II 

110TH CONGRESS 

1ST SESSION S. 1424 

To provide for the continuation of agricultural programs through fiscal year 

2013, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 17, 2007 

Mr. SCHUMER (for himself, Mr. LIEBERMAN, Mr. KERRY, and Mr. KENNEDY) 

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

Committee on Finance 

A BILL 

To provide for the continuation of agricultural programs 

through fiscal year 2013, 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; TABLE OF CONTENTS. 

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

5 ‘‘Farm, Nutrition, and Community Investment Act of 

6 2007’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Secretary. 

TITLE I—DAIRY 

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Sec. 1001. Continuation of the milk income loss contract program. 

Sec. 1002. Minimum price for Class I milk under Federal milk marketing orders. 

Sec. 1003. Dairy export incentive and dairy indemnity programs. 

Sec. 1004. Funding of dairy promotion and research program. 

Sec. 1005. Federal milk marketing orders. 

Sec. 1006. Dairy processing equipment loan guarantee fund. 

Sec. 1007. Federal loan forgiveness program. 

Sec. 1008. Mandatory reporting of dairy commodities. 

TITLE II—CONSERVATION 

Subtitle A—Conservation Security 

Sec. 2001. Sense of Congress regarding the conservation security program. 

Sec. 2002. Dual eligibility for certified organic farms. 

Sec. 2003. Comprehensive conservation enhancement program. 

Sec. 2004. Conservation security program. 

Subtitle B—Conservation Reserve 

Sec. 2011. Conservation reserve program. 

Subtitle C—Wetlands Reserve Program 

Sec. 2021. Wetlands reserve program. 

Subtitle D—Environmental Quality Incentives 

Sec. 2031. Environmental quality incentives program. 

Subtitle E—Farmland Protection Program 

Sec. 2041. Farmland protection program. 

Sec. 2042. Debt for agricultural easements. 

Sec. 2043. Farmland Protection Policy Act. 

Subtitle F—Cooperative Conservation Partnership Initiative 

Sec. 2051. Cooperative conservation partnership initiative. 

Sec. 2052. Minimum base allocation to States in funding of certain department 

of agriculture conservation programs. 

Subtitle G—Other Conservation Programs 

Sec. 2061. Wildlife habitat incentive program. 

Sec. 2062. Pilot program for comprehensive conservation planning. 

Sec. 2063. Pilot program for conservation risk management. 

Subtitle H—Funding and Administration 

Sec. 2071. Funding and administration. 

Sec. 2072. Delivery of technical assistance. 

Sec. 2073. Conservation application process. 

Sec. 2074. Planning for agriculture grants. 

Sec. 2075. Exclusion of payments under Department of Agriculture conservation programs from adjusted gross income limitation. 

Subtitle I—Conservation Loan Guarantee Program 

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Sec. 2081. Conservation loan guarantee program. 

TITLE III—TRADE 

Sec. 3001. Market access program. 

Sec. 3002. Technical assistance for specialty crops. 

TITLE IV—NUTRITION PROGRAMS 

Subtitle A—Food Stamp Program 

Sec. 4001. Definition of thrifty food plan. 

Sec. 4002. Exclusion of combat-related military pay from countable income. 

Sec. 4003. Deductions from income. 

Sec. 4004. Dependent care deduction. 

Sec. 4005. Allowable financial resources. 

Sec. 4006. Exclusion of retirement accounts from countable financial resources. 

Sec. 4007. Simplified reporting. 

Sec. 4008. Work requirement. 

Sec. 4009. Fairness for legal immigrants. 

Sec. 4010. Minimum benefit. 

Sec. 4011. Accountability for paperwork requirements. 

Sec. 4012. Administrative cost-sharing and quality control. 

Sec. 4013. Reauthorization of food stamp program and food distribution program on Indian reservations. 

Sec. 4014. Assistance for community food projects. 

Sec. 4015. Availability of commodities for the emergency food assistance program. 

Sec. 4016. Study on comparable access to food stamp benefits for Puerto Rico. 

Subtitle B—Miscellaneous 

Sec. 4021. Nutrition information and awareness pilot program. 

TITLE V—RURAL DEVELOPMENT 

Sec. 5001. Farm and ranch profitability grant program. 

Sec. 5002. Definition of rural and rural area. 

TITLE VI—FORESTRY 

Subtitle A—Cooperative Forestry Assistance Act of 1978 

Sec. 6001. Community forest and open space conservation program. 

Sec. 6002. Development of National priorities and State forest plans. 

Subtitle B—Healthy Forests Restoration Act of 2003 

Sec. 6011. Healthy forests reserve program. 

TITLE VII—ENERGY 

Sec. 7001. Definition of biomass. 

Sec. 7002. Federal procurement of biobased products. 

Sec. 7003. Biorefinery development grants. 

Sec. 7004. Energy audit and renewable energy development program. 

Sec. 7005. Renewable energy systems and energy efficiency improvements. 

Sec. 7006. Biomass research and development. 

Sec. 7007. Cooperative research and extension projects. 

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Sec. 7008. Industrial site redevelopment through cellulosic program. 

Sec. 7009. Farm and ranch energy efficiency rebate program. 

Sec. 7010. Alternative uses for biofuel byproducts. 

Sec. 7011. National net metering for farm energy. 

TITLE VIII—HEALTH DIETS 

Sec. 8001. Expansion of fresh fruit and vegetable program. 

Sec. 8002. Section 32 specialty crop purchases. 

Sec. 8003. School preference study. 

Sec. 8004. Independent evaluation of commodity purchase process. 

Sec. 8005. WIC farmers’ market nutrition program. 

Sec. 8006. Seniors farmers’ market nutrition program. 

Sec. 8007. Direct-to-consumer promotion program. 

Sec. 8008. Purchases of locally produced foods. 

TITLE IX—MISCELLANEOUS 

Subtitle A—Organic Agriculture 

Sec. 9001. National organic certification cost-share program. 

Subtitle B—Crop Insurance 

Sec. 9011. Provision of organic insurance programs. 

Sec. 9012. Coverage area flexibility. 

Sec. 9013. Crop insurance incentives for beginning farmers and ranchers. 

Sec. 9014. Crop insurance appeals for denial of claims. 

Sec. 9015. Expanded coverage based on historical data. 

Sec. 9016. Reauthorization, expansion, and improvement of adjusted gross revenue insurance pilot program. 

Sec. 9017. Agricultural management assistance program. 

Sec. 9018. Education and risk management assistance. 

Subtitle C—General Provisions 

Sec. 9021. Colony collapse disorder. 

Sec. 9022. 100-percent exclusion of gain on sales of conservation easements on 

farmland to eligible entities for conservation purposes. 

1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Sec3 retary of Agriculture. 

4 TITLE I—DAIRY 

5 SEC. 1001. CONTINUATION OF THE MILK INCOME LOSS 

6 CONTRACT PROGRAM. 

7 (a) CONTINUATION OF PROGRAM; PAYMENT PER8 CENTAGE RATE.—Section 1502(c)(3)(C) of the Farm SeVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
5 

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1 curity and Rural Investment Act of 2002 (7 U.S.C. 

2 7982(c)(3)(C)) is amended by striking ‘‘0 percent’’ and 

3 inserting ‘‘and ending on September 30, 2013, 45 per4 cent’’. 

5 (b) MAXIMUM PAYMENT QUANTITY.—Section 

6 1502(d)(2)) of the Farm Security and Rural Investment 

7 Act of 2002 (7 U.S.C. 7982(d)(2)) is amended in the first 

8 sentence by striking ‘‘2,400,000 pounds’’ and inserting 

9 ‘‘4,800,000 pounds’’. 

10 (c) CONTRACT SIGNUP AND DURATION.—Section 

11 1502 of the Farm Security and Rural Investment Act of 

12 2002 (7 U.S.C. 7982) is amended in subsections (f) and 

13 (g)(1) by striking ‘‘September 30, 2007’’ each place it ap14 pears and inserting ‘‘September 30, 2013’’. 

15 SEC. 1002. MINIMUM PRICE FOR CLASS I MILK UNDER FED16 ERAL MILK MARKETING ORDERS. 

17 Section 8c(5) of the Agricultural Adjustment Act (7 

18 U.S.C. 608c(5)), reenacted with amendments by the Agri19 cultural Marketing Agreement Act of 1937, is amended 

20 by adding at the end the following: 

21 ‘‘(P) CLASS I MILK PRICING.— 

22 ‘‘(i) MINIMUM PRICE.—Notwith23 standing any other provision of law, begin24 ning on October 1, 2007, the minimum 

25 price for Class I milk under each Federal 

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1 milk marketing order issued under this 

2 subsection shall be $15.58 per hundred3 weight. 

4 ‘‘(ii) ADJUSTMENT FOR INFLATION.— 

5 ‘‘(I) IN GENERAL.—Beginning on 

6 October 1, 2008, and each October 1 

7 thereafter, the amount in clause (i) 

8 shall be adjusted by the percent that 

9 equals the total percentage change for 

10 the 12-month period ending the pre11 ceding June 30 in the Consumer Price 

12 Index for All Urban Consumers pub13 lished by the Bureau of Labor Statis14 tics of the Department of Labor. 

15 ‘‘(II) REQUIREMENT.—Each ad16 justment under subclause (I) shall be 

17 based on the unrounded amount for 

18 the prior 12-month period.’’. 

19 SEC. 1003. DAIRY EXPORT INCENTIVE AND DAIRY INDEM20 NITY PROGRAMS. 

21 (a) DAIRY EXPORT INCENTIVE PROGRAM.—Section 

22 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a– 

23 14(a)) is amended by striking ‘‘2007’’ and inserting 

24 ‘‘2013’’. 

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1 (b) DAIRY INDEMNITY PROGRAM.—Section 3 of Pub2 lic Law 90–484 (7 U.S.C. 450l) is amended by striking 

3 ‘‘2007’’ and inserting ‘‘2013’’. 

4 SEC. 1004. FUNDING OF DAIRY PROMOTION AND RESEARCH 

5 PROGRAM. 

6 Section 113(e)(2) of the Dairy Production Stabiliza7 tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 

8 striking ‘‘2007’’ and inserting ‘‘2013’’. 

9 SEC. 1005. FEDERAL MILK MARKETING ORDERS. 

10 (a) 2-CLASS SYSTEM FOR CLASSIFYING MILK.— 

11 (1) IN GENERAL.—Not later than September 

12 30, 2008, the Secretary shall conduct a study of the 

13 economic benefits to milk producers of establishing 

14 a 2-class system for classifying milk under Federal 

15 milk marketing orders issued under section 8c(5) of 

16 the Agricultural Adjustment Act (7 U.S.C. 608c(5)), 

17 reenacted with amendments by the Agricultural 

18 Marketing Agreement Act of 1937, consisting of a 

19 fluid milk class and a manufacturing grade milk 

20 class (with the price for both classes determined 

21 using the component prices of butterfat, protein, and 

22 other solids). 

23 (2) AMENDMENT TO ORDERS.— 

24 (A) IN GENERAL.—If the Secretary deter25 mines (on the basis of the study conducted 

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1 under paragraph (1)) that a 2-class system for 

2 classifying milk under Federal milk marketing 

3 orders would have a positive impact on milk 

4 producers, the Secretary submit a report to the 

5 Committee on Agriculture of the House of Rep6 resentatives and the Committee on Agriculture, 

7 Nutrition, and Forestry of the Senate that in8 cludes the text of proposed amendments to the 

9 Federal milk marketing orders to implement 

10 the 2-class system for classifying milk. 

11 (B) EFFECTIVE DATE.—The proposed 

12 amendments described in subparagraph (A) 

13 shall take effect not earlier than the date that 

14 is 180 days after the date on which the report 

15 is submitted under that subparagraph. 

16 (b) DEADLINE FOR ISSUANCE OF ORDERS.—Section 

17 8c(4) of the Agricultural Adjustment Act (7 U.S.C. 

18 608c(4)), reenacted with amendments by the Agricultural 

19 Marketing Agreement Act of 1937, is amended by striking 

20 ‘‘After’’ and inserting ‘‘Not later than 30 days after’’. 

21 (c) ADVANCED PRICING.—Section 8c(5) of the Agri22 cultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 

23 with amendments by the Agricultural Marketing Agree24 ment Act of 1937, is amended by adding at the end the 

25 following: 

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1 ‘‘(P) ADVANCED PRICING.—Not later than 

2 September 30, 2007, in calculating the ad3 vanced price of Class I butterfat milk and Class 

4 I and II skim milk under Federal milk mar5 keting orders, the Secretary shall use the 4- 

6 week component prices that are used to cal7 culate prices for Class III and Class IV milk, 

8 as determined by the Secretary.’’. 

9 (d) ECONOMIC IMPACT ASSESSMENT.—The Sec10 retary shall— 

11 (1) carry out a review of the milk–feed ratio 

12 during the 1–year period ending on the date of en13 actment of this Act; and 

14 (2) not later than September 30, 2008, and 

15 each time a proposed change in the Federal milk 

16 marketing order formulas is considered by the Sec17 retary— 

18 (A) assess the economic impact, over a 1- 

19 and 2-year period, of proposed changes in Fed20 eral milk marketing order formulas on— 

21 (i) milk supply; 

22 (ii) farm profitability; 

23 (iii) consumer demand; and 

24 (iv) market prices; 

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1 (B) submit to the Committee on Agri2 culture of the House of Representatives and the 

3 Committee on Agriculture, Nutrition, and For4 estry a report that describes the results of the 

5 assessment; and 

6 (C) consider, and include in the record, the 

7 results of the assessment before making a deci8 sion on any proposed change to the Federal 

9 milk marketing order formulas. 

10 SEC. 1006. DAIRY PROCESSING EQUIPMENT LOAN GUAR11 ANTEE FUND. 

12 (a) LOANS.— 

13 (1) IN GENERAL.—Section 310B(a) of the Con14 solidated Farm and Rural Development Act (7 

15 U.S.C. 1932(a)) is amended— 

16 (A) by designating the first through fifth 

17 sentences as paragraphs (1) through (5), re18 spectively; 

19 (B) by striking ‘‘SEC 310B. (a) The Sec20 retary’’ and inserting the following: 

21 ‘‘SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE. 

22 ‘‘(a) LOANS.— 

23 ‘‘(1) IN GENERAL.—The Secretary’’; 

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1 (C) by striking ‘‘for the purposes of (1) 

2 improving’’ and inserting ‘‘for the purposes 

3 of— 

4 ‘‘(A) improving’’; 

5 (D) by striking ‘‘abatement and control, 

6 (2) the conservation’’ and inserting ‘‘abatement 

7 and control; 

8 ‘‘(B) the conservation’’; 

9 (E) by striking ‘‘rural areas, (3) reducing’’ 

10 and inserting ‘‘rural areas; 

11 ‘‘(C) reducing’’; 

12 (F) by striking ‘‘rural areas, and (4) to fa13 cilitate economic’’ and inserting ‘‘rural areas; 

14 ‘‘(D) facilitating economic’’; and 

15 (G) by striking ‘‘foreign trade.’’ and insert16 ing ‘‘foreign trade; and 

17 ‘‘(E) providing processors of dairy prod18 ucts with incentives for investing in new equip19 ment and technologies by using not more than 

20 $15,000,000 each fiscal year to— 

21 ‘‘(i) make loans to dairy processors 

22 and cooperatives to cover not more than 50 

23 percent of the cost of acquisition and adop24 tion of new equipment, equipment up25 grades, and new technologies— 

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1 ‘‘(I) at a fixed rate of interest 

2 not to exceed the prime lending rate 

3 plus 1 percent; and 

4 ‘‘(II) with a term of not to ex5 ceed 15 years; and 

6 ‘‘(ii) guarantee loans made to dairy 

7 processors and cooperatives for the acquisi8 tion and adoption of new dairy equipment, 

9 equipment upgrades, and new technologies, 

10 at a guarantee rate of 90 percent.’’. 

11 (2) CONFORMING AMENDMENTS.— 

12 (A) Section 307(a)(6)(B)(ii) of the Con13 solidated Farm and Rural Development Act (7 

14 U.S.C. 1927(a)(6)(B)(ii)) is amended by strik15 ing ‘‘clause (1) of section 310B(a)’’ and insert16 ing ‘‘section 310B(a)(1)(A)’’. 

17 (B) Section 333A(g)(1)(B) of the Consoli18 dated Farm and Rural Development Act (7 

19 U.S.C. 1983a(g)(1)(B)) is amended by striking 

20 ‘‘310B(a)(1)’’ and inserting ‘‘310(a)(1)(A)’’. 

21 (C) Section 381E(d)(3)(B) of the Consoli22 dated Farm and Rural Development Act (7 

23 U.S.C. 2009d(d)(3)(B)) is amended by striking 

24 ‘‘310B(a)(1)’’ and inserting ‘‘310B(a)(1)(A)’’. 

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1 (b) LENDING POWER FOR DAIRY PROCESSING CO2 OPERATIVES.—Section 3.7 of the Farm Credit Act of 

3 1971 (12 U.S.C. 2128) is amended by adding at the end 

4 the following: 

5 ‘‘(g) DAIRY PROCESSING COOPERATIVES.— 

6 ‘‘(1) IN GENERAL.—The banks for cooperatives 

7 may use not more than $15,000,000 each fiscal year 

8 to provide dairy processing cooperatives with work9 ing capital lines of credit and accounts receivable fi10 nancing for the purpose of accessing export mar11 keting opportunities for milk and milk products. 

12 ‘‘(2) LIMITATIONS.—Financing provided by the 

13 banks for cooperatives for a project under paragraph 

14 (1) may not exceed the lesser of— 

15 ‘‘(A) $1,000,000; or 

16 ‘‘(B) 75 percent of the costs of carrying 

17 out the project. 

18 ‘‘(3) TERM.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (B), the term of a line of credit 

21 described in paragraph (1) shall not exceed 24 

22 months. 

23 ‘‘(B) REVOLVING LINES OF CREDIT.—A 

24 revolving line of credit may be used for multiple 

25 transactions. 

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1 ‘‘(4) DUE DATE.—An accounts receivable fi2 nancing loan under this subsection shall be due on 

3 the earlier of— 

4 ‘‘(A) the date on which the receivable is 

5 paid; or 

6 ‘‘(B) 180 days after the date of disburse7 ment. 

8 ‘‘(5) USE OF FINANCING.— 

9 ‘‘(A) WORKING CAPITAL LINE OF CREDIT

10 FINANCING.—Working capital line of credit fi11 nancing under this subsection may be used— 

12 ‘‘(i) to acquire inventory for the pro13 duction of milk; 

14 ‘‘(ii) to pay direct and indirect costs 

15 (such as design, engineering, labor, and 

16 overhead costs) used for— 

17 ‘‘(I) the manufacture or purchase 

18 of goods, including work-in-process, 

19 for the production of milk; or 

20 ‘‘(II) for the provision of services 

21 for the production of milk; or 

22 ‘‘(iii) to support standby letters of 

23 credit used as bid bonds, performance 

24 bonds, or payment guarantees. 

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1 ‘‘(B) ACCOUNTS RECEIVABLE FINANC2 ING.—Accounts receivable financing under this 

3 subsection may be used to finance export ac4 counts receivables for milk and milk products 

5 sold on payment terms of not more than 180 

6 days after the date of arrival at the port of im7 portation, if the finance export accounts receiv8 able have been insured by the Commodity Cred9 it Corporation or other guarantor approved by 

10 the Secretary.’’. 

11 SEC. 1007. FEDERAL LOAN FORGIVENESS PROGRAM. 

12 The National Agricultural Research, Extension, and 

13 Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 

14 amended by adding at the end the following: 

15 ‘‘Subtitle P—Federal Dairy 

16 Education Loan Forgiveness 

17 ‘‘SEC. 1495. SHORT TITLE. 

18 ‘‘This subtitle may be cited as the ‘Federal Dairy 

19 Education Loan Forgiveness Act’. 

20 ‘‘SEC. 1496. DEFINITIONS. 

21 ‘‘In this subtitle: 

22 ‘‘(1) FAMILY DAIRY FARM.—The term ‘family 

23 dairy farm’ means the real property of a dairy 

24 farm— 

25 ‘‘(A) owned by— 

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1 ‘‘(i) 1 or more immediate family mem2 bers; or 

3 ‘‘(ii) a family dairy farm corporation; 

4 and 

5 ‘‘(B) used for the production, for commer6 cial purposes, of milk or milk products. 

7 ‘‘(2) FAMILY DAIRY FARM CORPORATION.—The 

8 term ‘family dairy farm corporation’ means a cor9 poration— 

10 ‘‘(A) at least 75 percent of the assets of 

11 which are devoted to active involvement in 

12 farming; and 

13 ‘‘(B) at least 75 percent of each class of 

14 stock of which is continuously owned by 1 or 

15 more immediate family members. 

16 ‘‘(3) IMMEDIATE FAMILY MEMBER.—The term 

17 ‘immediate family member’ means a spouse, child, 

18 stepchild, parent, stepparent, grandparent, brother, 

19 stepbrother, sister, stepsister, or similar relative-in20 law of an owner of real property, as determined by 

21 the Secretary. 

22 ‘‘(4) INSTITUTION OF HIGHER EDUCATION.— 

23 The term ‘institution of higher education’ has the 

24 meaning given the term in section 101(a) of the 

25 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

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1 ‘‘(5) PROGRAM.—The term ‘program’ means 

2 the Federal dairy education loan forgiveness pro3 gram established under section 1497(a). 

4 ‘‘(6) QUALIFIED APPLICANT.—The term ‘quali5 fied applicant’ means a resident of the United States 

6 who, as determined by the Secretary— 

7 ‘‘(A) holds a 2- or 4-year degree in a field 

8 related to the production of agricultural prod9 ucts from an institution of higher education; 

10 ‘‘(B) on or after January 1, 2008, has 

11 commenced the first year of full-time ownership 

12 or operation of a family dairy farm; and 

13 ‘‘(C) is the borrower of an outstanding 

14 qualified loan as a result of pursuing a degree 

15 described in subparagraph (A). 

16 ‘‘(7) QUALIFIED LOAN.—The term ‘qualified 

17 loan’ means— 

18 ‘‘(A)(i) a loan made, insured, or guaran19 teed under section 428 or 428H of the Higher 

20 Education Act of 1965 (20 U.S.C. 1078, 1078– 

21 8); 

22 ‘‘(ii) a Federal Direct Stafford Loan or a 

23 Federal Direct Unsubsidized Stafford Loan 

24 made under section 455 of that Act (20 U.S.C. 

25 1087e); or 

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1 ‘‘(iii) a consolidation loan under section 

2 428C of that Act (20 U.S.C. 1078–3), or a 

3 Federal Direct Consolidation Loan under sec4 tion 455 of that Act (20 U.S.C. 1087e), to the 

5 extent that the amount of the loan was used to 

6 repay a loan described in clause (i) or (ii); and 

7 ‘‘(B) a loan under part B or D of title IV 

8 of that Act (20 U.S.C. 1070 et seq.); or 

9 ‘‘(C) a loan under a guaranteed student 

10 loan program of the Department. 

11 ‘‘SEC. 1497. FEDERAL DAIRY EDUCATION LOAN FORGIVE12 NESS PROGRAM. 

13 ‘‘(a) IN GENERAL.—Subject to the availability of ap14 propriations, the Secretary shall carry out a Federal dairy 

15 education loan forgiveness program under which the Sec16 retary shall assume the obligation to repay an amount cal17 culated in accordance with subsection (c) for 1 or more 

18 qualified loans made to eligible qualified applicants in ac19 cordance with this section. 

20 ‘‘(b) ELIGIBILITY.—A qualified applicant shall sub21 mit to the Secretary an application and such documenta22 tion of continued eligibility as the Secretary determines 

23 to be appropriate. 

24 ‘‘(c) MAXIMUM AMOUNT.—The maximum amount 

25 that the Secretary may repay under the program for each 

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1 qualified applicant shall be equal to the average annual 

2 cost of tuition at land–grant colleges and universities (as 

3 determined by the Secretary annually), for each year that 

4 the qualified applicant— 

5 ‘‘(1) is an owner or operator of a family dairy 

6 farm; and 

7 ‘‘(2) has not otherwise received loan repayment 

8 on behalf of the qualified applicant under this sec9 tion or any other Federal or State program. 

10 ‘‘(d) PROHIBITION.—Nothing in this section author11 izes the refunding of any repayment of a qualified loan. 

12 ‘‘(e) EXCLUSION FROM INCOME.—Any payment to, 

13 or on behalf of, a qualified applicant under this subtitle 

14 shall not be included in the gross income of the qualified 

15 applicant for purposes of the Internal Revenue Code of 

16 1986. 

17 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 

18 ‘‘(1) IN GENERAL.—There are authorized to be 

19 appropriated such sums as are necessary to carry 

20 out this subtitle. 

21 ‘‘(2) INSUFFICIENT FUNDS.—If the total 

22 amount of funds appropriated to carry out this sub23 title is insufficient to provide loan repayment under 

24 the program for all eligible qualified applicants, the 

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1 Secretary shall provide loan repayment to eligible 

2 qualified applicants on a pro rata basis.’’. 

3 SEC. 1008. MANDATORY REPORTING OF DAIRY COMMOD4 ITIES. 

5 (a) DEFINITIONS.—Section 272 of the Agricultural 

6 Marketing Act of 1946 (7 U.S.C. 1637a) is amended to 

7 read as follows: 

8 ‘‘SEC. 272. DEFINITIONS. 

9 ‘‘In this subtitle: 

10 ‘‘(1) DAIRY COMMODITY.— 

11 ‘‘(A) IN GENERAL.—The term ‘dairy com12 modity’ means a product manufactured from 

13 milk or a milk-derived ingredient. 

14 ‘‘(B) INCLUSIONS.—The term ‘dairy com15 modity’ includes— 

16 ‘‘(i) fluid milk; 

17 ‘‘(ii) cheese; 

18 ‘‘(iii) butter; 

19 ‘‘(iv) nonfat dry milk; 

20 ‘‘(v) skim milk; 

21 ‘‘(vi) whey products; 

22 ‘‘(vii) dry proteins (such as a milk 

23 protein concentrate, casein, and a casein24 ate); 

25 ‘‘(viii) a lactose product; and 

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1 ‘‘(ix) a fresh dairy product (such as 

2 yogurt and ice cream). 

3 ‘‘(2) DAIRY PROCESSOR.—The term ‘dairy proc4 essor’ means a person or legal entity that commer5 cially processes milk into cheese, butter, nonfat dry 

6 milk, or other dairy solids. 

7 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

8 the Secretary of Agriculture.’’. 

9 (b) MANDATORY REPORTING.—Section 273 of the 

10 Agricultural Marketing Act of 1946 (7 U.S.C. 1637b) is 

11 amended— 

12 (1) by redesignating subsections (c) and (d) as 

13 subsections (d) and (e), respectively; and 

14 (2) by striking subsections (a) and (b) and in15 serting the following: 

16 ‘‘(a) DAILY REPORTING.— 

17 ‘‘(1) IN GENERAL.—The corporate officers or 

18 officially-designated representatives of each dairy 

19 processor shall report to the Secretary at least once 

20 each reporting day, not later than 10:00 a.m. Cen21 tral Time, for each sales transaction involving a 

22 dairy commodity, information concerning— 

23 ‘‘(A) the sales price; 

24 ‘‘(B) the quantity sold; 

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1 ‘‘(C) the location of the sales transaction; 

2 and 

3 ‘‘(D) product characteristics, including— 

4 ‘‘(i) moisture level; 

5 ‘‘(ii) packaging size; 

6 ‘‘(iii) grade; 

7 ‘‘(iv) if appropriate, fat or protein 

8 level; 

9 ‘‘(v) heat level for dried products; and 

10 ‘‘(vi) other defining product character11 istics. 

12 ‘‘(2) PUBLICATION.—The Secretary shall make 

13 the information reported under paragraph (1) avail14 able to the public not less frequently than once each 

15 reporting day, categorized by location and product 

16 characteristics. 

17 ‘‘(b) WEEKLY REPORTING.— 

18 ‘‘(1) IN GENERAL.—The corporate officers or 

19 officially-designated representatives of each dairy 

20 processor shall report to the Secretary, on the first 

21 reporting day of each week, not later than 9:00 a.m. 

22 Central Time, for the prior week information con23 cerning— 

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1 ‘‘(A) the sales prices for sales transactions 

2 involving dairy commodities, categorized by 

3 product characteristics; and 

4 ‘‘(B) the quantities of dairy commodities 

5 sold. 

6 ‘‘(2) PUBLICATION.—The Secretary shall make 

7 the information reported under paragraph (1) avail8 able to the public on the first reporting day of the 

9 each week, not later than 10:00 a.m. Central Time, 

10 categorized by location and product characteristics. 

11 ‘‘(3) FEDERAL ORDER PRICES.—The Secretary 

12 shall use weekly prices published under paragraph 

13 (2) to calculate Federal milk marketing order prices. 

14 ‘‘(c) MONTHLY REPORTING.— 

15 ‘‘(1) IN GENERAL.—The corporate officers or 

16 officially–designated representatives of each dairy 

17 processor shall report to the Secretary, on the first 

18 reporting day of each month, not later than 9:00 

19 a.m. Central Time, the quantity of all dairy com20 modities processed by the dairy processor during the 

21 prior month. 

22 ‘‘(2) PUBLICATION.—The Secretary shall make 

23 the information reported under paragraph (1) avail24 able to the public on the first reporting day of the 

24 

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1 each month, not later than 10:00 a.m. Central Time, 

2 categorized by location and product characteristics.’’. 

3 TITLE II—CONSERVATION 

4 Subtitle A—Conservation Security 

5 SEC. 2001. SENSE OF CONGRESS REGARDING THE CON6 SERVATION SECURITY PROGRAM. 

7 It is the sense of Congress that the conservation secu8 rity program established under subchapter A of chapter 

9 2 of subtitle D of title XII of the Food Security Act of 

10 1985 (16 U.S.C. 3838 et seq.) should— 

11 (1) be fully funded and implemented on a na12 tionwide basis; 

13 (2) have simplified and streamlined payments 

14 and eligibility requirements to increase transparency, 

15 clarity, and ease of use by producers; 

16 (3) create a better balance between rewards for 

17 current stewardship and incentives for new conserva18 tion; 

19 (4) emphasize payments based on management 

20 intensity (the level of treatment) and the breadth of 

21 resource concerns addressed; 

22 (5) reward producers for addressing the most 

23 important resources of concern as determined by 

24 States; 

25 

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1 (6) provide greater flexibility to States and 

2 State technical committees to determine and rank 

3 priority resource concerns; 

4 (7) provide adequate technical assistance to en5 sure that there is the capacity to enroll participants, 

6 provide on-site assessment and planning, and to fa7 cilitate timely contract renewals and modifications; 

8 (8) provide a predictable and reliable stream of 

9 revenue based on environmental measures; 

10 (9) be universally available and adaptable to all 

11 types of farm operations in all regions of the coun12 try; 

13 (10) have expanded eligibility to include non-in14 dustrial private forested land, whether or not the 

15 land is incidental to an agricultural operation; 

16 (11) provide a minimum annual base payment; 

17 (12) be coordinated with other working land 

18 conservation programs of the Natural Resources 

19 Conservation Service; 

20 (13) encourage payments based on carbon se21 questration; 

22 (14) encourage environmentally-sound methods 

23 and practices for the production of sustainable cel24 lulosic bioenergy feedstocks; and 

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1 (15) ensure dual eligibility for certified organic 

2 farms in accordance with the amendments made by 

3 section 2002. 

4 SEC. 2002. DUAL ELIGIBILITY FOR CERTIFIED ORGANIC 

5 FARMS. 

6 Section 1238C of the Food Security Act of 1985 (16 

7 U.S.C. 3838c) is amended by adding at the end the fol8 lowing: 

9 ‘‘(h) DUAL ELIGIBILITY FOR CERTIFIED ORGANIC

10 FARMS.— 

11 ‘‘(1) IN GENERAL.—Not later than 60 days 

12 after the date of enactment of this subsection, the 

13 Secretary shall establish a clear, producer-friendly 

14 means by which producers may simultaneously— 

15 ‘‘(A) certify eligibility under the national 

16 organic program established under the Organic 

17 Foods Production Act of 1990 (7 U.S.C. 6501 

18 et seq.) (referred to in this subsection as the 

19 ‘national organic program’); and 

20 ‘‘(B) be determined eligible for enrollment 

21 in the conservation security program. 

22 ‘‘(2) CONTINUOUS ENROLLMENT.—The Sec23 retary shall allow any producer that is certified as 

24 organic under the national organic program to autoVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
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1 matically enroll in the conservation security pro2 gram. 

3 ‘‘(3) PRIORITY.—If the Secretary establishes a 

4 system to select participants to enroll in the con5 servation security program from among eligible ap6 plicants, the Secretary shall give priority, within any 

7 class or category of potential participants, to pro8 ducers certified under the national organic pro9 gram.’’. 

10 SEC. 2003. COMPREHENSIVE CONSERVATION ENHANCE11 MENT PROGRAM. 

12 Section 1230(a)(1) of the Food Security Act of 1985 

13 (16 U.S.C. 3830(a)(1)) is amended by striking ‘‘2002’’ 

14 and inserting ‘‘2013’’. 

15 SEC. 2004. CONSERVATION SECURITY PROGRAM. 

16 (a) IN GENERAL.—Section 1238A(a) of the Food Se17 curity Act of 1985 (16 U.S.C. 3838a(a)) is amended by 

18 striking ‘‘2011’’ and inserting ‘‘2013’’. 

19 (b) TECHNICAL ASSISTANCE.—Section 1238C(g) of 

20 the Food Security Act of 1985 (16 U.S.C. 3838c(g)) is 

21 amended by striking ‘‘2007’’ and inserting ‘‘2013’’. 

28 

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1 Subtitle B—Conservation Reserve 

2 SEC. 2011. CONSERVATION RESERVE PROGRAM. 

3 (a) IN GENERAL.—Section 1231(a) of the Food Se4 curity Act of 1985 (16 U.S.C. 3831(a)) is amended by 

5 striking ‘‘2007’’ and inserting ‘‘2013’’. 

6 (b) ELIGIBLE LAND.—Section 1231(b) of the Food 

7 Security Act of 1985 (16 U.S.C. 3831(b)) is amended— 

8 (1) in paragraph (1), by striking the period at 

9 the end and inserting a semicolon; 

10 (2) in paragraph (4)— 

11 (A) in subparagraph (C), by striking ‘‘or’’ 

12 at the end; and 

13 (B) in subparagraph (D), by striking 

14 ‘‘and’’ and inserting ‘‘or’’; 

15 (3) in paragraph (5), by striking the period at 

16 the end and inserting a ‘‘; or’’; and 

17 (4) by adding at the end the following: 

18 ‘‘(6) marginal pasture land or hay land that is 

19 otherwise ineligible, if the Secretary determines that 

20 the land— 

21 ‘‘(A) is to be devoted to native vegetation 

22 appropriate to the locale; and 

23 ‘‘(B)(i) will provide suitable habitat for a 

24 State or federally listed threatened or endan25 gered species or a species determined by the 

29 

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1 Secretary of the Interior to be species of con2 cern; or 

3 ‘‘(ii) will contribute to the restoration of a 

4 critically endangered ecosystem or endangered 

5 ecosystem, as defined by the Secretary.’’. 

6 (c) MAXIMUM ENROLLMENT.—Section 1231(d) of 

7 the Food Security Act of 1985 (16 U.S.C. 3831(d)) is 

8 amended— 

9 (1) by striking ‘‘The Secretary’’ and inserting 

10 the following: 

11 ‘‘(1) IN GENERAL.—The Secretary’’; 

12 (2) in paragraph (1) (as designated by para13 graph (1)), by striking ‘‘2007’’ and inserting 

14 ‘‘2013’’; and 

15 (3) by adding at the end the following: 

16 ‘‘(2) ENROLLMENT GOALS.—For the period be17 ginning on the date of enactment of this paragraph 

18 and ending on December 31, 2013, the Secretary 

19 shall establish a goal to enroll not less than 

20 7,000,000 acres of eligible land through the contin21 uous enrollment program and the conservation re22 serve enhancement program. 

23 ‘‘(3) GENERAL SIGNUP.— 

24 ‘‘(A) IN GENERAL.—To the maximum ex25 tent practicable, the Secretary shall ensure that 

30 

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1 not more than 80 percent of the acres main2 tained in the conservation reserve at any 1 time 

3 during the 2008 through 2013 calendar years 

4 are acres that were enrolled through a general 

5 signup under section 1234(c)(2)(A). 

6 ‘‘(B) REQUIREMENTS.—For an offer to be 

7 accepted into the conservation reserve under the 

8 general signup, the Secretary shall require an 

9 offer to have an environmental benefit index 

10 score at or above a threshold that is 15 percent 

11 higher than the average of the thresholds used 

12 in general signups during fiscal years 1996 

13 through 2006, adjusted for changes in the index 

14 over those fiscal years.’’. 

15 (d) DURATION OF CONTRACT.—Section 1231(e)(3) 

16 of the Food Security Act of 1985 (16 U.S.C. 3831(e)(3)) 

17 is amended by striking by striking ‘‘2002’’ and inserting 

18 ‘‘2008’’. 

19 (e) EARLY TERMINATION OPTION FOR BIOENERGY

20 PRODUCTION.—Section 1231(e) of the Food Security Act 

21 of 1985 (16 U.S.C. 3831(e)) is amended by adding at the 

22 end the following: 

23 ‘‘(4) EARLY TERMINATION OPTION FOR BIO24 ENERGY PRODUCTION.— 

31 

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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the Secretary shall offer to pro3 ducers applying for entry into the conservation 

4 reserve through the general signup under sec5 tion 1234(c)(2)(A), the option of including a 

6 contract provision to allow the affected acreage 

7 to exit from the conservation reserve at any 

8 time after an initial period of 3 years but prior 

9 to completing a full contract term in order to 

10 produce a sustainable cellulosic bioenergy crop 

11 on the affected acres. 

12 ‘‘(B) ELIGIBLE LAND.—Land eligible for 

13 the early termination option described in sub14 paragraph (A) is land that— 

15 ‘‘(i) has an erodibility index value of 

16 less than 15; and 

17 ‘‘(ii) is otherwise eligible for enroll18 ment in the conservation reserve (other 

19 than land that is to be enrolled under the 

20 continuous signup or the conservation re21 serve enhancement program under section 

22 1234(c)(2)(B)). 

23 ‘‘(C) RESTRICTION.—As a condition of en24 tering into a conservation reserve contract with 

25 an early termination option, if a producer with 

32 

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1 the option elects to exercise the option, the pro2 ducer shall be required to restrict any agricul3 tural production during the remaining term 

4 that the affected acres would have had under 

5 the contract to the production of a sustainable 

6 cellulosic bioenergy crop on the land. 

7 ‘‘(D) PAYMENT REDUCTION.—If a pro8 ducer elects to have the early termination op9 tion included in the conservation reserve con10 tract, the Secretary shall reduce the annual 

11 rental payment otherwise payable for the con12 tract to be paid on those acres during the time 

13 of enrollment. 

14 ‘‘(E) CONTRACT TERMINATION.—If a pro15 ducer exercises the early termination option to 

16 have the affected acreage leave the reserve in 

17 order to produce a sustainable cellulosic bio18 energy crop, the Secretary shall terminate the 

19 conservation reserve contract and cease making 

20 any payment to the producer for the affected 

21 acres.’’. 

22 (f) PILOT PROGRAM FOR ENROLLMENT OF WET23 LAND AND BUFFER ACREAGE IN CONSERVATION RE24 SERVE.—Section 1231(h)(1)(A) of the Food Security Act 

33 

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1 of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking 

2 ‘‘2007’’ and inserting ‘‘2013’’. 

3 (g) BALANCE OF NATURAL RESOURCE PURPOSES.— 

4 Section 1231(j) of the Food Security Act of 1985 (16 

5 U.S.C. 3831(j)) is amended— 

6 (1) by striking ‘‘In determining’’ and inserting 

7 the following: 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 in determining’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(2) EQUITABLE BALANCE ACROSS ALL CON12 TRACTS.—In balancing purposes under paragraph 

13 (1), the Secretary is not required to balance all con14 servation purposes with respect to each individual 

15 contract offer. 

16 ‘‘(3) WILDLIFE.—In considering the extent to 

17 which a contract offer would achieve the conserva18 tion purposes of the conservation reserve program 

19 relating to wildlife habitat, the Secretary shall con20 sider the extent to which the contract offer would— 

21 ‘‘(A) contribute to increased populations of 

22 wildlife, including waterfowl, nongame grass23 land birds, and neotropical migrants; and 

24 ‘‘(B) assist in the recovery of at-risk spe25 cies.’’. 

34 

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1 (h) DUTIES OF OWNERS AND OPERATORS.—Section 

2 1232(a) of the Food Security Act of 1985 (16 U.S.C. 

3 3832(a)) is amended— 

4 (1) in paragraph (4)— 

5 (A) by redesignating subparagraphs (A) 

6 and (B) as subparagraphs (B) and (C), respec7 tively; and 

8 (B) by inserting before subparagraph (B) 

9 (as redesignated by subparagraph (A)), the fol10 lowing: 

11 ‘‘(A) approved vegetative cover shall not 

12 include vegetative cover inappropriate to the lo13 cale;’’. 

14 (2) by redesignating paragraphs (5) through 

15 (10) as paragraphs (6) through (11); respectively; 

16 (3) by inserting after paragraph (4) the fol17 lowing: 

18 ‘‘(5) to undertake appropriate management ac19 tivities on the land as needed throughout the term 

20 of the contract to achieve the purposes of the con21 servation reserve program;’’; and 

22 (4) in paragraph (8)(A)(i)(II) (as redesignated 

23 by paragraph (2)), by inserting before the semicolon 

24 at the end ‘‘, taking into account grassland types 

25 and species, location, weather conditions, and other 

35 

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1 factors that determine to what extent harvesting and 

2 grazing activities would advance the conservation 

3 purposes of the program’’. 

4 (i) CONSERVATION PLANS.—Section 1232(b)(1) of 

5 the Food Security Act of 1985 (16 U.S.C. 3832(b)(1)) 

6 is amended— 

7 (1) in subparagraph (A), by striking ‘‘; and’’ 

8 and inserting ‘‘, including appropriate management 

9 activities required by subsection (a)(5);’’ and 

10 (2) by adding at the end the following: 

11 ‘‘(C) criteria for conducting any commer12 cial use to be permitted, including criteria for 

13 managed harvesting and grazing that specifies 

14 frequency, timing, number of animal units, per15 centage of field, and other criteria to ensure 

16 that managed harvesting and grazing advances 

17 the conservation purposes of the conservation 

18 reserve program; and’’. 

19 (j) COST-SHARE AND MANAGEMENT ASSISTANCE.— 

20 Section 1234(b) of the Food Security Act of 1985 (16 

21 U.S.C. 3834(b)) is amended by adding at the end the fol22 lowing: 

23 ‘‘(6) MANAGEMENT COSTS.—The Secretary 

24 shall pay 75 percent of the cost of management ac25 tivities, including control of invasive species, reVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
36 

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1 quired under a contract entered into under this sub2 chapter, subject to such limits as the Secretary may 

3 establish.’’. 

4 (k) ACCEPTANCE OF CONTRACT OFFERS.—Section 

5 1234(c)(3) of the Food Security Act of 1985 (16 U.S.C. 

6 3834(c)(3)) is amended— 

7 (1) by striking ‘‘In determining’’ and all that 

8 follows through ‘‘take into consideration’’ in sub9 paragraph (A) and inserting the following: 

10 ‘‘(A) IN GENERAL.—In determining the ac11 ceptability of contract offers, the Secretary shall 

12 take into consideration’’; 

13 (2) by striking ‘‘benefits; and’’ and all that fol14 lows through ‘‘establish’’ in subparagraph (B) and 

15 inserting the following: ‘‘benefits. 

16 ‘‘(B) MAXIMIZING ENVIRONMENTAL BENE17 FITS.—The Secretary shall establish criteria for 

18 the acceptance of contract offers that would 

19 maximize environmental benefits, including cri20 teria relating to the characteristics of the land 

21 that is the subject of the contract offer, its loca22 tion, proposed cover and proposed management 

23 practices. 

24 ‘‘(C) FLEXIBILITY.—The Secretary may 

25 establish’’; 

37 

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1 (3) in subparagraph (C) (as redesignated by 

2 paragraph (2)), by striking ‘‘abated’’ and inserting 

3 ‘‘abated, in order to more effectively address specific 

4 State or regional resource concerns and conservation 

5 priorities’’; and 

6 (4) by adding at the end the following: 

7 ‘‘(D) RELATIONSHIP TO OTHER CON8 SERVATION PROGRAMS.—In the enrollment of 

9 land in the conservation reserve established 

10 under this subchapter, the Secretary shall give 

11 priority to land that would not produce com12 parable environmental benefits if the land 

13 were— 

14 ‘‘(i) maintained in agricultural pro15 duction; and 

16 ‘‘(ii) enrolled in the environmental 

17 quality incentives program established 

18 under chapter 4 of subtitle D or other pro19 gram designed to assist producers in im20 proving the environmental performance of 

21 working agricultural land.’’. 

22 (l) CONSERVATION RESERVE ENHANCEMENT PRO23 GRAM.—Section 1234(f)(1) of the Food Security Act of 

24 1985 (16 U.S.C. 3834(f)(1)) is amended— 

38 

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1 (1) by striking ‘‘(1)’’ and all that follows 

2 through ‘‘The total’’ and inserting the following: 

3 ‘‘(1) AMOUNT.— 

4 ‘‘(A) IN GENERAL.—Except as provided in 

5 subparagraph (B), the total’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(B) EXCEPTION.—The Secretary may 

8 waive subparagraph (A) for persons partici9 pating in a conservation reserve enhancement 

10 program if the Secretary determines that a 

11 waiver is necessary to achieve the objectives of 

12 the conservation reserve enhancement pro13 gram.’’. 

14 Subtitle C—Wetlands Reserve 

15 Program 

16 SEC. 2021. WETLANDS RESERVE PROGRAM. 

17 (a) IN GENERAL.—Section 1237(c) of the Food Secu18 rity Act of 1985 (16 U.S.C. 3837(c)) is amended by strik19 ing ‘‘2007’’ and inserting ‘‘2013’’. 

20 (b) MAXIMUM ENROLLMENT.—Section 1237(b)(1) of 

21 the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) 

22 is amended by striking ‘‘2,275,000 acres’’ and inserting 

23 ‘‘5,000,000 acres’’. 

24 (c) WETLAND EASEMENT CONSERVATION PLAN.— 

25 Section 1237A(b)(3) of the Food Security Act of 1985(16 

39 

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1 U.S.C. 3837a(b)(3)) is amended by inserting before the 

2 semicolon at the end the following: ‘‘and activities nec3 essary to maintain hydrologic, habitat, and other func4 tional values of the wetlands’’. 

5 (d) COST-SHARE AND MANAGEMENT ASSISTANCE.— 

6 Section 1237C of the Food Security Act of 1985 (16 

7 U.S.C. 3837c) is amended— 

8 (1) in subsection (a)(1), by inserting ‘‘including 

9 necessary hydrologic and habitat maintenance activi10 ties,’’ after ‘‘values,’’; and 

11 (2) in subsection (b), by adding at the end the 

12 following: 

13 ‘‘(4) MANAGEMENT COSTS.—The Secretary 

14 may make payments to owners in an amount of up 

15 to the full actual cost of undertaking any ongoing or 

16 periodic management activities necessary to main17 tain the functional values of wetland enrolled in the 

18 wetlands reserve program.’’. 

19 Subtitle D—Environmental Quality 

20 Incentives 

21 SEC. 2031. ENVIRONMENTAL QUALITY INCENTIVES PRO22 GRAM. 

23 (a) PURPOSES.—Section 1240 of the Food Security 

24 Act of 1985 (16 U.S.C. 3839aa) is amended— 

40 

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1 (1) in paragraph (2), by inserting ‘‘, conserving 

2 energy,’’ after ‘‘resources’’; and 

3 (2) in paragraph (3), by inserting ‘‘and con4 serve energy,’’ after ‘‘wildlife’’. 

5 (b) EXTENSION.—Section 1240B(a)(1) of the Food 

6 Security Act of 1985 (16 U.S.C. 3839aa–2(a)(1)) is 

7 amended by striking ‘‘2010’’ and inserting ‘‘2013’’. 

8 (c) BIDDING DOWN.—Section 1240B of the Food Se9 curity Act of 1985 (16 U.S.C. 3839aa–2) is amended by 

10 striking subsection (c) and inserting the following: 

11 ‘‘(c) BIDDING DOWN.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall not as13 sign a higher priority to any application because the 

14 applicant is willing to accept a lower cost-share or 

15 incentive payment than the applicant would other16 wise be entitled to receive. 

17 ‘‘(2) COST-EFFECTIVENESS.—Nothing in this 

18 subsection relieves the Secretary of the obligation, 

19 when evaluating applications for cost-share pay20 ments and incentive payments— 

21 ‘‘(A) to evaluate the cost-effectiveness of 

22 the proposed conservation practices, systems, 

23 and approaches described in the applications; 

24 and 

41 

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1 ‘‘(B) to prioritize the most cost-effective 

2 applications in accordance with section 

3 1240C(1).’’. 

4 (d) COST-SHARE PAYMENT EXCEPTION.—Section 

5 1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 

6 3839aa–2(d)(2)) is amended by striking subparagraph (A) 

7 and inserting the following: 

8 ‘‘(A) LIMITED RESOURCE AND BEGINNING

9 FARMERS.— 

10 ‘‘(i) IN GENERAL.—Subject to clause 

11 (ii), the Secretary may increase the 

12 amount provided to a producer under para13 graph (1) to not more than 90 percent if 

14 the producer is a limited resource or begin15 ning farmer or rancher, as determined by 

16 the Secretary. 

17 ‘‘(ii) LIMITATION.—A cost-share pay18 ment under this paragraph shall not be 

19 less than 115 percent of the amount of the 

20 payment that the Secretary may determine 

21 under paragraph (1).’’. 

22 (e) ALLOCATION OF FUNDING.—Section 1240B(g) of 

23 the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) 

24 is amended by striking ‘‘2007’’ and inserting ‘‘2013’’. 

42 

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1 (f) EVALUATION OF APPLICATIONS FOR COST-SHARE

2 PAYMENTS AND INCENTIVE PAYMENTS.—Section 1240C 

3 of the Food Security Act of 1985 (16 U.S.C. 3839aa–3) 

4 is amended to read as follows: 

5 ‘‘SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST6 SHARE PAYMENTS AND INCENTIVE PAY7 MENTS. 

8 ‘‘In evaluating applications for cost-share payments 

9 and incentive payments, the Secretary shall— 

10 ‘‘(1) prioritize applications based on the overall 

11 level of cost-effectiveness of the applications to en12 sure, to the maximum extent practicable, that the 

13 proposed conservation practices, systems, and ap14 proaches are the most efficient means of achieving 

15 the anticipated environmental benefits of the project; 

16 ‘‘(2) prioritize applications based on how effec17 tively and comprehensively the projects address the 

18 1 or more designated resource concerns; 

19 ‘‘(3) reward higher levels of environmental per20 formance, such as advanced levels of management 

21 within land management practices; 

22 ‘‘(4) develop criteria for evaluating applications 

23 that will ensure that national, State, and local con24 servation priorities are effectively addressed; and 

43 

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1 ‘‘(5) prioritize applications that will improve en2 vironmental performance on existing operations.’’. 

3 (g) CONSERVATION INNOVATION GRANTS.—Section 

4 1240H of the Food Security Act of 1985 (16 U.S.C. 

5 3839aa–8) is amended— 

6 (1) in subsection (a), by striking ‘‘may’’ and in7 serting ‘‘shall’’; 

8 (2) in subsection (b)— 

9 (A) in the matter before paragraph (1), by 

10 striking ‘‘may’’ and inserting ‘‘shall’’; 

11 (B) in paragraph (2)— 

12 (i) in subparagraph (A), by striking 

13 ‘‘and’’ at the end; and 

14 (ii) by adding at the end the fol15 lowing: 

16 ‘‘(C) methane digester research; and’’. 

17 (C) in paragraph (3), by striking the pe18 riod at the end and inserting ‘‘; and’’; and 

19 (D) by adding at the end the following: 

20 ‘‘(4) include a plan for technology transfer.’’; 

21 and 

22 (3) by adding at the end the following: 

23 ‘‘(d) TECHNOLOGY TRANSFER.—To the maximum 

24 extent practicable, the Secretary shall ensure efficient, ef25 fective transfer of innovative technologies and approaches 

44 

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1 demonstrated through projects that receive funding under 

2 this section. 

3 ‘‘(e) FUNDING.—In addition to amounts made avail4 able under section 1241(a)(6) to carry out this chapter, 

5 the Secretary shall use to carry out this section, of funds 

6 of the Commodity Credit Corporation— 

7 ‘‘(1) $40,000,000 for fiscal year 2008; 

8 ‘‘(2) $50,000,000 for fiscal year 2009; 

9 ‘‘(3) $60,000,000 for fiscal year 2010; and 

10 ‘‘(4) $75,000,000 for each of fiscal years 2011 

11 through 2013.’’. 

12 (h) GROUND AND SURFACE WATER CONSERVA13 TION.—Section 1240I(c)(1)(C)) of the Food Security Act 

14 of 1985 (16 U.S.C. 3839aa–9(c)(1)(C)) is amended by 

15 striking ‘‘2007’’ and inserting ‘‘2013’’. 

16 (i) PERFORMANCE INCENTIVES FOR STATES.—Chap17 ter 4 of subtitle D of title XII of the Food Security Act 

18 of 1985 (16 U.S.C. 3839aa et seq.) is amended by adding 

19 at the end the following: 

20 ‘‘SEC. 1240J. PERFORMANCE INCENTIVES FOR STATES. 

21 ‘‘(a) HIGH LEVEL OF PERFORMANCE BONUS.—For 

22 each of fiscal years 2008 through 2013, 10 percent of the 

23 funds made available to carry out this chapter shall be 

24 reserved by the Secretary for bonus allocations to States 

25 that demonstrate a high level of performance in impleVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
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1 menting the environmental quality incentives program, as 

2 determined by the Secretary in accordance with subsection 

3 (b). 

4 ‘‘(b) SPECIAL CONSIDERATIONS.—In evaluating 

5 State performance under subsection (a), the Secretary 

6 shall reward States that— 

7 ‘‘(1) consistently meet the requirements of sec8 tion 1240C in evaluating offers and payments; 

9 ‘‘(2) dedicate a portion of the annual environ10 mental quality incentives program allocation of the 

11 States to multiproducer cooperative efforts to ad12 dress specific resource concerns; 

13 ‘‘(3) collaborate with other Federal and State 

14 agencies, local governments, educational institutions, 

15 and for-profit and nonprofit organizations to mon16 itor and evaluate the environmental outcomes associ17 ated with implementation of the environmental qual18 ity incentives program; 

19 ‘‘(4) demonstrate effective and efficient pro20 gram delivery, including the provision of adequate 

21 technical assistance to all program participants 

22 through— 

23 ‘‘(A) appropriate staffing; and 

24 ‘‘(B) cooperation with other Federal, 

25 State, tribal, and local agencies, for-profit and 

46 

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1 nonprofit organizations, and individuals with 

2 demonstrated expertise in the planning and im3 plementation of conservation practices, systems, 

4 and approaches; 

5 ‘‘(5) support and encourage innovative ap6 proaches to addressing resource concerns; 

7 ‘‘(6) effectively leverage Federal funding with 

8 local and State matching funds; and 

9 ‘‘(7) demonstrate effective outreach and innova10 tive approaches to reaching and serving beginning 

11 farmers and ranchers, limited-resource producers, 

12 and operators with lower rates of historical partici13 pation in Federal farm and conservation programs.’’. 

14 Subtitle E—Farmland Protection 

15 Program 

16 SEC. 2041. FARMLAND PROTECTION PROGRAM. 

17 (a) DEFINITIONS.—Section 1238H of the Food Secu18 rity Act of 1985 (16 U.S.C. 3838h) is amended— 

19 (1) by striking paragraph (2) and inserting the 

20 following: 

21 ‘‘(2) ELIGIBLE LAND.— 

22 ‘‘(A) IN GENERAL.—The term ‘eligible 

23 land’ means land on a farm or ranch that is— 

24 ‘‘(i) cropland; 

25 ‘‘(ii) rangeland; 

47 

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1 ‘‘(iii) grassland; 

2 ‘‘(iv) pasture land; or 

3 ‘‘(v) forest land that is an incidental 

4 part of an agricultural operation, as deter5 mined by the Secretary.’’; 

6 (2) by redesignating paragraph (4) as para7 graph (5); 

8 (3) by inserting after paragraph (3) the fol9 lowing: 

10 ‘‘(4) PERMANENT CONSERVATION EASEMENT.— 

11 The term ‘permanent conservation easement’ means 

12 a conservation easement or other interest in eligible 

13 land that— 

14 ‘‘(A) is for the primary purpose of pro15 tecting the agricultural production capacity of 

16 the eligible land; and 

17 ‘‘(B) is permanent or for the maximum du18 ration allowed under State law.’’; and 

19 (4) by adding at the end the following: 

20 ‘‘(6) QUALIFIED STATE OR LOCAL ENTITY.— 

21 The term ‘qualified State or local entity’ means a 

22 public or private entity that— 

23 ‘‘(A) operates a farm and ranch land pro24 tection program that— 

48 

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1 ‘‘(i) has for at least 3 calendar or fis2 cal years used or provided public or private 

3 funds to purchase permanent conservation 

4 easements on not less than 10 farms or 

5 ranches; 

6 ‘‘(ii) has the necessary authority 

7 under State law, as well as the technical 

8 and financial capacity and natural re9 sources— 

10 ‘‘(I) to monitor and enforce the 

11 terms of the permanent conservation 

12 easements so that the purpose of the 

13 permanent conservation easements is 

14 carried out for the maximum allow15 able duration; or 

16 ‘‘(II) in the case of a govern17 mental entity, to require other public 

18 or private holders of the permanent 

19 conservation easements acquired with 

20 public funding to hold, monitor, and 

21 enforce in perpetuity the permanent 

22 conservation easements for the pur23 pose described in subclause (I); and 

24 ‘‘(iii) has financial control policies to 

25 ensure that, on average, the purchase price 

49 

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1 of the permanent conservation easements 

2 does not exceed the appraised fair market 

3 value of the permanent conservation ease4 ments; and 

5 ‘‘(B) is an eligible entity.’’. 

6 (b) FARMLAND PROTECTION.—Section 1238I of the 

7 Food Security Act of 1985 (16 U.S.C. 3838i) is amend8 ed— 

9 (1) by redesignating subsections (b) and (c) as 

10 subsections (e) and (f), respectively; 

11 (2) by striking subsection (a) and inserting the 

12 following: 

13 ‘‘(a) PROGRAM.— 

14 ‘‘(1) IN GENERAL.—The Secretary, acting 

15 through the Natural Resources Conservation Service, 

16 shall carry out a farm and ranch land protection 

17 program under which the Secretary shall facilitate 

18 and provide funding for the purchase of conservation 

19 easements or other interests in eligible land for the 

20 purpose of protecting the agricultural production ca21 pacity and natural resources of the land by limiting 

22 incompatible nonagricultural uses of the land. 

23 ‘‘(2) PRIORITY.—In carrying out the program, 

24 the Secretary shall give the highest priority to pro25 tecting farm and ranch land with prime, unique, or 

50 

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1 other productive soils that are at risk of non2 agricultural development. 

3 ‘‘(b) GRANTS.— 

4 ‘‘(1) IN GENERAL.—The Secretary, acting 

5 through the Natural Resources Conservation Service, 

6 shall use funds made available to carry out this sub7 chapter to award grants to qualified State or local 

8 entities for the purchase of conservation easements 

9 and other interests in land. 

10 ‘‘(2) DISTRIBUTION.—The Secretary shall dis11 tribute grants described in paragraph (1) among 

12 States based on— 

13 ‘‘(A) the demonstrated need for farm and 

14 ranch land protection; and 

15 ‘‘(B) the relative contribution of funds pro16 vided by State or local entities for the protec17 tion of farm and ranch land. 

18 ‘‘(3) USE OF GRANTS.—A qualified State or 

19 local entity that receives a grant under this sub20 section— 

21 ‘‘(A) may use the grant funds to purchase 

22 1 or more conservation easements, regardless of 

23 whether the qualified State or local entity has 

24 a pending purchase offer for any of the conVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
51 

•S 1424 IS

1 versation easements at the time of receiving the 

2 grant; 

3 ‘‘(B) shall use the grant funds only for the 

4 purchase of conservation easements and other 

5 interests in land; and 

6 ‘‘(C) may use up to 10 percent of the 

7 amount of the grant for reasonable costs of 

8 purchasing and enforcing conservation ease9 ments and other interests in land. 

10 ‘‘(4) REMAINING FUNDS.—Any funds remaining 

11 after grants are distributed to qualified State or 

12 local entities shall be available to other eligible enti13 ties as matching funds for individual purchases of 

14 conservation easements and other interests in land. 

15 ‘‘(c) GRANT AGREEMENTS.— 

16 ‘‘(1) IN GENERAL.—The Secretary, acting 

17 through the Natural Resources Conservation Service, 

18 may enter into agreements with qualified State or 

19 local entities, under which a State or local entity 

20 may purchase conservation easements using a com21 bination of the funds of the entity and grant funds 

22 made available by the Secretary under subsection 

23 (b). 

24 ‘‘(2) TERMS AND CONDITIONS.— 

52 

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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), an agreement described in para3 graph (1) shall stipulate the terms and condi4 tions under which qualified State or local enti5 ties shall use grant funds distributed by the 

6 Secretary under subsection (b). 

7 ‘‘(B) REQUIREMENTS.—Each agreement 

8 shall, in accordance with the purposes of the 

9 program under this section— 

10 ‘‘(i) authorize the State or local entity 

11 to determine the criteria and priorities of 

12 the entity for purchasing conservation 

13 easements and other interests in land; 

14 ‘‘(ii) authorize the State or local enti15 ty to establish terms and conditions for 

16 conservation easements and other pur17 chases of interests in land, if— 

18 ‘‘(I) such terms and conditions 

19 are adequate under State law to 

20 achieve and permit effective enforce21 ment of the conservation purposes of 

22 the conservation easements or other 

23 interests; and 

24 ‘‘(II) the State or local entity in25 cludes a requirement regarding the 

53 

•S 1424 IS

1 impervious surfaces to be allowed for 

2 any conservation easement or other 

3 interest in land purchased using grant 

4 funds provided under this section; 

5 ‘‘(iii) not require a Federal contingent 

6 right of enforcement or reversionary inter7 est in the conservation easement or other 

8 interest in land; and 

9 ‘‘(iv) allow qualified entities to use up 

10 to 10 percent of the amount of the grant 

11 for reasonable costs of purchasing and en12 forcing conservation easements and other 

13 interests in land. 

14 ‘‘(d) INDIVIDUAL PURCHASES.— 

15 ‘‘(1) IN GENERAL.—The Secretary may enter 

16 into agreements with eligible entities under which 

17 the Secretary shall provide matching funds to the el18 igible entities for the purpose of purchasing con19 servation easements or other interests in land on in20 dividual farm and ranch properties. 

21 ‘‘(2) REQUIREMENTS.—An agreement described 

22 in paragraph (1) shall— 

23 ‘‘(A) include such terms and conditions as 

24 the Secretary considers appropriate to ensure 

54 

•S 1424 IS

1 that the purposes of the farmland protection 

2 program are carried out; 

3 ‘‘(B) not require a Federal continent right 

4 of enforcement or reversionary interest in the 

5 conservation easement or other interest in land, 

6 if— 

7 ‘‘(i) the conservation easement or 

8 other interest in land is held by a State or 

9 local agency; or 

10 ‘‘(ii) a qualified State or local entity 

11 will hold a contingent right of enforcement 

12 in the conservation easement or other in13 terest in land.’’; 

14 (3) in subsection (e) (as redesignated by para15 graph (1))— 

16 (A) by striking ‘‘Any highly’’ and inserting 

17 the following: 

18 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

19 (c)(2)(B)(ii), subject to paragraph (2), any highly’’; 

20 and 

21 (B) by adding at the end the following: 

22 ‘‘(2) PERMANENT CONSERVATION EASE23 MENTS.—In the case of a permanent conservation 

24 easement, the Secretary may not require the conver25 sion of cropland to less intensive uses if, under the 

55 

•S 1424 IS

1 conservation plan, soil erosion can be reduced to ‘T’ 

2 or below.’’; and 

3 (4) in paragraph (1) of subsection (f) (as redes4 ignated by paragraph (1))— 

5 (A) in subparagraph (A), by striking ‘‘sec6 tion 1241(d)’’ and inserting ‘‘1241(a)(4)’’; 

7 (B) by striking ‘‘shall not exceed 50 per8 cent’’ and inserting the following: ‘‘shall not ex9 ceed— 

10 ‘‘(i) 50 percent’’; 

11 (C) by striking the period at the end and 

12 inserting ‘‘; or’’; and 

13 (D) by adding at the end the following: 

14 ‘‘(ii) if a qualified conservation con15 tribution, as defined by section 170(h) of 

16 the Internal Revenue Code of 1986, of at 

17 least 25 percent of the market value is 

18 made by the landowner in connection with 

19 the purchase of a conservation easement or 

other interest in land, 2 20 ⁄3 of the actual cost 

21 of purchasing the conservation easement or 

22 other interest in land.’’. 

23 SEC. 2042. DEBT FOR AGRICULTURAL EASEMENTS. 

24 Subchapter B of chapter 2 of subtitle D of title XII 

25 of the Food Security Act of 1985 is amended— 

56 

•S 1424 IS

1 (1) by redesignating section 1238J (16 U.S.C. 

2 3838j) as 1238K; and 

3 (2) by inserting after section 1238I (16 U.S.C. 

4 3838i) the following: 

5 ‘‘SEC. 1238J. DEBT FOR AGRICULTURAL EASEMENTS. 

6 ‘‘(a) DEFINITIONS.—In this section: 

7 ‘‘(1) CONSERVATION PURPOSES.—The term 

8 ‘conservation purposes’ means the permanent protec9 tion of agricultural land for continued agricultural 

10 use. 

11 ‘‘(2) GOVERNMENTAL ENTITY.—The term ‘gov12 ernmental entity’ means any Federal agency, a State 

13 or State agency, or a unit of local government. 

14 ‘‘(3) RECREATIONAL PURPOSES.—The term 

15 ‘recreational purposes’ includes hunting. 

16 ‘‘(4) WILDLIFE.—The term ‘wildlife’ has the 

17 meaning given the term ‘fish or wildlife’ in section 

18 2 of the Lacey Act Amendments of 1981 (16 U.S.C. 

19 3371). 

20 ‘‘(b) CONTRACTS ON LOAN SECURITY PROP21 ERTIES.—Subject to subsection (c), the Secretary— 

22 ‘‘(1) may enter into a contract relating to real 

23 property for conservation purposes, recreational pur24 poses, or wildlife purposes; and 

57 

•S 1424 IS

1 ‘‘(2) shall offer to enter into a contract relating 

2 to real property for conservation purposes if— 

3 ‘‘(A) the property secures any delinquent 

4 loan made under any law administered by the 

5 Secretary and held by the Secretary; 

6 ‘‘(B) at least 50 percent of the property is 

7 prime or unique farmland or farmland of state8 wide importance, as determined by the Sec9 retary; and 

10 ‘‘(C) the property is reasonably likely to be 

11 developed for nonagricultural purposes in the 

12 absence of such a contract, as determined by 

13 the Secretary. 

14 ‘‘(c) LIMITATIONS.—The Secretary may enter into a 

15 contract described in subsection (b) if— 

16 ‘‘(1) the property is prime or unique farmland, 

17 farmland of statewide importance, wetland, upland, 

18 or highly erodible land; 

19 ‘‘(2) the property is determined by the Sec20 retary to be suitable for the purposes of the con21 tract; 

22 ‘‘(3) the property secures any loan made under 

23 any law administered by the Secretary and held by 

24 the Secretary; and 

58 

•S 1424 IS

1 ‘‘(4) the contract better enables a qualified bor2 rower to repay the loan in a timely manner, as de3 termined by the Secretary. 

4 ‘‘(d) TERMS AND CONDITIONS.—The terms and con5 ditions specified in each contract described in subsection 

6 (b) shall— 

7 ‘‘(1) specify the purposes for which the real 

8 property may be used; 

9 ‘‘(2) identify the conservation measures to be 

10 taken, and the 1 or more agricultural, recreational, 

11 or wildlife uses to be allowed, with respect to the 

12 real property; and 

13 ‘‘(3) require the owner of the property to per14 mit the Secretary, and any person or governmental 

15 entity designated by the Secretary, to have access to 

16 the real property for the purpose of monitoring com17 pliance with the contract. 

18 ‘‘(e) LOAN REDUCTION OR FORGIVENESS.— 

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

20 the Secretary may reduce or forgive the outstanding 

21 debt of a borrower— 

22 ‘‘(A) in the case of a borrower to whom the 

23 Secretary has made 1 or more outstanding 

24 loans under laws administered by the Secretary, 

25 by canceling that part of the aggregate amount 

59 

•S 1424 IS

1 of the outstanding loans that bears the same 

2 ratio to the aggregate amount as— 

3 ‘‘(i) the number of acres of the real 

4 property of the borrower that are subject 

5 to the contract; bears to 

6 ‘‘(ii) the aggregate number of acres 

7 securing the loans; or 

8 ‘‘(B) in any other case, by treating as pre9 paid that part of the principal amount of a new 

10 loan to the borrower issued and held by the 

11 Secretary under a law administered by the Sec12 retary that bears the same ratio to the principal 

13 amount as— 

14 ‘‘(i) the number of acres of the real 

15 property of the borrower that are subject 

16 to the contract; bears to 

17 ‘‘(ii) the aggregate number of acres 

18 securing the new loan. 

19 ‘‘(2) LIMITATION.—The amount canceled or 

20 treated as prepaid pursuant to paragraph (1) shall 

21 not exceed— 

22 ‘‘(A) in the case of a delinquent loan, the 

23 greater of— 

24 ‘‘(i) the value of the land for which 

25 the contract is entered into; or 

60 

•S 1424 IS

1 ‘‘(ii) the difference between— 

2 ‘‘(I) the amount of the out3 standing loan secured by the land; 

4 and 

5 ‘‘(II) the value of the land; 

6 ‘‘(B) in the case of a nondelinquent loan, 

7 33 percent of the amount of the loan secured 

8 by the land; or 

9 ‘‘(C) for any loan, the difference be10 tween— 

11 ‘‘(i) the fair market value of the land 

12 for which the contract is entered into; and 

13 ‘‘(ii)(I) any reductions required by the 

14 terms of the contract; and 

15 ‘‘(II) the fair market value of the land 

16 unrestricted by the contract. 

17 ‘‘(f) CONSULTATIONS WITH FISH AND WILDLIFE

18 SERVICE.—If the Secretary elects to use the authority 

19 provided by this section to enter into contracts for rec20 reational or wildlife purposes, the Secretary shall consult 

21 with the Secretary of the Interior to— 

22 ‘‘(1) select real property for which the Sec23 retary may enter into contracts for recreational or 

24 wildlife purposes under this section; 

61 

•S 1424 IS

1 ‘‘(2) formulate the terms and conditions of such 

2 contracts; and 

3 ‘‘(3) enforce the contracts. 

4 ‘‘(g) ENFORCEMENT.—The Secretary, and any per5 son or governmental entity designated by the Secretary, 

6 may enforce a contract entered into by the Secretary 

7 under this section.’’. 

8 SEC. 2043. FARMLAND PROTECTION POLICY ACT. 

9 (a) FINDINGS.—Section 1540(a) of the Farmland 

10 Protection Policy Act (7 U.S.C. 4201(a)) is amended— 

11 (1) by striking the section heading and all that 

12 follows through paragraph (3) and inserting the fol13 lowing: 

14 ‘‘SEC. 1540. FINDINGS, PURPOSES, AND DEFINITIONS. 

15 ‘‘(a) FINDINGS.—Congress finds that— 

16 ‘‘(1) the farmland of the United States is a 

17 unique and irreplaceable natural resource critical to 

18 the national security of the United States, that pro19 vides food, fiber, and renewable energy necessary for 

20 the continued welfare of the people of the United 

21 States; 

22 ‘‘(2) each year, a large quantity of United 

23 States farmland is unnecessarily and irrevocably 

24 converted from actual or potential agricultural use 

25 to nonagricultural use; 

62 

•S 1424 IS

1 ‘‘(3) continued conversion of the United States 

2 farmland base to nonagricultural uses may threaten 

3 the ability of the United States to produce food, 

4 fiber, and renewable energy in sufficient quantities 

5 to meet domestic needs and the demands of export 

6 markets;’’; 

7 (2) in paragraph (5), by striking ‘‘would be pre8 ferred’’ and inserting ‘‘are feasible’’; 

9 (3) in paragraph (6), by striking ‘‘and’’ at the 

10 end; 

11 (4) in paragraph (7), by striking the period at 

12 the end and inserting ‘‘; and’’; and 

13 (5) by adding at the end the following: 

14 ‘‘(8) the Department of Agriculture and other 

15 Federal agencies should be required— 

16 ‘‘(A) to ensure that the actions of the Fed17 eral Government do not cause permanently-pro18 tected United States farmland to be irreversibly 

19 converted to nonagricultural uses in cases in 

20 which there are other feasible alternatives; and 

21 ‘‘(B) to mitigate the loss of any such farm22 land if no feasible alternative exists.’’. 

23 (b) PURPOSES AND DEFINITIONS.—Section 1540 of 

24 the Farmland Protection Policy Act (7 U.S.C. 4201) is 

63 

•S 1424 IS

1 amended by striking subsections (b) and (c) and inserting 

2 the following: 

3 ‘‘(b) PURPOSES.—The purposes of this subtitle are— 

4 ‘‘(1) to minimize the extent to which Federal 

5 programs contribute to the irreversible conversion of 

6 farmland to nonagricultural uses; and 

7 ‘‘(2) to the maximum extent practicable, ensure 

8 that Federal programs are administered in a manner 

9 that is compatible with State, local, and private pro10 grams and policies to protect farmland. 

11 ‘‘(c) DEFINITIONS.—In this subtitle: 

12 ‘‘(1) FARMLAND.—The term ‘farmland’ 

13 means— 

14 ‘‘(A) prime farmland; 

15 ‘‘(B) unique farmland; and 

16 ‘‘(C) farmland of statewide or local impor17 tance. 

18 ‘‘(2) FARMLAND OF STATEWIDE OR LOCAL IM19 PORTANCE.—The term ‘farmland of statewide or 

20 local importance’ means farmland, other than prime 

21 farmland or unique farmland, that— 

22 ‘‘(A) is of statewide or local importance for 

23 the production of food, feed, fiber, forage, oil24 seed, or energy crops, as determined by the apVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
64 

•S 1424 IS

1 propriate State or 1 or more agencies of a unit 

2 of local government; and 

3 ‘‘(B) the Secretary determines should be 

4 considered to be farmland for the purposes of 

5 this subtitle. 

6 ‘‘(3) FEDERAL PROGRAM.— 

7 ‘‘(A) IN GENERAL.—The term ‘Federal 

8 program’ means those activities or responsibil9 ities of a department, agency, independent com10 mission, or other unit of the Federal Govern11 ment that involve— 

12 ‘‘(i) undertaking, financing, or assist13 ing construction or improvement projects; 

14 or 

15 ‘‘(ii) acquiring, managing, or dis16 posing of Federal land and facilities. 

17 ‘‘(B) EXCLUSION.—The term ‘Federal pro18 gram’ does not include construction or improve19 ment projects that are, as of the effective date 

20 of this subtitle— 

21 ‘‘(i) beyond the planning stage; and 

22 ‘‘(ii) in the active design or construc23 tion stage. 

65 

•S 1424 IS

1 ‘‘(4) PERMANENTLY-PROTECTED FARMLAND.— 

2 The term ‘permanently-protected farmland’ means 

3 farmland that is— 

4 ‘‘(A) subject to a permanent easement for 

5 conservation purposes described in clause (i), 

6 (ii), or (iii) of section 170(h)(4)(A) of the Inter7 nal Revenue Code of 1986; 

8 ‘‘(B) held by the Federal Government or 

9 any State or local unit of government. 

10 ‘‘(5) PRIME FARMLAND.— 

11 ‘‘(A) IN GENERAL.—The term ‘prime 

12 farmland’ means land that has the best com13 bination of physical and chemical characteristics 

14 for producing food, feed, fiber, forage, oilseed, 

15 and other agricultural crops with minimum in16 puts of fuel, fertilizer, pesticides, and labor, and 

17 without intolerable soil erosion, as determined 

18 by the Secretary. 

19 ‘‘(B) INCLUSIONS.—The term ‘prime farm20 land’ includes land that— 

21 ‘‘(i) possesses the characteristics de22 scribed in subparagraph (A); and 

23 ‘‘(ii) is being used currently to 

24 produce livestock or timber. 

66 

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1 ‘‘(C) EXCLUSION.—The term ‘prime farm2 land’ does not include land already in or com3 mitted to urban development or water storage. 

4 ‘‘(6) SECRETARY.—The term ‘Secretary’ means 

5 the Secretary of Agriculture. 

6 ‘‘(7) STATE.—The term ‘State’ means— 

7 ‘‘(A) each of the several States of the 

8 United States; 

9 ‘‘(B) the District of Columbia; 

10 ‘‘(C) the Commonwealth of Puerto Rico; 

11 ‘‘(D) Guam; 

12 ‘‘(E) American Samoa; 

13 ‘‘(F) the Commonwealth of the Northern 

14 Mariana Islands; 

15 ‘‘(G) the Federated States of Micronesia; 

16 ‘‘(H) the Republic of the Marshall Islands; 

17 ‘‘(I) the Republic of Palau; and 

18 ‘‘(J) the United States Virgin Islands. 

19 ‘‘(8) UNIQUE FARMLAND.—The term ‘unique 

20 farmland’ means land other than prime farmland or 

21 farmland of statewide or local importance that— 

22 ‘‘(A) is used for production of specific 

23 high-value food and fiber crops, as determined 

24 by the Secretary; and 

67 

•S 1424 IS

1 ‘‘(B) has the special combination of soil 

2 quality, location, growing season, and moisture 

3 supply needed to economically produce sus4 tained high quality or high yields of specific 

5 crops (such as citrus, tree nuts, olives, cran6 berries, fruits, and vegetables) when treated 

7 and managed according to acceptable farming 

8 methods. 

9 ‘‘(9) UNIT OF THE FEDERAL GOVERNMENT.— 

10 The term ‘unit of the Federal Government’ means 

11 each department, agency, independent commission, 

12 and other unit of the Federal Government. 

13 ‘‘(10) UNIT OF LOCAL GOVERNMENT.—The 

14 term ‘unit of local government’ means— 

15 ‘‘(A) the government of a county, munici16 pality, town, township, village, or other unit of 

17 general government below the State level; or 

18 ‘‘(B) a combination of units of local gov19 ernment acting through an areawide agency 

20 under State law or an agreement for the formu21 lation of regional development policies and 

22 plans.’’; 

23 (c) FARMLAND PROTECTION POLICY.—Section 1541 

24 of the Farmland Protection Policy Act (7 U.S.C. 4202) 

25 is amended— 

68 

•S 1424 IS

1 (1) by striking the section heading and all that 

2 follows through ‘‘(a) The Department of Agri3 culture’’ and inserting the following: 

4 ‘‘SEC. 1541. FARMLAND PROTECTION POLICY. 

5 ‘‘(a) IN GENERAL.—The Secretary’’; 

6 (2) by striking subsection (b); 

7 (3) in subsection (c), by striking ‘‘(c) The De8 partment of Agriculture’’ and inserting the fol9 lowing: 

10 ‘‘(f) PROVISION OF INFORMATION.—The Secretary’’; 

11 and 

12 (4) by inserting after subsection (a) the fol13 lowing: 

14 ‘‘(b) USE OF CRITERIA.—Each unit of the Federal 

15 Government shall, in cooperation with the Secretary, use 

16 the criteria established under subsection (a) to— 

17 ‘‘(1) identify the quantity of farmland that will 

18 be directly or indirectly converted through proposed 

19 Federal program actions under the jurisdiction of 

20 the unit of the Federal Government; and 

21 ‘‘(2) to the maximum extent practicable, de22 velop and implement alternative actions— 

23 ‘‘(A) to minimize the impact of each pro24 posed Federal program action on the conversion 

25 of farmland to nonagricultural uses; and 

69 

•S 1424 IS

1 ‘‘(B) ensure the compatibility of the pro2 posed Federal program action with State, unit 

3 of local government, and private programs and 

4 policies to protect farmland. 

5 ‘‘(c) LIMITATION.— 

6 ‘‘(1) IN GENERAL.—Permanently-protected 

7 farmland shall not be subject to conversion to non8 agricultural uses by Federal programs unless the 

9 Secretary determines that there is no other feasible 

10 alternative to the proposed Federal program action. 

11 ‘‘(2) MITIGATION.—In a case in which a Fed12 eral action results in the conversion of permanently13 protected farmland to nonagricultural use, the re14 sponsible Federal entity shall mitigate the loss of the 

15 permanently-protected farmland with the protection 

16 of an equal amount of permanently-protected farm17 land that is of equal or greater quality to the con18 verted land. 

19 ‘‘(d) ANNUAL REPORT.— 

20 ‘‘(1) IN GENERAL.—Each unit of the Federal 

21 Government shall submit to the Secretary an annual 

22 report containing the information required under 

23 subsection (b). 

70 

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1 ‘‘(2) AVAILABILITY.—The Secretary shall make 

2 each report described in paragraph (1) available to 

3 the public on an annual basis. 

4 ‘‘(e) ENFORCEMENT.—Any unit of the Federal Gov5 ernment, State, unit of local government, organization, or 

6 individual aggrieved by a violation of any of the provisions 

7 of this subtitle shall have a civil cause of action against 

8 the unit of the Federal Government committing the viola9 tion.’’. 

10 (d) EXISTING POLICIES AND PROCEDURES.—Section 

11 1542 of the Farmland Protection Policy Act (7 U.S.C. 

12 4203) is amended— 

13 (1) by striking the section heading and all that 

14 follows through ‘‘or other unit’’ in subsection (a) 

15 and inserting the following: 

16 ‘‘SEC. 1542. EXISTING POLICIES AND PROCEDURES. 

17 ‘‘(a) IN GENERAL.—Each unit’’; and 

18 (2) by striking subsection (b) and inserting the 

19 following: 

20 ‘‘(b) REQUIREMENT.—Each unit of the Federal Gov21 ernment, with the assistance of the Secretary, shall, as 

22 appropriate, bring the programs, authorities, and adminis23 trative activities of the unit of the Federal Government 

24 into conformity with the purposes and policy of this sub25 title.’’. 

71 

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1 (e) TECHNICAL ASSISTANCE.—Section 1543 of the 

2 Farmland Protection Policy Act (7 U.S.C. 4204) is 

3 amended to read as follows: 

4 ‘‘SEC. 1543. TECHNICAL ASSISTANCE. 

5 ‘‘The Secretary shall provide to States, units of local 

6 government, nonprofit organizations, and the general pub7 lic technical assistance to assist in the development of pro8 grams or policies to limit the conversion of farmland to 

9 nonagricultural uses.’’. 

10 (f) FARMLAND RESOURCE INFORMATION.—Section 

11 1544 of the Farmland Protection Policy Act (7 U.S.C. 

12 4205) is amended to read as follows: 

13 ‘‘SEC. 1544. FARMLAND RESOURCE INFORMATION. 

14 ‘‘(a) IN GENERAL.—The Secretary, through existing 

15 agencies or interagency groups, and in cooperation with 

16 nonprofit organizations or the cooperative extension serv17 ices of the States, shall— 

18 ‘‘(1) design and implement educational pro19 grams and materials emphasizing the importance of 

20 productive farmland to the well-being of the United 

21 States; and 

22 ‘‘(2) distribute educational materials through 

23 communications media, schools, groups, and other 

24 Federal agencies. 

25 ‘‘(b) FARMLAND INFORMATION CENTERS.— 

72 

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1 ‘‘(1) IN GENERAL.—The Secretary shall des2 ignate 1 or more farmland information centers to 

3 provide technical assistance and serve as central de4 positories and distribution points for information on 

5 farmland issues. 

6 ‘‘(2) INCLUSIONS.—Information provided by the 

7 1 or more farmland information centers shall— 

8 ‘‘(A) include on-line access to data on land 

9 cover; and 

10 ‘‘(B) use changes and trends and lit11 erature, laws, historical archives, policies, pro12 grams, and innovative actions or proposals by 

13 local and State governments or nonprofit orga14 nizations relating to farmland protection. 

15 ‘‘(c) FUNDING.— 

16 ‘‘(1) IN GENERAL.—Funding for subsection (b) 

17 shall— 

18 ‘‘(A) be provided through the farmland 

19 protection program established under sub20 chapter B of chapter 2 of subtitle D of title XII 

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

22 3838h et seq.); 

‘‘(B) not exceed 1 23 ⁄2 of 1 percent of annual 

24 appropriations for that program; and 

73 

•S 1424 IS

1 ‘‘(C) be not less than $400,000 for each 

2 fiscal year. 

3 ‘‘(2) MATCHING FUNDS.—Federal funding for 

4 the 1 or more farmland information centers shall be 

5 matched on a 1-to-1 basis with non-Federal funds, 

6 through cash or in-kind contributions.’’. 

7 (g) IMPLEMENTATION.—Section 1545 of the Farm8 land Protection Policy Act (7 U.S.C. 4206) is amended 

9 to read as follows: 

10 ‘‘SEC. 1545. IMPLEMENTATION. 

11 ‘‘Except as provided in sections 1544 and 1548, the 

12 Secretary shall carry out this subtitle using existing facili13 ties and funds otherwise available, through the use of 

14 grants, contracts, or such other means as the Secretary 

15 considers to be appropriate.’’. 

16 (h) REPORTS.—Section 1546 of the Farmland Pro17 tection Policy Act (7 U.S.C. 4207) is amended to read 

18 as follows: 

19 ‘‘SEC. 1546. REPORT. 

20 ‘‘(a) IN GENERAL.—At the beginning of each cal21 endar year, the Secretary shall submit to the Committee 

22 on Agriculture of the House of Representatives and the 

23 Committee on Agriculture, Nutrition, and Forestry of the 

24 Senate a report describing the progress made in imple25 menting this subtitle. 

74 

•S 1424 IS

1 ‘‘(b) INCLUSIONS.—An annual report under sub2 section (a) shall include— 

3 ‘‘(1) data on the conversion of farmland to non4 agricultural uses at the national, State, and, as 

5 available, local level; 

6 ‘‘(2) information on the effects of Federal pro7 grams, authorities, and administrative activities with 

8 respect to the protection of United States farmland; 

9 and 

10 ‘‘(3) the results of the data collected and re11 views and actions taken as required under sections 

12 1541 and 1542.’’. 

13 (i) STATEMENT OF LIMITATION.—Section 1547 of 

14 the Farmland Protection Policy Act (7 U.S.C. 4208) is 

15 amended— 

16 (1) by striking the section heading and all that 

17 follows through ‘‘(a) This subtitle’’ and inserting the 

18 following: 

19 ‘‘SEC. 1547. STATEMENT OF LIMITATION. 

20 ‘‘(a) IN GENERAL.—This subtitle’’; and 

21 (2) by striking ‘‘(b) None of’’ and inserting the 

22 following: 

23 ‘‘(b) NATIONAL EMERGENCIES.—None of’’. 

24 (j) REPEALS.—The Farmland Protection Policy Act 

25 is amended by striking sections 1548, 1549, 1550, 1552, 

75 

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1 1553, and 1554 (7 U.S.C. 4209, 4201 note, 2273; 16 

2 U.S.C. 3471, 3472, 3473). 

3 (k) NATIONAL AGRICULTURAL LAND COMMISSION.— 

4 The Farmland Protection Policy Act is amended by insert5 ing after section 1547 (7 U.S.C. 4208) the following: 

6 ‘‘SEC. 1548. NATIONAL AGRICULTURAL LAND COMMISSION. 

7 ‘‘(a) ESTABLISHMENT.—There is established a com8 mission to be known as the ‘National Agricultural Land 

9 Commission’ (referred to in this section as the ‘Commis10 sion’). 

11 ‘‘(b) MEMBERSHIP.— 

12 ‘‘(1) COMPOSITION.—The Commission shall be 

13 composed of 23 members, of whom— 

14 ‘‘(A) 1 shall be the Secretary, who shall be 

15 the Chairperson of the Commission; 

16 ‘‘(B) 10 members shall be appointed by the 

17 President, from among individuals who are rep18 resentatives of State and local governments, 

19 academia, nonprofit conservation organizations, 

20 and farm, forest, and ranch interests; 

21 ‘‘(C) 6 shall be members, or designees of 

22 members, of the Committee on Agriculture of 

23 the House of Representatives; and 

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1 ‘‘(D) 6 shall be members, or designees of 

2 members of the Committee on Agriculture, Nu3 trition, and Forestry of the Senate. 

4 ‘‘(2) TERM; VACANCIES.— 

5 ‘‘(A) TERM.—A member shall be appointed 

6 for the life of the Commission. 

7 ‘‘(B) VACANCIES.—A vacancy on the Com8 mission— 

9 ‘‘(i) shall not affect the powers of the 

10 Commission; and 

11 ‘‘(ii) shall be filled in the same man12 ner as the original appointment was made. 

13 ‘‘(3) INITIAL MEETING.—Not later than 30 

14 days after the date on which all members of the 

15 Commission have been appointed, the Commission 

16 shall hold the initial meeting of the Commission. 

17 ‘‘(4) MEETINGS.—The Commission shall meet 

18 at the call of the Chairperson. 

19 ‘‘(c) DUTIES.— 

20 ‘‘(1) STUDY.— 

21 ‘‘(A) IN GENERAL.—The Commission 

22 shall— 

23 ‘‘(i) conduct a study of all matters re24 lating to the importance of protecting an 

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1 land security, food security, energy secu2 rity, environmental quality, and quality of 

3 life in the United States; and 

4 ‘‘(ii) develop recommendations by 

5 which the Federal Government can encour6 age the retention of agricultural land at 

7 the national, State, and local levels. 

8 ‘‘(B) REQUIREMENTS.—In conducting the 

9 study, the Commission shall— 

10 ‘‘(i) identify the quality, quantity, and 

11 location of the agricultural land in the 

12 United States; 

13 ‘‘(ii) identify and define the effects of 

14 urbanization, industrial, and commercial 

15 development and other nonagricultural ac16 tivities on the United States agricultural 

17 land base; 

18 ‘‘(iii) identify and define the implica19 tions for the United States agricultural 

20 land base of— 

21 ‘‘(I) global and national popu22 lation trends and the projected inter23 national and domestic demand for 

24 food and energy production from the 

25 United States agricultural land; 

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1 ‘‘(II) national land use trends 

2 and competing demands on the 

3 United States agricultural land as a 

4 source for housing, industrial, and 

5 commercial development, food, fiber 

6 and energy production, and rec7 reational and environmental amen8 ities; 

9 ‘‘(III) national environmental 

10 trends and the capacity of the United 

11 States agricultural land to contribute 

12 to improvements in water quality and 

13 quantity, air quality, and carbon se14 questration; 

15 ‘‘(IV) agricultural land loss by 

16 region and the projected impact of the 

17 land loss on the food and energy secu18 rity, natural resources, and economy 

19 of the region; 

20 ‘‘(V) land ownership patterns and 

21 the impact of the patterns on the se22 curity of the United States agricul23 tural land base; 

24 ‘‘(VI) State and local programs, 

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1 porting agricultural land availability; 

2 and 

3 ‘‘(VII) Federal programs, poli4 cies, and actions affecting or sup5 porting agricultural land availability; 

6 and 

7 ‘‘(iv) explore methods by which the 

8 Federal Government can encourage reten9 tion of the United States agricultural land 

10 base at the Federal, State, and local levels. 

11 ‘‘(2) REPORTS.— 

12 ‘‘(A) INTERIM REPORT.—Not later than 18 

13 months after the date of enactment of this 

14 paragraph, the Commission shall submit to the 

15 President and Congress an interim report that 

16 contains— 

17 ‘‘(i) the analysis by the Commission of 

18 existing data; and 

19 ‘‘(ii) any needs of the Commission for 

20 additional information. 

21 ‘‘(B) FINAL REPORT.—Not later than 3 

22 years after the date of enactment of this para23 graph, the Commission shall submit to the 

24 President and Congress a final report that con25 tains— 

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1 ‘‘(i) a detailed statement of the find2 ings and conclusions of the Commission; 

3 and 

4 ‘‘(ii) the recommendations of the 

5 Commission for such legislation and ad6 ministrative actions as the Commission 

7 considers appropriate. 

8 ‘‘(d) POWERS.— 

9 ‘‘(1) HEARINGS.—The Commission may hold 

10 such hearings, meet and act at such times and 

11 places, take such testimony, and receive such evi12 dence as the Commission considers advisable to 

13 carry out this section. 

14 ‘‘(2) INFORMATION FROM FEDERAL AGEN15 CIES.— 

16 ‘‘(A) IN GENERAL.—The Commission may 

17 secure directly from a Federal agency such in18 formation as the Commission considers nec19 essary to carry out this section. 

20 ‘‘(B) PROVISION OF INFORMATION.—On 

21 request of the Chairperson of the Commission, 

22 the head of the agency shall provide the infor23 mation to the Commission. 

24 ‘‘(3) POSTAL SERVICES.—The Commission may 

25 use the United States mails in the same manner and 

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1 under the same conditions as other agencies of the 

2 Federal Government. 

3 ‘‘(4) GIFTS.—The Commission may accept, use, 

4 and dispose of gifts or donations of services or prop5 erty. 

6 ‘‘(e) COMMISSION PERSONNEL MATTERS.— 

7 ‘‘(1) COMPENSATION OF MEMBERS.— 

8 ‘‘(A) NON-FEDERAL EMPLOYEES.—A 

9 member of the Commission who is not an offi10 cer or employee of the Federal Government 

11 shall be compensated at a rate equal to the 

12 daily equivalent of the annual rate of basic pay 

13 prescribed for level IV of the Executive Sched14 ule under section 5315 of title 5, United States 

15 Code, for each day (including travel time) dur16 ing which the member is engaged in the per17 formance of the duties of the Commission. 

18 ‘‘(B) FEDERAL EMPLOYEES.—A member 

19 of the Commission who is an officer or em20 ployee of the Federal Government shall serve 

21 without compensation in addition to the com22 pensation received for the services of the mem23 ber as an officer or employee of the Federal 

24 Government. 

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1 ‘‘(2) TRAVEL EXPENSES.—A member of the 

2 Commission shall be allowed travel expenses, includ3 ing per diem in lieu of subsistence, at rates author4 ized for an employee of an agency under subchapter 

5 I of chapter 57 of title 5, United States Code, while 

6 away from the home or regular place of business of 

7 the member in the performance of the duties of the 

8 Commission. 

9 ‘‘(3) STAFF.— 

10 ‘‘(A) IN GENERAL.—The Chairperson of 

11 the Commission may, without regard to the civil 

12 service laws (including regulations), appoint 

13 and terminate an executive director and such 

14 other additional personnel as are necessary to 

15 enable the Commission to perform the duties of 

16 the Commission. 

17 ‘‘(B) CONFIRMATION OF EXECUTIVE DI18 RECTOR.—The employment of an executive di19 rector shall be subject to confirmation by the 

20 Commission. 

21 ‘‘(C) COMPENSATION.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in subparagraph (B), the Chair24 person of the Commission may fix the com25 pensation of the executive director and 

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1 other personnel without regard to the pro2 visions of chapter 51 and subchapter III of 

3 chapter 53 of title 5, United States Code, 

4 relating to classification of positions and 

5 General Schedule pay rates. 

6 ‘‘(ii) MAXIMUM RATE OF PAY.—The 

7 rate of pay for the executive director and 

8 other personnel shall not exceed the rate 

9 payable for level V of the Executive Sched10 ule under section 5316 of title 5, United 

11 States Code. 

12 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

13 is authorized to be appropriated to carry out this section 

14 $2,000,000 for each of fiscal years 2009 through 2011, 

15 to remain available until expended. 

16 ‘‘(g) TERMINATION OF COMMISSION.—The Commis17 sion shall terminate 90 days after the date on which the 

18 Commission submits the report of the Commission under 

19 subsection (c)(2)(B).’’. 

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1 Subtitle F—Cooperative Conserva2 tion Partnership Initiative 

3 SEC. 2051. COOPERATIVE CONSERVATION PARTNERSHIP 

4 INITIATIVE. 

5 (a) IN GENERAL.—Subtitle D of title XII of the Food 

6 Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended 

7 by adding at the end the following: 

8 ‘‘CHAPTER 6—COOPERATIVE CONSERVA9 TION PARTNERSHIP INITIATIVE 

10 ‘‘SEC. 1240S. COOPERATIVE CONSERVATION PARTNERSHIP 

11 INITIATIVE. 

12 ‘‘(a) DEFINITIONS.—In this section: 

13 ‘‘(1) ELIGIBLE CONSERVATION PROGRAM.—The 

14 term ‘eligible conservation program’ means— 

15 ‘‘(A) the continuous signup portion of the 

16 conservation reserve program established under 

17 subchapter B of chapter 1; 

18 ‘‘(B) a special conservation reserve en19 hancement program described in section 

20 1234(f)(4); 

21 ‘‘(C) the environmental quality incentives 

22 program established under chapter 4, including 

23 the ground and surface water conservation pro24 gram under section 1240I; 

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1 ‘‘(D) the farmland protection program es2 tablished under subchapter B of chapter 2; 

3 ‘‘(E) the grassland reserve program estab4 lished under subchapter C of chapter 2; 

5 ‘‘(F) the wetlands reserve program estab6 lished under subchapter C of chapter 1; and 

7 ‘‘(G) the wildlife habitat incentive program 

8 established under section 1240N. 

9 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en10 tity’ means— 

11 ‘‘(A) a State, including an agency of a 

12 State; 

13 ‘‘(B) a political subdivision of a State, in14 cluding a State-sponsored conservation district; 

15 ‘‘(C) an Indian tribe; and 

16 ‘‘(D) a nongovernmental organization or 

17 association, including— 

18 ‘‘(i) a producer association; 

19 ‘‘(ii) a farmer cooperative; 

20 ‘‘(iii) an extension association; and 

21 ‘‘(iv) a conservation organization with 

22 a history of working cooperatively with 

23 producers to effectively address resource 

24 concerns related to agricultural production, 

25 as determined by the Secretary. 

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1 ‘‘(b) GRANTS AND AGREEMENTS.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall make 

3 grants and enter into agreements with eligible enti4 ties to preferentially enroll producers in 1 or more 

5 of eligible conservation programs to carry out special 

6 projects and initiatives through which multiple pro7 ducers and other interested persons cooperate to ad8 dress specific resources of concern relating to agri9 cultural production on a local, State, or regional 

10 scale. 

11 ‘‘(2) TERM.—Grants and agreements described 

12 in paragraph (1) shall have a term of— 

13 ‘‘(A) not less than 2 years; and 

14 ‘‘(B) not more than 5 years. 

15 ‘‘(c) APPLICATIONS.— 

16 ‘‘(1) COMPETITIVE PROCESS.—The Secretary 

17 shall establish a competitive process for considering 

18 applications for grants or agreements under this sec19 tion consistent with the evaluation criteria described 

20 in subsection (d). 

21 ‘‘(2) PROGRAM ALLOCATION.—An application 

22 for a grant or agreement under this section shall in23 clude— 

24 ‘‘(A) specification of the amount of fund25 ing or quantity of acres, or both, of 1 or more 

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1 eligible conservation programs proposed to be 

2 allocated to carry out the special project or ini3 tiative; and 

4 ‘‘(B) a schedule for use of funding or acres 

5 over the life of the proposed project or initia6 tive. 

7 ‘‘(d) EVALUATION CRITERIA.—In evaluating applica8 tions for grants or agreements under this section, the Sec9 retary shall consider the extent to which— 

10 ‘‘(1) preferential enrollment in the eligible con11 servation program specified in the application will 

12 effectively address the environmental objectives es13 tablished for the special project or initiative; and 

14 ‘‘(2) the special project or initiative covered by 

15 the application— 

16 ‘‘(A) enjoys broad local and regional sup17 port from producers and other interested per18 sons, including governmental and nongovern19 mental organizations with appropriate expertise 

20 on the issues the project or initiative seeks to 

21 address; 

22 ‘‘(B) includes clear environmental objec23 tives and a high likelihood of success; 

24 ‘‘(C) includes a well-defined project or ini25 tiative plan that identifies sensitive areas reVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
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1 quiring treatment and prioritizes conservation 

2 systems, practices, and activities needed to 

3 achieve environmental objectives; 

4 ‘‘(D) promises adequate and coordinated 

5 participation to achieve the objectives of the 

6 project or initiative; 

7 ‘‘(E) coordinates integration of Federal, 

8 State, and local efforts to make the best use of 

9 available resources and maximize cost-effective 

10 investments; 

11 ‘‘(F) leverages financial and technical re12 sources from sources other than the conserva13 tion programs authorized by this subtitle, in14 cluding financial and technical resources pro15 vided by Federal and State agencies, local gov16 ernments, nongovernmental organizations and 

17 associations, and other private sector entities; 

18 ‘‘(G) describes how all necessary technical 

19 assistance will be provided to each producer 

20 participating in the project or initiative, includ21 ing cost estimates for technical assistance and 

22 whether such assistance will be provided by 

23 technical service providers; 

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1 ‘‘(H) describes how the administrative 

2 costs of the project or initiative will be mini3 mized; 

4 ‘‘(I) addresses 1 or more local, State, re5 gional, or national environmental priorities, 

6 with particular emphasis on any priority for 

7 which there is an existing State or federally-ap8 proved plan in place for addressing that pri9 ority; 

10 ‘‘(J) includes a plan to evaluate progress 

11 and measure results; and 

12 ‘‘(K) clearly demonstrates that enrollment 

13 of producers in eligible conservation programs 

14 will be consistent with the purposes and policies 

15 of each eligible conservation program, as estab16 lished in law (including rules, regulations, and 

17 program guidance promulgated by imple18 menting agencies). 

19 ‘‘(e) PRIORITIES.—To the maximum extent prac20 ticable, consistent with subsections (c) and (d), the Sec21 retary shall ensure that, for each fiscal year, grants are 

22 awarded and agreements are entered into under this sec23 tion to support projects and initiatives that collectively ad24 dress the resource concerns facing producers, ranchers, 

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1 and small private forest landowners, specifically including 

2 projects and initiatives that are designed— 

3 ‘‘(1) to achieve improvements in water quality 

4 in watersheds impacted by agriculture, particularly 

5 by increasing the participation of producers in im6 plementing best management practices in a water7 shed or developing environmentally and economically 

8 viable alternative uses for manure and litter; 

9 ‘‘(2) to achieve improvements in air quality in 

10 a geographical area in which agricultural operations 

11 impact air quality, especially an area that, as deter12 mined by the Administrator of the Environmental 

13 Protection Agency, is a nonattainment area with re14 spect to any of the national primary and secondary 

15 ambient air quality standards promulgated by the 

16 Administrator under section 109 of the Clean Air 

17 Act (42 U.S.C. 7409); 

18 ‘‘(3) to conserve water for environmental pur19 poses, such as enhanced stream flows or aquifer re20 charge in regions, States, or local areas in which 

21 water quantity is a concern; 

22 ‘‘(4) to assist in the recovery of Federal or 

23 State-listed endangered species or species of special 

24 concern or to further the goals and objectives of the 

25 comprehensive wildlife conservation plan of a State 

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1 through the cooperative efforts of multiple pro2 ducers; 

3 ‘‘(5) to control invasive species on rangeland or 

4 other agricultural land through the cooperative ef5 forts of multiple producers in a geographical area; 

6 ‘‘(6) to address 1 or more specific resources of 

7 concern on private, non-industrial forest land; 

8 ‘‘(7) to reduce losses of pesticides to the envi9 ronment by engaging multiple producers in a geo10 graphic area in adoption of integrated pest manage11 ment practices and approaches; and 

12 ‘‘(8) to keep in production farms and ranches 

13 facing development pressures in agricultural use. 

14 ‘‘(f) COST SHARE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the Secretary shall not require more than 

17 25 percent of the cost of a project or initiative sup18 ported under a grant or agreement entered into 

19 under this section to be derived from non-Federal 

20 sources. 

21 ‘‘(2) EXCEPTION.—The Secretary may give 

22 greater priority to projects or initiatives that offer to 

23 provide a higher percentage of the cost of the project 

24 or initiative from non-Federal sources. 

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1 ‘‘(3) IN-KIND CONTRIBUTIONS.—If the Sec2 retary establishes a cost-share requirement for a 

3 project or initiative, the Secretary shall allow the use 

4 of in-kind contributions to fulfill that requirement. 

5 ‘‘(g) FUNDING.— 

6 ‘‘(1) IN GENERAL.—Of the funds made avail7 able for each fiscal year to carry out the eligible con8 servation programs, to provide funding for grants 

9 and agreements entered into under this section, the 

10 Secretary shall reserve— 

11 ‘‘(A) 5 percent for fiscal year 2008; 

12 ‘‘(B) 10 percent for fiscal year 2009; 

13 ‘‘(C) 15 percent for fiscal year 2010; and 

14 ‘‘(D) 20 percent for each of fiscal years 

15 2011 through 2013. 

16 ‘‘(2) ALLOCATION TO STATES.—Using the 

17 method of allocation for States under each eligible 

18 conservation program, the Secretary shall allocate to 

19 States 75 percent of the funds reserved under para20 graph (1) for each fiscal year to allow State Con21 servationists of the Natural Resources Conservation 

22 Service, with the advice of State technical commit23 tees, to select projects and initiatives for funding 

24 under this section at the State level.’’. 

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1 (b) CONFORMING AMENDMENT.—Section 1243 of the 

2 Food Security Act of 1985 (16 U.S.C. 3843) is amended 

3 by striking subsection (f). 

4 SEC. 2052. MINIMUM BASE ALLOCATION TO STATES IN 

5 FUNDING OF CERTAIN DEPARTMENT OF AG6 RICULTURE CONSERVATION PROGRAMS. 

7 Section 1241 of the Food Security Act of 1985 (16 

8 U.S.C. 3841) is amended by striking subsection (d) and 

9 inserting the following: 

10 ‘‘(d) MINIMUM BASE ALLOCATION TO STATES FOR

11 CERTAIN CONSERVATION PROGRAMS.— 

12 ‘‘(1) IN GENERAL.—In allocating funds to 

13 States to implement the conservation programs 

14 under subtitle D (excluding the conservation reserve 

15 program under subchapter B of chapter 1, the wet16 lands reserve program under subchapter C of chap17 ter 1, the conservation security program under sub18 chapter A of chapter 2, and the grassland reserve 

19 program under subchapter C of chapter 2), the Sec20 retary shall ensure that each State receives, at a 

21 minimum, $15,000,000 for each of fiscal years 2007 

22 through 2013. 

23 ‘‘(2) EXCEPTION.—The Secretary shall ensure 

24 that any funds made available under chapter 6 of 

25 subtitle D to carry out a project in or adjacent to 

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1 a State are over and above the minimum base alloca2 tion in paragraph (1).’’. 

3 Subtitle G—Other Conservation 

4 Programs 

5 SEC. 2061. WILDLIFE HABITAT INCENTIVE PROGRAM. 

6 Section 1240N of the Food Security Act of 1985 (16 

7 U.S.C. 3839bb–1) is amended by adding at the end the 

8 following: 

9 ‘‘(d) INCENTIVE PAYMENTS FOR CERTAIN AGREE10 MENTS AND APPLICATIONS.—In a case in which the Sec11 retary enters into an agreement or contract to protect or 

12 restore habitat for a federally- or State-listed endangered, 

13 threatened, or candidate species or for applications that 

14 further the goals and objectives of the comprehensive wild15 life conservation plan of a State, the Secretary may pro16 vide incentive payments to landowners to protect or re17 store the habitat, including the cost of management activi18 ties needed during the term of the agreement or con19 tract.’’. 

20 SEC. 2062. PILOT PROGRAM FOR COMPREHENSIVE CON21 SERVATION PLANNING. 

22 Chapter 5 of subtitle D of title XII of the Food Secu23 rity Act of 1985 (16 U.S.C. 3839bb et seq.) is amended 

24 by adding at the end the following: 

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1 ‘‘SEC. 1240Q. PILOT PROGRAM FOR COMPREHENSIVE CON2 SERVATION PLANNING. 

3 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

4 pilot program to undertake comprehensive conservation 

5 planning to assist producers before the producers apply 

6 for assistance under any of the conservation programs au7 thorized by this subtitle. 

8 ‘‘(b) CONSERVATION PLANNING ASSISTANCE.— 

9 ‘‘(1) IN GENERAL.—In carrying out the pilot 

10 program under subsection (a), the Secretary shall 

11 establish 4 pilot projects at the locations specified in 

12 paragraph (c) to assist producers by making a com13 prehensive assessment of the resource concerns, 

14 needs, and alternative solutions for the entire oper15 ations of the producers, as determined by the Sec16 retary, following the procedures in the Natural Re17 sources Conservation Service conservation planning 

18 manual. 

19 ‘‘(2) REQUIREMENTS.—Assistance to producers 

20 under the pilot program shall— 

21 ‘‘(A) be provided by the Secretary directly 

22 or through third party providers certified by the 

23 Secretary; and 

24 ‘‘(B) not be at the expense of the producer. 

25 ‘‘(3) PROVISION OF RESULTS.—The Secretary 

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1 prehensive planning assistance to enable the pro2 ducer to make informed choices on the type of finan3 cial assistance available through conservation pro4 grams under this subtitle that would most effectively 

5 address the resource needs of the operation of the 

6 producer, consistent with the environmental goals 

7 for the area in which the operation is located. 

8 ‘‘(c) PILOT PROJECTS.—The Secretary shall estab9 lish pilot projects in comprehensive conservation planning 

10 in— 

11 ‘‘(1) the Chesapeake Bay watershed; 

12 ‘‘(2) the Great Lakes Basin; 

13 ‘‘(3) the Connecticut River Valley Watershed; 

14 and 

15 ‘‘(4) the Highlands region, as defined in section 

16 3 of the Highlands Conservation Act (Public Law 

17 108–421; 118 Stat. 2375). 

18 ‘‘(d) FUNDING.— 

19 ‘‘(1) IN GENERAL.—Of the funds of the Com20 modity Credit Corporation, the Secretary shall use 

21 to carry out this section $40,000,000 for each of fis22 cal years 2008 through 2013. 

23 ‘‘(2) ALLOCATION.—Funds made available 

24 under paragraph (1) shall be equitably allocated 

25 among each of the 4 pilot projects. 

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1 ‘‘(e) REPORT.—In the second and fifth years of the 

2 pilot program, the Secretary shall— 

3 ‘‘(1) carry out an assessment of the effective4 ness of the pilot program; and 

5 ‘‘(2) publish and make available to the public a 

6 report describing the results of the assessment.’’. 

7 SEC. 2063. PILOT PROGRAM FOR CONSERVATION RISK 

8 MANAGEMENT. 

9 Chapter 5 of subtitle D of title XII of the Food Secu10 rity Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended 

11 by section 2062) is amended by adding at the end the fol12 lowing: 

13 ‘‘SEC. 2040R. CONSERVATION RISK MANAGEMENT PILOT 

14 PROGRAM. 

15 ‘‘(a) FINDINGS.—Congress finds that— 

16 ‘‘(1) numerous studies have identified risk as a 

17 major barrier to the adoption of well-established con18 servation measures, including best management 

19 practices; 

20 ‘‘(2) studies have determined that conservation 

21 risk management guarantees are among the most 

22 cost-effective means of encouraging conservation 

23 adoption; and 

24 ‘‘(3) the Pennsylvania Department of Agri25 culture has successfully operated an experimental 

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1 conservation risk management program in conjunc2 tion with the Agricultural Conservation Innovation 

3 Center of the American Farmland Trust. 

4 ‘‘(b) PILOT PROGRAM.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall estab6 lish a pilot program to support innovative conserva7 tion risk management tools to encourage the imple8 mentation of conservation and best management 

9 practices on land in agricultural production. 

10 ‘‘(2) CONSERVATION RISK MANAGEMENT.— 

11 ‘‘(A) IN GENERAL.—In carrying out the 

12 pilot program at the locations specified in sub13 section (c), the Secretary shall offer agricultural 

14 producers innovative tools to manage the busi15 ness and production risk of implementing con16 servation or best management practices on 

17 some portion of the land of the agricultural pro18 ducers. 

19 ‘‘(B) INCLUSIONS.—Risk management 

20 tools under paragraph (1) shall include price 

21 and yield guarantees that are contingent on 

22 conversion to conservation or best management 

23 practices, such as reduced application rates of 

24 nutrients. 

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1 ‘‘(c) PILOT PROJECTS.—The Secretary shall carry 

2 out pilot projects under this section in— 

3 ‘‘(1) the Chesapeake Bay watershed; 

4 ‘‘(2) the Great Lakes Basin; 

5 ‘‘(3) the Finger Lakes region of the State of 

6 New York; and 

7 ‘‘(4) the Ohio River watershed. 

8 ‘‘(d) RESEARCH.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall carry 

10 out research to improve and maintain the integrity 

11 of the pilot program under this section. 

12 ‘‘(2) PRIORITY AREAS.—The Secretary shall 

13 prioritize research that is intended to— 

14 ‘‘(A) study the impact of short- and long15 term weather changes on the performance of 

16 conservation and best management practices; 

17 ‘‘(B) study the impact on yield and net re18 turns of— 

19 ‘‘(i) new fertility recommendations; 

20 ‘‘(ii) reduced tillage practices for con21 tinuous corn; and 

22 ‘‘(iii) emerging technologies and en23 hanced nutrient management techniques, 

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1 son nutrient testing, and precision farming 

2 practices; 

3 ‘‘(C) study genomic markers indicating nu4 trient insufficiency; 

5 ‘‘(D) improve actuarial analysis and per6 formance; and 

7 ‘‘(E) study other risk management tools to 

8 improve the adoption of conservation and best 

9 management practices. 

10 ‘‘(e) REPORT.—Not less frequently than at the mid11 way point and end of the pilot project carried out under 

12 this section, the Secretary shall— 

13 ‘‘(1) carry out an assessment of the effective14 ness of each pilot project; 

15 ‘‘(2) publish, and make available to the public, 

16 reports that describe the results of each assessment. 

17 ‘‘(f) FUNDING.— 

18 ‘‘(1) IN GENERAL.—Of the funds of the Com19 modity Credit Corporation, the Secretary shall use 

20 to carry out this section $20,000,000 for each of fis21 cal years 2008 through 2013. 

22 ‘‘(2) USE OF FUNDS.—Of funds made available 

23 under paragraph (1), the Secretary shall use— 

24 ‘‘(A) $10,000,000 to establish and main25 tain a guarantee pool from which the Secretary 

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1 may make payments to producers participating 

2 in the pilot program that suffered losses due to 

3 implementation of conservation or best manage4 ment practices; 

5 ‘‘(B) $5,000,000 to administer and deliver 

6 the pilot program to producers; and 

7 ‘‘(C) $5,000,000 for research described in 

8 subsection (d).’’. 

9 Subtitle H—Funding and 

10 Administration 

11 SEC. 2071. FUNDING AND ADMINISTRATION. 

12 (a) COMMODITY CREDIT CORPORATION.—Section 

13 1241(a) of the Food Security Act of 1985 (16 U.S.C. 

14 3841(a)) is amended— 

15 (1) in the matter preceding paragraph (1), by 

16 striking ‘‘2007’’ and inserting ‘‘2013’’; 

17 (2) in paragraph (1), by striking ‘‘ ‘The’ ’’ and 

18 inserting ‘‘For each of fiscal years 2002 through 

19 2013, the’’; 

20 (3) in paragraph (2), by striking ‘‘ ‘The’ ’’ and 

21 inserting ‘‘For each of fiscal years 2002 through 

22 2013, the’’; 

23 (4) in paragraph (4)— 

24 (A) in subparagraph (D), by striking 

25 ‘‘and’’ at the end; 

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1 (B) in subparagraph (E), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(F) $300,000,000 in each of fiscal years 

5 2008 through 2013.’’; 

6 (5) in paragraph (6)— 

7 (A) in subparagraph (E), by striking ‘‘each 

8 of fiscal years 2007 through 2009; and’’ and in9 serting ‘‘fiscal year 2007; and’’ and 

10 (B) by striking subparagraph (F) and in11 serting the following: 

12 ‘‘(F) $2,000,000,000 in each of fiscal 

13 years 2008 through 2013.’’; and 

14 (6) in paragraph (7)— 

15 (A) in subparagraph (C), by striking 

16 ‘‘and’’ at the end; 

17 (B) in subparagraph (D), by striking the 

18 period at the end and inserting a semicolon; 

19 and 

20 (C) by adding at the end the following: 

21 ‘‘(E) $100,000,000 in fiscal year 2008; 

22 ‘‘(F) $140,000,000 in fiscal year 2009; 

23 ‘‘(G) $200,000,000 in each of fiscal years 

24 2010 and 2011; and 

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1 ‘‘(H) $300,000,000 in each of fiscal years 

2 2012 and 2013.’’. 

3 (b) TECHNICAL ASSISTANCE.—Section 1241(b)(1) of 

4 the Food Security Act of 1985 (16 U.S.C. 3841(b)(1)) 

5 is amended by adding before the semicolon ‘‘, beginning 

6 on the date on which the producer submits a bona fide 

7 application for assistance under the program’’. 

8 SEC. 2072. DELIVERY OF TECHNICAL ASSISTANCE. 

9 Section 1242 of the Food Security Act of 1985 (16 

10 U.S.C. 3842) is amended— 

11 (1) in subsection (a), by striking paragraph (2) 

12 and inserting the following: 

13 ‘‘(2) at the option of the producer, through a 

14 payment, as determined by the Secretary, to an ap15 proved third party or technical service provider, if 

16 available.’’; and 

17 (2) in subsection (b)— 

18 (A) in paragraph (1), by striking subpara19 graph (B) and inserting the following: 

20 ‘‘(B) establishing the amounts and meth21 ods for payments for that assistance, on the 

22 condition that payment rates reflect reasonable 

23 market conditions for the region in which the 

24 assistance would be provided.’’; 

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1 (B) by striking paragraph (3) and insert2 ing the following: 

3 ‘‘(3) COMPETITIVE BIDDING.—The Secretary 

4 may accept bids from and enter into annual or 

5 multi-year contracts and agreements with approved 

6 third parties to provide technical assistance to pro7 ducers eligible for assistance under this title.’’; and 

8 (C) in paragraph (4), by striking ‘‘Sec9 retary may request’’ and inserting ‘‘Secretary 

10 shall, to the maximum extent practicable, re11 quest’’. 

12 SEC. 2073. CONSERVATION APPLICATION PROCESS. 

13 Section 1244 of the Food Security Act of 1985 (16 

14 U.S.C. 3844) is amended by adding at the end the fol15 lowing: 

16 ‘‘(c) CONSERVATION APPLICATION PROCESS.— 

17 ‘‘(1) INITIAL APPLICATION.— 

18 ‘‘(A) IN GENERAL.—Not later than 1 year 

19 after the date of enactment of this subsection, 

20 the Secretary shall establish a single, simplified 

21 application for eligible entities to use in initially 

22 requesting assistance under any conservation 

23 program administered by the Natural Resources 

24 Conservation Service (referred to in this sub25 section as the ‘initial application’). 

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1 ‘‘(B) REQUIREMENTS.—To the maximum 

2 extent practicable, the Secretary shall ensure 

3 that— 

4 ‘‘(i) a conservation program applicant 

5 is not required to provide information that 

6 is duplicative of information or resources 

7 already available to the Secretary for that 

8 applicant and the specific operation of the 

9 applicant; and 

10 ‘‘(ii) the initial application process is 

11 streamlined to minimize complexity and re12 dundancy. 

13 ‘‘(2) REVIEW OF APPLICATION PROCESS.— 

14 ‘‘(A) IN GENERAL.—Not later than 1 year 

15 after the date of enactment of this subsection, 

16 the Secretary shall review the application proc17 ess for each conservation program administered 

18 by the Natural Resources Conservation Service, 

19 including the forms and processes used to re20 ceive assistance requests from eligible program 

21 participants. 

22 ‘‘(B) REQUIREMENTS.—In carrying out 

23 the review, the Secretary shall determine what 

24 information the participant is required to sub25 mit during the application process, including— 

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1 ‘‘(i) identification information for the 

2 applicant; 

3 ‘‘(ii) identification and location infor4 mation for the land parcel or tract of con5 cern; 

6 ‘‘(iii) a general statement of the need 

7 or resource concern of the applicant for the 

8 land parcel or tract; and 

9 ‘‘(iv) the minimum amount of other 

10 information the Secretary considers to be 

11 essential for the applicant to provide per12 sonally. 

13 ‘‘(3) REVISION AND STREAMLINE.— 

14 ‘‘(A) IN GENERAL.—Not later than 1 year 

15 after the date of enactment of this subsection, 

16 the Secretary shall carry out a revision of the 

17 application forms and processes for each con18 servation program administered by the Natural 

19 Resources Conservation Service to enable use of 

20 information technology to incorporate appro21 priate data and information concerning the con22 servation needs and solutions appropriate for 

23 the land area identified by the applicant. 

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1 ‘‘(B) GOAL.—The goal of the revision shall 

2 be to streamline the application process to mini3 mize the burden placed on applicants. 

4 ‘‘(4) CONSERVATION PROGRAM APPLICATION.— 

5 ‘‘(A) IN GENERAL.—Once the needs of an 

6 applicant have been adequately assessed by the 

7 Secretary, or a third party provider under sec8 tion 1242, based on the initial application, in 

9 order to determine the 1 or more programs 

10 under this title that best match the needs of the 

11 applicant, with the approval of the applicant, 

12 the Secretary may convert the initial application 

13 into the specific application for assistance for 

14 the relevant conservation program. 

15 ‘‘(B) SECRETARIAL BURDEN.—To the 

16 maximum extent practicable, the Secretary 

17 shall— 

18 ‘‘(i) complete the specific application 

19 for conservation program assistance for 

20 each applicant; and 

21 ‘‘(ii) request only that specific further 

22 information from the applicant that is not 

23 already available to the Secretary. 

24 ‘‘(5) IMPLEMENTATION AND NOTIFICATION.— 

25 Not later than 1 year after the date of enactment 

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1 of this subsection, the Secretary shall submit to the 

2 Committee on Agriculture of the House of Rep3 resentatives and the Committee on Agriculture, Nu4 trition, and Forestry of the Senate written notifica5 tion that the Secretary has fulfilled the requirements 

6 of this subsection.’’. 

7 SEC. 2074. PLANNING FOR AGRICULTURE GRANTS. 

8 Subtitle F of title XII of the Food Security Act of 

9 1985 (16 U.S.C. 2005a et seq.) is amended by adding at 

10 the end the following: 

11 ‘‘SEC. 1257. GRANTS TO PROMOTE PLANNING FOR AGRI12 CULTURE. 

13 ‘‘(a) IN GENERAL.—To encourage State and local ef14 forts to retain farmland and promote food security, the 

15 Secretary shall provide competitive grants to State and 

16 local units of government to carry out planning projects 

17 for the purposes described in subsection (b)(1). 

18 ‘‘(b) PROJECT REQUIREMENTS.— 

19 ‘‘(1) IN GENERAL.—A project eligible to receive 

20 planning assistance under this section shall be a 

21 project designed to support— 

22 ‘‘(A) farm and ranchland protection and 

23 transition; 

24 ‘‘(B) agricultural economic development; or 

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1 ‘‘(C) local and regional food processing and 

2 other agricultural infrastructure. 

3 ‘‘(2) PRIORITY FUNDING.—A project shall be 

4 eligible to receive priority for funding under this sec5 tion if the project— 

6 ‘‘(A) addresses more than 1 of the pur7 poses described in paragraph (1); or 

8 ‘‘(B) coordinates activities pursuant to 1 

9 or more of the purposes described in paragraph 

10 (1) among different levels of government. 

11 ‘‘(c) GRANTS.— 

12 ‘‘(1) IN GENERAL.—From amounts made avail13 able to carry out this section, the Secretary shall 

14 make grants to State and local units of government 

15 to assist the States and local units of government in 

16 developing plans that assess needs and identify im17 plementation strategies for furthering 1 or more of 

18 the purposes described in subsection (b)(1). 

19 ‘‘(2) MAXIMUM AMOUNT.—The maximum 

20 amount of a grant provided under this section shall 

21 be $100,000. 

22 ‘‘(3) MATCHING FUNDS REQUIREMENT.—The 

23 Federal share of any project that receives funding 

24 under this section may not exceed 50 percent of the 

25 total cost of the project. 

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1 ‘‘(4) TERM.—The term of a grant made under 

2 this section may not exceed 2 years. 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

4 is authorized to be appropriated to carry out this section 

5 $20,000,000 for each of fiscal years 2008 through 2013, 

6 to remain available until expended.’’. 

7 SEC. 2075. EXCLUSION OF PAYMENTS UNDER DEPARTMENT 

8 OF AGRICULTURE CONSERVATION PRO9 GRAMS FROM ADJUSTED GROSS INCOME 

10 LIMITATION. 

11 (a) EXCLUSION.—Section 1001D(b)(2) of the Food 

12 Security Act of 1985 (7 U.S.C. 1308–3a(b)(2)) is amend13 ed by striking subparagraph (C). 

14 (b) EFFECTIVE PERIOD.—Section 1001D of the 

15 Food Security Act of 1985 (7 U.S.C. 1308–3a) is amend16 ed by striking subsection (e). 

17 Subtitle I—Conservation Loan 

18 Guarantee Program 

19 SEC. 2081. CONSERVATION LOAN GUARANTEE PROGRAM. 

20 Subtitle A of the Consolidated Farm and Rural De21 velopment Act is amended by inserting after section 304 

22 (7 U.S.C. 1924) the following: 

23 ‘‘SEC. 304A. CONSERVATION LOAN GUARANTEE PROGRAM. 

24 ‘‘(a) DEFINITIONS.—In this section: 

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1 ‘‘(1) ELIGIBLE BORROWER.—The term ‘eligible 

2 borrower’ means a farmer, rancher, farm coopera3 tive, private domestic corporation, partnership, joint 

4 operation, trust, or limited liability company, that is 

5 engaged primarily and directly in agricultural pro6 duction in the United States. 

7 ‘‘(2) QUALIFIED CONSERVATION LOAN.—The 

8 term ‘qualified conservation loan’ means a loan de9 scribed in subsection (c). 

10 ‘‘(3) QUALIFIED CONSERVATION PROJECT.— 

11 The term ‘eligible conservation project’ means, with 

12 respect to an eligible borrower, conservation meas13 ures included in a conservation plan for a farming 

14 or ranching operation of the borrower, including— 

15 ‘‘(A) the installation of conservation struc16 tures, including terraces, sod waterways, per17 manently-vegetated stream borders and filter 

18 strips, tree or grass windbreaks, shelter belts, 

19 and living snow fences, if all plantings consist 

20 of vegetation appropriate to the locale; 

21 ‘‘(B) the establishment of forest cover for 

22 sustained yield timber management, erosion 

23 control, or shelter belt purposes, if the forest 

24 cover is appropriate to the locale; 

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1 ‘‘(C) the installation of water conservation 

2 measures; 

3 ‘‘(D) the installation of waste management 

4 systems; 

5 ‘‘(E) the establishment or improvement of 

6 permanent pasture; 

7 ‘‘(F) the payment of costs of complying 

8 with section 1212 of the Food Security Act of 

9 1985 (16 U.S.C. 3812); 

10 ‘‘(G) other purposes consistent with the 

11 conservation plan; 

12 ‘‘(H) any conservation project or practice, 

13 as described by technical guides and handbooks 

14 issued by the Natural Resources Conservation 

15 Service; and 

16 ‘‘(I) emerging conservation practices, tech17 niques, or technologies, that are approved by 

18 the Secretary. 

19 ‘‘(b) PROGRAM.—The Secretary may provide a loan 

20 guarantee, an interest subsidy, or both, to enable an eligi21 ble borrower to obtain a qualified conservation loan. 

22 ‘‘(c) QUALIFIED CONSERVATION LOAN.—A qualified 

23 conservation loan is a loan— 

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1 ‘‘(1) the proceeds of which are required to be 

2 used to cover the costs to the borrower of carrying 

3 out a qualified conservation project; 

4 ‘‘(2) the principal amount of which is not more 

5 than $1,000,000; 

6 ‘‘(3) the repayment period of which does not ex7 ceed 10 years; 

8 ‘‘(4) for which the lender is prohibited from— 

9 ‘‘(A) requiring any part of the loan to be 

10 repaid in the 1-year period that begins with the 

11 date of the closing of the loan; and 

12 ‘‘(B) forgiving any part of the loan; and 

13 ‘‘(5) for which the total of all processing fees 

14 charged with respect to the loan does not exceed 

15 such amount as shall be prescribed by the Secretary. 

16 ‘‘(d) LIMITATIONS APPLICABLE TO LOAN GUARAN17 TEES.— 

18 ‘‘(1) LIMITATION ON AMOUNT OF GUAR19 ANTEE.—The portion of a qualified conservation 

20 loan that the Secretary may guarantee under this 

21 section shall be not less than 80 percent, nor more 

22 than 90 percent, of the principal amount of the 

23 qualified conservation loan. 

24 ‘‘(2) LIMITATION ON TOTAL AMOUNT OUT25 STANDING.—The aggregate principal amount of outVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
114 

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1 standing qualified conservation loans guaranteed by 

2 the Secretary under this section shall not exceed 

3 $1,000,000,000. 

4 ‘‘(e) LIMITATION ON AMOUNT OF INTEREST SUB5 SIDY.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

7 the interest subsidy that the Secretary may provide 

8 under this section with respect to a qualified con9 servation loan shall result in a reduction of the in10 terest rate agreed to by the borrower and the lender 

11 by— 

12 ‘‘(A) 500 basis points, if the principal 

13 amount of the qualified conservation loan is less 

14 than $100,000; 

15 ‘‘(B) 400 basis points, if the principal 

16 amount of the qualified conservation loan is— 

17 ‘‘(i) at least $100,000; and 

18 ‘‘(ii) less than $500,000; and 

19 ‘‘(C) 300 basis points, in any other case. 

20 ‘‘(2) LIMITATION.—A reduction described in 

21 paragraph (1) may not reduce the interest rate to 

22 less than 0. 

23 ‘‘(f) ADMINISTRATIVE PROVISIONS.— 

24 ‘‘(1) AUTHORITY TO COLLECT PROCESSING

25 FEE.—The Secretary may assess a fee to cover the 

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1 cost of processing an application under this section 

2 equal to not more than 1 percent of the principal 

3 amount of the qualified conservation loan sought by 

4 the applicant, as described in the application. 

5 ‘‘(2) PROVISION OF FINANCIAL INFORMA6 TION.—An applicant for a loan guarantee or interest 

7 subsidy under this section shall provide the Sec8 retary with such financial information as may be re9 quired by the Secretary, in the manner generally re10 quired by commercial agricultural lenders in the geo11 graphical area in which the farming or ranching op12 eration of the applicant is located. 

13 ‘‘(3) APPRAISAL.—The Secretary may require 

14 that an appraisal made in connection with an appli15 cation for a loan guarantee or interest subsidy under 

16 this section be conducted by a specialized appraiser 

17 that uses standards similar to the standards used 

18 for similar purposes in the private sector, as deter19 mined by the Secretary. 

20 ‘‘(4) APPROVAL OF APPLICATION.—The Sec21 retary shall not approve an application submitted 

22 pursuant to this section, unless the Natural Re23 sources Conservation Service has determined that— 

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1 ‘‘(A) the loan sought by the applicant, as 

2 described in the application, would be a quali3 fied conservation loan; and 

4 ‘‘(B) the project for which the qualified 

5 conservation loan is sought is likely to result in 

6 a net benefit to the environment. 

7 ‘‘(5) DEADLINE FOR DECISION ON APPLICA8 TION.—To the maximum extent practicable, not 

9 later than 45 business days after the receipt of an 

10 application for assistance under this section, the 

11 Secretary shall submit to the applicant the decision 

12 of the Secretary to approve or disapprove the appli13 cation. 

14 ‘‘(6) EQUITABLE DISTRIBUTION OF LOAN

15 GUARANTEES AND INTEREST SUBSIDIES.—To the 

16 maximum extent practicable, the Secretary shall en17 sure that loan guarantees and interest subsidies 

18 under this section are equitably distributed among 

19 agricultural producers according to the scale of the 

20 operations of the producers that submit applications 

21 in any year. 

22 ‘‘(g) RELATIONSHIP WITH OTHER CONSERVATION

23 PROGRAMS.— 

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), the application for, and the receipt of, a 

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1 loan guarantee or an interest subsidy under this sec2 tion does not effect the eligibility of the recipient for 

3 assistance under— 

4 ‘‘(A) title XII of the Food Security Act of 

5 1985 (16 U.S.C. 3801 et seq.); or 

6 ‘‘(B) the Watershed Protection and Flood 

7 Prevention Act (16 U.S.C. 1001 et seq.). 

8 ‘‘(2) EXCEPTION.—If an applicant receives fi9 nancial assistance under the programs specified in 

10 paragraph (1), the loan principal shall be limited to 

11 the share of the applicant of the total project cost. 

12 ‘‘(h) APPROPRIATIONS.—For each of fiscal years 

13 2008 through 2013, the Secretary shall use such funds 

14 of the Commodity Credit Corporation as are necessary to 

15 carry out this section.’’. 

16 TITLE III—TRADE 

17 SEC. 3001. MARKET ACCESS PROGRAM. 

18 Section 211(c)(1)(A) of the Agricultural Trade Act 

19 of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended— 

20 (1) by striking ‘‘and’’ after ‘‘fiscal year 2005,’’; 

21 and 

22 (2) by inserting ‘‘and $350,000,000 for each of 

23 fiscal years 2008 through 2013,’’ after ‘‘2007, .’’ 

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1 SEC. 3002. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

2 Section 3205 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 5680) is amended by striking 

4 subsection (d) and inserting the following: 

5 ‘‘(d) FLEXIBILITY.—In providing technical assistance 

6 under the program, the Secretary shall provide for exten7 sions on a case–by–case basis, on the approval of the Sec8 retary, acting through the Administrator of the Foreign 

9 Agricultural Service, of time frames provided in regula10 tions in connection with the technical assistance. 

11 ‘‘(e) FUNDING.— 

12 ‘‘(1) IN GENERAL.—To carry out the program, 

13 the Secretary shall make available funds of, or an 

14 equal value of commodities owned by, the Com15 modity Credit Corporation, in the amount of— 

16 ‘‘(A) $4,000,000 for fiscal year 2008; 

17 ‘‘(B) $6,000,000 for fiscal year 2009; 

18 ‘‘(C) $8,000,000 for fiscal year 2010; and 

19 ‘‘(D) $10,000,000 for each of fiscal years 

20 2011 through 2013. 

21 ‘‘(2) CARRYOVER OF FUNDING.—Funds made 

22 available to carry out the program under paragraph 

23 (1) or under section 201 of the Specialty Crops 

24 Competitiveness Act of 2004 (Public Law 108–465; 

25 118 Stat. 3884) shall remain available until ex26 pended.’’. 

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1 TITLE IV—NUTRITION 

2 PROGRAMS 

3 Subtitle A—Food Stamp Program 

4 SEC. 4001. DEFINITION OF THRIFTY FOOD PLAN. 

5 Section 3(o)(4) of the Food Stamp Act of 1977 (7 

6 U.S.C. 2012(o)(4)) is amended— 

7 (1) by striking ‘‘except that on October 1, 

8 1996,’’ and inserting ‘‘except that’’; and 

9 (2) by striking ‘‘in effect on September’’ and all 

10 that follows before the period and inserting ‘‘in ef11 fect during the immediately preceding fiscal year’’. 

12 SEC. 4002. EXCLUSION OF COMBAT-RELATED MILITARY PAY 

13 FROM COUNTABLE INCOME. 

14 Section 5(d) of the Food Stamp Act of 1977 (7 

15 U.S.C. 2014(d)) is amended— 

16 (1) by striking ‘‘and 18’’ and inserting ‘‘(18)’’; 

17 and 

18 (2) by inserting before the period at the end the 

19 following: ‘‘, and (19) any amount paid a member of 

20 the uniformed services as hazardous duty pay under 

21 section 301 of title 37, United States Code, hardship 

22 duty pay under section 305 of that title, or hostile 

23 fire or imminent danger special pay under section 

24 310 of that title for service of the member in a com25 bat operation or combat zone’’. 

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1 SEC. 4003. DEDUCTIONS FROM INCOME. 

2 Section 5(e)(1) of the Food Stamp Act of 1977 (7 

3 U.S.C. 2014(e)(1)) is amended— 

4 (1) in subparagraph (A)(ii), by striking ‘‘not 

5 less than $134’’ and all that follows through the pe6 riod at the end and inserting the following: ‘‘not less 

7 than— 

8 ‘‘(I) $156, $267, $220, and 

9 $137, respectively; and 

10 ‘‘(II) for fiscal year 2009 and 

11 each fiscal year thereafter, an amount 

12 that is equal to the amount from the 

13 previous fiscal year adjusted to the 

14 nearest lower dollar increment to re15 flect changes for the 12-month period 

16 ending on the preceding June 30 in 

17 the Consumer Price Index for All 

18 Urban Consumers published by the 

19 Bureau of Labor Statistics of the De20 partment of Labor, for items other 

21 than food.’’; and 

22 (2) in subparagraph (B)(ii), by striking ‘‘not 

23 less than $269’’ and all that follows through the pe24 riod at the end and inserting the following: ‘‘not less 

25 than— 

26 ‘‘(I) $313; and 

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1 ‘‘(II) for fiscal year 2009 and 

2 each fiscal year thereafter, an amount 

3 that is equal to the amount from the 

4 previous fiscal year adjusted to the 

5 nearest lower dollar increment to re6 flect changes for the 12-month period 

7 ending on the preceding June 30 in 

8 the Consumer Price Index for All 

9 Urban Consumers published by the 

10 Bureau of Labor Statistics of the De11 partment of Labor, for items other 

12 than food.’’. 

13 SEC. 4004. DEPENDENT CARE DEDUCTION. 

14 Section 5(e)(3)(A) of the Food Stamp Act of 1977 

15 (7 U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘, the 

16 maximum allowable level of which shall be $200 per month 

17 for each dependent child under 2 years of age and $175 

18 per month for each other dependent,’’. 

19 SEC. 4005. ALLOWABLE FINANCIAL RESOURCES. 

20 Section 5(g) of the Food Stamp Act of 1977 (7 

21 U.S.C. 2014(g)) is amended— 

22 (1) by striking ‘‘(g)(1) The Secretary’’ and in23 serting the following: 

24 ‘‘(g) ALLOWABLE FINANCIAL RESOURCES.— 

25 ‘‘(1) TOTAL AMOUNT.— 

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1 ‘‘(A) IN GENERAL.—The Secretary’’. 

2 (2) in subparagraph (A) (as designated by 

3 paragraph (1))— 

4 (A) by inserting ‘‘(as adjusted in accord5 ance with subparagraph (B))’’ after ‘‘$2,000’’; 

6 and 

7 (B) by inserting ‘‘(as adjusted in accord8 ance with subparagraph (B))’’ after ‘‘$3,000’’; 

9 and 

10 (3) in paragraph (1), by adding at the end the 

11 following: 

12 ‘‘(B) ADJUSTMENT FOR INFLATION.— 

13 ‘‘(i) IN GENERAL.—Beginning on Oc14 tober 1, 2007, and each October 1 there15 after, the amounts in subparagraph (A) 

16 shall be adjusted to the nearest $100 in17 crement to reflect changes for the 12- 

18 month period ending the preceding June in 

19 the Consumer Price Index for All Urban 

20 Consumers published by the Bureau of 

21 Labor Statistics of the Department of 

22 Labor. 

23 ‘‘(ii) REQUIREMENT.—Each adjust24 ment under clause (i) shall be based on the 

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1 unrounded amount for the prior 12-month 

2 period.’’. 

3 SEC. 4006. EXCLUSION OF RETIREMENT ACCOUNTS FROM 

4 COUNTABLE FINANCIAL RESOURCES. 

5 (a) IN GENERAL.—Section 5(g)(2)(B)(v) of the Food 

6 Stamp Act of 1977 (7 U.S.C. 2014(g)(2)(B)(v)) is amend7 ed by striking ‘‘or retirement account (including an indi8 vidual account)’’ and inserting ‘‘account’’. 

9 (b) MANDATORY AND DISCRETIONARY EXCLU10 SIONS.—Section 5(g) of the Food Stamp Act of 1977 (7 

11 U.S.C. 2014(g)) is amended by adding at the end the fol12 lowing: 

13 ‘‘(7) EXCLUSION OF RETIREMENT ACCOUNTS

14 FROM COUNTABLE FINANCIAL RESOURCES.— 

15 ‘‘(A) MANDATORY EXCLUSIONS.—The Sec16 retary shall exclude from financial resources 

17 under this subsection the value of any funds in 

18 a plan, contract, or account, described in any of 

19 sections 401(a), 403(a), 403(b), 408, 408A, 

20 457(b), and 501(c)(18) of the Internal Revenue 

21 Code of 1986, and the value of funds in a Fed22 eral Thrift Savings Plan account, as provided in 

23 section 8439 of title 5, United States Code. 

24 ‘‘(B) DISCRETIONARY EXCLUSIONS.—The 

25 Secretary may exclude from financial resources 

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1 under this subsection the value of any other re2 tirement plans, contracts, or accounts (as deter3 mined by the Secretary, by regulation).’’. 

4 SEC. 4007. SIMPLIFIED REPORTING. 

5 Section 6(c) of the Food Stamp Act of 1977 (7 

6 U.S.C. 2015(c)(1)(A)) is amended— 

7 (1) in paragraph (1)(A)— 

8 (A) by striking ‘‘reporting by’’ and insert9 ing ‘‘reporting’’; 

10 (B) in clause (i), by inserting ‘‘for periods 

11 shorter than 4 months by’’ before ‘‘migrant’’; 

12 (C) in clause ii), by inserting ‘‘for periods 

13 shorter than 4 months by’’ before ‘‘households’’; 

14 and 

15 (D) in clause (iii), by inserting ‘‘by’’ before 

16 ‘‘households’’; and 

17 (2) in paragraph (3)— 

18 (A) in the third sentence— 

19 (i) by striking ‘‘Reports required to be 

20 filed monthly under paragraph (1)’’ and 

21 inserting ‘‘Except as provided in paragraph 

22 (1)(D)(ii), periodic reports filed under 

23 paragraph (1)’’; and 

24 (ii) by striking ‘‘subject matter in25 cluded in such reports’’ and inserting ‘‘the 

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1 households required to make the reports’’; 

2 and 

3 (B) by inserting after the third sentence 

4 the following: ‘‘The State agency shall not be 

5 required to act on information about a house6 hold described in the preceding sentence re7 ceived from any source between the monthly re8 ports unless the information clearly indicates 

9 that the household is not eligible, subject to 

10 standards established by the Secretary, or the 

11 household requests an increase in benefits.’’. 

12 SEC. 4008. WORK REQUIREMENT. 

13 (a) REPEAL.—Section 6 of the Food Stamp Act of 

14 1977 (7 U.S.C. 2015) is amended by striking subsection 

15 (o). 

16 (b) FUNDING OF EMPLOYMENT AND TRAINING PRO17 GRAMS.—Section 16(h)(1) of the Food Stamp Act of 1977 

18 (7 U.S.C. 2025(h)(1)) is amended— 

19 (1) in subparagraph (A)— 

20 (A) in clause (vi)(II), by striking ‘‘and’’ at 

21 the end; 

22 (B) in clause (vii), by striking the period 

23 at the end and inserting ‘‘; and’’; and 

24 (C) by adding at the end the following: 

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1 ‘‘(viii) for each of fiscal years 2008 

2 through 2012, $110,000,000’’; 

3 (2) in subparagraph (B)— 

4 (A) in clause (i), by striking ‘‘; and’’ and 

5 inserting a period; 

6 (B) by striking clause (ii); and 

7 (C) by striking ‘‘that—’’ and all that fol8 lows through ‘‘is determined’’ and inserting 

9 ‘‘that is determined’’; and 

10 (3) by striking subparagraph (E). 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) Section 7(j)(1) of the Food Stamp Act of 

13 1977 (7 U.S.C. 2016(j)(1)) is amended by striking 

14 ‘‘section 6(o)(2) of this Act or’’. 

15 (2) Section 501(b)(2) of the Workforce Invest16 ment Act of 1998 (20 U.S.C. 9271(b)(2)) is amend17 ed— 

18 (A) by striking subparagraph (F); and 

19 (B) by redesignating subparagraphs (G) 

20 through (O) as subparagraphs (F) through (N), 

21 respectively. 

22 (3) Section 112(b)(8)(A) of the Workforce In23 vestment Act of 1998 (29 U.S.C. 2822(b)(8)(A)) is 

24 amended— 

25 (A) by striking clause (iv); and 

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1 (B) by redesignating clauses (v) through 

2 (x) as clauses (iv) through (ix), respectively. 

3 (4) Section 121(b)(2)(B) of the Workforce In4 vestment Act of 1998 (29 U.S.C. 2841(b)(2)(B)) is 

5 amended— 

6 (A) by striking clause (iii); and 

7 (B) by redesignating clauses (iv) and (v) 

8 as clauses (iii) and (iv), respectively. 

9 SEC. 4009. FAIRNESS FOR LEGAL IMMIGRANTS. 

10 (a) IN GENERAL.—Notwithstanding sections 401(a), 

11 402(a), and 403(a) of the Personal Responsibility and 

12 Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 

13 1611(a), 1612(a), 1613(a)), and section 6 of the Food 

14 Stamp Act of 1977 (7 U.S.C. 2015), an individual who 

15 is lawfully residing in the United States shall not be ineli16 gible for the food stamp program under the Food Stamp 

17 Act of 1977 (7 U.S.C. 2011 et seq.) on the basis of— 

18 (1) the immigration status of the individual; or 

19 (2) the date on which the individual entered the 

20 United States. 

21 (b) CLARIFYING ELIGIBILITY.—Section 421(d)(3) of 

22 the Personal Responsibility and Work Opportunity Rec23 onciliation Act of 1996 (8 U.S.C. 1631(d)(3)) is amended 

24 by striking ‘‘to the extent that a qualified alien is eligible 

25 under section 1612(a)(2)(J) of this title’’ and inserting 

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1 ‘‘to the extent that a child is a member of a household 

2 receiving food stamps under that Act’’. 

3 (c) ENSURING PROPER SCREENING.—Section 

4 11(e)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 

5 2020(e)(2)(B)) is amended— 

6 (1) by redesignating clauses (vi) and (vii) as 

7 clauses (vii) and (viii), respectively; and 

8 (2) by inserting after clause (v) the following: 

9 ‘‘(vi) shall provide a method for imple10 menting section 421 of the Personal Re11 sponsibility and Work Opportunity Rec12 onciliation Act of 1996 (8 U.S.C. 1631) 

13 that does not require any unnecessary in14 formation from individuals who may be ex15 empt from that section;’’. 

16 (d) SIMPLIFIED ADMINISTRATIVE REPORTING RE17 QUIREMENT.—Section 11(a) of the Food Stamp Act of 

18 1977 (7 U.S.C. 2020(a)) is amended by adding at the end 

19 the following: ‘‘Notwithstanding subsection (e)(2) of sec20 tion 421 of the Personal Responsibility and Work Oppor21 tunity Reconciliation Act of 1996 (8 U.S.C. 1631(e)(2)), 

22 the administrative reporting requirement under that sub23 section shall be satisfied by the submission of an aggregate 

24 report on the numbers of exceptions granted under that 

25 subsection each year.’’. 

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1 SEC. 4010. MINIMUM BENEFIT. 

2 Section 8(a) of the Food Stamp Act of 1977 (7 

3 U.S.C. 2017(a)) is amended in the proviso by striking 

4 ‘‘$10 per month’’ and inserting ‘‘20 percent of the thrifty 

5 food plan for a household containing 1 member, as deter6 mined by the Secretary under section 3(o)’’. 

7 SEC. 4011. ACCOUNTABILITY FOR PAPERWORK REQUIRE8 MENTS. 

9 Section 11(e)(3) of the Food Stamp Act of 1977 (7 

10 U.S.C. 2020(e)(3)) is amended by inserting ‘‘(except that 

11 no application shall be denied for lack of verification un12 less the State agency determines that the household re13 fused to comply with a request for verification made by 

14 an individual described in paragraph (6)(B))’’ after ‘‘of 

15 an application’’. 

16 SEC. 4012. ADMINISTRATIVE COST-SHARING AND QUALITY 

17 CONTROL. 

18 (a) PREVENTING CONFLICTS OF INTEREST.—Section 

19 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) 

20 is amended in the last sentence by inserting ‘‘directly or 

21 indirectly’’ before ‘‘receive or benefit’’. 

22 (b) LIMITATION ON CONTRACTING.—Section 16(a) of 

23 the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is amend24 ed by adding at the end the following: ‘‘The Secretary 

25 shall not make any payments for administrative costs 

26 under this Act relating to a contract that a State agency 

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1 concluded in violation of this Act or regulations promul2 gated by the Secretary (regardless of whether the Sec3 retary may approve the contract subsequent to the letting 

4 of the contract) or for any personnel costs to carry out 

5 functions specified under section 11(e)(3) except by indi6 viduals described in section 11(e)(6)(B).’’. 

7 (c) PROHIBITION.—Section 7 of the Food Stamp Act 

8 of 1977 (7 U.S.C. 2016) is amended by adding at the end 

9 the following: 

10 ‘‘(l) PROHIBITION.—No State agency may establish 

11 any requirement or condition on the receipt of food stamp 

12 benefits by a household other than the requirements and 

13 conditions specified in this section.’’. 

14 SEC. 4013. REAUTHORIZATION OF FOOD STAMP PROGRAM 

15 AND FOOD DISTRIBUTION PROGRAM ON IN16 DIAN RESERVATIONS. 

17 (a) GRANTS FOR SIMPLE APPLICATION AND ELIGI18 BILITY DETERMINATION SYSTEMS AND IMPROVED AC19 CESS TO BENEFITS.—Section 11(t)(1) of the Food Stamp 

20 Act of 1977 (7 U.S.C. 2020(t)(1)) is amended by striking 

21 ‘‘2007’’ and inserting ‘‘2013’’. 

22 (b) FUNDING OF EMPLOYMENT AND TRAINING PRO23 GRAMS.—Section 16(h)(1) of the Food Stamp Act of 1977 

24 (7 U.S.C. 2025(h)(1)) is amended— 

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1 (1) in subparagraph (A)(vii), by striking 

2 ‘‘2007’’ and inserting ‘‘2013’’; and 

3 (2) in subparagraph (E)(i), by striking ‘‘2007’’ 

4 and inserting ‘‘2013’’. 

5 (c) REDUCTIONS IN PAYMENTS FOR ADMINISTRA6 TIVE COSTS.—Section 16(k)(3) of the Food Stamp Act 

7 of 1977 (7 U.S.C. 2025(k)(3)) is amended— 

8 (1) in the first sentence of subparagraph (A), 

9 by striking ‘‘2007’’ and inserting ‘‘2013’’; and 

10 (2) in subparagraph (B)(ii) by striking ‘‘2007’’ 

11 and inserting ‘‘2013’’. 

12 (d) CASH PAYMENT PILOT PROJECTS.—Section 

13 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C. 

14 2026(b)(1)(B(vi)) is amended by striking ‘‘2007’’ and in15 serting ‘‘2013’’. 

16 (e) AUTHORIZATION OF APPROPRIATIONS.—Section 

17 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 

18 2027(a)(1)) is amended in the first sentence by striking 

19 ‘‘2007’’ and inserting ‘‘2013’’. 

20 (f) CONSOLIDATED BLOCK GRANTS FOR PUERTO

21 RICO AND AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of 

22 the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(2)(A)(ii)) 

23 is amended by striking ‘‘2007’’ and inserting ‘‘2013’’. 

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1 SEC. 4014. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

2 Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 

3 2034) is amended— 

4 (1) in subsection (b)— 

5 (A) in paragraph (1), by striking ‘‘From 

6 amounts made available to carry out this Act, 

7 the Secretary may’’ and inserting ‘‘The Sec8 retary shall’’; and 

9 (B) by striking paragraph (2) and insert10 ing the following: 

11 ‘‘(2) FUNDING AMOUNTS.—From amounts 

12 made available to carry out this Act, the Secretary 

13 shall use $30,000,000 for each of fiscal years 2008 

14 through 2012 to make grants under this section, ad15 justed to reflect changes for the 12-month period 

16 ending the preceding June 30 in the Consumer Price 

17 Index for All Urban Consumers published by the 

18 Bureau of Labor Statistics of the Department of 

19 Labor.’’; 

20 (2) in subsection (d)— 

21 (A) in paragraph (3), by striking ‘‘or’’ at 

22 the end; 

23 (B) in paragraph (4), by striking the pe24 riod at the end and inserting ‘‘; or’’; and 

25 (C) by adding at the end the following: 

26 ‘‘(5) serve special project needs in areas of— 

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1 ‘‘(A) transportation and processing for ex2 panding institutional and emergency food serv3 ice demand for local food; 

4 ‘‘(B) retail access to healthy foods in un5 derserved markets; 

6 ‘‘(C) integration of urban and metro-area 

7 food production in food projects; and 

8 ‘‘(D) technical assistance for youth, so9 cially disadvantaged individuals, and limited re10 source groups.’’; 

11 (3) in subsection (e)(1), by striking ‘‘50’’ and 

12 inserting ‘‘75’’; 

13 (4) in subsection (f)(2), by striking ‘‘3’’ and in14 serting ‘‘5’’; and 

15 (5) in subsection (h)(4)— 

16 (A) by striking ‘‘2007’’ and inserting 

17 ‘‘2013’’; and 

18 (B) by striking ‘‘$200,000’’ and inserting 

19 ‘‘$500,000’’. 

20 SEC. 4015. AVAILABILITY OF COMMODITIES FOR THE EMER21 GENCY FOOD ASSISTANCE PROGRAM. 

22 Section 27(a) of the Food Stamp Act of 1977 (7 

23 U.S.C. 2036(a)) is amended— 

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1 (1) by striking ‘‘(a) PURCHASE OF COMMOD2 ITIES.—’’ and all that follows through ‘‘through 

3 2007’’ and inserting the following: 

4 ‘‘(a) PURCHASE OF COMMODITIES.— 

5 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

6 for each of fiscal years 2008 through 2013’’; and 

7 (2) by striking ‘‘$140,000,000 of’’; and 

8 (3) by inserting at the end the following: 

9 ‘‘(2) AMOUNTS.—The Secretary shall use to 

10 carry out this subsection— 

11 ‘‘(A) for fiscal year 2008, $250,000,000; 

12 and 

13 ‘‘(B) for each of fiscal years 2009 through 

14 2013, the dollar amount of commodities avail15 able in the immediately preceding fiscal year 

16 adjusted by the percentage by which the thrifty 

17 food plan has been adjusted under section 

18 3(o)(4) between June 30, 2007 and June 30 of 

19 the immediately preceding fiscal year.’’. 

20 SEC. 4016. STUDY ON COMPARABLE ACCESS TO FOOD 

21 STAMP BENEFITS FOR PUERTO RICO. 

22 (a) IN GENERAL.—The Secretary shall carry out a 

23 study of the feasibility and effects of including the Com24 monwealth of Puerto Rico in the definition of the term 

25 ‘‘State’’ under section 3 of the Food Stamp Act of 1977 

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1 (7 U.S.C. 2012), in lieu of providing block grants to the 

2 Commonwealth under section 19 of that Act (7 U.S.C. 

3 2028). 

4 (b) INCLUSIONS.—The study shall include— 

5 (1) an assessment of the administrative, finan6 cial management, and other changes that would be 

7 necessary for the Commonwealth to establish a com8 parable food stamp program, including compliance 

9 with appropriate program rules under the Food 

10 Stamp Act of 1977 (7 U.S.C. 2011 et seq.), such 

11 as— 

12 (A) benefit levels under section 3(o) of that 

13 Act (7 U.S.C. 3012(o)); 

14 (B) income eligibility standards under sec15 tion 5(c) of that Act (7 U.S.C. 2014(c)); and 

16 (C) deduction levels under section 5(e) of 

17 that Act (7 U.S.C. 2014(e)); 

18 (2) an estimate of the impact on Federal and 

19 Commonwealth benefit and administrative costs; 

20 (3) an estimate of the impact of the food stamp 

21 program on hunger and food insecurity among low22 income Puerto Ricans; and 

23 (4) such other matters as the Secretary con24 siders to be appropriate. 

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1 (c) REPORT.—Not later than 180 days after the date 

2 of enactment of this Act, the Secretary shall submit to 

3 the Committee on Agriculture of the House of Representa4 tives and the Committee on Agriculture, Nutrition, and 

5 Forestry of the Senate a report that describes the results 

6 of the study conducted under this section. 

7 Subtitle B—Miscellaneous 

8 SEC. 4021. NUTRITION INFORMATION AND AWARENESS 

9 PILOT PROGRAM. 

10 Section 4403(f) of the Farm Security and Rural In11 vestment Act of 2002 (7 U.S.C. 3171 note; Public Law 

12 107–171) is amended by striking ‘‘2007’’ and inserting 

13 ‘‘2013’’. 

14 TITLE V—RURAL DEVELOPMENT 

15 SEC. 5001. FARM AND RANCH PROFITABILITY GRANT PRO16 GRAM. 

17 The Consolidated Farm and Rural Development Act 

18 (7 U.S.C. 1921 et seq.) is amended by adding at the end 

19 the following: 

20 ‘‘Subtitle J—Farm and Ranch 

21 Profitability Grant Program 

22 ‘‘SEC. 386A. DEFINITIONS. 

23 ‘‘In this subtitle: 

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1 ‘‘(1) PRODUCER.—The term ‘producer’ has the 

2 meaning given the term by the Secretary for the 

3 purposes of the Census of Agriculture. 

4 ‘‘(2) STATE.—The term ‘State’ means each of 

5 the several States of the United States. 

6 ‘‘(3) STATE DEPARTMENT OF AGRICULTURE.— 

7 The term ‘State department of agriculture’ means 

8 the agency, commission, or department of a State 

9 government responsible for agriculture in the State. 

10 ‘‘SEC. 386B. AVAILABILITY AND PURPOSES OF GRANTS. 

11 ‘‘(a) IN GENERAL.—For each of fiscal years 2008 

12 through 2013, the Secretary shall carry out a program 

13 to make grants to eligible States through State depart14 ments of agriculture. 

15 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

16 under this subtitle, a State shall— 

17 ‘‘(1) have a 3-year strategic plan approved by 

18 the Secretary in accordance with section 386D(a); 

19 and 

20 ‘‘(2) submit to the Secretary an annual report, 

21 including an annual work plan, in accordance with 

22 section 386D(b). 

23 ‘‘(c) PURPOSES OF GRANT PROGRAM.—The purposes 

24 of the grant program under this subtitle are— 

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1 ‘‘(1) to improve the profitability of farms and 

2 ranches in the United States; 

3 ‘‘(2) to increase self-employment opportunities 

4 for farmers and ranchers; 

5 ‘‘(3) to revitalize local and regional food sys6 tems; 

7 ‘‘(4) to increase wealth and asset-building in 

8 rural communities; and 

9 ‘‘(5) to encourage entrepreneurship and innova10 tion in farming and ranching by funding State, local, 

11 and farm-level programs and projects that address— 

12 ‘‘(A) farm viability; 

13 ‘‘(B) market development and promotion; 

14 ‘‘(C) product development, differentiation, 

15 and promotion; 

16 ‘‘(D) consumer education; 

17 ‘‘(E) business planning; 

18 ‘‘(F) alternate ownership models and 

19 structures; 

20 ‘‘(G) local and regional infrastructure 

21 needs; or 

22 ‘‘(H) local and regional food security 

23 needs. 

24 ‘‘(d) MAINTENANCE OF EFFORT.—The State shall 

25 provide assurances to the Secretary in the annual report 

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1 required under section 386D(b) that funds provided to the 

2 State under this subtitle have been used only to supple3 ment, not to supplant, the amount of Federal, State, and 

4 local funds otherwise expended in the State for the per5 mitted uses described in section 386C. 

6 ‘‘(e) ADMINISTRATIVE AND PLANNING EXPENSES.— 

7 Not more than 5 percent of funds provided annually under 

8 this subtitle may be used by the State for administrative 

9 and planning expenses. 

10 ‘‘SEC. 386C. PERMITTED USES OF GRANT FUNDS. 

11 ‘‘(a) IN GENERAL.—In accordance with the purposes 

12 described in section 386B(c), as determined by the Sec13 retary, a State department of agriculture may use grant 

14 funds received under this subtitle— 

15 ‘‘(1) to supplement funding for State programs, 

16 projects, and initiatives; and 

17 ‘‘(2) to provide grants to— 

18 ‘‘(A) producers; 

19 ‘‘(B) local and regional government enti20 ties; 

21 ‘‘(C) agricultural cooperatives; 

22 ‘‘(D) agricultural processors; 

23 ‘‘(E) nonprofit organizations; and 

24 ‘‘(F) research institutions. 

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1 ‘‘(b) SPECIFIC PERMITTED USES OF GRANT

2 FUNDS.—A State may use grant funds received under this 

3 subtitle— 

4 ‘‘(1) to provide marketing or business develop5 ment assistance to producers; 

6 ‘‘(2) to promote product development or dif7 ferentiation; 

8 ‘‘(3) to encourage direct-to-consumer market 

9 opportunities, including— 

10 ‘‘(A) farmers markets; 

11 ‘‘(B) buy-local campaigns; 

12 ‘‘(C) agritourism; and 

13 ‘‘(D) on-farm retail market opportunities; 

14 ‘‘(4) to rebuild local and regional food systems 

15 through planning or development of agricultural 

16 processing facilities or other infrastructure that en17 hances or adds value to agricultural products grown 

18 in the State; 

19 ‘‘(5) to match State funding for— 

20 ‘‘(A) farm viability programs; 

21 ‘‘(B) agriculture innovation centers; or 

22 ‘‘(C) recreational walk-in or access pro23 grams; 

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1 ‘‘(6) to encourage profitable business models 

2 and develop alternative ownership structures and 

3 new business succession models; 

4 ‘‘(7) to increase consumer awareness of agricul5 tural products produced and services provided in the 

6 State, including advertising and promotional cam7 paigns; 

8 ‘‘(8) to provide direct grants to producers for 

9 farm infrastructure or equipment needs that— 

10 ‘‘(A) add value to a commodity produced; 

11 or 

12 ‘‘(B) will allow for the transition to a new 

13 agricultural enterprise; 

14 ‘‘(9) to provide technical, legal, and other sup15 port to beginning or socially disadvantaged farmers; 

16 ‘‘(10) to assist county and local governments in 

17 planning for agriculture, including the land use and 

18 infrastructure needs of local producers; 

19 ‘‘(11) to address food safety issues, including 

20 training; and 

21 ‘‘(12) to enhance the competitiveness of spe22 cialty crops, including applied research. 

23 ‘‘(c) PROHIBITED USE OF GRANT FUNDS.—A State 

24 may not use grant funds received under this section to 

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1 directly subsidize the price of an agricultural commodity 

2 in the market. 

3 ‘‘(d) MAXIMUM GRANT AMOUNT.—A State may not 

4 award more than 33 percent of the funds received by the 

5 State under this subtitle in any fiscal year to any single 

6 project, proposal, or program. 

7 ‘‘SEC. 386D. STRATEGIC PLANS AND ANNUAL REPORTS. 

8 ‘‘(a) STRATEGIC PLAN.— 

9 ‘‘(1) IN GENERAL.—To be eligible to receive a 

10 grant under this subtitle, a State shall have a 3-year 

11 strategic plan that has been— 

12 ‘‘(A) reviewed by the Federal Food and 

13 Agricultural Council of the State in accordance 

14 with subsection (c)(1); and 

15 ‘‘(B) approved by the Secretary. 

16 ‘‘(2) SUBMISSION.—A State shall submit to the 

17 Secretary the strategic plan described in this sub18 section during the first and fourth fiscal years in 

19 which the State receives grants under this section. 

20 ‘‘(3) CONTENTS.—A strategic plan required 

21 under this subsection shall— 

22 ‘‘(A) reflect the diversity of the agricul23 tural sector of the State, including the produc24 tion, processing, marketing, and distribution of 

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1 the food and agricultural products of the State; 

2 and 

3 ‘‘(B) include— 

4 ‘‘(i) the vision of the State for meet5 ing the purposes described in section 

6 386B(c); 

7 ‘‘(ii) the 3-year plan of the State for 

8 achieving that vision, including goals, ob9 jectives, measurable outcomes, and yearly 

10 milestones toward completion; 

11 ‘‘(iii) an explanation of how the plan 

12 reflects the diversity of the agricultural 

13 sector of the State; 

14 ‘‘(iv) the method by which the State 

15 has and will continue to solicit the input of 

16 the agricultural sector in developing the 

17 plan, setting grant priorities, and selecting 

18 project; 

19 ‘‘(v) a year-by-year work plan, includ20 ing— 

21 ‘‘(I) a description of the general 

22 project areas that will be funded; 

23 ‘‘(II) the percent of funding an24 ticipated for each project area; and 

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1 ‘‘(III) the expected project selec2 tion process for each fiscal year; and 

3 ‘‘(vi) such other information as the 

4 Secretary may require by regulation. 

5 ‘‘(b) ANNUAL REPORTS.— 

6 ‘‘(1) IN GENERAL.—As a condition of receiving 

7 a grant under this subtitle, not later than 90 days 

8 after the end of each fiscal year in which a State re9 ceives grant funds under this subtitle, the State 

10 shall submit to the Secretary a report of the activi11 ties the State carried out using the grant funds dur12 ing the preceding fiscal year. 

13 ‘‘(2) REVIEW.—Each annual report described in 

14 paragraph (1) shall be reviewed by the Federal Food 

15 and Agricultural Council of the State in accordance 

16 with subsection (c)(2). 

17 ‘‘(3) CONTENTS.—Each annual report shall in18 clude— 

19 ‘‘(A) an accounting of projects funded, 

20 non-Federal funds leveraged, mileposts com21 pleted, and outcomes achieved during the pre22 ceding fiscal year; 

23 ‘‘(B) an accounting of any unobligated 

24 funds remaining; 

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1 ‘‘(C) an updated work plan for the current 

2 fiscal year; and 

3 ‘‘(D) such other information as the Sec4 retary may require by regulation. 

5 ‘‘(c) REVIEW OF STRATEGIC PLANS AND ANNUAL

6 REPORTS.— 

7 ‘‘(1) STRATEGIC PLANS.— 

8 ‘‘(A) IN GENERAL.—In reviewing a stra9 tegic plan submitted under subsection (a), the 

10 Federal Food and Agricultural Council of a 

11 State shall ensure that the plan, to the max12 imum extent practicable — 

13 ‘‘(i) reflects the diversity of the agri14 cultural sector of the State; and 

15 ‘‘(ii) will carry out the purposes de16 scribed in section 386B(c). 

17 ‘‘(B) SUBMISSION TO SECRETARY.—Not 

18 later than 45 days after receiving a strategic 

19 plan submitted under subsection (a), a Federal 

20 Food and Agricultural Council shall submit to 

21 the Secretary— 

22 ‘‘(i) the strategic plan; and 

23 ‘‘(ii) any recommendations of the 

24 Council regarding the strategic plan. 

25 ‘‘(C) REVISIONS.—The Secretary may— 

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1 ‘‘(i) request that a State make 

2 changes to a strategic plan; or 

3 ‘‘(ii) after giving the State an oppor4 tunity to resubmit a revised strategic plan, 

5 reject a strategic plan. 

6 ‘‘(2) ANNUAL REPORTS.— 

7 ‘‘(A) IN GENERAL.—Not later than 45 

8 days after receiving an annual report submitted 

9 under subsection (b), the Federal Food and Ag10 ricultural Council of a State shall submit to the 

11 Secretary— 

12 ‘‘(i) the annual report; and 

13 ‘‘(ii) any recommendations of the 

14 Council regarding the updated work plan. 

15 ‘‘(B) REVISIONS.—The Secretary may re16 quest that a State make changes to an updated 

17 work plan in order to more fully reflect— 

18 ‘‘(i) the priorities of the strategic plan 

19 of the State; or 

20 ‘‘(ii) the purposes described in section 

21 386B(c). 

22 ‘‘(d) EFFECT OF NONCOMPLIANCE.—The Secretary 

23 may disqualify, for 1 or more years, a State from receipt 

24 of future grants under this subtitle, if the Secretary, after 

25 reasonable notice to a State, finds that the State— 

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1 ‘‘(1) has failed to comply with the requirements 

2 of this section or section 386B(d); 

3 ‘‘(2) is not substantially meeting the outcomes 

4 and milestones described in the strategic plan or an5 nual work plans of the State; 

6 ‘‘(3) is not meeting the purposes described in 

7 section 386B(c); or 

8 ‘‘(4) is not funding projects reflective of the di9 versity of the agricultural sector of the State. 

10 ‘‘(e) AUDIT REQUIREMENTS.— 

11 ‘‘(1) IN GENERAL.—A State that receives a 

12 grant under this subtitle shall submit to the Sec13 retary, through the Agricultural Marketing Service, 

14 an annual audit. 

15 ‘‘(2) LIMITATION.—A State may use not more 

16 than 2 percent of the total funds awarded to the 

17 State under this subtitle to carry out the audit. 

18 ‘‘SEC. 386E. ALLOCATIONS TO STATES. 

19 ‘‘(a) MINIMUM BASE GRANT AMOUNT.— 

20 ‘‘(1) IN GENERAL.—Of funds made available 

21 each year to carry out this subtitle, 15 percent shall 

22 be allocated equally among States as a minimum 

23 base grant amount. 

24 ‘‘(2) MINIMUM AMOUNT.—Subject to the avail25 ability of funds made available to carry out this subVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
148 

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1 title, the minimum base grant amount under para2 graph (1) shall be not less than $3,000,000 per eli3 gible State per fiscal year. 

4 ‘‘(b) BONUS PAYMENTS.— 

5 ‘‘(1) IN GENERAL.—In fiscal year 2009, and 

6 each subsequent fiscal year, of funds made available 

7 to carry out this subtitle, 15 percent shall be allo8 cated to States as bonus payments. 

9 ‘‘(2) ALLOCATION.—Bonus payments described 

10 in paragraph (1) shall be allocated equally among 

11 each State that provides a cost share of non-Federal 

12 funds to match at least 30 percent of the Federal 

13 funding received by the State under this subtitle for 

14 the preceding fiscal year. 

15 ‘‘(c) REMAINING FUNDS.—The amount remaining 

16 after allocation and distribution of funds under sub17 sections (a) and (b) shall be allocated among eligible 

18 States in the proportion that— 

19 ‘‘(1) the market value of agricultural sales and 

20 the number of farms in a State during the preceding 

21 fiscal year, expressed as a composite index, weighted 

22 equally; bears to 

23 ‘‘(2) the market value of agricultural sales and 

24 the number of farms in all States receiving grants 

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1 under this subtitle in that fiscal year, expressed as 

2 a composite index, weighted equally. 

3 ‘‘(d) UNOBLIGATED FUNDS.—Any funds received by 

4 a State under this subtitle and not obligated by the State 

5 within 2 fiscal years shall be remitted to the Secretary 

6 for redistribution in the subsequent fiscal year in accord7 ance with this section. 

8 ‘‘SEC. 386F. FUNDING. 

9 ‘‘(a) IN GENERAL.—On October 1, 2007, and on 

10 each October 1 thereafter through October 1, 2012, out 

11 of any funds in the Treasury not otherwise appropriated, 

12 the Secretary of the Treasury shall transfer to the Sec13 retary to carry out this subtitle $1,000,000,000, to remain 

14 available until expended. 

15 ‘‘(b) RECEIPT AND ACCEPTANCE.—The Secretary 

16 shall be entitled to receive, shall accept, and shall use to 

17 carry out this section the funds transferred under sub18 section (a), without further appropriation.’’. 

19 SEC. 5002. DEFINITION OF RURAL AND RURAL AREA. 

20 Section 343(a)(13) of the Consolidated Farm and 

21 Rural Development Act (7 U.S.C. 1991(a)(13)) is amend22 ed by adding at the end the following: 

23 ‘‘(F) EXEMPTION.—For the purpose of eli24 gibility for Department of Agriculture–Rural 

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1 grams, subparagraph (A) shall not apply to ag2 ricultural producers or to entities that are sub3 stantially owned and operated by agricultural 

4 producers.’’. 

5 TITLE VI—FORESTRY 

6 Subtitle A—Cooperative Forestry 

7 Assistance Act of 1978 

8 SEC. 6001. COMMUNITY FOREST AND OPEN SPACE CON9 SERVATION PROGRAM. 

10 (a) FINDINGS.—Congress finds that— 

11 (1) the Forest Service recently projected that, 

12 by 2030, approximately 44,000,000 acres of pri13 vately owned forest land will be developed through14 out the United States, including many of the impor15 tant parcels of privately owned forest land that are 

16 located in, or adjacent to, communities of the United 

17 States; 

18 (2) the threat of development of those parcels 

19 of privately owned forest land creates an urgent 

20 need for local governmental entities to possess suffi21 cient financial resources to purchase the parcels of 

22 privately owned forest land that are most important 

23 to the communities of the United States as those 

24 parcels of privately owned forest land are offered for 

25 sale; 

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1 (3) forest parcelization has led to a rapidly ex2 panding base of private owners of forest land that 

3 includes many individuals who— 

4 (A) do not possess any experience in forest 

5 stewardship; and 

6 (B) could learn proper forest management 

7 techniques through relevant demonstration 

8 sites, for which many communities of the 

9 United States use land owned by the local gov10 ernmental entities of those communities; 

11 (4) in rapidly-growing communities of all sizes 

12 throughout the United States, remaining parcels of 

13 privately owned forest land play an essential role in 

14 protecting public water supplies, leading many local 

15 governmental entities to purchase parcels of pri16 vately owned forest land for ownership; 

17 (5) rising rates of obesity and other public 

18 health problems relating to the inactivity of the citi19 zens of the United States have been shown to be 

20 ameliorated by improving public access to safe and 

21 pleasing areas for outdoor recreation, leading many 

22 local governmental entities to purchase recreation 

23 land for ownership; 

24 (6) throughout the United States, many com25 munities of diverse types and sizes derive significant 

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1 financial benefits from managing parcels of privately 

2 owned forest land owned by the local governmental 

3 entities of those communities because those par4 cels— 

5 (A) provide a significant source of local 

6 revenue to the communities; and 

7 (B) contribute to the health of the forest 

8 products economy of the communities and the 

9 United States; 

10 (7) public access to parcels of privately owned 

11 forest land for hunting, fishing, and trapping has 

12 declined and, as a result, participation in those ac13 tivities has also declined as parcels of privately 

14 owned forest land and watersheds throughout the 

15 United States have become further parcelized among 

16 a growing base of private owners who often prohibit 

17 public use of the land, leading many local govern18 mental entities to purchase parcels of privately 

19 owned forest land to ensure that individuals who 

20 participate in sports have access to those parcels; 

21 and 

22 (8) there is a national interest in providing fi23 nancial assistance to local governmental entities to 

24 purchase important and closely located parcels of 

25 privately owned forest land to maintain the diverse 

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1 benefits provided by those parcels to communities 

2 served by those local governmental entities. 

3 (b) COMMUNITY FOREST AND OPEN SPACE CON4 SERVATION PROGRAM.—The Cooperative Forestry Assist5 ance Act of 1978 is amended by inserting after section 

6 9 (16 U.S.C. 2105) the following: 

7 ‘‘SEC. 9A. COMMUNITY FOREST AND OPEN SPACE CON8 SERVATION PROGRAM. 

9 ‘‘(a) ESTABLISHMENT.—The Secretary, in coopera10 tion with appropriate State and local governments, shall 

11 establish a program to be known as the ‘Community For12 est and Open Space Conservation Program’ (referred to 

13 in this section as the ‘program’) to enable local govern14 mental entities of participating States to acquire parcels 

15 of privately owned forest land that are— 

16 ‘‘(1) economically, culturally, and environ17 mentally important to the communities of the local 

18 governmental entities; and 

19 ‘‘(2) threatened by conversion to nonforest uses. 

20 ‘‘(b) IMPLEMENTATION.— 

21 ‘‘(1) PARTICIPATING STATES.— 

22 ‘‘(A) APPLICATION.—To participate in the 

23 program, a State shall submit to the Secretary 

24 an application in such time, in such manner, 

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1 and containing such information as the Sec2 retary may require. 

3 ‘‘(B) DUTIES OF PARTICIPATING STATE.— 

4 A State that participates in the program shall, 

5 through the State forester of the State— 

6 ‘‘(i) coordinate the program in the 

7 participating State; and 

8 ‘‘(ii) perform any other duty con9 sistent with the implementation of the pro10 gram, as determined by the Secretary. 

11 ‘‘(C) PARTICIPATION REQUIREMENT.— 

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), not later than 1 year 

14 after the date of enactment of this section, 

15 the Secretary shall establish the program 

16 in not less than 1 State in each region of 

17 the United States, including— 

18 ‘‘(I) the Northeast region; 

19 ‘‘(II) the mid-Atlantic region; 

20 ‘‘(III) the Midwest region; 

21 ‘‘(IV) the Southern region; 

22 ‘‘(V) the Western region; and 

23 ‘‘(VI) the Pacific Northwest re24 gion. 

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1 ‘‘(ii) REQUIREMENT OF APPLICA2 TIONS.—The requirement described in 

3 clause (i) shall not apply to a region of the 

4 United States if, not later than 1 year 

5 after the date of enactment of this section, 

6 the Secretary has not received an applica7 tion from a State in the region. 

8 ‘‘(2) ASSESSMENT OF NEED REPORT.— 

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), each participating State shall pre11 pare, and submit to the Secretary, an assess12 ment of need report that identifies— 

13 ‘‘(i) each geographic program focus 

14 area of the participating State; and 

15 ‘‘(ii) any priority objective for con16 servation based on any condition or need of 

17 the citizens of the participating State. 

18 ‘‘(B) EXCEPTION.—The requirement de19 scribed in subparagraph (A) may be fulfilled by 

20 a participating State through the inclusion of 

21 information described in subparagraph (A) as 

22 part of an integrated statewide forest planning 

23 process for the application of a Federal pro24 gram in the State. 

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1 ‘‘(c) APPLICATION BY LOCAL GOVERNMENTAL ENTI2 TY.— 

3 ‘‘(1) IN GENERAL.—A local governmental entity 

4 may, in such time and in such manner as the Sec5 retary may require, submit to the State forester of 

6 the participating State in which the local govern7 mental entity is located a project application to ac8 quire 1 or more parcels of privately owned forest 

9 land that are located in the geographic program 

10 focus area of the State, as determined by the State 

11 forester. 

12 ‘‘(2) CONTENTS.—A project application sub13 mitted by a local governmental entity to a State for14 ester under paragraph (1) shall include— 

15 ‘‘(A) a certification from the local govern16 mental entity that the project proposed in the 

17 project application is consistent with any com18 prehensive plan for development adopted by the 

19 local governmental entity; and 

20 ‘‘(B) any other applicable information, as 

21 determined by the Secretary. 

22 ‘‘(3) PRIORITIZED LIST.—The State forester of 

23 each participating State shall prepare and submit to 

24 the Secretary a prioritized list that includes each 

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1 mental entity of the State to the State forester 

2 under paragraph (1). 

3 ‘‘(d) DEVELOPMENT OF NATIONAL LIST.—Not later 

4 than 1 year after the date of enactment of this section, 

5 the Secretary shall, in accordance with the criteria devel6 oped by the Secretary under subsection (e), develop a 

7 prioritized national list that incorporates each prioritized 

8 list submitted by a State forester to the Secretary under 

9 subsection (c)(3). 

10 ‘‘(e) DEVELOPMENT OF CRITERIA FOR PROJECT AP11 PLICATIONS.— 

12 ‘‘(1) IN GENERAL.—Not later than 1 year after 

13 the date of enactment of this section, Secretary 

14 shall, in consultation with forest stewardship advi15 sory committees, urban and community forestry ad16 visory committees, and related organizations of the 

17 States, develop prioritization criteria for project ap18 plications submitted by local governmental entities 

19 to State foresters under subsection (c)(1). 

20 ‘‘(2) PRIORITY FOR CERTAIN PARCELS OF PRI21 VATELY OWNED FOREST LAND.—In developing the 

22 prioritization criteria under paragraph (1), the Sec23 retary shall give priority to parcels of privately 

24 owned forest land that— 

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1 ‘‘(A) meet any identified local open space 

2 or natural resource need described in a munic3 ipal plan, regional plan, or other relevant local, 

4 regional, or State planning document; 

5 ‘‘(B) could— 

6 ‘‘(i) be effectively managed to model 

7 effective forest stewardship for private 

8 landowners; 

9 ‘‘(ii) support forest-based educational 

10 programs, including vocational education 

11 programs in forestry; 

12 ‘‘(iii) provide significant protection to 

13 public water supplies or other waterways; 

14 or 

15 ‘‘(iv) offer long-term economic bene16 fits to communities through the increase of 

17 economic activities relating to forestry; 

18 ‘‘(C) contain important wildlife habitats; 

19 ‘‘(D) provide convenient public access to 

20 parcels of forest land suitable for outdoor recre21 ation, including hunting and fishing; or 

22 ‘‘(E) are threatened with conversion to 

23 nonforest uses. 

24 ‘‘(3) SPECIAL CONSIDERATION FOR CERTAIN

25 PARCELS.—In developing the prioritization criteria 

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1 under paragraph (1), the Secretary shall give special 

2 consideration to any proposal that is jointly pre3 pared and submitted by not less than 2 local govern4 mental entities. 

5 ‘‘(f) OWNERSHIP OF PARCELS OF PRIVATELY

6 OWNED FOREST LAND.— 

7 ‘‘(1) OWNERSHIP BY LOCAL GOVERNMENTAL

8 ENTITY.—Except as provided in paragraph (2), any 

9 parcel of privately owned forest land acquired by a 

10 local governmental entity under the program shall be 

11 owned in fee simple by the local governmental entity. 

12 ‘‘(2) NONPROFIT OWNERSHIP.—Upon request 

13 by a participating State, any designated nonprofit 

14 organization that operates in the State in which the 

15 local governmental entity is located may own a par16 cel of forest land acquired by the local governmental 

17 entity under the program if the designated nonprofit 

18 organization allows public access to the parcel of for19 est land in a manner consistent with the purposes of 

20 the program. 

21 ‘‘(g) DUTIES OF LOCAL GOVERNMENTAL ENTI22 TIES.— 

23 ‘‘(1) MANAGEMENT OF PARCELS OF PRIVATELY

24 OWNED FOREST LAND.— 

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1 ‘‘(A) IN GENERAL.—A local governmental 

2 entity that acquires a parcel of privately owned 

3 forest land under the program shall manage the 

4 parcel of forest land in a manner consistent 

5 with the purposes of the program. 

6 ‘‘(B) PUBLIC ACCESS.—A local govern7 mental entity that acquires a parcel of privately 

8 owned forest land under the program shall pro9 vide public access to the parcel of forest land 

10 for any recreational use that is consistent with 

11 the purposes of the program, as determined by 

12 the local governmental entity. 

13 ‘‘(2) FOREST MANAGEMENT PLAN.— 

14 ‘‘(A) IN GENERAL.—Not later than 2 years 

15 after the date on which a local governmental 

16 entity acquires a parcel of forest land under the 

17 program, the local governmental entity shall de18 velop and submit to the appropriate State agen19 cy for approval a forest management plan for 

20 the parcel of forest land. 

21 ‘‘(B) PUBLIC PARTICIPATION.—In devel22 oping a forest management plan for a parcel of 

23 forest land under subparagraph (A), the local 

24 governmental entity shall provide members of 

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1 the public with an opportunity to participate in 

2 the development of the forest management plan. 

3 ‘‘(3) USE OF PARCELS OF PRIVATELY OWNED

4 FOREST LAND.— 

5 ‘‘(A) AUTHORIZED USES.—Any parcel of 

6 privately owned forest land acquired by a local 

7 governmental entity under the program shall be 

8 used to preserve community access to, and ben9 efits from, the parcel of forest land for public 

10 purposes, including purposes relating to— 

11 ‘‘(i) model forest stewardship; 

12 ‘‘(ii) sustainable timber production; 

13 ‘‘(iii) forest-based educational and cul14 tural activities; 

15 ‘‘(iv) the conservation of wildlife habi16 tats; 

17 ‘‘(v) the protection of watersheds; and 

18 ‘‘(vi) the preservation of outdoor 

19 recreation activities, including hunting and 

20 fishing. 

21 ‘‘(B) PROHIBITED USES.—A local govern22 mental entity that acquires a parcel of privately 

23 owned forest land under the program shall not 

24 convert the parcel of forest land to any non25 forest use. 

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1 ‘‘(4) PENALTY FOR SALE OF ACQUIRED PAR2 CELS OF PRIVATELY OWNED FOREST LAND.— 

3 ‘‘(A) REIMBURSEMENT OF FUNDS.—A 

4 local governmental entity that sells a parcel of 

5 forest land acquired under the program shall 

6 pay to the Federal Government an amount 

7 equal to the sum obtained by adding— 

8 ‘‘(i) the amount provided under the 

9 program to the local governmental entity 

10 to purchase the parcel of privately owned 

11 forest land; and 

12 ‘‘(ii) an amount equal to 50 percent of 

13 the greater of— 

14 ‘‘(I) the sales price of the pri15 vately owned parcel of land; and 

16 ‘‘(II) the appraised price of the 

17 privately owned parcel of forest land. 

18 ‘‘(B) LOSS OF ELIGIBILITY.—A local gov19 ernmental entity that sells a parcel of forest 

20 land acquired under the program shall not be 

21 eligible to receive grants under the program 

22 after the date on which the local governmental 

23 entity sells the parcel of forest land. 

24 ‘‘(h) COST SHARING.— 

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1 ‘‘(1) IN GENERAL.—In accordance with any 

2 term or condition of the Secretary, any cost relating 

3 to the acquisition of any parcel of privately owned 

4 forest land and any project described in a project 

5 application submitted to a State forester under sub6 section (c)(1) shall be shared among any partici7 pating entity, including any— 

8 ‘‘(A) State; 

9 ‘‘(B) local governmental entity; 

10 ‘‘(C) owner of a parcel of privately owned 

11 forest land; 

12 ‘‘(D) corporation; or 

13 ‘‘(E) private organization. 

14 ‘‘(2) ELIGIBLE COSTS.—A local governmental 

15 entity shall be eligible for assistance under the pro16 gram for any cost relating to a parcel of privately 

17 owned forest land, including any cost relating to— 

18 ‘‘(A) planning; 

19 ‘‘(B) administration; 

20 ‘‘(C) acquisition of the parcel of privately 

21 owned forest land; or 

22 ‘‘(D) management of the privately owned 

23 forest land. 

24 ‘‘(3) NON-FEDERAL SHARE.— 

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1 ‘‘(A) IN GENERAL.—The non-Federal 

2 share of the cost of a parcel of privately owned 

3 forest land acquired under the program shall be 

4 not less than 50 percent. 

5 ‘‘(B) IN-KIND CONTRIBUTIONS.—The non6 Federal share under subparagraph (A) may be 

7 provided in cash or in-kind. 

8 ‘‘(C) APPRAISAL OF PARCELS OF PRI9 VATELY OWNED FOREST LAND.—To determine 

10 the non-Federal share of the cost of a parcel of 

11 privately owned forest land under subparagraph 

12 (A), the local governmental entity shall deter13 mine the value of the parcel of privately owned 

14 forest land by an appraisal that is performed in 

15 accordance with— 

16 ‘‘(i) the Uniform Appraisal Standards 

17 for Federal Land Acquisitions developed by 

18 the Interagency Land Acquisition Con19 ference; 

20 ‘‘(ii) the Uniform Standards of Pro21 fessional Appraisal Practice; and 

22 ‘‘(iii) any other applicable law. 

23 ‘‘(i) STATE ADMINISTRATION AND TECHNICAL AS24 SISTANCE.—To assist local governmental entities in con25 ducting model stewardship of parcels of privately owned 

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1 forest land acquired under the program, not more than 

2 10 percent of all funds made available to carry out the 

3 program each fiscal year shall be allocated to appropriate 

4 State agencies in participating States— 

5 ‘‘(1) to carry out the program; and 

6 ‘‘(2) to provide technical assistance to local gov7 ernmental entities for any activity relating to forest 

8 stewardship, including the development and imple9 mentation of an approved forest management plan. 

10 ‘‘(j) EFFECT.— 

11 ‘‘(1) RECOGNITION OF AUTHORITY TO CONTROL

12 LAND USE.—Nothing in this section modifies the au13 thority of a Federal, State, or local government to 

14 regulate land use. 

15 ‘‘(2) PARTICIPATION OF PRIVATE PROPERTY

16 OWNERS.—Nothing in this section requires the 

17 owner of any private property to participate in the 

18 program. 

19 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated such sums as are nec21 essary to carry out this section.’’. 

22 SEC. 6002. DEVELOPMENT OF NATIONAL PRIORITIES AND 

23 STATE FOREST PLANS. 

24 The Cooperative Forestry Assistance Act of 1978 is 

25 amended— 

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1 (1) by redesignating section 20 (16 U.S.C. 

2 2114) as section 21; and 

3 (2) by inserting after section 19 (16 U.S.C. 

4 2113) the following: 

5 ‘‘SEC. 20. DEVELOPMENT OF NATIONAL PRIORITIES AND 

6 STATE FOREST PLANS. 

7 ‘‘(a) NATIONAL PRIORITIES.—Not later than 1 year 

8 after the date of enactment of this section, the Secretary, 

9 in coordination with appropriate Federal agencies, shall 

10 develop national priorities for the conservation of the pri11 vately owned forest land of the United States that include 

12 a description of— 

13 ‘‘(1) the most pressing threats to the sustain14 ability, management, and conservation of the pri15 vately owned forest land of the United States; and 

16 ‘‘(2) the expected roles of Federal agencies and 

17 the conservation and forest programs of the Depart18 ment of Agriculture in partnering with States and 

19 private landowners to address identified threats to 

20 the privately owned forest land of the United States. 

21 ‘‘(b) STATE FOREST PLANS.—Not later than 3 years 

22 after the date of enactment of this section, the State for23 ester of each State, in consultation with stakeholders, con24 servationists, wildlife agencies, and other appropriate 

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1 agencies of the State of the State forester, shall develop 

2 a State forest plan that includes a description of— 

3 ‘‘(1) threats to the sustainability, management, 

4 and conservation of privately owned forest land of 

5 the State, with particular emphasis on any threat 

6 that is— 

7 ‘‘(A) included in the national priorities de8 veloped by the Secretary, in coordination with 

9 appropriate Federal agencies, under subsection 

10 (a); and 

11 ‘‘(B) relevant to the State for which the 

12 State forest plan is developed; 

13 ‘‘(2) goals and strategies— 

14 ‘‘(A) to address any identified threat to the 

15 privately owned forest land of the State; and 

16 ‘‘(B) to maintain the productivity and ca17 pacity of forest resources in the State, including 

18 the means by which the coordinated application 

19 of the conservation and forest programs of the 

20 Department of Agriculture could address rel21 evant threats and support private landowners; 

22 and 

23 ‘‘(3) a program to monitor and measure any 

24 progress made by the Federal Government and the 

25 States toward reaching each goal and implementing 

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1 each strategy included in the State forest plan devel2 oped under this section. 

3 ‘‘(c) APPROPRIATIONS.—There is authorized to be 

4 appropriated to carry out this section $10,000,000 for 

5 each of fiscal years 2008 through 2010.’’. 

6 Subtitle B—Healthy Forests 

7 Restoration Act of 2003 

8 SEC. 6011. HEALTHY FORESTS RESERVE PROGRAM. 

9 (a) METHODS OF ENROLLMENT.—Section 502(f)(1) 

10 of the Healthy Forests Restoration Act of 2003 (16 

11 U.S.C. 6572(f)(1)) is amended by striking subparagraph 

12 (C) and inserting the following: 

13 ‘‘(C) a permanent easement.’’. 

14 (b) FUNDING.—Section 508 of the Healthy Forests 

15 Restoration Act of 2003 (16 U.S.C. 6578) is amended to 

16 read as follows: 

17 ‘‘SEC. 508. FUNDING FOR HEALTHY FORESTS RESERVE 

18 PROGRAM. 

19 ‘‘(a) FUNDING.— 

20 ‘‘(1) IN GENERAL.—On October 1, 2007, and 

21 on each October 1 thereafter through October 1, 

22 2013, out of any funds in the Treasury not other23 wise appropriated, the Secretary of the Treasury 

24 shall transfer to the Secretary of Agriculture to 

25 carry out this title $50,000,000. 

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1 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec2 retary shall be entitled to receive, shall accept, and 

3 shall use to carry out this title the funds transferred 

4 under paragraph (1), without further appropriation. 

5 ‘‘(b) SECTION 11 CAP.—The use of Commodity Cred6 it Corporation funds under subsection (a) to provide tech7 nical assistance under the healthy forests reserve program 

8 shall not be considered an allotment or fund transfer from 

9 the Commodity Credit Corporation for purposes of the 

10 limitation on expenditures for technical assistance imposed 

11 by section 11 of the Commodity Credit Corporation Char12 ter Act (15 U.S.C. 714i).’’. 

13 TITLE VII—ENERGY 

14 SEC. 7001. DEFINITION OF BIOMASS. 

15 Section 9001(3)(B)(i) of the Farm Security and 

16 Rural Investment Act of 2002 (7 U.S.C. 8101(3)(B)(i)) 

17 is amended by inserting ‘‘and crop waste’’ after ‘‘agricul18 tural crops’’. 

19 SEC. 7002. FEDERAL PROCUREMENT OF BIOBASED PROD20 UCTS. 

21 Section 9002(k)(2)(A) of the Farm Security and 

22 Rural Investment Act of 2002 (7 U.S.C. 8102(k)(2)(A)) 

23 is amended by striking‘‘$1,000,000 for each of fiscal years 

24 2002 through 2007’’ and inserting ‘‘$10,000,000 for each 

25 of fiscal years 2008 through 2013’’. 

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1 SEC. 7003. BIOREFINERY DEVELOPMENT GRANTS. 

2 Section 9003 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 8103) is amended by striking 

4 subsection (h) and inserting the following: 

5 ‘‘(h) FUNDING.—Of the funds of the Commodity 

6 Credit Corporation, the Secretary shall use to carry out 

7 this section $100,000,000 for each of fiscal years 2008 

8 through 2013, to remain available until expended.’’. 

9 SEC. 7004. ENERGY AUDIT AND RENEWABLE ENERGY DE10 VELOPMENT PROGRAM. 

11 Section 9005 of the Farm Security and Rural Invest12 ment Act of 2002 (7 U.S.C. 8105) is amended by striking 

13 subsection (i) and inserting the following: 

14 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to carry out this section 

16 $25,000,000 for each of fiscal years 2008 through 2013.’’. 

17 SEC. 7005. RENEWABLE ENERGY SYSTEMS AND ENERGY EF18 FICIENCY IMPROVEMENTS. 

19 Section 9006 of the Farm Security and Rural Invest20 ment Act of 2002 (7 U.S.C. 8106) is amended— 

21 (1) in subsection (c), by adding at the end the 

22 following: 

23 ‘‘(3) PRIORITY.—In making loans and grants 

24 under this section, the Secretary shall give priority 

25 to activities that, as determined by the Secretary— 

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1 ‘‘(A) are undertaken jointly by more than 

2 1 eligible entity in a local community; 

3 ‘‘(B) involve direct cooperation between 2 

4 or more eligible entities; or 

5 ‘‘(C) otherwise foster community or coop6 erative approaches to renewable energy and en7 ergy efficiency development.’’; 

8 (2) by striking subsection (f); 

9 (3) by redesignating subsection (e) as sub10 section (f); 

11 (4) by inserting after subsection (d) the fol12 lowing: 

13 ‘‘(e) PRODUCTION-BASED INCENTIVE IN LIEU OF

14 GRANT.— 

15 ‘‘(1) IN GENERAL.—In addition to the authority 

16 under subsection (a), to encourage the production of 

17 electricity from renewable energy systems, the Sec18 retary shall, on the request of an eligible applicant 

19 under this section, make production-based payments 

20 to the applicant in lieu of a grant. 

21 ‘‘(2) CONTINGENCY.—Payments under para22 graph (1) shall be contingent on documented energy 

23 production and sales from the renewable energy sys24 tem to a third party. 

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1 ‘‘(3) LIMITATION.—The total net present value 

2 of a production-based incentive may not exceed the 

3 lesser of— 

4 ‘‘(A) 25 percent of the eligible project 

5 costs; and 

6 ‘‘(B) any other limits that the Secretary 

7 establishes by rule or guidance.’’; and 

8 (5) by adding at the end the following: 

9 ‘‘(g) FUNDING.— 

10 ‘‘(1) COMMODITY CREDIT CORPORATION.—Of 

11 the funds of the Commodity Credit Corporation, the 

12 Secretary shall use to carry out this section— 

13 ‘‘(A) $60,000,000 for fiscal year 2008; 

14 ‘‘(B) $90,000,000 for fiscal year 2009; 

15 ‘‘(C) $130,000,000 for fiscal year 2010; 

16 ‘‘(D) $180,000,000 for fiscal year 2011; 

17 and 

18 ‘‘(E) $250,000,000 for each of fiscal years 

19 2012 and 2013. 

20 ‘‘(2) AVAILABILITY OF FUNDS.—Funds made 

21 available under paragraph (1) shall remain available 

22 until expended.’’. 

23 SEC. 7006. BIOMASS RESEARCH AND DEVELOPMENT. 

24 (a) DISTRIBUTION OF FUNDING BY AND WITHIN

25 EACH TECHNICAL AREA.—Section 307(g) of the Biomass 

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1 Research and Development Act of 2000 (7 U.S.C. 

2 8606(g)) is amended in paragraphs (2) and (3) by striking 

3 ‘‘2010’’ each place it appears and inserting ‘‘2013’’. 

4 (b) FUNDING.—Section 310 of the Biomass Research 

5 and Development Act of 2000 (7 U.S.C. 8609) is amend6 ed— 

7 (1) by striking subsection (a) and inserting the 

8 following: 

9 ‘‘(a) FUNDING.—Of the funds of the Commodity 

10 Credit Corporation, the Secretary shall use to carry out 

11 this title $25,000,000 for each of fiscal years 2008 

12 through 2013.’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(c) AVAILABILITY OF FUNDS.—Funds made avail15 able under subsections (a) and (b) shall remain available 

16 until expended.’’. 

17 SEC. 7007. COOPERATIVE RESEARCH AND EXTENSION 

18 PROJECTS. 

19 The Agricultural Risk Protection Act of 2000 is 

20 amended— 

21 (1) in section 221 (7 U.S.C. 6711), by striking 

22 ‘‘2007’’ each place it appears and inserting ‘‘2013’’; 

23 and 

24 (2) by inserting after section 227 (Public Law 

25 106–224; 114 Stat. 409) the following: 

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1 ‘‘SEC. 228. COOPERATIVE RESEARCH AND EXTENSION 

2 PROJECTS FOR CARBON CYCLE, RENEWABLE 

3 ENERGY, AND CLIMATE CHANGE IN THE 

4 NORTHEAST AND MID-ATLANTIC. 

5 ‘‘(a) IN GENERAL.—The Secretary shall use 

6 $15,000,000 to provide grants to the eligible universities 

7 described in subsection (b) for the conduct of research on 

8 carbon cycle, renewable energy, and climate change. 

9 ‘‘(b) ELIGIBLE UNIVERSITIES.—The eligible univer10 sities referred to in subsection (a) are— 

11 ‘‘(1) Cornell University; 

12 ‘‘(2) the University of the District of Columbia; 

13 and 

14 ‘‘(3) public universities in the following States: 

15 ‘‘(A) Connecticut. 

16 ‘‘(B) Delaware. 

17 ‘‘(C) Maine. 

18 ‘‘(D) Maryland. 

19 ‘‘(E) Massachusetts. 

20 ‘‘(F) New Hampshire. 

21 ‘‘(G) New Jersey. 

22 ‘‘(H) New York. 

23 ‘‘(I) Pennsylvania. 

24 ‘‘(J) Rhode Island. 

25 ‘‘(K) Vermont. 

26 ‘‘(L) Virginia. 

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1 ‘‘(c) USE.—The universities described in subsection 

2 (b) shall use funds made available under this section— 

3 ‘‘(1) to conduct research to improve the sci4 entific basis of using land management practices to 

5 increase soil carbon sequestration, including research 

6 on the use of new technologies to increase carbon 

7 cycle effectiveness, such as biotechnology and 

8 nanotechnology; 

9 ‘‘(2) to enter into partnerships to identify, de10 velop, and evaluate agricultural best practices, in11 cluding partnerships between— 

12 ‘‘(A) Federal, State, or private entities; 

13 and 

14 ‘‘(B) the Department of Agriculture; 

15 ‘‘(3) to develop necessary computer models to 

16 predict and assess the carbon cycle; 

17 ‘‘(4) to estimate and develop mechanisms to 

18 measure carbon levels made available as a result 

19 of— 

20 ‘‘(A) voluntary Federal conservation pro21 grams; 

22 ‘‘(B) private and Federal forests; and 

23 ‘‘(C) other land uses; 

24 ‘‘(5) to develop outreach programs, in coordina25 tion with Extension Services, to share information 

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1 on carbon cycle and agricultural best practices that 

2 is useful to agricultural producers; 

3 ‘‘(6) to conduct research on the effects of in4 creased greenhouse gases and global warming on ag5 riculture in the Northeast and Mid-Atlantic regions; 

6 and 

7 ‘‘(7) to conduct studies of the potential for pro8 duction of— 

9 ‘‘(A) ethanol and other biofuels from cel10 lulosic materials produced in the Northeast and 

11 Mid-Atlantic regions; 

12 ‘‘(B) electricity produced from cellulosic 

13 materials produced in the Northeast and Mid14 Atlantic regions; and 

15 ‘‘(C) natural gas produced from agricul16 tural waste and animal waste produced in the 

17 Northeast and Mid-Atlantic regions. 

18 ‘‘(d) ADMINISTRATIVE COSTS.—Not more than 3 

19 percent of the funds made available under subsection (a) 

20 may be used by the Secretary to pay administrative costs 

21 incurred in carrying out this section. 

22 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

23 is authorized to be appropriated to carry out this section 

24 $15,000,000 for each of fiscal years 2008 through 2013.’’. 

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1 SEC. 7008. INDUSTRIAL SITE REDEVELOPMENT THROUGH 

2 CELLULOSIC PROGRAM. 

3 Section 9010 of the Farm Security and Rural Invest4 ment Act of 2002 (7 U.S.C. 8108) is amended— 

5 (1) by striking the section enumerator and the 

6 heading and inserting the following: 

7 ‘‘SEC. 9010. INDUSTRIAL SITE REDEVELOPMENT THROUGH 

8 CELLULOSIC PROGRAM.’’; 

9 (2) in subsection (a)— 

10 (A) by striking paragraph (1); 

11 (B) by redesignating paragraph (2) as 

12 paragraph (1); 

13 (C) by inserting after paragraph (1) (as 

14 redesignated by subparagraph (B)) the fol15 lowing: 

16 ‘‘(2) BIOFUEL.—The term ‘biofuel’ means— 

17 ‘‘(A) biodiesel; 

18 ‘‘(B) fuel grade ethanol; and 

19 ‘‘(C) other liquid transportation fuels.’’; 

20 (D) in paragraph (3)— 

21 (i) by striking subparagraph (A) and 

22 inserting the following: 

23 ‘‘(A) residue and waste material from the 

24 production of agricultural crops (such as wheat 

25 and rice straw, corn stover, sugar bagasse, and 

26 trimmings from fruits and tree nuts);’’; and 

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1 (ii) in subparagraph (D), by striking 

2 ‘‘bioenergy’’ and inserting ‘‘biofuel’’; and 

3 (E) by striking paragraph (4) and insert4 ing the following: 

5 ‘‘(4) ELIGIBLE PRODUCER.—The term ‘eligible 

6 producer’ means a producer that operates an eligible 

7 project. 

8 ‘‘(5) ELIGIBLE PROJECT.—The term ‘eligible 

9 project’ means a project that uses an eligible site for 

10 the industrial production of biofuel directly from an 

11 eligible commodity. 

12 ‘‘(6) ELIGIBLE SITE.— 

13 ‘‘(A) IN GENERAL.—The term ‘eligible site’ 

14 means— 

15 ‘‘(i) an active industrial or processing 

16 facility (such as a distillery, ethanol plant, 

17 or paper mill); or 

18 ‘‘(ii) a site on which an industrial or 

19 processing facility that is no longer in ac20 tive use is located. 

21 ‘‘(B) INCLUSIONS.—The term ‘eligible site’ 

22 includes any land contiguous with and imme23 diately surrounding a facility or site described 

24 in subparagraph (A). 

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1 ‘‘(7) PROGRAM.—The term ‘program’ means 

2 the Industrial Site Redevelopment through Cellulosic 

3 Program established by subsection (b)(1).’’; and 

4 (3) by striking subsections (b) and (c) and in5 serting the following: 

6 ‘‘(b) INDUSTRIAL SITE REDEVELOPMENT THROUGH

7 CELLULOSIC PROGRAM.— 

8 ‘‘(1) ESTABLISHMENT.—There is established in 

9 the Department of Agriculture the Industrial Site 

10 Redevelopment through Cellulosic Program. 

11 ‘‘(2) PURPOSE.—The purpose of the program is 

12 to stimulate the conversion of existing industrial in13 frastructure into advanced cellulosic biofuel produc14 tion facilities to— 

15 ‘‘(A) diversify fuel options; 

16 ‘‘(B) stimulate rural development; and 

17 ‘‘(C) provide new markets for agricultural 

18 goods and byproducts. 

19 ‘‘(3) GRANTS, LOANS, AND LOAN GUARAN20 TEES.— 

21 ‘‘(A) IN GENERAL.—Under the program, 

22 the Secretary may provide grants, loans, and 

23 loan guarantees to eligible producers for— 

24 ‘‘(i) the purchase of equipment for an 

25 eligible project; 

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1 ‘‘(ii) the purchase of construction or 

2 related services for an eligible project; and 

3 ‘‘(iii) the construction of infrastruc4 ture for an eligible project. 

5 ‘‘(B) LIMITATIONS.— 

6 ‘‘(i) GRANTS.—The maximum amount 

7 of a grant provided to any 1 eligible pro8 ducer under subparagraph (A) shall be not 

9 more than $25,000,000. 

10 ‘‘(ii) TOTAL ASSISTANCE.—The total 

11 amount of grants, loans, and loan guaran12 tees provided to any 1 eligible producer 

13 under subparagraph (A) shall be not more 

14 than $50,000,000. 

15 ‘‘(C) MATCHING FUNDS.—An eligible pro16 ducer that receives a grant under the program 

17 shall provide matching funds from non-Federal 

18 sources in an amount that is at least equal to 

19 the amount of the grant. 

20 ‘‘(4) PRODUCER PAYMENTS IN LIEU OF

21 GRANTS.— 

22 ‘‘(A) IN GENERAL.—In lieu of a grant pro23 vided under the program, the Secretary may 

24 make an annual payment to an eligible pro25 ducer that provides up to $2 for each gallon of 

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1 biofuel produced by the eligible producer during 

2 applicable year. 

3 ‘‘(B) LIMITATIONS.— 

4 ‘‘(i) PAYMENTS.—The total amount of 

5 producer payments provided under sub6 paragraph (A) shall be not more than 

7 $25,000,000. 

8 ‘‘(ii) ALL FORMS OF ASSISTANCE.— 

9 The total amount of producer payments, 

10 grants, loans, and loan guarantees pro11 vided to eligible producers under the pro12 gram shall be not more than $50,000,000. 

13 ‘‘(5) OTHER REQUIREMENTS.—To be eligible to 

14 receive a grant, loan, loan guarantee, or payment 

15 under the program, an eligible producer shall meet 

16 other requirements of Federal law (including regula17 tions) applicable to— 

18 ‘‘(A) the production of bioenergy; and 

19 ‘‘(B) the provision of assistance from the 

20 Department of Agriculture. 

21 ‘‘(c) FUNDING.—Of the funds of the Commodity 

22 Credit Corporation, the Secretary shall use to carry out 

23 this section $150,000,000 for each of fiscal years 2008 

24 through 2013, to remain available until expended.’’. 

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1 SEC. 7009. FARM AND RANCH ENERGY EFFICIENCY REBATE 

2 PROGRAM. 

3 (a) DEFINITIONS.—In this section: 

4 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti5 ty’’ means— 

6 (A) a State energy or agriculture office; 

7 (B) a nonprofit State-based energy effi8 ciency or renewable energy organization that 

9 uses public funds provided directly by, or under 

10 contract with, a State agency; 

11 (C) any other nonprofit organization with 

12 a demonstrated ability to administer a state13 wide energy efficiency or renewable energy re14 bate program; or 

15 (D) a consortium of entities described in 

16 subparagraphs (A) through (C). 

17 (2) SECRETARY.—The term ‘‘Secretary’’ means 

18 the Secretary of Agriculture. 

19 (b) GRANTS.—The Secretary shall provide competi20 tive grants to eligible entities to provide rebates to agricul21 tural producers, rural school districts, and rural small 

22 businesses that— 

23 (1) purchase renewable energy systems; or 

24 (2) make energy efficiency improvements. 

25 (c) MERIT REVIEW.— 

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1 (1) IN GENERAL.—The Secretary shall establish 

2 a merit review process to review applications for 

3 grants under this section. 

4 (2) REQUIREMENTS.—In reviewing the applica5 tion of an eligible entity for a grant under this sec6 tion, the Secretary shall consider— 

7 (A) the experience and expertise of the eli8 gible entity in establishing and administering a 

9 statewide clean energy rebate program; 

10 (B) the annual projected energy savings or 

11 production increases from the proposed pro12 gram; 

13 (C) the projected environmental benefits 

14 from the proposed program; and 

15 (D) other appropriate factors, as deter16 mined by the Secretary. 

17 (d) REBATE AMOUNT.—The amount of a rebate pro18 vided from a grant under this section shall not exceed the 

19 lesser of— 

20 (1) $10,000; or 

21 (2) 50 percent of the cost incurred in— 

22 (A) purchasing a renewable energy system; 

23 or 

24 (B) making an energy efficiency improve25 ment. 

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1 (e) MAINTENANCE OF EFFORT.—An eligible entity 

2 that receives a grant under subsection (b) shall provide 

3 assurances to the Secretary that any funds provided to 

4 the entity under this subsection will be used only to sup5 plement, not to supplant, the amount of Federal, State, 

6 and local funds otherwise expended for rebate programs. 

7 (f) FUNDING.—Of the funds of the Commodity Cred8 it Corporation, the Secretary shall use to carry out this 

9 section $10,000,000 for each of fiscal years 2008 through 

10 2013, to remain available until expended. 

11 SEC. 7010. ALTERNATIVE USES FOR BIOFUEL BYPRODUCTS. 

12 (a) DEFINITIONS.—In this section: 

13 (1) BIOENERGY.—The term ‘‘bioenergy’’ means 

14 heat or electricity produced from— 

15 (A) solar panels or concentrators; 

16 (B) wind capturing devices; 

17 (C) small-scale hydroelectric devices; 

18 (D) methane and other biodigesters; 

19 (E) landfill digesters; 

20 (F) biomass; or 

21 (G) waste materials from cropping or live22 stock production. 

23 (2) BIOFUEL.—The term ‘‘biofuel’’ means— 

24 (A) biodiesel; 

25 (B) fuel grade ethanol; and 

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1 (C) other liquid transportation fuels. 

2 (3) BYPRODUCT.—The term ‘‘byproduct’’ in3 cludes— 

4 (A) any solid, gaseous, or liquid matter 

5 produced from the biofuel or bioenergy produc6 tion process that may be converted to food, 

7 feed, fiber, or energy; 

8 (B) unused electricity, energy, or heat pro9 duced from the biofuel or bioenergy production 

10 process; and 

11 (C) unused solid, gaseous, or liquid mate12 rials not consumed during the biofuel or bio13 energy production process. 

14 (4) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Agriculture. 

16 (b) GRANTS.—The Secretary shall provide grants to 

17 the eligible universities described in subsection (b) for the 

18 conduct of research on alternative uses for byproducts pro19 duced from the biofuel or bioenergy production process. 

20 (c) ELIGIBLE UNIVERSITIES.—The eligible univer21 sities referred to in subsection (a) are— 

22 (1) Cornell University; 

23 (2) the University of the District of Columbia; 

24 and 

25 (3) public universities in the following States: 

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1 (A) Connecticut. 

2 (B) Delaware. 

3 (C) Maine. 

4 (D) Maryland. 

5 (E) Massachusetts. 

6 (F) New Hampshire. 

7 (G) New Jersey. 

8 (H) New York. 

9 (I) Pennsylvania. 

10 (J) Rhode Island. 

11 (K) Vermont. 

12 (L) Virginia. 

13 (d) MAXIMUM GRANT AMOUNT.—The amount of a 

14 grant provided to any 1 eligible institution under this sec15 tion for a fiscal year shall not exceed an amount equal 

16 to the lesser of— 

17 (1) $1,000,000; or 

18 (2) 10 percent of the funds made available to 

19 carry out this section for the fiscal year. 

20 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out this section 

22 $10,000,000 for each of fiscal years 2008 through 2013. 

23 SEC. 7011. NATIONAL NET METERING FOR FARM ENERGY. 

24 (a) ADOPTION OF STANDARD.—Section 111(d) of the 

25 Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

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1 2621(d)) is amended by striking paragraph (11) and in2 serting the following: 

3 ‘‘(11) NET METERING.—On the request of any 

4 electric consumer served by an electric utility, the 

5 electric utility shall make available to the electric 

6 consumer net metering as provided in section 

7 115(j).’’. 

8 (b) SPECIAL RULES FOR NET METERING.—Section 

9 115 of the Public Utility Regulatory Policies Act of 1978 

10 (16 U.S.C. 2625) is amended by adding at the end the 

11 following: 

12 ‘‘(j) NET METERING.— 

13 ‘‘(1) DEFINITIONS.—In this subsection: 

14 ‘‘(A) ELIGIBLE ON-SITE GENERATING FA15 CILITY.—The term ‘eligible on-site generating 

16 facility’ means— 

17 ‘‘(i) a facility on the site of a residen18 tial electric consumer with a maximum 

19 generating capacity of 25 kilowatts or less; 

20 and 

21 ‘‘(ii) a facility on the site of a com22 mercial electric consumer with a maximum 

23 generating capacity of 1,000 kilowatts or 

24 less that is fueled solely by a renewable en25 ergy resource. 

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1 ‘‘(B) NET METERING SERVICE.—The term 

2 ‘net metering service’ means service to an elec3 tric consumer, as provided in section 

4 111(d)(11), under which electric energy gen5 erated by that electric consumer from an eligi6 ble on-site generating facility and delivered to 

7 the local distribution facilities may be used to 

8 offset electric energy provided by the electric 

9 utility to the electric consumer during the appli10 cable billing period. 

11 ‘‘(C) RENEWABLE ENERGY RESOURCE.— 

12 The term ‘renewable energy resource’ means— 

13 ‘‘(i) solar, wind, biomass, geothermal, 

14 or wave energy; 

15 ‘‘(ii) landfill gas; 

16 ‘‘(iii) energy produced from livestock 

17 waste; 

18 ‘‘(iv) energy produced from a bio19 digester; 

20 ‘‘(v) fuel cells; and 

21 ‘‘(vi) a combined heat and power sys22 tem. 

23 ‘‘(2) NET METERING SERVICE.—For the pur24 poses of undertaking the consideration and making 

25 the determination with respect to the standard conVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00188 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
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1 cerning net metering established by section 

2 111(d)(11), the term ‘net metering service’ means a 

3 service provided in accordance with this subsection. 

4 ‘‘(3) CHARGES BY AN ELECTRIC UTILITY.—An 

5 electric utility— 

6 ‘‘(A) shall charge the owner or operator of 

7 an on-site generating facility rates and charges 

8 that are identical to those that would be 

9 charged other electric consumers of the electric 

10 utility in the same rate class; and 

11 ‘‘(B) shall not charge the owner or oper12 ator of an on-site generating facility any addi13 tional standby, capacity, interconnection, or 

14 other rate or charge. 

15 ‘‘(4) MEASUREMENT OF QUANTITIES.—An elec16 tric utility that sells electric energy to the owner or 

17 operator of an on-site generating facility shall meas18 ure the quantity of electric energy produced by the 

19 on-site facility and the quantity of electric energy 

20 consumed by the owner or operator of an on-site 

21 generating facility during a billing period in accord22 ance with reasonable metering practices. 

23 ‘‘(5) QUANTITY SOLD IN EXCESS OF QUANTITY

24 SUPPLIED.—If the quantity of electric energy sold 

25 by the electric utility to an on-site generating facility 

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1 exceeds the quantity of electric energy supplied by 

2 the on-site generating facility to the electric utility 

3 during the billing period, the electric utility may bill 

4 the owner or operator for the net quantity of electric 

5 energy sold, in accordance with reasonable metering 

6 practices. 

7 ‘‘(6) QUANTITY SUPPLIED IN EXCESS OF QUAN8 TITY SOLD.—If the quantity of electric energy sup9 plied by the on-site generating facility to the electric 

10 utility exceeds the quantity of electric energy sold by 

11 the electric utility to the on-site generating facility 

12 during the billing period— 

13 ‘‘(A) the electric utility may bill the owner 

14 or operator of the on-site generating facility for 

15 the appropriate charges for the billing period in 

16 accordance with paragraph (5); and 

17 ‘‘(B) the owner or operator of the on-site 

18 generating facility shall be credited for the ex19 cess kilowatt-hours generated during the billing 

20 period with a kilowatt-hour credit appearing on 

21 the bill for the following billing period. 

22 ‘‘(7) COMPLIANCE WITH STANDARDS.—An eligi23 ble on-site generating facility and net metering sys24 tem used by an electric consumer shall meet all ap25 plicable safety, performance, reliability, and interVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
191 

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1 connection standards established by the National 

2 Electrical Code, the Institute of Electrical and Elec3 tronics Engineers, and Underwriters Laboratories. 

4 ‘‘(8) REQUIREMENTS.—The Commission, after 

5 consultation with State regulatory authorities and 

6 unregulated electric utilities, and after notice and 

7 opportunity for comment, may promulgate additional 

8 control and testing requirements for on-site gener9 ating facilities and net metering systems that the 

10 Commission determines are necessary to protect 

11 public safety and system reliability. 

12 ‘‘(9) STATE AUTHORITY.—An electric utility 

13 must provide net metering services to electric con14 sumers until the cumulative generating capacity of 

15 net metering systems equals 10.0 percent of the 

16 peak demand of the utility during the most recent 

17 calendar year. 

18 ‘‘(10) ADDITIONAL STATE REQUIREMENTS.— 

19 Nothing in this subsection precludes a State from 

20 imposing additional requirements regarding the 

21 amount of net metering available within a State con22 sistent with the requirements of this section.’’. 

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1 TITLE VIII—HEALTH DIETS 

2 SEC. 8001. EXPANSION OF FRESH FRUIT AND VEGETABLE 

3 PROGRAM. 

4 Section 18 of the Richard B. Russell National School 

5 Lunch Act (42 U.S.C. 1769) is amended— 

6 (1) in subsection (g)— 

7 (A) in paragraph (1)— 

8 (i) in the matter preceding subpara9 graph (A), by striking ‘‘July 2004’’ and in10 serting ‘‘July 2007’’; and 

11 (ii) by striking subparagraphs (A) and 

12 (B) and inserting the following: 

13 ‘‘(A) 100 elementary schools or secondary 

14 schools in each State; 

15 ‘‘(B) additional elementary schools or sec16 ondary schools in each State, in accordance 

17 with the proportion that— 

18 ‘‘(i) the total student population of 

19 the State; bears to 

20 ‘‘(ii) the total student population of 

21 all States; and’’; 

22 (B) in paragraph (3)(A), by striking 

23 ‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph 

24 (1)’’; 

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1 (C) in subparagraphs (A) and (B) of para2 graph (5) by striking ‘‘2008’’ each place it ap3 pears and inserting ‘‘2011’’; and 

4 (D) in paragraph (6)(B)— 

5 (i) in clause (i)— 

6 (I) by striking ‘‘October 1, 2004’’ 

7 and inserting ‘‘October 1, 2007’’; and 

8 (II) by striking ‘‘$9,000,000’’ 

9 and inserting ‘‘$300,000,000’’; and 

10 (ii) by adding at the end the fol11 lowing: 

12 ‘‘(iii) ADMINISTRATIVE EXPENSES.— 

13 For fiscal year 2008 and each fiscal year 

14 thereafter, of amounts made available to 

15 carry out this subsection, the Secretary 

16 may use not more than 1 percent for ad17 ministrative expenses of carrying out this 

18 subsection. 

19 ‘‘(iv) STATE ADMINISTRATIVE

20 COSTS.— 

21 ‘‘(I) IN GENERAL.—Subject to 

22 subclause (II), for fiscal year 2008 

23 and each fiscal year thereafter, of 

24 amounts made available to a State to 

25 carry out this subsection, the State 

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1 may use not more than 5 percent for 

2 administrative expenses of carrying 

3 out this subsection. 

4 ‘‘(II) REQUIREMENT.—To be eli5 gible to use funds under subclause (I), 

6 a State shall submit to the Secretary 

7 a plan indicating the manner in which 

8 the State intends to use the funds. 

9 ‘‘(v) FEDERAL REQUIREMENTS.—Not 

10 later than 1 year after the date of enact11 ment of this clause, and periodically there12 after as the Secretary determines to be ap13 propriate, the Secretary shall establish re14 quirements for States in administering this 

15 subsection.’’; and 

16 (2) in subsection (i)(2), by striking ‘‘such sums 

17 as are necessary’’ and all that follows through the 

18 period at the end and inserting ‘‘to carry out this 

19 subsection $20,000,000 for each of fiscal years 2008 

20 through 2013.’’. 

21 SEC. 8002. SECTION 32 SPECIALTY CROP PURCHASES. 

22 Section 32 of the Act of August 24, 1935 (7 U.S.C. 

23 612c), is amended— 

24 (1) by redesignating the first through sixth sen25 tences as subsections (a) through (f), respectively; 

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1 (2) by redesignating the seventh and eighth 

2 sentences as subsections (h) and (i), respectively; 

3 and 

4 (3) by inserting after subsection (f) the fol5 lowing: 

6 ‘‘(g) PURCHASE OF AGRICULTURAL COMMODITIES.— 

7 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

8 for each of fiscal years 2008 through 2013, the Sec9 retary shall use not less than $400,000,000 of 

10 amounts made available to carry out this section to 

11 purchase nonbasic agricultural commodities (such as 

12 fruits, vegetables, and other specialty food crops). 

13 ‘‘(2) PURCHASE OF FRESH FRUITS AND VEGE14 TABLES FOR CHILD NUTRITION PROGRAMS.—Of 

15 amounts made available under paragraph (1), the 

16 Secretary shall use for the purchase of fresh fruits 

17 and vegetables for distribution to schools and service 

18 institutions in accordance with section 6(a) of the 

19 Richard B. Russell National School Lunch Act (42 

20 U.S.C. 1755(a)) not less than— 

21 ‘‘(A) $50,000,000 for fiscal year 2008; 

22 ‘‘(B) $75,000,000 for each of fiscal years 

23 2009 and 2010; 

24 ‘‘(C) $100,000,000 for fiscal year 2011; 

25 and 

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1 ‘‘(D) $125,000,000 for each of fiscal years 

2 2012 and 2013.’’. 

3 SEC. 8003. SCHOOL PREFERENCE STUDY. 

4 Section 12 of the Richard B. Russell National School 

5 Lunch Act (42 U.S.C. 1760) is amended by adding at the 

6 end the following: 

7 ‘‘(p) SCHOOL PREFERENCE STUDY.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall carry 

9 out a study of the preferences of elementary schools 

10 and secondary schools for commodity distribution, 

11 including the extent to which the schools prefer com12 modity distribution to include fresh fruits and vege13 tables. 

14 ‘‘(2) REPORT.—The Secretary shall submit to 

15 the Committee on Agriculture of the House of Rep16 resentatives and the Committee on Agriculture, Nu17 trition, and Forestry of the Senate a report on the 

18 results of the study under paragraph (1) that in19 cludes— 

20 ‘‘(A) an analysis of any logistical issue that 

21 would impede efforts to increase the extent to 

22 which commodity distribution to schools in23 cludes the distribution of fresh fruits and vege24 tables; and 

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1 ‘‘(B) recommendations for improving the 

2 availability of fresh fruits and vegetables to 

3 schools.’’. 

4 SEC. 8004. INDEPENDENT EVALUATION OF COMMODITY 

5 PURCHASE PROCESS. 

6 Section 4 of the Agriculture and Consumer Protec7 tion Act of 1973 (7 U.S.C. 612c note; Public Law 93– 

8 86) is amended— 

9 (1) in subsection (a), in the first sentence by 

10 striking ‘‘2007’’ and inserting ‘‘2013’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(d) INDEPENDENT EVALUATION OF COMMODITY

13 PURCHASE PROCESS.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall provide 

15 for an independent evaluation of the process (includ16 ing the statutory and regulatory authority for the 

17 process) by which the Secretary purchases commod18 ities in order to reduce the purchase of surplus com19 modities from the market and to support commodity 

20 prices and producer income— 

21 ‘‘(A) especially with respect to activities 

22 under section 32 of the Act of August 24, 1935 

23 (7 U.S.C. 612c); and 

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1 ‘‘(B) taking into consideration the impor2 tance of increasing purchases of perishable spe3 cialty crops. 

4 ‘‘(2) REPORT.—Not later than 1 year after the 

5 date of enactment of this subsection, the Secretary 

6 shall submit to the Committee on Agriculture of the 

7 House of Representatives and the Committee on Ag8 riculture, Nutrition, and Forestry of the Senate a 

9 report on the results of the evaluation under para10 graph (1).’’. 

11 SEC. 8005. WIC FARMERS’ MARKET NUTRITION PROGRAM. 

12 Section 17(m)(9)(A) of the Child Nutrition Act of 

13 1966 (42 U.S.C. 1786(m)(9)(A)) is amended— 

14 (1) in clause (i), by striking ‘‘2009’’ and insert15 ing ‘‘2013’’; and 

16 (2) by striking clause (ii) and inserting the fol17 lowing: 

18 ‘‘(ii) MANDATORY FUNDING.—Of the 

19 funds of the Commodity Credit Corpora20 tion, the Secretary shall make available to 

21 carry out this subsection, to remain avail22 able until expended— 

23 ‘‘(I) $20,000,000 for fiscal year 

24 2008; 

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1 ‘‘(II) $30,000,000 for fiscal year 

2 2009; 

3 ‘‘(III) $45,000,000 for fiscal year 

4 2010; 

5 ‘‘(IV) $60,000,000 for fiscal year 

6 2011; and 

7 ‘‘(V) not less than $75,000,000 

8 for fiscal year 2012 and each fiscal 

9 year thereafter.’’. 

10 SEC. 8006. SENIORS FARMERS’ MARKET NUTRITION PRO11 GRAM. 

12 Section 4402 of the Farm Security and Rural Invest13 ment Act of 2002 (7 U.S.C. 3007) is amended— 

14 (1) by striking subsection (a) and inserting the 

15 following: 

16 ‘‘(a) ESTABLISHMENT.—Of funds available to the 

17 Commodity Credit Corporation, the Secretary of Agri18 culture (referred to in this section as the ‘Secretary’) shall 

19 use to carry out and expand a seniors farmers’ market 

20 nutrition program— 

21 ‘‘(1) $20,000,000 for fiscal year 2008; 

22 ‘‘(2) $30,000,000 for fiscal year 2009; 

23 ‘‘(3) $45,000,000 for fiscal year 2010; 

24 ‘‘(4) $60,000,000 for fiscal year 2011; and 

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1 ‘‘(5) not less than $75,000,000 for fiscal year 

2 2012 and each fiscal year thereafter.’’; 

3 (2) in subsection (b)— 

4 (A) in paragraph (2), by striking ‘‘and’’ at 

5 the end; 

6 (B) in paragraph (3), by striking the pe7 riod at the end and inserting ‘‘; and’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(4) to promote the transition to organic and 

10 other environmentally beneficial food production sys11 tems.’’; 

12 (3) by redesignating subsection (c) as sub13 section (d); and 

14 (4) by inserting after subsection (b) the fol15 lowing: 

16 ‘‘(c) ELIGIBLE PARTICIPANTS; BENEFITS LEVELS.— 

17 Regulations issued pursuant to subsection (d)— 

18 ‘‘(1) shall allow for participation by participants 

19 in farmers’ markets, roadside stands, and commu20 nity supported agriculture programs; and 

21 ‘‘(2) shall not limit the ability of any State or 

22 regional program to set benefit levels for individual 

23 seniors.’’. 

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1 SEC. 8007. DIRECT-TO-CONSUMER PROMOTION PROGRAM. 

2 Section 6 of the Farmer-to-Consumer Direct Mar3 keting Act of 1976 (7 U.S.C. 3005) is amended by strik4 ing subsections (c) through (e) and inserting the following: 

5 ‘‘(c) ELIGIBILITY.— 

6 ‘‘(1) ELIGIBLE ENTITIES.—An entity shall be 

7 eligible to receive a grant under the Program if the 

8 entity is— 

9 ‘‘(A) 2 or more agricultural producers or 

10 farm vendors that produce and sell products 

11 through a common distribution channel; 

12 ‘‘(B) an agricultural cooperative or pro13 ducer association or network; 

14 ‘‘(C) a local government; 

15 ‘‘(D) a nonprofit corporation; 

16 ‘‘(E) a public benefit corporation; 

17 ‘‘(F) an economic development corporation; 

18 ‘‘(G) a regional farmers’ market authority; 

19 or 

20 ‘‘(H) such other entity as the Secretary 

21 may designate. 

22 ‘‘(2) ELIGIBLE ACTIVITIES.—Eligible direct 

23 farmer-to-consumer activities include— 

24 ‘‘(A) farmers’ markets; 

25 ‘‘(B) roadside stands; 

26 ‘‘(C) community-supported agriculture; 

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1 ‘‘(D) activities to support the use of elec2 tronic benefit transfer systems at farmers’ mar3 kets and other direct market enterprises, if fea4 sible; 

5 ‘‘(E) pick-your-own operations; 

6 ‘‘(F) producer-owned agritourism activities 

7 facilitating the direct sale of agricultural prod8 ucts; 

9 ‘‘(G) related Internet and mail order sales; 

10 and 

11 ‘‘(H) other similar ventures, as determined 

12 by the Secretary. 

13 ‘‘(d) FUNDING.—The Secretary shall use 

14 $25,000,000 of funds of the Commodity Credit Corpora15 tion to carry out this section for each of fiscal years 2008 

16 through 2013, of which not less than 10 percent shall be 

17 used to support the use of electronic benefit transfers at 

18 farmers’ markets.’’. 

19 SEC. 8008. PURCHASES OF LOCALLY PRODUCED FOODS. 

20 (a) FINDINGS.—Congress finds that— 

21 (1) locally produced agricultural products, as 

22 compared to products transported from distant 

23 sources— 

24 (A)(i) are often harvested closer to full 

25 ripeness; and 

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1 (ii) can provide higher nutritional quality; 

2 (B) can provide improved ripeness, taste, 

3 and selection, which can increase rates of con4 sumption of agricultural products; and 

5 (C) are more efficient to store, distribute, 

6 and package; and 

7 (2) use of local produce to carry out nutrition 

8 programs— 

9 (A) reduces dependence on foreign oil by 

10 reducing fuel consumption rates associated with 

11 the production or transportation of agricultural 

12 products; 

13 (B) can improve the ability of users of the 

14 procurement system to provide education relat15 ing to nutrition, farming, sustainability, energy 

16 efficiency, and the importance of local pur17 chases to the local economy; 

18 (C) helps to maintain a robust logistics 

19 network for agricultural product procurement; 

20 and 

21 (D) promotes farm, business, and economic 

22 development by accessing local markets. 

23 (b) PROGRAM IMPROVEMENTS.—Section 9(j) of the 

24 Richard B. Russell National School Lunch Act (42 U.S.C. 

25 1758(j)) is amended— 

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1 (1) in paragraph (1)— 

2 (A) by striking ‘‘IN GENERAL’’ and insert3 ing ‘‘PURCHASES’’; and 

4 (B) by striking subparagraph (A) and in5 serting the following: 

6 ‘‘(A) allow institutions described in para7 graph (3)(A)— 

8 ‘‘(i) to purchase, in addition to other 

9 food purchases, locally produced foods for 

10 school meal programs, to the maximum ex11 tent practicable and appropriate; and 

12 ‘‘(ii) to establish, in compliance with 

13 Federal and State procurement laws (in14 cluding regulations), preapproved suppliers 

15 and product lists that require a com16 prehensive competitive evaluation before a 

17 supplier or product is included on the 

18 list;’’; 

19 (2) by redesignating paragraph (2) as para20 graph (6); 

21 (3) by inserting after paragraph (1) the fol22 lowing: 

23 ‘‘(2) DEPARTMENT OF DEFENSE.—Notwith24 standing any other provision of law, the Secretary of 

25 Defense may elect to use a geographic preference to 

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1 purchase locally produced agricultural products 

2 for— 

3 ‘‘(A) the Defense Supply Center Philadel4 phia; 

5 ‘‘(B) the Department of Defense Farm to 

6 School Program; 

7 ‘‘(C) the Department of Defense Fresh 

8 Fruit and Vegetable Program; 

9 ‘‘(D) the service academies of the Depart10 ment of Defense; 

11 ‘‘(E) Department of Defense domestic de12 pendent schools; 

13 ‘‘(F) other Department of Defense schools 

14 under chapter 108 of title 10, United States 

15 Code; 

16 ‘‘(G) commissary and exchange stores of 

17 the Department of Defense; and 

18 ‘‘(H) morale, welfare, and recreation facili19 ties operated by the Department of Defense. 

20 ‘‘(3) DEPARTMENT OF AGRICULTURE AND RE21 LATED ENTITIES.— 

22 ‘‘(A) IN GENERAL.—Notwithstanding any 

23 other provision of law, the Secretary or the 

24 head of any school, local educational agency, or 

25 other entity, as applicable, may elect to use a 

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1 geographic preference to purchase locally pro2 duced agricultural products for— 

3 ‘‘(i) the school breakfast program es4 tablished by section 4 of the Child Nutri5 tion Act of 1966 (42 U.S.C. 1773); 

6 ‘‘(ii) the school lunch program estab7 lished under this Act; 

8 ‘‘(iii) the summer food service pro9 gram for children established under section 

10 13; and 

11 ‘‘(iv) the child and adult care food 

12 program established under section 17. 

13 ‘‘(B) REPORT.—The head of any school, 

14 local educational agency, or other entity partici15 pating in a program described in subparagraph 

16 (A) that makes an election under that subpara17 graph shall submit to the Secretary a report de18 scribing any case in which the school, local edu19 cational agency, or other entity pays an amount 

20 in excess of an amount equal to 10 percent 

21 more than the lowest applicable bid to purchase 

22 locally produced agricultural products. 

23 ‘‘(4) TREATMENT OF CERTAIN BIDS.— 

24 ‘‘(A) IN GENERAL.—On making an election 

25 under paragraph (2) or (3), the Secretary, the 

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1 Secretary of Defense, or the head of any school, 

2 local educational agency, or other entity partici3 pating in a program described in paragraph 

4 (3)(A) may— 

5 ‘‘(i) include in the text of any bid a 

6 description of the election; 

7 ‘‘(ii) select any bid involving a locally 

8 produced agricultural product, regardless 

9 of whether the bid is the lowest bid relat10 ing to the agricultural product; and 

11 ‘‘(iii) subject to subparagraph (B), ac12 quire agricultural products from 

13 preapproved local and regional vendors and 

14 distributors authorized by the Secretary 

15 that have agreed to supply eligible prod16 ucts to the above referenced schools and 

17 service institutions. 

18 ‘‘(B) REQUIREMENTS.—To be eligible to 

19 be preapproved by the Secretary a vendor or 

20 distributor described in subparagraph (A)(iii) 

21 shall— 

22 ‘‘(i) demonstrate an ability to supply 

23 agricultural products from local growers 

24 and processors; 

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1 ‘‘(ii) comply with food safety stand2 ards developed by the Secretary; and 

3 ‘‘(iii) consistently provide agricultural 

4 products that meet standards of grade, 

5 size, freshness, and quality as required by 

6 the Secretary or local procurement officer. 

7 ‘‘(C) RELATION TO STATE PROCUREMENT

8 LAWS.—Nothing in this paragraph precludes a 

9 school or service institution described in sub10 paragraph (A) from purchasing agricultural 

11 products from potential local farmers in compli12 ance with applicable State procurement laws. 

13 ‘‘(5) REVIEW.—The Secretary and the Sec14 retary of Defense shall periodically review each elec15 tion to use a geographic preference under this sub16 section to prevent fraud or abuse.’’; and 

17 (4) in paragraph (6)(A) (as redesignated by 

18 paragraph (2)), by striking ‘‘2009’’ and inserting 

19 ‘‘2013’’. 

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1 TITLE IX—MISCELLANEOUS 

2 Subtitle A—Organic Agriculture 

3 SEC. 9001. NATIONAL ORGANIC CERTIFICATION COST4 SHARE PROGRAM. 

5 (a) IN GENERAL.—Section 2104 of the Organic 

6 Foods Production Act of 1990 (7 U.S.C. 6503) is amend7 ed— 

8 (1) in subsection (d)— 

9 (A) the first sentence, by striking ‘‘The 

10 Secretary’’ and inserting the following: 

11 ‘‘(1) IN GENERAL.—The Secretary’’; 

12 (B) in the second sentence, by striking 

13 ‘‘Such certifying agents’’ and inserting the fol14 lowing: 

15 ‘‘(2) REQUIREMENTS.—Certifying agents’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(3) NATIONAL ORGANIC CERTIFICATION COST18 SHARE PROGRAM.— 

19 ‘‘(A) IN GENERAL.—The Secretary, acting 

20 through the Director of the Natural Resources 

21 Conservation Service, shall establish a national 

22 organic certification cost-share program in each 

23 State to assist producers and handlers in the 

24 State in obtaining certification under this sub25 section. 

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1 ‘‘(B) FEDERAL SHARE.— 

2 ‘‘(i) IN GENERAL.—Subject to clause 

3 (ii), the Secretary shall pay to each pro4 ducer or handler participating in the pro5 gram under this paragraph an amount 

6 equal to 75 percent of the costs incurred 

7 by the producer or handler in obtaining 

8 certification under this subsection, as cer9 tified to and approved by the Secretary. 

10 ‘‘(ii) MAXIMUM AMOUNT OF PAY11 MENT.—The maximum amount of a pay12 ment made to a producer or handler under 

13 this paragraph for a fiscal year shall be 

14 $750. 

15 ‘‘(C) FUNDING.— 

16 ‘‘(i) IN GENERAL.—Not later than 30 

17 days after the date of enactment of this 

18 paragraph, on October 1, 2007, and on 

19 each October 1 thereafter through October 

20 1, 2012, out of any funds in the Treasury 

21 not otherwise appropriated, the Secretary 

22 of the Treasury shall transfer to the Sec23 retary to carry out this section $2,500,000, 

24 to remain available until expended. 

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1 ‘‘(ii) RECEIPT AND ACCEPTANCE.— 

2 The Secretary shall be entitled to receive, 

3 shall accept, and shall use to carry out this 

4 section the funds transferred under para5 graph (1), without further appropriation.’’; 

6 and 

7 (2) by adding at the end the following: 

8 ‘‘(e) REIMBURSEMENTS FOR INFRASTRUCTURE NEC9 ESSARY TO IMPLEMENT ORGANIC PRACTICE STAND10 ARDS.— 

11 ‘‘(1) ESTABLISHMENT.—The Secretary, acting 

12 through the Director of the Natural Resources Con13 servation Service, shall establish a program to reim14 burse producers for the costs of— 

15 ‘‘(A) transitioning to organic food produc16 tion; and 

17 ‘‘(B) developing and implementing infra18 structure and practices necessary to transition 

19 land and animals to meet the requirements of 

20 this title. 

21 ‘‘(2) PLAN SUBMISSION.—The Secretary may 

22 reimburse a producer under this subsection only if 

23 the producer submits to the Secretary an organic 

24 transition plan that contains a description of— 

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1 ‘‘(A) the expected costs of obtaining and 

2 implementing necessary infrastructure and 

3 practices; 

4 ‘‘(B) the environmental and economic ben5 efits derived from the infrastructure or imple6 mentation of organic practice standards; and 

7 ‘‘(C) an existing market or the reasonable 

8 expectation of a future market for the products 

9 the producer intends to produce. 

10 ‘‘(3) APPROPRIATE INFRASTRUCTURE AND

11 PRACTICE STANDARDS.—The Secretary shall reim12 burse producers under this subsection only for the 

13 costs of— 

14 ‘‘(A) obtaining farm infrastructure nec15 essary to implement organic practice standards 

16 (including livestock watering facilities, fencing, 

17 and organic pest and weed control measures), 

18 on the condition that the infrastructure is con19 sistent with an approved plan to transition to 

20 certified organic production; 

21 ‘‘(B) implementing organic livestock wel22 fare measures, on the condition that the meas23 ures are— 

24 ‘‘(i) necessary to implement an or25 ganic practice standard; and 

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1 ‘‘(ii) consistent with an approved plan 

2 to transition to certified organic produc3 tion; 

4 ‘‘(C) carrying out advanced organic prac5 tices, on the condition that the practices are 

6 consistent with an approved plan to transition 

7 to certified organic production; 

8 ‘‘(D) obtaining technical assistance, includ9 ing the costs of developing an approved transi10 tion plan under this section; and 

11 ‘‘(E) carrying out such other projects and 

12 activities as the Secretary, after consultation 

13 with the National Organic Standards Board, 

14 determines to be appropriate. 

15 ‘‘(4) ORGANIC TRANSITION TECHNICAL AD16 VICE.—The Secretary shall consult with the Na17 tional Organic Standards Board with respect to— 

18 ‘‘(A) the elements required to be included 

19 in a plan approved under this subsection; and 

20 ‘‘(B) the identification and recommenda21 tion of ways to facilitate the transition to or22 ganic production. 

23 ‘‘(5) MAXIMUM AMOUNT FOR TRANSITION RE24 IMBURSEMENT.—The maximum amount of reim25 bursement paid to a producer for transition to orVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00213 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
214 

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1 ganic production under this subsection shall be 

2 $10,000 for each fiscal year. 

3 ‘‘(6) ELIGIBLE FISCAL YEARS.—A producer 

4 may receive payments under this subsection for a 

5 period of not more than 4 consecutive fiscal years. 

6 ‘‘(7) TRANSITION REIMBURSEMENTS FOR OR7 GANIC PRODUCERS.—A certified organic producer 

8 participating in the national organic program under 

9 this title shall be eligible to receive reimbursement 

10 under this subsection to make the transition to or11 ganic production for new land and livestock. 

12 ‘‘(8) LIMITATION ON REIMBURSEMENTS.—The 

13 Secretary shall not enroll a producer under this sub14 section if, for any particular agricultural product, 

15 the producers currently enrolled in the program 

16 produce a quantity of that agricultural product that 

17 is greater than 10 percent of the quantity of that 

18 agricultural product produced by all producers cer19 tified under this title on the date of enactment of 

20 this subsection. 

21 ‘‘(9) APPEALS.—An applicant seeking transi22 tion assistance under this subsection shall have the 

23 right to appeal an adverse decision by Secretary with 

24 regard to an application for assistance in accordance 

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1 with section 275 of the Department of Agriculture 

2 Reorganization Act of 1994 (7 U.S.C. 6995). 

3 ‘‘(f) TECHNICAL ASSISTANCE.—The Secretary may 

4 provide technical assistance to producers to carry out sub5 sections (d) and (e), including for use in entering into co6 operative agreements with qualified entities under sub7 section (e) to implement the transition to organic produc8 tion. 

9 ‘‘(g) REPORTING.—Not later than the first March 1 

10 following the date of enactment of this subsection, and an11 nually thereafter, the Secretary shall submit to the Com12 mittee on Agriculture of the House of Representatives, the 

13 Committee on Agriculture, Nutrition, and Forestry of the 

14 Senate, and the National Organic Standards Board a re15 port that describes— 

16 ‘‘(1) State-by-State expenditures on certifi17 cation under subsection (d), including the number of 

18 producers and handlers served by the program under 

19 that subsection; 

20 ‘‘(2) State-by-State expenditures on transition 

21 assistance under subsection (e), including the num22 ber of producers served by the program under that 

23 subsection; 

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1 ‘‘(3) the practices implemented under sub2 section (e) as a result of assistance provided under 

3 that subsection; and 

4 ‘‘(4) the effects of the programs under sub5 sections (d) and (e) on organic food production, in6 cluding any recommendations for reforms. 

7 ‘‘(h) FUNDING.— 

8 ‘‘(1) IN GENERAL.—Not later than 30 days 

9 after the date of enactment of this subsection, on 

10 October 1, 2007, and on each October 1 thereafter 

11 through October 1, 2012, out of any funds in the 

12 Treasury not otherwise appropriated, the Secretary 

13 of the Treasury shall transfer to the Secretary to 

14 carry out this section $35,000,000, to remain avail15 able until expended. 

16 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec17 retary shall be entitled to receive, shall accept, and 

18 shall use to carry out this section the funds trans19 ferred under paragraph (1), without further appro20 priation.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 2103 of the Organic Foods Produc23 tion Act of 1990 (7 U.S.C. 6502) is amended— 

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1 (A) by redesignating paragraphs (20) and 

2 (21) as paragraphs (21) and (22), respectively; 

3 and 

4 (B) by inserting after paragraph (19) the 

5 following: 

6 ‘‘(20) STATE.—The term ‘State’ means— 

7 ‘‘(A) a State; 

8 ‘‘(B) the District of Columbia; 

9 ‘‘(C) the Commonwealth of Puerto Rico; 

10 and 

11 ‘‘(D) any other territory or possession of 

12 the United States.’’. 

13 (2) Section 10606 of the Farm Security and 

14 Rural Investment Act of 2002 (7 U.S.C. 6523) is re15 pealed. 

16 Subtitle B—Crop Insurance 

17 SEC. 9011. PROVISION OF ORGANIC INSURANCE PRO18 GRAMS. 

19 (a) EXPECTED MARKET PRICE.—Section 

20 508(c)(5)(C) of the Federal Crop Insurance Act (7 U.S.C. 

21 1508(c)(5)(C)) is amended— 

22 (1) in clause (iii), by striking ‘‘or’’ at the end; 

23 (2) in clause (iv), by striking the period at the 

24 end and inserting ‘‘; or’’; and 

25 (3) by adding at the end the following: 

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1 ‘‘(v) not later than October 1, 2009, 

2 in the case of organic commodities, shall be 

3 the expected or the actual organic market 

4 price of the agricultural commodity, as de5 termined by the Corporation.’’. 

6 (b) SURCHARGE PROHIBITION.—Section 508(d) of 

7 the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is 

8 amended by adding at the end the following: 

9 ‘‘(4) SURCHARGE PROHIBITION.—The Corpora10 tion may not require producers to pay a premium 

11 surcharge for using scientifically-sound, sustainable, 

12 and organic farming practices and systems.’’. 

13 SEC. 9012. COVERAGE AREA FLEXIBILITY. 

14 Section 508(a) of the Federal Crop Insurance Act (7 

15 U.S.C. 1508(a)) is amended by adding at the end the fol16 lowing: 

17 ‘‘(9) COVERAGE AREA FLEXIBILITY.—Notwith18 standing any other provision of this title, in pro19 viding insurance under this title, the Corporation 

20 shall provide flexibility to producers to separate in21 surance units for each Farm Service Agency tract or 

22 to use section equivalents where mile-square section 

23 surveys are not in effect.’’. 

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1 SEC. 9013. CROP INSURANCE INCENTIVES FOR BEGINNING 

2 FARMERS AND RANCHERS. 

3 Section 508(e) of the Federal Crop Insurance Act (7 

4 U.S.C. 1508(e)) is amended— 

5 (1) in paragraph (2), in the matter before sub6 paragraph (A), by striking ‘‘paragraph (4)’’ and in7 serting ‘‘paragraphs (4) and (6)’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(6) BEGINNING FARMERS AND RANCHERS.— 

10 ‘‘(A) IN GENERAL.—The percentage of the 

11 premium paid by the Corporation under sub12 paragraphs (B) through (G) of paragraph (2), 

13 shall be increased by 50 percent for a beginning 

14 farmer or rancher (as defined in section 

15 7405(a) of the Farm Security and Rural In16 vestment Act of 2002 (7 U.S.C. 3319f(a))) dur17 ing the first year of farming or ranching oper18 ations. 

19 ‘‘(B) SUBSEQUENT YEARS.—For each of 

20 the 5 years subsequent to the first year of 

21 farming or ranching, the percentage of the pre22 mium calculated in accordance with subpara23 graph (A) shall be decreased by 10 percent.’’. 

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1 SEC. 9014. CROP INSURANCE APPEALS FOR DENIAL OF 

2 CLAIMS. 

3 Section 508(j)(2) of the Federal Crop Insurance Act 

4 (7 U.S.C. 1508(j)(2)) is amended— 

5 (1) in subparagraph (A)— 

6 (A) by striking ‘‘subparagraph (B)’’ and 

7 inserting ‘‘subparagraphs (B) and (C)’’; and 

8 (B) by striking ‘‘only’’; 

9 (2) by adding at the end the following: 

10 ‘‘(C) ALTERNATIVE CLAIMS PROCEDURE.— 

11 The Secretary shall establish alternative claims 

12 procedures— 

13 ‘‘(i) under which the Corporation, or 

14 an approved insurance provider, can settle 

15 appeals for denied claims; and 

16 ‘‘(ii) that uses the State committee of 

17 the Farm Service Agency as a third-party 

18 arbiter.’’. 

19 SEC. 9015. EXPANDED COVERAGE BASED ON HISTORICAL 

20 DATA. 

21 Section 522(d)(3) of the Federal Crop Insurance Act 

22 (7 U.S.C. 1522(d)(3)) is amended— 

23 (1) in subparagraph (F), by striking ‘‘and’’ at 

24 the end; 

25 (2) in subparagraph (G), by striking the period 

26 at the end and inserting ‘‘; and’’; and 

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1 (3) by adding at the end the following: 

2 ‘‘(H) to develop policies or other risk man3 agement tools that provide protection for all 

4 crops or commodities produced commercially 

5 within each county, using the historical produc6 tion of the producers as the basis for protec7 tion.’’. 

8 SEC. 9016. REAUTHORIZATION, EXPANSION, AND IMPROVE9 MENT OF ADJUSTED GROSS REVENUE INSUR10 ANCE PILOT PROGRAM. 

11 (a) REAUTHORIZATION.—Section 523(e)(1) of the 

12 Federal Crop Insurance Act (7 U.S.C. 1523(e)(1)) is 

13 amended by striking ‘‘2004 reinsurance year’’ and insert14 ing ‘‘2013 reinsurance year’’. 

15 (b) EXPANSION.—Section 523(e)(2)(A) of the Fed16 eral Crop Insurance Act (7 U.S.C. 1523(e)(2)(A)) is 

17 amended by striking ‘‘the Corporation’’ and all that fol18 lows through ‘‘Pennsylvania’’and inserting ‘‘the Corpora19 tion shall include in the adjusted gross revenue insurance 

20 pilot programs for each of the 2008 through 2013 reinsur21 ance years all counties and States that meet the criteria 

22 for selection.’’. 

23 (c) SPECIFIC POLICY IMPROVEMENTS.—Section 

24 523(e) of the Federal Crop Insurance Act (7 U.S.C. 

25 1523(e)) is amended by adding at the end the following: 

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1 ‘‘(3) SPECIFIC REQUIREMENTS.—In carrying 

2 out the pilot program under this subsection, the 

3 Corporation shall, to the maximum extent prac4 ticable— 

5 ‘‘(A) offer higher coverage levels, including 

6 an 85 percent coverage level with an 100 per7 cent payment rate; 

8 ‘‘(B) in order to maintain adequate cov9 erage levels during low income years, provide a 

10 10-percent floor to declines in the 5-year in11 come history of a producer, which is used to de12 termine coverage levels; 

13 ‘‘(C) include crop insurance payments and 

14 noninsured crop disaster assistance as allowable 

15 income in the 5-year average income history of 

16 a producer, used in determining premium rates; 

17 ‘‘(D) conduct additional analysis to more 

18 accurately reflect the risk of producing dairy 

19 and livestock; 

20 ‘‘(E) provide clear and accurate informa21 tion regarding the coverage and inventory rules 

22 for commodities with carryover inventory, in23 cluding Christmas trees, shellfish, nursery 

24 crops, and livestock; 

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1 ‘‘(F) include the perils of quarantine and 

2 bio-terrorism as insurable causes of loss; 

3 ‘‘(G) establish local market value for direct 

4 marketers by using the best available estimate 

5 from direct marketers rather than commercial 

6 buyers; 

7 ‘‘(H) require that the value for estimating 

8 the revenue for the intention report of pro9 ducers for the current year be determined at 

10 the time the intentions report is filed; and 

11 ‘‘(I) provide coverage levels that accurately 

12 reflect the risk of a producer under conditions 

13 of increasing intended revenue. 

14 ‘‘(4) EXCLUSION FROM INCOME REQUIRE15 MENT.—Effective beginning on the date of enact16 ment of this paragraph, the Corporation shall elimi17 nate any single crop income requirement that ex18 cludes potatoes from the pilot program. 

19 ‘‘(5) COVERED ANIMALS.—Effective beginning 

20 on the date of enactment of this paragraph, the Cor21 poration shall revise the definition of ‘animals’ that 

22 are eligible for coverage under the pilot program to 

23 ensure that the definition includes— 

24 ‘‘(A) animals in production agriculture; 

224 

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1 ‘‘(B) fryers and shellfish from licensed 

2 commercial producers under the local approving 

3 authority in a certified growing area; and 

4 ‘‘(C) livestock grown under contract, if the 

5 producer can demonstrate an insurable interest 

6 in the livestock. 

7 ‘‘(6) BEGINNING FARMERS AND RANCHERS.— 

8 The Corporation shall provide opportunities for be9 ginning farmers and ranchers (as defined in section 

10 7405(a) of the Farm Security and Rural Investment 

11 Act of 2002 (7 U.S.C. 3319f(a))) to participate in 

12 the adjusted gross revenue insurance pilot program, 

13 including by providing premium rates to be estab14 lished based on the historical information of similar 

15 farms and ranches. 

16 ‘‘(7) SMALL FARMERS AND RANCHERS.—The 

17 Corporation shall develop a small farm revenue as18 surance pilot program to provide small farmers and 

19 ranchers (as defined by the Secretary) with access to 

20 streamlined, reasonably-priced risk management 

21 products. 

22 ‘‘(8) EQUITABLE TREATMENT OF ALL INCOME

23 TAX FILERS.—The Corporation shall revise program 

24 requirements to ensure that producers that have a 

25 taxable year other than the calendar year are treated 

225 

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1 equitably to calendar year tax filers, including re2 quirements for— 

3 ‘‘(A) payment of premiums during or after 

4 the insurance year; and 

5 ‘‘(B) multiple years of the intention report 

6 of a producer. 

7 ‘‘(9) COMMODITIES PRODUCED FOR FEED.— 

8 The Corporation shall revise program requirements 

9 to include commodities produced for on-farm feed as 

10 an intended commodity.’’. 

11 SEC. 9017. AGRICULTURAL MANAGEMENT ASSISTANCE 

12 PROGRAM. 

13 Section 524(b)(4)(B)) of the Federal Crop Insurance 

14 Act (7 U.S.C. 1524(b)(4)(B)) is amended— 

15 (1) in clause (ii)— 

16 (A) by striking ‘‘fiscal years 2003 through 

17 2007’’ and inserting ‘‘fiscal years 2008 through 

18 2013’’; and 

19 (B) by striking ‘‘$20,000,000’’ and insert20 ing ‘‘$40,000,000’’; and 

21 (2) in clause (iii)— 

22 (A) by striking ‘‘fiscal years 2004 through 

23 2007’’ and inserting ‘‘fiscal years 2008 through 

24 2013’’; 

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1 (B) in subclause (I), by striking 

2 ‘‘$14,000,000’’ and inserting ‘‘$19,000,000’’; 

3 (C) in subclause (II), by striking 

4 ‘‘$1,000,000’’ and inserting ‘‘$2,000,000’’; and 

5 (D) in subclause (III), by striking 

6 ‘‘$5,000,000’’ and inserting ‘‘$19,000,000’’. 

7 SEC. 9018. EDUCATION AND RISK MANAGEMENT ASSIST8 ANCE. 

9 Section 524(a)(3)(C) of the Federal Crop Insurance 

10 Act (7 U.S.C. 1524(a)(3)(C)) is amended by striking ‘‘2- 

11 year’’ and inserting ‘‘3-year’’. 

12 Subtitle C—General Provisions 

13 SEC. 9021. COLONY COLLAPSE DISORDER. 

14 The Secretary, acting through the Administrator of 

15 the Agricultural Research Service, shall use not less than 

16 $250,000,000 during the 10-year period beginning on the 

17 date of enactment of this Act to carry out a study of hon18 eybees and the 1 or more causes of colony collapse dis19 order. 

20 SEC. 9022. 100-PERCENT EXCLUSION OF GAIN ON SALES OF 

21 CONSERVATION EASEMENTS ON FARMLAND 

22 TO ELIGIBLE ENTITIES FOR CONSERVATION 

23 PURPOSES. 

24 (a) IN GENERAL.—Part I of subchapter P of chapter 

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1 ment of capital gains) is amended by adding at the end 

2 the following new section: 

3 ‘‘SEC. 1203. 100-PERCENT EXCLUSION OF GAIN ON SALES OF 

4 CONSERVATION EASEMENTS ON FARMLAND 

5 TO ELIGIBLE ENTITIES FOR CONSERVATION 

6 PURPOSES. 

7 ‘‘(a) EXCLUSION.—Gross income shall not include 

8 100 percent of any gain from the sale of any conservation 

9 easement that is evidenced by a permanent deed restric10 tion and that requires that the eligible farmland subject 

11 to the deed restriction be made available for agricultural 

12 production if such eligible farmland was owned by the tax13 payer or a member of the taxpayer’s family (as defined 

14 in section 2032A(e)(2)) at all times during the 3-year pe15 riod ending on the date of the sale. 

16 ‘‘(b) ELIGIBLE ENTITY.—For purposes of this sec17 tion, the term ‘eligible entity’ means— 

18 ‘‘(1) any agency of the United States or of any 

19 State or local government, or 

20 ‘‘(2) any other organization that— 

21 ‘‘(A) is organized and at all times operated 

22 principally for 1 or more of the conservation 

23 purposes specified in clause (i), (ii), or (iii) of 

24 section 170(h)(4)(A), 

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1 ‘‘(B) is described in section 501(c)(3) and 

2 exempt from tax under section 501(a), and 

3 ‘‘(C) meets the requirements of— 

4 ‘‘(i) section 509(a)(2), or 

5 ‘‘(ii) section 509(a)(3) and is con6 trolled by an organization described in sec7 tion 509(a)(2). 

8 ‘‘(c) ELIGIBLE FARMLAND.—For purposes of this 

9 section— 

10 ‘‘(1) ELIGIBLE FARMLAND.—The term ‘eligible 

11 farmland’ means farmland comprised of at least 50 

12 percent of any combination of prime, unique, or 

13 statewide or locally important farmland. 

14 ‘‘(2) FARMLAND.—The term ‘farmland’ in15 cludes all land capable of being used for agricultural 

16 production. 

17 ‘‘(3) PRIME FARMLAND.—The term ‘prime 

18 farmland’ means farmland that has the best com19 bination of physical and chemical characteristics for 

20 producing food, feed, fiber, forage, oilseed, and other 

21 agricultural crops with minimum inputs of fuel, fer22 tilizer, pesticides, and labor, and without intolerable 

23 soil erosion, as determined by the Secretary of Agri24 culture. Such term includes farmland that possesses 

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1 tence, but is being used currently to produce live2 stock and timber. Such term does not include farm3 land already in or committed to urban development 

4 or water storage. 

5 ‘‘(4) UNIQUE FARMLAND.—The term ‘unique 

6 farmland’ means farmland, other than prime farm7 land, that is used for production of specific high8 value food and fiber crops, as determined by the 

9 Secretary of Agriculture. Such term includes farm10 land with the special combination of soil quality, lo11 cation, growing season, and moisture supply needed 

12 to economically produce sustained high quality or 

13 high yields of specific crops when treated and man14 aged according to acceptable farming methods, in15 cluding such crops as citrus, tree nuts, olives, cran16 berries, fruits, and vegetables. 

17 ‘‘(5) STATEWIDE OR LOCALLY IMPORTANT

18 FARMLAND.—The term ‘statewide or locally impor19 tant farmland’ means farmland, other than prime or 

20 unique farmland, that is of statewide or local impor21 tance for the production of food, feed, fiber, forage, 

22 or oilseed crops, as determined by the appropriate 

23 State or unit of local government agency or agen24 cies, and that the Secretary of Agriculture deterVerDate Aug 31 2005 18:46 May 19, 2007 Jkt 059200 PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 E:\BILLS\S1424.IS S1424
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1 mines should be considered as such farmland for 

2 purposes of this section.’’. 

3 (b) CONFORMING AMENDMENT.—The table of sec4 tions for part I of subchapter P of chapter 1 of the Inter5 nal Revenue Code of 1986 is amended by adding at the 

6 end the following new item: 

‘‘Sec. 1203. 100-percent exclusion of gain on sales of development rights or 

conservation easements on farmland to eligible entities for conservation purposes.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to sales occurring on or after the 

9 date of the enactment of this Act. 

Æ