II 

110TH CONGRESS 

1ST SESSION S. 1346 

To amend conservation and biofuels programs of the Department of Agriculture to promote the compatible goals of economically viable agricultural production and reducing nutrient loads in the Chesapeake Bay 

and its tributaries by assisting agricultural producers to make beneficial, 

cost-effective changes to cropping systems, grazing management, and 

nutrient management associated with livestock and poultry production, 

crop production, bioenergy production, and other agricultural practices 

on agricultural land within the Chesapeake Bay watershed, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 9, 2007 

Ms. MIKULSKI (for herself, Mr. CARDIN, Mr. WARNER, Mr. BIDEN, Mr. 

ROCKEFELLER, Mr. CARPER, and Mr. WEBB) introduced the following 

bill; which was read twice and referred to the Committee on Agriculture, 

Nutrition, and Forestry 

A BILL 

To amend conservation and biofuels programs of the Department of Agriculture to promote the compatible goals 

of economically viable agricultural production and reducing nutrient loads in the Chesapeake Bay and its tributaries by assisting agricultural producers to make beneficial, cost-effective changes to cropping systems, grazing 

management, and nutrient management associated with 

livestock and poultry production, crop production, bioenergy production, and other agricultural practices on 


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agricultural land within the Chesapeake Bay watershed, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

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

5 ‘‘Chesapeake’s Healthy and Environmentally Sound Stew6 ardship of Energy and Agriculture Act of 2007’’ or the 

7 ‘‘CHESSEA Act of 2007’’. 

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

9 this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Findings. 

Sec. 3. Environmental quality incentives program. 

Sec. 4. Regional water quality enhancement program. 

Sec. 5. Conservation innovation grants. 

Sec. 6. Conservation reserve program. 

Sec. 7. Conservation security program. 

Sec. 8. Comprehensive planning technical assistance pilot program. 

Sec. 9. Wetlands reserve program. 

Sec. 10. Agricultural management assistance. 

Sec. 11. Biorefinery and biofuel project grants. 

Sec. 12. Renewable energy systems and energy efficiency improvements program. 

10 SEC. 2. FINDINGS. 

11 Congress finds that— 

12 (1) the Chesapeake Bay is the largest estuary 

13 in North America, the world’s most productive estu14 ary, and a resource of worldwide significance; 

15 (2) the Chesapeake Bay watershed encompasses 

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1 ginia, and the District of Columbia, and contains 

2 150 major tributaries; 

3 (3) agricultural operations and small family 

4 farms in particular are a defining feature of the 

5 economy, heritage, culture, landscape, and environ6 ment of the States of the Chesapeake Bay water7 shed, and those agricultural operations account for 

nearly 1 8 ⁄4 of the land in the Chesapeake Bay water9 shed, stretching across 10,000,000 acres and involv10 ing tens of thousands of individual agricultural pro11 ducers; 

12 (4) unfortunately, those same agricultural oper13 ations are the source of more than 40 percent of the 

14 nitrogen and phosphorus loads entering the Chesa15 peake Bay; 

16 (5) in the landmark regional agreement entered 

17 into by the Chesapeake Executive Council entitled 

18 ‘‘Chesapeake 2000’’ and dated June 28, 2000 (re19 ferred to in this Act as the ‘‘Chesapeake 2000 

20 Agreement’’), the Federal Government, the 6 States 

21 of the Chesapeake Bay watershed, and the District 

22 of Columbia, agreed to significantly reduce annual 

23 nitrogen, phosphorus, and sediment load by 2010 to 

24 restore the Chesapeake Bay and its tidal tributaries 

25 sufficiently to remove the Chesapeake Bay and the 


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1 tributaries from the list of impaired waters under 

2 the Federal Water Pollution Control Act (33 U.S.C. 

3 1251 et seq.); 

4 (6) current efforts to implement the Chesa5 peake 2000 Agreement and achieve the nitrogen and 

6 phosphorus reduction goals specified in the Chesa7 peake 2000 Agreement are significantly under8 funded; and 

9 (7) the implementation of improved conserva10 tion practices in agricultural operations in the 

11 Chesapeake Bay watershed and increased agricul12 tural bioenergy production can serve the dual pur13 poses of enhancing the environmental health of the 

14 Chesapeake Bay and the economic vitality of agricul15 tural producers in the watershed. 

16 SEC. 3. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. 

17 (a) EXTENSION.— 

18 (1) FUNDING EXTENSION AND INCREASE.— 

19 Section 1241(a) of the Food Security Act of 1985 

20 (16 U.S.C. 3841(a)) is amended by striking para21 graph (6) and inserting the following: 

22 ‘‘(6) The environmental quality incentives pro23 gram under chapter 4, using, to the maximum ex24 tent practicable, $2,000,000,000 in each of fiscal 

25 years 2008 through 2013.’’. 


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1 (2) CONFORMING AMENDMENTS.— 

2 (A) Section 1240B of the Food Security 

3 Act of 1985 (16 U.S.C. 3839aa–2) is amend4 ed— 

5 (i) in subsection (a)(1), by striking 

6 ‘‘2010’’ and inserting ‘‘2013’’; and 

7 (ii) in subsection (g), by striking 

8 ‘‘2007’’ and inserting ‘‘2013’’. 

9 (B) Section 1240I(c)(1)(C)) of the Food 

10 Security Act of 1985 (16 U.S.C. 3839aa– 

11 9(c)(1)(C)) is amended by striking ‘‘2007’’ and 

12 inserting ‘‘2013’’. 

13 (b) PRIORITY GIVEN TO STATE ALLOCATIONS.—Sec14 tion 1240F of the Food Security Act of 1985 (16 U.S.C. 

15 3839aa–6) is amended— 

16 (1) by striking ‘‘To’’ and inserting the fol17 lowing: 

18 ‘‘(a) ASSISTANCE, INFORMATION, AND TRAINING.— 

19 To’’; and 

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

21 ‘‘(b) INTERSTATE WATERSHEDS.—In making pro22 gram allocations to States, the Secretary shall give pri23 ority to States located within watersheds that— 

24 ‘‘(1) encompass more than 1 State; 


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1 ‘‘(2) are recognized under the Federal Water 

2 Pollution Control Act (33 U.S.C. 1251 et seq.) as 

3 having nutrient-related water quality impairments or 

4 sediment-related water quality impairments; and 

5 ‘‘(3) are subject to State-approved tributary 

6 strategies or watershed management plans designed 

7 to address those impairments. 

8 ‘‘(c) PROHIBITED ALLOCATION FACTOR.—The Sec9 retary shall not use the total number of acres as an alloca10 tion factor under this section.’’. 

11 (c) COST SHARE PAYMENT EXCEPTION.—Section 

12 1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 

13 3839aa–2(d)(2)) is amended by striking subparagraph (A) 

14 and inserting the following: 

15 ‘‘(A) LIMITED RESOURCE AND BEGINNING

16 FARMERS OR RANCHERS.—The Secretary may 

17 increase the amount provided to a producer 

18 under paragraph (1) to not more than 90 per19 cent if the producer is a limited resource or be20 ginning farmer or rancher, as determined by 

21 the Secretary, except that the cost-share pay22 ment under the program not be less than 15 

23 percent more than the payment that the Sec24 retary may determine under paragraph (1).’’. 


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1 (d) FOREST CONSERVATION AND PERFORMANCE IN2 CENTIVES FOR STATES.—Chapter 4 of subtitle D of title 

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

4 et seq.) is amended by adding at the end the following: 

5 ‘‘SEC. 1240J. PROMOTION OF FOREST STEWARDSHIP PRAC6 TICES. 

7 ‘‘(a) COST-SHARE PAYMENTS AND INCENTIVE PAY8 MENTS.—In carrying out the program under this chapter, 

9 the Secretary shall promote forest stewardship by pro10 viding cost-share payments and incentive payments to 

11 nonindustrial private forest owners to carry out eligible 

12 conservation activities, to— 

13 ‘‘(1) improve water quality; 

14 ‘‘(2) improve habitat for at-risk species; 

15 ‘‘(3) restore ecologically important forest types; 

16 or 

17 ‘‘(4) control invasive species. 

18 ‘‘(b) PRIORITY.—The Secretary shall give priority to 

19 projects that involve multiple landowners implementing el20 igible conservation activities in a coordinated manner to 

21 address the purposes described in subsection (a). 

22 ‘‘(c) FUNDING.—Of the funds of the Commodity 

23 Credit Corporation, the Secretary shall use to carry out 

24 this section— 

25 ‘‘(1) $25,000,000 for fiscal year 2008; 


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1 ‘‘(2) $45,000,000 for fiscal year 2009; 

2 ‘‘(3) $60,000,000 for fiscal year 2010; 

3 ‘‘(4) $75,000,000 for each of fiscal years 2011 

4 and 2012; and 

5 ‘‘(5) $100,000,000 for fiscal year 2013. 

6 ‘‘SEC. 1240K. PERFORMANCE INCENTIVES FOR STATES. 

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

8 each of fiscal years 2008 through 2013, the Secretary 

9 shall reserve 10 percent of the funds made available under 

10 this chapter for bonus allocations to States that dem11 onstrate a high level of performance in implementing the 

12 environmental quality incentives program established 

13 under this chapter. 

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

15 State performance under subsection (a), the Secretary 

16 shall reward States that— 

17 ‘‘(1) consistently meet the requirements of sec18 tion 1240C in evaluating offers and payments; 

19 ‘‘(2) dedicate a portion of their annual environ20 mental quality incentives program allocation to 

21 multiproducer cooperative efforts to address specific 

22 resource concerns; 

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

24 agencies, local governments, educational institutions, 

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1 itor and evaluate the environmental outcomes associ2 ated with implementation of the program; 

3 ‘‘(4) demonstrate effective and efficient pro4 gram delivery, including the provision of adequate 

5 technical assistance to all program participants 

6 through appropriate staffing and through coopera7 tion with other Federal, State, tribal, and local 

8 agencies, for-profit and nonprofit organizations, and 

9 individuals with demonstrated expertise in the plan10 ning and implementation of conservation practices, 

11 systems, and approaches; 

12 ‘‘(5) support and encourage innovative ap13 proaches to addressing resource concerns; 

14 ‘‘(6) effectively leverage Federal funding with 

15 local and State matching funds; and 

16 ‘‘(7) demonstrate effective outreach and innova17 tive approaches to reaching and serving beginning 

18 farmers or ranchers, limited resource producers, and 

19 operators with lower rates of historical participation 

20 in Federal farm and conservation programs.’’. 

21 SEC. 4. REGIONAL WATER QUALITY ENHANCEMENT PRO22 GRAM. 

23 (a) PROGRAM REQUIREMENTS.—Chapter 5 of sub24 title D of title XII of the Food Security Act of 1985 is 


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1 amended by inserting after section 1240P (16 U.S.C. 

2 3839bb–3) the following: 

3 ‘‘SEC. 1240Q. REGIONAL WATER QUALITY ENHANCEMENT 

4 PROGRAM. 

5 ‘‘(a) PROGRAM REQUIRED.—In order to increase, fa6 cilitate, and further implement cooperative partnerships 

7 between States, producers, and other interested persons 

8 or parties to improve water quality in the largest bodies 

9 of water in the United States, the Secretary shall offer 

10 to enter into agreements with States and the District of 

11 Columbia containing all or a portion of such a body of 

12 water or containing tributaries of such a body of water 

13 (including the Chesapeake Bay and its tributaries) to as14 sist the States and District to carry out special initiatives 

15 focused on the enhanced stewardship of those bodies of 

16 water. 

17 ‘‘(b) TERM OF AGREEMENT.—An agreement under 

18 this section shall be for a term of not shorter than 3 nor 

19 longer than 5 years. 

20 ‘‘(c) COMPETITIVE PROCESS; SET-ASIDE.— 

21 ‘‘(1) COMPETITIVE PROCESS.—Subject to para22 graph (2), the Secretary shall establish a competitive 

23 process for considering applications for agreements 

24 under this section, consistent with the evaluation cri25 teria described in subsection (d). 


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1 ‘‘(2) SET ASIDE.—Not less than 25 percent of 

2 total amount of funds made available for agreements 

3 under this section shall be awarded to States and 

4 the District of Columbia containing a portion of the 

5 Chesapeake Bay watershed. 

6 ‘‘(d) EVALUATION OF APPLICATIONS; CRITERIA.—In 

7 evaluating applications for an agreement under this sec8 tion, the Secretary shall consider the extent to which the 

9 program proposed by the State or District of Columbia 

10 would— 

11 ‘‘(1) most cost-effectively achieve the greatest 

12 improvements to water quality, using— 

13 ‘‘(A) adoption of management practices 

14 and systems, including soil amendments, soil 

15 and stalk testing, alternative cropping systems, 

16 cover crops, buffers, and other measures; 

17 ‘‘(B) innovative or advanced conservation 

18 techniques that hold substantial promise for 

19 producing long-term, cost-effective improve20 ments to water quality; 

21 ‘‘(C) reduction in nutrient inputs to agri22 cultural operations, such as through feed man23 agement; and 

24 ‘‘(D) manure processing and treatment 

25 technologies to permit more efficient use and 


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1 transport of manure to produce energy, restore 

2 nutrient-deficient land, or reduce air emissions; 

3 ‘‘(2) leverage financial and technical resources 

4 from sources other than the programs authorized by 

5 this subtitle, including financial and technical re6 sources provided by other Federal agencies, State 

7 agencies, local governments, nongovernmental orga8 nizations and associations, and other private sector 

9 entities; 

10 ‘‘(3) provide necessary technical assistance to 

11 producers and other cooperators participating in the 

12 project or initiative, including in the application cost 

13 estimates for technical assistance and whether the 

14 assistance will be provided by technical service pro15 viders; 

16 ‘‘(4) establish a program of education and out17 reach to attract new participants; 

18 ‘‘(5) serve as a transferable model for other re19 gional watershed efforts; or 

20 ‘‘(6) evaluate progress and measure results. 

21 ‘‘(e) PRIORITIES.—To the maximum extent prac22 ticable, consistent with the requirements of subsection (d), 

23 the Secretary shall ensure that, for each fiscal year, agree24 ments are entered into under this section to support 


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1 projects and initiatives that collectively address water 

2 quality impairments. 

3 ‘‘(f) SELECTION PROCESS.—In evaluating applica4 tions under this section, the Secretary shall consider rec5 ommendations from scientists, regional experts, and other 

6 persons with appropriate expertise in the Department of 

7 Agriculture, other Federal and State agencies, and inter8 est groups, including producer associations and conserva9 tion and environmental organizations. 

10 ‘‘(g) COST SHARE REQUIREMENTS.— 

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

12 and (3), the Secretary shall not require more than 

13 25 percent of the cost of a project or initiative sup14 ported under an agreement entered into under this 

15 section to be provided from non-Federal sources. 

16 ‘‘(2) PRIORITY FOR HIGHER NON-FEDERAL

17 SHARE.—The Secretary may give priority in enter18 ing into agreements under this section to a project 

19 or initiative offering to cover a higher percentage of 

20 the cost of the project or initiative from non-Federal 

21 sources. 

22 ‘‘(3) IN-KIND CONTRIBUTIONS.—If the Sec23 retary establishes a cost-share requirement for a 

24 project or initiative, the Secretary shall allow the use 

25 of in-kind contributions to meet the requirement.’’. 


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1 (b) FUNDING.—Section 1241(a) of the Food Security 

2 Act of 1985 (16 U.S.C. 3841(a)) is amended by adding 

3 at the end the following: 

4 ‘‘(8) The regional water quality enhancement 

5 program under section 1240Q, using, to the max6 imum extent practicable— 

7 ‘‘(A) $175,000,000 in fiscal year 2008; 

8 and 

9 ‘‘(B) $200,000,000 in each of fiscal years 

10 2009 through 2013.’’. 

11 SEC. 5. CONSERVATION INNOVATION GRANTS. 

12 Section 1240H of the Food Security Act of 1985 (16 

13 U.S.C. 3839aa–8) is amended— 

14 (1) in subsection (a), by striking ‘‘may’’ and in15 serting ‘‘shall’’; 

16 (2) in subsection (b)— 

17 (A) in the matter preceding paragraph (1), 

18 by striking ‘‘may’’ and inserting ‘‘shall’’; 

19 (B) in paragraph (2), by striking ‘‘and’’ at 

20 the end; 

21 (C) in paragraph (3), by striking the pe22 riod at the end and inserting ‘‘; and’’; and 

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

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

25 and 


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

2 ‘‘(d) TECHNOLOGY TRANSFER.—In making grants 

3 under this section, the Secretary shall give priority to 

4 projects that ensure transferability of innovative conserva5 tion technologies and approaches to achieve widespread 

6 implementation by producers. 

7 ‘‘(e) ADDITIONAL FUNDING.—In addition to amounts 

8 made available under section 1241(a)(6) to carry out this 

9 chapter, of funds of the Commodity Credit Corporation, 

10 the Secretary shall use to carry out this section 

11 $100,000,000 for each of fiscal years 2008 through 

12 2013.’’. 

13 SEC. 6. CONSERVATION RESERVE PROGRAM. 

14 (a) EXTENSION.— 

15 (1) FUNDING EXTENSION.—Section 1241(a) of 

16 the Food Security Act of 1985 (16 U.S.C. 3841(a)) 

17 is amended— 

18 (A) in the matter preceding paragraph (1), 

19 by striking ‘‘2007’’ and inserting ‘‘2013’’; and 

20 (B) in paragraph (1), by striking ‘‘The’’ 

21 and inserting ‘‘For each of fiscal years 2002 

22 through 2013, the’’. 

23 (2) CONFORMING AMENDMENTS.—Section 1231 

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

25 is amended— 


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1 (A) in subsection (a), by striking ‘‘2007’’ 

2 and inserting ‘‘2013’’; 

3 (B) in subsection (d), by striking ‘‘2007’’ 

4 and inserting ‘‘2013’’; 

5 (C) in subsection (e)(3), by striking 

6 ‘‘2002’’ and inserting ‘‘2008’’; and 

7 (D) in subsection (h)(1), by striking 

8 ‘‘2007’’ and inserting ‘‘2013’’. 

9 (b) ENROLLMENT GOALS AND USE OF GENERAL

10 SIGNUP.—Section 1231(d) of the Food Security Act of 

11 1985 (16 U.S.C. 3831(d)) is amended— 

12 (1) by striking ‘‘The Secretary’’ and inserting: 

13 ‘‘(1) ACREAGE AUTHORIZED.—The Secretary’’; 

14 and 

15 (2) 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, with priority given to 

23 riparian buffers, restored wetland, and other habi24 tats known to improve water quality and called for 

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1 gies or watershed management plans to reduce nu2 trients and sediments from agricultural sources to 

3 impaired waters. 

4 ‘‘(3) LIMITATION ON USE OF GENERAL

5 SIGNUP.— 

6 ‘‘(A) IN GENERAL.—To the maximum ex7 tent practicable, the Secretary shall ensure that 

8 not more than 80 percent of the acres main9 tained in the conservation reserve at any 1 time 

10 during the 2008 through 2013 calendar years 

11 are acres that were enrolled through a general 

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

13 ‘‘(B) ACCEPTABILITY OF GENERAL SIGNUP

14 OFFERS.—For an offer to be accepted to enroll 

15 acres into the conservation reserve through the 

16 general signup, the acres covered by the offer 

17 shall have an environmental benefit index score 

18 that is at or above a threshold that is 15 per19 cent higher than the average of the thresholds 

20 used in general signups during fiscal years 

21 1996 through 2006, adjusted for changes in the 

22 index over those fiscal years.’’. 

23 (c) PAYMENT LIMITATION.—Section 1234(f)(1) of 

24 the Food Security Act of 1985 (16 U.S.C. 3834(f)) is 

25 amended— 


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1 (1) by striking ‘‘The’’ and inserting the fol2 lowing: 

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

4 subparagraph (B), the’’; and 

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

6 ‘‘(B) WAIVERS.—The Secretary may waive 

7 the payment limitation established under sub8 paragraph (A) for a person participating in the 

9 conservation reserve enhancement program if 

10 the Secretary determines the waiver is nec11 essary to achieve the objectives of the pro12 gram.’’. 

13 SEC. 7. CONSERVATION SECURITY PROGRAM. 

14 (a) REPEAL OF FUNDING CAP.—Section 1241(a)(3) 

15 of the Food Security Act of 1985 (16 U.S.C. 3841(a)(3)) 

16 is amended by striking ‘‘, using not more than’’ and all 

17 that follows through ‘‘2015’’. 

18 (b) PROGRAM EXTENSION.—Section 1238A(a) of the 

19 Food Security Act of 1985 (16 U.S.C. 3838a(a)) is 

20 amended by striking ‘‘2011’’ and inserting ‘‘2013’’. 

21 (c) ASSISTANCE TO CERTAIN STATES.—Section 

22 1238A(b) of the Food Security Act of 1985 (16 U.S.C. 

23 3838a(b)) is amended by adding at the end the following: 

24 ‘‘(5) CONTINUOUS ENROLLMENT.—The Sec25 retary shall provide for a continuous enrollment of 


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1 eligible land in any State that, through a written 

2 agreement, is partnering with other States and the 

3 Federal Government to achieve specific numeric re4 ductions in nutrient and sediment pollution loads 

5 within a multistate watershed in an effort to remove 

6 the waters in that watershed from the list of im7 paired waters under the Federal Water Pollution 

8 Control Act (33 U.S.C. 1251 et seq.).’’. 

9 (d) ENHANCED PAYMENTS FOR WATER QUALITY.— 

10 Section 1238C(b)(1)(C)(iii) of the Food Security Act of 

11 1985 (16 U.S.C. 3838c(b)(1)(C)(iii)) is amended— 

12 (1) in subclause (IV), by striking ‘‘or’’ at the 

13 end; 

14 (2) in subclause (V), by striking the period at 

15 the end and inserting ‘‘; and’’; and 

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

17 ‘‘(VI) implements practices that will sig18 nificantly improve water quality in watersheds 

19 associated with waters impaired by agricultural 

20 nutrients, with priority given to the most effec21 tive practices.’’. 

22 (e) DUTIES OF THE SECRETARY.—Section 1238C of 

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

24 amended by striking subsections (f) and (g) and inserting 

25 the following: 


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1 ‘‘(f) ENROLLMENT PRIORITY.—In the case of any fis2 cal year for which funding for the conservation security 

3 program is limited, the Secretary shall prioritize entering 

4 into contracts to address water quality in watersheds of 

5 bodies of water impaired by nutrients, based on the degree 

6 to which a producer proposes to increase the management 

7 intensity with which the producer addresses nutrient im8 pairment of water quality in the affected watershed. 

9 ‘‘(g) PROHIBITED ALLOCATION FACTOR.—The Sec10 retary shall not use the total number of acres as an alloca11 tion factor under this section. 

12 ‘‘(h) TECHNICAL ASSISTANCE.—For each of fiscal 

13 years 2008 through 2013, the Secretary shall provide 

14 technical assistance to producers for the development and 

15 implementation of conservation security contracts in an 

16 amount that, for each producer— 

17 ‘‘(1) is based on actual cost; but 

18 ‘‘(2) does not exceed 23 percent of amounts ex19 pended for the fiscal year for the producer.’’. 

20 SEC. 8. COMPREHENSIVE PLANNING TECHNICAL ASSIST21 ANCE PILOT PROGRAM. 

22 Section 1242 of the Food Security Act of 1985 (16 

23 U.S.C. 3842) is amended by adding at the end the fol24 lowing: 


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1 ‘‘(c) COMPREHENSIVE PLANNING TECHNICAL AS2 SISTANCE PILOT PROGRAM.— 

3 ‘‘(1) CHESAPEAKE BAY WATERSHED.—The Sec4 retary shall establish a pilot program in the Chesa5 peake Bay watershed to assist producers with com6 prehensive conservation planning, design, and imple7 mentation— 

8 ‘‘(A) before applying for assistance under 

9 any of the conservation programs authorized by 

10 subtitle D; and 

11 ‘‘(B) through the process of design and im12 plementation of conservation projects. 

13 ‘‘(2) COMPREHENSIVE ASSESSMENT AND TECH14 NICAL ASSISTANCE.—In carrying out the pilot pro15 gram, the Secretary shall assist each producer by— 

16 ‘‘(A) making a comprehensive assessment 

17 of the resource concerns, needs, and alternative 

18 solutions for the entire operation of the pro19 ducer, as determined by the Secretary, in ac20 cordance the applicable conservation planning 

21 manual of the Natural Resources Conservation 

22 Service; and 

23 ‘‘(B) providing technical assistance in de24 sign and implementation of the solutions. 

25 ‘‘(3) PROVISION OF ASSISTANCE.— 


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

2 provide assistance to producers under the pilot 

3 program directly or through third-party pro4 viders certified by the Secretary. 

5 ‘‘(B) RESULTS.—The Secretary shall pro6 vide the results of the comprehensive planning, 

7 design, and implementation assistance to the 

8 producer to enable the producer to make in9 formed choices on the type of financial assist10 ance available through conservation programs 

11 administered by the Secretary under subtitle D 

12 that would most effectively address the resource 

13 needs of the operation, consistent with the envi14 ronmental goals for the area in which the oper15 ation is located. 

16 ‘‘(4) COST.—The Secretary shall provide assist17 ance under the pilot program without cost to pro18 ducers. 

19 ‘‘(5) FUNDING.—Of the funds of the Com20 modity Credit Corporation, the Secretary shall use 

21 to carry out the pilot program $10,000,000 for each 

22 of fiscal years 2008 through 2013.’’. 

23 SEC. 9. WETLANDS RESERVE PROGRAM. 

24 (a) EXTENSION.— 


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1 (1) FUNDING EXTENSION.—Section 1241(a)(2) 

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

3 3841(a)(2)) is amended by striking ‘‘The’’ and in4 serting ‘‘For each of fiscal years 2002 through 

5 2013, the’’. 

6 (2) CONFORMING AMENDMENT.—Section 

7 1237(c) of the Food Security Act of 1985 (16 

8 U.S.C. 3837(c)) is amended by striking ‘‘2007’’ and 

9 inserting ‘‘2013’’. 

10 (b) MAXIMUM AND YEARLY ENROLLMENT.—Section 

11 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 

12 3837(b)(1)) is amended by striking ‘‘2,275,000 acres,’’ 

13 and all that follows through the period at the end and 

14 inserting ‘‘3,500,000 acres, of which, to the maximum ex15 tent practicable, at least 5,000 acres in calendar year 

16 2008 and 10,000 acres in each of calendar years 2009 

17 and 2010 shall be enrolled to meet State and Federal 

18 2010 goals established pursuant to the Chesapeake 2000 

19 agreement for the Chesapeake Bay watershed.’’. 

20 (c) PRIORITY.—Section 1237 of the Food Security 

21 Act of 1985 (16 U.S.C. 3837) is amended by adding at 

22 the end the following: 

23 ‘‘(g) PRIORITY.—The Secretary shall give priority to 

24 enrollments benefitting water quality, and shall consider 

25 whether States are implementing the program consistent 


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1 with those priorities, when allocating program funding to 

2 States.’’ 

3 (d) ADDITIONAL PURPOSE.—Section 1237A(b)(3) of 

4 the Food Security Act of 1985 (16 U.S.C. 3837a(b)(3)) 

5 is amended by inserting after ‘‘wetlands’’ the following: 

6 ‘‘, including the reduction of excess nutrients’’. 

7 (e) INCREASED COST SHARE.—Section 1237C(b)(2) 

8 of the Food Security Act of 1985 (16 U.S.C. 3837c(b)(2)) 

9 is amended— 

10 (1) by striking ‘‘In’’ and inserting the following: 

11 ‘‘(A) IN GENERAL.—In’’; and 

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

13 ‘‘(B) INCREASED COST-SHARE PERCENT14 AGE.—The Secretary may increase the cost15 share percentage under subparagraph (A) if the 

16 conservation plan described in section 1237A(b) 

17 results in— 

18 ‘‘(i) a significant reduction of excess 

19 nutrients in a watershed of a body of water 

20 impaired by agricultural nutrients; or 

21 ‘‘(ii) in land placed under permanent 

22 easement.’’. 

23 (f) EASEMENT PRIORITY.—Section 1237C(d) of the 

24 Food Security Act of 1985 (16 U.S.C. 3837c(d)) is 

25 amended by inserting before the period at the end the folVerDate Aug 31 2005 23:17 May 11, 2007 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S1346.IS S1346

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1 lowing: ‘‘or for achieving nutrient reductions in a water2 shed of a body of water impaired by agricultural nutri3 ents’’. 

4 SEC. 10. AGRICULTURAL MANAGEMENT ASSISTANCE. 

5 (a) ADDITIONAL STATE.—Section 524(b)(1) of the 

6 Federal Crop Insurance Act (7 U.S.C. 1524(b)(1)) is 

7 amended by inserting ‘‘Virginia,’’ after ‘‘Vermont,’’. 

8 (b) FUNDING AND DURATION.—Section 

9 524(b)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 

10 1524(b)(4)(B)) is amended— 

11 (1) in clause (ii)— 

12 (A) by striking ‘‘fiscal years 2003 through 

13 2007’’ and inserting ‘‘fiscal years 2008 through 

14 2013’’; and 

15 (B) by striking ‘‘$20,000,000’’ and insert16 ing ‘‘$50,000,000’’; and 

17 (2) in clause (iii)— 

18 (A) in the matter preceding subclause (I), 

19 by striking ‘‘fiscal years 2004 through 2007’’ 

20 and inserting ‘‘fiscal years 2008 through 

21 2013’’; 

22 (B) in subclause (I), by striking 

23 ‘‘$14,000,000’’ and inserting ‘‘$38,000,000’’; 

24 (C) in subclause (II), by striking 

25 ‘‘$1,000,000’’ and inserting ‘‘$2,000,000’’; and 


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1 (D) in subclause (III), by striking 

2 ‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 

3 SEC. 11. BIOREFINERY AND BIOFUEL PROJECT GRANTS. 

4 (a) DEFINITION OF CHESAPEAKE BAY WATERSHED

5 STATE.—Section 9001 of the Farm Security and Rural 

6 Investment Act of 2002 (7 U.S.C. 8101) is amended— 

7 (1) by redesignating paragraphs (4) through 

8 (7) as paragraphs (5) through (8), respectively; and 

9 (2) by inserting after paragraph (3) the fol10 lowing: 

11 ‘‘(4) CHESAPEAKE BAY WATERSHED STATE.— 

12 The term ‘Chesapeake Bay Watershed States’ means 

13 each of the States of Delaware, Maryland, New 

14 York, Pennsylvania, Virginia, and West Virginia and 

15 the District of Columbia.’’. 

16 (b) ASSISTANCE METHODS.—Section 9003 of the 

17 Farm Security and Rural Investment Act of 2002 (7 

18 U.S.C. 8103) is amended by striking subsection (c) and 

19 inserting the following: 

20 ‘‘(c) ASSISTANCE.— 

21 ‘‘(1) GRANTS.—The Secretary shall award 

22 grants and make loans and loan guarantees to eligi23 ble entities to assist in covering the cost of develop24 ment and construction of biorefineries to carry out 

25 projects to demonstrate the commercial viability of 1 


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1 or more processes for converting biomass to fuels or 

2 chemicals. 

3 ‘‘(2) PROJECTS FOR CHESAPEAKE BAY WATER4 SHED STATES.—In the case of a project to be oper5 ated in 1 or more of the Chesapeake Bay Watershed 

6 States, the Secretary shall award grants under this 

7 subsection for the purpose of developing and pro8 moting the commercial viability of— 

9 ‘‘(A) no-till soybean biodiesel production; 

10 ‘‘(B) cellulosic ethanol production; 

11 ‘‘(C) manure-to-energy processes and tech12 nologies; and 

13 ‘‘(D) other technologies that promote the 

14 conversion of biomass to fuels and chemicals 

15 and the reduction of nutrient impacts to water 

16 quality.’’. 

17 (c) ENVIRONMENTAL GOALS; DISTRIBUTION OF

18 GRANTS.—Section 9003(e) of the Farm Security and 

19 Rural Investment Act of 2002 (7 U.S.C. 8103(e)) is 

20 amended— 

21 (1) in paragraph (2)(A)— 

22 (A) in clause (i), by striking ‘‘and’’ at the 

23 end; 

24 (B) by redesignating clause (ii) as clause 

25 (iii); and 


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1 (C) by inserting after clause (i) the fol2 lowing: 

3 ‘‘(ii) shall select projects based on the 

4 extent to which the projects meet environ5 mental goals for feedstocks and refineries 

6 developed by the Secretary, in consultation 

7 with the Secretary of the Interior, the Sec8 retary of Energy, the Administrator of the 

9 Environmental Protection Agency, and the 

10 National Academy of Sciences, taking into 

11 consideration clean water and air goals; 

12 and’’. 

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

14 ‘‘(3) FUNDS FOR CHESAPEAKE BAY WATER15 SHED STATES.—The Secretary shall ensure that not 

16 less than 15 percent of the total funds available 

17 under this section are provided to projects operated 

18 in Chesapeake Bay Watershed States that benefit 

19 the Chesapeake Bay watershed.’’. 

20 (d) FUNDING.—Section 9003 of the Farm Security 

21 and Rural Investment Act of 2002 (7 U.S.C. 8103) is 

22 amended by striking subsection (h) and inserting the fol23 lowing: 

24 ‘‘(h) FUNDING.—Of the funds of the Commodity 

25 Credit Corporation, the Secretary shall use to carry out 


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1 this section $100,000,000 for each of fiscal years 2008 

2 through 2013.’’. 

3 SEC. 12. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFI4 CIENCY IMPROVEMENTS PROGRAM. 

5 Section 9006 of the Farm Security and Rural Invest6 ment Act of 2002 (7 U.S.C. 8106) is amended— 

7 (1) in subsection (c)— 

8 (A) in paragraph (2), by striking subpara9 graph (C) and inserting the following: 

10 ‘‘(C) the expected environmental benefits 

11 of the renewable energy system, including bene12 fits to water quality and to watersheds of bodies 

13 of water degraded by agricultural nutrients;’’; 

14 and 

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

16 ‘‘(3) PREFERENCE FOR COMMUNITY

17 PROJECTS.—The Secretary shall give preference in 

18 funding and grant and loan selection under this sec19 tion to activities that the Secretary determines— 

20 ‘‘(A) are undertaken jointly by more than 

21 1 eligible entity in a local community; 

22 ‘‘(B) involve direct cooperation between 2 

23 or more eligible entities; and 


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1 ‘‘(C) foster community or cooperative ap2 proaches to renewable energy and energy effi3 ciency development.’’; and 

4 (2) by striking subsection (f) and inserting the 

5 following: 

6 ‘‘(f) PRODUCTION-BASED INCENTIVES IN LIEU OF

7 GRANTS.— 

8 ‘‘(1) IN GENERAL.—In addition to the authority 

9 under subsection (a), the Secretary may, on the re10 quest of an applicant the Secretary determines is eli11 gible under subsection (b), make production-based 

12 payments to the applicant in lieu of a grant. 

13 ‘‘(2) CONTINGENCY.—The Secretary shall only 

14 make a payment under paragraph (1) if the appli15 cant provides the Secretary with documentation 

16 showing energy production and sales from a renew17 able energy system to a third party. 

18 ‘‘(3) LIMITATION.—The total net present value 

19 of a production-based incentive may not exceed the 

20 lesser of— 

21 ‘‘(A) 25 percent of the eligible project 

22 costs; and 

23 ‘‘(B) any other limit that the Secretary es24 tablishes by regulation or guidance. 


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1 ‘‘(g) DISTRIBUTION OF GRANTS.—The Secretary 

2 shall ensure that not less than 15 percent of the grants, 

3 loans, and loan guarantees provided under this section are 

4 provided to projects in Chesapeake Bay Watershed States 

5 that benefit the Chesapeake Bay watershed. 

6 ‘‘(h) FUNDING.—Of the funds of the Commodity 

7 Credit Corporation, the Secretary shall use to carry out 

8 this section, to remain available until expended— 

9 ‘‘(1) $60,000,000 for fiscal year 2008; 

10 ‘‘(2) $90,000,000 for fiscal year 2009; 

11 ‘‘(3) $130,000,000 for fiscal year 2010; 

12 ‘‘(4) $180,000,000 for fiscal year 2011; and 

13 ‘‘(5) $250,000,000 for fiscal year 2012.’’. 

Æ 


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