II

106TH CONGRESS

2D SESSION S. 2540

To amend the Food Security Act of 1985 to require the Secretary of Agriculture to establish a carbon sequestration program to permit owners

and operators of land to enroll the land in the program to increase

the sequestration of carbon, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 10, 2000

Mr. BROWNBACK (for himself, Mr. KERREY, and Mr. MURKOWSKI) introduced

the following bill; which was read twice and referred to the Committee

on Agriculture, Nutrition, and Forestry

A BILL

To amend the Food Security Act of 1985 to require the

Secretary of Agriculture to establish a carbon sequestration program to permit owners and operators of land

to enroll the land in the program to increase the sequestration of carbon, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Domestic Carbon Stor5 age Incentive Act of 2000’’.
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1 SEC. 2. ESTABLISHMENT.

2 Subtitle D of title XII of the Food Security Act of

3 1985 (16 U.S.C. 3830 et seq.) is amended by inserting

4 after chapter 1 the following:

5 ‘‘CHAPTER 2—CARBON SEQUESTRATION

6 PROGRAM

7 ‘‘SEC. 1238. CARBON SEQUESTRATION PROGRAM.

8 ‘‘(a) IN GENERAL.—Effective beginning with the

9 2001 calendar year, the Secretary, acting through the

10 Chief of the Natural Resources Conservation Service, shall

11 establish a carbon sequestration program to permit owners

12 and operators of land located in the United States to en13 roll the land in the program to increase the sequestration

14 of carbon.

15 ‘‘(b) ELIGIBLE LAND.—

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), the Secretary may include in the program

18 established under this chapter any land, as deter19 mined by the Secretary.

20 ‘‘(2) CONSERVATION RESERVE LAND.—The

21 Secretary shall not include in the program estab22 lished under this chapter any land enrolled in the

23 conservation reserve program established under sub24 chapter B of chapter 1.

25 ‘‘(c) MAXIMUM ENROLLMENT.—The Secretary may

26 maintain up to 5,000,000 acres of land in the United
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1 States in the carbon sequestration program at any 1 time

2 during a calendar year.

3 ‘‘(d) DURATION OF CONTRACT.—

4 ‘‘(1) IN GENERAL.—For the purpose of car5 rying out this chapter, the Secretary shall enter into

6 contracts of not less than 10 years.

7 ‘‘(2) CERTAIN LAND.—In the case of land de8 voted to hardwood trees, shelterbelts, windbreaks, or

9 wildlife corridors under a contract entered into

10 under this chapter, the owner or operator of the

11 land may, within the limitations prescribed under

12 this section, specify the duration of the contract.

13 ‘‘SEC. 1238A. CARBON SEQUESTRATION PRACTICES.

14 ‘‘(a) ADVISORY PANEL.—

15 ‘‘(1) ESTABLISHMENT.—The Secretary shall es16 tablish an advisory panel to assist the Secretary in

17 carrying out this chapter.

18 ‘‘(2) COMPOSITION.—The advisory panel shall

19 consist of—

20 ‘‘(A) the Chief of the Forest Service;

21 ‘‘(B) the Secretary of State;

22 ‘‘(C) the Secretary of Energy; and

23 ‘‘(D) representatives of nongovernmental

24 organizations who have an expertise and experi-
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1 ence in carbon sequestration practices, ap2 pointed by the Secretary.

3 ‘‘(b) CRITERIA FOR EVALUATING CARBON SEQUES4 TRATION PRACTICES.—

5 ‘‘(1) IN GENERAL.—The advisory panel shall

6 develop, and propose to the Secretary, criteria for

7 determining the acceptability of, and evaluating,

8 practices by owners and operators that will increase

9 the sequestration of carbon for the purposes of de10 termining the acceptability of contract offers made

11 by the owners and operators.

12 ‘‘(2) CONTENT.—The criteria shall address—

13 ‘‘(A) forest preservation and restoration

14 and afforestation;

15 ‘‘(B) biodiversity enhancement;

16 ‘‘(C) the use of acreage to produce high17 storage crops;

18 ‘‘(D) soil erosion management;

19 ‘‘(E) soil fertility restoration;

20 ‘‘(F) wetland restoration;

21 ‘‘(G) no-till farming practices;

22 ‘‘(H) conservation buffers;

23 ‘‘(I) improved cropping systems with win24 ter cover crops; and
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1 ‘‘(J) any other conservation practices that

2 the Secretary determines to be appropriate for

3 increasing carbon sequestration.

4 ‘‘(3) REGULATIONS.—The Secretary, acting

5 through the Chief of the Natural Resources Con6 servation Service and the Chief of the Forest Serv7 ice, by regulation, shall establish criteria described

8 in paragraphs (1) and (2).

9 ‘‘(c) ESTIMATES OF CARBON SEQUESTRATION

10 RATES.—

11 ‘‘(1) IN GENERAL.—The advisory panel shall

12 develop, and propose to the Secretary, estimates of

13 the rates of carbon sequestration for various plants,

14 agricultural commodities, and agricultural practices

15 for the purposes of determining the acceptability of

16 contract offers made by owners and operators.

17 ‘‘(2) BASIS.—In developing the estimates, the

18 advisory panel shall—

19 ‘‘(A) consult with representatives of the

20 Consortium for Agricultural Soils Mitigation of

21 Greenhouse Gases; and

22 ‘‘(B) use information reported to the Sec23 retary of Energy from projects carried out

24 under the voluntary reporting program of the

25 Energy Information Administration under sec-
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1 tion 1605 of the Energy Policy Act of 1992 (42

2 U.S.C. 13385).

3 ‘‘(d) ACCEPTABILITY OF CARBON SEQUESTRATION

4 PRACTICES.—

5 ‘‘(1) IN GENERAL.—As part of a contract offer

6 accepted under this chapter, the owner or operator

7 shall agree to carry out on land enrolled in the pro8 gram established under this chapter carbon seques9 tration practices proposed by the owner or operator

10 that (as determined by the Secretary)—

11 ‘‘(A) provide for additional sequestration

12 beyond that which would be provided in the ab13 sence of enrollment of the land in the program;

14 and

15 ‘‘(B) contribute to a positive reduction of

16 greenhouse gases in the atmosphere through se17 questration over at least a 10-year period.

18 ‘‘(2) MAXIMUM SEQUESTRATION BENEFITS.—In

19 determining the acceptability of contract offers, the

20 Secretary shall take into consideration the extent to

21 which enrollment of the land that is the subject of

22 the contract offer would provide the maximum se23 questration benefits under the criteria developed

24 under subsection (b).
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1 ‘‘(e) COMPLIANCE WITH CARBON SEQUESTRATION

2 CONTRACTS.—

3 ‘‘(1) IN GENERAL.—As part of a contract offer

4 accepted under this chapter, an owner or operator of

5 land shall permit the Secretary to verify that the

6 owner or operator is implementing practices that se7 quester carbon in accordance with the contract, in8 cluding an actual verification of the practices at

9 least once every 5 years and such random inspec10 tions as are necessary.

11 ‘‘(2) FRAUD OR FALSE STATEMENTS.—Section

12 1001 of title 18, United States Code, shall apply to

13 a statement, representation, writing, or document

14 provided by an owner or operator under this sub15 section.

16 ‘‘(3) CONFIDENTIALITY.—Information provided

17 by an owner or operator under this subsection shall

18 be considered to be confidential information for the

19 purposes of section 552(b)(4) of title 5, United

20 States Code.

21 ‘‘(f) REPORTING.—

22 ‘‘(1) ADVISORY PANEL.—The advisory panel es23 tablished under subsection (a) shall periodically re24 port to the Administrator of the Energy Information

25 Administration on—
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1 ‘‘(A) sequestration improvements made as

2 a result of this chapter; and

3 ‘‘(B) sequestration practices carried out

4 under this chapter.

5 ‘‘(2) SECRETARY.—The Secretary, in consulta6 tion with the Administrator of the Energy Informa7 tion Administration, shall—

8 ‘‘(A) develop forms to monitor sequestra9 tion improvements made as a result of the pro10 gram established this chapter and distribute the

11 forms to owners and operators of land enrolled

12 in the program; and

13 ‘‘(B) at least once every 5 years, report to

14 Congress and the public on the program,

15 including—

16 ‘‘(i) sequestration improvements made

17 as a result of the program;

18 ‘‘(ii) sequestration practices on land

19 enrolled in the program; and

20 ‘‘(iii) compliance with contracts en21 tered into under this chapter.

22 ‘‘(g) EDUCATIONAL OUTREACH.—In consultation

23 with the Consortium for Agricultural Soils Mitigation of

24 Greenhouse Gases, the Secretary, acting through the Ex25 tension Service, shall conduct an educational outreach pro-
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1 gram to collect and disseminate to owners and operators

2 of land research-based information on agricultural prac3 tices that will increase the sequestration of carbon, while

4 preserving the social and economic well-being of the own5 ers and operators.

6 ‘‘SEC. 1238B. DUTIES OF OWNERS AND OPERATORS.

7 ‘‘(a) IN GENERAL.—Under the terms of a contract

8 entered into under this chapter, during the term of the

9 contract, an owner or operator of a farm or ranch shall

10 agree—

11 ‘‘(1) to implement a plan approved by the Sec12 retary for carrying out on land subject to the con13 tract practices that will increase the sequestration of

14 carbon, substantially in accordance with a schedule,

15 covering a period of not less than 10 years, that is

16 outlined in the plan;

17 ‘‘(2) to place land subject to the contract in the

18 carbon sequestration program established under this

19 chapter;

20 ‘‘(3) in addition to the remedies provided under

21 section 1238F(d), on the violation of a term or con22 dition of the contract at any time at which the

23 owner or operator has control of the land—

24 ‘‘(A) to forfeit all rights to receive rental

25 payments and cost-sharing payments under the
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1 contract and to refund to the Secretary any

2 rental payments and cost-sharing payments re3 ceived by the owner or operator under the con4 tract, and interest on the payments as deter5 mined by the Secretary, if the Secretary deter6 mines that the violation is of such nature as

7 to warrant termination of the contract; or

8 ‘‘(B) to refund to the Secretary, or accept

9 adjustments to, the rental payments and cost10 sharing payments provided to the owner or op11 erator, as the Secretary considers appropriate,

12 if the Secretary determines that the violation

13 does not warrant termination of the contract;

14 ‘‘(4) on the transfer of the right and interest of

15 the owner or operator in land subject to the

16 contract—

17 ‘‘(A)(i) to forfeit all rights to rental pay18 ments and cost-sharing payments under the

19 contract; and

20 ‘‘(ii) to refund to the United States all

21 rental payments and cost-sharing payments re22 ceived by the owner or operator, or accept such

23 payment adjustments or make such refunds as

24 the Secretary considers appropriate and con-
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1 sistent with the objectives of this chapter; un2 less

3 ‘‘(B)(i) the transferee of the land agrees

4 with the Secretary to assume all obligations of

5 the contract;

6 ‘‘(ii) the land is purchased by or for the

7 United States Fish and Wildlife Service; or

8 ‘‘(iii) the transferee and the Secretary

9 agree to modifications to the contract that are

10 consistent with the objectives of the program,

11 as determined by the Secretary;

12 ‘‘(5) not to adopt any practice specified by the

13 Secretary in the contract as a practice that would

14 tend to defeat the purposes of this chapter; and

15 ‘‘(6) to comply with such additional provisions

16 as the Secretary determines are desirable and are in17 cluded in the contract to carry out this chapter or

18 to facilitate the practical administration of this

19 chapter.

20 ‘‘(b) PLAN.—The plan referred to in subsection

21 (a)(1)—

22 ‘‘(1) shall specify the carbon sequestration prac23 tices to be carried out by the owner or operator dur24 ing the term of the contract; and
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1 ‘‘(2) may provide for the permanent retirement

2 of any existing cropland base and allotment history

3 for the land.

4 ‘‘(c) FORECLOSURE.—

5 ‘‘(1) IN GENERAL.—Notwithstanding any other

6 provision of law, an owner or operator that is a

7 party to a contract entered into under this chapter

8 may not be required to make repayments to the Sec9 retary of amounts received under the contract if—

10 ‘‘(A) the land that is subject to the con11 tract has been foreclosed on; and

12 ‘‘(B) the Secretary determines that for13 giving the repayments is appropriate in order to

14 provide fair and equitable treatment.

15 ‘‘(2) RESUMPTION OF CONTROL.—

16 ‘‘(A) IN GENERAL.—This subsection shall

17 not void the responsibilities of such an owner or

18 operator under the contract if the owner or op19 erator resumes control over the land that is

20 subject to the contract within the period speci21 fied in the contract.

22 ‘‘(B) CONTRACT APPLICABILITY.—On the

23 resumption of the control over the land by the

24 owner or operator, the provisions of the con-
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1 tract in effect on the date of the foreclosure

2 shall apply.

3 ‘‘SEC. 1238C. DUTIES OF THE SECRETARY.

4 ‘‘In return for a contract entered into by an owner

5 or operator under section 1238B, the Secretary shall—

6 ‘‘(1) share the cost of carrying out on the land

7 carbon sequestration practices specified in the con8 tract for which the Secretary determines that cost

9 sharing is appropriate and in the public interest;

10 ‘‘(2) for a period of years not in excess of the

11 term of the contract, pay an annual rental payment

12 in an amount necessary to compensate for—

13 ‘‘(A) the use of carbon sequestration prac14 tices on the land; and

15 ‘‘(B) the retirement of any cropland base

16 and allotment history that the owner or oper17 ator agrees to retire permanently; and

18 ‘‘(3) provide conservation technical assistance

19 to assist the owner or operator in carrying out the

20 contract.

21 ‘‘SEC. 1238D. PAYMENTS.

22 ‘‘(a) TIME OF PAYMENT.—The Secretary shall pro23 vide payment for obligations incurred by the Secretary

24 under a contract entered into under this chapter—
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1 ‘‘(1) with respect to any cost-sharing payment

2 obligation incurred by the Secretary, as soon as

3 practicable after the obligation is incurred; and

4 ‘‘(2) with respect to any annual rental payment

5 obligation incurred by the Secretary—

6 ‘‘(A) as soon as practicable after October

7 1 of each calendar year; or

8 ‘‘(B) at the option of the Secretary, at any

9 time before that date during the year in which

10 the obligation is incurred.

11 ‘‘(b) COST-SHARING PAYMENTS.—

12 ‘‘(1) IN GENERAL.—In making cost-sharing

13 payments to an owner or operator under a contract

14 entered into under this chapter, the Secretary shall

15 pay not more than 50 percent of the cost of carrying

16 out carbon sequestration practices required under

17 the contract for which the Secretary determines that

18 cost-sharing is appropriate and in the public inter19 est.

20 ‘‘(2) MAXIMUM AMOUNT.—The Secretary shall

21 not make any payment under this chapter to the ex22 tent that the total amount of cost-sharing payments

23 provided to an owner or operator for carbon seques24 tration practices from all sources would exceed 100
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1 percent of the total cost of carrying out the prac2 tices.

3 ‘‘(3) OTHER FEDERAL ASSISTANCE.—An owner

4 or operator shall not be eligible to receive or retain

5 cost-share assistance for land under this subsection

6 if the owner or operator receives any other Federal

7 cost-share assistance under this Act with respect to

8 the land under any other provision of law.

9 ‘‘(c) RENTAL PAYMENTS.—

10 ‘‘(1) IN GENERAL.—In determining the amount

11 of annual rental payments to be paid to owners and

12 operators for carrying out carbon sequestration

13 practices, the Secretary may consider, among other

14 factors, the amount necessary to encourage owners

15 or operators of land to participate in the program

16 established by this chapter.

17 ‘‘(2) BIDS OR OTHER MEANS.—The amounts

18 payable to owners or operators in the form of rental

19 payments under contracts entered into under this

20 chapter may be determined through—

21 ‘‘(A) the submission of bids for such con22 tracts by owners and operators in such manner

23 as the Secretary may prescribe; or

24 ‘‘(B) such other means as the Secretary

25 determines are appropriate.
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1 ‘‘(3) FACTORS.—In determining the accept2 ability of contract offers, the Secretary—

3 ‘‘(A) shall take into consideration the ex4 tent to which enrollment of the land that is the

5 subject of the contract offer would increase the

6 sequestration of carbon in accordance with sec7 tion 1238A;

8 ‘‘(B) may take into consideration the ex9 tent to which enrollment of the land that is the

10 subject of the contract offer would improve soil

11 resources, water quality, or wildlife habitat, or

12 provide other environmental benefits; and

13 ‘‘(C) may establish different criteria in

14 various States and regions of the United States

15 based on the extent to which the sequestration

16 of carbon, water quality, or wildlife habitat may

17 be improved or erosion may be abated.

18 ‘‘(d) FORM OF PAYMENT.—

19 ‘‘(1) IN GENERAL.—Except as otherwise pro20 vided in this section, payments under this chapter—

21 ‘‘(A) shall be made in cash or in the form

22 of in-kind commodities in such amount and on

23 such time schedule as is agreed on by the owner

24 or operator and specified in the contract; and
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1 ‘‘(B) may be made in advance of deter2 mination of performance.

3 ‘‘(2) IN-KIND COMMODITIES.—If the payment is

4 made with in-kind commodities, the payment shall

5 be made by the Commodity Credit Corporation—

6 ‘‘(A) by delivery of the commodity involved

7 to the owner or operator at a warehouse or

8 other similar facility located in the county in

9 which the land subject to the contract is located

10 or at such other location as is agreed to by the

11 Secretary and the owner or operator;

12 ‘‘(B) by the transfer of negotiable ware13 house receipts; or

14 ‘‘(C) by such other method, including the

15 sale of the commodity in commercial markets,

16 as is determined by the Secretary to be appro17 priate to enable the owner or operator to receive

18 efficient and expeditious possession of the com19 modity.

20 ‘‘(3) SUBSTITUTION IN CASH.—If stocks of a

21 commodity acquired by the Commodity Credit Cor22 poration are not readily available to make full pay23 ment in kind to the owner or operator, the Secretary

24 may substitute full or partial payment in cash for

25 payment in kind.
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1 ‘‘(4) STATE CARBON SEQUESTRATION PRO2 GRAM.—Payments to an owner or operator under a

3 special carbon sequestration program described in

4 subsection (f)(4) shall be in the form of cash only.

5 ‘‘(e) PAYMENT TO OTHERS.—If an owner or operator

6 that is entitled to a payment under a contract entered into

7 under this chapter dies, becomes incompetent, is otherwise

8 unable to receive a payment under this chapter, or is suc9 ceeded by another person that renders or completes the

10 required performance, the Secretary shall make the pay11 ment, in accordance with regulations promulgated by the

12 Secretary and without regard to any other provision of

13 law, in such manner as the Secretary determines is fair

14 and reasonable in light of all the circumstances.

15 ‘‘(f) PAYMENT LIMITATIONS.—

16 ‘‘(1) TOTAL AMOUNT.—The total amount of

17 rental payments, including rental payments made in

18 the form of in-kind commodities, made to a person

19 under this chapter for any fiscal year may not ex20 ceed $50,000.

21 ‘‘(2) AMOUNT PER ACRE.—The amount of rent22 al payments made to a person under this chapter for

23 any fiscal year may not exceed $20 per acre.

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

2 issue regulations—

3 ‘‘(i) defining the term ‘person’ as used

4 in this subsection; and

5 ‘‘(ii) prescribing such rules as the Sec6 retary determines are necessary to ensure

7 a fair and reasonable application of the

8 limitation contained in this subsection.

9 ‘‘(B) CORPORATIONS.—The regulations

10 issued by the Secretary on December 18, 1970,

11 under section 101 of the Agricultural Act of

12 1970 (7 U.S.C. 1307) shall be used to deter13 mine whether corporations and their stock14 holders may be considered to be separate per15 sons under this subsection.

16 ‘‘(4) OTHER PAYMENTS.—Rental payments re17 ceived by an owner or operator shall be in addition

18 to, and shall not affect, the total amount of pay19 ments that the owner or operator is otherwise eligi20 ble to receive under—

21 ‘‘(A) the Federal Agriculture Improvement

22 and Reform Act of 1996 (Public Law 104–

23 127), including the Agricultural Market Transi24 tion Act (7 U.S.C. 7201 et seq.);
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1 ‘‘(B) the Food, Agriculture, Conservation,

2 and Trade Act of 1990 (Public Law 101–624);

3 or

4 ‘‘(C) the Agricultural Act of 1949 (7

5 U.S.C. 1421 et seq.).

6 ‘‘(5) STATE CARBON SEQUESTRATION PRO7 GRAM.—

8 ‘‘(A) IN GENERAL.—This subsection and

9 section 1305(f) of the Agricultural Reconcili10 ation Act of 1987 (7 U.S.C. 1308 note; Public

11 Law 100–203) shall not be applicable to pay12 ments received by a State, political subdivision,

13 or agency of a State or political subdivision in

14 connection with agreements entered into under

15 a special carbon sequestration program carried

16 out by that entity that has been approved by

17 the Secretary.

18 ‘‘(B) PAYMENTS TO STATES AND POLIT19 ICAL SUBDIVISIONS.—The Secretary may enter

20 into such agreements for payments to States,

21 political subdivisions, or agencies of States or

22 political subdivisions as the Secretary deter23 mines will advance the purposes of this chapter.

24 ‘‘(g) EXEMPTION FROM AUTOMATIC SEQUESTER.—

25 Notwithstanding any other provision of law, no order
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1 issued for any fiscal year under section 252 of the Bal2 anced Budget and Emergency Deficit Control Act of 1985

3 (2 U.S.C. 902) shall affect any payment under this chap4 ter.

5 ‘‘(h) OTHER ASSISTANCE.—In addition to any pay6 ment under this chapter, an owner or operator may receive

7 cost-share assistance, rental payments, or tax benefits

8 from a State or political subdivision of a State for enroll9 ing land in the carbon sequestration program.

10 ‘‘(i) TREATMENT OF PAYMENTS.—Payments received

11 by an owner or operator under this chapter shall be con12 sidered rentals from real estate for the purposes of section

13 1402(a)(1) of the Internal Revenue Code of 1986.

14 ‘‘SEC. 1238E. CHANGES IN OWNERSHIP; MODIFICATION OR

15 TERMINATION OF CONTRACTS.

16 ‘‘(a) CHANGES IN OWNERSHIP.—

17 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

18 and (3), no contract shall be entered into under this

19 chapter concerning land with respect to which the

20 ownership has changed in the 1-year period pre21 ceding the first year of the contract period unless—

22 ‘‘(A) the new ownership was acquired by

23 will or succession as a result of the death of the

24 previous owner;
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1 ‘‘(B) the new ownership was acquired be2 fore April 1, 2000;

3 ‘‘(C) the Secretary determines that the

4 land was acquired under circumstances that

5 give adequate assurances that the land was not

6 acquired for the purpose of enrolling the land in

7 the carbon sequestration program; or

8 ‘‘(D) the ownership change occurred be9 cause of foreclosure on the land and the owner

10 of the land immediately before the foreclosure

11 exercises a right of redemption from the mort12 gage holder in accordance with State law.

13 ‘‘(2) LIMITATIONS.—Paragraph (1) shall not—

14 ‘‘(A) prohibit the continuation of an agree15 ment by a new owner after an agreement has

16 been entered into under this chapter; or

17 ‘‘(B) require a person to own the land as

18 a condition of eligibility for entering into the

19 contract if the person—

20 ‘‘(i) has operated the land to be cov21 ered by a contract under this section for at

22 least 1 year preceding the later of—

23 ‘‘(I) the date of the contract; or

24 ‘‘(II) April 1, 2000; and
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1 ‘‘(ii) controls the land for the contract

2 period.

3 ‘‘(3) OPTIONS FOR NEW OWNER OR OPER4 ATOR.—If, during the term of a contract entered

5 into under this chapter, an owner or operator of

6 land subject to the contract sells or otherwise trans7 fers the ownership or right of occupancy of the land,

8 the new owner or operator of the land may—

9 ‘‘(A) continue the contract under the same

10 terms or conditions;

11 ‘‘(B) enter into a new contract in accord12 ance with this chapter; or

13 ‘‘(C) elect not to participate in the pro14 gram established by this chapter.

15 ‘‘(b) MODIFICATION OF CONTRACTS.—The Secretary

16 may modify a contract entered into with an owner or oper17 ator under this chapter if—

18 ‘‘(1) the owner or operator agrees to the modi19 fication; and

20 ‘‘(2) the Secretary determines that the modi21 fication is desirable—

22 ‘‘(A) to carry out this chapter;

23 ‘‘(B) to facilitate the practical administra24 tion of this chapter; or
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1 ‘‘(C) to achieve such other goals as the

2 Secretary determines are appropriate, con3 sistent with this chapter.

4 ‘‘(c) TERMINATION OF CONTRACTS.—

5 ‘‘(1) IN GENERAL.—The Secretary may termi6 nate a contract entered into with an owner or oper7 ator under this chapter if—

8 ‘‘(A) the owner or operator agrees to the

9 termination; and

10 ‘‘(B) the Secretary determines that the ter11 mination would be in the public interest.

12 ‘‘(2) CONGRESSIONAL NOTICE.—Not later than

13 90 days before taking any action to terminate under

14 paragraph (1) a contract entered into under this

15 chapter, the Secretary shall provide to the Com16 mittee on Agriculture of the House of Representa17 tives and the Committee on Agriculture, Nutrition,

18 and Forestry of the Senate written notice of the ac19 tion.

20 ‘‘SEC. 1238F. BASE HISTORY.

21 ‘‘(a) IN GENERAL.—A reduction, based on a ratio be22 tween the total cropland acreage on the farm and the acre23 age placed in the carbon sequestration program authorized

24 by this chapter, as determined by the Secretary, shall be

25 made during the period of the contract, in the aggregate,
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1 in crop bases, quotas, and allotments on the farm with

2 respect to crops for which there is a production adjust3 ment program.

4 ‘‘(b) PRESERVATION OF BASE AND ALLOTMENT HIS5 TORY.—Notwithstanding sections 1211 and 1221, the

6 Secretary, by regulation, may provide for preservation of

7 cropland base and allotment history applicable to acreage

8 on which carbon sequestration practices are carried out

9 under this section, for the purpose of any Federal program

10 under which the history is used as a basis for participation

11 in the program or for an allotment or other limitation in

12 the program, unless the owner and operator agree under

13 the contract to retire permanently that cropland base and

14 allotment history.

15 ‘‘(c) EXTENSION OF BASE AND ALLOTMENT HIS16 TORY.—

17 ‘‘(1) IN GENERAL.—The Secretary shall offer

18 the owner or operator of a farm or ranch an oppor19 tunity to extend the preservation of cropland base

20 and allotment history under subsection (b) for such

21 time as the Secretary determines is appropriate after

22 the expiration date of a contract under this chapter

23 at the request of the owner or operator.

24 ‘‘(2) CONDITIONS.—In return for the extension,

25 the owner or operator shall agree to continue to
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1 abide by the terms and conditions of the original

2 contract, except that the owner or operator shall re3 ceive no additional cost share, annual rental, or

4 bonus payment.

5 ‘‘(d) VIOLATION OF CONTRACTS.—In addition to any

6 other remedy prescribed by law, the Secretary may reduce

7 or terminate the quantity of cropland base and allotment

8 history preserved under this section for acreage with re9 spect to which there has occurred a violation of a term

10 or condition of a contract entered into under this chapter.

11 ‘‘SEC. 1238G. FUNDING.

12 ‘‘The Secretary shall use to carry out this chapter

13 (including to pay administrative costs incurred by the Nat14 ural Resources Conservation Service in carrying out this

15 chapter)—

16 ‘‘(1) funds of the Commodity Credit Corpora17 tion made available under section 1241(a)(3); and

18 ‘‘(2) at the option of, and transfer by, another

19 Federal agency, funds of the agency that are avail20 able to the agency for climate change initiatives or

21 greenhouse gas emission reductions.’’.

22 SEC. 3. FUNDING.

23 Section 1241(a)(3) of the Food Security Act of 1985

24 (16 U.S.C. 3841(a)(3)) is amended by striking ‘‘chapter

25 4’’ and inserting ‘‘chapters 2 and 4’’.
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1 SEC. 4. REGULATIONS.

2 (a) PROPOSED REGULATIONS.—Not later than 180

3 days after the date of enactment of this Act, the Secretary

4 of Agriculture shall publish in the Federal Register pro5 posed regulations for carrying out this Act and the amend6 ments made by this Act.

7 (b) FINAL REGULATIONS.—Not later than 60 days

8 after the date of publication of the proposed regulations,

9 the Secretary shall promulgate final regulations for car10 rying out this Act and the amendments made by this Act.

11 SEC. 5. EFFECTIVE DATES.

12 (a) IN GENERAL.—Except as provided in subsection

13 (b), this Act and the amendments made by this Act take

14 effect on January 1, 2001.

15 (b) REGULATIONS.—Section 4 takes effect on the

16 date of enactment of this Act.

Æ