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‘‘(4) movement of freight and individuals within
the region;
‘‘(5) federally-funded research at institutions of
higher education; and
‘‘(6) conservation land management.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 383B(c)(3)(B) of the Consoli-
dated Farm and Rural Development Act (7
U.S.C. 2009bb–1(c)(3)(B)) is amended by strik-
ing ‘‘383I’’ and inserting ‘‘383J’’.
(B) Section 383D(a) of the Consolidated
Farm and Rural Development Act (as redesig-
nated by paragraph (1)(A)) is amended by strik-
ing ‘‘383I’’ and inserting ‘‘383J’’.
(C) Section 383E of the Consolidated Farm
and Rural Development Act (as so redesignated)
is amended—
(i) in subsection (b)(1), by striking
‘‘383F(b)’’ and inserting ‘‘383G(b)’’; and
(ii) in subsection (c)(2)(A), by striking
‘‘383I’’ and inserting ‘‘383J’’.
(D) Section 383G of the Consolidated Farm
and Rural Development Act (as so redesignated)
is amended—
(i) in subsection (b)—
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(I) in paragraph (1), by striking
‘‘383M’’ and inserting ‘‘383N’’; and
(II) in paragraph (2), by striking
‘‘383D(b)’’ and inserting ‘‘383E(b)’’;
(ii) in subsection (c)(2)(A), by striking
‘‘383E(b)’’ and inserting ‘‘383F(b)’’; and
(iii) in subsection (d)—
(I) by striking ‘‘383M’’ and in-
serting ‘‘383N’’; and
(II) by striking ‘‘383C(a)’’ and
inserting ‘‘383D(a)’’.
(E) Section 383J(c)(2) of the Consolidated
Farm and Rural Development Act (as so redesig-
nated) is amended by striking ‘‘383H’’ and in-
serting ‘‘383I’’.
(c) 
ECONOMIC
AND
COMMUNITY
DEVELOPMENT
GRANTS.—Section 383D of the Consolidated Farm and
Rural Development Act (as redesignated by subsection
(b)(1)(A)) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘trans-
portation and telecommunication’’ and inserting
‘‘transportation, renewable energy transmission,
and telecommunication’’; and
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(B) by redesignating paragraphs (1) and
(2) as paragraphs (2) and (1), respectively, and
moving those paragraphs so as to appear in nu-
merical order; and
(2) in subsection (b)(2), by striking ‘‘the activi-
ties in the following order or priority’’ and inserting
‘‘the following activities’’.
(d) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—
Section 383E(a) of the Consolidated Farm and Rural De-
velopment Act (as redesignated by subsection (b)(1)(A)) is
amended by striking ‘‘, including local development dis-
tricts,’’.
(e) MULTISTATE
AND LOCAL DEVELOPMENT DIS-
TRICTS
AND
ORGANIZATIONS
AND
NORTHERN
GREAT
PLAINS INC.—Section 383F of the Consolidated Farm and
Rural Development Act (as redesignated by subsection
(b)(1)(A)) is amended—
(1) by striking the section heading and inserting
‘‘MULTISTATE AND LOCAL DEVELOPMENT DIS-
TRICTS AND ORGANIZATIONS AND NORTHERN
GREAT PLAINS INC.’’;
(2) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVEL-
OPMENT DISTRICT OR ORGANIZATION.—In this section, the
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term ‘multistate and local development district or organiza-
tion’ means an entity—
‘‘(1) that—
‘‘(A) is a planning district in existence on
the date of enactment of this subtitle that is rec-
ognized by the Economic Development Adminis-
tration of the Department of Commerce; or
‘‘(B) is—
‘‘(i) organized and operated in a man-
ner that ensures broad-based community
participation and an effective opportunity
for other nonprofit groups to contribute to
the development and implementation of pro-
grams in the region;
‘‘(ii) a nonprofit incorporated body or-
ganized or chartered under the law of the
State in which the entity is located;
‘‘(iii) a nonprofit agency or instru-
mentality of a State or local government;
‘‘(iv) a public organization established
before the date of enactment of this subtitle
under State law for creation of multijuris-
dictional, area-wide planning organiza-
tions;
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‘‘(v) a nonprofit agency or instrumen-
tality of a State that was established for the
purpose of assisting with multistate co-
operation; or
‘‘(vi) a nonprofit association or com-
bination of bodies, agencies, and instrumen-
talities described in clauses (ii) through (v);
and
‘‘(2) that has not, as certified by the Federal
cochairperson—
‘‘(A) inappropriately used Federal grant
funds from any Federal source; or
‘‘(B) appointed an officer who, during the
period in which another entity inappropriately
used Federal grant funds from any Federal
source, was an officer of the other entity.
‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL
DEVELOPMENT DISTRICTS AND ORGANIZATIONS.—
‘‘(1) IN
GENERAL.—The Authority may make
grants for administrative expenses under this section
to multistate, local, and regional development dis-
tricts and organizations.
‘‘(2) CONDITIONS FOR GRANTS.—
‘‘(A) MAXIMUM AMOUNT.—The amount of
any grant awarded under paragraph (1) shall
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not exceed 80 percent of the administrative ex-
penses of the regional or local development dis-
trict or organization receiving the grant.
‘‘(B) MAXIMUM
PERIOD.—No grant de-
scribed in paragraph (1) shall be awarded for a
period greater than 3 years.
‘‘(3) LOCAL SHARE.—The contributions of a re-
gional or local development district or organization
for administrative expenses may be in cash or in
kind, fairly evaluated, including space, equipment,
and services.’’; and
(3) in subsection (c)—
(A) by striking ‘‘DUTIES’’ and inserting
‘‘AUTHORITIES’’; and
(B) in the matter preceding paragraph (1),
by striking ‘‘shall’’ and inserting ‘‘may’’.
(f) DISTRESSED COUNTIES AND AREAS AND NONDIS-
TRESSED COUNTIES.—Section 383G of the Consolidated
Farm and Rural Development Act (as redesignated by sub-
section (b)(1)(A)) is amended—
(1) in subsection (b)(1), by striking ‘‘75’’ and in-
serting ‘‘50’’;
(2) by striking subsection (c);
(3) by redesignating subsection (d) as subsection
(c); and
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(4) in subsection (c) (as so redesignated)—
(A) in the subsection heading, by inserting
‘‘, RENEWABLE ENERGY,’’ after ‘‘TELECOMMUNI-
CATION,’’; and
(B) by inserting ‘‘, renewable energy,’’ after
‘‘telecommunication,’’.
(g) DEVELOPMENT
PLANNING
PROCESS.—Section
383H of the Consolidated Farm and Rural Development
Act (as redesignated by subsection (b)(1)(A)) is amended—
(1) in subsection (c)(1), by striking subpara-
graph (A) and inserting the following:
‘‘(A) multistate, regional, and local develop-
ment districts and organizations; and’’; and
(2) in subsection (d)(1), by striking ‘‘State and
local 
development 
districts’’ 
and 
inserting
‘‘multistate, regional, and local development districts
and organizations’’.
(h) PROGRAM
DEVELOPMENT
CRITERIA.—Section
383I(a)(1) of the Consolidated Farm and Rural Develop-
ment Act (as redesignated by subsection (b)(1)(A)) is
amended by inserting ‘‘multistate or’’ before ‘‘regional’’.
(i) AUTHORIZATION
OF APPROPRIATIONS.—Section
383N(a) of the Consolidated Farm and Rural Development
Act (as redesignated by subsection (b)(1)(A)) is amended
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by striking ‘‘2002 through 2007’’ and inserting ‘‘2008
through 2012’’.
(j) TERMINATION OF AUTHORITY.—Section 383O of
the Consolidated Farm and Rural Development Act (as re-
designated by subsection (b)(1)(A)) is amended by striking
‘‘2007’’ and inserting ‘‘2012’’.
SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.
(a) ISSUANCE AND GUARANTEE OF TRUST CERTIFI-
CATES.—Section 384F of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc–5) is amended—
(1) in subsection (a)(1), by inserting ‘‘, includ-
ing an investment pool created entirely by such bank
or savings association’’ before the period at the end;
(2) in subsection (b)(3)(A), by striking ‘‘In the
event’’ and inserting the following:
‘‘(i) AUTHORITY TO PREPAY.—A deben-
ture may be prepaid at any time without
penalty.
‘‘(ii) REDUCTION
OF
GUARANTEE.—
Subject to clause (i), if’’; and
(3) in subsection (e), by adding at the end the
following:
‘‘(6) DISTRIBUTIONS.—
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‘‘(A) IN GENERAL.—The Secretary shall au-
thorize distributions to investors for unrealized
income from a debenture.
‘‘(B) TREATMENT.—Distributions made by
a rural business investment company to an in-
vestor of private capital in the rural business in-
vestment company for the purpose of covering the
tax liability of the investor resulting from unre-
alized income of the rural business investment
company shall not require the repayment of a
debenture.’’.
(b) FEES.—Section 384G of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009cc–6) is
amended—
(1) in subsection (a), by striking ‘‘such fees as
the Secretary considers appropriate’’ and inserting ‘‘a
fee that does not exceed $500’’;
(2) in subsection (b), by striking ‘‘approved by
the Secretary’’ and inserting ‘‘that does not exceed
$500’’; and
(3) in subsection (c)—
(A) in paragraph (1), by striking ‘‘The’’
and inserting ‘‘Except as provided in paragraph
(3), the’’;
(B) in paragraph (2)—
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(i) in subparagraph (A), by striking
‘‘and’’ at the end;
(ii) in subparagraph (B), by striking
the period at the end and inserting ‘‘; and’’;
and
(iii) by adding at the end the fol-
lowing:
‘‘(C) shall not exceed $500 for any fee col-
lected under this subsection.’’; and
(C) by adding at the end the following:
‘‘(3) PROHIBITION ON COLLECTION OF CERTAIN
FEES.—In the case of a license described in para-
graph (1) that was approved before July 1, 2007, the
Secretary shall not collect any fees due on or after the
date of enactment of this paragraph.’’.
(c) RURAL BUSINESS INVESTMENT COMPANIES.—Sec-
tion 384I(c) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2009cc–8(c)) is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and
(2) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) TIME FRAME.—Each rural business invest-
ment company shall have a period of 2 years to meet
the capital requirements of this subsection.’’.
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(d) FINANCIAL INSTITUTION INVESTMENTS.—Section
384J of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009cc–9) is amended by striking subsection (c).
(e) CONTRACTING OF FUNCTIONS.—Section 384Q of
the Consolidated Farm and Rural Development Act (7
U.S.C. 2009cc–16) is repealed.
(f) FUNDING.—The Consolidated Farm and Rural De-
velopment Act is amended by striking section 384S (7
U.S.C. 2009cc–18) and inserting the following:
‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated such sums
as are necessary to carry out this subtitle.’’.
SEC. 6032. RURAL COLLABORATIVE INVESTMENT PROGRAM.
Subtitle I of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 2009dd et seq.) is amended to read
as follows:
‘‘Subtitle I—Rural Collaborative
Investment Program
‘‘SEC. 385A. PURPOSE.
‘‘The purpose of this subtitle is to establish a regional
rural collaborative investment program—
‘‘(1) to provide rural regions with a flexible in-
vestment vehicle, allowing for local control with Fed-
eral oversight, assistance, and accountability;
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‘‘(2) to provide rural regions with incentives and
resources to develop and implement comprehensive
strategies for achieving regional competitiveness, in-
novation, and prosperity;
‘‘(3) to foster multisector community and eco-
nomic development collaborations that will optimize
the asset-based competitive advantages of rural re-
gions with particular emphasis on innovation, entre-
preneurship, and the creation of quality jobs;
‘‘(4) to foster collaborations necessary to provide
the professional technical expertise, institutional ca-
pacity, and economies of scale that are essential for
the long-term competitiveness of rural regions; and
‘‘(5) to better use Department of Agriculture and
other Federal, State, and local governmental re-
sources, and to leverage those resources with private,
nonprofit, and philanthropic investments, to achieve
measurable community and economic prosperity,
growth, and sustainability.
‘‘SEC. 385B. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) BENCHMARK.—The term ‘benchmark’ means
an annual set of goals and performance measures es-
tablished for the purpose of assessing performance in
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meeting a regional investment strategy of a Regional
Board.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(3) NATIONAL
BOARD.—The term ‘National
Board’ means the National Rural Investment Board
established under section 385C(c).
‘‘(4) NATIONAL INSTITUTE.—The term ‘National
Institute’ means the National Institute on Regional
Rural Competitiveness and Entrepreneurship estab-
lished under section 385C(b)(2).
‘‘(5) REGIONAL
BOARD.—The term ‘Regional
Board’ means a Regional Rural Investment Board
described in section 385D(a).
‘‘(6) REGIONAL INNOVATION GRANT.—The term
‘regional innovation grant’ means a grant made by
the Secretary to a certified Regional Board under sec-
tion 385F.
‘‘(7) 
REGIONAL
INVESTMENT
STRATEGY
GRANT.—The term ‘regional investment strategy
grant’ means a grant made by the Secretary to a cer-
tified Regional Board under section 385E.
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‘‘SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF
RURAL COLLABORATIVE INVESTMENT PRO-
GRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
a Rural Collaborative Investment Program to support com-
prehensive regional investment strategies for achieving
rural competitiveness.
‘‘(b) DUTIES OF SECRETARY.—In carrying out this
subtitle, the Secretary shall—
‘‘(1) appoint and provide administrative and
program support to the National Board;
‘‘(2) establish a national institute, to be known
as the ‘National Institute on Regional Rural Com-
petitiveness and Entrepreneurship’, to provide tech-
nical assistance to the Secretary and the National
Board regarding regional competitiveness and rural
entrepreneurship, including technical assistance for—
‘‘(A) the development of rigorous analytic
programs to assist Regional Boards in deter-
mining the challenges and opportunities that
need to be addressed to receive the greatest re-
gional competitive advantage;
‘‘(B) the provision of support for best prac-
tices developed by the Regional Boards;
‘‘(C) the establishment of programs to sup-
port the development of appropriate governance
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and leadership skills in the applicable regions;
and
‘‘(D) the evaluation of the progress and per-
formance of the Regional Boards in achieving
benchmarks established in a regional investment
strategy;
‘‘(3) work with the National Board to develop a
national rural investment plan, which shall—
‘‘(A) create a framework to encourage and
support a more collaborative and targeted rural
investment portfolio in the United States;
‘‘(B) establish the Rural Philanthropic Ini-
tiative, to work with rural communities to create
and enhance the pool of permanent philanthropic
resources committed to rural community and
economic development;
‘‘(C) cooperate with the Regional Boards
and State and local governments, organizations,
and entities to ensure investment strategies are
developed that take into consideration existing
rural assets; and
‘‘(D) encourage the organization of Regional
Boards;
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‘‘(4) certify the eligibility of Regional Boards to
receive regional investment strategy grants and re-
gional innovation grants;
‘‘(5) provide grants for Regional Boards to de-
velop and implement regional investment strategies;
‘‘(6) provide technical assistance to Regional
Boards on issues, best practices, and emerging trends
relating to rural development, in cooperation with the
National Rural Investment Board; and
‘‘(7) provide analytic and programmatic support
for regional rural competitiveness through the Na-
tional Institute, including—
‘‘(A) programs to assist Regional Boards in
determining the challenges and opportunities
that must be addressed to receive the greatest re-
gional competitive advantage;
‘‘(B) support for best practices development
by the regional investment boards;
‘‘(C) programs to support the development
of appropriate governance and leadership skills
in the region; and
‘‘(D) a review and annual evaluation of the
performance of the Regional Boards (including
progress in achieving benchmarks established in
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a regional investment strategy) in an annual re-
port submitted to—
‘‘(i) the Committee on Agriculture of
the House of Representatives; and
‘‘(ii) the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The
Secretary shall establish within the Department of Agri-
culture a board to be known as the ‘National Rural Invest-
ment Board’.
‘‘(d) DUTIES OF NATIONAL BOARD.—The National
Board shall—
‘‘(1) not later than 180 days after the date of es-
tablishment of the National Board, develop rules re-
lating to the operation of the National Board;
‘‘(2) provide advice to the Secretary and subse-
quently review the design, development, and execution
of the National Rural Investment Plan;
‘‘(3) provide advice to Regional Boards on
issues, best practices, and emerging trends relating to
rural development; and
‘‘(4) provide advice to the Secretary and the Na-
tional Institute on the development and execution of
the program under this subtitle.
‘‘(e) MEMBERSHIP.—
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‘‘(1) IN GENERAL.—The National Board shall
consist of 14 members appointed by the Secretary not
later than 180 days after the date of enactment of the
Food and Energy Security Act of 2007.
‘‘(2) SUPERVISION.—The National Board shall
be subject to the general supervision and direction of
the Secretary.
‘‘(3) SECTORS
REPRESENTED.—The National
Board shall consist of representatives from each of—
‘‘(A) nationally recognized entrepreneurship
organizations;
‘‘(B) regional strategy and development or-
ganizations;
‘‘(C) community-based organizations;
‘‘(D) elected members of county and munic-
ipal governments;
‘‘(E) elected members of State legislatures;
‘‘(F) primary, secondary, and higher edu-
cation, job skills training, and workforce develop-
ment institutions;
‘‘(G) the rural philanthropic community;
‘‘(H) financial, lending, venture capital, en-
trepreneurship, and other related institutions;
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‘‘(I) private sector business organizations,
including chambers of commerce and other for-
profit business interests;
‘‘(J) Indian tribes; and
‘‘(K) cooperative organizations.
‘‘(4) SELECTION OF MEMBERS.—
‘‘(A) IN GENERAL.—In selecting members of
the National Board, the Secretary shall consider
recommendations made by—
‘‘(i) the chairman and ranking mem-
ber of each of the Committee on Agriculture
of the House of Representatives and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate;
‘‘(ii) the Majority Leader and Minor-
ity Leader of the Senate; and
‘‘(iii) the Speaker and Minority Lead-
er of the House of Representatives.
‘‘(B) EX-OFFICIO MEMBERS.—In consulta-
tion with the chairman and ranking member of
each of the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Sen-
ate, the Secretary may appoint not more than 3
other officers or employees of the Executive
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Branch to serve as ex-officio, non-voting mem-
bers of the National Board.
‘‘(5) TERM OF OFFICE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term of office of a member of the
National Board appointed under paragraph
(1)(A) shall be for a period of not more than 4
years.
‘‘(B) STAGGERED TERMS.—The members of
the National Board shall be appointed to serve
staggered terms.
‘‘(6) INITIAL
APPOINTMENTS.—Not later than
120 days after the date of enactment of the Food and
Energy Security Act of 2007, the Secretary shall ap-
point the initial members of the National Board.
‘‘(7) VACANCIES.—A vacancy on the National
Board shall be filled in the same manner as the origi-
nal appointment.
‘‘(8) COMPENSATION.—A member of the National
Board shall receive no compensation for service on the
National Board, but shall be reimbursed for related
travel and other expenses incurred in carrying out the
duties of the member of the National Board in accord-
ance with section 5702 and 5703 of title 5, United
States Code.
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‘‘(9) CHAIRPERSON.—The National Board shall
select a chairperson from among the members of the
National Board.
‘‘(10) FEDERAL STATUS.—For purposes of Fed-
eral law, a member of the National Board shall be
considered a special Government employee (as defined
in section 202(a) of title 18, United States Code).
‘‘(f) ADMINISTRATIVE SUPPORT.—The Secretary, on a
reimbursable basis from funds made available under section
385H(b)(3), may provide such administrative support to
the National Board as the Secretary determines is necessary
to carry out the duties of the National Board.
‘‘SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.
‘‘(a) IN GENERAL.—A Regional Rural Investment
Board shall be a multijurisdictional and multisectoral
group that—
‘‘(1) represents the long-term economic, commu-
nity, and cultural interests of a region;
‘‘(2) is certified by the Secretary to establish a
rural investment strategy and compete for regional
innovation grants;
‘‘(3) is composed of residents of a region that are
broadly representative of diverse public, nonprofit,
and private sector interests in investment in the re-
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gion, including (to the maximum extent practicable)
representatives of—
‘‘(A) units of local government (including
multijurisdictional units of local government);
‘‘(B) nonprofit community-based develop-
ment organizations, including community devel-
opment financial institutions and community
development corporations;
‘‘(C) agricultural, natural resource, and
other asset-based related industries;
‘‘(D) in the case of regions with federally
recognized Indian tribes, Indian tribes;
‘‘(E) regional development organizations;
‘‘(F) private business organizations, includ-
ing chambers of commerce;
‘‘(G)(i) institutions of higher education (as
defined in section 101(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001(a)));
‘‘(ii) tribally controlled colleges or univer-
sities (as defined in section 2(a) of Tribally Con-
trolled College or University Assistance Act of
1978 (25 U.S.C. 1801(a))); and
‘‘(iii) tribal technical institutions;
‘‘(H) workforce and job training organiza-
tions;