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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 541 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 541

To amend the Farm Security and Rural Investment Act of 2002 to promote 
   local and regional support for sustainable bioenergy and biobased 
    products, to support the future of farming, forestry, and land 
management, to develop and support local bioenergy, biobased products, 
               and food systems, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 8, 2007

 Mr. Feingold introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
To amend the Farm Security and Rural Investment Act of 2002 to promote 
   local and regional support for sustainable bioenergy and biobased 
    products, to support the future of farming, forestry, and land 
management, to develop and support local bioenergy, biobased products, 
               and food systems, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Opportunities Act of 2007''.

SEC. 2. DEFINITIONS.

    Section 9001 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8101) is amended--
            (1) by redesignating paragraphs (4) through (6), as 
        paragraphs (5) through (7), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).''; and
            (3) by adding at the end the following:
            ``(8) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.''.

SEC. 3. LOCAL AND REGIONAL SUSTAINABLE BIOENERGY AND BIOBASED PRODUCT 
              USE AND PRODUCTION.

    (a) Local and Regional Sustainable Bioenergy and Biobased Product 
Use and Production.--Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding at the end the 
following:

``SEC. 9012. LOCAL AND REGIONAL SUSTAINABLE BIOENERGY AND BIOBASED 
              PRODUCT USE AND PRODUCTION.

    ``(a) Extension, Education, Technical Assistance, Applied Research, 
and Development.--
            ``(1) In general.--The Secretary shall make grants to 
        States to carry out extension, education, applied research, and 
        development activities at appropriate institutions of higher 
        education, State agencies, or partnerships in the States to 
        support local and regional sustainable bioenergy and biobased 
        product use and production.
            ``(2) Allocation of funds.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), funds made available under paragraph (4) shall be 
                allocated among the States in accordance with the terms 
                and conditions of paragraphs (1) through (3) of section 
                3(c) of the Hatch Act of 1887 (7 U.S.C. 361c(c)) and 
                subparagraph (C).
                    ``(B) Unallocated funds.--
                            ``(i) In general.--The Secretary may use 
                        funds described in clause (ii) to provide bonus 
                        grants to States based on the need and merit of 
                        projects identified through annual reports 
                        submitted under paragraph (3)(E), as determined 
                        by the Secretary.
                            ``(ii) Relevant funds.--The funds 
                        referenced in clause (i) are funds that--
                                    ``(I) would otherwise remain 
                                unallocated under this subsection for a 
                                fiscal year;
                                    ``(II) remain unused by a State as 
                                of the end of the grant term, as 
                                determined by the Secretary; or
                                    ``(III) are returned to the 
                                Secretary in accordance with paragraph 
                                (3)(C)(ii).
                    ``(C) Administration.--The Secretary shall use not 
                more than 5 percent of funds made available under 
                paragraph (4)--
                            ``(i) to maintain a clearinghouse for 
                        projects funded under this subsection;
                            ``(ii) to fund liaisons to provide 
                        technical assistance within--
                                    ``(I) the Department of 
                                Agriculture;
                                    ``(II) the Department of Commerce;
                                    ``(III) the Department of Energy;
                                    ``(IV) the Environmental Protection 
                                Agency; and
                                    ``(V) other appropriate Federal 
                                agencies as determined by the 
                                Secretary.
                            ``(iii) to support studies, competitions, 
                        and administration required by this section; 
                        and
                            ``(iv) to support the collection and 
                        sharing of local innovations between the State 
                        lead agencies designated under this section.
            ``(3) Conditions on receiving grants.--
                    ``(A) Lead agency.--
                            ``(i) In general.--The Governor of a State 
                        shall designate or establish an agency, 
                        institution of higher education, or joint 
                        entity in the State as the lead agency for the 
                        distribution of grant funds.
                            ``(ii) Duties.--A lead agency designated 
                        under clause (i) shall--
                                    ``(I) encourage collaboration 
                                between agencies, institutions of 
                                higher education, cooperative 
                                extension, and appropriate nonprofit 
                                organizations in the State;
                                    ``(II) support private- and 
                                nonprofit-public partnerships for 
                                purposes of the grant;
                                    ``(III) establish a local citizen 
                                and industry advisory board;
                                    ``(IV) improve the energy 
                                independence of the State; and
                                    ``(V) in consultation with the 
                                advisory board, develop a comprehensive 
                                statewide energy plan to increase 
                                energy independence described in clause 
                                (iii).
                            ``(iii) Comprehensive plan.--The plan 
                        developed under clause (ii)(IV) shall--
                                    ``(I) support local and regional 
                                sustainable bioenergy and biobased 
                                product use and production;
                                    ``(II) provide flexibility for 
                                local needs;
                                    ``(III) support other renewable 
                                energy, energy efficiency and 
                                conservation activities, and 
                                coordination with other State and 
                                Federal energy initiatives (including 
                                the Clean Cities Program established 
                                under sections 405, 409, and 505 of the 
                                Energy Policy Act of 1992 (42 U.S.C. 
                                13231, 13235, 13256));
                                    ``(IV) support a diverse array of 
                                farm sizes, crops (including 
                                agroforestry), and production 
                                techniques, with a particular focus on 
                                small- and moderate-sized family farms;
                                    ``(V) have a goal of maximizing the 
                                public value of developing and using 
                                sustainable bioenergy and biobased 
                                products;
                                    ``(VI) include activities--
                                            ``(aa) to manage energy 
                                        usage through energy efficiency 
                                        and conservation;
                                            ``(bb) to develop new 
                                        energy sources in a manner that 
                                        is economically viable, 
                                        ecologically sound, and 
                                        socially responsible; and
                                            ``(cc) to grow or produce 
                                        biomass in a sustainable manner 
                                        that has net environmental 
                                        benefits and considers such 
                                        factors as relative water 
                                        quality, soil quality, air 
                                        quality, wildlife impacts, net 
                                        energy balance, crop diversity, 
                                        and provision of adequate 
                                        income for the agricultural 
                                        producers; and
                                    ``(VII) consider providing grant 
                                preferences to local and farmer-owned 
                                projects in order to retain and 
                                maximize local and regional economic 
                                benefits.
                    ``(B) Use of funds.--
                            ``(i) In general.--Subject to clause (ii), 
                        a grant received under this subsection may be 
                        used to pay the Federal share of carrying out 
                        that support the establishment, growth, and use 
                        of local bioenergy and biobased products, 
                        including--
                                    ``(I) extension;
                                    ``(II) curriculum development;
                                    ``(III) education and training;
                                    ``(IV) technical assistance;
                                    ``(V) applied research;
                                    ``(VI) grants to support local 
                                production and use of bioenergy and 
                                biobased products;
                                    ``(VII) energy conservation or 
                                support for other renewable fuels, if 
                                identified as part of the comprehensive 
                                statewide energy plan developed under 
                                subparagraph (A)(ii)(IV);
                                    ``(VIII) support of bioenergy and 
                                biobased product cooperatives through 
                                education, training, technical 
                                assistance, or grants; and
                                    ``(IX) any other activity 
                                identified or approved by the Secretary 
                                as meeting those goals.
                            ``(ii) Allocation of grant resources.--
                                    ``(I) In general.--Each 
                                comprehensive statewide energy plan 
                                shall include a balanced allocation of 
                                grant resources to ensure support for 
                                each of research, education, extension, 
                                and development.
                                    ``(II) Secretarial review.--If 
                                after review of a comprehensive 
                                statewide energy plan received under 
                                subparagraph (D)(i), the Secretary 
                                determines that the plan or allocation 
                                of resources is inadequate or 
                                inappropriate, the Secretary shall 
                                request clarification or revisions.
                    ``(C) Matching funds.--
                            ``(i) In general.--A recipient of funds for 
                        an activity under this subsection shall 
                        contribute an amount of non-Federal funds 
                        (including non-Federal funds from nonprofit 
                        organizations, local governments, and public-
                        private partnerships) in the form of cash or 
                        in-kind contributions to carry out the activity 
                        that is equal to the amount of Federal funds 
                        received for the activity.
                            ``(ii) Return of funds.--A recipient of 
                        funds for an activity under this subsection 
                        that fails to comply with the requirement to 
                        provide full matching funds for a fiscal year 
                        under clause (i) shall return to the Secretary 
                        an amount equal to the difference between--
                                    ``(I) the amount provided to the 
                                recipient under this subsection; and
                                    ``(II) the amount of matching funds 
                                actually provided by the recipient.
                    ``(D) Annual report.--
                            ``(i) In general.--Not later than February 
                        1 of each year, each State receiving a grant 
                        under this subsection shall submit to the 
                        Secretary a report that--
                                    ``(I) describes and evaluates the 
                                use of grant funds during the preceding 
                                fiscal year; and
                                    ``(II) includes the comprehensive 
                                statewide energy plan, and any 
                                revisions to the plan, developed under 
                                subparagraph (A)(ii)(IV).
                            ``(ii) Publication.--The Secretary shall 
                        make available to the public all reports 
                        received under clause (i).
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $30,000,000 for 
        each of fiscal years 2008 through 2013, to remain available 
        until expended.
    ``(b) Study.--
            ``(1) In general.--The Comptroller General of the United 
        States shall carry out a study that assesses--
                    ``(A) changes to law (including regulations) and 
                policies to provide or increase incentives for the 
                potential production of bioenergy (at levels greater 
                than in existence as of the date of enactment of this 
                section) to maintain local ownership, control, economic 
                development, and the value-added nature of bioenergy 
                and biobased product production;
                    ``(B) potential limits to prevent excessive 
                payments, including variable support (such as reducing 
                subsidies based on the price of bioenergy or a 
                comparable conventional energy source); and
                    ``(C) the use of existing and proposed incentives 
                for particular stages in the bioenergy system 
                (including production, blending, or retail), including 
                an evaluation of which incentives would be most 
                efficient and beneficial for local and regional 
                communities and consumers.
            ``(2) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress the report under paragraph (1).
    ``(c) Basic Research on Next Generation Technology.--
            ``(1) In general.--For each of fiscal years 2008 through 
        2013, the Secretary, acting through the National Research 
        Initiative, shall use $5,400,000 of funds of the Commodity 
        Credit Corporation, to remain available until expended, to 
        carry out additional research on biobased products and 
        bioenergy production with an emphasis on developing and 
        improving the next generation of products and production 
        methods (such as cellulosic ethanol).
            ``(2) Maintenance of funding.--The funding provided under 
        this subsection shall supplement (and not supplant) other 
        Federal funding for the National Research Initiative in those 
        research areas.
    ``(d) Supplemental Rural Cooperative Development Grants.--
            ``(1) In general.--For each of fiscal years 2008 through 
        2013, the Secretary, acting through the Under Secretary for 
        Rural Development, may use up to $1,000,000 to supplement 
        existing grants under the rural cooperative development grant 
        program established under section 310B(e) of the Consolidated 
        Farm and Rural Development Act (7 U.S.C. 1932(e)) (referred to 
        in this subsection as the `program').
            ``(2) Requirement.--The Secretary may award supplemental 
        grants under this subsection to program grant recipients the 
        applications or ongoing activities of which support, establish, 
        or assist the establishment of, renewable fuels or biobased 
        product-based cooperatives.
            ``(3) Amount.--The amount of a supplemental grant under 
        this subsection shall not exceed 20 percent of the amount of 
        the base program grant.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        each of fiscal years 2008 through 2013.
            ``(5) Maintenance of funding.--The funding provided under 
        this subsection shall supplement (and not supplant) other 
        Federal funding for the program.''.
    (b) Regional Bioenergy and Biobased Products Competitive Research, 
Education, and Extension Programs.--Title IV of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
seq.) is amended by adding at the end the following:

``SEC. 412. REGIONAL BIOENERGY AND BIOBASED PRODUCTS COMPETITIVE 
              RESEARCH, EDUCATION, AND EXTENSION PROGRAMS.

    ``(a) In General.--The Secretary shall establish regional funds in 
accordance with this section.
    ``(b) Unallocated Funds.--
            ``(1) In general.--The Secretary may use funds described in 
        paragraph (2) to provide bonus grants to regional centers based 
        on need and merit, as determined by the Secretary.
            ``(2) Relevant funds.--The funds referenced in paragraph 
        (1) are funds that--
                    ``(A) would otherwise remain unallocated under this 
                section for a fiscal year; or
                    ``(B) remain unused by a regional center as of the 
                end of the grant term, as determined by the Secretary; 
                or
                    ``(C) are returned to the Secretary in accordance 
                with paragraph (3)(B).
            ``(3) Matching funds.--
                    ``(A) In general.--A recipient of funds for an 
                activity under this section shall contribute in the 
                form of cash or in-kind contributions an amount of non-
                Federal funds to carry out the activity that is equal 
                to the amount of Federal funds received under this 
                section for the activity.
                    ``(B) Return of funds.--A recipient of funds for an 
                activity under this section that fails to comply with 
                the requirement to provide full matching funds for a 
                fiscal year under subparagraph (A) shall return to the 
                Secretary an amount equal to the difference between--
                            ``(i) the amount provided to the recipient 
                        under this section; and
                            ``(ii) the amount of matching funds 
                        actually provided by the recipient.
                    ``(C) Waiver.--The Secretary may waive the matching 
                funds requirement described in subparagraph (A) with 
                respect to a project if the Secretary determines that--
                            ``(i) the results of the project, while of 
                        particular benefit to a specific bioenergy or 
                        biobased product research question, are also 
                        likely to be generally applicable; or
                            ``(ii)(I) the project involves a minor crop 
                        or production method and deals with 
                        scientifically important research; and
                            ``(II) the grant recipient is unable to 
                        satisfy the matching funds requirement.
    ``(c) Identification of Regions.--
            ``(1) In general.--Regions under this section shall 
        correspond with the regions of the Cooperative State Research, 
        Education, and Extension Service of the Department of 
        Agriculture.
            ``(2) Subregions.--Each regional board established under 
        subsection (f) may establish up to 3 subregions based on common 
        characteristics, including--
                    ``(A) bioenergy production methods;
                    ``(B) research questions;
                    ``(C) the benefits in efficiency and coordination 
                of identifying the same regions as are used by other 
                Federal programs, such as regions used for sun grant 
                centers under section 9011(d) of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 8109(d)); and
                    ``(D) other factors important in fulfilling the 
                goal of increasing local and regional sustainable 
                bioenergy and biobased product use and production in 
                the United States.
    ``(d) Regional Funds.--
            ``(1) In general.--The Secretary shall establish for each 
        region identified under subsection (c) a regional fund.
            ``(2) Allocation of funds.--Funds made available under 
        subsection (g) shall be allocated among the regional funds in 
        accordance with the proportional share of funds received under 
        section 9012(a)(1) of the Farm Security and Rural Investment 
        Act of 2002 by the States that constitute the appropriate 
        region.
    ``(e) Competition.--
            ``(1) In general.--Not less often than once every 5 years, 
        in conjunction with the appropriate regional board, the 
        Secretary shall competitively award--
                    ``(A) the funds in each regional fund to a regional 
                center to carry out multi-State applied research, 
                extension, education, and development; and
                    ``(B) the designation of the regional center to an 
                agency, institution of higher education, nonprofit 
                organization, or joint entity in the region.
            ``(2) Shared centers.--An agency, institution of higher 
        education, nonprofit organization, or joint entity may host 
        more than 1 regional center if the appropriate regional board 
        determines that shared administrative and other expenses 
        benefits program efficiency.
    ``(f) Regional Board.--
            ``(1) In general.--The Secretary shall establish a regional 
        board for each region.
            ``(2) Membership.--
                    ``(A) In general.--The membership of each regional 
                board shall include--
                            ``(i) representatives of--
                                    ``(I) the Agricultural Research 
                                Service;
                                    ``(II) the Cooperative State 
                                Research, Education, and Extension 
                                Service;
                                    ``(III) the Natural Resources 
                                Conservation Service;
                                    ``(IV) nonprofit organizations with 
                                demonstrable expertise in sustainable 
                                agriculture and sustainable bioenergy 
                                and biobased product use and 
                                production;
                                    ``(V) cooperatives engaged in 
                                bioenergy or biobased products 
                                production;
                                    ``(VI) agricultural producers 
                                involved in production of agricultural 
                                commodities for bioenergy and biobased 
                                products;
                                    ``(VII) landowners or businesses 
                                involved in forestry; and
                                    ``(VIII) agribusinesses; and
                            ``(ii) 1 member from each State designated 
                        by the Governor of the State and approved by 
                        the Secretary who represents--
                                    ``(I) State cooperative extension 
                                services;
                                    ``(II) State agricultural 
                                experiment stations; and
                                    ``(III) State departments engaged 
                                in bioenergy and biobased products 
                                programs.
                    ``(B) Rotation.--The members of the board described 
                in clause (ii) shall regularly rotate among 
                representatives of the groups described in subclauses 
                (I), (II), and (III) in order that each regional board 
                has equitable representation of each of those groups.
            ``(3) Relation to existing or future regional 
        consortiums.--If a regional consortium is developed that, as 
        determined by the Secretary, fulfills the goals of this section 
        and reflects, to the maximum extent practicable, the membership 
        diversity described in paragraph (2), the regional consortium 
        or a subpart of the regional consortium may act as the regional 
        board for the purposes of this section.
            ``(4) Responsibilities.--Each regional board shall--
                    ``(A) promote the programs established under this 
                section at the regional level;
                    ``(B) establish goals and criteria for the 
                selection of projects authorized under this section 
                within the applicable region;
                    ``(C) appoint a technical committee to evaluate 
                proposals for projects to be considered under this 
                section by the regional board;
                    ``(D) review and act on the recommendations of the 
                technical committee, and coordinate the activities of 
                the regional board with the regional host institution; 
                and
                    ``(E) prepare and make available an annual report 
                covering projects funded under this section and 
                including an evaluation of the project activity.
            ``(5) Preferences.--In determining regional priorities and 
        making funding decisions, the regional board shall give 
        preference to--
                    ``(A) collaborative proposals;
                    ``(B) research that adapts existing technology to 
                local conditions;
                    ``(C) proposals that include more than 1 of the 
                components of education, extension, and research and 
                development;
                    ``(D) proposals that examine multiple factors 
                (including economic, social, and environmental factors) 
                at a landscape or watershed scale to maximize the 
                public value; and
                    ``(E) proposals that develop and evaluate more 
                sustainable alternatives to traditional monocultures, 
                including perennial continuous living cover systems and 
                incorporating bioenergy or biobased product production 
                on conventional farms in sensitive areas, such as 
                perennial biomass production on watercourses.
            ``(6) Other duties.--The regional board shall coordinate 
        with other Federal programs (including the research, extension, 
        and educational programs described in section 9011 of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8109)) to 
        support joint initiatives, encourage complimentary priorities, 
        and prevent duplication of effort.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this subsection $20,000,000 for each of 
fiscal years 2008 through 2013, to remain available until expended.''.
    (c) Agroforestry Conversion and Cellulosic Production Pilot 
Programs.--
            (1) Agroforestry conversion.--
                    (A) In general.--The Secretary of Agriculture 
                (referred to in this paragraph as the ``Secretary'') 
                shall carry out an agroforestry conversion pilot 
                program under which the Secretary shall provide 
                technical assistance, cost share assistance, grants, or 
                loans to landowners during the establishment phase of a 
                woody crop.
                    (B) Selection.--In providing assistance under this 
                paragraph, the Secretary shall--
                            (i) use a competitive selection process; 
                        and
                            (ii) consider diversity of--
                                    (I) region;
                                    (II) production method;
                                    (III) type of woody crop;
                                    (IV) method of requested support.
            (2) Cellulosic production pilot program.--
                    (A) In general.--The Secretary shall carry a 
                cellulosic production pilot program under which the 
                Secretary shall provide loans, loan guarantees, or 
                grants, or any combination thereof, to cooperatives, 
                businesses, or joint ventures to produce cellulosic 
                ethanol from woody biomass on a commercial scale.
                    (B) Multiple pilot programs.--If there is 
                sufficient funding for the Secretary to carry out more 
                than 1 pilot program under this paragraph, the 
                Secretary shall ensure, to the maximum extent 
                practicable, that the pilot programs are geographically 
                representative of the major forestry regions of the 
                United States.
            (3) Report.--Not later than October 1, 2013, the Secretary 
        shall submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that--
                    (A) describes the effectiveness of the pilot 
                programs under this subsection; and
                    (B) recommends whether or not the pilot programs 
                should be continued and at what funding level.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of fiscal years 2008 through 2013.
    (d) Reauthorizations.--
            (1) Renewable energy systems and energy efficiency 
        improvements.--Section 9006(f) of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 8106(f)) is amended by 
        striking ``section $23,000,000'' and all that follows and 
        inserting ``section--
            ``(1) $23,000,000 for fiscal year 2006;
            ``(2) $3,000,000 for fiscal year 2007; and
            ``(3) $40,000,000 for each of fiscal years 2008 through 
        2013.''.
            (2) Grants for certain value-added agricultural products.--
        Section 231(b)(4) of the Agricultural Risk Protection Act of 
        2000 (7 U.S.C. 1621 note; Public Law 106-224) is amended--
                    (A) by striking ``Not later'' and inserting the 
                following:
                    ``(A) Fiscal years 2003 through 2007.--Not later''; 
                and.
                    (B) by adding at the end the following:
                    ``(B) Fiscal years 2008 through 2013.--
                            ``(i) In general.--Not later than October 
                        1, 2007, and each October 1 thereafter through 
                        October 1, 2012, of the funds of the Commodity 
                        Credit Corporation, the Secretary shall made 
                        available to carry out this subsection, 
                        $60,000,000, to remain available until 
                        expended.
                            ``(ii) Use of funds.--The Secretary shall 
                        ensure that not less than 10 percent of the 
                        competitive grants awarded during each of 
                        fiscal years 2008 through 2013 are awarded to 
                        producers of value-added agricultural products 
                        that use or produce biobased products or 
                        bioenergy.''.

SEC. 4. FUTURE OF FARMING, RANCHING, AND LAND MANAGEMENT.

    (a) In General.--Subtitle D of the Consolidated Farm and Rural 
Development Act is amended by inserting after section 344 (7 U.S.C. 
1991) the following:

``SEC. 345. FUTURE OF FARMING, RANCHING, AND LAND MANAGEMENT.

    ``(a) Grants To Support the Future of Farming, Ranching, and Land 
Management.--
            ``(1) In general.--The Secretary shall make grants to 
        States to support the development of the next generation of 
        farmers, ranchers, and other land managers.
            ``(2) Allocation of funds.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), funds made available under paragraph (4) shall be 
                allocated among the States in accordance with the terms 
                and conditions of paragraphs (1) through (3) of section 
                3(c) of the Hatch Act of 1887 (7 U.S.C. 361c(c)) and 
                subparagraph (C).
                    ``(B) Unallocated funds.--
                            ``(i) In general.--The Secretary may use 
                        funds described in clause (ii) to provide bonus 
                        grants to States based on the need and merit of 
                        projects identified through annual reports 
                        submitted under paragraph (3)(E), as determined 
                        by the Secretary.
                            ``(ii) Relevant funds.--The funds 
                        referenced in clause (i) are funds that--
                                    ``(I) would otherwise remain 
                                unallocated under this subsection for a 
                                fiscal year; or
                                    ``(II) remain unused by a State as 
                                of the end of the grant term, as 
                                determined by the Secretary; or
                                    ``(III) are returned to the 
                                Secretary in accordance with paragraph 
                                (3)(D)(ii).
                    ``(C) Administration.--The Secretary shall use not 
                more than 5 percent of funds made available under 
                paragraph (4)--
                            ``(i) to maintain a clearinghouse for 
                        projects funded under this section;
                            ``(ii) to fund liaisons within each agency 
                        of the Department of Agriculture; and
                            ``(iii) to support studies, competitions, 
                        and administration required by this section.
            ``(3) Conditions on receiving grants.--
                    ``(A) In general.--The Governor of a State shall 
                designate or establish an agency, public institution of 
                higher education (as that term is defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001)), or joint entity in the State as the lead agency 
                for the distribution of grant funds.
                    ``(B) Duties.--A lead agency designated under 
                subparagraph (A) shall--
                            ``(i) encourage collaboration between 
                        agencies, cooperative extension, local 
                        nonprofit organizations, agricultural 
                        organizations, and institutions of higher 
                        education in the State;
                            ``(ii) support private- and nonprofit-
                        public partnerships for purposes of the grant;
                            ``(iii) establish a local citizen and 
                        industry advisory board;
                            ``(iv) in consultation with the advisory 
                        board, develop a statewide plan to increase 
                        opportunities for, and reduce barriers to, 
                        beginning farmers and ranchers and, in 
                        accordance with subparagraph (C), other rural 
                        professions;
                            ``(v) support the development of local 
                        community-based support and mentoring networks;
                            ``(vi) to the maximum extent practicable, 
                        enable the transfer of family farms to children 
                        or other relatives of owners in order to allow 
                        family farms to be kept whole in cases in which 
                        the division of the farm would result in a less 
                        viable agricultural operation; and
                            ``(vii) support small-scale models for 
                        farms or ranches for beginning farmers and 
                        ranchers and other rural professions, including 
                        models based on--
                                    ``(I) community-supported 
                                agriculture;
                                    ``(II) organic agriculture;
                                    ``(III) farmers markets;
                                    ``(IV) speciality agricultural 
                                products;
                                    ``(V) sustainable production;
                                    ``(VI) grazing;
                                    ``(VII) agrotourism; and
                                    ``(VIII) agroforestry.
                    ``(C) Other rural professions.--A State that 
                identifies other important rural professions in the 
                State (including professions involving forestry, 
                conservation, land management, tourism, or a 
                combination of those professions) may include those 
                professions in the statewide plan under subparagraph 
                (B)(iv).
                    ``(D) Matching funds.--
                            ``(i) In general.--A recipient of funds for 
                        an activity under this subsection shall 
                        contribute in the form of cash or in-kind 
                        contributions an amount of non-Federal funds to 
                        carry out the activity that is equal to the 
                        amount of Federal funds received for the 
                        activity.
                            ``(ii) Return of funds.--A recipient of 
                        funds for an activity under this subsection 
                        that fails to comply with the requirement to 
                        provide full matching funds for a fiscal year 
                        under clause (i) shall return to the Secretary 
                        an amount equal to the difference between--
                                    ``(I) the amount provided to the 
                                recipient under this subsection; and
                                    ``(II) the amount of matching funds 
                                actually provided by the recipient.
                    ``(E) Use of funds.--
                            ``(i) In general.--A grant received under 
                        this subsection may be used to pay the Federal 
                        share of carrying out the programs that support 
                        and develop the next generation of farmers, 
                        ranchers, and other rural professionals, 
                        including--
                                    ``(I) extension;
                                    ``(II) education, including 
                                targeted scholarships and loan 
                                forgiveness, for traditional degree and 
                                certificate courses and continuing 
                                education and short courses;
                                    ``(III) technical assistance, 
                                including support for development of 
                                cooperatives;
                                    ``(IV) grants to support 
                                transitional ownership, mentorships, 
                                apprenticeships, and peer-support 
                                networks;
                                    ``(V) support of matched-savings 
                                programs through individual development 
                                accounts that can be used for capitol 
                                expenses, land acquisition, or training 
                                for beginning farmers, ranchers, and 
                                other rural professionals;
                                    ``(VI) support of farmer land 
                                contract programs to provide payment 
                                guarantees to encourage retiring 
                                landowners to sell to beginning 
                                farmers, ranchers, and rural 
                                professionals; and
                                    ``(VII) any other activity 
                                identified or approved by the Secretary 
                                as meeting those goals;
                            ``(ii) Preference.--In allocating grants 
                        and other direct assistance under this 
                        subsection, a lead agency shall give priority 
                        to limited resource and socially-disadvantaged 
                        individuals.
                    ``(F) Annual report.--
                            ``(i) In general.--Not later than February 
                        1 of each year, each State receiving a grant 
                        under this subsection shall submit to the 
                        Secretary a report that describes and evaluates 
                        the use of grant funds during the preceding 
                        fiscal year.
                            ``(ii) Publication.--The Secretary shall 
                        make available to the public all reports 
                        received under clause (i).
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $30,000,000 for 
        each of fiscal years 2008 through 2013, to remain available 
        until expended.
    ``(b) Advisory Committee on Beginning Farmers and Ranchers.--To the 
maximum extent practicable, the Secretary shall use funds otherwise 
available to the Secretary--
            ``(1) to support the work of the Advisory Committee on 
        Beginning Farmers and Ranchers established under section 5(b) 
        of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 
        1929 note; Public Law 102-554) (referred to in this subsection 
        as the `Committee')--
            ``(2) to fund more frequent meetings of the Committee 
        (including meetings at least twice per year); and
            ``(3) to increase the outreach activities of the Committee, 
        including increased public field hearings, if determined to be 
        necessary by the Committee.
    ``(c) Study and Pilot Program.--
            ``(1) Beginning farmer and rancher loan program.--
                    ``(A) In general.--For each of fiscal years 2008 
                through 2013, the Secretary shall use funds made 
                available under subparagraph (D)--
                            ``(i) to study the provision under this Act 
                        of direct farm ownership and guaranteed loans 
                        to beginning farmers and ranchers;
                            ``(ii) to carry out a pilot program to use 
                        additional resources to reduce the backlog of 
                        loan applications from beginning farmers and 
                        ranchers;
                            ``(iii) to carry out a pilot program under 
                        which grants, rather than loans, are provided 
                        to support capitol investments or farm 
                        purchases at the same amount as the subsidy 
                        would be over the term of a comparable loan; 
                        and
                            ``(iv) to carry out a pilot program under 
                        which direct and guaranteed loans are provided 
                        under this Act to beginning farmers and 
                        ranchers with no interest or payments due, and 
                        no accrual of interest, during a period of up 
                        to the first 36 months of the loans.
                    ``(B) Reports.--
                            ``(i) Initial report.--Not later than 1 
                        year after the date of enactment of this Act, 
                        the Secretary shall submit to Congress a report 
                        that--
                                    ``(I) describes the results of the 
                                study under subparagraph (A)(i); and
                                    ``(II) recommends changes to 
                                improve the efficiency of the provision 
                                under this Act of direct and guaranteed 
                                loans to beginning farmers and 
                                ranchers.
                            ``(ii) Additional reports.--Not later than 
                        4 years after the date of enactment of this 
                        Act, and thereafter as appropriate, the 
                        Secretary shall submit to Congress a report 
                        that describes the effectiveness of the pilot 
                        programs described in subparagraph (A)(ii).
                    ``(C) Additional pilot programs.--After submission 
                of the study under subparagraph (B)(i), the Secretary 
                may use funds made available to carry out this 
                subsection--
                            ``(i) to continue the pilot programs 
                        described in subparagraph (A)(ii); or
                            ``(ii) to carry out other pilot programs 
                        based on the conclusions and recommendations of 
                        the study.
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection $10,000,000 for each of fiscal years 2008 
                through 2013.
    ``(d) GAO Study and Report.--
            ``(1) Study.--The Comptroller General of the United States 
        shall carry out a study of possible tax incentives, contract 
        guarantees, and other measures to support the transfer of land 
        from retiring farmers and ranchers to beginning farmers and 
        ranchers.
            ``(2) Report.--Not later than 2 years after the date of 
        enactment of this section, the Comptroller General of the 
        United States shall submit to Congress a report that evaluates, 
        and makes recommendations concerning, the effectiveness of 
        measures studied under paragraph (1).''.
    (b) Beginning Farmer and Rancher Development Program.--Section 7405 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f) 
is amended--
            (1) in subsection (c)(5)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) refugee or immigrant farmers or ranchers''; 
                and
            (2) by striking subsection (h) and inserting the following:
    ``(h) Funding.--
            ``(1) Fees and contributions.--
                    ``(A) In general.--The Secretary may--
                            ``(i) charge a fee to cover all or part of 
                        the costs of curriculum development and the 
                        delivery of programs or workshops provided by--
                                    ``(I) a beginning farmer and 
                                rancher education team established 
                                under subsection (d); or
                                    ``(II) the online clearinghouse 
                                established under subsection (e); and
                            ``(ii) accept contributions from 
                        cooperating entities under a cooperative 
                        agreement entered into under subsection 
                        (d)(4)(B) to cover all or part of the costs for 
                        the delivery of programs or workshops by the 
                        beginning farmer and rancher education teams.
                    ``(B) Availability.--Fees and contributions 
                received by the Secretary under subparagraph (A) 
                shall--
                            ``(i) be deposited in the account that 
                        incurred the costs to carry out this section;
                            ``(ii) be available to the Secretary to 
                        carry out the purposes of the account, without 
                        further appropriation;
                            ``(iii) remain available until expended; 
                        and
                            ``(iv) be in addition to any funds made 
                        available under paragraph (2).
            ``(2) Funding.--For each of fiscal years 2008 through 2013, 
        the Secretary shall use $20,000,000 of funds of the Commodity 
        Credit Corporation to carry out this section, to remain 
        available for 2 fiscal years after the date on which the funds 
        are first made available.''.
    (c) Improving and Targeting Farm Support and Conservation Programs 
for Beginning Farmers, Ranchers, and Rural Professionals.--
            (1) In general.--The Secretary of Agriculture (referred to 
        in this section as the ``Secretary'') shall carry out a study 
        to identify and propose remedies to barriers to small, 
        beginning, socially disadvantaged, and limited resource 
        producers in conservation and farm support programs, 
        including--
                    (A) the environmental quality incentives program 
                established under chapter 4 of subtitle D of title XII 
                of the Food Security Act of 1985 (16 U.S.C. 3839aa et 
                seq.);
                    (B) the conservation security program established 
                under subchapter A of chapter 2 of subtitle D of title 
                XII of the Food Security Act of 1985 (16 U.S.C. 3838 et 
                seq.);
                    (C) the farmland protection program established 
                under subchapter B of chapter 2 of subtitle D of title 
                XII of the Food Security Act of 1985 (16 U.S.C. 3838h 
                et seq.) (commonly known as the ``Farm and Ranch Lands 
                Protection Program'');
                    (D) the wetlands reserve program established under 
                subchapter C of chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3837 et seq.);
                    (E) risk management tools, such as insurance;
                    (F) commodity support programs;
                    (G) food purchases by the Agricultural Marketing 
                Service;
                    (H) the provision of value-added agricultural 
                product market development grants to producers under 
                section 231(b) of the Agricultural Risk Protection Act 
                of 2000 (7 U.S.C. 1621 note; Public Law 106-224); and
                    (I) other programs identified by the Advisory 
                Committee on Beginning Farmers and Ranchers established 
                under section 5(b) of the Agricultural Credit 
                Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 
                102-554).
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, and every 2 years thereafter, or 
        otherwise on the recommendation of the Advisory Committee on 
        Beginning Farmers and Ranchers established under section 5(b) 
        of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 
        1929 note; Public Law 102-554), the Secretary shall submit to 
        Congress a report that--
                    (A) describes the results of the study under 
                paragraph (1);
                    (B) summarizes the participation rates for small, 
                beginning, socially disadvantaged, and limited resource 
                producers in the programs studied;
                    (C) recommends changes to make the programs studied 
                more accessible and effective for limited resource and 
                beginning farmers and ranchers; and
                    (D) for each report after the initial report, 
                describes the status of changes recommended by previous 
                reports.
            (3) Sense of the senate regarding conservation security 
        program.--It is the sense of the Senate that--
                    (A) the conservation security program established 
                under subchapter A of chapter 2 of subtitle D of title 
                XII of the Food Security Act of 1985 (16 U.S.C. 3838 et 
                seq.) was intended to be an entitlement available to 
                all agricultural producers, rather than available on a 
                piecemeal basis;
                    (B) sufficient mandatory funds should be provided 
                to the conservation security program to fulfill the 
                promise of supporting conservation on working land; and
                    (C) the next reauthorization of the Farm Bill 
                should--
                            (i) contain sufficient mandatory funding 
                        for the conservation security program; and
                            (ii) continue the 15 percent cost-share 
                        bonus for beginning farmers and ranchers for 
                        the conservation security program and the 
                        environmental quality incentives program 
                        established under chapter 4 of subtitle D of 
                        title XII of the Food Security Act of 1985 (16 
                        U.S.C. 3839aa et seq.).
    (d) Sustainable Agriculture Initiatives.--
            (1) Appropriate technology transfer for rural areas.--There 
        is authorized to be appropriated to the Secretary of 
        Agriculture to carry out appropriate technology transfer for 
        rural areas program under the same terms and conditions as 
        funds provided under the heading ``rural cooperative 
        development grants'' under the heading ``Rural Business-
        Cooperative Service'' in title III of the Agriculture, Rural 
        Development, Food and Drug Administration, and Related Agencies 
        Appropriations Act, 2006 (Public Law 109-97; 119 Stat. 2141) 
        $5,000,000 for each of fiscal years 2008 through 2013, to 
        remain available until expended.
            (2) Sustainable agriculture research and education 
        program.--
                    (A) Best utilization of biological applications.--
                            (i) In general.--Section 1624 of the Food, 
                        Agriculture, Conservation, and Trade Act of 
                        1990 (7 U.S.C. 5814) is amended to read as 
                        follows:

``SEC. 1624. FUNDING.

    ``(a) In General.--There is authorized to be appropriated to carry 
out sections 1621 and 1622 $75,000,000 for each of fiscal years 2008 
through 2013, to remain available until expended.
    ``(b) Federal-State Matching Grant Program.--For each of fiscal 
years 2008 through 2013, the Secretary shall use $20,000,000 of funds 
of the Commodity Credit Corporation to carry out section 1623, to 
remain available until expended.''.
                            (ii) Multi-state regions.--Section 1623 of 
                        the Food, Agriculture, Conservation, and Trade 
                        Act of 1990 (7 U.S.C. 5813) is amended--
                                    (I) in subsections (a), (b), 
                                (c)(1), and (d)(1), by inserting ``or 
                                multi-State regions'' after ``States'' 
                                each place it appears;
                                    (II) in subsection (a), by 
                                inserting ``or multi-State'' after 
                                ``enhancement of State'';
                                    (III) in subsection (b)(8), by 
                                inserting ``or multi-State region'' 
                                after ``State'';
                                    (IV) in paragraphs (1), (2), and 
                                (3) of subsection (c) and subsection 
                                (d)(1), by inserting ``or multi-State'' 
                                after ``State'' each place it appears; 
                                and
                                    (V) in subsection (d)(2)--
                                            (aa) in the paragraph 
                                        heading by inserting ``or 
                                        multi-state'' after ``State'';
                                            (bb) by inserting ``or 
                                        multi-State region'' after ``a 
                                        State'';
                                            (cc) by inserting ``or 
                                        multi-State'' after ``from 
                                        State'';
                                            (dd) by inserting ``or 
                                        multi-State'' after ``other 
                                        State''; and
                                            (ee) by inserting ``or 
                                        multi-State region'' after 
                                        ``the State''.
                    (B) National training program.--Section 1629 of the 
                Food, Agriculture, Conservation, and Trade Act of 1990 
                (7 U.S.C. 5832) is amended by striking subsection (i) 
                and inserting the following:
    ``(i) Funding.--There is authorized to be appropriated to carry out 
this section $25,000,000 for each of fiscal years 2008 through 2013, to 
remain available until expended.''.
    (e) Organic Programs.--
            (1) Organic agriculture research and extension 
        initiative.--Section 1672B of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) is amended 
        by striking subsection (e) and inserting the following:
    ``(e) Funding.--For each of fiscal years 2008 through 2013, the 
Secretary shall use $15,000,000 of funds of the Commodity Credit 
Corporation to carry out this section, to remain available until 
expended.''.
            (2) National organic certification cost-share program.--
        Section 10606 of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 6523) is amended--
                    (A) in subsection (a), by striking ``$5,000,000 for 
                fiscal year 2002'' and inserting ``$25,000,000 for 
                fiscal year 2008'';
                    (B) in subsection (b)(2), by striking ``$500'' and 
                inserting ``$750''; and
                    (C) by adding at the end the following:
    ``(c) Recordkeeping Requirements.--
            ``(1) In general.--The Secretary, acting through the 
        Agricultural Marketing Service, shall--
                    ``(A) keep accurate, up-to-date records of requests 
                and disbursements from the program under this section; 
                and
                    ``(B) require accurate and consistent recordkeeping 
                from each State or other entity receiving program 
                payments.
            ``(2) Federal requirements.--Not later than 30 days after 
        the closing date for States to request funding under the 
        program, the Secretary shall--
                    ``(A) finalize records that describe--
                            ``(i) each State that has requested 
                        funding; and
                            ``(ii) the amount of each funding request; 
                        and
                    ``(B) distribute the funding to the States.
            ``(3) State requirements.--Annual funding requests from 
        each State shall include data from the program during the 
        previous year, including--
                    ``(A)(i) a description of which entities requested 
                reimbursement;
                    ``(ii) the amount of each reimbursement; and
                    ``(iii) any discrepancies between requests and the 
                fulfillment of the requests;
                    ``(B) data to support increases in requests 
                expected in the coming year, including information from 
                certifiers or other data showing growth projections; 
                and
                    ``(C) an explanation if an annual request is made 
                for an amount less than the amount requested the 
                previous year.
    ``(d) Reporting.--Not later than March of each year, the Secretary 
shall provide an annual report to Congress that describes, for each 
State, the expenditures under the program under this section, including 
the number of producers and handlers served by the program in the 
previous fiscal year.''.
            (3) National organic conversion and stewardship incentive 
        program.--The Organic Foods Production Act of 1990 (7 U.S.C. 
        6501 et seq.) is amended--
                    (A) by redesignating sections 2122 and 2123 (7 
                U.S.C. 6521, 6522) as sections 2124 and 2125, 
                respectively; and
                    (B) by inserting after section 2121 (7 U.S.C. 6520) 
                the following:

``SEC. 2122. NATIONAL ORGANIC CONVERSION AND STEWARDSHIP INCENTIVE 
              PROGRAM.

    ``(a) Definition of Secretary.--In this section, the term 
`Secretary' means the Secretary (acting through the Natural Resources 
Conservation Service), in consultation with the National Organic 
Technical Committee established under subsection (h).
    ``(b) Program.--Not later than 180 days after the date of the 
enactment of the Rural Opportunities Act of 2007, the Secretary shall 
establish a national organic agriculture conversion and stewardship 
incentives program under which the Secretary shall provide cost-share 
and incentive payments and technical assistance to eligible producers 
who enter into contracts with the Secretary to assist the producers 
in--
            ``(1) developing and implementing practices to convert all 
        or part of nonorganic farms to certified organic farms; and
            ``(2) adopting advanced organic farming conservation 
        systems.
    ``(c) Eligible Producers.--
            ``(1) In general.--To be eligible for a payment or 
        technical assistance under this section, a producer shall enter 
        into a contract with the Secretary under which the producer 
        shall agree to develop and implement an organic system plan 
        that--
                    ``(A) describes the conservation and environmental 
                purposes to be achieved through conservation practices 
                and activities under the contract;
                    ``(B) demonstrates an existing market or reasonable 
                expectation of a future market for an agricultural 
                product that is organically produced; and
                    ``(C) meets the requirements of this title.
            ``(2) Compliance.--To be eligible for a payment or 
        technical assistance under this section, a producer shall 
        comply with organic certification requirements as verified by a 
        certifying agent (as defined in section 2103 of the Organic 
        Foods Production Act of 1990 (7 U.S.C. 6502).
            ``(3) Conversion payments for certified organic 
        producers.--A producer who owns or operates a farm that is 
        partially a certified organic farm and who otherwise meets the 
        requirements of this section shall be eligible for payments 
        under this section to convert other parts of the farm to a 
        certified organic farm.
            ``(4) Appeals.--An applicant that seeks assistance under 
        this section shall have the right to appeal an adverse decision 
        of the Secretary with respect to an application for the 
        assistance, in accordance with subtitle H of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et seq.).
    ``(d) Eligible Practices and Activities.--The Secretary shall 
provide payments and technical assistance to eligible producers under 
this section for--
            ``(1) carrying out--
                    ``(A) organic practices and activities to convert 
                all or part of a nonorganic farm to a certified organic 
                farm, in accordance with an organic system plan that 
                meets the requirements of this title;
                    ``(B) advanced organic practices that are 
                consistent with the organic system plan;
                    ``(C) organic animal welfare measures, so long as 
                the measures are--
                            ``(i) necessary to implement an organic 
                        practice standard; and
                            ``(ii) consistent with an approved plan to 
                        transition to certified organic production; and
                    ``(D) other measures, as determined by the 
                Secretary; and
            ``(2) developing an organic system plan that meets the 
        requirements of this title.
    ``(e) Payment Limitations.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), an individual or entity may not receive, directly or 
        indirectly, cost-share or incentive payments under this 
        section--
                    ``(A) that, in the aggregate, exceed $10,000 per 
                year; or
                    ``(B) for a period of more than 4 years.
            ``(2) Specialty crops.--In the case of an individual or 
        entity who annually produces 3 or more types of specialty crops 
        (as defined in section 3 of the Specialty Crops Competitiveness 
        Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465)), the 
        individual or entity may not receive, directly or indirectly, 
        cost-share or incentive payments under this section--
                    ``(A) that, in the aggregate, exceed $20,000 per 
                year; or
                    ``(B) for a period of more than 4 years.
            ``(3) Dairy.--In the case of an individual or entity whose 
        principal farming enterprise is a dairy operation, the 
        individual or entity may not receive, directly or indirectly, 
        cost-share or incentive payments under this section--
                    ``(A) that, in the aggregate, exceed $20,000 per 
                year; or
                    ``(B) for a period of more than 4 years.
    ``(f) Technical and Educational Assistance.--
            ``(1) In general.--The Secretary shall use not less than 50 
        percent of the funds that are made available under subsection 
        (k) for each fiscal year to--
                    ``(A) provide technical assistance to eligible 
                producers to carry out eligible practices and 
                activities described in subsection (d); and
                    ``(B) enter into cooperative agreements with 
                qualified nonprofit and nongovernmental organizations 
                and consultants to carry out educational programs that 
                promote the purposes of this section, as determined by 
                the Secretary.
            ``(2) Cooperative agreements.--Of the amount of funds for a 
        fiscal year described in paragraph (1), the Secretary shall use 
        not less than 50 percent of the funds to carry out paragraph 
        (1)(B).
    ``(g) Suspension Authority.--
            ``(1) Assessments.--Not later than October 1 of each fiscal 
        year, the Secretary shall publish in the Federal Register and 
        otherwise make available an assessment for each organic product 
        that analyzes--
                    ``(A) the domestic production and consumption of 
                the organic product;
                    ``(B) the import and export organic market demand 
                and growth potential for the organic product; and
                    ``(C) the estimated number and total amount of new 
                payments under this section for the fiscal year to be 
                made to producers of the organic product.
            ``(2) Suspension of new contracts.--The Secretary shall not 
        enter into contracts with new producers of an organic product 
        under this section if the Secretary determines that entering 
        into the contracts would--
                    ``(A) produce an increased quantity of the organic 
                product that the Secretary finds is reasonably 
                anticipated to adversely affect the economic viability 
                of producers who own or operate certified organic farms 
                under this title; or
                    ``(B) create an unreasonable geographic disparity 
                in the distribution of payments under this section.
    ``(h) National Organic Technical Committee.--
            ``(1) Establishment.--The Secretary shall establish a 
        National Organic Technical Committee to--
                    ``(A) advise and assist the Secretary in carrying 
                out the program established under this section; and
                    ``(B) improve the interface between owners and 
                operators of certified organic farms and other 
                conservation programs and activities administered by 
                the Natural Resources Conservation Service, including 
                development of criteria for the approval of qualified 
                organic technical advisors under this title.
            ``(2) Membership.--The National Organic Technical Committee 
        shall consist of 9 members appointed by the Secretary, 
        including--
                    ``(A) 3 owners or operators of certified organic 
                farms;
                    ``(B) 2 certifying agents;
                    ``(C) 2 inspectors of organic products;
                    ``(D) 1 representative of an environmental 
                organization that is knowledgeable concerning organic 
                agriculture; and
                    ``(E) 1 scientist with expertise in conservation 
                planning.
    ``(i) Annual Reports.--Not later than March 1 of each year, the 
Secretary shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report that describes the operation of the 
program established under this section, including--
            ``(1) a State-by-State analysis of expenditures on 
        assistance under this section, including the number of 
        producers served by the program and the practices and 
        activities implemented;
            ``(2) an assessment of the impact of the program on organic 
        food production; and
            ``(3) any recommended modifications to the program.
    ``(j) National Program Review.--
            ``(1) In general.--Not later than 4 years after the 
        commencement of the program established under this section, the 
        Secretary shall--
                    ``(A) conduct a national program review (including 
                public hearings) of the program established under this 
                section; and
                    ``(B) submit to the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate a 
                report that describes the results of the review 
                (including any appropriate recommendations).
            ``(2) Content.--In conducting the review, the Secretary 
        shall evaluate and make recommendations to--
                    ``(A) resolve any program deficiencies;
                    ``(B) redress any underserved States, agricultural 
                products, and regions; and
                    ``(C) ensure that the program is contributing 
                positively to the profitability of small- and 
                intermediate-size producers and existing owners and 
                operators of certified organic farms.
    ``(k) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $50,000,000 for each 
of the fiscal years 2008 through 2013, to remain available until 
expended.''.
            (4) Annual report.--The Organic Foods Production Act of 
        1990 (7 U.S.C. 6501 et seq.) is amended by inserting after 
        section 2122 (as added by paragraph (3)) the following:

``SEC. 2123. ANNUAL REPORT.

    ``Each year, the Secretary shall submit to Congress, and make 
available to the public, a report that--
            ``(1) describes the enforcement activities carried out by 
        the Secretary under this Act to ensure the integrity of organic 
        labels; and
            ``(2) includes specific details on the number and 
        investigative results of retail surveillance and oversight by 
        certifying agents under this Act.''.
            (5) Report.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report describing the progress in carrying out the national 
        organic program established under the Organic Foods Production 
        Act of 1990 (7 U.S.C. 6501 et seq.) in implementing the 
        recommendations contained in--
                    (A) the audit conducted in 2004 by the American 
                National Standards Institute; and
                    (B) the audit conducted in 2005 by the Office of 
                the Inspector General of the Department of Agriculture.
    (f) Socially Disadvantaged Farmers and Ranchers Outreach and 
Technical Assistance Program.--Section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended--
            (1) in subsection (a)(4), by adding at the end the 
        following:
                    ``(C) Funding.--For each of fiscal years 2008 
                through 2013, the Secretary shall use $25,000,000 of 
                funds of the Commodity Credit Corporation to carry out 
                this subsection, to remain available until expended.''; 
                and
            (2) in subsection (c)(1)(A), by inserting ``, including 
        beginning farmers and ranchers in those groups,'' after 
        ``groups''.

SEC. 5. ENCOURAGING LOCAL MARKETS FOR FOOD, BIOENERGY, AND BIOPRODUCTS.

    (a) Geographic Procurement Preference for Department of Defense and 
Department of Agriculture.--
            (1) Findings.--Congress finds that--
                    (A) local produce, as compared to transported 
                produce--
                            (i) is often harvested closer to full 
                        ripeness and can have higher nutritional 
                        quality;
                            (ii) can have improved ripeness, taste, or 
                        selection, which can increase rates of 
                        consumption of fruits and vegetables; and
                            (iii) is more efficient to store, 
                        distribute, and package;
                    (B) use of local produce--
                            (i) reduces dependence upon foreign oil by 
                        reducing fuel consumption rates associated with 
                        the production or transportation of fruits and 
                        vegetables;
                            (ii) can help to improve the ability of 
                        those using the procurement system to provide 
                        education on nutrition, farming, 
                        sustainability, energy efficiency, and the 
                        importance of local purchases to the local 
                        economy;
                            (iii) helps to maintain a robust logistics 
                        network for agricultural product procurement; 
                        and
                            (iv) promotes farm, business, and economic 
                        development by accessing local markets; and
                    (C) section 9(j) of the Richard B. Russell National 
                School Lunch Act (42 U.S.C. 1758(j)) directs the 
                Secretary of Agriculture to encourage institutions 
                participating in the school lunch program established 
                under that Act and the school breakfast program 
                established by section 4 of the Child Nutrition Act of 
                1966 (42 U.S.C. 1773) to purchase, in addition to other 
                food purchases, locally produced foods, to the maximum 
                extent practicable and appropriate.
            (2) Geographic procurement preference.--
                    (A) In general.--Notwithstanding any other 
                provision of law, the Department of Defense, the 
                Department of Agriculture, schools, local educational 
                agencies, and other entities may use a geographic 
                preference to purchase locally produced fruits and 
                vegetables for--
                            (i) in the case of programs carried out by 
                        the Department of Defense--
                                    (I) the Defense Supply Center 
                                Philadelphia;
                                    (II) the Department of Defense Farm 
                                to School Program;
                                    (III) the Department of Defense 
                                Fresh Fruit and Vegetable Program;
                                    (IV) the service academies;
                                    (V) Department of Defense domestic 
                                dependant schools;
                                    (VI) other Department of Defense 
                                schools under chapter 108 of title 10, 
                                United States Code;
                                    (VII) commissary and exchange 
                                stores; and
                                    (VIII) morale, welfare, and 
                                recreation (MWR) facilities operated by 
                                the Department of Defense; and
                            (ii) in the case of programs carried out by 
                        the Department of Agriculture, schools, local 
                        educational agencies, and other entities--
                                    (I) the school breakfast program 
                                established by section 4 of the Child 
                                Nutrition Act of 1966 (42 U.S.C. 1773);
                                    (II) the school lunch program 
                                established under the Richard B. 
                                Russell National School Lunch Act (42 
                                U.S.C. 1751 et seq.);
                                    (III) the summer food service 
                                program for children established under 
                                section 13 of the Richard B. Russell 
                                National School Lunch Act (42 U.S.C. 
                                1761); and
                                    (IV) the child and adult care food 
                                program established under section 17 of 
                                the Richard B. Russell National School 
                                Lunch Act (42 U.S.C. 1766).
                    (B) Additional authorizations.--A local food 
                service director or other entity may include a 
                geographic preference described in subparagraph (A) in 
                bid specifications and may select a bid involving 
                locally produced fruits and vegetables, even if that 
                bid is not the lowest bid.
            (3) Scope of authority.--The authority provided in 
        paragraph (2) applies to the purchase of fruits and vegetables 
        for both Department of Defense and non-Department of Defense 
        uses.
            (4) Reporting.--A school, local educational agency, or 
        other entity participating in 1 or more of the programs 
        described in paragraph (2)(B) shall report to the Secretary of 
        Agriculture if the school, local educational agency, or other 
        entity pays more than 10 percent more than the lowest bid to 
        purchase locally produced fruits and vegetables in accordance 
        with this subsection.
            (5) Review.--The Secretary of Defense and the Secretary of 
        Agriculture shall periodically review the program under this 
        subsection to prevent fraud or abuse.
    (b) Access to Local Foods and School Gardens.--Section 18(i) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1769(i)) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Funding.--For each of fiscal years 2008 through 2013, 
        the Secretary shall use $10,000,000 of funds of the Commodity 
        Credit Corporation to carry out this subsection, to remain 
        available until expended.''.
    (c) Senior Farmers' Market Nutrition Program.--Section 4402(a) of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007(a)) 
is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary;''; and
            (2) by adding at the end the following:
            ``(2) Subsequent funding.--Of funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $25,000,000 for fiscal year 2008, to remain available until 
        expended.''.
    (d) WIC Farmers' Market Nutrition Program.--Section 17(m)(9)(A) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by 
striking clause (ii) and inserting the following:
                            ``(i) Mandatory funding.--Of funds of the 
                        Commodity Credit Corporation, the Secretary 
                        shall use to carry out this subsection 
                        $30,000,000 for fiscal year 2008, to remain 
                        available until expended.''.
    (e) Farmers Market Promotion Program.--Section 6 of the Farmer-to-
Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended by 
adding at the end the following:
    ``(f) Mandatory Funding.--For each of fiscal years 2008 through 
2013, the Secretary shall use $20,000,000 of funds of the Commodity 
Credit Corporation to carry out this section, to remain available until 
expended.''.
    (f) Grants for Development of Local Food, Bioenergy, and 
Bioproducts Systems.--Section 231(b)(4)(B) of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) (as 
added by section 3(b)(2)) is amended by adding at the end the 
following:
                            ``(iii) Development of local food, 
                        bioenergy, and bioproducts systems.--
                                    ``(I) In general.--The Secretary 
                                shall ensure that not less than 30 
                                percent of the competitive grants 
                                awarded during each of fiscal years 
                                2008 through 2013 are awarded to 
                                producers of value-added agricultural 
                                products relating to developing local 
                                food, bioenergy, and bioproducts 
                                systems (such as supporting local 
                                markets, labeling of production 
                                location, local infrastructure, or 
                                local distribution).
                                    ``(II) Specific projects.--Not less 
                                than 50 percent of the grants specified 
                                in subclause (I) shall be used to fund 
                                projects that support the establishment 
                                of mid-tier food value-added chains 
                                intended to help mid-sized farms, 
                                through the marketing of differentiated 
                                products that adhere to sound social 
                                and environmental principles and 
                                equitable business practices at 
                                regional scales.
                                    ``(III) Project details.--Projects 
                                described in subclause (II) should--
                                            ``(aa) facilitate 
                                        partnerships between 
                                        businesses, cooperatives, non-
                                        profits, agencies, and 
                                        educational institutions;
                                            ``(bb) have mid-sized 
                                        farmer or rancher 
                                        participation;
                                            ``(cc) include an agreement 
                                        from the eligible agricultural 
                                        producer group, farmer or 
                                        rancher cooperative, or 
                                        majority-controlled producer-
                                        based business venture engaged 
                                        in the food value-added chain 
                                        relating to the method for 
                                        price determination; and
                                            ``(dd) articulate clear and 
                                        transparent social, 
                                        environmental, fair labor, and 
                                        fair trade standards.''.
    (g) Assistance for Community Food Projects.--Section 25 of the Food 
Stamp Act of 1977 (7 U.S.C. 2034) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking ``or'' at the 
                end and inserting ``and''; and
                    (C) by adding at the end the following:
                    ``(D) supply healthy local foods to underserved 
                markets, including--
                            ``(i) purchase of local foods by government 
                        and nonprofit institutions;
                            ``(ii) provision of technical assistance 
                        for retail development in underserved areas;
                            ``(iii) support of metropolitan production 
                        linked to community-based food services and 
                        markets (such as urban, community, school, and 
                        market gardens);
                            ``(iv) provision of technical assistance 
                        for limited-resource and socially-disadvantaged 
                        applicants;
                            ``(v) support of local purchase of foods by 
                        food banks and other emergency providers; and
                            ``(vi) support of an information 
                        clearinghouse on innovative solutions to common 
                        community food security challenges; or'';
            (2) in subsection (b), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--For each of fiscal years 2008 through 
        2013, the Secretary shall use, of funds of the Commodity Credit 
        Corporation--
                    ``(A) $15,000,000 to make grants to assist eligible 
                private nonprofit entities to establish and carry out 
                community food projects;
                    ``(B) $10,000,000 to encourage eligible private 
                nonprofit entities to purchase of local foods for 
                community food projects;
                    ``(C) $10,000,000 to provide technical assistance 
                under this section for retail development in 
                underserved areas;
                    ``(D) $10,000,000 for the community food project 
                competitive grant program to support metropolitan 
                production linked to community-based food services and 
                markets (urban, community, school and market gardens);
                    ``(E) $7,000,000 to provide technical assistance 
                under this section for limited resource and socially 
                disadvantaged applicants for community food project 
                funds;
                    ``(F) $5,000,000 for the community food project 
                competitive grant program to support food policy 
                councils and food system networks to develop 
                demonstration regional food authorities;
                    ``(G) $3,000,000 to support local purchase of foods 
                by food banks and other emergency food providers under 
                this section; and
                    ``(H) $500,000 to support an information 
                clearinghouse on innovative solutions to common 
                community food security challenges.''; and
            (3) in subsection (h)(4), by striking ``2007'' and 
        inserting ``2013''.

SEC. 6. BROADBAND REQUIREMENTS.

    (a) Findings.--Congress finds the following:
            (1) While data collection on broadband access and 
        affordability could be improved, several reports indicate that 
        both factors have led to a digital divide in the nation, with 
        rural areas lagging behind suburban and urban areas.
            (2) Even as early as 2000, a joint Department of Commerce 
        and Department of Agriculture report demonstrated that there 
        was a noticeable disparity in the availability of broadband 
        access between rural and urban areas, with less than 5 percent 
        of towns smaller than 10,000 people having broadband access, 
        while 56 percent of cities with populations of 100,000 and 65 
        percent of cities with populations of 250,000 have broadband 
        access.
            (3) A February 2002 report by the Department of Commerce 
        found that among Internet users, only 12.2 percent of such 
        users located in rural areas had high speed connections versus 
        21.2 percent of such users located in urban areas. Furthermore, 
        the report found higher income households were more likely to 
        have broadband access than lower income households.
            (4) A September 2004 report by the Department of Commerce 
        evidenced growth in broadband subscribers among all Internet 
        users, however, the broadband access gap between rural (24.7 
        percent) and urban areas (40.4 percent) remained.
            (5) A May 2006 report by the Government Accountability 
        Office found that 17 percent of rural households subscribe to 
        broadband service, while suburban households had a broadband 
        subscription rate 11 percent higher and urban households had a 
        broadband subscription rate 12 percent higher than that of 
        rural households.
            (6) A May 2006 report by the Government Accountability 
        Office found that data collected by the Federal Communications 
        Commission on broadband subscribers at a zip code level was of 
        limited usefulness for an accurate assessment of local 
        availability of broadband service, especially in rural areas. 
        Moreover such report found that this lack of reliable 
        information was a key obstacle in analyzing and targeting 
        Federal aid for increasing access to broadband service.
            (7) Even with this limited zip code level data, the most 
        recently released Federal Communications Commission data (for 
        December 31, 2005) disclosed that 11 percent fewer of the 
        lowest population density zip codes had at least 1 subscriber 
        relative to the highest population density zip codes.
            (8) A February 2006 report prepared for the Economic 
        Development Administration of the Department of Commerce found 
        that communities with early broadband availability experienced 
        more rapid growth in employment, number of businesses, and 
        number of information technology businesses.
            (9) The United States is losing ground relative to other 
        developed countries. According to the Organization for Economic 
        Cooperation and Development, the United States now ranks 12th 
        out of the 30 OECD countries in broadband access per 100 
        inhabitants. In 2001, the United States ranked 4th, behind only 
        Korea, Sweden, and Canada. A similar worldwide ranking by the 
        International Telecommunications Union put the United States 
        even further behind at 16th in broadband penetration.
    (b) Sense of the Senate.--It is the sense of the Senate that, given 
the growing number of opportunities provided by broadband access, the 
digital divide affecting rural households and other underserved groups 
be eliminated not later than 10 years after the date of enactment of 
this Act with the ultimate goal of providing nationwide universal 
access to affordable broadband.
    (c) Improving FCC Data Collection.--
            (1) Reporting requirements.--
                    (A) General requirements.--Not later than 180 days 
                after the date of enactment of this Act, the Federal 
                Communications Commission shall revise FCC Form 477 
                (relating to reporting requirements) to require each 
                broadband service provider to report the following 
                information:
                            (i) Identification of where such provider 
                        provides broadband service to customers, 
                        identified by zip code plus 4 digit location 
                        (in this section referred to as ``service 
                        area'').
                            (ii) Percentage of households and 
                        businesses in each service area that are 
                        offered broadband service by such provider, and 
                        the percentage of such households that 
                        subscribe to each service plan offered.
                            (iii) The average price per megabyte of 
                        download speed and upload speed in each service 
                        area.
                            (iv) Identification by service area of such 
                        provider's broadband service's--
                                    (I) actual average throughput; and
                                    (II) contention ratio of the number 
                                of users sharing the same line.
                    (B) Exception.--The Federal Communications 
                Commission shall exempt a broadband service provider 
                from the requirements in subparagraph (A) if the 
                Commission determines that compliance with such 
                reporting requirements by the provider is cost 
                prohibitive, as defined by the Commission.
                    (C) Report to joint board.--Not later than 1 year 
                after the date of enactment of this Act, the Federal 
                Communications Commission shall provide the Federal-
                State Joint Board established pursuant to section 410 
                of the Communications Act of 1934 with any and all data 
                and analysis collected from the initial set of 
                submitted revised Form 477s.
            (2) Demographic information for unserved areas.--The 
        Federal Communications Commission, using available Census 
        Bureau data, shall provide to Congress on an annual basis a 
        report containing the following information for each service 
        area that is not served by a broadband service provider:
                    (A) Population.
                    (B) Population density.
                    (C) Average per capita income.
    (d) Reviews and Reports.--
            (1) Data transfer rate.--Not later than 2 years after the 
        date of enactment of this Act, and every 2 years thereafter, 
        the Federal Communications Commission, in consultation with the 
        Secretary of Agriculture and any other Federal agency that 
        administers a broadband program, shall revise its definition of 
        broadband to--
                    (A) reflect a data rate--
                            (i) greater than the 200 kilobits per 
                        second standard established in the Commission's 
                        Section 706 Report (14 FCC Rec. 2406); and
                            (ii) consistent with data rates in the 
                        marketplace; and
                    (B) promote uniformity in the definition of 
                broadband service.
            (2) USDA report.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary of Agriculture shall 
        report on the adoption or planned adoption of the 
        recommendations contained in the September 2005 audit report by 
        the Inspector General of the United States Department of 
        Agriculture entitled ``Rural Utilities Service Broadband Grant 
        and Loan Programs''.
            (3) Universal service.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Federal-State Joint 
                Board in accordance with the authority granted to such 
                Board under section 254(c)(2) of the Communications Act 
                of 1934 (47 U.S.C. 254(c)(2)) shall recommend to the 
                Federal Communications Commission whether advanced 
                services such as broadband service should be included 
                in the definition of universal service.
                    (B) Definitions.--In this paragraph:
                            (i) Federal-state joint board.--The term 
                        ``Federal-State Joint Board'' means the joint 
                        board established pursuant to section 410 of 
                        the Communications Act of 1934 (47 U.S.C. 410).
                            (ii) Universal service.--The term 
                        ``universal service'' means services that are 
                        to be supported by Federal universal support 
                        mechanisms under section 254 of the 
                        Communications Act of 1934 (47 U.S.C. 254).

SEC. 7. OFFSETS.

    (a) Limitations on Marketing Loan Gains, Loan Deficiency Payments, 
and Commodity Certificate Transactions.--Section 1001 of the Food 
Security of 1985 (7 U.S.C. 1308) is amended--
            (1) in subsection (b), by striking ``$40,000'' each place 
        it appears and inserting ``$20,000'';
            (2) in subsection (c), by striking ``$65,000'' each place 
        it appears and inserting ``$32,500''; and
            (3) by striking subsection (d) and inserting the following:
    ``(d) Limitations on Marketing Loan Gains, Loan Deficiency 
Payments, and Commodity Certificate Transactions.--
            ``(1) Loan commodities.--The total amount of the following 
        gains and payments that a person may receive during any crop 
        year may not exceed $75,000:
                    ``(A)(i) Any gain realized by a producer from 
                repaying a marketing assistance loan for 1 or more loan 
                commodities under subtitle B of title I of the Farm 
                Security and Rural Investment Act of 2002 (7 U.S.C. 
                7931 et seq.) at a lower level than the original loan 
                rate established for the loan commodity under that 
                subtitle.
                    ``(ii) In the case of settlement of a marketing 
                assistance loan for 1 or more loan commodities under 
                that subtitle by forfeiture, the amount by which the 
                loan amount exceeds the repayment amount for the loan 
                if the loan had been settled by repayment instead of 
                forfeiture.
                    ``(B) Any loan deficiency payments received for 1 
                or more loan commodities under that subtitle.
                    ``(C) Any gain realized from the use of a commodity 
                certificate issued by the Commodity Credit Corporation 
                for 1 or more loan commodities, as determined by the 
                Secretary, including the use of a certificate for the 
                settlement of a marketing assistance loan made under 
                that subtitle, with the gain reported annually to the 
                Internal Revenue Service and to the taxpayer in the 
                same manner as gains under subparagraphs (A) and (B).
            ``(2) Other commodities.--The total amount of the following 
        gains and payments that a person may receive during any crop 
        year may not exceed $75,000:
                    ``(A)(i) Any gain realized by a producer from 
                repaying a marketing assistance loan for peanuts, wool, 
                mohair, or honey under subtitle B or C of title I of 
                the Farm Security and Rural Investment Act of 2002 at a 
                lower level than the original loan rate established for 
                the commodity under those subtitles.
                    ``(ii) In the case of settlement of a marketing 
                assistance loan for peanuts, wool, mohair, or honey 
                under those subtitles by forfeiture, the amount by 
                which the loan amount exceeds the repayment amount for 
                the loan if the loan had been settled by repayment 
                instead of forfeiture.
                    ``(B) Any loan deficiency payments received for 
                peanuts, wool, mohair, and honey under those subtitles.
                    ``(C) Any gain realized from the use of a commodity 
                certificate issued by the Commodity Credit Corporation 
                for peanuts, wool, mohair, or honey, as determined by 
                the Secretary, including the use of a certificate for 
                the settlement of a marketing assistance loan made 
                under those subtitles, with the gain reported annually 
                to the Internal Revenue Service and to the taxpayer in 
                the same manner as gains under subparagraphs (A) and 
                (B).''.
    (b) Rescissions.--
            (1) Section 32.--Of the unobligated balances under section 
        32 of the August of August 24, 1935 (7 U.S.C. 612c), 
        $37,601,000 is rescinded.
            (2) Cushion of credit payments program.--Of the funds 
        derived from interest on the cushion of credit payments, as 
        authorized by section 313 of the Rural Electrification Act of 
        1936 (7 U.S.C. 940c), $74,000,000 shall not be obligated and 
        $74,000,000 is rescinded.
    (c) Transfer of Funds.--For each of fiscal years 2008 through 2011, 
the Secretary of the Treasury shall transfer to the Commodity Credit 
Corporation from unobligated funds made available under section 32 of 
the August of August 24, 1935 (7 U.S.C. 612c), $125,500,000, to be used 
to carry out the amendments made by section 5.

SEC. 8. REGULATIONS.

    (a) In General.--The Secretary of Agriculture may promulgate such 
regulations as are necessary to implement this Act and the amendments 
made by this Act.
    (b) Procedure.--The promulgation of the regulations and 
administration of this Act and the amendments made by this Act shall be 
made without regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.
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