search, Extension, and Teaching Policy Act of 1977 (7

11 U.S.C. 3310).

12 ‘‘(f) ADMINISTRATIVE EXPENSES.—Not more than 8

13 percent of the funds made available to carry out this section

14 may be used for the payment of administrative expenses

15 of the Department of Agriculture in carrying out this sec16 tion.

17 ‘‘(g) FUNDING.—The Secretary shall make available

18 each fiscal year not less than 25 percent of funds appro19 priated under subsection (h) to the National Farm Manage20 ment Center designated under subsection (b).

21 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated such sums as are nec23 essary to carry out this section.’’.
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1 SEC. 7038. TROPICAL AND SUBTROPICAL AGRICULTURAL

2 RESEARCH.

3 Subtitle K of the National Agricultural Research, Ex4 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

5 et seq.) is amended by adding at the end the following:

6 ‘‘SEC. 1473E. TROPICAL AND SUBTROPICAL AGRICULTURAL

7 RESEARCH.

8 ‘‘(a) DEFINITION OF CARIBBEAN AND PACIFIC BA9 SINS.—In this section, the term ‘Caribbean and Pacific ba10 sins’, means—

11 ‘‘(1) the States of Florida and Hawaii;

12 ‘‘(2) the Commonwealth of Puerto Rico;

13 ‘‘(3) the United States Virgin Islands;

14 ‘‘(4) Guam;

15 ‘‘(5) American Samoa;

16 ‘‘(6) the Commonwealth of the Northern Mariana

17 Islands;

18 ‘‘(7) the Federated States of Micronesia;

19 ‘‘(8) the Republic of the Marshall Islands; and

20 ‘‘(9) the Republic of Palau.

21 ‘‘(b) ESTABLISHMENT.—The Secretary shall establish

22 a program, to be known as the ‘Tropical and Subtropical

23 Agricultural Research Program’, to sustain the agriculture

24 and environment of the Caribbean and Pacific basins, by

25 supporting the full range of research relating to food and
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1 agricultural sciences in the Caribbean and Pacific basins,

2 with an emphasis on—

3 ‘‘(1) pest management;

4 ‘‘(2) deterring introduction and establishment of

5 invasive species;

6 ‘‘(3) enhancing existing and developing new

7 tropical and subtropical agricultural products; and

8 ‘‘(4) expanding value-added agriculture in trop9 ical and subtropical ecosystems.

10 ‘‘(c) GRANTS.—

11 ‘‘(1) IN GENERAL.—In carrying out this section,

12 the Secretary shall provide grants to be awarded com13 petitively to support tropical and subtropical agricul14 tural research in the Caribbean and Pacific basins.

15 ‘‘(2) ELIGIBLE ENTITIES.—To be eligible to re16 ceive a grant, an entity shall be a land-grant college

17 or university, or affiliated with a land-grant college

18 or university, that is located in any region of the

19 Caribbean and Pacific basin.

20 ‘‘(3) REQUIREMENTS.—

21 ‘‘(A) EQUAL AMOUNTS.—The total amount

22 of grants provided under this subsection shall be

23 equally divided between the Caribbean and Pa24 cific basins, as determined by the Secretary.
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1 ‘‘(B) RESEARCH INFRASTRUCTURE AND CA2 PABILITY PRIORITY.—In providing grants under

3 this subsection, the Secretary shall give priority

4 to projects of eligible entities that—

5 ‘‘(i) expand the infrastructure and ca6 pability of the region of the eligible entity;

7 ‘‘(ii) scientifically and culturally ad8 dress regional agricultural and environ9 mental challenges; and

10 ‘‘(iii) sustain agriculture in the region

11 of the eligible entity.

12 ‘‘(C) TERM.—The term of a grant provided

13 under this subsection shall not exceed 5 years.

14 ‘‘(D) PROHIBITIONS.—A grant provided

15 under this subsection shall not be used for the

16 planning, repair, rehabilitation, acquisition, or

17 construction of any building or facility.

18 ‘‘(d) FUNDING.—

19 ‘‘(1) SET-ASIDE.—Not less than 25 percent of the

20 funds made available to carry out this section during

21 a fiscal year shall be used to support programs and

22 services that—

23 ‘‘(A) address the pest management needs of

24 a region in the Caribbean and Pacific basins; or
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1 ‘‘(B) minimize the impact to a region in

2 the Caribbean and Pacific basins of invasive spe3 cies.

4 ‘‘(2) ADMINISTRATIVECOSTS.—The Secretary

5 shall use not more than 4 percent of the funds made

6 available under subsection (e) for administrative costs

7 incurred by the Secretary in carrying out this section.

8 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are

9 authorized to be appropriated to the Secretary to carry out

10 this section such sums as are necessary for each of fiscal

11 years 2008 through 2012.’’.

12 SEC. 7039. REGIONAL CENTERS OF EXCELLENCE.

13 Subtitle K of the National Agricultural Research, Ex14 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

15 et seq.) (as amended by section 7036) is amended by adding

16 at the end the following:

17 ‘‘SEC. 1473F. REGIONAL CENTERS OF EXCELLENCE.

18 ‘‘(a) PURPOSES.—The purposes of this section are—

19 ‘‘(1) to authorize regional centers of excellence for

20 specific agricultural commodities; and

21 ‘‘(2) to develop a national, coordinated program

22 of research, teaching, and extension for commodities

23 that will—
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1 ‘‘(A) be cost effective by reducing duplica2 tive efforts regarding research, teaching, and ex3 tension;

4 ‘‘(B) leverage available resources by using

5 public/private partnerships among industry

6 groups, institutions of higher education, and the

7 Federal Government;

8 ‘‘(C) increase the economic returns to agri9 cultural commodity industries by identifying, at10 tracting, and directing funds to high-priority in11 dustry issues; and

12 ‘‘(D) more effectively disseminate industry

13 issue solutions to target audiences through web14 based extension information, instructional

15 courses, and educational or training modules.

16 ‘‘(b) DEFINITIONS.—In this section:

17 ‘‘(1) AGRICULTURAL COMMODITY.—The term ‘ag18 ricultural commodity’ has the meaning given the term

19 in section 513 of the Commodity Promotion, Re20 search, and Information Act of 1996 (7 U.S.C. 7412).

21 ‘‘(2) LAND-GRANT COLLEGES AND UNIVER22 SITIES.—The term ‘land-grant colleges and univer23 sities’ means—

24 ‘‘(A) 1862 Institutions (as defined in sec25 tion 2 of the Agricultural Research, Extension,
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1 and Education Reform Act of 1998 (7 U.S.C.

2 7601));

3 ‘‘(B) 1890 Institutions (as defined in sec4 tion 2 of that Act); and

5 ‘‘(C) 1994 Institutions (as defined in sec6 tion 2 of that Act).

7 ‘‘(c) ESTABLISHMENT.—

8 ‘‘(1) ORIGINAL COMPOSITION.—The Secretary

9 shall establish regional centers of excellence for spe10 cific agricultural commodities that are each com11 prised of—

12 ‘‘(A) a lead land-grant college or university;

13 and

14 ‘‘(B) 1 or more member land-grant colleges

15 and universities that provide financial support

16 to the regional center of excellence.

17 ‘‘(2) BOARD OF DIRECTORS.—Each regional cen18 ter of excellence shall be administered by a board of

19 directors consisting of 15 members, as determined by

20 the lead and member land-grant colleges and univer21 sities of the center.

22 ‘‘(3) ADDITIONAL DIRECTORS AND INSTITU23 TIONS.—Each board of directors of a regional center

24 of excellence may—
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1 ‘‘(A) designate additional land-grant col2 leges and universities as members of the center;

3 and

4 ‘‘(B) designate representatives of the addi5 tional land-grant colleges and universities and

6 agriculture industry groups to be additional

7 members of the board of directors.

8 ‘‘(d) PROGRAMS.—Each regional center of excellence

9 shall achieve the purposes of this section through—

10 ‘‘(1) research initiatives focused on issues per11 taining to the specific agricultural commodity;

12 ‘‘(2) teaching initiatives at lead and member

13 land-grant colleges and universities to provide inten14 sive education relating to the specific agricultural

15 commodity; and

16 ‘‘(3) extension initiatives focusing on an inter17 net-based information gateway to provide for relevant

18 information development, warehousing, and delivery.

19 ‘‘(e) FUNDING.—

20 ‘‘(1) IN GENERAL.—Each regional center of ex21 cellence shall be funded through the use of—

22 ‘‘(A) grants made by the Secretary; and

23 ‘‘(B) matching funds provided by land24 grant colleges and universities and agriculture

25 industry groups.
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1 ‘‘(2) PROCESS.—The board of directors of each

2 regional center of excellence shall have the responsi3 bility for submitting grant proposals to the Secretary

4 to carry out the research, education, and extension

5 program activities described in subsection (d).

6 ‘‘(3) TERM OF GRANT.—The term of a grant

7 under this subsection may not exceed 5 years.

8 ‘‘(f) POULTRY SUSTAINABILITY CENTER OF EXCEL9 LENCE.—

10 ‘‘(1) IN GENERAL.—The Secretary shall establish

11 a poultry sustainability center of excellence—

12 ‘‘(A) to identify challenges and develop solu13 tions to enhance the economic and environmental

14 sustainability of the poultry industry in the

15 southwest region of the United States;

16 ‘‘(B) to research, develop, and implement

17 programs—

18 ‘‘(i) to recover energy and other useful

19 products from poultry waste;

20 ‘‘(ii) to identify new technologies for

21 the storage, treatment, and use of animal

22 waste; and

23 ‘‘(iii) to assist the poultry industry in

24 ensuring that emissions of animal waste

25 and discharges of the industry are main-
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1 tained at levels at or below applicable regu2 latory standards;

3 ‘‘(C) to provide technical assistance, train4 ing, applied research, and monitoring to eligible

5 applicants;

6 ‘‘(D) to develop environmentally effective

7 programs in the poultry industry; and

8 ‘‘(E) to collaborate with eligible applicants

9 to work with the Federal Government (including

10 Federal agencies) in the development of conserva11 tion and watershed programs to help private

12 landowners and agricultural producers meet ap13 plicable water quality standards.

14 ‘‘(2) REPORTS.—Not later than 2 years after the

15 date of enactment of this section, and for each fiscal

16 year thereafter, the Secretary shall submit to Congress

17 a report describing—

18 ‘‘(A) each project for which funds are pro19 vided under this subsection; and

20 ‘‘(B) any advances in technology resulting

21 from the implementation of this subsection.

22 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated to carry out this section

24 such sums as are necessary for each of fiscal years 2008

25 through 2012.’’.
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1 SEC. 7040. NATIONAL DROUGHT MITIGATION CENTER.

2 Subtitle K of the National Agricultural Research, Ex3 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

4 et seq.) (as amended by section 7037) is amended by adding

5 at the end the following:

6 ‘‘SEC. 1473G. NATIONAL DROUGHT MITIGATION CENTER.

7 ‘‘(a) IN GENERAL.—The Secretary shall offer to enter

8 into an agreement with the National Drought Mitigation

9 Center, under which the Center shall—

10 ‘‘(1) continue to produce the United States

11 Drought Monitor;

12 ‘‘(2) maintain a clearinghouse and internet por13 tal on drought; and

14 ‘‘(3) develop new drought mitigation and pre15 paredness strategies, responses, models, and meth16 odologies for the agricultural community.

17 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is

18 authorized to be appropriated to carry out this section

19 $5,000,000 for each fiscal year.’’.

20 SEC. 7041. AGRICULTURAL DEVELOPMENT IN THE AMER21 ICAN-PACIFIC REGION.

22 Subtitle K of the National Agricultural Research, Ex23 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

24 et seq.) (as amended by section 7038) is amended by adding

25 at the end the following:
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1 ‘‘SEC. 1473H. AGRICULTURAL DEVELOPMENT IN THE AMER2 ICAN-PACIFIC REGION.

3 ‘‘(a) DEFINITIONS.—In this section:

4 ‘‘(1) AMERICAN-PACIFIC REGION.—The term

5 ‘American-Pacific region’ means the region

6 encompassing—

7 ‘‘(A) American Samoa;

8 ‘‘(B) Guam;

9 ‘‘(C) the Commonwealth of the Northern

10 Mariana Islands;

11 ‘‘(D) the Federated States of Micronesia;

12 ‘‘(E) the Republic of the Marshall Islands;

13 ‘‘(F) the Republic of Palau;

14 ‘‘(G) the State of Hawaii; and

15 ‘‘(H) the State of Alaska.

16 ‘‘(2) CONSORTIUM.—The term ‘consortium’

17 means a collaborative group that—

18 ‘‘(A) is composed of each eligible institution;

19 and

20 ‘‘(B) submits to the Secretary an applica21 tion for a grant under subsection (b)(2).

22 ‘‘(3) ELIGIBLEINSTITUTION.—The term ‘eligible

23 institution’ means a land-grant college or university

24 that is located in the American-Pacific region.

25 ‘‘(b) AGRICULTURAL DEVELOPMENT IN THE AMERICAN

26 PACIFIC GRANTS.—
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1 ‘‘(1) IN GENERAL.—The Secretary may make

2 grants to a consortium of eligible institutions to carry

3 out integrated research, extension, and instruction

4 programs in support of food and agricultural

5 sciences.

6 ‘‘(2) APPLICATION.—To receive a grant under

7 paragraph (1), a consortium of eligible institutions

8 shall submit to the Secretary an application that

9 includes—

10 ‘‘(A) for each eligible institution, a descrip11 tion of each objective, procedure, and proposed

12 use of funds relating to any funds provided by

13 the Secretary to the consortium under paragraph

14 (1); and

15 ‘‘(B) the method of allocation proposed by

16 the consortium to distribute to each eligible insti17 tution any funds provided by the Secretary to

18 the consortium under paragraph (1).

19 ‘‘(3) USEOF FUNDS.—

20 ‘‘(A) IN GENERAL.—An eligible institution

21 that receives funds through a grant under para22 graph (1) shall use the funds—

23 ‘‘(i) to acquire the equipment, instru24 mentation, networking capability, hardware

25 and software, digital network technology,
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1 and infrastructure required to integrate re2 search, extension, and instruction programs

3 in the American-Pacific region;

4 ‘‘(ii) to develop and provide support

5 for conducting research, extension, and in6 struction programs in support of food and

7 agricultural sciences relevant to the Amer8 ican-Pacific region, with special emphasis

9 on—

10 ‘‘(I) the management of pests; and

11 ‘‘(II) the control of the spread of

12 invasive alien species; and

13 ‘‘(iii) to provide leadership develop14 ment to administrators, faculty, and staff of

15 the eligible institution with responsibility

16 for programs relating to agricultural re17 search, extension, and instruction.

18 ‘‘(B) PROHIBITED USES.—An eligible insti19 tution that receives funds through a grant under

20 paragraph (1) may not use the funds for any

21 cost relating to the planning, acquisition, con22 struction, rehabilitation, or repair of any build23 ing or facility of the eligible institution.

24 ‘‘(4) GRANT TERM.—A grant under paragraph

25 (1) shall have a term of not more than 5 years.
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1 ‘‘(5) ADMINISTRATION.—

2 ‘‘(A) AUTHORITY OF SECRETARY.—The Sec3 retary may carry out this section in a manner

4 that recognizes the different needs of, and oppor5 tunities for, each eligible institution.

6 ‘‘(B) ADMINISTRATIVECOSTS.—The Sec7 retary shall use not more than 4 percent of the

8 amount appropriated under subsection (d) for a

9 fiscal year to pay administrative costs incurred

10 in carrying out this section.

11 ‘‘(c) NO EFFECT ON DISTRIBUTION OF FUNDS.—Noth12 ing in this section affects any basis for distribution of funds

13 by a formula in existence on the date of enactment of this

14 section relating to—

15 ‘‘(1) the Federated States of Micronesia;

16 ‘‘(2) the Republic of the Marshall Islands; or

17 ‘‘(3) the Republic of Palau.

18 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated such sums as are nec20 essary to carry out this section for each of fiscal years 2008

21 through 2012.’’.
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1 SEC. 7042. BORLAUG INTERNATIONAL AGRICULTURAL

2 SCIENCE AND TECHNOLOGY FELLOWSHIP

3 PROGRAM.

4 Subtitle K of the National Agricultural Research, Ex5 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

6 et seq.) (as amended by section 7039) is amended by adding

7 at the end the following:

8 ‘‘SEC. 1473I. BORLAUG INTERNATIONAL AGRICULTURAL

9 SCIENCE AND TECHNOLOGY FELLOWSHIP

10 PROGRAM.

11 ‘‘(a) FELLOWSHIP PROGRAM.—

12 ‘‘(1) IN GENERAL.—The Secretary shall establish

13 a fellowship program, to be known as the ‘Borlaug

14 International Agricultural Science and Technology

15 Fellowship Program,’ to provide fellowships for sci16 entific training and study in the United States to in17 dividuals from eligible countries (as described in sub18 section (b)) who specialize in agricultural education,

19 research, and extension.

20 ‘‘(2) PROGRAMS.—The Secretary shall carry out

21 the fellowship program by implementing 3 programs

22 designed to assist individual fellowship recipients,

23 including—

24 ‘‘(A) a graduate studies program in agri25 culture to assist individuals who participate in
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1 graduate agricultural degree training at a

2 United States institution;

3 ‘‘(B) an individual career improvement

4 program to assist agricultural scientists from de5 veloping countries in upgrading skills and un6 derstanding in agricultural science and tech7 nology; and

8 ‘‘(C) a Borlaug agricultural policy executive

9 leadership course to assist senior agricultural

10 policy makers from eligible countries, with an

11 initial focus on individuals from sub-Saharan

12 Africa and the newly independent states of the

13 former Soviet Union.

14 ‘‘(b) ELIGIBLE COUNTRIES.—An eligible country is a

15 developing country, as determined by the Secretary using

16 a gross national income per capita test selected by the Sec17 retary.

18 ‘‘(c) PURPOSEOF FELLOWSHIPS.—A fellowship pro19 vided under this section shall—

20 ‘‘(1) promote food security and economic growth

21 in eligible countries by—

22 ‘‘(A) educating a new generation of agricul23 tural scientists;
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1 ‘‘(B) increasing scientific knowledge and

2 collaborative research to improve agricultural

3 productivity; and

4 ‘‘(C) extending that knowledge to users and

5 intermediaries in the marketplace; and

6 ‘‘(2) shall support—

7 ‘‘(A) training and collaborative research op8 portunities through exchanges for entry level

9 international agricultural research scientists,

10 faculty, and policymakers from eligible countries;

11 ‘‘(B) collaborative research to improve agri12 cultural productivity;

13 ‘‘(C) the transfer of new science and agri14 cultural technologies to strengthen agricultural

15 practice; and

16 ‘‘(D) the reduction of barriers to technology

17 adoption.

18 ‘‘(d) FELLOWSHIP RECIPIENTS.—

19 ‘‘(1) ELIGIBLECANDIDATES.—The Secretary

20 may provide fellowships under this section to individ21 uals from eligible countries who specialize in or have

22 experience in agricultural education, research, exten23 sion, or related fields, including—

24 ‘‘(A) individuals from the public and pri25 vate sectors; and
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1 ‘‘(B) private agricultural producers.

2 ‘‘(2) CANDIDATEIDENTIFICATION.—The Sec3 retary shall use the expertise of United States land

4 grant colleges and universities and similar univer5 sities, international organizations working in agricul6 tural research and outreach, and national agricul7 tural research organizations to help identify program

8 candidates for fellowships under this section from the

9 public and private sectors of eligible countries.

10 ‘‘(e) USEOF FELLOWSHIPS.—A fellowship provided

11 under this section shall be used—

12 ‘‘(1) to promote collaborative programs among

13 agricultural professionals of eligible countries, agri14 cultural professionals of the United States, the inter15 national agricultural research system, and, as appro16 priate, United States entities conducting research;

17 and

18 ‘‘(2) to support fellowship recipients through

19 programs described in subsection (a)(2).

20 ‘‘(f) PROGRAM IMPLEMENTATION.—The Secretary

21 shall provide for the management, coordination, evaluation,

22 and monitoring of the overall Borlaug International Agri23 cultural Science and Technology Fellowship Program and

24 for the individual programs described in subsection (a)(2),

25 except that the Secretary may contract out to 1 or more
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1 collaborating universities the management of 1 or more of

2 the fellowship programs.

3 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated such sums as are nec5 essary to carry out this section, to remain available until

6 expended.’’.

7 SEC. 7043. NEW ERA RURAL TECHNOLOGY PROGRAM.

8 Subtitle K of the National Agricultural Research, Ex9 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

10 et seq.) (as amended by section 7040) is amended by adding

11 at the end the following:

12 ‘‘SEC. 1473J. NEW ERA RURAL TECHNOLOGY PROGRAM.

13 ‘‘(a) DEFINITION OF RURAL COMMUNITY COLLEGE.—

14 In this section, the term ‘rural community college’ means

15 an institution of higher education that—

16 ‘‘(1) admits as regular students individuals

17 who—

18 ‘‘(A) are beyond the age of compulsory

19 school attendance in the State in which the insti20 tution is located; and

21 ‘‘(B) have the ability to benefit from the

22 training offered by the institution, in accordance

23 with criteria established by the Secretary;
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1 ‘‘(2) does not provide an educational program

2 for which it awards a bachelor’s degree or an equiva3 lent degree;

4 ‘‘(3)(A) provides an educational program of not

5 less than 2 years that is acceptable for full credit to6 ward such a degree; or

7 ‘‘(B) offers a 2-year program in engineering,

8 technology, mathematics, or the physical, chemical or

9 biological sciences that is designed to prepare a stu10 dent to work as a technician or at the

11 semiprofessional level in engineering, scientific, or

12 other technological fields requiring the understanding

13 and application of basic engineering, scientific, or

14 mathematical principles of knowledge; and

15 ‘‘(4) is located in a rural area (as defined in sec16 tion 343(a) of the Consolidated Farm and Rural De17 velopment Act (7 U.S.C. 1991(a)).

18 ‘‘(b) PROGRAM.—

19 ‘‘(1) IN GENERAL.—The Secretary shall establish

20 a program, to be known as the ‘New Era Rural Tech21 nology Program’, under which the Secretary shall

22 make grants available for technology development, ap23 plied research, and training to aid in the development

24 of an agriculture-based renewable energy workforce.
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1 ‘‘(2) FIELDS.—In making grants under the pro2 gram, the Secretary shall support the fields of—

3 ‘‘(A) bioenergy;

4 ‘‘(B) pulp and paper manufacturing; and

5 ‘‘(C) agriculture-based renewable energy re6 sources.

7 ‘‘(c) ELIGIBILITY.—To be eligible to receive a grant

8 under this section, an entity shall—

9 ‘‘(1) be a rural community college or advanced

10 technological center (as determined by the Secretary),

11 in existence on the date of the enactment of this sec12 tion, that participates in agricultural or bioenergy re13 search and applied research;

14 ‘‘(2) have a proven record of development and

15 implementation of programs to meet the needs of stu16 dents, educators, business, and industry to supply the

17 agriculture-based, renewable energy, or pulp and

18 paper manufacturing fields with certified technicians,

19 as determined by the Secretary; and

20 ‘‘(3) have the ability to leverage existing partner21 ships and occupational outreach and training pro22 grams for secondary schools, 4-year institutions, and

23 relevant nonprofit organizations.
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1 ‘‘(d) GRANT PRIORITY.—In making grants under this

2 section, the Secretary shall give preference to rural commu3 nity colleges working in partnership—

4 ‘‘(1) to improve information sharing capacity;

5 and

6 ‘‘(2) to maximize the ability of eligible recipients

7 to meet the purposes of this section.

8 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are

9 authorized to be appropriated such sums as are necessary

10 to carry out this section for each of fiscal years 2008

11 through 2012.’’.

12 SEC. 7044. FARM AND RANCH STRESS ASSISTANCE NET13 WORK.

14 Subtitle K of the National Agricultural Research, Ex15 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

16 et seq.) (as amended by section 7041) is amended by adding

17 at the end the following:

18 ‘‘SEC. 1473K. FARM AND RANCH STRESS ASSISTANCE NET19 WORK.

20 ‘‘(a) IN GENERAL.—The Secretary, in cooperation

21 with the Secretary of Health and Human Services, shall

22 establish a network, to be known as the ‘Farm and Ranch

23 Stress Assistance Network’ (referred to in this section as the

24 ‘Network’).
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1 ‘‘(b) PURPOSE.—The purpose the network shall be to

2 provide behavioral health programs to participants in the

3 agricultural sector in the United States.

4 ‘‘(c) GRANTS.—The Secretary, in collaboration with

5 the extension service at the National Institute of Food and

6 Agriculture, shall provide grants on a competitive basis to

7 States and nonprofit organizations for use in carrying out

8 pilot projects to achieve the purpose of the Network.

9 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated such sums as are nec11 essary to carry out this section for each of fiscal years 2008

12 through 2012.’’.

13 SEC. 7045. RURAL ENTREPRENEURSHIP AND ENTERPRISE

14 FACILITATION PROGRAM.

15 Subtitle K of the National Agricultural Research, Ex16 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

17 et seq.) (as amended by section 7042) is amended by adding

18 at the end the following:

19 ‘‘SEC. 1473L. RURAL ENTREPRENEURSHIP AND ENTERPRISE

20 FACILITATION PROGRAM.

21 ‘‘(a) DEFINITION OF REGIONAL RURAL DEVELOPMENT

22 CENTER.—In this section, the term ‘regional rural develop23 ment center’ means—

24 ‘‘(1) the North Central Regional Center for

25 Rural Development (or a designee);
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1 ‘‘(2) the Northeast Regional Center for Rural De2 velopment (or a designee);

3 ‘‘(3) the Southern Rural Development Center (or

4 a designee); and

5 ‘‘(4) the Western Rural Development Center (or

6 a designee).

7 ‘‘(b) PROJECTS.—The Secretary shall carry out re8 search, extension, and education projects to obtain data,

9 convey knowledge, and develop skills through projects that—

10 ‘‘(1) transfer practical, reliable, and timely in11 formation to rural entrepreneurs and rural entrepre12 neurial development organizations concerning busi13 ness management, business planning, microenterprise,

14 marketing, entrepreneurial education and training,

15 and the development of local and regional entrepre16 neurial systems in rural areas and rural commu17 nities;

18 ‘‘(2) provide education, training, and technical

19 assistance to newly-operational and growing rural

20 businesses;

21 ‘‘(3) improve access to diverse sources of capital,

22 such as microenterprise loans and venture capital;

23 ‘‘(4) determine the best methods to train entre24 preneurs with respect to preparing business plans,
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1 recordkeeping, tax rules, financial management, and

2 general business practices;

3 ‘‘(5) promote entrepreneurship among—

4 ‘‘(A) rural youth, minority, and immigrant

5 populations;

6 ‘‘(B) women; and

7 ‘‘(C) low- and moderate-income rural resi8 dents;

9 ‘‘(6) create networks of entrepreneurial support

10 through partnerships among rural entrepreneurs,

11 local business communities, all levels of government,

12 nonprofit organizations, colleges and universities, and

13 other sectors;

14 ‘‘(7) study and facilitate entrepreneurial develop15 ment systems that best align with the unique needs

16 and strengths of particular rural areas and commu17 nities; and

18 ‘‘(8) explore promising strategies for building an

19 integrated system of program delivery to rural entre20 preneurs.

21 ‘‘(c) AGREEMENTS.—To carry out projects under sub22 section (b), the Secretary shall provide grants to—

23 ‘‘(1) land-grant colleges and universities, includ24 ing cooperative extension services, agricultural experi-
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1 ment stations, and regional rural development cen2 ters;

3 ‘‘(2) other colleges and universities;

4 ‘‘(3) community, junior, technical, and voca5 tional colleges and other 2-year institutions of higher

6 education, and post-secondary business and commerce

7 schools;

8 ‘‘(4) elementary schools and secondary schools;

9 ‘‘(5) nonprofit organizations; and

10 ‘‘(6) Federal, State, local, and tribal govern11 mental entities.

12 ‘‘(d) SELECTION AND PRIORITY OF PROJECTS.—

13 ‘‘(1) IN GENERAL.—In selecting projects to be

14 carried out under this section, the Secretary shall take

15 into consideration—

16 ‘‘(A) the relevance of the project to the pur17 poses of this section;

18 ‘‘(B) the appropriateness of the design of the

19 project;

20 ‘‘(C) the likelihood of achieving the objec21 tives of the project; and

22 ‘‘(D) the national or regional applicability

23 of the findings and outcomes of the project.
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1 ‘‘(2) PRIORITY.—In carrying out projects under

2 this section, the Secretary shall give priority to

3 projects that—

4 ‘‘(A) enhance widespread access to entrepre5 neurial education, including access to such edu6 cation in community-based settings for low- and

7 moderate-income entrepreneurs and potential en8 trepreneurs;

9 ‘‘(B) closely coordinate research and edu10 cation activities, including outreach education

11 efforts;

12 ‘‘(C) indicate the manner in which the find13 ings of the project will be made readily usable to

14 rural entrepreneurs and to rural community

15 leaders;

16 ‘‘(D) maximize the involvement and co17 operation of rural entrepreneurs; and

18 ‘‘(E) involve cooperation and partnerships

19 between rural entrepreneurs, nonprofit organiza20 tions, entrepreneurial development organizations,

21 educational institutions at all levels, and govern22 ment agencies at all levels.

23 ‘‘(e) COMPETITIVE BASIS.—Grants under this section

24 shall be awarded on a competitive basis, in accordance with
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1 such criteria as the national administrative council estab2 lished under subsection (j)(1) may establish.

3 ‘‘(f) TERM.—The term of a grant provided under this

4 section shall be not more than 5 years.

5 ‘‘(g) LIMITATION.—Not more than 20 percent of the

6 total amount of grants provided under this section shall be

7 provided to projects in which cooperative extension services

8 are involved as the sole or lead entity of the project.

9 ‘‘(h) DIVERSIFICATION OF RESEARCH, EXTENSION,

10 AND EDUCATION PROJECTS.—The Secretary shall carry out

11 projects under this section in areas that the Secretary deter12 mines to be broadly representative of the diversity of the

13 rural areas of the United States, and of rural entrepreneur14 ship in the United States, including entrepreneurship in15 volving youth, minority populations, microenterprise, and

16 women, with a focus on nonagricultural businesses or food

17 and agriculturally-based businesses, but not direct agri18 culture production.

19 ‘‘(i) ADMINISTRATION.—The Secretary shall admin20 ister projects carried out under this section acting through

21 the Administrator of the National Institute of Food and Ag22 riculture.

23 ‘‘(j) NATIONAL ADMINISTRATIVE COUNCIL.—

24 ‘‘(1) ESTABLISHMENT.—The Secretary shall es25 tablish, in accordance with this subsection, a national
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1 administrative council to assist the Secretary in car2 rying out this section.

3 ‘‘(2) MEMBERSHIP.—The membership of the na4 tional administrative council shall include—

5 ‘‘(A) qualified representatives of entities

6 with demonstrable expertise relating to rural en7 trepreneurship, including representatives of—

8 ‘‘(i) the Cooperative State Research,

9 Education, and Extension Service;

10 ‘‘(ii) the Rural Business-Cooperative

11 Service;

12 ‘‘(iii) the Small Business Administra13 tion;

14 ‘‘(iv) regional rural development cen15 ters;

16 ‘‘(v) nonprofit organizations;

17 ‘‘(vi) regional and State agencies;

18 ‘‘(vii) cooperative extension services;

19 ‘‘(viii) colleges and universities;

20 ‘‘(ix) philanthropic organizations; and

21 ‘‘(x) Indian tribal governments;

22 ‘‘(B) self-employed rural entrepreneurs and

23 owners of rural small businesses;
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1 ‘‘(C) elementary and secondary educators

2 that demonstrate experience in rural entrepre3 neurship; and

4 ‘‘(D) other persons with experience relating

5 to rural entrepreneurship and the impact of

6 rural entrepreneurship on rural communities.

7 ‘‘(3) RESPONSIBILITIES.—In collaboration with

8 the Secretary, the national administrative council es9 tablished under this subsection shall—

10 ‘‘(A) promote the projects carried out under

11 this section;

12 ‘‘(B) establish goals and criteria for the se13 lection of projects under this section;

14 ‘‘(C)(i) appoint a technical committee to

15 evaluate project proposals to be considered by the

16 council; and

17 ‘‘(ii) make recommendations of the technical

18 committee to the Secretary; and

19 ‘‘(D) prepare and make publicly available

20 an annual report relating to each applicable

21 project carried out under this section, including

22 a review of projects carried out during the pre23 ceding year.

24 ‘‘(4) CONFLICT OF INTEREST.—A member of the

25 national administrative council or a technical com-
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1 mittee shall not participate in any determination re2 lating to, or recommendation of, a project proposed to

3 be carried out under this section if the member has

4 had any business interest (including the provision of

5 consulting services) in the project or the organization

6 submitting the application.

7 ‘‘(k) AUTHORIZATION FOR APPROPRIATIONS.—There

8 are authorized to be appropriated such sums as are nec9 essary to carry out this section for each of the fiscal years

10 2008 through 2012.’’.

11 SEC. 7046. SEED DISTRIBUTION.

12 Subtitle K of the National Agricultural Research, Ex13 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

14 et seq.) (as amended by section 7043) is amended by adding

15 at the end the following:

16 ‘‘SEC. 1473M. SEED DISTRIBUTION.

17 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

18 a program, to be known as the ‘seed distribution program’,

19 under which the Secretary shall provide a grant to a non20 profit organization selected under subsection (c) to carry

21 out a seed distribution program to administer and main22 tain the distribution of vegetable seeds donated by commer23 cial seed companies.
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1 ‘‘(b) PURPOSE.—The purpose of the seed distribution

2 program under this section shall be to distribute vegetable

3 seeds donated by commercial seed companies.

4 ‘‘(c) SELECTION OF NONPROFIT ORGANIZATIONS.—

5 ‘‘(1) IN GENERAL.—The nonprofit organization

6 selected to receive a grant under subsection (a) shall

7 demonstrate to the satisfaction of the Secretary that

8 the organization—

9 ‘‘(A) has expertise regarding distribution of

10 vegetable seeds donated by commercial seed com11 panies; and

12 ‘‘(B) has the ability to achieve the purpose

13 of the seed distribution program.

14 ‘‘(2) PRIORITY.—In selecting a nonprofit organi15 zation for purposes of this section, the Secretary shall

16 give priority to a nonprofit organization that, as of

17 the date of selection, carries out an activity to benefit

18 underserved communities, such as communities that

19 experience—

20 ‘‘(A) limited access to affordable fresh vege21 tables;

22 ‘‘(B) a high rate of hunger or food insecu23 rity; or

24 ‘‘(C) severe or persistent poverty.
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1 ‘‘(d) REQUIREMENT.—The nonprofit organization se2 lected under this section shall ensure that seeds donated by

3 commercial seed companies are distributed free-of-charge to

4 appropriate—

5 ‘‘(1) individuals;

6 ‘‘(2) groups;

7 ‘‘(3) institutions;

8 ‘‘(4) governmental and nongovernmental organi9 zations; and

10 ‘‘(5) such other entities as the Secretary may

11 designate.

12 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are

13 authorized to be appropriated such sums as are necessary

14 to carry out this section for each of fiscal years 2008

15 through 2012.’’.

16 SEC. 7047. FARM AND RANCH SAFETY.

17 Subtitle K of the National Agricultural Research, Ex18 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

19 et seq.) (as amended by section 7044) is amended by adding

20 at the end the following:

21 ‘‘SEC. 1473N. FARM AND RANCH SAFETY.

22 ‘‘(a) IN GENERAL.—The Secretary shall establish a

23 program, to be known as the ‘agricultural safety program’,

24 under which the Secretary shall provide grants to eligible
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1 entities to carry out projects to decrease the incidence of

2 injury and death on farms and ranches.

3 ‘‘(b) ELIGIBLE ENTITIES.—To be eligible to receive a

4 grant under this section, an entity shall be—

5 ‘‘(1) a nonprofit organization;

6 ‘‘(2) a land-grant college or university (includ7 ing a cooperative extension service);

8 ‘‘(3) a minority-serving institution;

9 ‘‘(4) a 2-year or 4-year institution of higher edu10 cation; or

11 ‘‘(5) such other entity as the Secretary may des12 ignate.

13 ‘‘(c) ELIGIBLE PROJECTS.—An eligible entity shall use

14 a grant received under this section only to carry out—

15 ‘‘(1) a project at least 1 component of which

16 emphasizes—

17 ‘‘(A) preventative service through on-site

18 farm or ranch safety reviews;

19 ‘‘(B) outreach and dissemination of farm

20 safety research and interventions to agricultural

21 employers, employees, youth, farm and ranch

22 families, seasonal workers, or other individuals;

23 or

24 ‘‘(C) agricultural safety education and

25 training; and
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1 ‘‘(2) other appropriate activities, as determined

2 by the Secretary;

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated such sums as are nec5 essary to carry out this section for each of fiscal years 2008

6 through 2012.’’.

7 SEC. 7048. WOMEN AND MINORITIES IN STEM FIELDS.

8 Subtitle K of the National Agricultural Research, Ex9 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

10 et seq.) (as amended by section 7045) is amended by adding

11 at the end the following:

12 ‘‘SEC. 1473O. WOMEN AND MINORITIES IN STEM FIELDS.

13 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

14 a program under which the Secretary, in coordination with

15 applicable Federal, State, and local programs, shall provide

16 grants to eligible institutions to increase, to the maximum

17 extent practicable, participation by women and underrep18 resented minorities from rural areas (as defined in section

19 343(a) of the Consolidated Farm and Rural Development

20 Act (7 U.S.C. 1991(a))), in science, technology, engineering,

21 and mathematics fields (referred to in this section as

22 ‘STEM fields’).

23 ‘‘(b) ACTIVITIES.—In carrying out the program estab24 lished under subsection (a), the Secretary shall—
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1 ‘‘(1) implement multitrack technology career ad2 vancement training programs and provide related

3 services to engage, and encourage participation by,

4 women and underrepresented minorities in STEM

5 fields;

6 ‘‘(2) develop and administer training programs

7 for educators, career counselors, and industry rep8 resentatives in recruitment and retention strategies to

9 increase and retain women and underrepresented mi10 nority students and job entrants into STEM fields;

11 and

12 ‘‘(3) support education-to-workforce programs for

13 women and underrepresented minorities to provide

14 counseling, job shadowing, mentoring, and internship

15 opportunities to guide participants in the academic,

16 training, and work experience needed for STEM ca17 reers.

18 ‘‘(c) INSTITUTIONS.—

19 ‘‘(1) GRANTS.—The Secretary shall carry out the

20 program under this section at such institutions as the

21 Secretary determines to be appropriate by providing

22 grants, on a competitive basis, to the institutions.

23 ‘‘(2) PRIORITY.—In providing grants under

24 paragraph (1), the Secretary shall give priority, to

25 the maximum extent practicable, to institutions car-
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1 rying out continuing programs funded by the Sec2 retary.

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated such sums as are nec5 essary to carry out this section for each of fiscal years 2008

6 through 2012.’’.

7 SEC. 7049. NATURAL PRODUCTS RESEARCH PROGRAM.

8 Subtitle K of the National Agricultural Research, Ex9 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

10 et seq.) (as amended by section 7046) is amended by adding

11 at the end the following:

12 ‘‘SEC. 1473P. NATURAL PRODUCTS RESEARCH PROGRAM.

13 ‘‘(a) IN GENERAL.—The Secretary shall establish a

14 natural products research program.

15 ‘‘(b) DUTIES.—In carrying out the program estab16 lished under subsection (a), the Secretary shall coordinate

17 research relating to natural products, including—

18 ‘‘(1) research to improve human health and agri19 cultural productivity through the discovery, develop20 ment, and commercialization of pharmaceuticals and

21 agrichemicals from bioactive natural products, in22 cluding products from plant, marine, and microbial

23 sources;

24 ‘‘(2) research to characterize the botanical

25 sources, production, chemistry, and biological prop-
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1 erties of plant-derived natural products important for

2 agriculture and medicine; and

3 ‘‘(3) other research priorities identified by the

4 Secretary.

5 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are

6 authorized to be appropriated to carry out this section such

7 sums as are necessary for each of fiscal years 2008 through

8 2012.’’.

9 SEC. 7050. INTERNATIONAL ANTI-HUNGER AND NUTRITION

10 PROGRAM.

11 Subtitle K of the National Agricultural Research, Ex12 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

13 et seq.) (as amended by section 7047) is amended by adding

14 at the end the following:

15 ‘‘SEC. 1473Q. INTERNATIONAL ANTI-HUNGER AND NUTRI16 TION.

17 ‘‘(a) IN GENERAL.—The Secretary shall provide sup18 port to established nonprofit organizations that focus on

19 promoting research concerning—

20 ‘‘(1) anti-hunger and improved nutrition efforts

21 internationally; and

22 ‘‘(2) increased quantity, quality, and avail23 ability of food.
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1 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is

2 authorized to be appropriated to carry out this section

3 $1,000,000 for each of fiscal years 2008 through 2012.’’.

4 SEC. 7051. CONSORTIUM FOR AGRICULTURAL AND RURAL

5 TRANSPORTATION RESEARCH AND EDU6 CATION.

7 Subtitle K of the National Agricultural Research, Ex8 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

9 et seq.) (as amended by section 7048) is amended by adding

10 at the end the following:

11 ‘‘SEC. 1473R. CONSORTIUM FOR AGRICULTURAL AND RURAL

12 TRANSPORTATION RESEARCH AND EDU13 CATION.

14 ‘‘(a) IN GENERAL.—Subject to the availability of ap15 propriations to carry out this section, the Secretary, acting

16 through the Agricultural Marketing Service, shall award

17 grants to the Consortium for Agricultural and Rural Trans18 portation Research and Education for the purpose of fund19 ing prospective, independent research, education, and tech20 nology transfer activities.

21 ‘‘(b) ACTIVITIES.—Activities funded with grants made

22 under subsection (a) shall focus on critical rural and agri23 cultural transportation and logistics issues facing agricul24 tural producers and other rural businesses, including—
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1 ‘‘(1) issues relating to the relationship between

2 renewable fuels and transportation;

3 ‘‘(2) export promotion issues based on transpor4 tation strategies for rural areas;

5 ‘‘(3) transportation and rural business facility

6 planning and location issues;

7 ‘‘(4) transportation management and supply

8 chain management support issues;

9 ‘‘(5) rural road planning and finance issues;

10 ‘‘(6) advanced transportation technology appli11 cations in a rural area; and

12 ‘‘(7) creation of a national agricultural mar13 keting and rural business transportation database.

14 ‘‘(c) REPORT.—Not later than September 30, 2011, the

15 Secretary shall submit to the Committee on Agriculture of

16 the House of Representatives and the Committee on Agri17 culture, Nutrition, and Forestry of the Senate a report

18 that—

19 ‘‘(1) describes the activities of Consortium for

20 Agricultural and Rural Transportation Research and

21 Education that have been funded through grants

22 made under this section; and

23 ‘‘(2) contains recommendations about the grant

24 program.

25 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There is authorized to be ap2 propriated to carry out this section $19,000,000 for

3 each of fiscal years 2008 through 2012.

4 ‘‘(2) ADMINISTRATIVE EXPENSES.—Of the total

5 amount made available under paragraph (1), not

6 more than $1,000,000 may be used by the Agricul7 tural Marketing Service for administrative expenses

8 incurred in carrying out this section.’’.

9 SEC. 7052. REGIONAL CENTERS OF EXCELLENCE IN FOOD

10 SYSTEMS VETERINARY MEDICINE.

11 Subtitle K of the National Agricultural Research, Ex12 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3310

13 et seq.) (as amended by section 7049) is amended by adding

14 at the end the following:

15 ‘‘SEC. 1473S. REGIONAL CENTERS OF EXCELLENCE IN FOOD

16 SYSTEMS VETERINARY MEDICINE.

17 ‘‘(a) DEFINITION OF ELIGIBLE SCHOOL OF VETERI18 NARY MEDICINE.—In this section, the term ‘eligible school

19 of veterinary medicine’ means a school of veterinary medi20 cine that is—

21 ‘‘(1) a public or other nonprofit entity; and

22 ‘‘(2) accredited by an entity that is approved for

23 such purpose by the Department of Education.

24 ‘‘(b) GRANT PROGRAM.—The Secretary shall make

25 grants to eligible schools of veterinary medicine to assist
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1 the eligible schools of veterinary medicine in supporting

2 centers of emphasis in food systems veterinary medicine.

3 ‘‘(c) APPLICATION PROCESS.—

4 ‘‘(1) APPLICATION REQUIREMENT.—To be eligible

5 to receive a grant from the Secretary under subsection

6 (b), an eligible school of veterinary medicine shall

7 submit to the Secretary an application at such time,

8 in such manner, and containing such information as

9 the Secretary may require.

10 ‘‘(2) CONSIDERATION OF APPLICATIONS.—The

11 Secretary shall establish procedures to ensure that—

12 ‘‘(A) each application submitted under

13 paragraph (1) is rigorously reviewed; and

14 ‘‘(B) grants are competitively awarded

15 based on—

16 ‘‘(i) the ability of the eligible school of

17 veterinary medicine to provide a com18 prehensive educational experience for stu19 dents with particular emphasis on the spe20 cies of food animal for which the eligible

21 school of veterinary medicine is applying

22 that is used for food production (including

23 food animal veterinary medicine, food sup24 ply bioterrorism prevention and surveil-
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1 lance, food-safety, and the improvement of

2 the quality of the environment);

3 ‘‘(ii) the ability of the eligible school of

4 veterinary medicine to increase capacity

5 with respect to research on the species of

6 food animal for which the eligible school of

7 veterinary medicine is applying that is

8 used for food production; and

9 ‘‘(iii) any other consideration that the

10 Secretary determines to be appropriate.

11 ‘‘(3) PREFERENCE FOR CONSORTIUM.—In mak12 ing grants under subsection (b), the Secretary shall

13 give preference to eligible schools of veterinary medi14 cine that participate in interinstitutional agreements

15 that—

16 ‘‘(A) cover issues relating to residency, tui17 tion, or fees; and

18 ‘‘(B) consist of more than 1 other—

19 ‘‘(i) school of veterinary medicine;

20 ‘‘(ii) school of public health;

21 ‘‘(iii) school of agriculture; or

22 ‘‘(iv) appropriate entity that carries

23 out education and research activities with

24 respect to food production systems, as deter25 mined by the Secretary.
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1 ‘‘(d) REQUIRED USEOF FUNDS.—The Secretary may

2 not make a grant to an eligible school of veterinary medi3 cine under subsection (b) unless the eligible school of veteri4 nary medicine agrees to use the grant funds—

5 ‘‘(1) to develop a competitive student applicant

6 pool through linkages with other appropriate schools

7 of veterinary medicine, as determined by the Sec8 retary;

9 ‘‘(2) to improve the capacity of the eligible school

10 of veterinary medicine—

11 ‘‘(A) to train, recruit, and retain faculty;

12 ‘‘(B) to pay such stipends and fellowships

13 as the Secretary determines to be appropriate in

14 areas of research relating to—

15 ‘‘(i) food animal medicine; and

16 ‘‘(ii) food-safety and defense; and

17 ‘‘(C) to enhance the quality of the environ18 ment;

19 ‘‘(3) to carry out activities to improve the infor20 mation resources, curriculum, and clinical education

21 of students of the eligible school of veterinary medi22 cine with respect to—

23 ‘‘(A) food animal veterinary medicine; and

24 ‘‘(B) food-safety;
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1 ‘‘(4) to facilitate faculty and student research on

2 health issues that—

3 ‘‘(A) affect—

4 ‘‘(i) food-producing animals; and

5 ‘‘(ii) food-safety; and

6 ‘‘(B) enhance the environment;

7 ‘‘(5) to provide stipends for students to offset

8 costs relating to travel, tuition, and other expenses as9 sociated with attending the eligible school of veteri10 nary medicine; and

11 ‘‘(6) for any other purpose that the Secretary de12 termines to be appropriate.

13 ‘‘(e) PERIOD OF GRANTS.—

14 ‘‘(1) IN GENERAL.—Subject to paragraph (2), an

15 eligible school of veterinary medicine that receives

16 funds through a grant under subsection (b) shall re17 ceive funds under the grant for not more than 5 years

18 after the date on which the grant was first provided.

19 ‘‘(2) CONDITIONS RELATING TO GRANT FUNDS.—

20 Funds provided to an eligible school of veterinary

21 medicine through a grant under subsection (b) shall

22 be subject to—

23 ‘‘(A) the annual approval of the Secretary;

24 and

25 ‘‘(B) the availability of appropriations.
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1 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated such sums as are necessary

3 to carry out this section for each of fiscal years 2008

4 through 2012.’’.

5 Subtitle B—Food, Agriculture, Con6 servation, and Trade Act of 1990

7 SEC. 7101. NATIONAL GENETIC RESOURCES PROGRAM.

8 (a) IN GENERAL.—Section 1632 of the Food, Agri9 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

10 5841) is amended—

11 (1) by striking subsection (b) and inserting the

12 following:

13 ‘‘(b) PURPOSE.—The program is established for the

14 purpose of—

15 ‘‘(1) maintaining and enhancing a program pro16 viding for the collection, preservation, and dissemina17 tion of plant, animal, and microbial genetic material

18 of importance to food and agriculture production in

19 the United States; and

20 ‘‘(2) undertaking long-term research on plant

21 and animal breeding and disease resistance.’’; and

22 (2) in subsection (d)—

23 (A) in paragraph (5), by striking ‘‘and’’ at

24 the end;
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1 (B) by redesignating paragraph (6) as

2 paragraph (7); and

3 (C) by inserting after paragraph (5) the fol4 lowing:

5 ‘‘(6) in conjunction with national programs for

6 plant and animal genetic resources, undertake long7 term research on plant and animal breeding, includ8 ing the development of varieties adapted to sustain9 able and organic farming systems, and disease resist10 ance; and’’.

11 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

12 1635(b) of the Food, Agriculture, Conservation, and Trade

13 Act of 1990 (7 U.S.C. 5844(b)) is amended by striking

14 ‘‘2007’’ and inserting ‘‘2012’’.

15 SEC. 7102. HIGH-PRIORITY RESEARCH AND EXTENSION INI16 TIATIVES.

17 Section 1672 of the Food, Agriculture, Conservation,

18 and Trade Act of 1990 (7 U.S.C. 5925) is amended—

19 (1) in subsection (e), by adding at the end the

20 following:

21 ‘‘(46) COLONY COLLAPSEDISORDER AND POLLI22 NATOR RESEARCH PROGRAM.—Research and extension

23 grants may be made to—

24 ‘‘(A) survey and collect data on bee colony

25 production and health;
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1 ‘‘(B) investigate pollinator biology, immu2 nology, ecology, genomics, and bioinformatics;

3 ‘‘(C) conduct research on various factors

4 that may be contributing to or associated with

5 colony collapse disorder, and other serious

6 threats to the health of honey bees and other pol7 linators, including—

8 ‘‘(i) parasites and pathogens of polli9 nators; and

10 ‘‘(ii) the sublethal effects of insecticides,

11 herbicides, and fungicides on honey bees

12 and native and managed pollinators;

13 ‘‘(D) develop mitigative and preventative

14 measures to improve native and managed polli15 nator health; and

16 ‘‘(E) promote the health of honey bees and

17 native pollinators through habitat conservation

18 and best management practices.

19 ‘‘(47) MARINESHRIMP FARMING PROGRAM.—Re20 search and extension grants may be made to establish

21 a research program to advance and maintain a do22 mestic shrimp farming industry in the United States.

23 ‘‘(48) CRANBERRY RESEARCH PROGRAM.—Re24 search and extension grants may be made to study

25 new technologies to assist cranberry growers in com-
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1 plying with Federal and State environmental regula2 tions, increase cranberry production, develop new

3 growing techniques, establish more efficient growing

4 methodologies, and educate farmers about sustainable

5 growth practices.

6 ‘‘(49) TURFGRASS RESEARCH INITIATIVE.—Re7 search and extension grants may be made to study the

8 production of turfgrass (including the use of water,

9 fertilizer, pesticides, fossil fuels, and machinery for

10 turf establishment and maintenance) and environ11 mental protection and enhancement relating to

12 turfgrass production.

13 ‘‘(50) PESTICIDE SAFETY RESEARCH INITIA14 TIVE.—Research grants may be made to study pes15 ticide safety for migrant and seasonal agricultural

16 workers, including research on increased risks of can17 cer or birth defects among migrant or seasonal farm18 workers and their children, identification of objective

19 biological indicators, and development of inexpensive

20 clinical tests to enable clinicians to diagnose over21 exposure to pesticides, and development of field-level

22 tests to determine when pesticide-treated fields are

23 safe to reenter to perform hand labor activities.
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1 ‘‘(51) SWINEGENOMEPROJECT.—Research

2 grants may be made under this section to conduct

3 swine genome research and to map the swine genome.

4 ‘‘(52) HIGH PLAINS AQUIFER REGION.—Research

5 and extension grants may be made to carry out inter6 disciplinary research relating to diminishing water

7 levels and increased demand for water in the High

8 Plains aquifer region encompassing the States of Col9 orado, Kansas, Nebraska, New Mexico, Oklahoma,

10 South Dakota, Texas, and Wyoming.

11 ‘‘(53) CELLULOSIC FEEDSTOCK TRANSPORTATION

12 AND DELIVERY INITIATIVE.—Research and extension

13 grants may be made to study new technologies for the

14 economic post-harvest densification, handling, trans15 portation, and delivery of cellulosic feedstocks for bio16 energy conversion.

17 ‘‘(54) DEER INITIATIVE.—Research and exten18 sion grants may be made to support collaborative re19 search focusing on the development of viable strategies

20 for the prevention, diagnosis, and treatment of infec21 tious, parasitic, and toxic diseases of farmed deer and

22 the mapping of the deer genome.

23 ‘‘(55) PASTURE-BASED BEEF SYSTEMS FOR AP24 PALACHIA RESEARCH INITIATIVE.—Research and ex-
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1 tension grants may be made to land-grant

2 institutions—

3 ‘‘(A) to study the development of forage se4 quences and combinations for cow-calf, heifer de5 velopment, stocker, and finishing systems;

6 ‘‘(B) to deliver optimal nutritive value for

7 efficient production of cattle for pasture fin8 ishing;

9 ‘‘(C) to optimize forage systems to produce

10 pasture finished beef that is acceptable to con11 sumers;

12 ‘‘(D) to develop a 12-month production and

13 marketing model cycle for forage-fed beef; and

14 ‘‘(E) to assess the effect of forage quality on

15 reproductive fitness and related measures.

16 ‘‘(56) SUSTAINABLEAGRICULTURAL PRODUCTION

17 FOR THE ENVIRONMENT.—Research and extension

18 grants may be made to—

19 ‘‘(A) field and laboratory studies that exam20 ine the ecosystem from gross to minute scales;

21 ‘‘(B) conduct projects that explore the future

22 environmental ramifications of sustainable agri23 cultural practices; and

24 ‘‘(C) to assess the effect of forage quality on

25 reproductive fitness and related measures.
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1 ‘‘(57) BIOMASS-DERIVED ENERGY RESOURCES.—

2 Research and extension grants may be made to—

3 ‘‘(A) study plant cell wall structure and

4 function and the use of plant biotechnology to

5 produce industrial enzymes; and

6 ‘‘(B) conduct projects that develop renew7 able, plant biomass-derived energy resources

8 using the technology described in subparagraph

9 (A).

10 ‘‘(58) BRUCELLOSIS CONTROL AND ERADICATION;

11 BIGHORN AND DOMESTIC SHEEP DISEASE MECHA12 NISMS.—Research and extension grants may be made

13 available—

14 ‘‘(A) for the conduct of research relating to

15 the development of vaccines and vaccine delivery

16 systems to effectively control and eliminate bru17 cellosis in wildlife;

18 ‘‘(B) to assist with the controlling of the

19 spread of brucellosis from wildlife to domestic

20 animals in the greater Yellowstone area; and

21 ‘‘(C) to conduct research relating to the

22 health status (including the presence of infectious

23 diseases) of bighorn and domestic sheep under

24 range conditions.’’; and
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1 (2) in subsection (h), by striking ‘‘2007’’ and in2 serting ‘‘2012, of which $20,000,000 shall be used for

3 each fiscal year to make grants described in sub4 section (e)(46)’’.

5 SEC. 7103. NUTRIENT MANAGEMENT RESEARCH AND EX6 TENSION INITIATIVE.

7 Section 1672A of the Food, Agriculture, Conservation,

8 and Trade Act of 1990 (7 U.S.C. 5925a) is amended—

9 (1) by redesignating subsection (g) as subsection

10 (f); and

11 (2) in subsection (f) (as so redesignated), by

12 striking ‘‘2007’’ and inserting ‘‘2012’’.

13 SEC. 7104. ORGANIC AGRICULTURE RESEARCH AND EXTEN14 SION INITIATIVE.

15 Section 1672B of the Food, Agriculture, Conservation,

16 and Trade Act of 1990 (7 U.S.C. 5925b) is amended by

17 striking subsection (e) and inserting the following:

18 ‘‘(e) FUNDING.—Of the funds of the Commodity Credit

19 Corporation, the Secretary shall use to carry out this sec20 tion $16,000,000 for each of fiscal years 2008 through 2012,

21 to remain available until expended.’’.
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1 SEC. 7105. AGRICULTURAL TELECOMMUNICATIONS PRO2 GRAM.

3 Section 1673(h) of the Food, Agriculture, Conserva4 tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amended

5 by striking ‘‘2007’’ and inserting ‘‘2012’’.

6 SEC. 7106. ASSISTIVE TECHNOLOGY PROGRAM FOR FARM7 ERS WITH DISABILITIES.

8 Section 1680(c)(1) of the Food, Agriculture, Conserva9 tion, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is

10 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

11 SEC. 7107. NATIONAL RURAL INFORMATION CENTER

12 CLEARINGHOUSE.

13 Section 2381(e) of the Food, Agriculture, Conservation,

14 and Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by

15 striking ‘‘2007’’ and inserting ‘‘2012’’.

16 Subtitle C—Agricultural Research,

17 Extension, and Education Re18 form Act of 1998

19 SEC. 7201. INITIATIVE FOR FUTURE AGRICULTURE AND

20 FOOD SYSTEMS.

21 (a) FUNDING.—Section 401(b) of the Agricultural Re22 search, Extension, and Education Reform Act of 1998 (7

23 U.S.C. 7621(b)) is amended—

24 (1) by striking paragraph (1) and inserting the

25 following:
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1 ‘‘(1) IN GENERAL.—Not later than 30 days after

2 the date of enactment of the Food and Energy Secu3 rity Act of 2007, the Secretary of the Treasury shall

4 transfer $45,000,000 to the Account.’’; and

5 (2) by striking paragraph (3) and inserting the

6 following:

7 ‘‘(3) OTHER FUNDING.—

8 ‘‘(A) AUTHORIZATION OF APPROPRIA9 TIONS.—There is authorized to be appropriated

10 to carry out this section $200,000,000 for each of

11 fiscal years 2008 through 2012.

12 ‘‘(B) SHORTAGEOF FUNDS.—Notwith13 standing any other provision of law, during any

14 year for which funds are not made available

15 under this subsection, the Secretary shall use not

16 less than 80 percent of the funds made available

17 for competitive mission-linked systems research

18 grants under section 2(b)(10)(B) of the Competi19 tive, Special, and Facilities Research Grant Act

20 (7 U.S.C. 450i(b)(10)(B)) to carry out a com21 petitive grant program under the same terms

22 and conditions as are provided under this sec23 tion.’’.
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1 (b) PURPOSES.—Section 401(c) of the Agricultural Re2 search, Extension, and Education Reform Act of 1998 (7

3 U.S.C. 7621(c)) is amended—

4 (1) in paragraph (1)(D), by striking ‘‘policy’’;

5 and

6 (2) in paragraph (2)—

7 (A) by striking subparagraphs (A) and (D);

8 (B) by redesignating subparagraphs (B),

9 (C), (E), and (F) as subparagraphs (A), (B),

10 (F), and (G), respectively;

11 (C) by inserting after subparagraph (B) the

12 following:

13 ‘‘(C) sustainable and renewable agriculture14 based energy production options and policies;

15 ‘‘(D) environmental services and outcome16 based conservation programs and markets;

17 ‘‘(E) agricultural and rural entrepreneur18 ship and business and community development,

19 including farming and ranching opportunities

20 for beginning farmers or ranchers;’’; and

21 (D) in subparagraph (F) (as redesignated

22 by subparagraph (B))—

23 (i) by inserting ‘‘and environmental’’

24 after ‘‘natural resource’’; and
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1 (ii) by inserting ‘‘agro-ecosystems and’’

2 after ‘‘including’’; and

3 (E) in subparagraph (G) (as redesignated

4 by subparagraph (B))—

5 (i) by striking ‘‘including the viabil6 ity’’ and inserting the following:

7 ‘‘including—

8 ‘‘(i) the viability’’; and

9 (ii) by striking ‘‘operations.’’ and in10 serting the following: ‘‘operations;

11 ‘‘(ii) farm transition options for retir12 ing farmers or ranchers; and

13 ‘‘(iii) farm transfer and entry alter14 natives for beginning or socially-disadvan15 taged farmers or ranchers.’’.

16 SEC. 7202. PARTNERSHIPS FOR HIGH-VALUE AGRICUL17 TURAL PRODUCT QUALITY RESEARCH.

18 Section 402(g) of the Agricultural Research, Exten19 sion, and Education Reform Act of 1998 (7 U.S.C. 7622(g))

20 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

21 SEC. 7203. PRECISION AGRICULTURE.

22 Section 403(i)(1) of the Agricultural Research, Exten23 sion, and Education Reform Act of 1998 (7 U.S.C.

24 7623(i)(1)) is amended by striking ‘‘2007’’ and inserting

25 ‘‘2012’’.
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1 SEC. 7204. BIOBASED PRODUCTS.

2 (a) PILOT PROJECT.—Section 404(e)(2) of the Agricul3 tural Research, Extension, and Education Reform Act of

4 1998 (7 U.S.C. 7624(e)(2)) is amended by striking ‘‘2007’’

5 and inserting ‘‘2012’’.

6 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

7 404(h) of the Agricultural Research, Extension, and Edu8 cation Reform Act of 1998 (7 U.S.C. 7624(h)) is amended

9 by striking ‘‘2007’’ and inserting ‘‘2012’’.

10 SEC. 7205. THOMAS JEFFERSON INITIATIVE FOR CROP DI11 VERSIFICATION.

12 Section 405(h) of the Agricultural Research, Exten13 sion, and Education Reform Act of 1998 (7 U.S.C. 7625(h))

14 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

15 SEC. 7206. INTEGRATED RESEARCH, EDUCATION, AND EX16 TENSION COMPETITIVE GRANTS PROGRAM.

17 Section 406(f) of the Agricultural Research, Extension,

18 and Education Reform Act of 1998 (7 U.S.C. 7626(f)) is

19 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

20 SEC. 7207. SUPPORT FOR RESEARCH REGARDING DISEASES

21 OF WHEAT, TRITICALE, AND BARLEY CAUSED

22 BY FUSARIUM GRAMINEARUM OR BY

23 TILLETIA INDICA.

24 Section 408(e) of the Agricultural Research, Extension,

25 and Education Reform Act of 1998 (7 U.S.C. 7628(e)) is

26 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
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1 SEC. 7208. BOVINE JOHNE’S DISEASE CONTROL PROGRAM.

2 Section 409(b) of the Agricultural Research, Exten3 sion, and Education Reform Act of 1998 (7 U.S.C. 7629(b))

4 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

5 SEC. 7209. GRANTS FOR YOUTH ORGANIZATIONS.

6 Section 410(c) of the Agricultural Research, Extension,

7 and Education Reform Act of 1998 (7 U.S.C. 7630(c)) is

8 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

9 SEC. 7210. AGRICULTURAL BIOTECHNOLOGY RESEARCH

10 AND DEVELOPMENT FOR DEVELOPING COUN11 TRIES.

12 Section 411(c) of the Agricultural Research, Extension,

13 and Education Reform Act of 1998 (7 U.S.C. 7631(c)) is

14 amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

15 SEC. 7211. SPECIALTY CROP RESEARCH INITIATIVE.

16 Title IV of the Agricultural Research, Extension, and

17 Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is

18 amended by adding at the end the following:

19 ‘‘SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

20 ‘‘(a) DEFINITIONS.—In this section:

21 ‘‘(1) INITIATIVE.—The term ‘Initiative’ means

22 the specialty crop research initiative established by

23 subsection (b).

24 ‘‘(2) SPECIALTY CROP.—The term ‘specialty

25 crop’ has the meaning given the term in section 3 of
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1 the Specialty Crops Competitiveness Act of 2004 (7

2 U.S.C. 1621 note; Public Law 108–465).

3 ‘‘(b) ESTABLISHMENT.—There is established within

4 the Department a specialty crop research initiative.

5 ‘‘(c) PURPOSE.—The purpose of the Initiative shall be

6 to address the critical needs of the specialty crop industry

7 by providing science-based tools to address needs of specific

8 crops and regions, including—

9 ‘‘(1) fundamental and applied work in plant

10 breeding, genetics, and genomics to improve crop

11 characteristics, such as—

12 ‘‘(A) product appearance, quality, taste,

13 yield, and shelf life;

14 ‘‘(B) environmental responses and toler15 ances;

16 ‘‘(C) plant-nutrient uptake efficiency result17 ing in improved nutrient management;

18 ‘‘(D) pest and disease management, includ19 ing resilience to pests and diseases resulting in

20 reduced application management strategies; and

21 ‘‘(E) enhanced phytonutrient content;

22 ‘‘(2) efforts to prevent, identify, control, or eradi23 cate invasive species;

24 ‘‘(3) methods of improving agricultural produc25 tion by developing more technologically-efficient and
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1 effective applications of water, nutrients, and pes2 ticides to reduce energy use;

3 ‘‘(4) new innovations and technology to enhance

4 mechanization and reduce reliance on labor;

5 ‘‘(5) methods of improving production efficiency,

6 productivity, sustainability, and profitability over the

7 long term;

8 ‘‘(6) methods to prevent, control, and respond to

9 human pathogen contamination of specialty crops, in10 cluding fresh-cut produce;

11 ‘‘(7) methods of improving the supply and effec12 tiveness of pollination for specialty crop production;

13 and

14 ‘‘(8) efforts relating to optimizing the production

15 of organic specialty crops.

16 ‘‘(d) ELIGIBLE ENTITIES.—The Secretary may carry

17 out the Initiative through—

18 ‘‘(1) Federal agencies;

19 ‘‘(2) national laboratories;

20 ‘‘(3) institutions of higher education;

21 ‘‘(4) research institutions and organizations;

22 ‘‘(5) private organizations and corporations;

23 ‘‘(6) State agricultural experiment stations; and

24 ‘‘(7) individuals.
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1 ‘‘(e) RESEARCH PROJECTS.—In carrying out this sec2 tion, the Secretary may—

3 ‘‘(1) carry out research; and

4 ‘‘(2) award grants on a competitive basis.

5 ‘‘(f) PRIORITIES.—In making grants under this sec6 tion, the Secretary shall provide a higher priority to

7 projects that—

8 ‘‘(1) are multistate, multi-institutional, or mul9 tidisciplinary; and

10 ‘‘(2) include explicit mechanisms to commu11 nicate usable results to producers and the public.

12 ‘‘(g) FUNDING.—Of the funds of the Commodity Credit

13 Corporation, the Secretary shall use to carry out this sec14 tion $16,000,000 for each of fiscal years 2008 through 2012,

15 to remain available until expended.’’.

16 SEC. 7212. OFFICE OF PEST MANAGEMENT POLICY.

17 (a) IN GENERAL.—Section 614(b) of the Agricultural

18 Research, Extension, and Education Reform Act of 1998

19 (7 U.S.C. 7653(b)) is amended—

20 (1) in the matter preceding paragraph (1), by

21 striking ‘‘Department’’ and inserting ‘‘Office of the

22 Chief Economist’’;

23 (2) in paragraph (1), by striking ‘‘the develop24 ment and coordination’’ and inserting ‘‘the develop25 ment, coordination, and representation’’; and
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1 (3) in paragraph (3), by striking ‘‘assisting

2 other agencies of the Department in fulfilling their’’

3 and inserting ‘‘enabling the Secretary to fulfill the

4 statutory’’.

5 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

6 614(f) of the Agricultural Research, Extension, and Edu7 cation Reform Act of 1998 (7 U.S.C. 7653(f)) is amended

8 by striking ‘‘2007’’ and inserting ‘‘2012’’.

9 SEC. 7213. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE

10 PROGRAM.

11 Section 604 of the Agricultural Research, Extension,

12 and Education Reform Act of 1998 (7 U.S.C. 7642) is

13 amended by adding at the end the following:

14 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated to carry out this section

16 $2,500,000 for each of fiscal years 2008 through 2012.’’.

17 Subtitle D—Other Laws

18 SEC. 7301. CRITICAL AGRICULTURAL MATERIALS ACT.

19 Section 16(a) of the Critical Agricultural Materials

20 Act (7 U.S.C. 178n(a)) is amended by striking ‘‘2007’’ and

21 inserting ‘‘2012’’.

22 SEC. 7302. EQUITY IN EDUCATIONAL LAND-GRANT STATUS

23 ACT OF 1994.

24 (a) DEFINITION OF 1994 INSTITUTIONS.—Section 532

25 of the Equity in Educational Land-Grant Status Act of
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1 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended

2 by adding at the end the following:

3 ‘‘(34) Ilisagvik College.’’.

4 (b) ENDOWMENT FOR 1994 INSTITUTIONS.—Section

5 533(b) of the Equity in Educational Land-Grant Status

6 Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) is

7 amended in the first sentence by striking ‘‘2007’’ and in8 serting ‘‘2012’’.

9 (c) INSTITUTIONAL CAPACITY BUILDING GRANTS.—

10 Section 535 of the Equity in Educational Land-Grant Sta11 tus Act of 1994 (7 U.S.C. 301 note; Public Law 103–382)

12 is amended by striking ‘‘2007’’ each place it appears and

13 inserting ‘‘2012’’.

14 (d) RESEARCH GRANTS.—Section 536(c) of the Equity

15 in Educational Land-Grant Status Act of 1994 (7 U.S.C.

16 301 note; Public Law 103–382) is amended in the first sen17 tence by striking ‘‘2007’’ and inserting ‘‘2012’’.

18 SEC. 7303. SMITH-LEVER ACT.

19 (a) CHILDREN, YOUTH, AND FAMILIES EDUCATION

20 AND RESEARCH NETWORK PROGRAM.—Section 3 of the

21 Smith-Lever Act (7 U.S.C. 343) is amended by adding at

22 the end the following:

23 ‘‘(k) CHILDREN, YOUTH, AND FAMILIES EDUCATION

24 AND RESEARCH NETWORK PROGRAM.—Notwithstanding

25 section 3(d)(2) of the Act of May 8, 1914 (7 U.S.C.
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1 343(d)(2)), in carrying out the children, youth, and fami2 lies education and research network program using

3 amounts made available under subsection (d), the Secretary

4 shall include 1890 Institutions (as defined in section 2 of

5 the Agricultural Research, Extension, and Education Re6 form Act of 1998 (7 U.S.C. 7601)) as eligible program ap7 plicants and participants.’’.

8 (b) ELIMINATION OF THE GOVERNOR’S REPORT RE9 QUIREMENT FOR EXTENSION ACTIVITIES.—Section 5 of the

10 Smith-Lever Act (7 U.S.C. 345) is amended by striking the

11 third sentence.

12 SEC. 7304. HATCH ACT OF 1887.

13 (a) DISTRICT OF COLUMBIA.—Section 3(d)(4) of the

14 Hatch Act of 1887 (7 U.S.C. 361c(d)(4)) is amended—

15 (1) in the paragraph heading, by inserting ‘‘AND

16 THEDISTRICT OF COLUMBIA’’ after ‘‘AREAS’’;

17 (2) in subparagraph (A)—

18 (A) by inserting ‘‘and the District of Co19 lumbia’’ after ‘‘United States’’; and

20 (B) by inserting ‘‘and the District of Co21 lumbia’’ after ‘‘respectively,’’; and

22 (3) in subparagraph (B), by inserting ‘‘or the

23 District of Columbia’’ after ‘‘area’’.

24 (b) ELIMINATION OF PENALTY MAIL AUTHORITIES.—
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1 (1) IN GENERAL.—Section 6 of the Hatch Act of

2 1887 (7 U.S.C. 361f) is amended in the first sentence

3 by striking ‘‘under penalty indicia:’’ and all that fol4 lows through the end of the sentence and inserting a

5 period.

6 (2) CONFORMING AMENDMENTS IN OTHER

7 LAWS.—

8 (A) NATIONAL AGRICULTURAL RESEARCH,

9 EXTENSION, AND TEACHING POLICY ACT OF

10 1977.—

11 (i) Section 1444(f) of the National Ag12 ricultural Research, Extension, and Teach13 ing Policy Act of 1977 (7 U.S.C. 3221(f)) is

14 amended by striking ‘‘under penalty indi15 cia:’’ and all that follows through the end of

16 the sentence and inserting a period.

17 (ii) Section 1445(e) of the National

18 Agricultural Research, Extension, and

19 Teaching Policy Act of 1977 (7 U.S.C.

20 3222(e)) is amended by striking ‘‘under

21 penalty indicia:’’ and all that follows

22 through the end of the sentence and insert23 ing a period.

24 (B) OTHER PROVISIONS.—Section 3202(a)

25 of title 39, United States Code, is amended—
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1 (i) in paragraph (1)—

2 (I) in subparagraph (D), by add3 ing ‘‘and’’ at the end;

4 (II) in subparagraph (E), by

5 striking ‘‘sections; and’’ and inserting

6 ‘‘sections.’’; and

7 (III) by striking subparagraph

8 (F);

9 (ii) in paragraph (2), by adding

10 ‘‘and’’ at the end;

11 (iii) in paragraph (3) by striking

12 ‘‘thereof; and’’ and inserting ‘‘thereof.’’; and

13 (iv) by striking paragraph (4).

14 SEC. 7305. RESEARCH FACILITIES ACT.

15 Section 6(a) of the Research Facilities Act (7 U.S.C.

16 390d(a)) is amended by striking ‘‘2007’’ and inserting

17 ‘‘2012’’.

18 SEC. 7306. NATIONAL AGRICULTURAL RESEARCH, EXTEN19 SION, AND TEACHING POLICY ACT AMEND20 MENTS OF 1985.

21 Section 1431 of the National Agricultural Research,

22 Extension, and Teaching Policy Act Amendments of 1985

23 (Public Law 99–198; 99 Stat. 1556) is amended by striking

24 ‘‘2007’’ and inserting ‘‘2012’’.
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1 SEC. 7307. COMPETITIVE, SPECIAL, AND FACILITIES RE2 SEARCH GRANT ACT.

3 (a) COMPETITIVE GRANTS.—The Competitive, Special,

4 and Facilities Research Grant Act (7 U.S.C. 450i) is

5 amended in subsection (b)—

6 (1) in paragraph (2)—

7 (A) in the matter preceding subparagraph

8 (A)—

9 (i) by striking ‘‘in the areas’’ and all

10 that follows through ‘‘needs shall be’’ and

11 inserting ‘‘, as’’; and

12 (ii) by striking ‘‘year.’’ and inserting

13 ‘‘year, relating to—’’;

14 (B) in subparagraph (B), by striking ‘‘pro15 duction efficiency and animal well-being’’ and

16 inserting ‘‘production efficiency, animal well17 being, and the judicious use of antibiotics’’;

18 (C) in subparagraph (D), by striking ‘‘sur19 face water and ground water quality’’ and in20 serting ‘‘surface water quality and ground water

21 quality, including the reduction of antibiotics or

22 antibiotic-resistant bacteria’’;

23 (D) in subparagraph (E), by striking ‘‘and’’

24 at the end and inserting ‘‘; agricultural genomics

25 and biotechnology, including the application of

26 genomics and bioinformatics tools to develop
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1 traits in plants and animals (translational

2 genomics);’’;

3 (E) in subparagraph (F), by striking the

4 period at the end and inserting ‘‘, including

5 areas of concern to beginning farmers or ranch6 ers; and’’; and

7 (F) by adding at the end the following:

8 ‘‘(G) classical plant and animal breeding,

9 including cultivar and breed development, selec10 tion theory, applied quantitative genetics, breed11 ing for organic and sustainable systems, breeding

12 for improved nutritional and eating quality,

13 breeding for improved local adaptation to biotic

14 stress, abiotic stress, and climate change, and

15 participatory breeding with farmers and end

16 users.’’;

17 (2) in paragraph (4)—

18 (A) by striking ‘‘The’’ and inserting the fol19 lowing:

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (B), the’’; and

22 (B) by adding at the end the following:

23 ‘‘(B) CLASSICAL PLANT AND ANIMAL

24 BREEDING.—
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1 ‘‘(i) TERM.—The term of a competitive

2 grant relating to classical plant and animal

3 breeding under paragraph (2)(G) shall not

4 exceed 10 years.

5 ‘‘(ii) AVAILABILITY.—Funds made

6 available for a fiscal year for a competitive

7 grant relating to classical plant and animal

8 breeding under paragraph (2)(G) shall re9 main available until expended to pay for

10 obligations incurred in that fiscal year.’’;

11 and

12 (3) in paragraph (10), by striking ‘‘2007’’ and

13 inserting ‘‘2012’’.

14 (b) NATIONAL RESEARCH SUPPORT PROJECT-7.—The

15 Competitive, Special, and Facilities Research Grant Act (7

16 U.S.C. 450i) is amended by adding at the end the following:

17 ‘‘(l) NATIONAL RESEARCH SUPPORT PROJECT-7.—

18 ‘‘(1) DEFINITIONS.—In this subsection:

19 ‘‘(A) PROJECT.—The term ‘project’ means

20 the project established by the Secretary under

21 paragraph (2).

22 ‘‘(B) SECRETARY.—The term ‘Secretary’

23 means the Secretary of Agriculture.

24 ‘‘(2) ESTABLISHMENT.—The Secretary shall es25 tablish the National Research Support Project-7—
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1 ‘‘(A) to identify the animal drug needs

2 for—

3 ‘‘(i) minor species; and

4 ‘‘(ii) minor uses in major species;

5 ‘‘(B) to generate and disseminate data to

6 ensure the safe, effective, and lawful use of drugs

7 to be used primarily for the therapy or reproduc8 tive management of minor animal species; and

9 ‘‘(C) to facilitate the development and ap10 proval of drugs for minor species, and minor

11 uses in major species, by the Center for Veteri12 nary Medicine of the Food and Drug Adminis13 tration.

14 ‘‘(3) ADMINISTRATION OF PROJECT.—

15 ‘‘(A) NATIONAL RESEARCH SUPPORT

16 PROJECT-7.—The Secretary shall carry out the

17 project in accordance with each purpose and

18 principle of the National Research Support

19 Project-7 carried out by the Administrator of the

20 Cooperative State Research, Education, and Ex21 tension Service as of the day before the date of

22 enactment of this subsection.

23 ‘‘(B) CONSULTATION WITH OTHER ENTI24 TIES.—The Secretary shall carry out the project

25 in consultation with—
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1 ‘‘(i) the Commissioner of Food and

2 Drugs;

3 ‘‘(ii) State agricultural experiment sta4 tions;

5 ‘‘(iii) institutions of higher education;

6 ‘‘(iv) private entities; and

7 ‘‘(v) any other interested individual or

8 entity.

9 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—

10 There are authorized to be appropriated such sums as

11 are necessary to carry out this subsection.’’.

12 SEC. 7308. EDUCATION GRANTS TO ALASKA NATIVE SERV13 ING INSTITUTIONS AND NATIVE HAWAIIAN

14 SERVING INSTITUTIONS.

15 Section 759 of the Agriculture, Rural Development,

16 Food and Drug Administration, and Related Agencies Ap17 propriations Act, 2000 (7 U.S.C. 3242) is amended—

18 (1) in subsection (a)(3), by striking ‘‘2006’’ and

19 inserting ‘‘2012’’; and

20 (2) in subsection (b)—

21 (A) in paragraph (2)(A), by inserting before

22 the semicolon at the end the following: ‘‘, includ23 ing permitting consortia to designate fiscal

24 agents for the members of the consortia and to
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1 allocate among the members funds made avail2 able under this section’’; and

3 (B) in paragraph (3), by striking ‘‘2006’’

4 and inserting ‘‘2012’’.

5 SEC. 7309. BEGINNING FARMER AND RANCHER DEVELOP6 MENT PROGRAM.

7 (a) GRANTS.—Section 7405(c) of the Farm Security

8 and Rural Investment Act of 2002 (7 U.S.C. 3319f(c)) is

9 amended—

10 (1) in paragraph (1)—

11 (A) in subparagraph (I), by inserting ‘‘, in12 cluding energy conservation and efficiency’’ after

13 ‘‘assistance’’; and

14 (B) in subparagraph (K), by inserting ‘‘,

15 including transition to organic and other source16 verified and value-added alternative production

17 and marketing systems’’ after ‘‘strategies’’;

18 (2) by striking paragraph (3) and inserting the

19 following:

20 ‘‘(3) MAXIMUM TERM AND SIZE OF GRANT.—

21 ‘‘(A) IN GENERAL.—A grant under this sub22 section shall—

23 ‘‘(i) have a term that is not more than

24 3 years; and
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1 ‘‘(ii) be in an amount that is not more

2 than $250,000 a year.

3 ‘‘(B) CONSECUTIVE GRANTS.—An eligible

4 recipient may receive consecutive grants under

5 this subsection.’’;

6 (3) by redesignating paragraphs (5) through (7)

7 as paragraphs (9) through (11), respectively;

8 (4) by inserting after paragraph (4) the fol9 lowing:

10 ‘‘(5) EVALUATION CRITERIA.—In making grants

11 under this subsection, the Secretary shall evaluate—

12 ‘‘(A) relevancy;

13 ‘‘(B) technical merit;

14 ‘‘(C) achievability;

15 ‘‘(D) the expertise and track record of 1 or

16 more applicants;

17 ‘‘(E) the adequacy of plans for the

18 participatory evaluation process, outcome-based

19 reporting, and the communication of findings

20 and results beyond the immediate target audi21 ence; and

22 ‘‘(F) other appropriate factors, as deter23 mined by the Secretary.
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1 ‘‘(6) REGIONAL BALANCE.—In making grants

2 under this subsection, the Secretary shall, to the max3 imum extent practicable, ensure geographic diversity.

4 ‘‘(7) ORGANIC CONVERSION.—The Secretary may

5 make grants under this subsection to support projects

6 that provide comprehensive technical assistance to be7 ginning farmers or ranchers who are in the process

8 of converting to certified organic production.

9 ‘‘(8) PRIORITY.—In making grants under this

10 subsection, the Secretary shall give priority to part11 nerships and collaborations that are led by or include

12 non-governmental and community-based organiza13 tions with expertise in new farmer training and out14 reach.’’; and

15 (5) in paragraph (9) (as redesignated by para16 graph (3))—

17 (A) in subparagraph (B), by striking ‘‘and’’

18 at the end;

19 (B) in subparagraph (C), by striking the

20 period and adding ‘‘; and’’; and

21 (C) by adding at the end the following:

22 ‘‘(D) refugee or immigrant beginning farm23 ers or ranchers’’.

24 (b) EDUCATION TEAMS.—Section 7405(d)(2) of the

25 Farm Security and Rural Investment At of 2002 (7 U.S.C.
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1 3319f(d)(2)) is amended by inserting ‘‘, including sustain2 able and organic farming production and marketing meth3 ods’’ before the period at the end.

4 (c) STAKEHOLDER INPUT.—Section 7405(f) of the

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

6 3319f(f)) is amended—

7 (1) by redesignating paragraphs (1) through (3)

8 as subparagraphs (A) through (C), respectively, and

9 indenting appropriately;

10 (2) by striking ‘‘In carrying out’’ and inserting

11 the following:

12 ‘‘(1) IN GENERAL.—In carrying out’’; and

13 (3) by adding at the end the following:

14 ‘‘(2) REVIEW PANELS.—In forming review pan15 els to evaluate proposals submitted under this section,

16 the Secretary shall include individuals from the cat17 egories described in paragraph (1).’’.

18 (d) FUNDING.—Section 7405 of the Farm Security and

19 Rural Investment At of 2002 (7 U.S.C. 3319f) is amended

20 by striking subsection (h) and inserting the following:

21 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is

22 authorized to be appropriated to carry out this section

23 $30,000,000 for each of fiscal years 2002 through 2012.’’.
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1 SEC. 7310. MCINTIRE-STENNIS COOPERATIVE FORESTRY

2 ACT.

3 Section 2 of Public Law 87–788 (commonly known as

4 the ‘‘McIntire-Stennis Cooperative Forestry Act’’) (16

5 U.S.C. 582a–1) is amended by inserting ‘‘and 1890 Institu6 tions (as defined in section 2 of the Agricultural Research,

7 Extension, and Education Reform Act of 1998 (7 U.S.C.

8 7601)),’’ before ‘‘and (b)’’.

9 SEC. 7311. NATIONAL AQUACULTURE ACT OF 1980.

10 Section 10 of the National Aquaculture Act of 1980

11 (16 U.S.C. 2809) is amended by striking ‘‘2007’’ each place

12 it appears and inserting ‘‘2012’’.

13 SEC. 7312. NATIONAL ARBORETUM.

14 The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is

15 amended by adding at the end the following:

16 ‘‘SEC. 7. CONSTRUCTION OF A CHINESE GARDEN AT NA17 TIONAL ARBORETUM.

18 ‘‘(a) IN GENERAL.—A Chinese Garden may be con19 structed at the National Arboretum established under this

20 Act with—

21 ‘‘(1) funds accepted under section 5; and

22 ‘‘(2) authorities provided to the Secretary of Ag23 riculture under section 6.

24 ‘‘(b) REPORT.—Each year the Secretary of Agriculture

25 shall submit to Congress, and post on the public website
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1 of the National Arboretum, an itemized budget that shall

2 describe, for the preceding year—

3 ‘‘(1) the total costs of the National Arboretum;

4 ‘‘(2) the costs of—

5 ‘‘(A) operation and maintenance;

6 ‘‘(B) horticulture and grounds;

7 ‘‘(C) visitor services; and

8 ‘‘(D) supplies and materials;

9 ‘‘(3) indirect costs of the Agricultural Research

10 Service relating to the National Arboretum; and

11 ‘‘(4) the total number of visitors to the National

12 Arboretum.

13 ‘‘(c) LIMITATION.—No Federal funds shall be used for

14 the construction of the Chinese Garden authorized under

15 subsection (a).’’.

16 SEC. 7313. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT

17 OF COLUMBIA FOR CERTAIN LAND-GRANT

18 UNIVERSITY ASSISTANCE.

19 Section 208 of the District of Columbia Public Postsec20 ondary Education Reorganization Act (Public Law 93–471;

21 88 Stat. 1428) is amended—

22 (1) in subsection (b)(2), by striking ‘‘, except’’

23 and all that follows through the period and inserting

24 a period; and

25 (2) in subsection (c)—
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1 (A) by striking ‘‘section 3’’ each place it ap2 pears and inserting ‘‘section 3(c)’’; and

3 (B) by striking ‘‘Such sums may be used to

4 pay’’ and all that follows through ‘‘work.’’.

5 SEC. 7314. EXCHANGE OR SALE AUTHORITY.

6 Title III of the Department of Agriculture Reorganiza7 tion Act of 1994 is amended by adding after section 307

8 (7 U.S.C. 2204 note; Public Law 103–354) (as amended

9 by section 2602) the following:

10 ‘‘SEC. 308. EXCHANGE OR SALE AUTHORITY.

11 ‘‘(a) DEFINITION OF QUALIFIED ITEMS OF PERSONAL

12 PROPERTY.—In this section, the term ‘qualified items of

13 personal property’ means—

14 ‘‘(1) animals;

15 ‘‘(2) animal products;

16 ‘‘(3) plants; and

17 ‘‘(4) plant products.

18 ‘‘(b) GENERAL AUTHORITY.—Except as provided in

19 subsection (c), notwithstanding chapter 5 of subtitle I of

20 title 40, United States Code, the Secretary of Agriculture,

21 acting through the Under Secretary for Research, Edu22 cation, and Economics, in managing personal property for

23 the purpose of carrying out the research functions of the

24 Department of Agriculture, may exchange, sell, or otherwise

25 dispose of any qualified items of personal property, includ-
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1 ing by way of public auction, and may retain and apply

2 the sale or other proceeds, without further appropriation,

3 in whole or in partial payment—

4 ‘‘(1) to acquire any qualified items of personal

5 property; or

6 ‘‘(2) to offset costs related to the maintenance,

7 care, or feeding of any qualified items of personal

8 property.

9 ‘‘(c) EXCEPTION.—Subsection (b) does not apply to the

10 free dissemination of new varieties of seeds and germ plasm

11 in accordance with section 520 of the Revised Statutes

12 (commonly known as the ‘Department of Agriculture Or13 ganic Act of 1862’) (7 U.S.C. 2201).’’.

14 SEC. 7315. CARBON CYCLE RESEARCH.

15 (a) IN GENERAL.—To the extent funds are made avail16 able, the Secretary shall provide a grant to the Consortium

17 for Agricultural Soils Mitigation of Greenhouse Gases, act18 ing through Kansas State University, to develop, analyze,

19 and implement, through the land grant universities de20 scribed in subsection (b), carbon cycle and greenhouse gas

21 management research at the national, regional, and local

22 levels.

23 (b) LAND GRANT UNIVERSITIES.—The land grant uni24 versities referred to in subsection (a) are—

25 (1) Colorado State University;
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1 (2) Iowa State University;

2 (3) Kansas State University;

3 (4) Michigan State University;

4 (5) Montana State University;

5 (6) Purdue University;

6 (7) Ohio State University;

7 (8) Texas A&M University; and

8 (9) University of Nebraska.

9 (c) USE.—Land grant universities described in sub10 section (b) shall use funds made available under this

11 section—

12 (1) to conduct research to improve the scientific

13 basis of using land management practices to increase

14 soil carbon sequestration, including research on the

15 use of new technologies to increase carbon cycle effec16 tiveness, such as biotechnology and nanotechnology;

17 (2) to conduct research on management of other

18 greenhouse gases in the agricultural sector;

19 (3) to enter into partnerships to identify, de20 velop, and evaluate agricultural best practices, in21 cluding partnerships between—

22 (A) Federal, State, or private entities; and

23 (B) the Department of Agriculture;

24 (4) to develop necessary computer models to pre25 dict and assess the carbon cycle;
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1 (5) to estimate and develop mechanisms to meas2 ure carbon levels made available as a result of—

3 (A) voluntary Federal conservation pro4 grams;

5 (B) private and Federal forests; and

6 (C) other land uses;

7 (6) to develop outreach programs, in coordina8 tion with Extension Services, to share information on

9 carbon cycle and agricultural best practices that is

10 useful to agricultural producers; and

11 (7) to collaborate with the Great Plains Regional

12 Earth Science Application Center to develop a space13 based carbon cycle remote sensing technology

14 program—

15 (A) to provide, on a near-continual basis, a

16 real-time and comprehensive view of vegetation

17 conditions;

18 (B) to assess and model agricultural carbon

19 sequestration; and

20 (C) to develop commercial products.

21 (d) COOPERATIVE RESEARCH.—

22 (1) IN GENERAL.—Subject to the availability of

23 appropriations, the Secretary, in cooperation with de24 partments and agencies participating in the U.S.

25 Global Change Research Program and eligible enti-
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1 ties, may carry out research to promote under2 standing of—

3 (A) the flux of carbon in soils and plants

4 (including trees); and

5 (B) the exchange of other greenhouse gases

6 from agriculture.

7 (2) ELIGIBLE ENTITIES.—Research under this

8 subsection may be carried out through the competitive

9 awarding of grants and cooperative agreements to col10 leges and universities (as defined in section 1404 of

11 the National Agricultural Research, Extension, and

12 Teaching Policy Act of 1977 (7 U.S.C. 3103)).

13 (3) COOPERATIVE RESEARCH PURPOSES.—Re14 search conducted under this subsection shall encourage

15 collaboration among scientists with expertise in the

16 areas of soil science, agronomy, agricultural econom17 ics, forestry, and other agricultural sciences to focus

18 on—

19 (A) developing data addressing carbon

20 losses and gains in soils and plants (including

21 trees) and the exchange of methane and nitrous

22 oxide from agriculture;

23 (B) understanding how agricultural and

24 forestry practices affect the sequestration of car25 bon in soils and plants (including trees) and the
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1 exchange of other greenhouse gases, including the

2 effects of new technologies such as biotechnology

3 and nanotechnology;

4 (C) developing cost-effective means of meas5 uring and monitoring changes in carbon pools in

6 soils and plants (including trees), including

7 computer models;

8 (D) evaluating the linkage between Federal

9 conservation programs and carbon sequestration;

10 (E) developing methods, including remote

11 sensing, to measure the exchange of carbon and

12 other greenhouse gases sequestered, and to evalu13 ate leakage, performance, and permanence issues;

14 and

15 (F) assessing the applicability of the results

16 of research conducted under this subsection for

17 developing methods to account for the impact of

18 agricultural activities (including forestry) on the

19 exchange of greenhouse gases.

20 (e) EXTENSION PROJECTS.—

21 (1) IN GENERAL.—The Secretary, in cooperation

22 with departments and agencies participating in the

23 U.S. Global Change Research Program and local ex24 tension agents, experts from institutions of higher

25 education that offer a curriculum in agricultural and
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1 biological sciences, and other local agricultural or

2 conservation organizations, may implement extension

3 projects (including on-farm projects with direct in4 volvement of agricultural producers) that combine

5 measurement tools and modeling techniques into inte6 grated packages to monitor the carbon sequestering

7 benefits of conservation practices and the exchange of

8 greenhouse gas emissions from agriculture that dem9 onstrate the feasibility of methods of measuring and

10 monitoring—

11 (A) changes in carbon content and other

12 carbon pools in soils and plants (including

13 trees); and

14 (B) the exchange of other greenhouse gases.

15 (2) EDUCATION AND OUTREACH.—The Secretary

16 shall make available to agricultural producers, pri17 vate forest landowners, and appropriate State agen18 cies in each State information concerning—

19 (A) the results of projects under this sub20 section;

21 (B) the manner in which the methods used

22 in the projects might be applicable to the oper23 ations of the agricultural producers, private for24 est landowners, and State agencies; and
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1 (C) information on how agricultural pro2 ducers and private forest landowners can par3 ticipate in carbon credit and greenhouse gas

4 trading system.

5 (f) REPEAL.—Section 221 of the Agricultural Risk

6 Protection Act of 2000 (7 U.S.C. 6711) is repealed.

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

8 authorized to be appropriated to carry out this section

9 $15,000,000 for each of fiscal years 2008 through 2012.

10 SEC. 7316. ENHANCED USE LEASE AUTHORITY PILOT PRO11 GRAM.

12 Title III of the Department of Agriculture Reorganiza13 tion Act of 1994 is amended by adding after section 309

14 (as added by section 7402) the following:

15 ‘‘SEC. 310. ENHANCED USE LEASE AUTHORITY PILOT PRO16 GRAM.

17 ‘‘(a) ESTABLISHMENT.—To enhance the use of real

18 property administered by agencies of the Department, the

19 Secretary may establish a pilot program, in accordance

20 with this section, at the Henry A. Wallace Beltsville Agri21 cultural Research Center of the Agricultural Research Serv22 ice and the National Agricultural Library to lease property

23 of the Center or the Library to any individual or entity,

24 including agencies or instrumentalities of State or local

25 governments.
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1 ‘‘(b) REQUIREMENTS.—

2 ‘‘(1) IN GENERAL.—Notwithstanding chapter 5

3 of subtitle I of title 40, United States Code, the Sec4 retary may lease real property at the Beltsville Agri5 cultural Research Center or the National Agricultural

6 Library in accordance with such terms and condi7 tions as the Secretary may prescribe, if the Secretary

8 determines that the lease—

9 ‘‘(A) is consistent with, and will not ad10 versely affect, the mission of the Department

11 agency administering the property;

12 ‘‘(B) will enhance the use of the property;

13 ‘‘(C) will not permit any portion of Depart14 ment agency property or any facility of the De15 partment to be used for retail, wholesale, com16 mercial, or residential development;

17 ‘‘(D) will not provide authority for the de18 velopment or improvement of any new property

19 or facility by any Department agency; and

20 ‘‘(E) will not include any property or facil21 ity required for any Department agency purpose

22 without prior written authority.

23 ‘‘(2) TERM.—The term of the lease under this

24 section shall not exceed 50 years.

25 ‘‘(3) CONSIDERATION.—
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1 ‘‘(A) IN GENERAL.—Consideration provided

2 for a lease under this section shall be—

3 ‘‘(i) in an amount equal to fair market

4 value, as determined by the Secretary; and

5 ‘‘(ii) in the form of cash.

6 ‘‘(B) USEOF FUNDS.—

7 ‘‘(i) IN GENERAL.—Consideration pro8 vided for a lease under this section shall

9 be—

10 ‘‘(I) deposited in a capital asset

11 account to be established by the Sec12 retary; and

13 ‘‘(II) available until expended,

14 without further appropriation, for

15 maintenance, capital revitalization,

16 and improvements of the Department

17 properties and facilities covered by the

18 lease.

19 ‘‘(ii) BUDGETARY TREATMENT.—For

20 purposes of the budget, the amounts de21 scribed in clause (i) shall not be treated as

22 a receipt of any Department agency or any

23 other agency leasing property under this

24 section.
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1 ‘‘(4) COSTS.—The lessee shall cover all costs asso2 ciated with a lease under this section, including the

3 cost of—

4 ‘‘(A) the project to be carried out on prop5 erty or at a facility covered by the lease;

6 ‘‘(B) provision and administration of the

7 lease;

8 ‘‘(C) construction of any applicable real

9 property;

10 ‘‘(D) provision of applicable utilities; and

11 ‘‘(E) any other facility cost normally asso12 ciated with the operation of a leased facility.

13 ‘‘(5) PROHIBITION OF USEOF APPROPRIA14 TIONS.—The Secretary shall not use any funds made

15 available to the Secretary in an appropriations Act

16 for the construction or operating costs of any property

17 or facility covered by a lease under this section.

18 ‘‘(c) EFFECT OF OTHER LAWS.—

19 ‘‘(1) UTILIZATION.—Property that is leased pur20 suant to this section shall not be considered to be un21 utilized or underutilized for purposes of section 501

22 of the Stewart B. McKinney Homeless Assistance Act

23 (42 U.S.C. 11411).

24 ‘‘(2) DISPOSAL.—Property at the Beltsville Agri25 cultural Research Center or the National Agricultural
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1 Library that is leased pursuant to this section shall

2 not be considered to be disposed of by sale, lease, rent3 al, excessing, or surplusing for purposes of section 523

4 of Public Law 100–202 (101 Stat. 1329–417).

5 ‘‘(d) REPORTS.—

6 ‘‘(1) FISCAL YEARS 2008 THROUGH 2013.—For

7 each of fiscal years 2008 through 2013, the Secretary

8 shall submit to the Committee on Agriculture of the

9 House of Representatives and the Committee on Agri10 culture, Nutrition, and Forestry of the Senate an an11 nual report describing the implementation of the pilot

12 program under this section during the preceding fis13 cal year, including—

14 ‘‘(A) a copy of each lease entered into pur15 suant to this section;

16 ‘‘(B) an assessment by the Secretary of the

17 success of the pilot program in promoting the

18 mission of the Beltsville Agricultural Research

19 Center and the National Agricultural Library;

20 and

21 ‘‘(C) recommendations regarding whether

22 the pilot program should be expanded or im23 proved with respect to other Department activi24 ties.
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1 ‘‘(2) FISCAL YEAR 2014 AND THEREAFTER.—For

2 fiscal year 2014 and every 5 fiscal years thereafter,

3 the Secretary shall submit to the Committee on Agri4 culture of the House of Representatives and the Com5 mittee on Agriculture, Nutrition, and Forestry of the

6 Senate a report described in paragraph (1) relating

7 to the preceding 5-fiscal-year period.’’.

8 SEC. 7317. RESEARCH AND EDUCATION GRANTS FOR THE

9 STUDY OF ANTIBIOTIC-RESISTANT BACTERIA

10 IN LIVESTOCK.

11 (a) IN GENERAL.—The Secretary shall provide re12 search and education grants, on a competitive basis—

13 (1) to study the development of antibiotic-resist14 ant bacteria in livestock; and

15 (2) to study and ensure the judicious use of anti16 biotics in livestock production to protect animal

17 health without negatively impacting human public

18 health.

19 (b) USEOF FUNDS.—An entity shall use a grant pro20 vided under this section to conduct research relating to—

21 (1) methods and practices of animal husbandry

22 that ensure the judicious use of antibiotics;

23 (2) movement and prevention of movement of

24 antibiotics and antibiotic resistance traits from ani25 mals into ground and surface water;
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1 (3) safe and effective alternatives to antibiotics;

2 (4) the effect on antibiotic resistance from var3 ious drug use regimens;

4 (5) the development of better veterinary

5 diagnostics to improve decisionmaking on proper an6 tibiotic use;

7 (6) the identification of conditions or factors that

8 affect antibiotic use on farms; and

9 (7) the development of procedures to monitor an10 tibiotic use at the farm level to relate findings to on11 farm management practices and develop intervention

12 strategies when appropriate.

13 Subtitle E—National Institute of

14 Food and Agriculture

15 SEC. 7401. NATIONAL INSTITUTE OF FOOD AND AGRI16 CULTURE.

17 (a) IN GENERAL.—Subtitle F of the Department of Ag18 riculture Reorganization Act of 1994 is amended by adding

19 after section 252 (7 U.S.C. 6972) the following:

20 ‘‘SEC. 253. NATIONAL INSTITUTE OF FOOD AND AGRI21 CULTURE.

22 ‘‘(a) DEFINITIONS.—In this section:

23 ‘‘(1) ADVISORY BOARD.—The term ‘Advisory

24 Board’ means the National Agricultural Research,

25 Extension, Education, and Economics Advisory
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1 Board established under section 1408 of the National

2 Agricultural Research, Extension, and Teaching Pol3 icy Act of 1977 (7 U.S.C. 3123).

4 ‘‘(2) COMPETITIVE PROGRAM.—The term ‘com5 petitive program’ means each of the following agricul6 tural research, extension, education, and related pro7 grams for which the Secretary has administrative or

8 other authority as of the day before the date of enact9 ment of this section:

10 ‘‘(A) The competitive grant program estab11 lished under section 2(b) of the Competitive, Spe12 cial, and Facilities Research Grant Act (7

13 U.S.C. 450i(b)), commonly known as the ‘Na14 tional Research Initiative Competitive Grants

15 Program’.

16 ‘‘(B) The program providing competitive

17 grants for risk management education estab18 lished under section 524(a)(3) of the Federal

19 Crop Insurance Act (7 U.S.C. 1524(a)(3)).

20 ‘‘(C) The program providing community

21 food project competitive grants established under

22 section 25 of the Food Stamp Act of 1977 (7

23 U.S.C. 2034).

24 ‘‘(D) Each grant program established under

25 section 2501 of the Food, Agriculture, Conserva-
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1 tion, and Trade Act of 1990 (7 U.S.C. 2279)

2 providing outreach and assistance for socially

3 disadvantaged farmers and ranchers.

4 ‘‘(E) The program providing grants under

5 section 1417(b)(1) of the National Agricultural

6 Research, Extension, and Teaching Policy Act of

7 1977 (7 U.S.C. 3152(b)(1)), commonly known as

8 ‘Higher Education Challenge Grants’.

9 ‘‘(F) The program providing grants and re10 lated assistance established under section

11 1417(b)(5) of the National Agricultural Re12 search, Extension, and Teaching Policy Act of

13 1977 (7 U.S.C. 3152(b)(5)) commonly known as

14 the ‘Higher Education Multicultural Scholars

15 Program’.

16 ‘‘(G) The program providing food and agri17 cultural sciences national needs graduate and

18 postgraduate fellowship grants established under

19 section 1417(b)(6) of the National Agricultural

20 Research, Extension, and Teaching Policy Act of

21 1977 (7 U.S.C. 3152(b)(6)).

22 ‘‘(H) The program providing grants under

23 section 1417(j) of the National Agricultural Re24 search, Extension, and Teaching Policy Act of
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1 1977 (7 U.S.C. 3152(j)), commonly known as

2 ‘Institution Challenge Grants’.

3 ‘‘(I) The program providing grants for His4 panic-serving institutions established under sec5 tion 1455 of the National Agricultural Research,

6 Extension, and Teaching Policy Act of 1977 (7

7 U.S.C. 3241).

8 ‘‘(J) The program providing competitive

9 grants for international agricultural science and

10 education programs under section 1459A of the

11 National Agricultural Research, Extension, and

12 Teaching Policy Act of 1977 (7 U.S.C. 3292b).

13 ‘‘(K) The program of agricultural develop14 ment in the American-Pacific region established

15 under section 1473H of the National Agricul16 tural Research, Extension, and Teaching Policy

17 Act of 1977.

18 ‘‘(L) The research and extension projects

19 carried out under section 1621 of the Food, Agri20 culture, Conservation, and Trade Act of 1990 (7

21 U.S.C. 5811), commonly known as the ‘Sustain22 able Agriculture Research and Education pro23 gram’.

24 ‘‘(M) The biotechnology risk assessment re25 search program established under section 1668 of
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1 the Food, Agriculture, Conservation, and Trade

2 Act of 1990 (7 U.S.C. 5921).

3 ‘‘(N) The organic agriculture research and

4 extension initiative established under section

5 1672B of the Food, Agriculture, Conservation,

6 and Trade Act of 1990 (7 U.S.C. 5925b).

7 ‘‘(O) The Initiative for Future Agriculture

8 and Food Systems established under section 401

9 of the Agricultural Research, Extension, and

10 Education Reform Act of 1998 (7 U.S.C. 7621).

11 ‘‘(P) The integrated research, education,

12 and extension competitive grants program estab13 lished under section 406 of the Agricultural Re14 search, Extension, and Education Reform Act of

15 1998 (7 U.S.C. 7626).

16 ‘‘(Q) The Small Business Innovation Re17 search Program established under section 9 of the

18 Small Business Act (15 U.S.C. 638).

19 ‘‘(R) The specialty crop research initiative

20 under section 412 of the Agricultural Research,

21 Extension, and Education Reform Act of 1998.

22 ‘‘(S) The administration and management

23 of the regional bioenergy crop research program

24 carried out under section 9012 of the Farm Se25 curity and Rural Investment Act of 2002.
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1 ‘‘(T) The research, extension, and education

2 programs authorized by section 407 of the Agri3 cultural Research, Extension, and Education Re4 form Act of 1998 (7 U.S.C. 7627) relating to the

5 viability and competitiveness of small- and me6 dium-sized dairy, livestock, crop, and other com7 modity operations.

8 ‘‘(U) Other programs, including any pro9 grams added by amendments made by title VII

10 of the Food and Energy Security Act of 2007

11 that are competitive programs, as determined by

12 the Secretary.

13 ‘‘(3) DIRECTOR.—The term ‘Director’ means the

14 Director of the Institute.

15 ‘‘(4) INFRASTRUCTUREPROGRAM.—The term ‘in16 frastructure program’ means each of the following ag17 ricultural research, extension, education, and related

18 programs for which the Secretary has administrative

19 or other authority as of the day before the date of en20 actment of this section:

21 ‘‘(A) Each program providing funding to

22 any of the 1994 Institutions under sections 533,

23 534(a), and 535 of the Equity in Educational

24 Land-Grant Status Act of 1994 (7 U.S.C. 301

25 note; Public Law 103–382) (commonly known as
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1 ‘financial assistance, technical assistance, and

2 endowments to tribal colleges and Navajo Com3 munity College’).

4 ‘‘(B) The program established under section

5 536 of the Equity in Educational Land-Grant

6 Status Act of 1994 (7 U.S.C. 301 note; Public

7 Law 103–382) providing research grants for

8 1994 institutions.

9 ‘‘(C) Each program established under sub10 sections (b), (c), and (d) of section 3 of the

11 Smith-Lever Act (7 U.S.C. 343).

12 ‘‘(D) Each program established under the

13 Hatch Act of 1887 (7 U.S.C. 361a et seq.).

14 ‘‘(E) Each program established under sec15 tion 1417(b)(4) of the National Agricultural Re16 search, Extension, and Teaching Policy Act of

17 1977 (7 U.S.C. 3152(b)(4)), including grant pro18 grams under that section (commonly known as

19 the ‘1890 Institution Teaching and Research Ca20 pacity Building Grants Program’).

21 ‘‘(F) The animal health and disease re22 search program established under subtitle E of

23 the National Agricultural Research, Extension,

24 and Teaching Policy Act of 1977 (7 U.S.C. 3191

25 et seq.).
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1 ‘‘(G) Each extension program available to

2 1890 Institutions established under sections 1444

3 and 1464 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7

5 U.S.C. 3221, 3312).

6 ‘‘(H) The program established under section

7 1445 of the National Agricultural Research, Ex8 tension, and Teaching Policy Act of 1977 (7

9 U.S.C. 3222) (commonly known as the ‘Evans10 Allen Program’).

11 ‘‘(I) The program providing grants to up12 grade agricultural and food sciences facilities at

13 1890 Institutions established under section 1447

14 of the National Agricultural Research, Exten15 sion, and Teaching Policy Act of 1977 (7 U.S.C.

16 3222b).

17 ‘‘(J) The program providing distance edu18 cation grants for insular areas established under

19 section 1490 of the National Agricultural Re20 search, Extension, and Teaching Policy Act of

21 1977 (7 U.S.C. 3362).

22 ‘‘(K) The program providing resident in23 struction grants for insular areas established

24 under section 1491 of the National Agricultural
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1 Research, Extension, and Teaching Policy Act of

2 1977 (7 U.S.C. 3363).

3 ‘‘(L) Each program available to 1890 Insti4 tutions established under section 406 of the Agri5 cultural Research, Extension, and Education Re6 form Act of 1998 (7 U.S.C. 7626).

7 ‘‘(M) The program providing competitive

8 extension grants to eligible 1994 Institutions

9 under section 1464 of National Agricultural Re10 search, Extension, and Teaching Policy Act of

11 1977 (7 U.S.C. 3312) and the Equity in Edu12 cational Land-Grant Status Act of 1994 (Public

13 Law 103–382; 7 U.S.C. 301 note) established

14 under section 406 of the Agricultural Research,

15 Extension, and Education Reform Act of 1998 (7

16 U.S.C. 7626).

17 ‘‘(N) Each research and development and

18 related program established under Public Law

19 87–788 (commonly known as the ‘McIntire-Sten20 nis Cooperative Forestry Act’) (16 U.S.C. 582a

21 et seq.).

22 ‘‘(O) Each program established under the

23 Renewable Resources Extension Act of 1978 (16

24 U.S.C. 1671 et seq.).
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1 ‘‘(P) Each program providing funding to

2 Hispanic-serving agricultural colleges under sec3 tion 1456 of the National Agricultural Research,

4 Extension and Teaching Policy Act of 1977.

5 ‘‘(Q) The administration and management

6 of the farm energy education and technical as7 sistance program carried out under section 9005

8 of the Farm Security and Rural Investment Act

9 of 2002.

10 ‘‘(R) Other programs, including any pro11 grams added by amendments made by title VII

12 of the Food and Energy Security Act of 2007

13 that are infrastructure programs, as determined

14 by the Secretary.

15 ‘‘(5) INSTITUTE.—The term ‘Institute’ means the

16 National Institute of Food and Agriculture established

17 by subsection (b)(1)(A).

18 ‘‘(b) ESTABLISHMENT OF NATIONAL INSTITUTEFOR

19 FOOD AND AGRICULTURE.—

20 ‘‘(1) ESTABLISHMENT.—

21 ‘‘(A) IN GENERAL.—There is established

22 within the Department an agency to be known

23 as the ‘National Institute of Food and Agri24 culture’.
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1 ‘‘(B) LOCATION.—The location of the Insti2 tute shall be in Washington, District of Colum3 bia, as determined by the Secretary.

4 ‘‘(C) MEMBERS.—The Institute shall consist

5 of—

6 ‘‘(i) the Director;

7 ‘‘(ii) the individual offices established

8 under subsection (e); and

9 ‘‘(iii) the staff and employees of Na10 tional Institute for Food and Agriculture.

11 ‘‘(2) TRANSFER OF AUTHORITIES.—There are

12 transferred to the Institute the authorities (including

13 all budget authorities and personnel), duties, obliga14 tions, and related legal and administrative functions

15 prescribed by law or otherwise granted to the Sec16 retary, the Department, or any other agency or offi17 cial of the Department under—

18 ‘‘(A) the infrastructure programs;

19 ‘‘(B) the competitive programs;

20 ‘‘(C) the research, education, economic, co21 operative State research programs, cooperative

22 extension and education programs, international

23 programs, and other functions and authorities

24 delegated by the Secretary to the Administrator

25 of the Cooperative State Research, Education,
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1 and Extension Service pursuant to section 2.66

2 of title 7, Code of Federal Regulations (or suc3 cessor regulations); and

4 ‘‘(D) any and all other authorities adminis5 tered by the Administrator of the Cooperative

6 State Research, Education, and Extension Serv7 ice.

8 ‘‘(3) CONSOLIDATION OF AUTHORITIES.—To

9 carry out this Act, in accordance with the transfer

10 and continuation of the authorities, budgetary func11 tions, and personnel resources under this subsection,

12 the administrative entity within the Department

13 known as the Cooperative State Research, Education,

14 and Extension Service shall terminate on the earlier

15 of—

16 ‘‘(A) October 1, 2008; or

17 ‘‘(B) such earlier date as the Director deter18 mines to be appropriate.

19 ‘‘(c) DIRECTOR.—

20 ‘‘(1) IN GENERAL.—The Institute shall be headed

21 by a Director, who shall be an individual who is—

22 ‘‘(A) a distinguished scientist; and

23 ‘‘(B) appointed by the President (after tak24 ing into consideration recommendations made by
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1 the National Academy of Sciences), by and with

2 the advice and consent of the Senate.

3 ‘‘(2) TERM.—The Director shall serve for a sin4 gle, 6-year term.

5 ‘‘(3) SUPERVISION.—The Director shall report

6 directly to the Secretary.

7 ‘‘(4) COMPENSATION.—The Director shall receive

8 basic pay at the rate provided for level II of the Exec9 utive Schedule under section 5513 of title 5, United

10 States Code.

11 ‘‘(5) AUTHORITY AND RESPONSIBILITIES OF DI12 RECTOR.—

13 ‘‘(A) IN GENERAL.—Except as otherwise

14 specifically provided in this section, the Director

15 shall—

16 ‘‘(i) exercise all of the authority pro17 vided to the Institute by this section;

18 ‘‘(ii) formulate programs in accordance

19 with policies adopted by the Institute;

20 ‘‘(iii) establish offices within the Insti21 tute;

22 ‘‘(iv) establish procedures for the peer

23 review of research funded by the Institute;
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1 ‘‘(v) establish procedures for the provi2 sion and administration of grants by the

3 Institute in accordance with this section;

4 ‘‘(vi) assess the personnel needs of agri5 cultural research in the areas supported by

6 the Institute, and, if determined to be ap7 propriate by the Director, for other areas of

8 food and agricultural research;

9 ‘‘(vii) plan programs that will help

10 meet agricultural personnel needs in the fu11 ture, including portable fellowship and

12 training programs in fundamental agricul13 tural research and fundamental science; and

14 ‘‘(viii) consult regularly with the Na15 tional Agricultural Research, Extension,

16 Education, and Economics Advisory Board.

17 ‘‘(B) FINALITY OF ACTIONS.—An action

18 taken by the Director in accordance with this

19 section shall be final and binding upon the Insti20 tute.

21 ‘‘(C) DELEGATION AND REDELEGATION OF

22 FUNCTIONS.—

23 ‘‘(i) IN GENERAL.—Except as provided

24 in clause (ii), the Director may, from time

25 to time and as the Director considers to be
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1 appropriate, authorize the performance by

2 any other officer, agency, or employee of the

3 Institute of any of the functions of the Di4 rector under this section.

5 ‘‘(ii) CONTRACTS, GRANTS, AND OTHER

6 ARRANGEMENTS.—The Director may enter

7 into contracts and other arrangements, and

8 provide grants, in accordance with this sec9 tion.

10 ‘‘(iii) FORMULATION OF PROGRAMS.—

11 The formulation of programs in accordance

12 with the policies of the Institute shall be

13 carried out by the Director.

14 ‘‘(6) STAFF.—The Director shall recruit and hire

15 such senior staff and other personnel as are necessary

16 to assist the Director in carrying out this section.

17 ‘‘(7) REPORTING AND CONSULTATION.—The Di18 rector shall—

19 ‘‘(A) periodically report to the Secretary

20 with respect to activities carried out by the Insti21 tute; and

22 ‘‘(B) consult regularly with the Secretary to

23 ensure, to the maximum extent practicable,

24 that—
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1 ‘‘(i) research of the Institute is relevant

2 to agriculture in the United States and oth3 erwise serves the national interest; and

4 ‘‘(ii) the research of the Institute sup5 plements and enhances, and does not re6 place, research conducted or funded by—

7 ‘‘(I) other agencies of the Depart8 ment;

9 ‘‘(II) the National Science Foun10 dation; or

11 ‘‘(III) the National Institutes of

12 Health.

13 ‘‘(d) POWERS.—

14 ‘‘(1) IN GENERAL.—The Institute shall have such

15 authority as is necessary to carry out this section, in16 cluding the authority—

17 ‘‘(A) to promulgate such regulations as the

18 Institute considers to be necessary for governance

19 of operations, organization, and personnel;

20 ‘‘(B) to make such expenditures as are nec21 essary to carry out this section;

22 ‘‘(C) to enter into contracts or other ar23 rangements, or modifications of contracts or

24 other arrangements—
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1 ‘‘(i) to provide for the conduct, by or2 ganizations or individuals in the United

3 States (including other agencies of the De4 partment, Federal agencies, and agencies of

5 foreign countries), of such agricultural re6 search or related activities as the Institute

7 considers to be necessary to carry out this

8 section; and

9 ‘‘(ii) for the conduct of such specific

10 agricultural research as is in the national

11 interest or is otherwise of critical impor12 tance, as determined by the Secretary, with

13 the concurrence of the Institute;

14 ‘‘(D) to make advance, progress, and other

15 payments relating to research and scientific ac16 tivities without regard to subsections (a) and (b)

17 of section 3324 of title 31, United States Code;

18 ‘‘(E) to receive and use donated funds, if the

19 funds are donated without restriction other than

20 that the funds be used in furtherance of 1 or

21 more of the purposes of the Institute;

22 ‘‘(F) to publish or arrange for the publica23 tion of research and scientific information to

24 further the full dissemination of information of

25 scientific value consistent with the national in-
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1 terest, without regard to section 501 of title 44,

2 United States Code;

3 ‘‘(G)(i) to accept and use the services of vol4 untary and uncompensated personnel; and

5 ‘‘(ii) to provide such transportation and

6 subsistence as are authorized by section 5703 of

7 title 5, United States Code, for individuals serv8 ing without compensation;

9 ‘‘(H) to prescribe, with the approval of the

10 Comptroller General of the United States, the ex11 tent to which vouchers for funds expended under

12 contracts for scientific or engineering research

13 shall be subject to itemization or substantiation

14 prior to payment, without regard to the limita15 tions of other laws relating to the expenditure

16 and accounting of public funds;

17 ‘‘(I) to reimburse the Secretary, and the

18 heads of other Federal agencies, for the perform19 ance of any activity that the Institute is author20 ized to conduct; and

21 ‘‘(J) to enter into contracts, at the request

22 of the Secretary, for the carrying out of such spe23 cific agricultural research as is in the national

24 interest or otherwise of critical importance, as
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1 determined by the Secretary, with the consent of

2 the Institute.

3 ‘‘(2) TRANSFER OF RESEARCH FUNDS OF OTHER

4 DEPARTMENTS OR AGENCIES.—Funds available to the

5 Secretary, or any other department or agency of the

6 Federal Government, for agricultural or scientific re7 search shall be—

8 ‘‘(A) available for transfer, with the ap9 proval of the Secretary or the head of the other

10 appropriate department or agency involved, in

11 whole or in part, to the Institute for use in pro12 viding grants in accordance with the purposes

13 for which the funds were made available; and

14 ‘‘(B) if so transferred, expendable by the In15 stitute for those purposes.

16 ‘‘(e) OFFICES.—

17 ‘‘(1) ESTABLISHMENT OF OFFICES.—

18 ‘‘(A) OFFICEOF THEAGRICULTURAL RE19 SEARCH, EXTENSION, AND EDUCATION NET20 WORK.—

21 ‘‘(i) ESTABLISHMENT.—The Director

22 shall establish within the Institute an Office

23 of the Agricultural Research, Extension,

24 and Education Network (referred to in this

25 subparagraph as the ‘Office’).
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1 ‘‘(ii) DUTIES.—At the discretion of the

2 Director, the Office shall have responsibility

3 for all infrastructure programs.

4 ‘‘(B) OFFICEOF COMPETITIVEPROGRAMS

5 FOR FUNDAMENTAL RESEARCH.—

6 ‘‘(i) DEFINITION OF FUNDAMENTAL RE7 SEARCH.—In this subparagraph, the term

8 ‘fundamental research’ means research

9 that—

10 ‘‘(I) is directed toward greater

11 knowledge or understanding of the fun12 damental aspects of phenomena and

13 has the potential for broad, rather than

14 specific, application; and

15 ‘‘(II) has an effect on agriculture,

16 food, nutrition, human health, or an17 other purpose of this section.

18 ‘‘(ii) ESTABLISHMENT.—The Director

19 shall establish within the Institute an Office

20 of Competitive Programs for Fundamental

21 Research (referred to in this subparagraph

22 as the ‘Office’).

23 ‘‘(iii) DUTIES.—At the discretion of

24 the Director, the Office shall have responsi-
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1 bility for all competitive programs relating

2 to fundamental research.

3 ‘‘(C) OFFICEOF COMPETITIVEPROGRAMS

4 FOR APPLIED RESEARCH.—

5 ‘‘(i) DEFINITION OF APPLIED RE6 SEARCH.—In this subparagraph, the term

7 ‘applied research’ means research that ex8 pands on the findings of fundamental re9 search to uncover practical ways in which

10 new knowledge can be advanced to benefit

11 individuals and society.

12 ‘‘(ii) ESTABLISHMENT.—The Director

13 shall establish within the Institute an Office

14 of Competitive Programs for Applied Re15 search (referred to in this subparagraph as

16 the ‘Office’).

17 ‘‘(iii) DUTIES.—At the discretion of

18 the Director, the Office shall have responsi19 bility for all competitive programs relating

20 to applied research.

21 ‘‘(D) OFFICEOF COMPETITIVEPROGRAMS

22 FOR EDUCATION AND OTHER PURPOSES.—

23 ‘‘(i) ESTABLISHMENT.—The Director

24 shall establish within the Institute an Office

25 of Competitive Programs for Education and
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1 Other Purposes (referred to in this subpara2 graph as the ‘Office’).

3 ‘‘(ii) DUTIES.—At the discretion of the

4 Director, the Office shall have responsibility

5 for all competitive programs that provide

6 education fellowships and other education7 related grants.

8 ‘‘(2) COMPETITIVE PROGRAMS FOR FUNDA9 MENTAL AND APPLIED RESEARCH.—

10 ‘‘(A) DEFINITION OF A COMPETITIVE PRO11 GRAM FOR FUNDAMENTAL AND APPLIED RE12 SEARCH.—In this paragraph, the term ‘competi13 tive program for fundamental and applied re14 search’ means—

15 ‘‘(i) the competitive grant program es16 tablished under section 2 of the Competitive,

17 Special, and Facilities Research Grant Act

18 (7 U.S.C. 450i), commonly known as the

19 ‘National Research Initiative Competitive

20 Grants Program’; and

21 ‘‘(ii) any other competitive program

22 within the Institute that funds both funda23 mental and applied research, as determined

24 by the Director.
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1 ‘‘(B) PROGRAM ALLOCATIONS.—For pur2 poses of determining which Office established

3 under paragraph (1) should have primary re4 sponsibility for administering grants under a

5 competitive program for fundamental and ap6 plied research, the Director shall—

7 ‘‘(i) determine whether the grant under

8 the competitive program for fundamental

9 and applied research is principally related

10 to fundamental or applied research; and

11 ‘‘(ii) assign the grant to the appro12 priate Office.

13 ‘‘(3) RESPONSIBILITY OF THE DIRECTOR.—The

14 Director shall ensure that the Offices established

15 under paragraph (1) coordinate with each other Of16 fice for maximum efficiency.

17 ‘‘(f) REPORTING.—The Director shall submit to the

18 Secretary, the Committee on Agriculture and the Committee

19 on Appropriations of the House of Representatives, and the

20 Committee on Agriculture, Nutrition, and Forestry and the

21 Committee on Appropriations of the Senate—

22 ‘‘(1) not later than 1 year after the date of estab23 lishment of the Institute, and biennially thereafter, a

24 comprehensive report that—
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1 ‘‘(A) describes the research funded and other

2 activities carried out by the Institute during the

3 period covered by the report; and

4 ‘‘(B) describes each contract or other ar5 rangement that the Institute has entered into,

6 each grant awarded to the Institute, and each

7 other action of the Director taken, under sub8 section (c)(5)(C)(ii); and

9 ‘‘(2) not later than 1 year after the date of estab10 lishment of the Institute, and annually thereafter, a

11 report that describes the allocation and use of funds

12 under subsection (g)(2) of section 401 of the Agricul13 tural Research, Extension, and Education Reform Act

14 of 1998 (7 U.S.C. 7621).

15 ‘‘(g) FUNDING.—

16 ‘‘(1) IN GENERAL.—In addition to funds other17 wise appropriated to carry out each program admin18 istered by the Institute, there are authorized to be ap19 propriated such sums as are necessary to carry out

20 this section for each fiscal year.

21 ‘‘(2) ALLOCATION.—Funding made available

22 under paragraph (1) shall be allocated according to

23 recommendations contained in the roadmap described

24 in section 309(c)(1)(A).’’.
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1 (b) NATIONAL AGRICULTURAL RESEARCH, EXTEN2 SION, AND TEACHING POLICY ACT OF 1977.—Section

3 1408(b) of the National Agricultural Research, Extension,

4 and Teaching Policy Act of 1977 (7 U.S.C. 3123(b)) is

5 amended—

6 (1) in paragraph (1), by striking ‘‘31 members’’

7 and inserting ‘‘24 members’’;

8 (2) by striking paragraph (3) and inserting the

9 following:

10 ‘‘(3) MEMBERSHIP CATEGORIES.—The Advisory

11 Board shall consist of members from each of the fol12 lowing categories:

13 ‘‘(A) 1 member representing a national

14 farm organization.

15 ‘‘(B) 1 member representing farm coopera16 tives.

17 ‘‘(C) 1 member actively engaged in the pro18 duction of a food animal commodity.

19 ‘‘(D) 1 member actively engaged in the pro20 duction of a plant commodity.

21 ‘‘(E) 1 member actively engaged in aqua22 culture.

23 ‘‘(F) 1 member representing a national food

24 animal science society.
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1 ‘‘(G) 1 member representing a national

2 crop, soil, agronomy, horticulture, plant pathol3 ogy, or weed science society.

4 ‘‘(H) 1 member representing a national food

5 science organization.

6 ‘‘(I) 1 member representing a national

7 human health association.

8 ‘‘(J) 1 member representing a national nu9 tritional science society.

10 ‘‘(K) 1 member representing the land-grant

11 colleges and universities eligible to receive funds

12 under the Act of July 2, 1862 (7 U.S.C. 301 et

13 seq.).

14 ‘‘(L) 1 member representing the land-grant

15 colleges and universities eligible to receive funds

16 under the Act of August 30, 1890 (7 U.S.C. 321

17 et seq.), including Tuskegee University.

18 ‘‘(M) 1 member representing the 1994 Insti19 tutions (as defined in section 532 of the Equity

20 in Educational Land-Grant Status Act of 1994

21 (Public Law 103–382; 7 U.S.C. 301 note)).

22 ‘‘(N) 1 member representing Hispanic-serv23 ing institutions.

24 ‘‘(O) 1 member representing the American

25 Colleges of Veterinary Medicine.
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1 ‘‘(P) 1 member engaged in the transpor2 tation of food and agricultural products to do3 mestic and foreign markets.

4 ‘‘(Q) 1 member representing food retailing

5 and marketing interests.

6 ‘‘(R) 1 member representing food and fiber

7 processors.

8 ‘‘(S) 1 member actively engaged in rural

9 economic development.

10 ‘‘(T) 1 member representing a national con11 sumer interest group.

12 ‘‘(U) 1 member representing a national for13 estry group.

14 ‘‘(V) 1 member representing a national con15 servation or natural resource group.

16 ‘‘(W) 1 member representing private sector

17 organizations involved in international develop18 ment.

19 ‘‘(X) 1 member representing a national so20 cial science association.’’; and

21 (3) in paragraph (4), by striking ‘‘the Adminis22 trator of the Cooperative State Research, Education,

23 and Extension Service’’ and inserting ‘‘the Director of

24 the National Institute of Food and Agriculture’’.

25 (c) CONFORMING AMENDMENTS.—
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1 (1) Section 296(b) of the Department of Agri2 culture Reorganization Act of 1994 (7 U.S.C.

3 7014(b)) is amended—

4 (A) in paragraph (4), by striking ‘‘or’’ at

5 the end;

6 (B) in paragraph (5), by striking the period

7 at the end and inserting a semicolon; and

8 (C) by adding at the end the following:

9 ‘‘(6) the authority of the Secretary relating to the

10 National Institute of Food and Agriculture under sec11 tion 253; or’’.

12 (2) The National Agricultural Research, Exten13 sion, and Teaching Policy Act of 1977 is amended—

14 (A) in section 1424A(b) (7 U.S.C.

15 3174a(b)), by striking ‘‘the Cooperative State Re16 search, Education, and Extension Service’’ and

17 inserting ‘‘the National Institute of Food and

18 Agriculture’’; and

19 (B) in section 1458(a)(10) (7 U.S.C.

20 3291(a)(10)), by striking ‘‘the Cooperative State

21 Research, Education, and Extension Service’’

22 and inserting ‘‘the National Institute of Food

23 and Agriculture’’.

24 (3) Section 522(d)(2) of the Federal Crop Insur25 ance Act (7 U.S.C. 1522(d)(2)) is amended by strik-
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1 ing ‘‘the Cooperative State Research, Education, and

2 Extension Service’’ and inserting ‘‘the National Insti3 tute of Food and Agriculture’’.

4 (4) Section 524(a) of the Federal Crop Insurance

5 Act (7 U.S.C. 1524(a)) is amended in each of para6 graphs (1)(B) and (3)(A) by striking ‘‘the Cooperative

7 State Research, Education, and Extension Service’’

8 each place it appears and inserting ‘‘the National In9 stitute of Food and Agriculture’’.

10 (5) Section 306(a)(11)(C) of the Consolidated

11 Farm and Rural Development Act (7 U.S.C.

12 1926(a)(11)(C)) is amended by striking ‘‘the Coopera13 tive State Research, Education, and Extension Serv14 ice’’ and inserting ‘‘the National Institute of Food

15 and Agriculture’’.

16 (6) Section 704 of the Agriculture, Rural Devel17 opment, Food and Drug Administration, and Related

18 Agencies Appropriations Act, 2006 (7 U.S.C. 2209b),

19 is amended by striking ‘‘Cooperative State Research,

20 Education, and Extension Service’’ and inserting

21 ‘‘the National Institute of Food and Agriculture’’.

22 (7) Section 7404(b)(1)(B) of the Farm Security

23 and Rural Investment Act of 2002 (7 U.S.C. 3101

24 note; Public Law 107–171) is amended by striking

25 clause (vi) and inserting the following:
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1 ‘‘(vi) the National Institute of Food

2 and Agriculture.’’.

3 (8) Section 1499(c) of the Food, Agriculture,

4 Conservation, and Trade Act of 1990 (7 U.S.C.

5 5506(c)) is amended by striking ‘‘the Cooperative

6 State Research Service’’ and inserting ‘‘the National

7 Institute of Food and Agriculture’’.

8 (9) Section 1622 of the Food, Agriculture, Con9 servation, and Trade Act of 1990 (7 U.S.C. 5812) is

10 amended—

11 (A) in subsection (a)(1), by striking ‘‘the

12 Cooperative State Research Service’’ and insert13 ing ‘‘the National Institute of Food and Agri14 culture’’; and

15 (B) in subsection (b)(1), by striking sub16 paragraph (B) and inserting the following:

17 ‘‘(B) the National Institute of Food and Ag18 riculture;’’.

19 (10) Section 1668(b) of the Food, Agriculture,

20 Conservation, and Trade Act of 1990 (7 U.S.C.

21 5921(b)) is amended by striking ‘‘Cooperative State

22 Research, Education, and Extension Service and the

23 Agricultural Research Service’’ and inserting ‘‘the

24 National Institute of Food and Agriculture’’.
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1 (11) Section 1670(a)(4) of the Food, Agriculture,

2 Conservation, and Trade Act of 1990 (7 U.S.C.

3 5923(a)(4)) is amended by striking ‘‘the Adminis4 trator of the Cooperative State Research, Education,

5 and Extension Service’’ and inserting ‘‘the Director of

6 the National Institute of Food and Agriculture’’.

7 (12) Section 537 of the Federal Agriculture Im8 provement and Reform Act of 1996 (7 U.S.C. 7446)

9 is amended in each of subsections (a)(2) and

10 (b)(3)(B)(i) by striking ‘‘Cooperative State Research,

11 Education, and Extension Service’’ and inserting

12 ‘‘the National Institute of Food and Agriculture’’.

13 (13) Section 103(a) of the Agricultural Research,

14 Extension, and Education Reform Act of 1998 (7

15 U.S.C. 7613(a)) is amended—

16 (A) in the subsection heading, by striking

17 ‘‘COOPERATIVE STATE RESEARCH, EDUCATION,

18 AND EXTENSION SERVICE’’ and inserting ‘‘NA19 TIONAL INSTITUTEOF FOOD AND AGRI20 CULTURE’’; and

21 (B) in each of paragraphs (1) and (2)(A),

22 by striking ‘‘the Cooperative State Research,

23 Education, and Extension Service’’ and insert24 ing ‘‘the National Institute of Food and Agri25 culture’’.
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1 (14) Section 401(f)(5) of the Agricultural Re2 search, Extension, and Education Reform Act of 1998

3 (7 U.S.C. 7621(f)(5)) is amended by striking ‘‘the Co4 operative State Research, Education, and Extension

5 Service’’ and inserting ‘‘the National Institute of

6 Food and Agriculture’’.

7 (15) Section 407(c) of the Agricultural Research,

8 Extension, and Education Reform Act of 1998 (7

9 U.S.C. 7627(c)) is amended by striking ‘‘the Coopera10 tive State Research, Education, and Extension Serv11 ice’’ and inserting ‘‘the National Institute of Food

12 and Agriculture’’.

13 (16) Section 410(a) of the Agricultural Research,

14 Extension, and Education Reform Act of 1998 (7

15 U.S.C. 7630(a)) is amended by striking ‘‘the Admin16 istrator of the Cooperative State Research, Education,

17 and Extension Service’’ and inserting ‘‘the Director of

18 the National Institute of Food and Agriculture’’.

19 (17) Section 307(g)(5) of the Agricultural Risk

20 Protection Act of 2000 (7 U.S.C. 8606(g)(5)) is

21 amended by striking ‘‘Administrator of the Coopera22 tive State Research, Education, and Extension Serv23 ice’’ and inserting ‘‘the Director of the National Insti24 tute of Food and Agriculture’’.
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1 (18) Section 6(b) of the Cooperative Forestry As2 sistance Act of 1978 (16 U.S.C. 2103b(b)) is amended

3 by striking ‘‘the Cooperative State Research, Edu4 cation, and Extension Service, may provide technical,

5 financial, and related assistance to State foresters,

6 equivalent State officials, or Cooperative Extension

7 officials’’ and inserting ‘‘the National Institute of

8 Food and Agriculture, may provide technical, finan9 cial and related assistance to State foresters, equiva10 lent State officials, and Institute officials’’.

11 (19) Section 19 of the Cooperative Forestry As12 sistance Act of 1978 (16 U.S.C. 2113) is amended in

13 subsections (a)(2) and (b)(1)(B)(i), by striking ‘‘Ex14 tension Service,’’ each place it appears and inserting

15 ‘‘National Institute of Food and Agriculture,’’.

16 (20) Section 105(a) of the Africa: Seeds of Hope

17 Act of 1998 (22 U.S.C. 2293 note; Public Law 105–

18 385) is amended by striking ‘‘the Cooperative State

19 Research, Education, and Extension Service

20 (CSREES)’’ and inserting ‘‘the National Institute of

21 Food and Agriculture’’.

22 (21) Section 307(a)(4) of the National Aero23 nautic and Space Administration Authorization Act

24 of 2005 (42 U.S.C. 16657(a)(4)) is amended by strik25 ing subparagraph (B) and inserting the following:
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1 ‘‘(B) the program and structure of, peer re2 view process of, management of conflicts of inter3 est by, compensation of reviewers of, and the ef4 fects of compensation on reviewer efficiency and

5 quality within, the National Institute of Food

6 and Agriculture of the Department of Agri7 culture;’’.

8 SEC. 7402. COORDINATION OF AGRICULTURAL RESEARCH

9 SERVICE AND NATIONAL INSTITUTE OF FOOD

10 AND AGRICULTURE.

11 Title III of the Department of Agriculture Reorganiza12 tion Act of 1994 is amended by adding after section 308

13 (as added by section 7314) the following:

14 ‘‘SEC. 309. COORDINATION OF AGRICULTURAL RESEARCH

15 SERVICE AND NATIONAL INSTITUTE OF FOOD

16 AND AGRICULTURE.

17 ‘‘(a) IN GENERAL.—The Undersecretary for Research,

18 Education, and Economics shall coordinate the programs

19 under the authority of the Administrator of the Agricultural

20 Research Service and the Director of the National Institute

21 of Food and Agriculture, and the staff of the Administrator

22 and the Director, including national program leaders, shall

23 meet on a regular basis to—

24 ‘‘(1) increase coordination and integration of re25 search programs at the Agricultural Research Service
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1 and the research, extension, and education programs

2 of the National Institute of Food and Agriculture;

3 ‘‘(2) coordinate responses to emerging issues;

4 ‘‘(3) minimize duplication of work and resources

5 at the staff level of each agency;

6 ‘‘(4) use the extension and education program to

7 deliver knowledge to stakeholders;

8 ‘‘(5) address critical needs facing agriculture;

9 and

10 ‘‘(6) focus the research, extension, and education

11 funding strategy of the Department.

12 ‘‘(b) REPORTS.—Not later than 270 days after the date

13 of enactment of this section, and annually thereafter, the

14 Secretary shall submit to the Committee on Agriculture of

15 the House of Representatives and the Committee on Agri16 culture, Nutrition, and Forestry of the Senate a report de17 scribing efforts to increase coordination between the Agri18 cultural Research Service and the National Institute for

19 Food and Agriculture.

20 ‘‘(c) ROADMAP.—

21 ‘‘(1) IN GENERAL.—Not later than 180 days

22 after the date of enactment of this section, the Sec23 retary, acting through the Under Secretary for Re24 search, Education, and Economics shall—
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1 ‘‘(A) prepare a roadmap for agricultural re2 search, extension, and education that—

3 ‘‘(i) identifies major opportunities and

4 gaps in agricultural research, extension,

5 and education that no single entity in the

6 Department would be able to carry out in7 dividually, but that is necessary to carry

8 out agricultural research;

9 ‘‘(ii) involves—

10 ‘‘(I) stakeholders from across the

11 Federal Government;

12 ‘‘(II) stakeholders from across the

13 full array of nongovernmental entities;

14 and

15 ‘‘(III) the National Agricultural

16 Research, Extension, Education, and

17 Economics Advisory Board established

18 under section 1408 of the National Ag19 ricultural Research, Extension, and

20 Teaching Policy Act of 1977 (7 U.S.C.

21 3123);

22 ‘‘(iii) incorporates roadmaps for agri23 cultural research made publicly available by

24 other Federal entities, agencies, or offices;

25 and
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1 ‘‘(iv) describes recommended funding

2 levels for areas of agricultural research, ex3 tension, and education, including—

4 ‘‘(I) competitive programs; and

5 ‘‘(II) infrastructure programs,

6 with attention to the future growth

7 needs of small 1862 Institutions, 1890

8 Institutions, and 1994 Institutions (as

9 those terms are defined in section 2 of

10 the Agricultural Research, Extension,

11 and Education Reform Act of 1998 (7

12 U.S.C. 7601)), Hispanic-serving agri13 cultural colleges (as defined in section

14 1456(a) of the National Agricultural

15 Research, Extension and Teaching Pol16 icy Act of 1977), and any other public

17 college or university that is not such

18 an institution or college but that offers

19 a baccalaureate or higher degree in the

20 study of agriculture;

21 ‘‘(B) use the roadmap to set the research,

22 extension, and education agenda of the Depart23 ment; and

24 ‘‘(C) submit a description of the roadmap to

25 the Committee on Agriculture of the House of
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1 Representatives and the Committee on Agri2 culture, Nutrition, and Forestry of the Senate.

3 ‘‘(2) IMPLEMENTATION.—The Secretary, acting

4 through the Under Secretary, shall implement, to the

5 maximum extent practicable, the roadmap.

6 ‘‘(3) FUNDING.—There are authorized to be ap7 propriated such sums as are necessary to carry out

8 this subsection.’’.

9 Subtitle F—Miscellaneous

10 SEC. 7501. JOINT NUTRITION MONITORING AND RELATED

11 RESEARCH ACTIVITIES.

12 The Secretary and the Secretary of Health and

13 Human Services shall continue to provide jointly for na14 tional nutrition monitoring and related research activities

15 carried out as of the date of enactment of this Act—

16 (1) to collect continuous data relating to diet,

17 health, physical activity, and knowledge about diet

18 and health, using a nationally-representative sample;

19 (2) to periodically collect data described in para20 graph (1) on special at-risk populations, as identified

21 by the Secretaries;

22 (3) to distribute information on health, nutri23 tion, the environment, and physical activity to the

24 public in a timely manner;
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1 (4) to analyze new data as the data becomes

2 available;

3 (5) to continuously update food composition ta4 bles; and

5 (6) to research and develop data collection meth6 ods and standards.

7 SEC. 7502. DEMONSTRATION PROJECT AUTHORITY FOR

8 TEMPORARY POSITIONS.

9 Notwithstanding section 4703(d)(1) of title 5, United

10 States Code, the amendment to the personnel management

11 demonstration project established in the Department of Ag12 riculture (67 Fed. Reg. 70776 (2002)), shall become effective

13 upon the date of enactment of this Act and shall remain

14 in effect unless modified by law.

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

16 (a) REVIEW.—The Secretary of Agriculture (referred

17 to in this section as the ‘‘Secretary’’) shall work with uni18 versity partners in extension and research to review and

19 identify measures to streamline the submission, reporting

20 under, and implementation of plan of work requirements

21 including requirements under—

22 (1) sections 1444(d) and 1445(c) of the National

23 Agricultural Research, Extension, and Teaching Pol24 icy Act of 1977 (7 U.S.C. 3221(d), 3222(c));
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1 (2) section 7 of the Hatch Act of 1887 (7 U.S.C.

2 361g); and

3 (3) section 4 of the Smith-Lever Act (7 U.S.C.

4 344).

5 (b) REPORT.—

6 (1) IN GENERAL.—Not later than 180 days after

7 the date of enactment of this Act, the Secretary shall

8 submit to the Committee on Agriculture of the House

9 of Representatives and the Committee on Agriculture,

10 Nutrition, and Forestry of the Senate a report de11 scribing the results of the review conducted under sub12 section (a).

13 (2) INCLUSIONS.—The report shall include

14 recommendations—

15 (A) to reduce the administrative burden and

16 workload on institutions associated with plan of

17 work compliance while meeting the reporting

18 needs of the Department of Agriculture for input,

19 output, and outcome indicators;

20 (B) to streamline the submission and re21 porting requirements of the plan of work so that

22 the plan of work is of practical utility to both

23 the Department of Agriculture and the institu24 tions; and
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1 (C) for any legislative changes necessary to

2 carry out the plan of work improvements.

3 (c) CONSULTATION.—In carrying out this section, the

4 Secretary shall consult with land-grant colleges and univer5 sities (as defined in section 1404 of the National Agricul6 tural Research, Extension, and Teaching Policy Act of 1977

7 (7 U.S.C. 3103)).

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

9 FOODS.

10 (a) IN GENERAL.—The Secretary shall carry out a

11 study of, and prepare a report on, areas in the United

12 States with limited access to affordable and nutritious food,

13 with a particular focus on predominantly lower-income

14 neighborhoods and communities.

15 (b) CONTENTS.—The study and report shall—

16 (1) assess the incidence and prevalence of areas

17 with limited access to affordable and nutritious food

18 in the United States;

19 (2) identify—

20 (A) characteristics and factors causing and

21 influencing those areas; and

22 (B) the effect on local populations of limited

23 access to affordable and nutritious food; and
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1 (3) develop recommendations for addressing the

2 causes and influences of those areas through measures

3 including—

4 (A) community and economic development

5 initiatives;

6 (B) incentives for retail food market devel7 opment, including supermarkets, small grocery

8 stores, and farmers’ markets; and

9 (C) improvements to Federal food assistance

10 and nutrition education programs.

11 (c) COORDINATION WITH OTHER AGENCIES AND OR12 GANIZATIONS.—The Secretary shall conduct the study

13 under this section in coordination and consultation with—

14 (1) the Secretary of Health and Human Serv15 ices;

16 (2) the Administrator of the Small Business Ad17 ministration;

18 (3) the Institute of Medicine; and

19 (4) representatives of appropriate businesses,

20 academic institutions, and nonprofit and faith-based

21 organizations.

22 (d) REPORT TO CONGRESS.—Not later than 1 year

23 after the date of enactment of this Act, the Secretary shall

24 submit the report prepared under this section, including the
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1 findings and recommendations described in subsection (b),

2 to—

3 (1) the Committee on Agriculture of the House of

4 Representatives; and

5 (2) the Committee on Agriculture, Nutrition, and

6 Forestry of the Senate.

7 SEC. 7505. SENSE OF SENATE REGARDING ORGANIC RE8 SEARCH.

9 It is the sense of the Senate that—

10 (1) the Secretary should recognize that sales of

11 certified organic products have been expanding by 17

12 to 20 percent per year for more than a decade, but

13 research and outreach activities relating specifically

14 to certified organic production growth and processing

15 of agricultural products (as defined in section 2103 of

16 the Organic Foods Production Act of 1990 (7 U.S.C.

17 6502)) has not kept pace with this expansion;

18 (2) research conducted specifically on organic

19 methods and production systems benefits organic and

20 conventional producers and contributes to the stra21 tegic goals of the Department of Agriculture, resulting

22 in benefits for trade, human health, the environment,

23 and overall agricultural productivity;

24 (3) in order to meet the needs of the growing or25 ganic sector, the Secretary should use a portion of the
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1 total annual funds of the Agricultural Research Serv2 ice for research specific to organic food and agricul3 tural systems that is at least commensurate with the

4 market share of the organic sector of the domestic food

5 retail market; and

6 (4) the increase in funding described in para7 graph (3) should include funding for efforts—

8 (A) to establish long-term core capacities for

9 organic research;

10 (B) to assist organic farmers and farmers

11 intending to transition to organic production

12 systems; and

13 (C) to disseminate research results through

14 the Alternative Farming Systems Information

15 Center of the National Agriculture Library.

16 SEC. 7506. MODIFICATIONS TO INFORMATION TECHNOLOGY

17 SERVICE.

18 (a) IN GENERAL.—The Secretary shall not implement

19 any modification that reduces the availability or provision

20 of information technology service, or administrative man21 agement control of that service, including data or center

22 service agency, functions, and personnel at the National Fi23 nance Center and the National Information Technology

24 Center service locations, until the date that is 60 days after

25 the date on which the Committee on Agriculture of the
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1 House of Representatives and the Committee on Agri2 culture, Nutrition, and Forestry of the Senate receive a

3 written determination and report from the Chief Financial

4 Officer or Chief Information Officer of the Department of

5 Agriculture and the Secretary that states that the imple6 mentation of the modification is in the best interests of the

7 Department of Agriculture.

8 (b) REPORT ON PROPOSED MODIFICATIONS.—Not

9 later than 180 days after the date of enactment of this Act,

10 the Secretary shall submit to the Committee on Agriculture

11 of the House of Representatives, the Committee on Agri12 culture, Nutrition, and Forestry of the Senate, and the

13 Comptroller General a report on any proposed modification

14 to reduce the availability or provision of any information

15 technology service, or administrative management control

16 of such a service, including data or center service agency,

17 functions, and personnel at the National Finance Center

18 and National Technology Center service locations, that

19 includes—

20 (1) a business case analysis (including of the

21 near- and long-term costs and benefits to the Depart22 ment of Agriculture and all other Federal agencies

23 and departments that benefit from services provided

24 by the National Finance Center and the National In25 formation Technology Center service locations) of the
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1 proposed modifications, as compared with maintain2 ing administrative management control or informa3 tion technology service functions and personnel in the

4 existing structure and at present locations; and

5 (2) an analysis of the impact of any changes in

6 that administrative management control or informa7 tion technology service (including data or center serv8 ice agency, functions, and personnel) on the ability of

9 the National Finance Center and National Informa10 tion Technology Center service locations to provide, in

11 the near- and long-term, to all Federal agencies and

12 departments, cost-effective, secure, efficient, and

13 interoperable—

14 (A) information technology services;

15 (B) cross-servicing;

16 (C) e-payroll services; and

17 (D) human resource line-of-business serv18 ices.

19 (c) ASSESSMENT.—Not later than 90 days after the

20 date on which the Comptroller General receives the report

21 submitted under subsection (b), the Comptroller General

22 shall submit to the Committee on Agriculture of the House

23 of Representatives and the Committee on Agriculture, Nu24 trition, and Forestry of the Senate a detailed written assess25 ment of the report that includes an analysis (including of
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1 near- and long-term cost benefits and impacts) of the alter2 natives available to all Federal agencies and departments

3 to acquire cost-effective, secure, efficient, and interoperable

4 information technology, cross-servicing, e-payroll, and

5 human resource line-of-business services.

6 (d) OPERATING RESERVE.—

7 (1) IN GENERAL.—Of annual income amounts in

8 the working capital fund of the Department of Agri9 culture allocated for the National Finance Center, the

10 Secretary may reserve not more than 4 percent—

11 (A) for the replacement or acquisition of

12 capital equipment, including equipment for—

13 (i) the improvement and implementa14 tion of a financial management plan;

15 (ii) information technology; and

16 (iii) other systems of the National Fi17 nance Center; or

18 (B) to pay any unforeseen, extraordinary

19 costs of the National Finance Center.

20 (2) AVAILABILITY FOR OBLIGATION.—

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

22 subparagraph (B), none of the amounts reserved

23 under paragraph (1) shall be available for obli24 gation unless the Secretary submits notification

25 of the obligation to—
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1 (i) the Committees on Appropriations

2 and Agriculture of the House of Representa3 tives; and

4 (ii) the Committees on Appropriations

5 and Agriculture, Nutrition, and Forestry of

6 the Senate.

7 (B) EXCEPTION.—The limitation described

8 in subparagraph (A) shall not apply to any obli9 gation that, as determined by the Secretary, is

10 necessary—

11 (i) to respond to a declared state of

12 emergency that significantly impacts the

13 operations of the National Finance Center;

14 or

15 (ii) to evacuate employees of the Na16 tional Finance Center to a safe haven to

17 continue operations of the National Finance

18 Center.

19 SEC. 7507. STUDIES AND REPORTS BY THE DEPARTMENT OF

20 AGRICULTURE, THE DEPARTMENT OF

21 HEALTH AND HUMAN SERVICES, AND THE NA22 TIONAL ACADEMY OF SCIENCES ON FOOD

23 PRODUCTS FROM CLONED ANIMALS.

24 (a) STUDY BY THE DEPARTMENT OF AGRICULTURE.—
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1 (1) IN GENERAL.—The Secretary of Agriculture,

2 in coordination with the Economic Research Service,

3 and after consultation with the Secretary of Health

4 and Human Services, shall conduct a study and re5 port to Congress on the state of domestic and inter6 national markets for products from cloned animals,

7 including consumer acceptance. Such report shall be

8 submitted to Congress no later than 180 days after

9 the date of enactment of this Act.

10 (2) CONTENT.—The study and report under

11 paragraph (1) shall include a description of how

12 countries regulate the importation of food and agri13 cultural products (including dairy products), the

14 basis for such regulations, and potential obstacles to

15 trade.

16 (b) STUDY WITH THE NATIONAL ACADEMY OF

17 SCIENCES.—

18 (1) IN GENERAL.—The Secretary of Health and

19 Human Services shall contract with the National

20 Academy of Sciences to conduct a study and report

21 to Congress regarding the safety of food products de22 rived from cloned animals and the health effects and

23 costs attributable to milk from cloned animals in the

24 food supply. Such report shall be submitted to Con-
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1 gress no later than 1 year after the date of enactment

2 of this Act.

3 (2) CONTENT.—The study and report under

4 paragraph (1) shall include—

5 (A) a review and an assessment of whether

6 the studies (including peer review studies), data,

7 and analysis used in the draft risk assessment

8 issued by the Food and Drug Administration en9 titled Animal Cloning: A Draft Risk Assessment

10 (issued on December 28, 2006) supported the

11 conclusions drawn by such draft risk assessment

12 and—

13 (i) whether there were a sufficient

14 number of studies to support such conclu15 sions; and

16 (ii) whether additional pertinent stud17 ies and data exist which were not consid18 ered in the draft risk assessment and how

19 this additional information affects the con20 clusions drawn in such draft risk assess21 ment; and

22 (B) an evaluation and measurement of the

23 potential public health effects and associated

24 health care costs, including any consumer behav25 ior changes and negative impacts on nutrition,
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1 health, and chronic diseases that may result from

2 any decrease in dairy consumption, attributable

3 to the commercialization of milk from cloned

4 animals and their progeny.

5 (c) RULEOF CONSTRUCTION.—Nothing in this section

6 shall be construed to impede ongoing scientific research in

7 artificial reproductive health technologies.

8 (d) TIMEFRAME OF FINAL RISK ASSESSMENT.—Not9 withstanding any other provision of law, the Secretary of

10 Health and Human Services (acting through the Commis11 sioner of Food and Drugs) shall not issue the final risk as12 sessment on the safety of cloned animals and food products

13 derived from cloned animals until the date that the Sec14 retary of Agriculture and the Secretary of Health and

15 Human Services complete the studies required under this

16 section.

17 (e) CONTINUANCEOF MORATORIUM.—Any voluntary

18 moratorium on introducing food from cloned animals or

19 their progeny into the food supply shall remain in effect

20 at least until the date that the Secretary of Health and

21 Human Services (acting through the Commissioner of Food

22 and Drugs) issues the final risk assessment described in sub23 section (d).
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1 SEC. 7508. ANIMAL BIOSCIENCE FACILITY, BOZEMAN, MON2 TANA.

3 There is authorized to be appropriated to the Secretary

4 for the period of fiscal years 2008 through 2012

5 $16,000,000, to remain available until expended, for the

6 construction in Bozeman, Montana, of an animal bioscience

7 facility within the Agricultural Research Service.

8 TITLE VIII—FORESTRY

9 Subtitle A—Cooperative Forestry

10 Assistance Act of 1978

11 SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST

12 CONSERVATION.

13 Section 2 of the Cooperative Forestry Assistance Act

14 of 1978 (16 U.S.C. 2101) is amended—

15 (1) by redesignating subsections (c) and (d) as

16 subsections (e) and (f), respectively; and

17 (2) by inserting after subsection (b) the fol18 lowing:

19 ‘‘(c) PRIORITIES.—In allocating funds appropriated

20 or otherwise made available under this Act, the Secretary

21 shall focus on the following national private forest conserva22 tion priorities:

23 ‘‘(1) Conserving and managing working forest

24 landscapes for multiple values and uses.

25 ‘‘(2) Protecting forests from threats to forest and

26 forest health, including unnaturally large wildfires,
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1 hurricanes, tornadoes, windstorms, snow or ice

2 storms, flooding, drought, invasive species, insect or

3 disease outbreak, or development, and restoring ap4 propriate forest structures and ecological processes in

5 response to such threats.

6 ‘‘(3) Enhancing public benefits from private for7 ests, including air and water quality, forest products,

8 forestry-related jobs, production of renewable energy,

9 wildlife, enhanced biodiversity, the establishment or

10 maintenance of wildlife corridors and wildlife habi11 tat, and recreation.

12 ‘‘(d) REPORTING REQUIREMENT.—Not later than Sep13 tember 30, 2011, the Secretary shall submit to Congress a

14 report describing how funding was used under this Act to

15 address the national priorities specified in subsection (c)

16 and the outcomes achieved in meeting the national prior17 ities.’’.

18 SEC. 8002. COMMUNITY FOREST AND OPEN SPACE CON19 SERVATION PROGRAM.

20 (a) FINDINGS.—Congress finds that—

21 (1) the Forest Service projects that, by calendar

22 year 2030, approximately 44,000,000 acres of pri23 vately-owned forest land will be developed throughout

24 the United States;
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1 (2) public access to parcels of privately-owned

2 forest land for outdoor recreational activities, includ3 ing hunting, fishing, and trapping, has declined and,

4 as a result, participation in those activities has also

5 declined in cases in which public access is not se6 cured;

7 (3) rising rates of obesity and other public health

8 problems relating to the inactivity of the citizens of

9 the United States have been shown to be ameliorated

10 by improving public access to safe and attractive

11 areas for outdoor recreation;

12 (4) in rapidly-growing communities of all sizes

13 throughout the United States, remaining parcels of

14 forest land play an essential role in protecting public

15 water supplies;

16 (5) forest parcels owned by local governmental

17 entities and nonprofit organizations are providing

18 important demonstration sites for private landowners

19 to learn forest management techniques;

20 (6) throughout the United States, communities of

21 diverse types and sizes are deriving significant finan22 cial and community benefits from managing forest

23 land owned by local governmental entities for timber

24 and other forest products; and
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1 (7) there is an urgent need for local govern2 mental entities to be able to leverage financial re3 sources in order to purchase important parcels of pri4 vately-owned forest land as the parcels are offered for

5 sale.

6 (b) COMMUNITY FOREST AND OPEN SPACE CONSERVA7 TION PROGRAM.—The Cooperative Forestry Assistance Act

8 of 1978 is amended by inserting after section 7 (16 U.S.C.

9 2103c) the following:

10 ‘‘SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CON11 SERVATION PROGRAM.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) ELIGIBLEENTITY.—The term ‘eligible enti14 ty’ means a local governmental entity, Indian tribe,

15 or nonprofit organization that owns or acquires a

16 parcel under the program.

17 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has

18 the meaning given the term in section 4 of the Indian

19 Self-Determination and Education Assistance Act (25

20 U.S.C. 450b).

21 ‘‘(3) LOCAL GOVERNMENTAL ENTITY.—The term

22 ‘local governmental entity’ includes any municipal

23 government, county government, or other local govern24 ment body with jurisdiction over local land use deci25 sions.
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1 ‘‘(4) NONPROFIT ORGANIZATION.—The term

2 ‘nonprofit organization’ means any organization

3 that—

4 ‘‘(A) is described in section 170(h)(3) of the

5 Internal Revenue Code of 1986; and

6 ‘‘(B) operates in accordance with 1 or more

7 of the purposes specified in section 170(h)(4)(A)

8 of that Code.

9 ‘‘(5) PROGRAM.—The term ‘Program’ means the

10 community forest and open space conservation pro11 gram established under subsection (b).

12 ‘‘(6) SECRETARY.—The term ‘Secretary’ means

13 the Secretary of Agriculture, acting through the Chief

14 of the Forest Service.

15 ‘‘(b) ESTABLISHMENT.—The Secretary shall establish

16 a program, to be known as the ‘community forest and open

17 space conservation program’.

18 ‘‘(c) GRANT PROGRAM.—

19 ‘‘(1) IN GENERAL.—The Secretary may award

20 grants to eligible entities to acquire private forest

21 land, to be owned in fee simple, that—

22 ‘‘(A) are threatened by conversion to non23 forest uses; and

24 ‘‘(B) provide public benefits to communities,

25 including—
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1 ‘‘(i) economic benefits through sustain2 able forest management;

3 ‘‘(ii) environmental benefits, including

4 clean water and wildlife habitat;

5 ‘‘(iii) benefits from forest-based edu6 cational programs, including vocational

7 education programs in forestry;

8 ‘‘(iv) benefits from serving as models of

9 effectively-managed effective forest steward10 ship for private landowners; and

11 ‘‘(v) recreational benefits, including

12 hunting and fishing.

13 ‘‘(2) FEDERAL COST SHARE.—An eligible entity

14 may receive a grant under the Program in an

15 amount equal to not more than 50 percent of the cost

16 of acquiring 1 or more parcels, as determined by the

17 Secretary.

18 ‘‘(3) NON-FEDERAL SHARE.—As a condition of

19 receipt of the grant, an eligible entity that receives a

20 grant under the Program shall provide, in cash, do21 nation, or in kind, a non-Federal matching share in

22 an amount that is at least equal to the amount of the

23 grant received.

24 ‘‘(4) APPRAISAL OF PARCELS.—To determine the

25 non-Federal share of the cost of a parcel of privately-
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1 owned forest land under paragraph (2), an eligible

2 entity shall require appraisals of the land that com3 ply with the Uniform Appraisal Standards for Fed4 eral Land Acquisitions developed by the Interagency

5 Land Acquisition Conference.

6 ‘‘(5) APPLICATION.—An eligible entity that seeks

7 to receive a grant under the Program shall submit to

8 the State forester or equivalent official (or in the case

9 of an eligible entity that is an Indian tribe, an equiv10 alent official of the Indian tribe) an application that

11 includes—

12 ‘‘(A) a description of the land to be ac13 quired;

14 ‘‘(B) a forest plan that provides—

15 ‘‘(i) a description of community bene16 fits to be achieved from the acquisition of

17 the private forest land; and

18 ‘‘(ii) an explanation of the manner in

19 which any private forest land to be acquired

20 using funds from the grant will be man21 aged; and

22 ‘‘(C) such other relevant information as the

23 Secretary may require.

24 ‘‘(6) EFFECT ON TRUST LAND.—
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1 ‘‘(A) INELIGIBILITY.—The Secretary shall

2 not provide a grant under the Program for any

3 project on land held in trust by the United

4 States (including Indian reservations and allot5 ment land).

6 ‘‘(B) ACQUIRED LAND.—No land acquired

7 using a grant provided under the Program shall

8 be converted to land held in trust by the United

9 States on behalf of any Indian tribe.

10 ‘‘(7) APPLICATIONS TO SECRETARY.—The State

11 forester or equivalent official (or in the case of an eli12 gible entity that is an Indian tribe, an equivalent of13 ficial of the Indian tribe) shall submit to the Sec14 retary a list that includes a description of each

15 project submitted by an eligible entity at such times

16 and in such form as the Secretary shall prescribe.

17 ‘‘(d) DUTIES OF ELIGIBLE ENTITY.—An eligible

18 entity—

19 ‘‘(1) shall provide public access to, and manage,

20 forest land acquired with a grant under this section

21 in a manner that is consistent with the purposes for

22 which the land was acquired under the Program; and

23 ‘‘(2) shall not convert the property to other uses.

24 ‘‘(e) PROHIBITED USES.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

2 and (3), an eligible entity that acquires a parcel

3 under the Program shall not sell the parcel or convert

4 the parcel to nonforest use.

5 ‘‘(2) REIMBURSEMENT OF FUNDS.—An eligible

6 entity that sells or converts to nonforest use a parcel

7 acquired under the Program shall pay to the Federal

8 Government an amount equal to the greater of the

9 current sale price, or current appraised value, of the

10 parcel.

11 ‘‘(3) LOSS OF ELIGIBILITY.—An eligible entity

12 that sells or converts a parcel acquired under the Pro13 gram shall not be eligible for additional grants under

14 the Program.

15 ‘‘(f) STATE ADMINISTRATION AND TECHNICAL ASSIST16 ANCE.—To assist model stewardship of parcels acquired

17 under the Program, the Secretary may allocate not more

18 than 10 percent of all funds made available to carry out

19 the Program for each fiscal year to State foresters or equiva20 lent officials (including an equivalent official of an Indian

21 tribe) for Program administration and technical assistance.

22 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated such sums as are nec24 essary to carry out this section.’’.
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1 SEC. 8003. FEDERAL, STATE, AND LOCAL COORDINATION

2 AND COOPERATION.

3 Section 19(b)(2)(D) of the Cooperative Forestry Assist4 ance Act of 1978 (16 U.S.C. 2113(b)(2)(D)) is amended by

5 inserting ‘‘except for projects submitted by an Indian

6 tribe,’’ before ‘‘make recommendations’’.

7 SEC. 8004. COMPREHENSIVE STATEWIDE FOREST PLAN8 NING.

9 The Cooperative Forestry Assistance Act of 1978 is

10 amended—

11 (1) by redesignating section 20 (16 U.S.C. 2114)

12 as section 22; and

13 (2) by inserting after section 19 (16 U.S.C.

14 2113) the following:

15 ‘‘SEC. 20. COMPREHENSIVE STATEWIDE FOREST PLANNING.

16 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

17 a comprehensive statewide forest planning program under

18 which the Secretary shall provide financial and technical

19 assistance to States for use in the development and imple20 mentation of statewide forest resource assessments and

21 plans.

22 ‘‘(b) STATEWIDE FOREST RESOURCE ASSESSMENT

23 AND PLAN.—For a State to be eligible to receive funds

24 under this Act, not later than 2 years after the date of en25 actment of the Food and Energy Security Act of 2007, the

26 State Forester of the State, or an equivalent State official,
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1 shall develop a statewide forest resource assessment and

2 plan that, at a minimum—

3 ‘‘(1) identifies each critical forest resource area

4 in the State described in section 2(c);

5 ‘‘(2) to the maximum extent practicable—

6 ‘‘(A) incorporates any forest management

7 plan of the State in existence on the date of en8 actment of this section (including community

9 wildfire protection plans);

10 ‘‘(B) addresses the needs of the region, with11 out regard to the borders of each State of the re12 gion (or the political subdivisions of each State

13 of the region);

14 ‘‘(C) provides a comprehensive statewide

15 plan (including the opportunity for public par16 ticipation in the development of the statewide

17 plan) for—

18 ‘‘(i) managing the forest land in the

19 State;

20 ‘‘(ii) achieving the national priorities

21 specified in section 2(c)(2);

22 ‘‘(iii) monitoring the forest land in the

23 State; and

24 ‘‘(iv) administering any forestry-re25 lated Federal, State, or private grants
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1 awarded to the State under this section or

2 any other provisions of law; and

3 ‘‘(D) includes a multiyear, integrated forest

4 management strategy that provides a manage5 ment framework for—

6 ‘‘(i) the administration of each appli7 cable program of the State; and

8 ‘‘(ii) the use of any funds made avail9 able for the management of the forest land

10 in the State; and

11 ‘‘(3) is determined by the Secretary to be suffi12 cient to satisfy all relevant State planning and as13 sessment requirements under this Act.

14 ‘‘(c) COORDINATION.—In developing the statewide as15 sessment and plan under subsection (b), the State Forester

16 or equivalent State official shall—

17 ‘‘(1) coordinate with—

18 ‘‘(A) the State Forest Stewardship Coordi19 nation Committee established for the State under

20 section 19(b);

21 ‘‘(B) the State wildlife agency, with respect

22 to strategies contained in the State wildlife ac23 tion plans;

24 ‘‘(C) the State Technical Committee; and
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1 ‘‘(D) applicable Federal land management

2 agencies; and

3 ‘‘(2) for purposes of the Forest Legacy Program

4 under section 7, work cooperatively with the State

5 lead agency designated by the Governor.

6 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to carry out this section

8 $10,000,000 for each fiscal year.’’.

9 SEC. 8005. ASSISTANCE TO THE FEDERATED STATES OF MI10 CRONESIA, THE REPUBLIC OF THE MARSHALL

11 ISLANDS, AND THE REPUBLIC OF PALAU.

12 Section 13(d)(1) of the Cooperative Forestry Assistance

13 Act of 1978 (16 U.S.C. 2109(d)(1)) is amended by striking

14 ‘‘the Trust Territory of the Pacific Islands,’’ and inserting

15 ‘‘the Federated States of Micronesia, the Republic of the

16 Marshall Islands, the Republic of Palau,’’.

17 Subtitle B—Tribal-Forest Service

18 Cooperative Relations

19 SEC. 8101. DEFINITIONS.

20 In this subtitle:

21 (1) INDIAN.—The term ‘‘Indian’’ means an indi22 vidual who is a member of an Indian tribe.

23 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’—

24 (A) for purposes of title I, has the meaning

25 given the term in section 4 of the Indian Self-
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1 Determination and Education Assistance Act (25

2 U.S.C. 450b); and

3 (B) for purposes of title II, means any In4 dian or Alaska Native tribe, band, nation, pueb5 lo, village, or other community the name of

6 which is included on a list published by the Sec7 retary of the Interior pursuant to section 104 of

8 the Federally Recognized Indian Tribe List Act

9 of 1994 (25 U.S.C. 479a–1).

10 (3) NATIONAL FOREST SYSTEM.—The term ‘‘Na11 tional Forest System’’ has the meaning given the term

12 in section 11(a) of the Forest and Rangeland Renew13 able Resources Planning Act of 1974 (16 U.S.C.

14 1609(a)).

15 PART I—COLLABORATION BETWEEN INDIAN

16 TRIBES AND FOREST SERVICE

17 SEC. 8111. FOREST LEGACY PROGRAM.

18 (a) PARTICIPATION BY INDIAN TRIBES.—Section 7 of

19 the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.

20 2103c) is amended—

21 (1) in subsection (a), in the first sentence, by in22 serting ‘‘, including Indian tribes,’’ after ‘‘govern23 ment’’;

24 (2) in subsection (b), by inserting ‘‘or programs

25 of Indian tribes’’ after ‘‘regional programs’’;
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1 (3) in subsection (f), in the second sentence, by

2 striking ‘‘other appropriate State or regional natural

3 resource management agency’’ and inserting ‘‘other

4 appropriate natural resource management agency of

5 a State, region, or Indian tribe’’;

6 (4) in subsection (h)(2), by inserting ‘‘, includ7 ing an Indian tribe’’ before the period at the end; and

8 (5) in subsection (j)(2), in the first sentence, by

9 inserting ‘‘including Indian tribes,’’ after ‘‘govern10 mental units,’’.

11 (b) OPTIONAL STATEAND TRIBAL GRANTS.—Section

12 7(l) of the Cooperative Forestry Assistance Act of 1978 (16

13 U.S.C. 2103c(l)) is amended—

14 (1) in the subsection heading, by inserting ‘‘AND

15 TRIBAL’’ after ‘‘STATE’’;

16 (2) by redesignating paragraph (3) as para17 graph (4); and

18 (3) by striking paragraphs (1) and (2) and in19 serting the following:

20 ‘‘(1) DEFINITION OF INDIAN TRIBE.—In this sub21 section, the term ‘Indian tribe’ has the meaning given

22 the term in section 4 of the Indian Self-Determina23 tion and Education Assistance Act (25 U.S.C. 450b).

24 ‘‘(2) GRANTS.—On request of a participating

25 State or Indian tribe, the Secretary shall provide a
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1 grant to the State or Indian tribe to carry out the

2 Forest Legacy Program in the State or with the In3 dian tribe.

4 ‘‘(3) ADMINISTRATION.—If a State or Indian

5 tribe elects to receive a grant under this subsection—

6 ‘‘(A) the Secretary shall use a portion of the

7 funds made available under subsection (m), as

8 determined by the Secretary, to provide a grant

9 to the State or Indian tribe; and

10 ‘‘(B) the State or Indian tribe shall use the

11 grant to carry out the Forest Legacy Program in

12 the State or with the Indian tribe, including

13 through acquisition by the State or Indian tribe

14 of land and interests in land.

15 ‘‘(4) EFFECT ON TRUST LAND.—

16 ‘‘(A) INELIGIBILITY.—The Secretary shall

17 not provide a grant under this subsection for

18 any project on land held in trust by the United

19 States (including Indian reservations and allot20 ment land).

21 ‘‘(B) ACQUIRED LAND.—No land acquired

22 using a grant provided under this subsection

23 shall be converted to land held in trust by the

24 United States on behalf of any Indian tribe.’’.
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1 (c) CONFORMING AMENDMENTS.—Section 7(j)(1) of the

2 Cooperative Forestry Assistance Act of 1978 (16 U.S.C.

3 2103c(j)(1)) is amended by striking the first sentence and

4 inserting the following: ‘‘Fair market value shall be paid

5 for any property interest acquired (other than by donation)

6 under this section.’’.

7 SEC. 8112. FORESTRY AND RESOURCE MANAGEMENT AS8 SISTANCE FOR INDIAN TRIBES.

9 (a) DEFINITION OF ELIGIBLE INDIAN LAND.—In this

10 section, the term ‘‘eligible Indian land’’ means, with respect

11 to each participating Indian tribe—

12 (1) trust land located within the boundaries of

13 the reservation of the Indian tribe;

14 (2) land owned in fee by the Indian tribe; and

15 (3) trust land located outside the boundaries of

16 the reservation of the Indian tribe that is eligible for

17 use for land programs of the Indian tribe.

18 (b) AUTHORITY TO PROVIDE ASSISTANCE.—The Sec19 retary may provide financial, technical, educational, and

20 related assistance to any Indian tribe for—

21 (1) tribal consultation and coordination with the

22 Forest Service on issues relating to—

23 (A) access and use by members of the In24 dian tribe to National Forest System land and
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1 resources for traditional, religious, and cultural

2 purposes;

3 (B) coordinated or cooperative management

4 of resources shared by the Forest Service and the

5 Indian tribe; or

6 (C) the provision of tribal traditional, cul7 tural, or other expertise or knowledge;

8 (2) projects and activities for conservation edu9 cation and awareness with respect to forest land or

10 grassland that is eligible Indian land; and

11 (3) technical assistance for forest resources plan12 ning, management, and conservation on eligible In13 dian land.

14 (c) REQUIREMENTS.—

15 (1) IN GENERAL.—During any fiscal year, an

16 Indian tribe may participate in only 1 approved ac17 tivity that receives assistance under—

18 (A) subsection (b)(3); or

19 (B) the forest stewardship program under

20 section 5 of the Cooperative Forestry Assistance

21 Act of 1978 (16 U.S.C. 2103a).

22 (d) IMPLEMENTATION.—

23 (1) IN GENERAL.—Not later than 18 months

24 after the date of enactment of this Act, the Secretary

25 shall promulgate regulations to implement subsection
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1 (b), including rules for determining the distribution

2 of assistance under that subsection.

3 (2) CONSULTATION.—In developing regulations

4 pursuant to paragraph (1), the Secretary shall con5 duct full, open, and substantive consultation with In6 dian tribal governments and other representatives of

7 Indian tribes.

8 (e) COORDINATION WITH SECRETARY OF INTERIOR.—

9 In carrying out this section, the Secretary shall coordinate

10 with the Secretary of the Interior to ensure that activities

11 under subsection (b)—

12 (1) do not conflict with Indian tribal programs

13 provided by the Department of the Interior; and

14 (2) achieve the goals established by the affected

15 Indian tribes.

16 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

17 authorized to be appropriated such sums as are necessary

18 to carry out this section.

19 PART II—CULTURAL AND HERITAGE

20 COOPERATION AUTHORITY

21 SEC. 8121. PURPOSES.

22 The purposes of this part are—

23 (1) to authorize the reburial of human remains

24 and cultural items, including human remains and

25 cultural items repatriated under the Native American
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1 Graves Protection and Repatriation Act (25 U.S.C.

2 3001 et seq.), on National Forest System land;

3 (2) to prevent the unauthorized disclosure of in4 formation regarding reburial sites, including—

5 (A) the quantity and identity of human re6 mains and cultural items on the sites; and

7 (B) the location of the sites;

8 (3) to authorize the Secretary to ensure access to

9 National Forest System land, to the maximum extent

10 practicable, by Indians and Indian tribes for tradi11 tional and cultural purposes;

12 (4) to authorize the Secretary to provide forest

13 products free of charge to Indian tribes for traditional

14 and cultural purposes;

15 (5) to authorize the Secretary to protect the con16 fidentiality of certain information, including infor17 mation that is culturally sensitive to Indian tribes;

18 (6) to increase the availability of Forest Service

19 programs and resources to Indian tribes in support of

20 the policy of the United States to promote tribal sov21 ereignty and self-determination; and

22 (7) to strengthen support for the policy of the

23 United States of protecting and preserving the tradi24 tional, cultural, and ceremonial rites and practices of

25 Indian tribes, in accordance with Public Law 95–341
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1 (commonly known as the ‘‘American Indian Religious

2 Freedom Act’’) (42 U.S.C. 1996).

3 SEC. 8122. DEFINITIONS.

4 In this part:

5 (1) ADJACENT SITE.—The term ‘‘adjacent site’’

6 means a site that borders a boundary line of National

7 Forest system land.

8 (2) CULTURAL ITEMS.—

9 (A) IN GENERAL.—The term ‘‘cultural

10 items’’ has the meaning given the term in section

11 2 of the Native American Graves Protection and

12 Repatriation Act (25 U.S.C. 3001).

13 (B) EXCEPTION.—The term ‘‘cultural

14 items’’ does not include human remains.

15 (3) HUMAN REMAINS.—The term ‘‘human re16 mains’’ means the physical remains of the body of a

17 person of Indian ancestry.

18 (4) LINEAL DESCENDANT.—The term ‘‘lineal de19 scendant’’ means an individual that can trace, di20 rectly and without interruption, the ancestry of the

21 individual through the traditional kinship system of

22 an Indian tribe, or through the common law system

23 of descent, to a known Indian, the human remains,

24 funerary objects, or other sacred objects of whom are

25 claimed by the individual.
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1 (5) REBURIAL SITE.—The term ‘‘reburial site’’

2 means a discrete physical location at which cultural

3 items or human remains are reburied.

4 (6) TRADITIONAL AND CULTURAL PURPOSE.—

5 The term ‘‘traditional and cultural purpose’’, with re6 spect to a definable use, area, or practice, means that

7 the use, area, or practice is identified by an Indian

8 tribe as traditional or cultural because of the long-es9 tablished significance or ceremonial nature of the use,

10 area, or practice to the Indian tribe.

11 SEC. 8123. REBURIAL OF HUMAN REMAINS AND CULTURAL

12 ITEMS.

13 (a) REBURIAL SITES.—In consultation with an af14 fected Indian tribe or lineal descendant, the Secretary may

15 authorize the use of National Forest System land by the

16 Indian tribe or lineal descendant for the reburial of human

17 remains or cultural items in the possession of the Indian

18 tribe or lineal descendant that have been disinterred from

19 National Forest System land or an adjacent site.

20 (b) REBURIAL.—With the consent of the affected In21 dian tribe or lineal descendent, the Secretary may recover

22 and rebury, at Federal expense or using other available

23 funds, human remains and cultural items described in sub24 section (a) at the National Forest System land identified

25 under that subsection.
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1 (c) AUTHORIZATION OF USE.—

2 (1) IN GENERAL.—Subject to paragraph (2), the

3 Secretary may authorize such uses on reburial sites or

4 adjacent sites as the Secretary determines to be nec5 essary for management of the National Forest System.

6 (2) AVOIDANCEOF ADVERSEIMPACTS.—In car7 rying out paragraph (1), the Secretary shall avoid

8 adverse impacts to cultural items and human re9 mains, to the maximum extent practicable.

10 SEC. 8124. TEMPORARY CLOSURE FOR TRADITIONAL AND

11 CULTURAL PURPOSES.

12 (a) RECOGNITION OF HISTORIC USE.—The Secretary

13 shall, to the maximum extent practicable, ensure access to

14 National Forest System land by Indians for traditional and

15 cultural purposes, in accordance with subsection (b), in rec16 ognition of the historic use by Indians of National Forest

17 System land.

18 (b) CLOSING LAND FROM PUBLIC ACCESS.—

19 (1) IN GENERAL.—On receipt of a request from

20 an Indian tribe, the Secretary may temporarily close

21 from public access specifically designated National

22 Forest System land to protect the privacy of tribal ac23 tivities for traditional and cultural purposes.

24 (2) LIMITATION.—A closure of National Forest

25 System land under paragraph (1) shall affect the
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1 smallest practicable area for the minimum period

2 necessary for activities of the applicable Indian tribe.

3 (3) CONSISTENCY.—Access by Indian tribes to

4 National Forest System land under this subsection

5 shall be consistent with the purposes of Public Law

6 95–341 (commonly known as the ‘‘American Indian

7 Religious Freedom Act’’) (42 U.S.C. 1996).

8 SEC. 8125. FOREST PRODUCTS FOR TRADITIONAL AND CUL9 TURAL PURPOSES.

10 (a) IN GENERAL.—Notwithstanding section 14 of the

11 National Forest Management Act of 1976 (16 U.S.C. 472a),

12 the Secretary may provide free of charge to Indian tribes

13 any trees, portions of trees, or forest products from National

14 Forest System land for traditional and cultural purposes.

15 (b) PROHIBITION.—Trees, portions of trees, or forest

16 products provided under subsection (a) may not be used for

17 commercial purposes.

18 SEC. 8126. PROHIBITION ON DISCLOSURE.

19 (a) NONDISCLOSUREOF INFORMATION.—

20 (1) IN GENERAL.—The Secretary shall not dis21 close under section 552 of title 5, United States Code

22 (commonly known as the ‘‘Freedom of Information

23 Act’’), any information relating to—
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1 (A) subject to subsection (b)(l), human re2 mains or cultural items reburied on National

3 Forest System land under section 8123; or

4 (B) subject to subsection (b)(2), resources,

5 cultural items, uses, or activities that—

6 (i) have a traditional and cultural

7 purpose; and

8 (ii) are provided to the Secretary by

9 an Indian or Indian tribe under an express

10 expectation of confidentiality in the context

11 of forest and rangeland research activities

12 carried out under the authority of the For13 est Service.

14 (2) LIMITATIONS ON DISCLOSURE.—Subject to

15 subsection (b)(2), the Secretary shall not be required

16 to disclose information under section 552 of title 5,

17 United States Code (commonly known as the ‘‘Free18 dom of Information Act’’), concerning the identity,

19 use, or specific location in the National Forest System

20 of—

21 (A) a site or resource used for traditional

22 and cultural purposes by an Indian tribe; or

23 (B) any cultural items not covered under

24 section 8123.

25 (b) LIMITED RELEASE OF INFORMATION.—
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1 (1) REBURIAL.—The Secretary may disclose in2 formation described in subsection (a)(l)(A) if, before

3 the disclosure, the Secretary—

4 (A) consults with an affected Indian tribe

5 or lineal descendent;

6 (B) determines that disclosure of the

7 information—

8 (i) would advance the purposes of this

9 part; and

10 (ii) is necessary to protect the human

11 remains or cultural items from harm, theft,

12 or destruction; and

13 (C) attempts to mitigate any adverse im14 pacts identified by an Indian tribe or lineal de15 scendant that reasonably could be expected to re16 sult from disclosure of the information.

17 (2) OTHER INFORMATION.—The Secretary may

18 disclose information described under paragraph

19 (1)(B) or (2) of subsection if the Secretary determines

20 that disclosure of the information to the public—

21 (A) would advance the purposes of this

22 part;

23 (B) would not create an unreasonable risk

24 of harm, theft, or destruction of the resource, site,
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1 or object, including individual organic or inor2 ganic specimens; and

3 (C) would be consistent with other applica4 ble laws.

5 SEC. 8127. SEVERABILITY AND SAVINGS PROVISIONS.

6 (a) SEVERABILITY.—If any provision of this part, or

7 the application of any provision of this part to any person

8 or circumstance, is held invalid, the application of such

9 provision or circumstance and the remainder of this part

10 shall not be affected thereby.

11 (b) SAVINGS.—Nothing in this part—

12 (1) diminishes or expands the trust responsi13 bility of the United States to Indian tribes, or any

14 legal obligation or remedy resulting from that respon15 sibility;

16 (2) alters, abridges, repeals, or affects any valid

17 agreement between the Forest Service and an Indian

18 tribe;

19 (3) alters, abridges, diminishes, repeals, or af20 fects any reserved or other right of an Indian tribe;

21 or

22 (4) alters, abridges, diminishes, repeals, or af23 fects any other valid existing right relating to Na24 tional Forest System land or other public land.
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1 Subtitle C—Amendments to Other

2 Laws

3 SEC. 8201. RENEWABLE RESOURCES EXTENSION ACTIVI4 TIES.

5 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 6

6 of the Renewable Resources Extension Act of 1978 (16

7 U.S.C. 1675) is amended in the first sentence by striking

8 ‘‘2007’’ and inserting ‘‘2012’’.

9 (b) TERMINATION DATE.—Section 8 of the Renewable

10 Resources Extension Act of 1978 (16 U.S.C. 1671 note; Pub11 lic Law 95–306) is amended by striking ‘‘2007’’ and insert12 ing ‘‘2012’’.

13 SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

14 Section 2405(d) of the Global Climate Change Preven15 tion Act of 1990 (7 U.S.C. 6704(d)) is amended by striking

16 ‘‘2007’’ and inserting ‘‘2012’’.

17 SEC. 8203. GREEN MOUNTAIN NATIONAL FOREST BOUND18 ARY ADJUSTMENT.

19 (a) IN GENERAL.—The boundary of the Green Moun20 tain National Forest is modified to include the 12 des21 ignated expansion units as generally depicted on the forest

22 maps entitled ‘‘Green Mountain Expansion Area Map I’’

23 and ‘‘Green Mountain Expansion Area Map II’’ and dated

24 February 20, 2002 (copies of which shall be on file and

25 available for public inspection in the Office of the Chief of
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1 the Forest Service, Washington, District of Columbia), and

2 more particularly described according to the site specific

3 maps and legal descriptions on file in the office of the Forest

4 Supervisor, Green Mountain National Forest.

5 (b) MANAGEMENT.—Federally owned land delineated

6 on the maps acquired for National Forest purposes shall

7 continue to be managed in accordance with the laws (in8 cluding regulations) applicable to the National Forest Sys9 tem.

10 (c) LAND AND WATER CONSERVATION FUND.—For the

11 purposes of section 7 of the Land and Water Conservation

12 Fund Act of 1965 (16 U.S.C. 460 l–9), the boundaries of

13 the Green Mountain National Forest, as adjusted by this

14 section, shall be considered to be the boundaries of the na15 tional forest as of January 1, 1965.

16 SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.

17 (a) IN GENERAL.—The Lacey Act Amendments of

18 1981 are amended—

19 (1) in section 2 (16 U.S.C. 3371)—

20 (A) by striking subsection (f) and inserting

21 the following:

22 ‘‘(f) PLANT.—

23 ‘‘(1) IN GENERAL.—The term ‘plant’ means any

24 wild member of the plant kingdom, including roots,

25 seeds, parts, and products thereof.
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1 ‘‘(2) EXCLUSIONS.—

2 ‘‘(A) IN GENERAL.—Subject to subpara3 graph (B), the term ‘plant’ excludes—

4 ‘‘(i) any cultivar or common food crop;

5 or

6 ‘‘(ii) a plant intended to remain plant7 ed, to be planted, or replanted (including

8 roots, seeds, and germplasm) that is—

9 ‘‘(I)(aa) imported into the United

10 States accompanied by a

11 phytosanitary certificate issued by the

12 national plant protection organization

13 of the country of origin or trans14 shipment country; or

15 ‘‘(bb) precleared for entry by the

16 Secretary; or

17 ‘‘(II) a domestically produced

18 plant, or derived from a domestically

19 produced plant, that is—

20 ‘‘(aa) moving in interstate

21 commerce; and

22 ‘‘(bb) not listed pursuant to

23 any State law that provides for

24 the conservation of species threat25 ened with extinction.
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1 ‘‘(B) LIMITATION.—The exclusions in sub2 paragraph (A) do not apply to a plant listed—

3 ‘‘(i) on an appendix to the Convention

4 on International Trade in Endangered Spe5 cies of Wild Fauna and Flora, done at

6 Washington on March 3, 1973 (27 UST

7 1087; TIAS 8249); or

8 ‘‘(ii) as an endangered or threatened

9 species under the Endangered Species Act of

10 1973 (16 U.S.C. 1531 et seq.).’’.

11 (B) in subsection (h), by inserting ‘‘also’’

12 after ‘‘plants the term’’; and

13 (C) by striking subsection (j) and inserting

14 the following:

15 ‘‘(j) TAKEN AND TAKING.—

16 ‘‘(1) TAKEN.—The term ‘taken’ means captured,

17 killed, or collected and, with respect to a plant, also

18 means harvested, cut, logged, or removed.

19 ‘‘(2) TAKING.—The term ‘taking’ means the act

20 by which fish, wildlife, or plants are taken.’’;

21 (2) in section 3 (16 U.S.C. 3372)—

22 (A) in subsection (a)—

23 (i) in paragraph (2), by striking sub24 paragraph (B) and inserting the following:

25 ‘‘(B) any plant—
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1 ‘‘(i) taken, possessed, transported, or

2 sold, in violation of any law or regulation

3 of any State, or any foreign law, that pro4 tects plants or that regulates—

5 ‘‘(I) the theft of plants;

6 ‘‘(II) the taking of plants from a

7 park, forest reserve, or other officially

8 protected area;

9 ‘‘(III) the taking of plants from

10 an officially designated area; or

11 ‘‘(IV) the taking of plants with12 out, or contrary to, required authoriza13 tion;

14 ‘‘(ii) taken, possessed, transported, or

15 sold, without the payment of royalties,

16 taxes, or stumpage fees required for the

17 plant by any law or regulation of any State

18 or any foreign law; or

19 ‘‘(iii) taken, possessed, transported, or

20 sold, in violation of any limitation under

21 any law or regulation of any State or under

22 any foreign law; or’’; and

23 (ii) in paragraph (3), by striking sub24 paragraph (B) and inserting the following:

25 ‘‘(B) to possess any plant—
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1 ‘‘(i) taken, possessed, transported, or

2 sold, in violation of any law or regulation

3 of any State, or any foreign law, that pro4 tects plants or that regulates—

5 ‘‘(I) the theft of plants;

6 ‘‘(II) the taking of plants from a

7 park, forest reserve, or other officially

8 protected area;

9 ‘‘(III) the taking of plants from

10 an officially designated area; or

11 ‘‘(IV) the taking of plants with12 out, or contrary to, required authoriza13 tion;

14 ‘‘(ii) taken, possessed, transported, or

15 sold, without the payment of royalties,

16 taxes, or stumpage fees required for the

17 plant by any law or regulation of any State

18 or any foreign law; or

19 ‘‘(iii) taken, possessed, transported, or

20 sold, in violation of any limitation under

21 any law or regulation of any State or under

22 any foreign law; governing the export or

23 transshipment of plants; or’’; and

24 (B) by adding at the end the following:

25 ‘‘(f) PLANT DECLARATIONS.—
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1 ‘‘(1) IN GENERAL.—Effective 180 days from the

2 date of enactment of this subsection and except as

3 provided in paragraph (3), it shall be unlawful for

4 any person to import any plant unless the person

5 files upon importation where clearance is requested a

6 declaration that contains—

7 ‘‘(A) the scientific name of any plant (in8 cluding the genus and species of the plant) con9 tained in the importation;

10 ‘‘(B) a description of—

11 ‘‘(i) the value of the importation; and

12 ‘‘(ii) the quantity, including the unit

13 of measure, of the plant; and

14 ‘‘(C) the name of the country from which

15 the plant was taken.

16 ‘‘(2) DECLARATION RELATING TO PLANT PROD17 UCTS.—Until the date on which the Secretary pro18 mulgates a regulation under paragraph (6), a dec19 laration relating to a plant product shall—

20 ‘‘(A) in the case in which the species of

21 plant used to produce the plant product that is

22 the subject of the importation varies, and the

23 species used to produce the plant product is un24 known, contain the name of each species of plant
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1 that may have been used to produce the plant

2 product; and

3 ‘‘(B) in the case in which the species of

4 plant used to produce the plant product that is

5 the subject of the importation is commonly taken

6 from more than 1 country, and the country from

7 which the plant was taken and used to produce

8 the plant product is unknown, contain the name

9 of each country from which the plant may have

10 been taken.

11 ‘‘(3) EXCLUSIONS.—Paragraphs (1) and (2)

12 shall not apply to plants used exclusively as pack13 aging materials to support, protect, or carry another

14 item, unless the packaging materials are the items

15 being imported.

16 ‘‘(4) REVIEW.—

17 ‘‘(A) IN GENERAL.—Not later than 2 years

18 after the date of enactment of this subsection, the

19 Secretary shall review the implementation of

20 each requirement described in paragraphs (1)

21 and (2).

22 ‘‘(B) REVIEW OF EXCLUDED WOOD AND

23 PAPER PACKAGING MATERIALS.—The

24 Secretary—
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1 ‘‘(i) shall, in conducting the review

2 under subparagraph (A), consider the effect

3 of excluding the materials described in

4 paragraph (3); and

5 ‘‘(ii) may limit the scope of the exclu6 sions under paragraph (3) if the Secretary

7 determines, based on the review, that the

8 limitations in scope are warranted.

9 ‘‘(5) REPORT.—

10 ‘‘(A) IN GENERAL.—Not later than 180

11 days after the date on which the Secretary com12 pletes the review under paragraph (4), the Sec13 retary shall submit to the appropriate commit14 tees of Congress a report containing—

15 ‘‘(i) an evaluation of—

16 ‘‘(I) the effectiveness of each type

17 of information required under para18 graphs (1) and (2) in assisting enforce19 ment of section 3; and

20 ‘‘(II) the potential to harmonize

21 each requirement described in para22 graphs (1) and (2) with other applica23 ble import regulations in existence as

24 of the date of the report;
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1 ‘‘(ii) recommendations for such legisla2 tion as the Secretary determines to be ap3 propriate to assist in the identification of

4 plants that are imported into the United

5 States in violation of section 3; and

6 ‘‘(iii) an analysis of the effect of the

7 provisions of subsection (a) and (f) on—

8 ‘‘(I) the cost of legal plant im9 ports; and

10 ‘‘(II) the extent and methodology

11 of illegal logging practices and traf12 ficking.

13 ‘‘(B) PUBLIC PARTICIPATION.—In con14 ducting the review under paragraph (4), the Sec15 retary shall provide public notice and an oppor16 tunity for comment.

17 ‘‘(6) PROMULGATION OF REGULATIONS.—Not

18 later than 180 days after the date on which the Sec19 retary completes the review under paragraph (4), the

20 Secretary may promulgate regulations—

21 ‘‘(A) to limit the applicability of any re22 quirement described in paragraph (2) to specific

23 plant products;

24 ‘‘(B) to make any other necessary modifica25 tion to any requirement described in paragraph
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1 (2), as determined by the Secretary based on the

2 review under paragraph (4); and

3 ‘‘(C) to limit the scope of the exclusions

4 under paragraph (3) if the Secretary determines,

5 based on the review under paragraph (4), that

6 the limitations in scope are warranted.’’;

7 (3) in section 4 (16 U.S.C. 3373)—

8 (A) by striking ‘‘subsections (b) and (d)’’

9 each place it appears and inserting ‘‘subsections

10 (b), (d), and (f)’’;

11 (B) by striking ‘‘section 3(d)’’ each place it

12 appears and inserting ‘‘subsection (d) or (f) of

13 section 3’’; and

14 (C) in subsection (a)(2), by striking ‘‘sub15 section 3(b)’’ and inserting ‘‘subsection (b) or

16 subsection (f) of section 3, except as provided in

17 paragraph (1),’’;

18 (4) by adding at the end of section 5 (16 U.S.C.

19 3374) the following:

20 ‘‘(d) CIVIL FORFEITURES.—Civil forfeitures under this

21 section shall be governed by the provisions of chapter 46

22 of title 18, United States Code.’’; and

23 (5) in section 7(a)(1) (16 U.S.C. 3376(a)(1)), by

24 striking ‘‘section 4’’ and inserting ‘‘section 3(f), sec25 tion 4,’’.
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1 (b) TECHNICAL CORRECTION.—

2 (1) IN GENERAL.—Section 102(c) of Public Law

3 100–653 (102 Stat. 3825) is amended by striking

4 ‘‘(other than section 3(b))’’ and inserting ‘‘(other than

5 subsection 3(b))’’.

6 (2) EFFECTIVE DATE.—The amendment made by

7 paragraph (1) takes effect on November 14, 1988.

8 (c) EXCLUSIONS.—

9 (A) The term plant excludes—

10 (i) any cultivar or common food crop; or

11 (ii) plants intended to remain planted, to

12 be planted or replanted (including roots, seeds,

13 and germplasm) that are—

14 (I) imported into the United States ac15 companied by a phytosanitary certificate

16 issued by the national plant protection or17 ganization of the country of origin or trans18 shipment country, or that have been

19 precleared for entry by the Secretary; or

20 (II) domestically produced, or derived

21 from domestically produced plants, moving

22 in interstate commerce; or

23 (iii) non-woody plant material, from plants

24 lacking a well-defined stem or stems and a more
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1 or less definite crown including roots, seeds, and

2 germplasm, intended for research;

3 (B) The exclusions in paragraph (A) do not

4 apply to plants listed—

5 (i) on an appendix to the Convention on

6 International Trade in Endangered Species of

7 Wild Fauna and Flora (27 UST 1087; TIAS

8 8249);

9 (ii) as an endangered or threatened species

10 under the Endangered Species Act of 1973 (16

11 U.S.C. 1531 et seq.); or

12 (iii) pursuant to any State law that pro13 vides for the conservation of species threatened

14 with extinction.

15 SEC. 8205. SALE AND EXCHANGE OF NATIONAL FOREST SYS16 TEM LAND, VERMONT.

17 (a) DEFINITIONS.—In this section:

18 (1) BROMLEY.—The term ‘‘Bromley’’ means

19 Bromley Mountain Ski Resort, Inc.

20 (2) MAP.—The term ‘‘map’’ means the map enti21 tled ‘‘Proposed Bromley Land Sale or Exchange’’ and

22 dated April 7, 2004.

23 (3) STATE.—The term ‘‘State’’ means the State

24 of Vermont.
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1 (b) SALEOR EXCHANGEOF GREEN MOUNTAIN NA2 TIONAL FOREST LAND.—

3 (1) IN GENERAL.—The Secretary may, under

4 any terms and conditions that the Secretary may pre5 scribe, sell or exchange any right, title, and interest

6 of the United States in and to the parcels of National

7 Forest System land described in paragraph (2).

8 (2) DESCRIPTION OF LAND.—The parcels of Na9 tional Forest System land referred to in paragraph

10 (1) are the 5 parcels of land in Bennington County

11 in the State, as generally depicted on the map.

12 (3) MAP AND LEGAL DESCRIPTIONS.—

13 (A) IN GENERAL.—The map shall be on file

14 and available for public inspection in—

15 (i) the office of the Chief of the Forest

16 Service; and

17 (ii) the office of the Supervisor of the

18 Green Mountain National Forest.

19 (B) MODIFICATIONS.—The Secretary may

20 modify the map and legal descriptions to—

21 (i) correct technical errors; or

22 (ii) facilitate the conveyance under

23 paragraph (1).

24 (4) CONSIDERATION.—Consideration for the sale

25 or exchange of land described in paragraph (2)—
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1 (A) shall be equal to an amount that is not

2 less than the fair market value of the land sold

3 or exchanged; and

4 (B) may be in the form of cash, land, or a

5 combination of cash and land.

6 (5) APPRAISALS.—Any appraisal carried out to

7 facilitate the sale or exchange of land under para8 graph (1) shall conform with the Uniform Appraisal

9 Standards for Federal Land Acquisitions.

10 (6) METHODS OF SALE.—

11 (A) CONVEYANCE TO BROMLEY.—

12 (i) IN GENERAL.—Before soliciting of13 fers under subparagraph (B), the Secretary

14 shall offer to convey to Bromley the land de15 scribed in paragraph (2).

16 (ii) CONTRACT DEADLINE.—If Bromley

17 accepts the offer under clause (i), the Sec18 retary and Bromley shall have not more

19 than 180 days after the date on which any

20 environmental analyses with respect to the

21 land are completed to enter into a contract

22 for the sale or exchange of the land.

23 (B) PUBLIC OR PRIVATESALE.—If the Sec24 retary and Bromley do not enter into a contract

25 for the sale or exchange of the land by the date
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1 specified in subparagraph (A)(ii), the Secretary

2 may sell or exchange the land at public or pri3 vate sale (including auction), in accordance with

4 such terms, conditions, and procedures as the

5 Secretary determines to be in the public interest.

6 (C) REJECTION OF OFFERS.—The Secretary

7 may reject any offer received under this para8 graph if the Secretary determines that the offer

9 is not adequate or is not in the public interest.

10 (D) BROKERS.—In any sale or exchange of

11 land under this subsection, the Secretary may—

12 (i) use a real estate broker or other

13 third party; and

14 (ii) pay the real estate broker or third

15 party a commission in an amount com16 parable to the amounts of commission gen17 erally paid for real estate transactions in

18 the area.

19 (7) CASH EQUALIZATION.—Notwithstanding sec20 tion 206(b) of the Federal Land Policy and Manage21 ment Act of 1976 (43 U.S.C. 1716(b)), the Secretary

22 may accept a cash equalization payment in excess of

23 25 percent of the value of any Federal land exchanged

24 under this section.

25 (c) DISPOSITION OF PROCEEDS.—
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1 (1) IN GENERAL.—The Secretary shall deposit

2 the net proceeds from a sale or exchange under this

3 section in the fund established under Public Law 90–

4 171 (16 U.S.C. 484a) (commonly known as the ‘‘Sisk

5 Act’’).

6 (2) USE.—Amounts deposited under paragraph

7 (1) shall be available to the Secretary until expended,

8 without further appropriation, for—

9 (A) the location and relocation of the Appa10 lachian National Scenic Trail and the Long Na11 tional Recreation Trail in the State;

12 (B) the acquisition of land and interests in

13 land by the Secretary for National Forest Sys14 tem purposes within the boundary of the Green

15 Mountain National Forest, including land for

16 and adjacent to the Appalachian National Sce17 nic Trail and the Long National Recreation

18 Trail;

19 (C) the acquisition of wetland or an interest

20 in wetland within the boundary of the Green

21 Mountain National Forest to offset the loss of

22 wetland from the parcels sold or exchanged; and

23 (D) the payment of direct administrative

24 costs incurred in carrying out this section.
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1 (3) LIMITATION.—Amounts deposited under

2 paragraph (1) shall not—

3 (A) be paid or distributed to the State or

4 counties or towns in the State under any provi5 sion of law; or

6 (B) be considered to be money received from

7 units of the National Forest System for purposes

8 of—

9 (i) the Act of May 23, 1908 (16 U.S.C.

10 500); or

11 (ii) the Act of March 4, 1913 (16

12 U.S.C. 501).

13 (4) PROHIBITION OF TRANSFER OR REPROGRAM14 MING.—Amounts deposited under paragraph (1) shall

15 not be subject to transfer or reprogramming for wild16 fire management or any other emergency purposes.

17 (d) ACQUISITION OF LAND.—The Secretary may ac18 quire, using funds made available under subsection (c) or

19 otherwise made available for acquisition, land or an inter20 est in land for National Forest System purposes within the

21 boundary of the Green Mountain National Forest.

22 (e) EXEMPTION FROM CERTAIN LAWS.—Subtitle I of

23 title 40, United States Code, shall not apply to any sale

24 or exchange of National Forest System land under this sec25 tion.
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1 Subtitle D—Qualifying Timber

2 Contract Options

3 SEC. 8301. QUALIFYING TIMBER CONTRACT OPTIONS.

4 (a) DEFINITIONS.—

5 (1) AUTHORIZED PRODUCER PRICE INDEX.—The

6 term ‘‘authorized Producer Price Index’’ includes—

7 (A) the softwood commodity index (code

8 number 0811);

9 (B) the hardwood commodity index (code

10 number 0812);

11 (C) the wood chip index (code number PCU

12 3211332135); and

13 (D) any other subsequent comparable index,

14 as established by the Bureau of Labor Statistics

15 of the Department of Labor.

16 (2) QUALIFYING CONTRACT.—The term ‘‘quali17 fying contract’’ means a contract for the sale of tim18 ber on National Forest System land—

19 (A) that was awarded during the period be20 ginning on July 1, 2004, and ending on Decem21 ber 31, 2006;

22 (B) for which there is unharvested volume

23 remaining on the parcel of land that is the sub24 ject of the contract;
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1 (C) for which, not later than 90 days after

2 the date of enactment of this Act, the timber pur3 chaser makes a written request to the Secretary

4 for any option described in subsection (b);

5 (D) that is not a salvage sale; and

6 (E) that is not in breach or in default.

7 (3) SECRETARY.—The term ‘‘Secretary’’ means

8 the Secretary of Agriculture (acting through the Chief

9 of the Forest Service).

10 (b) OPTIONS FOR QUALIFYING CONTRACTS.—

11 (1) CANCELLATION; RATE REDETERMINATION.—

12 Notwithstanding any other provision of law, if the

13 rate at which a qualifying contract would be adver14 tised as of the date of enactment of this Act is at least

15 50 percent less than the sum of the original purchase

16 rates for all of the species of timber that are the sub17 ject of the qualifying contract, the Secretary may, at

18 the sole discretion of the Secretary—

19 (A) cancel the qualifying contract if the

20 timber purchaser—

21 (i) pays 30 percent of the total value

22 of the qualifying contract based on current

23 contract rates;

24 (ii) completes each contractual obliga25 tion of the timber purchaser with respect to
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1 each unit on which harvest has begun, (in2 cluding the removal of downed timber, the

3 completion of road work, and the comple4 tion of erosion control work) to a logical

5 stopping point, as determined by the Sec6 retary, in consultation with the timber pur7 chaser; and

8 (iii) terminates the rights of the timber

9 purchaser under the qualifying contract; or

10 (B) redetermine the rate of the qualifying

11 contract to equal the sum obtained by adding—

12 (i) 25 percent of the bid premium on

13 the qualifying contract; and

14 (ii) the rate at which the qualifying

15 contract would be advertised as of the date

16 of enactment of this Act.

17 (2) SUBSTITUTION OF INDEX.—

18 (A) IN GENERAL.—Notwithstanding any

19 other provision of law, the Secretary may, at the

20 sole discretion of the Secretary, substitute the

21 Producer Price Index in provision A20 of a

22 qualifying contract if the timber purchaser of the

23 qualifying contract identifies—

24 (i) each product that the timber pur25 chaser intends to produce from the timber
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1 harvested from each unit of land that is the

2 subject of the qualifying contract; and

3 (ii) a substitute index that contains

4 products similar to each product identified

5 in clause (i) from an authorized Producer

6 Price Index.

7 (B) AUTHORITY OF SECRETARY TO MODIFY

8 QUALIFYING CONTRACT.—If the Secretary sub9 stitutes the Producer Price Index of a qualifying

10 contract under subparagraph (A), the Secretary

11 may modify the qualifying contract as the Sec12 retary determines to be necessary to provide for

13 an emergency rate redetermination.

14 (c) EXTENSION OF QUALIFYING CONTRACTS.—With re15 spect to a qualifying contract for which the current contract

16 rate is redetermined by the Secretary under subsection

17 (b)(1)(B), or for which the Producer Price Index is sub18 stituted by the Secretary under subsection (b)(2), the Sec19 retary may—

20 (1) extend the contract term for a 1-year period

21 beginning on the contract termination date; and

22 (2) adjust the periodic payments required under

23 the contract in accordance with applicable law (in24 cluding regulations) and policies.

25 (d) EFFECT OF OPTIONS.—
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1 (1) IN GENERAL.—This section shall not have the

2 effect of surrendering any claim by the United States

3 against any timber purchaser that arose under a

4 qualifying contract before the date on which the Sec5 retary conducts a cancellation, rate redetermination,

6 or index substitution under subsection (b).

7 (2) RELEASE OF LIABILITY.—The United States

8 shall be released from all liability, including further

9 consideration or compensation, resulting from—

10 (A) a cancellation, rate redetermination, or

11 index substitution conducted by the Secretary

12 under subsection (b); or

13 (B) a determination made by the Secretary

14 not to cancel, redetermine any rate, or substitute

15 any index under subsection (b).

16 (3) LIMITATION.—A cancellation, rate redeter17 mination, or index substitution conducted by the Sec18 retary under subsection (b) shall release the timber

19 purchaser from liability for any damages resulting

20 from the cancellation, rate redetermination, or index

21 substitution.
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1 TITLE IX—ENERGY

2 SEC. 9001. ENERGY.

3 Title IX of the Farm Security and Rural Investment

4 Act of 2002 (7 U.S.C. 8101 et seq.) is amended to read as

5 follows:

6 ‘‘TITLE IX—ENERGY

7 ‘‘SEC. 9001. DEFINITIONS.

8 ‘‘Except as otherwise provided, in this title:

9 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis10 trator’ means the Administrator of the Environ11 mental Protection Agency.

12 ‘‘(2) ADVISORY COMMITTEE.—The term ‘Advi13 sory Committee’ means the Biomass Research and De14 velopment Technical Advisory Committee established

15 by section 9008(d)(1).

16 ‘‘(3) ADVANCED BIOFUEL.—

17 ‘‘(A) IN GENERAL.—The term ‘advanced

18 biofuel’ means fuel derived from renewable bio19 mass other than corn starch.

20 ‘‘(B) INCLUSIONS.—The term ‘advanced

21 biofuel’ includes—

22 ‘‘(i) biofuel derived from cellulose,

23 hemicellulose, or lignin;
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1 ‘‘(ii) biofuel derived from sugar and

2 starch (other than ethanol derived from corn

3 starch);

4 ‘‘(iii) biofuel derived from waste mate5 rial, including crop residue, other vegetative

6 waste material, animal waste and byprod7 ucts (including fats, oils, greases, and ma8 nure), food waste, and yard waste;

9 ‘‘(iv) diesel-equivalent fuel derived

10 from renewable biomass, including vegetable

11 oil and animal fat;

12 ‘‘(v) biogas (including landfill gas and

13 sewage waste treatment gas) produced

14 through the conversion of organic matter

15 from renewable biomass;

16 ‘‘(vi) butanol or other alcohols pro17 duced through the conversion of organic

18 matter from renewable biomass; and

19 ‘‘(vii) other fuel derived from cellulosic

20 biomass.

21 ‘‘(4) BIOBASED PRODUCT.—The term ‘biobased

22 product’ means a product determined by the Sec23 retary to be a commercial or industrial product (other

24 than food or feed) that is—
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1 ‘‘(A) composed, in whole or in significant

2 part, of biological products, including renewable

3 domestic agricultural materials and forestry ma4 terials; or

5 ‘‘(B) an intermediate ingredient or feed6 stock.

7 ‘‘(5) BIOFUEL.—The term ‘biofuel’ means a fuel

8 derived from renewable biomass.

9 ‘‘(6) BIOMASS CONVERSION FACILITY.—The term

10 ‘biomass conversion facility’ means a facility that

11 converts or proposes to convert renewable biomass

12 into—

13 ‘‘(A) heat;

14 ‘‘(B) power;

15 ‘‘(C) biobased products; or

16 ‘‘(D) advanced biofuels.

17 ‘‘(7) BIOREFINERY.—The term ‘biorefinery’

18 means equipment and processes that—

19 ‘‘(A) convert renewable biomass into biofuels

20 and biobased products; and

21 ‘‘(B) may produce electricity.

22 ‘‘(8) BOARD.—The term ‘Board’ means the Bio23 mass Research and Development Board established by

24 section 9008(c).
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1 ‘‘(9) INDIAN TRIBE.—The term ‘Indian tribe’ has

2 the meaning given the term in section 4 of the Indian

3 Self-Determination and Education Assistance Act (25

4 U.S.C. 450b).

5 ‘‘(10) INSTITUTION OF HIGHER EDUCATION.—

6 The term ‘institution of higher education’ has the

7 meaning given the term in section 102(a) of the High8 er Education Act of 1965 (20 U.S.C. 1002(a)).

9 ‘‘(11) INTERMEDIATE INGREDIENT OR FEED10 STOCK.—The term ‘intermediate ingredient or feed11 stock’ means a material or compound made in whole

12 or in significant part from biological products, in13 cluding renewable agricultural materials (including

14 plant, animal, and marine materials) or forestry ma15 terials, that are subsequently used to make a more

16 complex compound or product.

17 ‘‘(12) RENEWABLE BIOMASS.—The term ‘renew18 able biomass’ means—

19 ‘‘(A) materials, pre-commercial thinnings,

20 or removed exotic species that—

21 ‘‘(i) are byproducts of preventive treat22 ments (such as trees, wood, brush,

23 thinnings, chips, and slash), that are

24 removed—

25 ‘‘(I) to reduce hazardous fuels;
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1 ‘‘(II) to reduce or contain disease

2 or insect infestation; or

3 ‘‘(III) to restore ecosystem health;

4 ‘‘(ii) would not otherwise be used for

5 higher-value products; and

6 ‘‘(iii) are harvested from National For7 est System land or public lands (as defined

8 in section 103 of the Federal Land Policy

9 and Management Act of 1976 (43 U.S.C.

10 1702)), in accordance with—

11 ‘‘(I) Federal and State law;

12 ‘‘(II) applicable land management

13 plans; and

14 ‘‘(III) the requirements for old15 growth maintenance, restoration, and

16 management direction of paragraphs

17 (2), (3), and (4) of subsection (e) of

18 section 102 of the Healthy Forests Res19 toration Act of 2003 (16 U.S.C. 6512)

20 and the requirements for large-tree re21 tention of subsection (f) of that section;

22 or

23 ‘‘(B) any organic matter that is available

24 on a renewable or recurring basis from non-Fed25 eral land or land belonging to an Indian or In-
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1 dian tribe that is held in trust by the United

2 States or subject to a restriction against alien3 ation imposed by the United States, including—

4 ‘‘(i) renewable plant material,

5 including—

6 ‘‘(I) feed grains;

7 ‘‘(II) other agricultural commod8 ities;

9 ‘‘(III) other plants and trees; and

10 ‘‘(IV) algae; and

11 ‘‘(ii) waste material, including—

12 ‘‘(I) crop residue;

13 ‘‘(II) other vegetative waste mate14 rial (including wood waste and wood

15 residues);

16 ‘‘(III) animal waste and byprod17 ucts (including fats, oils, greases, and

18 manure);

19 ‘‘(IV) construction waste; and

20 ‘‘(V) food waste and yard waste.

21 ‘‘(13) RENEWABLE ENERGY.—The term ‘renew22 able energy’ means energy derived from—

23 ‘‘(A) a wind, solar, renewable biomass,

24 ocean (including tidal, wave, current, and ther25 mal), geothermal, or hydroelectric source; or
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1 ‘‘(B) hydrogen derived from renewable bio2 mass or water using an energy source described

3 in subparagraph (A).

4 ‘‘(14) RURAL AREA.—Except as otherwise pro5 vided in this title, the term ‘rural area’ has the mean6 ing given the term in section 343(a)(13)(A) of the

7 Consolidated Farm and Rural Development Act (7

8 U.S.C. 1991(a)(13)(A)).

9 ‘‘(15) SECRETARY.—The term ‘Secretary’ means

10 the Secretary of Agriculture.

11 ‘‘SEC. 9002. BIOBASED MARKETS PROGRAM.

12 ‘‘(a) FEDERAL PROCUREMENT OF BIOBASED PROD13 UCTS.—

14 ‘‘(1) DEFINITION OF PROCURING AGENCY.—In

15 this subsection, the term ‘procuring agency’ means—

16 ‘‘(A) any Federal agency that is using Fed17 eral funds for procurement; or

18 ‘‘(B) a person that is a party to a contract

19 with any Federal agency, with respect to work

20 performed under such a contract.

21 ‘‘(2) APPLICATION OF SECTION.—Except as pro22 vided in paragraph (3), each procuring agency shall

23 comply with this subsection (including any regula24 tions issued under this subsection), with respect to
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1 any purchase or acquisition of a procurement item

2 for which—

3 ‘‘(A) the purchase price of the item exceeds

4 $10,000; or

5 ‘‘(B) the quantity of the items or of func6 tionally-equivalent items purchased or acquired

7 during the preceding fiscal year was at least

8 $10,000.

9 ‘‘(3) PROCUREMENT PREFERENCE.—

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

11 subparagraph (B), after the date specified in ap12 plicable guidelines prepared pursuant to para13 graph (5), each procuring agency that procures

14 any items designated in the guidelines and items

15 containing designated biobased intermediate in16 gredients and feedstocks shall, in making pro17 curement decisions (consistent with maintaining

18 a satisfactory level of competition, considering

19 the guidelines), give preference to items that—

20 ‘‘(i) are composed of the highest per21 centage of biobased products practicable;

22 ‘‘(ii) are composed of at least 5 percent

23 of intermediate ingredients and feedstocks

24 (or a lesser percentage that the Secretary
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1 determines to be appropriate) as designated

2 by the Secretary; or

3 ‘‘(iii) comply with the regulations

4 issued under section 103 of Public Law

5 100–556 (42 U.S.C. 6914b–1).

6 ‘‘(B) FLEXIBILITY.—Notwithstanding sub7 paragraph (A), a procuring agency may decide

8 not to procure items described in that subpara9 graph if the procuring agency determines that

10 the items—

11 ‘‘(i) are not reasonably available with12 in a reasonable period of time;

13 ‘‘(ii) fail to meet—

14 ‘‘(I) the performance standards set

15 forth in the applicable specifications;

16 or

17 ‘‘(II) the reasonable performance

18 standards of the procuring agencies; or

19 ‘‘(iii) are available only at an unrea20 sonable price.

21 ‘‘(C) CERTIFICATION.—After the date speci22 fied in any applicable guidelines prepared pur23 suant to paragraph (5), contracting offices shall

24 require that, with respect to biobased products,

25 vendors certify that the biobased products to be
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1 used in the performance of the contract will com2 ply with the applicable specifications or other

3 contractual requirements.

4 ‘‘(4) SPECIFICATIONS.—Each Federal agency

5 that has the responsibility for drafting or reviewing

6 procurement specifications shall, not later than 1

7 year after the date of publication of applicable guide8 lines under paragraph (5), or as otherwise specified

9 in the guidelines, ensure that the specifications re10 quire the use of biobased products consistent with this

11 subsection.

12 ‘‘(5) GUIDELINES.—

13 ‘‘(A) IN GENERAL.—The Secretary, after

14 consultation with the Administrator, the Admin15 istrator of General Services, and the Secretary of

16 Commerce (acting through the Director of the

17 National Institute of Standards and Tech18 nology), shall prepare, and from time to time re19 vise, guidelines for the use of procuring agencies

20 in complying with the requirements of this sub21 section.

22 ‘‘(B) REQUIREMENTS.—The guidelines

23 under this paragraph shall—

24 ‘‘(i) designate those items that are or

25 can be produced with biobased products (in-
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1 cluding biobased products for which there is

2 only a single product or manufacturer in

3 the category) and the procurement of which

4 by procuring agencies will carry out the ob5 jectives of this subsection;

6 ‘‘(ii) designate those intermediate in7 gredients and feedstocks and finished prod8 ucts that contain significant portions of

9 biobased materials or components the pro10 curement of which by procuring agencies

11 will carry out the objectives of this sub12 section;

13 ‘‘(iii) set forth recommended practices

14 with respect to the procurement of biobased

15 products and items containing such mate16 rials and with respect to certification by

17 vendors of the percentage of biobased prod18 ucts used;

19 ‘‘(iv) provide information as to the

20 availability, relative price, performance,

21 and environmental and public health bene22 fits, of such materials and items; and

23 ‘‘(v) automatically designate those

24 items that are composed of materials and

25 items designated pursuant to paragraph
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1 (3), if the content of the final product ex2 ceeds 50 percent (unless the Secretary deter3 mines a different composition percentage).

4 ‘‘(C) INFORMATION PROVIDED.—Informa5 tion provided pursuant to subparagraph (B)(iv)

6 with respect to a material or item shall be con7 sidered to be provided for another item made

8 with the same material or item.

9 ‘‘(D) PROHIBITION.—Guidelines issued

10 under this paragraph may not require a manu11 facturer or vendor of biobased products, as a con12 dition of the purchase of biobased products from

13 the manufacturer or vendor, to provide to pro14 curing agencies more data than would be re15 quired to be provided by other manufacturers or

16 vendors offering products for sale to a procuring

17 agency, other than data confirming the biobased

18 content of a product.

19 ‘‘(E) STATE PROCUREMENT.—Not later

20 than 180 days after the date of enactment of this

21 section, the Secretary shall offer procurement

22 system models that States may use for the pro23 curement of biobased products by the States.

24 ‘‘(6) ADMINISTRATION.—
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1 ‘‘(A) OFFICE OF FEDERAL PROCUREMENT

2 POLICY.—The Office of Federal Procurement Pol3 icy, in cooperation with the Secretary, shall—

4 ‘‘(i) coordinate the implementation of

5 this subsection with other policies for Fed6 eral procurement;

7 ‘‘(ii) annually collect the information

8 required to be reported under subparagraph

9 (B) and make the information publicly

10 available;

11 ‘‘(iii) take a leading role in conducting

12 proactive research to inform and promote

13 the adoption of and compliance with pro14 curement requirements for biobased products

15 by Federal agencies; and

16 ‘‘(iv) not less than once every 2 years,

17 submit to Congress a report that—

18 ‘‘(I) describes the progress made

19 in carrying out this subsection, includ20 ing agency compliance with paragraph

21 (4); and

22 ‘‘(II) contains a summary of the

23 information reported pursuant to sub24 paragraph (B).
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1 ‘‘(B) OTHER AGENCIES.—To assist the Of2 fice of Federal Procurement Policy in carrying

3 out subparagraph (A)—

4 ‘‘(i) each procuring agency shall sub5 mit each year to the Office of Federal Pro6 curement Policy, to the maximum extent

7 practicable, information concerning—

8 ‘‘(I) actions taken to implement

9 paragraphs (3), (4), and (7);

10 ‘‘(II) the results of the annual re11 view and monitoring program estab12 lished under paragraph (7)(B)(iii);

13 ‘‘(III) the number and dollar

14 value of contracts entered into during

15 the year that include the direct pro16 curement of biobased products;

17 ‘‘(IV) the number of service and

18 construction (including renovations

19 and modernizations) contracts entered

20 into during the year that include lan21 guage on the use of biobased products;

22 and

23 ‘‘(V) the types and dollar value of

24 biobased products actually used by con25 tractors in carrying out service and
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1 construction (including renovations

2 and modernizations) contracts during

3 the previous year; and

4 ‘‘(ii) the General Services Administra5 tion and the Defense Logistics Agency shall

6 submit each year to the Office of Federal

7 Procurement Policy, to the maximum extent

8 practicable, information concerning the

9 types and dollar value of biobased products

10 purchased by procuring agencies through

11 GSA Advantage!, the Federal Supply

12 Schedule, and the Defense Logistic Agency

13 (including the DoD EMall).

14 ‘‘(7) PROCUREMENT PROGRAM.—

15 ‘‘(A) IN GENERAL.—Not later than 1 year

16 after the date of publication of applicable guide17 lines under paragraph (5), each Federal agency

18 shall develop a procurement program that—

19 ‘‘(i) will ensure that items composed of

20 biobased products will be purchased to the

21 maximum extent practicable; and

22 ‘‘(ii) is consistent with applicable pro23 visions of Federal procurement law.
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1 ‘‘(B) MINIMUM REQUIREMENTS.—Each pro2 curement program required under this para3 graph shall, at a minimum, contain—

4 ‘‘(i) a biobased products preference

5 program;

6 ‘‘(ii) an agency promotion program to

7 promote the preference program adopted

8 under clause (i); and

9 ‘‘(iii) annual review and monitoring of

10 the effectiveness of the procurement program

11 of the agency.

12 ‘‘(C) CONSIDERATION.—

13 ‘‘(i) IN GENERAL.—In developing a

14 preference program, an agency shall—

15 ‘‘(I) consider the options described

16 in clauses (ii) and (iii); and

17 ‘‘(II) adopt 1 of the options, or a

18 substantially equivalent alternative, for

19 inclusion in the procurement program.

20 ‘‘(ii) CASE-BY-CASE POLICY DEVELOP21 MENT.—

22 ‘‘(I) IN GENERAL.—Subject to

23 paragraph (3)(B), except as provided

24 in subclause (II), in developing a pref25 erence program, an agency shall con-
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1 sider a policy of awarding contracts to

2 the vendor offering an item composed

3 of the highest percentage of biobased

4 products practicable.

5 ‘‘(II) CERTAIN CONTRACTS AL6 LOWED.—Subject to paragraph (3)(B),

7 an agency may make an award to a

8 vendor offering items with less than the

9 maximum biobased products content.

10 ‘‘(iii) MINIMUM CONTENT STAND11 ARDS.—In developing a preference program,

12 an agency shall consider minimum biobased

13 products content specifications that are es14 tablished in a manner that ensures that the

15 biobased products content required is con16 sistent with this subsection, without vio17 lating paragraph (3)(B).

18 ‘‘(b) LABELING.—

19 ‘‘(1) IN GENERAL.—The Secretary, in consulta20 tion with the Administrator, shall establish a vol21 untary program under which the Secretary authorizes

22 producers of biobased products to use the label ‘USDA

23 Certified Biobased Product’.

24 ‘‘(2) ELIGIBILITY CRITERIA.—

25 ‘‘(A) CRITERIA.—
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1 ‘‘(i) IN GENERAL.—Not later than 90

2 days after the date of the enactment of this

3 section, except as provided in clause (ii), the

4 Secretary, in consultation with the Admin5 istrator and representatives from small and

6 large businesses, academia, other Federal

7 agencies, and such other persons as the Sec8 retary considers appropriate, shall issue cri9 teria (as of the date of enactment of this sec10 tion) for determining which products may

11 qualify to receive the label under paragraph

12 (1).

13 ‘‘(ii) EXCEPTION.—Clause (i) shall not

14 apply to final criteria that have been issued

15 (as of the date of enactment of this section)

16 by the Secretary.

17 ‘‘(B) REQUIREMENTS.—Criteria issued

18 under subparagraph (A)—

19 ‘‘(i) shall encourage the purchase of

20 products with the maximum biobased con21 tent;

22 ‘‘(ii) shall provide that the Secretary

23 may designate as biobased for the purposes

24 of the voluntary program established under

25 this subsection finished products that con-
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1 tain significant portions of biobased mate2 rials or components; and

3 ‘‘(iii) to the maximum extent prac4 ticable, should be consistent with the guide5 lines issued under subsection (a)(5).

6 ‘‘(3) USEOF LABEL.—The Secretary shall ensure

7 that the label referred to in paragraph (1) is used

8 only on products that meet the criteria issued pursu9 ant to paragraph (2).

10 ‘‘(4) RECOGNITION.—The Secretary shall—

11 ‘‘(A) establish a voluntary program to rec12 ognize Federal agencies and private entities that

13 use a substantial amount of biobased products;

14 and

15 ‘‘(B) encourage Federal agencies to establish

16 incentives programs to recognize Federal employ17 ees or contractors that make exceptional con18 tributions to the expanded use of biobased prod19 ucts.

20 ‘‘(c) LIMITATION.—Nothing in this section (other than

21 subsections (f), (g), and (h)) shall apply to the procurement

22 of motor vehicle fuels, heating oil, or electricity.

23 ‘‘(d) INCLUSION.—

24 ‘‘(1) IN GENERAL.—Not later than 90 days after

25 the date of enactment of the Food and Energy Secu-
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1 rity Act of 2007, the Architect of the Capitol, the Ser2 geant at Arms of the Senate, and the Chief Adminis3 trative Officer of the House of Representatives shall

4 establish procedures that apply the requirements of

5 this section to procurement for the Capitol Complex.

6 ‘‘(2) ANNUAL SHOWCASE.—Beginning in cal7 endar year 2008, the Secretary shall sponsor or other8 wise support, consistent with applicable Federal laws

9 (including regulations), an annual exposition at

10 which entities may display and demonstrate biobased

11 products.

12 ‘‘(e) TESTING OF BIOBASED PRODUCTS.—

13 ‘‘(1) IN GENERAL.—The Secretary may establish

14 1 or more national testing centers for biobased prod15 ucts to verify performance standards, biobased con16 tents, and other product characteristics.

17 ‘‘(2) REQUIREMENT.—In establishing 1 or more

18 national testing centers under paragraph (1), the Sec19 retary shall give preference to entities that have estab20 lished capabilities and experience in the testing of

21 biobased materials and products.

22 ‘‘(f) BIOENERGY AND OTHER BIOBASED PRODUCTS

23 EDUCATION AND AWARENESS CAMPAIGN.—

24 ‘‘(1) IN GENERAL.—The Secretary in consulta25 tion with the Secretary of Energy, shall establish a
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1 program to make competitive grants to eligible enti2 ties to carry out broad-based education and public

3 awareness campaigns relating to bioenergy (including

4 biofuels but excluding biodiesel) and other biobased

5 products.

6 ‘‘(2) ELIGIBLE ENTITIES.—An entity eligible to

7 receive a grant described in paragraph (1) is an enti8 ty that has demonstrated a knowledge of bioenergy

9 (including biofuels but excluding biodiesel) and other

10 biobased products and is—

11 ‘‘(A) a State energy or agricultural office;

12 ‘‘(B) a regional, State-based, or tribal en13 ergy organization;

14 ‘‘(C) a land-grant college or university (as

15 defined in section 1404 of the National Agricul16 tural Research, Extension, and Teaching Policy

17 Act of 1977 (7 U.S.C. 3103)) or other institution

18 of higher education;

19 ‘‘(D) a rural electric cooperative or utility;

20 ‘‘(E) a nonprofit organization, including an

21 agricultural trade association, resource conserva22 tion and development district, and energy service

23 provider;

24 ‘‘(F) a State environmental quality office;

25 or
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1 ‘‘(G) any other similar entity, other than a

2 Federal agency or for-profit entity, as deter3 mined by the Secretary.

4 ‘‘(g) REPORTS.—

5 ‘‘(1) IN GENERAL.—Not later than 180 days

6 after the date of enactment of this section and each

7 year thereafter, the Secretary shall submit to Congress

8 a report on the implementation of this section.

9 ‘‘(2) CONTENTS.—The report shall include—

10 ‘‘(A) a comprehensive management plan

11 that establishes tasks, milestones, and timelines,

12 organizational roles and responsibilities, and

13 funding allocations for fully implementing this

14 section; and

15 ‘‘(B) information on the status of imple16 mentation of—

17 ‘‘(i) item designations (including des18 ignation of intermediate ingredients and

19 feedstocks); and

20 ‘‘(ii) the voluntary labeling program

21 established under subsection (b).

22 ‘‘(h) FUNDING.—

23 ‘‘(1) IN GENERAL.—Of the funds of the Com24 modity Credit Corporation, the Secretary shall use, to
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1 the maximum extent practicable, $3,000,000 for each

2 of fiscal years 2008 through 2012—

3 ‘‘(A) to continue mandatory funding for

4 biobased products testing as required to carry

5 out this section; and

6 ‘‘(B) to carry out the bioenergy education

7 and awareness campaign under subsection (f).

8 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In

9 addition to any other funds made available to carry

10 out this section, there are authorized to be appro11 priated to carry out this section such sums as are

12 necessary for each of fiscal years 2008 through 2012.

13 ‘‘(3) PRIORITY.—At the discretion of the Sec14 retary, the Secretary may give priority to the testing

15 of products for which private sector firms provide cost

16 sharing for the testing.

17 ‘‘SEC. 9003. BIODIESEL FUEL EDUCATION.

18 ‘‘(a) PURPOSE.—The purpose of this section is to edu19 cate potential users about the proper use and benefits of

20 biodiesel.

21 ‘‘(b) ESTABLISHMENT.—The Secretary shall, under

22 such terms and conditions as are appropriate, make grants

23 to eligible entities to educate governmental and private enti24 ties that operate vehicle fleets, oil refiners, automotive com25 panies, owners and operators of watercraft fleets, other in-
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1 terested entities (as determined by the Secretary), and the

2 public about the benefits of biodiesel fuel use.

3 ‘‘(c) ELIGIBLE ENTITIES.—To receive a grant under

4 subsection (b), an entity shall—

5 ‘‘(1) be a nonprofit organization or institution of

6 higher education (as defined in section 101 of the

7 Higher Education Act of 1965 (20 U.S.C. 1001));

8 ‘‘(2) have demonstrated knowledge of biodiesel

9 fuel production, use, or distribution; and

10 ‘‘(3) have demonstrated the ability to conduct

11 educational and technical support programs.

12 ‘‘(d) CONSULTATION.—In carrying out this section, the

13 Secretary shall consult with the Secretary of Energy.

14 ‘‘(e) FUNDING.—Of the funds of the Commodity Credit

15 Corporation, the Secretary shall use to carry out this sec16 tion, to the maximum extent practicable, $2,000,000 for

17 each of fiscal years 2008 through 2012.

18 ‘‘SEC. 9004. BIOMASS CROP TRANSITION.

19 ‘‘(a) DEFINITIONS.—In this section:

20 ‘‘(1) ELIGIBLECROP.—

21 ‘‘(A) IN GENERAL.—The term ‘eligible crop’

22 means a crop of renewable biomass.

23 ‘‘(B) EXCLUSIONS.—The term ‘eligible crop’

24 does not include any plant that—
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1 ‘‘(i) the Secretary determines to be

2 invasive or noxious on a regional basis

3 under the Plant Protection Act (7 U.S.C.

4 7701 et seq.); or

5 ‘‘(ii) has the potential to become

6 invasive or noxious on a regional basis, as

7 determined by the Secretary, in consulta8 tion with other appropriate Federal or

9 State departments and agencies.

10 ‘‘(2) ELIGIBLELAND.—The term ‘eligible land’

11 means private agricultural or forest land that the

12 Secretary determines was planted or considered to be

13 planted for at least 4 of the 6 years preceding the date

14 of enactment of the Food and Energy Security Act of

15 2007.

16 ‘‘(3) ELIGIBLEPARTICIPANT.—The term ‘eligible

17 participant’ means an agricultural producer, forest

18 land owner, or other individual holding the right to

19 collect or harvest renewable biomass—

20 ‘‘(A) that is establishing 1 or more eligible

21 crops on eligible land to be used in the produc22 tion of advanced biofuels, other biobased prod23 ucts, heat, or power from a biomass conversion

24 facility;
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1 ‘‘(B) that is collecting or harvesting renew2 able biomass to be used in the production of ad3 vanced biofuels, other biobased products, heat, or

4 power from a biomass conversion facility;

5 ‘‘(C) that has a letter of intent or proof of

6 financial commitment from a biomass conversion

7 facility, including a proposed biomass conversion

8 facility that is economically viable, as deter9 mined by the Secretary, to purchase the eligible

10 crops; and

11 ‘‘(D) the production operation of which is

12 in such proximity to the biomass conversion fa13 cility described in subparagraph (C) as to make

14 delivery of the eligible crops to that location eco15 nomically practicable.

16 ‘‘(b) BIOMASS CROP TRANSITION ASSISTANCE.—

17 ‘‘(1) ESTABLISHMENT OF PROGRAM.—The Sec18 retary shall establish a program to provide transi19 tional assistance, including planning grants, for the

20 establishment and production of eligible crops to be

21 used in the production of advanced biofuels, other

22 biobased products, heat, or power from a biomass con23 version facility.
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1 ‘‘(2) EXCLUSION.—An agricultural producer

2 shall not be eligible for assistance under paragraph

3 (1) for the establishment and production of—

4 ‘‘(A) any crop that is eligible for benefits

5 under title I of the Food and Energy Security

6 Act of 2007; or

7 ‘‘(B) an annual crop.

8 ‘‘(3) CONTRACTS.—

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

10 enter into contracts with eligible participants

11 and entities described in subparagraph (B) to

12 provide transitional assistance payments to eli13 gible participants.

14 ‘‘(B) CONTRACTS WITH MEMBER ENTI15 TIES.—The Secretary may enter into 1 or more

16 contracts with farmer-owned cooperatives, agri17 cultural trade associations, or other similar enti18 ties on behalf of producer members that meet the

19 requirements of, and elect to be treated as, eligi20 ble participants if the contract would offer great21 er efficiency in administration of the program.

22 ‘‘(C) REQUIREMENTS.—Under a contract

23 described in subparagraph (A), an eligible par24 ticipant shall be required, as determined by the

25 Secretary—
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1 ‘‘(i) to produce 1 or more eligible

2 crops;

3 ‘‘(ii) to develop and actively apply a

4 conservation plan that meets the require5 ments for highly erodible land conservation

6 and wetlands conservation as established

7 under subtitles B and C of title XII of the

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

9 et seq.); and

10 ‘‘(iii) to agree to implement a con11 servation plan approved by the local soil

12 conservation district, in consultation with

13 the local committees established under sec14 tion 8(b)(5) of the Soil Conservation and

15 Domestic Allotment Act (16 U.S.C.

16 590h(B)(5)) and the Secretary, or by the

17 Secretary to use such conservation practices

18 as are necessary, where appropriate—

19 ‘‘(I) to advance the goals and ob20 jectives of State, regional, and national

21 fish and wildlife conservation plans

22 and initiatives; and

23 ‘‘(II) to comply with mandatory

24 environmental requirements for a pro-
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1 ducer under Federal, State, and local

2 law.

3 ‘‘(4) PAYMENTS.—

4 ‘‘(A) FIRST YEAR.—During the first year of

5 the contract, the Secretary shall make a payment

6 to an eligible participant in an amount that cov7 ers the cost of establishing 1 or more eligible

8 crops.

9 ‘‘(B) SUBSEQUENT YEARS.—During any

10 subsequent year of the contract, the Secretary

11 shall make incentive payments to an eligible

12 participant in an amount determined by the

13 Secretary to encourage the eligible participant to

14 produce renewable biomass.

15 ‘‘(5) APPLICATIONS.—An application to the Sec16 retary for assistance shall include—

17 ‘‘(A) identification of the proposed biomass

18 conversion facility for which the crop is in19 tended;

20 ‘‘(B) letters of intent or proof of financial

21 commitment from the biomass conversion facility

22 to purchase the crop; and

23 ‘‘(C) documentation from each eligible par24 ticipant that describes—
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1 ‘‘(i) the variety and acreage of the eli2 gible crop the eligible participants have

3 committed to producing; and

4 ‘‘(ii) the variety and acreage of crops

5 that the eligible participants would have

6 grown if the eligible participants had not

7 committed to producing the eligible crop.

8 ‘‘(6) SELECTION CRITERIA.—In selecting from

9 applications submitted under this subsection, the Sec10 retary shall consider—

11 ‘‘(A) the likelihood that the proposed estab12 lishment of the eligible crop will be viable within

13 the proposed locale;

14 ‘‘(B) the impact of the proposed eligible

15 crop and conversion system on wildlife, air, soil,

16 and water quality and availability; and

17 ‘‘(C) local and regional economic impacts

18 and benefits, including participation of begin19 ning farmers or ranchers and socially disadvan20 taged farmers or ranchers.

21 ‘‘(7) ELIGIBLECROP TRANSITION PLANNING

22 GRANTS.—

23 ‘‘(A) IN GENERAL.—An eligible participant

24 or member entity (as described in paragraph

25 (3)(B)) may apply for a project planning grant
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1 in an amount of not more than $50,000 to assist

2 in assessing the viability for, or assembling of, a

3 regional supply of 1 or more eligible crops for

4 use by a bioenergy conversion facility.

5 ‘‘(B) MATCHING REQUIREMENT.—To receive

6 a planning grant under subparagraph (A), an

7 eligible participant or member entity shall pro8 vide matching funding in an amount equal to

9 100 percent of the amount of the grant.

10 ‘‘(c) ASSISTANCEFOR PRODUCTION OF ANNUAL CROP

11 OF RENEWABLE BIOMASS.—

12 ‘‘(1) IN GENERAL.—The Secretary may provide

13 assistance to eligible participants to plant an annual

14 crop of renewable biomass for use in a biomass con15 version facility in the form of—

16 ‘‘(A) technical assistance; and

17 ‘‘(B) cost-share assistance for the cost of es18 tablishing an annual crop of renewable biomass.

19 ‘‘(2) EXCLUSION.—An agricultural producer

20 shall not be eligible for assistance under paragraph

21 (1) for the establishment of any crop that is eligible

22 for benefits under title I of the Food and Energy Se23 curity Act of 2007.

24 ‘‘(3) COMPLIANCE.—Eligible participants receiv25 ing assistance under paragraph (1)(B) shall develop
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1 and actively apply a conservation plan that meets the

2 requirements for highly erodible land conservation

3 and wetlands conservation as established under sub4 titles B and C of title XII of the Food Security Act

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

6 ‘‘(d) ASSISTANCEFOR COLLECTION, HARVEST, STOR7 AGE, AND TRANSPORT OF RENEWABLE BIOMASS.—

8 ‘‘(1) ESTABLISHMENT OF PROGRAM.—The Sec9 retary shall establish a program to provide assistance

10 to eligible participants for collecting, harvesting, stor11 ing, and transporting renewable biomass to be used in

12 the production of advanced biofuels, biobased prod13 ucts, heat, or power from a biomass conversion facil14 ity.

15 ‘‘(2) PAYMENTS.—

16 ‘‘(A) IN GENERAL.—An eligible participant

17 shall receive payments under this subsection for

18 each ton of renewable biomass delivered to a bio19 mass conversion facility, based on a fixed rate to

20 be established by the Secretary in accordance

21 with subparagraph (B).

22 ‘‘(B) FIXED RATE.—The Secretary shall es23 tablish a fixed payment rate for purposes of sub24 paragraph (A) to reflect—
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1 ‘‘(i) the estimated cost of collecting,

2 harvesting, storing, and transporting the re3 newable biomass; and

4 ‘‘(ii) such other factors as the Secretary

5 determines to be appropriate.

6 ‘‘(e) ASSISTANCEFOR FOREST BIOMASS PLANNING.—

7 ‘‘(1) IN GENERAL.—The Secretary shall provide

8 assistance to eligible participants to develop forest

9 stewardship plans that involve management of forest

10 biomass for delivery to a biomass conversion facility

11 through—

12 ‘‘(A) a State forestry agency; or

13 ‘‘(B) a contract or agreement with a third14 party provider in accordance with section 1242

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

16 3842).

17 ‘‘(2) MANAGEMENT PRACTICES.—The Secretary

18 shall ensure that any plan developed using assistance

19 provided under paragraph (1) includes management

20 practices that will protect soil, water, and wildlife

21 habitat resources on the land covered by the plan.

22 ‘‘(f) BEST PRACTICES.—

23 ‘‘(1) RECORDKEEPING.—Each eligible partici24 pant, and each biomass conversion facility con25 tracting with the eligible participant, shall maintain
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1 and make available to the Secretary, at such times as

2 the Secretary may request, appropriate records of

3 methods used for activities for which payment is re4 ceived under this section.

5 ‘‘(2) INFORMATION SHARING.—From the records

6 maintained under subparagraph (A), the Secretary

7 shall maintain, and make available to the public, in8 formation regarding—

9 ‘‘(A) the production potential (including

10 evaluation of the environmental benefits) of a va11 riety of eligible crops; and

12 ‘‘(B) best practices for producing, collecting,

13 harvesting, storing, and transporting eligible

14 crops to be used in the production of advanced

15 biofuels.

16 ‘‘(g) FUNDING.—

17 ‘‘(1) BIOMASS CROP TRANSITION ASSISTANCE.—

18 Of the funds of the Commodity Credit Corporation,

19 the Secretary shall use to carry out subsections (b)

20 and (c) $130,000,000 for fiscal year 2008, to remain

21 available until expended, of which not more than

22 $5,000,000 may be used to carry out subsection

23 (b)(7).

24 ‘‘(2) ASSISTANCEFOR COLLECTION, HARVEST,

25 STORAGE, AND TRANSPORT OF RENEWABLE BIO-
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1 MASS.—Of the funds of the Commodity Credit Cor2 poration, the Secretary shall make available to carry

3 out subsection (d) $10,000,000 for each of fiscal years

4 2009 through 2011, to remain available until ex5 pended.

6 ‘‘(3) ASSISTANCEFOR FOREST BIOMASS PLAN7 NING.—Of the funds made available under paragraph

8 (1), the Secretary shall use not more than 5 percent

9 to carry out subsection (e).

10 ‘‘SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.

11 ‘‘(a) PURPOSE.—The purpose of this section is to assist

12 in the development of new or emerging technologies for the

13 use of renewable biomass or other sources of renewable

14 energy—

15 ‘‘(1) to develop advanced biofuels;

16 ‘‘(2) to increase the energy independence of the

17 United States by promoting the replacement of energy

18 generated from fossil fuels with energy generated from

19 a renewable energy source;

20 ‘‘(3) to promote resource conservation, public

21 health, and the environment;

22 ‘‘(4) to diversify markets for raw agricultural

23 and forestry products, and agriculture waste mate24 rial; and
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1 ‘‘(5) to create jobs and enhance the economic de2 velopment of the rural economy.

3 ‘‘(b) DEFINITION OF REPOWER.—In this section, the

4 term ‘repower’ means to substitute the production of heat

5 or power from a fossil fuel source with heat or power from

6 sources of renewable energy.

7 ‘‘(c) ASSISTANCE.—

8 ‘‘(1) IN GENERAL.—The Secretary shall make

9 available to eligible entities described in subsection

10 (d)—

11 ‘‘(A) grants to assist in paying the costs

12 of—

13 ‘‘(i) development and construction of

14 pilot- and demonstration-scale biorefineries

15 intended to demonstrate the commercial via16 bility of 1 or more processes for converting

17 renewable biomass to advanced biofuels;

18 ‘‘(ii) repowering a biomass conversion

19 facility, power plant, or manufacturing fa20 cility, in whole or in part; or

21 ‘‘(iii) conducting a study to determine

22 the feasibility of repowering a biomass con23 version facility, power plant, or manufac24 turing facility, in whole or in part; and

25 ‘‘(B) guarantees for loans made to fund—
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1 ‘‘(i) the development and construction

2 of commercial-scale biorefineries; or

3 ‘‘(ii) the repowering of a biomass con4 version facility, power plant, or manufac5 turing facility, in whole or in part.

6 ‘‘(2) PREFERENCE.—In selecting projects to re7 ceive grants and loan guarantees under this section,

8 the Secretary shall give preference to projects that re9 ceive or will receive financial support from the State

10 in which the project is carried out.

11 ‘‘(d) ELIGIBLE ENTITIES.—An eligible entity under

12 this section is—

13 ‘‘(1) an individual;

14 ‘‘(2) a corporation;

15 ‘‘(3) a farm cooperative;

16 ‘‘(4) a rural electric cooperative or public power

17 entity;

18 ‘‘(5) an association of agricultural producers;

19 ‘‘(6) a State or local energy agency or office;

20 ‘‘(7) an Indian tribe;

21 ‘‘(8) a consortium comprised of any individuals

22 or entities described in any of paragraphs (1) through

23 (7); or

24 ‘‘(9) any other similar entity, as determined by

25 the Secretary.
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1 ‘‘(e) GRANTS.—

2 ‘‘(1) IN GENERAL.—The Secretary shall award

3 grants under subsection (c)(1)(A) on a competitive

4 basis.

5 ‘‘(2) SELECTION CRITERIA.—

6 ‘‘(A) GRANTS FOR DEVELOPMENT AND CON7 STRUCTION OF PILOT AND DEMONSTRATION

8 SCALE BIOREFINERIES.—

9 ‘‘(i) IN GENERAL.—In awarding

10 grants for development and construction of

11 pilot and demonstration scale biorefineries

12 under subsection (c)(1)(A)(i), the Secretary

13 shall select projects based on the likelihood

14 that the projects will demonstrate the com15 mercial viability of a new or emerging

16 process for converting renewable biomass

17 into advanced biofuels.

18 ‘‘(ii) FACTORS.—The factors to be con19 sidered under clause (i) may include—

20 ‘‘(I) the potential market for 1 or

21 more products;

22 ‘‘(II) the level of financial partici23 pation by the applicants;

24 ‘‘(III) the availability of adequate

25 funding from other sources;
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1 ‘‘(IV) the participation of pro2 ducer associations and cooperatives;

3 ‘‘(V) the beneficial impact on re4 source conservation, public health, and

5 the environment;

6 ‘‘(VI) the timeframe in which the

7 project will be operational;

8 ‘‘(VII) the potential for rural eco9 nomic development;

10 ‘‘(VIII) the participation of mul11 tiple eligible entities;

12 ‘‘(IX) the potential for developing

13 advance industrial biotechnology ap14 proaches; and

15 ‘‘(X) whether the distribution of

16 funds would have minimal impact on

17 existing manufacturing and other fa18 cilities that use similar feedstocks.

19 ‘‘(B) GRANTS FOR REPOWERING.—In select20 ing projects to receive grants for repowering

21 under clauses (ii) and (iii) of subsection

22 (c)(1)(A), the Secretary shall consider—

23 ‘‘(i) the change in energy efficiency

24 that would result from the proposed

25 repowering of the eligible entity;
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1 ‘‘(ii) the reduction in fossil fuel use

2 that would result from the proposed

3 repowering; and

4 ‘‘(iii) the volume of renewable biomass

5 located in such proximity to the eligible en6 tity as to make local sourcing of feedstock

7 economically practicable.

8 ‘‘(3) COST SHARING.—

9 ‘‘(A) LIMITS.—

10 ‘‘(i) DEVELOPMENT AND CONSTRUC11 TION OF PILOT AND DEMONSTRATION SCALE

12 BIOREFINERIES.—The amount of a grant

13 awarded for development and construction

14 of a biorefinery under subsection

15 (c)(1)(A)(i) shall not exceed 50 percent of

16 the cost of the project.

17 ‘‘(ii) REPOWERING.—The amount of a

18 grant awarded for repowering under sub19 section (c)(1)(A)(ii) shall not exceed 20 per20 cent of the cost of the project.

21 ‘‘(iii) FEASIBILITY STUDY FOR

22 REPOWERING.—The amount of a grant

23 awarded for a feasibility study for

24 repowering under subsection (c)(1)(A)(iii)
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1 shall not exceed an amount equal to the less2 er of—

3 ‘‘(I) an amount equal to 50 per4 cent of the total cost of conducting the

5 feasibility study; and

6 ‘‘(II) $150,000.

7 ‘‘(B) FORM OF GRANTEE SHARE.—

8 ‘‘(i) IN GENERAL.—The grantee share

9 of the cost of a project may be made in the

10 form of cash or the provision of services,

11 material, or other in-kind contributions.

12 ‘‘(ii) LIMITATION.—The amount of the

13 grantee share of the cost of a project that is

14 made in the form of the provision of serv15 ices, material, or other in-kind contribu16 tions shall not exceed 15 percent of the

17 amount of the grantee share determined

18 under subparagraph (A).

19 ‘‘(f) LOAN GUARANTEES.—

20 ‘‘(1) CONDITIONS.—As a condition of making a

21 loan guarantee under subsection (c)(1)(B), the Sec22 retary shall require—

23 ‘‘(A) demonstration of binding commit24 ments to cover, from sources other than Federal
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1 funds, at least 20 percent of the total cost of the

2 project described in the application;

3 ‘‘(B) in the case of a new or emerging tech4 nology, demonstration that the project design has

5 been validated through a technical review and

6 subsequent operation of a pilot or demonstration

7 scale facility that can be scaled up to commercial

8 size; and

9 ‘‘(C) demonstration that the applicant pro10 vided opportunities to local investors (as deter11 mined by the Secretary) to participate in the fi12 nancing or ownership of the biorefinery.

13 ‘‘(2) LOCAL OWNERSHIP.—The Secretary shall

14 give preference under subsection (c)(1)(B) to applica15 tions for projects with significant local ownership.

16 ‘‘(3) APPROVAL.—Not later than 90 days after

17 the Secretary receives an application for a loan guar18 antee under subsection (c)(1)(B), the Secretary shall

19 approve or disapprove the application.

20 ‘‘(4) LIMITATIONS.—

21 ‘‘(A) MAXIMUM AMOUNT OF LOAN GUARAN22 TEED.—

23 ‘‘(i) COMMERCIAL-SCALEBIOREFIN24 ERIES.—Subject to clause (iii), the prin25 cipal amount of a loan guaranteed under
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1 subsection (c)(1)(B)(i) may not exceed

2 $250,000,000.

3 ‘‘(ii) REPOWERING.—Subject to clause

4 (iii), the principal amount of a loan guar5 anteed under subsection (c)(1)(B)(ii) may

6 not exceed $70,000,000.

7 ‘‘(iii) RELATIONSHIP TO OTHER FED8 ERAL FUNDING.—The amount of a loan

9 guaranteed under subsection (c)(1)(B) shall

10 be reduced by the amount of other Federal

11 funding that the entity receives for the same

12 project.

13 ‘‘(B) MAXIMUM PERCENTAGE OF LOAN

14 GUARANTEED.—A loan guaranteed under sub15 section (c)(1)(B) shall be in an amount not to

16 exceed 80 percent of the project costs, as deter17 mined by the Secretary.

18 ‘‘(C) AUTHORITY TO GUARANTEE ENTIRE

19 AMOUNT OF THELOAN.—The Secretary may

20 guarantee up to 100 percent of the principal and

21 interest due on a loan guaranteed under sub22 section (c)(1)(B).

23 ‘‘(g) CONSULTATION.—In carrying out this section, the

24 Secretary shall consult with the Secretary of Energy.
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1 ‘‘(h) FUNDING.—Of the funds of the Commodity Credit

2 Corporation, the Secretary shall use for the cost of grants

3 and loan guarantees to carry out this section $300,000,000

4 for fiscal year 2008, to remain available until expended.

5 ‘‘SEC. 9006. BIOENERGY PROGRAM FOR ADVANCED

6 BIOFUELS.

7 ‘‘(a) DEFINITION OF ELIGIBLE PRODUCER.—In this

8 section, the term ‘eligible producer’ means a producer of ad9 vanced biofuels.

10 ‘‘(b) PAYMENTS.—The Secretary shall make payments

11 to eligible producers to encourage increased purchases of re12 newable biomass for the purpose of expanding production

13 of, and supporting new production capacity for, advanced

14 biofuels.

15 ‘‘(c) CONTRACTS.—To receive a payment, an eligible

16 producer shall—

17 ‘‘(1) enter into a contract with the Secretary to

18 increase production of advanced biofuels for 1 or more

19 fiscal years; and

20 ‘‘(2) submit to the Secretary such records as the

21 Secretary may require as evidence of increased pur22 chase and use of renewable biomass for the production

23 of advanced biofuels.
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1 ‘‘(d) BASIS FOR PAYMENTS.—The Secretary shall

2 make payments under this section to eligible producers

3 based on—

4 ‘‘(1) the level of production by the eligible pro5 ducer of an advanced biofuel;

6 ‘‘(2) the price of each renewable biomass feed7 stock used for production of the advanced biofuel;

8 ‘‘(3) the net nonrenewable energy content of the

9 advanced biofuel, if sufficient data is available, as de10 termined by the Secretary; and

11 ‘‘(4) other appropriate factors, as determined by

12 the Secretary.

13 ‘‘(e) OVERPAYMENTS.—If the total amount of pay14 ments that an eligible producer receives for a fiscal year

15 under this section exceeds the amount that the eligible pro16 ducer should have received, the eligible producer shall repay

17 the amount of the overpayment to the Secretary, with inter18 est (as determined by the Secretary).

19 ‘‘(f) LIMITATIONS.—

20 ‘‘(1) EQUITABLEDISTRIBUTION.—The Secretary

21 may limit the amount of payments that may be re22 ceived by a single eligible producer under this section

23 in order to distribute the total amount of funding

24 available in an equitable manner.
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1 ‘‘(2) INELIGIBILITY.—An eligible producer that

2 claims a credit allowed under section 40(a)(3),

3 40(a)(4), or 40A(a)(3) of the Internal Revenue Code

4 of 1986 shall not be eligible to receive payments under

5 subsection (d).

6 ‘‘(3) REFINING CAPACITY.—An eligible producer

7 may not use any funds received under this section for

8 an advanced biofuel production facility or other fuel

9 refinery the total refining capacity of which is more

10 than 150,000,000 gallons per year.

11 ‘‘(g) OTHER REQUIREMENTS.—To receive a payment

12 under this section, an eligible producer shall meet any other

13 requirements of Federal and State law (including regula14 tions) applicable to the production of advanced biofuels.

15 ‘‘(h) FUNDING.—Of the funds of the Commodity Credit

16 Corporation, the Secretary shall use to carry out this sec17 tion $245,000,000 for the period of fiscal years 2008

18 through 2012, to remain available until expended.

19 ‘‘SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

20 ‘‘(a) ESTABLISHMENT.—The Secretary, in consulta21 tion with the Secretary of Energy, shall establish a Rural

22 Energy for America Program to promote energy efficiency

23 and renewable energy development for agricultural pro24 ducers, cooperatives, rural small businesses, and other simi25 lar entities through—
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1 ‘‘(1) grants for energy audits and renewable en2 ergy development assistance;

3 ‘‘(2) financial assistance for energy efficiency

4 improvements and renewable energy systems; and

5 ‘‘(3) financial assistance for facilities to convert

6 animal manure to energy.

7 ‘‘(b) ENERGY AUDITS AND RENEWABLE ENERGY DE8 VELOPMENT ASSISTANCE.—

9 ‘‘(1) IN GENERAL.—The Secretary shall make

10 competitive grants to eligible entities to provide as11 sistance to agricultural producers and rural small

12 businesses—

13 ‘‘(A) to become more energy efficient; and

14 ‘‘(B) to use renewable energy technology and

15 resources.

16 ‘‘(2) ELIGIBLE ENTITIES.—An eligible entity

17 under this subsection is—

18 ‘‘(A) a State agency;

19 ‘‘(B) a regional, State-based, or tribal en20 ergy organization;

21 ‘‘(C) a land-grant college or university or

22 other institution of higher education;

23 ‘‘(D) a rural electric cooperative or public

24 power entity;

25 ‘‘(E) a nonprofit organization; and
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1 ‘‘(F) any other similar entity, as deter2 mined by the Secretary.

3 ‘‘(3) MERIT REVIEW.—

4 ‘‘(A) MERIT REVIEW PROCESS.—The Sec5 retary shall establish a merit review process to

6 review applications for grants under paragraph

7 (1) that uses the expertise of other Federal agen8 cies, industry, and nongovernmental organiza9 tions.

10 ‘‘(B) SELECTION CRITERIA.—In reviewing

11 applications of eligible entities to receive grants

12 under paragraph (1), the Secretary shall

13 consider—

14 ‘‘(i) the ability and expertise of the eli15 gible entity in providing professional energy

16 audits and renewable energy assessments;

17 ‘‘(ii) the geographic scope of the pro18 gram proposed by the eligible entity in rela19 tion to the identified need;

20 ‘‘(iii) the number of agricultural pro21 ducers and rural small businesses to be as22 sisted by the program;

23 ‘‘(iv) the potential for energy savings

24 and environmental and public health bene25 fits resulting from the program; and
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1 ‘‘(v) the plan of the eligible entity for

2 providing information to agricultural pro3 ducers and rural small businesses on the

4 benefits of energy efficiency and renewable

5 energy development.

6 ‘‘(4) USEOF GRANT FUNDS.—

7 ‘‘(A) REQUIRED USES.—A recipient of a

8 grant under paragraph (1) shall use the grant

9 funds to conduct and promote energy audits for

10 agricultural producers and rural small busi11 nesses to provide recommendations on how to im12 prove energy efficiency and use renewable energy

13 technology and resources.

14 ‘‘(B) PERMITTED USES.—In addition to the

15 uses described in subparagraph (A), a recipient

16 of a grant may use the grant funds to make ag17 ricultural producers and rural small businesses

18 aware of—

19 ‘‘(i) financial assistance under sub20 section (c); and

21 ‘‘(ii) other Federal, State, and local fi22 nancial assistance programs for which the

23 agricultural producers and rural small

24 businesses may be eligible.
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1 ‘‘(5) COST SHARING.—A recipient of a grant

2 under paragraph (1) that conducts an energy audit

3 for an agricultural producer or rural small business

4 under paragraph (4)(A) shall require that, as a con5 dition of the energy audit, the agricultural producer

6 or rural small business pay at least 25 percent of the

7 cost of the energy audit, which shall be retained by

8 the eligible entity for the cost of the energy audit.

9 ‘‘(c) FINANCIAL ASSISTANCEFOR ENERGY EFFICIENCY

10 IMPROVEMENTS AND RENEWABLE ENERGY SYSTEMS.—

11 ‘‘(1) IN GENERAL.—In addition to any similar

12 authority, the Secretary shall provide loan guaran13 tees, grants, and production-based incentives to agri14 cultural producers and rural small businesses—

15 ‘‘(A) to purchase renewable energy systems,

16 including systems that may be used to produce

17 and sell electricity; and

18 ‘‘(B) to make energy efficiency improve19 ments.

20 ‘‘(2) AWARD CONSIDERATIONS.—In determining

21 the amount of a grant, loan guarantee, or production22 based incentive provided under this section, the Sec23 retary shall take into consideration, as applicable—

24 ‘‘(A) the type of renewable energy system to

25 be purchased;
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1 ‘‘(B) the estimated quantity of energy to be

2 generated by the renewable energy system;

3 ‘‘(C) the expected environmental benefits of

4 the renewable energy system;

5 ‘‘(D) the quantity of energy savings ex6 pected to be derived from the activity, as dem7 onstrated by an energy audit comparable to an

8 energy audit under subsection (b);

9 ‘‘(E) the estimated period of time for the en10 ergy savings generated by the activity to equal

11 the cost of the activity;

12 ‘‘(F) the expected energy efficiency of the re13 newable energy system; and

14 ‘‘(G) other appropriate factors.

15 ‘‘(3) FEASIBILITY STUDIES.—

16 ‘‘(A) IN GENERAL.—The Secretary may

17 provide assistance in the form of grants to an

18 agricultural producer or rural small business to

19 conduct a feasibility study for a project for

20 which assistance may be provided under this

21 subsection.

22 ‘‘(B) LIMITATION.—The Secretary shall use

23 not more than 10 percent of the funds made

24 available to carry out this subsection to provide

25 assistance described in subparagraph (A).
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1 ‘‘(C) AVOIDANCEOF DUPLICATIVEASSIST2 ANCE.—An entity shall be ineligible to receive

3 assistance to carry out a feasibility study for a

4 project under this paragraph if the entity has re5 ceived Federal or State assistance for a feasi6 bility study for the project.

7 ‘‘(4) LIMITS.—

8 ‘‘(A) GRANTS.—The amount of a grant

9 under this subsection shall not exceed 25 percent

10 of the cost of the activity carried out using funds

11 from the grant.

12 ‘‘(B) LOAN GUARANTEES.—

13 ‘‘(i) MAXIMUM AMOUNT.—The amount

14 of a loan guaranteed under this subsection

15 shall not exceed $25,000,000.

16 ‘‘(ii) MAXIMUM PERCENTAGE.—A loan

17 guaranteed under this subsection shall not

18 exceed 75 percent of the cost of the activity

19 carried out using funds from the loan.

20 ‘‘(5) PRODUCTION-BASED INCENTIVE PAYMENTS

21 IN LIEU OF GRANTS.—

22 ‘‘(A) IN GENERAL.—In addition to the au23 thority under subsection (b), to encourage the

24 production of electricity from renewable energy

25 systems, the Secretary, on receipt of a request of
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1 an eligible applicant under this section, shall

2 make production-based incentive payments to the

3 applicant in lieu of a grant.

4 ‘‘(B) CONTINGENCY.—A payment under

5 subparagraph (A) shall be contingent on docu6 mented energy production and sales by the re7 newable energy system of the eligible applicant

8 to a third party.

9 ‘‘(C) LIMITATION.—The total net present

10 value of a production-based incentive payment

11 under this paragraph shall not exceed the lesser

12 of—

13 ‘‘(i) an amount equal to 25 percent of

14 the eligible project costs, as determined by

15 the Secretary; and

16 ‘‘(ii) such other limit as the Secretary

17 may establish, by rule or guidance.

18 ‘‘(d) FINANCIAL ASSISTANCEFOR FACILITIES TO CON19 VERT ANIMAL MANURETO ENERGY.—

20 ‘‘(1) DEFINITION OF ANIMAL MANURE.—In this

21 subsection, the term ‘animal manure’ means agricul22 tural livestock excrement, including litter, wood

23 shavings, straw, rice hulls, bedding material, and

24 other materials incidentally collected with the ma25 nure.
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1 ‘‘(2) GRANTS AND LOAN GUARANTEES.—The Sec2 retary shall make grants and loan guarantees to eligi3 ble entities on a competitive basis for the installation,

4 operation, and evaluation of facilities described in

5 paragraph (4).

6 ‘‘(3) ELIGIBLE ENTITIES.—To be eligible to re7 ceive a grant or loan guarantee under this subsection,

8 an entity shall be—

9 ‘‘(A) an agricultural producer;

10 ‘‘(B) a rural small business;

11 ‘‘(C) a rural cooperative; or

12 ‘‘(D) any other similar entity, as deter13 mined by the Secretary.

14 ‘‘(4) ELIGIBLEFACILITIES.—

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graphs (B) through (E), an eligible entity may

17 receive a grant or loan guarantee under this sub18 section for the installation, first-year operation,

19 and evaluation of an on-farm or community fa20 cility (such as a digester or power generator

21 using manure for fuel) the primary function of

22 which is to convert animal manure into a useful

23 form of energy (including gaseous or liquid fuel

24 or electricity).
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1 ‘‘(B) SUBSYSTEMS INCLUDED.—Funds from

2 a grant and loan guarantee under subparagraph

3 (A) may be used for systems that support an on4 farm or community facility described in that

5 subparagraph, which may include feedstock gath6 ering systems and gas piping systems.

7 ‘‘(C) CONVERSION OF RENEWABLE BIO8 MASS.—An eligible entity may use a grant or

9 loan guarantee provided under this subsection to

10 convert renewable biomass other than animal

11 manure (such as waste materials from food proc12 essing facilities and other green wastes) into en13 ergy at a facility if the majority of materials

14 converted into energy at the facility is animal

15 manure.

16 ‘‘(D) DEVELOPMENT AND DEMONSTRATION

17 OF NEW TECHNOLOGIES.—An eligible entity may

18 use a grant or loan guarantee provided under

19 this subsection for the installation, demonstra20 tion, and first 2 years of operation of an on21 farm or community facility that uses manure-to22 energy technologies—

23 ‘‘(i) that are not in commercial use, as

24 determined by the Secretary; and
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1 ‘‘(ii) for which sufficient research has

2 been conducted for the Secretary to deter3 mine that the technology is commercially

4 viable.

5 ‘‘(5) SELECTION OF ELIGIBLE ENTITIES.—In se6 lecting applications for grants and loan guarantees

7 under this subsection, the Secretary shall consider—

8 ‘‘(A) the quality of energy produced; and

9 ‘‘(B) the projected net energy conversion ef10 ficiency, which shall be equal to the quotient ob11 tained by dividing—

12 ‘‘(i) the energy output of the eligible fa13 cility; by

14 ‘‘(ii) the sum of—

15 ‘‘(I) the energy content of animal

16 manure at the point of collection; and

17 ‘‘(II) the energy consumed in fa18 cility operations, including feedstock

19 transportation;

20 ‘‘(C) environmental issues, including poten21 tial positive and negative impacts on water

22 quality, air quality, odor emissions, pathogens,

23 and soil quality resulting from—

24 ‘‘(i) the use and conversion of animal

25 manure into energy;
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1 ‘‘(ii) the installation and operation of

2 the facility; and

3 ‘‘(iii) the disposal of any waste prod4 ucts (including effluent) from the facility;

5 ‘‘(D) the net impact of the facility and any

6 waste from the facility on greenhouse gas emis7 sions, based on the estimated emissions from ma8 nure storage systems in use before the installa9 tion of the manure-to-energy facility;

10 ‘‘(E) diversity factors, including diversity

11 of—

12 ‘‘(i) sizes of projects supported; and

13 ‘‘(ii) geographic locations; and

14 ‘‘(F) the proposed project costs and levels of

15 grants or loan guarantees requested.

16 ‘‘(6) AMOUNT.—

17 ‘‘(A) GRANTS.—

18 ‘‘(i) SMALLER PROJECTS.—In the case

19 of a project with a total eligible cost (as de20 scribed in paragraph (4)) of not more than

21 $500,000, the amount of a grant made

22 under this subsection shall not exceed 50

23 percent of the total eligible cost.

24 ‘‘(ii) LARGER PROJECTS.—In the case

25 of a project with a total eligible cost (as de-
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1 scribed in paragraph (4)) of more than

2 $500,000, the amount of a grant made

3 under this subsection shall not exceed the

4 greater of—

5 ‘‘(I) $250,000; or

6 ‘‘(II) 25 percent of the total eligi7 ble cost.

8 ‘‘(iii) MAXIMUM.—In no case shall the

9 amount of a grant made under this section

10 exceed $2,000,000.

11 ‘‘(B) LOAN GUARANTEES.—The principal

12 amount and interest of a loan guaranteed under

13 this subsection may not exceed the lesser of—

14 ‘‘(i) 80 percent of the difference

15 between—

16 ‘‘(I) the total cost to install and

17 operate the eligible facility for the first

18 year, as determined by the Secretary;

19 and

20 ‘‘(II) the amount of any Federal,

21 State, and local funds received to sup22 port the eligible facility; and

23 ‘‘(ii) $25,000,000.

24 ‘‘(7) PROHIBITION.—A grant or loan guarantee

25 may not be provided for a project under this sub-
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1 section that also receives assistance under subsection

2 (b) or (c).

3 ‘‘(e) ROLEOF STATE RURAL DEVELOPMENT DIREC4 TOR.—

5 ‘‘(1) OUTREACH AND AVAILABILITY OF INFORMA6 TION.—

7 ‘‘(A) OUTREACH.—A State rural develop8 ment director, acting through local rural devel9 opment offices, shall provide outreach regarding

10 the availability of financial assistance under this

11 section.

12 ‘‘(B) AVAILABILITY OF INFORMATION.—A

13 State rural development director shall make

14 available information relating to the availability

15 of financial assistance under this section at all

16 local rural development, Farm Service Agency,

17 and Natural Resources Conservation Service of18 fices.

19 ‘‘(2) APPLICATION REVIEW.—Applications for as20 sistance under this section shall be reviewed by the

21 appropriate State rural development director.

22 ‘‘(f) SMALL PROJECTS.—

23 ‘‘(1) APPLICATION AND REVIEW PROCESS.—The

24 Secretary shall develop a streamlined application and
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1 expedited review process for project applicants seeking

2 less than $20,000 under this section.

3 ‘‘(2) PERCENTAGE OF FUNDS.—Not less than 20

4 percent of the funds made available under subsection

5 (k)(1) shall be made available to make grants under

6 this section in an amount of less than $20,000.

7 ‘‘(g) PREFERENCE.—In selecting projects to receive

8 grants under this section, the Secretary shall give preference

9 to projects that receive or will receive financial support

10 from the State in which the project is carried out.

11 ‘‘(h) RURAL ENERGY STAR.—The Secretary, in coordi12 nation with the Administrator and the Secretary of Energy,

13 shall extend the Energy Star program established by section

14 324A of the Energy Policy and Conservation Act (42 U.S.C.

15 6294a) to include a Rural Energy Star component to pro16 mote the development and use of energy-efficient equipment

17 and facilities in the agricultural sector.

18 ‘‘(i) REPORTS.—Not later than 4 years after the date

19 of enactment of the Food and Energy Security Act of 2007,

20 the Secretary shall submit to Congress a report on the im21 plementation of this section, including the outcomes

22 achieved by projects funded under this section.

23 ‘‘(j) FUNDING.—

24 ‘‘(1) COMMODITY CREDIT CORPORATION.—Of the

25 funds of the Commodity Credit Corporation, the Sec-
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1 retary shall make available $230,000,000 to carry out

2 subsections (b), (c), and (d) for fiscal year 2008, to

3 remain available until expended, of which—

4 ‘‘(A) not less than 5 percent shall be used to

5 carry out subsection (b); and

6 ‘‘(B) not less than 15 percent shall be used

7 to carry out subsection (d).

8 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In

9 addition to any other funds made available to carry

10 out this section, there are authorized to be appro11 priated such sums as are necessary to carry out this

12 section for each of fiscal years 2008 through 2012.

13 ‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT

14 OF 2000.

15 ‘‘(a) DEFINITIONS.—In this section:

16 ‘‘(1) BIOBASED PRODUCT.—The term ‘biobased

17 product’ means—

18 ‘‘(A) an industrial product (including

19 chemicals, materials, and polymers) produced

20 from biomass; and

21 ‘‘(B) a commercial or industrial product

22 (including animal feed and electric power) de23 rived in connection with the conversion of bio24 mass to fuel.
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1 ‘‘(2) DEMONSTRATION.—The term ‘demonstra2 tion’ means demonstration of technology in a pilot

3 plant or semi-works scale facility, including a plant

4 or facility located on a farm.

5 ‘‘(3) INITIATIVE.—The term ‘Initiative’ means

6 the Biomass Research and Development Initiative es7 tablished under subsection (e).

8 ‘‘(4) NATIONAL LABORATORY.—The term ‘Na9 tional Laboratory’ has the meaning given that term

10 in section 2 of the Energy Policy Act of 2005 (42

11 U.S.C. 15801).

12 ‘‘(5) POINT OF CONTACT.—The term ‘point of

13 contact’ means a point of contact designated under

14 this section.

15 ‘‘(b) COOPERATION AND COORDINATION IN BIOMASS

16 RESEARCH AND DEVELOPMENT.—

17 ‘‘(1) IN GENERAL.—The Secretary of Agriculture

18 and the Secretary of Energy shall cooperate with re19 spect to, and coordinate, policies and procedures that

20 promote research and development leading to the pro21 duction of biofuels and biobased products.

22 ‘‘(2) POINTS OF CONTACT.—

23 ‘‘(A) IN GENERAL.—To coordinate research

24 and development programs and activities relat-
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1 ing to biofuels and biobased products that are

2 carried out by their respective departments—

3 ‘‘(i) the Secretary of Agriculture shall

4 designate, as the point of contact for the De5 partment of Agriculture, an officer of the

6 Department of Agriculture appointed by the

7 President to a position in the Department

8 before the date of the designation, by and

9 with the advice and consent of the Senate;

10 and

11 ‘‘(ii) the Secretary of Energy shall des12 ignate, as the point of contact for the De13 partment of Energy, an officer of the De14 partment of Energy appointed by the Presi15 dent to a position in the Department before

16 the date of the designation, by and with the

17 advice and consent of the Senate.

18 ‘‘(B) DUTIES.—The points of contact shall

19 jointly—

20 ‘‘(i) assist in arranging interlabora21 tory and site-specific supplemental agree22 ments for research and development projects

23 relating to biofuels and biobased products;

24 ‘‘(ii) serve as cochairpersons of the

25 Board;
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1 ‘‘(iii) administer the Initiative; and

2 ‘‘(iv) respond in writing to each rec3 ommendation of the Advisory Committee

4 made under subsection (d).

5 ‘‘(c) BIOMASS RESEARCH AND DEVELOPMENT

6 BOARD.—

7 ‘‘(1) ESTABLISHMENT.—There is established the

8 Biomass Research and Development Board, which

9 shall supersede the Interagency Council on Biobased

10 Products and Bioenergy established by Executive

11 Order No. 13134 (7 U.S.C. 8101 note), to coordinate

12 programs within and among departments and agen13 cies of the Federal Government for the purpose of pro14 moting the use of biofuels and biobased products by—

15 ‘‘(A) maximizing the benefits deriving from

16 Federal grants and assistance; and

17 ‘‘(B) bringing coherence to Federal strategic

18 planning.

19 ‘‘(2) MEMBERSHIP.—The Board shall consist

20 of—

21 ‘‘(A) the point of contact of the Department

22 of Energy designated under subsection

23 (b)(2)(A)(ii), who shall serve as cochairperson of

24 the Board;
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1 ‘‘(B) the point of contact of the Department

2 of Agriculture designated under subsection

3 (b)(2)(A)(i), who shall serve as cochairperson of

4 the Board;

5 ‘‘(C) a senior officer of each of the Depart6 ment of the Interior, the Environmental Protec7 tion Agency, the National Science Foundation,

8 and the Office of Science and Technology Policy,

9 each of whom shall—

10 ‘‘(i) be appointed by the head of the re11 spective agency; and

12 ‘‘(ii) have a rank that is equivalent to

13 the rank of the points of contact; and

14 ‘‘(D) at the option of the Secretary of Agri15 culture and the Secretary of Energy, other mem16 bers appointed by the Secretaries (after consulta17 tion with the members described in subpara18 graphs (A) through (C)).

19 ‘‘(3) DUTIES.—The Board shall—

20 ‘‘(A) coordinate research and development

21 activities relating to biofuels and biobased

22 products—

23 ‘‘(i) between the Department of Agri24 culture and the Department of Energy; and
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1 ‘‘(ii) with other departments and agen2 cies of the Federal Government;

3 ‘‘(B) provide recommendations to the points

4 of contact concerning administration of this title;

5 ‘‘(C) ensure that—

6 ‘‘(i) solicitations are open and com7 petitive with awards made annually; and

8 ‘‘(ii) objectives and evaluation criteria

9 of the solicitations are clearly stated and

10 minimally prescriptive, with no areas of

11 special interest; and

12 ‘‘(D) ensure that the panel of scientific and

13 technical peers assembled under subsection (e) to

14 review proposals is composed predominantly of

15 independent experts selected from outside the De16 partments of Agriculture and Energy.

17 ‘‘(4) FUNDING.—Each agency represented on the

18 Board is encouraged to provide funds for any purpose

19 under this section.

20 ‘‘(5) MEETINGS.—The Board shall meet at least

21 quarterly to enable the Board to carry out the duties

22 of the Board under paragraph (3).

23 ‘‘(d) BIOMASS RESEARCH AND DEVELOPMENT TECH24 NICAL ADVISORY COMMITTEE.—
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1 ‘‘(1) ESTABLISHMENT.—There is established the

2 Biomass Research and Development Technical Advi3 sory Committee, which shall supersede the Advisory

4 Committee on Biobased Products and Bioenergy es5 tablished by Executive Order No. 13134 (7 U.S.C.

6 8101 note)—

7 ‘‘(A) to advise the Secretary of Energy, the

8 Secretary of Agriculture, and the points of con9 tact concerning—

10 ‘‘(i) the distribution of funding;

11 ‘‘(ii) the technical focus and direction

12 of requests for proposals issued under the

13 Initiative; and

14 ‘‘(iii) procedures for reviewing and

15 evaluating the proposals;

16 ‘‘(B) to facilitate consultations and partner17 ships among Federal and State agencies, agricul18 tural producers, industry, consumers, the re19 search community, and other interested groups

20 to carry out program activities relating to the

21 Initiative; and

22 ‘‘(C) to evaluate and perform strategic

23 planning on program activities relating to the

24 Initiative.

25 ‘‘(2) MEMBERSHIP.—
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1 ‘‘(A) IN GENERAL.—The Advisory Com2 mittee shall consist of—

3 ‘‘(i) an individual affiliated with the

4 biofuels industry;

5 ‘‘(ii) an individual affiliated with the

6 biobased industrial and commercial prod7 ucts industry;

8 ‘‘(iii) an individual affiliated with an

9 institution of higher education who has ex10 pertise in biofuels and biobased products;

11 ‘‘(iv) 2 prominent engineers or sci12 entists from government or academia who

13 have expertise in biofuels and biobased

14 products;

15 ‘‘(v) an individual affiliated with a

16 commodity trade association;

17 ‘‘(vi) 2 individuals affiliated with an

18 environmental or conservation organization;

19 ‘‘(vii) an individual associated with

20 State government who has expertise in

21 biofuels and biobased products;

22 ‘‘(viii) an individual with expertise in

23 energy and environmental analysis;
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1 ‘‘(ix) an individual with expertise in

2 the economics of biofuels and biobased prod3 ucts;

4 ‘‘(x) an individual with expertise in

5 agricultural economics;

6 ‘‘(xi) an individual with expertise in

7 plant biology and biomass feedstock develop8 ment;

9 ‘‘(xii) an individual with expertise in

10 agronomy, crop science, or soil science; and

11 ‘‘(xiii) at the option of the points of

12 contact, other members.

13 ‘‘(B) APPOINTMENT.—The members of the

14 Advisory Committee shall be appointed by the

15 points of contact.

16 ‘‘(3) DUTIES.—The Advisory Committee shall—

17 ‘‘(A) advise the points of contact with re18 spect to the Initiative; and

19 ‘‘(B) evaluate whether, and make rec20 ommendations in writing to the Board to ensure

21 that—

22 ‘‘(i) funds authorized for the Initiative

23 are distributed and used in a manner that

24 is consistent with the objectives, purposes,

25 and considerations of the Initiative;
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1 ‘‘(ii) solicitations are open and com2 petitive with awards made annually and

3 that objectives and evaluation criteria of the

4 solicitations are clearly stated and mini5 mally prescriptive, with no areas of special

6 interest;

7 ‘‘(iii) the points of contact are funding

8 proposals under this title that are selected

9 on the basis of merit, as determined by an

10 independent panel of scientific and tech11 nical peers predominantly from outside the

12 Departments of Agriculture and Energy;

13 and

14 ‘‘(iv) activities under this section are

15 carried out in accordance with this section.

16 ‘‘(4) COORDINATION.—To avoid duplication of

17 effort, the Advisory Committee shall coordinate the ac18 tivities of the Advisory Committee with activities of

19 other Federal advisory committees working in related

20 areas.

21 ‘‘(5) MEETINGS.—The Advisory Committee shall

22 meet at least quarterly to enable the Advisory Com23 mittee to carry out the duties of the Advisory Com24 mittee.
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1 ‘‘(6) TERMS.—Members of the Advisory Com2 mittee shall be appointed for a term of 3 years.

3 ‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT INITIA4 TIVE.—

5 ‘‘(1) IN GENERAL.—The Secretary of Agriculture

6 and the Secretary of Energy, acting through their re7 spective points of contact and in consultation with

8 the Board, shall establish and carry out a Biomass

9 Research and Development Initiative under which

10 competitively awarded grants, contracts, and finan11 cial assistance are provided to, or entered into with,

12 eligible entities to carry out research on, and develop13 ment and demonstration of, biofuels and biobased

14 products, and the methods, practices, and tech15 nologies, for the production of the fuels and product.

16 ‘‘(2) OBJECTIVES.—The objectives of the Initia17 tive are to develop—

18 ‘‘(A) technologies and processes necessary

19 for abundant commercial production of biofuels

20 at prices competitive with fossil fuels;

21 ‘‘(B) high-value biobased products—

22 ‘‘(i) to enhance the economic viability

23 of biofuels and bioenergy;

24 ‘‘(ii) as substitutes for petroleum-based

25 feedstocks and products; and
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1 ‘‘(iii) to enhance the value of coprod2 ucts produced using the technologies and

3 processes; and

4 ‘‘(C) a diversity of sustainable domestic

5 sources of renewable biomass for conversion to

6 biofuels, bioenergy, and biobased products.

7 ‘‘(3) PURPOSES.—The purposes of the Initiative

8 are—

9 ‘‘(A) to increase the energy security of the

10 United States;

11 ‘‘(B) to create jobs and enhance the eco12 nomic development of the rural economy;

13 ‘‘(C) to enhance the environment and public

14 health; and

15 ‘‘(D) to diversify markets for raw agricul16 tural and forestry products.

17 ‘‘(4) TECHNICAL AREAS.—To advance the objec18 tives and purposes of the Initiative, the Secretary of

19 Agriculture and the Secretary of Energy, in consulta20 tion with the Administrator of the Environmental

21 Protection Agency and heads of other appropriate de22 partments and agencies (referred to in this subsection

23 as the ‘Secretaries’), shall direct research, develop24 ment, and demonstration toward—
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1 ‘‘(A) feedstocks and feedstock systems rel2 evant to production of raw materials for conver3 sion to biofuels and biobased products,

4 including—

5 ‘‘(i) development of advanced and dedi6 cated crops with desired features, including

7 enhanced productivity, broader site range,

8 low requirements for chemical inputs, and

9 enhanced processing;

10 ‘‘(ii) advanced crop production meth11 ods to achieve the features described in

12 clause (i) and suitable assay techniques for

13 those features;

14 ‘‘(iii) feedstock harvest, handling,

15 transport, and storage;

16 ‘‘(iv) strategies for integrating feed17 stock production into existing managed

18 land; and

19 ‘‘(v) improving the value and quality

20 of coproducts, including material used for

21 animal feeding;

22 ‘‘(B) development of cost-effective tech23 nologies for the use of cellulosic biomass in the

24 production of biofuels and biobased products,

25 including—
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1 ‘‘(i) pretreatment in combination with

2 enzymatic or microbial hydrolysis;

3 ‘‘(ii) thermochemical approaches, in4 cluding gasification and pyrolysis; and

5 ‘‘(iii) self-processing crops that express

6 enzymes capable of degrading cellulosic bio7 mass;

8 ‘‘(C) product diversification through tech9 nologies relevant to production of a range of

10 biobased products (including chemicals, animal

11 feeds, and cogenerated power) that eventually

12 can increase the feasibility of fuel production in

13 a biorefinery, including—

14 ‘‘(i) catalytic processing, including

15 thermochemical fuel production;

16 ‘‘(ii) metabolic engineering, enzyme en17 gineering, and fermentation systems for bio18 logical production of desired products, co19 products, or cogeneration of power;

20 ‘‘(iii) product recovery;

21 ‘‘(iv) power production technologies,

22 including distributed generation;

23 ‘‘(v) integration into existing renew24 able biomass processing facilities, including

25 starch ethanol plants, sugar processing or
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1 refining plants, paper mills, and power

2 plants;

3 ‘‘(vi) enhancement of products and co4 products, including dried distillers grains;

5 and

6 ‘‘(vii) technologies that allow for cost7 effective harvest, handling, transport, and

8 storage; and

9 ‘‘(D) analysis that provides strategic guid10 ance for the application of renewable biomass

11 technologies in accordance with realization of

12 improved sustainability and environmental

13 quality, cost effectiveness, security, and rural

14 economic development, usually featuring system15 wide approaches, including the harvest, han16 dling, transport, and storage of renewable bio17 mass.

18 ‘‘(5) ADDITIONAL CONSIDERATIONS.—Within the

19 technical areas described in paragraph (4), and in

20 addition to advancing the purposes described in para21 graph (3) and the objectives described in paragraph

22 (2), the Secretaries shall support research and

23 development—

24 ‘‘(A) to create continuously expanding op25 portunities for participants in existing biofuels
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1 production by seeking synergies and continuity

2 with current technologies and practices, such as

3 improvements in dried distillers grains and

4 other biofuel production coproducts for use as

5 bridge feedstocks;

6 ‘‘(B) to maximize the environmental, eco7 nomic, and social benefits of production of

8 biofuels and biobased products on a large scale

9 through life-cycle economic and environmental

10 analysis and other means; and

11 ‘‘(C) to assess the potential of Federal land

12 and land management programs as feedstock re13 sources for biofuels and biobased products, con14 sistent with the integrity of soil and water re15 sources and with other environmental consider16 ations.

17 ‘‘(6) ELIGIBLE ENTITIES.—To be eligible for a

18 grant, contract, or assistance under this subsection,

19 an applicant shall be—

20 ‘‘(A) an institution of higher education;

21 ‘‘(B) a National Laboratory;

22 ‘‘(C) a Federal research agency;

23 ‘‘(D) a State research agency;

24 ‘‘(E) a private sector entity;

25 ‘‘(F) a nonprofit organization; or
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1 ‘‘(G) a consortium of 2 or more entities de2 scribed in subparagraphs (A) through (F).

3 ‘‘(7) ADMINISTRATION.—

4 ‘‘(A) IN GENERAL.—After consultation with

5 the Board, the points of contact shall—

6 ‘‘(i) publish annually 1 or more joint

7 requests for proposals for grants, contracts,

8 and assistance under this subsection;

9 ‘‘(ii) require that grants, contracts,

10 and assistance under this section be award11 ed competitively, on the basis of merit, after

12 the establishment of procedures that provide

13 for scientific peer review by an independent

14 panel of scientific and technical peers;

15 ‘‘(iii) give partial preference to appli16 cations that—

17 ‘‘(I) involve a consortia of experts

18 from multiple institutions;

19 ‘‘(II) encourage the integration of

20 disciplines and application of the best

21 technical resources; and

22 ‘‘(III) increase the geographic di23 versity of demonstration projects; and

24 ‘‘(iv) require that not less than 15 per25 cent of funds made available to carry out
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1 this section is used for research and develop2 ment relating to each of the technical areas

3 described in paragraph (4).

4 ‘‘(B) MATCHING FUNDS.—

5 ‘‘(i) IN GENERAL.—The non-Federal

6 share of the cost of a demonstration project

7 under this section shall be not less than 20

8 percent.

9 ‘‘(ii) COMMERCIAL APPLICATIONS.—

10 The non-Federal share of the cost of a com11 mercial application project under this sec12 tion shall be not less than 50 percent.

13 ‘‘(C) TECHNOLOGY AND INFORMATION

14 TRANSFER TO AGRICULTURAL USERS.—The Ad15 ministrator of the National Institute of Food

16 and Agriculture and the Chief of the Natural Re17 sources Conservation Service shall ensure that

18 applicable research results and technologies from

19 the Initiative are—

20 ‘‘(i) adapted, made available, and dis21 seminated through those services, as appro22 priate; and

23 ‘‘(ii) included in the best practices

24 database established under section 220 of
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1 the Department of Agriculture Reorganiza2 tion Act of 1994 (7 U.S.C. 6920).

3 ‘‘(f) ADMINISTRATIVE SUPPORT AND FUNDS.—

4 ‘‘(1) IN GENERAL.—To the extent administrative

5 support and funds are not provided by other agencies

6 under paragraph (2), the Secretary of Energy and the

7 Secretary of Agriculture may provide such adminis8 trative support and funds of the Department of En9 ergy and the Department of Agriculture to the Board

10 and the Advisory Committee as are necessary to en11 able the Board and the Advisory Committee to carry

12 out their duties under this section.

13 ‘‘(2) OTHER AGENCIES.—The heads of the agen14 cies referred to in subsection (c)(2)(C), and the other

15 members of the Board appointed under subsection

16 (c)(2)(D), may, and are encouraged to, provide ad17 ministrative support and funds of their respective

18 agencies to the Board and the Advisory Committee.

19 ‘‘(3) LIMITATION.—Not more than 4 percent of

20 the amount made available for each fiscal year under

21 subsection (h) may be used to pay the administrative

22 costs of carrying out this section.

23 ‘‘(g) REPORTS.—

24 ‘‘(1) ANNUAL REPORTS.—For each fiscal year for

25 which funds are made available to carry out this sec-
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1 tion, the Secretary of Energy and the Secretary of

2 Agriculture shall jointly submit to Congress a detailed

3 report on—

4 ‘‘(A) the status and progress of the Initia5 tive, including a report from the Advisory Com6 mittee on whether funds appropriated for the

7 Initiative have been distributed and used in a

8 manner that—

9 ‘‘(i) is consistent with the objectives,

10 purposes, and additional considerations de11 scribed in paragraphs (2) through (5) of

12 subsection (e);

13 ‘‘(ii) uses the set of criteria established

14 in the initial report submitted under title

15 III of the Agricultural Risk Protection Act

16 of 2000 (7 U.S.C. 7624 note; Public Law

17 106–224) (as in effect on the date before the

18 date of enactment of the Food and Energy

19 Security Act of 2007); and

20 ‘‘(iii) takes into account any rec21 ommendations that have been made by the

22 Advisory Committee;

23 ‘‘(B) the general status of cooperation and

24 research and development efforts carried out at

25 each agency with respect to biofuels and biobased
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1 products, including a report from the Advisory

2 Committee on whether the points of contact are

3 funding proposals that are selected under sub4 section (d)(3)(B)(iii); and

5 ‘‘(C) the plans of the Secretary of Energy

6 and the Secretary of Agriculture for addressing

7 concerns raised in the report, including concerns

8 raised by the Advisory Committee.

9 ‘‘(2) UPDATES.—The Secretary of Agriculture

10 and the Secretary of Energy shall update the Vision

11 and Roadmap documents prepared for Federal bio12 mass research and development activities.

13 ‘‘(h) FUNDING.—

14 ‘‘(1) COMMODITY CREDIT CORPORATION

15 FUNDS.—Of the funds of the Commodity Credit Cor16 poration, the Secretary of Agriculture, to the max17 imum extent practicable, shall use to carry out this

18 section, to remain available until expended—

19 ‘‘(A) $15,000,000 for fiscal year 2008;

20 ‘‘(B) $25,000,000 for fiscal year 2009; and

21 ‘‘(C) $35,000,000 for fiscal year 2010.

22 ‘‘(2) ADDITIONAL FUNDING.—In addition to

23 amounts described in paragraph (1), there is author24 ized to be appropriated to carry out this section
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1 $85,000,000 for each of fiscal years 2008 through

2 2012.

3 ‘‘SEC. 9009. SUN GRANT PROGRAM.

4 ‘‘(a) PURPOSES.—The purposes of the programs estab5 lished under this section are—

6 ‘‘(1) to enhance national energy security through

7 the development, distribution, and implementation of

8 biobased energy technologies;

9 ‘‘(2) to promote diversification in, and the envi10 ronmental sustainability of, agricultural production

11 in the United States through biobased energy and

12 product technologies;

13 ‘‘(3) to promote economic diversification in rural

14 areas of the United States through biobased energy

15 and product technologies; and

16 ‘‘(4) to enhance the efficiency of bioenergy and

17 biomass research and development programs through

18 improved coordination and collaboration between the

19 Department of Agriculture, the Department of En20 ergy, and the land-grant colleges and universities.

21 ‘‘(b) DEFINITION OF LAND-GRANT COLLEGES AND

22 UNIVERSITIES.—The term ‘land-grant colleges and univer23 sities’ means—
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1 ‘‘(1) 1862 Institutions (as defined in section 2 of

2 the Agricultural Research, Extension, and Education

3 Reform Act of 1998 (7 U.S.C. 7601));

4 ‘‘(2) 1890 Institutions (as defined in section 2 of

5 that Act) and West Virginia State College; and

6 ‘‘(3) 1994 Institutions (as defined in section 2 of

7 that Act).

8 ‘‘(c) ESTABLISHMENT.—To carry out the purposes de9 scribed in subsection (a), the Secretary shall provide grants

10 to sun grant centers specified in subsection (d).

11 ‘‘(d) GRANTS TO CENTERS.—The Secretary shall use

12 amounts made available for a fiscal year under subsection

13 (j) to provide a grants in equal amounts to each of the fol14 lowing sun grant centers:

15 ‘‘(1) NORTH-CENTRAL CENTER.—A north-central

16 sun grant center at South Dakota State University

17 for the region composed of the States of Illinois, Indi18 ana, Iowa, Minnesota, Montana, Nebraska, North Da19 kota, South Dakota, Wisconsin, and Wyoming.

20 ‘‘(2) SOUTHEASTERN CENTER.—A southeastern

21 sun grant center at the University of Tennessee at

22 Knoxville for the region composed of—

23 ‘‘(A) the States of Alabama, Florida, Geor24 gia, Kentucky, Mississippi, North Carolina,

25 South Carolina, Tennessee, and Virginia;
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1 ‘‘(B) the Commonwealth of Puerto Rico;

2 and

3 ‘‘(C) the United States Virgin Islands.

4 ‘‘(3) SOUTH-CENTRAL CENTER.—A south-central

5 sun grant center at Oklahoma State University for

6 the region composed of the States of Arkansas, Colo7 rado, Kansas, Louisiana, Missouri, New Mexico,

8 Oklahoma, and Texas.

9 ‘‘(4) WESTERN CENTER.—A western sun grant

10 center at Oregon State University for the region com11 posed of—

12 ‘‘(A) the States of Alaska, Arizona, Cali13 fornia, Hawaii, Idaho, Nevada, Oregon, Utah,

14 and Washington; and

15 ‘‘(B) territories and possessions of the

16 United States (other than the territories referred

17 to in subparagraphs (B) and (C) of paragraph

18 (2)).

19 ‘‘(5) NORTHEASTERN CENTER.—A northeastern

20 sun grant center at Cornell University for the region

21 composed of the States of Connecticut, Delaware, Mas22 sachusetts, Maryland, Maine, Michigan, New Hamp23 shire, New Jersey, New York, Ohio, Pennsylvania,

24 Rhode Island, Vermont, and West Virginia.
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1 ‘‘(6) WESTERN INSULAR PACIFIC SUBCENTER.—

2 A western insular Pacific subcenter at the University

3 of Hawaii for the region composed of the State of

4 Alaska, the State of Hawaii, Guam, American

5 Samoa, the Commonwealth of the Northern Mariana

6 Islands, the Federated States of Micronesia, the Re7 public of the Marshall Islands, and the Republic of

8 Palau.

9 ‘‘(e) USEOF FUNDS.—

10 ‘‘(1) CENTERS OF EXCELLENCE.—Of the amount

11 of funds that are made available for a fiscal year to

12 a sun grant center under subsection (d), the center

13 shall use not more than 25 percent of the amount to

14 support excellence in science, engineering, and eco15 nomics at the center to promote the purposes described

16 in subsection (a) through the State agricultural exper17 iment station, cooperative extension services, and rel18 evant educational programs of the university.

19 ‘‘(2) GRANTS TO LAND-GRANT COLLEGES AND

20 UNIVERSITIES.—

21 ‘‘(A) IN GENERAL.—The sun grant center

22 established for a region shall use the funds that

23 remain available for a fiscal year after expendi24 tures made under paragraph (1) to provide com25 petitive grants to land-grant colleges and univer-
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1 sities in the region of the sun grant center to

2 conduct, consistent with the purposes described

3 in subsection (a), multi-institutional and

4 multistate—

5 ‘‘(i) research, extension, and edu6 cational programs on technology develop7 ment; and

8 ‘‘(ii) integrated research, extension,

9 and educational programs on technology

10 implementation.

11 ‘‘(B) PROGRAMS.—Of the amount of funds

12 that are used to provide grants for a fiscal year

13 under subparagraph (A), the center shall use—

14 ‘‘(i) not less than 30 percent of the

15 funds to carry out programs described in

16 subparagraph (A)(i); and

17 ‘‘(ii) not less than 30 percent of the

18 funds to carry out programs described in

19 subparagraph (A)(ii).

20 ‘‘(3) INDIRECT COSTS.—A sun grant center may

21 not recover the indirect costs of making grants under

22 paragraph (2) to other land-grant colleges and uni23 versities.

24 ‘‘(f) PLAN.—
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1 ‘‘(1) IN GENERAL.—Subject to the availability of

2 funds under subsection (j), in cooperation with other

3 land-grant colleges and universities and private in4 dustry in accordance with paragraph (2), the sun

5 grant centers shall jointly develop and submit to the

6 Secretary, for approval, a plan for addressing at the

7 State and regional levels the bioenergy, biomass, and

8 gasification research priorities of the Department of

9 Agriculture and the Department of Energy for the

10 making of grants under paragraphs (1) and (2) of

11 subsection (e).

12 ‘‘(2) GASIFICATION COORDINATION.—

13 ‘‘(A) IN GENERAL.—In developing the plan

14 under paragraph (1) with respect to gasification

15 research, the sun grant centers identified in

16 paragraphs (1) and (2) of subsection (d) shall

17 coordinate with land grant colleges and univer18 sities in their respective regions that have ongo19 ing research activities with respect to the re20 search.

21 ‘‘(B) FUNDING.—Funds made available

22 under subsection (d) to the sun grant center

23 identified in subsection (e)(2) shall be available

24 to carry out planning coordination under para25 graph (1) of this subsection.
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1 ‘‘(g) GRANTS TO OTHER LAND-GRANT COLLEGES AND

2 UNIVERSITIES.—

3 ‘‘(1) PRIORITY FOR GRANTS.—In making grants

4 under subsection (e)(2), a sun grant center shall give

5 a higher priority to programs that are consistent with

6 the plan approved by the Secretary under subsection

7 (f).

8 ‘‘(2) TERM OF GRANTS.—The term of a grant

9 provided by a sun grant center under subsection

10 (e)(2) shall not exceed 5 years.

11 ‘‘(h) GRANT INFORMATION ANALYSIS CENTER.—The

12 sun grant centers shall maintain a Sun Grant Information

13 Analysis Center at the sun grant center specified in sub14 section (d)(1) to provide sun grant centers analysis and

15 data management support.

16 ‘‘(i) ANNUAL REPORTS.—Not later than 90 days after

17 the end of a year for which a sun grant center receives a

18 grant under subsection (d), the sun grant center shall sub19 mit to the Secretary a report that describes the policies, pri20 orities, and operations of the program carried out by the

21 center during the year, including a description of progress

22 made in facilitating the priorities described in subsection

23 (f).

24 ‘‘(j) FUNDING.—
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1 ‘‘(1) COMMODITY CREDIT CORPORATION.—Of the

2 funds of the Commodity Credit Corporation, the Sec3 retary shall use to carry out this section, to remain

4 available until expended—

5 ‘‘(A) $5,000,000 for fiscal year 2008;

6 ‘‘(B) $10,000,000 for fiscal year 2009; and

7 ‘‘(C) $10,000,000 for fiscal year 2010.

8 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—

9 ‘‘(A) IN GENERAL.—In addition to any

10 other funds made available to carry out this sec11 tion, there is authorized to be appropriated to

12 carry out this section $70,000,000 for each of fis13 cal years 2008 through 2012.

14 ‘‘(B) GRANT INFORMATION ANALYSIS CEN15 TER.—Of amounts made available under sub16 paragraph (A), not more than $4,000,000 for

17 each fiscal year shall be made available to carry

18 out subsection (h).

19 ‘‘SEC. 9010. REGIONAL BIOMASS CROP EXPERIMENTS.

20 ‘‘(a) PURPOSE.—The purpose of this section is to ini21 tiate multi-region side-by-side crop experiments to provide

22 a sound knowledge base on all aspects of the production of

23 biomass energy crops, including crop species, nutrient re24 quirements, management practices, environmental impacts,

25 greenhouse gas implications, and economics.
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1 ‘‘(b) CROP EXPERIMENTS.—

2 ‘‘(1) IN GENERAL.—The Secretary, in consulta3 tion with the Board, based on the recommendations of

4 the Advisory Committee, shall award 10 competitive

5 grants to land-grant colleges and universities (as de6 fined in section 1404 of the National Agricultural Re7 search, Extension, and Teaching Policy Act of 1977

8 (7 U.S.C. 3103)) to establish regional biomass crop

9 research experiments (including experiments involv10 ing annuals, perennials, and woody biomass species).

11 ‘‘(2) SELECTION OF GRANT RECIPIENTS.—Grant

12 recipients shall be selected on the basis of applications

13 submitted in accordance with guidelines issued by the

14 Secretary.

15 ‘‘(3) SELECTION CRITERIA.—In selecting grant

16 recipients, the Secretary shall consider—

17 ‘‘(A) the capabilities and experience of the

18 applicant, including—

19 ‘‘(i) in conducting side-by-side crop ex20 periments;

21 ‘‘(ii) engineering and research knowl22 edge and experience relating to biofuels or

23 the production of inputs for biofuel produc24 tion; and
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1 ‘‘(iii) demonstrated willingness to con2 tribute significant in-kind resources;

3 ‘‘(B) the range of species types and crop4 ping practices proposed for study;

5 ‘‘(C) the quality of the proposed crop experi6 ment plan;

7 ‘‘(D) the commitment of the applicant of

8 adequate acreage and necessary resources for,

9 and continued participation in, the crop experi10 ments;

11 ‘‘(E) the need for regional diversity among

12 the 10 institutions selected; and

13 ‘‘(F) such other factors as the Secretary

14 may determine.

15 ‘‘(c) GRANTS.—The Secretary shall make a grant to

16 each land-grant college or university selected under sub17 section (b) in the amount of—

18 ‘‘(1) $1,000,000 for fiscal year 2008;

19 ‘‘(2) $2,000,000 for fiscal year 2009; and

20 ‘‘(3) $1,000,000 for fiscal year 2010.

21 ‘‘(d) COORDINATION.—The Secretary shall coordinate

22 with participants under this section—

23 ‘‘(1) to provide coordination regarding biomass

24 crop research approaches; and
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1 ‘‘(2) to ensure coordination between biomass crop

2 research activities carried out by land-grant colleges

3 and universities under this section and by sun grant

4 centers under section 9009.

5 ‘‘(e) FUNDING.—

6 ‘‘(1) COMMODITY CREDIT CORPORATION.—Of the

7 funds of the Commodity Credit Corporation, the Sec8 retary shall use to carry out this section, to remain

9 available until expended—

10 ‘‘(A) $10,000,000 for fiscal year 2008;

11 ‘‘(B) $20,000,000 for fiscal year 2009; and

12 ‘‘(C) $10,000,000 for fiscal year 2010.

13 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In

14 addition to any other funds made available to carry

15 out this section, there are authorized to be appro16 priated such sums are necessary to carry out this sec17 tion for each of fiscal years 2008 through 2012.

18 ‘‘SEC. 9011. NEW CENTURY FARM PROJECT.

19 ‘‘There is authorized to be appropriated to the Sec20 retary to support the development and operation of an inte21 grated and sustainable biomass, feedstock, and biofuels pro22 duction system to serve as a model for a new century farm

23 $15,000,000 for the period of fiscal years 2008 through

24 2012, to remain available until expended.
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1 ‘‘SEC. 9012. BIOCHAR RESEARCH, DEVELOPMENT, AND DEM2 ONSTRATION.

3 ‘‘(a) PURPOSE.—The purpose of this section is to sup4 port research, development, and demonstration of biochar

5 as a coproduct of bioenergy production, as a soil enhance6 ment practice, and as a carbon management strategy.

7 ‘‘(b) DEFINITION OF BIOCHAR.—In this section, the

8 term ‘biochar’ means charcoal or biomass-derived black car9 bon that is added to soil to improve soil fertility, nutrient

10 retention, and carbon content.

11 ‘‘(c) GRANTS.—The Secretary shall award competitive

12 grants to eligible entities to support biochar research, devel13 opment, and demonstration projects on multiple scales, in14 cluding laboratory biochar research and field trials, and

15 biochar systems on a single farm scale, local community

16 scale, and agricultural cooperative scale.

17 ‘‘(d) ELIGIBLE ENTITIES.—To be eligible to receive a

18 grant under this section, an entity shall be an eligible entity

19 described in section 9005(d).

20 ‘‘(e) AREAS OF BIOCHAR RESEARCH, DEVELOPMENT,

21 AND DEMONSTRATION.—In carrying out this section, the

22 Secretary shall solicit proposals for activities that

23 include—

24 ‘‘(1) the installation and use of biochar produc25 tion systems, including pyrolysis and

26 thermocombustion systems, and the integration of
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1 biochar production with bioenergy and bioproducts

2 production;

3 ‘‘(2) the study of agronomic effects of biochar

4 usage in soils, including plant growth and yield ef5 fects for different application rates and soil types,

6 and implications for water and fertilizer needs;

7 ‘‘(3) biochar characterization, including analysis

8 of physical properties, chemical structure, product

9 consistency and quality, and the impacts of those

10 properties on the soil-conditioning effects of biochar

11 in different soil types;

12 ‘‘(4) the study of effects of the use of biochar on

13 the carbon content of soils, with an emphasis on the

14 potential for biochar applications to sequester carbon;

15 ‘‘(5) the study of effects of biochar on greenhouse

16 gas emissions relating to crop production, including

17 nitrous oxide and carbon dioxide emissions from

18 cropland;

19 ‘‘(6) the study of the integration of renewable en20 ergy and bioenergy production with biochar produc21 tion;

22 ‘‘(7) the study of the economics of biochar pro23 duction and use, including considerations of feedstock

24 competition, synergies of coproduction with bioenergy,
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1 the value of soil enhancements, and the value of soil

2 carbon sequestration; and

3 ‘‘(8) such other topics as are identified by the

4 Secretary.

5 ‘‘(f) FUNDING.—There is authorized to be appropriated

6 to carry out this section $3,000,000 for each of fiscal years

7 2008 through 2012.

8 ‘‘SEC. 9013. RENEWABLE WOODY BIOMASS FOR ENERGY.

9 ‘‘(a) IN GENERAL.—The Secretary, acting through the

10 Chief of the Forest Service (referred to in this section as

11 the ‘Secretary’), shall conduct a competitive research, tech12 nology development, and technology application program to

13 encourage the use of renewable woody biomass for energy.

14 ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to compete

15 under the program shall include—

16 ‘‘(1) the Forest Service (through Research and

17 Development);

18 ‘‘(2) other Federal agencies;

19 ‘‘(3) State and local governments;

20 ‘‘(4) federally recognized Indian tribes;

21 ‘‘(5) colleges and universities; and

22 ‘‘(6) private entities.

23 ‘‘(c) PRIORITY FOR PROJECT SELECTION.—The Sec24 retary shall give priority under the program to projects

25 that—
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1 ‘‘(1) develop technology and techniques to use

2 low-value woody biomass sources, such as byproducts

3 of forest health treatments and hazardous fuels reduc4 tion, for the production of energy;

5 ‘‘(2) develop processes that integrate production

6 of energy from woody biomass into biorefineries or

7 other existing manufacturing streams;

8 ‘‘(3) develop new transportation fuels from

9 woody biomass; and

10 ‘‘(4) improve the growth and yield of trees in11 tended for renewable energy production.

12 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is

13 authorized to be appropriated to carry out this section

14 $5,000,000 for each of fiscal years 2008 through 2012.

15 ‘‘SEC. 9014. COMMUNITY WOOD ENERGY PROGRAM.

16 ‘‘(a) DEFINITIONS.—In this section:

17 ‘‘(1) COMMUNITY WOOD ENERGY PLAN.—The

18 term ‘community wood energy plan’ means a plan

19 that identifies how local forests can be accessed in a

20 sustainable manner to help meet the wood supply

21 needs of a community wood energy system.

22 ‘‘(2) COMMUNITY WOOD ENERGY SYSTEM.—

23 ‘‘(A) IN GENERAL.—The term ‘community

24 wood energy system’ means an energy system

25 that—
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1 ‘‘(i) services schools, town halls, librar2 ies, and other public buildings; and

3 ‘‘(ii) uses woody biomass as the pri4 mary fuel.

5 ‘‘(B) INCLUSIONS.—The term ‘community

6 wood energy system’ includes single facility cen7 tral heating, district heating, combined heat and

8 energy systems, and other related biomass energy

9 systems.

10 ‘‘(b) GRANT PROGRAM.—

11 ‘‘(1) IN GENERAL.—The Secretary, acting

12 through the Chief of the Forest Service, shall establish

13 a program to be known as the ‘Community Wood En14 ergy Program’ to provide—

15 ‘‘(A) grants of up to $50,000 to State and

16 local governments (or designees)—

17 ‘‘(i) to conduct feasibility studies re18 lated to community wood energy plans; and

19 ‘‘(ii) to develop community wood en20 ergy plans; and

21 ‘‘(B) competitive grants to State and local

22 governments—

23 ‘‘(i) to acquire or upgrade community

24 wood energy systems for public buildings;

25 and
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1 ‘‘(ii) to implement a community wood

2 energy plan.

3 ‘‘(2) CONSIDERATIONS.—In selecting applicants

4 for grants under paragraph (1)(B), the Secretary

5 shall consider—

6 ‘‘(A) the energy efficiency of the proposed

7 system; and

8 ‘‘(B) other conservation and environmental

9 criteria that the Secretary considers appropriate.

10 ‘‘(c) COMMUNITY WOOD ENERGY PLAN.—

11 ‘‘(1) IN GENERAL.—A State or local government

12 that receives a grant under subsection (b)(1)(A), shall

13 use the grant, and the technical assistance of the State

14 forester, to create a community wood energy plan to

15 meet the wood supply needs of the community wood

16 energy system, in a sustainable manner, that the

17 State or local government proposes to purchase under

18 this section.

19 ‘‘(2) USEOF PLAN.—A State or local government

20 applying to receive a competitive grant described in

21 subsection (b)(1)(B) shall submit to the Secretary as

22 part of the grant application the applicable commu23 nity wood energy plan described in paragraph (1).
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1 ‘‘(3) REQUIREMENT.—To be included in a com2 munity wood energy plan, property shall be subject to

3 a forest management plan.

4 ‘‘(d) USEIN PUBLIC BUILDINGS.—A State or local

5 government that receives a grant under subsection (b)(1)(B)

6 shall use a community wood energy system acquired, in

7 whole or in part, with the use of the grant funds for pri8 mary use in a public facility owned by the State or local

9 government.

10 ‘‘(e) LIMITATION.—A community wood energy system

11 acquired with grant funds provided under subsection

12 (b)(1)(B) shall not exceed an output of—

13 ‘‘(1) 50,000,000 Btu per hour for heating; and

14 ‘‘(2) 2 megawatts for electric power production.

15 ‘‘(f) MATCHING FUNDS.—A State or local government

16 that receives a grant under subsection (b) shall contribute

17 an amount of non-Federal funds towards the feasibility

18 study, development of the community wood energy plan, or

19 acquisition of the community wood energy systems that is

20 at least equal to the amount of grant funds received by the

21 State or local government under that subsection.

22 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is

23 authorized to be appropriated to carry out this section

24 $5,000,000 for each of fiscal years 2008 through 2012.
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1 ‘‘SEC. 9015. RURAL ENERGY SYSTEMS RENEWAL.

2 ‘‘(a) PURPOSE.—The purpose of this section is to es3 tablish a Federal program—

4 ‘‘(1) to encourage communities in rural areas of

5 the United States to establish energy systems renewal

6 strategies for their communities;

7 ‘‘(2) to provide the information, analysis assist8 ance, and guidance that the communities need; and

9 ‘‘(3) to provide financial resources to partially

10 fund the costs of carrying out community energy sys11 tems renewal projects.

12 ‘‘(b) PROGRAM AUTHORITY.—The Secretary shall es13 tablish and carry out a program of competitive grants to

14 support communities in rural areas in carrying out rural

15 energy systems renewal projects.

16 ‘‘(c) USEOF GRANTS.—A community may use a grant

17 provided under this section to carry out a project—

18 ‘‘(1) to conduct an energy assessment that as19 sesses total energy usage by all members and activities

20 of the community, including an assessment of—

21 ‘‘(A) energy used in community facilities,

22 including energy for heating, cooling, lighting,

23 and all other building and facility uses;

24 ‘‘(B) energy used in transportation by com25 munity members;
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1 ‘‘(C) current sources and types of energy

2 used;

3 ‘‘(D) energy embedded in other materials

4 and products;

5 ‘‘(E) the major impacts of the energy usage

6 (including the impact on the quantity of oil im7 ported, total costs, the environment, and green8 house gas emissions); and

9 ‘‘(F) such other activities as are determined

10 appropriate by the community, consistent with

11 the purposes described in subsection (a);

12 ‘‘(2) to formulate and analyze ideas for reducing

13 conventional energy usage and greenhouse gas emis14 sions by the community, including reduction of en15 ergy usage through—

16 ‘‘(A) housing insulation, automatic controls

17 on lighting and electronics, zone energy usage,

18 and home energy conservation practices;

19 ‘‘(B) transportation alternatives, vehicle op20 tions, transit options, transportation conserva21 tion, and walk- and bike-to-school programs;

22 ‘‘(C) community configuration alternatives

23 to provide pedestrian access to regular services;

24 and
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1 ‘‘(D) community options for alternative en2 ergy systems (including alternative fuels, photo3 voltaic electricity, wind energy, geothermal heat

4 pump systems, and combined heat and power);

5 ‘‘(3) to formulate and implement community

6 strategies for reducing conventional energy usage and

7 greenhouse gas emissions by the community;

8 ‘‘(4) to conduct assessments and to track and

9 record the results of energy system changes; and

10 ‘‘(5) to train rural community energy profes11 sionals to provide expert support to community en12 ergy systems renewal projects.

13 ‘‘(d) FEDERAL SHARE.—The Federal cost of carrying

14 out a project under this section shall be 50 percent of the

15 total cost of the project.

16 ‘‘(e) ADMINISTRATION.—The Secretary shall—

17 ‘‘(1) issue, an annual basis, requests for pro18 posals from communities in rural areas for energy

19 systems renewal projects; and

20 ‘‘(2) in consultation with the Secretary of En21 ergy and the Secretary of Transportation, as appro22 priate, establish criteria for program participation

23 and evaluation of projects carried out under this sec24 tion, including criteria based on—
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1 ‘‘(A) the quality of the renewal projects pro2 posed;

3 ‘‘(B) the probability of success of the com4 munity in meeting the energy systems renewal

5 goals of the community;

6 ‘‘(C) the projected energy savings (including

7 oil savings) resulting from the proposed projects;

8 and

9 ‘‘(D) projected greenhouse gas emission re10 ductions resulting from the proposed projects.

11 ‘‘(f) TECHNICAL ASSISTANCE.—The Secretary, in con12 sultation with the Secretary of Energy and the Secretary

13 of Transportation, shall—

14 ‘‘(1) develop, and provide through the National

15 Institute of Food and Agriculture or State Energy Of16 fices, information and tools that communities in

17 rural areas can use—

18 ‘‘(A) to assess the current energy systems of

19 the communities, including sources, uses, and

20 impacts;

21 ‘‘(B) to identify and evaluate options for

22 changes;

23 ‘‘(C) to develop strategies and plans for

24 changes; and
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1 ‘‘(D) to implement changes and assess the

2 impact of the changes; and

3 ‘‘(2) provide technical assistance and support to

4 communities in rural areas that receive grants under

5 this section to assist the communities in carrying out

6 projects under this section.

7 ‘‘(g) REPORT.—Not later than December 31, 2011, and

8 biennially thereafter, the Secretary shall submit to the Com9 mittee on Agriculture of the House of Representatives and

10 the Committee on Agriculture, Nutrition, and Forestry, the

11 Committee on Commerce, Science, and Transportation, and

12 the Committee on Energy and Natural Resources of the Sen13 ate a report that documents the best practices and ap14 proaches used by communities in rural areas that receive

15 funds under this section.

16 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is

17 authorized to be appropriated to the Secretary to make

18 grants under this section $5,000,000 for each of fiscal years

19 2008 through 2012.

20 ‘‘SEC. 9016. VOLUNTARY RENEWABLE BIOMASS CERTIFI21 CATION PROGRAM.

22 ‘‘(a) ESTABLISHMENT.—The Secretary, in consulta23 tion with Administrator, shall establish a voluntary pro24 gram to certify renewable biomass that meets sustainable

25 growing standards designed—
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1 ‘‘(1) to reduce greenhouse gases and improve soil

2 carbon content;

3 ‘‘(2) to protect wildlife habitat, and

4 ‘‘(3) to protect air, soil, and water quality.

5 ‘‘(b) VOLUNTARY CERTIFICATION REQUIREMENTS.—

6 To qualify for certification under the program established

7 under subsection (a), a biomass crop shall be inspected and

8 certified as meeting the standards adopted under subsection

9 (c) by an inspector designated under subsection (d).

10 ‘‘(c) PRODUCTION STANDARDS.—

11 ‘‘(1) IN GENERAL.—The Secretary shall adopt

12 standards for the certification of renewable biomass

13 under subsection (b) that will apply to those pro14 ducers who elect to participate in the voluntary cer15 tification program.

16 ‘‘(2) REQUIREMENT.—The standards under

17 paragraph (1) shall provide measurement of a numer18 ical reduction in greenhouse gases, improvement to

19 soil carbon content, and reduction in soil and water

20 pollutants, based on the recommendations of an advi21 sory committee jointly established by the Secretary

22 and the Administrator.

23 ‘‘(d) INSPECTORS.—The Secretary shall designate in24 spectors that the Secretary determines are qualified to carry
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1 out inspections and certifications under subsection (b) in

2 order to certify renewable biomass under this section.

3 ‘‘(e) DESIGNATION.—A product produced from renew4 able biomass that is certified under this section may be des5 ignated as having been produced from certified renewable

6 biomass if—

7 ‘‘(1) the producer of the product verifies that the

8 product was produced from renewable biomass; and

9 ‘‘(2) the verification includes a copy of the cer10 tification obtained in accordance with subsection (b).

11 ‘‘SEC. 9017. ADMINISTRATION.

12 ‘‘The Secretary shall designate an entity within the

13 Department of Agriculture to—

14 ‘‘(1) provide oversight and coordination of all

15 activities relating to renewable energy and biobased

16 product development within the Department;

17 ‘‘(2) act as a liaison between the Department

18 and other Federal, State, and local agencies to ensure

19 coordination among activities relating to renewable

20 energy and biobased product development;

21 ‘‘(3) assist agriculture researchers by evaluating

22 the market potential of new biobased products in the

23 initial phase of development;

24 ‘‘(4) collect and disseminate information relating

25 to renewable energy and biobased product develop-
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1 ment programs, including research, within the Fed2 eral Government; and

3 ‘‘(5) establish and maintain a public database of

4 best practices to facilitate information sharing relat5 ing to—

6 ‘‘(A) renewable energy and biobased product

7 development from programs under this title and

8 other programs; and

9 ‘‘(B) best practices for producing, collecting,

10 harvesting, storing, and transporting crops of re11 newable biomass, as described under section

12 9004(d)(3)(B) of the Farm Security and Rural

13 Investment Act of 2002.

14 ‘‘SEC. 9018. BIOFUELS INFRASTRUCTURE STUDY.

15 ‘‘(a) IN GENERAL.—The Secretary, in collaboration

16 with the Secretary of Energy, the Administrator, and the

17 Secretary of Transportation, shall—

18 ‘‘(1) conduct an assessment of the infrastructure

19 needs for expanding the domestic production, trans20 port, and marketing of biofuels and bioenergy;

21 ‘‘(2) formulate recommendations for infrastruc22 ture development needs and approaches; and

23 ‘‘(3) submit a report describing the assessment

24 and recommendations to—
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1 ‘‘(A) the Committee on Agriculture, Nutri2 tion, and Forestry of the Senate;

3 ‘‘(B) the Committee on Commerce, Science,

4 and Transportation of the Senate;

5 ‘‘(C) the Committee on Energy and Natural

6 Resources of the Senate; and

7 ‘‘(D) the Committee on Environment and

8 Public Works of the Senate.

9 ‘‘(b) INFRASTRUCTURE AREAS.—In carrying out sub10 section (a), the Secretary shall consider—

11 ‘‘(1) biofuel transport and delivery infrastructure

12 issues, including shipment by rail, truck, pipeline, or

13 barge;

14 ‘‘(2) biofuel storage needs;

15 ‘‘(3) biomass feedstock delivery needs, including

16 adequacy of rural roads;

17 ‘‘(4) biomass feedstock storage needs;

18 ‘‘(5) water resource needs, including water re19 quirements for biorefineries;

20 ‘‘(6) education and outreach for agricultural

21 producers transitioning to cellulosic feedstocks; and

22 ‘‘(7) such other infrastructure issues as the Sec23 retary may determine.

24 ‘‘(c) CONSIDERATIONS.—In carrying out subsection

25 (a), the Secretary shall consider—
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1 ‘‘(1) estimated future biofuels production levels

2 of—

3 ‘‘(A) 20,000,000,000 gallons per year to

4 40,000,000,000 gallons per year by 2020; and

5 ‘‘(B) 50,000,000,000 gallons per year to

6 75,000,000,000 gallons per year by 2030;

7 ‘‘(2) the feasibility of shipping biofuels through

8 existing pipelines;

9 ‘‘(3) the development of new biofuels pipelines,

10 including siting, financing, timing, and other eco11 nomic issues;

12 ‘‘(4) the environmental implications of alter13 native approaches to infrastructure development;

14 ‘‘(5) the resource use and conservation character15 istics of alternative approaches to infrastructure de16 velopment;

17 ‘‘(6) the impact on the development of renewable

18 energy when public and private utilities do not pay

19 competitive rates for wind, solar, and biogas energy

20 from agricultural sources; and

21 ‘‘(7) the environmental benefits of planting pe22 rennial grasses for the production of cellulosic eth23 anol.

24 ‘‘(d) IMPLEMENTATION.—In carrying out this section,

25 the Secretary—
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1 ‘‘(1) shall consult with individuals and entities

2 with interest or expertise in the areas described in

3 subsections (b) and (c); and

4 ‘‘(2) may issue a solicitation for a competition

5 to select a contractor to support the Secretary.

6 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to carry out this section

8 $1,000,000 for each of fiscal years 2008 and 2009.

9 ‘‘SEC. 9019. RURAL NITROGEN FERTILIZER STUDY.

10 ‘‘(a) PURPOSES.—The purposes of this section are—

11 ‘‘(1) to assess the feasibility of producing nitro12 gen fertilizer from renewable energy resources in rural

13 areas; and

14 ‘‘(2) to formulate recommendations for a pro15 gram to promote rural nitrogen fertilizer production

16 from renewable energy resources in the future.

17 ‘‘(b) STUDY.—The Secretary shall—

18 ‘‘(1) conduct a study to assess and summarize

19 the current state of knowledge regarding the potential

20 for the production of nitrogen fertilizer from renew21 able energy sources in rural areas;

22 ‘‘(2) identify the critical challenges to commer23 cialization of rural production of nitrogen fertilizer

24 from renewables; and
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1 ‘‘(3) not later than 270 days after the date of en2 actment of this section, submit to the Committee on

3 Agriculture of the House of Representatives and the

4 Committee on Agriculture, Nutrition, and Forestry

5 and the Committee on Commerce, Science, and Trans6 portation of the Senate a report that summarizes the

7 results of the activities described in paragraphs (1)

8 and (2).

9 ‘‘(c) NEEDS.—

10 ‘‘(1) IN GENERAL.—Based on the results of the

11 study described in subsection (b), the Secretary shall

12 identify the critical needs to commercializing the

13 rural production of nitrogen fertilizer from renew14 ables, including—

15 ‘‘(A) identifying alternative processes for re16 newables-to-nitrogen fertilizer production;

17 ‘‘(B) identifying efficiency improvements

18 that are necessary for each component of renew19 ables-to-nitrogen fertilizer production processes to

20 produce cost-competitive nitrogen fertilizer;

21 ‘‘(C) identifying research and technology

22 priorities for the most promising technologies;

23 ‘‘(D) identifying economic analyses needed

24 to better understand the commercial potential of

25 rural nitrogen production from renewables;
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1 ‘‘(E) identifying additional challenges im2 peding commercialization, including—

3 ‘‘(i) cost competition from nitrogen fer4 tilizer produced using natural gas and coal;

5 ‘‘(ii) modifications or expansion need6 ed to the currently-installed nitrogen fer7 tilizer (anhydrous ammonia) pipeline and

8 storage tank system to enable interconnec9 tion of on-farm or rural renewables-to-ni10 trogen fertilizer systems;

11 ‘‘(iii) impact on nitrogen fertilizer

12 (anhydrous ammonia) transportation infra13 structure, safety, and security;

14 ‘‘(iv) supply of competitively-priced re15 newable electricity; and

16 ‘‘(v) impacts on domestic water sup17 plies; and

18 ‘‘(F) determining greenhouse gas reduction

19 benefits of producing nitrogen fertilizer from re20 newable energy.

21 ‘‘(d) PROGRAM RECOMMENDATIONS.—As part of the

22 report described in subsection (b)(3) and based on the needs

23 identified in subsection (c), the Secretary shall provide rec24 ommendations on—
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1 ‘‘(1) the establishment of a research, development,

2 and demonstration program to support commer3 cialization of rural nitrogen production using renew4 ables;

5 ‘‘(2) the appropriate contents of the program;

6 ‘‘(3) the appropriate approach to implementing

7 the program, including participants and funding

8 plans; and

9 ‘‘(4) legislation to support commercialization of

10 rural nitrogen production using renewables.

11 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is

12 authorized to be appropriated to carry out this section

13 $1,000,000 for fiscal year 2008.

14 ‘‘SEC. 9020. STUDY OF LIFE-CYCLE ANALYSIS OF BIOFUELS.

15 ‘‘(a) IN GENERAL.—The Secretary, in consultation

16 with the Secretary of Energy and the Administrator, shall

17 conduct a study of—

18 ‘‘(1) published methods for evaluating the

19 lifecycle greenhouse gas emissions of conventional

20 fuels and biofuels; and

21 ‘‘(2) methods for performing simplified, stream22 lined lifecycle analyses of the greenhouse gas emis23 sions of conventional fuels and biofuels.

24 ‘‘(b) REPORT.—Not later than 1 year after the date

25 of enactment of this section, the Secretary shall submit to
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1 the Committee on Agriculture of the House of Representa2 tives and the Committee on Agriculture, Nutrition, and

3 Forestry of the Senate a report that describes the results

4 of the study conducted under subsection (a), including rec5 ommendations for a method for performing a simplified,

6 streamlined lifecycle analysis of the greenhouse gas emis7 sions of biofuels and fossil fuels that includes—

8 ‘‘(1) greenhouse gas emissions relating to the

9 production, extraction, transportation, storage, and

10 waste disposal of the fuels and the feedstocks of the

11 fuels, including the greenhouse gases associated with

12 electrical and thermal energy inputs;

13 ‘‘(2) greenhouse gas emissions relating to the dis14 tribution, marketing, and use of the fuels; and

15 ‘‘(3) to the maximum extent practicable, direct

16 and indirect greenhouse gas emissions from changes

17 in land use and land cover that occur domestically or

18 internationally as a result of biofuel feedstock produc19 tion.

20 ‘‘(c) UPDATE.—Not later than 2 years after the date

21 on which the Secretary submits the report under subsection

22 (b), the Secretary shall submit to the Committee on Agri23 culture of the House of Representatives and the Committee

24 on Agriculture, Nutrition, and Forestry of the Senate an

25 update containing recommendations for an improved meth-
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1 od for conducting lifecycle analysis of the greenhouse gas

2 emissions of biofuels and fossil fuels that takes into account

3 advances in the understanding of the emissions.

4 ‘‘SEC. 9021. E–85 FUEL PROGRAM.

5 ‘‘(a) DEFINITIONS.—In this section:

6 ‘‘(1) E–85 FUEL.—The term ‘E–85 fuel’ means

7 a blend of gasoline at least 85 percent (or any other

8 percentage, but not less than 70 percent, as deter9 mined by the Secretary, by rule, to provide for re10 quirements relating to cold start, safety, or vehicle

11 functions) of the content of which is derived from eth12 anol.

13 ‘‘(2) ELIGIBLEFACILITY.—The term ‘eligible fa14 cility’ means an ethanol production facility, the ma15 jority ownership of which is comprised of agricultural

16 producers.

17 ‘‘(b) PROGRAM.—The Secretary shall make grants

18 under this section to eligible facilities—

19 ‘‘(1) to install E–85 fuel infrastructure, includ20 ing infrastructure necessary—

21 ‘‘(A) for the direct retail sale of E–85 fuel,

22 including E–85 fuel pumps and storage tanks;

23 and

24 ‘‘(B) to directly market E–85 fuel to gas re25 tailers, including in-line blending equipment,
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1 pumps, storage tanks, and load-out equipment;

2 and

3 ‘‘(2) to provide subgrants to direct retailers of

4 E–85 fuel that are located in a rural area (as defined

5 in section 343(a) of the Consolidated Farm and Rural

6 Development Act (7 U.S.C. 1991(a))) for the purpose

7 of installing E–85 fuel infrastructure for the direct

8 retail sale of E–85 fuel, including E–85 fuel pumps

9 and storage tanks.

10 ‘‘(c) COST SHARING.—

11 ‘‘(1) GRANTS.—The amount of a grant under

12 this section shall be equal to 20 percent of the total

13 costs of the installation of the E–85 fuel infrastruc14 ture, as determined by the Secretary.

15 ‘‘(2) RELATIONSHIP TO OTHER FEDERAL FUND16 ING.—The amount of a grant that an eligible facility

17 receives under this section shall be reduced by the

18 amount of other Federal funding that the eligible fa19 cility receives for the same purpose, as determined by

20 the Secretary.

21 ‘‘(3) LIMITATION.—Not more than 70 percent of

22 the total costs of E–85 fuel infrastructure provided as23 sistance under this section shall be provided by the

24 Federal Government and State and local govern25 ments.
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1 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—Subject

2 to the availability of appropriations, there is authorized to

3 be appropriated to carry out this section $20,000,000 for

4 the period of fiscal years 2008 through 2012, to remain

5 available until expended.

6 ‘‘SEC. 9022. RESEARCH AND DEVELOPMENT OF RENEWABLE

7 ENERGY.

8 ‘‘(a) IN GENERAL.—The Secretary, in conjunction

9 with the Colorado Renewable Energy Collaboratory, shall

10 carry out a research and development program relating to

11 renewable energy—

12 ‘‘(1) to conduct research on and develop high13 quality energy crops that—

14 ‘‘(A) have high energy production values;

15 ‘‘(B) are cost efficient for producers and re16 finers;

17 ‘‘(C) are well suited to high yields with

18 minimal inputs in arid and semiarid regions;

19 and

20 ‘‘(D) are regionally appropriate;

21 ‘‘(2) to conduct research on and develop bio22 refining and biofuels through multidisciplinary re23 search, including research relating to—

24 ‘‘(A) biochemical engineering;

25 ‘‘(B) process engineering;
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1 ‘‘(C) thermochemical engineering;

2 ‘‘(D) product engineering; and

3 ‘‘(E) systems engineering;

4 ‘‘(3) to develop cost-effective methods for the har5 vesting, handling, transport, and storage of cellulosic

6 biomass feedstocks;

7 ‘‘(4) to conduct research on and develop fer8 tilizers from biobased sources other than hydrocarbon

9 fuels;

10 ‘‘(5) to develop energy- and water-efficient irri11 gation systems;

12 ‘‘(6) to research and develop water-efficient

13 biofuel production technologies;

14 ‘‘(7) to research and develop additional biobased

15 products;

16 ‘‘(8) in cooperation with the Department of En17 ergy and the Department of Defense, to develop stor18 age and conversion technologies for wind- and solar19 generated power for small-scale and utility-scale gen20 eration facilities; and

21 ‘‘(9) in cooperation with the Department of En22 ergy, to research fuel cell technologies for use in farm,

23 ranch, and rural applications.

24 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There is authorized to be ap2 propriated to carry out this section $5,000,000 for

3 each of fiscal years 2008 through 2012, to remain

4 available until expended.

5 ‘‘(2) ADDITIONAL FUNDS.—In addition to funds

6 made available under paragraph (1), there are au7 thorized to be appropriated—

8 ‘‘(A) $110,000,000 to the Under Secretary

9 for Research, Education, and Economics, acting

10 through the Agricultural Research Service, for

11 cellulosic biofuel research for each of fiscal years

12 2008 through 2012; and

13 ‘‘(B) $110,000,000 to the Secretary and the

14 Secretary of Energy for the development of

15 smaller-scale biorefineries and biofuel plants for

16 each of fiscal years 2008 through 2012.

17 ‘‘SEC. 9023. NORTHEAST DAIRY NUTRIENT MANAGEMENT

18 AND ENERGY DEVELOPMENT PROGRAM.

19 ‘‘(a) DEFINITIONS.—In this section:

20 ‘‘(1) CONSORTIUM.—The term ‘consortium’

21 means a collaboration of land-grant colleges or uni22 versities in the Northeast region that have programs

23 devoted to dairy manure nutrient management and

24 energy conversion from dairy manure.
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1 ‘‘(2) LAND-GRANT COLLEGES AND UNIVER2 SITIES.—The term ‘land-grant colleges and univer3 sities’ has the meaning given the term in section 1404

4 of the National Agricultural Research, Extension, and

5 Teaching Policy Act of 1977 (7 U.S.C. 3103)).

6 ‘‘(3) NORTHEAST REGION.—The term ‘Northeast

7 region’ means the States of Connecticut, Delaware,

8 Massachusetts, Maryland, Maine, New Hampshire,

9 New Jersey, New York, Pennsylvania, Rhode Island,

10 Vermont, and West Virginia.

11 ‘‘(4) PROGRAM.—The term ‘program’ means the

12 dairy nutrient management and energy development

13 program established under subsection (b).

14 ‘‘(b) ESTABLISHMENT.—The Secretary shall establish

15 a dairy nutrient management and energy development pro16 gram under which the Secretary shall provide funds to the

17 consortium to carry out multistate, integrated research, ex18 tension, and demonstration projects for nutrient manage19 ment and energy development in the Northeast Region.

20 ‘‘(c) STEERING COMMITTEE.—

21 ‘‘(1) IN GENERAL.—The consortium shall estab22 lish a steering committee to administer the program.

23 ‘‘(2) CHAIRPERSON.—For each calendar year, or

24 for such other period as the consortium determines to

25 be appropriate, the consortium shall select a chair-
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1 person of the steering committee in a manner that en2 sures that each member of the consortium is rep3 resented by a chairperson on a rotating basis.

4 ‘‘(3) BOARD.—

5 ‘‘(A) IN GENERAL.—The steering committee

6 shall establish a board of directors to assist in

7 the administration of the program.

8 ‘‘(B) COMPOSITION.—The board shall con9 sist of representatives of—

10 ‘‘(i) dairy cooperatives and other pro11 ducer groups;

12 ‘‘(ii) State departments of agriculture;

13 ‘‘(iii) conservation organizations; and

14 ‘‘(iv) other appropriate Federal and

15 State agencies.

16 ‘‘(d) USEOF FUNDS.—

17 ‘‘(1) ADMINISTRATIVECOSTS.—The consortium

18 may use not more than 10 percent of the total amount

19 of funds provided to the consortium under this section

20 to pay the administrative costs of the program.

21 ‘‘(2) GRANT PROGRAM.—

22 ‘‘(A) IN GENERAL.—The consortium shall

23 use the amounts provided under this section to

24 provide grants to applicants, including dairy co25 operatives, producers and producer groups, State
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1 departments of agriculture and other appro2 priate State agencies, and institutions of higher

3 education, to carry out integrated research, ex4 tension, and demonstration projects in the

5 Northeast region to address manure nutrient

6 management and energy development.

7 ‘‘(B) APPLICATIONS.—The steering com8 mittee established under subsection (c)(1), in co9 ordination with the board established by the

10 steering committee, shall annually publish 1 or

11 more requests to receive applications for grants

12 under this paragraph.

13 ‘‘(C) SELECTION.—

14 ‘‘(i) IN GENERAL.—The board of the

15 steering committee shall select applications

16 submitted under subparagraph (B) for

17 grants under this paragraph—

18 ‘‘(I) on a competitive basis;

19 ‘‘(II) in accordance with such pri20 ority technical areas and distribution

21 requirements as the steering committee

22 may establish; and

23 ‘‘(III) in a manner that ensures,

24 to the maximum extent practicable,

25 that an equal quantity of resources is
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1 provided to each member of the consor2 tium.

3 ‘‘(ii) REVIEW.—Before selecting any

4 application under clause (i), the board shall

5 ensure that the program proposed in the ap6 plication is subject to a merit review by an

7 independent panel of scientific experts with

8 experience relating to the program.

9 ‘‘(iii) PRIORITY.—In selecting applica10 tions under clause (i), the board shall give

11 priority to applications for programs

12 that—

13 ‘‘(I) include multiorganizational

14 partnerships, especially partnerships

15 that include producers; and

16 ‘‘(II) attract the most current and

17 applicable science for nutrient manage18 ment and energy development that can

19 be applied in the Northeast region.

20 ‘‘(D) COST SHARING.—An applicant that

21 receives a grant under this paragraph shall pro22 vide not less than 20 percent of the cost of the

23 project carried out by the applicant.
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1 ‘‘(e) AVAILABILITY OF RESULTS.—The consortium

2 shall ensure that the results of each project carried out pur3 suant to the program are made publicly available.

4 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

5 authorized to be appropriated such sums as are necessary

6 to carry out this section.

7 ‘‘SEC. 9024. REPORT ON THE GROWTH POTENTIAL FOR CEL8 LULOSIC MATERIAL.

9 ‘‘Not later than 18 months after the date of enactment

10 of this Act, the Secretary shall submit to the Committee on

11 Agriculture of the House of Representatives and the Com12 mittee on Agriculture, Nutrition, and Forestry of the Senate

13 a comprehensive report that, on a State-by-State basis—

14 ‘‘(1) identifies the range of cellulosic feedstock

15 materials that can be grown and are viable can16 didates for renewable fuel production;

17 ‘‘(2) estimates the acreage available for growing

18 the cellulosic feedstock materials identified under

19 paragraph (1);

20 ‘‘(3) estimates the quantity of available energy

21 per acre for each cellulosic feedstock material identi22 fied under paragraph (1);

23 ‘‘(4) calculates the development potential for

24 growing cellulosic feedstock materials, based on—
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1 ‘‘(A) the range of cellulosic materials avail2 able for growth;

3 ‘‘(B) soil quality;

4 ‘‘(C) climate variables;

5 ‘‘(D) the quality and availability of water;

6 ‘‘(E) agriculture systems that are in place

7 as of the date of enactment of this Act;

8 ‘‘(F) available acreage; and

9 ‘‘(G) other relevant factors identified by the

10 Secretary; and

11 ‘‘(5) rates the development potential for growing

12 cellulosic feedstock material, with the ratings dis13 played on maps of the United States that indicate the

14 development potential of each State, as calculated by

15 the Secretary under paragraph (4).

16 ‘‘SEC. 9025. FUTURE FARMSTEADS PROGRAM.

17 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

18 a program to equip, in each of 5 regions of the United

19 States chosen to represent different farming practices, a

20 farm house and its surrounding fields, facilities, and for21 ested areas with technologies to—

22 ‘‘(1) improve farm energy production and energy

23 use efficiencies;

24 ‘‘(2) provide working examples to farmers; and
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1 ‘‘(3) serve as an education, demonstration, and

2 research facility that will teach graduate students

3 whose focus of research is related to either renewable

4 energy or energy conservation technologies.

5 ‘‘(b) GOALS.—The goals of the program established

6 under subsection (a) shall be to—

7 ‘‘(1) advance farm energy use efficiencies and the

8 on-farm production of renewable energies, along with

9 advanced communication and control technologies

10 with the latest in energy capture and conversion tech11 niques, thereby enhancing rural energy independence

12 and creating new revenues for rural economies;

13 ‘‘(2) accelerate private sector and university re14 search into the efficient on-farm production of renew15 able fuels and help educate the farming industry, stu16 dents, and the general public; and

17 ‘‘(3) accelerate energy independence, including

18 the production and the conservation of renewable en19 ergies on farms.

20 ‘‘(c) COLLABORATION PARTNERS.—The program

21 under this section shall be carried out in partnership with

22 regional land grant institutions, agricultural commodity

23 commissions, biofuels companies, sensor and controls com24 panies, and internet technology companies.
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1 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated such sums as are nec3 essary to carry out this section.’’.

4 SEC. 9002. SENSE OF THE SENATE CONCERNING HIGHER

5 LEVELS OF ETHANOL BLENDED GASOLINE.

6 (a) FINDINGS.—The Senate finds that, as of the date

7 of enactment of this Act—

8 (1) annual ethanol production capacity totals

9 6,800,000,000 gallons;

10 (2) current and planned construction of ethanol

11 refineries will likely increase annual ethanol produc12 tion capacity to 12,000,000,000 to 13,000,000,000

13 gallons by December 31, 2009;

14 (3) under existing regulations, only gasoline

15 blended with up to 10 percent ethanol (commonly

16 known as ‘‘E–10’’) may be consumed by nonflexible

17 fuel vehicles;

18 (4) the total market demand for E–10—

19 (A) is limited to 10 percent of domestic

20 motor fuel consumption; and

21 (B) is further constrained by State-admin22 istered reformulated gasoline regulations and re23 gional infrastructure constraints;

24 (5) beyond the market demand for E–10, insuffi25 cient E–85 infrastructure exists to absorb the in-
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1 creased ethanol production beyond 12,000,000,000 to

2 13,000,000,000 gallons in the short term;

3 (6) the approval of intermediate blends of eth4 anol-blended gasoline, such as E–13, E–15, E–20,

5 and higher blends, is critical to the uninterrupted

6 growth of the United States biofuels industry; and

7 (7) maintaining the growth of the United States

8 biofuels industry is a matter of national security and

9 sustainable economic growth.

10 (b) SENSE OF THE SENATE.—It is the sense of the Sen11 ate that the Secretary should—

12 (1) collaborate with the Secretary of Energy, the

13 Secretary of Transportation, and the Administrator

14 of the Environmental Protection Agency in con15 ducting a study of the economic and environmental

16 effects of intermediate blends of ethanol in United

17 States fuel supply;

18 (2) ensure that the approval of intermediate

19 blends of ethanol occurs after the appropriate tests

20 have successfully concluded proving the drivability,

21 compatibility, emissions, durability, and health effects

22 of higher blends of ethanol-blended gasoline; and

23 (3) ensure that the approval of intermediate

24 blends of ethanol-blended gasoline occurs by not later

25 than 1 year after the date of enactment of this Act.
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1 SEC. 9003. CONFORMING AMENDMENTS.

2 (a) BIOMASS RESEARCH AND DEVELOPMENT ACT OF

3 2000.—Title III of the Agricultural Risk Protection Act of

4 2000 (7 U.S.C. 7624 note; Public Law 106–224) is repealed.

5 (b) MARKETING PROGRAM FOR BIOBASED PROD6 UCTS.—

7 (1) IMPLEMENTATION.—

8 (A) IN GENERAL.—The Secretary shall con9 tinue to carry out the designation and labeling

10 of biobased products in accordance with section

11 9002 of the Farm Security and Rural Invest12 ment Act of 2002 (7 U.S.C. 8102) as in effect on

13 the day before the date of enactment of this Act

14 until the date on which the Secretary is able to

15 begin carrying out section 9002(a) of that Act

16 (as amended by section 9001), which shall begin

17 not later than 90 days after the date of enact18 ment of this Act.

19 (B) EXISTING LISTINGS.—Biobased prod20 ucts designated and labeled under section 9002 of

21 the Farm Security and Rural Investment Act of

22 2002 (7 U.S.C. 8102) as in effect on the day be23 fore the date of enactment of this Act shall con24 tinue to be considered designated and labeled

25 biobased products after the date of enactment of

26 this Act.
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1 (C) PROPOSED ITEM DESIGNATIONS.—Not2 withstanding any other provision of this Act or

3 an amendment made by this Act, the Secretary

4 shall have the authority to finalize the listings of

5 any item proposed (prior to the date of enact6 ment of this Act) to be designated in accordance

7 with section 9002 of the Farm Security and

8 Rural Investment Act of 2002 (7 U.S.C. 8102) as

9 in effect on the day before the date of enactment

10 of this Act.

11 (2) BIOENERGY EDUCATION AND AWARENESS

12 CAMPAIGN.—Section 947 of the Energy Policy Act of

13 2005 (42 U.S.C. 16256) is repealed.

14 SEC. 9004. SENSE OF CONGRESS REGARDING COOPERATIVE

15 REGIONAL RESEARCH, EXTENSION, AND EDU16 CATION PROGRAMS ON BIOFUELS AND BIO17 PRODUCTS.

18 It is the sense of Congress that the Secretary shall con19 tinue to allow and support efforts of regional consortiums

20 of public institutions, including land grant universities and

21 State departments of agriculture, to jointly support the bio22 economy through research, extension, and education activi23 ties, including—

24 (1) expanding the use of biomass;
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1 (2) improving the efficiency and sustainability

2 of bioenergy;

3 (3) supporting local ownership in the bio4 economy;

5 (4) communicating about the bioeconomy;

6 (5) facilitating information sharing; and

7 (6) assisting to coordinate regional approaches.

8 TITLE X—LIVESTOCK MAR9 KETING, REGULATORY, AND

10 RELATED PROGRAMS

11 Subtitle A—Marketing

12 SEC. 10001. LIVESTOCK MANDATORY REPORTING.

13 (a) MANDATORY REPORTING FOR SWINE.—Section

14 232(c)(3) of the Agricultural Marketing Act of 1946 (7

15 U.S.C. 1635j(c)(3)) is amended—

16 (1) in subparagraph (A), by striking ‘‘2:00 p.m.’’

17 and inserting ‘‘3:00 p.m.’’; and

18 (2) in subparagraph (B), by striking ‘‘3:00

19 p.m.’’ and inserting ‘‘4:00 p.m.’’.

20 (b) MANDATORY PACKER REPORTING OF PORK PROD21 UCTS SALES.—

22 (1) IN GENERAL.—Section 232 of the Agricul23 tural Marketing Act of 1946 (7 U.S.C. 1635j) is

24 amended by adding at the end the following:
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1 ‘‘(f) MANDATORY PACKER REPORTING OF PORK PROD2 UCTS SALES.—

3 ‘‘(1) IN GENERAL.—Beginning not earlier than

4 the date on which the report under section

5 10001(b)(2)(C) of the Food and Energy Security Act

6 of 2007 is submitted, the Secretary may require the

7 corporate officers or officially designated representa8 tive of each packer processing plant to report to the

9 Secretary at least twice each reporting day (not less

10 than once before, and once after, 12:00 noon Central

11 Time) information on total pork products sales, in12 cluding price and volume information as specified by

13 the Secretary.

14 ‘‘(2) PUBLICATION.—The Secretary shall make

15 available to the public any information required to be

16 reported under subparagraph (A) (including informa17 tion on pork cuts and retail-ready pork products) not

18 less than twice each reporting day.’’.

19 (2) STUDY AND REPORT.—

20 (A) STUDY.—The Secretary shall conduct a

21 study on the effects of requiring packer proc22 essing plants to report to the Secretary informa23 tion on total pork products sales (including price

24 and volume information), including—
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1 (i) the positive or negative economic ef2 fects on producers and consumers; and

3 (ii) the effects of a confidentiality re4 quirement on mandatory reporting.

5 (B) INFORMATION.—The Secretary may col6 lect such information as is necessary to enable

7 the Secretary to conduct the study required

8 under subparagraph (A).

9 (C) REPORT.—Not later than 180 days

10 after the date of enactment of this Act, the Sec11 retary shall submit to the Committee on Agri12 culture of the House of Representatives and the

13 Committee on Agriculture, Nutrition, and For14 estry of the Senate a report on the results of the

15 study conducted under subparagraph (A).

16 (c) PUBLICATION OF INFORMATION ON RETAIL PUR17 CHASE PRICES FOR REPRESENTATIVE MEAT PRODUCTS.—

18 Section 257(a) of the Agricultural Marketing Act of 1946

19 (7 U.S.C. 1636f(a)) is amended by inserting ‘‘and con20 tinuing not less than each month thereafter’’ after ‘‘this sub21 title’’.

22 SEC. 10002. GRADING AND INSPECTION.

23 (a) GRADING.—Section 203 of the Agricultural Mar24 keting Act of 1946 (7 U.S.C. 1622) is amended—
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1 (1) by redesignating subsection (n) as subsection

2 (o); and

3 (2) by inserting after subsection (m) the fol4 lowing:

5 ‘‘(n) GRADING PROGRAM.—To establish, within the

6 Agricultural Marketing Service, a voluntary grading pro7 gram for farm-raised animals described in section

8 10806(a)(1) of the Farm Security and Rural Investment

9 Act of 2002 (21 U.S.C. 321d(a)(1)).’’.

10 (b) AMENABLE SPECIES.—Section 1(w) of the Federal

11 Meat Inspection Act (21 U.S.C. 601(w)) is amended—

12 (1) in paragraph (1), by striking ‘‘and’’ at the

13 end;

14 (2) by redesignating paragraph (2) as para15 graph (3); and

16 (3) by inserting after paragraph (1) the fol17 lowing:

18 ‘‘(2) farm-raised animals described in section

19 10806(a)(1) of the Farm Security and Rural Invest20 ment Act of 2002 (21 U.S.C. 321d(a)(1)); and’’.

21 (c) EXISTING ACTIVITIES.—The Secretary shall ensure

22 that nothing in an amendment made by this section dupli23 cates, impedes, or undermines any of the food safety or

24 product grading activities conducted by the Department of

25 Commerce or the Food and Drug Administration, and shall
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1 consult with the Secretary of Commerce before imple2 menting any new food safety or grading activity authorized

3 under this section.

4 SEC. 10003. COUNTRY OF ORIGIN LABELING.

5 Subtitle D of the Agricultural Marketing Act of 1946

6 (7 U.S.C. 1638 et seq.) is amended—

7 (1) in section 281(2)(A)—

8 (A) in clause (v), by striking ‘‘and’’;

9 (B) in clause (vi), by striking the period at

10 the end and inserting ‘‘; and’’; and

11 (C) by adding at the end the following:

12 ‘‘(vii) meat produced from goats;

13 ‘‘(viii) chicken, in whole and in part;

14 and

15 ‘‘(ix) macadamia nuts.’’;

16 (2) in section 282—

17 (A) in subsection (a), by striking para18 graphs (2) and (3) and inserting the following:

19 ‘‘(2) DESIGNATION OF COUNTRY OF ORIGIN FOR

20 BEEF, LAMB, PORK, CHICKEN, AND GOAT MEAT.—

21 ‘‘(A) UNITED STATES COUNTRY OF ORI22 GIN.—A retailer of a covered commodity that is

23 beef, lamb, pork, chicken, or goat meat may des24 ignate the covered commodity as exclusively hav25 ing a United States country of origin only if the
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1 covered commodity is derived from an animal

2 that was—

3 ‘‘(i) exclusively born, raised, and

4 slaughtered in the United States;

5 ‘‘(ii) born and raised in Alaska or Ha6 waii and transported for a period of not

7 more than 60 days through Canada to the

8 United States and slaughtered in the

9 United States; or

10 ‘‘(iii) present in the United States on

11 or before January 1, 2008, and once present

12 in the United States, remained continuously

13 in the United States.

14 ‘‘(B) MULTIPLECOUNTRIES OF ORIGIN.—

15 ‘‘(i) IN GENERAL.—A retailer of a cov16 ered commodity that is beef, lamb, pork,

17 chicken, or goat meat that is derived from

18 an animal that is—

19 ‘‘(I) not exclusively born, raised,

20 and slaughtered in the United States,

21 ‘‘(II) born, raised, or slaughtered

22 in the United States, and

23 ‘‘(III) not imported into the

24 United States for immediate slaughter,
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1 may designate the country of origin of such

2 covered commodity as all of the countries in

3 which the animal may have been born,

4 raised, or slaughtered.

5 ‘‘(ii) RELATION TO GENERAL REQUIRE6 MENT.—Nothing in this subparagraph al7 ters the mandatory requirement to inform

8 consumers of the country of origin of cov9 ered commodities under paragraph (1).

10 ‘‘(C) IMPORTED FOR IMMEDIATE SLAUGH11 TER.—A retailer of a covered commodity that is

12 beef, lamb, pork, chicken, or goat meat that is de13 rived from an animal that is imported into the

14 United States for immediate slaughter shall des15 ignate the origin of such covered commodity as—

16 ‘‘(i) the country from which the animal

17 was imported; and

18 ‘‘(ii) the United States.

19 ‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A re20 tailer of a covered commodity that is beef, lamb,

21 pork, chicken, or goat meat that is derived from

22 an animal that is not born, raised, or slaugh23 tered in the United States shall designate a

24 country other than the United States as the

25 country of origin of such commodity.
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1 ‘‘(E) GROUND BEEF, PORK, LAMB, CHICKEN,

2 AND GOAT.—The notice of country of origin for

3 ground beef, ground pork, ground lamb, ground

4 chicken, or ground goat shall include—

5 ‘‘(i) a list of all countries of origin of

6 such ground beef, ground pork, ground

7 lamb, ground chicken, or ground goat; or

8 ‘‘(ii) a list of all reasonably possible

9 countries of origin of such ground beef,

10 ground pork, ground lamb, ground chicken,

11 or ground goat.

12 ‘‘(3) DESIGNATION OF COUNTRY OF ORIGIN FOR

13 FISH.—

14 ‘‘(A) IN GENERAL.—A retailer of a covered

15 commodity that is farm-raised fish or wild fish

16 may designate the covered commodity as having

17 a United States country of origin only if the cov18 ered commodity—

19 ‘‘(i) in the case of farm-raised fish, is

20 hatched, raised, harvested, and processed in

21 the United States; and

22 ‘‘(ii) in the case of wild fish, is—

23 ‘‘(I) harvested in the United

24 States, a territory of the United States,

25 or a State, or by a vessel that is docu-
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1 mented under chapter 121 of title 46,

2 United States Code, or registered in the

3 United States; and

4 ‘‘(II) processed in the United

5 States, a territory of the United States,

6 or a State, including the waters there7 of.

8 ‘‘(B) DESIGNATION OF WILD FISH AND

9 FARM-RAISED FISH.—The notice of country of

10 origin for wild fish and farm-raised fish shall

11 distinguish between wild fish and farm-raised

12 fish.

13 ‘‘(4) DESIGNATION OF COUNTRY OF ORIGIN FOR

14 PERISHABLE AGRICULTURAL COMMODITIES, PEANUTS,

15 AND MACADAMIA NUTS.—

16 ‘‘(A) IN GENERAL.—A retailer of a covered

17 commodity that is a perishable agricultural com18 modity, peanut, or macadamia nut may des19 ignate the covered commodity as having a

20 United States country of origin only if the cov21 ered commodity is exclusively produced in the

22 United States.

23 ‘‘(B) STATE, REGION, LOCALITY OF THE

24 UNITED STATES.—With respect to a covered com25 modity that is a perishable agricultural com-
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1 modity produced exclusively in the United

2 States, designation by a retailer of the State, re3 gion, or locality of the United States where such

4 commodity was produced shall be sufficient to

5 identify the United States as the country of ori6 gin.’’; and

7 (B) by striking subsection (d) and inserting

8 the following:

9 ‘‘(d) AUDIT VERIFICATION SYSTEM.—

10 ‘‘(1) IN GENERAL.—The Secretary may conduct

11 an audit of any person that prepares, stores, handles,

12 or distributes a covered commodity for retail sale to

13 verify compliance with this subtitle (including the

14 regulations promulgated under section 284(b)).

15 ‘‘(2) RECORD REQUIREMENTS.—

16 ‘‘(A) IN GENERAL.—A person subject to an

17 audit under paragraph (1) shall provide the Sec18 retary with verification of the country of origin

19 of covered commodities. Records maintained in

20 the course of the normal conduct of the business

21 of such person, including animal health papers,

22 import or customs documents, or producer affi23 davits, may serve as such verification.

24 ‘‘(B) PROHIBITION ON REQUIREMENT OF

25 ADDITIONAL RECORDS.—The Secretary may not
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1 require a person that prepares, stores, handles,

2 or distributes a covered commodity to maintain

3 a record of the country of origin of a covered

4 commodity other than those maintained in the

5 course of the normal conduct of the business of

6 such person.’’;

7 (3) in section 283—

8 (A) by striking subsections (a) and (c);

9 (B) by redesignating subsection (b) as sub10 section (a);

11 (C) in subsection (a) (as so redesignated),

12 by striking ‘‘retailer’’ and inserting ‘‘retailer or

13 person engaged in the business of supplying a

14 covered commodity to a retailer’’; and

15 (D) by adding at the end the following new

16 subsection:

17 ‘‘(b) FINES.—If, on completion of the 30-day period

18 described in subsection (a)(2), the Secretary determines that

19 the retailer or person engaged in the business of supplying

20 a covered commodity to a retailer has—

21 ‘‘(1) not made a good faith effort to comply with

22 section 282, and

23 ‘‘(2) continues to willfully violate section 282

24 with respect to the violation about which the retailer
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1 or person received notification under subsection

2 (a)(1),

3 after providing notice and an opportunity for a hearing

4 before the Secretary with respect to the violation, the Sec5 retary may fine the retailer or person in an amount of not

6 more than $1,000 for each violation.’’.

7 SEC. 10004. DISCLOSURE OF COUNTRY OF HARVEST FOR

8 GINSENG.

9 (a) IN GENERAL.—The Agricultural Marketing Act of

10 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the

11 end the following:

12 ‘‘Subtitle E—Ginseng

13 ‘‘SEC. 291. DISCLOSURE OF COUNTRY OF HARVEST.

14 ‘‘(a) DEFINITIONS.—In this section:

15 ‘‘(1) GINSENG.—The term ‘ginseng’ means a

16 plant classified within the genus Panax.

17 ‘‘(2) RAW AGRICULTURAL COMMODITY.—The

18 term ‘raw agricultural commodity’ has the meaning

19 given the term in section 201 of the Federal Food,

20 Drug, and Cosmetic Act (21 U.S.C. 321).

21 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

22 the Secretary of Agriculture.

23 ‘‘(b) DISCLOSURE.—

24 ‘‘(1) IN GENERAL.—A person that offers ginseng

25 for sale as a raw agricultural commodity or dehy-
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1 drated whole root shall disclose to a potential pur2 chaser the country of harvest of the ginseng.

3 ‘‘(2) IMPORTATION.—A person that imports gin4 seng as a raw agricultural commodity or dehydrated

5 whole root into the United States shall disclose at the

6 point of entry into the United States, in accordance

7 with section 304 of the Tariff Act of 1930 (19 U.S.C.

8 1304), the country in which the ginseng was har9 vested.

10 ‘‘(c) MANNER OF DISCLOSURE.—

11 ‘‘(1) IN GENERAL.—The disclosure required by

12 subsection (b) shall be provided to a potential pur13 chaser by means of a label, stamp, mark, placard, or

14 other easily legible and visible sign on the ginseng or

15 on the package, display, holding unit, or bin con16 taining the ginseng.

17 ‘‘(2) RETAILERS.—A retailer of ginseng as a raw

18 agricultural commodity shall—

19 ‘‘(A) retain the means of disclosure provided

20 under subsection (b); and

21 ‘‘(B) provide the received means of disclo22 sure to a consumer of ginseng.

23 ‘‘(3) REGULATIONS.—The Secretary shall by reg24 ulation prescribe with specificity the manner in

25 which disclosure shall be made in a transaction at the
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1 wholesale or retail level (including a transaction by

2 mail, telephone, internet, or in retail stores).

3 ‘‘(d) FINES.—The Secretary may, after providing no4 tice and an opportunity for a hearing before the Secretary,

5 fine a person subject to subsection (b), or a person sup6 plying ginseng to such a person, in an amount of not more

7 than $1,000 for each violation if the Secretary determines

8 that the person—

9 ‘‘(1) has not made a good faith effort to comply

10 with subsection (b); and

11 ‘‘(2) continues to willfully violate subsection (b).

12 ‘‘(e) INFORMATION.—The Secretary shall make infor13 mation available to wholesalers, importers, retailers, trade

14 associations, and other interested persons concerning the re15 quirements of this section (including regulations promul16 gated to carry out this section).’’.

17 (b) EFFECTIVE DATE.—This section and the amend18 ments made by this section take effect on the date that is

19 180 days after the date of enactment of this Act.

20 Subtitle B—Agricultural Fair

21 Practices

22 SEC. 10101. DEFINITIONS.

23 Section 3 of the Agricultural Fair Practices Act of

24 1967 (7 U.S.C. 2302) is amended—
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1 (1) by striking ‘‘When used in this Act—’’ and

2 inserting ‘‘In this Act:’’;

3 (2) in subsection (a)—

4 (A) by redesignating paragraphs (1)

5 through (4) as clauses (i) through (iv), respec6 tively; and

7 (B) in clause (iv) (as so redesignated), by

8 striking ‘‘clause (1), (2), or (3) of this para9 graph’’ and inserting ‘‘clause (i), (ii), or (iii)’’;

10 (3) by striking subsection (d);

11 (4) by redesignating subsections (a), (b), (c), and

12 (e) as paragraphs (3), (4), (2), (1), respectively, in13 denting appropriately, and moving those paragraphs

14 so as to appear in numerical order;

15 (5) in each paragraph (as so redesignated) that

16 does not have a heading, by inserting a heading, in

17 the same style as the heading in the amendment made

18 by paragraph (6), the text of which is comprised of

19 the term defined in the paragraph;

20 (6) in paragraph (2) (as so redesignated)—

21 (A) by striking ‘‘The term ‘association of

22 producers’ means’’ and inserting the following:

23 ‘‘(2) ASSOCIATION OF PRODUCERS.—

24 ‘‘(A) IN GENERAL.—The term ‘association

25 of producers’ means’’; and
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1 (B) by adding at the end the following:

2 ‘‘(B) INCLUSION.—The term ‘association of

3 producers’ includes an organization of agricul4 tural producers dedicated to promoting the com5 mon interest and general welfare of producers of

6 agricultural products.’’;

7 (7) in paragraph (3) (as so redesignated)—

8 (A) by striking ‘‘The term’’ and inserting

9 the following:

10 ‘‘(3) HANDLER.—

11 ‘‘(A) IN GENERAL.—The term’’; and

12 (B) by inserting after clause (iv) of sub13 paragraph (A) (as redesignated by subparagraph

14 (A) and paragraph (2)) the following:

15 ‘‘(B) EXCLUSION.—The term ‘handler’ does

16 not include—

17 ‘‘(i) a producer; or

18 ‘‘(ii) a person, other than a packer (as

19 defined in section 201 of the Packers and

20 Stockyards Act, 1921 (7 U.S.C. 191)), that

21 provides custom feeding services for a pro22 ducer.’’; and

23 (8) by adding at the end the following:

24 ‘‘(5) SECRETARY.—The term ‘Secretary’ means

25 the Secretary of Agriculture.’’.
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1 SEC. 10102. PROHIBITED PRACTICES.

2 Section 4 of the Agricultural Fair Practices of 1967

3 (7 U.S.C. 2303) is amended—

4 (1) by redesignating subsections (a), (b), (c), (d),

5 (e), and (f) as paragraphs (1), (2), (3), (4), (5), and

6 (7), respectively, and indenting appropriately;

7 (2) in paragraph (1) (as so redesignated)—

8 (A) by striking ‘‘join and belong’’ each place

9 it appears and inserting ‘‘form, join, and be10 long’’; and

11 (B) by striking ‘‘joining or belonging’’ and

12 inserting ‘‘forming, joining, or belonging’’; and

13 (3) by inserting after paragraph (5) (as so redes14 ignated) the following:

15 ‘‘(6) To fail to bargain in good faith with an as16 sociation of producers; or’’.

17 SEC. 10103. ENFORCEMENT.

18 The Agricultural Fair Practices Act of 1967 is

19 amended—

20 (1) by striking sections 5 and 6 (7 U.S.C. 2304,

21 2305); and

22 (2) by inserting after section 4 the following:

23 ‘‘SEC. 5. ENFORCEMENT.

24 ‘‘(a) CIVIL ACTIONS BY THE SECRETARY AGAINST

25 HANDLERS.—In any case in which the Secretary has rea26 sonable cause to believe that a handler or group of handlers
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1 has engaged in any act or practice that violates this Act,

2 the Secretary may bring a civil action in United States

3 district court by filing a complaint requesting preventive

4 relief, including an application for a permanent or tem5 porary injunction, restraining order, or other order, against

6 the handler.

7 ‘‘(b) CIVIL ACTIONS AGAINST HANDLERS.—

8 ‘‘(1) PREVENTIVE RELIEF.—

9 ‘‘(A) IN GENERAL.—In any case in which

10 any handler has engaged, or there are reasonable

11 grounds to believe that any handler is about to

12 engage, in any act or practice prohibited by this

13 Act, a civil action for preventive relief, including

14 an application for a permanent or temporary

15 injunction, restraining order, or other order,

16 may be instituted by the person aggrieved in

17 United States district court.

18 ‘‘(B) SECURITY.—The court may provide

19 that no restraining order or preliminary injunc20 tion shall issue unless security is provided by the

21 applicant, in such sum as the court determines

22 to be appropriate, for the payment of such costs

23 and damages as may be incurred or suffered by

24 any party that is found to have been wrongfully

25 enjoined or restrained.
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1 ‘‘(2) DAMAGES.—

2 ‘‘(A) IN GENERAL.—Any person injured in

3 the business or property of the person by reason

4 of any violation of, or combination or conspiracy

5 to violate, this Act may bring a civil action in

6 United States district court to recover—

7 ‘‘(i) damages sustained by the person

8 as a result of the violation; and

9 ‘‘(ii) any additional penalty that the

10 court may allow, but not more than $1,000

11 per violation.

12 ‘‘(B) LIMITATION ON ACTIONS.—A civil ac13 tion under subparagraph (A) shall be barred un14 less commenced within 4 years after the cause of

15 action accrues.

16 ‘‘(3) ATTORNEYS’ FEES.—In any action com17 menced under paragraph (1) or (2), any person that

18 has violated this Act shall be liable to any person in19 jured as a result of the violation for the full amount

20 of the damages sustained as a result of the violation,

21 including costs of the litigation and reasonable attor22 neys’ fees.

23 ‘‘(c) JURISDICTION OF DISTRICT COURTS.—The dis24 trict courts of the United States shall—
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1 ‘‘(1) have jurisdiction of proceedings instituted

2 pursuant to this section; and

3 ‘‘(2) exercise that jurisdiction without regard to

4 whether the aggrieved party shall have exhausted any

5 administrative or other remedies that may be pro6 vided by law.

7 ‘‘(d) LIABILITY FOR ACTS OF AGENTS.—In the con8 struction and enforcement of this Act, the act, omission, or

9 failure of any officer, agent, or person acting for or em10 ployed by any other person within the scope of the employ11 ment or office of the officer, agent, or person, shall be consid12 ered to be the act, omission, or failure of the other person.

13 ‘‘(e) RELATIONSHIP TO STATE LAW.—Nothing in this

14 Act—

15 ‘‘(1) changes or modifies State law in effect on

16 the date of enactment of this subsection; or

17 ‘‘(2) deprives a State court of jurisdiction.’’.

18 SEC. 10104. RULES AND REGULATIONS.

19 The Agricultural Fair Practices Act of 1967 is amend20 ed by inserting after section 5 (as added by section 10103)

21 the following:

22 ‘‘SEC. 6. RULES AND REGULATIONS.

23 ‘‘The Secretary may promulgate such rules and regula24 tions as are necessary to carry out this Act, including rules

25 or regulations necessary to clarify what constitutes fair and
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1 normal dealing for purposes of the selection of customers

2 by handlers.’’.

3 Subtitle C—Packers and

4 Stockyards

5 SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COM6 PETITION.

7 (a) IN GENERAL.—The Packers and Stockyards Act,

8 1921 (7 U.S.C. 181 et seq.) is amended—

9 (1) by striking the title I heading and all that

10 follows through ‘‘This Act’’ and inserting the fol11 lowing:

12 ‘‘TITLE I—GENERAL PROVISIONS

13 ‘‘Subtitle A—Definitions

14 ‘‘SEC. 1. SHORT TITLE.

15 ‘‘This Act’’; and

16 (2) by inserting after section 2 (7 U.S.C. 183)

17 the following:

18 ‘‘Subtitle B—Special Counsel for

19 Agricultural Competition

20 ‘‘SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETI21 TION.

22 ‘‘(a) ESTABLISHMENT.—

23 ‘‘(1) IN GENERAL.—There is established within

24 the Department of Agriculture an office to be known

25 as the ‘Office of Special Counsel for Agricultural
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1 Competition’ (referred to in this section as the ‘Of2 fice’).

3 ‘‘(2) DUTIES.—The Office shall—

4 ‘‘(A) have responsibility for all duties and

5 functions of the Packers and Stockyards pro6 grams of the Department of Agriculture;

7 ‘‘(B) investigate and prosecute violations of

8 this Act and the Agricultural Fair Practices Act

9 of 1967 (7 U.S.C. 2301 et seq.);

10 ‘‘(C) serve as a liaison between, and act in

11 consultation with, the Department of Agri12 culture, the Department of Justice, and the Fed13 eral Trade Commission with respect to competi14 tion and trade practices in the food and agricul15 tural sector; and

16 ‘‘(D) maintain a staff of attorneys and

17 other professionals with the appropriate exper18 tise.

19 ‘‘(b) SPECIAL COUNSEL FOR AGRICULTURAL COMPETI20 TION.—

21 ‘‘(1) IN GENERAL.—The Office shall be headed by

22 the Special Counsel for Agricultural Competition (re23 ferred to in this section as the ‘Special Counsel’), who

24 shall be appointed by the President, by and with the

25 advice and consent of the Senate.
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1 ‘‘(2) INDEPENDENCE OF SPECIAL AUTHORITY.—

2 ‘‘(A) IN GENERAL.—The Special Counsel

3 shall report to and be under the general super4 vision of the Secretary.

5 ‘‘(B) DIRECTION, CONTROL, AND SUP6 PORT.—The Special Counsel shall be free from

7 the direction and control of any person in the

8 Department of Agriculture other than the Sec9 retary.

10 ‘‘(C) PROHIBITION ON DELEGATION.—The

11 Secretary may not delegate any duty described

12 in subsection (a)(2) to any other officer or em13 ployee of the Department other than the Special

14 Counsel.

15 ‘‘(D) REPORTING REQUIREMENT.—

16 ‘‘(i) IN GENERAL.—Twice each year,

17 the Special Counsel shall submit to the

18 Committee on Agriculture of the House of

19 Representatives and the Committee on Agri20 culture, Nutrition, and Forestry of the Sen21 ate a report that shall include, for the rel22 evant reporting period, a description of—

23 ‘‘(I) the number of complaints

24 that the Special Counsel has received

25 and closed;
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1 ‘‘(II)(aa) the number of investiga2 tions and civil and administrative ac3 tions that the Special Counsel has ini4 tiated, carried out, and completed, in5 cluding the number of notices given to

6 regulated entities for violations of this

7 Act or the Agricultural Fair Practices

8 Act of 1967 (7 U.S.C. 2301 et seq.);

9 ‘‘(bb) the number and types of de10 cisions agreed to; and

11 ‘‘(cc) the number of stipulation

12 agreements; and

13 ‘‘(III) the number of investiga14 tions and civil and administrative ac15 tions that the Secretary objected to or

16 prohibited from being carried out, and

17 the stated purpose of the Secretary for

18 each objection or prohibition.

19 ‘‘(ii) REQUIREMENT.—The basis for

20 each complaint, investigation, or civil or

21 administrative action described in a report

22 under clause (i) shall—

23 ‘‘(I) be organized by species; and

24 ‘‘(II) indicate if the complaint,

25 investigation, or civil or administra-
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1 tion action was for anti-competitive,

2 unfair, or deceptive practices under

3 this Act or was a violation of the Agri4 cultural Fair Practices Act of 1967 (7

5 U.S.C. 2301 et seq.).

6 ‘‘(E) REMOVAL.—

7 ‘‘(i) IN GENERAL.—The Special Coun8 sel may be removed from office by the Presi9 dent.

10 ‘‘(ii) COMMUNICATION.—The President

11 shall communicate the reasons for any such

12 removal to both Houses of Congress.

13 ‘‘(3) PROSECUTORIAL AUTHORITY.—Subject to

14 paragraph (4), the Special Counsel may commence,

15 defend, or intervene in, and supervise the litigation

16 of, any civil or administrative action authorized

17 under this Act or the Agricultural Fair Practices Act

18 of 1967 (7 U.S.C. 2301 et seq.).

19 ‘‘(4) PROCEDURE FOR EXERCISE OF AUTHORITY

20 TO LITIGATEOR APPEAL.—

21 ‘‘(A) IN GENERAL.—Prior to commencing,

22 defending, or intervening in any civil action

23 under this Act or the Agricultural Fair Practices

24 Act of 1967 (7 U.S.C. 2301 et seq.), the Special

25 Counsel shall give written notification to, and
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1 attempt to consult with, the Attorney General

2 with respect to the proposed action.

3 ‘‘(B) FAILURETO RESPOND.—If, not later

4 than 45 days after the date of provision of notifi5 cation under subparagraph (A), the Attorney

6 General has failed to commence, defend, or inter7 vene in the proposed action, the Special Counsel

8 may commence, defend, or intervene in, and su9 pervise the litigation of, the action and any ap10 peal of the action in the name of the Special

11 Counsel.

12 ‘‘(C) AUTHORITY OF ATTORNEY GENERAL

13 TO INTERVENE.—Nothing in this paragraph pre14 cludes the Attorney General from intervening on

15 behalf of the United States in any civil action

16 under this Act or the Agricultural Fair Practices

17 Act of 1967 (7 U.S.C. 2301 et seq.), or in any

18 appeal of such action, as may be otherwise pro19 vided by law.

20 ‘‘(c) RELATIONSHIP TO OTHER PROVISIONS.—Nothing

21 in this section modifies or otherwise effects subsections (a)

22 and (b) of section 406.’’.

23 (b) CONFORMING AMENDMENT.—Section 5315 of title

24 5, United States Code, is amended by adding at the end

25 the following:
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1 ‘‘Special Counsel for Agricultural Competition.’’.

2 SEC. 10202. INVESTIGATION OF LIVE POULTRY DEALERS.

3 (a) REMOVAL OF POULTRY SLAUGHTER REQUIRE4 MENT FROM DEFINITIONS.—Section 2(a) of the Packers

5 and Stockyards Act, 1921 (7 U.S.C. 182(a)), is amended—

6 (1) by striking paragraph (8) and inserting the

7 following:

8 ‘‘(8) POULTRY GROWER.—

9 ‘‘(A) IN GENERAL.—The term ‘poultry

10 grower’ means any person engaged in the busi11 ness of raising or caring for live poultry under

12 a poultry growing arrangement, regardless of

13 whether the poultry is owned by the person or by

14 another person.

15 ‘‘(B) EXCLUSION.—The term ‘poultry grow16 er’ does not include an employee of the owner of

17 live poultry described in subparagraph (A).’’;

18 (2) in paragraph (9), by striking ‘‘and cares for

19 live poultry for delivery, in accord with another’s in20 structions, for slaughter’’ and inserting ‘‘or cares for

21 live poultry in accordance with the instructions of

22 another person’’; and

23 (3) in paragraph (10), by striking ‘‘for the pur24 pose of either slaughtering it or selling it for slaughter

25 by another’’.
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1 (b) ADMINISTRATIVE ENFORCEMENT AUTHORITY

2 OVER LIVE POULTRY DEALERS.—Sections 203, 204, and

3 205 of the Packers and Stockyards Act, 1921 (7 U.S.C. 193,

4 194, 195), are amended by inserting ‘‘or live poultry deal5 er’’ after ‘‘packer’’ each place it appears.

6 (c) AUTHORITY TO REQUEST TEMPORARY INJUNCTION

7 OR RESTRAINING ORDER.—Section 408 of the Packers and

8 Stockyards Act, 1921 (7 U.S.C. 228a), is amended in the

9 first sentence by striking ‘‘on account of poultry’’ and in10 serting ‘‘on account of poultry or poultry care’’.

11 (d) VIOLATIONS BY LIVE POULTRY DEALERS.—

12 (1) PENALTY.—Section 203(b) of the Packers

13 and Stockyards Act, 1921 (7 U.S.C. 193(b)) is

14 amended in the third sentence by striking ‘‘$10,000’’

15 and inserting ‘‘$22,000’’.

16 (2) REPEALS.—Sections 411, 412, and 413 of the

17 Packers and Stockyards Act, 1921 (7 U.S.C. 228b–2,

18 228b–3, 228b–4)), are repealed.

19 SEC. 10203. PRODUCTION CONTRACTS.

20 (a) DEFINITIONS.—Section 2(a) of the Packers and

21 Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended—

22 (1) by striking ‘‘When used in this Act—’’ and

23 inserting ‘‘In this Act:’’;

24 (2) by striking paragraph (1);
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1 (3) by redesignating paragraphs (2), (3), (4),

2 (5), (6), (7), (8), (9), (10), (11), (12), (13), and (14)

3 as paragraphs (15), (6), (8), (9), (10), (13), (11),

4 (12), (7), (2), (16), (17), and (18), respectively, in5 denting appropriately, and moving those paragraphs

6 so as to appear in numerical order;

7 (4) in each paragraph (as so redesignated) that

8 does not have a heading, by inserting a heading, in

9 the same style as the heading in the amendment made

10 by paragraph (5), the text of which is comprised of

11 the term defined in the paragraph;

12 (5) by inserting before paragraph (2) (as so des13 ignated) the following:

14 ‘‘(1) CAPITAL INVESTMENT.—The term ‘capital

15 investment’ means an investment in—

16 ‘‘(A) a structure, such as a building or ma17 nure storage structure; or

18 ‘‘(B) machinery or equipment associated

19 with producing livestock or poultry that has a

20 useful life of more than 1 year.’’;

21 (6) by inserting after paragraph (2) (as so redes22 ignated) the following:

23 ‘‘(3) CONTRACTOR.—

24 ‘‘(A) IN GENERAL.—The term ‘contractor’

25 means a person that, in accordance with a pro-
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1 duction contract, obtains livestock or poultry

2 that is produced by a contract producer.

3 ‘‘(B) INCLUSIONS.—The term ‘contractor’

4 includes—

5 ‘‘(i) a live poultry dealer; and

6 ‘‘(ii) a swine contractor.

7 ‘‘(4) CONTRACT PRODUCER.—

8 ‘‘(A) IN GENERAL.—The term ‘contract pro9 ducer’ means a producer that produces livestock

10 or poultry under a production contract.

11 ‘‘(B) INCLUSIONS.—The term ‘contract pro12 ducer’ includes—

13 ‘‘(i) a poultry grower; and

14 ‘‘(ii) a swine production contract

15 grower.

16 ‘‘(5) INVESTMENT REQUIREMENT.—The term ‘in17 vestment requirement’ means—

18 ‘‘(A) a provision in a production contract

19 that requires a contract producer to make a cap20 ital investment associated with producing live21 stock or poultry that, but for the production con22 tract, the contract producer would not have

23 made; or
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1 ‘‘(B) a representation by a contractor that

2 results in a contract producer making a capital

3 investment.’’; and

4 (7) by inserting after paragraph (13) (as so re5 designated) the following:

6 ‘‘(14) PRODUCTION CONTRACT.—

7 ‘‘(A) IN GENERAL.—The term ‘production

8 contract’ means a written agreement that pro9 vides for—

10 ‘‘(i) the production of livestock or poul11 try by a contract producer; or

12 ‘‘(ii) the provision of a management

13 service relating to the production of live14 stock or poultry by a contract producer.

15 ‘‘(B) INCLUSIONS.—The term ‘production

16 contract’ includes—

17 ‘‘(i) a poultry growing arrangement;

18 ‘‘(ii) a swine production contract;

19 ‘‘(iii) any other contract between a

20 contractor and a contract producer for the

21 production of livestock or poultry; and

22 ‘‘(iv) a contract between a live poultry

23 dealer and poultry grower, swine contractor

24 and swine production contract grower, or

25 contractor and contract producer for the
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1 provision of a management service in the

2 production of livestock or poultry.’’.

3 (b) PROHIBITIONS INVOLVING PRODUCTION CON4 TRACTS.—Title II of the Packers and Stockyards Act, 1921

5 (7 U.S.C. 198 et seq.), is amended by adding at the end

6 the following:

7 ‘‘SEC. 208. PRODUCTION CONTRACTS.

8 ‘‘(a) RIGHT OF CONTRACT PRODUCERS TO CANCEL

9 PRODUCTION CONTRACTS.—

10 ‘‘(1) IN GENERAL.—A contract producer may

11 cancel a production contract by mailing a cancella12 tion notice to the contractor not later than the later

13 of—

14 ‘‘(A) the date that is 3 business days after

15 the date on which the production contract is exe16 cuted; or

17 ‘‘(B) any cancellation date specified in the

18 production contract.

19 ‘‘(2) DISCLOSURE.—A production contract shall

20 clearly disclose—

21 ‘‘(A) the right of the contract producer to

22 cancel the production contract;

23 ‘‘(B) the method by which the contract pro24 ducer may cancel the production contract; and
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1 ‘‘(C) the deadline for canceling the produc2 tion contract.

3 ‘‘(b) PRODUCTION CONTRACTS INVOLVING INVESTMENT

4 REQUIREMENTS.—

5 ‘‘(1) APPLICABILITY.—This subsection applies

6 only to a production contract between a contract pro7 ducer and a contractor if the contract producer det8 rimentally relied on a representation by the con9 tractor or a provision in the production contract that

10 resulted in the contract producer making a capital

11 investment of $100,000 or more.

12 ‘‘(2) RESTRICTIONS ON CONTRACT TERMI13 NATION.—

14 ‘‘(A) NOTICEOF TERMINATION.—Except as

15 provided in subparagraph (C), a contractor shall

16 not terminate or cancel a production contract

17 unless the contractor provides the contract pro18 ducer with written notice of the intention of the

19 contractor to terminate or cancel the production

20 contract at least 90 days before the effective date

21 of the termination or cancellation.

22 ‘‘(B) REQUIREMENTS.—The written notice

23 required under subparagraph (A) shall include

24 alleged causes of the termination.
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1 ‘‘(C) EXCEPTIONS.—A contractor may ter2 minate or cancel a production contract at any

3 time without notice as required under subpara4 graph (A) if the basis for the termination or can5 cellation is—

6 ‘‘(i) a voluntary abandonment of the

7 contractual relationship by the contract

8 producer, such as a failure of the contract

9 producer to substantially perform under the

10 production contract;

11 ‘‘(ii) the conviction of the contract pro12 ducer of an offense of fraud or theft com13 mitted against the contractor;

14 ‘‘(iii) the natural end of the production

15 contract in accordance with the terms of the

16 production contract; or

17 ‘‘(iv) because the well-being of the live18 stock or poultry subject to the contract is in

19 jeopardy once under the care of the contract

20 producer.

21 ‘‘(D) RIGHT TO CURE.—

22 ‘‘(i) IN GENERAL.—If, not later than

23 90 days after the date on which the contract

24 producer receives written notice under sub25 paragraph (A), the contract producer rem-
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1 edies each cause of the breach of contract al2 leged in the written notice, the contractor

3 may not terminate or cancel a production

4 contract under this paragraph.

5 ‘‘(ii) NO ADMISSION OF BREACH.—The

6 remedy or attempt to remedy the causes for

7 the breach of contract by the contract pro8 ducer under clause (i) does not constitute

9 an admission of breach of contract.

10 ‘‘(c) ADDITIONAL CAPITAL INVESTMENTS IN PRODUC11 TION CONTRACTS.—

12 ‘‘(1) IN GENERAL.—A contractor shall not re13 quire a contract producer to make additional capital

14 investments in connection with a production contract

15 that exceed the initial investment requirements of the

16 production contract.

17 ‘‘(2) EXCEPTIONS.—Notwithstanding paragraph

18 (1), a contractor may require additional capital in19 vestments if—

20 ‘‘(A)(i) the additional capital investments

21 are offset by reasonable additional consideration,

22 including compensation or a modification to the

23 terms of the production contract; and

24 ‘‘(ii) the contract producer agrees in writ25 ing that there is acceptable and satisfactory con-
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1 sideration for the additional capital investment;

2 or

3 ‘‘(B) without the additional capital invest4 ments the well-being of the livestock or poultry

5 subject to the contract would be in jeopardy.

6 ‘‘(d) NO EFFECT ON STATE LAW.—Nothing in this sec7 tion preempts or otherwise affects any State law relating

8 to production contracts that establishes a requirement or

9 standard that is more stringent than a requirement or

10 standard under this section.

11 ‘‘SEC. 209. CHOICE OF LAW, JURISDICTION, AND VENUE.

12 ‘‘(a) CHOICEOF LAW.—Any provision in a livestock

13 or poultry production or marketing contract requiring the

14 application of the law of a State other than the State in

15 which the production occurs is void and unenforceable.

16 ‘‘(b) JURISDICTION.—A packer, live poultry dealer, or

17 swine contractor that enters into a production or marketing

18 contract with a producer shall be subject to personal juris19 diction in the State in which the production occurs.

20 ‘‘(c) VENUE.—Venue shall be determined on the basis

21 of the location of the production, unless the producer selects

22 a venue that is otherwise permitted by law.

23 ‘‘(d) APPLICATION.—This section shall apply to any

24 production or marketing contract entered into, amended, al-
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1 tered, modified, renewed, or extended after the date of enact2 ment of this section.

3 ‘‘SEC. 210. ARBITRATION.

4 ‘‘(a) IN GENERAL.—If a livestock or poultry contract

5 provides for the use of arbitration to resolve a controversy

6 under the livestock or poultry contract, arbitration may be

7 used to settle the controversy only if, after the controversy

8 arises, both parties consent in writing to use arbitration

9 to settle the controversy.

10 ‘‘(b) APPLICATION.—Subsection (a) shall apply to any

11 contract entered into, amended, altered, modified, renewed,

12 or extended after the date of enactment of this section.’’.

13 SEC. 10204. RIGHT TO DISCUSS TERMS OF CONTRACT.

14 Section 10503(b) of the Farm Security and Rural In15 vestment Act of 2002 (7 U.S.C. 229b(b)) is amended—

16 (1) in paragraph (6), by striking ‘‘or’’ at the

17 end;

18 (2) in paragraph (7), by striking the period at

19 the end and inserting a semicolon; and

20 (3) by adding at the end the following:

21 ‘‘(8) a business associate of the party; or

22 ‘‘(9) a neighbor of the party or other producer.’’.

23 SEC. 10205. ATTORNEYS’ FEES.

24 Section 308(a) of the Packers and Stockyards Act,

25 1921 (7 U.S.C. 209(a)) is amended by inserting before the
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1 period at the end the following: ‘‘and for the costs of the

2 litigation, including reasonable attorneys’ fees’’.

3 SEC. 10206. APPOINTMENT OF OUTSIDE COUNSEL.

4 Section 407 of the Packers and Stockyards Act, 1921

5 (7 U.S.C. 228), is amended—

6 (1) in subsection (a), by inserting ‘‘obtain the

7 services of attorneys who are not employees of the

8 Federal Government,’’ before ‘‘and make such expend9 itures’’; and

10 (2) in subsection (c), by striking ‘‘Senate Com11 mittee on Agriculture and Forestry’’ and inserting

12 ‘‘the Committee on Agriculture, Nutrition, and For13 estry of the Senate’’.

14 SEC. 10207. PROHIBITION ON PACKERS OWNING, FEEDING,

15 OR CONTROLLING LIVESTOCK.

16 (a) IN GENERAL.—Section 202 of the Packers and

17 Stockyards Act, 1921 (7 U.S.C. 192), is amended—

18 (1) by redesignating subsections (f) and (g) as

19 subsections (g) and (h), respectively; and

20 (2) by inserting after subsection (e) the following:

21 ‘‘(f) Own or feed livestock directly, through a sub22 sidiary, or through an arrangement that gives the packer

23 operational, managerial, or supervisory control over the

24 livestock, or over the farming operation that produces the

25 livestock, to such an extent that the producer is no longer
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1 materially participating in the management of the oper2 ation with respect to the production of the livestock, except

3 that this subsection shall not apply to—

4 ‘‘(1) an arrangement entered into within 14

5 days (excluding any Saturday or Sunday) before

6 slaughter of the livestock by a packer, a person acting

7 through the packer, or a person that directly or indi8 rectly controls, or is controlled by or under common

9 control with, the packer;

10 ‘‘(2) a cooperative or entity owned by a coopera11 tive, if a majority of the ownership interest in the co12 operative is held by active cooperative members

13 that—

14 ‘‘(A) own, feed, or control livestock; and

15 ‘‘(B) provide the livestock to the cooperative

16 for slaughter;

17 ‘‘(3) a packer that is not required to report to

18 the Secretary on each reporting day (as defined in

19 section 212 of the Agricultural Marketing Act of 1946

20 (7 U.S.C. 1635a)) information on the price and

21 quantity of livestock purchased by the packer; or

22 ‘‘(4) a packer that owns 1 livestock processing

23 plant; or’’.

24 (b) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—Subject to paragraph (2), the

2 amendments made by subsection (a) take effect on the

3 date of enactment of this Act.

4 (2) TRANSITION RULES.—In the case of a packer

5 that on the date of enactment of this Act owns, feeds,

6 or controls livestock intended for slaughter in viola7 tion of section 202(f) of the Packers and Stockyards

8 Act, 1921 (as amended by subsection (a)), the amend9 ments made by subsection (a) apply to the packer—

10 (A) in the case of a packer of swine, begin11 ning on the date that is 18 months after the date

12 of enactment of this Act; and

13 (B) in the case of a packer of any other

14 type of livestock, beginning as soon as prac15 ticable, but not later than 180 days, after the

16 date of enactment of this Act, as determined by

17 the Secretary.

18 SEC. 10208. REGULATIONS.

19 (a) IN GENERAL.—Not later than 180 days after the

20 date of enactment of this Act, the Secretary of Agriculture

21 shall promulgate regulations to implement the amendments

22 made by this title, including—

23 (1) regulations providing a definition of the term

24 ‘‘unreasonable preference or advantage’’ for purposes
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1 of section 202(b) of the Packers and Stockyards Act,

2 1921 (7 U.S.C. 192(b)); and

3 (2) regulations requiring live poultry dealers to

4 provide written notice to poultry growers if the live

5 poultry dealer imposes an extended layout period in

6 excess of 30 days, prior to removal of the previous

7 flock.

8 (b) REQUIREMENTS.—The Secretary shall ensure that

9 regulations promulgated pursuant to subsection (a)(1) pre10 vent discrimination against producers with a smaller vol11 ume of business. Nothing in this subsection shall be con12 strued to require any person to enter into a business trans13 action with a producer due solely to that producer’s volume

14 of business.

15 Subtitle D—Related Programs

16 SEC. 10301. SENSE OF CONGRESS REGARDING

17 PSEUDORABIES ERADICATION PROGRAM.

18 It is the sense of Congress that—

19 (1) the Secretary should recognize the threat that

20 feral swine pose to the domestic swine population and

21 the entire livestock industry;

22 (2) keeping the United States commercial swine

23 herd free of pseudorabies is essential to maintaining

24 and growing pork export markets;
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1 (3) pseudorabies surveillance funding is nec2 essary to assist the swine industry in the monitoring,

3 surveillance, and eradication of pseudorabies, includ4 ing the monitoring and surveillance of other diseases

5 effecting swine production and trade; and

6 (4) pseudorabies eradication is a high priority

7 that the Secretary should carry out under the Animal

8 Health Protection Act (7 U.S.C. 8301 et seq.).

9 SEC. 10302. SENSE OF CONGRESS REGARDING CATTLE

10 FEVER TICK ERADICATION PROGRAM.

11 It is the sense of Congress that—

12 (1) the cattle fever tick and the southern cattle

13 tick are vectors of the causal agent of babesiosis, a se14 vere and often fatal disease of cattle; and

15 (2) implementing a national strategic plan for

16 the cattle fever tick eradication program is a high

17 priority that the Secretary should carry out—

18 (A) to prevent the entry of cattle fever ticks

19 into the United States;

20 (B) to enhance and maintain an effective

21 surveillance program to rapidly detect any fever

22 tick incursions; and

23 (C) to research, identify, and procure the

24 tools and knowledge necessary to prevent and

25 eradicate cattle ticks in the United States.
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1 SEC. 10303. NATIONAL SHEEP AND GOAT INDUSTRY IM2 PROVEMENT CENTER.

3 (a) NAME CHANGE.—Section 375 of the Consolidated

4 Farm and Rural Development Act (7 U.S.C. 2008j) is

5 amended—

6 (1) in the section heading, by inserting ‘‘AND

7 GOAT’’ after ‘‘NATIONAL SHEEP’’; and

8 (2) by inserting ‘‘and Goat’’ after ‘‘National

9 Sheep’’ each place it appears.

10 (b) FUNDING.—Section 375(e)(6) of the Consolidated

11 Farm and Rural Development Act (7 U.S.C. 2008j(e)(6))

12 is amended by striking subparagraphs (B) and (C) and in13 serting the following:

14 ‘‘(B) MANDATORY FUNDING.—Of the funds

15 of the Commodity Credit Corporation, the Sec16 retary shall use to carry out this section

17 $1,000,000 for fiscal year 2008, to remain avail18 able until expended.

19 ‘‘(C) AUTHORIZATION OF APPROPRIA20 TIONS.—There is authorized to be appropriated

21 to the Secretary to carry out this section

22 $10,000,000 for each of fiscal years 2008 through

23 2012.’’.

24 (c) REPEAL OF REQUIREMENT TO PRIVATIZE REVOLV25 ING FUND.—
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1 (1) IN GENERAL.—Section 375 of the Consoli2 dated Farm and Rural Development Act (7 U.S.C.

3 2008j) is amended by striking subsection (j).

4 (2) EFFECTIVE DATE.—The amendment made by

5 paragraph (1) takes effect on May 1, 2007.

6 SEC. 10304. TRICHINAE CERTIFICATION PROGRAM.

7 Section 10409 of the Animal Health Protection Act (7

8 U.S.C. 8308) is amended by adding at the end the following:

9 ‘‘(c) TRICHINAE CERTIFICATION PROGRAM.—

10 ‘‘(1) ESTABLISHMENT.—Not later than 60 days

11 after the date of enactment of this subsection, the Sec12 retary shall issue final regulations to implement a

13 trichinae certification program.

14 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—

15 There is authorized to be appropriated to the Sec16 retary to carry out the program $1,250,000 for each

17 of fiscal years 2008 through 2012.’’.

18 SEC. 10305. PROTECTION OF INFORMATION IN THE ANIMAL

19 IDENTIFICATION SYSTEM.

20 Not later than 180 days after the date of enactment

21 of this Act, the Secretary shall promulgate regulations con22 sistent with the Freedom of Information Act, 5 U.S.C. 552,

23 et. seq., regarding the disclosure of information submitted

24 by farmers and ranchers who participate in the National

25 Animal Identification System. The regulations promul-
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1 gated, which shall be subject to a public comment period

2 before finalizing, should address the protection of trade se3 crets and other proprietary and/or confidential business in4 formation that farmers and ranchers disclose in the course

5 of participation in National Animal Identification System.

6 SEC. 10306. LOW PATHOGENIC AVIAN INFLUENZA.

7 Section 10407(d)(2) of the Animal Health Protection

8 Act (7 U.S.C. 8306(d)(2)) is amended—

9 (1) in subparagraph (A), by striking ‘‘subpara10 graphs (B) and (C),’’ and inserting ‘‘subparagraphs

11 (B), (C), and (D),’’;

12 (2) by redesignating subparagraph (C) as sub13 paragraph (D); and

14 (3) by inserting after subparagraph (B) the fol15 lowing:

16 ‘‘(C) LOW PATHOGENIC AVIAN INFLU17 ENZA.—

18 ‘‘(i) DEFINITION OF ELIGIBLE

19 COSTS.—In this subparagraph, the term ‘el20 igible costs’ means costs determined eligible

21 for indemnity under part 56 of title 9, Code

22 of Federal Regulations, as in effect on the

23 date of enactment of this clause.

24 ‘‘(ii) INDEMNITIES.—Subject to sub25 paragraphs (B) and (D), compensation to
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1 any owner or contract grower of poultry

2 participating in the voluntary control pro3 gram for low pathogenic avian influenza

4 under the National Poultry Improvement

5 Plan, and payments to cooperating State

6 agencies, shall be made in an amount equal

7 to 100 percent of the eligible costs.’’.

8 SEC. 10307. STUDY ON BIOENERGY OPERATIONS.

9 Not later than 180 days after the date of enactment

10 of this Act, the Secretary, acting through the Office of the

11 Chief Economist, shall submit to the Committee on Agri12 culture of the House of Representatives and the Committee

13 on Agriculture, Nutrition, and Forestry of the Senate a re14 port describing the potential economic issues (including po15 tential costs) associated with animal manure used in nor16 mal agricultural operations and as a feedstock in bioenergy

17 production.

18 SEC. 10308. SENSE OF THE SENATE ON INDEMNIFICATION

19 OF LIVESTOCK PRODUCERS.

20 It is the sense of the Senate that the Secretary should

21 partner with the private insurance industry to implement

22 an approach for expediting the indemnification of livestock

23 producers in the case of catastrophic disease outbreaks.
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1 SEC. 10309. COORDINATION OF DAIRY OVERSIGHT.

2 (a) IN GENERAL.—The Secretary shall select an offi3 cial within the Department of Agriculture to coordinate the

4 sharing of information on oversight of the dairy industry

5 to ensure fair competition.

6 (b) DUTIES.—The official selected under subsection (a)

7 shall—

8 (1) serve as a liaison among the Agricultural

9 Marketing Service, Farm Service Agency, and Na10 tional Agricultural Statistics Service;

11 (2) coordinate and maintain informal commu12 nications as appropriate with other Federal agencies

13 with an involvement or interest in the dairy industry

14 or fair competition;

15 (3) hold at least 1 formal annual meeting during

16 each calendar year; and

17 (4) submit to the Committee on Agriculture of

18 the House of Representatives and the Committee on

19 Agriculture, Nutrition, and Forestry of the Senate,

20 and make available to the public, an annual report

21 that describes issues of concern in the dairy industry

22 that threaten fair competition, including an evalua23 tion of dairy markets with respect to the impact of

24 those markets on—

25 (A) reported dairy prices;
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1 (B) Federal milk marketing order prices;

2 and

3 (C) other Federal dairy programs.

4 TITLE XI—MISCELLANEOUS

5 Subtitle A—Agricultural Security

6 SEC. 11011. DEFINITIONS.

7 In this subtitle:

8 (1) AGENT.—The term ‘‘agent’’ means a chem9 ical, biological, radiological, or nuclear substance that

10 causes an agricultural disease or adulteration of food

11 products under the jurisdiction of the Department.

12 (2) AGRICULTURAL BIOSECURITY.—The term

13 ‘‘agricultural biosecurity’’ means protection from an

14 agent that poses a threat to—

15 (A) plant or animal health;

16 (B) public health, with respect to direct ex17 posure to an agricultural disease; or

18 (C) the environment, with respect to agri19 culture facilities, farmland, air, and water in the

20 immediate vicinity of an area associated with an

21 agricultural disease or outbreak.

22 (3) AGRICULTURAL COUNTERMEASURE.—

23 (A) IN GENERAL.—The term ‘‘agricultural

24 countermeasure’’ means a product, practice, or

25 technology that is intended to enhance or main-
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1 tain the agricultural biosecurity of the United

2 States.

3 (B) EXCLUSIONS.—The term ‘‘agricultural

4 countermeasure’’ does not include any product,

5 practice, or technology used solely for human

6 medical incidents or public health emergencies

7 not related to agriculture.

8 (4) AGRICULTURAL DISEASE.—The term ‘‘agri9 cultural disease’’ has the meaning given the term by

10 the Secretary.

11 (5) AGRICULTURE.—The term ‘‘agriculture’’

12 means—

13 (A) the science and practice of activities re14 lating to food, feed, fiber, and energy production,

15 processing, marketing, distribution, use, and

16 trade;

17 (B) nutrition, food science and engineering,

18 and agricultural economics;

19 (C) forestry, wildlife science, fishery science,

20 aquaculture, floriculture, veterinary medicine,

21 and other related natural resource sciences; and

22 (D) research and development activities re23 lating to plant- and animal-based products car24 ried out by the Department.
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1 (6) AGROTERRORIST ACT.—The term

2 ‘‘agroterrorist act’’ means an act that—

3 (A) causes or attempts to cause—

4 (i) damage to agriculture; or

5 (ii) injury to a person associated with

6 agriculture; and

7 (B) is committed—

8 (i) to intimidate or coerce; or

9 (ii) to disrupt the agricultural indus10 try.

11 (7) ANIMAL.—The term ‘‘animal’’ means any

12 member of the animal kingdom (except a human).

13 (8) DEPARTMENT.—The term ‘‘Department’’

14 means the Department of Agriculture.

15 (9) DEVELOPMENT.—The term ‘‘development’’

16 means—

17 (A) research leading to the identification of

18 products or technologies intended for use as agri19 cultural countermeasures;

20 (B) the formulation, production, and subse21 quent modification of those products or tech22 nologies;

23 (C) the conduct of preclinical and clinical

24 in vivo and in vitro studies;
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1 (D) the conduct of field, efficacy, and safety

2 studies;

3 (E) the preparation of an application for

4 marketing approval for submission to applicable

5 agencies; and

6 (F) other actions taken by an applicable

7 agency in a case in which an agricultural coun8 termeasure is procured or used prior to issuance

9 of a license or other form of approval.

10 (10) PLANT.—

11 (A) IN GENERAL.—The term ‘‘plant’’ means

12 any plant (including any plant part) for or ca13 pable of propagation.

14 (B) INCLUSIONS.—The term ‘‘plant’’

15 includes—

16 (i) a tree;

17 (ii) a tissue culture;

18 (iii) a plantlet culture;

19 (iv) pollen;

20 (v) a shrub;

21 (vi) a vine;

22 (vii) a cutting;

23 (viii) a graft;

24 (ix) a scion;

25 (x) a bud;
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1 (xi) a bulb;

2 (xii) a root; and

3 (xiii) a seed.

4 (11) QUALIFIED AGRICULTURAL COUNTER5 MEASURE.—The term ‘‘qualified agricultural counter6 measure’’ means an agricultural countermeasure that

7 the Secretary, in consultation with the Secretary of

8 Homeland Security, determines to be a priority in

9 order to address an agricultural biosecurity threat

10 from—

11 (A) an agent placed on the Select Agents

12 and Toxins list of the Department;

13 (B) an agent placed on the Plant Protection

14 and Quarantine Select Agents and Toxins list of

15 the Department; or

16 (C) an applicable agent placed on the Over17 lap Select Agents and Toxins list of the Depart18 ment and the Department of Health and Human

19 Services, in accordance with—

20 (i) part 331 of title 7, Code of Federal

21 Regulations; and

22 (ii) part 121 of title 9, Code of Federal

23 Regulations.
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1 SEC. 11012. NATIONAL PLANT DISEASE RECOVERY SYSTEM

2 AND NATIONAL VETERINARY STOCKPILE.

3 (a) NATIONAL PLANT DISEASE RECOVERY SYSTEM.—

4 (1) ESTABLISHMENT.—The Secretary, in coordi5 nation with the Secretary of Homeland Security, and

6 in consultation with the Administrator of the Envi7 ronmental Protection Agency, shall work with State

8 and local governments and the private sector to estab9 lish a national plant disease recovery system to be

10 used to respond to an outbreak of plant disease that

11 poses a significant threat to agricultural biosecurity.

12 (2) REQUIREMENTS.—The national plant disease

13 recovery system shall include agricultural counter14 measures to be made available within a single grow15 ing season for crops of particular economic signifi16 cance, as determined by the Secretary, in coordina17 tion with the Secretary of Homeland Security.

18 (b) NATIONAL VETERINARY STOCKPILE.—The Sec19 retary, in coordination with the Secretary of Homeland Se20 curity, and in consultation with the Secretary of Health

21 and Human Services and the Administrator of the Envi22 ronmental Protection Agency, shall work with State and

23 local governments and the private sector to establish a na24 tional veterinary stockpile, which shall be used by the Sec25 retary, in coordination with the Secretary of Homeland Se26 curity to make agricultural countermeasures available to
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1 any State veterinarian not later than 24 hours after sub2 mission of an official request for assistance by the State

3 veterinarian, unless the Secretary and the Secretary of

4 Homeland Security cannot accommodate such a request due

5 to an emergency, lack of available resources, or other reason

6 for disapproval of the request as determined the Secretary.

7 SEC. 11013. RESEARCH AND DEVELOPMENT OF AGRICUL8 TURAL COUNTERMEASURES.

9 (a) GRANT PROGRAM.—

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

11 a grant program to stimulate basic and applied re12 search and development activity for qualified agricul13 tural countermeasures.

14 (2) COMPETITIVE GRANTS.—In carrying out this

15 section, the Secretary shall develop a process through

16 which to award grants on a competitive basis.

17 (3) WAIVER IN EMERGENCIES.—The Secretary

18 may waive the requirement in paragraph (2), if—

19 (A) the Secretary has declared a plant or

20 animal disease emergency under the Plant Pro21 tection Act (7 U.S.C. 7701 et seq.) or the Animal

22 Health Protection Act (7 U.S.C. 8301 et seq.);

23 and
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1 (B) the waiver would lead to the rapid de2 velopment of a qualified agricultural counter3 measure, as determined by the Secretary.

4 (b) USEOF FOREIGN DISEASE PERMISSIBLE.—The

5 Secretary may permit the use of foreign animal and plant

6 disease agents, and accompanying data, in research and de7 velopment activities funded under this section if the Sec8 retary determines that the diseases or data are necessary

9 to demonstrate the safety and efficacy of an agricultural

10 countermeasure in development.

11 (c) COORDINATION ON ADVANCED DEVELOPMENT.—

12 The Secretary shall ensure that the Secretary of Homeland

13 Security is provided information, on a quarterly basis, de14 scribing each grant provided by the Secretary for the pur15 pose of facilitating the acceleration and expansion of the

16 advanced development of agricultural countermeasures.

17 (d) SCOPE.—Nothing in this section impedes the abil18 ity of the Secretary of Homeland Security to administer

19 grants for basic and applied research and advanced devel20 opment activities for qualified agricultural counter21 measures.

22 (e) AUTHORIZATION OF APPROPRIATIONS.—There is

23 authorized to be appropriated to carry out this section

24 $50,000,000 for each of fiscal years 2008 through 2012.
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1 SEC. 11014. VETERINARY WORKFORCE GRANT PROGRAM.

2 (a) IN GENERAL.—The Secretary shall establish a

3 grant program to increase the number of veterinarians

4 trained in agricultural biosecurity.

5 (b) CONSIDERATIONS FOR FUNDING AWARDED.—The

6 Secretary shall establish procedures to ensure that grants

7 are competitively awarded under the program based on—

8 (1) the ability of an applicant to increase the

9 number of veterinarians who are trained in agricul10 tural biosecurity practice areas determined by the

11 Secretary;

12 (2) the ability of an applicant to increase re13 search capacity in areas of agricultural biosecurity

14 determined by the Secretary to be a priority; or

15 (3) any other consideration the Secretary deter16 mines to be appropriate.

17 (c) USEOF FUNDS.—Amounts received under this sec18 tion may be used by a grantee to pay—

19 (1) costs associated with construction and the ac20 quisition of equipment, and other capital costs relat21 ing to the expansion of schools of veterinary medicine,

22 departments of comparative medicine, departments of

23 veterinary science, or entities offering residency train24 ing programs; or

25 (2) capital costs associated with the expansion of

26 academic programs that offer postgraduate training
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1 for veterinarians or concurrent training for veteri2 nary students in specific areas of specialization.

3 (d) AUTHORIZATION OF APPROPRIATIONS.—There are

4 authorized to be appropriated to the Secretary such sums

5 as are necessary to carry out this section for each of fiscal

6 years 2008 through 2012.

7 SEC. 11015. ASSISTANCE TO BUILD LOCAL CAPACITY IN AG8 RICULTURAL BIOSECURITY PLANNING, PRE9 PAREDNESS, AND RESPONSE.

10 (a) ADVANCED TRAINING PROGRAMS.—

11 (1) GRANT ASSISTANCE.—The Secretary shall

12 provide grant assistance to support the development

13 and expansion of advanced training programs in ag14 ricultural biosecurity planning and response for food

15 science professionals and veterinarians.

16 (2) AUTHORIZATION OF APPROPRIATIONS.—

17 There are authorized to be appropriated to the Sec18 retary such sums as are necessary to carry out this

19 subsection for each of fiscal years 2008 through 2012.

20 (b) ASSESSMENT OF RESPONSE CAPABILITY.—

21 (1) GRANT AND LOAN ASSISTANCE.—The Sec22 retary shall provide grant and low-interest loan as23 sistance to States for use in assessing agricultural

24 disease response and food emergency response capa25 bilities.
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1 (2) AUTHORIZATION OF APPROPRIATIONS.—

2 There is authorized to be appropriated to carry out

3 this subsection $25,000,000 for each of fiscal years

4 2008 through 2012.

5 SEC. 11016. LIVE VIRUS OF FOOT AND MOUTH DISEASE RE6 SEARCH.

7 (a) IN GENERAL.—The Secretary shall issue a permit

8 required under section 12 of the Act of May 29, 1884 (21

9 U.S.C. 113a) to the Secretary of Homeland Security for

10 work on the live virus of foot and mouth disease at the Na11 tional Bio and Agro-Defense Laboratory (referred to in this

12 section as the ‘‘NBAF’’).

13 (b) LIMITATION.—The permit shall be valid unless the

14 Secretary finds that the study of live foot and mouth disease

15 virus at the NBAF is not being carried out in accordance

16 with the regulations issued by the Secretary pursuant to

17 the Agricultural Bioterrorism Protection Act of 2002 (7

18 U.S.C. 8401 et seq.).

19 (c) AUTHORITY.—The suspension, revocation, or other

20 impairment of the permit issued under this section—

21 (1) shall be made by the Secretary; and

22 (2) is a nondelegable function.

23 SEC. 11017. PLANT PROTECTION.

24 (a) CIVIL PENALTIES FOR VIOLATIONS.—Section

25 424(b)(1) of the Plant Protection Act (7 U.S.C. 7734(b)(2))
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1 is amended by striking subparagraphs (A) and (B) and in2 serting the following:

3 ‘‘(A) $50,000 in the case of any individual

4 (except that the civil penalty may not exceed

5 $1,000 in the case of an initial violation of this

6 title by an individual moving regulated articles

7 not for monetary gain);

8 ‘‘(B) $250,000 in the case of any other per9 son for each violation;

10 ‘‘(C) $500,000 for each violation adju11 dicated in a single proceeding;

12 ‘‘(D) $1,000,000 for each violation adju13 dicated in a single proceeding involving a geneti14 cally modified organism (as determined by the

15 Secretary); or

16 ‘‘(E) twice the gross gain or gross loss for

17 any violation, forgery, counterfeiting, unauthor18 ized use, defacing, or destruction of a certificate,

19 permit, or other document provided for in this

20 title that results in the person deriving pecu21 niary gain or causing pecuniary loss to an22 other.’’.

23 (b) TIMEFOR COMMENCING PROCEEDINGS.—Subtitle

24 B of the Plant Protection Act (7 U.S.C. 7731 et seq.) is

25 amended by adding at the end the following:
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1 ‘‘SEC. 427. TIME FOR COMMENCING PROCEEDINGS.

2 ‘‘An action, suit, or proceeding with respect to an al3 leged violation of this title shall not be considered unless

4 the action, suit, or proceeding is commenced not later than

5 5 years after the date the violation is initially discovered

6 by the Secretary.’’.

7 Subtitle B—Other Programs

8 SEC. 11051. FORECLOSURE.

9 (a) IN GENERAL.—Section 307 of the Consolidated

10 Farm and Rural Development Act (7 U.S.C. 1927) is

11 amended by adding at the end the following:

12 ‘‘(f) MORATORIUM.—

13 ‘‘(1) IN GENERAL.—Effective beginning on the

14 date of enactment of this subsection, there shall be in

15 effect a moratorium on all loan acceleration and fore16 closure proceedings instituted by the Department of

17 Agriculture against any farmer or rancher who—

18 ‘‘(A) has pending against the Department a

19 claim of discrimination; or

20 ‘‘(B) files a claim of discrimination against

21 the Department.

22 ‘‘(2) WAIVER OF INTEREST AND OFFSETS.—Dur23 ing the period of the moratorium, the Secretary shall

24 waive the accrual of interest and offsets on all loans

25 made under this subtitle for which loan acceleration
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1 or foreclosure proceedings have been instituted as de2 scribed in paragraph (1).

3 ‘‘(3) TERMINATION OF MORATORIUM.—The mor4 atorium shall terminate with respect to a claim of

5 discrimination by a farmer or rancher on the earlier

6 of—

7 ‘‘(A) the date the Secretary resolves the

8 claim; or

9 ‘‘(B) if the farmer or rancher appeals the

10 decision of the Secretary on the claim to a court

11 of competent jurisdiction, the date that the court

12 renders a final decision on the claim.

13 ‘‘(4) FAILURETO PREVAIL.—If a farmer or

14 rancher does not prevail on a claim of discrimination

15 described in paragraph (1), the farmer or rancher

16 shall be liable for any interest and offsets that accrued

17 during the period that the loan was in abeyance.’’.

18 (b) FORECLOSURE REPORT.—

19 (1) IN GENERAL.—Not later than 1 year after

20 the date of enactment of this Act, the Inspector Gen21 eral of the Department of Agriculture (referred to in

22 this subsection as the ‘‘Inspector General’’) shall de23 termine whether decisions of the Department to im24 plement foreclosure proceedings with respect to loans

25 made under subtitle A of the Consolidated Farm and
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1 Rural Development Act (7 U.S.C. 1922 et seq.) to so2 cially disadvantaged farmers or ranchers during the

3 5-year period preceding the date of enactment of this

4 Act were consistent and in conformity with the appli5 cable laws (including regulations) governing loan

6 foreclosures.

7 (2) REPORT.—Not later than 1 year after the

8 date of enactment of this Act, the Inspector General

9 shall submit to the Committee on Agriculture of the

10 House of Representatives and the Committee on Agri11 culture, Nutrition, and Forestry of the Senate a re12 port that describes the determination of the Inspector

13 General under paragraph (1).

14 SEC. 11052. OUTREACH AND TECHNICAL ASSISTANCE FOR

15 SOCIALLY DISADVANTAGED FARMERS AND

16 RANCHERS.

17 (a) IN GENERAL.—Section 2501 of the Food, Agri18 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

19 2279)) is amended—

20 (1) in subsection (a)—

21 (A) by striking paragraph (2) and inserting

22 the following:

23 ‘‘(2) REQUIREMENTS.—The outreach and tech24 nical assistance program under paragraph (1) shall

25 be used exclusively—
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1 ‘‘(A) to enhance coordination of the out2 reach, technical assistance, and education efforts

3 authorized under agriculture programs; and

4 ‘‘(B) to assist the Secretary in—

5 ‘‘(i) reaching socially disadvantaged

6 farmers and ranchers and prospective so7 cially disadvantaged farmers and ranchers

8 in a culturally and linguistically appro9 priate manner; and

10 ‘‘(ii) improving the participation of

11 those farmers and ranchers in Department

12 programs, as determined under section

13 2501A.’’;

14 (B) in paragraph (3)—

15 (i) in subparagraph (A), by striking

16 ‘‘entity to provide information’’ and insert17 ing ‘‘entity that has demonstrated an abil18 ity to carry out the requirements described

19 in paragraph (2) to provide outreach’’; and

20 (ii) by adding at the end the following:

21 ‘‘(D) RENEWAL OF CONTRACTS.—The Sec22 retary may provide for renewal of a grant, con23 tract, or other agreement under this section with

24 an eligible entity that—
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1 ‘‘(i) has previously received funding

2 under this section;

3 ‘‘(ii) has demonstrated an ability to

4 carry out the requirements described in

5 paragraph (2); and

6 ‘‘(iii) demonstrates to the satisfaction

7 of the Secretary that the entity will con8 tinue to fulfill the purposes of this section.

9 ‘‘(E) REVIEW OF PROPOSALS.—Notwith10 standing subparagraph (D), the Secretary shall

11 promulgate a regulation to establish criteria for

12 the review process for grants and cooperative

13 agreements (including multiyear grants), which

14 shall include a review eligible entities on an in15 dividual basis.

16 ‘‘(F) REPORT.—The Secretary shall submit

17 to Congress, and make publically available, an

18 annual report that describes—

19 ‘‘(i) the accomplishments of the pro20 gram under this section; and

21 ‘‘(ii) any gaps or problems in service

22 delivery as reported by grantees.’’; and

23 (C) in paragraph (4)—

24 (i) by striking subparagraph (A), and

25 inserting the following:
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1 ‘‘(A) AUTHORIZATION OF APPROPRIA2 TIONS.—There is authorized to be appropriated

3 to carry out this subsection $50,000,000 for each

4 of fiscal years 2008 through 2012.’’; and

5 (ii) by adding at the end the following:

6 ‘‘(C) LIMITATION ON USEOF FUNDS FOR

7 ADMINISTRATIVE EXPENSES.—Not more than 5

8 percent of the amounts made available under

9 this paragraph for a fiscal year may be used for

10 expenses related to administering the program

11 under this section.’’; and

12 (2) in subsection (e)(5)(A)—

13 (A) in clause (i), by striking ‘‘has dem14 onstrated experience in’’ and inserting ‘‘has a

15 reputation for, and has demonstrated experience

16 in,’’; and

17 (B) in clause (ii)—

18 (i) by inserting ‘‘and on behalf of’’ be19 fore ‘‘socially’’; and

20 (ii) by striking ‘‘2-year’’ and inserting

21 ‘‘3-year’’.

22 (b) COORDINATION WITH OUTREACH.—

23 (1) IN GENERAL.—Not later than 18 months

24 after the date of enactment of this Act, the Secretary

25 shall develop a plan to join and relocate—
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1 (A) the outreach and technical assistance

2 program established under section 2501 of the

3 Food, Agriculture, Conservation, and Trade Act

4 of 1990 (7 U.S.C. 2279); and

5 (B) the Office of Outreach of the Depart6 ment of Agriculture.

7 (2) CONSULTATION.—In preparing the plan

8 under paragraph (1), the Secretary shall, in consulta9 tion with eligible entities under section 2501 of the

10 Food, Agriculture, Conservation, and Trade Act of

11 1990 (7 U.S.C. 2279)—

12 (A) decide the most appropriate permanent

13 location for the programs described in paragraph

14 (1); and

15 (B) locate both programs together at that lo16 cation.

17 (3) REPORT.—After the relocation described in

18 this subsection is completed, the Secretary shall sub19 mit to Congress a report that includes information

20 describing the new location of the programs.

21 SEC. 11053. ADDITIONAL CONTRACTING AUTHORITY.

22 Section 2501(a)(3) of the Food, Agriculture, Conserva23 tion, and Trade Act of 1990 (7 U.S.C. 2279(a)(3)) (as

24 amended by section 11052(a)(1)(B)(ii)) is amended by add25 ing at the end the following:
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1 ‘‘(G) ADDITIONAL CONTRACTING AUTHOR2 ITY.—

3 ‘‘(i) IN GENERAL.—The Secretary shall

4 provide to the Office of Outreach of the De5 partment of Agriculture, the Natural Re6 sources Conservation Service, the Farm

7 Service Agency, the Risk Management Agen8 cy, the Forest Service, the Food Safety and

9 Inspection Service, and such other agencies

10 and programs as the Secretary determines

11 to be necessary, the authority to make

12 grants and enter into contracts and cooper13 ative agreements with community-based or14 ganizations that meet the definition of an

15 eligible entity under subsection (e).

16 ‘‘(ii) MATCHING FUNDS.—The Sec17 retary is not required to require matching

18 funds for a grant made, or a contract or co19 operative agreement entered into, under this

20 subparagraph.

21 ‘‘(iii) INTERAGENCY FUNDING.—Not22 withstanding any other provision of law

23 (including regulations), any Federal agency

24 may participate in any grant made, or con25 tract or cooperative agreement entered into,
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1 under this subsection by contributing funds,

2 if the head of the agency determines that the

3 objectives of the grant, contract, or coopera4 tive agreement will further the authorized

5 programs of the contributing agency.’’.

6 SEC. 11054. IMPROVED PROGRAM DELIVERY BY THE DE7 PARTMENT OF AGRICULTURE ON INDIAN

8 RESERVATIONS.

9 Section 2501(g)(1) of the Food, Agriculture, Conserva10 tion, and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is

11 amended by striking the second sentence.

12 SEC. 11055. ACCURATE DOCUMENTATION IN THE CENSUS

13 OF AGRICULTURE AND CERTAIN STUDIES.

14 Section 2501 of the Food, Agriculture, Conservation,

15 and Trade Act of 1990 (7 U.S.C. 2279) is amended by add16 ing at the end the following:

17 ‘‘(h) ACCURATE DOCUMENTATION.—The Secretary

18 shall ensure, to the maximum extent practicable, that the

19 Census of Agriculture and studies carried out by the Eco20 nomic Research Service accurately document the number,

21 location, and economic contributions of socially disadvan22 taged farmers and ranchers in agricultural production.’’.
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1 SEC. 11056. IMPROVED DATA REQUIREMENTS.

2 Section 2501A of the Food, Agriculture, Conservation,

3 and Trade Act of 1990 (7 U.S.C. 2279–1) is amended by

4 striking subsection (c) and inserting the following:

5 ‘‘(c) COMPILATION OF PROGRAM PARTICIPATION

6 DATA.—

7 ‘‘(1) ANNUAL REQUIREMENT.—For each county

8 and State in the United States, the Secretary of Agri9 culture (referred to in this section as the ‘Secretary’)

10 shall annually compile program application and par11 ticipation rate data regarding socially disadvantaged

12 farmers and ranchers by computing for each program

13 of the Department of Agriculture that serves agricul14 tural producers or landowners—

15 ‘‘(A) raw numbers of applicants and par16 ticipants by race, ethnicity, and gender, subject

17 to appropriate privacy protections, as deter18 mined by the Secretary; and

19 ‘‘(B) the application and participation

20 rate, by race, ethnicity, and gender, as a percent21 age of the total participation rate of all agricul22 tural producers and landowners.

23 ‘‘(2) AUTHORITY TO COLLECT DATA.—The heads

24 of the agencies of the Department of Agriculture shall

25 collect and transmit to the Secretary any data, in26 cluding data on race, gender, and ethnicity, that the
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1 Secretary determines to be necessary to carry out

2 paragraph (1).

3 ‘‘(3) REPORT.—Using the technologies and sys4 tems of the National Agricultural Statistics Service,

5 the Secretary shall compile and present the data re6 quired under paragraph (1) for each program de7 scribed in that paragraph in a manner that includes

8 the raw numbers and participation rates for—

9 ‘‘(A) the entire United States;

10 ‘‘(B) each State; and

11 ‘‘(C) each county in each State.

12 ‘‘(d) LIMITATIONS ON USEOF DATA.—

13 ‘‘(1) IN GENERAL.—In carrying out this section,

14 the Secretary shall not disclose the names or indi15 vidual data of any program participant.

16 ‘‘(2) AUTHORIZED USES.—The data under this

17 section shall be used exclusively for the purposes de18 scribed in subsection (a).

19 ‘‘(3) LIMITATION.—Except as otherwise provided,

20 the data under this section shall not be used for the

21 evaluation of individual applications for assistance.’’.

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

23 Section 2501A of the Food, Agriculture, Conservation,

24 and Trade Act of 1990 (7 U.S.C. 2279–1) (as amended by
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1 section 11056) is amended by adding at the end the fol2 lowing:

3 ‘‘(e) RECEIPT FOR SERVICE OR DENIAL OF SERV4 ICE.—In any case in which a farmer or rancher, or a pro5 spective farmer or rancher, in person or in writing, requests

6 from the Farm Service Agency or the Natural Resources

7 Conservation Service of the Department of Agriculture any

8 benefit or service offered by the Department to agricultural

9 producers or landowners, and at the time of the request re10 quests a receipt, the Secretary of Agriculture shall issue,

11 on the date of the request, a receipt to the farmer or rancher,

12 or prospective farmer or rancher, that contains—

13 ‘‘(1) the date, place, and subject of the request;

14 and

15 ‘‘(2) the action taken, not taken, or recommended

16 to the farmer or rancher or prospective farmer or

17 rancher.’’.

18 SEC. 11058. NATIONAL APPEALS DIVISION.

19 Section 280 of the Department of Agriculture Reorga20 nization Act of 1994 (7 U.S.C. 7000) is amended—

21 (1) by striking ‘‘On the return’’ and inserting

22 the following:

23 ‘‘(a) IN GENERAL.—On the return’’; and

24 (2) by adding at the end the following:

25 ‘‘(b) REPORTS.—
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1 ‘‘(1) IN GENERAL.—Not later than 180 days

2 after the date of enactment of this subsection, and

3 every 180 days thereafter, the head of each agency

4 shall submit to the Committee on Agriculture of the

5 House of Representatives and the Committee on Agri6 culture, Nutrition, and Forestry of the Senate, and

7 publish on the website of the Department, a report

8 that includes—

9 ‘‘(A) a description of all cases returned to

10 the agency during the period covered by the re11 port pursuant to a final determination of the

12 Division;

13 ‘‘(B) the status of implementation of each

14 final determination; and

15 ‘‘(C) if the final determination has not been

16 implemented—

17 ‘‘(i) the reason that the final deter18 mination has not been implemented; and

19 ‘‘(ii) the projected date of implementa20 tion of the final determination.

21 ‘‘(2) UPDATES.—Each month, the head of each

22 agency shall publish on the website of the Department

23 any updates to the reports submitted under para24 graph (1).’’.
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1 SEC. 11059. FARMWORKER COORDINATOR.

2 (a) IN GENERAL.—Subtitle B of title II of the Depart3 ment of Agriculture Reorganization Act of 1994 is amended

4 by inserting after section 226A (7 U.S.C. 6933) the fol5 lowing:

6 ‘‘SEC. 226B. FARMWORKER COORDINATOR.

7 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

8 within the Department the position of Farmworker Coordi9 nator (referred to in this section as the ‘Coordinator’).

10 ‘‘(b) DUTIES.—The Secretary shall delegate to the Co11 ordinator responsibility for—

12 ‘‘(1) assisting in administering the program es13 tablished by section 2281 of the Food, Agriculture,

14 Conservation, and Trade Act of 1990 (42 U.S.C.

15 5177a);

16 ‘‘(2) serving as a liaison to community-based

17 nonprofit organizations that represent and have dem18 onstrated experience serving low-income migrant and

19 seasonal farmworkers;

20 ‘‘(3) coordinating with the Department, other

21 Federal agencies, and State and local governments to

22 ensure that farmworker needs are assessed and met

23 during declared disasters and other emergencies;

24 ‘‘(4) consulting with the Office of Small Farm

25 Coordination, Office of Outreach, Outreach Coordina26 tors, and other entities to better integrate farmworker
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1 perspectives, concerns, and interests into the ongoing

2 programs of the Department;

3 ‘‘(5) consulting with appropriate institutions on

4 research, program improvements, or agricultural edu5 cation opportunities that assist low-income and mi6 grant seasonal farmworkers; and

7 ‘‘(6) ensuring that farmworkers have access to

8 services and support to enter agriculture as pro9 ducers.

10 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are

11 authorized to be appropriated such sums as are necessary

12 to carry out this section.’’.

13 (b) CONFORMING AMENDMENT.—Section 296(b) of the

14 Department of Agriculture Reorganization Act of 1994 (7

15 U.S.C. 7014(b)) (as amended by section 7401(c)(1)) is

16 amended by adding at the end the following:

17 ‘‘(7) the authority of the Secretary to establish in

18 the Department a position of Farmworker Coordi19 nator in accordance with section 226B.’’.

20 SEC. 11060. CONGRESSIONAL BIPARTISAN FOOD SAFETY

21 COMMISSION.

22 (a) COMMISSION.—

23 (1) ESTABLISHMENT.—

24 (A) IN GENERAL.—There is established a

25 commission to be known as the ‘‘Congressional
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1 Bipartisan Food Safety Commission’’ (referred

2 to in this section as the ‘‘Commission’’).

3 (B) PURPOSE.—The purpose of the Com4 mission shall be to act in a bipartisan, con5 sensus-driven fashion—

6 (i) to review the food safety system of

7 the United States;

8 (ii) to prepare a report that—

9 (I) summarizes information about

10 the food safety system as in effect as of

11 the date of enactment of this Act; and

12 (II) makes recommendations on

13 ways—

14 (aa) to modernize the food

15 safety system of the United States;

16 (bb) to harmonize and up17 date food safety statutes;

18 (cc) to improve Federal,

19 State, local, and interagency co20 ordination of food safety per21 sonnel, activities, budgets, and

22 leadership;

23 (dd) to best allocate scarce

24 resources according to risk;
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1 (ee) to ensure that regula2 tions, directives, guidance, and

3 other standards and requirements

4 are based on best-available science

5 and technology;

6 (ff) to emphasize preventative

7 rather than reactive strategies;

8 and

9 (gg) to provide to Federal

10 agencies funding mechanisms nec11 essary to effectively carry out food

12 safety responsibilities; and

13 (iii) to draft specific statutory lan14 guage, including detailed summaries of the

15 language and budget recommendations, that

16 would implement the recommendations of

17 the Commission.

18 (2) MEMBERSHIP.—

19 (A) COMPOSITION.—The Commission shall

20 be composed of 19 members.

21 (B) ELIGIBILITY.—Members of the Commis22 sion shall—

23 (i) have specialized training, edu24 cation, or significant experience in at least

25 1 of the areas of—
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1 (I) food safety research;

2 (II) food safety law and policy;

3 and

4 (III) program design and imple5 mentation;

6 (ii) consist of—

7 (I) the Secretary of Agriculture

8 (or a designee);

9 (II) the Secretary of Health and

10 Human Services (or a designee);

11 (III) 1 Member of the House of

12 Representatives; and

13 (IV) 1 Member of the Senate; and

14 (V) 15 additional members that

15 include, to the maximum extent prac16 ticable, representatives of—

17 (aa) consumer organizations;

18 (bb) agricultural and live19 stock production;

20 (cc) public health profes21 sionals;

22 (dd) State regulators;

23 (ee) Federal employees; and
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1 (ff) the livestock and food

2 manufacturing and processing in3 dustry.

4 (C) APPOINTMENTS.—

5 (i) IN GENERAL.—The appointment of

6 the members of the Commission shall be

7 made not later than 60 days after the date

8 of enactment of this Act.

9 (ii) CERTAIN APPOINTMENTS.—Of the

10 members of the Commission described in

11 subparagraph (B)(ii)(V)—

12 (I) 2 shall be appointed by the

13 President;

14 (II) 7 shall be appointed by a

15 working group consisting of—

16 (aa) the Chairman of each of

17 the Committee on Agriculture,

18 Nutrition, and Forestry and the

19 Committee on Health, Education,

20 Labor, and Pensions of the Sen21 ate;

22 (bb) the Chairman of each of

23 the Committee on Agriculture and

24 the Committee on Energy and
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1 Commerce of the House of Rep2 resentatives;

3 (cc) the Speaker of the House

4 of Representatives; and

5 (dd) the Majority Leader of

6 the Senate; and

7 (III) 6 shall be appointed by a

8 working group consisting of—

9 (aa) the Ranking Member of

10 each of the Committees described

11 in items (aa) and (bb) of sub12 clause (II);

13 (bb) the Minority Leader of

14 the House of Representatives; and

15 (cc) the Minority Leader of

16 the Senate.

17 (D) TERM.—A member of the Commission

18 shall be appointed for the life of the Commission.

19 (E) VACANCIES.—A vacancy on the

20 Commission—

21 (i) shall not affect the powers of the

22 Commission; and

23 (ii) shall be filled in the same manner

24 as the original appointment was made.

25 (3) MEETINGS.—
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1 (A) INITIAL MEETING.—Except as provided

2 in subparagraph (B), the initial meeting of the

3 Commission shall be conducted in Washington,

4 District of Columbia, not later than 30 days

5 after the date of appointment of the final mem6 ber of the Commission under paragraph (2)(C).

7 (B) MEETING FOR PARTIAL APPOINT8 MENT.—If, as of the date that is 90 days after

9 the date of enactment of this Act, all members of

10 the Commission have not been appointed under

11 paragraph (2)(C), but at least 8 members have

12 been appointed, the Commission may hold the

13 initial meeting of the Commission.

14 (C) OTHER MEETINGS.—The Commission

15 shall—

16 (i) hold a series of at least 5 stake17 holder meetings to solicit public comment,

18 including—

19 (I) at least 1 stakeholder meeting,

20 to be held in Washington, District of

21 Columbia; and

22 (II) at least 4 stakeholder meet23 ings, to be held in various regions of

24 the United States; and

25 (ii) meet at the call of—
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1 (I) the Chairperson;

2 (II) the Vice-Chairperson; or

3 (III) a majority of the members of

4 the Commission.

5 (D) PUBLIC PARTICIPATION; INFORMA6 TION.—To the maximum extent practicable—

7 (i) each meeting of the Commission

8 shall be open to the public; and

9 (ii) all information from a meeting of

10 the Commission shall be recorded and made

11 available to the public.

12 (E) QUORUM.—With respect to meetings of

13 the Commission—

14 (i) a majority of the members of the

15 Commission shall constitute a quorum for

16 the conduct of business of the Commission;

17 but

18 (ii) for the purpose of a stakeholder

19 meeting described in subparagraph (C)(i), 4

20 or more members of the Commission shall

21 constitute a quorum.

22 (F) FACILITATOR.—The Commission shall

23 contract with a nonpolitical, disinterested third24 party entity to serve as a meeting facilitator.
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1 (4) CHAIRPERSON AND VICE-CHAIRPERSON.—At

2 the initial meeting of the Commission, the members of

3 the Commission shall select from among the members

4 a Chairperson and Vice-Chairperson of the Commis5 sion.

6 (b) DUTIES.—

7 (1) RECOMMENDATIONS.—The Commission shall

8 review and consider the statutes, studies, and reports

9 described in paragraph (2) for the purpose of under10 standing the food safety system of the United States

11 in existence as of the date of enactment of this Act.

12 (2) STATUTES, STUDIES, AND REPORTS.—The

13 statutes, studies, and reports referred to in paragraph

14 (1) include—

15 (A) with respect with respect to laws ad16 ministered by the Secretary of Agriculture—

17 (i) the Federal Seed Act (7 U.S.C.

18 1551 et seq.);

19 (ii) the Agricultural Marketing Act of

20 1946 (7 U.S.C. 1621 et seq.);

21 (iii) the Animal Health Protection Act

22 (7 U.S.C. 8301 et seq.);

23 (iv) the Lacey Act Amendments of

24 1981 (16 U.S.C. 3371 et seq.);
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1 (v) the Poultry Products Inspection

2 Act (21 U.S.C. 451 et seq.);

3 (vi) the Federal Meat Inspection Act

4 (21 U.S.C. 601 et seq.); and

5 (vii) the Egg Products Inspection Act

6 (21 U.S.C. 1031 et seq.);

7 (B) with respect to laws administered by

8 the Secretary of the Treasury, the Federal Alco9 hol Administration Act (27 U.S.C. 201 et seq.);

10 (C) with respect to laws administered by the

11 Federal Trade Commission, the Act of September

12 26, 1914 (15 U.S.C. 41 et seq.);

13 (D) with respect to laws administered by

14 the Secretary of Health and Human Services—

15 (i) chapters I through IV of the Federal

16 Food, Drug, and Cosmetic Act (21 U.S.C.

17 301 et seq.);

18 (ii) the Public Health Service Act (42

19 U.S.C. 201 et seq.);

20 (iii) the Import Milk Act (21 U.S.C.

21 141 et seq.);

22 (iv) the Food Additives Amendment of

23 1958 (Public Law 85–929; 52 Stat. 1041);

24 (v) the Fair Packaging and Labeling

25 Act (Public Law 89–755; 80 Stat. 1296);
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1 (vi) the Infant Formula Act of 1980

2 (21 U.S.C. 301 note; Public Law 96–359);

3 (vii) the Pesticide Monitoring Improve4 ments Act of 1988 (Public Law 100–418;

5 102 Stat. 1411);

6 (viii) the Nutrition Labeling and Edu7 cation Act of 1990 (21 U.S.C. 301 note;

8 Public Law 101–535);

9 (ix) the Food and Drug Administra10 tion Modernization Act of 1997 (21 U.S.C.

11 301 note; Public Law 105–115); and

12 (x) the Public Health Security and

13 Bioterrorism Preparedness and Response

14 Act of 2002 (21 U.S.C. 201 note; Public

15 Law 107–188);

16 (E) with respect to laws administered by

17 the Attorney General, the Federal Anti-Tam18 pering Act (18 U.S.C. 1365 note; Public Law

19 98–127);

20 (F) with respect to laws administered by the

21 Administrator of the Environmental Protection

22 Agency—

23 (i) the Federal Insecticide, Fungicide,

24 and Rodenticide Act (7 U.S.C. 136 et seq.);
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1 (ii) the Food Quality Protection Act of

2 1996 (7 U.S.C. 136 note; Public Law 104–

3 170);

4 (iii) the Toxic Substances Control Act

5 (15 U.S.C. 2601 et seq.); and

6 (iv) the Safe Drinking Water Act of

7 1974 (42 U.S.C. 201 note; Public Law 93–

8 523); and

9 (G) with respect to laws administered by

10 the Secretary of Transportation, chapter 57 of

11 subtitle II of title 49, United States Code (relat12 ing to sanitary food transportation); and

13 (H) with respect to Government studies on

14 food safety—

15 (i) the report of the National Acad16 emies of Science entitled ‘‘Ensuring Safe

17 Food from Production to Consumption’’

18 and dated 1998;

19 (ii) the report of the National Acad20 emies of Science entitled ‘‘Scientific Cri21 teria to Ensure Safe Food’’ and dated 2003;

22 (iii) reports of the Office of the Inspec23 tor General of the Department of Agri24 culture, including—
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1 (I) report 24601–0008–CH, enti2 tled ‘‘Egg Products Processing Inspec3 tion’’ and dated September 18, 2007;

4 (II) report 24005–1–AT, entitled

5 ‘‘Food Safety and Inspection Service—

6 State Meat and Poultry Inspection

7 Programs’’ and dated September 27,

8 2006;

9 (III) report 24601–06–CH, enti10 tled ‘‘Food Safety and Inspection Serv11 ice’s In-Plant Performance System’’

12 and dated March 28, 2006;

13 (IV) report 24601–05–AT, entitled

14 ‘‘Hazard Analysis and Critical Control

15 Point Implementation at Very Small

16 Plants’’ and dated June 24, 2005;

17 (V) report 24601–04–HY, entitled

18 ‘‘Food Safety and Inspection Service

19 Oversight of the 2004 Recall by Quaker

20 Maid Meats, Inc.’’ and dated May 18,

21 2005;

22 (VI) report 24501–01–FM, enti23 tled ‘‘Food Safety and Inspection Serv24 ice Application Controls—Performance
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1 Based Inspection System’’ and dated

2 November 24, 2004;

3 (VII) report 24601–03–CH, enti4 tled ‘‘Food Safety and Inspection Serv5 ice Use of Food Safety Information’’

6 and dated September 30, 2004;

7 (VIII) report 24601–03–HY, enti8 tled ‘‘Food Safety and Inspection Serv9 ice Effectiveness Checks for the 2002

10 Pilgrim’s Pride Recall’’ and dated

11 June 29, 2004;

12 (IX) report 24601–02–HY, enti13 tled ‘‘Food Safety and Inspection Serv14 ice Oversight of the Listeria Outbreak

15 in the Northeastern United States’’

16 and dated June 9, 2004;

17 (X) report 24099–05–HY, entitled

18 ‘‘Food Safety and Inspection Service

19 Imported Meat and Poultry Equiva20 lence Determinations Phase III’’ and

21 dated December 29, 2003;

22 (XI) report 24601–2–KC, entitled

23 ‘‘Food Safety and Inspection Service—

24 Oversight of Production Process and

25 Recall at Conagra Plant (Establish-
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1 ment 969)’’ and dated September 30,

2 2003;

3 (XII) report 24601–1–Ch, entitled

4 ‘‘Laboratory Testing Of Meat And

5 Poultry Products’’ and dated June 21,

6 2000;

7 (XIII) report 24001–3–At, 24601–

8 1–Ch, 24099–3–Hy, 24601–4–At, enti9 tled ‘‘Food Safety and Inspection Serv10 ice: HACCP Implementation, Pathogen

11 Testing Program, Foreign Country

12 Equivalency, Compliance Activities’’

13 and dated June 21, 2000; and

14 (XIV) report 24001–3–At, entitled

15 ‘‘Implementation of the Hazard Anal16 ysis and Critical Control Point Sys17 tem’’ and dated June 21, 2000; and

18 (I) with respect to reports prepared by the

19 Government Accountability Office, the reports

20 designated—

21 (i) GAO–05–212;

22 (ii) GAO–02–47T;

23 (iii) GAO/T–RCED–94–223;

24 (iv) GAO/RCED–99–80;

25 (v) GAO/T–RCED–98–191;
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1 (vi) GAO/RCED–98–103;

2 (vii) GAO–07–785T;

3 (viii) GAO–05–51;

4 (ix) GAO/T–RCED–94–311;

5 (x) GAO/RCED–92–152;

6 (xi) GAO/T–RCED–99–232;

7 (xii) GAO/T–RCED–98–271;

8 (xiii) GAO–07–449T;

9 (xiv) GAO–05–213;

10 (xv) GAO–04–588T;

11 (xvi) GAO/RCED–00–255;

12 (xvii) GAO/RCED–00–195; and

13 (xviii) GAO/T–RCED–99–256.

14 (3) REPORT.—Not later than 360 days after the

15 date on which the Commission first meets, the Com16 mission shall submit to the President and Congress a

17 report that includes the report and summaries, statu18 tory language recommendations, and budget rec19 ommendations described in clauses (ii) and (iii) of

20 subsection (a)(1)(B).

21 (c) POWERS OF THE COMMISSION.—

22 (1) HEARINGS.—The Commission or, at the di23 rection of the Commission, any member of the Com24 mission, may, for the purpose of carrying out this

25 section—
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1 (A) hold such hearings, meet and act at

2 such times and places, take such testimony, re3 ceive such evidence, and administer such oaths;

4 and

5 (B) require the attendance and testimony of

6 such witnesses and the production of such books,

7 records, correspondence, memoranda, papers,

8 documents, tapes, and materials;

9 as the Commission or member considers advisable.

10 (2) INFORMATION FROM FEDERAL AGENCIES.—

11 (A) IN GENERAL.—The Commission may se12 cure directly, from any Federal agency, such in13 formation as the Commission considers necessary

14 to carry out this section.

15 (B) PROVISION OF INFORMATION.—

16 (i) IN GENERAL.—Subject to subpara17 graph (C), on the request of the Commis18 sion, the head of a Federal agency described

19 in subparagraph (A) shall expeditiously

20 furnish information requested by the Com21 mission to the Commission.

22 (ii) ADMINISTRATION.—The furnishing

23 of information by a Federal agency to the

24 Commission shall not be considered a waiv25 er of any exemption available to the agency
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1 under section 552 of title 5, United States

2 Code.

3 (C) INFORMATION TO BE KEPT CONFIDEN4 TIAL.—For purposes of section 1905 of title 18,

5 United States Code—

6 (i) the Commission shall be considered

7 an agency of the Federal Government; and

8 (ii) any individual employed by an in9 dividual, entity, or organization that is a

10 party to a contract with the Commission

11 under this section shall be considered an

12 employee of the Commission.

13 (d) COMMISSION PERSONNEL MATTERS.—

14 (1) MEMBERS.—

15 (A) NON-FEDERAL EMPLOYEES.—A member

16 of the Commission who is not an officer or em17 ployee of the Federal Government shall be com18 pensated at a rate equal to the daily equivalent

19 of the annual rate of basic pay prescribed for

20 level IV of the Executive Schedule under section

21 5315 of title 5, United States Code, for each day

22 (including travel time) during which the member

23 is engaged in the performance of the duties of the

24 Commission.
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1 (B) FEDERAL EMPLOYEES.—A member of

2 the Commission who is an officer or employee of

3 the Federal Government shall serve without com4 pensation in addition to the compensation re5 ceived for the services of the member as an officer

6 or employee of the Federal Government.

7 (C) TRAVEL EXPENSES.—A member of the

8 Commission shall be allowed travel expenses, in9 cluding per diem in lieu of subsistence, at rates

10 authorized for an employee of an agency under

11 subchapter I of chapter 57 of title 5, United

12 States Code, while away from the home or reg13 ular place of business of the member in the per14 formance of the duties of the Commission.

15 (2) STAFF.—

16 (A) EXECUTIVE DIRECTOR.—Not later than

17 30 days after the Chairperson and Vice-Chair18 person of the Commission are selected under sub19 section (a)(4), the Chairperson and Vice-Chair20 person shall jointly select an individual to serve

21 as executive director of the Commission.

22 (B) ADDITIONAL STAFF.—The Chairperson

23 of the Commission may, without regard to the

24 civil service laws (including regulations), ap25 point and terminate the appointment of such
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1 other additional personnel as are necessary to

2 enable the Commission to perform the duties of

3 the Commission.

4 (C) CONFIRMATION OF EXECUTIVE DIREC5 TOR.—The employment of an executive director

6 under this paragraph shall be subject to con7 firmation by the Commission.

8 (D) COMPENSATION.—

9 (i) IN GENERAL.—Except as provided

10 in clause (ii), the Chairperson of the Com11 mission may fix the compensation of the ex12 ecutive director and other personnel without

13 regard to the provisions of chapter 51 and

14 subchapter III of chapter 53 of title 5,

15 United States Code, relating to classifica16 tion of positions and General Schedule pay

17 rates.

18 (ii) MAXIMUM RATEOF PAY.—The rate

19 of pay for the executive director and other

20 personnel shall not exceed the rate payable

21 for level II of the Executive Schedule under

22 section 5316 of title 5, United States Code.

23 (3) DETAIL OF FEDERAL GOVERNMENT EMPLOY24 EES.—
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1 (A) IN GENERAL.—An employee of the Fed2 eral Government may be detailed to the Commis3 sion, without reimbursement, for such period of

4 time as is permitted by law.

5 (B) CIVIL SERVICE STATUS.—The detail of

6 the employee shall be without interruption or

7 loss of civil service status or privilege.

8 (4) PROCUREMENT OF TEMPORARY AND INTER9 MITTENT SERVICES.—The Chairperson, Vice-Chair10 person, and executive director of the Commission may

11 procure temporary and intermittent services in ac12 cordance with section 3109(b) of title 5, United States

13 Code, at rates for individuals that do not exceed the

14 daily equivalent of the annual rate of basic pay pre15 scribed for level IV of the Executive Schedule under

16 section 5316 of that title.

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There are

18 authorized to be appropriated such sums as are necessary

19 to carry out this section.

20 (f) TERMINATION.—The Commission shall terminate

21 on the date that is 60 days after the date on which the Com22 mission submits the report under subsection (b)(2).
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1 SEC. 11061. EMERGENCY GRANTS TO ASSIST LOW-INCOME

2 MIGRANT AND SEASONAL FARMWORKERS.

3 Section 2281 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (42 U.S.C. 5177a) is amended to

5 read as follows:

6 ‘‘SEC. 2281. EMERGENCY GRANTS TO ASSIST LOW-INCOME

7 MIGRANT AND SEASONAL FARMWORKERS.

8 ‘‘(a) DEFINITIONS.—In this section:

9 ‘‘(1) ELIGIBLEENTITY.—The term ‘eligible enti10 ty’ means a public agency, community-based organi11 zation, or network of community-based organizations

12 with tax-exempt status under section 501(c)(3) of the

13 Internal Revenue Code of 1986, that has at least 5

14 years of demonstrated experience in representing and

15 providing emergency services to low-income migrant

16 or seasonal farmworkers.

17 ‘‘(2) LOW-INCOMEMIGRANT OR SEASONAL FARM18 WORKER.—The term ‘low-income migrant or seasonal

19 farmworker’ means an individual—

20 ‘‘(A) who has, during any consecutive 12-

21 month period within the preceding 24-month pe22 riod, performed farm work for wages;

‘‘(B) who has received not less than 1 23 ⁄2 of

24 the total income of the individual from, or been

employed at least 1 25 ⁄2 of total work time in, farm

26 work; and
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1 ‘‘(C) whose annual family income during

2 the 12-month period described in paragraph (1)

3 does not exceed the higher of, as determined by

4 the Secretary—

5 ‘‘(i) 185 percent of the most recent an6 nual Federal Poverty Income Guidelines

7 published by the Department of Health and

8 Human Services; or

9 ‘‘(ii) 70 percent of the lower living

10 standard income level.

11 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

12 the Secretary of Agriculture.

13 ‘‘(b) GRANTS AVAILABLE.—The Secretary may make

14 grants to eligible entities if the Secretary determines that

15 a local, State, or national emergency or disaster has caused

16 low-income migrant or seasonal farmworkers—

17 ‘‘(1) to lose income;

18 ‘‘(2) to be unable to work; or

19 ‘‘(3) to stay home or return home in anticipa20 tion of work shortages.

21 ‘‘(c) USEOF FUNDS.—As a condition of receiving a

22 grant under subsection (b), an eligible entity shall use the

23 grant to provide emergency services to low-income migrant

24 or seasonal farmworkers, with a focus on—
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1 ‘‘(1) assistance that allows low-income migrant

2 or seasonal farmworkers to meet or access other re3 sources to meet short-term emergency family needs for

4 food, clothing, employment, transportation, and hous5 ing;

6 ‘‘(2) assistance that allows low-income and mi7 grant seasonal farmworkers to remain in a disaster

8 area; and

9 ‘‘(3) such other priorities that the Secretary de10 termines to be appropriate.

11 ‘‘(d) DISASTER FUND.—

12 ‘‘(1) IN GENERAL.—The Secretary shall main13 tain a disaster fund of $2,000,000 to be used for im14 mediate assistance for events described in subsection

15 (b).

16 ‘‘(2) FUNDING.—There are authorized to be ap17 propriated to the Secretary such sums as are nec18 essary to maintain the disaster fund at $2,000,000 for

19 each of fiscal years 2008 through 2012.’’.

20 SEC. 11062. GRANTS TO REDUCE PRODUCTION OF

21 METHAMPHETAMINES FROM ANHYDROUS AM22 MONIA.

23 (a) DEFINITIONS.—In this section:

24 (1) ELIGIBLEENTITY.—The term ‘‘eligible enti25 ty’’ means—
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1 (A) a producer of agricultural commodities;

2 (B) a cooperative association, a majority of

3 the members of which produce or process agricul4 tural commodities; or

5 (C) a person in the trade or business of—

6 (i) selling an agricultural product (in7 cluding an agricultural chemical) at retail,

8 predominantly to farmers and ranchers; or

9 (ii) aerial and ground application of

10 an agricultural chemical.

11 (2) NURSETANK.—The term ‘‘nurse tank’’ shall

12 be considered to be a cargo tank (within the meaning

13 of section 173.315(m) of title 49, Code of Federal Reg14 ulations, as in effect as of the date of the enactment

15 of this Act).

16 (b) GRANT AUTHORITY.—The Secretary may make a

17 grant to an eligible entity to enable the eligible entity to

18 obtain and add to an anhydrous ammonia fertilizer nurse

19 tank a physical lock or a substance to reduce the amount

20 of methamphetamine that can be produced from any anhy21 drous ammonia removed from the nurse tank.

22 (c) GRANT AMOUNT.—The amount of a grant made

23 under this section to an eligible entity shall be the product

24 obtained by multiplying—
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1 (1) an amount not less than $40 and not more

2 than $60, as determined by the Secretary; and

3 (2) the number of fertilizer nurse tanks of the eli4 gible entity.

5 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

6 authorized to be appropriated to the Secretary to make

7 grants under this section $15,000,000 for the period of fiscal

8 years 2008 through 2012.

9 SEC. 11063. INVASIVE SPECIES MANAGEMENT, HAWAII.

10 (a) DEFINITIONS.—In this section:

11 (1) SECRETARIES.—The term ‘‘Secretaries’’

12 means—

13 (A) the Secretary of the Interior;

14 (B) the Secretary of Agriculture; and

15 (C) the Secretary of Homeland Security.

16 (2) SECRETARY CONCERNED.—The term ‘‘Sec17 retary concerned’’ means—

18 (A) the Secretary of the Interior, with re19 spect to matters under the jurisdiction of the De20 partment of the Interior;

21 (B) the Secretary of Agriculture, with re22 spect to matters under the jurisdiction of the De23 partment of Agriculture; and
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1 (C) the Secretary of Homeland Security,

2 with respect to matters under the jurisdiction of

3 the Department of Homeland Security.

4 (3) STATE.—The term ‘‘State’’ means the State

5 of Hawaii.

6 (b) CONTROLLING INTRODUCTION AND SPREAD OF

7 INVASIVE SPECIES AND DISEASES IN THE STATE.—

8 (1) CONSULTATION AND COOPERATION.—The

9 Secretaries concerned shall—

10 (A) with respect to restricting the introduc11 tion or movement of invasive species and dis12 eases into the State, consult and cooperate with

13 the State; and

14 (B) in carrying out the activities described

15 in this subsection, consult and cooperate with

16 appropriate agencies and officers with experience

17 relating to quarantine procedures, natural re18 sources, conservation, and law enforcement of—

19 (i) the Department of Homeland Secu20 rity;

21 (ii) the Department of Commerce;

22 (iii) the United States Treasury; and

23 (iv) the State.
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1 (2) DEVELOPMENT OF COLLABORATIVE FEDERAL

2 AND STATE PROCEDURES.—The Secretaries, in col3 laboration with the State, shall—

4 (A) develop procedures to minimize the in5 troduction of invasive species into the State; and

6 (B) submit to Congress annual reports de7 scribing progress made and results achieved in

8 carrying out the procedures.

9 (3) EXPEDITED CONSIDERATION OF STATE AND

10 LOCAL CONTROL PROPOSALS.—

11 (A) EXPEDITED PROCESS.—Not later than

12 1 year after the date of enactment of this Act, the

13 Secretaries shall establish an expedited process

14 for the State and political subdivisions of the

15 State under which the State and political sub16 divisions may, through the submission of an ap17 plication, seek approval of the Secretary con18 cerned to impose a general or specific prohibition

19 or restriction on the introduction or movement of

20 invasive species or diseases from domestic or for21 eign locations to the State that is in addition to

22 the applicable prohibition or restriction imposed

23 by the Secretary concerned.

24 (B) REVIEW PERIOD.—Not later than 60

25 days after the date of receipt by the Secretary
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1 concerned of an application under subparagraph

2 (A) that the Secretary concerned determines to be

3 a completed application, the Secretary concerned

4 shall—

5 (i) review the completed application;

6 (ii) assess each potential risk with re7 spect to the completed application; and

8 (iii) approve or disapprove the com9 pleted application.

10 (4) RESPONSE TO EMERGENCY THREATS.—

11 (A) IN GENERAL.—The State may carry out

12 an emergency action to impose a prohibition or

13 restriction on the entry of an invasive species or

14 disease that is in addition to the applicable pro15 hibition or restriction imposed by the Secretary

16 concerned if—

17 (i) the State has submitted to the Sec18 retary concerned a completed application

19 under paragraph (3) that is pending ap20 proval by the Secretary concerned; and

21 (ii) an emergency or imminent threat

22 from an invasive species or disease occurs

23 in the State during the period in which the

24 completed application described in clause
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1 (i) is pending approval by the Secretary

2 concerned.

3 (B) NOTICE.—Before carrying out an emer4 gency action under subparagraph (A), the State

5 shall provide written notice to the Secretary con6 cerned.

7 (C) PERIOD OF EMERGENCY ACTION.—If, by

8 the date that is 10 days after the date of receipt

9 of a written notice under subparagraph (B), the

10 Secretary concerned does not object to the emer11 gency action that is the subject of the notice, the

12 State may carry out the emergency action dur13 ing the 60-day period beginning on that date.

14 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

15 authorized to be appropriated to the Secretaries such sums

16 as are necessary to carry out this section for each of fiscal

17 years 2008 through 2012.

18 SEC. 11064. OVERSIGHT AND COMPLIANCE.

19 The Secretary, acting through the Assistant Secretary

20 for Civil Rights of the Department of Agriculture, shall use

21 the reports described in subsection (c) of section 2501A of

22 the Food, Agriculture, Conservation, and Trade Act of 1990

23 (7 U.S.C. 2279–1) (as amended by section 11056) in the

24 conduct of oversight and evaluation of civil rights compli25 ance.
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1 SEC. 11065. REPORT OF CIVIL RIGHTS COMPLAINTS, RESO2 LUTIONS, AND ACTIONS.

3 Each year, the Secretary shall—

4 (1) prepare a report that describes, for each

5 agency of the Department of Agriculture—

6 (A) the number of civil rights complaints

7 filed that relate to the agency, including whether

8 a complaint is a program complaint or an em9 ployment complaint;

10 (B) the length of time the agency took to

11 process each civil rights complaint;

12 (C) the number of proceedings brought

13 against the agency, including the number of

14 complaints described in paragraph (1) that were

15 resolved with a finding of discrimination; and

16 (D) the number and type of personnel ac17 tions taken by the agency following resolution of

18 civil rights complaints;

19 (2) submit to the Committee on Agriculture of

20 the House of Representatives and the Committee on

21 Agriculture, Nutrition, and Forestry of the Senate a

22 copy of the report; and

23 (3) make the report available to the public by

24 posting the report on the website of the Department.
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1 SEC. 11066. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFE2 TY, AND TRAINING OF AGRICULTURAL LABOR

3 FORCE.

4 (a) DEFINITION OF ELIGIBLE ENTITY.—In this sec5 tion, the term ‘‘eligible entity’’ means a nonprofit, commu6 nity-based organization, or a consortium of nonprofit, com7 munity-based organizations, agricultural labor organiza8 tions, farmer or rancher cooperatives, and public entities,

9 that has the capacity (including demonstrated experience

10 in providing training, housing, or emergency services to mi11 grant and seasonal farmworkers) to assist agricultural em12 ployers and farmworkers with improvements in the supply,

13 stability, safety, and training of the agricultural labor

14 force.

15 (b) GRANTS.—

16 (1) IN GENERAL.—The Secretary may provide

17 grants to eligible entities for use in providing services

18 to assist farmworkers in securing, retaining, upgrad19 ing, or returning from agricultural jobs.

20 (2) ELIGIBLE SERVICES.—The services referred

21 to in paragraph (1) include—

22 (A) agricultural upgrading and cross train23 ing;

24 (B) the provision of agricultural labor mar25 ket information;

26 (C) transportation;
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1 (D) short-term housing, including housing

2 for unaccompanied farmworkers and at migrant

3 rest stops;

4 (E) travelers’ aid;

5 (F) workplace literacy and assistance with

6 English as a second language;

7 (G) health and safety instruction, including

8 ways of safeguarding the food supply of the

9 United States; and

10 (H) limited emergency and financial assist11 ance, in cases in which the Secretary determines

12 that a national, State, or local emergency or dis13 aster has caused migrant or seasonal farm14 workers to lose income or employment.

15 (3) EMERGENCY ASSISTANCE.—Any emergency

16 services provided using funds from a grant in accord17 ance with paragraph (2)(H)—

18 (A) shall be consistent with section 2281 of

19 the Food, Agriculture, Conservation, and Trade

20 Act of 1990 (as amended by section 11061);

21 (B) shall be focused on assistance to allow

22 low-income farmworkers and their families to

23 meet short-term needs for such food, clothing, em24 ployment, transportation, and housing as are
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1 necessary to regain employment or return home;

2 and

3 (C) may include such other types of assist4 ance as the Secretary determines to be appro5 priate.

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

7 authorized to be appropriated such sums as are necessary

8 to carry out this section for each of fiscal years 2008

9 through 2012.

10 SEC. 11067. INTERSTATE SHIPMENT OF MEAT AND POULTRY

11 INSPECTED BY FEDERAL AND STATE AGEN12 CIES FOR CERTAIN SMALL ESTABLISHMENTS.

13 (a) MEAT AND MEAT PRODUCTS.—The Federal Meat

14 Inspection Act (21 U.S.C. 601 et seq.) is amended by adding

15 at the end the following:

16 ‘‘TITLE V—INSPECTIONS BY

17 FEDERAL AND STATE AGENCIES

18 ‘‘SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY

19 FEDERAL AND STATE AGENCIES FOR CER20 TAIN SMALL ESTABLISHMENTS.

21 ‘‘(a) DEFINITIONS.—

22 ‘‘(1) APPROPRIATESTATEAGENCY.—The term

23 ‘appropriate State agency’ means a State agency de24 scribed in section 301(b).
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1 ‘‘(2) DESIGNATED PERSONNEL.—The term ‘des2 ignated personnel’ means inspection personnel of a

3 State agency that have undergone all necessary in4 spection training and certification to assist the Sec5 retary in the administration and enforcement of this

6 Act, including regulations.

7 ‘‘(3) ELIGIBLE ESTABLISHMENT.—The term ‘eli8 gible establishment’ means an establishment that is in

9 compliance with—

10 ‘‘(A) the State inspection program of the

11 State in which the establishment is located; and

12 ‘‘(B) this Act.

13 ‘‘(4) MEAT ITEM.—The term ‘meat item’

14 means—

15 ‘‘(A) a portion of meat; and

16 ‘‘(B) a meat food product.

17 ‘‘(5) SELECTED ESTABLISHMENT.—The term ‘se18 lected establishment’ means an eligible establishment

19 that is selected by the Secretary, in coordination with

20 the appropriate State agency of the State in which

21 the eligible establishment is located, under subsection

22 (b) to ship carcasses, portions of carcasses, and meat

23 items in interstate commerce.

24 ‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIP25 MENTS.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

2 Secretary, in coordination with the appropriate State

3 agency of the State in which an establishment is lo4 cated, may select the establishment to ship carcasses,

5 portions of carcasses, and meat items in interstate

6 commerce, and place on each carcass, portion of a

7 carcass, and meat item shipped in interstate com8 merce a Federal mark, stamp, tag, or label of inspec9 tion, if the establishment—

10 ‘‘(A) is an eligible establishment; and

11 ‘‘(B) is located in a State that has des12 ignated personnel to inspect the eligible establish13 ment.

14 ‘‘(2) PROHIBITED ESTABLISHMENTS.—In car15 rying out paragraph (1), the Secretary, in coordina16 tion with an appropriate State agency, shall not se17 lect an establishment that—

18 ‘‘(A) on average, employs more than 25 em19 ployees (including supervisory and non20 supervisory employees), as defined by the Sec21 retary;

22 ‘‘(B) as of the date of enactment of this sec23 tion, ships in interstate commerce carcasses, por24 tions of carcasses, or meat items that are in-
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1 spected by the Secretary in accordance with this

2 Act;

3 ‘‘(C)(i) is a Federal establishment;

4 ‘‘(ii) was a Federal establishment that was

5 reorganized on a later date under the same name

6 or a different name or person by the person,

7 firm, or corporation that controlled the establish8 ment as of the date of enactment of this section;

9 or

10 ‘‘(iii) was a State establishment as of the

11 date of enactment of this section that—

12 ‘‘(I) as of the date of enactment of this

13 section, employed more than 25 employees;

14 and

15 ‘‘(II) was reorganized on a later date

16 by the person, firm, or corporation that con17 trolled the establishment as of the date of

18 enactment of this section;

19 ‘‘(D) is in violation of this Act;

20 ‘‘(E) is located in a State that does not

21 have a State inspection program; or

22 ‘‘(F) is the subject of a transition carried

23 out in accordance with a procedure developed by

24 the Secretary under paragraph (3)(A).
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1 ‘‘(3) ESTABLISHMENTS THAT EMPLOY MORE

2 THAN 25 EMPLOYEES.—

3 ‘‘(A) DEVELOPMENT OF PROCEDURE.—The

4 Secretary may develop a procedure to transition

5 to a Federal establishment any establishment

6 under this section that, on average, consistently

7 employs more than 25 employees.

8 ‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISH9 MENTS.—

10 ‘‘(i) IN GENERAL.—A State establish11 ment that employs more than 25 employees

12 but less than 35 employees as of the date of

13 enactment of this section may be selected as

14 a selected establishment under this sub15 section.

16 ‘‘(ii) PROCEDURES.—A State establish17 ment shall be subject to the procedures es18 tablished under subparagraph (A) begin19 ning on the date that is 3 years after the ef20 fective date described in subsection (j).

21 ‘‘(c) REIMBURSEMENT OF STATE COSTS.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the Secretary shall reimburse a State for

24 costs related to the inspection of selected establish25 ments in the State in accordance with Federal re-
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1 quirements in an amount of not less than 60 percent

2 of eligible State costs.

3 ‘‘(2) MICROBIOLOGICAL VERIFICATION TEST4 ING.—The Secretary may reimburse a State for 100

5 percent of eligible State costs relating to the inspec6 tion of selected establishments in the State, if the

7 State provides additional microbiological verification

8 testing of the selected establishments, using standards

9 under this Act, that is in excess of the typical

10 verification testing frequency of the Federal Govern11 ment with respect to Federal establishments.

12 ‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE

13 AGENCIES.—

14 ‘‘(1) IN GENERAL.—The Secretary shall des15 ignate an employee of the Federal Government as

16 State coordinator for each appropriate State

17 agency—

18 ‘‘(A) to provide oversight and enforcement

19 of this title; and

20 ‘‘(B) to oversee the training and inspection

21 activities of designated personnel of the State

22 agency.

23 ‘‘(2) SUPERVISION.—A State coordinator shall be

24 under the direct supervision of the Secretary.

25 ‘‘(3) DUTIES OF STATE COORDINATOR.—
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1 ‘‘(A) IN GENERAL.—A State coordinator

2 shall visit selected establishments with a fre3 quency that is appropriate to ensure that selected

4 establishments are operating in a manner that is

5 consistent with this Act (including regulations

6 and policies under this Act).

7 ‘‘(B) QUARTERLY REPORTS.—A State coor8 dinator shall, on a quarterly basis, submit to the

9 Secretary a report that describes the status of

10 each selected establishment that is under the ju11 risdiction of the State coordinator with respect to

12 the level of compliance of each selected establish13 ment with the requirements of this Act.

14 ‘‘(C) IMMEDIATE NOTIFICATION REQUIRE15 MENT.—If a State coordinator determines that

16 any selected establishment that is under the ju17 risdiction of the State coordinator is in violation

18 of any requirement of this Act, the State coordi19 nator shall—

20 ‘‘(i) immediately notify the Secretary

21 of the violation; and

22 ‘‘(ii) deselect the selected establishment

23 or suspend inspection at the selected estab24 lishment.
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1 ‘‘(4) PERFORMANCE EVALUATIONS.—Perform2 ance evaluations of State coordinators designated

3 under this subsection shall be conducted by the Sec4 retary as part of the Federal agency management

5 control system.

6 ‘‘(e) AUDITS.—

7 ‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPEC8 TOR GENERAL OF THE DEPARTMENT OF AGRI9 CULTURE.—Not later than 2 years after the effective

10 date described in subsection (j), and not less often

11 than every 2 years thereafter, the Inspector General of

12 the Department of Agriculture shall conduct an audit

13 of each activity taken by the Secretary under this sec14 tion for the period covered by the audit to determine

15 compliance with this section.

16 ‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GEN17 ERAL OF THE UNITED STATES.—Not earlier than 3

18 years, nor later than 5 years, after the date of enact19 ment of this section, the Comptroller General of the

20 United States shall conduct an audit of the imple21 mentation of this section to determine—

22 ‘‘(A) the effectiveness of the implementation

23 of this section; and

24 ‘‘(B) the number of selected establishments

25 selected by the Secretary under this section.
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1 ‘‘(f) INSPECTION TRAINING DIVISION.—

2 ‘‘(1) ESTABLISHMENT.—Not later than 180 days

3 after the effective date described in subsection (j), the

4 Secretary shall establish in the Food Safety and In5 spection Service of the Department of Agriculture an

6 inspection training division to coordinate the initia7 tives of any other appropriate agency of the Depart8 ment of Agriculture to provide—

9 ‘‘(A) outreach, education, and training to

10 very small or certain small establishments (as

11 defined by the Secretary); and

12 ‘‘(B) grants to appropriate State agencies to

13 provide outreach, technical assistance, education,

14 and training to very small or certain small es15 tablishments (as defined by the Secretary).

16 ‘‘(2) PERSONNEL.—The inspection training divi17 sion shall be comprised of individuals that, as deter18 mined by the Secretary—

19 ‘‘(A) are of a quantity sufficient to carry

20 out the duties of the inspection training division;

21 and

22 ‘‘(B) possess appropriate qualifications and

23 expertise relating to the duties of the inspection

24 training division.
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1 ‘‘(g) TRANSITION GRANTS.—The Secretary may pro2 vide grants to appropriate State agencies to assist the ap3 propriate State agencies in helping establishments covered

4 by title III to transition to selected establishments.

5 ‘‘(h) VIOLATIONS.—Any selected establishment that the

6 Secretary determines to be in violation of any requirement

7 of this Act shall be transitioned to a Federal establishment

8 in accordance with a procedure developed by the Secretary

9 under subsection (b)(3)(A).

10 ‘‘(i) EFFECT.—Nothing in this section limits the juris11 diction of the Secretary with respect to the regulation of

12 meat and meat products under this Act.

13 ‘‘(j) EFFECTIVE DATE.—

14 ‘‘(1) IN GENERAL.—This section takes effect on

15 the date on which the Secretary, after providing a pe16 riod of public comment (including through the con17 duct of public meetings or hearings), promulgates

18 final regulations to carry out this section.

19 ‘‘(2) REQUIREMENT.—Not later than 18 months

20 after the date of enactment of this section, the Sec21 retary shall promulgate final regulations in accord22 ance with paragraph (1).’’.

23 (b) POULTRY AND POULTRY PRODUCTS.—The Poultry

24 Products Inspection Act (21 U.S.C. 451 et seq.) is amended

25 by adding at the end the following:
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1 ‘‘SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED

2 BY FEDERAL AND STATE AGENCIES FOR CER3 TAIN SMALL ESTABLISHMENTS.

4 ‘‘(a) DEFINITIONS.—

5 ‘‘(1) APPROPRIATESTATEAGENCY.—The term

6 ‘appropriate State agency’ means a State agency de7 scribed in section 5(a)(1).

8 ‘‘(2) DESIGNATED PERSONNEL.—The term ‘des9 ignated personnel’ means inspection personnel of a

10 State agency that have undergone all necessary in11 spection training and certification to assist the Sec12 retary in the administration and enforcement of this

13 Act, including regulations.

14 ‘‘(3) ELIGIBLE ESTABLISHMENT.—The term ‘eli15 gible establishment’ means an establishment that is in

16 compliance with—

17 ‘‘(A) the State inspection program of the

18 State in which the establishment is located; and

19 ‘‘(B) this Act.

20 ‘‘(4) POULTRY ITEM.—The term ‘poultry item’

21 means—

22 ‘‘(A) a portion of poultry; and

23 ‘‘(B) a poultry product.

24 ‘‘(5) SELECTED ESTABLISHMENT.—The term ‘se25 lected establishment’ means an eligible establishment

26 that is selected by the Secretary, in coordination with
†

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1 the appropriate State agency of the State in which

2 the eligible establishment is located, under subsection

3 (b) to ship poultry items in interstate commerce.

4 ‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIP5 MENTS.—

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

7 Secretary, in coordination with the appropriate State

8 agency of the State in which an establishment is lo9 cated, may select the establishment to ship poultry

10 items in interstate commerce, and place on each poul11 try item shipped in interstate commerce a Federal

12 mark, stamp, tag, or label of inspection, if the

13 establishment—

14 ‘‘(A) is an eligible establishment; and

15 ‘‘(B) is located in a State that has des16 ignated personnel to inspect the eligible establish17 ment.

18 ‘‘(2) PROHIBITED ESTABLISHMENTS.—In car19 rying out paragraph (1), the Secretary, in coordina20 tion with an appropriate State agency, shall not se21 lect an establishment that—

22 ‘‘(A) on average, employs more than 25 em23 ployees (including supervisory and non24 supervisory employees), as defined by the Sec25 retary;
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1 ‘‘(B) as of the date of enactment of this sec2 tion, ships in interstate commerce carcasses,

3 poultry items that are inspected by the Secretary

4 in accordance with this Act;

5 ‘‘(C)(i) is a Federal establishment;

6 ‘‘(ii) was a Federal establishment as of the

7 date of enactment of this section, and was reor8 ganized on a later date under the same name or

9 a different name or person by the person, firm,

10 or corporation that controlled the establishment

11 as of the date of enactment of this section; or

12 ‘‘(iii) was a State establishment as of the

13 date of enactment of this section that—

14 ‘‘(I) as of the date of enactment of this

15 section, employed more than 25 employees;

16 and

17 ‘‘(II) was reorganized on a later date

18 by the person, firm, or corporation that con19 trolled the establishment as of the date of

20 enactment of this section;

21 ‘‘(D) is in violation of this Act;

22 ‘‘(E) is located in a State that does not

23 have a State inspection program; or
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1 ‘‘(F) is the subject of a transition carried

2 out in accordance with a procedure developed by

3 the Secretary under paragraph (3)(A).

4 ‘‘(3) ESTABLISHMENTS THAT EMPLOY MORE

5 THAN 25 EMPLOYEES.—

6 ‘‘(A) DEVELOPMENT OF PROCEDURE.—The

7 Secretary may develop a procedure to transition

8 to a Federal establishment any establishment

9 under this section that, on average, consistently

10 employs more than 25 employees.

11 ‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISH12 MENTS.—

13 ‘‘(i) IN GENERAL.—A State establish14 ment that employs more than 25 employees

15 but less than 35 employees as of the date of

16 enactment of this section may be selected as

17 a selected establishment under this sub18 section.

19 ‘‘(ii) PROCEDURES.—A State establish20 ment shall be subject to the procedures es21 tablished under subparagraph (A) begin22 ning on the date that is 3 years after the ef23 fective date described in subsection (i).

24 ‘‘(c) REIMBURSEMENT OF STATE COSTS.—
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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the Secretary shall reimburse a State for

3 costs related to the inspection of selected establish4 ments in the State in accordance with Federal re5 quirements in an amount of not less than 60 percent

6 of eligible State costs.

7 ‘‘(2) MICROBIOLOGICAL VERIFICATION TEST8 ING.—The Secretary may reimburse a State for 100

9 percent of eligible State costs relating to the inspec10 tion of selected establishments in the State, if the

11 State provides additional microbiological verification

12 testing of the selected establishments, using standards

13 under this Act, that is in excess of the typical

14 verification testing frequency of the Federal Govern15 ment with respect to Federal establishments.

16 ‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE

17 AGENCIES.—

18 ‘‘(1) IN GENERAL.—The Secretary shall des19 ignate an employee of the Federal Government as

20 State coordinator for each appropriate State

21 agency—

22 ‘‘(A) to provide oversight and enforcement

23 of this section; and
†

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1 ‘‘(B) to oversee the training and inspection

2 activities of designated personnel of the State

3 agency.

4 ‘‘(2) SUPERVISION.—A State coordinator shall be

5 under the direct supervision of the Secretary.

6 ‘‘(3) DUTIES OF STATE COORDINATOR.—

7 ‘‘(A) IN GENERAL.—A State coordinator

8 shall visit selected establishments with a fre9 quency that is appropriate to ensure that selected

10 establishments are operating in a manner that is

11 consistent with this Act (including regulations

12 and policies under this Act).

13 ‘‘(B) QUARTERLY REPORTS.—A State coor14 dinator shall, on a quarterly basis, submit to the

15 Secretary a report that describes the status of

16 each selected establishment that is under the ju17 risdiction of the State coordinator with respect to

18 the level of compliance of each selected establish19 ment with the requirements of this Act.

20 ‘‘(C) IMMEDIATE NOTIFICATION REQUIRE21 MENT.—If a State coordinator determines that

22 any selected establishment that is under the ju23 risdiction of the State coordinator is in violation

24 of any requirement of this Act, the State coordi25 nator shall—
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1 ‘‘(i) immediately notify the Secretary

2 of the violation; and

3 ‘‘(ii) deselect the selected establishment

4 or suspend inspection at the selected estab5 lishment.

6 ‘‘(4) PERFORMANCE EVALUATIONS.—Perform7 ance evaluations of State coordinators designated

8 under this subsection shall be conducted by the Sec9 retary as part of the Federal agency management

10 control system.

11 ‘‘(e) AUDITS.—

12 ‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPEC13 TOR GENERAL OF THE DEPARTMENT OF AGRI14 CULTURE.—Not later than 2 years after the effective

15 date described in subsection (i), and not less often

16 than every 2 years thereafter, the Inspector General of

17 the Department of Agriculture shall conduct an audit

18 of each activity taken by the Secretary under this sec19 tion for the period covered by the audit to determine

20 compliance with this section.

21 ‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GEN22 ERAL OF THE UNITED STATES.—Not earlier than 3

23 years, nor later than 5 years, after the date of enact24 ment of this section, the Comptroller General of the
†

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1 United States shall conduct an audit of the imple2 mentation of this section to determine—

3 ‘‘(A) the effectiveness of the implementation

4 of this section; and

5 ‘‘(B) the number of selected establishments

6 selected by the Secretary under this section.

7 ‘‘(f) TRANSITION GRANTS.—The Secretary may pro8 vide grants to appropriate State agencies to assist the ap9 propriate State agencies in helping establishments covered

10 by this Act to transition to selected establishments.

11 ‘‘(g) VIOLATIONS.—Any selected establishment that the

12 Secretary determines to be in violation of any requirement

13 of this Act shall be transitioned to a Federal establishment

14 in accordance with a procedure developed by the Secretary

15 under subsection (b)(3)(A).

16 ‘‘(h) EFFECT.—Nothing in this section limits the juris17 diction of the Secretary with respect to the regulation of

18 poultry and poultry products under this Act.

19 ‘‘(i) EFFECTIVE DATE.—

20 ‘‘(1) IN GENERAL.—This section takes effect on

21 the date on which the Secretary, after providing a pe22 riod of public comment (including through the con23 duct of public meetings or hearings), promulgates

24 final regulations to carry out this section.
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1 ‘‘(2) REQUIREMENT.—Not later than 18 months

2 after the date of enactment of this section, the Sec3 retary shall promulgate final regulations in accord4 ance with paragraph (1).’’.

5 SEC. 11068. AMENDMENT TO THE RIGHT TO FINANCIAL PRI6 VACY ACT OF 1978.

7 Section 1113(k) of the Right to Financial Privacy Act

8 of 1978 (12 U.S.C. 3413(k)) is amended—

9 (1) by striking the subsection heading and in10 serting the following:

11 ‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMINIS12 TRATION OF PROGRAMS OF CERTAIN GOVERNMENT AU13 THORITIES.—’’; and

14 (2) by striking paragraph (2) and inserting the

15 following:

16 ‘‘(2) Nothing in this title shall apply to the dis17 closure by the financial institution of information

18 contained in the financial records of any customer to

19 any Government authority that certifies, disburses, or

20 collects payments, where the disclosure of such infor21 mation is necessary to, and such information is used

22 solely for the purpose of—

23 ‘‘(A) verification of the identity of any per24 son or proper routing and delivery of funds in

25 connection with the issuance of a Federal pay-
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1 ment or collection of funds by a Government au2 thority; or

3 ‘‘(B) the investigation or recovery of an im4 proper Federal payment or collection of funds or

5 an improperly negotiated Treasury check.

6 ‘‘(3) Notwithstanding any other provision of law,

7 a request authorized by paragraph (1) or (2) (and the

8 information contained therein) may be used by the fi9 nancial institution or its agents solely for the purpose

10 of providing information contained in the financial

11 records of the customer to the Government authority

12 requesting the information, and the financial institu13 tion and its agents shall be barred from redisclosure

14 of such information. Any Government authority re15 ceiving information pursuant to paragraph (1) or (2)

16 may not disclose or use the information, except for the

17 purposes set forth in such paragraph.’’.

18 SEC. 11069. ELIMINATION OF STATUTE OF LIMITATIONS AP19 PLICABLE TO COLLECTION OF DEBT BY AD20 MINISTRATIVE OFFSET.

21 (a) ELIMINATION.—Section 3716 of title 31, United

22 States Code, is amended by striking subsection (e) and in23 serting the following:

24 ‘‘(e)(1) Notwithstanding any other provision of law,

25 regulation, or administrative limitation, no limitation on
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1 the period within which an offset may be initiated or taken

2 pursuant to this section shall be effective.

3 ‘‘(2) This section does not apply when a statute explic4 itly prohibits using administrative offset or setoff to collect

5 the claim or type of claim involved.’’.

6 (b) APPLICATION OF AMENDMENT.—The amendment

7 made by subsection (a) shall apply to any debt outstanding

8 on or after the date of the enactment of this Act.

9 SEC. 11070. REPORT ON STORED QUANTITIES OF PROPANE.

10 (a) REPORT.—

11 (1) IN GENERAL.—Not later than 240 days after

12 the date of enactment of this Act, the Secretary of

13 Homeland Security (referred to in this section as the

14 ‘‘Secretary’’) shall submit to the Committee on Agri15 culture, Nutrition, and Forestry and the Committee

16 on Homeland Security and Government Affairs of the

17 Senate and the Committee on Agriculture and the

18 Committee on Homeland Security of the House of

19 Representatives a report describing the effect of in20 terim or final regulations issued by the Secretary

21 pursuant to section 550(a) of the Department of

22 Homeland Security Appropriations Act, 2007 (6

23 U.S.C. 121 note; Public Law 109–295), with respect

24 to possession of quantities of propane that meet or ex-
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1 ceed the screening threshold quantity for propane es2 tablished in the final rule under that section.

3 (2) INCLUSIONS.—The report under paragraph

4 (1)—

5 (A) shall include, at a minimum, a descrip6 tion of—

7 (i) the number of facilities that com8 pleted a top screen consequence assessment

9 due to possession of quantities of propane

10 that meet or exceed the listed screening

11 threshold quantity for propane;

12 (ii) the number of agricultural facili13 ties that completed the top screen con14 sequence assessment due to possession of

15 quantities of propane that meet or exceed

16 the listed screening threshold quantity for

17 propane;

18 (iii) the number of propane facilities

19 initially determined to be high risk by the

20 Secretary;

21 (iv) the number of propane facilities—

22 (I) required to complete a security

23 vulnerability assessment or a site secu24 rity plan; or
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1 (II) that submit to the Secretary

2 an alternative security program;

3 (v) the number of propane facilities

4 that file an appeal of a finding under the

5 final rule described in paragraph (1); and

6 (vi) to the extent available, the average

7 cost of—

8 (I) completing a top screen con9 sequence assessment requirement;

10 (II) completing a security vulner11 ability assessment; and

12 (III) completing and imple13 menting a site security plan; and

14 (B) may include a classified annex, as the

15 Secretary determines to be appropriate.

16 (b) EDUCATIONAL OUTREACH.—

17 (1) IN GENERAL.—Not later than 30 days after

18 the date of enactment of this Act, the Secretary shall

19 conduct educational outreach activities for rural fa20 cilities that may be required to complete a top screen

21 consequence assessment due to possession of propane

22 in a quantity that meets or exceeds the listed screen23 ing threshold quantity for propane.

24 (2) USEOF COUNCIL.—In conducting outreach

25 activities under paragraph (1), the Secretary may use
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1 the Food and Agricultural Sector Coordinating Coun2 cil established under the national infrastructure pro3 tection plan to facilitate the provision of education to

4 rural areas regarding the top screen consequence as5 sessment requirement.

6 SEC. 11071. CLOSURE OF CERTAIN COUNTY FSA OFFICES.

7 (a) DEFINITION OF CRITICAL ACCESS COUNTY FSA

8 OFFICE.—

9 (1) IN GENERAL.—In this section, the term ‘‘crit10 ical access county FSA office’’ means an office of the

11 Farm Service Agency that, during the period de12 scribed in paragraph (2), is—

13 (A) proposed to be closed;

14 (B) proposed to be closed with the closure

15 delayed until after January 1, 2008, due to ad16 ditional review pursuant to the third proviso of

17 matter under the heading ‘‘SALARIES AND EX18 PENSES’’ under the heading ‘‘FARM SERVICE

19 AGENCY’’ of the Agriculture, Rural Development,

20 Food and Drug Administration, and Related

21 Agencies Appropriations Act, 2006 (Public Law

22 109–97; 119 Stat. 2131); or

23 (C) included on a list of critical access

24 county FSA offices determined in accordance

25 with that Act and submitted to the Committee on
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1 Agriculture, Nutrition, and Forestry of the Sen2 ate by the Secretary on October 24, 2007.

3 (2) DESCRIPTION OF PERIOD.—The period re4 ferred to in paragraph (1) is the period beginning on

5 November 10, 2005, and ending on December 31,

6 2007.

7 (3) EXCEPTION.—The term ‘‘critical access coun8 ty FSA office’’ does not include any office of the

9 Farm Service Agency that—

10 (A) is located not more than 20 miles from

11 another office of the Farm Service Agency; or

12 (B) employs no full-time equivalent employ13 ees as of the date of enactment of this Act.

14 (b) EXTENSION OF PERIOD OF OPERATION.—

15 (1) IN GENERAL.—Notwithstanding any other

16 provision of law, except as provided in paragraph

17 (3), none of the funds made available to the Secretary

18 by any Act may be used to pay the salaries or ex19 penses of any officer or employee of the Department

20 of Agriculture to close any critical access county FSA

21 office during the period beginning on date of enact22 ment and ending on September 30, 2012.

23 (2) NUMBER OF EMPLOYEES.—

24 (A) IN GENERAL.—Subject to subpara25 graphs (B) and (C), the Secretary shall ensure
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1 that each critical access county FSA office in

2 each State maintains a staff level of not less

3 than 3 full-time equivalent employees during the

4 period described in paragraph (1).

5 (B) STAFFING FLEXIBILITY.—Notwith6 standing subparagraph (A) and subject to sub7 paragraph (C), an employee required to meet the

8 staff level of a critical access county FSA office

9 in a State as described in subparagraph (A)

10 may be employed at any other county office of

11 the Farm Service Agency in that State, as the

12 Secretary determines to be appropriate.

13 (C) MINIMUM STAFFING LEVEL.—A critical

14 access county FSA office shall be staffed by not

15 less than 1 full-time equivalent employee during

16 the period described in paragraph (1).

17 (3) EXCEPTION.—The Secretary may close a

18 critical access county FSA office only on concurrence

19 in the determination to close the critical access county

20 FSA office by—

21 (A) Congress; and

22 (B) the applicable State Farm Service

23 Agency committee.
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1 SEC. 11072. ACTION BY PRESIDENT AND CONGRESS BASED

2 ON REPORT.

3 (a) PRESIDENT.—Not later than 180 days after the

4 date on which the Congressional Bipartisan Food Safety

5 Commission established by section 11060(a)(1)(A) submits

6 to the President and Congress the report required under sec7 tion 11060(b)(3), the President shall—

8 (1) review the report; and

9 (2) submit to Congress proposed legislation based

10 on the recommendations for statutory language con11 tained in the report, together with an explanation of

12 the differences, if any, between the recommendations

13 for statutory language contained in the report and the

14 proposed legislation.

15 (b) CONGRESS.—On receipt of the proposed legislation

16 described in subsection (a), the appropriate committees of

17 Congress may hold such hearings and carry out such other

18 activities as are necessary for appropriate consideration of

19 the recommendations for statutory language contained in

20 the report and the proposed legislation.

21 (c) SENSE OF SENATE.—It is the sense of the Senate

22 that—

23 (1) it is vital for Congress to provide to food

24 safety agencies of the Federal Government, including

25 the Department of Agriculture and the Food and

26 Drug Administration, additional resources, and direc-
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1 tion with respect to ensuring the safety of the food

2 supply of the United States;

3 (2) additional inspectors are required to improve

4 the ability of the Federal Government to safeguard the

5 food supply of the United States;

6 (3) because of the increasing volume of inter7 national trade in food products, the Federal Govern8 ment should give priority to entering into agreements

9 with trading partners of the United States with re10 spect to food safety; and

11 (4) based on the report of the Commission re12 ferred to in subsection (a) and the proposed legisla13 tion referred to in subsection (b), Congress should

14 work toward a comprehensive legislative response to

15 the issue of food safety.

16 SEC. 11073. PAYMENTS TO DECEASED INDIVIDUALS AND ES17 TATES.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law, the Secretary shall not provide to any deceased

20 individual or estate of such an individual any agricultural

21 payment under this Act, or an Act amended by this Act,

22 after the date that is 2 program years (as determined by

23 the Secretary with respect to the applicable payment pro24 gram) after the date of death of the individual.
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1 (b) REPORT.—As soon as practicable after the date of

2 enactment of this Act, and annually thereafter, the Sec3 retary shall submit to the Committee on Agriculture of the

4 House of Representatives and the Committee on Agri5 culture, Nutrition, and Forestry of the Senate, and post on

6 the website of the Department of Agriculture, a report that

7 describes, for the period covered by the report—

8 (1) the number and aggregate amount of agricul9 tural payments described in subsection (a) provided

10 to deceased individuals and estates of deceased indi11 viduals; and

12 (2) for each such payment, the length of time the

13 estate of the deceased individual that received the

14 payment has been open.

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

16 FARMERS.

17 (a) REPORT.—Not later than November 30, 2008, the

18 Comptroller General of the United States shall submit to

19 Congress a report on access to health care for rural Ameri20 cans and farmers.

21 (b) CONSULTATION.—The report shall be done in con22 sultation with the Rural Health Research Centers in the

23 Department of Health and Human Services Office of Rural

24 Health Policy.
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1 (c) ELEMENTS.—The report required by subsection (a)

2 shall include the following:

3 (1) ASSESSMENT.—An assessment of access to

4 health care for rural Americans, including the fol5 lowing:

6 (A) An overview of the rates of the unin7 sured among people living in rural areas in the

8 United States and possible factors that cause the

9 uninsurance, specifically—

10 (i) a synthesis of existing research on

11 the uninsured living in rural America; and

12 (ii) a detailed analysis of the unin13 sured and the factors that contribute in

14 uninsurance in 3 to 4 rural areas.

15 (2) SECOND ASSESSMENT.—An assessment of ac16 cess to health care for farmers, including the fol17 lowing:

18 (A) An overview of the rates of the unin19 sured among farmers in the United States and

20 the factors that cause the uninsurance,

21 specifically—

22 (i) factors, such as land assets, that

23 keep low-income farmers from qualifying for

24 public insurance programs;
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1 (ii) the effects of the high price of

2 health insurance for individuals purchasing

3 in the individual, non-group market; and

4 (iii) any other significant factor that

5 contributes to the rates of uninsurance

6 among farmers.

7 (B) The extent to which farmers depend on

8 a spouse’s off-farm job for health care coverage.

9 (C) The effects of uninsurance on farmers

10 and their families.

11 (3) ROLEOF CONGRESS.—Recommendations re12 garding the potential role of Congress in supporting

13 increased access to health insurance for farmers and

14 their families, and rural Americans.

15 SEC. 11075. CONVEYANCE OF LAND TO CHIHUAHUAN

16 DESERT NATURE PARK.

17 (a) DEFINITIONS.—In this section:

18 (1) BOARD.—The term ‘‘Board’’ means the

19 Chihuahuan Desert Nature Park Board.

20 (2) NATUREPARK.—The term ‘‘Nature Park’’

21 means the Chihuahuan Desert Nature Park, Inc., a

22 nonprofit corporation in the State of New Mexico.

23 (b) CONVEYANCE OF LAND.—

24 (1) IN GENERAL.—Not later than 1 year after

25 the date of enactment of this Act, subject to valid ex-
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1 isting rights and subsection (c), the Secretary shall

2 convey to the Nature Park, by quitclaim deed, for no

3 consideration, all right, title, and interest of the

4 United States in and to the land described in para5 graph (2)

6 (2) DESCRIPTION OF LAND.—

7 (A) IN GENERAL.—The parcel of land re8 ferred to in paragraph (1) consists of the ap9 proximately 935.62 acres of land in Dona Ana

10 County, New Mexico, which is more particularly

11 described—

12 (i) as sections 17, 20, and 21 of T. 21

13 S., R. 2 E., N.M.P.M.; and

14 (ii) in an easement deed dated May

15 14, 1998, from the Department of Agri16 culture to the Nature Park.

17 (B) MODIFICATIONS.—The Secretary may

18 modify the description of the land under sub19 paragraph (A) to—

20 (i) correct errors in the description; or

21 (ii) facilitate management of the land.

22 (c) CONDITIONS.—The conveyance of land under sub23 section (b) shall be subject to—
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1 (1) the reservation by the United States of all

2 mineral and subsurface rights to the land, including

3 any geothermal resources;

4 (2) the condition that the Board pay any costs

5 relating to the conveyance;

6 (3) any rights-of-way reserved by the Secretary;

7 (4) a covenant or restriction in the deed to the

8 land requiring that—

9 (A) the land may be used only for edu10 cational or scientific purposes; and

11 (B) if the land is no longer used for the

12 purposes described in subparagraph (A), the

13 land may, at the discretion of the Secretary, re14 vert to the United States in accordance with sub15 section (d); and

16 (5) any other terms and conditions that the Sec17 retary determines to be appropriate.

18 (d) REVERSION.—If the land conveyed under sub19 section (b) is no longer used for the purposes described in

20 subsection (c)(4)(A)—

21 (1) the land may, at the discretion of the Sec22 retary, revert to the United States; and

23 (2) if the Secretary chooses to have the land re24 vert to the United States, the Secretary shall—
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1 (A) determine whether the land is environ2 mentally contaminated, including contamination

3 from hazardous wastes, hazardous substances,

4 pollutants, contaminants, petroleum, or petro5 leum by-products; and

6 (B) if the Secretary determines that the

7 land is environmentally contaminated, the Na8 ture Park, the successor to the Nature Park, or

9 any other person responsible for the contamina10 tion shall be required to remediate the contami11 nation.

12 (e) WITHDRAWAL.—All federally owned mineral and

13 subsurface rights to the land described in subsection (b)(2)

14 are withdrawn from—

15 (1) location, entry, and patent under the mining

16 laws; and

17 (2) the operation of the mineral leasing laws, in18 cluding the geothermal leasing laws.

19 (f) WATER RIGHTS.—Nothing in this section author20 izes the conveyance of water rights to the Nature Park.

21 SEC. 11076. PROHIBITIONS ON DOG FIGHTING VENTURES.

22 (a) IN GENERAL.—Section 26 of the Animal Welfare

23 Act (7 U.S.C. 2156) is amended—

24 (1) in subsection (a)(1)—
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1 (A) by striking ‘‘any person to knowingly

2 sponsor’’ and inserting ‘‘any person—

3 ‘‘(A) to knowingly sponsor’’;

4 (B) by striking the period at the end and

5 inserting ‘‘; or’’; and

6 (C) by adding at the end the following:

7 ‘‘(B) to knowingly sponsor or exhibit an

8 animal in a dog fighting venture.’’;

9 (2) in subsection (b)—

10 (A) by striking ‘‘any person to knowingly

11 sell’’ and inserting ‘‘any person—

12 ‘‘(1) to knowingly sell’’;

13 (B) by striking the period at the end and

14 inserting ‘‘; or’’; and

15 (C) by adding at the end the following:

16 ‘‘(2) to knowingly sell, buy, possess, train, trans17 port, deliver, or receive for purposes of transportation,

18 any dog or other animal, for the purposes of having

19 the dog or other animal, or offspring of the dog or

20 other animal, participate in a dog fighting venture.’’;

21 (3) in the last sentence of subsection (f), by strik22 ing ‘‘by the United States’’; and

23 (4) in subsection (g) —

24 (A) in paragraph (5), by striking ‘‘and’’ at

25 the end;
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1 (B) by redesignating paragraph (6) as

2 paragraph (7); and

3 (C) by inserting after paragraph (5) the fol4 lowing:

5 ‘‘(6) the term ‘dog fighting venture’—

6 ‘‘(A) means any event that—

7 ‘‘(i) involves a fight between at least 2

8 animals;

9 ‘‘(ii) includes at least 1 dog; and

10 ‘‘(iii) is conducted for purposes of

11 sport, wagering, or entertainment; and

12 ‘‘(B) does not include any activity the pri13 mary purpose of which involves the use of 1 or

14 more animals to hunt another animal; and’’.

15 (b) ENFORCEMENT OF ANIMAL FIGHTING PROHIBI16 TIONS.—Section 49 of title 18, United States Code, is

17 amended to read as follows:

18 ‘‘§ 49. Enforcement of animal fighting prohibitions

19 ‘‘(a) ANIMAL FIGHTING VENTURES.—Whoever violates

20 subsection (a)(1)(A), (b)(1), (c), or (e) of section 26 of the

21 Animal Welfare Act (7 U.S.C. 2156) shall be fined under

22 this title, imprisoned for not more than 3 years, or both,

23 for each violation.

24 ‘‘(b) DOG FIGHTING VENTURES.—Whoever violates

25 subsection (a)(1)(B) or (b)(2) of section 26 of the Animal
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1 Welfare Act shall be fined under this title, imprisoned for

2 not more than 5 years, or both, for each violation.’’.

3 SEC. 11077. REGULATIONS TO IMPROVE MANAGEMENT AND

4 OVERSIGHT OF CERTAIN REGULATED ARTI5 CLES.

6 (a) IN GENERAL.—Not later than 18 months after the

7 date of enactment of this Act, the Secretary shall promul8 gate regulations—

9 (1) to implement, as appropriate, each issue

10 identified in the document entitled ‘‘Lessons Learned

11 and Revisions under Consideration for APHIS’ Bio12 technology Framework’’, dated October 4, 2007; and

13 (2) to improve the management and oversight of

14 articles regulated under the Plant Protection Act (7

15 U.S.C. 7701 et seq.).

16 (b) INCLUSIONS.—In promulgating regulations under

17 subsection (a), the Secretary shall include provisions that

18 are designed to enhance—

19 (1) the quality and completeness of records;

20 (2) the availability of representative samples;

21 (3) the maintenance of identity and control in

22 the event of an unauthorized release;

23 (4) corrective actions in the event of an unau24 thorized release;

25 (5) protocols for conducting molecular forensics;
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1 (6) clarity in contractual agreements;

2 (7) the use of the latest scientific techniques for

3 isolation and confinement;

4 (8) standards for quality management systems

5 and effective research (including laboratory, green6 house, and field research); and

7 (9) the design of electronic permits to store docu8 ments and other information relating to the permit

9 and notification processes.

10 (c) CONSIDERATION.—In promulgating regulations

11 under subsection (a), the Secretary shall consider—

12 (1) establishing—

13 (A) a system of risk-based categories to clas14 sify each regulated article;

15 (B) a means to identify regulated articles

16 (including the retention of seed samples); and

17 (C) standards for isolation and containment

18 distances; and

19 (2) requiring permit holders—

20 (A) to maintain a positive chain of custody;

21 (B) to provide for the maintenance of

22 records;

23 (C) to provide for the accounting of mate24 rial;

25 (D) to conduct periodic audits;
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1 (E) to establish an appropriate training

2 program;

3 (F) to provide contingency and corrective

4 action plans; and

5 (G) to submit reports as the Secretary con6 siders to be appropriate.

7 SEC. 11078. INVASIVE PEST AND DISEASE EMERGENCY RE8 SPONSE FUNDING CLARIFICATION.

9 The Secretary may provide funds on an emergency

10 basis to States to assist the States in combating invasive

11 pest and disease outbreaks for any appropriate period of

12 years after the date of initial detection by a State of an

13 invasive pest or disease outbreak, as determined by the Sec14 retary.

15 SEC. 11079. PROTECTION OF PETS.

16 (a) SHORT TITLE.—This section may be cited as the

17 ‘‘Pet Safety and Protection Act of 2007’’.

18 (b) RESEARCH FACILITIES.—Section 7 of the Animal

19 Welfare Act (7 U.S.C. 2137) is amended to read as follows:

20 ‘‘SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FA21 CILITIES.

22 ‘‘(a) DEFINITION OF PERSON.—In this section, the

23 term ‘person’ means any individual, partnership, firm,

24 joint stock company, corporation, association, trust, estate,

25 pound, shelter, or other legal entity.
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1 ‘‘(b) USEOF DOGS AND CATS.—No research facility

2 or Federal research facility may use a dog or cat for re3 search or educational purposes if the dog or cat was ob4 tained from a person other than a person described in sub5 section (d).

6 ‘‘(c) SELLING, DONATING, OR OFFERING DOGS AND

7 CATS.—No person, other than a person described in sub8 section (d), may sell, donate, or offer a dog or cat to any

9 research facility or Federal research facility.

10 ‘‘(d) PERMISSIBLE SOURCES.—A person from whom

11 a research facility or a Federal research facility may obtain

12 a dog or cat for research or educational purposes under sub13 section (b), and a person who may sell, donate, or offer a

14 dog or cat to a research facility or a Federal research facil15 ity under subsection (c), shall be—

16 ‘‘(1) a dealer licensed under section 3 that has

17 bred and raised the dog or cat;

18 ‘‘(2) a publicly owned and operated pound or

19 shelter that—

20 ‘‘(A) is registered with the Secretary;

21 ‘‘(B) is in compliance with section 28(a)(1)

22 and with the requirements for dealers in sub23 sections (b) and (c) of section 28; and

24 ‘‘(C) obtained the dog or cat from its legal

25 owner, other than a pound or shelter;
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1 ‘‘(3) a person that is donating the dog or cat and

2 that—

3 ‘‘(A) bred and raised the dog or cat; or

4 ‘‘(B) owned the dog or cat for not less than

5 1 year immediately preceding the donation;

6 ‘‘(4) a research facility licensed by the Secretary;

7 and

8 ‘‘(5) a Federal research facility licensed by the

9 Secretary.

10 ‘‘(e) PENALTIES.—

11 ‘‘(1) IN GENERAL.—A person that violates this

12 section shall be fined $1,000 for each violation.

13 ‘‘(2) ADDITIONAL PENALTY.—A penalty under

14 this subsection shall be in addition to any other ap15 plicable penalty.

16 ‘‘(f) NO REQUIRED SALEOR DONATION.—Nothing in

17 this section requires a pound or shelter to sell, donate, or

18 offer a dog or cat to a research facility or Federal research

19 facility.

20 ‘‘(g) LIMITATION.—The Secretary shall phase out, by

21 the date that is 5 years after the date of enactment of this

22 subsection, the use of random source dogs and cats from

23 class B dealers in accordance with a schedule established

24 by the Secretary.’’.
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1 (c) FEDERAL RESEARCH FACILITIES.—Section 8 of

2 the Animal Welfare Act (7 U.S.C. 2138) is amended—

3 (1) by striking ‘‘SEC. 8. No department’’ and in4 serting the following:

5 ‘‘SEC. 8. FEDERAL RESEARCH FACILITIES.

6 ‘‘Except as provided in section 7, no department’’;

7 (2) by striking ‘‘research or experimentation or’’;

8 and

9 (3) by striking ‘‘such purposes’’ and inserting

10 ‘‘that purpose’’.

11 (d) CERTIFICATION.—Section 28(b)(1) of the Animal

12 Welfare Act (7 U.S.C. 2158(b)(1)) is amended by striking

13 ‘‘individual or entity’’ and inserting ‘‘research facility or

14 Federal research facility’’.

15 SEC. 11080. EXEMPTION FROM AQI USER FEES.

16 (a) IN GENERAL.—Notwithstanding any other provi17 sion of law (including regulations), the owner or operator

18 of any commercial truck described in subsection (b) shall

19 be exempt from the payment of any agricultural quarantine

20 and inspection user fee.

21 (b) COMMERCIAL TRUCKS.—A commercial truck re22 ferred to in subsection (a) is a commercial truck that—

23 (1) originates in the State of Alaska and reenters

24 the customs territory of the United States directly

25 from Canada; or
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1 (2) originates in the customs territory of the

2 United States (other than the State of Alaska) and

3 transits through the customs territory of Canada di4 rectly before entering the State of Alaska.

5 (c) SEALED CARGO AREAS.—A cargo area of any com6 mercial truck carrying an agricultural product shall re7 main sealed during transit through Canada.

8 SEC. 11081. DEPARTMENT OF AGRICULTURE CONFERENCE

9 TRANSPARENCY.

10 (a) REPORTS ON CONFERENCE EXPENDITURES.—For

11 fiscal year 2008 and each fiscal year thereafter, the Sec12 retary shall submit to the Inspector General of the Depart13 ment of Agriculture quarterly reports that describe the costs

14 and contracting procedures relating to each conference or

15 meeting held by the Department of Agriculture during the

16 quarter covered by the report for which the cost to the Fed17 eral Government was more than $10,000.

18 (b) REQUIREMENTS.—Each report submitted under

19 subsection (a) shall include, for each conference and meeting

20 covered by the report—

21 (1) a description of the number participants at22 tending, and the purpose of those participants for at23 tending, the conference or meeting;
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1 (2) a detailed statement of the costs incurred by

2 the Federal Government relating to that conference or

3 meeting, including—

4 (A) the cost of any food or beverages;

5 (B) the cost of any audio-visual services;

6 (C) the cost of all related travel; and

7 (D) a discussion of the methodology used to

8 determine which costs relate to that conference or

9 meeting; and

10 (3) a description of the contracting procedures

11 relating to that conference or meeting, including—

12 (A) whether contracts were awarded on a

13 competitive basis; and

14 (B) a discussion of any cost comparison

15 conducted by the Department of Agriculture in

16 evaluating potential contractors for any con17 ference or meeting.

18 (c) TRAVEL EXPENSES.—

19 (1) DEFINITION OF CONFERENCE.—In this sub20 section, the term ‘‘conference’’ means a meeting

21 that—

22 (A) is held for consultation, education,

23 awareness, or discussion;

24 (B) includes participants who are not all

25 employees of the same agency;
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1 (C) is not held entirely at an agency facil2 ity;

3 (D) involves costs associated with travel and

4 lodging for some participants; and

5 (E) is sponsored by 1 or more agencies, 1

6 or more organizations that are not agencies, or

7 a combination of those agencies or organizations.

8 (2) REPORT.—Not later than September 30 of

9 each fiscal year, the Secretary shall submit to the

10 Committee on Agriculture of the House of Representa11 tives and the Committee on Agriculture, Nutrition,

12 and Forestry of the Senate, and post on the public

13 website of the Department of Agriculture in a search14 able, electronic format, a report on each conference for

15 which the Department of Agriculture paid travel ex16 penses during the fiscal year covered by the report,

17 including—

18 (A) a description of—

19 (i) the itemized expenses paid by the

20 Department of Agriculture, including travel

21 expenses and any other expenditures to sup22 port the conference;

23 (ii) the primary sponsor of the con24 ference; and

25 (iii) the location of the conference; and
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1 (B) in the case of a conference for which the

2 Department of Agriculture was the primary

3 sponsor, a statement that—

4 (i) justifies the location selected;

5 (ii) demonstrates the cost efficiency of

6 the location;

7 (iii) specifies the date or dates of the

8 conference;

9 (iv) includes a brief explanation of the

10 ways in which the conference advanced the

11 mission of the Department of Agriculture;

12 and

13 (v) specifies the total number of indi14 viduals whose travel or attendance at the

15 conference was paid for, in whole or in

16 part, by the Department of Agriculture.

17 SEC. 11082. REPORT RELATING TO THE ENDING OF CHILD18 HOOD HUNGER IN THE UNITED STATES.

19 (a) FINDINGS.—Congress finds that—

20 (1) the United States has the highest rate of

21 childhood poverty in the industrialized world, with

over 1 22 ⁄5 of all children of the United States living in

23 poverty, and almost half of those children living in

24 extreme poverty;
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1 (2) childhood poverty in the United States is

2 growing rather than diminishing;

3 (3) households with children experience hunger

4 at more than double the rate as compared to house5 holds without children;

6 (4) hunger is a major problem in the United

7 States, with the Department of Agriculture reporting

8 that 12 percent of the citizens of the United States

9 (approximately 35,000,000 citizens) could not put

10 food on the table of those citizens at some point dur11 ing 2006;

12 (5) of the 35,000,000 citizens of the United

13 States that have very low food security—

14 (A) 98 percent of those citizens worried that

15 money would run out before those citizens ac16 quired more money to buy more food;

17 (B) 96 percent of those citizens had to cut

18 the size of the meals of those citizens or even go

19 without meals because those citizens did not have

20 enough money to purchase appropriate quan21 tities of food; and

22 (C) 94 percent of those citizens could not af23 ford to eat balanced meals;
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1 (6) the phrase ‘‘people with very low food secu2 rity’’, a new phrase in our national lexicon, in simple

3 terms means ‘‘people who are hungry’’;

4 (7) 30 percent of black and Hispanic children,

5 and 40 percent of low income children, live in house6 holds that do not have access to nutritionally ade7 quate diets that are necessary for an active and

8 healthy life;

9 (8) the increasing lack of access of the citizens of

10 the United States to nutritionally adequate diets is a

11 significant factor from which the Director of the Cen12 ters for Disease Control and Prevention concluded

13 that ‘‘during the past 20 years there has been a dra14 matic increase in obesity in the United States’’;

15 (9) during the last 3 decades, childhood obesity

16 has—

17 (A) more than doubled for preschool chil18 dren and adolescents; and

19 (B) more than tripled for children between

20 the ages of 6 and 11 years;

21 (10) as of the date of enactment of this Act, ap22 proximately 9,000,000 children who are 6 years old

23 or older are considered obese;
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1 (11) scientists have demonstrated that there is an

2 inverse relation between obesity and doing well in

3 school; and

4 (12) a study published in Pediatrics found that

5 ‘‘6- to 11-year-old food-insufficient children had sig6 nificantly lower arithmetic scores and were more like7 ly to have repeated a grade, have seen a psychologist,

8 and have had difficulty getting along with other chil9 dren’’.

10 (b) SENSE OF CONGRESS.—It is the sense of Congress

11 that—

12 (1) it is a national disgrace that many millions

13 of citizens of the United States, a disproportionate

14 number of whom are children, are going hungry in

15 this great nation, which is the wealthiest country in

16 the history of the world;

17 (2) because the strong commitment of the United

18 States to family values is deeply undermined when

19 families and children go hungry, the United States

20 has a moral obligation to abolish hunger; and

21 (3) through a variety of initiatives (including

22 large funding increases in nutrition programs of the

23 Federal Government), the United States should abol24 ish child hunger and food insufficiency in the United

25 States by the 2013.
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1 (c) REPORT.—Not later than 1 year after the date of

2 enactment of this Act, the Secretary shall submit to the rel3 evant committees of Congress a report that describes the best

4 and most cost-effected manner by which the Federal Govern5 ment could allocate an increased amount of funds to new

6 programs and programs in existence as of the date of enact7 ment of this Act to achieve the goal of abolishing child hun8 ger and food insufficiency in the United States by 2013.

9 SEC. 11083. NATIONAL EMERGENCY GRANT TO ADDRESS EF10 FECTS OF GREENSBURG, KANSAS TORNADO.

11 (a) DEFINITIONS.—In this section:

12 (1) COVERED FUNDS.—The term ‘‘covered funds’’

13 means funds provided under section 173 of the Work14 force Investment Act of 1998 (29 U.S.C. 2918) to a

15 State that submits an application under that section

16 not earlier than May 4, 2007, for a national emer17 gency grant to address the effects of the May 4, 2007,

18 Greensburg, Kansas tornado.

19 (2) PROFESSIONAL MUNICIPAL SERVICES.—The

20 term ‘‘professional municipal services’’ means services

21 that are necessary to facilitate the recovery of Greens22 burg, Kansas from that tornado, and necessary to

23 plan for or provide basic management and adminis24 trative services, which may include—
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1 (A) the overall coordination of disaster re2 covery and humanitarian efforts, oversight, and

3 enforcement of building code compliance, and co4 ordination of health and safety response units; or

5 (B) the delivery of humanitarian assistance

6 to individuals affected by that tornado.

7 (b) TEMPORARY PUBLIC SECTOR EMPLOYMENT AND

8 SERVICES.—Covered funds may be used to provide tem9 porary public sector employment and services authorized

10 under section 173 of such Act to individuals affected by such

11 tornado, including individuals who were unemployed on the

12 date of the tornado, or who are without employment history,

13 in addition to individuals who are eligible for disaster relief

14 employment under section 173(d)(2) of such Act.

15 (c) PROFESSIONAL MUNICIPAL SERVICES.—Covered

16 funds may be used to provide professional municipal serv17 ices for a period of not more than 24 months, by hiring

18 or contracting with individuals or organizations (including

19 individuals employed by contractors) that the State in20 volved determines are necessary to provide professional mu21 nicipal services.

22 (d) LIMITATION.—Covered funds expended under this

23 section may be spent on costs incurred not earlier than May

24 4, 2007.
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1 SEC. 11084. REPORT ON PROGRAM RESULTS.

2 Not later than 180 days after the date of enactment

3 of this Act, the Secretary shall submit to Congress a report

4 that describes—

5 (1) each program of the Department of Agri6 culture that has received a Program Assessment Rat7 ing Tool score of ‘‘results not demonstrated’’; and

8 (2) for each such program—

9 (A) the reasons that the program has not

10 been able to demonstrate results;

11 (B) the steps being taken by the program to

12 address those reasons; and

13 (C) a description of anything that might be

14 necessary to facilitate the demonstration of re15 sults.

16 SEC. 11085. SENSE OF THE SENATE ON THE U.S. DEPART17 MENT OF AGRICULTURE’S WILDLIFE SERV18 ICES COMPETING AGAINST PRIVATE INDUS19 TRY FOR NUISANCE BIRD CONTROL WORK.

20 (a) FINDINGS.—The Senate finds that:

21 (1) The Wildlife Services Division of the Animal

22 and Plant Health Inspection Service of the Depart23 ment of Agriculture (referred to in this section as

24 ‘‘Wildlife Services’’ helps agricultural producers man25 age nuisance wildlife problems;
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1 (2) Wildlife Services personnel also manage nui2 sance wildlife in non-agricultural settings, including

3 urban areas;

4 (3) Congress granted the Secretary the authority

5 to engage in wildlife animal damage activities in the

6 Act of March 2, 1931, and the Rural Development,

7 Agriculture and Related Agencies Appropriations Act,

8 1988;

9 (4) Title I of the Rural Development, Agriculture

10 and Related Agencies Appropriations Act, 1988 ex11 pressly prohibits the Secretary from performing

12 ‘‘urban rodent’’ control but does not define the term;

13 (5) There are more than 19,000 professional pest

14 management companies in the United States, a sig15 nificant percentage of which manage nuisance birds

16 such as European starlings, house sparrows, and pi17 geons in urban areas;

18 (6) The industry employs more than 115,000

19 service personnel who perform over 60,000,000 serv20 ices annually for residential and commercial clients

21 in every market of the United States;

22 (7) In areas where the private sector has the ca23 pacity to provide nuisance wildlife services, the lim24 ited resources of Wildlife Services would be better used

25 to assist agricultural producers with management of
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1 predators and other depredatory species that prey on

2 livestock and sport and farm fish, and damage crops.

3 (b) SENSE OF THE SENATE.—It is the Sense of the

4 Senate that—

5 (1) Wildlife Services should neither compete nor

6 condone competition with the private sector for busi7 ness regarding the management of nuisance wildlife

8 problems in urban areas where private sector services

9 are available;

10 (2) Wildlife Services, prior to entering into any

11 cooperative agreement for wildlife damage manage12 ment activities, should inform cooperators of the

13 availability of and their right to acquire services from

14 private service providers;

15 (3) the Secretary of Agriculture should ensure

16 that Wildlife Services does not aggressively compete

17 with the private pest management industry for Euro18 pean starling, house sparrow, and pigeon control

19 work in urban areas where private sector services are

20 available;

21 (4) the Secretary of Agriculture should rely on

22 scientific and widely accepted definitions to define the

23 term ‘‘urban rodent,’’ as used in the Rural Develop24 ment, Agriculture and Related Agencies Appropria-
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1 tions Act of 1988, in order to clarify the express re2 strictions in that law on Wildlife Services activities;

3 (5) the Secretary should direct Wildlife Services

4 to work with private industry, through a Memo5 randum of Understanding, to delineate common areas

6 of cooperation so that issues of competition are ad7 dressed, taking into account the interests of the wild8 life resources and the need to manage damage caused

9 by that resource.

10 SEC. 11086. OVERSIGHT OF NATIONAL AQUATIC ANIMAL

11 HEALTH PLAN.

12 (a) DEFINITIONS.—In this section:

13 (1) ADVISORY COMMITTEE.—The term ‘‘advisory

14 committee’’ means the General Advisory Committee

15 for Oversight of National Aquatic Animal Health es16 tablished under subsection (b)(1).

17 (2) PLAN.—The term ‘‘plan’’ means the national

18 aquatic animal health plan developed by the National

19 Aquatic Animal Health Task Force, composed of rep20 resentatives of the Department of Agriculture, the De21 partment of Commerce (including the National Oce22 anic and Atmospheric Administration), and the De23 partment of the Interior (including the United States

24 Fish and Wildlife Service).
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1 (3) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Agriculture, acting through the Ad3 ministrator of the Animal and Plant Health Inspec4 tion Service.

5 (b) GENERAL ADVISORY COMMITTEE FOR OVERSIGHT

6 OF NATIONAL AQUATIC ANIMAL HEALTH.—

7 (1) ESTABLISHMENT.—Not later than 180 days

8 after the date of enactment of this Act, the Secretary,

9 in consultation with States and the private sector,

10 shall establish an advisory committee, to be known as

11 the ‘‘General Advisory Committee for Oversight of Na12 tional Aquatic Animal Health’’.

13 (2) MEMBERSHIP.—

14 (A) COMPOSITION.—The advisory committee

15 shall—

16 (i) be composed equally of representa17 tives of—

18 (I) State and tribal governments;

19 and

20 (II) commercial aquaculture in21 terests; and

22 (ii) consist of not more than 20 mem23 bers, to be appointed by the Secretary, of

24 whom—
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1 (I) not less than 3 shall be rep2 resentatives of Federal departments or

3 agencies;

4 (II) not less than 6 shall be rep5 resentatives of State or tribal govern6 ments that elect to participate in the

7 plan under subsection (d);

8 (III) not less than 6 shall be rep9 resentatives of affected commercial

10 aquaculture interests; and

11 (IV) not less than 2 shall be

12 aquatic animal health experts, as de13 termined by the Secretary, of whom at

14 least 1 shall be a doctor of veterinary

15 medicine.

16 (B) NOMINATIONS.—The Secretary shall

17 publish in the Federal Register a solicitation for,

18 and may accept, nominations for members of the

19 advisory committee from appropriate entities, as

20 determined by the Secretary.

21 (c) RECOMMENDATIONS.—

22 (1) IN GENERAL.—Not later than 18 months

23 after the date of enactment of this Act, the advisory

24 committee shall develop and submit to the Secretary

25 recommendations regarding—
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1 (A) the establishment and membership of

2 appropriate expert and representative commis3 sions to efficiently implement and administer the

4 plan;

5 (B) disease- and species-specific best man6 agement practices relating to activities carried

7 out under the plan; and

8 (C) the establishment and administration of

9 the indemnification fund under subsection (e).

10 (2) FACTORS FOR CONSIDERATION.—In devel11 oping recommendations under paragraph (1), the ad12 visory committee shall take into consideration all

13 emergency aquaculture-related projects that have been

14 or are being carried out under the plan as of the date

15 of submission of the recommendations.

16 (3) REGULATIONS.—After consideration of the

17 recommendations submitted under this subsection, the

18 Secretary shall promulgate regulations to establish a

19 national aquatic animal health improvement pro20 gram, in accordance with the Animal Health Protec21 tion Act (7 U.S.C. 8301 et seq.).

22 (d) PARTICIPATION BY STATEAND TRIBAL GOVERN23 MENTS AND PRIVATE SECTOR.—
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1 (1) IN GENERAL.—Any State or tribal govern2 ment, and any entity in the private sector, may elect

3 to participate in the plan.

4 (2) DUTIES.—On election by a State or tribal

5 government or entity in the private sector to partici6 pate in the plan under paragraph (1), the State or

7 tribal government or entity shall—

8 (A) submit to the Secretary—

9 (i) a notification of the election; and

10 (ii) nominations for members of the

11 advisory committee, as appropriate; and

12 (B) as a condition of participation, enter

13 into an agreement with the Secretary under

14 which the State or tribal government or entity—

15 (i) assumes responsibility for a portion

16 of the non-Federal share of the costs of car17 rying out the plan, as described in para18 graph (3); and

19 (ii) agrees to act in accordance with

20 applicable disease- and species-specific best

21 management practices relating to activities

22 carried out under the plan by the State or

23 tribal government or entity, as the Sec24 retary determines to be appropriate.

25 (3) NON-FEDERAL SHARE.—
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1 (A) IN GENERAL.—Subject to subparagraph

2 (B), the non-Federal share of the cost of carrying

3 out the plan—

4 (i) shall be determined—

5 (I) by the Secretary, in consulta6 tion with the advisory committee; and

7 (II) on a case-by-case basis for

8 each project carried out under the

9 plan; and

10 (ii) may be provided by State and

11 tribal governments and entities in the pri12 vate sector in cash or in-kind.

13 (B) DEPOSITS INTO INDEMNIFICATION

14 FUND.—The non-Federal share of amounts in the

15 indemnification fund provided by each State or

16 tribal government or entity in the private sector

17 shall be—

18 (i) zero with respect to the initial de19 posit into the fund; and

20 (ii) determined on a case-by-case basis

21 for each project carried out under the plan.

22 (e) INDEMNIFICATION FUND.—

23 (1) ESTABLISHMENT.—The Secretary, in con24 sultation with the advisory committee, shall establish

25 a fund, to be known as the ‘‘indemnification fund’’,
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1 consisting of such amounts as are initially deposited

2 into the fund by the Secretary under subsection

3 (g)(1).

4 (2) USES.—The Secretary shall use amounts in

5 the indemnification fund only to compensate aquatic

6 farmers—

7 (A) the entire inventory of livestock or

8 gametes of which is eradicated as a result of a

9 disease control or eradication measure carried

10 out under the plan; or

11 (B) for the cost of disinfecting, destruction,

12 and cleaning products or equipment in response

13 to a depopulation order carried out under the

14 plan.

15 (3) UNUSED AMOUNTS.—Amounts remaining in

16 the indemnification fund on September 30 of the fis17 cal year for which the amounts were appropriated—

18 (A) shall remain in the fund;

19 (B) may be used in any subsequent fiscal

20 year in accordance with paragraph (2); and

21 (C) shall not be reprogrammed by the Sec22 retary for any other use.

23 (f) REVIEW.—Not later than 2 years after the date of

24 enactment of this Act, the Secretary, in consultation with
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1 the advisory committee, shall review, and submit to Con2 gress a report regarding—

3 (1) activities carried out under the plan during

4 the preceding 2 years;

5 (2) activities carried out by the advisory com6 mittee; and

7 (3) recommendations for funding for subsequent

8 fiscal years to carry out this section.

9 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

10 authorized to be appropriated to carry out this section

11 $15,000,000 for each of fiscal years 2008 and 2009, of

12 which—

13 (1) not less than 50 percent shall be deposited

14 into the indemnification fund established under sub15 section (e) for use in accordance with that subsection;

16 and

17 (2) not more than 50 percent shall be used for

18 the costs of carrying out the plan, including the costs

19 of—

20 (A) administration of the plan;

21 (B) implementation of the plan;

22 (C) training and laboratory testing;

23 (D) cleaning and disinfection associated

24 with depopulation orders; and
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1 (E) public education and outreach activi2 ties.

3 SEC. 11087. FOOD SAFETY IMPROVEMENT.

4 (a) REPORTABLE FOOD REGISTRIES.—

5 (1) FEDERAL MEAT INSPECTION.—The Federal

6 Meat Inspection Act is amended—

7 (A) by redesignating section 411 (21 U.S.C.

8 680) as section 412; and

9 (B) by inserting after section 410 (21

10 U.S.C. 679a) the following:

11 ‘‘SEC. 411. REPORTABLE FOOD EVENT.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) REPORTABLE FOOD.—The term ‘reportable

14 food’ means meat or a meat food product under this

15 Act for which there is a reasonable probability that

16 the use of, or exposure to, the meat or meat food prod17 uct will cause serious adverse health consequences or

18 death to humans or animals.

19 ‘‘(2) REGISTRY.—The term ‘Registry’ means the

20 registry established under subsection (b).

21 ‘‘(3) RESPONSIBLE PARTY.—The term ‘respon22 sible party’, with respect to a reportable food, means

23 an operator of an establishment subject to inspection

24 under this Act at which the reportable food is manu25 factured, processed, packed, or held.
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1 ‘‘(b) ESTABLISHMENT.—

2 ‘‘(1) IN GENERAL.—Not later than 1 year after

3 the date of enactment of the Food and Energy Secu4 rity Act of 2007, the Secretary shall establish within

5 the Department of Agriculture a Reportable Meat

6 Registry to which information concerning reportable

7 food may be submitted via an electronic portal,

8 from—

9 ‘‘(A) employees of the Food Safety and In10 spection Service;

11 ‘‘(B) Federal, State, and local public health

12 officials; and

13 ‘‘(C) responsible parties.

14 ‘‘(2) REVIEW BY SECRETARY.—The Secretary

15 shall promptly review and assess the information sub16 mitted under paragraph (1) for the purposes of—

17 ‘‘(A) identifying reportable food;

18 ‘‘(B) submitting entries to the Registry;

19 ‘‘(C) taking actions under subsection (c);

20 and

21 ‘‘(D) exercising other food safety authority

22 of the Secretary to protect the health and safety

23 of humans and animals.

24 ‘‘(c) ISSUANCEOF AN ALERT BY THE SECRETARY.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall issue, or

2 cause to be issued, an alert or a notification with re3 spect to a reportable food using information from the

4 Registry as the Secretary considers necessary to pro5 tect the health and safety of humans and animals.

6 ‘‘(2) EFFECT.—Paragraph (1) shall not affect

7 the authority of the Secretary to issue an alert or a

8 notification under any other provision of law.

9 ‘‘(d) REPORTING AND NOTIFICATION.—

10 ‘‘(1) IN GENERAL.—Except as provided in para11 graph (2), as soon as practicable, but in no case later

12 than 24 hours after a responsible party determines

13 that meat or meat food product is a reportable food,

14 the responsible party shall—

15 ‘‘(A) submit a report to the Secretary

16 through the Registry that includes information

17 described in subsection (e) (other than the infor18 mation described in paragraphs (7), (8), and (9)

19 of that subsection); and

20 ‘‘(B) investigate the cause of the event that

21 caused the meat or meat food product to be a re22 portable food, if the reportable food originated

23 with the responsible party.
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1 ‘‘(2) NO REPORT REQUIRED.—A responsible

2 party shall not be required to submit a report under

3 paragraph (1) if—

4 ‘‘(A) the adulteration or misbranding origi5 nated with the responsible party;

6 ‘‘(B) the responsible party detected the adul7 teration or misbranding prior to any transfer to

8 another person of the meat or meat food product;

9 and

10 ‘‘(C) the responsible party—

11 ‘‘(i) corrected the adulteration or mis12 branding; or

13 ‘‘(ii) destroyed or caused the destruc14 tion of the meat or meat food product.

15 ‘‘(3) REPORT NUMBER.—The Secretary shall en16 sure that, upon submission of a report under para17 graph (1), a unique number is issued through the

18 Registry to the person submitting the report, by which

19 the Secretary is able—

20 ‘‘(A) to link reports about the reportable

21 food submitted and amended under this sub22 section; and

23 ‘‘(B) identify the supply chain for the re24 portable food.
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1 ‘‘(4) RESPONSE TO REPORT SUBMITTED BY A RE2 SPONSIBLEPARTY.—After consultation with the re3 sponsible party that submitted a report under para4 graph (1), the Secretary may require the responsible

5 party to perform, as soon as practicable, but in no

6 case later than a time specified by the Secretary, 1

7 or more of the following, as determined by the Sec8 retary:

9 ‘‘(A) Amend the report submitted by the re10 sponsible party under paragraph (1) to include

11 the information described in subsection (e)(8).

12 ‘‘(B) Provide a notification—

13 ‘‘(i) to the immediate previous source

14 of the reportable food;

15 ‘‘(ii) to the immediate subsequent re16 cipient of the reportable food; and

17 ‘‘(iii) that includes—

18 ‘‘(I) the information described in

19 subsection (e) that the Secretary con20 siders necessary;

21 ‘‘(II) the actions described under

22 paragraph (5) that the recipient of the

23 notification shall perform, as required

24 by the Secretary; and
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1 ‘‘(III) any other information that

2 the Secretary may require.

3 ‘‘(5) SUBSEQUENT REPORTS AND NOTIFICA4 TIONS.—Except as provided in paragraph (6), the

5 Secretary may require a responsible party to perform,

6 as soon as practicable, but in no case later than a

7 time specified by the Secretary, after the responsible

8 party receives a notification under subparagraph (C)

9 or paragraph (4)(B), 1 or more of the following:

10 ‘‘(A) Submit a report to the Secretary

11 through the Registry established under subsection

12 (b) that includes the information described in

13 subsection (e) and other information that the

14 Secretary considers necessary.

15 ‘‘(B) Investigate the cause of the adultera16 tion or misbranding if the adulteration or mis17 branding of the reportable food may have origi18 nated with the responsible party.

19 ‘‘(C) Provide a notification—

20 ‘‘(i) to the immediate previous source

21 of the reportable food;

22 ‘‘(ii) to the immediate subsequent re23 cipient of the reportable food; and

24 ‘‘(iii) that includes—
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1 ‘‘(I) the information described in

2 subsection (e) that the Secretary con3 siders necessary;

4 ‘‘(II) the actions described under

5 this paragraph that the recipient of the

6 notification shall perform, as required

7 by the Secretary; and

8 ‘‘(III) any other information that

9 the Secretary may require.

10 ‘‘(6) AMENDED REPORT.—If a responsible party

11 receives a notification under paragraph (4)(B) or

12 paragraph (5)(C) with respect to a reportable food

13 after the responsible party has submitted a report to

14 the Secretary under paragraph (1) with respect to the

15 reportable food, the responsible party—

16 ‘‘(A) shall not be required to submit an ad17 ditional report or make a notification under

18 paragraph (5); and

19 ‘‘(B) the responsible party shall amend the

20 report submitted by the responsible party under

21 paragraph (1) to include the information de22 scribed in paragraph (7), and, with respect to

23 both the notification and the report, paragraph

24 (10) of subsection (e).
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1 ‘‘(e) INFORMATION.—The information described in this

2 subsection is the following:

3 ‘‘(1) The date on which the meat or meat food

4 product was determined to be a reportable food.

5 ‘‘(2) A description of the reportable food, includ6 ing the quantity of the reportable food.

7 ‘‘(3) The extent and nature of the adulteration or

8 misbranding.

9 ‘‘(4) If the adulteration or misbranding of the re10 portable food may have originated with the respon11 sible party, the results of the investigation required

12 under paragraph (1)(B) or (5)(B) of subsection (d),

13 as applicable, and when known.

14 ‘‘(5) The disposition of the reportable food, if

15 known.

16 ‘‘(6) Product information typically found on

17 packaging including product codes, use-by dates, and

18 the names of manufacturers, packers, or distributors

19 sufficient to identify the reportable food.

20 ‘‘(7) Contact information for the responsible

21 party.

22 ‘‘(8) The contact information for parties directly

23 linked in the supply chain and notified under para24 graph (4)(B) or (5)(C) of subsection (d), as applica25 ble.
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1 ‘‘(9) The information required by the Secretary

2 to be included in a notification provided by the re3 sponsible party involved under paragraph (4)(B) or

4 (5)(C) of subsection (d) or required in a report under

5 subsection (d)(5)(A).

6 ‘‘(10) The unique number described in subsection

7 (d)(3).

8 ‘‘(f) COORDINATION OF FEDERAL, STATE, AND LOCAL

9 EFFORTS.—

10 ‘‘(1) FOOD AND DRUG ADMINISTRATION.—In car11 rying out this section, the Secretary shall—

12 ‘‘(A) share information and coordinate reg13 ulatory efforts with the Commissioner of Food

14 and Drugs; and

15 ‘‘(B) if the Secretary receives a report sub16 mitted about a food within the jurisdiction of the

17 Commissioner, promptly provide the report to

18 the Commissioner.

19 ‘‘(2) STATES AND LOCALITIES.—In carrying out

20 this section, the Secretary shall work with the State

21 and local public health officials to share information

22 that is not confidential commercial or financial infor23 mation protected under section 552(b)(4) of title 5,

24 United States Code, and coordinate regulatory efforts,

25 in order to—
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1 ‘‘(A) help to ensure coverage of the safety of

2 the food supply chain, including those establish3 ments regulated by the States and localities that

4 are not regulated under this Act; and

5 ‘‘(B) reduce duplicative regulatory efforts.

6 ‘‘(g) MAINTENANCE AND INSPECTION OF RECORDS.—

7 ‘‘(1) IN GENERAL.—The responsible party shall

8 maintain records related to each report received, noti9 fication made, and report submitted to the Secretary

10 under this section for at least 2 years.

11 ‘‘(2) INSPECTION.—A responsible party shall, at

12 the request of the Secretary, permit inspection of

13 records maintained under paragraph (1).

14 ‘‘(h) REQUEST FOR INFORMATION.—Section 552 of

15 title 5, United States Code, shall apply to any request for

16 information regarding a record in the Registry.

17 ‘‘(i) SAFETY REPORT.—A report or notification under

18 subsection (d) may be accompanied by a statement, which

19 shall be part of any report released for public disclosure,

20 that denies that the report or the notification constitutes

21 an admission that the product involved caused or contrib22 uted to a death, serious injury, or serious illness.

23 ‘‘(j) ADMISSION.—A report or notification under this

24 section shall not be considered an admission that the report-
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1 able food involved is adulterated, misbranded, or caused or

2 contributed to a death, serious injury, or serious illness.

3 ‘‘(k) HOMELAND SECURITY NOTIFICATION.—If, after

4 receiving a report under subsection (d), the Secretary be5 lieves the reportable food may have been deliberately adul6 terated or misbranded, the Secretary shall—

7 ‘‘(1) immediately notify the Secretary of Home8 land Security; and

9 ‘‘(2) make relevant information from the Reg10 istry available to the Secretary of Homeland Secu11 rity.

12 ‘‘(l) VIOLATIONS.—A responsible party that fails to

13 comply with any requirement of this section shall be subject

14 to an appropriate penalty under section 406.’’.

15 (2) POULTRY PRODUCTS INSPECTION ACT.—The

16 Poultry Products Inspection Act is amended by in17 serting after section 10 (21 U.S.C. 459) the following:

18 ‘‘SEC. 10A. REPORTABLE FOOD EVENT.

19 ‘‘(a) DEFINITIONS.—In this section:

20 ‘‘(1) REPORTABLE FOOD.—The term ‘reportable

21 food’ means poultry or a poultry product under this

22 Act for which there is a reasonable probability that

23 the use of, or exposure to, the poultry or poultry prod24 uct will cause serious adverse health consequences or

25 death to humans or animals.
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1 ‘‘(2) REGISTRY.—The term ‘Registry’ means the

2 registry established under subsection (b).

3 ‘‘(3) RESPONSIBLE PARTY.—The term ‘respon4 sible party’, with respect to a reportable food, means

5 an operator of an official establishment.

6 ‘‘(b) ESTABLISHMENT.—

7 ‘‘(1) IN GENERAL.—Not later than 1 year after

8 the date of enactment of the Food and Energy Secu9 rity Act of 2007, the Secretary shall establish within

10 the Department of Agriculture a Reportable Poultry

11 Registry to which information concerning reportable

12 food may be submitted via an electronic portal,

13 from—

14 ‘‘(A) employees of the Food Safety and In15 spection Service;

16 ‘‘(B) Federal, State, and local public health

17 officials; and

18 ‘‘(C) responsible parties.

19 ‘‘(2) REVIEW BY SECRETARY.—The Secretary

20 shall promptly review and assess the information sub21 mitted under paragraph (1) for the purposes of—

22 ‘‘(A) identifying reportable food;

23 ‘‘(B) submitting entries to the Registry;

24 ‘‘(C) taking actions under subsection (c);

25 and
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1 ‘‘(D) exercising other food safety authority

2 of the Secretary to protect the health and safety

3 of humans and animals.

4 ‘‘(c) ISSUANCEOF AN ALERT BY THE SECRETARY.—

5 ‘‘(1) IN GENERAL.—The Secretary shall issue, or

6 cause to be issued, an alert or a notification with re7 spect to a reportable food using information from the

8 Registry as the Secretary considers necessary to pro9 tect the health and safety of humans and animals.

10 ‘‘(2) EFFECT.—Paragraph (1) shall not affect

11 the authority of the Secretary to issue an alert or a

12 notification under any other provision of law.

13 ‘‘(d) REPORTING AND NOTIFICATION.—

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), as soon as practicable, but in no case later

16 than 24 hours after a responsible party determines

17 that poultry or poultry product is a reportable food,

18 the responsible party shall—

19 ‘‘(A) submit a report to the Secretary

20 through the Registry that includes information

21 described in subsection (e) (other than the infor22 mation described in paragraphs (7), (8), and (9)

23 of that subsection); and

24 ‘‘(B) investigate the cause of the event that

25 caused the poultry or poultry product to be a re-
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1 portable food, if the reportable food originated

2 with the responsible party.

3 ‘‘(2) NO REPORT REQUIRED.—A responsible

4 party shall not be required to submit a report under

5 paragraph (1) if—

6 ‘‘(A) the adulteration or misbranding origi7 nated with the responsible party;

8 ‘‘(B) the responsible party detected the adul9 teration or misbranding prior to any transfer to

10 another person of the poultry or poultry product;

11 and

12 ‘‘(C) the responsible party—

13 ‘‘(i) corrected the adulteration or mis14 branding; or

15 ‘‘(ii) destroyed or caused the destruc16 tion of the poultry or poultry product.

17 ‘‘(3) REPORT NUMBER.—The Secretary shall en18 sure that, upon submission of a report under para19 graph (1), a unique number is issued through the

20 Registry to the person submitting the report, by which

21 the Secretary is able—

22 ‘‘(A) to link reports about the reportable

23 food submitted and amended under this sub24 section; and
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1 ‘‘(B) identify the supply chain for the re2 portable food.

3 ‘‘(4) RESPONSE TO REPORT SUBMITTED BY A RE4 SPONSIBLEPARTY.—After consultation with the re5 sponsible party that submitted a report under para6 graph (1), the Secretary may require the responsible

7 party to perform, as soon as practicable, but in no

8 case later than a time specified by the Secretary, 1

9 or more of the following, as determined by the Sec10 retary:

11 ‘‘(A) Amend the report submitted by the re12 sponsible party under paragraph (1) to include

13 the information described in subsection (e)(8).

14 ‘‘(B) Provide a notification—

15 ‘‘(i) to the immediate previous source

16 of the reportable food;

17 ‘‘(ii) to the immediate subsequent re18 cipient of the reportable food; and

19 ‘‘(iii) that includes—

20 ‘‘(I) the information described in

21 subsection (e) that the Secretary con22 siders necessary;

23 ‘‘(II) the actions described under

24 paragraph (5) that the recipient of the
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1 notification shall perform, as required

2 by the Secretary; and

3 ‘‘(III) any other information that

4 the Secretary may require.

5 ‘‘(5) SUBSEQUENT REPORTS AND NOTIFICA6 TIONS.—Except as provided in paragraph (6), the

7 Secretary may require a responsible party to perform,

8 as soon as practicable, but in no case later than a

9 time specified by the Secretary, after the responsible

10 party receives a notification under subparagraph (C)

11 or paragraph (4)(B), 1 or more of the following:

12 ‘‘(A) Submit a report to the Secretary

13 through the Registry established under subsection

14 (b) that includes the information described in

15 subsection (e) and other information that the

16 Secretary considers necessary.

17 ‘‘(B) Investigate the cause of the adultera18 tion or misbranding if the adulteration or mis19 branding of the reportable food may have origi20 nated with the responsible party.

21 ‘‘(C) Provide a notification—

22 ‘‘(i) to the immediate previous source

23 of the reportable food;

24 ‘‘(ii) to the immediate subsequent re25 cipient of the reportable food; and
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1 ‘‘(iii) that includes—

2 ‘‘(I) the information described in

3 subsection (e) that the Secretary con4 siders necessary;

5 ‘‘(II) the actions described under

6 this paragraph that the recipient of the

7 notification shall perform, as required

8 by the Secretary; and

9 ‘‘(III) any other information that

10 the Secretary may require.

11 ‘‘(6) AMENDED REPORT.—If a responsible party

12 receives a notification under paragraph (4)(B) or

13 paragraph (5)(C) with respect to a reportable food

14 after the responsible party has submitted a report to

15 the Secretary under paragraph (1) with respect to the

16 reportable food, the responsible party—

17 ‘‘(A) shall not be required to submit an ad18 ditional report or make a notification under

19 paragraph (5); and

20 ‘‘(B) the responsible party shall amend the

21 report submitted by the responsible party under

22 paragraph (1) to include the information de23 scribed in paragraph (7), and, with respect to

24 both the notification and the report, paragraph

25 (10) of subsection (e).
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1 ‘‘(e) INFORMATION.—The information described in this

2 subsection is the following:

3 ‘‘(1) The date on which the poultry or poultry

4 product was determined to be a reportable food.

5 ‘‘(2) A description of the reportable food, includ6 ing the quantity of the reportable food.

7 ‘‘(3) The extent and nature of the adulteration or

8 misbranding.

9 ‘‘(4) If the adulteration or misbranding of the re10 portable food may have originated with the respon11 sible party, the results of the investigation required

12 under paragraph (1)(B) or (5)(B) of subsection (d),

13 as applicable, and when known.

14 ‘‘(5) The disposition of the reportable food, if

15 known.

16 ‘‘(6) Product information typically found on

17 packaging including product codes, use-by dates, and

18 the names of manufacturers, packers, or distributors

19 sufficient to identify the reportable food.

20 ‘‘(7) Contact information for the responsible

21 party.

22 ‘‘(8) The contact information for parties directly

23 linked in the supply chain and notified under para24 graph (4)(B) or (5)(C) of subsection (d), as applica25 ble.
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1 ‘‘(9) The information required by the Secretary

2 to be included in a notification provided by the re3 sponsible party involved under paragraph (4)(B) or

4 (5)(C) of subsection (d) or required in a report under

5 subsection (d)(5)(A).

6 ‘‘(10) The unique number described in subsection

7 (d)(3).

8 ‘‘(f) COORDINATION OF FEDERAL, STATE, AND LOCAL

9 EFFORTS.—

10 ‘‘(1) FOOD AND DRUG ADMINISTRATION.—In car11 rying out this section, the Secretary shall—

12 ‘‘(A) share information and coordinate reg13 ulatory efforts with the Commissioner of Food

14 and Drugs; and

15 ‘‘(B) if the Secretary receives a report sub16 mitted about a food within the jurisdiction of the

17 Commissioner, promptly provide the report to

18 the Commissioner.

19 ‘‘(2) STATES AND LOCALITIES.—In carrying out

20 this section, the Secretary shall work with the State

21 and local public health officials to share information

22 that is not confidential commercial or financial infor23 mation protected under section 552(b)(4) of title 5,

24 United States Code, and coordinate regulatory efforts,

25 in order to—
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1 ‘‘(A) help to ensure coverage of the safety of

2 the food supply chain, including those establish3 ments regulated by the States and localities that

4 are not regulated under this Act; and

5 ‘‘(B) reduce duplicative regulatory efforts.

6 ‘‘(g) MAINTENANCE AND INSPECTION OF RECORDS.—

7 ‘‘(1) IN GENERAL.—The responsible party shall

8 maintain records related to each report received, noti9 fication made, and report submitted to the Secretary

10 under this section for at least 2 years.

11 ‘‘(2) INSPECTION.—A responsible party shall, at

12 the request of the Secretary, permit inspection of

13 records maintained under paragraph (1).

14 ‘‘(h) REQUEST FOR INFORMATION.—Section 552 of

15 title 5, United States Code, shall apply to any request for

16 information regarding a record in the Registry.

17 ‘‘(i) SAFETY REPORT.—A report or notification under

18 subsection (d) may be accompanied by a statement, which

19 shall be part of any report released for public disclosure,

20 that denies that the report or the notification constitutes

21 an admission that the product involved caused or contrib22 uted to a death, serious injury, or serious illness.

23 ‘‘(j) ADMISSION.—A report or notification under this

24 section shall not be considered an admission that the report-
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1 able food involved is adulterated, misbranded, or caused or

2 contributed to a death, serious injury, or serious illness.

3 ‘‘(k) HOMELAND SECURITY NOTIFICATION.—If, after

4 receiving a report under subsection (d), the Secretary be5 lieves the reportable food may have been deliberately adul6 terated or misbranded, the Secretary shall—

7 ‘‘(1) immediately notify the Secretary of Home8 land Security; and

9 ‘‘(2) make relevant information from the Reg10 istry available to the Secretary of Homeland Secu11 rity.

12 ‘‘(l) PENALTIES.—A responsible party that fails to

13 comply with any requirement of this section shall be subject

14 to an appropriate penalty under section 12.’’.

15 (3) CONFORMING AMENDMENT.—Section 12(a) of

16 the Poultry Products Inspection Act (21 U.S.C.

17 461(a)) is amended by inserting ‘‘10A,’’ after ‘‘10,’’.

18 (4) EFFECTIVE DATE.—The amendments made

19 by the subsection take effect on the date that is 1 year

20 after the date of enactment of this Act.

21 (5) GUIDANCE.—Not later than 270 days after

22 the date of enactment of this Act, the Secretary shall

23 issue a guidance to industry relating to—

24 (A) the submission of reports to the reg25 istries established under section 411 of the Fed-
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1 eral Meat Inspection Act (as amended by para2 graph (1)) and section 10A of the Poultry Prod3 ucts Inspection Act (as amended by paragraph

4 (2)); and

5 (B) the provision of notification to other

6 persons in the supply chain of reportable food

7 under those sections.

8 (6) EFFECT.—Nothing in this subsection, or an

9 amendment made by this subsection, alters the juris10 diction between the Secretary and the Secretary of

11 Health and Human Services, under applicable law

12 (including regulations).

13 (b) SUPPLEMENTAL PLANS AND REASSESSMENTS.—

14 The Secretary shall require that each establishment required

15 by the Secretary to have a hazard analysis and critical con16 trol point plan in accordance with the final rule of the Sec17 retary (61 Fed. Reg. 38806 (July 25, 1996)) shall submit

18 to the Secretary, in writing—

19 (1) at a minimum, a recall plan described in

20 Directive 8080.1, Rev. 4 (May 24, 2004) of the Food

21 Safety and Inspection Service (or a successor direc22 tive); and

23 (2) for beef products, an E. coli reassessment de24 scribed in the supplementary information relating to

25 E. coli O157: H7 Contamination of Beef Products (67
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1 Fed. Reg. 62325 (October 7, 2002); part 417 of title

2 9, Code of Federal Regulations).

3 (c) SANITARY TRANSPORTATION OF FOOD.—

4 (1) IN GENERAL.—Not later than 1 year after

5 the date of enactment of this Act, the Secretary of

6 Health and Human Services shall promulgate regula7 tions described in section 416(b) of the Federal Food,

8 Drug, and Cosmetic Act (21 U.S.C. 350e(b)).

9 (2) MEMORANDUM OF UNDERSTANDING.—Not

10 later than 180 days after the date of enactment of this

11 Act, the Secretary, the Secretary of Health and

12 Human Services, and the Secretary of Transportation

13 shall enter into a memorandum of understanding to

14 ensure that the Secretaries work together effectively to

15 ensure the safety and security of the food supply of

16 the United States, particularly in relation to dis17 tribution channels involving transportation (as de18 scribed in the withdrawal of notices of proposed rule19 making (70 Fed. Reg. 76228 (December 23, 2005))).

20 SEC. 11088. OFFICE OF SMALL FARMS AND BEGINNING

21 FARMERS AND RANCHERS.

22 (a) IN GENERAL.—Subtitle B of title II of the Depart23 ment of Agriculture Reorganization Act of 1994 (as amend24 ed by section 11059(a)) is amended by inserting after sec25 tion 226B the following:
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1 ‘‘SEC. 226C. OFFICE OF SMALL FARMS AND BEGINNING

2 FARMERS AND RANCHERS.

3 ‘‘(a) ESTABLISHMENT.—Not less than 180 days after

4 the date of enactment of this section, the Secretary shall

5 establish and maintain within the executive operations of

6 the Department an office, to be known as the ‘Office of

7 Small Farms and Beginning Farmers and Ranchers’ (re8 ferred to in this section as the ‘Office’).

9 ‘‘(b) PURPOSES.—The purposes of the Office are—

10 ‘‘(1) to ensure coordination across all agencies of

11 the Department—

12 ‘‘(A) to improve use of the programs and

13 services of the Department; and

14 ‘‘(B) to enhance the viability of small, be15 ginning, and socially disadvantaged farmers and

16 ranchers and others, as the Secretary determines

17 to be necessary;

18 ‘‘(2) to ensure small, beginning, and socially dis19 advantaged farmers and ranchers access to, and equi20 table participation in, commodity, credit, risk man21 agement and disaster protection, conservation, mar22 keting, nutrition, value-added, rural development,

23 and other programs and services of the Department;

24 ‘‘(3) to ensure that the number and economic

25 contributions of small, limited-resource, beginning,

26 and socially disadvantaged farmers and ranchers are
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1 accurately reflected in the Census of Agriculture and

2 in other reports; and

3 ‘‘(4) to assess and enhance the effectiveness of

4 outreach and programs of the Department—

5 ‘‘(A) to reduce barriers to program partici6 pation;

7 ‘‘(B) to improve service provided through

8 programs of the Department to small, beginning,

9 and socially disadvantaged farmers and ranch10 ers; and

11 ‘‘(C) by suggesting to the Secretary new ini12 tiatives and programs to better serve the needs of

13 small, socially disadvantaged, and beginning

14 farmers and ranchers.

15 ‘‘(c) DIRECTOR.—

16 ‘‘(1) IN GENERAL.—The Office shall be headed by

17 a Director.

18 ‘‘(2) ASSUMPTION OF DUTIES.—Effective on the

19 date of establishment of the Office under subsection

20 (a), the Director shall assume the duties and per21 sonnel of the Director of Small Farms Coordination,

22 as in existence on the day before the date of enactment

23 of this section.

24 ‘‘(d) DUTIES.—The Office shall—
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1 ‘‘(1) in collaboration with such other agencies

2 and offices of the Department as the Secretary deter3 mines to be necessary, develop and implement a plan

4 to coordinate the activities established under Depart5 mental Regulation 9700–1 (August 3, 2006), includ6 ing activities of the Small and Beginning Farmers

7 and Ranchers Council and services provided by the

8 Department to small farms and beginning farmers

9 and ranchers;

10 ‘‘(2) coordinate with the Office of Outreach to

11 provide consultation, training, and liaison activities

12 with eligible entities (as defined in section 2501(e) of

13 the Food, Agriculture, Conservation, and Trade Act of

14 1990 7 U.S.C. 2279(e));

15 ‘‘(3) cooperate with, and monitor, agencies and

16 offices of the Department to ensure that the Depart17 ment is meeting the needs of small farms and of be18 ginning farmers and ranchers;

19 ‘‘(4) establish cross-cutting and strategic depart20 mental goals and objectives for small farms and be21 ginning farmers and ranchers and for each associated

22 program;

23 ‘‘(5) provide input to agencies and offices of the

24 Department on program and policy decisions to en-
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1 sure that the interests of small farms and of begin2 ning farmers and ranchers are represented;

3 ‘‘(6) measure outcomes of all small farm pro4 grams and beginning farmer and rancher programs

5 and track progress made in achieving the goals of the

6 programs;

7 ‘‘(7) supervise data collection by agencies and of8 fices of the Department regarding characteristics of

9 small farms and beginning farmers and ranchers to

10 ensure that the goals and objectives, and measures

11 carried out to achieve those goals and objectives, can

12 be measured and evaluated; and

13 ‘‘(8) carry out any other related duties that the

14 Secretary determines to be appropriate.

15 ‘‘(e) OUTREACH.—The Office shall establish and main16 tain an Internet website—

17 ‘‘(1) to share information with interested pro18 ducers; and

19 ‘‘(2) to collect and respond to comments from

20 small and beginning farmers and ranchers, including

21 comments of the Small and Beginning Farmers and

22 Ranchers Council.

23 ‘‘(f) RESOURCES.—Using funds made available to the

24 Secretary in appropriations Acts, the Secretary shall pro25 vide to the Office such human and capital resources as are
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1 sufficient to allow the Office to carry out the duties of the

2 Office under this section in a timely and efficient manner.

3 ‘‘(g) ANNUAL REPORT.—The Secretary shall submit to

4 the Committee on Agriculture of the House of Representa5 tives and the Committee on Agriculture, Nutrition, and

6 Forestry of the Senate annual reports that describe actions

7 taken by the Office during the preceding calendar year to

8 advance the interests of small farms and beginning farmers

9 and ranchers.’’.

10 (b) CONFORMING AMENDMENT.—Section 296(b) of the

11 Department of Agriculture Reorganization Act of 1994 (7

12 U.S.C. 7014(b)) is amended—

13 (1) in paragraph (6) (as added by section

14 7401(c)(1)), by striking ‘‘or’’ at the end;

15 (2) in paragraph (7) (as added by section

16 11059(b)), by striking the period at the end and in17 serting ‘‘; or’’; and

18 (3) by adding at the end the following:

19 ‘‘(8) the authority of the Secretary to establish in

20 the Department the Office of Small Farms and Begin21 ning Farmers and Ranchers in accordance with sec22 tion 226C.’’.
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1 SEC. 11089. STUDY OF IMPACTS OF LOCAL FOOD SYSTEMS

2 AND COMMERCE.

3 (a) STUDY.—The Secretary shall conduct a study on

4 the impacts of local food systems and commerce that shall,

5 at a minimum—

6 (1) develop a working definition of local food

7 systems and commerce; and

8 (2) identify indicators, and include an assess9 ment of—

10 (A) the market share of local food systems

11 and commerce throughout the United States and

12 by region;

13 (B) the potential community, economic,

14 health and nutrition, environmental, food safety,

15 and food security impacts of advancing local

16 food systems and commerce;

17 (C) the potential energy, transportation,

18 water resource, and climate change impacts of

19 local food systems and commerce;

20 (D) the structure of agricultural consider21 ations and impacts throughout the United States

22 and by region;

23 (E) the interest of agricultural producers in

24 diversifying to access local markets and the bar25 riers and opportunities confronted by agricul26 tural producers in the process of diversification;
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1 (F) the current availability and present and

2 future need of independent processing plants that

3 cater to local food commerce, including difficulty

4 in meeting regulatory requirements;

5 (G) the key gaps in food processing, dis6 tribution, marketing, and economic development,

7 including regional differences in infrastructure

8 gaps and other barriers;

9 (H) the role of public and private institu10 tions and institutional and governmental buying

11 systems and procurement policies in purchasing

12 products through local food systems;

13 (I) the benefits and challenges for children

14 and families in the most vulnerable rural and

15 urban sectors of the United States; and

16 (J) the challenges that prevent local foods

17 from comprising a larger share of the per capita

18 food consumption in the United States, and ex19 isting and potential strategies, policies, and pro20 grams to address those challenges.

21 (b) COLLABORATION.—

22 (1) IN GENERAL.—The Secretary shall appoint a

23 collaborative study team to oversee and conduct the

24 research necessary to conduct the study described in
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1 subsection (a) and the case studies described in sub2 section (c).

3 (2) MEMBERSHIP.—The study team shall include

4 representatives of—

5 (A) the Economic Research Service, Agricul6 tural Marketing Service, and other appropriate

7 agencies of the Department of Agriculture or

8 other Federal agencies;

9 (B) the Environmental Protection Agency;

10 (C) institutions of higher education, includ11 ing at least 1 institution of higher education rep12 resentative from each of the regions studied;

13 (D) small farmers;

14 (E) nongovernmental organizations with

15 appropriate expertise; and

16 (F) State and local governments.

17 (c) CASE STUDIES.—

18 (1) IN GENERAL.—The study team appointed by

19 the Secretary under subsection (b) shall carry out case

20 studies in representative production and marketing

21 regions in the United States to address the issues

22 being studied under subsection (a).

23 (2) REQUIREMENTS.—In carrying out case stud24 ies, the study team shall—
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1 (A) identify opportunities for primary re2 search; and

3 (B) to the maximum extent practicable, use

4 existing surveys, data, and research.

5 (3) COMPONENTS.—Each case study shall—

6 (A) identify and, to the maximum extent

7 practicable, evaluate the success of relevant Fed8 eral, State, and local policies that are intended

9 to induce local food purchasing and commerce;

10 (B) examine the agricultural structure in

11 each region to account for the impact of farm

12 size and type of production on local economies

13 and barriers to accessing local markets;

14 (C) determine regional market trends and

15 the share of the market supplied by current agri16 cultural producers in the region; and

17 (D) assess the potential for local food system

18 value chains and supply networks and map the

19 supply chain factors in each region involved in

20 agricultural production, processing, and dis21 tribution of locally grown produce, meat, dairy,

22 and other products.

23 (d) REPORTS.—Not later than 2 years after the date

24 of enactment of this Act, and thereafter as the Secretary

25 considers appropriate, the Secretary shall submit to the
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1 Committee on Agriculture of the House of Representatives

2 and the Committee on Agriculture, Nutrition, and Forestry

3 of the Senate a report that—

4 (1) describes the results of the study conducted

5 under subsection (a) and the case studies under sub6 section (c); and

7 (2) includes such recommendations for legislative

8 action as the Secretary considers appropriate.

9 SEC. 11090. INVASIVE SPECIES REVOLVING LOAN FUND.

10 (a) DEFINITIONS.—In this section:

11 (1) AUTHORIZED EQUIPMENT.—

12 (A) IN GENERAL.—The term ‘‘authorized

13 equipment’’ means any equipment necessary for

14 the management of forest land.

15 (B) INCLUSIONS.—The term ‘‘authorized

16 equipment’’includes—

17 (i) cherry pickers;

18 (ii) equipment necessary for—

19 (I) the construction of staging and

20 marshalling areas;

21 (II) the planting of trees; and

22 (III) the surveying of forest land;

23 (iii) vehicles capable of transporting

24 harvested trees;

25 (iv) wood chippers; and
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1 (v) any other appropriate equipment,

2 as determined by the Secretary.

3 (2) FUND.—The term ‘‘Fund’’ means the

4 Invasive Species Revolving Loan Fund established by

5 subsection (b).

6 (3) SECRETARY.—The term ‘‘Secretary’’ means

7 the Secretary of Agriculture, acting through the Dep8 uty Chief of the State and Private Forestry organiza9 tion.

10 (b) ESTABLISHMENT OF FUND.—There is established

11 in the Treasury of the United States a revolving fund, to

12 be known as the ‘‘Invasive Species Revolving Loan Fund’’,

13 consisting of such amounts as are appropriated to the Fund

14 under subsection (f).

15 (c) EXPENDITURES FROM FUND.—

16 (1) IN GENERAL.—Subject to paragraph (2), on

17 request by the Secretary, the Secretary of the Treas18 ury shall transfer from the Fund to the Secretary

19 such amounts as the Secretary determines are nec20 essary to provide loans under subsection (e).

21 (2) ADMINISTRATIVE EXPENSES.—An amount

22 not exceeding 10 percent of the amounts in the Fund

23 shall be available for each fiscal year to pay the ad24 ministrative expenses necessary to carry out this sec25 tion.
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1 (d) TRANSFERS OF AMOUNTS.—

2 (1) IN GENERAL.—The amounts required to be

3 transferred to the Fund under this section shall be

4 transferred at least monthly from the general fund of

5 the Treasury to the Fund on the basis of estimates

6 made by the Secretary of the Treasury.

7 (2) ADJUSTMENTS.—Proper adjustment shall be

8 made in amounts subsequently transferred to the ex9 tent prior estimates were in excess of or less than the

10 amounts required to be transferred.

11 (e) USES OF FUND.—

12 (1) LOANS.—

13 (A) IN GENERAL.—The Secretary shall use

14 amounts in the Fund to provide loans to eligible

15 units of local government to finance purchases of

16 authorized equipment to monitor, remove, dis17 pose of, and replace infested trees that are

18 located—

19 (i) on land under the jurisdiction of

20 the eligible units of local government; and

21 (ii) within the borders of quarantine

22 areas infested by invasive species.

23 (B) MAXIMUM AMOUNT.—The maximum

24 amount of a loan that may be provided by the
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1 Secretary to an eligible unit of local government

2 under this subsection shall be the lesser of—

3 (i) the amount that the eligible unit of

4 local government has appropriated—

5 (I) to finance purchases of author6 ized equipment to monitor, remove,

7 dispose of, and replace infested trees

8 that are located—

9 (aa) on land under the juris10 diction of the eligible unit of local

11 government; and

12 (bb) within the borders of a

13 quarantine area infested by

14 invasive species; and

15 (II) to enter into contracts with

16 appropriate individuals and entities to

17 monitor, remove, dispose of, and re18 place infested trees that are located in

19 each area described in subclause (I); or

20 (ii) $5,000,000.

21 (C) INTEREST RATE.—The interest rate on

22 any loan made by the Secretary under this para23 graph shall be a rate equal to 2 percent.

24 (D) REPORT.—Not later than 180 days

25 after the date on which an eligible unit of local
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1 government receives a loan provided by the Sec2 retary under subparagraph (A), the eligible unit

3 of local government shall submit to the Secretary

4 a report that describes each purchase made by

5 the eligible unit of local government using assist6 ance provided through the loan.

7 (2) LOAN REPAYMENT SCHEDULE.—

8 (A) IN GENERAL.—To be eligible to receive

9 a loan from the Secretary under paragraph (1),

10 in accordance with each requirement described

11 in subparagraph (B), an eligible unit of local

12 government shall enter into an agreement with

13 the Secretary to establish a loan repayment

14 schedule relating to the repayment of the loan.

15 (B) REQUIREMENTS RELATING TO LOAN RE16 PAYMENT SCHEDULE.—A loan repayment sched17 ule established under subparagraph (A) shall re18 quire the eligible unit of local government—

19 (i) to repay to the Secretary of the

20 Treasury, not later than 1 year after the

21 date on which the eligible unit of local gov22 ernment receives a loan under paragraph

23 (1), and semiannually thereafter, an

24 amount equal to the quotient obtained by

25 dividing—
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1 (I) the principal amount of the

2 loan (including interest); by

3 (II) the total quantity of pay4 ments that the eligible unit of local

5 government is required to make during

6 the repayment period of the loan; and

7 (ii) not later than 20 years after the

8 date on which the eligible unit of local gov9 ernment receives a loan under paragraph

10 (1), to complete repayment to the Secretary

11 of the Treasury of the loan made under this

12 section (including interest).

13 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

14 authorized to be appropriated to the Fund such sums as

15 are necessary to carry out this section.

16 SEC. 11091. COOPERATIVE AGREEMENTS RELATING TO

17 INVASIVE SPECIES PREVENTION ACTIVITIES.

18 Any cooperative agreement entered into after the date

19 of enactment of this Act between the Secretary and a State

20 relating to the prevention of invasive species infestation

21 shall allow the State to provide any cost-sharing assistance

22 or financing mechanism provided to the State under the

23 cooperative agreement to a unit of local government of the

24 State that—
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1 (1) is engaged in any activity relating to the

2 prevention of invasive species infestation; and

3 (2) is capable of documenting each invasive spe4 cies infestation prevention activity generally carried

5 out by—

6 (A) the Department of Agriculture; or

7 (B) the State department of agriculture that

8 has jurisdiction over the unit of local govern9 ment.

10 SEC. 11092. SOUTHWEST REGIONAL DAIRY, ENVIRONMENT,

11 AND PRIVATE LAND PROGRAM.

12 (a) DEFINITIONS.—In this section:

13 (1) ELIGIBLE INSTITUTION OF HIGHER EDU14 CATION.—The term ‘‘eligible institution of higher edu15 cation’’ means an institution of higher education

16 that—

17 (A) is located in—

18 (i) the State of Arizona;

19 (ii) the State of Colorado;

20 (iii) the State of New Mexico;

21 (iv) the State of Oklahoma; and

22 (v) the State of Texas;

23 (B) has facilities that are necessary for the

24 facilitation of research on issues relating to the

25 dairy industry in a practical setting;
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1 (C) has a dairy research program and an

2 institution for applied environmental research;

3 (D) has a university laboratory that is—

4 (i) located on the campus of the insti5 tution of higher education; and

6 (ii) accredited by the National Envi7 ronmental Laboratory Accreditation Coun8 cil to ensure the quality of any proposed re9 search activities;

10 (E) has the capability to enter into a part11 nership with representatives of the dairy indus12 try and other public and private entities and in13 stitutions of higher education;

14 (F) has experience in conducting watershed

15 modeling (including the conduct of cost-benefit

16 analyses, policy applications, and long-term wa17 tershed monitoring); and

18 (G) works with—

19 (i) producer-run advocacy groups (in20 cluding Industry-Led Solutions); and

21 (ii) private land coalitions.

22 (2) PROGRAM.—The term ‘‘program’’ means the

23 Southwest regional dairy, environment, and private

24 land program established under subsection (b).

25 (b) ESTABLISHMENT.—
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1 (1) IN GENERAL.—As soon as practicable after

2 the date of enactment of this Act, the Secretary shall

3 establish a Southwest regional dairy, environment,

4 and private land program.

5 (2) REQUIRED ACTIVITIES.—In carrying out the

6 program, the Secretary shall—

7 (A) identify challenges and develop solu8 tions to enhance the economic and environmental

9 sustainability, growth, and expansion of the

10 dairy industry in the Southwest region of the

11 United States;

12 (B) research, develop, and implement

13 programs—

14 (i) to recover energy and other useful

15 products from dairy waste;

16 (ii) to identify best management prac17 tices; and

18 (iii) to assist the dairy industry in en19 suring that animal waste emissions and

20 discharges of the dairy industry are main21 tained at levels below applicable regulatory

22 standards;

23 (C) offer technical assistance (including re24 search activities conducted by a university lab25 oratory that is accredited by the National Envi-
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1 ronmental Laboratory Accreditation Council),

2 training, applied research, and watershed water

3 quality programs monitoring to applicable enti4 ties;

5 (D) develop—

6 (i) watershed modeling through the de7 velopment of innovative modeling tools and

8 data mining to develop cost-efficient and

9 environmentally effective programs in the

10 dairy industry; and

11 (ii) an international modeling applica12 tion clearinghouse to coordinate watershed

13 modeling tools in the United States and in

14 other countries, to be carried out by the Sec15 retary; and

16 (E) collaborate with a private land coali17 tion to use input gathered from landowners in

18 the United States through a program of industry

19 led solutions to work with the Federal Govern20 ment (including Federal agencies) in the devel21 opment of conservation, environmental credit

22 trading, and watershed programs to help private

23 landowners and agricultural producers meet ap24 plicable water quality standards.

25 (c) CONTRACTS.—
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1 (1) IN GENERAL.—In carrying out the program,

2 the Secretary shall offer to enter into contracts with

3 eligible institutions of higher education.

4 (2) APPLICATION.—

5 (A) SUBMISSION OF APPLICATION.—To

6 enter into a contract with the Secretary under

7 paragraph (1), an eligible institution of higher

8 education shall submit to the Secretary an appli9 cation at such time, in such manner, and con10 taining such information as the Secretary may

11 require.

12 (B) GUIDELINES.—As soon as practicable

13 after the date of enactment of this Act, the Sec14 retary shall promulgate guidelines describing

15 each requirement of the Secretary with respect to

16 the application requirements described in sub17 paragraph (A).

18 (d) AUTHORIZATION OF APPROPRIATIONS.—There are

19 authorized to be appropriated such sums as are necessary

20 to carry out this section for each of fiscal years 2008

21 through 2012, to remain available until expended.

22 SEC. 11093. ENFORCEMENT OF UNITED STATES-CANADA

23 SOFTWOOD LUMBER AGREEMENT.

24 (a) FINDINGS.—The Senate finds that—
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1 (1) the Federal Government has repeatedly found

2 that Canadian softwood lumber shipped to the United

3 States is unfairly subsidized and dumped into the

4 United States market and materially injures softwood

5 lumber producers in the United States;

6 (2) in September 2006, the United States and

7 Canada entered into the United States-Canada

8 Softwood Lumber Agreement (referred to in this sec9 tion as the ‘‘Agreement’’) to address Canada’s unfair

10 lumber trade practices;

11 (3) the Agreement obligates Canada to apply ex12 port taxes and quotas to Canadian softwood lumber

13 exports to the United States and to forego new sub14 sidies to Canadian lumber producers;

15 (4) Canada has consistently violated the Agree16 ment, including by failing to apply export taxes and

17 quotas as required by the Agreement and by pro18 viding new subsidies to Canadian lumber companies;

19 (5) Canadian violations of the Agreement are

20 contributing to market conditions that are resulting

21 in significant job losses in the United States lumber

22 mills;

23 (6) the United States is challenging some of the

24 Canadian violations of the Agreement through arbi25 tral proceedings;
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1 (7) as of the date of enactment of this Act, Fed2 eral enforcement of the Agreement has not resulted;

3 and

4 (8) Federal executive agencies have been consid5 ering proposals to enforce the Agreement.

6 (b) SENSE OF THE SENATE.—It is the sense of the Sen7 ate that the President should take all actions necessary to

8 ensure that imports of Canadian softwood lumber are con9 sistent with the provisions of the United States-Canada

10 Softwood Lumber Agreement.

11 Subtitle C—DOMESTIC PET

12 TURTLE MARKET ACCESS

13 SEC. 11101. SHORT TITLE.

14 This title may be cited as the ‘‘Domestic Pet Turtle

15 Equality Act’’.

16 SEC. 11102. FINDINGS.

17 Congress makes the following findings:

18 (1) Pet turtles less than 10.2 centimeters in di19 ameter have been banned for sale in the United States

20 by the Food and Drug Administration since 1975 due

21 to health concerns.

22 (2) The Food and Drug Administration does not

23 ban the sale of iguanas or other lizards, snakes, frogs,

24 or other amphibians or reptiles that are sold as pets

25 in the United States that carry salmonella bacteria.
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1 The Food and Drug Administration also does not re2 quire that these animals be treated for salmonella bac3 teria before being sold as pets.

4 (3) The technology to treat turtles for salmonella,

5 and make them safe for sale, has greatly advanced

6 since 1975. Treatments exist that can eradicate sal7 monella from turtles up until the point of sale, and

8 individuals are more aware of the causes of sal9 monella, how to treat salmonella poisoning, and the

10 seriousness associated with salmonella poisoning.

11 (4) University research has shown that these tur12 tles can be treated in such a way that they can be

13 raised, shipped, and distributed without having a re14 colonization of salmonella.

15 (5) University research has also shown that pet

16 owners can be equipped with a treatment regimen

17 that allows the turtle to be maintained safe from sal18 monella.

19 (6) The Food and Drug Administration and the

20 Department of Agriculture should allow the sale of

21 turtles less than 10.2 centimeters in diameter as pets

22 as long as the sellers are required to use proven meth23 ods to treat these turtles for salmonella.
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1 SEC. 11103. REVIEW, REPORT, AND ACTION ON THE SALE OF

2 BABY TURTLES.

3 (a) PET TURTLE.—In this section, the term ‘‘pet tur4 tle’’ means a turtle that is less than 10.2 centimeters in

5 diameter.

6 (b) PREVALENCE OF SALMONELLA.—Not later than 60

7 days after the date of enactment of this title, the Secretary

8 of Health and Human Services, acting through the Com9 missioner of Food and Drugs, shall determine the preva10 lence of salmonella in each species of reptile and amphibian

11 sold legally as a pet in the United States in order to deter12 mine whether the prevalence of salmonella in reptiles and

13 amphibians sold legally as pets in the United States on av14 erage is not more than 10 percent less than the percentage

15 of salmonella in pet turtles.

16 (c) ACTION IF PREVALENCE IS SIMILAR.—If the preva17 lence of salmonella in reptiles and amphibians sold legally

18 as pets in the United States on average is not more than

19 10 percent less than the percentage of salmonella in pet

20 turtles—

21 (1) the Secretary of Agriculture shall—

22 (A) conduct a study to determine how pet

23 turtles can be sold safely as pets in the United

24 States and provide recommendations to Congress

25 not later than 150 days after the date of such de26 termination;
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1 (B) in conducting such study, consult with

2 all relevant stakeholders, such as the Centers for

3 Disease Control and Prevention, the turtle farm4 ing industry, academia, and the American Acad5 emy of Pediatrics; and

6 (C) examine the safety measures taken to

7 protect individuals from salmonella-related dan8 gers involved with reptiles and amphibians sold

9 legally in the United States that contain a simi10 lar or greater presence of salmonella than that of

11 pet turtles; and

12 (2) the Secretary of Agriculture—

13 (A) may not prohibit the sale of pet turtles

14 in the United States; or

15 (B) shall prohibit the sale in the United

16 States of any reptile or amphibian that contains

17 a similar or greater prevalence of salmonella

18 than that of pet turtles.

19 Subtitle D—Disaster Loan Program

20 SEC. 11111. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Small Business Dis22 aster Response and Loan Improvements Act of 2007’’.

23 SEC. 11112. DEFINITIONS.

24 In this subtitle—
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1 (1) the terms ‘‘Administration’’ and ‘‘Adminis2 trator’’ mean the Small Business Administration and

3 the Administrator thereof, respectively;

4 (2) the term ‘‘Small Business Act catastrophic

5 national disaster’’ means a Small Business Act cata6 strophic national disaster declared under section

7 7(b)(11) of the Small Business Act (15 U.S.C.

8 636(b)), as added by this Act;

9 (3) the term ‘‘declared disaster’’ means a major

10 disaster or a Small Business Act catastrophic na11 tional disaster;

12 (4) the term ‘‘disaster area’’ means an area af13 fected by a natural or other disaster, as determined

14 for purposes of paragraph (1) or (2) of section 7(b)

15 of the Small Business Act (15 U.S.C. 636(b)), during

16 the period of such declaration;

17 (5) the term ‘‘disaster loan program of the Ad18 ministration’’ means assistance under section 7(b) of

19 the Small Business Act (15 U.S.C. 636(b));

20 (6) the term ‘‘disaster update period’’ means the

21 period beginning on the date on which the President

22 declares a major disaster or a Small Business Act

23 catastrophic national disaster and ending on the date

24 on which such declaration terminates;
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1 (7) the term ‘‘major disaster’’ has the meaning

2 given that term in section 102 of the Robert T. Staf3 ford Disaster Relief and Emergency Assistance Act

4 (42 U.S.C. 5122);

5 (8) the term ‘‘small business concern’’ has the

6 same meaning as in section 3 of the Small Business

7 Act (15 U.S.C. 632); and

8 (9) the term ‘‘State’’ means any State of the

9 United States, the District of Columbia, the Common10 wealth of Puerto Rico, the Northern Mariana Islands,

11 the Virgin Islands, Guam, American Samoa, and any

12 territory or possession of the United States.

13 PART I—DISASTER PLANNING AND RESPONSE

14 SEC. 11121. DISASTER LOANS TO NONPROFITS.

15 Section 7(b) of the Small Business Act (15 U.S.C.

16 636(b)) is amended by inserting immediately after para17 graph (3) the following:

18 ‘‘(4) LOANS TO NONPROFITS.—In addition to

19 any other loan authorized by this subsection, the Ad20 ministrator may make such loans (either directly or

21 in cooperation with banks or other lending institu22 tions through agreements to participate on an imme23 diate or deferred basis) as the Administrator deter24 mines appropriate to a nonprofit organization located

25 or operating in an area affected by a natural or other
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1 disaster, as determined under paragraph (1) or (2),

2 or providing services to persons who have evacuated

3 from any such area.’’.

4 SEC. 11122. DISASTER LOAN AMOUNTS.

5 (a) INCREASED LOAN CAPS.—Section 7(b) of the

6 Small Business Act (15 U.S.C. 636(b)) is amended by in7 serting immediately after paragraph (4), as added by this

8 Act, the following:

9 ‘‘(5) INCREASED LOAN CAPS.—

10 ‘‘(A) AGGREGATE LOAN AMOUNTS.—Except

11 as provided in subparagraph (B), and notwith12 standing any other provision of law, the aggre13 gate loan amount outstanding and committed to

14 a borrower under this subsection may not exceed

15 $2,000,000.

16 ‘‘(B) WAIVER AUTHORITY.—The Adminis17 trator may, at the discretion of the Adminis18 trator, increase the aggregate loan amount under

19 subparagraph (A) for loans relating to a disaster

20 to a level established by the Administrator, based

21 on appropriate economic indicators for the re22 gion in which that disaster occurred.’’.

23 (b) DISASTER MITIGATION.—

24 (1) IN GENERAL.—Section 7(b)(1)(A) of the

25 Small Business Act (15 U.S.C. 636(b)(1)(A)) is
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1 amended by inserting ‘‘of the aggregate costs of such

2 damage or destruction (whether or not compensated

3 for by insurance or otherwise)’’ after ‘‘20 per cen4 tum’’.

5 (2) EFFECTIVE DATE.—The amendment made by

6 paragraph (1) shall apply with respect to a loan or

7 guarantee made after the date of enactment of this

8 Act.

9 (c) TECHNICAL AMENDMENTS.—Section 7(b) of the

10 Small Business Act (15 U.S.C. 636(b)) is amended—

11 (1) in the matter preceding paragraph (1), by

12 striking ‘‘the, Administration’’ and inserting ‘‘the Ad13 ministration’’;

14 (2) in paragraph (2)(A), by striking ‘‘Disaster

15 Relief and Emergency Assistance Act’’ and inserting

16 ‘‘Robert T. Stafford Disaster Relief and Emergency

17 Assistance Act (42 U.S.C. 5121 et seq.) (in this sub18 section referred to as a ‘major disaster’)’’; and

19 (3) in the undesignated matter at the end—

20 (A) by striking ‘‘, (2), and (4)’’ and insert21 ing ‘‘and (2)’’; and

22 (B) by striking ‘‘, (2), or (4)’’ and inserting

23 ‘‘(2)’’.
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1 SEC. 11123. SMALL BUSINESS DEVELOPMENT CENTER

2 PORTABILITY GRANTS.

3 Section 21(a)(4)(C)(viii) of the Small Business Act (15

4 U.S.C. 648(a)(4)(C)(viii)) is amended—

5 (1) in the first sentence, by striking ‘‘as a result

6 of a business or government facility down sizing or

7 closing, which has resulted in the loss of jobs or small

8 business instability’’ and inserting ‘‘due to events that

9 have resulted or will result in, business or government

10 facility downsizing or closing’’; and

11 (2) by adding at the end ‘‘At the discretion of the

12 Administrator, the Administrator may make an

13 award greater than $100,000 to a recipient to accom14 modate extraordinary occurrences having a cata15 strophic impact on the small business concerns in a

16 community.’’.

17 SEC. 11124. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

18 Section 21(b)(3) of the Small Business Act (15 U.S.C.

19 648(b)(3)) is amended—

20 (1) by striking ‘‘At the discretion’’ and inserting

21 the following: ‘‘SMALL BUSINESS DEVELOPMENT CEN22 TERS.—

23 ‘‘(A) IN GENERAL.—At the discretion’’; and

24 (2) by adding at the end the following:

25 ‘‘(B) DURING DISASTERS.—
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1 ‘‘(i) IN GENERAL.—At the discretion of

2 the Administrator, the Administrator may

3 authorize a small business development cen4 ter to provide such assistance to small busi5 ness concerns located outside of the State,

6 without regard to geographic proximity, if

7 the small business concerns are located in a

8 disaster area declared under section

9 7(b)(2)(A).

10 ‘‘(ii) CONTINUITY OF SERVICES.—A

11 small business development center that pro12 vides counselors to an area described in

13 clause (i) shall, to the maximum extent

14 practicable, ensure continuity of services in

15 any State in which such small business de16 velopment center otherwise provides services.

17 ‘‘(iii) ACCESS TO DISASTER RECOVERY

18 FACILITIES.—For purposes of providing dis19 aster recovery assistance under this sub20 paragraph, the Administrator shall, to the

21 maximum extent practicable, permit small

22 business development center personnel to use

23 any site or facility designated by the Ad24 ministrator for use to provide disaster re25 covery assistance.’’.
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1 SEC. 11125. OUTREACH PROGRAMS.

2 (a) IN GENERAL.—Not later than 30 days after the

3 date of the declaration of a disaster area, the Administrator

4 may establish a contracting outreach and technical assist5 ance program for small business concerns which have had

6 a primary place of business in, or other significant presence

7 in, such disaster area.

8 (b) ADMINISTRATOR ACTION.—The Administrator

9 may carry out subsection (a) by acting through—

10 (1) the Administration;

11 (2) the Federal agency small business officials

12 designated under section 15(k)(1) of the Small Busi13 ness Act (15 U.S.C. 644(k)(1)); or

14 (3) any Federal, State, or local government enti15 ty, higher education institution, procurement tech16 nical assistance center, or private nonprofit organiza17 tion that the Administrator may determine appro18 priate, upon conclusion of a memorandum of under19 standing or assistance agreement, as appropriate,

20 with the Administrator.

21 SEC. 11126. SMALL BUSINESS BONDING THRESHOLD.

22 (a) IN GENERAL.—Except as provided in subsection

23 (b), and notwithstanding any other provision of law, for

24 any procurement related to a major disaster, the Adminis25 trator may, upon such terms and conditions as the Admin26 istrator may prescribe, guarantee and enter into commit-
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1 ments to guarantee any surety against loss resulting from

2 a breach of the terms of a bid bond, payment bond, perform3 ance bond, or bonds ancillary thereto, by a principal on

4 any total work order or contract amount at the time of bond

5 execution that does not exceed $5,000,000.

6 (b) INCREASE OF AMOUNT.—Upon request of the head

7 of any Federal agency other than the Administration in8 volved in reconstruction efforts in response to a major dis9 aster, the Administrator may guarantee and enter into a

10 commitment to guarantee any security against loss under

11 subsection (a) on any total work order or contract amount

12 at the time of bond execution that does not exceed

13 $10,000,000.

14 SEC. 11127. TERMINATION OF PROGRAM.

15 Section 711(c) of the Small Business Competitive

16 Demonstration Program Act of 1988 (15 U.S.C. 644 note)

17 is amended by inserting after ‘‘January 1, 1989’’ the fol18 lowing: ‘‘, and shall terminate on the date of enactment of

19 the Small Business Disaster Response and Loan Improve20 ments Act of 2007’’.

21 SEC. 11128. INCREASING COLLATERAL REQUIREMENTS.

22 Section 7(c)(6) of the Small Business Act (15 U.S.C.

23 636(c)(6)) is amended by striking ‘‘$10,000 or less’’ and

24 inserting ‘‘$14,000 or less (or such higher amount as the

25 Administrator determines appropriate in the event of a
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1 Small Business Act catastrophic national disaster declared

2 under subsection (b)(11))’’.

3 SEC. 11129. PUBLIC AWARENESS OF DISASTER DECLARA4 TION AND APPLICATION PERIODS.

5 (a) IN GENERAL.—Section 7(b) of the Small Business

6 Act (15 U.S.C. 636(b)) is amended by inserting imme7 diately after paragraph (5), as added by this Act, the fol8 lowing:

9 ‘‘(6) COORDINATION WITH FEMA.—

10 ‘‘(A) IN GENERAL.—Notwithstanding any

11 other provision of law, for any disaster (includ12 ing a Small Business Act catastrophic national

13 disaster) declared under this subsection or major

14 disaster, the Administrator, in consultation with

15 the Administrator of the Federal Emergency

16 Management Agency, shall ensure, to the max17 imum extent practicable, that all application pe18 riods for disaster relief under this Act correspond

19 with application deadlines established under the

20 Robert T. Stafford Disaster Relief and Emer21 gency Assistance Act (42 U.S.C. 5121 et seq.), or

22 as extended by the President.

23 ‘‘(B) DEADLINES.—Notwithstanding any

24 other provision of law, not later than 10 days be25 fore the closing date of an application period for
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1 a major disaster (including a Small Business

2 Act catastrophic national disaster), the Adminis3 trator, in consultation with the Administrator of

4 the Federal Emergency Management Agency,

5 shall submit to the Committee on Small Business

6 and Entrepreneurship of the Senate and the

7 Committee on Small Business of the House of

8 Representatives a report that includes—

9 ‘‘(i) the deadline for submitting appli10 cations for assistance under this Act relat11 ing to that major disaster;

12 ‘‘(ii) information regarding the num13 ber of loan applications and disbursements

14 processed by the Administrator relating to

15 that major disaster for each day during the

16 period beginning on the date on which that

17 major disaster was declared and ending on

18 the date of that report; and

19 ‘‘(iii) an estimate of the number of po20 tential applicants that have not submitted

21 an application relating to that major dis22 aster.

23 ‘‘(7) PUBLIC AWARENESS OF DISASTERS.—If a

24 disaster (including a Small Business Act catastrophic

25 national disaster) is declared under this subsection,
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1 the Administrator shall make every effort to commu2 nicate through radio, television, print, and web-based

3 outlets, all relevant information needed by disaster

4 loan applicants, including—

5 ‘‘(A) the date of such declaration;

6 ‘‘(B) cities and towns within the area of

7 such declaration;

8 ‘‘(C) loan application deadlines related to

9 such disaster;

10 ‘‘(D) all relevant contact information for

11 victim services available through the Administra12 tion (including links to small business develop13 ment center websites);

14 ‘‘(E) links to relevant Federal and State

15 disaster assistance websites, including links to

16 websites providing information regarding assist17 ance available from the Federal Emergency Man18 agement Agency;

19 ‘‘(F) information on eligibility criteria for

20 Administration loan programs, including where

21 such applications can be found; and

22 ‘‘(G) application materials that clearly

23 state the function of the Administration as the

24 Federal source of disaster loans for homeowners

25 and renters.’’.
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1 (b) MARKETING AND OUTREACH.—Not later than 90

2 days after the date of enactment of this Act, the Adminis3 trator shall create a marketing and outreach plan that—

4 (1) encourages a proactive approach to the dis5 aster relief efforts of the Administration;

6 (2) makes clear the services provided by the Ad7 ministration, including contact information, applica8 tion information, and timelines for submitting appli9 cations, the review of applications, and the disburse10 ment of funds;

11 (3) describes the different disaster loan programs

12 of the Administration, including how they are made

13 available and the eligibility requirements for each

14 loan program;

15 (4) provides for regional marketing, focusing on

16 disasters occurring in each region before the date of

17 enactment of this Act, and likely scenarios for disas18 ters in each such region; and

19 (5) ensures that the marketing plan is made

20 available at small business development centers and

21 on the website of the Administration.
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1 SEC. 11130. CONSISTENCY BETWEEN ADMINISTRATION REG2 ULATIONS AND STANDARD OPERATING PRO3 CEDURES.

4 (a) IN GENERAL.—The Administrator shall, promptly

5 following the date of enactment of this Act, conduct a study

6 of whether the standard operating procedures of the Admin7 istration for loans offered under section 7(b) of the Small

8 Business Act (15 U.S.C. 636(b)) are consistent with the reg9 ulations of the Administration for administering the dis10 aster loan program.

11 (b) REPORT.—Not later than 180 days after the date

12 of enactment of this Act, the Administration shall submit

13 to Congress a report containing all findings and rec14 ommendations of the study conducted under subsection (a).

15 SEC. 11131. PROCESSING DISASTER LOANS.

16 (a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC17 TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the

18 Small Business Act (15 U.S.C. 636(b)) is amended by in19 serting immediately after paragraph (7), as added by this

20 Act, the following:

21 ‘‘(8) AUTHORITY FOR QUALIFIED PRIVATE CON22 TRACTORS.—

23 ‘‘(A) DISASTER LOAN PROCESSING.—The

24 Administrator may enter into an agreement with

25 a qualified private contractor, as determined by

26 the Administrator, to process loans under this
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1 subsection in the event of a major disaster or a

2 Small Business Act catastrophic national dis3 aster declared under paragraph (11), under

4 which the Administrator shall pay the contractor

5 a fee for each loan processed.

6 ‘‘(B) LOAN LOSS VERIFICATION SERVICES.—

7 The Administrator may enter into an agreement

8 with a qualified lender or loss verification pro9 fessional, as determined by the Administrator, to

10 verify losses for loans under this subsection in

11 the event of a major disaster or a Small Business

12 Act catastrophic national disaster declared under

13 paragraph (11), under which the Administrator

14 shall pay the lender or verification professional

15 a fee for each loan for which such lender or

16 verification professional verifies losses.’’.

17 (b) COORDINATION OF EFFORTS BETWEEN THE AD18 MINISTRATOR AND THE INTERNAL REVENUE SERVICE TO

19 EXPEDITE LOAN PROCESSING.—The Administrator and the

20 Commissioner of Internal Revenue shall, to the maximum

21 extent practicable, ensure that all relevant and allowable

22 tax records for loan approval are shared with loan proc23 essors in an expedited manner, upon request by the Admin24 istrator.
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1 SEC. 11132. DEVELOPMENT AND IMPLEMENTATION OF

2 MAJOR DISASTER RESPONSE PLAN.

3 (a) IN GENERAL.—Not later than 3 months after the

4 date of enactment of this Act, the Administrator shall—

5 (1) by rule, amend the 2006 Atlantic hurricane

6 season disaster response plan of the Administration

7 (in this section referred to as the ‘‘disaster response

8 plan’’) to apply to major disasters; and

9 (2) submit a report to the Committee on Small

10 Business and Entrepreneurship of the Senate and the

11 Committee on Small Business of the House of Rep12 resentatives detailing the amendments to the disaster

13 response plan.

14 (b) CONTENTS.—The report required under subsection

15 (a)(2) shall include—

16 (1) any updates or modifications made to the

17 disaster response plan since the report regarding the

18 disaster response plan submitted to Congress on July

19 14, 2006;

20 (2) a description of how the Administrator plans

21 to utilize and integrate District Office personnel of

22 the Administration in the response to a major dis23 aster, including information on the utilization of per24 sonnel for loan processing and loan disbursement;
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1 (3) a description of the disaster scalability model

2 of the Administration and on what basis or function

3 the plan is scaled;

4 (4) a description of how the agency-wide Dis5 aster Oversight Council is structured, which offices

6 comprise its membership, and whether the Associate

7 Deputy Administrator for Entrepreneurial Develop8 ment of the Administration is a member;

9 (5) a description of how the Administrator plans

10 to coordinate the disaster efforts of the Administration

11 with State and local government officials, including

12 recommendations on how to better incorporate State

13 initiatives or programs, such as State-administered

14 bridge loan programs, into the disaster response of the

15 Administration;

16 (6) recommendations, if any, on how the Admin17 istration can better coordinate its disaster response

18 operations with the operations of other Federal, State,

19 and local entities;

20 (7) any surge plan for the disaster loan program

21 of the Administration in effect on or after August 29,

22 2005 (including surge plans for loss verification, loan

23 processing, mailroom, customer service or call center

24 operations, and a continuity of operations plan);
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1 (8) the number of full-time equivalent employees

2 and job descriptions for the planning and disaster re3 sponse staff of the Administration;

4 (9) the in-service and preservice training proce5 dures for disaster response staff of the Administra6 tion;

7 (10) information on the logistical support plans

8 of the Administration (including equipment and

9 staffing needs, and detailed information on how such

10 plans will be scalable depending on the size and scope

11 of the major disaster;

12 (11) a description of the findings and rec13 ommendations of the Administrator, if any, based on

14 a review of the response of the Administration to

15 Hurricane Katrina of 2005, Hurricane Rita of 2005,

16 and Hurricane Wilma of 2005; and

17 (12) a plan for how the Administrator, in con18 sultation with the Administrator of the Federal

19 Emergency Management Agency, will coordinate the

20 provision of accommodations and necessary resources

21 for disaster assistance personnel to effectively perform

22 their responsibilities in the aftermath of a major dis23 aster.

24 (c) EXERCISES.—Not later than 6 months after the

25 date of the submission of the report under subsection (a)(2),
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1 the Administrator shall develop and execute simulation ex2 ercises to demonstrate the effectiveness of the amended dis3 aster response plan required under this section.

4 SEC. 11133. DISASTER PLANNING RESPONSIBILITIES.

5 (a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRA6 TION DISASTER PLANNING RESPONSIBILITIES.—The Ad7 ministrator shall specifically assign the disaster planning

8 responsibilities described in subsection (b) to an employee

9 of the Administration who—

10 (1) is not an employee of the Office of Disaster

11 Assistance of the Administration;

12 (2) shall report directly to the Administrator;

13 and

14 (3) has a background and expertise dem15 onstrating significant experience in the area of dis16 aster planning.

17 (b) RESPONSIBILITIES.—The responsibilities described

18 in this subsection are—

19 (1) creating and maintaining the comprehensive

20 disaster response plan of the Administration;

21 (2) ensuring in-service and pre-service training

22 procedures for the disaster response staff of the Ad23 ministration;
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1 (3) coordinating and directing Administration

2 training exercises, including mock disaster responses,

3 with other Federal agencies; and

4 (4) other responsibilities, as determined by the

5 Administrator.

6 (c) REPORT.—Not later than 30 days after the date

7 of enactment of this Act, the Administrator shall submit

8 to the Committee on Small Business and Entrepreneurship

9 of the Senate and the Committee on Small Business of the

10 House of Representatives a report containing—

11 (1) a description of the actions of the Adminis12 trator to assign an employee under subsection (a);

13 (2) information detailing the background and ex14 pertise of the employee assigned under subsection (a);

15 and

16 (3) information on the status of the implementa17 tion of the responsibilities described in subsection (b).

18 SEC. 11134. ADDITIONAL AUTHORITY FOR DISTRICT OF19 FICES OF THE ADMINISTRATION.

20 (a) IN GENERAL.—Section 7(b) of the Small Business

21 Act (15 U.S.C. 636(b)) is amended by inserting imme22 diately after paragraph (8), as added by this Act, the fol23 lowing:

24 ‘‘(9) USEOF DISTRICT OFFICES.—In the event of

25 a major disaster, the Administrator may authorize a
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1 district office of the Administration to process loans

2 under paragraph (1) or (2).’’.

3 (b) DESIGNATION.—

4 (1) IN GENERAL.—The Administrator may des5 ignate an employee in each district office of the Ad6 ministration to act as a disaster loan liaison between

7 the disaster processing center and applicants under

8 the disaster loan program of the Administration.

9 (2) RESPONSIBILITIES.—Each employee des10 ignated under paragraph (1) shall—

11 (A) be responsible for coordinating and fa12 cilitating communications between applicants

13 under the disaster loan program of the Adminis14 tration and disaster loan processing staff regard15 ing documentation and information required for

16 completion of an application; and

17 (B) provide information to applicants

18 under the disaster loan program of the Adminis19 tration regarding additional services and bene20 fits that may be available to such applicants to

21 assist with recovery.

22 (3) OUTREACH.—In providing outreach to dis23 aster victims following a declared disaster, the Ad24 ministrator shall make disaster victims aware of—
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1 (A) any relevant employee designated under

2 paragraph (1); and

3 (B) how to contact that employee.

4 SEC. 11135. ASSIGNMENT OF EMPLOYEES OF THE OFFICE

5 OF DISASTER ASSISTANCE AND DISASTER

6 CADRE.

7 (a) IN GENERAL.—Section 7(b) of the Small Business

8 Act (15 U.S.C. 636(b)) is amended by inserting imme9 diately after paragraph (9), as added by this Act, the fol10 lowing:

11 ‘‘(10) DISASTER ASSISTANCE EMPLOYEES.—

12 ‘‘(A) IN GENERAL.—In carrying out this

13 section, the Administrator may, where prac14 ticable, ensure that the number of full-time

15 equivalent employees—

16 ‘‘(i) in the Office of the Disaster Assist17 ance is not fewer than 800; and

18 ‘‘(ii) in the Disaster Cadre of the Ad19 ministration is not fewer than 750.

20 ‘‘(B) REPORT.—In carrying out this sub21 section, if the number of full-time employees for

22 either the Office of Disaster Assistance or the

23 Disaster Cadre of the Administration is below

24 the level described in subparagraph (A) for that

25 office, not later than 21 days after the date on
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1 which that staffing level decreased below the level

2 described in subparagraph (A), the Adminis3 trator shall submit to the Committee on Appro4 priations and the Committee on Small Business

5 and Entrepreneurship of the Senate and the

6 Committee on Appropriations and Committee on

7 Small Business of the House of Representatives,

8 a report—

9 ‘‘(i) detailing staffing levels on that

10 date;

11 ‘‘(ii) requesting, if practicable and de12 termined appropriate by the Administrator,

13 additional funds for additional employees;

14 and

15 ‘‘(iii) containing such additional infor16 mation, as determined appropriate by the

17 Administrator.’’.

18 PART II—DISASTER LENDING

19 SEC. 11141. SMALL BUSINESS ACT CATASTROPHIC NA20 TIONAL DISASTER DECLARATION.

21 Section 7(b) of the Small Business Act (15 U.S.C.

22 636(b)) is amended by inserting immediately after para23 graph (10), as added by this Act, the following:

24 ‘‘(11) SMALL BUSINESS ACT CATASTROPHIC NA25 TIONAL DISASTERS.—
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1 ‘‘(A) IN GENERAL.—The President may

2 make a Small Business Act catastrophic na3 tional disaster declaration in accordance with

4 this paragraph.

5 ‘‘(B) PROMULGATION OF RULES.—

6 ‘‘(i) IN GENERAL.—Not later than 6

7 months after the date of enactment of this

8 paragraph, the Administrator, with the con9 currence of the Secretary of Homeland Se10 curity and the Administrator of the Federal

11 Emergency Management Agency, shall pro12 mulgate regulations establishing a threshold

13 for a Small Business Act catastrophic na14 tional disaster declaration.

15 ‘‘(ii) CONSIDERATIONS.—In promul16 gating the regulations required under clause

17 (i), the Administrator shall establish a

18 threshold that—

19 ‘‘(I) requires that the incident for

20 which the President declares a Small

21 Business Act catastrophic national dis22 aster declaration under this paragraph

23 has resulted in extraordinary levels of

24 casualties or damage or disruption se25 verely affecting the population (includ-
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1 ing mass evacuations), infrastructure,

2 environment, economy, national mo3 rale, or government functions in an

4 area and the disaster should be similar

5 in size and scope to the events relating

6 to the terrorist attacks of September

7 11, 2001, and the Hurricane Katrina

8 of 2005;

9 ‘‘(II) requires that the President

10 declares a major disaster before making

11 a Small Business Act catastrophic na12 tional disaster declaration under this

13 paragraph;

14 ‘‘(III) requires consideration of—

15 ‘‘(aa) the dollar amount per

16 capita of damage to the State, its

17 political subdivisions, or a region;

18 ‘‘(bb) the number of small

19 business concerns damaged, phys20 ically or economically, as a direct

21 result of the event;

22 ‘‘(cc) the number of individ23 uals and households displaced

24 from their predisaster residences

25 by the event;
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1 ‘‘(dd) the severity of the im2 pact on employment rates in the

3 State, its political subdivisions, or

4 a region;

5 ‘‘(ee) the anticipated length

6 and difficulty of the recovery

7 process;

8 ‘‘(ff) whether the events lead9 ing to the relevant major disaster

10 declaration are of an unusually

11 large and calamitous nature that

12 is orders of magnitude larger than

13 for an average major disaster; and

14 ‘‘(gg) any other factor deter15 mined relevant by the Adminis16 trator.

17 ‘‘(C) AUTHORIZATION.—If the President

18 makes a Small Business Act catastrophic na19 tional disaster declaration under this paragraph,

20 the Administrator may make such loans under

21 this paragraph (either directly or in cooperation

22 with banks or other lending institutions through

23 agreements to participate on an immediate or

24 deferred basis) as the Administrator determines

25 appropriate to small business concerns located
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1 anywhere in the United States that are economi2 cally adversely impacted as a result of that

3 Small Business Act catastrophic national dis4 aster.

5 ‘‘(D) LOAN TERMS.—A loan under this

6 paragraph shall be made on the same terms as

7 a loan under paragraph (2).’’.

8 SEC. 11142. PRIVATE DISASTER LOANS.

9 (a) IN GENERAL.—Section 7 of the Small Business Act

10 (15 U.S.C. 636) is amended—

11 (1) by redesignating subsections (c) and (d) as

12 subsections (d) and (e), respectively; and

13 (2) by inserting after subsection (b) the fol14 lowing:

15 ‘‘(c) PRIVATE DISASTER LOANS.—

16 ‘‘(1) DEFINITIONS.—In this subsection—

17 ‘‘(A) the term ‘disaster area’ means any

18 area for which the President declared a major

19 disaster (as that term is defined in section 102

20 of the Robert T. Stafford Disaster Relief and

21 Emergency Assistance Act (42 U.S.C. 5122))

22 that subsequently results in the President making

23 a Small Business Act catastrophic national dis24 aster declaration under subsection (b)(11);
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1 ‘‘(B) the term ‘eligible small business con2 cern’ means a business concern that is—

3 ‘‘(i) a small business concern, as de4 fined in this Act; or

5 ‘‘(ii) a small business concern, as de6 fined in section 103 of the Small Business

7 Investment Act of 1958; and

8 ‘‘(C) the term ‘qualified private lender’

9 means any privately-owned bank or other lend10 ing institution that the Administrator deter11 mines meets the criteria established under para12 graph (9).

13 ‘‘(2) AUTHORIZATION.—The Administrator may

14 guarantee timely payment of principal and interest,

15 as scheduled on any loan issued by a qualified pri16 vate lender to an eligible small business concern lo17 cated in a disaster area.

18 ‘‘(3) USEOF LOANS.—A loan guaranteed by the

19 Administrator under this subsection may be used for

20 any purpose authorized under subsection (b).

21 ‘‘(4) ONLINEAPPLICATIONS.—

22 ‘‘(A) ESTABLISHMENT.—The Administrator

23 may establish, directly or through an agreement

24 with another entity, an online application proc25 ess for loans guaranteed under this subsection.
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1 ‘‘(B) OTHER FEDERAL ASSISTANCE.—The

2 Administrator may coordinate with the head of

3 any other appropriate Federal agency so that

4 any application submitted through an online ap5 plication process established under this para6 graph may be considered for any other Federal

7 assistance program for disaster relief.

8 ‘‘(C) CONSULTATION.—In establishing an

9 online application process under this paragraph,

10 the Administrator shall consult with appropriate

11 persons from the public and private sectors, in12 cluding private lenders.

13 ‘‘(5) MAXIMUM AMOUNTS.—

14 ‘‘(A) GUARANTEE PERCENTAGE.—The Ad15 ministrator may guarantee not more than 85

16 percent of a loan under this subsection.

17 ‘‘(B) LOAN AMOUNTS.—The maximum

18 amount of a loan guaranteed under this sub19 section shall be $2,000,000.

20 ‘‘(6) LOAN TERM.—The longest term of a loan for

21 a loan guaranteed under this subsection shall be—

22 ‘‘(A) 15 years for any loan that is issued

23 without collateral; and

24 ‘‘(B) 25 years for any loan that is issued

25 with collateral.
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1 ‘‘(7) FEES.—

2 ‘‘(A) IN GENERAL.—The Administrator

3 may not collect a guarantee fee under this sub4 section.

5 ‘‘(B) ORIGINATION FEE.—The Adminis6 trator may pay a qualified private lender an

7 origination fee for a loan guaranteed under this

8 subsection in an amount agreed upon in advance

9 between the qualified private lender and the Ad10 ministrator.

11 ‘‘(8) DOCUMENTATION.—A qualified private

12 lender may use its own loan documentation for a loan

13 guaranteed by the Administrator, to the extent au14 thorized by the Administrator. The ability of a lender

15 to use its own loan documentation for a loan guaran16 teed under this subsection shall not be considered part

17 of the criteria for becoming a qualified private lender

18 under the regulations promulgated under paragraph

19 (9).

20 ‘‘(9) IMPLEMENTATION REGULATIONS.—

21 ‘‘(A) IN GENERAL.—Not later than 1 year

22 after the date of enactment of the Small Business

23 Disaster Response and Loan Improvements Act

24 of 2007, the Administrator shall issue final regu-
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1 lations establishing permanent criteria for quali2 fied private lenders.

3 ‘‘(B) REPORT TO CONGRESS.—Not later

4 than 6 months after the date of enactment of the

5 Small Business Disaster Response and Loan Im6 provements Act of 2007, the Administrator shall

7 submit a report on the progress of the regulations

8 required by subparagraph (A) to the Committee

9 on Small Business and Entrepreneurship of the

10 Senate and the Committee on Small Business of

11 the House of Representatives.

12 ‘‘(10) AUTHORIZATION OF APPROPRIATIONS.—

13 ‘‘(A) IN GENERAL.—Amounts necessary to

14 carry out this subsection shall be made available

15 from amounts appropriated to the Administra16 tion to carry out subsection (b).

17 ‘‘(B) AUTHORITY TO REDUCE INTEREST

18 RATES.—Funds appropriated to the Administra19 tion to carry out this subsection, may be used by

20 the Administrator, to the extent available, to re21 duce the rate of interest for any loan guaranteed

22 under this subsection by not more than 3 per23 centage points.

24 ‘‘(11) PURCHASEOF LOANS.—The Administrator

25 may enter into an agreement with a qualified private
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1 lender to purchase any loan issued under this sub2 section.’’.

3 (b) EFFECTIVE DATE.—The amendments made by this

4 section shall apply to disasters declared under section

5 7(b)(2) of the Small Business Act (631 U.S.C. 636(b)(2))

6 before, on, or after the date of enactment of this Act.

7 SEC. 11143. TECHNICAL AND CONFORMING AMENDMENTS.

8 The Small Business Act (15 U.S.C. 631 et seq.) is

9 amended—

10 (1) in section 4(c)—

11 (A) in paragraph (1), by striking ‘‘7(c)(2)’’

12 and inserting ‘‘7(d)(2)’’; and

13 (B) in paragraph (2)—

14 (i) by striking ‘‘7(c)(2)’’ and inserting

15 ‘‘7(d)(2)’’; and

16 (ii) by striking ‘‘7(e),’’; and

17 (2) in section 7(b), in the undesignated matter

18 following paragraph (3)—

19 (A) by striking ‘‘That the provisions of

20 paragraph (1) of subsection (c)’’ and inserting

21 ‘‘That the provisions of paragraph (1) of sub22 section (d)’’; and

23 (B) by striking ‘‘Notwithstanding the provi24 sions of any other law the interest rate on the

25 Administration’s share of any loan made under
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1 subsection (b) except as provided in subsection

2 (c),’’ and inserting ‘‘Notwithstanding any other

3 provision of law, and except as provided in sub4 section (d), the interest rate on the Administra5 tion’s share of any loan made under subsection

6 (b)’’.

7 SEC. 11144. EXPEDITED DISASTER ASSISTANCE LOAN PRO8 GRAM.

9 (a) DEFINITIONS.—In this section—

10 (1) the term ‘‘immediate disaster assistance’’

11 means assistance provided during the period begin12 ning on the date on which the President makes a

13 Small Business Act catastrophic disaster declaration

14 under paragraph (11) of section 7(b) of the Small

15 Business Act (15 U.S.C. 636(b)), as added by this

16 Act, and ending on the date that an impacted small

17 business concern is able to secure funding through in18 surance claims, Federal assistance programs, or other

19 sources; and

20 (2) the term ‘‘program’’ means the expedited dis21 aster assistance business loan program established

22 under subsection (b).

23 (b) CREATION OF PROGRAM.—The Administrator shall

24 take such administrative action as is necessary to establish

25 and implement an expedited disaster assistance business
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1 loan program to provide small business concerns with im2 mediate disaster assistance under paragraph (11) of section

3 7(b) of the Small Business Act (15 U.S.C. 636(b)), as added

4 by this Act.

5 (c) CONSULTATION REQUIRED.—In establishing the

6 program, the Administrator shall consult with—

7 (1) appropriate personnel of the Administration

8 (including District Office personnel of the Adminis9 tration);

10 (2) appropriate technical assistance providers

11 (including small business development centers);

12 (3) appropriate lenders and credit unions;

13 (4) the Committee on Small Business and Entre14 preneurship of the Senate; and

15 (5) the Committee on Small Business of the

16 House of Representatives.

17 (d) RULES.—

18 (1) IN GENERAL.—Not later than 1 year after

19 the date of enactment of this Act, the Administrator

20 shall issue rules in final form establishing and imple21 menting the program in accordance with this section.

22 Such rules shall apply as provided for in this section,

23 beginning 90 days after their issuance in final form.

24 (2) CONTENTS.—The rules promulgated under

25 paragraph (1) shall—
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1 (A) identify whether appropriate uses of

2 funds under the program may include—

3 (i) paying employees;

4 (ii) paying bills and other financial

5 obligations;

6 (iii) making repairs;

7 (iv) purchasing inventory;

8 (v) restarting or operating a small

9 business concern in the community in

10 which it was conducting operations prior to

11 the declared disaster, or to a neighboring

12 area, county, or parish in the disaster area;

13 or

14 (vi) covering additional costs until the

15 small business concern is able to obtain

16 funding through insurance claims, Federal

17 assistance programs, or other sources; and

18 (B) set the terms and conditions of any

19 loan made under the program, subject to para20 graph (3).

21 (3) TERMS AND CONDITIONS.—A loan made by

22 the Administration under this section—

23 (A) shall be for not more than $150,000;

24 (B) shall be a short-term loan, not to exceed

25 180 days, except that the Administrator may ex-
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1 tend such term as the Administrator determines

2 necessary or appropriate on a case-by-case basis;

3 (C) shall have an interest rate not to exceed

4 1 percentage point above the prime rate of inter5 est that a private lender may charge;

6 (D) shall have no prepayment penalty;

7 (E) may only be made to a borrower that

8 meets the requirements for a loan under section

9 7(b) of the Small Business Act (15 U.S.C.

10 636(b));

11 (F) may be refinanced as part of any subse12 quent disaster assistance provided under section

13 7(b) of the Small Business Act;

14 (G) may receive expedited loss verification

15 and loan processing, if the applicant is—

16 (i) a major source of employment in

17 the disaster area (which shall be determined

18 in the same manner as under section

19 7(b)(3)(B) of the Small Business Act (15

20 U.S.C. 636(b)(3)(B))); or

21 (ii) vital to recovery efforts in the re22 gion (including providing debris removal

23 services, manufactured housing, or building

24 materials); and
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1 (H) shall be subject to such additional terms

2 as the Administrator determines necessary or ap3 propriate.

4 (e) REPORT TO CONGRESS.—Not later than 5 months

5 after the date of enactment of this Act, the Administrator

6 shall report to the Committee on Small Business and Entre7 preneurship of the Senate and the Committee on Small

8 Business of the House of Representatives on the progress

9 of the Administrator in establishing the program.

10 (f) AUTHORIZATION.—There are authorized to be ap11 propriated to the Administrator such sums as are necessary

12 to carry out this section.

13 SEC. 11145. HUBZONES.

14 (a) IN GENERAL.—Section 3(p) of the Small Business

15 Act (15 U.S.C. 632(p)) is amended—

16 (1) in paragraph (1)—

17 (A) in subparagraph (D), by striking ‘‘or’’;

18 (B) in subparagraph (E), by striking the

19 period at the end and inserting a semicolon; and

20 (C) by adding at the end the following:

21 ‘‘(F) areas in which the President has de22 clared a major disaster (as that term is defined

23 in section 102 of the Robert T. Stafford Disaster

24 Relief and Emergency Assistance Act (42 U.S.C.

25 5122)) as a result of Hurricane Katrina of Au-
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1 gust 2005 or Hurricane Rita of September 2005,

2 during the time period described in paragraph

3 (8); or

4 ‘‘(G) Small Business Act catastrophic na5 tional disaster areas.’’;

6 (2) in paragraph (4), by adding at the end the

7 following:

8 ‘‘(E) SMALL BUSINESS ACT CATASTROPHIC

9 NATIONAL DISASTER AREA.—

10 ‘‘(i) IN GENERAL.—The term ‘Small

11 Business Act catastrophic national disaster

12 area’ means an area—

13 ‘‘(I) affected by a Small Business

14 Act catastrophic national disaster de15 clared under section 7(b)(11), during

16 the time period described in clause (ii);

17 and

18 ‘‘(II) for which the Administrator

19 determines that designation as a

20 HUBZone would substantially con21 tribute to the reconstruction and recov22 ery effort in that area.

23 ‘‘(ii) TIMEPERIOD.—The time period

24 for the purposes of clause (i)—
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1 ‘‘(I) shall be the 2-year period be2 ginning on the date that the applicable

3 Small Business Act catastrophic na4 tional disaster was declared under sec5 tion 7(b)(11); and

6 ‘‘(II) may, at the discretion of the

7 Administrator, be extended to be the 3-

8 year period beginning on the date de9 scribed in subclause (I).’’; and

10 (3) by adding at the end the following:

11 ‘‘(8) TIMEPERIOD.—The time period for the

12 purposes of paragraph (1)(F)—

13 ‘‘(A) shall be the 2-year period beginning on

14 the later of the date of enactment of this para15 graph and August 29, 2007; and

16 ‘‘(B) may, at the discretion of the Adminis17 trator, be extended to be the 3-year period begin18 ning on the later of the date of enactment of this

19 paragraph and August 29, 2007.’’.

20 (b) TOLLING OF GRADUATION.—Section 7(j)(10)(C) of

21 the Small Business Act (15 U.S.C. 636(j)(10)(C)) is amend22 ed by adding at the end the following:

23 ‘‘(iii)(I) For purposes of this subparagraph,

24 if the Administrator designates an area as a

25 HUBZone under section 3(p)(4)(E)(i)(II), the
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1 Administrator shall not count the time period

2 described in subclause (II) of this clause for any

3 small business concern—

4 ‘‘(aa) that is participating in any pro5 gram, activity, or contract under section

6 8(a); and

7 ‘‘(bb) the principal place of business of

8 which is located in that area.

9 ‘‘(II) The time period for purposes of sub10 clause (I)—

11 ‘‘(aa) shall be the 2-year period begin12 ning on the date that the applicable Small

13 Business Act catastrophic national disaster

14 was declared under section 7(b)(11); and

15 ‘‘(bb) may, at the discretion of the Ad16 ministrator, be extended to be the 3-year pe17 riod beginning on the date described in item

18 (aa).’’.

19 (c) STUDY OF HUBZONE DISASTER AREAS.—Not

20 later than 1 year after the date of enactment of this Act,

21 the Comptroller General of the United States shall submit

22 a report to the Committee on Small Business and Entrepre23 neurship of the Senate and the Committee on Small Busi24 ness of the House of Representatives evaluating the designa25 tion by the Administrator of Small Business Act cata-
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1 strophic national disaster areas, as that term is defined in

2 section 3(p)(4)(E) of the Small Business Act (as added by

3 this Act), as HUBZones.

4 PART III—DISASTER ASSISTANCE OVERSIGHT

5 SEC. 11161. CONGRESSIONAL OVERSIGHT.

6 (a) MONTHLY ACCOUNTING REPORT TO CONGRESS.—

7 (1) REPORTING REQUIREMENTS.—Not later than

8 the fifth business day of each month during the appli9 cable period for a major disaster, the Administrator

10 shall provide to the Committee on Small Business

11 and Entrepreneurship and the Committee on Appro12 priations of the Senate and to the Committee on

13 Small Business and the Committee on Appropriations

14 of the House of Representatives a report on the oper15 ation of the disaster loan program authorized under

16 section 7 of the Small Business Act (15 U.S.C. 636)

17 for that major disaster during the preceding month.

18 (2) CONTENTS.—Each report under paragraph

19 (1) shall include—

20 (A) the daily average lending volume, in

21 number of loans and dollars, and the percent by

22 which each category has increased or decreased

23 since the previous report under paragraph (1);

24 (B) the weekly average lending volume, in

25 number of loans and dollars, and the percent by
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1 which each category has increased or decreased

2 since the previous report under paragraph (1);

3 (C) the amount of funding spent over the

4 month for loans, both in appropriations and

5 program level, and the percent by which each

6 category has increased or decreased since the pre7 vious report under paragraph (1);

8 (D) the amount of funding available for

9 loans, both in appropriations and program level,

10 and the percent by which each category has in11 creased or decreased since the previous report

12 under paragraph (1), noting the source of any

13 additional funding;

14 (E) an estimate of how long the available

15 funding for such loans will last, based on the

16 spending rate;

17 (F) the amount of funding spent over the

18 month for staff, along with the number of staff,

19 and the percent by which each category has in20 creased or decreased since the previous report

21 under paragraph (1);

22 (G) the amount of funding spent over the

23 month for administrative costs, and the percent

24 by which such spending has increased or de-
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1 creased since the previous report under para2 graph (1);

3 (H) the amount of funding available for sal4 aries and expenses combined, and the percent by

5 which such funding has increased or decreased

6 since the previous report under paragraph (1),

7 noting the source of any additional funding; and

8 (I) an estimate of how long the available

9 funding for salaries and expenses will last, based

10 on the spending rate.

11 (b) DAILY DISASTER UPDATES TO CONGRESS FOR

12 PRESIDENTIALLY DECLARED DISASTERS.—

13 (1) IN GENERAL.—Each day during a disaster

14 update period, excluding Federal holidays and week15 ends, the Administration shall provide to the Com16 mittee on Small Business and Entrepreneurship of

17 the Senate and to the Committee on Small Business

18 of the House of Representatives a report on the oper19 ation of the disaster loan program of the Administra20 tion for the area in which the President declared a

21 major disaster.

22 (2) CONTENTS.—Each report under paragraph

23 (1) shall include—

24 (A) the number of Administration staff per25 forming loan processing, field inspection, and
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1 other duties for the declared disaster, and the al2 locations of such staff in the disaster field offices,

3 disaster recovery centers, workshops, and other

4 Administration offices nationwide;

5 (B) the daily number of applications re6 ceived from applicants in the relevant area, as

7 well as a breakdown of such figures by State;

8 (C) the daily number of applications pend9 ing application entry from applicants in the rel10 evant area, as well as a breakdown of such fig11 ures by State;

12 (D) the daily number of applications with13 drawn by applicants in the relevant area, as

14 well as a breakdown of such figures by State;

15 (E) the daily number of applications sum16 marily declined by the Administration from ap17 plicants in the relevant area, as well as a break18 down of such figures by State;

19 (F) the daily number of applications de20 clined by the Administration from applicants in

21 the relevant area, as well as a breakdown of such

22 figures by State;

23 (G) the daily number of applications in

24 process from applicants in the relevant area, as

25 well as a breakdown of such figures by State;
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1 (H) the daily number of applications ap2 proved by the Administration from applicants in

3 the relevant area, as well as a breakdown of such

4 figures by State;

5 (I) the daily dollar amount of applications

6 approved by the Administration from applicants

7 in the relevant area, as well as a breakdown of

8 such figures by State;

9 (J) the daily amount of loans dispersed,

10 both partially and fully, by the Administration

11 to applicants in the relevant area, as well as a

12 breakdown of such figures by State;

13 (K) the daily dollar amount of loans dis14 bursed, both partially and fully, from the rel15 evant area, as well as a breakdown of such fig16 ures by State;

17 (L) the number of applications approved,

18 including dollar amount approved, as well as

19 applications partially and fully disbursed, in20 cluding dollar amounts, since the last report

21 under paragraph (1); and

22 (M) the declaration date, physical damage

23 closing date, economic injury closing date, and

24 number of counties included in the declaration of

25 a major disaster.
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1 (c) NOTICEOF THE NEED FOR SUPPLEMENTAL

2 FUNDS.—On the same date that the Administrator notifies

3 any committee of the Senate or the House of Representatives

4 that supplemental funding is necessary for the disaster loan

5 program of the Administration in any fiscal year, the Ad6 ministrator shall notify in writing the Committee on Small

7 Business and Entrepreneurship of the Senate and the Com8 mittee on Small Business of the House of Representatives

9 regarding the need for supplemental funds for that loan pro10 gram.

11 (d) REPORT ON CONTRACTING.—

12 (1) IN GENERAL.—Not later than 6 months after

13 the date on which the President declares a major dis14 aster, and every 6 months thereafter until the date

15 that is 18 months after the date on which the major

16 disaster was declared, the Administrator shall submit

17 a report to the Committee on Small Business and En18 trepreneurship of the Senate and to the Committee on

19 Small Business of the House of Representatives re20 garding Federal contracts awarded as a result of that

21 major disaster.

22 (2) CONTENTS.—Each report submitted under

23 paragraph (1) shall include—

24 (A) the total number of contracts awarded

25 as a result of that major disaster;
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1 (B) the total number of contracts awarded

2 to small business concerns as a result of that

3 major disaster;

4 (C) the total number of contracts awarded

5 to women and minority-owned businesses as a

6 result of that major disaster; and

7 (D) the total number of contracts awarded

8 to local businesses as a result of that major dis9 aster.

10 (e) REPORT ON LOAN APPROVAL RATE.—

11 (1) IN GENERAL.—Not later than 6 months after

12 the date of enactment of this Act, the Administrator

13 shall submit a report to the Committee on Small

14 Business and Entrepreneurship of the Senate and the

15 Committee on Small Business of the House of Rep16 resentatives detailing how the Administration can im17 prove the processing of applications under the disaster

18 loan program of the Administration.

19 (2) CONTENTS.—The report submitted under

20 paragraph (1) shall include—

21 (A) recommendations, if any, regarding—

22 (i) staffing levels during a major dis23 aster;

24 (ii) how to improve the process for

25 processing, approving, and disbursing loans
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1 under the disaster loan program of the Ad2 ministration, to ensure that the maximum

3 assistance is provided to victims in a timely

4 manner;

5 (iii) the viability of using alternative

6 methods for assessing the ability of an ap7 plicant to repay a loan, including the credit

8 score of the applicant on the day before the

9 date on which the disaster for which the ap10 plicant is seeking assistance was declared;

11 (iv) methods, if any, for the Adminis12 tration to expedite loss verification and

13 loan processing of disaster loans during a

14 major disaster for businesses affected by,

15 and located in the area for which the Presi16 dent declared, the major disaster that are a

17 major source of employment in the area or

18 are vital to recovery efforts in the region

19 (including providing debris removal serv20 ices, manufactured housing, or building ma21 terials);

22 (v) legislative changes, if any, needed

23 to implement findings from the Accelerated

24 Disaster Response Initiative of the Admin25 istration; and
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1 (vi) a description of how the Adminis2 tration plans to integrate and coordinate

3 the response to a major disaster with the

4 technical assistance programs of the Admin5 istration; and

6 (B) the plans of the Administrator for im7 plementing any recommendation made under

8 subparagraph (A).

9 TITLE XII—TRADE AND TAX

10 PROVISIONS

11 SEC. 12001. SHORT TITLE; ETC.

12 (a) SHORT TITLE.—This title may be cited as the

13 ‘‘Heartland, Habitat, Harvest, and Horticulture Act of

14 2007’’.

15 (b) AMENDMENTS TO 1986 CODE.—Except as other16 wise expressly provided, whenever in this title an amend17 ment or repeal is expressed in terms of an amendment to,

18 or repeal of, a section or other provision, the reference shall

19 be considered to be made to a section or other provision

20 of the Internal Revenue Code of 1986.
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1 Subtitle A—Supplemental Agricul2 tural Disaster Assistance From

3 the Agriculture Disaster Relief

4 Trust Fund

5 SEC. 12101. SUPPLEMENTAL AGRICULTURE DISASTER AS6 SISTANCE.

7 (a) IN GENERAL.—The Trade Act of 1974 (19 U.S.C.

8 2101 et seq.) is amended by adding at the end the following:

9 ‘‘TITLE IX—SUPPLEMENTAL AG10 RICULTURE DISASTER AS11 SISTANCE

12 ‘‘SEC. 901. PERMANENT AUTHORITY FOR SUPPLEMENTAL

13 REVENUE ASSISTANCE.

14 ‘‘(a) DEFINITIONS.—In this section:

15 ‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The

16 term ‘actual production history yield’ means the

17 weighted average actual production history for each

18 insurable commodity or noninsurable commodity, as

19 calculated under the Federal Crop Insurance Act (7

20 U.S.C. 1501 et seq.) or the noninsured crop disaster

21 assistance program, respectively.

22 ‘‘(2) COUNTER-CYCLICAL PROGRAM PAYMENT

23 YIELD.—The term ‘counter-cyclical program payment

24 yield’ means the weighted average payment yield es-
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1 tablished under section 1102 of the Farm Security

2 and Rural Investment Act of 2002 (7 U.S.C. 7912).

3 ‘‘(3) DISASTER COUNTY.—

4 ‘‘(A) IN GENERAL.—The term ‘disaster

5 county’ means a county included in the geo6 graphic area covered by a qualifying natural

7 disaster declaration.

8 ‘‘(B) INCLUSION.—The term ‘disaster coun9 ty’ includes—

10 ‘‘(i) a county contiguous to a county

11 described in subparagraph (A); and

12 ‘‘(ii) any farm in which, during a cal13 endar year, the total loss of production of

14 the farm relating to weather is greater than

15 50 percent of the normal production of the

16 farm, as determined by the Secretary.

17 ‘‘(4) ELIGIBLEPRODUCER ON A FARM.—

18 ‘‘(A) IN GENERAL.—The term ‘eligible pro19 ducer on a farm’ means an individual or entity

20 described in subparagraph (B) that, as deter21 mined by the Secretary, assumes the production

22 and market risks associated with the agricultural

23 production of crops or livestock.

24 ‘‘(B) DESCRIPTION.—An individual or enti25 ty referred to in subparagraph (A) is—
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1 ‘‘(i) a citizen of the United States;

2 ‘‘(ii) a resident alien;

3 ‘‘(iii) a partnership of citizens of the

4 United States; or

5 ‘‘(iv) a corporation, limited liability

6 corporation, or other farm organizational

7 structure organized under State law.

8 ‘‘(5) FARM.—

9 ‘‘(A) IN GENERAL.—The term ‘farm’ means,

10 in relation to an eligible producer on a farm, the

11 sum of all crop acreage in all counties that—

12 ‘‘(i) is used for grazing by the eligible

13 producer; or

14 ‘‘(ii) is planted or intended to be

15 planted for harvest by the eligible producer.

16 ‘‘(B) AQUACULTURE.—In the case of aqua17 culture, the term ‘farm’ means, in relation to an

18 eligible producer on a farm, all fish being pro19 duced in all counties that are intended to be har20 vested for sale by the eligible producer.

21 ‘‘(C) HONEY.—In the case of honey, the

22 term ‘farm’ means, in relation to an eligible pro23 ducer on a farm, all bees and beehives in all

24 counties that are intended to be harvested for a

25 honey crop by the eligible producer.
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1 ‘‘(6) FARM-RAISED FISH.—The term ‘farm-raised

2 fish’ means any aquatic species (including any spe3 cies of finfish, mollusk, crustacean, or other aquatic

4 invertebrate, amphibian, reptile, or aquatic plant)

5 that is propagated and reared in a controlled or

6 semicontrolled environment.

7 ‘‘(7) INSURABLECOMMODITY.—The term ‘insur8 able commodity’ means an agricultural commodity

9 (excluding livestock) for which the producer on a farm

10 is eligible to obtain a policy or plan of insurance

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

12 et seq.).

13 ‘‘(8) LIVESTOCK.—The term ‘livestock’

14 includes—

15 ‘‘(A) cattle (including dairy cattle);

16 ‘‘(B) bison;

17 ‘‘(C) poultry;

18 ‘‘(D) sheep;

19 ‘‘(E) swine;

20 ‘‘(F) horses; and

21 ‘‘(G) other livestock, as determined by the

22 Secretary.

23 ‘‘(9) MOVING 5-YEAR OLYMPIC AVERAGE COUNTY

24 YIELD.—The term ‘moving 5-year Olympic average

25 county yield’ means the weighted average yield ob-
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1 tained from the 5 most recent years of yield data pro2 vided by the National Agriculture Statistics Service

3 obtained from data after dropping the highest and the

4 lowest yields.

5 ‘‘(10) NONINSURABLECOMMODITY.—The term

6 ‘noninsurable commodity’ means a crop for which the

7 eligible producers on a farm are eligible to obtain as8 sistance under the noninsured crop assistance pro9 gram.

10 ‘‘(11) NONINSURED CROP ASSISTANCE PRO11 GRAM.—The term ‘noninsured crop assistance pro12 gram’ means the program carried out under section

13 196 of the Federal Agriculture Improvement and Re14 form Act of 1996 (7 U.S.C. 7333).

15 ‘‘(12) QUALIFYING NATURAL DISASTER DECLARA16 TION.—The term ‘qualifying natural disaster declara17 tion’ means a natural disaster declared by the Sec18 retary for production losses under section 321(a) of

19 the Consolidated Farm and Rural Development Act

20 (7 U.S.C. 1961(a)).

21 ‘‘(13) SECRETARY.—The term ‘Secretary’ means

22 the Secretary of Agriculture.

23 ‘‘(14) STATE.—The term ‘State’ means—

24 ‘‘(A) a State;

25 ‘‘(B) the District of Columbia;
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1 ‘‘(C) the Commonwealth of Puerto Rico; and

2 ‘‘(D) any other territory or possession of the

3 United States.

4 ‘‘(15) TRUST FUND.—The term ‘Trust Fund’

5 means the Agriculture Disaster Relief Trust Fund es6 tablished under section 902.

7 ‘‘(16) UNITED STATES.—The term ‘United

8 States’ when used in a geographical sense, means all

9 of the States.

10 ‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAY11 MENTS.—

12 ‘‘(1) IN GENERAL.—The Secretary shall use such

13 sums as are necessary from the Trust Fund to make

14 crop disaster assistance payments to eligible pro15 ducers on farms in disaster counties that have in16 curred crop production losses or crop quality losses, or

17 both, during the crop year.

18 ‘‘(2) AMOUNT.—

19 ‘‘(A) IN GENERAL.—Subject to subpara20 graph (B), the Secretary shall provide crop dis21 aster assistance payments under this section to

22 an eligible producer on a farm in an amount

23 equal to 52 percent of the difference between—
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1 ‘‘(i) the disaster assistance program

2 guarantee, as described in paragraph (3);

3 and

4 ‘‘(ii) the total farm revenue for a farm,

5 as described in paragraph (4).

6 ‘‘(B) LIMITATION.—The disaster assistance

7 program guarantee for a crop used to calculate

8 the payments for a farm under subparagraph

9 (A)(i) may not be greater than 90 percent of the

10 sum of the expected revenue, as described in

11 paragraph (5) for each of the crops on a farm,

12 as determined by the Secretary.

13 ‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PRO14 GRAM GUARANTEE.—

15 ‘‘(A) IN GENERAL.—Except as otherwise

16 provided in this paragraph, the supplemental as17 sistance program guarantee shall be the sum ob18 tained by adding—

19 ‘‘(i) for each insurable commodity on

20 the farm, the product obtained by

21 multiplying—

22 ‘‘(I) the greatest of—

23 ‘‘(aa) the actual production

24 history yield;
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1 ‘‘(bb) 90 percent of the mov2 ing 5-year Olympic average coun3 ty yield; and

4 ‘‘(cc) the counter-cyclical

5 program payment yield for each

6 crop;

7 ‘‘(II) the percentage of the crop

8 insurance yield guarantee;

9 ‘‘(III) the percentage of crop in10 surance price elected by the eligible

11 producer;

12 ‘‘(IV) the crop insurance price;

13 and

14 ‘‘(V) 115 percent; and

15 ‘‘(ii) for each noninsurable commodity

16 on a farm, the product obtained by

17 multiplying—

18 ‘‘(I) the weighted noninsured crop

19 assistance program yield guarantee;

20 ‘‘(II) except as provided in sub21 paragraph (B), 100 percent of the non22 insured crop assistance program estab23 lished price; and

24 ‘‘(III) 115 percent.
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1 ‘‘(B) SUPPLEMENTAL BUY-UP NONINSURED

2 ASSISTANCEPROGRAM.—Beginning on the date

3 that the Secretary makes available supplemental

4 buy-up coverage under the noninsured assistance

5 program in accordance with subsection (h), the

6 percentage described in subclause (II) of sub7 paragraph (A)(ii) shall be equal to the percent8 age of the noninsured assistance program price

9 guarantee elected by the producer.

10 ‘‘(C) ADJUSTMENT INSURANCE GUAR11 ANTEE.—Notwithstanding subparagraph (A), in

12 the case of an insurable commodity for which a

13 plan of insurance provides for an adjustment in

14 the guarantee, such as in the case of prevented

15 planting, the adjusted insurance guarantee shall

16 be the basis for determining the disaster assist17 ance program guarantee for the insurable com18 modity.

19 ‘‘(D) ADJUSTED ASSISTANCE LEVEL.—Not20 withstanding subparagraph (A), in the case of a

21 noninsurable commodity for which the non22 insured crop assistance program provides for an

23 adjustment in the level of assistance, such as in

24 the case of prevented harvesting, the adjusted as25 sistance level shall be the basis for determining
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1 the disaster assistance program guarantee for the

2 noninsurable commodity.

3 ‘‘(E) EQUITABLE TREATMENT FOR NON4 YIELD BASED POLICIES.—The Secretary shall es5 tablish equitable treatment for non-yield based

6 policies and plans of insurance, such as the Ad7 justed Gross Revenue Lite insurance program.

8 ‘‘(F) PUBLIC MANAGED LAND.—Notwith9 standing subparagraph (A), if rangeland is

10 managed by a Federal agency and the carrying

11 capacity of the managed rangeland is reduced as

12 a result of a disaster in the preceding year that

13 was the basis for a qualifying natural disaster

14 declaration—

15 ‘‘(i) the calculation for the supple16 mental assistance program guarantee deter17 mined under subparagraph (A) as the guar18 antee applies to the managed rangeland

19 shall be not less than 75 percent of the guar20 antee for the preceding year; and

21 ‘‘(ii) the requirement for a designation

22 by the Secretary for the current year is

23 waived.

24 ‘‘(4) FARM REVENUE.—
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1 ‘‘(A) IN GENERAL.—For purposes of this

2 subsection, the total farm revenue for a farm,

3 shall equal the sum obtained by adding—

4 ‘‘(i) the estimated actual value for

5 grazing and for each crop produced on a

6 farm by using the product obtained by

7 multiplying—

8 ‘‘(I) the actual crop acreage

9 grazed or harvested by an eligible pro10 ducer on a farm;

11 ‘‘(II) the estimated actual yield of

12 the grazing land or crop production;

13 and

14 ‘‘(III) subject to subparagraphs

15 (B) and (C), the average market price

16 received or value of the production dur17 ing the first 5 months of the marketing

18 year for the county in which the farm

19 or portion of a farm is located;

20 ‘‘(ii) 20 percent of amount of any di21 rect payments made to the producer under

22 section 1103 of the Farm Security and

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

24 7913) or of any fixed direct payments made
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1 at the election of the producer in lieu of that

2 section or a subsequent section;

3 ‘‘(iii) the amount of payments for pre4 vented planting on a farm;

5 ‘‘(iv) the amount of crop insurance in6 demnities received by an eligible producer

7 on a farm for each crop on a farm, includ8 ing indemnities for grazing losses;

9 ‘‘(v) the amount of payments an eligi10 ble producer on a farm received under the

11 noninsured crop assistance program for

12 each crop on a farm, including grazing

13 losses; and

14 ‘‘(vi) the value of any other natural

15 disaster assistance payments provided by

16 the Federal Government to an eligible pro17 ducer on a farm for each crop on a farm for

18 the same loss for which the eligible producer

19 is seeking assistance.

20 ‘‘(B) ADJUSTMENT.—The Secretary shall

21 adjust the average market price received by the

22 eligible producer on a farm—

23 ‘‘(i) to reflect the average quality dis24 counts applied to the local or regional mar25 ket price of a crop, hay, or forage due to a
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1 reduction in the intrinsic characteristics of

2 the production resulting from adverse

3 weather, as determined annually by the

4 State office of the Farm Service Agency;

5 and

6 ‘‘(ii) to account for a crop the value of

7 which is reduced due to excess moisture re8 sulting from a disaster-related condition.

9 ‘‘(C) MAXIMUM AMOUNT FOR CERTAIN

10 CROPS.—With respect to a crop for which an eli11 gible producer on a farm receives assistance

12 under the noninsured crop assistance program,

13 the average market price received or value of the

14 production during the first 5 months of the mar15 keting year for the county in which the farm or

16 portion of a farm is located shall be an amount

17 not more than 100 percent of the price of the

18 crop established under the noninsured crop as19 sistance program.

20 ‘‘(5) EXPECTED REVENUE.—The expected rev21 enue for each crop on a farm shall equal the sum ob22 tained by adding—

23 ‘‘(A) the expected value of grazing;

24 ‘‘(B) the product obtained by multiplying—

25 ‘‘(i) the greatest of—
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1 ‘‘(I) the actual production history

2 yield of the eligible producer on a

3 farm;

4 ‘‘(II) the moving 5-year Olympic

5 average county yield; and

6 ‘‘(III) the counter-cyclical pro7 gram payment yield;

8 ‘‘(ii) the acreage planted or intended to

9 be planted for each crop; and

10 ‘‘(iii) 100 percent of the insurance

11 price guarantee; and

12 ‘‘(C) the product obtained by multiplying—

13 ‘‘(i) 100 percent of the noninsured crop

14 assistance program yield; and

15 ‘‘(ii) 100 percent of the noninsured

16 crop assistance program price for each of

17 the crops on a farm.

18 ‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.—

19 ‘‘(1) IN GENERAL.—The Secretary shall use such

20 sums as are necessary from the Trust Fund to make

21 livestock indemnity payments to eligible producers on

22 farms that have incurred livestock death losses in ex23 cess of the normal mortality due to adverse weather,

24 as determined by the Secretary, during the calendar

25 year, including losses due to hurricanes, floods, bliz-
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1 zards, disease, wildfires, extreme heat, and extreme

2 cold.

3 ‘‘(2) PAYMENT RATES.—Indemnity payments to

4 an eligible producer on a farm under paragraph (1)

5 shall be made at a rate of 75 percent of the market

6 value of the applicable livestock on the day before the

7 date of death of the livestock, as determined by the

8 Secretary.

9 ‘‘(d) EMERGENCY ASSISTANCEFOR LIVESTOCK,

10 HONEY BEES, AND FARM-RAISED FISH.—

11 ‘‘(1) IN GENERAL.—The Secretary shall use up

12 to $35,000,000 per year from the Trust Fund to pro13 vide emergency relief to eligible producers of livestock,

14 honey bees, and farm-raised fish to aid in the reduc15 tion of losses due to adverse weather or other environ16 mental conditions, such as blizzards and wildfires, as

17 determined by the Secretary, that are not covered

18 under the authority of the Secretary to make quali19 fying natural disaster declarations.

20 ‘‘(2) USEOF FUNDS.—Funds made available

21 under this subsection shall be used to reduce losses

22 caused by feed or water shortages, disease, or other

23 factors as determined by the Secretary.
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1 ‘‘(3) AVAILABILITY OF FUNDS.—Any funds made

2 available under this subsection and not used in a

3 crop year shall remain available until expended.

4 ‘‘(e) TREE ASSISTANCE PROGRAM.—

5 ‘‘(1) DEFINITIONS.—In this subsection:

6 ‘‘(A) ELIGIBLEORCHARDIST.—The term ‘el7 igible orchardist’ means a person that produces

8 annual crops from trees for commercial purposes.

9 ‘‘(B) NATURAL DISASTER.—The term ‘nat10 ural disaster’ means plant disease, insect infesta11 tion, drought, fire, freeze, flood, earthquake,

12 lightning, or other occurrence, as determined by

13 the Secretary.

14 ‘‘(C) NURSERY TREE GROWER.—The term

15 ‘nursery tree grower’ means a person who pro16 duces nursery, ornamental, fruit, nut, or Christ17 mas trees for commercial sale, as determined by

18 the Secretary.

19 ‘‘(D) TREE.—The term ‘tree’ includes a

20 tree, bush, and vine.

21 ‘‘(2) ELIGIBILITY.—

22 ‘‘(A) LOSS.—Subject to subparagraph (B),

23 the Secretary shall provide assistance under

24 paragraph (3) to eligible orchardists and nursery

25 tree growers that planted trees for commercial
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1 purposes but lost the trees as a result of a nat2 ural disaster, as determined by the Secretary.

3 ‘‘(B) LIMITATION.—An eligible orchardist

4 or nursery tree grower shall qualify for assist5 ance under subparagraph (A) only if the tree

6 mortality of the eligible orchardist or nursery

7 tree grower, as a result of damaging weather or

8 related condition, exceeds 15 percent (adjusted

9 for normal mortality).

10 ‘‘(3) ASSISTANCE.—Subject to paragraph (4), the

11 assistance provided by the Secretary to eligible or12 chardists and nursery tree growers for losses described

13 in paragraph (2) shall consist of—

14 ‘‘(A)(i) reimbursement of 75 percent of the

15 cost of replanting trees lost due to a natural dis16 aster, as determined by the Secretary, in excess

17 of 15 percent mortality (adjusted for normal

18 mortality); or

19 ‘‘(ii) at the option of the Secretary, suffi20 cient seedlings to reestablish a stand; and

21 ‘‘(B) reimbursement of 50 percent of the cost

22 of pruning, removal, and other costs incurred by

23 an eligible orchardist or nursery tree grower to

24 salvage existing trees or, in the case of tree mor25 tality, to prepare the land to replant trees as a
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1 result of damage or tree mortality due to a nat2 ural disaster, as determined by the Secretary, in

3 excess of 15 percent damage or mortality (ad4 justed for normal tree damage and mortality).

5 ‘‘(4) LIMITATIONS ON ASSISTANCE.—

6 ‘‘(A) AMOUNT.—The total amount of pay7 ments that a person shall be entitled to receive

8 under this subsection may not exceed $100,000

9 per year, or an equivalent value in tree seed10 lings.

11 ‘‘(B) ACRES.—The total quantity of acres

12 planted to trees or tree seedlings for which a per13 son shall be entitled to receive payments under

14 this subsection may not exceed 500 acres.

15 ‘‘(C) REGULATIONS.—The Secretary shall

16 promulgate —

17 ‘‘(i) regulations defining the term ‘per18 son’ for the purposes of this subsection,

19 which shall conform, to the maximum ex20 tent practicable, to the regulations defining

21 the term ‘person’ promulgated under section

22 1001 of the Food Security Act of 1985 (7

23 U.S.C. 1308); and

24 ‘‘(ii) such regulations as the Secretary

25 determines necessary to ensure a fair and
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1 reasonable application of the limitation es2 tablished under this paragraph.

3 ‘‘(f) PLANT PEST AND DISEASE MANAGEMENT AND

4 DISASTER PREVENTION.—

5 ‘‘(1) DEFINITIONS.—In this subsection:

6 ‘‘(A) EARLY PLANT PEST DETECTION AND

7 SURVEILLANCE.—The term ‘early plant pest de8 tection and surveillance’ means the full range of

9 activities undertaken to find newly introduced

10 plant pests, whether the plant pests are new to

11 the United States or new to certain areas of the

12 United States, before—

13 ‘‘(i) the plant pests become established;

14 or

15 ‘‘(ii) the plant pest infestations become

16 too large and costly to eradicate or control.

17 ‘‘(B) PLANT PEST.—The term ‘plant pest’

18 has the meaning given such term in section 403

19 of the Plant Protection Act (7 U.S.C. 7702).

20 ‘‘(C) SPECIALTY CROP.—The term ‘specialty

21 crop’ has the meaning given the term in section

22 3 of the Specialty Crops Competitiveness Act of

23 2004 (7 U.S.C. 1621 note; Public Law 108–465).

24 ‘‘(D) STATE DEPARTMENT OF AGRI25 CULTURE.—The term ‘State department of agri-
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1 culture’ means an agency of a State that has a

2 legal responsibility to perform early plant pest

3 detection and surveillance activities.

4 ‘‘(2) EARLY PLANT PEST DETECTION AND SUR5 VEILLANCE IMPROVEMENT PROGRAM.—

6 ‘‘(A) COOPERATIVE AGREEMENTS.—The

7 Secretary shall enter into a cooperative agree8 ment with each State department of agriculture

9 that agrees to conduct early plant pest detection

10 and surveillance activities.

11 ‘‘(B) CONSULTATION.—In carrying out this

12 paragraph, the Secretary shall consult with—

13 ‘‘(i) the National Plant Board;

14 ‘‘(ii) the National Association of State

15 Departments of Agriculture; and

16 ‘‘(iii) stakeholders.

17 ‘‘(C) FUNDS UNDER AGREEMENTS.—Each

18 State department of agriculture with which the

19 Secretary enters into a cooperative agreement

20 under this paragraph shall receive funding for

21 each of fiscal years 2008 through 2012 in an

22 amount to be determined by the Secretary.

23 ‘‘(D) USEOF FUNDS.—

24 ‘‘(i) PLANT PEST DETECTION AND SUR25 VEILLANCE ACTIVITIES.—A State depart-
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1 ment of agriculture that receives funds

2 under this paragraph shall use the funds to

3 carry out early plant pest detection and

4 surveillance activities to prevent the intro5 duction of a plant pest or facilitate the

6 eradication of a plant pest, pursuant to a

7 cooperative agreement.

8 ‘‘(ii) SUBAGREEMENTS.—Nothing in

9 this paragraph prevents a State department

10 of agriculture from using funds received

11 under subparagraph (C) to enter into sub12 agreements with political subdivisions of the

13 State that have legal responsibilities relat14 ing to agricultural plant pest and disease

15 surveillance.

16 ‘‘(iii) NON-FEDERAL SHARE.—The

17 non-Federal share of the cost of carrying out

18 a cooperative agreement under this section

19 may be provided in-kind, including through

20 provision of such indirect costs of the coop21 erative agreement as the Secretary considers

22 to be appropriate.

23 ‘‘(E) SPECIAL FUNDING CONSIDERATIONS.—

24 The Secretary shall provide funds to a State de-
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1 partment of agriculture if the Secretary deter2 mines that—

3 ‘‘(i) the State department of agri4 culture is in a State that has a high risk

5 of being affected by 1 or more plant pests;

6 and

7 ‘‘(ii) the early plant pest detection and

8 surveillance activities supported with the

9 funds will likely—

10 ‘‘(I) prevent the introduction and

11 establishment of plant pests; and

12 ‘‘(II) provide a comprehensive ap13 proach to compliment Federal detec14 tion efforts.

15 ‘‘(F) REPORTING REQUIREMENT.—Not later

16 than 180 days after the date of completion of an

17 early plant pest detection and surveillance activ18 ity conducted by a State department of agri19 culture using funds provided under this sub20 section, the State department of agriculture shall

21 submit to the Secretary a report that describes

22 the purposes and results of the activities.

23 ‘‘(3) THREAT IDENTIFICATION AND MITIGATION

24 PROGRAM.—
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1 ‘‘(A) ESTABLISHMENT.—The Secretary, act2 ing through the Administrator of the Animal

3 and Plant Health Inspection Service (referred to

4 in this section as the ‘Secretary’), shall establish

5 a threat identification and mitigation program

6 to determine and prioritize foreign threats to the

7 domestic production of crops.

8 ‘‘(B) REQUIREMENTS.—In conducting the

9 program established under subparagraph (A), the

10 Secretary shall—

11 ‘‘(i) consult with the Director of the

12 Center for Plant Health Science and Tech13 nology;

14 ‘‘(ii) conduct, in partnership with

15 States, early plant pest detection and sur16 veillance activities;

17 ‘‘(iii) develop risk assessments of the

18 potential threat to the agricultural industry

19 of the United States from foreign sources;

20 ‘‘(iv) collaborate with the National

21 Plant Board on the matters described in

22 subparagraph (C);

23 ‘‘(v) implement action plans developed

24 under subparagraph (C)(ii)(I) immediately

25 after development of the action plans—
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1 ‘‘(I) to test the effectiveness of the

2 action plans; and

3 ‘‘(II) to assist in preventing the

4 introduction and widespread dissemi5 nation of new foreign and domestic

6 plant pest and disease threats in the

7 United States; and

8 ‘‘(vi) as appropriate, consult with, and

9 use the expertise of, the Administrator of the

10 Agricultural Research Service in the devel11 opment of plant pest and disease detection,

12 control, and eradication strategies.

13 ‘‘(C) MATTERS DESCRIBED.—The matters

14 described in this subparagraph are—

15 ‘‘(i) the prioritization of foreign

16 threats to the agricultural industry; and

17 ‘‘(ii) the development, in consultation

18 with State departments of agriculture and

19 other State or regional resource partner20 ships, of—

21 ‘‘(I) action plans that effectively

22 address the foreign threats, including

23 pathway analysis, offshore mitigation

24 measures, and comprehensive exclusion
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1 measures at ports of entry and other

2 key distribution centers; and

3 ‘‘(II) strategies to employ if a for4 eign plant pest or disease is intro5 duced;

6 ‘‘(D) REPORTS.—Not later than 1 year

7 after the date of enactment of this paragraph,

8 and annually thereafter, the Secretary shall up9 date and submit to Congress the priority list and

10 action plans described in subparagraph (C), in11 cluding an accounting of funds expended on the

12 action plans.

13 ‘‘(4) SPECIALTY CROP CERTIFICATION AND RISK

14 MANAGEMENT SYSTEMS.—The Secretary shall provide

15 funds and technical assistance to specialty crop grow16 ers, organizations representing specialty crop growers,

17 and State and local agencies working with specialty

18 crop growers and organizations for the development

19 and implementation of—

20 ‘‘(A) audit-based certification systems, such

21 as best management practices—

22 ‘‘(i) to address plant pests; and

23 ‘‘(ii) to mitigate the risk of plant pests

24 in the movement of plants and plant prod25 ucts; and
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1 ‘‘(B) nursery plant pest risk management

2 systems, in collaboration with the nursery indus3 try, research institutions, and other appropriate

4 entities—

5 ‘‘(i) to enable growers to identify and

6 prioritize nursery plant pests and diseases

7 of regulatory significance;

8 ‘‘(ii) to prevent the introduction, estab9 lishment, and spread of those plant pests

10 and diseases; and

11 ‘‘(iii) to reduce the risk of, mitigate,

12 and eradicate those plant pests and dis13 eases.

14 ‘‘(5) FUNDING.—The Secretary shall use from the

15 Trust Fund to carry out this subsection—

16 ‘‘(A) $10,000,000 for fiscal year 2008;

17 ‘‘(B) $25,000,000 for fiscal year 2009;

18 ‘‘(C) $40,000,000 for fiscal year 2010;

19 ‘‘(D) $50,000,000 for fiscal year 2011; and

20 ‘‘(E) $64,000,000 for fiscal year 2012.

21 ‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.—

22 ‘‘(1) IN GENERAL.—Except as otherwise provided

23 in this subsection, the eligible producers on a farm

24 shall not be eligible for assistance under this section

25 with respect to losses to an insurable commodity or
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1 noninsurable commodity if the eligible producers on

2 the farm—

3 ‘‘(A) in the case of an insurable commodity,

4 did not obtain a policy or plan of insurance for

5 the insurable commodity under the Federal Crop

6 Insurance Act (7 U.S.C. 1501 et seq.) (excluding

7 a crop insurance pilot program under that Act)

8 for the crop incurring the losses; or

9 ‘‘(B) in the case of a noninsurable com10 modity, did not file the required paperwork, and

11 pay the administrative fee by the applicable

12 State filing deadline, for the noninsurable com13 modity under the noninsured crop assistance

14 program for the crop incurring the losses.

15 ‘‘(2) MINIMUM.—To be considered to have ob16 tained insurance under paragraph (1), an eligible

17 producer on a farm shall have obtained a policy or

18 plan of insurance with not less than 50 percent yield

19 coverage at 55 percent of the insurable price for each

20 crop grazed, planted, or intended to be planted for

21 harvest on a whole farm.

22 ‘‘(3) WAIVER.—With respect to eligible producers

23 that are limited resource, minority, or beginning

24 farmers or ranchers, as determined by the Secretary,

25 the Secretary may—
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1 ‘‘(A) waive paragraph (1); and

2 ‘‘(B) provide disaster assistance under this

3 section at a level that the Secretary determines

4 to be equitable and appropriate.

5 ‘‘(4) EQUITABLE RELIEF.—The Secretary may

6 provide equitable relief to eligible producers on a farm

7 that unintentionally fail to meet the requirements of

8 paragraph (1) for 1 or more crops on a farm on a

9 case-by-case basis, as determined by the Secretary.

10 ‘‘(h) SUPPLEMENTAL BUY-UP NONINSURED ASSIST11 ANCE PROGRAM.—

12 ‘‘(1) IN GENERAL.—The Secretary shall establish

13 a program under which eligible producers on a farm

14 may purchase under the noninsured crop assistance

15 program additional yield and price coverage for a

16 crop, including a forage, hay, or honey crop, of—

17 ‘‘(A) 60 or 65 percent (as elected by the pro18 ducers on the farm) of the yield established for

19 the crop under the program; and

20 ‘‘(B) 100 percent of the price established for

21 the crop under the program.

22 ‘‘(2) FEES.—The Secretary shall establish and

23 collect fees from eligible producers on a farm partici24 pating in the program established under paragraph
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1 (1) to offset all of the costs of the program, as deter2 mined by the Secretary.

3 ‘‘(i) PAYMENT LIMITATIONS.—

4 ‘‘(1) IN GENERAL.—The total amount of disaster

5 assistance that an eligible producer on a farm may

6 receive under this section may not exceed $100,000.

7 ‘‘(2) AGI LIMITATION.—Section 1001D of the

8 Food Security Act of 1985 (7 U.S.C. 1308–3a or any

9 successor provision) shall apply with respect to assist10 ance provided under this section.

11 ‘‘(j) PERIOD OF EFFECTIVENESS.—This section shall

12 be effective only for losses that are incurred as the result

13 of a disaster, adverse weather, or other environmental con14 dition that occurs on or before September 30, 2012, as deter15 mined by the Secretary.

16 ‘‘(k) NO DUPLICATIVE PAYMENTS.—In implementing

17 any other program which makes disaster assistance pay18 ments (except for indemnities made under the Federal Crop

19 Insurance Act and section 196 of the Federal Agriculture

20 Improvement and Reform Act of 1996), the Secretary shall

21 prevent duplicative payments with respect to the same loss

22 for which a person receives a payment under subsections

23 (b), (c), (d), or (e).
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1 ‘‘SEC. 902. AGRICULTURE DISASTER RELIEF TRUST FUND.

2 ‘‘(a) CREATION OF TRUST FUND.—There is established

3 in the Treasury of the United States a trust fund to be

4 known as the ‘Agriculture Disaster Relief Trust Fund’, con5 sisting of such amounts as may be appropriated or credited

6 to such Trust Fund as provided in this section.

7 ‘‘(b) TRANSFER TO TRUST FUND.—

8 ‘‘(1) IN GENERAL.—There are appropriated to

9 the Agriculture Disaster Relief Trust Fund amounts

10 equivalent to 3.34 percent of the amounts received in

11 the general fund of the Treasury of the United States

12 during fiscal years 2008 through 2012 attributable to

13 the duties collected on articles entered, or withdrawn

14 from warehouse, for consumption under the Har15 monized Tariff Schedule of the United States.

16 ‘‘(2) AMOUNTS BASED ON ESTIMATES.—The

17 amounts appropriated under this section shall be

18 transferred at least monthly from the general fund of

19 the Treasury of the United States to the Agriculture

20 Disaster Relief Trust Fund on the basis of estimates

21 made by the Secretary of the Treasury. Proper adjust22 ments shall be made in the amounts subsequently

23 transferred to the extent prior estimates were in excess

24 of or less than the amounts required to be transferred.

25 ‘‘(c) ADMINISTRATION.—
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1 ‘‘(1) REPORTS.—The Secretary of the Treasury

2 shall be the trustee of the Agriculture Disaster Relief

3 Trust Fund and shall submit an annual report to

4 Congress each year on the financial condition and the

5 results of the operations of such Trust Fund during

6 the preceding fiscal year and on its expected condi7 tion and operations during the 5 fiscal years suc8 ceeding such fiscal year. Such report shall be printed

9 as a House document of the session of Congress to

10 which the report is made.

11 ‘‘(2) INVESTMENT.—

12 ‘‘(A) IN GENERAL.—The Secretary of the

13 Treasury shall invest such portion of the Agri14 culture Disaster Relief Trust Fund as is not in

15 his judgment required to meet current with16 drawals. Such investments may be made only in

17 interest bearing obligations of the United States.

18 For such purpose, such obligations may be

19 acquired—

20 ‘‘(i) on original issue at the issue

21 price, or

22 ‘‘(ii) by purchase of outstanding obli23 gations at the market price.

24 ‘‘(B) SALEOF OBLIGATIONS.—Any obliga25 tion acquired by the Agriculture Disaster Relief
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1 Trust Fund may be sold by the Secretary of the

2 Treasury at the market price.

3 ‘‘(C) INTEREST ON CERTAIN PROCEEDS.—

4 The interest on, and the proceeds from the sale

5 or redemption of, any obligations held in the Ag6 riculture Disaster Relief Trust Fund shall be

7 credited to and form a part of such Trust Fund.

8 ‘‘(d) EXPENDITURES FROM TRUST FUND.—Amounts

9 in the Agriculture Disaster Relief Trust Fund shall be

10 available for the purposes of making expenditures to meet

11 those obligations of the United States incurred under section

12 901.

13 ‘‘(e) AUTHORITY TO BORROW.—

14 ‘‘(1) IN GENERAL.—There are authorized to be

15 appropriated, and are appropriated, to the Agri16 culture Disaster Relief Trust Fund, as repayable ad17 vances, such sums as may be necessary to carry out

18 the purposes of such Trust Fund.

19 ‘‘(2) REPAYMENT OF ADVANCES.—

20 ‘‘(A) IN GENERAL.—Advances made to the

21 Agriculture Disaster Relief Trust Fund shall be

22 repaid, and interest on such advances shall be

23 paid, to the general fund of the Treasury when

24 the Secretary determines that moneys are avail25 able for such purposes in such Trust Fund.
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1 ‘‘(B) RATE OF INTEREST.—Interest on ad2 vances made pursuant to this subsection shall

3 be—

4 ‘‘(i) at a rate determined by the Sec5 retary of the Treasury (as of the close of the

6 calendar month preceding the month in

7 which the advance is made) to be equal to

8 the current average market yield on out9 standing marketable obligations of the

10 United States with remaining periods to

11 maturity comparable to the anticipated pe12 riod during which the advance will be out13 standing, and

14 ‘‘(ii) compounded annually.’’.

15 (b) TECHNICAL PROVISIONS RELATING TO THE PLANT

16 PROTECTION ACT.—

17 (1) Section 442(c) of the Plant Protection Act (7

18 U.S.C. 7772(c)) is amended by striking ‘‘of longer

19 than 60 days’’.

20 (2) Congress disapproves the rule submitted by

21 the Secretary of Agriculture relating to cost-sharing

22 for animal and plant health emergency programs (68

23 Fed. Reg. 40541 (2003)), and such rule shall have no

24 force or effect.
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1 Subtitle B—Conservation

2 Provisions

3 PART I—LAND AND SPECIES PRESERVATION

4 PROVISIONS

5 SEC. 12201. CONSERVATION RESERVE TAX CREDIT.

6 (a) ALLOWANCEOF CREDIT.—

7 (1) IN GENERAL.—Subpart B of part IV of sub8 chapter A of chapter 1 is amended by adding at the

9 end the following new section:

10 ‘‘SEC. 30D. CONSERVATION RESERVE CREDIT.

11 ‘‘(a) IN GENERAL.—There shall be allowed as a credit

12 against the tax imposed by this chapter for the taxable year

13 an amount equal to the rental value of any land enrolled

14 in the conservation reserve program.

15 ‘‘(b) LIMITATIONS.—

16 ‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.—

17 The credit allowed under this section for any taxable

18 year shall not exceed the excess of—

19 ‘‘(A) the regular tax liability for the taxable

20 year reduced by the sum of the credits allowable

21 under subpart A and sections 27, 30, 30B, and

22 30C, over

23 ‘‘(B) the tentative minimum tax for the tax24 able year.
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1 ‘‘(2) LIMITATION BASED ON ALLOCATED PORTION

2 OF NATIONAL LIMITATION.—The credit allowed under

3 subsection (a) for any taxpayer for any taxable year

4 shall not exceed the excess of—

5 ‘‘(A) the amount of the national credit limi6 tation allocated to such taxpayer under sub7 section (c) for the fiscal year in which such tax8 able year ends and all prior fiscal years, over

9 ‘‘(B) the credit allowed under subsection (a)

10 for all prior taxable years.

11 ‘‘(c) CONSERVATION RESERVE CREDIT LIMITATION.—

12 ‘‘(1) IN GENERAL.—There is a conservation re13 serve credit limitation for each fiscal year of the

14 United States. Such limitation is—

15 ‘‘(A) $750,000,000 for each of fiscal years

16 2009 through 2012, and

17 ‘‘(B) zero thereafter.

18 ‘‘(2) ALLOCATION.—

19 ‘‘(A) IN GENERAL.—The Secretary, in con20 sultation with the Secretary of Agriculture, shall

21 allocate the conservation reserve credit limitation

22 to taxpayers—

23 ‘‘(i) who are owners or operators of

24 land enrolled in the conservation reserve

25 program, and
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1 ‘‘(ii) who have made an election under

2 section 1234(c)(6) of the Food Security Act

3 of 1985 to receive an allocation under this

4 paragraph in lieu of a rental payment for

5 such year under 1233(2) of such Act.

6 ‘‘(B) ALLOCATION LIMITATION.—The Sec7 retary may not allocate more than $50,000 to

8 any 1 taxpayer for any fiscal year.

9 ‘‘(3) CARRYFORWARD OF LIMITATION.—

10 ‘‘(A) IN GENERAL.—If for any fiscal year

11 the limitation under paragraph (1) (after the

12 application of this paragraph) exceeds the

13 amount allocated to all eligible taxpayers for

14 such fiscal year, the limitation amount for the

15 following fiscal year shall be increased by the

16 amount of such excess.

17 ‘‘(B) SPECIAL RULE FOR 2012.—Notwith18 standing subparagraph (A), no amount of the

19 conservation reserve credit limitation may be

20 carried to any fiscal year following fiscal year

21 2012.

22 ‘‘(d) CARRYFORWARD.—If the amount of the credit al23 lowable under subsection (a) for any taxpayer for any tax24 able year (determined without regard to subsection (b)(1))

25 exceeds the limitation under subsection (b)(1), such excess
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1 may be carried forward to the succeeding taxable year and

2 added to the credit allowable under subsection (a) for such

3 succeeding taxable year.

4 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.—For

5 purposes of this section—

6 ‘‘(1) CONSERVATION RESERVE PROGRAM.—For

7 purposes of this subsection, the term ‘conservation re8 serve program’ means the conservation reserve pro9 gram established under subchapter B of chapter 1 of

10 subtitle D of title XII of the Food Security Act of

11 1985.

12 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc13 tion or other credit shall be allowed under this chap14 ter for any amount with respect to which a credit is

15 allowed under subsection (a).

16 ‘‘(3) RECAPTURE OF ALLOCATION.—If a tax17 payer terminates a contract under the conservation

18 reserve program before the end of the fiscal year with

19 respect to which an allocation under subsection (c)(2)

20 is made, the Secretary shall recapture the amount of

21 the credit allowed under this section which bears the

22 same ratio to the amount so allocated as the number

23 of days in the fiscal year during which the contract

24 was not in effect bears to 365.
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1 ‘‘(4) TREATMENT OF CREDIT UNDER INCOME TAX

2 AND SELF-EMPLOYMENT INCOME TAX.—For purposes

3 of this chapter and chapter 2, the amount of any

4 credit received under this section shall not be treated

5 as income.’’.

6 (2) CLERICAL AMENDMENT.—The table of sec7 tions for subpart B of part IV of subchapter A of

8 chapter 1 is amended by inserting after the item re9 lating to section 30C the following new item:

‘‘Sec. 30D. Conservation reserve credit.’’.

10 (3) EFFECTIVE DATE.—The amendments made

11 by this subsection shall apply to taxable years ending

12 after the date of the enactment of this Act.

13 (b) CONFORMING AMENDMENTS TO THE FOOD SECU14 RITY ACT OF 1985.—

15 (1) ELECTION TO RECEIVE TAX CREDITS IN LIEU

16 OF PAYMENTS.—Section 1234(c) of the Food Security

17 Act of 1985 (16 U.S.C. 3834(c)), as amended by this

18 Act, is amended by adding at the end the following

19 new paragraph:

20 ‘‘(6) ELECTION TO RECEIVE TAX CREDITS IN

21 LIEU OF PAYMENTS.—

22 ‘‘(A) IN GENERAL.—In lieu of an annual

23 rental payment for any year, an owner or oper24 ator with land enrolled under the program estab25 lished under this subchapter may elect to receive
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1 for such year an allocation of tax credits under

2 section 30D(c)(2) of the Internal Revenue Code

3 of 1986.

4 ‘‘(B) ELECTION.—Any election under this

5 paragraph shall be made in such form and at

6 such time as the Secretary shall prescribe and

7 shall apply to all contracts of the owner or oper8 ator under this subchapter.

9 ‘‘(C) LIMITATION.—Any election under this

10 paragraph shall not apply with respect to pay11 ments under the emergency forestry conservation

12 reserve program under section 1231(k).’’.

13 (2) PAYMENT LIMITATION.—Paragraph (1) of

14 section 1234(e) of such Act (16 U.S.C. 3834(e)(1)) is

15 amended by inserting ‘‘and allocations of tax credits

16 under section 30D(c)(2) of the Internal Revenue Code

17 of 1986’’ after ‘‘in-kind commodities’’.

18 SEC. 12202. EXCLUSION OF CONSERVATION RESERVE PRO19 GRAM PAYMENTS FROM SECA TAX FOR CER20 TAIN INDIVIDUALS.

21 (a) INTERNAL REVENUE CODE.—Section 1402(a)(1)

22 (defining net earnings from self-employment) is amended

23 by inserting ‘‘, and including payments under section

24 1233(2) of the Food Security Act of 1985 (16 U.S.C.
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1 3833(2)) to individuals receiving benefits under section 202

2 or 223 of the Social Security Act’’ after ‘‘crop shares’’.

3 (b) SOCIAL SECURITY ACT.—Section 211(a)(1) of the

4 Social Security Act is amended by inserting ‘‘, and includ5 ing payments under section 1233(2) of the Food Security

6 Act of 1985 (16 U.S.C. 3833(2)) to individuals receiving

7 benefits under section 202 or 223’’ after ‘‘crop shares’’.

8 (c) EFFECTIVE DATE.—The amendments made by this

9 section shall apply to payments made before, on, or after

10 the date of the enactment of this Act.

11 SEC. 12203. PERMANENT EXTENSION OF SPECIAL RULE EN12 COURAGING CONTRIBUTIONS OF CAPITAL

13 GAIN REAL PROPERTY FOR CONSERVATION

14 PURPOSES.

15 (a) IN GENERAL.—

16 (1) INDIVIDUALS.—Subparagraph (E) of section

17 170(b)(1) (relating to contributions of qualified con18 servation contributions) is amended by striking clause

19 (vi).

20 (2) CORPORATIONS.—Subparagraph (B) of sec21 tion 170(b)(2) (relating to qualified conservation con22 tributions by certain corporate farmers and ranchers)

23 is amended by striking clause (iii).
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1 (b) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to contributions made in taxable years

3 beginning after December 31, 2007.

4 SEC. 12204. TAX CREDIT FOR RECOVERY AND RESTORATION

5 OF ENDANGERED SPECIES.

6 (a) IN GENERAL.—Subpart B of part IV of subchapter

7 A of chapter 1, as amended by this Act, is amended by add8 ing at the end the following new section:

9 ‘‘SEC. 30E. ENDANGERED SPECIES RECOVERY AND RES10 TORATION CREDIT.

11 ‘‘(a) IN GENERAL.—In the case of an eligible taxpayer,

12 there shall be allowed as a credit against the tax imposed

13 by this chapter for the taxable year an amount equal to

14 the sum of—

15 ‘‘(1) the habitat protection easement credit, plus

16 ‘‘(2) the habitat restoration credit.

17 ‘‘(b) LIMITATION.—

18 ‘‘(1) IN GENERAL.—The credit allowed under

19 subsection (a) for any taxpayer for any taxable year

20 shall not exceed the endangered species recovery credit

21 limitation allocated to the eligible taxpayer under

22 subsection (f) for the calendar year in which the tax23 payer’s taxable year ends.

24 ‘‘(2) CARRYFORWARDS.—
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1 ‘‘(A) IN GENERAL.—If the amount of the

2 credit allowable under subsection (a) for any

3 taxpayer for any taxable year (determined with4 out regard to paragraph (1)) exceeds the endan5 gered species recovery credit limitation allocated

6 under subsection (f) to such taxpayer for the cal7 endar year in which the taxpayer’s taxable year

8 ends, such excess may be carried forward to the

9 next taxable year for which an allocation is

10 made to such taxpayer under subsection (f). Any

11 amount carried to another taxable year under

12 this subparagraph shall be treated as added to

13 the credit allowable under subsection (a)(1) or

14 (a)(2), whichever is appropriate, for such taxable

15 year.

16 ‘‘(B) CARRYFORWARD OF ALLOCATION

17 AMOUNT.—If the amount of the endangered spe18 cies recovery credit limitation allocated to a tax19 payer for any calendar year under subsection (f)

20 exceeds the amount of the credit allowed to the

21 taxpayer under subsection (a) for the taxable

22 year ending in such calendar year, such excess

23 may be carried forward to the next taxable year

24 of the taxpayer. Any amount carried to another

25 taxable year under this subparagraph shall be
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1 treated as allocated to the taxpayer for use in

2 such taxable year under subsection (f).

3 ‘‘(c) ELIGIBLE TAXPAYER; QUALIFIED AGREE4 MENTS.—For purposes of this section—

5 ‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’

6 means—

7 ‘‘(A) a taxpayer who—

8 ‘‘(i) owns real property which contains

9 the habitat of a qualified species, and

10 ‘‘(ii) enters into a qualified perpetual

11 habitat protection agreement, a qualified

12 30-year habitat protection agreement, or a

13 qualified habitat protection agreement with

14 respect to such real property, and

15 ‘‘(B) any other taxpayer who—

16 ‘‘(i) is a party to a qualified perpetual

17 habitat protection agreement, a qualified

18 30-year habitat protection agreement, or a

19 qualified habitat protection agreement, and

20 ‘‘(ii) as part of any such agreement,

21 agrees to assume responsibility for costs

22 paid or incurred as a result of imple23 menting such agreement.
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1 ‘‘(2) QUALIFIED PERPETUAL HABITAT PROTEC2 TION AGREEMENT.—The term ‘qualified perpetual

3 habitat protection agreement’ means an agreement—

4 ‘‘(A) under which a taxpayer described in

5 paragraph (1)(A) grants to the appropriate Sec6 retary, the Secretary of Agriculture, the Sec7 retary of Defense, or a State an easement in per8 petuity for the protection of the habitat of a

9 qualified species, and

10 ‘‘(B) which meets the requirements of para11 graph (5).

12 ‘‘(3) QUALIFIED 30-YEAR HABITAT PROTECTION

13 AGREEMENT.—The term ‘qualified 30-year habitat

14 protection agreement’ means an agreement not de15 scribed in paragraph (2)—

16 ‘‘(A) under which a taxpayer described in

17 paragraph (1)(A) grants to the appropriate Sec18 retary, the Secretary of Agriculture, the Sec19 retary of Defense, or a State an easement for a

20 period of 30 years or greater for the protection

21 of the habitat of a qualified species, and

22 ‘‘(B) which meets the requirements of para23 graph (5).
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1 ‘‘(4) QUALIFIED HABITAT PROTECTION AGREE2 MENT.—The term ‘qualified habitat protection agree3 ment’ means an agreement—

4 ‘‘(A) under which a taxpayer described in

5 paragraph (1)(A) enters into an agreement not

6 described in paragraph (2) or (3) with the ap7 propriate Secretary, the Secretary of Agriculture,

8 the Secretary of Defense, or a State to protect the

9 habitat of a qualified species for a specified pe10 riod of time, and

11 ‘‘(B) which meets the requirements of para12 graph (5).

13 ‘‘(5) REQUIREMENTS.—An agreement meets the

14 requirements of this paragraph if the agreement—

15 ‘‘(A) is consistent with any recovery plan

16 which is applicable and which has been approved

17 for a qualified species under section 4 of the En18 dangered Species Act of 1973,

19 ‘‘(B) includes a habitat management plan

20 agreed to by the appropriate Secretary and the

21 eligible taxpayer, and

22 ‘‘(C) requires that technical assistance with

23 respect to the duties under the habitat manage24 ment plan be provided to the taxpayer by the ap-
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1 propriate Secretary or an entity approved by the

2 appropriate Secretary.

3 ‘‘(d) HABITAT PROTECTION EASEMENT CREDIT.—

4 ‘‘(1) IN GENERAL.—For purposes of subsection

5 (a)(1), the habitat protection easement credit for any

6 taxable year is an amount equal to—

7 ‘‘(A) in the case of a taxpayer described in

8 subsection (c)(1)(A) who has entered into a

9 qualified perpetual habitat protection agreement

10 during such taxable year, 100 percent of the ex11 cess (if any) of—

12 ‘‘(i) the fair market value of the real

13 property with respect to which the qualified

14 perpetual habitat protection agreement is

15 made, determined on the day before such

16 agreement is entered into, over

17 ‘‘(ii) the fair market value of such

18 property, determined on the day after such

19 agreement is entered into,

20 ‘‘(B) in the case of a taxpayer described in

21 subsection (c)(1)(A) who has entered into a

22 qualified 30-year habitat protection agreement

23 during such taxable year, 75 percent of such ex24 cess, and

25 ‘‘(C) in the case of any other taxpayer, zero.
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1 ‘‘(2) REDUCTION FOR AMOUNT RECEIVED FOR

2 EASEMENT.—The amount determined under para3 graph (1) shall be reduced by any amount received by

4 the taxpayer in connection with the easement.

5 ‘‘(3) LIMITATION BASED ON AMOUNT OF TAX.—

6 The credit allowed under subsection (a)(1) for any

7 taxable year shall not exceed the sum of—

8 ‘‘(A) the taxpayer’s regular tax liability for

9 the taxable year reduced by the sum of the cred10 its allowable under subpart A and sections 27,

11 30, 30B, 30C, and 30D, and

12 ‘‘(B) the tax imposed by section 55(a) for

13 the taxable year.

14 ‘‘(4) CARRYFORWARD OF UNUSED CREDIT.—If

15 the credit allowable under subsection (a)(1) for any

16 taxable year exceeds the limitation imposed by para17 graph (3) for such taxable year, such excess shall be

18 carried to the succeeding taxable year and added to

19 the credit allowable under subsection (a)(1) for such

20 succeeding taxable year.

21 ‘‘(5) QUALIFIED APPRAISALS REQUIRED.—No

22 amount shall be taken into account under this sub23 section unless the eligible taxpayer includes with the

24 taxpayer’s return for the taxable year a qualified ap-
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1 praisal (within the meaning of section 170(f)(11)(E))

2 of the real property.

3 ‘‘(e) HABITAT RESTORATION CREDIT.—

4 ‘‘(1) IN GENERAL.—For purposes of subsection

5 (a)(2), the habitat restoration credit for any taxable

6 year shall be an amount equal to—

7 ‘‘(A) in the case of a qualified perpetual

8 habitat protection agreement, 100 percent of the

9 costs paid or incurred by an eligible taxpayer

10 during such taxable year pursuant to the habitat

11 management plan under such agreement,

12 ‘‘(B) in the case of a qualified 30-year habi13 tat protection agreement, 75 percent of the costs

14 paid or incurred by an eligible taxpayer during

15 such taxable year pursuant to the habitat man16 agement plan under such agreement, and

17 ‘‘(C) in the case of a qualified habitat pro18 tection agreement, 50 percent of the costs paid or

19 incurred by an eligible taxpayer during such

20 taxable year pursuant to the habitat manage21 ment plan under such agreement.

22 ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.—

23 The credit allowed under subsection (a)(2) for any

24 taxable year shall not exceed the excess (if any) of—
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1 ‘‘(A) the regular tax liability for the taxable

2 year reduced by the sum of the credits allowable

3 under subpart A, sections 27, 30, 30B, 30C, 30D,

4 and subsection (a)(1), over

5 ‘‘(B) the tentative minimum tax for the tax6 able year.

7 ‘‘(3) CARRYFORWARD OF UNUSED CREDIT.—If

8 the credit allowable under subsection (a)(2) for any

9 taxable year exceeds the limitation imposed by para10 graph (2) for such taxable year, such excess shall be

11 carried to the succeeding taxable year and added to

12 the credit allowable under subsection (a)(2) for such

13 succeeding taxable year.

14 ‘‘(4) SPECIAL RULES.—

15 ‘‘(A) CERTAIN COSTS NOT INCLUDED.—No

16 amount shall be taken into account with respect

17 to any cost which is paid or incurred by a tax18 payer to comply with any requirement of a Fed19 eral, State, or local government (other than costs

20 required under an agreement described in sub21 section (c)).

22 ‘‘(B) SUBSIDIZED FINANCING.—For pur23 poses of paragraph (1), the amount of costs paid

24 or incurred by an eligible taxpayer pursuant to

25 any habitat management plan described in sub-
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1 section (c)(5)(B) shall be reduced by the amount

2 of any financing provided under any Federal or

3 State program a principal purpose of which is

4 to subsidize financing for the conservation of the

5 habitat of a qualified species.

6 ‘‘(f) ENDANGERED SPECIES RECOVERY CREDIT LIMI7 TATION.—

8 ‘‘(1) IN GENERAL.—There is an endangered spe9 cies recovery credit limitation for each calendar year.

10 Such limitation is—

11 ‘‘(A) for 2008, 2009, 2010, 2011, and

12 2012—

13 ‘‘(i) with respect to allocations de14 scribed in paragraph (2)(A)—

15 ‘‘(I) $5,000,000 with respect to

16 qualified perpetual habitat protection

17 agreements,

18 ‘‘(II) $2,000,000 with respect to

19 qualified 30-year habitat protection

20 agreements, and

21 ‘‘(III) $1,000,000 with respect to

22 qualified habitat protection agree23 ments, and

24 ‘‘(ii) with respect to allocations de25 scribed in paragraph (2)(B)—
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1 ‘‘(I) $290,000,000 with respect to

2 qualified perpetual habitat protection

3 agreements,

4 ‘‘(II) $55,000,000 with respect to

5 qualified 30-year habitat protection

6 agreements, and

7 ‘‘(III) $35,000,000 with respect to

8 qualified habitat protection agree9 ments, and

10 ‘‘(B) except as provided in paragraph (3),

11 zero thereafter.

12 ‘‘(2) ALLOCATION OF LIMITATION.—

13 ‘‘(A) ALLOCATIONS IN COORDINATION WITH

14 THE SECRETARY OF AGRICULTURE.—The limita15 tions described in paragraph (1)(A)(i) shall be

16 allocated to eligible taxpayers by the Secretary

17 in consultation with the Secretary of Agri18 culture.

19 ‘‘(B) OTHER ALLOCATIONS.—

20 ‘‘(i) IN GENERAL.—The limitations de21 scribed in paragraph (1)(A)(ii) shall be al22 located to eligible taxpayers in consultation

23 with the Secretary of the Interior and the

24 Secretary of Commerce.
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1 ‘‘(ii) ESTABLISHMENT OF ALLOCATION

2 PROGRAM.—Not later than 180 days after

3 the date of the enactment of this Act, the

4 Secretary, in consultation with the Sec5 retary of the Interior and the Secretary of

6 Commerce, shall, by regulation, establish a

7 program to process applications from eligi8 ble taxpayers and to determine how to best

9 allocate the credit limitations under clause

10 (i) taking into account the considerations

11 described in clause (iii).

12 ‘‘(iii) CONSIDERATIONS.—In accepting

13 applications to make allocations to eligible

14 taxpayers under this section, priority shall

15 be given to taxpayers with agreements—

16 ‘‘(I) relating to habitats that will

17 significantly increase the likelihood of

18 recovering and delisting a species as

19 an endangered species or a threatened

20 species (as defined under section 2 of

21 the Endangered Species Act of 1973),

22 ‘‘(II) that are cost-effective and

23 maximize the benefits to a qualified

24 species per dollar expended,
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1 ‘‘(III) relating to habitats of spe2 cies which have a federally approved

3 recovery plan pursuant to section 4 of

4 the Endangered Species Act of 1973,

5 ‘‘(IV) relating to habitats with the

6 potential to contribute significantly to

7 the improvement of the status of a

8 qualified species,

9 ‘‘(V) relating to habitats with the

10 potential to contribute significantly to

11 the eradication or control of invasive

12 species that are imperiling a qualified

13 species,

14 ‘‘(VI) with habitat management

15 plans that will manage multiple quali16 fied species,

17 ‘‘(VII) with habitat management

18 plans that will create adjacent or prox19 imate habitat for the recovery of a

20 qualified species,

21 ‘‘(VIII) relating to habitats for

22 qualified species with an urgent need

23 for protection,

24 ‘‘(IX) with habitat management

25 plans that assist in preventing the list-
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1 ing of a species as endangered or

2 threatened under the Endangered Spe3 cies Act of 1973 or a similar State

4 law,

5 ‘‘(X) with habitat management

6 plans that may resolve conflicts be7 tween the protection of qualified species

8 and otherwise lawful human activities,

9 and

10 ‘‘(XI) with habitat management

11 plans that may resolve conflicts be12 tween the protection of a qualified spe13 cies and military training or other

14 military operations.

15 ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If

16 for any calendar year any of the limitations under

17 paragraph (1) (after the application of this para18 graph) exceeds the amount allocated to eligible tax19 payers for such calendar year, such limitation

20 amount for the following calendar year shall be in21 creased by the amount of such excess.

22 ‘‘(g) OTHER DEFINITIONS AND SPECIAL RULES.—

23 ‘‘(1) APPROPRIATE SECRETARY.—The term ‘ap24 propriate Secretary’ has the meaning given to the
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1 term ‘Secretary’ under section 3(15) of the Endan2 gered Species Act of 1973.

3 ‘‘(2) HABITAT MANAGEMENT PLAN.—The term

4 ‘habitat management plan’ means, with respect to

5 any habitat, a plan which—

6 ‘‘(A) identifies one or more qualified species

7 to which the plan applies,

8 ‘‘(B) is designed to—

9 ‘‘(i) restore or enhance the habitat of

10 the qualified species, or

11 ‘‘(ii) reduce threats to the qualified

12 species through the management of the habi13 tat,

14 ‘‘(C) describes the current condition of the

15 habitat to be restored or enhanced,

16 ‘‘(D) describes the threats to the qualified

17 species that are intended to be reduced through

18 the plan,

19 ‘‘(E) describes the management practices to

20 be undertaken by the taxpayer,

21 ‘‘(F) provides a schedule of deadlines for

22 undertaking such management practices and the

23 expected responses of the habitat and the species,
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1 ‘‘(G) requires monitoring of the manage2 ment practices and the status of the qualified

3 species and its habitat, and

4 ‘‘(H) describes the technical assistance to be

5 provided to the taxpayer and identifies the entity

6 that will provide such assistance.

7 ‘‘(3) QUALIFIED SPECIES.—The term ‘qualified

8 species’ means—

9 ‘‘(A) any species listed as an endangered

10 species or threatened species under the Endan11 gered Species Act of 1973, or

12 ‘‘(B) any species for which a finding has

13 been made under section 4(b)(3) of the Endan14 gered Species Act of 1973 that listing under such

15 Act may be warranted.

16 ‘‘(4) TAKING.—The term ‘taking’ has the mean17 ing given to such term under the Endangered Species

18 Act of 1973.

19 ‘‘(5) REDUCTION IN BASIS.—For purposes of this

20 subtitle—

21 ‘‘(A) HABITAT PROTECTION EASEMENT

22 CREDIT.—The basis of any property for which a

23 credit is allowed under subsection (a)(1) shall be

24 reduced by the amount of basis which is allo25 cated, under regulations prescribed by the Sec-
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1 retary, to the easement granted as part of a

2 qualified perpetual habitat protection agreement

3 or a qualified 30-year habitat protection agree4 ment.

5 ‘‘(B) HABITAT RESTORATION CREDIT.—If a

6 credit is allowed under subsection (a)(2) for any

7 expenditure with respect to any property, the in8 crease in the basis of such property which would

9 (but for this subparagraph) result from such ex10 penditure shall be reduced by the amount of the

11 credit so allowed.

12 ‘‘(6) DENIAL OF DOUBLE BENEFIT.—No deduc13 tion or other credit shall be allowed under this chap14 ter for any amount with respect to which a credit is

15 allowed under subsection (a).

16 ‘‘(7) CERTIFICATION.—No credit shall be allowed

17 under subsection (a) unless the appropriate Secretary

18 certifies that any agreement described in subsection

19 (c) will contribute to the recovery of a qualified spe20 cies.

21 ‘‘(8) REQUEST FOR AUTHORIZATION OF INCI22 DENTAL TAKINGS.—The Secretary shall request the

23 appropriate Secretary to consider whether to author24 ize under the Endangered Species Act of 1973 takings

25 by an eligible taxpayer of a qualified species to which
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1 an agreement described in subsection (c) relates if the

2 takings are incidental to—

3 ‘‘(A) the restoration, enhancement, or man4 agement of the habitat pursuant to the habitat

5 management plan under the agreement, or

6 ‘‘(B) the use of the property to which the

7 agreement pertains at any time after the expira8 tion of the easement or the specified period de9 scribed in subsection (c)(4)(A), but only if such

10 use will leave the qualified species at least as

11 well off on the property as it was before the

12 agreement was made.

13 ‘‘(9) RECAPTURE.—The Secretary shall, by regu14 lations, provide for recapturing the benefit under any

15 credit allowable under subsection (a) if the Secretary

16 determines that—

17 ‘‘(A) the taxpayer has failed to carry out

18 the duties of the taxpayer under the terms of a

19 qualified perpetual habitat protection agreement,

20 a qualified 30-year habitat protection agreement,

21 or a qualified habitat protection agreement, and

22 ‘‘(B) there are no other available means to

23 remediate such failure.’’.

24 (b) GAO STUDY.—
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1 (1) IN GENERAL.—The Comptroller General of

2 the United States shall undertake a study on the effec3 tiveness of the credit allowed under section 30E of the

4 Internal Revenue Code of 1986 (as added by this Act).

5 (2) ISSUES TO BE STUDIED.—The study under

6 paragraph (1) shall—

7 (A) evaluate—

8 (i) the contributions that habitat man9 agement plans established under such credit

10 have made in restoring or enhancing species

11 habitat and reducing threats to species, and

12 (ii) the implementation of the credit

13 allocation program established in section

14 30E(f)(2) of such Code (as so added), and

15 (B) include recommendations for improving

16 the effectiveness of such credit.

17 (3) REPORTS.—

18 (A) INTERIM REPORT.—Not later than 3

19 years after the date of the enactment of this Act,

20 the Comptroller General of the United States

21 shall submit to Congress an interim report on

22 the study conducted under paragraph (1).

23 (B) FINAL REPORT.—Not later than 5 years

24 after the date of the enactment of this Act, the

25 Comptroller General of the United States shall
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1 submit to Congress a final report on the study

2 conducted under paragraph (1).

3 (c) CONFORMING AMENDMENTS.—

4 (1) Section 1016(a) is amended by striking

5 ‘‘and’’ at the end of paragraph (36), by striking the

6 period at the end of paragraph (37) and inserting ‘‘,

7 and’’, and by inserting after paragraph (37) the fol8 lowing new paragraph:

9 ‘‘(38) to the extent provided in section

10 30E(g)(5).’’.

11 (2) The table of sections for subpart B of part IV

12 of subchapter A of chapter 1, as amended by this Act,

13 is amended by inserting after the item relating to sec14 tion 30D the following new item:

‘‘Sec. 30E. Endangered species recovery and restoration credit.’’.

15 (d) EFFECTIVE DATE.—The amendments made by this

16 section shall apply to taxable years beginning after Decem17 ber 31, 2007.

18 SEC. 12205. DEDUCTION FOR ENDANGERED SPECIES RE19 COVERY EXPENDITURES.

20 (a) DEDUCTION FOR ENDANGERED SPECIES RECOV21 ERY EXPENDITURES.—

22 (1) IN GENERAL.—Paragraph (1) of section

23 175(c) (relating to definitions) is amended by insert24 ing after the first sentence the following new sentence:

25 ‘‘Such term shall include expenditures paid or in-
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1 curred for the purpose of achieving site-specific man2 agement actions recommended in recovery plans ap3 proved pursuant to the Endangered Species Act of

4 1973.’’.

5 (2) CONFORMING AMENDMENTS.—

6 (A) Section 175 is amended by inserting ‘‘,

7 or for endangered species recovery’’ after ‘‘pre8 vention of erosion of land used in farming’’ each

9 place it appears in subsections (a) and (c).

10 (B) The heading of section 175 is amended

11 by inserting ‘‘; ENDANGERED SPECIES RE12 COVERY EXPENDITURES’’ before the period.

13 (C) The item relating to section 175 in the

14 table of sections for part VI of subchapter B of

15 chapter 1 is amended by inserting ‘‘; endangered

16 species recovery expenditures’’ before the period.

17 (b) LIMITATIONS.—Paragraph (3) of section 175(c)

18 (relating to additional limitations) is amended—

19 (1) in the heading, by inserting ‘‘OR ENDAN20 GERED SPECIES RECOVERY PLAN’’ after ‘‘CONSERVA21 TION PLAN’’, and

22 (2) in subparagraph (A)(i), by inserting ‘‘or the

23 recovery plan approved pursuant to the Endangered

24 Species Act of 1973’’ after ‘‘Department of Agri25 culture’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to expenditures paid or incurred after

3 the date of the enactment of this Act.

4 SEC. 12206. EXCLUSION FOR CERTAIN PAYMENTS AND PRO5 GRAMS RELATING TO FISH AND WILDLIFE.

6 (a) IN GENERAL.—Subsection (a) of section 126 (relat7 ing to certain cost-sharing payments) is amended by redes8 ignating paragraph (10) as paragraph (13) and by insert9 ing after paragraph (9) the following new paragraphs:

10 ‘‘(10) The Partners for Fish and Wildlife Pro11 gram authorized by the Partners for Fish and Wild12 life Act.

13 ‘‘(11) The Landowner Incentive Program, the

14 State Wildlife Grants Program, and the Private

15 Stewardship Grants Program authorized by the Fish

16 and Wildlife Act of 1956.

17 ‘‘(12) The Forest Health Protection Program and

18 the program related to integrated pest management

19 authorized by the Cooperative Forestry Assistance Act

20 of 1978.’’.

21 (b) EFFECTIVE DATE.—The amendments made by this

22 section shall apply to payments received after the date of

23 the enactment of this Act.
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1 SEC. 12207. CREDIT FOR EASEMENTS GRANTED UNDER CER2 TAIN DEPARTMENT OF AGRICULTURE CON3 SERVATION PROGRAMS.

4 (a) IN GENERAL.—

5 (1) ALLOWANCEOF CREDIT.—Subpart B of part

6 IV of subchapter A of chapter 1, as amended by this

7 Act, is amended by adding at the end the following

8 new section:

9 ‘‘SEC. 30F. AGRICULTURE CONSERVATION EASEMENT CRED10 IT.

11 ‘‘(a) IN GENERAL.—There shall be allowed as a credit

12 against the tax imposed by this chapter for the taxable year

13 an amount equal to the sum of—

14 ‘‘(1) the wetlands reserve conservation credit,

15 plus

16 ‘‘(2) the grassland reserve conservation credit.

17 ‘‘(b) LIMITATIONS.—

18 ‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.—

19 The credit allowed under this section for any taxable

20 year shall not exceed the excess of—

21 ‘‘(A) the regular tax liability for the taxable

22 year reduced by the sum of the credits allowable

23 under subpart A and sections 27, 30, 30B, 30C,

24 30D, 30E(a)(1), and 30E(a)(2), over

25 ‘‘(B) the tentative minimum tax for the tax26 able year.
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1 ‘‘(2) LIMITATION BASED ON ALLOCATED PORTION

2 OF NATIONAL LIMITATION.—The credit allowed under

3 subsection (a) for any taxpayer for any taxable year

4 shall not exceed the excess of—

5 ‘‘(A) the amount of the national credit limi6 tation allocated to such taxpayer under sub7 section (e) for such taxable year and all prior

8 taxable years, over

9 ‘‘(B) the credit allowed under subsection (a)

10 for all prior taxable years.

11 ‘‘(c) WETLANDS RESERVE CONSERVATION CREDIT.—

12 ‘‘(1) IN GENERAL.—For purposes of subsection

13 (a)(1), in the case of a wetlands reserve eligible tax14 payer, the wetlands reserve conservation credit for

15 any taxable year is an amount equal to the applicable

16 percentage of the wetlands reserve easement value.

17 ‘‘(2) WETLANDS RESERVE ELIGIBLE TAX18 PAYER.—For purposes of this section, the term ‘wet19 lands reserve eligible taxpayer’ means any taxpayer

20 who—

21 ‘‘(A) has granted an easement to the Sec22 retary of Agriculture under the wetlands reserve

23 program, and

24 ‘‘(B) who has made an election under sec25 tion 1237A(f)(5) of the Food Security Act of
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1 1985 to receive an allocation under subsection

2 (e)(2) in lieu of a payment under section

3 1237A(f)(1) of such Act.

4 ‘‘(3) APPLICABLE PERCENTAGE.—For purposes

5 paragraph (1), the term ‘applicable percentage’ means

6 the percentage equal to—

7 ‘‘(A) 100 percent, minus

8 ‘‘(B) the highest percentage of tax which

9 would apply under section 1 or 11 with respect

10 to the taxpayer if the taxable income of the tax11 payer were increased by an amount equal to the

12 wetlands reserve easement value.

13 ‘‘(4) WETLANDS RESERVE EASEMENT VALUE.—

14 For purposes of this section, the term ‘wetlands re15 serve easement value’ means the lesser of—

16 ‘‘(A) the product of—

17 ‘‘(i) the wetlands reserve geographic

18 area rate for the area in which the real

19 property to which the easement pertains is

20 located, and

21 ‘‘(ii) the number of acres to which the

22 easement applies, or

23 ‘‘(B) the value of any payment to which the

24 taxpayer would be entitled with respect to such

25 easement under section 1237A(f)(1) of the Food
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1 Security Act of 1985 if the taxpayer had not

2 made an election under section 1237A(f)(5) of

3 such Act.

4 ‘‘(5) WETLANDS RESERVE GEOGRAPHIC AREA

5 RATE.—For purposes of paragraph (4)(A)(i), the wet6 lands reserve geographic area rate with respect to any

7 geographic area shall be the rate per acre, determined

8 by the Secretary in consultation with the Secretary of

9 Agriculture, appropriate for easements granted under

10 the wetlands reserve program in such area.

11 ‘‘(d) GRASSLAND RESERVE CONSERVATION CREDIT.—

12 ‘‘(1) IN GENERAL.—For purposes of subsection

13 (a)(2), in the case of any grassland reserve eligible

14 taxpayer, the grassland reserve conservation credit for

15 any taxable year is an amount equal to the applicable

16 percentage of the grassland reserve easement value.

17 ‘‘(2) GRASSLAND RESERVE ELIGIBLE TAX18 PAYER.—For purposes of this section, the term ‘grass19 land reserve eligible taxpayer’ means any taxpayer

20 who—

21 ‘‘(A) has granted an easement under the

22 grassland reserve program to an eligible ease23 ment holder, and

24 ‘‘(B) who has made an election under sec25 tion 1238P(b)(2)(C) of the Food Security Act of
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1 1985 to receive an allocation under subsection

2 (e)(2) in lieu of a payment under section

3 1238P(b)(2)(A)(i) of such Act.

4 ‘‘(3) APPLICABLE PERCENTAGE.—For purposes

5 paragraph (1), the term ‘applicable percentage’ means

6 the percentage equal to—

7 ‘‘(A) 100 percent, minus

8 ‘‘(B) the highest percentage of tax which

9 would apply under section 1 or 11 with respect

10 to the taxpayer if the taxable income of the tax11 payer were increased by an amount equal to the

12 grassland reserve easement value.

13 ‘‘(4) GRASSLAND RESERVE EASEMENT VALUE.—

14 For purposes of this section, the term ‘grassland re15 serve easement value’ means—

16 ‘‘(A) in the case of a permanent conserva17 tion easement (within the meaning of section

18 1238N(3) of the Food Security Act of 1985), the

19 lesser of—

20 ‘‘(i) the product of—

21 ‘‘(I) the grassland reserve pro22 gram geographic area rate for the area

23 in which the real property to which the

24 easement pertains is located, and
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1 ‘‘(II) the number of acres to which

2 the easement applies, or

3 ‘‘(ii) the value of any payment to

4 which the taxpayer would be entitled in re5 turn for such easement under section

6 1238P(b)(2)(A)(i)(I) of the Food Security

7 Act of 1985 if the taxpayer had not made

8 an election under section 1238P(b)(2)(C) of

9 such Act, and

10 ‘‘(B) in the case of a 30-year conservation

11 easement (within the meaning of section

12 1238O(b)(2) of such Act), the lesser of—

13 ‘‘(i) 30 percent of the lesser of the

14 amount determined under clause (i) or (ii)

15 of subparagraph (A), or

16 ‘‘(ii) the value of any payment to

17 which the taxpayer would be entitled in re18 turn for such easement under section

19 1238P(b)(1)(A)(i)(II) of such Act if the tax20 payer had not made an election under sec21 tion 1238P(b)(2)(C) of such Act.

22 ‘‘(5) GRASSLAND RESERVE GEOGRAPHIC AREA

23 RATE.—For purposes of paragraph (4)(A)(i)(I), the

24 grassland reserve geographic area rate with respect to

25 any geographic area shall be the rate, determined by
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1 the Secretary in consultation with the Secretary of

2 Agriculture, appropriate for easements granted under

3 the grassland reserve program in such area.

4 ‘‘(e) NATIONAL CONSERVATION CREDIT LIMITATION.—

5 ‘‘(1) IN GENERAL.—The aggregate credits al6 lowed under subsection (a) for all taxpayers shall not

7 exceed $1,000,000,000.

8 ‘‘(2) ALLOCATION.—The Secretary, in consulta9 tion with the Secretary of Agriculture, shall allocate

10 the credit limitation under paragraph (1) to tax11 payers who—

12 ‘‘(A) have granted an easement—

13 ‘‘(i) to the Secretary of Agriculture

14 under the wetlands reserve program, or

15 ‘‘(ii) to an eligible easement holder

16 under the grassland reserve program, and

17 ‘‘(B) make an election under such program

18 to receive an allocation under this paragraph in

19 lieu of a payment under such program.

20 ‘‘(3) LIMITATION ON ALLOCATION.—No amount

21 of the credit limitation may be allocated to any tax22 payer for any taxable year which ends after Sep23 tember 30, 2012.

24 ‘‘(f) CARRYFORWARD.—If the amount of the credit al25 lowable under subsection (a) for any taxpayer for any tax-
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1 able year (determined without regard to subsection (b)(1))

2 exceeds the limitation under subsection (b)(1), such excess

3 may be carried forward to the succeeding taxable year and

4 added to the credit allowable under subsection (a) for such

5 succeeding taxable year.

6 ‘‘(g) OTHER DEFINITIONS AND SPECIAL RULES.—For

7 purposes of this section—

8 ‘‘(1) WETLANDS RESERVE PROGRAM.—The term

9 ‘wetlands reserve program’ means the wetlands reserve

10 program established under subchapter C of chapter 1

11 of subtitle D of title XII of the Food Security Act of

12 1985.

13 ‘‘(2) GRASSLAND RESERVE PROGRAM.—The term

14 ‘grassland reserve program’ means the grassland re15 serve program established under subchapter C of

16 chapter 2 of subtitle D of title XII of the Food Secu17 rity Act of 1985.

18 ‘‘(3) ELIGIBLE EASEMENT HOLDER.—The term

19 ‘eligible easement holder’ means the Secretary of Agri20 culture or a State.

21 ‘‘(4) DENIAL OF DOUBLE BENEFIT.—No deduc22 tion or other credit shall be allowed under this chap23 ter for any amount with respect to which a credit is

24 allowed under subsection (a).
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1 ‘‘(5) REDUCTION IN BASIS.—For purposes of this

2 subtitle, the basis of any property for which a credit

3 is allowed under subsection (a) shall be reduced by the

4 amount of basis which is allocated, under regulations

5 prescribed by the Secretary, to the easement granted

6 under the wetlands reserve program or the grassland

7 reserve program.

8 ‘‘(6) RECAPTURE.—The Secretary shall, by regu9 lations, provide for recapturing the benefit of any

10 credit allowable under subsection (a) if the Secretary,

11 in consultation with the Secretary of Agriculture, de12 termines that—

13 ‘‘(A) the eligible taxpayer has failed to

14 carry out the duties of the taxpayer under the

15 terms of the easement, and

16 ‘‘(B) there are no other available means to

17 remediate such failure.’’.

18 (2) CONFORMING AMENDMENTS.—

19 (A) Section 1016(a), as amended by this

20 Act, is amended by striking ‘‘and’’ at the end of

21 paragraph (37), by striking the period at the end

22 of paragraph (38) and inserting ‘‘, and’’, and by

23 inserting after paragraph (38) the following new

24 paragraph:
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1 ‘‘(39) to the extent provided in section

2 30F(g)(5).’’.

3 (B) The table of sections for subpart B of

4 part IV of subchapter A of chapter 1, as amend5 ed by this Act, is amended by inserting after the

6 item relating to section 30E the following new

7 item:

‘‘Sec. 30F. Agriculture conservation easement credit.’’.

8 (3) EFFECTIVE DATE.—The amendments made

9 by this subsection shall apply to easements granted

10 after September 30, 2007, in taxable years ending

11 after such date.

12 (b) CONFORMING AMENDMENTS TO THE FOOD SECU13 RITY ACT OF 1985.—

14 (1) WETLANDS RESERVE PROGRAM.—Section

15 1237A(f) of the Food Security Act of 1985 (16 U.S.C.

16 3837a(f)), as amended by this Act, is amended by

17 adding at the end the following new paragraph:

18 ‘‘(5) ELECTION TO RECEIVE TAX CREDITS IN

19 LIEU OF PAYMENTS.—

20 ‘‘(A) IN GENERAL.—In lieu of a payment in

21 cash under paragraph (1), the landowner may

22 elect to receive an allocation of tax credits under

23 section 30E(e)(2) of the Internal Revenue Code of

24 1986.
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1 ‘‘(B) LIMITATION.—No election may be

2 made under this paragraph with respect to pay3 ments to a landowner under a special wetlands

4 reserve enhancement program described in sub5 section (h).’’.

6 (2) GRASSLAND RESERVE PROGRAM.—Section

7 1238P(b)(2) of the Food Security Act of 1985 (16

8 U.S.C. 3838p(b)(2)) is amended by adding at the end

9 the following new subparagraph:

10 ‘‘(C) ELECTION TO RECEIVE TAX CREDITS

11 IN LIEU OF CERTAIN PAYMENTS.—In lieu of a

12 payment in return for a permanent conservation

13 easement under subparagraph (A)(i)(I) or a 30-

14 year conservation easement under subparagraph

15 (A)(i)(II), the landowner may elect to receive an

16 allocation of tax credits under section 30E(e)(2)

17 of the Internal Revenue Code of 1986.’’.

18 PART II—TIMBER PROVISIONS

19 SEC. 12211. FOREST CONSERVATION BONDS.

20 (a) TAX-EXEMPT BOND FINANCING.—

21 (1) IN GENERAL.—For purposes of the Internal

22 Revenue Code of 1986, any qualified forest conserva23 tion bond shall be treated as an exempt facility bond

24 under section 142 of such Code.
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1 (2) QUALIFIED FOREST CONSERVATION BOND.—

2 For purposes of this section, the term ‘‘qualified forest

3 conservation bond’’ means any bond issued as part of

4 an issue if—

5 (A) 95 percent or more of the net proceeds

6 (as defined in section 150(a)(3) of such Code) of

7 such issue are to be used for qualified project

8 costs, and

9 (B) such bond is issued before the date

10 which is 36 months after the date of the enact11 ment of this Act.

12 (3) LIMITATION ON AGGREGATE AMOUNT

13 ISSUED.—

14 (A) IN GENERAL.—The maximum aggregate

15 face amount of bonds which may be issued under

16 this subsection shall not exceed $1,500,000,000

17 for all projects (excluding refunding bonds).

18 (B) ENFORCEMENT OF LIMITATION.—An

19 issue shall not be treated as an issue described in

20 paragraph (2) if the aggregate face amount of

21 bonds issued pursuant to such issue for any

22 qualified projects costs (when added to the aggre23 gate face amount of bonds previously so issued

24 for such costs) exceeds the amount allocated

25 under subparagraph (C).
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1 (C) INITIAL ALLOCATION OF LIMITATION.—

2 The limitation described in subparagraph (A)

3 shall be allocated by the Secretary of the Treas4 ury among qualified organizations as follows:

5 (i) 35 percent for qualified project costs

6 with respect to the cost of acquisition by

7 any qualified organization in the Pacific

8 Northwest region.

9 (ii) 30 percent for qualified project

10 costs with respect to the cost of acquisition

11 by any qualified organization in the West12 ern region.

13 (iii) 17.5 percent for qualified project

14 costs with respect to the cost of acquisition

15 by any qualified organization in the South16 east region.

17 (iv) 17.5 percent for qualified project

18 costs with respect to the cost of acquisition

19 by any qualified organization in the North20 east region.

21 (D) SECONDARY ALLOCATION PROCE22 DURE.—If for the period ending on the last day

23 of the 24th month after the date of the enactment

24 of this Act, the limitation amount for any region

25 under subparagraph (C) exceeds the amount of
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1 bonds allocated by the Secretary of the Treasury

2 during such period, the Secretary of the Treas3 ury may allocate such excess among qualified or4 ganizations in any other region in such manner

5 as the Secretary of the Treasury determines ap6 propriate.

7 (E) REGIONS.—For purposes of this

8 paragraph—

9 (i) PACIFIC NORTHWEST REGION.—The

10 term ‘‘Pacific Northwest region’’ means Re11 gion 6 as defined by the United States For12 est Service of the Department of Agriculture

13 under section 200.2 of title 36, Code of Fed14 eral Regulations.

15 (ii) WESTERN REGION.—The term

16 ‘‘Western region’’ means Regions 1, 2, 3, 4,

17 5, and 10 (as so defined).

18 (iii) SOUTHEAST REGION.—The term

19 ‘‘Southeast region’’ means Region 8 (as so

20 defined).

21 (iv) NORTHEAST REGION.—The term

22 ‘‘Northeast region’’ means Region 9 (as so

23 defined).

24 (4) QUALIFIED PROJECT COSTS.—For purposes

25 of this subsection, the term ‘‘qualified project costs’’
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1 means the costs of acquisition by a qualified organi2 zation from an unrelated person of forests and forest

3 land which, at the time of acquisition or immediately

4 thereafter, are subject to a conservation restriction de5 scribed in subsection (c)(2).

6 (5) SPECIAL RULES.—In applying the Internal

7 Revenue Code of 1986 to any qualified forest con8 servation bond, the following modifications shall

9 apply:

10 (A) Section 146 of such Code (relating to

11 volume cap) shall not apply.

12 (B) For purposes of section 147(b) of such

13 Code (relating to maturity may not exceed 120

14 percent of economic life), the land and standing

15 timber acquired with proceeds of qualified forest

16 conservation bonds shall have an economic life of

17 35 years.

18 (C) Subsections (c) and (d) of section 147

19 of such Code (relating to limitations on acquisi20 tion of land and existing property) shall not

21 apply.

22 (6) TREATMENT OF CURRENT REFUNDING

23 BONDS.—Paragraphs (2)(B) and (3) shall not apply

24 to any bond (or series of bonds) issued to refund a

25 qualified forest conservation bond issued before the
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1 date which is 36 months after the date of the enact2 ment of this Act, if—

3 (A) the average maturity date of the issue

4 of which the refunding bond is a part is not later

5 than the average maturity date of the bonds to

6 be refunded by such issue,

7 (B) the amount of the refunding bond does

8 not exceed the outstanding amount of the re9 funded bond, and

10 (C) the net proceeds of the refunding bond

11 are used to redeem the refunded bond not later

12 than 90 days after the date of the issuance of the

13 refunding bond.

14 For purposes of subparagraph (A), average maturity

15 shall be determined in accordance with section

16 147(b)(2)(A) of such Code.

17 (7) EFFECTIVE DATE.—This subsection shall

18 apply to obligations issued on or after the date which

19 is 180 days after the date of the enactment of this Act.

20 (b) ITEMS FROM QUALIFIED HARVESTING ACTIVITIES

21 NOT SUBJECT TO TAX OR TAKEN INTO ACCOUNT.—

22 (1) IN GENERAL.—Income, gains, deductions,

23 losses, or credits from a qualified harvesting activity

24 conducted by a qualified organization shall not be
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1 subject to tax or taken into account under subtitle A

2 of the Internal Revenue Code of 1986.

3 (2) LIMITATION.—The amount of income ex4 cluded from gross income under paragraph (1) for

5 any taxable year shall not exceed the amount used by

6 the qualified organization to make debt service pay7 ments during such taxable year for qualified forest

8 conservation bonds.

9 (3) QUALIFIED HARVESTING ACTIVITY.—For

10 purposes of paragraph (1)—

11 (A) IN GENERAL.—The term ‘‘qualified har12 vesting activity’’ means the sale, lease, or har13 vesting, of standing timber—

14 (i) on land owned by a qualified orga15 nization which was acquired with proceeds

16 of qualified forest conservation bonds, and

17 (ii) pursuant to a qualified conserva18 tion plan adopted by the qualified organiza19 tion.

20 (B) EXCEPTIONS.—

21 (i) CESSATION AS QUALIFIED ORGANI22 ZATION.—The term ‘‘qualified harvesting

23 activity’’ shall not include any sale, lease,

24 or harvesting for any period during which
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1 the organization ceases to qualify as a

2 qualified organization.

3 (ii) EXCEEDING LIMITS ON HAR4 VESTING.—The term ‘‘qualified harvesting

5 activity’’ shall not include any sale, lease,

6 or harvesting of standing timber on land

7 acquired with proceeds of qualified forest

8 conservation bonds to the extent that—

9 (I) the average annual area of

10 timber harvested from such land ex11 ceeds 2.5 percent of the total area of

12 such land, or

13 (II) the quantity of timber re14 moved from such land exceeds the

15 quantity which can be removed from

16 such land annually in perpetuity on a

17 sustained-yield basis with respect to

18 such land.

19 The limitations under subclauses (I) and

20 (II) shall not apply to post-fire restoration

21 and rehabilitation or sanitation harvesting

22 of timber stands which are substantially

23 damaged by fire, windthrow, or other catas24 trophes, or which are in imminent danger

25 from insect or disease attack.
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1 (4) TERMINATION.—This subsection shall not

2 apply to any qualified harvesting activity of a quali3 fied organization occurring after the date on which—

4 (A) there is no outstanding qualified forest

5 conservation bond with respect to such qualified

6 organization, or

7 (B) any such bond ceases to be a tax-exempt

8 bond.

9 (5) PARTIAL RECAPTURE OF BENEFITS IF HAR10 VESTING LIMIT EXCEEDED.—If, as of the date that

11 this subsection ceases to apply under paragraph

12 (4)(B), the average annual area of timber harvested

13 from the land exceeds the requirement of subclause (I)

14 or (II) of paragraph (3)(B)(ii), the tax imposed by

15 chapter 1 of the Internal Revenue Code of 1986 shall

16 be increased, under rules prescribed by the Secretary

17 of the Treasury, by the sum of the tax benefits attrib18 utable to such excess and interest at the under19 payment rate under section 6621 of such Code for the

20 period of the underpayment.

21 (c) DEFINITIONS.—For purposes of this section—

22 (1) QUALIFIED CONSERVATION PLAN.—The term

23 ‘‘qualified conservation plan’’ means a multiple land

24 use program or plan which—
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1 (A) is designed and administered primarily

2 for the purposes of protecting and enhancing

3 wildlife and fish, timber, scenic attributes, recre4 ation, and soil and water quality of the forest

5 and forest land,

6 (B) mandates that conservation of forest

7 and forest land is the single-most significant use

8 of the forest and forest land, and

9 (C) requires that timber harvesting be con10 sistent with—

11 (i) restoring and maintaining reference

12 conditions for the region’s ecotype,

13 (ii) restoring and maintaining a rep14 resentative sample of young, mid, and late

15 successional forest age classes,

16 (iii) maintaining or restoring the re17 sources’ ecological health for purposes of

18 preventing damage from fire, insect, or dis19 ease,

20 (iv) maintaining or enhancing wildlife

21 or fish habitat, or

22 (v) enhancing research opportunities

23 in sustainable renewable resource uses.
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1 (2) CONSERVATION RESTRICTION.—The conserva2 tion restriction described in this paragraph is a re3 striction which—

4 (A) is granted in perpetuity to an unrelated

5 person which is described in section 170(h)(3) of

6 such Code and which, in the case of a nongovern7 mental unit, is organized and operated for con8 servation purposes,

9 (B) meets the requirements of clause (ii) or

10 (iii)(II) of section 170(h)(4)(A) of such Code,

11 (C) obligates the qualified organization to

12 pay the costs incurred by the holder of the con13 servation restriction in monitoring compliance

14 with such restriction, and

15 (D) requires an increasing level of conserva16 tion benefits to be provided whenever cir17 cumstances allow it.

18 (3) QUALIFIED ORGANIZATION.—The term

19 ‘‘qualified organization’’ means a nonprofit

20 organization—

21 (A) substantially all the activities of which

22 are charitable, scientific, or educational, includ23 ing acquiring, protecting, restoring, managing,

24 and developing forest lands and other renewable
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1 resources for the long-term charitable, edu2 cational, scientific, and public benefit,

3 (B) which periodically conducts educational

4 programs designed to inform the public of envi5 ronmentally sensitive forestry management and

6 conservation techniques,

7 (C) which has at all times a board of

8 directors—

9 (i) at least 20 percent of the members

10 of which are representatives of the conserva11 tion community,

12 (ii) at least 20 percent of the members

13 of which are public officials, and

14 (iii) not more than one-third of the

15 members of which are individuals who are

16 or were at any time within 5 years before

17 the beginning of a term of membership on

18 the board, an employee of, independent con19 tractor with respect to, officer of, director of,

20 or held a material financial interest in, a

21 commercial forest products enterprise with

22 which the qualified organization has a con23 tractual or other financial arrangement,

24 (D) the bylaws of which require at least

25 two-thirds of the members of the board of direc-
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1 tors to vote affirmatively to approve the qualified

2 conservation plan and any change thereto, and

3 (E) upon dissolution, is required to dedicate

4 its assets to—

5 (i) an organization described in section

6 501(c)(3) of such Code which is organized

7 and operated for conservation purposes, or

8 (ii) a governmental unit described in

9 section 170(c)(1) of such Code.

10 (4) UNRELATED PERSON.—The term ‘‘unrelated

11 person’’ means a person who is not a related person.

12 (5) RELATED PERSON.—A person shall be treat13 ed as related to another person if—

14 (A) such person bears a relationship to such

15 other person described in section 267(b) (deter16 mined without regard to paragraph (9) thereof),

17 or 707(b)(1), of such Code, determined by sub18 stituting ‘‘25 percent’’ for ‘‘50 percent’’ each

19 place it appears therein, and

20 (B) in the case such other person is a non21 profit organization, if such person controls di22 rectly or indirectly more than 25 percent of the

23 governing body of such organization.
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1 SEC. 12212. DEDUCTION FOR QUALIFIED TIMBER GAIN.

2 (a) IN GENERAL.—Part I of subchapter P of chapter

3 1 is amended by adding at the end the following new sec4 tion:

5 ‘‘SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

6 ‘‘(a) IN GENERAL.—In the case of a taxpayer which

7 elects the application of this section for a taxable year, there

8 shall be allowed a deduction against gross income in an

9 amount equal to 60 percent of the lesser of—

10 ‘‘(1) the taxpayer’s qualified timber gain for

11 such year, or

12 ‘‘(2) the taxpayer’s net capital gain for such

13 year.

14 ‘‘(b) QUALIFIED TIMBER GAIN.—For purposes of this

15 section, the term ‘qualified timber gain’ means, with respect

16 to any taxpayer for any taxable year, the excess (if any)

17 of—

18 ‘‘(1) the sum of the taxpayer’s gains described in

19 subsections (a) and (b) of section 631 for such year,

20 over

21 ‘‘(2) the sum of the taxpayer’s losses described in

22 such subsections for such year.

23 ‘‘(c) SPECIAL RULES FOR PASS-THRU ENTITIES.—

24 ‘‘(1) In the case of any qualified timber gain of

25 a pass-thru entity (as defined in section 1(h)(10))

26 other than a real estate investment trust, the election
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1 under this section shall be made separately by each

2 taxpayer subject to tax on such gain.

3 ‘‘(2) In the case of any qualified timber gain of

4 a real estate investment trust, the election under this

5 section shall be made by the real estate investment

6 trust.

7 ‘‘(d) ELECTION.—An election under this section may

8 be made only with respect to the first taxable year begin9 ning after the date of the enactment of this section.’’.

10 (b) COORDINATION WITH MAXIMUM CAPITAL GAINS

11 RATES.—

12 (1) TAXPAYERS OTHER THAN CORPORATIONS.—

13 Paragraph (2) of section 1(h) is amended to read as

14 follows:

15 ‘‘(2) REDUCTION OF NET CAPITAL GAIN.—For

16 purposes of this subsection, the net capital gain for

17 any taxable year shall be reduced (but not below zero)

18 by the sum of—

19 ‘‘(A) the amount which the taxpayer takes

20 into account as investment income under section

21 163(d)(4)(B)(iii), and

22 ‘‘(B) in the case of a taxable year with re23 spect to which an election is in effect under sec24 tion 1203, the lesser of—
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1 ‘‘(i) the amount described in para2 graph (1) of section 1203(a), or

3 ‘‘(ii) the amount described in para4 graph (2) of such section.’’.

5 (2) CORPORATIONS.—Section 1201 is amended

6 by redesignating subsection (b) as subsection (c) and

7 inserting after subsection (a) the following new sub8 section:

9 ‘‘(b) QUALIFIED TIMBER GAIN NOT TAKEN INTO AC10 COUNT.—For purposes of this section, in the case of a cor11 poration with respect to which an election is in effect under

12 section 1203, the net capital gain for any taxable year shall

13 be reduced (but not below zero) by the corporation’s quali14 fied timber gain (as defined in section 1203(b)).’’.

15 (c) DEDUCTION ALLOWED WHETHER OR NOT INDI16 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) of

17 section 62 is amended by inserting before the last sentence

18 the following new paragraph:

19 ‘‘(22) QUALIFIED TIMBER GAINS.—The deduction

20 allowed by section 1203.’’.

21 (d) DEDUCTION ALLOWED IN COMPUTING ADJUSTED

22 CURRENT EARNINGS.—Subparagraph (C) of section

23 56(g)(4) is amended by adding at the end the following new

24 clause:
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1 ‘‘(vii) DEDUCTION FOR QUALIFIED

2 TIMBER GAIN.—Clause (i) shall not apply

3 to any deduction allowed under section

4 1203.’’.

5 (e) DEDUCTION ALLOWED IN COMPUTING TAXABLE IN6 COMEOF ELECTING SMALL BUSINESS TRUSTS.—Subpara7 graph (C) of section 641(c)(2) is amended by inserting after

8 clause (iii) the following new clause:

9 ‘‘(iv) The deduction allowed under sec10 tion 1203.’’.

11 (f) TREATMENT OF QUALIFIED TIMBER GAIN OF REAL

12 ESTATE INVESTMENT TRUSTS.—Paragraph (3) of section

13 857(b) is amended by inserting after subparagraph (F) the

14 following new subparagraph:

15 ‘‘(G) TREATMENT OF QUALIFIED TIMBER

16 GAIN.—For purposes of this part, in the case of

17 a real estate investment trust with respect to

18 which an election is in effect under section

19 1203—

20 ‘‘(i) REDUCTION OF NET CAPITAL

21 GAIN.—The net capital gain of the real es22 tate investment trust for any taxable year

23 shall be reduced (but not below zero) by the

24 real estate investment trust’s qualified tim25 ber gain (as defined in section 1203(b)).
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1 ‘‘(ii) ADJUSTMENT TO SHAREHOLDER’S

2 BASIS ATTRIBUTABLETO DEDUCTION FOR

3 QUALIFIED TIMBER GAINS.—

4 ‘‘(I) IN GENERAL.—The adjusted

5 basis of shares in the hands of the

6 shareholder shall be increased by the

7 amount of the deduction allowable

8 under section 1203(a) as provided in

9 subclauses (II) and (III).

10 ‘‘(II) ALLOCATION OF BASIS IN11 CREASE FOR DISTRIBUTIONS MADE

12 DURING TAXABLEYEAR.—For any tax13 able year of a real estate investment

14 trust for which an election is in effect

15 under section 1203, in the case of a

16 distribution made with respect to

17 shares during such taxable year of

18 amounts attributable to the deduction

19 allowable under section 1203(a), the

20 adjusted basis of such shares shall be

21 increased by the amount of such dis22 tributions.

23 ‘‘(III) ALLOCATION OF EXCESS.—

24 If the deduction allowable under sec25 tion 1203(a) for a taxable year exceeds
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1 the amount of distributions described

2 in subclause (II), the excess shall be al3 located to every shareholder of the real

4 estate investment trust at the close of

5 the trust’s taxable year in the same

6 manner as if a distribution of such ex7 cess were made with respect to such

8 shares.

9 ‘‘(IV) DESIGNATIONS.—To the ex10 tent provided in regulations, a real es11 tate investment trust shall designate

12 the amounts described in subclauses

13 (II) and (III) in a manner similar to

14 the designations provided with respect

15 to capital gains described in subpara16 graphs (C) and (D).

17 ‘‘(V) DEFINITIONS.—As used in

18 this subparagraph, the terms ‘share’

19 and ‘shareholder’ shall include bene20 ficial interests and holders of beneficial

21 interests, respectively.

22 ‘‘(iii) EARNINGS AND PROFITS DEDUC23 TION FOR QUALIFIED TIMBER GAINS.—The

24 deduction allowable under section 1203(a)

25 for a taxable year shall be allowed as a de-
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1 duction in computing the earnings and

2 profits of the real estate investment trust for

3 such taxable year. The earnings and profits

4 of any such shareholder which is a corpora5 tion shall be appropriately adjusted in ac6 cordance with regulations prescribed by the

7 Secretary.’’.

8 (g) LOSS ATTRIBUTABLETO BASIS ADJUSTMENT FOR

9 DEDUCTION FOR QUALIFIED TIMBER GAIN OF REAL ES10 TATE INVESTMENT TRUSTS.—

11 (1) Section 857(b)(8) is amended by redesig12 nating subparagraphs (B) and (C) as subparagraphs

13 (C) and (D), respectively, and by inserting after sub14 paragraph (A) the following new subparagraph:

15 ‘‘(B) LOSS ATTRIBUTABLETO BASIS AD16 JUSTMENT FOR DEDUCTION FOR QUALIFIED TIM17 BER GAIN.—If—

18 ‘‘(i) a shareholder of a real estate in19 vestment trust receives a basis adjustment

20 provided under subsection (b)(3)(G)(ii), and

21 ‘‘(ii) the taxpayer has held such share

22 or interest for 6 months or less,

23 then any loss on the sale or exchange of such

24 share or interest shall, to the extent of the

25 amount described in clause (i), be disallowed.’’.
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1 (2) Subparagraph (D) of section 857(b)(8), as

2 redesignated by paragraph (1), is amended by strik3 ing ‘‘subparagraph (A)’’ and inserting ‘‘subpara4 graphs (A) and (B)’’.

5 (h) CONFORMING AMENDMENTS.—

6 (1) Subparagraph (B) of section 172(d)(2) is

7 amended to read as follows:

8 ‘‘(B) the exclusion under section 1202, and

9 the deduction under section 1203, shall not be al10 lowed.’’.

11 (2) Paragraph (4) of section 642(c) is amended

12 by striking the first sentence and inserting ‘‘To the

13 extent that the amount otherwise allowable as a de14 duction under this subsection consists of gain de15 scribed in section 1202(a) or qualified timber gain

16 (as defined in section 1203(b)), proper adjustment

17 shall be made for any exclusion allowable to the estate

18 or trust under section 1202 and for any deduction al19 lowable to the estate or trust under section 1203.’’

20 (3) Paragraph (3) of section 643(a) is amended

21 by striking the last sentence and inserting ‘‘The exclu22 sion under section 1202 and the deduction under sec23 tion 1203 shall not be taken into account.’’.

24 (4) Subparagraph (C) of section 643(a)(6) is

25 amended to read as follows:
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1 ‘‘(C) Paragraph (3) shall not apply to a

2 foreign trust. In the case of such a trust—

3 ‘‘(i) there shall be included gains from

4 the sale or exchange of capital assets, re5 duced by losses from such sales or exchanges

6 to the extent such losses do not exceed gains

7 from such sales or exchanges, and

8 ‘‘(ii) the deduction under section 1203

9 shall not be taken into account.’’.

10 (5) Paragraph (4) of section 691(c) is amended

11 by inserting ‘‘1203,’’ after ‘‘1202,’’.

12 (6) Paragraph (2) of section 871(a) is amended

13 by inserting ‘‘or 1203,’’ after ‘‘1202,’’.

14 (7) The table of sections for part I of subchapter

15 P of chapter 1 is amended by adding at the end the

16 following new item:

‘‘Sec. 1203. Deduction for qualified timber gain.’’.

17 (i) EFFECTIVE DATE.—The amendments made by this

18 section shall apply to taxable years beginning after the date

19 of the enactment of this Act.

20 SEC. 12213. EXCISE TAX NOT APPLICABLE TO SECTION 1203

21 DEDUCTION OF REAL ESTATE INVESTMENT

22 TRUSTS.

23 (a) IN GENERAL.—

24 (1) ORDINARY INCOME.—Subparagraph (B) of

25 section 4981(e)(1) is amended to read as follows:
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1 ‘‘(B) by not taking into account—

2 ‘‘(i) any gain or loss from the sale or

3 exchange of capital assets (determined with4 out regard to any reduction that would be

5 applied for purposes of section

6 857(b)(3)(G)(i)), and

7 ‘‘(ii) any deduction allowable under

8 section 1203, and’’.

9 (2) CAPITAL GAIN NET INCOME.—Section

10 4981(e)(2) is amended by adding at the end the fol11 lowing new subparagraph:

12 ‘‘(D) QUALIFIED TIMBER GAIN.—The

13 amount determined under subparagraph (A)

14 shall be determined without regard to any reduc15 tion that would be applied for purposes of sec16 tion 857(b)(3)(G)(i) but shall be reduced for any

17 deduction allowable under section 1203 for such

18 calendar year.’’.

19 (b) EFFECTIVE DATE.—The amendments made by this

20 section shall apply to taxable years beginning after the date

21 of the enactment of this Act.

22 SEC. 12214. TIMBER REIT MODERNIZATION.

23 (a) IN GENERAL.—Section 856(c)(5) is amended by

24 adding after subparagraph (G) the following new subpara25 graph:
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1 ‘‘(H) TREATMENT OF TIMBER GAINS.—

2 ‘‘(i) IN GENERAL.—Gain from the sale

3 of real property described in paragraph

4 (2)(D) and (3)(C) shall include gain which

5 is—

6 ‘‘(I) recognized by an election

7 under section 631(a) from timber

8 owned by the real estate investment

9 trust, the cutting of which is provided

10 by a taxable REIT subsidiary of the

11 real estate investment trust;

12 ‘‘(II) recognized under section

13 631(b); or

14 ‘‘(III) income which would con15 stitute gain under subclause (I) or (II)

16 but for the failure to meet the 1-year

17 holding period requirement.

18 ‘‘(ii) SPECIAL RULES.—

19 ‘‘(I) For purposes of this subtitle,

20 cut timber, the gain of which is recog21 nized by a real estate investment trust

22 pursuant to an election under section

23 631(a) described in clause (i)(I) or so

24 much of clause (i)(III) as relates to

25 clause (i)(I), shall be deemed to be sold
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1 to the taxable REIT subsidiary of the

2 real estate investment trust on the first

3 day of the taxable year.

4 ‘‘(II) For purposes of this subtitle,

5 income described in this subparagraph

6 shall not be treated as gain from the

7 sale of property described in section

8 1221(a)(1).

9 ‘‘(iii) TERMINATION.—This subpara10 graph shall not apply to dispositions after

11 the termination date.’’.

12 (b) TERMINATION DATE.—Subsection (c) of section

13 856 is amended by adding at the end the following new

14 paragraph:

15 ‘‘(8) TERMINATION DATE.—For purposes of this

16 subsection, the term ‘termination date’ means the last

17 day of the first taxable year beginning after the date

18 of the enactment of this paragraph.’’.

19 (c) EFFECTIVE DATE.—The amendments made by sub20 section (a) shall apply to dispositions in taxable years be21 ginning after the date of the enactment of this Act.

22 SEC. 12215. MINERAL ROYALTY INCOME QUALIFYING IN23 COME FOR TIMBER REITS.

24 (a) IN GENERAL.—Section 856(c)(2) is amended by

25 striking ‘‘and’’ at the end of subparagraph (G), by inserting
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1 ‘‘and’’ at the end of subparagraph (H), and by adding after

2 subparagraph (H) the following new subparagraph:

3 ‘‘(I) mineral royalty income earned in the

4 first taxable year beginning after the date of the

5 enactment of this subparagraph from real prop6 erty owned by a timber real estate investment

7 trust held, or once held, in connection with the

8 trade or business of producing timber by such

9 real estate investment trust;’’.

10 (b) TIMBER REAL ESTATE INVESTMENT TRUST.—Sec11 tion 856(c)(5), as amended by this Act, is amended by add12 ing after subparagraph (H) the following new subpara13 graph:

14 ‘‘(I) TIMBER REAL ESTATE INVESTMENT

15 TRUST.—The term ‘timber real estate investment

16 trust’ means a real estate investment trust in

17 which more than 50 percent in value of its total

18 assets consists of real property held in connection

19 with the trade or business of producing timber.’’.

20 (c) EFFECTIVE DATE.—The amendments by this sec21 tion shall apply to taxable years beginning after the date

22 of the enactment of this Act.
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1 SEC. 12216. MODIFICATION OF TAXABLE REIT SUBSIDIARY

2 ASSET TEST FOR TIMBER REITS.

3 (a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amend4 ed by inserting ‘‘(in the case of a quarter which closes on

5 or before the termination date, 25 percent in the case of

6 a timber real estate investment trust)’’ after ‘‘not more than

7 20 percent of the value of its total assets is represented by

8 securities of one or more taxable REIT subsidiaries’’.

9 (b) EFFECTIVE DATE.—The amendment made by this

10 section shall apply to taxable years beginning after the date

11 of the enactment of this Act.

12 SEC. 12217. SAFE HARBOR FOR TIMBER PROPERTY.

13 (a) IN GENERAL.—Section 857(b)(6) (relating to in14 come from prohibited transactions) is amended by adding

15 at the end the following new subparagraph:

16 ‘‘(G) SPECIAL RULES FOR SALES TO QUALI17 FIED ORGANIZATIONS.—

18 ‘‘(i) IN GENERAL.—In the case of sale

19 of a real estate asset (as defined in section

20 856(c)(5)(B)) to a qualified organization

21 (as defined in section 170(h)(3)) exclusively

22 for conservation purposes (within the mean23 ing of section 170(h)(1)(C)), subparagraph

24 (D) shall be applied—

25 ‘‘(I) by substituting ‘2 years’ for

26 ‘4 years’ in clause (i), and
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1 ‘‘(II) by substituting ‘2-year pe2 riod’ for ‘4-year period’ in clauses (ii)

3 and (iii).

4 ‘‘(ii) TERMINATION.—This subpara5 graph shall not apply to sales after the ter6 mination date.’’.

7 (b) PROHIBITED TRANSACTIONS.—Section

8 857(b)(6)(D)(v) is amended by inserting ‘‘or, in the case

9 of a sale on or before the termination date, a taxable REIT

10 subsidiary’’ after ‘‘independent contractor (as defined in

11 section 856(d)(3)) from whom the trust itself does not derive

12 or receive any income’’.

13 (c) SALES THAT ARE NOT PROHIBITED TRANS14 ACTIONS.—Section 857(b)(6), as amended by subsection (a),

15 is amended by adding at the end the following new subpara16 graph:

17 ‘‘(H) SALES OF PROPERTY THAT ARE NOT A

18 PROHIBITED TRANSACTION.—In the case of a sale

19 on or before the termination date, the sale of

20 property which is not a prohibited transaction

21 through application of subparagraph (D) shall

22 be considered property held for investment or for

23 use in a trade or business and not property de24 scribed in section 1221(a)(1) for all purposes of

25 this subtitle.’’.
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1 (d) TERMINATION DATE.—Section 857(b)(6), as

2 amended by subsections (a) and (c), is amended by adding

3 at the end the following new subparagraph:

4 ‘‘(I) TERMINATION DATE.—For purposes of

5 this paragraph, the term ‘termination date’

6 means the last day of the first taxable year be7 ginning after the date of the enactment of this

8 subparagraph.’’.

9 (e) EFFECTIVE DATE.—The amendments made by this

10 section shall apply to dispositions in taxable years begin11 ning after the date of the enactment of this Act.

12 Subtitle C—Energy Provisions

13 PART I—ELECTRICITY GENERATION

14 SEC. 12301. CREDIT FOR RESIDENTIAL AND BUSINESS WIND

15 PROPERTY.

16 (a) RESIDENTIAL WIND PROPERTY.—

17 (1) IN GENERAL.—Section 25D(a) (relating to

18 allowance of credit) is amended by striking ‘‘and’’ at

19 the end of paragraph (2), by striking the period at the

20 end of paragraph (3) and inserting ‘‘, and’’, and by

21 adding at the end the following new paragraph:

22 ‘‘(4) 30 percent of the qualified small wind en23 ergy property expenditures made by the taxpayer

24 during such year.’’.
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1 (2) LIMITATION.—Section 25D(b)(1) (relating to

2 maximum credit) is amended by striking ‘‘and’’ at

3 the end of subparagraph (B), by striking the period

4 at the end of subparagraph (C) and inserting ‘‘,

5 and’’, and by adding at the end the following new

6 subparagraph:

7 ‘‘(D) $500 with respect to each half kilowatt

8 of capacity (not to exceed $4,000) of wind tur9 bines for which qualified small wind energy

10 property expenditures are made.’’.

11 (3) QUALIFIED SMALL WIND ENERGY PROPERTY

12 EXPENDITURES.—

13 (A) IN GENERAL.—Section 25D(d) (relating

14 to definitions) is amended by adding at the end

15 the following new paragraph:

16 ‘‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY

17 EXPENDITURE.—The term ‘qualified small wind en18 ergy property expenditure’ means an expenditure for

19 qualified small wind energy property (as defined in

20 section 48(c)(3)(A)) installed on or in connection with

21 a dwelling unit located in the United States and used

22 as a residence by the taxpayer.’’.

23 (B) NO DOUBLE BENEFIT.—Section

24 45(d)(1) (relating to wind facility) is amended

25 by adding at the end the following new sentence:
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1 ‘‘Such term shall not include any facility with

2 respect to which any qualified small wind energy

3 property expenditure (as defined in subsection

4 (d)(4) of section 25D) is taken into account in

5 determining the credit under such section.’’.

6 (4) MAXIMUM EXPENDITURES IN CASE OF JOINT

7 OCCUPANCY.—Section 25D(e)(4)(A) (relating to max8 imum expenditures) is amended by striking ‘‘and’’ at

9 the end of clause (ii), by striking the period at the

10 end of clause (iii) and inserting ‘‘, and’’, and by add11 ing at the end the following new clause:

12 ‘‘(iv) $1,667 in the case of each half

13 kilowatt of capacity (not to exceed $13,333)

14 of wind turbines for which qualified small

15 wind energy property expenditures are

16 made.’’.

17 (b) BUSINESS WIND PROPERTY.—

18 (1) IN GENERAL.—Section 48(a)(3)(A) (defining

19 energy property) is amended by striking ‘‘or’’ at the

20 end of clause (iii), by adding ‘‘or’’ at the end of

21 clause (iv), and by inserting after clause (iv) the fol22 lowing new clause:

23 ‘‘(v) qualified small wind energy prop24 erty,’’.
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1 (2) 30 PERCENT CREDIT.—Section 48(a)(2)(A)(i)

2 is amended by striking ‘‘and’’ at the end of subclause

3 (II) and by inserting after subclause (III) the fol4 lowing new subclause:

5 ‘‘(IV) qualified small wind energy

6 property, and’’.

7 (3) QUALIFIED SMALL WIND ENERGY PROP8 ERTY.—Section 48(c) is amended—

9 (A) by inserting ‘‘; QUALIFIED SMALL

10 WIND ENERGY PROPERTY’’ after ‘‘QUALIFIED

11 MICROTURBINE PROPERTY’’ in the heading,

12 (B) by striking ‘‘For purposes of this sub13 section’’ and inserting ‘‘For purposes of this sec14 tion’’,

15 (C) by striking ‘‘paragraph (1)’’ in para16 graphs (1)(B) and (2)(B) and inserting ‘‘sub17 section (a)(1)’’, and

18 (D) by adding at the end the following new

19 paragraph:

20 ‘‘(3) QUALIFIED SMALL WIND ENERGY PROP21 ERTY.—

22 ‘‘(A) IN GENERAL.—The term ‘qualified

23 small wind energy property’ means property

24 which uses a qualifying small wind turbine to

25 generate electricity.
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1 ‘‘(B) LIMITATION.—In the case of qualified

2 small wind energy property placed in service

3 during the taxable year, the credit otherwise de4 termined under subsection (a)(1) for such year

5 with respect to such property shall not exceed

6 $4,000 with respect to any taxpayer.

7 ‘‘(C) QUALIFYING SMALL WIND TURBINE.—

8 The term ‘qualifying small wind turbine’ means

9 a wind turbine which—

10 ‘‘(i) has a nameplate capacity of not

11 more than 100 kilowatts, and

12 ‘‘(ii) meets the performance standards

13 of the American Wind Energy Association.

14 ‘‘(D) TERMINATION.—The term ‘qualified

15 small wind energy property’ shall not include

16 any property for any period after December 31,

17 2008.’’.

18 (4) CONFORMING AMENDMENT.—Section 48(a)(1)

19 is amended by striking ‘‘paragraphs (1)(B) and

20 (2)(B)’’ and inserting ‘‘paragraphs (1)(B), (2)(B),

21 and (3)(B)’’.

22 (c) EFFECTIVE DATE.—The amendments made by this

23 section shall apply to expenditures after December 31, 2007.
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1 SEC. 12302. LANDOWNER INCENTIVE TO ENCOURAGE ELEC2 TRIC TRANSMISSION BUILD-OUT.

3 (a) IN GENERAL.—Part III of subchapter B of chapter

4 1 (relating to items specifically excluded from gross income)

5 is amended by inserting after section 139A the following

6 new section:

7 ‘‘SEC. 139B. ELECTRIC TRANSMISSION EASEMENT PAY8 MENTS.

9 ‘‘(a) IN GENERAL.—Gross income shall not include

10 any qualified electric transmission easement payment.

11 ‘‘(b) QUALIFIED ELECTRIC TRANSMISSION EASEMENT

12 PAYMENT.—For purposes of this section, the term ‘qualified

13 electric transmission payment’ means any payment which

14 is made—

15 ‘‘(1) by an electric utility or electric trans16 mission entity pursuant to an easement or other

17 agreement granted by the payee (or any predecessor

18 of such payee), and

19 ‘‘(2) for the right of such entity (or any succes20 sors of such entity) to locate on such payee’s property

21 transmission lines and equipment used to transmit

22 electricity at 230 or more kilovolts, primarily from

23 qualified facilities described in section 45(d) (without

24 regard to any placed in service date or the last sen25 tence of paragraph (4) thereof) or energy property (as
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1 defined in section 48(a)(3)) placed in service after the

2 date of the enactment of this section.

3 ‘‘(c) NO INCREASE IN BASIS.—Notwithstanding any

4 other provision of this subtitle, no increase in the basis or

5 adjusted basis of any property shall result from any amount

6 excluded under this subsection with respect to such prop7 erty.

8 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—Notwithstanding

9 any other provision of this subtitle, no deduction or credit

10 shall be allowed (to the person for whose benefit a qualified

11 electric transmission easement payment is made) for, or by

12 reason of, any expenditure to the extent of the amount ex13 cluded under this section with respect to such expenditure.’’.

14 (b) CLERICAL AMENDMENT.—The table of sections for

15 such part III is amended by inserting after the item relat16 ing to section 139A the following new item:

‘‘Sec. 139B. Electric transmission easement payments.’’.

17 (c) EFFECTIVE DATE.—The amendments made by this

18 section shall apply to payments received after the date of

19 the enactment of this Act.

20 SEC. 12303. EXCEPTION TO REDUCTION OF RENEWABLE

21 ELECTRICITY CREDIT.

22 (a) IN GENERAL.—Section 45(b)(3) (relating to credit

23 reduced for grants, tax-exempt bonds, subsidized energy fi24 nancing, and other credits) is amended by adding after the

25 last sentence the following: ‘‘This paragraph shall not apply
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1 with respect to any loans, loan guarantees, or grants issued

2 by the Secretary of Agriculture under authority granted by

3 section 9007 of the Farm Security and Rural Investment

4 Act of 2002.’’

5 (b) EFFECTIVE DATE.—The amendment made by this

6 section shall apply to facilities placed in service after the

7 date of the enactment of this Act.

8 PART II—ALCOHOL FUEL

9 SEC. 12311. EXPANSION OF SPECIAL ALLOWANCE TO CEL10 LULOSIC BIOFUEL PLANT PROPERTY.

11 (a) IN GENERAL.—Paragraph (3) of section 168(l) (re12 lating to special allowance for cellulosic biomass ethanol

13 plant property) is amended to read as follows:

14 ‘‘(3) CELLULOSIC BIOFUEL.—For purposes of

15 this subsection, the term ‘cellulosic biofuel’ means any

16 alcohol, ether, ester, or hydrocarbon produced from

17 any lignocellulosic or hemicellulosic matter that is

18 available on a renewable or recurring basis.’’.

19 (b) CONFORMING AMENDMENTS.—

20 (1) Subsection (l) of section 168 is amended by

21 striking ‘‘cellulosic biomass ethanol’’ each place it ap22 pears and inserting ‘‘cellulosic biofuel’’.

23 (2) The heading of section 168(l) is amended by

24 striking ‘‘CELLULOSIC BIOMASS ETHANOL’’ and in25 serting ‘‘CELLULOSIC BIOFUEL’’.
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1 (3) The heading of paragraph (2) of section

2 168(l) is amended by striking ‘‘CELLULOSIC BIOMASS

3 ETHANOL’’ and inserting ‘‘CELLULOSIC BIOFUEL’’.

4 (c) EFFECTIVE DATE.—The amendments made by this

5 section shall apply to property placed in service after the

6 date of the enactment of this Act, in taxable years ending

7 after such date.

8 SEC. 12312. CREDIT FOR PRODUCTION OF CELLULOSIC

9 BIOFUEL.

10 (a) IN GENERAL.—Subsection (a) of section 40 (relat11 ing to alcohol used as fuel) is amended by striking ‘‘plus’’

12 at the end of paragraph (2), by striking the period at the

13 end of paragraph (3) and inserting ‘‘, plus’’, and by adding

14 at the end the following new paragraph:

15 ‘‘(4) the cellulosic biofuel producer credit.’’.

16 (b) CELLULOSIC BIOFUEL PRODUCER CREDIT.—

17 (1) IN GENERAL.—Subsection (b) of section 40 is

18 amended by adding at the end the following new

19 paragraph:

20 ‘‘(6) CELLULOSIC BIOFUEL PRODUCER CRED21 IT.—

22 ‘‘(A) IN GENERAL.—The cellulosic biofuel

23 producer credit of any taxpayer is an amount

24 equal to the applicable amount for each gallon of

25 qualified cellulosic biofuel production.
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1 ‘‘(B) APPLICABLEAMOUNT.—For purposes

2 of subparagraph (A), the applicable amount

3 means the excess of—

4 ‘‘(i) $1.25, over

5 ‘‘(ii) the sum of—

6 ‘‘(I) the amount of the credit in

7 effect for alcohol which is ethanol

8 under subsection (b)(1) (without regard

9 to subsection (b)(3)) at the time of the

10 qualified cellulosic biofuel production,

11 plus

12 ‘‘(II) the amount of the credit in

13 effect under subsection (b)(4) at the

14 time of such production.

15 ‘‘(C) QUALIFIED CELLULOSIC BIOFUEL PRO16 DUCTION.—For purposes of this section, the term

17 ‘qualified cellulosic biofuel production’ means

18 any cellulosic biofuel which during the taxable

19 year—

20 ‘‘(i) is sold by the taxpayer to another

21 person—

22 ‘‘(I) for use by such other person

23 in the production of a qualified cel24 lulosic biofuel mixture in such other
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1 person’s trade or business (other than

2 casual off-farm production),

3 ‘‘(II) for use by such other person

4 as a fuel in a trade or business, or

5 ‘‘(III) who sells such cellulosic

6 biofuel at retail to another person and

7 places such cellulosic biofuel in the fuel

8 tank of such other person, or

9 ‘‘(ii) is used or sold by the taxpayer for

10 any purpose described in clause (i).

11 The qualified cellulosic biofuel production of any

12 taxpayer for any taxable year shall not include

13 any alcohol which is purchased by the taxpayer

14 and with respect to which such producer in15 creases the proof of the alcohol by additional dis16 tillation.

17 ‘‘(D) QUALIFIED CELLULOSIC BIOFUEL MIX18 TURE.—For purposes of this paragraph, the term

19 ‘qualified cellulosic biofuel mixture’ means a

20 mixture of cellulosic biofuel and any petroleum

21 fuel product which—

22 ‘‘(i) is sold by the person producing

23 such mixture to any person for use as a

24 fuel, or
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1 ‘‘(ii) is used as a fuel by the person

2 producing such mixture.

3 ‘‘(E) CELLULOSIC BIOFUEL.—

4 ‘‘(i) IN GENERAL.—The term ‘cellulosic

5 biofuel’ has the meaning given such term

6 under section 168(l)(3), but does not include

7 any alcohol with a proof of less than 150.

8 ‘‘(ii) DETERMINATION OF PROOF.—The

9 determination of the proof of any alcohol

10 shall be made without regard to any added

11 denaturants.

12 ‘‘(F) ALLOCATION OF CELLULOSIC BIOFUEL

13 PRODUCER CREDIT TO PATRONS OF COOPERA14 TIVE.—Rules similar to the rules under sub15 section (g)(6) shall apply for purposes of this

16 paragraph.

17 ‘‘(G) APPLICATION OF PARAGRAPH.—This

18 paragraph shall apply with respect to qualified

19 cellulosic biofuel production after December 31,

20 2007, and before April 1, 2015.’’.

21 (2) TERMINATION DATE NOT TO APPLY.—Sub22 section (e) of section 40 (relating to termination) is

23 amended—
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1 (A) by inserting ‘‘or subsection (b)(6)(G)’’

2 after ‘‘by reason of paragraph (1)’’ in paragraph

3 (2), and

4 (B) by adding at the end the following new

5 paragraph:

6 ‘‘(3) EXCEPTION FOR CELLULOSIC BIOFUEL PRO7 DUCER CREDIT.—Paragraph (1) shall not apply to

8 the portion of the credit allowed under this section by

9 reason of subsection (a)(4).’’.

10 (c) BIOFUEL NOT USE D AS A FUEL, ETC.—

11 (1) IN GENERAL.—Paragraph (3) of section

12 40(d) is amended by redesignating subparagraph (D)

13 as subparagraph (E) and by inserting after subpara14 graph (C) the following new subparagraph:

15 ‘‘(D) CELLULOSIC BIOFUEL PRODUCER

16 CREDIT.—If—

17 ‘‘(i) any credit is allowed under sub18 section (a)(4), and

19 ‘‘(ii) any person does not use such fuel

20 for a purpose described in subsection

21 (b)(6)(C),

22 then there is hereby imposed on such person a

23 tax equal to the applicable amount for each gal24 lon of such cellulosic biomass biofuel.’’.

25 (2) CONFORMING AMENDMENTS.—
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1 (A) Subparagraph (C) of section 40(d)(3) is

2 amended by striking ‘‘PRODUCER’’ in the head3 ing and inserting ‘‘SMALL ETHANOL PRODUCER’’.

4 (B) Subparagraph (E) of section 40(d)(3),

5 as redesignated by paragraph (1), is amended by

6 striking ‘‘or (C)’’ and inserting ‘‘(C), or (D)’’.

7 (d) BIOFUEL PRODUCED IN THE UNITED STATES.—

8 Section 40(d) is amended by adding at the end the following

9 new paragraph:

10 ‘‘(6) SPECIAL RULE FOR CELLULOSIC BIOFUEL

11 PRODUCER CREDIT.—No cellulosic biofuel producer

12 credit shall be determined under subsection (a) with

13 respect to any cellulosic biofuel unless such cellulosic

14 biofuel is produced in the United States.’’.

15 (e) WAIVER OF CREDIT LIMIT FOR CELLULOSIC

16 BIOFUEL PRODUCTION BY SMALL ETHANOL PRODUCERS.—

17 Section 40(b)(4)(C) is amended by inserting ‘‘(determined

18 without regard to any qualified cellulosic biofuel produc19 tion’’ after ‘‘15,000,000 gallons’’.

20 (f) EFFECTIVE DATE.—The amendments made by this

21 section shall apply to fuel produced after December 31,

22 2007.
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1 SEC. 12313. EXTENSION OF SMALL ETHANOL PRODUCER

2 CREDIT.

3 Paragraph (1) of section 40(e) (relating to termi4 nation) is amended—

5 (1) in subparagraph (A), by inserting ‘‘(Decem6 ber 31, 2012, in the case of the credit allowed by rea7 son of subsection (a)(3))’’ after ‘‘December 31, 2010’’,

8 and

9 (2) in subparagraph (B), by inserting ‘‘(Janu10 ary 1, 2013, in the case of the credit allowed by rea11 son of subsection (a)(3))’’ after ‘‘January 1, 2011’’.

12 SEC. 12314. CREDIT FOR PRODUCERS OF FOSSIL FREE AL13 COHOL.

14 (a) IN GENERAL.—Subsection (a) of section 40 (relat15 ing to alcohol used as fuel), as amended by this Act, is

16 amended by striking ‘‘plus’’ at the end of paragraph (3),

17 by striking the period at the end of paragraph (4) and in18 serting ‘‘, plus’’, and by adding at the end the following

19 new paragraph:

20 ‘‘(5) the small fossil free alcohol producer cred21 it.’’.

22 (b) SMALL FOSSIL FREE ALCOHOL PRODUCER CRED23 IT.—Subsection (b) of section 40, as amended by this Act,

24 is amended by adding at the end the following new para25 graph:
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1 ‘‘(7) SMALL FOSSIL FREE ALCOHOL PRODUCER

2 CREDIT.—

3 ‘‘(A) IN GENERAL.—In addition to any

4 other credit allowed under this section, there

5 shall be allowed as a credit against the tax im6 posed by this chapter for the taxable year an

7 amount equal to 10 cents for each gallon of not

8 more than 60,000,000 gallons of qualified fossil

9 free alcohol production.

10 ‘‘(B) QUALIFIED FOSSIL FREE ALCOHOL

11 PRODUCTION.—For purposes of this section, the

12 term ‘qualified fossil free alcohol production’

13 means alcohol which is produced by an eligible

14 small fossil free alcohol producer at a fossil free

15 alcohol production facility and which during the

16 taxable year—

17 ‘‘(i) is sold by the taxpayer to another

18 person—

19 ‘‘(I) for use by such other person

20 in the production of a qualified alcohol

21 mixture in such other person’s trade or

22 business (other than casual off-farm

23 production),

24 ‘‘(II) for use by such other person

25 as a fuel in a trade or business, or
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1 ‘‘(III) who sells such alcohol at re2 tail to another person and places such

3 alcohol in the fuel tank of such other

4 person, or

5 ‘‘(ii) is used or sold by the taxpayer for

6 any purpose described in clause (i).

7 ‘‘(C) ADDITIONAL DISTILLATION EX8 CLUDED.—The qualified fossil free alcohol pro9 duction of any taxpayer for any taxable year

10 shall not include any alcohol which is purchased

11 by the taxpayer and with respect to which such

12 producer increases the proof of the alcohol by ad13 ditional distillation.’’.

14 (c) ELIGIBLE SMALL FOSSIL FREE ALCOHOL PRO15 DUCER.—Section 40 is amended by adding at the end the

16 following new subsection:

17 ‘‘(i) DEFINITIONS AND SPECIAL RULES FOR SMALL

18 FOSSIL FREE ALCOHOL PRODUCER.—For purposes of this

19 section—

20 ‘‘(1) IN GENERAL.—The term ‘eligible small fos21 sil free alcohol producer’ means a person, who at all

22 times during the taxable year, has a productive ca23 pacity for alcohol from all fossil free alcohol produc24 tion facilities of the taxpayer which is not in excess

25 of 60,000,000 gallons.
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1 ‘‘(2) FOSSIL FREE ALCOHOL PRODUCTION FACIL2 ITY.—The term ‘fossil free alcohol production facility’

3 means any facility at which 90 percent of the energy

4 used in the production of alcohol is produced from

5 biomass (as defined in section 45K(c)(3)).

6 ‘‘(3) AGGREGATION RULE.—For purposes of the

7 60,000,000 gallon limitation under paragraph (1)

8 and subsection (b)(7)(A), all members of the same

9 controlled group of corporations (within the meaning

10 of section 267(f)) and all persons under common con11 trol (within the meaning of section 52(b) but deter12 mined by treating an interest of more than 50 percent

13 as a controlling interest) shall be treated as 1 person.

14 ‘‘(4) PARTNERSHIP, S CORPORATIONS, AND

15 OTHER PASS-THRU ENTITIES.—In the case of a part16 nership, trust, S corporation, or other pass-thru enti17 ty, the limitation contained in paragraph (1) shall be

18 applied at the entity level and at the partner or simi19 lar level.

20 ‘‘(5) ALLOCATION.—For purposes of this sub21 section, in the case of a facility in which more than

22 1 person has an interest, productive capacity shall be

23 allocated among such persons in such manner as the

24 Secretary may prescribe.
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1 ‘‘(6) REGULATIONS.—The Secretary may pre2 scribe such regulations as may be necessary to prevent

3 the credit provided for in subsection (a)(5) from di4 rectly or indirectly benefitting any person with a di5 rect or indirect productive capacity of more than

6 60,000,000 gallons of alcohol from fossil free alcohol

7 production facilities during the taxable year.

8 ‘‘(7) ALLOCATION OF SMALL FOSSIL FREE ALCO9 HOL PRODUCER CREDIT TO PATRONS OF COOPERA10 TIVE.—Rules similar to the rules under subsection

11 (g)(6) shall apply for purposes of this subsection.’’.

12 (d) ALCOHOL NOT USE D AS A FUEL, ETC.—

13 (1) IN GENERAL.—Paragraph (3) of section

14 40(d), as amended by this Act, is amended by redesig15 nating subparagraph (E) as subparagraph (F) and

16 by inserting after subparagraph (D) the following

17 new subparagraph:

18 ‘‘(E) SMALL FOSSIL FREE ALCOHOL PRO19 DUCER CREDIT.—If—

20 ‘‘(i) any credit is allowed under sub21 section (a)(5), and

22 ‘‘(ii) any person does not use such fuel

23 for a purpose described in subsection

24 (b)(7)(B),
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1 then there is hereby imposed on such person a

2 tax equal to 10 cents for each gallon of such alco3 hol.’’.

4 (2) CONFORMING AMENDMENT.—Subparagraph

5 (F) of section 40(d)(3), as redesignated by paragraph

6 (1) and amended by this Act, is amended by striking

7 ‘‘or (D)’’ and inserting ‘‘(D), or (E)’’.

8 (e) ALCOHOL PRODUCED IN THE UNITED STATES.—

9 Section 40(d)(6), as added by this Act, is amended—

10 (1) by inserting ‘‘or small fossil free alcohol pro11 ducer credit’’ after ‘‘cellulosic alcohol producer cred12 it’’, and

13 (2) by inserting ‘‘AND FOSSIL FREE’’ after

14 ‘‘CELLULOSIC’’ in the heading.

15 (f) TERMINATION.—Paragraph (1) of section 40(e), as

16 amended by this Act, is amended—

17 (1) in subparagraph (A), by inserting ‘‘, and De18 cember 31, 2011, in the case of the credit allowed by

19 reason of subsection (a)(5)’’ after ‘‘subsection (a)(3)’’,

20 and

21 (2) in subparagraph (B), by inserting ‘‘, and

22 January 1, 2012, in the case of the credit allowed by

23 reason of subsection (a)(5)’’ after ‘‘subsection (a)(3)’’.
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1 (g) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to fuel produced after December 31,

3 2007.

4 SEC. 12315. MODIFICATION OF ALCOHOL CREDIT.

5 (a) INCOME TAX CREDIT.—Subsection (h) of section

6 40 (relating to reduced credit for ethanol blenders) is

7 amended by adding at the end the following new paragraph:

8 ‘‘(3) REDUCED AMOUNT AFTER SALE OF

9 7,500,000,000 GALLONS.—

10 ‘‘(A) IN GENERAL.—In the case of any cal11 endar year beginning after the date described in

12 subparagraph (B), the last row in the table in

13 paragraph (2) shall be applied by substituting

14 ‘46 cents’ for ‘51 cents’.

15 ‘‘(B) DATE DESCRIBED.—The date described

16 in this subparagraph is the first date on which

17 7,500,000,000 gallons of ethanol (including cel18 lulosic ethanol) have been produced in or im19 ported into the United States after the date of

20 the enactment of this paragraph, as certified by

21 the Secretary, in consultation with the Adminis22 trator of the Environmental Protection Agency.’’.

23 (b) EXCISE TAX CREDIT.—

24 (1) IN GENERAL.—Paragraph (2) of section

25 6426(b) (relating to alcohol fuel mixture credit) is
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1 amended by adding at the end the following new sub2 paragraph:

3 ‘‘(C) REDUCED AMOUNT AFTER SALE OF

4 7,500,000,000 GALLONS.—In the case of any alco5 hol fuel mixture produced in a calendar year be6 ginning after the date described in section

7 40(h)(3)(B), subparagraph (A) shall be applied

8 by substituting ‘46 cents’ for ‘51 cents’.’’.

9 (2) CONFORMING AMENDMENT.—Subparagraph

10 (A) of section 6426(b)(2) is amended by striking ‘‘sub11 paragraph (B)’’ and inserting ‘‘subparagraphs (B)

12 and (C)’’.

13 (c) EFFECTIVE DATE.—The amendments made by this

14 section shall take effect on the date of the enactment of this

15 Act.

16 SEC. 12316. CALCULATION OF VOLUME OF ALCOHOL FOR

17 FUEL CREDITS.

18 (a) IN GENERAL.—Paragraph (4) of section 40(d) (re19 lating to volume of alcohol) is amended by striking ‘‘5 per20 cent’’ and inserting ‘‘2 percent’’.

21 (b) CONFORMING AMENDMENT FOR EXCISE TAX CRED22 IT.—Section 6426(b) (relating to alcohol fuel mixture cred23 it) is amended by redesignating paragraph (5) as para24 graph (6) and by inserting after paragraph (4) the fol25 lowing new paragraph:
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1 ‘‘(5) VOLUMEOF ALCOHOL.—For purposes of de2 termining under subsection (a) the number of gallons

3 of alcohol with respect to which a credit is allowable

4 under subsection (a), the volume of alcohol shall in5 clude the volume of any denaturant (including gaso6 line) which is added under any formulas approved by

7 the Secretary to the extent that such denaturants do

8 not exceed 2 percent of the volume of such alcohol (in9 cluding denaturants).’’.

10 (c) EFFECTIVE DATE.—The amendments made by this

11 section shall apply to fuel sold or used after December 31,

12 2007.

13 SEC. 12317. ETHANOL TARIFF EXTENSION.

14 Headings 9901.00.50 and 9901.00.52 of the Har15 monized Tariff Schedule of the United States are each

16 amended in the effective period column by striking ‘‘1/1/

17 2009’’ and inserting ‘‘1/1/2011’’.

18 SEC. 12318. LIMITATIONS ON, AND REDUCTIONS OF, DUTY

19 DRAWBACK ON CERTAIN IMPORTED ETH20 ANOL.

21 (a) IN GENERAL.—Section 313(p) of the Tariff Act of

22 1930 (19 U.S.C. 1313(p)) is amended by adding at the end

23 the following new paragraph:

24 ‘‘(5) SPECIAL RULES FOR ETHYL ALCOHOL.—For

25 purposes of this subsection, an exported article that
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1 does not contain ethyl alcohol or a mixture of ethyl

2 alcohol shall not be treated as the same kind and

3 quality as a qualified article that does contain ethyl

4 alcohol or a mixture of ethyl alcohol.’’.

5 (b) LIMITATIONS ON, AND REDUCTIONS OF, DRAW6 BACKS.—Section 313 of the Tariff Act of 1930 (19 U.S.C.

7 1313) is amended by adding at the end the following new

8 subsection:

9 ‘‘(z) LIMITATIONS ON, AND REDUCTIONS OF, DRAW10 BACKS.—

11 ‘‘(1) LIMITATIONS.—

12 ‘‘(A) IN GENERAL.—Ethyl alcohol or mix13 ture containing ethyl alcohol described in sub14 paragraph (B) may be treated as being of the

15 same kind and quality under subsection (b) of

16 this section or may be treated as being commer17 cially interchangeable with any other ethyl alco18 hol or mixture containing ethyl alcohol under

19 subsection (j)(2) of this section, only if the other

20 ethyl alcohol or mixture—

21 ‘‘(i) if imported, is subject to the addi22 tional duty under subheading 9901.00.50 of

23 the Harmonized Tariff Schedule of the

24 United States; or
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1 ‘‘(ii) if domestic, is suitable for use as

2 a fuel or in a mixture to be used as a fuel

3 as described in such subheading 9901.00.50.

4 ‘‘(B) ETHYL ALCOHOL OR MIXTURECON5 TAINING ETHYL ALCOHOL DESCRIBED.—Ethyl

6 alcohol or mixture containing ethyl alcohol de7 scribed in this subparagraph means—

8 ‘‘(i) ethyl alcohol classifiable under

9 subheading 2207.10.60 or 2207.20.00 of the

10 Harmonized Tariff Schedule of the United

11 States, or

12 ‘‘(ii) a mixture containing ethyl alco13 hol classifiable under heading 2710 or 3824

14 of the Harmonized Tariff Schedule of the

15 United States,

16 which, if imported would be subject to additional

17 duty under subheading 9901.00.50 of such Sched18 ule.

19 ‘‘(2) REDUCTION OF DRAWBACK.—For purposes

20 of subsections (b), (j)(2), and (p) of this section, the

21 amount of the refund as drawback under this section

22 shall be reduced by an amount equal to any Federal

23 tax credit or refund of any Federal tax paid on the

24 merchandise with respect to which the drawback is

25 claimed.’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section apply to articles exported on or after the date that

3 is 15 days after the date of the enactment of this Act.

4 PART III—BIODIESEL AND RENEWABLE DIESEL

5 FUEL

6 SEC. 12321. EXTENSION AND MODIFICATION OF CREDIT

7 FOR BIODIESEL AND RENEWABLE DIESEL

8 USED AS FUEL.

9 (a) EXTENSION.—

10 (1) INCOME TAX CREDITS FOR BIODIESEL AND

11 RENEWABLE DIESEL AND SMALL AGRI-BIODIESEL

12 PRODUCER CREDIT.—Section 40A(g) (relating to ter13 mination) is amended by striking ‘‘December 31,

14 2008’’ and inserting ‘‘December 31, 2010 (December

15 31, 2012, in the case of the credit allowed by reason

16 of subsection (a)(3))’’.

17 (2) EXCISETAX CREDIT.—Section 6426(c)(6)

18 (relating to termination) is amended by striking

19 ‘‘2008’’ and inserting ‘‘2010’’.

20 (3) FUELS NOT USED FOR TAXABLE PUR21 POSES.—Section 6427(e)(5)(B) (relating to termi22 nation) is amended by striking ‘‘2008’’ and inserting

23 ‘‘2010’’.
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1 (b) MODIFICATION OF CREDIT FOR RENEWABLE DIE2 SEL.—Section 40A(f) (relating to renewable diesel) is

3 amended by adding at the end the following new paragraph:

4 ‘‘(4) SPECIAL RULE FOR CO-PROCESSED RENEW5 ABLE DIESEL.—In the case of a taxpayer which pro6 duces renewable diesel through the co-processing of

7 biomass and petroleum at any facility, this subsection

8 shall not apply to so much of the renewable diesel

9 produced at such facility and sold or used during the

10 taxable year in a mixture described in subsection

11 (b)(1)(B) as exceeds 60,000,000 gallons.’’.

12 (c) MODIFICATION RELATING TO DEFINITION OF AGRI13 BIODIESEL.—Paragraph (2) of section 40A(d) (relating to

14 agri-biodiesel) is amended by striking ‘‘and mustard seeds’’

15 and inserting ‘‘mustard seeds, and camelina’’.

16 (d) ELIGIBILITY OF CERTAIN AVIATION FUEL.—Sec17 tion 40A(f)(3) (defining renewable diesel) is amended by

18 adding at the end the following new flush sentence:

19 ‘‘The term ‘renewable diesel’ also means fuel derived

20 from biomass (as defined in section 45K(c)(3)) using

21 a thermal depolymerization process which meets the

22 requirements of a Department of Defense specification

23 for military jet fuel or an American Society of Test24 ing and Materials specification for aviation turbine

25 fuel.’’.
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1 (e) EFFECTIVE DATES.—The amendments made by

2 this section shall apply to fuel sold or used after the date

3 of the enactment of this Act.

4 SEC. 12322. TREATMENT OF QUALIFIED ALCOHOL FUEL

5 MIXTURES AND QUALIFIED BIODIESEL FUEL

6 MIXTURES AS TAXABLE FUELS.

7 (a) IN GENERAL.—

8 (1) QUALIFIED ALCOHOL FUEL MIXTURES.—

9 Paragraph (2) of section 4083(a) (relating to gaso10 line) is amended—

11 (A) by striking ‘‘and’’ at the end of sub12 paragraph (A),

13 (B) by redesignating subparagraph (B) as

14 subparagraph (C), and

15 (C) by inserting after subparagraph (A) the

16 following new subparagraph:

17 ‘‘(B) includes any qualified mixture (as de18 fined in section 40(b)(1)(B)), and’’.

19 (2) QUALIFIED BIODIESEL FUEL MIXTURES.—

20 Subparagraph (A) of section 4083(a)(3) (relating to

21 diesel fuel) is amended by striking ‘‘and’’ at the end

22 of clause (ii), by redesignating clause (iii) as clause

23 (iv), and inserting after clause (ii) the following new

24 clause:
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1 ‘‘(iii) any qualified biodiesel mixture

2 (as defined in section 40A(b)(1)(B)), and’’.

3 (b) MODIFICATION OF BIODIESEL CERTIFICATION RE4 QUIREMENT.—Paragraph (4) of section 40A(b) is amended

5 by striking ‘‘which identifies’’ and all that follows and in6 serting ‘‘which—

7 ‘‘(A) identifies the product produced and

8 the percentage of biodiesel and agri-biodiesel in

9 the product, and

10 ‘‘(B) documents that the biodiesel was inde11 pendently tested and meets the requirements of

12 ASTM D6751.’’.

13 (c) INFORMATION REPORTING REQUIREMENT FOR

14 PRODUCERS OF QUALIFIED MIXTURES.—Section 4101(d)

15 (relating to information reporting) is amended to read as

16 follows:

17 ‘‘(d) INFORMATION REPORTING.—The Secretary—

18 ‘‘(1) may require—

19 ‘‘(A) information reporting by any person

20 registered under this section, and

21 ‘‘(B) information reporting by such other

22 persons as the Secretary deems necessary to

23 carry out this part, and

24 ‘‘(2) shall require information reporting by any

25 person registered under this section and producing
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1 any qualified mixture (as defined in section

2 40(b)(1)(B)) or any qualified biodiesel mixture (as

3 defined in section 40A(b)(1)(B)).

4 Any person who is required to report under this subsection

5 and who has 25 or more reportable transactions in a month

6 shall file such report in electronic format.’’.

7 (d) EFFECTIVE DATE.—The amendments made by this

8 section shall apply to fuels removed, entered, or sold after

9 December 31, 2007.

10 PART IV—ALTERNATIVE FUEL

11 SEC. 12331. EXTENSION AND MODIFICATION OF ALTER12 NATIVE FUEL CREDIT.

13 (a) EXTENSION.—

14 (1) ALTERNATIVE FUEL CREDIT.—Paragraph (4)

15 of section 6426(d) (relating to alternative fuel credit)

16 is amended by striking ‘‘September 30, 2009’’ and in17 serting ‘‘December 31, 2010’’.

18 (2) ALTERNATIVE FUEL MIXTURE CREDIT.—

19 Paragraph (3) of section 6426(e) (relating to alter20 native fuel mixture credit) is amended by striking

21 ‘‘September 30, 2009’’ and inserting ‘‘December 31,

22 2010’’.

23 (3) PAYMENTS.—Subparagraph (C) of section

24 6427(e)(5) (relating to termination) is amended by
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1 striking ‘‘September 30, 2009’’ and inserting ‘‘Decem2 ber 31, 2010’’.

3 (b) MODIFICATIONS.—

4 (1) ALTERNATIVE FUEL TO INCLUDE COM5 PRESSED OR LIQUIFIED BIOMASS GAS.—Paragraph

6 (2) of section 6426(d) (relating to alternative fuel

7 credit) is amended by striking ‘‘and’’ at the end of

8 subparagraph (E), by redesignating subparagraph

9 (F) as subparagraph (G), and by inserting after sub10 paragraph (E) the following new subparagraph:

11 ‘‘(F) compressed or liquefied biomass gas,

12 and’’.

13 (2) CREDIT ALLOWED FOR AVIATION USE OF

14 FUEL.—Paragraph (1) of section 6426(d) is amended

15 by inserting ‘‘sold by the taxpayer for use as a fuel

16 in aviation,’’ after ‘‘motorboat,’’.

17 (c) CARBON CAPTURE REQUIREMENT FOR CERTAIN

18 FUELS.—

19 (1) IN GENERAL.—Subsection (d) of section

20 6426, as amended by subsection (a), is amended by

21 redesignating paragraph (4) as paragraph (5) and by

22 inserting after paragraph (3) the following new para23 graph:

24 ‘‘(4) CARBON CAPTURE REQUIREMENT.—
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1 ‘‘(A) IN GENERAL.—The requirements of

2 this paragraph are met if the fuel is certified,

3 under such procedures as required by the Sec4 retary, as having been derived from coal pro5 duced at a gasification facility which separates

6 and sequesters not less than the applicable per7 centage of such facility’s total carbon dioxide

8 emissions.

9 ‘‘(B) APPLICABLE PERCENTAGE.—For pur10 poses of subparagraph (A), the applicable per11 centage is—

12 ‘‘(i) 50 percent in the case of fuel pro13 duced after the date of the enactment of this

14 paragraph and on or before the earlier of—

15 ‘‘(I) the date the Secretary makes

16 a determination under subparagraph

17 (C), or

18 ‘‘(II) December 30, 2010, and

19 ‘‘(ii) 75 percent in the case of fuel pro20 duced after the date on which the applicable

21 percentage under clause (i) ceases to apply.

22 ‘‘(C) DETERMINATION TO INCREASE APPLI23 CABLE PERCENTAGE BEFORE DECEMBER 31,

24 2010.—If the Secretary, after considering the rec25 ommendations of the Carbon Sequestration Ca-
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1 pability Panel, finds that the applicable percent2 age under subparagraph (B) should be 75 per3 cent for fuel produced before December 31, 2010,

4 the Secretary shall make a determination under

5 this subparagraph. Any determination made

6 under this subparagraph shall be made not later

7 than 30 days after the Secretary receives from

8 the Carbon Sequestration Panel the report re9 quired under section 331(c)(3)(D) of the Heart10 land, Habitat, Harvest, and Horticulture Act of

11 2007.’’.

12 (2) CONFORMING AMENDMENT.—Subparagraph

13 (E) of section 6426(d)(2) is amended by inserting

14 ‘‘which meets the requirements of paragraph (4) and

15 which is’’ after ‘‘any liquid fuel’’.

16 (3) CARBON SEQUESTRATION CAPABILITY

17 PANEL.—

18 (A) ESTABLISHMENT OF PANEL.—There is

19 established a panel to be known as the ‘‘Carbon

20 Sequestration Capability Panel’’ (hereafter in

21 this paragraph referred to as the ‘‘Panel’’).

22 (B) MEMBERSHIP.—The Panel shall be

23 composed of—

24 (i) 1 representative from the National

25 Academy of Sciences,
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1 (ii) 1 representative from the Univer2 sity of Kentucky Center for Applied Energy

3 Research, and

4 (iii) 1 individual appointed jointly by

5 the representatives under clauses (i) and

6 (ii).

7 (C) STUDY.—The Panel shall study the ap8 propriate percentage of carbon dioxide for sepa9 ration and sequestration under section

10 6426(d)(4) of the Internal Revenue Code of 1986

11 consistent with the purposes of such section. The

12 panel shall consider whether it is feasible to sep13 arate and sequester 75 percent of the carbon di14 oxide emissions of a facility, including costs and

15 other factors associated with separating and se16 questering such percentage of carbon dioxide

17 emissions.

18 (D) REPORT.—Not later than 6 months

19 after the date of the enactment of this Act, the

20 Panel shall report to the Secretary of Treasury,

21 the Committee on Finance of the Senate, and the

22 Committee on Ways and Means of the House of

23 Representatives on the study under subpara24 graph (C).
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1 (d) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to fuel sold or used after the date of the

3 enactment of this Act.

4 SEC. 12332. EXTENSION OF ALTERNATIVE FUEL VEHICLE

5 REFUELING PROPERTY CREDIT.

6 Paragraph (2) of section 30C(g) (relating to termi7 nation) is amended by striking ‘‘December 31, 2009’’ and

8 inserting ‘‘December 31, 2010’’.

9 Subtitle D—Agricultural Provisions

10 SEC. 12401. INCREASE IN LOAN LIMITS ON AGRICULTURAL

11 BONDS.

12 (a) IN GENERAL.—Subparagraph (A) of section

13 147(c)(2) (relating to exception for first-time farmers) is

14 amended by striking ‘‘$250,000’’ and inserting ‘‘$450,000’’.

15 (b) INFLATION ADJUSTMENT.—Section 147(c)(2) is

16 amended by adding at the end the following new subpara17 graph:

18 ‘‘(H) ADJUSTMENTS FOR INFLATION.—In

19 the case of any calendar year after 2008, the dol20 lar amount in subparagraph (A) shall be in21 creased by an amount equal to—

22 ‘‘(i) such dollar amount, multiplied by

23 ‘‘(ii) the cost-of-living adjustment de24 termined under section 1(f)(3) for the cal25 endar year, determined by substituting ‘cal-
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1 endar year 2007’ for ‘calendar year 1992’

2 in subparagraph (B) thereof.

3 If any amount as increased under the preceding

4 sentence is not a multiple of $100, such amount

5 shall be rounded to the nearest multiple of

6 $100.’’.

7 (c) MODIFICATION OF SUBSTANTIAL FARMLAND DEFI8 NITION.—Section 147(c)(2)(E) (defining substantial farm9 land) is amended by striking ‘‘unless’’ and all that follows

10 through the period and inserting ‘‘unless such parcel is

11 smaller than 30 percent of the median size of a farm in

12 the county in which such parcel is located.’’.

13 (d) CONFORMING AMENDMENT.—Section

14 147(c)(2)(C)(i)(II) is amended by striking ‘‘$250,000’’ and

15 inserting ‘‘the amount in effect under subparagraph (A)’’.

16 (e) EFFECTIVE DATE.—The amendments made by this

17 section shall apply to bonds issued after the date of the en18 actment of this Act.

19 SEC. 12402. MODIFICATION OF INSTALLMENT SALE RULES

20 FOR CERTAIN FARM PROPERTY.

21 (a) IN GENERAL.—Section 453(i) (relating to recogni22 tion of recapture income in year of disposition) is amended

23 by adding at the end the following new paragraph:

24 ‘‘(3) EXCEPTION FOR CERTAIN FARM PROP25 ERTY.—Paragraph (1) shall not apply to any install-
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1 ment sale of any single purpose agricultural or horti2 cultural structure or any tree or vine bearing fruit or

3 nuts eligible for classification as 10-year property

4 under section 168(e)(3)(D).’’.

5 (b) EFFECTIVE DATE.—The amendment made by this

6 section shall apply to installment sales occurring after the

7 date of the enactment of this Act.

8 SEC. 12403. ALLOWANCE OF SECTION 1031 TREATMENT FOR

9 EXCHANGES INVOLVING CERTAIN MUTUAL

10 DITCH, RESERVOIR, OR IRRIGATION COM11 PANY STOCK.

12 (a) IN GENERAL.—Section 1031 (relating to exchange

13 of property held for productive use or investment) is amend14 ed by adding at the end the following new subsection:

15 ‘‘(i) SPECIAL RULES FOR MUTUAL DITCH, RES16 ERVOIR, OR IRRIGATION COMPANY STOCK.—For purposes

17 of subsection (a)(2)(B), the term ‘stocks’ shall not include

18 shares in a mutual ditch, reservoir, or irrigation company

19 if at the time of the exchange—

20 ‘‘(1) the mutual ditch, reservoir, or irrigation

21 company is an organization described in section

22 501(c)(12)(A) (determined without regard to the per23 centage of its income that is collected from its mem24 bers for the purpose of meeting losses and expenses),

25 and
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1 ‘‘(2) the shares in such company have been recog2 nized by the highest court of the State in which such

3 company was organized or by applicable State statute

4 as constituting or representing real property or an

5 interest in real property.’’.

6 (b) EFFECTIVE DATE.—The amendment made by this

7 section shall apply to exchanges completed after the date

8 of the enactment of this Act.

9 SEC. 12404. CREDIT TO HOLDERS OF RURAL RENAISSANCE

10 BONDS.

11 (a) IN GENERAL.—Subpart H of part IV of subchapter

12 A of chapter 1 (relating to credits against tax) is amended

13 by adding at the end the following new section:

14 ‘‘SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE

15 BONDS.

16 ‘‘(a) ALLOWANCEOF CREDIT.—In the case of a tax17 payer who holds a rural renaissance bond on 1 or more

18 credit allowance dates of the bond occurring during any

19 taxable year, there shall be allowed as a credit against the

20 tax imposed by this chapter for the taxable year an amount

21 equal to the sum of the credits determined under subsection

22 (b) with respect to such dates.

23 ‘‘(b) AMOUNT OF CREDIT.—

24 ‘‘(1) IN GENERAL.—The amount of the credit de25 termined under this subsection with respect to any
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1 credit allowance date for a rural renaissance bond is

2 25 percent of the annual credit determined with re3 spect to such bond.

4 ‘‘(2) ANNUAL CREDIT.—The annual credit deter5 mined with respect to any rural renaissance bond is

6 the product of—

7 ‘‘(A) the credit rate determined by the Sec8 retary under paragraph (3) for the day on which

9 such bond was sold, multiplied by

10 ‘‘(B) the outstanding face amount of the

11 bond.

12 ‘‘(3) DETERMINATION.—For purposes of para13 graph (2), with respect to any rural renaissance bond,

14 the Secretary shall determine daily or caused to be

15 determined daily a credit rate which shall apply to

16 the first day on which there is a binding, written con17 tract for the sale or exchange of the bond. The credit

18 rate for any day is the credit rate which the Sec19 retary or the Secretary’s designee estimates will per20 mit the issuance of rural renaissance bonds with a

21 specified maturity or redemption date without dis22 count and without interest cost to the qualified issuer.

23 ‘‘(4) CREDIT ALLOWANCE DATE.—For purposes

24 of this section, the term ‘credit allowance date’

25 means—
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1 ‘‘(A) March 15,

2 ‘‘(B) June 15,

3 ‘‘(C) September 15, and

4 ‘‘(D) December 15.

5 Such term also includes the last day on which the

6 bond is outstanding.

7 ‘‘(5) SPECIAL RULE FOR ISSUANCE AND REDEMP8 TION.—In the case of a bond which is issued during

9 the 3-month period ending on a credit allowance date,

10 the amount of the credit determined under this sub11 section with respect to such credit allowance date

12 shall be a ratable portion of the credit otherwise deter13 mined based on the portion of the 3-month period

14 during which the bond is outstanding. A similar rule

15 shall apply when the bond is redeemed or matures.

16 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—The

17 credit allowed under subsection (a) for any taxable year

18 shall not exceed the excess of—

19 ‘‘(1) the sum of the regular tax liability (as de20 fined in section 26(b)) plus the tax imposed by section

21 55, over

22 ‘‘(2) the sum of the credits allowable under this

23 part (other than subpart C, section 1400N(l), and this

24 section).
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1 ‘‘(d) RURAL RENAISSANCE BOND.—For purposes of

2 this section—

3 ‘‘(1) IN GENERAL.—The term ‘rural renaissance

4 bond’ means any bond issued as part of an issue if—

5 ‘‘(A) the bond is issued by a qualified issuer

6 pursuant to an allocation by the Secretary to

7 such issuer of a portion of the national rural

8 renaissance bond limitation under subsection

9 (f)(2),

10 ‘‘(B) 95 percent or more of the proceeds

11 from the sale of such issue are to be used for cap12 ital expenditures incurred by qualified borrowers

13 for 1 or more qualified projects,

14 ‘‘(C) the qualified issuer designates such

15 bond for purposes of this section and the bond is

16 in registered form,

17 ‘‘(D) the issue meets the requirements of

18 subsection (h), and

19 ‘‘(E) such bond is not a federally guaran20 teed bond (within the meaning of section

21 149(b)(2)).

22 ‘‘(2) QUALIFIED PROJECT; SPECIAL USE

23 RULES.—
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1 ‘‘(A) IN GENERAL.—The term ‘qualified

2 project’ means 1 or more projects described in

3 subparagraph (B) located in a rural area.

4 ‘‘(B) PROJECTS DESCRIBED.—A project de5 scribed in this subparagraph is a project eligible

6 for assistance under—

7 ‘‘(i) the utilities programs described in

8 section 381E(d)(2) of the Consolidated

9 Farm and Rural Development Act (7

10 U.S.C. 2009d(d)(2)),

11 ‘‘(ii) the distance learning or telemedi12 cine programs authorized pursuant to chap13 ter 1 of subtitle D of title XXIII of the

14 Food, Agriculture, Conservation, and Trade

15 Act of 1990 (7 U.S.C. 950aaa et seq.),

16 ‘‘(iii) the rural electric programs au17 thorized pursuant to the Rural Electrifica18 tion Act of 1936 (7 U.S.C. 901 et seq.),

19 ‘‘(iv) the rural telephone programs au20 thorized pursuant to the Rural Electrifica21 tion Act of 1936 (7 U.S.C. 901 et seq.),

22 ‘‘(v) the broadband access programs

23 authorized pursuant to title VI of the Rural

24 Electrification Act of 1936 (7 U.S.C. 950bb

25 et seq.), and
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1 ‘‘(vi) the rural community facility pro2 grams as described in section 381E(d)(1) of

3 the Consolidated Farm and Rural Develop4 ment Act (7 U.S.C. 2009d(d)(1)).

5 ‘‘(C) REFINANCING RULES.—For purposes

6 of paragraph (1)(B), a qualified project may be

7 refinanced with proceeds of a rural renaissance

8 bond only if the indebtedness being refinanced

9 (including any obligation directly or indirectly

10 refinanced by such indebtedness) was originally

11 incurred by a qualified borrower after the date

12 of the enactment of this section.

13 ‘‘(D) REIMBURSEMENT.—For purposes of

14 paragraph (1)(B), a rural renaissance bond may

15 be issued to reimburse a qualified borrower for

16 amounts paid after the date of the enactment of

17 this section with respect to a qualified project,

18 but only if—

19 ‘‘(i) prior to the payment of the origi20 nal expenditure, the qualified borrower de21 clared its intent to reimburse such expendi22 ture with the proceeds of a rural renais23 sance bond,

24 ‘‘(ii) not later than 60 days after pay25 ment of the original expenditure, the quali-
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1 fied issuer adopts an official intent to reim2 burse the original expenditure with such

3 proceeds, and

4 ‘‘(iii) the reimbursement is made not

5 later than 18 months after the date the

6 original expenditure is paid.

7 ‘‘(E) TREATMENT OF CHANGES IN USE.—

8 For purposes of paragraph (1)(B), the proceeds

9 of an issue shall not be treated as used for a

10 qualified project to the extent that a qualified

11 borrower or qualified issuer takes any action

12 within its control which causes such proceeds not

13 to be used for a qualified project. The Secretary

14 shall prescribe regulations specifying remedial

15 actions that may be taken (including conditions

16 to taking such remedial actions) to prevent an

17 action described in the preceding sentence from

18 causing a bond to fail to be a rural renaissance

19 bond.

20 ‘‘(F) TREATMENT OF OTHER SUBSIDIES.—

21 For purposes of subparagraph (B), a qualified

22 project does not include any portion of a project

23 financed by grants or subsidized financing pro24 vided (directly or indirectly) under a Federal

25 program, including any State or local obligation
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1 used to provide financing for such portion the

2 interest on which is exempt from tax under sec3 tion 103.

4 ‘‘(e) MATURITY LIMITATIONS.—

5 ‘‘(1) DURATION OF TERM.—A bond shall not be

6 treated as a rural renaissance bond if the maturity

7 of such bond exceeds the maximum term determined

8 by the Secretary under paragraph (2) with respect to

9 such bond.

10 ‘‘(2) MAXIMUM TERM.—During each calendar

11 month, the Secretary shall determine the maximum

12 term permitted under this paragraph for bonds issued

13 during the following calendar month. Such maximum

14 term shall be the term which the Secretary estimates

15 will result in the present value of the obligation to

16 repay the principal on the bond being equal to 50

17 percent of the face amount of such bond. Such present

18 value shall be determined without regard to the re19 quirements of paragraph (3) and using as a discount

20 rate the average annual interest rate of tax-exempt

21 obligations having a term of 10 years or more which

22 are issued during the month. If the term as so deter23 mined is not a multiple of a whole year, such term

24 shall be rounded to the next highest whole year.
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1 ‘‘(3) RATABLEPRINCIPAL AMORTIZATION RE2 QUIRED.—A bond shall not be treated as a rural ren3 aissance bond unless it is part of an issue which pro4 vides for an equal amount of principal to be paid by

5 the qualified issuer during each calendar year that

6 the issue is outstanding.

7 ‘‘(f) LIMITATION ON AMOUNT OF BONDS DES8 IGNATED.—

9 ‘‘(1) NATIONAL LIMITATION.—There is a na10 tional rural renaissance bond limitation of

11 $400,000,000.

12 ‘‘(2) ALLOCATION BY SECRETARY.—

13 ‘‘(A) IN GENERAL.—In accordance with

14 subparagraph (B), the Secretary shall allocate

15 the amount described in paragraph (1) among at

16 least 20 qualified projects, or such lesser number

17 of qualified projects with proper applications

18 filed after 12 months after the adoption of the se19 lection process under subparagraph (B).

20 ‘‘(B) SELECTION PROCESS.—In consulta21 tion with the Secretary of Agriculture, the Sec22 retary shall adopt a process to select projects de23 scribed in subparagraph (A). Under such proc24 ess, the Secretary shall not allocate more than 15
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1 percent of the allocation under subparagraph (A)

2 to qualified projects within a single State.

3 ‘‘(g) CREDIT INCLUDED IN GROSS INCOME.—Gross in4 come includes the amount of the credit allowed to the tax5 payer under this section (determined without regard to sub6 section (c)) and the amount so included shall be treated as

7 interest income.

8 ‘‘(h) SPECIAL RULES RELATING TO EXPENDITURES.—

9 ‘‘(1) IN GENERAL.—An issue shall be treated as

10 meeting the requirements of this subsection if, as of

11 the date of issuance, the qualified issuer reasonably

12 expects—

13 ‘‘(A) at least 95 percent of the proceeds from

14 the sale of the issue are to be spent for 1 or more

15 qualified projects within the 5-year period begin16 ning on the date of issuance of the rural renais17 sance bond,

18 ‘‘(B) a binding commitment with a third

19 party to spend at least 10 percent of the proceeds

20 from the sale of the issue will be incurred within

21 the 6-month period beginning on the date of

22 issuance of the rural renaissance bond or, in the

23 case of a rural renaissance bond the proceeds of

24 which are to be loaned to 2 or more qualified

25 borrowers, such binding commitment will be in-
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1 curred within the 6-month period beginning on

2 the date of the loan of such proceeds to a quali3 fied borrower, and

4 ‘‘(C) such projects will be completed with

5 due diligence and the proceeds from the sale of

6 the issue will be spent with due diligence.

7 ‘‘(2) EXTENSION OF PERIOD.—Upon submission

8 of a request prior to the expiration of the period de9 scribed in paragraph (1)(A), the Secretary may ex10 tend such period if the qualified issuer establishes that

11 the failure to satisfy the 5-year requirement is due to

12 reasonable cause and the related projects will continue

13 to proceed with due diligence.

14 ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF

15 BOND PROCEEDS WITHIN 5 YEARS.—To the extent that

16 less than 95 percent of the proceeds of such issue are

17 expended by the close of the 5-year period beginning

18 on the date of issuance (or if an extension has been

19 obtained under paragraph (2), by the close of the ex20 tended period), the qualified issuer shall redeem all of

21 the nonqualified bonds within 90 days after the end

22 of such period. For purposes of this paragraph, the

23 amount of the nonqualified bonds required to be re24 deemed shall be determined in the same manner as

25 under section 142.
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1 ‘‘(i) SPECIAL RULES RELATING TO ARBITRAGE.—A

2 bond which is part of an issue shall not be treated as a

3 rural renaissance bond unless, with respect to the issue of

4 which the bond is a part, the qualified issuer satisfies the

5 arbitrage requirements of section 148 with respect to pro6 ceeds of the issue.

7 ‘‘(j) DEFINITIONS AND SPECIAL RULES RELATING TO

8 ISSUERS AND BORROWERS.—For purposes of this section—

9 ‘‘(1) QUALIFIED ISSUER.—The term ‘qualified

10 issuer’ means—

11 ‘‘(A) a rural renaissance bond lender,

12 ‘‘(B) a cooperative electric company, or

13 ‘‘(C) a governmental body.

14 ‘‘(2) QUALIFIED BORROWER.—The term ‘quali15 fied borrower’ means—

16 ‘‘(A) a mutual or cooperative electric com17 pany described in section 501(c)(12) or

18 1381(a)(2)(C), or

19 ‘‘(B) a governmental body.

20 ‘‘(3) RURAL RENAISSANCE BOND LENDER.—The

21 term ‘rural renaissance bond lender’ means a lender

22 which is a cooperative which is owned by, or has out23 standing loans to, 100 or more cooperative electric

24 companies and is in existence on February 1, 2002,
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1 and shall include any affiliated entity which is con2 trolled by such lender.

3 ‘‘(4) COOPERATIVE ELECTRIC COMPANY.—The

4 term ‘cooperative electric company’ means a mutual

5 or cooperative electric company described in section

6 501(c)(12) or section 1381(a)(2)(C), or a not-for-prof7 it electric utility which has received a loan or loan

8 guarantee under the Rural Electrification Act.

9 ‘‘(5) GOVERNMENTAL BODY.—The term ‘govern10 mental body’ means any State, territory, possession of

11 the United States, the District of Columbia, Indian

12 tribal government, and any political subdivision

13 thereof.

14 ‘‘(k) SPECIAL RULES RELATING TO POOL BONDS.—

15 No portion of a pooled financing bond may be allocable to

16 loan unless the borrower has entered into a written loan

17 commitment for such portion prior to the issue date of such

18 issue.

19 ‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.—For

20 purposes of this section—

21 ‘‘(1) BOND.—The term ‘bond’ includes any obli22 gation.

23 ‘‘(2) POOLED FINANCING BOND.—The term

24 ‘pooled financing bond’ shall have the meaning given

25 such term by section 149(f)(4)(A).
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1 ‘‘(3) RURAL AREA.—The term ‘rural area’ shall

2 have the meaning given such term by section

3 1393(a)(2).

4 ‘‘(4) PARTNERSHIP; S CORPORATION; AND OTHER

5 PASS-THRU ENTITIES.—

6 ‘‘(A) IN GENERAL.—Under regulations pre7 scribed by the Secretary, in the case of a part8 nership, trust, S corporation, or other pass-thru

9 entity, rules similar to the rules of section 41(g)

10 shall apply with respect to the credit allowable

11 under subsection (a).

12 ‘‘(B) NO BASIS ADJUSTMENT.—In the case

13 of a bond held by a partnership or an S corpora14 tion, rules similar to the rules under section

15 1397E(i) shall apply.

16 ‘‘(5) BONDS HELD BY REGULATED INVESTMENT

17 COMPANIES.—If any rural renaissance bond is held

18 by a regulated investment company, the credit deter19 mined under subsection (a) shall be allowed to share20 holders of such company under procedures prescribed

21 by the Secretary.

22 ‘‘(6) REPORTING.—Issuers of rural renaissance

23 bonds shall submit reports similar to the reports re24 quired under section 149(e).
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1 ‘‘(7) TERMINATION.—This section shall not

2 apply with respect to any bond issued after December

3 31, 2008.’’.

4 (b) REPORTING.—Subsection (d) of section 6049 (relat5 ing to returns regarding payments of interest) is amended

6 by adding at the end the following new paragraph:

7 ‘‘(9) REPORTING OF CREDIT ON RURAL RENAIS8 SANCEBONDS.—

9 ‘‘(A) IN GENERAL.—For purposes of sub10 section (a), the term ‘interest’ includes amounts

11 includible in gross income under section 54A(g)

12 and such amounts shall be treated as paid on the

13 credit allowance date (as defined in section

14 54A(b)(4)).

15 ‘‘(B) REPORTING TO CORPORATIONS, ETC.—

16 Except as otherwise provided in regulations, in

17 the case of any interest described in subpara18 graph (A), subsection (b)(4) shall be applied

19 without regard to subparagraphs (A), (H), (I),

20 (J), (K), and (L)(i) of such subsection.

21 ‘‘(C) REGULATORY AUTHORITY.—The Sec22 retary may prescribe such regulations as are nec23 essary or appropriate to carry out the purposes

24 of this paragraph, including regulations which
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1 require more frequent or more detailed report2 ing.’’.

3 (c) CONFORMING AMENDMENTS.—

4 (1) The table of sections for subpart H of part

5 IV of subchapter A of chapter 1 is amended by adding

6 at the end the following new item:

‘‘Sec. 54A. Credit to holders of rural renaissance bonds.’’.

7 (2) Section 54(c)(2) is amended by inserting

8 ‘‘section 54A,’’ after ‘‘subpart C,’’.

9 (d) ISSUANCEOF REGULATIONS.—The Secretary of

10 Treasury shall issue regulations required under section 54A

11 (as added by this section) not later than 120 days after

12 the date of the enactment of this Act.

13 (e) EFFECTIVE DATE.—The amendments made by this

14 section shall apply to bonds issued after the date of the en15 actment of this Act.

16 SEC. 12405. AGRICULTURAL CHEMICALS SECURITY CREDIT.

17 (a) IN GENERAL.—Subpart D of part IV of subchapter

18 A of chapter 1 (relating to business related credits) is

19 amended by adding at the end the following new section:

20 ‘‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

21 ‘‘(a) IN GENERAL.—For purposes of section 38, in the

22 case of an eligible agricultural business, the agricultural

23 chemicals security credit determined under this section for

24 the taxable year is 30 percent of the qualified security ex25 penditures for the taxable year.
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1 ‘‘(b) FACILITY LIMITATION.—The amount of the credit

2 determined under subsection (a) with respect to any facility

3 for any taxable year shall not exceed—

4 ‘‘(1) $100,000, reduced by

5 ‘‘(2) the aggregate amount of credits determined

6 under subsection (a) with respect to such facility for

7 the 5 prior taxable years.

8 ‘‘(c) ANNUAL LIMITATION.—The amount of the credit

9 determined under subsection (a) with respect to any tax10 payer for any taxable year shall not exceed $2,000,000.

11 ‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDI12 TURE.—For purposes of this section, the term ‘qualified

13 chemical security expenditure’ means, with respect to any

14 eligible agricultural business for any taxable year, any

15 amount paid or incurred by such business during such tax16 able year for—

17 ‘‘(1) employee security training and background

18 checks,

19 ‘‘(2) limitation and prevention of access to con20 trols of specified agricultural chemicals stored at the

21 facility,

22 ‘‘(3) tagging, locking tank valves, and chemical

23 additives to prevent the theft of specified agricultural

24 chemicals or to render such chemicals unfit for illegal

25 use,
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1 ‘‘(4) protection of the perimeter of specified agri2 cultural chemicals,

3 ‘‘(5) installation of security lighting, cameras,

4 recording equipment, and intrusion detection sensors,

5 ‘‘(6) implementation of measures to increase

6 computer or computer network security,

7 ‘‘(7) conducting a security vulnerability assess8 ment,

9 ‘‘(8) implementing a site security plan, and

10 ‘‘(9) such other measures for the protection of

11 specified agricultural chemicals as the Secretary may

12 identify in regulation.

13 Amounts described in the preceding sentence shall be taken

14 into account only to the extent that such amounts are paid

15 or incurred for the purpose of protecting specified agricul16 tural chemicals.

17 ‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For pur18 poses of this section, the term ‘eligible agricultural business’

19 means any person in the trade or business of—

20 ‘‘(1) selling agricultural products, including

21 specified agricultural chemicals, at retail predomi22 nantly to farmers and ranchers, or

23 ‘‘(2) manufacturing, formulating, distributing,

24 or aerially applying specified agricultural chemicals.
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1 ‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For pur2 poses of this section, the term ‘specified agricultural chem3 ical’ means—

4 ‘‘(1) any fertilizer commonly used in agricul5 tural operations which is listed under—

6 ‘‘(A) section 302(a)(2) of the Emergency

7 Planning and Community Right-to-Know Act of

8 1986,

9 ‘‘(B) section 101 of part 172 of title 49,

10 Code of Federal Regulations, or

11 ‘‘(C) part 126, 127, or 154 of title 33, Code

12 of Federal Regulations, and

13 ‘‘(2) any pesticide (as defined in section 2(u) of

14 the Federal Insecticide, Fungicide, and Rodenticide

15 Act), including all active and inert ingredients there16 of, which is customarily used on crops grown for food,

17 feed, or fiber.

18 ‘‘(g) CONTROLLED GROUPS.—Rules similar to the

19 rules of paragraphs (1) and (2) of section 41(f) shall apply

20 for purposes of this section.

21 ‘‘(h) REGULATIONS.—The Secretary may prescribe

22 such regulations as may be necessary or appropriate to

23 carry out the purposes of this section, including regulations

24 which—
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1 ‘‘(1) provide for the proper treatment of amounts

2 which are paid or incurred for purpose of protecting

3 any specified agricultural chemical and for other pur4 poses, and

5 ‘‘(2) provide for the treatment of related prop6 erties as one facility for purposes of subsection (b).

7 ‘‘(i) TERMINATION.—This section shall not apply to

8 any amount paid or incurred after December 31, 2012.’’.

9 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI10 NESS CREDIT.—Section 38(b) is amended by striking

11 ‘‘plus’’ at the end of paragraph (30), by striking the period

12 at the end of paragraph (31) and inserting ‘‘, plus’’, and

13 by adding at the end the following new paragraph:

14 ‘‘(32) in the case of an eligible agricultural busi15 ness (as defined in section 45O(e)), the agricultural

16 chemicals security credit determined under section

17 45O(a).’’.

18 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C is

19 amended by adding at the end the following new subsection:

20 ‘‘(f) CREDIT FOR SECURITY OF AGRICULTURAL

21 CHEMICALS.—No deduction shall be allowed for that por22 tion of the expenses otherwise allowable as a deduction

23 taken into account in determining the credit under section

24 45O for the taxable year which is equal to the amount of
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1 the credit determined for such taxable year under section

2 45O(a).’’.

3 (d) CLERICAL AMENDMENT.—The table of sections for

4 subpart D of part IV of subchapter A of chapter 1 is amend5 ed by adding at the end the following new item:

‘‘Sec. 45O. Agricultural chemicals security credit.’’.

6 (e) EFFECTIVE DATE.—The amendments made by this

7 section shall apply to amounts paid or incurred after the

8 date of the enactment of this Act.

9 SEC. 12406. CREDIT FOR DRUG SAFETY AND EFFECTIVE10 NESS TESTING FOR MINOR ANIMAL SPECIES.

11 (a) IN GENERAL.—Subpart D of part IV of subchapter

12 A of chapter 1 (relating to business related credits), as

13 amended by this Act, is amended by adding at the end the

14 following new section:

15 ‘‘SEC. 45P. DRUG SAFETY AND EFFECTIVENESS TESTING

16 FOR MINOR ANIMAL SPECIES.

17 ‘‘(a) ALLOWANCEOF CREDIT.—For purposes of section

18 38, in the case of an eligible taxpayer, the drug safety and

19 effectiveness testing for minor animal species credit deter20 mined under this section for the taxable year shall be an

21 amount equal to 50 percent of the qualified safety and effec22 tiveness testing expenses paid or incurred by the taxpayer

23 during the taxable year.

24 ‘‘(b) ELIGIBLE TAXPAYER.—For purposes of this sec25 tion, the term ‘eligible taxpayer’ any taxpayer—
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1 ‘‘(1) which—

2 ‘‘(A) applies for the designation of a new

3 animal drug for use on a minor animal species

4 under section 573 of the Federal Food, Drug,

5 and Cosmetic Act, or

6 ‘‘(B) owns animals which are the subject of

7 safety and effectiveness testing, and

8 ‘‘(2) which elects the application of this section

9 for the taxable year.

10 ‘‘(c) QUALIFIED SAFETY AND EFFECTIVENESS TEST11 ING EXPENSES.—For purposes of this section—

12 ‘‘(1) IN GENERAL.—The term ‘qualified safety

13 and effectiveness testing expenses’ means the sum of

14 the following amounts which are paid or incurred by

15 the eligible taxpayer during the taxable year in car16 rying on any trade or business of such taxpayer:

17 ‘‘(A) In-house safety and effectiveness test18 ing expenses.

19 ‘‘(B) Contract safety and effectiveness test20 ing expenses.

21 Such term does not include any amount to the extent

22 such amount is funded by any grant, contract, or oth23 erwise by another person (or any governmental enti24 ty).
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1 ‘‘(2) IN-HOUSE SAFETY AND EFFECTIVENESS

2 TESTING EXPENSES.—

3 ‘‘(A) IN GENERAL.—The term ‘in-house

4 safety and effectiveness testing expenses’ means—

5 ‘‘(i) any wages paid or incurred to an

6 employee for qualified services performed by

7 such employee,

8 ‘‘(ii) any amount paid or incurred for

9 supplies used in the conduct of safety and

10 effectiveness testing, and

11 ‘‘(iii) under regulations prescribed by

12 the Secretary, any amount paid or incurred

13 to another person for the right to use com14 puters in the conduct of safety and effective15 ness testing.

16 Clause (iii) shall not apply to any amount to the

17 extent that the taxpayer (or any person with

18 whom the taxpayer must aggregate expenditures

19 under rules specified under subsection (f)(2)) re20 ceives or accrues any amount from any other

21 person for the right to use substantially identical

22 personal property.

23 ‘‘(B) QUALIFIED SERVICES.—The term

24 ‘qualified services’ means services consisting of—
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1 ‘‘(i) engaging in safety and effective2 ness testing, or

3 ‘‘(ii) engaging in the direct supervision

4 or direct support of such testing.

5 If substantially all of the services performed by

6 an individual for the taxpayer during the tax7 able year consists of services meeting the require8 ments of clause (i) or (ii), the term ‘qualified

9 services’ means all of the services performed by

10 such individual for the taxpayer during the tax11 able year.

12 ‘‘(C) WAGES AND SUPPLIES.—The terms

13 ‘wages’ and ‘supplies’ have the meanings given

14 such terms by section 41(b).

15 ‘‘(3) CONTRACT SAFETY AND EFFECTIVENESS

16 TESTING EXPENSES.—

17 ‘‘(A) IN GENERAL.—The term ‘contract safe18 ty and effectiveness testing expenses’ means any

19 amount paid or incurred by the taxpayer to any

20 person (other than an employee of the taxpayer)

21 for safety and effectiveness testing.

22 ‘‘(B) PREPAID AMOUNTS.—If any contract

23 safety and effectiveness testing expenses paid or

24 incurred during any taxable year are attrib25 utable to safety and effectiveness testing to be
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1 conducted after the close of such taxable year,

2 such amount shall be treated as paid or incurred

3 during the period during which the safety and

4 effectiveness testing is conducted.

5 ‘‘(d) SAFETY AND EFFECTIVENESS TESTING.—For

6 purposes of this section—

7 ‘‘(1) IN GENERAL.—The term ‘safety and effec8 tiveness testing’ means any testing which—

9 ‘‘(A) is related to the use of a new animal

10 drug for use on a minor animal species for

11 which it was designated under section 573 of the

12 Federal Food, Drug, and Cosmetic Act,

13 ‘‘(B) is carried out under an exemption for

14 such new animal drug under section 512(j) of

15 such Act (or regulations issued under such sec16 tion),

17 ‘‘(C) occurs—

18 ‘‘(i) after the date on which the appli19 cation for designation of such new animal

20 drug under section 573 of such Act is filed,

21 and

22 ‘‘(ii) before the date on which such ap23 plication is approved under section 512(c)

24 of such Act, and
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1 ‘‘(D) which is conducted by or on behalf of

2 an eligible taxpayer.

3 ‘‘(2) MINOR ANIMAL SPECIES.—

4 ‘‘(A) IN GENERAL.—The term ‘minor ani5 mal species’ means animals, other than humans,

6 which are not major animal species.

7 ‘‘(B) MAJOR ANIMAL SPECIES.—The term

8 ‘major animal species’ means cattle, horses,

9 swine, chickens, turkeys, dogs, cats, and any

10 other species as determined by the Secretary,

11 after consultation with the Secretary of Agri12 culture.

13 ‘‘(e) TREATMENT OF QUALIFIED SAFETY AND EFFEC14 TIVENESS TESTING EXPENSES.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), any qualified safety and effectiveness test17 ing expenses for a taxable year to which an election

18 under this section applies shall not be taken into ac19 count for purposes of determining the credit allowable

20 under section 41 for such taxable year.

21 ‘‘(2) TREATED AS BASE PERIOD RESEARCH EX22 PENSES.—Any qualified safe and effectiveness testing

23 expenses for any taxable year which are qualified re24 search expenses (within the meaning of section 41(b))

25 shall be taken into account in determining base pe-
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1 riod research expenses for purposes of applying sec2 tion 41 to subsequent taxable years.

3 ‘‘(f) SPECIAL RULES.—

4 ‘‘(1) LIMITATION.—No credit shall be allowed

5 under this section with respect to any safety and ef6 fectiveness testing conducted by a corporation to

7 which an election under section 936 applies.

8 ‘‘(2) AGGREGATION OF EXPENDITURES AND AL9 LOCATIONS OF CREDIT.—Rules similar to the rules of

10 paragraphs (1) and (2) of section 41(f) and section

11 41(g) shall apply for purposes of this section.’’.

12 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI13 NESS CREDIT.—Section 38(b), as amended by this Act, is

14 amended by striking ‘‘plus’’ at the end of paragraph (31),

15 by striking the period at the end of paragraph (32) and

16 inserting ‘‘, plus’’, and by adding at the end the following

17 new paragraph:

18 ‘‘(33) the drug safety and effectiveness testing for

19 minor animal species credit determined under section

20 45P(a).’’.

21 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C, as

22 amended by this Act, is amended by adding at the end the

23 following new subsection:

24 ‘‘(g) DRUG SAFETY AND EFFECTIVENESS TESTING FOR

25 MINOR ANIMAL SPECIES CREDIT.—
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1 ‘‘(1) IN GENERAL.—No deduction shall be al2 lowed for that portion of the qualified safety and ef3 fectiveness testing expenses (as defined in section

4 45P(c)(1)) otherwise allowable as a deduction for the

5 taxable year which is equal to the amount of the cred6 it determined for such taxable year under section

7 45P(a).

8 ‘‘(2) SIMILAR RULEWHERETAXPAYER CAPITAL9 IZES RATHER THAN DEDUCTS EXPENSES.—If—

10 ‘‘(A) the amount of the credit determined

11 for the taxable year under section 45P(a), exceeds

12 ‘‘(B) the amount allowable as a deduction

13 for such taxable year for qualified safety and ef14 fectiveness testing expenses (determined without

15 regard to paragraph (1)),

16 the amount chargeable to capital account for the tax17 able year for such expenses shall be reduced by the

18 amount of such excess.

19 ‘‘(3) CONTROLLED GROUPS.—Paragraph (3) of

20 subsection (b) shall apply for purposes of this sub21 section.’’.

22 (d) CLERICAL AMENDMENT.—The table of sections for

23 subpart D of part IV of subchapter A of chapter 1, as

24 amended by this Act, is amended by adding at the end the

25 following new item:

‘‘Sec. 45P. Drug safety and effectiveness testing for minor animal species.’’.
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1 (e) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to amounts paid or incurred after the

3 date of the enactment of this Act.

4 SEC. 12407. CERTAIN FARMING BUSINESS MACHINERY AND

5 EQUIPMENT TREATED AS 5-YEAR PROPERTY.

6 (a) IN GENERAL.—Section 168(e)(3)(B) (defining 5-

7 year property) is amended by striking ‘‘and’’ at the end

8 of clause (v), by striking the period at the end of clause

9 (vi)(III) and inserting ‘‘, and’’, and by inserting after

10 clause (vi) the following new clause:

11 ‘‘(vii) any machinery or equipment

12 (other than any grain bin, cotton ginning

13 asset, fence, or other land improvement)

14 which is used in a farming business (as de15 fined in section 263A(e)(4)), the original

16 use of which commences with the taxpayer

17 after the date of the enactment of this

18 clause, and which is placed in service before

19 January 1, 2010.’’.

20 (b) ALTERNATIVE SYSTEM.—The table contained in

21 section 168(g)(3)(B) (relating to special rule for certain

22 property assigned to classes) is amended by inserting after

23 the item relating to subparagraph (B)(iii) the following:

‘‘(B)(vii) .......................................................................................... 10’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to property placed in service after the

3 date of the enactment of this Act.

4 SEC. 12408. EXPENSING OF BROADBAND INTERNET ACCESS

5 EXPENDITURES.

6 (a) IN GENERAL.—Part VI of subchapter B of chapter

7 1 (relating to itemized deductions for individuals and cor8 porations) is amended by inserting after section 190 the fol9 lowing new section:

10 ‘‘SEC. 191. BROADBAND EXPENDITURES.

11 ‘‘(a) TREATMENT OF EXPENDITURES.—

12 ‘‘(1) IN GENERAL.—A taxpayer may elect to

13 treat any qualified broadband expenditure which is

14 paid or incurred by the taxpayer as an expense which

15 is not chargeable to a capital account. Any expendi16 ture which is so treated shall be allowed as a deduc17 tion.

18 ‘‘(2) ELECTION.—An election under paragraph

19 (1) shall be made at such time and in such manner

20 as the Secretary may prescribe by regulation.

21 ‘‘(b) QUALIFIED BROADBAND EXPENDITURES.—For

22 purposes of this section—

23 ‘‘(1) IN GENERAL.—The term ‘qualified

24 broadband expenditure’ means, with respect to any

25 taxable year, any direct or indirect costs incurred
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1 after the date of the enactment of this section, and on

2 or before the first December 31 which is 3 years after

3 such date, and properly taken into account with re4 spect to—

5 ‘‘(A) the purchase or installation of quali6 fied equipment (including any upgrades thereto),

7 and

8 ‘‘(B) the connection of such qualified equip9 ment to any qualified subscriber.

10 ‘‘(2) CERTAIN SATELLITE EXPENDITURES EX11 CLUDED.—Such term shall not include any costs in12 curred with respect to the launching of any satellite

13 equipment.

14 ‘‘(3) LEASED EQUIPMENT.—Such term shall in15 clude so much of the purchase price paid by the lessor

16 of qualified equipment subject to a lease described in

17 subsection (c)(2)(B) as is attributable to expenditures

18 incurred by the lessee which would otherwise be de19 scribed in paragraph (1).

20 ‘‘(4) LIMITATION WITH REGARD TO CURRENT

21 GENERATION BROADBAND SERVICES.—Only 50 per22 cent of the amounts taken into account under para23 graph (1) with respect to qualified equipment through

24 which current generation broadband services are pro-
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1 vided shall be treated as qualified broadband expendi2 tures.

3 ‘‘(c) WHEN EXPENDITURES TAKEN INTO ACCOUNT.—

4 For purposes of this section—

5 ‘‘(1) IN GENERAL.—Qualified broadband expend6 itures with respect to qualified equipment shall be

7 taken into account with respect to the first taxable

8 year in which—

9 ‘‘(A) current generation broadband services

10 are provided through such equipment to qualified

11 subscribers, or

12 ‘‘(B) next generation broadband services are

13 provided through such equipment to qualified

14 subscribers.

15 ‘‘(2) LIMITATION.—

16 ‘‘(A) IN GENERAL.—Qualified expenditures

17 shall be taken into account under paragraph (1)

18 only with respect to qualified equipment—

19 ‘‘(i) the original use of which com20 mences with the taxpayer, and

21 ‘‘(ii) which is placed in service after

22 the date of the enactment of this Act.

23 ‘‘(B) SALE-LEASEBACKS.—For purposes of

24 subparagraph (A), if property—
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1 ‘‘(i) is originally placed in service

2 after the date of the enactment of this Act

3 by any person, and

4 ‘‘(ii) sold and leased back by such per5 son within 3 months after the date such

6 property was originally placed in service,

7 such property shall be treated as originally

8 placed in service not earlier than the date on

9 which such property is used under the leaseback

10 referred to in clause (ii).

11 ‘‘(d) SPECIAL ALLOCATION RULES.—

12 ‘‘(1) CURRENT GENERATION BROADBAND SERV13 ICES.—For purposes of determining the amount of

14 qualified broadband expenditures under subsection

15 (a)(1) with respect to qualified equipment through

16 which current generation broadband services are pro17 vided, if the qualified equipment is capable of serving

18 both qualified subscribers and other subscribers, the

19 qualified broadband expenditures shall be multiplied

20 by a fraction—

21 ‘‘(A) the numerator of which is the sum of

22 the number of potential qualified subscribers

23 within the rural areas and the underserved areas

24 which the equipment is capable of serving with

25 current generation broadband services, and
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1 ‘‘(B) the denominator of which is the total

2 potential subscriber population of the area which

3 the equipment is capable of serving with current

4 generation broadband services.

5 ‘‘(2) NEXT GENERATION BROADBAND SERV6 ICES.—For purposes of determining the amount of

7 qualified broadband expenditures under subsection

8 (a)(1) with respect to qualified equipment through

9 which next generation broadband services are pro10 vided, if the qualified equipment is capable of serving

11 both qualified subscribers and other subscribers, the

12 qualified broadband expenditures shall be multiplied

13 by a fraction—

14 ‘‘(A) the numerator of which is the sum

15 of—

16 ‘‘(i) the number of potential qualified

17 subscribers within the rural areas and un18 derserved areas, plus

19 ‘‘(ii) the number of potential qualified

20 subscribers within the area consisting only

21 of residential subscribers not described in

22 clause (i),

23 which the equipment is capable of serving with

24 next generation broadband services, and
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1 ‘‘(B) the denominator of which is the total

2 potential subscriber population of the area which

3 the equipment is capable of serving with next

4 generation broadband services.

5 ‘‘(e) DEFINITIONS.—For purposes of this section—

6 ‘‘(1) ANTENNA.—The term ‘antenna’ means any

7 device used to transmit or receive signals through the

8 electromagnetic spectrum, including satellite equip9 ment.

10 ‘‘(2) CABLEOPERATOR.—The term ‘cable oper11 ator’ has the meaning given such term by section

12 602(5) of the Communications Act of 1934 (47 U.S.C.

13 522(5)).

14 ‘‘(3) COMMERCIAL MOBILE SERVICE CARRIER.—

15 The term ‘commercial mobile service carrier’ means

16 any person authorized to provide commercial mobile

17 radio service as defined in section 20.3 of title 47,

18 Code of Federal Regulations.

19 ‘‘(4) CURRENT GENERATION BROADBAND SERV20 ICE.—The term ‘current generation broadband serv21 ice’ means the transmission of signals at a rate of at

22 least 5,000,000 bits per second to the subscriber and

23 at least 1,000,000 bits per second from the subscriber.

24 ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.—The

25 term ‘multiplexing’ means the transmission of 2 or
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1 more signals over a single channel, and the term

2 ‘demultiplexing’ means the separation of 2 or more

3 signals previously combined by compatible multi4 plexing equipment.

5 ‘‘(6) NEXT GENERATION BROADBAND SERVICE.—

6 The term ‘next generation broadband service’ means

7 the transmission of signals at a rate of at least

8 100,000,000 bits per second to the subscriber and at

9 least 20,000,000 bits per second from the subscriber.

10 ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The term

11 ‘nonresidential subscriber’ means any person who

12 purchases broadband services which are delivered to

13 the permanent place of business of such person.

14 ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The term

15 ‘open video system operator’ means any person au16 thorized to provide service under section 653 of the

17 Communications Act of 1934 (47 U.S.C. 573).

18 ‘‘(9) OTHER WIRELESS CARRIER.—The term

19 ‘other wireless carrier’ means any person (other than

20 a telecommunications carrier, commercial mobile

21 service carrier, cable operator, open video system op22 erator, or satellite carrier) providing current genera23 tion broadband services or next generation broadband

24 service to subscribers through the radio transmission

25 of energy.
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1 ‘‘(10) PACKET SWITCHING.—The term ‘packet

2 switching’ means controlling or routing the path of

3 any digitized transmission signal which is assembled

4 into packets or cells.

5 ‘‘(11) PROVIDER.—The term ‘provider’ means,

6 with respect to any qualified equipment—

7 ‘‘(A) a cable operator,

8 ‘‘(B) a commercial mobile service carrier,

9 ‘‘(C) an open video system operator,

10 ‘‘(D) a satellite carrier,

11 ‘‘(E) a telecommunications carrier, or

12 ‘‘(F) any other wireless carrier,

13 providing current generation broadband services or

14 next generation broadband services to subscribers

15 through such qualified equipment.

16 ‘‘(12) PROVISION OF SERVICES.—A provider

17 shall be treated as providing services to 1 or more

18 subscribers if—

19 ‘‘(A) such a subscriber has been passed by

20 the provider’s equipment and can be connected to

21 such equipment for a standard connection fee,

22 ‘‘(B) the provider is physically able to de23 liver current generation broadband services or

24 next generation broadband services, as applica25 ble, to such a subscriber without making more
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1 than an insignificant investment with respect to

2 such subscriber,

3 ‘‘(C) the provider has made reasonable ef4 forts to make such subscribers aware of the avail5 ability of such services,

6 ‘‘(D) such services have been purchased by

7 1 or more such subscribers, and

8 ‘‘(E) such services are made available to

9 such subscribers at average prices comparable to

10 those at which the provider makes available

11 similar services in any areas in which the pro12 vider makes available such services.

13 ‘‘(13) QUALIFIED EQUIPMENT.—

14 ‘‘(A) IN GENERAL.—The term ‘qualified

15 equipment’ means equipment which provides

16 current generation broadband services or next

17 generation broadband services—

18 ‘‘(i) at least a majority of the time

19 during periods of maximum demand to

20 each subscriber who is utilizing such serv21 ices, and

22 ‘‘(ii) in a manner substantially the

23 same as such services are provided by the

24 provider to subscribers through equipment
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1 with respect to which no deduction is al2 lowed under subsection (a)(1).

3 ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN

4 INTO ACCOUNT.—Except as provided in subpara5 graph (C) or (D), equipment shall be taken into

6 account under subparagraph (A) only to the ex7 tent it—

8 ‘‘(i) extends from the last point of

9 switching to the outside of the unit, build10 ing, dwelling, or office owned or leased by

11 a subscriber in the case of a telecommuni12 cations carrier or broadband-over-powerline

13 operator,

14 ‘‘(ii) extends from the customer side of

15 the mobile telephone switching office to a

16 transmission/receive antenna (including

17 such antenna) owned or leased by a sub18 scriber in the case of a commercial mobile

19 service carrier,

20 ‘‘(iii) extends from the customer side of

21 the headend to the outside of the unit, build22 ing, dwelling, or office owned or leased by

23 a subscriber in the case of a cable operator

24 or open video system operator, or
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1 ‘‘(iv) extends from a transmission/re2 ceive antenna (including such antenna)

3 which transmits and receives signals to or

4 from multiple subscribers, to a trans5 mission/receive antenna (including such an6 tenna) on the outside of the unit, building,

7 dwelling, or office owned or leased by a sub8 scriber in the case of a satellite carrier or

9 other wireless carrier, unless such other

10 wireless carrier is also a telecommuni11 cations carrier.

12 ‘‘(C) PACKET SWITCHING EQUIPMENT.—

13 Packet switching equipment, regardless of loca14 tion, shall be taken into account under subpara15 graph (A) only if it is deployed in connection

16 with equipment described in subparagraph (B)

17 and is uniquely designed to perform the function

18 of packet switching for current generation

19 broadband services or next generation broadband

20 services, but only if such packet switching is the

21 last in a series of such functions performed in

22 the transmission of a signal to a subscriber or

23 the first in a series of such functions performed

24 in the transmission of a signal from a sub25 scriber.
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1 ‘‘(D) MULTIPLEXING AND DEMULTIPLEXING

2 EQUIPMENT.—Multiplexing and demultiplexing

3 equipment shall be taken into account under sub4 paragraph (A) only to the extent it is deployed

5 in connection with equipment described in sub6 paragraph (B) and is uniquely designed to per7 form the function of multiplexing and

8 demultiplexing packets or cells of data and mak9 ing associated application adaptions, but only if

10 such multiplexing or demultiplexing equipment

11 is located between packet switching equipment

12 described in subparagraph (C) and the sub13 scriber’s premises.

14 ‘‘(14) QUALIFIED SUBSCRIBER.—The term

15 ‘qualified subscriber’ means—

16 ‘‘(A) with respect to the provision of current

17 generation broadband services—

18 ‘‘(i) any nonresidential subscriber

19 maintaining a permanent place of business

20 in a rural area or underserved area, or

21 ‘‘(ii) any residential subscriber resid22 ing in a dwelling located in a rural area or

23 underserved area which is not a saturated

24 market, and
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1 ‘‘(B) with respect to the provision of next

2 generation broadband services—

3 ‘‘(i) any nonresidential subscriber

4 maintaining a permanent place of business

5 in a rural area or underserved area, or

6 ‘‘(ii) any residential subscriber.

7 ‘‘(15) RESIDENTIAL SUBSCRIBER.—The term

8 ‘residential subscriber’ means any individual who

9 purchases broadband services which are delivered to

10 such individual’s dwelling.

11 ‘‘(16) RURAL AREA.—The term ‘rural area’

12 means any census tract which—

13 ‘‘(A) is not within 10 miles of any incor14 porated or census designated place containing

15 more than 25,000 people, and

16 ‘‘(B) is not within a county or county

17 equivalent which has an overall population den18 sity of more than 500 people per square mile of

19 land.

20 ‘‘(17) RURAL SUBSCRIBER.—The term ‘rural

21 subscriber’ means any residential subscriber residing

22 in a dwelling located in a rural area or nonresiden23 tial subscriber maintaining a permanent place of

24 business located in a rural area.
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1 ‘‘(18) SATELLITE CARRIER.—The term ‘satellite

2 carrier’ means any person using the facilities of a

3 satellite or satellite service licensed by the Federal

4 Communications Commission and operating in the

5 Fixed-Satellite Service under part 25 of title 47 of the

6 Code of Federal Regulations or the Direct Broadcast

7 Satellite Service under part 100 of title 47 of such

8 Code to establish and operate a channel of commu9 nications for distribution of signals, and owning or

10 leasing a capacity or service on a satellite in order

11 to provide such point-to-multipoint distribution.

12 ‘‘(19) SATURATED MARKET.—The term ‘satu13 rated market’ means any census tract in which, as of

14 the date of the enactment of this section—

15 ‘‘(A) current generation broadband services

16 have been provided by a single provider to 85

17 percent or more of the total number of potential

18 residential subscribers residing in dwellings lo19 cated within such census tract, and

20 ‘‘(B) such services can be utilized—

21 ‘‘(i) at least a majority of the time

22 during periods of maximum demand by

23 each such subscriber who is utilizing such

24 services, and
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1 ‘‘(ii) in a manner substantially the

2 same as such services are provided by the

3 provider to subscribers through equipment

4 with respect to which no deduction is al5 lowed under subsection (a)(1).

6 ‘‘(20) SUBSCRIBER.—The term ‘subscriber’

7 means any person who purchases current generation

8 broadband services or next generation broadband serv9 ices.

10 ‘‘(21) TELECOMMUNICATIONS CARRIER.—The

11 term ‘telecommunications carrier’ has the meaning

12 given such term by section 3(44) of the Communica13 tions Act of 1934 (47 U.S.C. 153(44)), but—

14 ‘‘(A) includes all members of an affiliated

15 group of which a telecommunications carrier is

16 a member, and

17 ‘‘(B) does not include a commercial mobile

18 service carrier.

19 ‘‘(22) TOTAL POTENTIAL SUBSCRIBER POPU20 LATION.—The term ‘total potential subscriber popu21 lation’ means, with respect to any area and based on

22 the most recent census data, the total number of po23 tential residential subscribers residing in dwellings

24 located in such area and potential nonresidential sub-
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1 scribers maintaining permanent places of business lo2 cated in such area.

3 ‘‘(23) UNDERSERVED AREA.—The term ‘under4 served area’ means—

5 ‘‘(A) any census tract which is located in—

6 ‘‘(i) an empowerment zone or enter7 prise community designated under section

8 1391, or

9 ‘‘(ii) the District of Columbia Enter10 prise Zone established under section 1400,

11 or

12 ‘‘(B) any census tract—

13 ‘‘(i) the poverty level of which is at

14 least 30 percent (based on the most recent

15 census data), and

16 ‘‘(ii) the median family income of

17 which does not exceed—

18 ‘‘(I) in the case of a census tract

19 located in a metropolitan statistical

20 area, 70 percent of the greater of the

21 metropolitan area median family in22 come or the statewide median family

23 income, and

24 ‘‘(II) in the case of a census tract

25 located in a nonmetropolitan statis-
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1 tical area, 70 percent of the nonmetro2 politan statewide median family in3 come.

4 ‘‘(24) UNDERSERVED SUBSCRIBER.—The term

5 ‘underserved subscriber’ means any residential sub6 scriber residing in a dwelling located in an under7 served area or nonresidential subscriber maintaining

8 a permanent place of business located in an under9 served area.

10 ‘‘(f) SPECIAL RULES.—

11 ‘‘(1) PROPERTY USED OUTSIDE THE UNITED

12 STATES, ETC., NOT QUALIFIED.—No expenditures

13 shall be taken into account under subsection (a)(1)

14 with respect to the portion of the cost of any property

15 referred to in section 50(b) or with respect to the por16 tion of the cost of any property specified in an elec17 tion under section 179.

18 ‘‘(2) BASIS REDUCTION.—

19 ‘‘(A) IN GENERAL.—For purposes of this

20 title, the basis of any property shall be reduced

21 by the portion of the cost of such property taken

22 into account under subsection (a)(1).

23 ‘‘(B) ORDINARY INCOMERECAPTURE.—For

24 purposes of section 1245, the amount of the de25 duction allowable under subsection (a)(1) with
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1 respect to any property which is of a character

2 subject to the allowance for depreciation shall be

3 treated as a deduction allowed for depreciation

4 under section 167.

5 ‘‘(3) COORDINATION WITH SECTION 38.—No

6 credit shall be allowed under section 38 with respect

7 to any amount for which a deduction is allowed

8 under subsection (a)(1).’’.

9 (b) SPECIAL RULEFOR MUTUAL OR COOPERATIVE

10 TELEPHONE COMPANIES.—Section 512(b) (relating to

11 modifications) is amended by adding at the end the fol12 lowing new paragraph:

13 ‘‘(20) SPECIAL RULE FOR MUTUAL OR COOPERA14 TIVE TELEPHONE COMPANIES.—A mutual or coopera15 tive telephone company which for the taxable year

16 satisfies the requirements of section 501(c)(12)(A)

17 may elect to reduce its unrelated business taxable in18 come for such year, if any, by an amount that does

19 not exceed the qualified broadband expenditures which

20 would be taken into account under section 191 for

21 such year by such company if such company was not

22 exempt from taxation. Any amount which is allowed

23 as a deduction under this paragraph shall not be al24 lowed as a deduction under section 191 and the basis
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1 of any property to which this paragraph applies shall

2 be reduced under section 1016(a)(40).’’.

3 (c) CONFORMING AMENDMENTS.—

4 (1) Section 263(a)(1) (relating to capital ex5 penditures) is amended by striking ‘‘or’’ at the end of

6 subparagraph (J), by striking the period at the end

7 of subparagraph (K) and inserting ‘‘, or’’, and by

8 adding at the end the following new subparagraph:

9 ‘‘(L) expenditures for which a deduction is

10 allowed under section 191.’’.

11 (2) Section 1016(a), as amended by this Act, is

12 amended by striking ‘‘and’’ at the end of paragraph

13 (38), by striking the period at the end of paragraph

14 (39) and inserting ‘‘, and’’, and by adding at the end

15 the following new paragraph:

16 ‘‘(40) to the extent provided in section

17 191(f)(2).’’.

18 (3) The table of sections for part VI of sub19 chapter A of chapter 1 is amended by inserting after

20 the item relating to section 190 the following new

21 item:

‘‘Sec. 191. Broadband expenditures.’’.

22 (d) DESIGNATION OF CENSUS TRACTS.—

23 (1) IN GENERAL.—The Secretary of the Treasury

24 shall, not later than 90 days after the date of the en25 actment of this Act, designate and publish those cen-
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1 sus tracts meeting the criteria described in para2 graphs (16), (22), and (23) of section 191(e) of the In3 ternal Revenue Code of 1986 (as added by this sec4 tion). In making such designations, the Secretary of

5 the Treasury shall consult with such other depart6 ments and agencies as the Secretary determines ap7 propriate.

8 (2) SATURATED MARKET.—

9 (A) IN GENERAL.—For purposes of desig10 nating and publishing those census tracts meet11 ing the criteria described in subsection (e)(19) of

12 such section 191—

13 (i) the Secretary of the Treasury shall

14 prescribe not later than 30 days after the

15 date of the enactment of this Act the form

16 upon which any provider which takes the

17 position that it meets such criteria with re18 spect to any census tract shall submit a list

19 of such census tracts (and any other infor20 mation required by the Secretary) not later

21 than 60 days after the date of the publica22 tion of such form, and

23 (ii) the Secretary of the Treasury shall

24 publish an aggregate list of such census

25 tracts and the applicable providers not later
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1 than 30 days after the last date such sub2 missions are allowed under clause (i).

3 (B) NO SUBSEQUENT LISTS REQUIRED.—

4 The Secretary of the Treasury shall not be re5 quired to publish any list of census tracts meet6 ing such criteria subsequent to the list described

7 in subparagraph (A)(ii).

8 (e) OTHER REGULATORY MATTERS.—

9 (1) PROHIBITION.—No Federal or State agency

10 or instrumentality shall adopt regulations or rate11 making procedures that would have the effect of elimi12 nating or reducing any deduction or portion thereof

13 allowed under section 191 of the Internal Revenue

14 Code of 1986 (as added by this section) or otherwise

15 subverting the purpose of this section.

16 (2) TREASURY REGULATORY AUTHORITY.—It is

17 the intent of Congress in providing the election to de18 duct qualified broadband expenditures under section

19 191 of the Internal Revenue Code of 1986 (as added

20 by this section) to provide incentives for the purchase,

21 installation, and connection of equipment and facili22 ties offering expanded broadband access to the Inter23 net for users in certain low income and rural areas

24 of the United States, as well as to residential users

25 nationwide, in a manner that maintains competitive
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1 neutrality among the various classes of providers of

2 broadband services. Accordingly, the Secretary of the

3 Treasury shall prescribe such regulations as may be

4 necessary or appropriate to carry out the purposes of

5 section 191 of such Code, including—

6 (A) regulations to determine how and when

7 a taxpayer that incurs qualified broadband ex8 penditures satisfies the requirements of section

9 191 of such Code to provide broadband services,

10 and

11 (B) regulations describing the information,

12 records, and data taxpayers are required to pro13 vide the Secretary to substantiate compliance

14 with the requirements of section 191 of such

15 Code.

16 SEC. 12409. CREDIT FOR ENERGY EFFICIENT MOTORS.

17 (a) IN GENERAL.—Subpart D of part IV of subchapter

18 A of chapter 1 (relating to business related credits), as

19 amended by this Act, is amended by inserting at the end

20 the following new section:

21 ‘‘SEC. 45Q. CREDIT FOR ENERGY EFFICIENT MOTORS.

22 ‘‘(a) IN GENERAL.—For purposes of section 38, the en23 ergy efficient motors credit determined under this section

24 for any taxable year is an amount equal to the lesser of—
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1 ‘‘(1) $15 per horsepower generated by qualified

2 energy efficient motors the original use of which be3 gins with the taxpayer during such taxable year, or

4 ‘‘(2) $1,250,000.

5 ‘‘(b) QUALIFIED ENERGY EFFICIENT MOTOR.—The

6 term ‘qualified energy efficient motor’ means a general- or

7 definite-purpose electric motor of 500 horsepower or less

8 which meets or exceeds the efficiency levels specified in Ta9 bles 12–12 or 12–13 of the National Electrical Manufactur10 ers Association MG–1 (2006).

11 ‘‘(c) SPECIAL RULES.—

12 ‘‘(1) BASIS REDUCTION.—The basis of any prop13 erty for which a credit is allowable under subsection

14 (a) shall be reduced by the amount of such credit.

15 ‘‘(2) RECAPTURE.—The Secretary shall, by regu16 lations, provide for recapturing the benefit of any

17 credit allowable under subsection (a) with respect to

18 any property which ceases to be property eligible for

19 such credit.

20 ‘‘(3) PROPERTY USED OUTSIDE UNITED STATES,

21 ETC., CERTAIN DEPRECIABLE PROPERTY NOT QUALI22 FIED.—No credit shall be allowed under subsection

23 (a) with respect to any property referred to in section

24 50(b) or with respect to the portion of the cost of any

25 property taken into account under section 179.
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1 ‘‘(d) TERMINATION.—This section shall not apply to

2 any property placed in service after the date which is 3

3 years after the date of the enactment of this section.’’.

4 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI5 NESS CREDIT.—Section 38(b), as amended by this Act, is

6 amended by striking ‘‘plus’’ at the end of paragraph (32),

7 by striking the period at the end of paragraph (33) and

8 inserting ‘‘, plus’’, and by adding at the end the following

9 new paragraph:

10 ‘‘(34) the credit for energy efficient motors deter11 mined under section 45Q(a).’’.

12 (c) CONFORMING AMENDMENTS.—

13 (1) Section 1016(a), as amended by this Act, is

14 amended by striking ‘‘and’’ at the end of paragraph

15 (39), by striking the period at the end of paragraph

16 (40) and inserting ‘‘, and’’, and by adding at the end

17 the following new paragraph:

18 ‘‘(41) to the extent provided in section

19 45Q(c)(1).’’.

20 (2) The table of sections for subpart D of part

21 IV of subchapter A of chapter 1, as amended by this

22 Act, is amended by adding at the end the following

23 new item:

‘‘Sec. 45Q. Credit for energy efficient motors.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to property placed in service after the

3 date of the enactment of this Act.

4 Subtitle E—Revenue Provisions

5 PART I—MISCELLANEOUS REVENUE PROVISIONS

6 SEC. 12501. LIMITATION ON FARMING LOSSES OF CERTAIN

7 TAXPAYERS.

8 (a) IN GENERAL.—Section 461 (relating to general

9 rule for taxable year of deduction) is amended by adding

10 at the end the following new subsection:

11 ‘‘(j) LIMITATION ON FARMING LOSSES OF CERTAIN

12 TAXPAYERS.—

13 ‘‘(1) IN GENERAL.—If an applicable taxpayer

14 has a farming loss for the taxable year, such loss shall

15 be allowed for such taxable year only to the extent

16 such loss does not exceed $200,000.

17 ‘‘(2) FARMING LOSS.—For purposes of this sub18 section, the term ‘farming loss’ means the excess of the

19 deductions of the taxpayer for the taxable year which

20 are attributable to farming businesses (as defined in

21 section 263A(e)(4)) of such taxpayer over income or

22 gain of such taxpayer for the taxable year which is

23 attributable to such deductions.

24 ‘‘(3) DISALLOWED LOSS CARRIED TO NEXT

25 YEAR.—Any loss which is disallowed under para-
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1 graph (1) shall be treated as a deduction of the tax2 payer attributable to farming businesses in the next

3 taxable year.

4 ‘‘(4) APPLICABLETAXPAYER.—For purposes of

5 this subsection, the term ‘applicable taxpayer’ means,

6 with respect to any taxable year, any individual,

7 partnership, estate, or trust which receives—

8 ‘‘(A) benefits under subtitle A or B of title

9 I of the Food and Energy Security Act of 2007

10 in such taxable year, or

11 ‘‘(B) Commodity Credit Corporation loans

12 in such taxable year.’’.

13 (b) EFFECTIVE DATE.—The amendment made by this

14 section shall apply to taxable years beginning after Decem15 ber 31, 2007.

16 SEC. 12502. MODIFICATION TO OPTIONAL METHOD OF COM17 PUTING NET EARNINGS FROM SELF-EMPLOY18 MENT.

19 (a) AMENDMENTS TO THE INTERNAL REVENUE CODE

20 OF 1986.—

21 (1) IN GENERAL.—The matter following para22 graph (17) of section 1402(a) is amended—

23 (A) by striking ‘‘$2,400’’ each place it ap24 pears and inserting ‘‘the upper limit’’, and
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1 (B) by striking ‘‘$1,600’’ each place it ap2 pears and inserting ‘‘the lower limit’’.

3 (2) DEFINITIONS.—Section 1402 is amended by

4 adding at the end the following new subsection:

5 ‘‘(l) UPPER AND LOWER LIMITS.—For purposes of

6 subsection (a)—

7 ‘‘(1) LOWER LIMIT.—The lower limit for any

8 taxable year is the sum of the amounts required under

9 section 213(d) of the Social Security Act for a quarter

10 of coverage in effect with respect to each calendar

11 quarter ending with or within such taxable year.

12 ‘‘(2) UPPER LIMIT.—The upper limit for any

13 taxable year is the amount equal to 150 percent of the

14 lower limit for such taxable year.’’.

15 (b) AMENDMENTS TO THE SOCIAL SECURITY ACT.—

16 (1) IN GENERAL.—The matter following para17 graph (16) of section 211(a) of the Social Security

18 Act is amended—

19 (A) by striking ‘‘$2,400’’ each place it ap20 pears and inserting ‘‘the upper limit’’, and

21 (B) by striking ‘‘$1,600’’ each place it ap22 pears and inserting ‘‘the lower limit’’.

23 (2) DEFINITIONS.—Section 211 of such Act is

24 amended by adding at the end the following new sub25 section:
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1 ‘‘Upper and Lower Limits

2 ‘‘(k) For purposes of subsection (a)—

3 ‘‘(1) The lower limit for any taxable year is the

4 sum of the amounts required under section 213(d) for

5 a quarter of coverage in effect with respect to each

6 calendar quarter ending with or within such taxable

7 year.

8 ‘‘(2) The upper limit for any taxable year is the

9 amount equal to 150 percent of the lower limit for

10 such taxable year.’’.

11 (3) CONFORMING AMENDMENT.—Section 212 of

12 such Act is amended—

13 (A) in subsection (b), by striking ‘‘For’’ and

14 inserting ‘‘Except as provided in subsection (c),

15 for’’; and

16 (B) by adding at the end the following new

17 subsection:

18 ‘‘(c) For the purpose of determining average indexed

19 monthly earnings, average monthly wage, and quarters of

20 coverage in the case of any individual who elects the option

21 described in clause (ii) or (iv) in the matter following sec22 tion 211(a)(16) for any taxable year that does not begin

23 with or during a particular calendar year and end with

24 or during such year, the self-employment income of such

25 individual deemed to be derived during such taxable year
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1 shall be allocated to the two calendar years, portions of

2 which are included within such taxable year, in the same

3 proportion to the total of such deemed self-employment in4 come as the sum of the amounts applicable under section

5 213(d) for the calendar quarters ending with or within each

6 such calendar year bears to the lower limit for such taxable

7 year specified in section 211(k)(1).’’.

8 (c) EFFECTIVE DATE.—The amendments made by this

9 section shall apply to taxable years beginning after Decem10 ber 31, 2007.

11 SEC. 12503. INFORMATION REPORTING FOR COMMODITY

12 CREDIT CORPORATION TRANSACTIONS.

13 (a) IN GENERAL.—Subpart A of part III of subchapter

14 A of chapter 61 (relating to information concerning persons

15 subject to special provisions) is amended by inserting after

16 section 6039I the following new section:

17 ‘‘SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO

18 COMMODITY CREDIT CORPORATION TRANS19 ACTIONS.

20 ‘‘(a) REQUIREMENT OF REPORTING.—The Commodity

21 Credit Corporation, through the Secretary of Agriculture,

22 shall make a return, according to the forms and regulations

23 prescribed by the Secretary of the Treasury, setting forth

24 any market gain realized by a taxpayer during the taxable

25 year in relation to the repayment of a loan issued by the
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1 Commodity Credit Corporation, without regard to the man2 ner in which such loan was repaid.

3 ‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS

4 WITH RESPECT TO WHOM INFORMATION IS REQUIRED.—

5 The Secretary of Agriculture shall furnish to each person

6 whose name is required to be set forth in a return required

7 under subsection (a) a written statement showing the

8 amount of market gain reported in such return.’’.

9 (b) CLERICAL AMENDMENT.—The table of sections for

10 subpart A of part III of subchapter A of chapter 61 is

11 amended by inserting after the item relating to section

12 6039I the following new item:

‘‘Sec. 6039J. Information reporting with respect to Commodity Credit Corporation transactions.’’.

13 (c) EFFECTIVE DATE.—The amendments made by this

14 section shall apply to loans repaid on or after January 1,

15 2007.

16 SEC. 12504. MODIFICATION OF SECTION 1031 TREATMENT

17 FOR CERTAIN REAL ESTATE.

18 (a) IN GENERAL.—Section 1031 (relating to exchange

19 of property held for productive use or investment), as

20 amended by this Act, is amended by adding at the end the

21 following new subsection:

22 ‘‘(j) SPECIAL RULEFOR SUBSIDIZED AGRICULTURAL

23 REAL PROPERTY.—
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1 ‘‘(1) IN GENERAL.—Subsidized agricultural real

2 property and nonagricultural real property are not

3 property of a like kind.

4 ‘‘(2) SUBSIDIZED AGRICULTURAL REAL PROP5 ERTY.—For purposes of this subsection, the term ‘sub6 sidized agricultural real property’ means real

7 property—

8 ‘‘(A) which is used as a farm for farming

9 purposes (within the meaning of section

10 2032A(e)(5)); and

11 ‘‘(B) with respect to which a taxpayer re12 ceives, in the taxable year in which an exchange

13 of such property is made, any payment or ben14 efit under—

15 ‘‘(i) part I of subtitle A,

16 ‘‘(ii) part III (other than sections 1307

17 and 1308) of subtitle A, or

18 ‘‘(iii) subtitle B,

19 of title I of the Food and Energy Security Act

20 of 2007.

21 ‘‘(3) NONAGRICULTURAL REAL PROPERTY.—For

22 purposes of this subsection, the term ‘nonagricultural

23 real property’ means real property which is not used

24 as a farm for farming purposes (within the meaning

25 of section 2032A(e)(5)).
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1 ‘‘(4) EXCEPTION.—Paragraph (1) shall not

2 apply with respect to any subsidized agricultural real

3 property which, not later than the date of the ex4 change, is permanently retired from any program

5 under which any payment or benefit described in

6 paragraph (2)(B) is made.’’.

7 (b) EFFECTIVE DATE.—The amendments made by this

8 section shall apply to exchanges completed after the date

9 of the enactment of this Act.

10 SEC. 12505. MODIFICATION OF EFFECTIVE DATE OF LEAS11 ING PROVISIONS OF THE AMERICAN JOBS

12 CREATION ACT OF 2004.

13 (a) LEASES TO FOREIGN ENTITIES.—Section 849(b)

14 of the American Jobs Creation Act of 2004 is amended by

15 adding at the end the following new paragraph:

16 ‘‘(5) LEASES TO FOREIGN ENTITIES.—In the case

17 of tax-exempt use property leased to a tax-exempt en18 tity which is a foreign person or entity, the amend19 ments made by this part shall apply to taxable years

20 beginning after December 31, 2006, with respect to

21 leases entered into on or before March 12, 2004.’’.

22 (b) EFFECTIVE DATE.—The amendment made by this

23 section shall take effect as if included in the enactment of

24 the American Jobs Creation Act of 2004.
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1 SEC. 12506. TIME FOR PAYMENT OF CORPORATE ESTI2 MATED TAXES.

3 The percentage under subparagraph (B) of section

4 401(1) of the Tax Increase Prevention and Reconciliation

5 Act of 2005 in effect on the date of the enactment of this

6 Act is increased by 7.00 percentage points.

7 SEC. 12507. DENIAL OF DEDUCTION FOR CERTAIN FINES,

8 PENALTIES, AND OTHER AMOUNTS.

9 (a) IN GENERAL.—Subsection (f) of section 162 (relat10 ing to trade or business expenses) is amended to read as

11 follows:

12 ‘‘(f) FINES, PENALTIES, AND OTHER AMOUNTS.—

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), no deduction otherwise allowable shall be

15 allowed under this chapter for any amount paid or

16 incurred (whether by suit, agreement, or otherwise)

17 to, or at the direction of, a government or entity de18 scribed in paragraph (4) in relation to—

19 ‘‘(A) the violation of any law, or

20 ‘‘(B) an investigation or inquiry into the

21 potential violation of any law which is initiated

22 by such government or entity.

23 ‘‘(2) EXCEPTION FOR AMOUNTS CONSTITUTING

24 RESTITUTION OR PAID TO COME INTO COMPLIANCE

25 WITH LAW.—Paragraph (1) shall not apply to any

26 amount which—
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1 ‘‘(A) the taxpayer establishes—

2 ‘‘(i) constitutes restitution (or remedi3 ation of property) for damage or harm

4 caused by, or which may be caused by, the

5 violation of any law or the potential viola6 tion of any law, or

7 ‘‘(ii) is paid to come into compliance

8 with any law which was violated or in9 volved in the investigation or inquiry, and

10 ‘‘(B) is identified as an amount described

11 in clause (i) or (ii) of subparagraph (A), as the

12 case may be, in the court order or settlement

13 agreement, except that the requirement of this

14 subparagraph shall not apply in the case of any

15 settlement agreement which requires the taxpayer

16 to pay or incur an amount not greater than

17 $1,000,000.

18 A taxpayer shall not meet the requirements of sub19 paragraph (A) solely by reason of an identification

20 under subparagraph (B). This paragraph shall not

21 apply to any amount paid or incurred as reimburse22 ment to the government or entity for the costs of any

23 investigation or litigation unless such amount is paid

24 or incurred for a cost or fee regularly charged for any
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1 routine audit or other customary review performed by

2 the government or entity.

3 ‘‘(3) EXCEPTION FOR AMOUNTS PAID OR IN4 CURRED AS THE RESULT OF CERTAIN COURT OR5 DERS.—Paragraph (1) shall not apply to any

6 amount paid or incurred by order of a court in a suit

7 in which no government or entity described in para8 graph (4) is a party.

9 ‘‘(4) CERTAIN NONGOVERNMENTAL REGULATORY

10 ENTITIES.—An entity is described in this paragraph

11 if it is—

12 ‘‘(A) a nongovernmental entity which exer13 cises self-regulatory powers (including imposing

14 sanctions) in connection with a qualified board

15 or exchange (as defined in section 1256(g)(7)), or

16 ‘‘(B) to the extent provided in regulations,

17 a nongovernmental entity which exercises self18 regulatory powers (including imposing sanc19 tions) as part of performing an essential govern20 mental function.

21 ‘‘(5) EXCEPTION FOR TAXES DUE.—Paragraph

22 (1) shall not apply to any amount paid or incurred

23 as taxes due.’’.

24 (b) REPORTING OF DEDUCTIBLE AMOUNTS.—
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1 (1) IN GENERAL.—Subpart B of part III of sub2 chapter A of chapter 61 is amended by inserting after

3 section 6050V the following new section:

4 ‘‘SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN

5 FINES, PENALTIES, AND OTHER AMOUNTS.

6 ‘‘(a) REQUIREMENT OF REPORTING.—

7 ‘‘(1) IN GENERAL.—The appropriate official of

8 any government or entity which is described in sec9 tion 162(f)(4) which is involved in a suit or agree10 ment described in paragraph (2) shall make a return

11 in such form as determined by the Secretary setting

12 forth—

13 ‘‘(A) the amount required to be paid as a

14 result of the suit or agreement to which para15 graph (1) of section 162(f) applies,

16 ‘‘(B) any amount required to be paid as a

17 result of the suit or agreement which constitutes

18 restitution or remediation of property, and

19 ‘‘(C) any amount required to be paid as a

20 result of the suit or agreement for the purpose of

21 coming into compliance with any law which was

22 violated or involved in the investigation or in23 quiry.

24 ‘‘(2) SUIT OR AGREEMENT DESCRIBED.—
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1 ‘‘(A) IN GENERAL.—A suit or agreement is

2 described in this paragraph if—

3 ‘‘(i) it is—

4 ‘‘(I) a suit with respect to a viola5 tion of any law over which the govern6 ment or entity has authority and with

7 respect to which there has been a court

8 order, or

9 ‘‘(II) an agreement which is en10 tered into with respect to a violation of

11 any law over which the government or

12 entity has authority, or with respect to

13 an investigation or inquiry by the gov14 ernment or entity into the potential

15 violation of any law over which such

16 government or entity has authority,

17 and

18 ‘‘(ii) the aggregate amount involved in

19 all court orders and agreements with respect

20 to the violation, investigation, or inquiry is

21 $600 or more.

22 ‘‘(B) ADJUSTMENT OF REPORTING THRESH23 OLD.—The Secretary may adjust the $600

24 amount in subparagraph (A)(ii) as necessary in
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1 order to ensure the efficient administration of the

2 internal revenue laws.

3 ‘‘(3) TIMEOF FILING.—The return required

4 under this subsection shall be filed not later than—

5 ‘‘(A) 30 days after the date on which a

6 court order is issued with respect to the suit or

7 the date the agreement is entered into, as the

8 case may be, or

9 ‘‘(B) the date specified by the Secretary.

10 ‘‘(b) STATEMENTS TO BE FURNISHED TO INDIVIDUALS

11 INVOLVED IN THE SETTLEMENT.—Every person required to

12 make a return under subsection (a) shall furnish to each

13 person who is a party to the suit or agreement a written

14 statement showing—

15 ‘‘(1) the name of the government or entity, and

16 ‘‘(2) the information supplied to the Secretary

17 under subsection (a)(1).

18 The written statement required under the preceding sen19 tence shall be furnished to the person at the same time the

20 government or entity provides the Secretary with the infor21 mation required under subsection (a).

22 ‘‘(c) APPROPRIATE OFFICIAL DEFINED.—For purposes

23 of this section, the term ‘appropriate official’ means the offi24 cer or employee having control of the suit, investigation,
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1 or inquiry or the person appropriately designated for pur2 poses of this section.’’.

3 (2) CONFORMING AMENDMENT.—The table of sec4 tions for subpart B of part III of subchapter A of

5 chapter 61 is amended by inserting after the item re6 lating to section 6050V the following new item:

‘‘Sec. 6050W. Information with respect to certain fines, penalties, and other

amounts’’.

7 (c) EFFECTIVE DATE.—The amendments made by this

8 section shall apply to amounts paid or incurred on or after

9 the date of the enactment of this Act, except that such

10 amendments shall not apply to amounts paid or incurred

11 under any binding order or agreement entered into before

12 such date. Such exception shall not apply to an order or

13 agreement requiring court approval unless the approval

14 was obtained before such date.

15 SEC. 12508. INCREASE IN INFORMATION RETURN PEN16 ALTIES.

17 (a) FAILURE TO FILE CORRECT INFORMATION RE18 TURNS.—

19 (1) IN GENERAL.—Section 6721(a)(1) is

20 amended—

21 (A) by striking ‘‘$50’’ and inserting

22 ‘‘$250’’, and

23 (B) by striking ‘‘$250,000’’ and inserting

24 ‘‘$3,000,000’’.
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1 (2) REDUCTION WHERE CORRECTION IN SPECI2 FIED PERIOD.—

3 (A) CORRECTION WITHIN 30 DAYS.—Section

4 6721(b)(1) is amended—

5 (i) by striking ‘‘$15’’ and inserting

6 ‘‘$50’’,

7 (ii) by striking ‘‘$50’’ and inserting

8 ‘‘$250’’, and

9 (iii) by striking ‘‘$75,000’’ and insert10 ing ‘‘$500,000’’.

11 (B) FAILURES CORRECTED ON OR BEFORE

12 AUGUST 1.—Section 6721(b)(2) is amended—

13 (i) by striking ‘‘$30’’ and inserting

14 ‘‘$100’’,

15 (ii) by striking ‘‘$50’’ and inserting

16 ‘‘$250’’, and

17 (iii) by striking ‘‘$150,000’’ and in18 serting ‘‘$1,500,000’’.

19 (3) LOWER LIMITATION FOR PERSONS WITH

20 GROSS RECEIPTS OF NOT MORE THAN $5,000,000.—Sec21 tion 6721(d)(1) is amended—

22 (A) in subparagraph (A)—

23 (i) by striking ‘‘$100,000’’ and insert24 ing ‘‘$1,000,000’’, and
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1 (ii) by striking ‘‘$250,000’’ and insert2 ing ‘‘$3,000,000’’,

3 (B) in subparagraph (B)—

4 (i) by striking ‘‘$25,000’’ and inserting

5 ‘‘$175,000’’, and

6 (ii) by striking ‘‘$75,000’’ and insert7 ing ‘‘$500,000’’, and

8 (C) in subparagraph (C)—

9 (i) by striking ‘‘$50,000’’ and inserting

10 ‘‘$500,000’’, and

11 (ii) by striking ‘‘$150,000’’ and insert12 ing ‘‘$1,500,000’’.

13 (4) PENALTY IN CASE OF INTENTIONAL DIS14 REGARD.—Section 6721(e) is amended—

15 (A) by striking ‘‘$100’’ in paragraph (2)

16 and inserting ‘‘$500’’,

17 (B) by striking ‘‘$250,000’’ in paragraph

18 (3)(A) and inserting ‘‘$3,000,000’’.

19 (b) FAILURE TO FURNISH CORRECT PAYEE STATE20 MENTS.—

21 (1) IN GENERAL.—Section 6722(a) is amended—

22 (A) by striking ‘‘$50’’ and inserting

23 ‘‘$250’’, and

24 (B) by striking ‘‘$100,000’’ and inserting

25 ‘‘$1,000,000’’.
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1 (2) PENALTY IN CASE OF INTENTIONAL DIS2 REGARD.—Section 6722(c) is amended—

3 (A) by striking ‘‘$100’’ in paragraph (1)

4 and inserting ‘‘$500’’, and

5 (B) by striking ‘‘$100,000’’ in paragraph

6 (2)(A) and inserting ‘‘$1,000,000’’.

7 (c) FAILURE TO COMPLY WITH OTHER INFORMATION

8 REPORTING REQUIREMENTS.—Section 6723 is amended—

9 (1) by striking ‘‘$50’’ and inserting ‘‘$250’’, and

10 (2) by striking ‘‘$100,000’’ and inserting

11 ‘‘$1,000,000’’.

12 (d) EFFECTIVE DATE.—The amendments made by this

13 section shall apply with respect to information returns re14 quired to be filed on or after January 1, 2008.

15 SEC. 12509. ASSET TREATMENT OF HORSES.

16 (a) 3-YEAR DEPRECIATION FOR ALL RACE HORSES.—

17 (1) IN GENERAL.—Clause (i) of section

18 168(e)(3)(A) of the Internal Revenue Code of 1986

19 (relating to 3-year property) is amended to read as

20 follows:

21 ‘‘(i) any race horse,’’.

22 (2) EFFECTIVE DATE.—The amendment made by

23 this section shall apply to property placed in service

24 on or after the date of the enactment of this Act.
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1 (b) REDUCTION OF HOLDING PERIOD TO 12 MONTHS

2 FOR PURPOSES OF DETERMINING WHETHER HORSES ARE

3 SECTION 1231 ASSETS.—

4 (1) IN GENERAL.—Subparagraph (A) of section

5 1231(b)(3) of the Internal Revenue Code of 1986 (re6 lating to definition of livestock) is amended by strik7 ing ‘‘and horses’’.

8 (2) EFFECTIVE DATE.—The amendment made by

9 this section shall apply to taxable years beginning

10 after December 31, 2007.

11 SEC. 12510. ELIMINATION OF PRIVATE PAYMENT TEST FOR

12 PROFESSIONAL SPORTS FACILITY BONDS.

13 (a) IN GENERAL.—Section 141(a) (defining private

14 activity bond) is amended by adding at the end the fol15 lowing new flush sentence:

16 ‘‘In the case of any professional sports facility bond, para17 graph (1) shall be applied without regard to subparagraph

18 (B) thereof.’’.

19 (b) PROFESSIONAL SPORTS FACILITY BOND DE20 FINED.—Section 141 is amended by adding at the end the

21 following new subsection:

22 ‘‘(f) PROFESSIONAL SPORTS FACILITY BOND.—For

23 purposes of subsection (a)—

24 ‘‘(1) IN GENERAL.—The term ‘professional sports

25 facility bond’ means any bond issued as part of an
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1 issue any portion of the proceeds of which are to be

2 used to provide a professional sports facility.

3 ‘‘(2) PROFESSIONAL SPORTS FACILITY.—The

4 term ‘professional sports facility’ means real property

5 and related improvements used, in whole or in part,

6 for professional sports, professional sports exhibitions,

7 professional games, or professional training.’’.

8 (c) EFFECTIVE DATE.—The amendments made by this

9 section shall apply to bonds issued after the date of the en10 actment of this Act, other than bonds with respect to which

11 a resolution was issued by an issuer or conduit borrower

12 before January 24, 2007.

13 SEC. 12511. MODIFICATION OF PENALTY FOR FAILURE TO

14 FILE PARTNERSHIP RETURNS; LIMITATION

15 ON DISCLOSURE.

16 (a) EXTENSION OF TIME LIMITATION.—Section

17 6698(a) (relating to failure to file partnership returns) is

18 amended by striking ‘‘5 months’’ and inserting ‘‘12

19 months’’.

20 (b) INCREASE IN PENALTY AMOUNT.—Paragraph (1)

21 of section 6698(b) is amended by striking ‘‘$50’’ and insert22 ing ‘‘$100’’.

23 (c) LIMITATION ON DISCLOSUREOF TAXPAYER RE24 TURNS TO PARTNERS, S CORPORATION SHAREHOLDERS,

25 TRUST BENEFICIARIES, AND ESTATE BENEFICIARIES.—
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1 (1) IN GENERAL.—Section 6103(e) (relating to

2 disclosure to persons having material interest) is

3 amended by adding at the end the following new

4 paragraph:

5 ‘‘(10) LIMITATION ON CERTAIN DISCLOSURES

6 UNDER THIS SUBSECTION.—In the case of an inspec7 tion or disclosure under this subsection relating to the

8 return of a partnership, S corporation, trust, or an

9 estate, the information inspected or disclosed shall not

10 include any supporting schedule, attachment, or list

11 which includes the taxpayer identity information of a

12 person other than the entity making the return or the

13 person conducting the inspection or to whom the dis14 closure is made.’’.

15 (2) EFFECTIVE DATE.—The amendment made by

16 this subsection shall take effect on the date of the en17 actment of this Act.

18 (d) EFFECTIVE DATE.—The amendments made by

19 subsections (a) and (b) shall apply to returns required to

20 be filed after the date of the enactment of this Act.

21 SEC. 12512. PARTICIPANTS IN GOVERNMENT SECTION 457

22 PLANS ALLOWED TO TREAT ELECTIVE DEFER23 RALS AS ROTH CONTRIBUTIONS.

24 (a) IN GENERAL.—Section 402A(e)(1) (defining appli25 cable retirement plan) is amended by striking ‘‘and’’ at the
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1 end of subparagraph (A), by striking the period at the end

2 of subparagraph (B) and inserting ‘‘, and’’, and by adding

3 at the end the following:

4 ‘‘(C) an eligible deferred compensation plan

5 (as defined in section 457(b)) of an eligible em6 ployer described in section 457(e)(1)(A).’’.

7 (b) ELECTIVE DEFERRALS.—Section 402A(e)(2) (de8 fining elective deferral) is amended to read as follows:

9 ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective

10 deferral’ means—

11 ‘‘(A) any elective deferral described in sub12 paragraph (A) or (C) of section 402(g)(3), and

13 ‘‘(B) any elective deferral of compensation

14 by an individual under an eligible deferred com15 pensation plan (as defined in section 457(b)) of

16 an eligible employer described in section

17 457(e)(1)(A).’’.

18 (c) EFFECTIVE DATE.—The amendments made by this

19 section shall apply to taxable years beginning after Decem20 ber 31, 2007.
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1 PART II—ECONOMIC SUBSTANCE DOCTRINE

2 SEC. 12521. CLARIFICATION OF ECONOMIC SUBSTANCE

3 DOCTRINE.

4 (a) IN GENERAL.—Section 7701 is amended by redes5 ignating subsection (p) as subsection (q) and by inserting

6 after subsection (o) the following new subsection:

7 ‘‘(p) CLARIFICATION OF ECONOMIC SUBSTANCE DOC8 TRINE; ETC.—

9 ‘‘(1) GENERAL RULES.—

10 ‘‘(A) IN GENERAL.—In any case in which a

11 court determines that the economic substance

12 doctrine is relevant for purposes of this title to

13 a transaction (or series of transactions), such

14 transaction (or series of transactions) shall have

15 economic substance only if the requirements of

16 this paragraph are met.

17 ‘‘(B) DEFINITION OF ECONOMIC SUB18 STANCE.—For purposes of subparagraph (A)—

19 ‘‘(i) IN GENERAL.—A transaction has

20 economic substance only if—

21 ‘‘(I) the transaction changes in a

22 meaningful way (apart from Federal

23 tax effects) the taxpayer’s economic po24 sition, and

25 ‘‘(II) subject to clause (iii), the

26 taxpayer has a substantial purpose
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1 (other than a Federal tax purpose) for

2 entering into such transaction.

3 ‘‘(ii) SPECIAL RULE WHERE TAXPAYER

4 RELIES ON PROFIT POTENTIAL.—A trans5 action shall not be treated as having eco6 nomic substance solely by reason of having

7 a potential for profit unless the present

8 value of the reasonably expected pre-Federal

9 tax profit from the transaction is substan10 tial in relation to the present value of the

11 expected net Federal tax benefits that would

12 be allowed if the transaction were respected.

13 In determining pre-Federal tax profit, there

14 shall be taken into account fees and other

15 transaction expenses and to the extent pro16 vided by the Secretary, foreign taxes.

17 ‘‘(iii) SPECIAL RULES FOR DETER18 MINING WHETHER NON-FEDERAL TAX PUR19 POSE.—For purposes of clause (i)(II)—

20 ‘‘(I) a purpose of achieving a fi21 nancial accounting benefit shall not be

22 taken into account in determining

23 whether a transaction has a substan24 tial purpose (other than a Federal tax

25 purpose) if the origin of such financial
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1 accounting benefit is a reduction of

2 Federal tax, and

3 ‘‘(II) the taxpayer shall not be

4 treated as having a substantial pur5 pose (other than a Federal tax pur6 pose) with respect to a transaction if

7 the only such purpose is the reduction

8 of non-Federal taxes and the trans9 action will result in a reduction of

10 Federal taxes substantially equal to, or

11 greater than, the reduction in non-Fed12 eral taxes because of similarities be13 tween the laws imposing the taxes.

14 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For

15 purposes of this subsection—

16 ‘‘(A) ECONOMIC SUBSTANCEDOCTRINE.—

17 The term ‘economic substance doctrine’ means

18 the common law doctrine under which tax bene19 fits under subtitle A with respect to a trans20 action are not allowable if the transaction does

21 not have economic substance or lacks a business

22 purpose.

23 ‘‘(B) EXCEPTION FOR PERSONAL TRANS24 ACTIONS OF INDIVIDUALS.—In the case of an in25 dividual, this subsection shall apply only to
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1 transactions entered into in connection with a

2 trade or business or an activity engaged in for

3 the production of income.

4 ‘‘(3) OTHER PROVISIONS NOT AFFECTED.—Ex5 cept as specifically provided in this subsection, the

6 provisions of this subsection shall not be construed as

7 altering or supplanting any other rule of law or pro8 vision of this title, and the requirements of this sub9 section shall be construed as being in addition to any

10 such other rule of law or provision of this title.

11 ‘‘(4) REGULATIONS.—The Secretary shall pre12 scribe such regulations as may be necessary or appro13 priate to carry out the purposes of this subsection.

14 Such regulations may include exemptions from the

15 application of this subsection.’’.

16 (b) EFFECTIVE DATE.—The amendments made by this

17 section shall apply to transactions entered into after the

18 date of the enactment of this Act.

19 SEC. 12522. PENALTY FOR UNDERSTATEMENTS ATTRIB20 UTABLE TO TRANSACTIONS LACKING ECO21 NOMIC SUBSTANCE, ETC.

22 (a) IN GENERAL.—Subchapter A of chapter 68 is

23 amended by inserting after section 6662A the following new

24 section:
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1 ‘‘SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIB2 UTABLE TO TRANSACTIONS LACKING ECO3 NOMIC SUBSTANCE, ETC.

4 ‘‘(a) IMPOSITION OF PENALTY.—If a taxpayer has an

5 noneconomic substance transaction understatement for any

6 taxable year, there shall be added to the tax an amount

7 equal to 30 percent of the amount of such understatement.

8 ‘‘(b) REDUCTION OF PENALTY FOR DISCLOSED TRANS9 ACTIONS.—Subsection (a) shall be applied by substituting

10 ‘20 percent’ for ‘30 percent’ with respect to the portion of

11 any noneconomic substance transaction understatement

12 with respect to which the relevant facts affecting the tax

13 treatment of the item are adequately disclosed in the return

14 or a statement attached to the return.

15 ‘‘(c) NONECONOMIC SUBSTANCE TRANSACTION UNDER16 STATEMENT.—For purposes of this section—

17 ‘‘(1) IN GENERAL.—The term ‘noneconomic sub18 stance transaction understatement’ means any

19 amount which would be an understatement under sec20 tion 6662A(b)(1) if section 6662A were applied by

21 taking into account items attributable to noneconomic

22 substance transactions rather than items to which sec23 tion 6662A would apply without regard to this para24 graph.

25 ‘‘(2) NONECONOMIC SUBSTANCE TRANSACTION.—

26 The term ‘noneconomic substance transaction’ means
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1 any transaction if there is a lack of economic sub2 stance (within the meaning of section 7701(p)(1)(B))

3 for the transaction giving rise to the claimed benefit.

4 ‘‘(d) RULES APPLICABLE TO ASSERTION, COM5 PROMISE, AND COLLECTION OF PENALTY.—

6 ‘‘(1) IN GENERAL.—Only the Chief Counsel for

7 the Internal Revenue Service may assert a penalty

8 imposed under this section or may compromise all or

9 any portion of such penalty. The Chief Counsel may

10 delegate the authority under this paragraph only to

11 an individual holding the position of chief of a

12 branch within the Office of the Chief Counsel for the

13 Internal Revenue Service.

14 ‘‘(2) SPECIFIC REQUIREMENTS.—

15 ‘‘(A) ASSERTION OF PENALTY.—The Chief

16 Counsel for the Internal Revenue Service (or the

17 Chief Counsel’s delegate under paragraph (1))

18 shall not assert a penalty imposed under this

19 section unless, before the assertion of the penalty,

20 the taxpayer is provided—

21 ‘‘(i) a notice of intent to assert the

22 penalty, and

23 ‘‘(ii) an opportunity to provide to the

24 Commissioner (or the Chief Counsel’s dele25 gate under paragraph (1)) a written re-
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1 sponse to the proposed penalty within a

2 reasonable period of time after such notice.

3 ‘‘(B) COMPROMISEOF PENALTY.—A com4 promise shall not result in a reduction in the

5 penalty imposed by this section in an amount

6 greater than the amount which bears the same

7 ratio to the amount of the penalty determined

8 without regard to the compromise as—

9 ‘‘(i) the reduction under the com10 promise in the noneconomic substance

11 transaction understatement to which the

12 penalty relates, bears to

13 ‘‘(ii) the amount of the noneconomic

14 substance transaction understatement deter15 mined without regard to the compromise.

16 ‘‘(3) RULES RELATING TO RELEVANCY REQUIRE17 MENT.—

18 ‘‘(A) DETERMINATION OF RELEVANCE BY

19 CHIEF COUNSEL.—The Chief Counsel for the In20 ternal Revenue Service (or the Chief Counsel’s

21 delegate under paragraph (1)) may assert, com22 promise, or collect a penalty imposed by this sec23 tion with respect to a noneconomic substance

24 transaction even if there has not been a court de25 termination that the economic substance doctrine
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1 was relevant for purposes of this title to the

2 transaction if the Chief Counsel (or delegate) de3 termines that either was so relevant.

4 ‘‘(B) FINAL ORDER OF COURT.—If there is

5 a final order of a court that determines that the

6 economic substance doctrine was not relevant for

7 purposes of this title to a transaction (or series

8 of transactions), any penalty imposed under this

9 section with respect to the transaction (or series

10 of transactions) shall be rescinded.

11 ‘‘(4) APPLICABLERULES.—The rules of para12 graphs (2) and (3) of section 6707A(d) shall apply to

13 a compromise under paragraph (1).

14 ‘‘(e) COORDINATION WITH OTHER PENALTIES.—Ex15 cept as otherwise provided in this part, the penalty imposed

16 by this section shall be in addition to any other penalty

17 imposed by this title.

18 ‘‘(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).’’.

19 (b) COORDINATION WITH OTHER UNDERSTATEMENTS

20 AND PENALTIES.—

21 (1) The second sentence of section 6662(d)(2)(A)

22 is amended by inserting ‘‘and without regard to items
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1 with respect to which a penalty is imposed by section

2 6662B’’ before the period at the end.

3 (2) Subsection (e) of section 6662A is amended—

4 (A) in paragraph (1), by inserting ‘‘and

5 noneconomic substance transaction understate6 ments’’ after ‘‘reportable transaction understate7 ments’’ both places it appears,

8 (B) in paragraph (2)(A)—

9 (i) by inserting ‘‘6662B or’’ before

10 ‘‘6663’’ in the text, and

11 (ii) by striking ‘‘PENALTY’’ in the

12 heading and inserting ‘‘AND ECONOMIC SUB13 STANCE PENALTIES’’,

14 (C) in paragraph (2)(B)—

15 (i) by inserting ‘‘and section 6662B’’

16 after ‘‘This section’’, and

17 (ii) by striking ‘‘PENALTY’’ in the

18 heading and inserting ‘‘AND ECONOMIC SUB19 STANCE PENALTIES’’,

20 (D) in paragraph (3), by inserting ‘‘or non21 economic substance transaction understatement’’

22 after ‘‘reportable transaction understatement’’,

23 and

24 (E) by adding at the end the following new

25 paragraph:
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1 ‘‘(4) NONECONOMIC SUBSTANCE TRANSACTION

2 UNDERSTATEMENT.—For purposes of this subsection,

3 the term ‘noneconomic substance transaction under4 statement’ has the meaning given such term by sec5 tion 6662B(c).’’.

6 (3) Subsection (e) of section 6707A is amended—

7 (A) by striking ‘‘or’’ at the end of subpara8 graph (B), and

9 (B) by striking subparagraph (C) and in10 serting the following new subparagraphs:

11 ‘‘(C) is required to pay a penalty under sec12 tion 6662B with respect to any noneconomic

13 substance transaction, or

14 ‘‘(D) is required to pay a penalty under

15 section 6662(h) with respect to any transaction

16 and would (but for section 6662A(e)(2)(B)) have

17 been subject to penalty under section 6662A at a

18 rate prescribed under section 6662A(c) or to pen19 alty under section 6662B,’’.

20 (c) CLERICAL AMENDMENT.—The table of sections for

21 part II of subchapter A of chapter 68 is amended by insert22 ing after the item relating to section 6662A the following

23 new item:

‘‘Sec. 6662B. Penalty for understatements attributable to transactions lacking

economic substance, etc.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to transactions entered into after the

3 date of the enactment of this Act.

4 SEC. 12523. DENIAL OF DEDUCTION FOR INTEREST ON UN5 DERPAYMENTS ATTRIBUTABLE TO NON6 ECONOMIC SUBSTANCE TRANSACTIONS.

7 (a) IN GENERAL.—Section 163(m) (relating to interest

8 on unpaid taxes attributable to nondisclosed reportable

9 transactions) is amended—

10 (1) by striking ‘‘attributable’’ and all that fol11 lows and inserting the following: ‘‘attributable to—

12 ‘‘(1) the portion of any reportable transaction

13 understatement (as defined in section 6662A(b)) with

14 respect to which the requirement of section

15 6664(d)(2)(A) is not met, or

16 ‘‘(2) any noneconomic substance transaction un17 derstatement (as defined in section 6662B(c)).’’, and

18 (2) by inserting ‘‘AND NONECONOMIC SUBSTANCE

19 TRANSACTIONS’’ in the heading thereof after ‘‘TRANS20 ACTIONS’’.

21 (b) EFFECTIVE DATE.—The amendments made by this

22 section shall apply to transactions after the date of the en23 actment of this Act in taxable years ending after such date.
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1 Subtitle F—Protection of Social

2 Security

3 SEC. 12601. PROTECTION OF SOCIAL SECURITY.

4 To ensure that the assets of the trust funds established

5 under section 201 of the Social Security Act (42 U.S.C.

6 401) are not reduced as a result of the enactment of this

7 Act, the Secretary of the Treasury shall transfer annually

8 from the general revenues of the Federal Government to

9 those trust funds the following amounts:

10 (1) For fiscal year 2009, $86,000,000.

11 (2) For fiscal year 2010, $90,000,000.

12 (3) For fiscal year 2011, $88,000,000.

13 (4) For fiscal year 2012, $88,000,000.

14 (5) For fiscal year 2013, $5,000,000.

15 (6) For fiscal year 2014, $5,000,000.

16 (7) For fiscal year 2015, $4,000,000.

17 (8) For each fiscal year after fiscal year 2015,

18 $2,000,000.

19 SEC. 12602. INTEREST RATES FOR WATER AND WASTE DIS20 POSAL FACILITIES LOANS.

21 Section 307(a)(3) of the Consolidated Farm and Rural

22 Development Act (7 U.S.C. 1927(a)(3)) is amended by add23 ing at the end the following:

24 ‘‘(E) INTEREST RATES FOR WATER AND

25 WASTEDISPOSAL FACILITIES LOANS.—Notwith-
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1 standing subparagraph (A), for loans (other than

2 guaranteed loans) for water and waste disposal

3 facilities—

4 ‘‘(i) in the case of a loan that would be

5 subject to the 5 percent interest rate limita6 tion under subparagraph (A), the Secretary

7 shall set the interest rate equal to 60 percent

8 of the current market yield for outstanding

9 municipal obligations with remaining peri10 ods to maturity comparable to the average

11 maturity of such loans, adjusted to the

12 nearest one-eight of 1 per centum; and

13 ‘‘(ii) in the case of a loan that would

14 be subject to the 7 percent limitation in sub15 paragraph (A), the Secretary shall set the

16 interest rate equal to 80 percent of the cur17 rent market yield for outstanding munic18 ipal obligations with remaining periods to

19 maturity comparable to the average matu20 rity of such loans, adjusted to the nearest

21 one-eight of 1 per centum.’’.
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1 Subtitle G—Kansas Disaster Tax

2 Relief Assistance

3 SEC. 12701. TEMPORARY TAX RELIEF FOR KIOWA COUNTY,

4 KANSAS AND SURROUNDING AREA.

5 The following provisions of or relating to the Internal

6 Revenue Code of 1986 shall apply, in addition to the areas

7 described in such provisions, to an area with respect to

8 which a major disaster has been declared by the President

9 under section 401 of the Robert T. Stafford Disaster Relief

10 and Emergency Assistance Act (FEMA–1699–DR, as in ef11 fect on the date of the enactment of this Act) by reason of

12 severe storms and tornados beginning on May 4, 2007, and

13 determined by the President to warrant individual or indi14 vidual and public assistance from the Federal Government

15 under such Act with respect to damages attributed to such

16 storms and tornados:

17 (1) SUSPENSION OF CERTAIN LIMITATIONS ON

18 PERSONAL CASUALTY LOSSES.—Section 1400S(b)(1)

19 of the Internal Revenue Code of 1986, by substituting

20 ‘‘May 4, 2007’’ for ‘‘August 25, 2005’’.

21 (2) EXTENSION OF REPLACEMENT PERIOD FOR

22 NONRECOGNITION OF GAIN.—Section 405 of the

23 Katrina Emergency Tax Relief Act of 2005, by sub24 stituting ‘‘on or after May 4, 2007, by reason of the
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1 May 4, 2007, storms and tornados’’ for ‘‘on or after

2 August 25, 2005, by reason of Hurricane Katrina’’.

3 (3) EMPLOYEE RETENTION CREDIT FOR EMPLOY4 ERS AFFECTED BY MAY 4 STORMS AND TORNADOS.—

5 Section 1400R(a) of the Internal Revenue Code of

6 1986—

7 (A) by substituting ‘‘May 4, 2007’’ for ‘‘Au8 gust 28, 2005’’ each place it appears,

9 (B) by substituting ‘‘January 1, 2008’’ for

10 ‘‘January 1, 2006’’ both places it appears, and

11 (C) only with respect to eligible employers

12 who employed an average of not more than 200

13 employees on business days during the taxable

14 year before May 4, 2007.

15 (4) SPECIAL ALLOWANCE FOR CERTAIN PROP16 ERTY ACQUIRED ON OR AFTER MAY 5, 2007.—Section

17 1400N(d) of such Code—

18 (A) by substituting ‘‘qualified Recovery As19 sistance property’’ for ‘‘qualified Gulf Oppor20 tunity Zone property’’ each place it appears,

21 (B) by substituting ‘‘May 5, 2007’’ for ‘‘Au22 gust 28, 2005’’ each place it appears,

23 (C) by substituting ‘‘December 31, 2008’’ for

24 ‘‘December 31, 2007’’ in paragraph (2)(A)(v),
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1 (D) by substituting ‘‘December 31, 2009’’

2 for ‘‘December 31, 2008’’ in paragraph (2)(A)(v),

3 (E) by substituting ‘‘May 4, 2007’’ for ‘‘Au4 gust 27, 2005’’ in paragraph (3)(A),

5 (F) by substituting ‘‘January 1, 2009’’ for

6 ‘‘January 1, 2008’’ in paragraph (3)(B), and

7 (G) determined without regard to para8 graph (6) thereof.

9 (5) INCREASE IN EXPENSING UNDER SECTION

10 179.—Section 1400N(e) of such Code, by substituting

11 ‘‘qualified section 179 Recovery Assistance property’’

12 for ‘‘qualified section 179 Gulf Opportunity Zone

13 property’’ each place it appears.

14 (6) EXPENSING FOR CERTAIN DEMOLITION AND

15 CLEAN-UP COSTS.—Section 1400N(f) of such Code—

16 (A) by substituting ‘‘qualified Recovery As17 sistance clean-up cost’’ for ‘‘qualified Gulf Op18 portunity Zone clean-up cost’’ each place it ap19 pears, and

20 (B) by substituting ‘‘beginning on May 4,

21 2007, and ending on December 31, 2009’’ for

22 ‘‘beginning on August 28, 2005, and ending on

23 December 31, 2007’’ in paragraph (2) thereof.

24 (7) TREATMENT OF PUBLIC UTILITY PROPERTY

25 DISASTER LOSSES.—Section 1400N(o) of such Code.
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1 (8) TREATMENT OF NET OPERATING LOSSES AT2 TRIBUTABLETO STORM LOSSES.—Section 1400N(k) of

3 such Code—

4 (A) by substituting ‘‘qualified Recovery As5 sistance loss’’ for ‘‘qualified Gulf Opportunity

6 Zone loss’’ each place it appears,

7 (B) by substituting ‘‘after May 3, 2007, and

8 before on January 1, 2010’’ for ‘‘after August 27,

9 2005, and before January 1, 2008’’ each place it

10 appears,

11 (C) by substituting ‘‘May 4, 2007’’ for ‘‘Au12 gust 28, 2005’’ in paragraph (2)(B)(ii)(I) there13 of,

14 (D) by substituting ‘‘qualified Recovery As15 sistance property’’ for ‘‘qualified Gulf Oppor16 tunity Zone property’’ in paragraph (2)(B)(iv)

17 thereof, and

18 (E) by substituting ‘‘qualified Recovery As19 sistance casualty loss’’ for ‘‘qualified Gulf Op20 portunity Zone casualty loss’’ each place it ap21 pears.

22 (9) TREATMENT OF REPRESENTATIONS REGARD23 ING INCOME ELIGIBILITY FOR PURPOSES OF QUALI24 FIED RENTAL PROJECT REQUIREMENTS.—Section

25 1400N(n) of such Code.
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1 (10) SPECIAL RULES FOR USE OF RETIREMENT

2 FUNDS.—Section 1400Q of such Code—

3 (A) by substituting ‘‘qualified Recovery As4 sistance distribution’’ for ‘‘qualified hurricane

5 distribution’’ each place it appears,

6 (B) by substituting ‘‘on or after May 4,

7 2007, and before January 1, 2009’’ for ‘‘on or

8 after August 25, 2005, and before January 1,

9 2007’’ in subsection (a)(4)(A)(i),

10 (C) by substituting ‘‘qualified storm dis11 tribution’’ for ‘‘qualified Katrina distribution’’

12 each place it appears,

13 (D) by substituting ‘‘after November 4,

14 2006, and before May 5, 2007’’ for ‘‘after Feb15 ruary 28, 2005, and before August 29, 2005’’ in

16 subsection (b)(2)(B)(ii),

17 (E) by substituting ‘‘beginning on May 4,

18 2007, and ending on November 5, 2007’’ for ‘‘be19 ginning on August 25, 2005, and ending on Feb20 ruary 28, 2006’’ in subsection (b)(3)(A),

21 (F) by substituting ‘‘qualified storm indi22 vidual’’ for ‘‘qualified Hurricane Katrina indi23 vidual’’ each place it appears,

24 (G) by substituting ‘‘December 31, 2007’’

25 for ‘‘December 31, 2006’’ in subsection (c)(2)(A),
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1 (H) by substituting ‘‘beginning on June 4,

2 2007, and ending on December 31, 2007’’ for

3 ‘‘beginning on September 24, 2005, and ending

4 on December 31, 2006’’ in subsection

5 (c)(4)(A)(i),

6 (I) by substituting ‘‘May 4, 2007’’ for ‘‘Au7 gust 25, 2005’’ in subsection (c)(4)(A)(ii), and

8 (J) by substituting ‘‘January 1, 2008’’ for

9 ‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii).

10 Subtitle H—Other Provisions

11 SEC. 12801. INCOME AVERAGING FOR AMOUNTS RECEIVED

12 IN CONNECTION WITH THE EXXON VALDEZ

13 LITIGATION.

14 (a) INCOME AVERAGING OF AMOUNTS RECEIVED FROM

15 THE EXXON VALDEZ LITIGATION.—For purposes of section

16 1301 of the Internal Revenue Code of 1986—

17 (1) any qualified taxpayer who receives any

18 qualified settlement income in any taxable year shall

19 be treated as engaged in a fishing business (deter20 mined without regard to the commercial nature of the

21 business), and

22 (2) such qualified settlement income shall be

23 treated as income attributable to such a fishing busi24 ness for such taxable year.
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1 (b) CONTRIBUTIONS OF AMOUNTS RECEIVED TO RE2 TIREMENT ACCOUNTS.—

3 (1) IN GENERAL.—Any qualified taxpayer who

4 receives qualified settlement income during the tax5 able year may, at any time before the end of the tax6 able year in which such income was received, make

7 one or more contributions to an eligible retirement

8 plan of which such qualified taxpayer is a beneficiary

9 in an aggregate amount not to exceed the lesser of—

10 (A) $100,000 (reduced by the amount of

11 qualified settlement income contributed to an eli12 gible retirement plan in prior taxable years pur13 suant to this subsection), or

14 (B) the amount of qualified settlement in15 come received by the individual during the tax16 able year.

17 (2) TIME WHEN CONTRIBUTIONS DEEMED

18 MADE.—For purposes of paragraph (1), a qualified

19 taxpayer shall be deemed to have made a contribution

20 to an eligible retirement plan on the last day of the

21 taxable year in which such income is received if the

22 contribution is made on account of such taxable year

23 and is made not later than the time prescribed by law

24 for filing the return for such taxable year (not includ25 ing extensions thereof).
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1 (3) TREATMENT OF CONTRIBUTIONS TO ELIGIBLE

2 RETIREMENT PLANS.—For purposes of the Internal

3 Revenue Code of 1986, if a contribution is made pur4 suant to paragraph (1) with respect to qualified set5 tlement income, then—

6 (A) except as provided in paragraph (4)—

7 (i) to the extent of such contribution,

8 the qualified settlement income shall not be

9 included in gross income, and

10 (ii) for purposes of section 72 of such

11 Code, such contribution shall not be consid12 ered to be investment in the contract,

13 (B) the qualified taxpayer shall, to the ex14 tent of the amount of the contribution, be

15 treated—

16 (i) as having received the qualified set17 tlement income—

18 (I) in the case of a contribution to

19 an individual retirement plan (as de20 fined under section 7701(a)(37) of such

21 Code), in a distribution described in

22 section 408(d)(3) of such Code, and

23 (II) in the case of any other eligi24 ble retirement plan, in an eligible roll-
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1 over distribution (as defined under sec2 tion 402(f)(2) of such Code), and

3 (ii) as having transferred the amount

4 to the eligible retirement plan in a direct

5 trustee to trustee transfer within 60 days of

6 the distribution,

7 (C) section 408(d)(3)(B) of the Internal

8 Revenue Code of 1986 shall not apply with re9 spect to amounts treated as a rollover under this

10 paragraph, and

11 (D) section 408A(c)(3)(B) of the Internal

12 Revenue Code of 1986 shall not apply with re13 spect to amounts contributed to a Roth IRA (as

14 defined under section 408A(b) of such Code) or

15 a designated Roth contribution to an applicable

16 retirement plan (within the meaning of section

17 402A of such Code) under this paragraph.

18 (4) SPECIAL RULE FOR ROTH IRAS AND ROTH

19 401(k)S.—For purposes of the Internal Revenue Code

20 of 1986, if a contribution is made pursuant to para21 graph (1) with respect to qualified settlement income

22 to a Roth IRA (as defined under section 408A(b) of

23 such Code) or as a designated Roth contribution to an

24 applicable retirement plan (within the meaning of

25 section 402A of such Code), then—
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1 (A) the qualified settlement income shall be

2 includible in gross income, and

3 (B) for purposes of section 72 of such Code,

4 such contribution shall be considered to be in5 vestment in the contract.

6 (5) ELIGIBLE RETIREMENT PLAN.—For purpose

7 of this subsection, the term ‘‘eligible retirement plan’’

8 has the meaning given such term under section

9 402(c)(8)(B) of the Internal Revenue Code of 1986.

10 (c) TREATMENT OF QUALIFIED SETTLEMENT INCOME

11 UNDER EMPLOYMENT TAXES.—

12 (1) SECA.—For purposes of chapter 2 of the In13 ternal Revenue Code of 1986 and section 211 of the

14 Social Security Act, no portion of qualified settlement

15 income received by a qualified taxpayer shall be treat16 ed as self-employment income.

17 (2) FICA.—For purposes of chapter 21 of the In18 ternal Revenue Code of 1986 and section 209 of the

19 Social Security Act, no portion of qualified settlement

20 income received by a qualified taxpayer shall be treat21 ed as wages.

22 (d) QUALIFIED TAXPAYER.—For purposes of this sec23 tion, the term ‘‘qualified taxpayer’’ means—
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1 (1) any individual who is a plaintiff in the civil

2 action In re Exxon Valdez, No. 89–095–CV (HRH)

3 (Consolidated) (D. Alaska); or

4 (2) any individual who is a beneficiary of the es5 tate of such a plaintiff who—

6 (A) acquired the right to receive qualified

7 settlement income from that plaintiff; and

8 (B) was the spouse or an immediate relative

9 of that plaintiff.

10 (e) QUALIFIED SETTLEMENT INCOME.—For purposes

11 of this section, the term ‘‘qualified settlement income’’

12 means any interest and punitive damage awards which

13 are—

14 (1) otherwise includible in gross income (deter15 mined without regard to subsection (b)), and

16 (2) received (whether as lump sums or periodic

17 payments) in connection with the civil action In re

18 Exxon Valdez, No. 89–095–CV (HRH) (Consolidated)

19 (D. Alaska) (whether pre- or post-judgment and

20 whether related to a settlement or judgment).
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1 SEC. 12802. 2-YEAR EXTENSION AND EXPANSION OF CHARI2 TABLE DEDUCTION FOR CONTRIBUTIONS OF

3 FOOD INVENTORY.

4 (a) IN GENERAL.—Section 170(e)(3)(C) (relating to

5 special rule for certain contributions of inventory and other

6 property) is amended—

7 (1) by striking ‘‘December 31, 2007’’ in clause

8 (iv) and inserting ‘‘December 31, 2009’’, and

9 (2) by redesignating clauses (iii) and (iv) as

10 clauses (iv) and (v), respectively, and by inserting

11 after clause (ii) the following new clause:

12 ‘‘(iii) DETERMINATION OF BASIS.—If a

13 taxpayer—

14 ‘‘(I) does not account for inven15 tories under section 471, and

16 ‘‘(II) is not required to capitalize

17 indirect costs under section 263A,

18 the taxpayer may elect, solely for purposes

19 of subparagraph (B), to treat the basis of

20 any apparently wholesome food as being

21 equal to 25 percent of the fair market value

22 of such food.’’.

23 (b) EFFECTIVE DATE.—The amendments made by this

24 section shall apply to contributions made after December

25 31, 2007.
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1 SEC. 12803. MILEAGE REIMBURSEMENTS TO CHARITABLE

2 VOLUNTEERS EXCLUDED FROM GROSS IN3 COME.

4 (a) IN GENERAL.—Part III of subchapter B of chapter

5 1 is amended by inserting after section 139A the following

6 new section:

7 ‘‘SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE

8 VOLUNTEERS.

9 ‘‘(a) IN GENERAL.—Gross income of an individual

10 does not include amounts received, from an organization

11 described in section 170(c), as reimbursement of operating

12 expenses with respect to use of a passenger automobile for

13 the benefit of such organization. The preceding sentence

14 shall apply only to the extent that such reimbursement

15 would be deductible under this chapter if section 274(d)

16 were applied—

17 ‘‘(1) by using the standard business mileage rate

18 in effect under section 162(a) at the time of such use,

19 and

20 ‘‘(2) as if the individual were an employee of an

21 organization not described in section 170(c).

22 ‘‘(b) APPLICATION TO VOLUNTEER SERVICES ONLY.—

23 Subsection (a) shall not apply with respect to any expenses

24 relating to the performance of services for compensation.

25 ‘‘(c) NO DOUBLE BENEFIT.—No deduction or credit

26 shall be allowed under any other provision of this title with
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1 respect to the expenses excludable from gross income under

2 subsection (a).’’.

3 (b) CLERICAL AMENDMENT.—The table of sections for

4 part III of subchapter B of chapter 1 of the Internal Rev5 enue Code of 1986 is amended by inserting after the item

6 relating to section 139A and inserting the following new

7 item:

‘‘Sec. 139B. Reimbursement for use of passenger automobile for charity.’’.

8 (c) EFFECTIVE DATE.—The amendments made by this

9 section shall apply to taxable years beginning after the date

10 of the enactment of this Act.

11 SEC. 12804. BASIS ADJUSTMENT TO STOCK OF S CORPORA12 TIONS MAKING CHARITABLE CONTRIBUTIONS

13 OF PROPERTY.

14 (a) TECHNICAL AMENDMENT RELATED TO SECTION

15 1203 OF THE PENSION PROTECTION ACT OF 2006.—Sub16 section (d) of section 1366 is amended by adding at the

17 end the following new paragraph:

18 ‘‘(4) APPLICATION OF LIMITATION ON CHARI19 TABLECONTRIBUTIONS.—In the case of any chari20 table contribution of property to which the second

21 sentence of section 1367(a)(2) applies, paragraph (1)

22 shall not apply to the extent of the excess (if any)

23 of—

24 ‘‘(A) the shareholder’s pro rata share of such

25 contribution, over
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1 ‘‘(B) the shareholder’s pro rata share of the

2 adjusted basis of such property.’’.

3 (b) EFFECTIVE DATE.—The amendment made by this

4 section shall take effect as if included in the provision of

5 the Pension Protection Act of 2006 to which it relates.

6 SEC. 12805. PRIVATE PAYMENT TEST FOR PROFESSIONAL

7 SPORTS FACILITY BONDS.

8 Section 141, as amended by this Act, is amended—

9 (1) by striking the last sentence of subsection (a),

10 and

11 (2) by striking subsection (f).

12 SEC. 12806. APPLICATION OF REHABILITATION CREDIT AND

13 DEPRECIATION SCHEDULES TO CERTAIN

14 LOW-INCOME HOUSING FOR THE ELDERLY.

15 (a) IN GENERAL.—Section 251(d)(4)(X) of the Tax

16 Reform Act of 1986 is repealed.

17 (b) EFFECTIVE DATE.—The repeal made by this sec18 tion shall apply to property placed in service after the date

19 of the enactment of this Act.

20 SEC. 12807. COMPETITIVE CERTIFICATION AWARDS MODI21 FICATION AUTHORITY.

22 (a) IN GENERAL.—Section 48A (relating to qualifying

23 advanced coal project credit) is amended by adding at the

24 end the following new subsection:
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1 ‘‘(h) COMPETITIVE CERTIFICATION AWARDS MODI2 FICATION AUTHORITY.—In implementing this section or

3 section 48B, the Secretary is directed to modify the terms

4 of any competitive certification award and any associated

5 closing agreement where such modification—

6 ‘‘(1) is consistent with the objectives of such sec7 tion,

8 ‘‘(2) is requested by the recipient of the competi9 tive certification award, and

10 ‘‘(3) involves moving the project site to improve

11 the potential to capture and sequester carbon dioxide

12 emissions, reduce costs of transporting feedstock, and

13 serve a broader customer base,

14 unless the Secretary determines that the dollar amount of

15 tax credits available to the taxpayer under such section

16 would increase as a result of the modification or such modi17 fication would result in such project not being originally

18 certified. In considering any such modification, the Sec19 retary shall consult with other relevant Federal agencies,

20 including the Department of Energy.’’.

21 (b) EFFECTIVE DATE.—The amendment made by this

22 section shall take effect on the date of the enactment of this

23 Act and is applicable to all competitive certification awards

24 entered into under section 48A or 48B of the Internal Rev-
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1 enue Code of 1986, whether such awards were issued before,

2 on, or after such date of enactment.

3 SEC. 12808. QUALIFIED FORESTRY CONSERVATION BONDS.

4 (a) IN GENERAL.—Part IV of subchapter A of chapter

5 1 (relating to credits against tax) is amended by adding

6 at the end the following new subpart:

7 ‘‘Subpart I—Qualified Tax Credit Bonds

‘‘Sec. 54A. Credit to holders of qualified tax credit bonds.

‘‘Sec. 54B. Qualified forestry conservation bonds.

8 ‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT

9 BONDS.

10 ‘‘(a) ALLOWANCEOF CREDIT.—If a taxpayer holds a

11 qualified tax credit bond on one or more credit allowance

12 dates of the bond during any taxable year, there shall be

13 allowed as a credit against the tax imposed by this chapter

14 for the taxable year an amount equal to the sum of the cred15 its determined under subsection (b) with respect to such

16 dates.

17 ‘‘(b) AMOUNT OF CREDIT.—

18 ‘‘(1) IN GENERAL.—The amount of the credit de19 termined under this subsection with respect to any

20 credit allowance date for a qualified tax credit bond

21 is 25 percent of the annual credit determined with re22 spect to such bond.
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1 ‘‘(2) ANNUAL CREDIT.—The annual credit deter2 mined with respect to any qualified tax credit bond

3 is the product of—

4 ‘‘(A) the applicable credit rate, multiplied

5 by

6 ‘‘(B) the outstanding face amount of the

7 bond.

8 ‘‘(3) APPLICABLECREDIT RATE.—For purposes

9 of paragraph (2), the applicable credit rate is 70 per10 cent of the rate which the Secretary estimates will

11 permit the issuance of qualified tax credit bonds with

12 a specified maturity or redemption date without dis13 count and without interest cost to the qualified issuer.

14 The applicable credit rate with respect to any quali15 fied tax credit bond shall be determined as of the first

16 day on which there is a binding, written contract for

17 the sale or exchange of the bond.

18 ‘‘(4) SPECIAL RULE FOR ISSUANCE AND REDEMP19 TION.—In the case of a bond which is issued during

20 the 3-month period ending on a credit allowance date,

21 the amount of the credit determined under this sub22 section with respect to such credit allowance date

23 shall be a ratable portion of the credit otherwise deter24 mined based on the portion of the 3-month period
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1 during which the bond is outstanding. A similar rule

2 shall apply when the bond is redeemed or matures.

3 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—

4 ‘‘(1) IN GENERAL.—The credit allowed under

5 subsection (a) for any taxable year shall not exceed

6 the excess of—

7 ‘‘(A) the sum of the regular tax liability (as

8 defined in section 26(b)) plus the tax imposed by

9 section 55, over

10 ‘‘(B) the sum of the credits allowable under

11 this part (other than subpart C and this sub12 part).

13 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the

14 credit allowable under subsection (a) exceeds the limi15 tation imposed by paragraph (1) for such taxable

16 year, such excess shall be carried to the succeeding

17 taxable year and added to the credit allowable under

18 subsection (a) for such taxable year (determined be19 fore the application of paragraph (1) for such suc20 ceeding taxable year).

21 ‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes of

22 this section—

23 ‘‘(1) QUALIFIED TAX CREDIT BOND.—The term

24 ‘qualified tax credit bond’ means a qualified forestry

25 conservation bond which is part of an issue that
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1 meets the requirements of paragraphs (2), (3), (4),

2 (5), and (6).

3 ‘‘(2) SPECIAL RULES RELATING TO EXPENDI4 TURES.—

5 ‘‘(A) IN GENERAL.—An issue shall be treat6 ed as meeting the requirements of this paragraph

7 if, as of the date of issuance, the issuer reason8 ably expects—

9 ‘‘(i) 100 percent or more of the avail10 able project proceeds to be spent for 1 or

11 more qualified purposes within the 3-year

12 period beginning on such date of issuance,

13 and

14 ‘‘(ii) a binding commitment with a

15 third party to spend at least 10 percent of

16 such available project proceeds will be in17 curred within the 6-month period beginning

18 on such date of issuance.

19 ‘‘(B) FAILURE TO SPEND REQUIRED

20 AMOUNT OF BOND PROCEEDS WITHIN 3 YEARS.—

21 ‘‘(i) IN GENERAL.—To the extent that

22 less than 100 percent of the available project

23 proceeds of the issue are expended by the

24 close of the expenditure period for 1 or more

25 qualified purposes, the issuer shall redeem
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1 all of the nonqualified bonds within 90 days

2 after the end of such period. For purposes of

3 this paragraph, the amount of the non4 qualified bonds required to be redeemed

5 shall be determined in the same manner as

6 under section 142.

7 ‘‘(ii) EXPENDITURE PERIOD.—For

8 purposes of this subpart, the term ‘expendi9 ture period’ means, with respect to any

10 issue, the 3-year period beginning on the

11 date of issuance. Such term shall include

12 any extension of such period under clause

13 (iii).

14 ‘‘(iii) EXTENSION OF PERIOD.—Upon

15 submission of a request prior to the expira16 tion of the expenditure period (determined

17 without regard to any extension under this

18 clause), the Secretary may extend such pe19 riod if the issuer establishes that the failure

20 to expend the proceeds within the original

21 expenditure period is due to reasonable

22 cause and the expenditures for qualified

23 purposes will continue to proceed with due

24 diligence.
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1 ‘‘(C) QUALIFIED PURPOSE.—For purposes

2 of this paragraph, the term ‘qualified purpose’

3 means a purpose specified in section 54B(e).

4 ‘‘(D) REIMBURSEMENT.—For purposes of

5 this subtitle, available project proceeds of an

6 issue shall be treated as spent for a qualified

7 purpose if such proceeds are used to reimburse

8 the issuer for amounts paid for a qualified pur9 pose after the date that the Secretary makes an

10 allocation of bond limitation with respect to such

11 issue, but only if—

12 ‘‘(i) prior to the payment of the origi13 nal expenditure, the issuer declared its in14 tent to reimburse such expenditure with the

15 proceeds of a qualified tax credit bond,

16 ‘‘(ii) not later than 60 days after pay17 ment of the original expenditure, the issuer

18 adopts an official intent to reimburse the

19 original expenditure with such proceeds,

20 and

21 ‘‘(iii) the reimbursement is made not

22 later than 18 months after the date the

23 original expenditure is paid.

24 ‘‘(3) REPORTING.—An issue shall be treated as

25 meeting the requirements of this paragraph if the
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1 issuer of qualified tax credit bonds submits reports

2 similar to the reports required under section 149(e).

3 ‘‘(4) SPECIAL RULES RELATING TO ARBI4 TRAGE.—

5 ‘‘(A) IN GENERAL.—An issue shall be treat6 ed as meeting the requirements of this paragraph

7 if the issuer satisfies the requirements of section

8 148 with respect to the proceeds of the issue.

9 ‘‘(B) SPECIAL RULE FOR INVESTMENTS

10 DURING EXPENDITURE PERIOD.—Available

11 project proceeds invested during the expenditure

12 period shall not be subject to the requirements of

13 subparagraph (A).

14 ‘‘(C) SPECIAL RULE FOR RESERVE

15 FUNDS.—An issue shall not be treated as failing

16 to meet the requirements of subparagraph (A) by

17 reason of any fund which is expected to be used

18 to repay such issue if—

19 ‘‘(i) such fund is funded in a manner

20 reasonably expected to result in an amount

21 not greater than an amount necessary to

22 repay the issue, and

23 ‘‘(ii) the yield on such fund is not

24 greater than the discount rate determined
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1 under paragraph (5)(B) with respect to the

2 issue.

3 ‘‘(5) MATURITY LIMITATION.—

4 ‘‘(A) IN GENERAL.—An issue shall be treat5 ed as meeting the requirements of this paragraph

6 if the maturity of any bond which is part of

7 such issue does not exceed the maximum term de8 termined by the Secretary under subparagraph

9 (B).

10 ‘‘(B) MAXIMUM TERM.—During each cal11 endar month, the Secretary shall determine the

12 maximum term permitted under this paragraph

13 for bonds issued during the following calendar

14 month. Such maximum term shall be the term

15 which the Secretary estimates will result in the

16 present value of the obligation to repay the prin17 cipal on the bond being equal to 50 percent of the

18 face amount of such bond. Such present value

19 shall be determined using as a discount rate the

20 average annual interest rate of tax-exempt obli21 gations having a term of 10 years or more which

22 are issued during the month. If the term as so

23 determined is not a multiple of a whole year,

24 such term shall be rounded to the next highest

25 whole year.
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1 ‘‘(6) PROHIBITION ON FINANCIAL CONFLICTS OF

2 INTEREST.—An issue shall be treated as meeting the

3 requirements of this paragraph if the issuer certifies

4 that—

5 ‘‘(A) applicable State and local law require6 ments governing conflicts of interest are satisfied

7 with respect to such issue, and

8 ‘‘(B) if the Secretary prescribes additional

9 conflicts of interest rules governing the appro10 priate Members of Congress, Federal, State, and

11 local officials, and their spouses, such additional

12 rules are satisfied with respect to such issue.

13 ‘‘(e) OTHER DEFINITIONS.—For purposes of this

14 subchapter—

15 ‘‘(1) CREDIT ALLOWANCE DATE.—The term

16 ‘credit allowance date’ means—

17 ‘‘(A) March 15,

18 ‘‘(B) June 15,

19 ‘‘(C) September 15, and

20 ‘‘(D) December 15.

21 Such term includes the last day on which the bond is

22 outstanding.

23 ‘‘(2) BOND.—The term ‘bond’ includes any obli24 gation.
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1 ‘‘(3) STATE.—The term ‘State’ includes the Dis2 trict of Columbia and any possession of the United

3 States.

4 ‘‘(4) AVAILABLE PROJECT PROCEEDS.—The term

5 ‘available project proceeds’ means—

6 ‘‘(A) the excess of—

7 ‘‘(i) the proceeds from the sale of an

8 issue, over

9 ‘‘(ii) the issuance costs financed by the

10 issue (to the extent that such costs do not

11 exceed 2 percent of such proceeds), and

12 ‘‘(B) the proceeds from any investment of

13 the excess described in subparagraph (A).

14 ‘‘(f) CREDIT TREATED AS INTEREST.—For purposes of

15 this subtitle, the credit determined under subsection (a)

16 shall be treated as interest which is includible in gross in17 come.

18 ‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the

19 case of a tax credit bond held by an S corporation or part20 nership, the allocation of the credit allowed by this section

21 to the shareholders of such corporation or partners of such

22 partnership shall be treated as a distribution.

23 ‘‘(h) BONDS HELD BY REGULATED INVESTMENT COM24 PANIES AND REAL ESTATE INVESTMENT TRUSTS.—If any

25 qualified tax credit bond is held by a regulated investment
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1 company or a real estate investment trust, the credit deter2 mined under subsection (a) shall be allowed to shareholders

3 of such company or beneficiaries of such trust (and any

4 gross income included under subsection (f) with respect to

5 such credit shall be treated as distributed to such share6 holders or beneficiaries) under procedures prescribed by the

7 Secretary.

8 ‘‘(i) CREDITS MAY BE STRIPPED.—Under regulations

9 prescribed by the Secretary—

10 ‘‘(1) IN GENERAL.—There may be a separation

11 (including at issuance) of the ownership of a qualified

12 tax credit bond and the entitlement to the credit

13 under this section with respect to such bond. In case

14 of any such separation, the credit under this section

15 shall be allowed to the person who on the credit allow16 ance date holds the instrument evidencing the entitle17 ment to the credit and not to the holder of the bond.

18 ‘‘(2) CERTAIN RULES TO APPLY.—In the case of

19 a separation described in paragraph (1), the rules of

20 section 1286 shall apply to the qualified tax credit

21 bond as if it were a stripped bond and to the credit

22 under this section as if it were a stripped coupon.

23 ‘‘SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS.

24 ‘‘(a) QUALIFIED FORESTRY CONSERVATION BOND.—

25 For purposes of this subchapter, the term ‘qualified forestry
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1 conservation bond’ means any bond issued as part of an

2 issue if—

3 ‘‘(1) 100 percent of the available proceeds of such

4 issue are to be used for one or more qualified forestry

5 conservation purposes,

6 ‘‘(2) the bond is issued by a qualified issuer, and

7 ‘‘(3) the issuer designates such bond for purposes

8 of this section.

9 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES10 IGNATED.—The maximum aggregate face amount of bonds

11 which may be designated under subsection (a) by any issuer

12 shall not exceed the limitation amount allocated to such

13 issuer under subsection (d).

14 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

15 DESIGNATED.—There is a national qualified forestry con16 servation bond limitation of $500,000,000.

17 ‘‘(d) ALLOCATIONS.—

18 ‘‘(1) IN GENERAL.—The Secretary shall make al19 locations of the amount of the national qualified for20 estry conservation bond limitation described in sub21 section (c) among qualified forestry conservation pur22 poses in such manner as the Secretary determines ap23 propriate so as to ensure that all of such limitation

24 is allocated before the date which is 24 months after

25 the date of the enactment of this section.
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1 ‘‘(2) SOLICITATION OF APPLICATIONS.—The Sec2 retary shall solicit applications for allocations of the

3 national qualified forestry conservation bond limita4 tion described in subsection (c) not later than 90 days

5 after the date of the enactment of this section.

6 ‘‘(e) QUALIFIED FORESTRY CONSERVATION PUR7 POSE.—For purposes of this section, the term ‘qualified for8 estry conservation purpose’ means the acquisition by a

9 State or 501(c)(3) organization (as defined in section

10 150(a)(4)) from an unrelated person of forest and forest

11 land that meets the following qualifications:

12 ‘‘(1) Some portion of the land acquired must be

13 adjacent to United States Forest Service Land.

14 ‘‘(2) At least half of the land acquired must be

15 transferred to the United States Forest Service at no

16 net cost to the United States and not more than half

17 of the land acquired may either remain with or be do18 nated to a State.

19 ‘‘(3) All of the land must be subject to a native

20 fish habitat conservation plan approved by the United

21 States Fish and Wildlife Service.

22 ‘‘(4) The amount of acreage acquired must be at

23 least 40,000 acres.
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1 ‘‘(f) QUALIFIED ISSUER.—For purposes of this section,

2 the term ‘qualified issuer’ means a State or 501(c)(3) orga3 nization (as defined in section 150(a)(4)).’’.

4 (b) REPORTING.—Subsection (d) of section 6049 (relat5 ing to returns regarding payments of interest) is amended

6 by adding at the end the following new paragraph:

7 ‘‘(9) REPORTING OF CREDIT ON QUALIFIED TAX

8 CREDIT BONDS.—

9 ‘‘(A) IN GENERAL.—For purposes of sub10 section (a), the term ‘interest’ includes amounts

11 includible in gross income under section 54A

12 and such amounts shall be treated as paid on the

13 credit allowance date (as defined in section

14 54A(e)(1)).

15 ‘‘(B) REPORTING TO CORPORATIONS, ETC.—

16 Except as otherwise provided in regulations, in

17 the case of any interest described in subpara18 graph (A) of this paragraph, subsection (b)(4) of

19 this section shall be applied without regard to

20 subparagraphs (A), (H), (I), (J), (K), and

21 (L)(i).

22 ‘‘(C) REGULATORY AUTHORITY.—The Sec23 retary may prescribe such regulations as are nec24 essary or appropriate to carry out the purposes

25 of this paragraph, including regulations which
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1 require more frequent or more detailed report2 ing.’’.

3 (c) CONFORMING AMENDMENTS.—

4 (1) Sections 54(c)(2) and 1400N(l)(3)(B) are

5 each amended by striking ‘‘subpart C’’ and inserting

6 ‘‘subparts C and I’’.

7 (2) Section 1397E(c)(2) is amended by striking

8 ‘‘subpart H’’ and inserting ‘‘subparts H and I’’.

9 (3) Section 6401(b)(1) is amended by striking

10 ‘‘and H’’ and inserting ‘‘H, and I’’.

11 (4) The heading of subpart H of part IV of sub12 chapter A of chapter 1 is amended by striking ‘‘Cer13 tain Bonds’’ and inserting ‘‘Clean Renewable

14 Energy Bonds’’.

15 (5) The table of subparts for part IV of sub16 chapter A of chapter 1 is amended by striking the

17 item relating to subpart H and inserting the fol18 lowing new items:

‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE

ENERGY BONDS.

‘‘SUBPART I. QUALIFIED TAX CREDIT BONDS.’’.

19 (d) EFFECTIVE DATES.—The amendments made by

20 this section shall apply to obligations issued after the date

21 of the enactment of this Act.
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1 TITLE XIII—AMENDMENTS TO

2 COMMODITY EXCHANGE ACT

3 SEC. 13001. SHORT TITLE.

4 This title may be cited as the ‘‘CFTC Reauthorization

5 Act of 2007’’.

6 Subtitle A—General Provisions

7 SEC. 13101. CFTC AUTHORITY OVER OFF-EXCHANGE RETAIL

8 FOREIGN CURRENCY TRANSACTIONS.

9 (a) IN GENERAL.—Section 2(c)(2) of the Commodity

10 Exchange Act (7 U.S.C. 2(c)(2)) is amended by striking

11 subparagraphs (B) and (C) and inserting the following:

12 ‘‘(B) AGREEMENTS, CONTRACTS, AND

13 TRANSACTIONS IN RETAIL FOREIGN CURRENCY.—

14 ‘‘(i) This Act applies to, and the Com15 mission shall have jurisdiction over, an

16 agreement, contract, or transaction in for17 eign currency that—

18 ‘‘(I) is a contract of sale of a com19 modity for future delivery (or an op20 tion on such a contract) or an option

21 (other than an option executed or trad22 ed on a national securities exchange

23 registered pursuant to section 6(a) of

24 the Securities Exchange Act of 1934

25 (15 U.S.C. 78f(a))); and
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1 ‘‘(II) is offered to, or entered into

2 with, a person that is not an eligible

3 contract participant, unless the

4 counterparty, or the person offering to

5 be the counterparty, of the person is—

6 ‘‘(aa) a financial institution;

7 ‘‘(bb)(AA) a broker or dealer

8 registered under section 15(b) (ex9 cept paragraph (11) thereof) or

10 15C of the Securities Exchange

11 Act of 1934 (15 U.S.C. 78o(b),

12 78o–5); or

13 ‘‘(BB) an associated person

14 of a broker or dealer registered

15 under section 15(b) (except para16 graph (11) thereof) or 15C of the

17 Securities Exchange Act of 1934

18 (15 U.S.C. 78o(b), 78o–5) con19 cerning the financial or securities

20 activities of which the broker or

21 dealer makes and keeps records

22 under section 15C(b) or 17(h) of

23 the Securities Exchange Act of

24 1934 (15 U.S.C. 78o–5(b),

25 78q(h));
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1 ‘‘(cc) a futures commission

2 merchant registered under this

3 Act (that is not also a person de4 scribed in item (bb)), or an affili5 ated person of such a futures com6 mission merchant (that is not also

7 a person described in item (bb)) if

8 such futures commission merchant

9 makes and keeps records under

10 section 4f(c)(2)(B) of this Act con11 cerning the futures and other fi12 nancial activities of such affili13 ated person;

14 ‘‘(dd) an insurance company

15 described in section 1a(12)(A)(ii)

16 of this Act, or a regulated sub17 sidiary or affiliate of such an in18 surance company;

19 ‘‘(ee) a financial holding

20 company (as defined in section 2

21 of the Bank Holding Company

22 Act of 1956); or

23 ‘‘(ff) an investment bank

24 holding company (as defined in

25 section 17(i) of the Securities Ex-
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1 change Act of 1934 (15 U.S.C.

2 78q(i))).

3 ‘‘(ii) Notwithstanding item (cc) of

4 clause (i)(II) of this subparagraph, agree5 ments, contracts, or transactions described

6 in clause (i) of this subparagraph shall be

7 subject to subsection (a)(1)(B) of this section

8 and sections 4(b), 4b, 4c(b), 4o, 6(c) and

9 6(d) (except to the extent that sections 6(c)

10 and 6(d) prohibit manipulation of the mar11 ket price of any commodity in interstate

12 commerce, or for future delivery on or sub13 ject to the rules of any market), 6c, 6d, 8(a),

14 13(a), and 13(b) if the agreements, con15 tracts, or transactions are offered, or en16 tered into, by a person that is registered as

17 a futures commission merchant or an affili18 ated person of a futures commission mer19 chant registered under this Act that is not

20 also a person described in any of items

21 (aa), (bb), (dd), (ee), or (ff) of clause (i) of

22 this subparagraph.

23 ‘‘(iii)(I) Notwithstanding item (cc) of

24 clause (i)(II), a person shall not participate

25 in the solicitation or recommendation of
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1 any agreement, contract, or transaction de2 scribed in clause (i) entered into with or to

3 be entered into with a person described in

4 such item, unless the person—

5 ‘‘(aa) is registered in such capac6 ity as the Commission by rule, regula7 tion, or order shall determine; and

8 ‘‘(bb) is a member of a futures as9 sociation registered under section 17.

10 ‘‘(II) Subclause (I) shall not

11 apply to—

12 ‘‘(aa) any person described

13 in any of items (aa), (bb), (dd),

14 (ee), or (ff) of subparagraph

15 (B)(i)(II); or

16 ‘‘(bb) any such person’s asso17 ciated persons.

18 ‘‘(C)(i)(I) This subparagraph shall apply to

19 any agreement, contract, or transaction in for20 eign currency that is—

21 ‘‘(aa) offered to, or entered into with,

22 a person that is not an eligible contract

23 participant (except that this subparagraph

24 shall not apply if the counterparty, or the

25 person offering to be the counterparty, of the
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1 person that is not an eligible contract par2 ticipant is a person described in any of

3 items (aa), (bb), (dd), (ee), or (ff) of sub4 paragraph (B)(i)(II)); and

5 ‘‘(bb) offered, or entered into, on a le6 veraged or margined basis, or financed by

7 the offeror, the counterparty, or a person

8 acting in concert with the offeror or

9 counterparty on a similar basis.

10 ‘‘(II) Subclause (I) shall not apply to—

11 ‘‘(aa) a security that is not a security

12 futures product; or

13 ‘‘(bb) a contract of sale that—

14 ‘‘(AA) results in actual delivery

15 within 2 days; or

16 ‘‘(BB) creates an enforceable obli17 gation to deliver between a seller and

18 buyer that have the ability to deliver

19 and accept delivery, respectively, in

20 connection with their line of business.

21 ‘‘(ii)(I) Agreements, contracts, or transactions

22 described in clause (i) of this subparagraph shall be

23 subject to subsection (a)(1)(B) of this section and sec24 tions 4(b), 4b, 4c(b), 4o, 6(c) and 6(d) (except to the

25 extent that sections 6(c) and 6(d) prohibit manipula-
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1 tion of the market price of any commodity in inter2 state commerce, or for future delivery on or subject to

3 the rules of any market), 6c, 6d, 8(a), 13(a), and

4 13(b).

5 ‘‘(II) Subclause (I) of this clause shall not apply

6 to—

7 ‘‘(aa) any person described in any of items

8 (aa), (bb), (dd), (ee), or (ff) of subparagraph

9 (B)(i)(II); or

10 ‘‘(bb) any such person’s associated persons.

11 ‘‘(iii)(I) A person shall not participate in the solicita12 tion or recommendation of any agreement, contract, or

13 transaction described in clause (i) of this subparagraph un14 less the person is registered in such capacity as the Commis15 sion by rule, regulation, or order shall determine, and is

16 a member of a futures association registered under section

17 17.

18 ‘‘(II) Subclause (I) shall not apply to—

19 ‘‘(aa) any person described in any of items (aa),

20 (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or

21 ‘‘(bb) any such person’s associated persons.

22 ‘‘(iv)(I) Sections 4(b) and 4b shall

23 apply to any agreement, contract, or trans24 action described in clause (i) of this sub25 paragraph as if the agreement, contract, or
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1 transaction were a contract of sale of a

2 commodity for future delivery.

3 ‘‘(II) The Commission may, after

4 issuing notice and soliciting comment, issue

5 rules proscribing fraud in connection with

6 any agreement, contract, or transaction de7 scribed in clause (i) in an exempt com8 modity or an agricultural commodity.

9 Nothing in this provision shall affect the de10 termination of whether such agreement, con11 tract, or transaction is a contract for the

12 purchase or sale of a commodity for future

13 delivery for purposes of section 4(a).

14 ‘‘(v) This subparagraph shall not be

15 construed to limit any jurisdiction that the

16 Commission may otherwise have under any

17 other provision of this Act over an agree18 ment, contract, or transaction that is a con19 tract of sale of a commodity for future de20 livery.

21 ‘‘(vi) This subparagraph shall not be

22 construed to limit any jurisdiction that the

23 Commission or the Securities and Exchange

24 Commission may otherwise have under any

25 other provision of this Act with respect to
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1 security futures products and persons effect2 ing transactions in security futures prod3 ucts.’’.

4 (b) EFFECTIVE DATE.—Clause (iii) of section

5 2(c)(2)(B) and clause (iii) of section 2(c)(2)(C) of the Com6 modity Exchange Act, as amended by subsection (a) of this

7 section, shall be effective 120 days after the date of the en8 actment of this Act or such other time as the Commodity

9 Futures Trading Commission shall determine.

10 SEC. 13102. LIAISON WITH DEPARTMENT OF JUSTICE.

11 Section 2(a)(9) of the Commodity Exchange Act (7

12 U.S.C. 2(a)(9)) is amended by adding at the end the fol13 lowing:

14 ‘‘(C) LIAISON WITH DEPARTMENT OF JUS15 TICE.—

16 ‘‘(i) IN GENERAL.—The Commission

17 shall, in cooperation with the Attorney Gen18 eral, maintain a liaison between the Com19 mission and the Department of Justice to

20 coordinate civil and criminal investigations

21 and prosecutions of violations of this Act as

22 appropriate.

23 ‘‘(ii) DESIGNATION.—The Attorney

24 General shall designate a person as liaison

25 and take such steps as are necessary to fa-
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1 cilitate communications described in clause

2 (i).’’.

3 SEC. 13103. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO4 PRINCIPAL TRANSACTIONS.

5 Section 4b of the Commodity Exchange Act (7 U.S.C.

6 Section 6b) is amended—

7 (1) by redesignating subsections (b) and (c) as

8 subsections (c) and (d), respectively; and

9 (2) by striking ‘‘SEC.4b.’’ and all that follows

10 through the end of subsection (a) and inserting the

11 following:

12 ‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MIS13 LEAD.

14 ‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful—

15 ‘‘(1) for any person, in or in connection with

16 any order to make, or the making of, any contract of

17 sale of any commodity in interstate commerce or for

18 future delivery that is made, or to be made, on or sub19 ject to the rules of a designated contract market, for

20 or on behalf of any other person; or

21 ‘‘(2) for any person, in or in connection with

22 any order to make, or the making of, any contract of

23 sale of any commodity for future delivery, or other

24 agreement, contract, or transaction subject to para25 graphs (1) and (2) of section 5a(g), that is made, or
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1 to be made, for or on behalf of, or with, any other per2 son, other than on or subject to the rules of a des3 ignated contract market—

4 ‘‘(A) to cheat or defraud or attempt to cheat

5 or defraud the other person;

6 ‘‘(B) willfully to make or cause to be made

7 to the other person any false report or statement

8 or willfully to enter or cause to be entered for the

9 other person any false record;

10 ‘‘(C) willfully to deceive or attempt to de11 ceive the other person by any means whatsoever

12 in regard to any order or contract or the disposi13 tion or execution of any order or contract, or in

14 regard to any act of agency performed, with re15 spect to any order or contract for or, in the case

16 of paragraph (2), with the other person; or

17 ‘‘(D)(i) to bucket an order if the order is ei18 ther represented by the person as an order to be

19 executed, or is required to be executed, on or sub20 ject to the rules of a designated contract market;

21 or

22 ‘‘(ii) to fill an order by offset against the

23 order or orders of any other person, or willfully

24 and knowingly and without the prior consent of

25 the other person to become the buyer in respect
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1 to any selling order of the other person, or be2 come the seller in respect to any buying order of

3 the other person, if the order is either represented

4 by the person as an order to be executed, or is

5 required to be executed, on or subject to the rules

6 of a designated contract market unless the order

7 is executed in accordance with the rules of the

8 designated contract market.

9 ‘‘(b) CLARIFICATION.—Subsection (a)(2) of this section

10 shall not obligate any person, in or in connection with a

11 transaction in a contract of sale of a commodity for future

12 delivery, or other agreement, contract or transaction subject

13 to paragraphs (1) and (2) of section 5a(g), with another

14 person, to disclose to the other person nonpublic informa15 tion that may be material to the market price, rate, or level

16 of the commodity or transaction, except as necessary to

17 make any statement made to the other person in or in con18 nection with the transaction not misleading in any mate19 rial respect.’’.

20 SEC. 13104. CRIMINAL AND CIVIL PENALTIES.

21 (a) ENFORCEMENT POWERS OF THE COMMISSION.—

22 Section 6(c) of the Commodity Exchange Act (7 U.S.C. 9,

23 15) is amended in paragraph (3) of the 10th sentence—

24 (1) by inserting ‘‘(A)’’ after ‘‘assess such person’’;

25 and
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1 (2) by inserting after ‘‘each such violation’’ the

2 following: ‘‘, or (B) in any case of manipulation or

3 attempted manipulation in violation of this sub4 section, subsection (d), or section 9(a)(2), a civil pen5 alty of not more than the greater of $1,000,000 or tri6 ple the monetary gain to such person for each such

7 violation,’’.

8 (b) NONENFORCEMENT OF RULES OF GOVERNMENT OR

9 OTHER VIOLATIONS.—Section 6b of the Commodity Ex10 change Act (7 U.S.C. 13a) is amended—

11 (1) in the first sentence, by inserting before the

12 period at the end the following: ‘‘, or, in any case of

13 manipulation or attempted manipulation in violation

14 of sections 6(c), 6(d), or 9(a)(2), a civil penalty of not

15 more than $1,000,000 for each such violation’’; and

16 (2) in the second sentence, by inserting before the

17 period at the end the following: ‘‘, except that if the

18 failure or refusal to obey or comply with the order in19 volved any offense under section 9(a)(2), the registered

20 entity, director, officer, agent, or employee shall be

21 guilty of a felony and, on conviction, shall be subject

22 to penalties under section 9(a)(2)’’.

23 (c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.—

24 Section 6c(d) of the Commodity Exchange Act (7 U.S.C.

25 13a–1(d)) is amended by striking ‘‘(d)’’ and all that follows
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1 through the end of paragraph (1) and inserting the fol2 lowing:

3 ‘‘(d) CIVIL PENALTIES.—

4 ‘‘(1) IN GENERAL.—In any action brought under

5 this section, the Commission may seek and the court

6 shall have jurisdiction to impose, on a proper show7 ing, on any person found in the action to have com8 mitted any violation—

9 ‘‘(A) a civil penalty in the amount of not

10 more than the greater of $100,000 or triple the

11 monetary gain to the person for each violation;

12 or

13 ‘‘(B) in any case of manipulation or at14 tempted manipulation in violation of sections

15 6(c), 6(d), or 9(a)(2), a civil penalty in the

16 amount of not more than the greater of

17 $1,000,000 or triple the monetary gain to the

18 person for each violation.’’.

19 (d) VIOLATIONS GENERALLY.—Section 9 of the Com20 modity Exchange Act (7 U.S.C. 13) is amended—

21 (1) in subsection (a), in the matter preceding

22 paragraph (1)—

23 (A) by striking ‘‘(or $500,000 in the case of

24 a person who is an individual)’’; and
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1 (B) by striking ‘‘five years’’ and inserting

2 ‘‘10 years’’;

3 (2) by re-designating subsection (f) as subsection

4 (e); and

5 (3) in paragraph (1) of subsection (e) (as redes6 ignated by paragraph (2)), by striking the period at

7 the end and inserting ‘‘; or’’.

8 SEC. 13105. AUTHORIZATION OF APPROPRIATIONS.

9 Section 12(d) of the Commodity Exchange Act (7

10 U.S.C. 16(d)) is amended to read as follows:

11 ‘‘(d) There are authorized to be appropriated such

12 sums as are necessary to carry out this Act for each of the

13 fiscal years 2008 through 2013.’’.

14 SEC. 13106. TECHNICAL AND CONFORMING AMENDMENTS.

15 (a) Section 4a(e) of the Commodity Exchange Act (7

16 U.S.C. 6a(e)) is amended in the last proviso by striking

17 ‘‘section 9(c)’’ and inserting ‘‘section 9(a)(5)’’.

18 (b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C.

19 6f(c)(4)(B)(i)) is amended by striking ‘‘compiled’’ and in20 serting ‘‘complied’’.

21 (c) Section 4k of such Act (7 U.S.C. 6k) is amended

22 by redesignating the second paragraph (5) as paragraph

23 (6).

24 (d) The Commodity Exchange Act is amended—
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1 (1) by redesignating the first section 4p (7

2 U.S.C. 6o–1), as added by section 121 of the Com3 modity Futures Modernization Act of 2000, as section

4 4q; and

5 (2) by moving such section to after the second

6 section 4p, as added by section 206 of Public Law

7 93–446.

8 (e) Subsections (a)(1) and (d)(1) of section 5c of such

9 Act (7 U.S.C. 7a–2(a)(1), (d)(1)) are each amended by

10 striking ‘‘5b(d)(2)’’ and inserting ‘‘5b(c)(2)’’.

11 (f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a–

12 2(f), 21(r)) are each amended by striking ‘‘4d(3)’’ and in13 serting ‘‘4d(c)’’.

14 (g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is

15 amended in the matter following subparagraph (B)—

16 (1) by striking ‘‘commenced’’ in the 2nd place it

17 appears; and

18 (2) by inserting ‘‘commenced’’ after ‘‘in a judi19 cial proceeding’’.

20 (h) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2))

21 is amended by striking ‘‘5b(b)(1)(E)’’ and inserting

22 ‘‘5b(c)(2)(H)’’.
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1 SEC. 13107. PORTFOLIO MARGINING AND SECURITY INDEX

2 ISSUES.

3 (a) The agencies represented on the President’s Work4 ing Group on Financial Markets shall work to ensure that

5 the Securities and Exchange Commission (SEC), the Com6 modity Futures Trading Commission (CFTC), or both, as

7 appropriate, have taken the actions required under sub8 section (b).

9 (b) The SEC, the CFTC, or both, as appropriate, shall

10 take action under their existing authorities to permit—

11 (1) by September 30, 2008, risk-based portfolio

12 margining for security options and security futures

13 products; and

14 (2) by June 30, 2008, the trading of futures on

15 certain security indexes by resolving issues related to

16 foreign security indexes.

17 Subtitle B—Significant Price Dis18 covery Contracts on Exempt

19 Commercial Markets

20 SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.

21 (a) DEFINITIONS.—Section la of the Commodity Ex22 change Act (7 U.S.C. la) is amended—

23 (1) by redesignating paragraph (33) as para24 graph (34); and

25 (2) by inserting after paragraph (32) the fol26 lowing:
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1 ‘‘(33) SIGNIFICANT PRICEDISCOVERY CON2 TRACT.—The term ‘significant price discovery con3 tract’ means an agreement, contract, or transaction

4 subject to section 2(h)(7)(A).’’.

5 (b) STANDARDS APPLICABLETO SIGNIFICANT PRICE

6 DISCOVERY CONTRACTS.—Section 2(h) of the Commodity

7 Exchange Act (7 U.S.C. 2(h)) is amended by adding at the

8 end the following:

9 ‘‘(7) STANDARDS APPLICABLETO SIGNIFICANT

10 PRICEDISCOVER CONTRACTS.—

11 ‘‘(A) IN GENERAL.—An agreement, contract,

12 or transaction conducted in reliance on the ex13 emption in paragraph (3) shall be subject to the

14 provisions of subparagraphs (B) through (E),

15 under such rules and regulations as the Commis16 sion may promulgate, provided that the Commis17 sion determines, in its discretion, that the agree18 ment, contract, or transaction performs a signifi19 cant price discovery function as described in sub20 paragraph (B).

21 ‘‘(B) SIGNIFICANT PRICEDISCOVERY DE22 TERMINATION.—In making a determination

23 whether an agreement, contract, or transaction

24 performs a significant price discovery function,

25 the Commission shall consider, as appropriate:
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1 ‘‘(i) PRICELINKAGE.—The extent to

2 which the agreement, contract, or trans3 action uses or otherwise relies on a daily or

4 final settlement price, or other major price

5 parameter, of a contract or contracts listed,

6 for trading on or subject to the rules of a

7 designated contract market or a derivatives

8 transaction execution facility, or a signifi9 cant price discovery contract traded on an

10 electronic trading facility, to value a posi11 tion, transfer or convert a position, cash or

12 financially settle a position, or close out a

13 position.

14 ‘‘(ii) ARBITRAGE.—The extent to which

15 the price for the agreement, contract, or

16 transaction is sufficiently related to the

17 price of a contract or contracts listed for

18 trading on or subject to the rules of a des19 ignated contract market or derivatives

20 transaction execution facility so as to per21 mit market participants to effectively arbi22 trage between the markets by simulta23 neously maintaining positions or executing

24 trades in the contracts on the electronic

25 trading facility and the designated contract
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1 market or derivatives transaction execution

2 facility on a frequent and recurring basis.

3 ‘‘(iii) MATERIAL PRICE REFERENCE.—

4 The extent to which, on a frequent and re5 curring basis, bids, offers, or transactions in

6 a commodity are directly based on, or are

7 determined by referencing, the prices gen8 erated by agreements, contracts, or trans9 actions being traded or executed on the elec10 tronic trading facility.

11 ‘‘(iv) MATERIAL LIQUIDITY.—The ex12 tent to which the volume of agreements, con13 tracts, or transactions in the commodity

14 being traded on the electronic trading facil15 ity is sufficient to have a material impact

16 on other agreements, contracts, or trans17 actions listed for trading on or subject to

18 the rules of a designated contract market, a

19 derivatives trading execution facility, or an

20 electronic trading facility operating in reli21 ance on the exemption in paragraph (3).

22 ‘‘(v) OTHER MATERIAL FACTORS.—

23 Such other material factors as the Commis24 sion specifies by rule as relevant to deter25 mine whether an agreement, contract, or
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1 transaction serves a significant price dis2 covery function.

3 ‘‘(C) COREPRINCIPLES APPLICABLETO SIG4 NIFICANT PRICEDISCOVERY CONTRACTS.—

5 ‘‘(i) IN GENERAL.—An electronic trad6 ing facility on which significant price dis7 covery contracts are traded or executed

8 shall, with respect to those contracts, comply

9 with the core principles specified in this

10 subparagraph.

11 ‘‘(ii) COREPRINCIPLES.—The elec12 tronic trading facility shall have reasonable

13 discretion in establishing the manner in

14 which it complies with the following core

15 principles:

16 ‘‘(I) CONTRACTS NOT READILY

17 SUSCEPTIBLE TO MANIPULATION.—The

18 electronic trading facility shall list

19 only significant price discovery con20 tracts that are not readily susceptible

21 to manipulation.

22 ‘‘(II) MONITORING OF TRADING.—

23 The electronic trading facility shall

24 monitor trading in significant price

25 discovery contracts to prevent market
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1 manipulation, price distortion, and

2 disruptions of the delivery or cash-set3 tlement process through market surveil4 lance, compliance, and disciplinary

5 practices and procedures, including

6 methods for conducting real-time moni7 toring of trading and comprehensive

8 and accurate trade reconstructions.

9 ‘‘(III) ABILITY TO OBTAIN INFOR10 MATION.—The electronic trading facil11 ity shall—

12 ‘‘(aa) establish and enforce

13 rules that will allow the electronic

14 trading facility to obtain any nec15 essary information to perform

16 any of the functions described in

17 this subparagraph;

18 ‘‘(bb) provide such informa19 tion to the Commission upon re20 quest; and

21 ‘‘(cc) have the capacity to

22 carry out such international in23 formation-sharing agreements as

24 the Commission may require.
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1 ‘‘(IV) POSITION LIMITATIONS OR

2 ACCOUNTABILITY.—The electronic trad3 ing facility shall adopt position limi4 tations or position accountability for

5 speculators in significant price dis6 covery contracts, where necessary and

7 appropriate, to reduce the potential

8 threat of market manipulation, price

9 distortion, and disruptions of the deliv10 ery or cash-settlement process or con11 gestion, especially during trading in

12 the delivery month.

13 ‘‘(V) EMERGENCY AUTHORITY.—

14 The electronic trading facility shall

15 adopt rules to provide for the exercise

16 of emergency authority, in consultation

17 or cooperation with the Commission,

18 where necessary and appropriate, in19 cluding the authority—

20 ‘‘(aa) to liquidate open posi21 tions in a significant price dis22 covery contract; and

23 ‘‘(bb) to suspend or curtail

24 trading in a significant price dis25 covery contract.
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1 ‘‘(VI) DAILY PUBLICATION OF

2 TRADING INFORMATION.—The elec3 tronic trading facility shall make pub4 lic daily information on price, trading

5 volume, and other trading data for sig6 nificant price discovery contracts, as

7 the Commission considers appropriate.

8 ‘‘(VII) COMPLIANCEWITH

9 RULES.—The electronic trading facility

10 shall monitor and enforce compliance

11 with any rules of the electronic trading

12 facility applicable to significant price

13 discovery contracts, including the

14 terms and conditions of such contracts

15 and any limitations on access to the

16 electronic trading facility with respect

17 to such contracts.

18 ‘‘(VIII) CONFLICT OF INTER19 EST.—The electronic trading facility

20 shall—

21 ‘‘(aa) establish and enforce

22 rules to minimize conflicts of in23 terest in its decision-making proc24 ess; and
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1 ‘‘(bb) establish a process for

2 resolving the conflicts.

3 ‘‘(IX) ANTITRUST CONSIDER4 ATIONS.—Unless necessary or appro5 priate to achieve the purposes of this

6 Act, the electronic trading facility shall

7 endeavor to avoid—

8 ‘‘(aa) adopting any rules or

9 taking any actions that result in

10 any unreasonable restraints of

11 trade; or

12 ‘‘(bb) imposing any material

13 anticompetitive burden on trading

14 on the electronic trading facility.

15 ‘‘(D) IMPLEMENTATION.—The electronic

16 trading facility shall have discretion to take into

17 account differences between cleared and

18 uncleared significant price discovery contracts in

19 applying core principles in subclauses (IV) and

20 (V) of subparagraph (C), and the Commission

21 shall take such differences into consideration

22 when reviewing the implementation of such core

23 principles by an electronic trading facility.

24 ‘‘(E) NEW SIGNIFICANT PRICE DISCOVERY

25 CONTRACTS.—
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1 ‘‘(i) NOTIFICATION.—An electronic

2 trading facility shall notify the Commission

3 whenever the electronic trading facility has

4 reason to believe that an agreement, con5 tract, or transaction conducted in reliance

6 on the exemption provided in paragraph (3)

7 displays any of the factors relating to a sig8 nificant price discovery function as de9 scribed in subparagraph (B) (including reg10 ulations under this paragraph).

11 ‘‘(ii) REVIEW.—In addition to any re12 view conducted upon receiving a notifica13 tion pursuant to clause (i), at any other

14 such time the Commission determines to be

15 appropriate, but at least on an annual

16 basis, the Commission shall conduct an

17 evaluation, appropriate to the agreement,

18 contract, or transaction, to determine

19 whether any agreement, contract, or trans20 action conducted on an electronic trading

21 facility in reliance on the exemption pro22 vided in paragraph (3) is performing a sig23 nificant price discovery function.’’.
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1 SEC. 13202. LARGE TRADER REPORTING.

2 (a) REPORTING AND RECORDKEEPING.—Section 4g of

3 the Commodity Exchange Act (7 U.S.C. 6g) is amended in

4 subsection (a) by striking ‘‘elsewhere;’’ and inserting ‘‘else5 where, and in any significant price discovery contract trad6 ed or executed on an electronic trading facility;’’.

7 (b) REPORTS OF POSITIONS EQUAL TO OR IN EXCESS

8 OF TRADING LIMITS.—Section 4i of the Commodity Ex9 change Act (7 U.S.C. 6i) is amended—

10 (1) by inserting ‘‘, or any significant price dis11 covery contract on an electronic trading facility’’

12 after ‘‘subject to the rules of any contract market or

13 derivatives transaction execution facility’’ ; and

14 (2) by inserting in the matter following para15 graph (2), ‘‘or electronic trading facility’’ after ‘‘sub16 ject to the rules of any other board of trade’’.

17 SEC. 13203. CONFORMING AMENDMENTS.

18 (a) Section 1a(12)(A)(x) of the Commodity Exchange

19 Act (7 U.S.C. 1a(12)(A)(x)) is amended by inserting ‘‘(other

20 than an electronic trading facility with respect to a signifi21 cant price discovery contract)’’ after ‘‘registered entity’’.

22 (b) Section 1a(29) of the Commodity Exchange Act (7

23 U.S.C. 1a(29)) is amended—

24 (1) in subparagraph (C), by striking ‘‘and’’ at

25 the end;
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1 (2) in subparagraph (D), by striking the period

2 and inserting ‘‘; and’’; and

3 (3) by adding at the end the following:

4 ‘‘(E) with respect to a contract that the

5 Commission determines is a significant price

6 discovery contract, any electronic trading facil7 ity on which the contract is executed or traded.’’.

8 (c)(1) Section 2(a)(1)(A) of the Commodity Exchange

9 Act (7 U.S.C. 2(a)(1)(A)) is amended by inserting after

10 ‘‘section 19 of this Act’’ the following: ‘‘, and significant

11 price discovery contracts traded or executed on an electronic

12 trading facility’’.

13 (2) Nothing contained in this subtitle or amendments

14 made by this subtitle shall be construed to affect the juris15 diction that the Commission or any regulatory authority

16 may otherwise have under any other provision of law with

17 respect to contracts, agreements, or transactions that are

18 not significant price discovery contracts.

19 (d) Section 2(h)(3) of the Commodity Exchange Act

20 (7 U.S.C. 2(h)(3)) is amended by striking ‘‘paragraph (4)’’

21 and inserting ‘‘paragraphs (4) and (7)’’.

22 (e) Section 2(h)(4) of the Commodity Exchange Act (7

23 U.S.C. 2(h)(4)) is amended by striking subparagraph (D)

24 and inserting the following:
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1 ‘‘(D) such rules, regulations, and orders as

2 the Commission may issue to ensure timely com3 pliance with any of the provisions of this Act ap4 plicable to a significant price discovery contract

5 traded on or executed on any electronic trading

6 facility.’’.

7 (f) Section 2(h)(5)(B)(iii)(I) of the Commodity Ex8 change Act (7 U.S.C. 2(h)(5)(B)(iii)(I)) is amended by in9 serting ‘‘or to make the determination described in subpara10 graph (B) of paragraph (7)’’ after ‘‘paragraph (4)’’.

11 (g) Section 4a of the Commodity Exchange Act (7

12 U.S.C. 6a) is amended—

13 (1) in subsection (a)—

14 (A) in the first sentence, by inserting ‘‘, or

15 on electronic trading facilities with respect to a

16 significant price discovery contract’’ after ‘‘de17 rivatives transaction execution facilities’’; and

18 (B) in the second sentence, by inserting ‘‘,

19 or on an electronic trading facility with respect

20 to a significant price discovery contract,’’ after

21 ‘‘derivatives transaction execution facility’’; and

22 (2) in subsection (b)—

23 (A) in paragraph (1), by inserting ‘‘or elec24 tronic trading facility with respect to a signifi-
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1 cant price discovery contract’’ after ‘‘facility or

2 facilities’’; and

3 (B) in paragraph (2), by inserting ‘‘or elec4 tronic trading facility with respect to a signifi5 cant price discovery contract’’ after ‘‘derivatives

6 transaction execution facility’’; and

7 (3) in subsection (e)—

8 (A) in the first sentence—

9 (i) by inserting ‘‘or by any electronic

10 trading facility’’ after ‘‘registered by the

11 Commission’’;

12 (ii) by inserting ‘‘or on an electronic

13 trading facility’’ after ‘‘derivatives trans14 action execution facility’’ the second place it

15 appears; and

16 (iii) by inserting ‘‘or electronic trading

17 facility’’ before ‘‘or such board of trade’’

18 each place it appears; and

19 (B) in the second sentence, by inserting ‘‘or

20 electronic trading facility with respect to a sig21 nificant price discovery contract’’ after ‘‘reg22 istered by the Commission’’.

23 (h) Section 5a(d) of the Commodity Exchange Act (7

24 U.S.C. 7a(d)(1)) is amended—
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1 (1) by redesignating paragraphs (4) through (9)

2 as paragraphs (5) through (10); and

3 (2) by inserting after paragraph (3) the fol4 lowing:

5 ‘‘(4) POSITION LIMITS OR ACCOUNTABILITY.—To

6 reduce the potential threat of market manipulation,

7 price distortion, and disruption of the delivery or

8 cash-settled process or congestion, especially during

9 trading in the delivery month, the derivatives trans10 action execution facility shall adopt position limits or

11 position accountability for speculators, where nec12 essary and appropriate for a contract, agreement or

13 transaction with an underlying commodity that has

14 a physically deliverable supply.’’.

15 (i) Section 5c(a) of the Commodity Exchange Act (7

16 U.S.C. 7a–2(a)) is amended in paragraph (1) by inserting

17 ‘‘, and section 2(h)(7) with respect to significant price dis18 covery contracts,’’ after ‘‘, and 5b(d)(2)’’.

19 (j) Section 5c(b) of the Commodity Exchange Act (7

20 U.S.C. 7a–2(b)) is amended—

21 (1) by striking paragraph (1) and inserting fol22 lowing:

23 ‘‘(1) IN GENERAL.—A contract market, deriva24 tives transaction execution facility, or electronic trad25 ing facility with respect to a significant price dis-
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1 covery contract may comply with any applicable core

2 principle through delegation of any relevant function

3 to a registered futures association or a registered enti4 ty that is not an electronic trading facility.’’;

5 (2) in paragraph (2), by striking ‘‘contract mar6 ket or derivatives transaction execution facility’’ and

7 inserting ‘‘contract market, derivatives transaction

8 execution facility, or electronic trading facility’’; and

9 (3) in paragraph (3), by striking ‘‘contract mar10 ket or derivatives transaction execution facility’’ each

11 place it appears and inserting ‘‘contract market, de12 rivatives transaction execution facility, or electronic

13 trading facility’’.

14 (k) Section 5c(d)(1) of the Commodity Exchange Act

15 (7 U.S.C. 7a–2(d)(1)) is amended by inserting ‘‘or

16 2(h)(7)(C) with respect to a significant price discovery con17 tract traded or executed on an electronic trading facility,’’

18 after ‘‘5b(d)(2)’’.

19 (l) Section 5e of the Commodity Exchange Act (7

20 U.S.C. 7b) is amended by inserting ‘‘, or revocation of the

21 right of an electronic trading facility to rely on the exemp22 tion set forth in section 2(h)(3) with respect to a significant

23 price discovery contract,’’ after ‘‘revocation of designation

24 as a registered entity’’ ;
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1874

HR 2419 EAS

1 (m) Section 6(b) of the Commodity Exchange Act (7

2 U.S.C. 8(b)) is amended by striking the first sentence and

3 all that follows through ‘‘resubmitted in completed form:

4 Provided,’’ and inserting the following:

5 ‘‘The Commission is authorized to suspend for a period

6 not to exceed 6 months or to revoke the designation or reg7 istration of any contract market or derivatives transaction

8 execution facility, or to revoke the right of an electronic

9 trading facility to rely on the exemption set forth in section

10 2(h)(3) with respect to a significant price discovery con11 tract, on a showing that the contract market or derivatives

12 transaction execution facility is not enforcing or has not

13 enforced its rules of government, made a condition of its

14 designation or registration as set forth in sections 5 through

15 5b or section 5f, or that the contract market or derivatives

16 transaction execution facility or electronic trading facility,

17 or any director, officer, agent, or employee thereof, otherwise

18 is violating or has violated any of the provisions of this

19 Act or any of the rules, regulations, or orders of the Com20 mission thereunder. Such suspension or revocation shall

21 only be made after a notice to the officers of the contract

22 market or derivatives transaction execution facility or elec23 tronic trading facility affected and upon a hearing on the

24 record: Provided,’’.
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1875

HR 2419 EAS

1 SEC. 13204. EFFECTIVE DATE.

2 (a) IN GENERAL.—Except as provided in this section,

3 this subtitle shall become effective on the date of enactment

4 of this Act.

5 (b) SIGNIFICANT PRICE DISCOVERY STANDARDS

6 RULEMAKING.—The Commission shall—

7 (1) not later than 180 days after the date of the

8 enactment of this Act, issue a proposed rule regarding

9 the significant price discovery standards in section

10 13201; and

11 (2) not later than 270 days after the date of en12 actment of this Act, issue a final rule.

13 (c) SIGNIFICANT PRICE DISCOVERY DETERMINA14 TIONS.—With respect to any electronic trading facility op15 erating on the effective date of the final rule regarding sig16 nificant price discovery standards, the Commission shall

17 complete a review of the agreements, contracts, and trans18 actions of such facilities not later than 180 days after that

19 effective date to determine whether any such agreement, con20 tract, or transaction performs a significant price discovery

21 function.

Attest:

Secretary.
110TH CONGRESS

1ST SESSION H. R. 2419

AMENDMENT