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‘‘(II) the number of land-grant
colleges and universities comprising the
consortium; and
‘‘(ii) each land-grant college or univer-
sity that is a member of the consortium
shall receive an equal percentage of the total
amount of funds awarded.
‘‘(4) SELECTION.—At least once every 180 days,
the Secretary shall evaluate, prioritize, and fund ap-
plications for proposed projects and activities under
the extension program using the criteria established
under paragraph (2)(A)(i)(I).
‘‘(e) EVALUATION.—
‘‘(1) IN GENERAL.—Not later than 1 year after
a project or activity under the extension program is
funded by a grant under this section, the evaluation
panel established under paragraph (2)(A) shall evalu-
ate the project or activity.
‘‘(2) EVALUATION PANEL.—
‘‘(A) IN GENERAL.—Not later than 30 days
after the date of enactment of this section, the
Secretary shall establish an evaluation panel
to—
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‘‘(i) establish criteria for evaluating
projects and activities under the extension
program; and
‘‘(ii) using the criteria established
under clause (i), evaluate the projects and
activities.
‘‘(B) COMPOSITION.—The evaluation panel
shall be composed of—
‘‘(i) appropriate Federal, State, local
government, and land-grant college or uni-
versity officials, as determined by the Sec-
retary; and
‘‘(ii) private individuals with expertise
in electronic commerce, technology, or small
business, as determined by the Secretary.
‘‘(3) CRITERIA.—The evaluation panel shall
evaluate projects and activities under the extension
program using criteria established by the Secretary
that assess the efficiency and efficacy of the extension
program.
‘‘(4) ASSISTANCE FROM GRANT RECIPIENTS.—A
recipient of a grant under this section shall, to the
maximum extent practicable, provide to the evalua-
tion panel such materials as the evaluation panel
may request to assist in the evaluation of any project
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or activity carried out by the recipient under the ex-
tension program.
‘‘(f) REPORT.—Not later than 2 years after the date
of enactment of this section, the Secretary shall submit to
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes—
‘‘(1) the policies, practices, and procedures used
to assist rural communities in efforts to adopt and
use electronic commerce techniques;
‘‘(2) the clearinghouse system for States, commu-
nities, small businesses, and individuals established to
obtain information regarding best practices, tech-
nology transfer, training, education, adoption, and
use of electronic commerce in rural areas; and
‘‘(3) the criteria used for the submission, evalua-
tion, and funding of projects and activities under the
extension program.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $60,000,000 for
each of fiscal years 2002 through 2006, of which
$20,000,000 for each fiscal year shall be made avail-
able to carry out activities under subsection (d)(1)(A).
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‘‘(2) ADMINISTRATIVE
COSTS.—The Secretary
may use not more than 2 percent of the funds made
available under paragraph (1) to pay administrative
costs incurred in carrying out this section.’’.
SEC. 734. HIGH-PRIORITY RESEARCH AND EXTENSION INI-
TIATIVES.
Section 1672 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925) is amended
(1) in subsection (e), by adding at the end the
following:
‘‘(25) ANIMAL INFECTIOUS DISEASES RESEARCH
AND EXTENSION.—
‘‘(A) IN GENERAL.—Research and extension
grants may be made under this section for the
purpose of developing—
‘‘(i) prevention and control methodolo-
gies for animal infectious diseases that im-
pact trade, including vesicular stomatitis,
bovine 
tuberculosis, 
transmissible
spongiform encephalopathy, brucellosis, and
E. coli 0157:H7 infection;
‘‘(ii) laboratory tests for quicker detec-
tion of infected animals and presence of dis-
eases among herds;
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‘‘(iii) prevention strategies, including
vaccination programs; and
‘‘(iv) rapid diagnostic techniques for
animal disease agents considered to be risks
for agricultural bioterrorism attack, includ-
ing evaluation of the techniques.
‘‘(B) 
COLLABORATION.—Research 
under
subparagraph (A) may be conducted in collabo-
ration with scientists from the Department, other
Federal agencies, universities, and industry.
‘‘(C) EVALUATION
OF
DIAGNOSTIC
TECH-
NIQUES
AND
VACCINES.—Any research on or
evaluation of diagnostic techniques and vaccines
under subparagraph (A) shall include evaluation
of diagnostic techniques and vaccines under field
conditions in countries in which the animal dis-
ease occurs.
‘‘(26) PROGRAM TO COMBAT CHILDHOOD OBE-
SITY.—Research and extension grants may be made
under this section to institutions of higher education
with demonstrated capacity in basic and clinical obe-
sity research, nutrition research, and community
health education research to develop and evaluate
community-wide strategies that catalyze partnerships
between families and health care, education, recre-
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ation, mass media, and other community resources to
reduce the incidence of childhood obesity.
‘‘(27) INTEGRATED
PEST
MANAGEMENT.—Re-
search and extension grants may be made under this
section to land grant colleges and universities, other
Federal agencies, and other interested persons to co-
ordinate and improve research, education, and out-
reach on, and implementation on farms of, integrated
pest management.
‘‘(28) BEEF CATTLE GENETICS.—
‘‘(A) IN GENERAL.—Research and extension
grants for beef cattle genetics evaluation research
may be made under this section to institutions
of higher education, or consortia of institutions
of higher education, that—
‘‘(i) have expertise in beef cattle genetic
evaluation research and technology; and
‘‘(ii) have been actively involved, for at
least 20 years, in the estimation and pre-
diction of progeny differences for publica-
tion and use by seed stock producer breed
associations.
‘‘(B) PRIORITY.—In making grants under
subparagraph (A), the Secretary shall give pri-
ority to proposals to—
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‘‘(i) establish and coordinate priorities
for genetic evaluation of domestic beef cattle;
‘‘(ii) consolidate research efforts to re-
duce duplication of effort and maximize the
return to beef industry;
‘‘(iii) streamline the process between
the development and adoption of new ge-
netic evaluation methodologies by the indus-
try;
‘‘(iv) identify new traits and tech-
nologies for inclusion in genetic programs
in order to—
‘‘(I) reduce the costs of beef pro-
duction; and
‘‘(II) provide consumers with a
high nutritional value, healthy, and af-
fordable protein source; or
‘‘(v) create decisionmaking tools that
incorporate the increasing number of traits
being evaluated and the increasing amount
of information from DNA technology into
genetic improvement programs, with the
goal of optimizing the overall efficiency,
product quality and safety, and health of
the domestic beef cattle herd resource.
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‘‘(29) DAIRY
PIPELINE
CLEANERS.—Research
and extension grants may be made under this section
for the purpose of preventing and eliminating the
dangers of dairy pipeline cleaner, including—
‘‘(A) developing safer packaging mecha-
nisms and a new transfer mechanism, including
a new pumping mechanism for dairy pipeline
cleaner;
‘‘(B) outlining—
‘‘(i) the accident history for dairy
pipeline cleaner;
‘‘(ii) the causes of accidents involving
dairy pipeline cleaner; and
‘‘(iii) potential means of prevention of
such accidents, including improved labeling
and pump structure; and
‘‘(C) other means of improving efforts to
prevent ingestion of dairy pipeline cleaner.
‘‘(30) DEVELOPMENT OF PUBLICLY HELD PLANTS
AND
ANIMAL
VARIETIES; GENETIC
RESOURCE
CON-
SERVATION
ACTIVITIES.—Research 
and 
extension
grants may be made under this section to colleges and
universities, other Federal agencies, plant breeders,
and other interested persons for the purpose of—
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‘‘(A) development of publicly held plants
and animal varieties (including germplasm for
identity-preserved markets); and
‘‘(B) genetic resource conservation activi-
ties.’’; and
(2) in subsection (h), by striking ‘‘2002’’ and in-
serting ‘‘2006’’, of which not less than $100,000 for
each of fiscal years 2002 through 2006 shall be used
to carry out subsection (e)(29).
SEC. 735. NUTRIENT MANAGEMENT RESEARCH AND EXTEN-
SION INITIATIVE.
Section 1672A(g) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5925a(g)) is amend-
ed by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 736. ORGANIC AGRICULTURE RESEARCH AND EXTEN-
SION INITIATIVE.
Section 1672B of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925b) is amended—
(1) in subsection (a)—
(A) by inserting after ‘‘Board,’’ the fol-
lowing: ‘‘and the National Organic Standards
Board,’’;
(B) in paragraph (2), by striking ‘‘and’’ at
the end;
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(C) in paragraph (3), by striking the period
at the end and inserting a semicolon; and
(D) by adding at the end the following:
‘‘(4) determining desirable traits for organic
commodities using advanced genomics, field trials,
and other methods;
‘‘(5) pursuing classical and marker-assisted
breeding for publicly held varieties of crops and ani-
mals optimized for organic systems;
‘‘(6) identifying marketing and policy con-
straints on the expansion of organic agriculture; and
‘‘(7) conducting advanced on-farm research and
development that emphasizes observation of, experi-
mentation with, and innovation for working organic
farms, including research relating to production and
marketing and to socioeconomic conditions.’’; and
(2) in subsection (e), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 737. AGRICULTURAL TELECOMMUNICATIONS PRO-
GRAM.
Section 1673(h) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amended
by striking ‘‘2002’’ and inserting ‘‘2006’’.
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SEC. 738. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS
WITH DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is
amended by striking ‘‘2002’’ and inserting ‘‘2006’’.
Subtitle C—Agricultural Research,
Extension, and Education Re-
form Act of 1998
SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND
FOOD SYSTEMS.
Section 401 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621) is
amended—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) FUNDING.—
‘‘(1) IN
GENERAL.—Out of any funds in the
Treasury not otherwise appropriated, the Secretary of
the Treasury shall transfer to the Account to carry
out this section—
‘‘(A) on October 1, 1998 and each October
thereafter 
through 
October 
1, 
2001,
$120,000,000; and
‘‘(B) on October 1, 2002, and each October
thereafter 
through 
October 
1, 
2005,
$145,000,000.
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‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.’’; and
(2) in subsection (e), by adding at the end the
following:
‘‘(3) 
MINORITY-SERVING
INSTITUTIONS.—The
Secretary shall consider reserving, to the maximum
extent practicable, 10 percent of the funds made
available to carry out this section for a fiscal year for
grants to minority-serving institutions.’’.
SEC. 742. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL
PRODUCT QUALITY RESEARCH.
Section 402(g) of the Agricultural Research, Exten-
sion, and Education Reform Act of 1998 (7 U.S.C. 7622(g))
is amended by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 743. PRECISION AGRICULTURE.
Section 403 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7623) is
amended—
(1) in subsection (a)—
(A) in paragraph (3)—
(i) in subparagraph (A), inserting ‘‘or
horticultural’’ following ‘‘agronomic’’; and
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(ii) in subparagraph (C), by striking
‘‘or’’ at the end;
(iii) in subparagraph (D), by striking
the period at the end and inserting ‘‘; or’’;
and
(iv) by adding at the end the following:
‘‘(E) using such information to enable intel-
ligent mechanized harvesting and sorting systems
for horticultural crops.’’;
(B) in paragraph (4)—
(i) in subparagraph (C), by striking
‘‘or’’ at the end;
(ii) in subparagraph (D), by striking
the period at the end and inserting ‘‘; or’’;
and
(iii) by adding at the end the fol-
lowing:
‘‘(E) robotic and other intelligent machines
for use in horticultural cropping systems.’’; and
(C) in paragraph (5)(F), by inserting ‘‘(in-
cluding improved use of energy inputs)’’ after
‘‘farm production efficiencies’’;
(2) in subsection (c)(2)—
(A) by inserting ‘‘or horticultural’’ after
‘‘agronomic’’; and
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(B) by striking ‘‘and meteorological varia-
bility’’ and inserting ‘‘product variability, and
meteorological variability’’;
(3) in subsection (d)—
(A) by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) Improve farm energy use efficiencies.’’; and
(4) in subsection (i)(1), by striking ‘‘2002’’ and
inserting ‘‘2006’’.
SEC. 744. BIOBASED PRODUCTS.
Section 404 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7624) is
amended—
(1) in subsection (e)(2), by striking ‘‘2001’’ and
inserting ‘‘2006’’; and
(2) in subsection (h), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 745. THOMAS JEFFERSON INITIATIVE FOR CROP DI-
VERSIFICATION.
Section 405(h) of the Agricultural Research, Exten-
sion, and Education Reform Act of 1998 (7 U.S.C. 7625(h))
is amended by striking ‘‘2002’’ and inserting ‘‘2006’’.
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SEC. 746. INTEGRATED RESEARCH, EDUCATION, AND EX-
TENSION COMPETITIVE GRANTS PROGRAM.
Section 406 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626) is
amended—
(1) by redesignating subsection (e) as subsection
(f);
(2) by inserting after subsection (d) the fol-
lowing:
‘‘(e) TERM OF GRANT.—A grant under this section
shall have a term of not more than 5 years.’’; and
(3) in subsection (f) (as so redesignated), by
striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 747. SUPPORT FOR RESEARCH REGARDING DISEASES
OF WHEAT AND BARLEY CAUSED BY FUSAR-
IUM GRAMINEARUM.
Section 408(e) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7628(e)) is
amended by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 748. BOVINE JOHNE’S DISEASE CONTROL PROGRAM.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is
amended by adding at the end the following:
‘‘SEC. 409. BOVINE JOHNE’S DISEASE CONTROL PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary, in coordina-
tion with State veterinarians and other appropriate State
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animal health professionals, may establish a program to
conduct research, testing, and evaluation of programs for
the control and management of Johne’s disease in livestock.
‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
such sums as are necessary for each of fiscal years 2002
through 2006.’’.
SEC. 749. GRANTS FOR YOUTH ORGANIZATIONS.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as
amended by section 748) is amended by adding at the end
the following:
‘‘SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Administrator of the Cooperative State Research, Edu-
cation, and Extension Service, shall make grants to the Girl
Scouts of the United States of America, the Boy Scouts of
America, the National 4–H Council, and the National FFA
Organization to establish pilot projects to expand the pro-
grams carried out by the organizations in rural areas and
small towns (including, with respect to the National 4–H
Council, activities provided for in Public Law 107–19 (115
Stat. 153)).
‘‘(b) FUNDING.—Of the funds of the Commodity Credit
Corporation, the Secretary shall make available $8,000,000
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for fiscal year 2002, which shall remain available until ex-
pended.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2003 through
2006.’’.
SEC. 750. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND
DEVELOPMENT 
FOR 
DEVELOPING 
COUN-
TRIES.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as
amended by section 749) is amended by adding at the end
the following:
‘‘SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH
AND DEVELOPMENT FOR DEVELOPING COUN-
TRIES.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
‘‘(A) an institution of higher education;
‘‘(B) a nonprofit organization; or
‘‘(C) a consortium of for-profit institutions
and agricultural research institutions.
‘‘(2) INSTITUTION OF HIGHER EDUCATION.—The
term ‘institution of higher education’ means—
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‘‘(A) a historically black land-grant college
or university;
‘‘(B) a Hispanic-serving institution (as de-
fined in section 1404 of the National, Agricul-
tural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)); or
‘‘(C) a tribal college or university that offers
a curriculum in agriculture or the biosciences.
‘‘(b) GRANT PROGRAM.—
‘‘(1) 
IN
GENERAL.—The 
Secretary 
(acting
through the Foreign Agricultural Service) shall estab-
lish and administer a program to make competitive
grants to eligible entities to develop agricultural bio-
technology for developing countries.
‘‘(2) USE OF FUNDS.—Funds provided to an eli-
gible entity under this section may be used for
projects that use biotechnology to—
‘‘(A) enhance the nutritional content of ag-
ricultural products that can be grown in devel-
oping countries;
‘‘(B) increase the yield and safety of agri-
cultural products that can be grown in devel-
oping countries;
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‘‘(C) increase the yield of agricultural prod-
ucts that are drought- and stress-resistant and
that can be grown in developing countries;
‘‘(D) extend the growing range of crops that
can be grown in developing countries;
‘‘(E) enhance the shelf-life of fruits and
vegetables grown in developing countries;
‘‘(F) develop environmentally sustainable
agricultural products that can be grown in devel-
oping countries; and
‘‘(G) develop vaccines to immunize against
life-threatening illnesses and other medications
that can be administered by consuming geneti-
cally-engineered agricultural products.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$5,000,000 for each of fiscal years 2002 through 2006.’’.
SEC. 750A. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7653(f)) is
amended by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 750B. SENIOR SCIENTIFIC RESEARCH SERVICE.
Subtitle B of title VI of the Agricultural Research, Ex-
tension, and Education Reform Act of 1998 (7 U.S.C. 7651
et seq.) is amended by adding at the end the following:
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‘‘SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.
‘‘(a) IN GENERAL.—There is established in the Depart-
ment of Agriculture the Senior Scientific Research Service
(referred to in this section as the ‘Service’).
‘‘(b) MEMBERS.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
through (4), the Secretary shall appoint the members
of the Service.
‘‘(2) QUALIFICATIONS.—To be eligible for ap-
pointment to the Service, an individual shall—
‘‘(A) have conducted outstanding research
in the field of agriculture or forestry;
‘‘(B) have earned a doctoral level degree at
an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001)); and
‘‘(C) meet qualification standards pre-
scribed by the Director of the Office of Personnel
Management for appointment to a position at
level GS–15 of the General Schedule.
‘‘(3) NUMBER.—Not more than 100 individuals
may serve as members of the Service at any 1 time.
‘‘(4) OTHER REQUIREMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) and subsection (d)(2), the Secretary
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may appoint and employ a member of the Serv-
ice without regard to—
‘‘(i) the provisions of title 5, United
States Code, governing appointments in the
competitive service;
‘‘(ii) the provisions of subchapter I of
chapter 35 of title 5, United States Code,
relating to retention preference;
‘‘(iii) the provisions of chapter 43 of
title 5, United States Code, relating to per-
formance appraisal and performance ac-
tions;
‘‘(iv) the provisions of chapter 51 and
subchapter III of chapter 53 of title 5,
United States Code, relating to classifica-
tion and General Schedule pay rates; and
‘‘(v) the provisions of chapter 75 of
title 5, United States Code, relating to ad-
verse actions.
‘‘(B) EXCEPTION.—A member of the Service
appointed and employed by the Secretary under
subparagraph (A) shall have the same right of
appeal to the Merit Systems Protection Board
and the same right to file a complaint with the
Office of Special Counsel as an employee ap-
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pointed to a position at level GS–15 of the Gen-
eral Schedule.
‘‘(c) PERFORMANCE APPRAISAL SYSTEM.—The Sec-
retary shall develop a performance appraisal system for
members of the Service that is designed to—
‘‘(1) provide for the systematic appraisal of the
employment performance of the members; and
‘‘(2) encourage excellence in employment per-
formance by the members.
‘‘(d) COMPENSATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall determine the compensation of mem-
bers of the Service.
‘‘(2) LIMITATIONS.—The rate of pay for a mem-
ber of the Service shall—
‘‘(A) not be less than the minimum rate
payable for a position at level GS–15 of the Gen-
eral Schedule; and
‘‘(B) not be more than the rate payable for
a position at level I of the Executive Schedule,
unless the rate is approved by the President
under section 5377(d)(2) of title 5, United States
Code.
‘‘(e) RETIREMENT CONTRIBUTIONS.—
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‘‘(1) IN GENERAL.—On the request of a member
of the Service who was an employee of an institution
of higher education (as defined in section 101 of the
Higher Education Act of 1965 (20 U.S.C. 1001)) im-
mediately prior to appointment as a member of the
Service and who retains the right to continue to make
contributions to the retirement system of the institu-
tion, the Secretary may contribute an amount not to
exceed 10 percent of the basic pay of the member to
the retirement system of the institution on behalf of
the member.
‘‘(2) FEDERAL RETIREMENT SYSTEM.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a member for whom a contribution is
made under paragraph (1) shall not, as a result
of serving as a member of the Service, be covered
by, or earn service credit under, chapter 83 or 84
of title 5, United States Code.
‘‘(B) ANNUAL LEAVE.—Service of a member
of the Service described in subparagraph (A)
shall be creditable for determining years of serv-
ice under section 6303(a) of title 5, United
States Code.
‘‘(f) INVOLUNTARY SEPARATION.—
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‘‘(1) IN
GENERAL.—Subject to paragraph (2)
and notwithstanding the provisions of title 5, United
States Code, governing appointment in the competi-
tive service, in the case of an individual who is sepa-
rated from the Service involuntarily and without
cause—
‘‘(A) the Secretary may appoint the indi-
vidual to a position in the competitive civil serv-
ice at level GS–15 of the General Schedule; and
‘‘(B) the appointment shall be a career ap-
pointment.
‘‘(2) EXCEPTED CIVIL SERVICE.—In the case of
an individual described in paragraph (1) who imme-
diately prior to appointment as a member of the
Service was not a career appointee in the civil service
or the Senior Executive Service, the appointment of
the individual under paragraph (1)—
‘‘(A) shall be to the excepted civil service;
and
‘‘(B) may not exceed a period of 2 years.’’.
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Subtitle D—Land-Grant Funding
CHAPTER 1—1862 INSTITUTIONS
SEC. 751. CARRYOVER.
Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g)
is amended by striking subsection (c) and inserting the fol-
lowing:
‘‘(c) CARRYOVER.—
‘‘(1) IN GENERAL.—The balance of any annual
funds provided under this Act to a State agricultural
experiment station for a fiscal year that remains un-
expended at the end of the fiscal year may be carried
over for use during the following fiscal year.
‘‘(2) FAILURE TO EXPEND FULL ALLOTMENT.—
If any unexpended balance carried over by a State is
not expended by the end of the second fiscal year, an
amount equal to the unexpended balance shall be de-
ducted from the next succeeding annual allotment to
the State.’’.
SEC. 752. REPORTING OF TECHNOLOGY TRANSFER ACTIVI-
TIES.
Section 7(e) of the Hatch Act of 1887 (7 U.S.C.
361g(e)) is amended by adding at the end the following:
‘‘(5) The technology transfer activities conducted
with respect to federally-funded agricultural re-
search.’’.
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SEC. 753. COMPLIANCE WITH MULTISTATE AND INTEGRA-
TION REQUIREMENTS.
(a) MULTISTATE COOPERATIVE EXTENSION ACTIVI-
TIES.—Section 3 of the Smith-Lever Act (7 U.S.C. 343) is
amended by striking subsection (h) and inserting the fol-
lowing:
‘‘(h) MULTISTATE COOPERATIVE EXTENSION ACTIVI-
TIES.—
‘‘(1) DEFINITION OF MULTISTATE ACTIVITY.—In
this subsection, the term ‘multistate activity’ means a
cooperative extension activity in which 2 or more
States cooperate to resolve problems that concern more
than 1 State.
‘‘(2) REQUIREMENT.—
‘‘(A) IN
GENERAL.—To receive funding
under subsections (b) and (c) for a fiscal year,
a State must have expended on multistate activi-
ties, in the preceding fiscal year, an amount
equivalent to not less than 25 percent of the
funds paid to the State under subsections (b)
and (c) for the preceding fiscal year.
‘‘(B) DETERMINATION OF AMOUNT.—In de-
termining compliance with subparagraph (A),
the Secretary shall include all cooperative exten-
sion funds expended by the State in the pre-
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ceding fiscal year, including Federal, State, and
local funds.
‘‘(3) REDUCTION
OF
PERCENTAGE.—The Sec-
retary may reduce the minimum percentage required
to be expended for multistate activities under para-
graph (2) by a State in a case of hardship,
unfeasibility, or other similar circumstances beyond
the control of the State, as determined by the Sec-
retary.
‘‘(4) PLAN OF WORK.—The State shall include in
the plan of work of the State required under section
4 a description of the manner in which the State will
meet the requirements of this subsection.
‘‘(5) APPLICABILITY.—This subsection does not
apply to funds provided—
‘‘(A) to a 1994 Institution (as defined in
section 532 of the Equity in Educational Land-
Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103–382)); or
‘‘(B) to the Commonwealth of Puerto Rico,
the Virgin Islands, or Guam.’’.
(b) INTEGRATED RESEARCH AND EXTENSION ACTIVI-
TIES.—Section 3 of the Hatch Act of 1887 (7 U.S.C. 361c)
is amended by striking subsection (i) and inserting the fol-
lowing:
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‘‘(i) INTEGRATED RESEARCH AND EXTENSION ACTIVI-
TIES.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT.—To receive funding
under this Act and subsections (b) and (c) of sec-
tion 3 of the Smith-Lever Act (7 U.S.C. 343) for
a fiscal year, a State must have expended on ac-
tivities that integrate cooperative research and
extension (referred to in this section as ‘inte-
grated activities’), in the preceding fiscal year,
an amount equivalent to not less than 25 percent
of the funds paid to the State under this section
and subsections (b) and (c) of section 3 of the
Smith-Lever Act (7 U.S.C. 343) for the preceding
fiscal year.
‘‘(B) DETERMINATION OF AMOUNT.—In de-
termining compliance with subparagraph (A),
the Secretary shall include all cooperative re-
search and extension funds expended by the State
in the prior fiscal year, including Federal, State,
and local funds.
‘‘(2) REDUCTION
OF
PERCENTAGE.—The Sec-
retary may reduce the minimum percentage required
to be expended for integrated activities under para-
graph (1) by a State in a case of hardship,
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unfeasibility, or other similar circumstances beyond
the control of the State, as determined by the Sec-
retary.
‘‘(3) PLAN OF WORK.—The State shall include in
the plan of work of the State required under section
7 of this Act and under section 4 of the Smith-Lever
Act (7 U.S.C. 344), as applicable, a description of the
manner in which the State will meet the requirements
of this subsection.
‘‘(4) APPLICABILITY.—This subsection does not
apply to funds provided—
‘‘(A) to a 1994 Institution (as defined in
section 532 of the Equity in Educational Land-
Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103–382)); or
‘‘(B) to the Commonwealth of Puerto Rico,
the Virgin Islands, or Guam.
‘‘(5) 
RELATIONSHIP
TO
OTHER
REQUIRE-
MENTS.—Funds described in paragraph (1)(B) that a
State uses to calculate the required amount of expend-
itures for integrated activities under paragraph
(1)(A) may also be used in the same fiscal year to
calculate the amount of expenditures for multistate
activities required under subsection (c)(3) of this sec-
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tion and section 3(h) of the Smith-Lever Act (7
U.S.C. 343(h)).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section take effect on October 1, 2002.
CHAPTER 2—1994 INSTITUTIONS
SEC. 754. EXTENSION AT 1994 INSTITUTIONS.
Section 3(b) of the Smith-Lever Act (7 U.S.C. 343(b))
is amended by striking paragraph (3) and inserting the fol-
lowing:
‘‘(3) EXTENSION AT 1994 INSTITUTIONS.—
‘‘(A) IN GENERAL.—There are authorized to
be appropriated for fiscal year 2002 and each
subsequent fiscal year, for payment to 1994 In-
stitutions (as defined in section 532 of the Eq-
uity in Educational Land-Grant Status Act of
1994 (7 U.S.C. 301 note; Public Law 103–382)),
such sums as are necessary for the purposes set
forth in section 2, to remain available until ex-
pended.
‘‘(B) DISTRIBUTION.—Amounts made avail-
able under subparagraph (A)—
‘‘(i) shall be distributed on the basis of
a formula to be developed and implemented
by the Secretary, in consultation with the
1994 Institutions; and
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‘‘(ii) may include payments for exten-
sion activities carried out during 1 or more
fiscal years.
‘‘(C) COOPERATIVE
AGREEMENT.—In ac-
cordance with such regulations as the Secretary
may promulgate, a 1994 Institution may admin-
ister funds received under this paragraph
through a cooperative agreement with an 1862
Institution or an 1890 Institution (as those
terms are defined in section 2 of the Agricultural
Research, Extension, and Education Reform Act
of 1998 (7 U.S.C. 7601)).’’.
SEC. 755. EQUITY IN EDUCATIONAL LAND-GRANT STATUS
ACT OF 1994.
(a) TECHNICAL AMENDMENT TO REFLECT NAME
CHANGES.—Section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103–382) is amended by striking paragraphs (1)
through (30) and inserting the following:
‘‘(1) Bay Mills Community College.
‘‘(2) Blackfeet Community College.
‘‘(3) Cankdeska Cikana Community College.
‘‘(4) College of Menominee Nation.
‘‘(5) Crownpoint Institute of Technology.
‘‘(6) D-Q University.
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‘‘(7) Dine´ College.
‘‘(8) Chief Dull Knife Memorial College.
‘‘(9) Fond du Lac Tribal and Community Col-
lege.
‘‘(10) Fort Belknap College.
‘‘(11) Fort Berthold Community College.
‘‘(12) Fort Peck Community College.
‘‘(13) Haskell Indian Nations University.
‘‘(14) Institute of American Indian and Alaska
Native Culture and Arts Development.
‘‘(15) Lac Courte Oreilles Ojibwa Community
College.
‘‘(16) Leech Lake Tribal College.
‘‘(17) Little Big Horn College.
‘‘(18) Little Priest Tribal College.
‘‘(19) Nebraska Indian Community College.
‘‘(20) Northwest Indian College.
‘‘(21) Oglala Lakota College.
‘‘(22) Salish Kootenai College.
‘‘(23) Sinte Gleska University.
‘‘(24) Sisseton Wahpeton Community College.
‘‘(25) Si Tanka/Huron University.
‘‘(26) Sitting Bull College.
‘‘(27) Southwestern Indian Polytechnic Institute.
‘‘(28) Stone Child College.
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‘‘(29) Turtle Mountain Community College.
‘‘(30) United Tribes Technical College.
‘‘(31) White Earth Tribal and Community Col-
lege.’’.
(b) ACCREDITATION REQUIREMENT FOR RESEARCH
GRANTS.—Section 533(a)(3) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103–382) is amended by striking ‘‘sections 534 and
535’’ and inserting ‘‘sections 534, 535, and 536’’.
(c) LAND-GRANT STATUS FOR 1994 INSTITUTIONS.—
Section 533(b) of the Equity in Educational Land-Grant
Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–
382) is amended by striking ‘‘$4,600,000 for each of fiscal
years 1996 through 2002’’ and inserting ‘‘such sums as are
necessary for each of fiscal years 2002 through 2006’’.
(d) CHANGE OF INDIAN STUDENT COUNT FORMULA.—
Section 533(c)(4)(A) of the Equity in Educational Land-
Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103–382) is amended by striking ‘‘(as defined in section
390(3) of the Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2397h(3)) for each 1994
Institution for the fiscal year’’ and inserting ‘‘(as defined
in section 2(a) of the Tribally Controlled College or Univer-
sity Assistance Act of 1978 (25 U.S.C. 1801(a)))’’.
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(e) INCREASE IN INSTITUTIONAL PAYMENTS.—Section
534(a)(1)(A) of the Equity in Educational Land-Grant
Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–
382) is amended by striking ‘‘$50,000’’ and inserting
‘‘$100,000’’.
(f) INSTITUTIONAL CAPACITY BUILDING GRANTS.—
Section 535 of the Equity in Educational Land-Grant Sta-
tus Act of 1994 (7 U.S.C. 301 note; Public Law 103–382)
is amended—
(1) in subsection (b)(1), by striking ‘‘2002’’ and
inserting ‘‘2006’’; and
(2) in subsection (c), by striking ‘‘$1,700,000 for
each of fiscal years 1996 through 2002’’ and inserting
‘‘such sums as are necessary for each of fiscal years
2002 through 2006’’.
(g) RESEARCH GRANTS.—Section 536(c) of the Equity
in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103–382) is amended by striking
‘‘2002’’ and inserting ‘‘2006’’.
SEC. 756. ELIGIBILITY FOR INTEGRATED GRANTS PRO-
GRAM.
Section 406(b) of the Agricultural Research, Exten-
sion, and Education Reform Act of 1998 (7 U.S.C. 7626(b))
is amended by inserting ‘‘and 1994 Institutions’’ before ‘‘on
a competitive basis’’.
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CHAPTER 3—1890 INSTITUTIONS
SEC. 757. AUTHORIZATION PERCENTAGES FOR RESEARCH
AND EXTENSION FORMULA FUNDS.
(a) EXTENSION.—Section 1444(a) of the National Ag-
ricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221(a)) is amended—
(1) by striking ‘‘(a) There’’ and inserting the fol-
lowing:
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There’’;
(2) by striking the second sentence; and
(3) in the third sentence, by striking ‘‘Begin-
ning’’ through ‘‘6 per centum’’ and inserting the fol-
lowing:
‘‘(2) MINIMUM AMOUNT.—Beginning with fiscal
year 2002, there shall be appropriated under this sec-
tion for each fiscal year an amount that is not less
than 15 percent’’;
(3) by striking ‘‘Funds appropriated’’ and in-
serting the following:
‘‘(3) USES.—Funds appropriated’’; and
(4) by striking ‘‘No more’’ and inserting the fol-
lowing:
‘‘(4) CARRYOVER.—No more’’.
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(b) RESEARCH.—Section 1445(a) of the National Agri-
cultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3222(a)) is amended—
(1) by striking ‘‘(a) There’’ and inserting the fol-
lowing:
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There’’;
(2) by striking the second sentence and inserting
the following:
‘‘(2) MINIMUM AMOUNT.—Beginning with fiscal
year 2002, there shall be appropriated under this sec-
tion for each fiscal year an amount that is not less
than 25 percent of the total appropriations for the fis-
cal year under section 3 of the Hatch Act of 1887 (7
U.S.C. 361c).’’;
(3) by striking ‘‘Funds appropriated’’ and in-
serting the following:
‘‘(3) USES.—Funds appropriated’’;
(4) by striking ‘‘The eligible’’ and inserting the
following:
‘‘(4) COORDINATION.—The eligible’’; and
(5) by striking ‘‘No more’’ and inserting the fol-
lowing:
‘‘(5) CARRYOVER.—No more’’.
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SEC. 758. CARRYOVER.
Section 1445(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222(a) (as amended by section 757(b)) is amended by
striking paragraph (5) and inserting the following:
‘‘(5) CARRYOVER.—
‘‘(A) IN GENERAL.—The balance of any an-
nual funds provided to an eligible institution for
a fiscal year under this section that remains un-
expended at the end of the fiscal year may be
carried over for use during the following fiscal
year.
‘‘(B) FAILURE TO EXPEND FULL AMOUNT.—
If any unexpended balance carried over by an el-
igible institution is not expended by the end of
the second fiscal year, an amount equal to the
unexpended balance shall be deducted from the
next succeeding annual allotment to the eligible
institution.’’.
SEC. 759. REPORTING OF TECHNOLOGY TRANSFER ACTIVI-
TIES.
Section 1445(c)(3) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3222(c)(3)) is amended by adding at the end the
following:
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‘‘(F) The technology transfer activities con-
ducted with respect to federally-funded agricul-
tural research.’’.
SEC. 760. GRANTS TO UPGRADE AGRICULTURAL AND FOOD
SCIENCES FACILITIES AT 1890 LAND-GRANT
COLLEGES, INCLUDING TUSKEGEE UNIVER-
SITY.
Section 1447(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222b(b)) is amended by striking ‘‘$15,000,000 for each of
fiscal years 1996 through 2002’’ and inserting ‘‘$25,000,000
for each of fiscal years 2002 through 2006’’.
SEC. 761. NATIONAL RESEARCH AND TRAINING VIRTUAL
CENTERS.
(a) AUTHORIZATION.—Section 1448 of the National
Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3222c) is amended by striking ‘‘2002’’
each place it appears in subsections (a)(1) and (f) and in-
serting ‘‘2006’’.
(b) REDESIGNATION.—Section 1448 of the National
Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3222c) is amended—
(1) in the section heading, by striking ‘‘CEN-
TENNIAL’’ and inserting ‘‘VIRTUAL’’; and
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(2) by striking ‘‘centennial’’ each place it ap-
pears and inserting ‘‘virtual’’.
SEC. 762. MATCHING FUNDS REQUIREMENT FOR RESEARCH
AND EXTENSION ACTIVITIES.
Section 1449 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222d) is amended by striking subsections (c) and (d) and
inserting the following:
‘‘(c) MATCHING FORMULA.—
‘‘(1) IN GENERAL.—For each of fiscal years 2003
through 2006, the State shall provide matching funds
from non-Federal sources.
‘‘(2) AMOUNT.—The amount of the matching
funds shall be equal to not less than—
‘‘(A) for fiscal year 2003, 60 percent of the
formula funds to be distributed to the eligible in-
stitution; and
‘‘(B) for each of fiscal years 2004 through
2006, 110 percent of the amount required under
this paragraph for the preceding fiscal year.
‘‘(d) WAIVERS.—Notwithstanding subsection (f), for
any of fiscal years 2003 through 2006, the Secretary may
waive the matching funds requirement under subsection (c)
for any amount above the level of 50 percent for an eligible
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institution of a State if the Secretary determines that the
State will be unlikely to meet the matching requirement.’’.
CHAPTER 4—LAND-GRANT INSTITUTIONS
Subchapter A—General
SEC. 771. PRIORITY-SETTING PROCESS.
Section 102(c)(1) of the Agricultural Research, Exten-
sion, and Education Reform Act of 1998 (7 U.S.C.
7612(c)(1)) is amended—
(1) by striking ‘‘establish and implement a proc-
ess for obtaining’’ and inserting ‘‘obtain public’’; and
(2) by striking the period at the end and insert-
ing the following: ‘‘through a process that reflects
transparency and opportunity for input from pro-
ducers of diverse agricultural crops and diverse geo-
graphic and cultural communities.’’.
SEC. 772. TERMINATION OF CERTAIN SCHEDULE A AP-
POINTMENTS.
(a) TERMINATION.—Not later than 60 days after the
date of enactment of this Act, the Secretary of Agriculture
shall terminate each appointment listed as an excepted po-
sition under schedule A of the General Schedule made by
the Secretary to the Federal civil service of an individual
who holds dual government appointments, and who carries
out agricultural extension work in a program at a college
or university eligible to receive funds, under—
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(1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
(2) section 1444 of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3221); or
(3) section 208(e) of the District of Columbia
Public Postsecondary Education Reorganization Act
(88 Stat. 1428).
(b) CONTINUATION
OF CERTAIN FEDERAL BENE-
FITS.—
(1) IN
GENERAL.—Notwithstanding title 5,
United States Code, and subject to paragraph (2), an
individual described in subsection (a), during the pe-
riod the individual is employed in an agricultural ex-
tension program described in subsection (a) without
a break in service, shall continue to—
(A) be eligible to participate, to the same
extent that the individual was eligible to partici-
pate (on the day before the date of enactment of
this Act), in—
(i) the Federal Employee Health Bene-
fits Program;
(ii) the Federal Employee Group Life
Insurance Program;
(iii) the Civil Service Retirement Sys-
tem;
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(iv) the Federal Employee Retirement
System; and
(v) the Thrift Savings Plan; and
(B) receive Federal Civil Service employ-
ment credit to the same extent that the indi-
vidual was receiving such credit on the day be-
fore the date of enactment of this Act.
(2) LIMITATIONS.—An individual may continue
to be eligible for the benefits described in paragraph
(1) if—
(A) in the case of an individual who re-
mains employed in the agricultural extension
program described in subsection (a) on the date
of the enactment of this Act, the employing col-
lege or university continues to fulfill the admin-
istrative and financial responsibilities (including
making agency contributions) associated with
providing those benefits, as determined by the
Secretary of Agriculture; and
(B) in the case of an individual who
changes employment to a second college or uni-
versity described in subsection (a)—
(i) the individual continues to work in
an agricultural extension program described
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in subsection (a), as determined by the Sec-
retary of Agriculture;
(ii) the second college or university—
(I) fulfills the administrative and
financial 
responsibilities 
(including
making agency contributions) associ-
ated with providing those benefits, as
determined by the Secretary of Agri-
culture; and
(II) within 120 days before the
date of the employment of the indi-
vidual, had employed a different indi-
vidual described in subsection (a) who
had performed the same duties of em-
ployment; and
(iii) the individual was eligible for
those benefits on the day before the date of
enactment of this Act.
Subchapter B—Land-Grant Institutions in
Insular Areas
SEC. 775. DISTANCE EDUCATION GRANTS PROGRAM FOR IN-
SULAR AREA LAND-GRANT INSTITUTIONS.
The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) (as
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amended by section 723) is amended by adding at the end
the following:
‘‘Subtitle O—Land Grant
Institutions in Insular Areas
‘‘SEC. 1489. DISTANCE EDUCATION GRANTS FOR INSULAR
AREAS.
‘‘(a) IN GENERAL.—The Secretary may make competi-
tive or noncompetitive grants to State cooperative institu-
tions in insular areas to strengthen the capacity of State
cooperative institutions to carry out distance food and agri-
cultural education programs using digital network tech-
nologies.
‘‘(b) USE.—Grants made under this section shall be
used—
‘‘(1) to acquire the equipment, instrumentation,
networking capability, hardware and software, digital
network technology, and infrastructure necessary to
teach students and teachers about technology in the
classroom;
‘‘(2) to develop and provide educational services
(including faculty development) to prepare students
or faculty seeking a degree or certificate that is ap-
proved by the State or a regional accrediting body
recognized by the Secretary of Education;
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‘‘(3) to provide teacher education, library and
media specialist training, and preschool and teacher
aid certification to individuals who seek to acquire or
enhance technology skills in order to use technology in
the classroom or instructional process;
‘‘(4) to implement a joint project to provide edu-
cation regarding technology in the classroom with a
local educational agency, community-based organiza-
tion, national nonprofit organization, or business, in-
cluding a minority business or a business located in
a HUBZone established under section 31 of the Small
Business Act (15 U.S.C. 657a); or
‘‘(5) to provide leadership development to admin-
istrators, board members, and faculty of eligible insti-
tutions with institutional responsibility for technology
education.
‘‘(c) LIMITATION ON USE OF GRANT FUNDS.—Funds
provided under this section shall not be used for the plan-
ning, acquisition, construction, rehabilitation, or repair of
a building or facility.
‘‘(d) ADMINISTRATION OF PROGRAM.—The Secretary
may carry out this section in a manner that recognizes the
different needs and opportunities for State cooperative in-
stitutions in the Atlantic and Pacific Oceans.
‘‘(e) MATCHING REQUIREMENT.—
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‘‘(1) IN GENERAL.—The Secretary may establish-
ment a requirement that a State cooperative institu-
tion receiving a grant under this section shall provide
matching funds from non-Federal sources in an
amount equal to not less than 50 percent of the grant.
‘‘(2) WAIVERS.—If the Secretary establishes a
matching requirement under paragraph (1), the re-
quirement shall include an option for the Secretary to
waive the requirement for an insular area State coop-
erative institution for any fiscal year if the Secretary
determines that the institution will be unlikely to
meet the matching requirement for the fiscal year.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$4,000,000 for each of fiscal years 2002 through 2006.’’.
SEC. 776. MATCHING REQUIREMENTS FOR RESEARCH AND
EXTENSION FORMULA FUNDS FOR INSULAR
AREA LAND-GRANT INSTITUTIONS.
(a) EXPERIMENT STATIONS.—Section 3(d) of the
Hatch Act of 1887 (7 U.S.C. 361c(d)) is amended by strik-
ing paragraph (4) and inserting the following:
‘‘(4) EXCEPTION FOR INSULAR AREAS.—
‘‘(A) IN GENERAL.—Effective beginning for
fiscal year 2003, in lieu of the matching funds
requirement of paragraph (1), the insular areas
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of the Commonwealth of Puerto Rico, Guam, and
the Virgin Islands of the United States shall pro-
vide matching funds from non-Federal sources in
an amount equal to not less than 50 percent of
the formula funds distributed by the Secretary to
each of the insular areas, respectively, under this
section.
‘‘(B) WAIVERS.—The Secretary may waive
the matching fund requirement of subparagraph
(A) for any fiscal year if the Secretary deter-
mines that the government of the insular area
will be unlikely to meet the matching require-
ment for the fiscal year.’’.
(b) COOPERATIVE AGRICULTURAL EXTENSION.—Sec-
tion 3(e) of the Smith-Lever Act (7 U.S.C. 343(e)) is
amended by striking paragraph (4) and inserting the fol-
lowing:
‘‘(4) EXCEPTION FOR INSULAR AREAS.—
‘‘(A) IN GENERAL.—Effective beginning for
fiscal year 2003, in lieu of the matching funds
requirement of paragraph (1), the insular areas
of the Commonwealth of Puerto Rico, Guam, and
the Virgin Islands of the United States shall pro-
vide matching funds from non-Federal sources in
an amount equal to not less than 50 percent of
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the formula funds distributed by the Secretary to
each of the insular areas, respectively, under this
section.
‘‘(B) WAIVERS.—The Secretary may waive
the matching fund requirement of subparagraph
(A) for any fiscal year if the Secretary deter-
mines that the government of the insular area
will be unlikely to meet the matching require-
ment for the fiscal year.’’.
Subtitle E—Other Laws
SEC. 781. CRITICAL AGRICULTURAL MATERIALS.
Section 16(a) of the Critical Agricultural Materials
Act (7 U.S.C. 178n(a)) is amended by striking ‘‘2002’’ and
inserting ‘‘2006’’.
SEC. 782. RESEARCH FACILITIES.
Section 6(a) of the Research Facilities Act (7 U.S.C.
390d(a)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
SEC. 783. FEDERAL AGRICULTURAL RESEARCH FACILITIES.
Section 1431 of the National Agricultural Research,
Extension, and Teaching Policy Act Amendments of 1985
(Public Law 99–198; 99 Stat. 1556) is amended by striking
‘‘2002’’ and inserting ‘‘2006’’.
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SEC. 784. COMPETITIVE, SPECIAL, AND FACILITIES RE-
SEARCH GRANTS.
The Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i) is amended in subsection (b)—
(1) in paragraph (2), by striking ‘‘in—’’ and all
that follows and inserting ‘‘, as those needs are deter-
mined by the Secretary, in consultation with the Na-
tional Agricultural Research, Extension, Education,
and Economics Advisory Board, not later than July
1 of each fiscal year for the purposes of the following
fiscal year.’’; and
(2) in paragraph (10), by striking ‘‘2002’’ and
inserting ‘‘2006’’.
SEC. 785. RISK MANAGEMENT EDUCATION FOR BEGINNING
FARMERS AND RANCHERS.
(a) IN GENERAL.—Section 524(a)(3) of the Federal
Crop Insurance Act (7 U.S.C. 1524(a)(3)) is amended by
striking subparagraph (A) and inserting the following:
‘‘(A) AUTHORITY.—The Secretary, acting
through the Cooperative State Research, Edu-
cation, and Extension Service, shall establish a
program under which competitive grants are
made to qualified public and private entities (in-
cluding land-grant colleges and universities, co-
operative extension services, colleges or univer-
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sities, and community colleges), as determined
by the Secretary, for the purpose of—
‘‘(i) educating producers generally
about the full range of risk management ac-
tivities, including futures, options, agricul-
tural trade options, crop insurance, cash
forward contracting, debt reduction, produc-
tion diversification, farm resources risk re-
duction, and other risk management strate-
gies; or
‘‘(ii) educating beginning farmers and
ranchers—
‘‘(I) in the areas described in
clause (i); and
‘‘(II) in risk management strate-
gies, as part of programs that are spe-
cifically targeted at beginning farmers
and ranchers.’’.
(b) TECHNICAL CORRECTION.—Section 524(b) of the
Federal Crop Insurance Act (7 U.S.C. 1524(b)) is amended
by redesignating the second paragraph (2) and paragraph
(3) as paragraphs (3) and (4), respectively.
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SEC. 786. AQUACULTURE.
Section 10 of the National Aquaculture Act of 1980
(16 U.S.C. 2809) is amended by striking ‘‘2002’’ each place
it appears and inserting ‘‘2006’’.
SEC. 787. CARBON CYCLE RESEARCH.
Section 221 of the Agricultural Risk Protection Act of
2000 (114 Stat. 407) is amended—
(1) in subsection (a), by striking ‘‘Of the
amount’’ and all that follows through ‘‘to provide’’
and inserting ‘‘To the extent that funds are made
available for the purpose, the Secretary shall pro-
vide’’;
(2) in subsection (d), by striking ‘‘under sub-
section (a)’’ and inserting ‘‘to carry out this section’’;
and
(3) by adding at the end the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated for fiscal years 2002 through
2006 such sums as are necessary to carry out this section.’’.
Subtitle F—New Authorities
SEC. 791. DEFINITIONS.
In this subtitle:
(1) DEPARTMENT.—The term ‘‘Department’’
means the Department of Agriculture.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
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SEC. 792. REGULATORY AND INSPECTION RESEARCH.
(a) DEFINITIONS.—In this section:
(1) INSPECTION
OR
REGULATORY
AGENCY
OF
THE DEPARTMENT.—The term ‘‘inspection or regu-
latory agency of the Department’’ includes—
(A) the Animal and Plant Health Inspec-
tion Service;
(B) the Food Safety and Inspection Service;
(C) the Grain Inspection, Packers, and
Stockyards Administration; and
(D) the Agricultural Marketing Service.
(2) URGENT APPLIED RESEARCH NEEDS.—The
term ‘‘urgent applied research needs’’ includes re-
search necessary to carry out—
(A) agricultural marketing programs;
(B) programs to protect the animal and
plant resources of the United States; and
(C) educational programs or special studies
to improve the safety of the food supply of the
United States.
(b) TIMELY, COST-EFFECTIVE RESEARCH.—To meet
the urgent applied research needs of inspection or regu-
latory agencies of the Department, the Secretary—
(1) may use a public or private source; and
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(2) shall use the most practicable source to pro-
vide timely, cost-effective means of providing the re-
search.
(c) CONFLICTS OF INTEREST.—The Secretary shall es-
tablish guidelines to prevent any conflict of interest that
may arise if an inspection or regulatory agency of the De-
partment obtains research from any Federal agency the
work or technology transfer efforts of which are funded in
part by an industry subject to the jurisdiction of the inspec-
tion or regulatory agency of the Department.
(d) REGULATIONS.—The Secretary may promulgate
such regulations as are necessary to carry out this section.
SEC. 793. EMERGENCY RESEARCH TRANSFER AUTHORITY.
(a) IN GENERAL.—Subject to subsection (b), in addi-
tion to any other authority that the Secretary may have
to transfer appropriated funds, the Secretary may transfer
up to 2 percent of any appropriation made available to
an office or agency of the Department for a fiscal year for
agricultural research, extension, marketing, animal and
plant health, nutrition, food safety, nutrition education, or
forestry programs to any other appropriation for an office
or agency of the Department for emergency research, exten-
sion, or education activities needed to address imminent
threats to animal and plant health, food safety, or human
nutrition, including bioterrorism.
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(b) LIMITATIONS.—The Secretary may transfer funds
under subsection (a) only—
(1) on a determination by the Secretary that the
need is so imminent that the need will not be timely
met by annual, supplemental, or emergency appro-
priations;
(2) in an aggregate amount that does not exceed
$5,000,000 for any fiscal year; and
(3) with the approval of the Director of the Of-
fice of Management and Budget.
SEC. 794. REVIEW OF AGRICULTURAL RESEARCH SERVICE.
(a) IN GENERAL.—The Secretary shall conduct a re-
view of the purpose, efficiency, effectiveness, and impact on
agricultural research of the Agricultural Research Service.
(b) ADMINISTRATION.—In conducting the review, the
Secretary shall use persons outside the Department,
including—
(1) Federal scientists;
(2) college and university faculty;
(3) private and nonprofit scientists; or
(4) other persons familiar with the role of the
Agricultural Research Service in conducting agricul-
tural research in the United States.
(c) REPORT.—Not later than September 30, 2004, the
Secretary shall submit to the Committee on Agriculture of
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the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report on
the results of the review.
(d) FUNDING.—The Secretary shall use to carry out
this section not more than 0.1 percent of the amount of ap-
propriations made available to the Agricultural Research
Service for each of fiscal years 2002 through 2004.
SEC. 795. TECHNOLOGY TRANSFER FOR RURAL DEVELOP-
MENT.
(a) IN GENERAL.—The Secretary, acting through the
Rural Business-Cooperative Service and the Agricultural
Research Service, shall establish a program to promote the
availability of technology transfer opportunities of the De-
partment to rural businesses and residents.
(b) COMPONENTS OF PROGRAM.—The program shall,
to the maximum extent practicable, include—
(1) a website featuring information about the
program and technology transfer opportunities of the
Department;
(2) an annual joint program for State economic
development directors and Department rural develop-
ment directors regarding technology transfer opportu-
nities of the Agricultural Research Service and other
offices and agencies of the Department; and
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(3) technology transfer opportunity programs at
each Agricultural Research Service laboratory, con-
ducted at least biennially, which may include partici-
pation by other local Federal laboratories, as appro-
priate.
(c) FUNDING.—The Secretary shall use to carry out
this section—
(1) amounts made available to the Agricultural
Research Service; and
(2) amounts made available to the Rural Busi-
ness-Cooperative Service for salaries and expenses.
SEC. 796. BEGINNING FARMER AND RANCHER DEVELOP-
MENT PROGRAM.
(a) DEFINITION OF BEGINNING FARMER OR RANCH-
ER.—In this section, the term ‘‘beginning farmer or ranch-
er’’ means a person that—
(1)(A) has not operated a farm or ranch; or
(B) has operated a farm or ranch for not more
than 10 years; and
(2) meets such other criteria as the Secretary
may establish.
(b) PROGRAM.—The Secretary shall establish a begin-
ning farmer and rancher development program to provide
training, education, outreach, and technical assistance ini-
tiatives for beginning farmers or ranchers.
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(c) GRANTS.—
(1) IN GENERAL.—In carrying out this section,
the Secretary shall make competitive grants to sup-
port new and established local and regional training,
education, outreach, and technical assistance initia-
tives for beginning farmers or ranchers, including
programs and services (as appropriate) relating to—
(A) mentoring, apprenticeships, and intern-
ships;
(B) resources and referral;
(C) assisting beginning farmers or ranchers
in acquiring land from retiring farmers and
ranchers;
(D) innovative farm and ranch transfer
strategies;
(E) entrepreneurship and business training;
(F) model land leasing contracts;
(G) financial management training;
(H) whole farm planning;
(I) conservation assistance;
(J) risk management education;
(K) diversification and marketing strate-
gies;
(L) curriculum development;
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(M) understanding the impact of concentra-
tion and globalization;
(N) basic livestock and crop farming prac-
tices;
(O) the acquisition and management of ag-
ricultural credit;
(P) environmental compliance;
(Q) information processing; and
(R) other similar subject areas of use to be-
ginning farmers or ranchers.
(2) ELIGIBILITY.—To be eligible to receive a
grant under this subsection, the recipient shall be a
collaborative State, tribal, local, or regionally-based
network or partnership of public or private entities,
which may include—
(A) a State cooperative extension service;
(B) a Federal, State, or tribal agency;
(C) a community-based and nongovern-
mental organization;
(D) a college or university (including an
institution awarding an associate’s degree) or
foundation maintained by a college or univer-
sity; or
(E) any other appropriate partner, as de-
termined by the Secretary.
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(3) TERM
OF
GRANT.—The term of a grant
under this subsection shall not exceed 3 years.
(4) MATCHING REQUIREMENT.—To be eligible to
receive a grant under this subsection, a recipient shall
provide a match in the form of cash or in-kind con-
tributions in an amount equal to 25 percent of the
funds provided by the grant.
(5) SET-ASIDE.—Not less than 25 percent of
funds used to carry out this subsection for a fiscal
year shall be used to support programs and services
that address the needs of—
(A) limited resource beginning farmers or
ranchers (as defined by the Secretary);
(B) socially disadvantaged beginning farm-
ers or ranchers (as defined in section 355(e) of
the Consolidated Farm and Rural Development
Act (7 U.S.C. 2003(e)); and
(C) farmworkers desiring to become farmers
or ranchers.
(6) PROHIBITION.—A grant made under this
subsection may not be used for the planning, repair,
rehabilitation, acquisition, or construction of a build-
ing or facility.
(7) ADMINISTRATIVE
COSTS.—The Secretary
shall use not more than 4 percent of the funds made
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available to carry out this section for administrative
costs incurred by the Secretary in carrying out this
section.
(d) EDUCATION TEAMS.—
(1) IN GENERAL.—In carrying out this section,
the Secretary shall establish beginning farmer and
rancher education teams to develop curricula and
conduct educational programs and workshops for be-
ginning farmers or ranchers in diverse geographical
areas of the United States.
(2) CURRICULUM.—In promoting the develop-
ment of curricula, the Secretary shall, to the max-
imum extent practicable, include modules tailored to
specific audiences of beginning farmers or ranchers,
based on crop or regional diversity.
(3) COMPOSITION.—In establishing an education
team for a specific program or workshop, the Sec-
retary shall, to the maximum extent practicable—
(A) obtain the short-term services of special-
ists with knowledge and expertise in programs
serving beginning farmers or ranchers; and
(B) use officers and employees of the De-
partment with direct experience in programs of
the Department that may be taught as part of
the curriculum for the program or workshop.
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(4) COOPERATION.—
(A) IN GENERAL.—In carrying out this sub-
section, the Secretary shall cooperate, to the max-
imum extent practicable, with—
(i) State cooperative extension services;
(ii) Federal and State agencies;
(iii) community-based and nongovern-
mental organizations;
(iv) colleges and universities (including
an institution awarding an associate’s de-
gree) or foundations maintained by a col-
lege or university; and
(v) other appropriate partners, as de-
termined by the Secretary.
(B) COOPERATIVE
AGREEMENT.—Notwith-
standing chapter 63 of title 31, United States
Code, the Secretary may enter into a cooperative
agreement to reflect the terms of any cooperation
under subparagraph (A).
(e) CURRICULUM AND TRAINING CLEARINGHOUSE.—
The Secretary shall establish an online clearinghouse that
makes available to beginning farmers or ranchers education
curricula and training materials and programs, which may
include online courses for direct use by beginning farmers
or ranchers.
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(f) STAKEHOLDER INPUT.—In carrying out this sec-
tion, the Secretary shall seek stakeholder input from—
(1) beginning farmers and ranchers;
(2) national, State, tribal, and local organiza-
tions and other persons with expertise in operating
beginning farmer and rancher programs; and
(3) the Advisory Committee on Beginning Farm-
ers and Ranchers established under section 5 of the
Agricultural Credit Improvement Act of 1992 (7
U.S.C. 1929 note; Public Law 102–554).
(g) PARTICIPATION BY OTHER FARMERS AND RANCH-
ERS.—Nothing in this section prohibits the Secretary from
allowing farmers and ranchers who are not beginning farm-
ers or ranchers from participating in programs authorized
under this section to the extent that the Secretary deter-
mines that such participation is appropriate and will not
detract from the primary purpose of educating beginning
farmers and ranchers.
(h) FUNDING.—
(1) FEES AND CONTRIBUTIONS.—
(A) IN GENERAL.—The Secretary may—
(i) charge a fee to cover all or part of
the costs of curriculum development and the
delivery of programs or workshops provided
by—
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(I) 
a 
beginning 
farmer 
and
rancher education team established
under subsection (d); or
(II) the online clearinghouse es-
tablished under subsection (e); and
(ii) accept contributions from cooper-
ating entities under a cooperative agree-
ment 
entered 
into 
under 
subsection
(d)(4)(B) to cover all or part of the costs for
the delivery of programs or workshops by
the beginning farmer and rancher education
teams.
(B) AVAILABILITY.—Fees and contributions
received by the Secretary under subparagraph
(A) shall—
(i) be deposited in the account that in-
curred the costs to carry out this section;
(ii) be available to the Secretary to
carry out the purposes of the account, with-
out further appropriation;
(iii) remain available until expended;
and
(iv) be in addition to any funds made
available under paragraph (2).
(2) TRANSFERS.—
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(A) IN GENERAL.—Not later than 30 days
after the date of enactment of this Act, and on
October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary to carry out this section $15,000,000, to
remain available for 2 fiscal years.
(B) RECEIPT AND ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept,
and shall use to carry out this section the funds
transferred under subparagraph (A), without
further appropriation.
SEC. 797. SENSE OF CONGRESS REGARDING DOUBLING OF
FUNDING FOR AGRICULTURAL RESEARCH.
It is the sense of Congress that—
(1) Federal funding for food and agricultural re-
search has been essentially constant for 2 decades,
putting at risk the scientific base on which food and
agricultural advances have been made;
(2) the resulting increase in the relative propor-
tion of private sector, industry investments in food
and agricultural research has led to questions about
the independence and objectivity of research and out-
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reach conducted by the Federal and university re-
search sectors; and
(3) funding for food and agricultural research
should be at least doubled over the next 5 fiscal
years—
(A) to restore the balance between public
and private sector funding for food and agricul-
tural research; and
(B) to maintain the scientific base on which
food and agricultural advances are made.
SEC. 798. RURAL POLICY RESEARCH.
(a) IN GENERAL.—There is established in the Treasury
of the United States an account to be known as the ‘‘Rural
Research Fund Account’’ (referred to in this section as the
‘‘Account’’) to provide funds for activities described in sub-
section (c).
(b) FUNDING.—
(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this Act, and on October 1,
2002, and each October 1 thereafter through October
1, 2005, out of any funds in the Treasury not other-
wise appropriated, the Secretary of the Treasury shall
transfer to the Account to carry out this section
$15,000,000, to remain available for 2 fiscal years.
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(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
(c) PURPOSES.—The Secretary shall use the funds in
the Account to make competitive research grants for applied
and outcome oriented research and policy research and
analysis of rural issues relating to—
(1) rural sociology;
(2) effects of demographic change, including
aging population, outmigration, and labor resources;
(3) needs of groups of rural citizens, including
senior citizens, families, youth, children, and socially
disadvantaged individuals;
(4) rural community development;
(5) rural infrastructure, including water and
waste, community facilities, telecommunications, elec-
tricity, and high-speed broadband services;
(6) rural business development, including credit,
venture capital, cooperatives, value-added enterprises,
new and alternative markets, farm and rural enter-
prise formation, and entrepreneurship;
(7) farm management, including strategic plan-
ning, business and marketing opportunities, risk
management, natural resources and environmental
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management, organic and sustainable farming sys-
tems, public sector development of new crops and crop
varieties, and intergenerational transfer strategies;
(8) rural education and extension programs, in-
cluding methods of delivery, availability of resources,
and use of distance learning; and
(9) rural health, including mental health, on-
farm safety, and food safety.
(d) REQUIREMENTS.—In making grants under this
section, the Secretary shall—
(1) solicit and consider public input from per-
sons who conduct or use agricultural research, exten-
sion, education, or rural development programs; and
(2) ensure that funded proposals will provide
high-quality research that may be of use to public pol-
icymakers and private entities in making decisions
that affect development in rural areas.
(e) ELIGIBLE GRANTEES.—The Secretary may make
a grant under this section to—
(1) an individual;
(2) a college or university or a foundation main-
tained by a college or university;
(3) a State cooperative institution (as defined in
section 1404 of the National Agricultural Research,
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Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103));
(4) a community college;
(5) a nonprofit organization, institution, or as-
sociation;
(6) a business association;
(7) an agency of a State, local, or tribal govern-
ment; or
(8) a regional partnership of public and private
agencies.
(f) TERM.—A grant under this section shall have a
term that does not exceed 5 years.
(g) MATCHING FUNDS.—
(1) IN GENERAL.—Subject to paragraph (2), the
Secretary may require as a condition of the grant
that the grant funding be matched, in whole or in
part, with matching funds from a non-Federal source.
(2) BUSINESS
ASSOCIATIONS.—The Secretary
shall require that a grant to a business association be
matched with equal matching funds from a non-Fed-
eral source.
(h) ADMINISTRATIVE COSTS.—The Secretary may use
not more than 4 percent of the funds made available for
grants under this section to pay administrative costs in-
curred by the Secretary in carrying out this section.
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SEC. 798A. PRIORITY FOR FARMERS AND RANCHERS PAR-
TICIPATING IN CONSERVATION PROGRAMS.
In carrying out new on-farm research or extension
programs or projects authorized by this Act, an amendment
made by this Act, or any Act enacted after the date of enact-
ment of this Act, the Secretary shall give priority in car-
rying out the programs or projects to using farms or
ranches of farmers or ranchers that participate in Federal
agricultural conservation programs.
SEC. 798B. ORGANIC PRODUCTION AND MARKET DATA INI-
TIATIVES.
The Secretary shall ensure that segregated data on the
production and marketing of organic agricultural products
is included in the ongoing baseline of data collection regard-
ing agricultural production and marketing.
SEC. 798C. ORGANICALLY PRODUCED PRODUCT RESEARCH
AND EDUCATION.
Not later than December 1, 2004, the Secretary, acting
through the Administrator of the Economic Research Serv-
ice, shall prepare, in consultation with the Advisory Com-
mittee on Small Farms, and submit to the Committee on
Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate, a report on—
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(1) the impact on small farms of the implemen-
tation of the national organic program under part
205 of title 7, Code of Federal Regulations; and
(2) the production and marketing costs to pro-
ducers and handlers associated with transitioning to
organic production.
SEC. 798D. INTERNATIONAL ORGANIC RESEARCH COLLABO-
RATION.
The Secretary, acting through the Agricultural Re-
search Service (including the National Agriculture Library)
and the Economic Research Service, shall facilitate access
by research and extension professionals, farmers, and other
interested persons in the United States to, and the use by
those persons of, organic research conducted outside the
United States.
SEC. 798E. REPORT ON PRODUCERS AND HANDLERS OF OR-
GANIC AGRICULTURAL PRODUCTS.
Not later than 1 year after funds are made available
to carry out this section, the Secretary of Agriculture shall
submit to Congress a report that—
(1) describes—
(A) the extent to which producers and han-
dlers of organic agricultural products are con-
tributing to research and promotion programs of
the Department of Agriculture;
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(B) the extent to which producers and han-
dlers of organic agricultural products are sur-
veyed for ideas for research and promotion;
(C) ways in which the programs reflect the
contributions made by producers and handlers of
organic agricultural products and directly ben-
efit the producers and handlers; and
(D) the implementation of initiatives that
directly benefit organic producers and handlers;
and
(2) evaluates industry and other proposals for
improving the treatment of certified organic agricul-
tural products under Federal marketing orders, in-
cluding proposals to target additional resources for
research and promotion of organic products and to
differentiate between certified organic and other prod-
ucts in new or existing volume limitations or other
orderly marketing requirements.
TITLE VIII—FORESTRY
SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 6704(d)) is amended
by striking ‘‘2002’’ and inserting ‘‘2006’’.
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SEC. 802. MCINTIRE-STENNIS COOPERATIVE FORESTRY RE-
SEARCH PROGRAM.
It is the sense of Congress to reaffirm the importance
of Public Law 87–88 (16 U.S.C. 582a et seq.), commonly
known as the ‘‘McIntire-Stennis Cooperative Forestry Act’’.
SEC. 803. SUSTAINABLE FORESTRY OUTREACH INITIATIVE;
RENEWABLE RESOURCES EXTENSION ACTIVI-
TIES.
(a) SUSTAINABLE
FORESTRY
OUTREACH
INITIA-
TIVE.—The Renewable Resources Extension Act of 1978 is
amended by inserting after section 5A (16 U.S.C. 1674a)
the following:
‘‘SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.
‘‘The Secretary shall establish a program, to be known
as the ‘Sustainable Forestry Outreach Initiative’, to educate
landowners concerning—
‘‘(1) the value and benefits of practicing sustain-
able forestry;
‘‘(2) the importance of professional forestry ad-
vice in achieving sustainable forestry objectives; and
‘‘(3) the variety of public and private sector re-
sources available to assist the landowners in planning
for and practicing sustainable forestry.’’.
(b) RENEWABLE
RESOURCES
EXTENSION
ACTIVI-
TIES.—
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(1) AUTHORIZATION OF APPROPRIATIONS.—Sec-
tion 6 of the Renewable Resources Extension Act of
1978 (16 U.S.C. 1675) is amended by striking the
first sentence and inserting the following: ‘‘There is
authorized to be appropriated to carry out this Act
$30,000,000 for each of fiscal years 2002 through
2006.’’.
(2) TERMINATION DATE.—Section 8 of the Re-
newable Resources Extension Act of 1978 (16 U.S.C.
1671 note; Public Law 95–306) is amended by strik-
ing ‘‘2000’’ and inserting ‘‘2006’’.
SEC. 804. FORESTRY INCENTIVES PROGRAM.
Section 4(j) of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2103(j)) is amended by striking ‘‘2002’’
and inserting ‘‘2006’’.
SEC. 805. SUSTAINABLE FORESTRY COOPERATIVE PRO-
GRAM.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 5 (16 U.S.C. 2103a) the
following:
‘‘SEC. 5A. SUSTAINABLE FORESTRY COOPERATIVE PRO-
GRAM.
‘‘(a) DEFINITIONS.—In this section:
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‘‘(1) FARMER OR RANCHER.—The term ‘farmer
or rancher’ means a person engaged in the production
of an agricultural commodity (including livestock).
‘‘(2) FORESTRY COOPERATIVE.—The term ‘for-
estry cooperative’ means an association that is—
‘‘(A) owned and operated by nonindustrial
private forest landowners; and
‘‘(B) comprised of members—
‘‘(i) of which at least 51 percent are
farmers or ranchers; and
‘‘(ii) that use sustainable forestry prac-
tices on nonindustrial private forest land to
create a long-term, sustainable income
stream.
‘‘(3) NONINDUSTRIAL PRIVATE FOREST LAND.—
The term ‘nonindustrial private forest land’ has the
meaning given the term ‘nonindustrial private forest
lands’ in section 5(c).
‘‘(b) ESTABLISHMENT.—The Secretary shall establish
a program, to be known as the ‘sustainable forestry coopera-
tive program’, under which the Secretary shall provide, to
nonprofit organizations on a competitive basis, grants to
establish, and develop and support, sustainable forestry
practices carried out by members of, forestry cooperatives.
‘‘(c) USE OF FUNDS.—
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‘‘(1) IN
GENERAL.—Subject to paragraph (2),
funds from a grant provided under this section shall
be used for—
‘‘(A) predevelopment, development, start-up,
capital acquisition, and marketing costs associ-
ated with a forestry cooperative; or
‘‘(B) the development or support of a sus-
tainable forestry practice of a member of a for-
estry cooperative.
‘‘(2) CONDITIONS
‘‘(A) DEVELOPMENT.—The Secretary shall
provide funds under paragraph (1)(A) only to a
nonprofit organization with demonstrated exper-
tise in cooperative development, as determined
by the Secretary.
‘‘(B) COMPLIANCE WITH PLAN.—A sustain-
able forestry practice developed or supported
through the use of funds from a grant under this
section shall comply with any applicable stand-
ards for sustainable forestry contained in a man-
agement plan that—
‘‘(i) meets the requirements of section
6A(g); and
‘‘(ii) is approved by the State forester
(or equivalent State official).
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‘‘(d) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this section, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of Agriculture to carry
out this section $2,000,000, to remain available until
expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.’’.
SEC. 806. SUSTAINABLE FOREST MANAGEMENT PROGRAM.
(a) FINDINGS AND PURPOSES.—
(1) FINDINGS.—Congress finds that—
(A) the United States is becoming increas-
ingly dependent on nonindustrial private forest
land to supply necessary market commodities
and nonmarket conservation values;
(B) there is a strong demand for expanded
assistance programs for owners of nonindustrial
private forest land because the majority of the
wood supply of the United States comes from
nonindustrial private forest land;
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(C) soil, water, and air quality, fish and
wildlife habitat, aesthetic values, and opportuni-
ties for outdoor recreation in the United States
would be maintained and improved through good
stewardship of nonindustrial private forest land;
(D) the products and services resulting from
stewardship of nonindustrial private forest land
contribute to the economic, social, and ecological
health and diversity of rural communities;
(E) catastrophic wildfires threaten human
lives, property, forests, and other resources;
(F) Federal and State cooperation in forest
fire prevention and control has proven effective
and valuable because properly managed forest
stands are less susceptible to catastrophic fire, as
demonstrated by the catastrophic fire seasons of
1998 and 2000;
(G) owners of nonindustrial private forest
land face increased pressure to make that land
available for development and other uses, result-
ing in forest land loss and fragmentation that
reduces the ability of private forest land to pro-
vide a full range of societal benefits;
(H) complex investments in the manage-
ment of long-rotation forest stands, including
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sustainable hardwood management, are often the
most difficult commitments for owners of non-
industrial private forest land;
(I) the investment of a single Federal dollar
in State and private forestry programs is esti-
mated to leverage, on the average, $9 from State,
local, and private sources; and
(J) comprehensive, multiresource planning
assistance made available to each landowner be-
fore the provision of technical assistance would
provide an opportunity to ensure that the land-
owner is aware of the many projects and activi-
ties eligible for cost-share assistance.
(2) PURPOSES.—The purposes of this section
are—
(A) to strengthen the commitment of the
Secretary to sustainable forest management to
enhance the productivity of timber, fish and
wildlife habitat, soil and water quality, wetland,
recreational resources, and aesthetic values of
forest land; and
(B) to establish a coordinated and coopera-
tive Federal, State, and local sustainable forestry
program for the establishment, management,
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maintenance, enhancement, and restoration of
forests on nonindustrial private forest land.
(b) PROGRAM.—The Cooperative Forestry Assistance
Act of 1978 is amended by inserting after section 6 (16
U.S.C. 2103b) the following:
‘‘SEC. 6A. SUSTAINABLE FOREST MANAGEMENT PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COMMITTEE.—The term ‘Committee’ means
a State Forest Stewardship Coordinating Committee
established under section 19(b).
‘‘(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) PROGRAM.—The term ‘program’ means the
sustainable forest management program established
under subsection (b)(1).
‘‘(4) NONINDUSTRIAL PRIVATE FOREST LAND.—
The term ‘nonindustrial private forest land’ has the
meaning given the term ‘nonindustrial private forest
lands’ in section 5(c).
‘‘(5) OWNER.—The term ‘owner’ means an owner
of nonindustrial private forest land.
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‘‘(6) STATE
FORESTER.—The term ‘State for-
ester’ means the director or other head of a State for-
estry agency (or an equivalent State official).
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a sustainable forest management program to—
‘‘(A) provide financial assistance to State
foresters; and
‘‘(B) encourage the long-term sustainability
of nonindustrial private forest land in the
United States by assisting the owners of non-
industrial private forest land, through State for-
esters, in more actively managing the nonindus-
trial private forest land and related resources of
those owners through the use of State, Federal,
and private sector resource management exper-
tise, financial assistance, and educational pro-
grams.
‘‘(2) COORDINATION.—The Secretary, acting
through 
State 
foresters, 
shall 
implement 
the
program—
‘‘(A) in coordination with the Committees;
and
‘‘(B) in consultation with—
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‘‘(i) other Federal, State, and local
natural resource management agencies;
‘‘(ii) institutions of higher education;
and
‘‘(iii) a broad range of private sector
interests.
‘‘(c) STATE PRIORITY PLAN.—
‘‘(1) IN GENERAL.—Subject to paragraph (3), as
a condition of receipt of funding under the program,
a State Forester and the Committee of the State shall
jointly develop and submit to the Secretary a 5-year
plan that describes the funding priorities of the State
in meeting the purposes of the program.
‘‘(2) PUBLIC
PARTICIPATION.—The plan sub-
mitted to the Secretary under paragraph (1) shall in-
clude documentation of the efforts of the State to pro-
vide for public participation in the development of
the plan.
‘‘(3) STATE
PRIORITIES.—The Secretary shall
ensure, to the maximum extent practicable, that the
need for expanded technical assistance programs for
owners is met in the annual funding priorities of
each State described in paragraph (1).
‘‘(d) PURPOSES.—The Secretary shall allocate re-
sources of the Secretary among States in accordance with
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subsection (j) to encourage, in accordance with the plan of
each State described in subsection (c)—
‘‘(1) the investment in practices to establish, re-
store, protect, manage, maintain, and enhance the
health and productivity of the nonindustrial private
forest land in the United States;
‘‘(2) the occurrence of afforestation, reforestation,
improvement of poorly stocked stands, timber stand
improvement, practices necessary to improve seedling
growth and survival, and growth enhancement prac-
tices as needed to enhance and sustain the long-term
productivity of timber and nontimber forest resources
to—
‘‘(A) meet projected public demand for for-
est resources; and
‘‘(B) provide environmental benefits;
‘‘(3) the protection of riparian buffers and forest
wetland;
‘‘(4) the maintenance and enhancement of fish
and wildlife habitat;
‘‘(5) the enhancement of soil, air, and water
quality;
‘‘(6) through the use of agroforestry practices, the
reduction of soil erosion and maintenance of soil
quality;
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‘‘(7) the maintenance and enhancement of the
forest landbase;
‘‘(8) the reduction of the threat of catastrophic
wildfires; and
‘‘(9) the preservation of aesthetic quality and op-
portunities for outdoor recreation.
‘‘(e) ELIGIBILITY.—
‘‘(1) COST-SHARE ASSISTANCE.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (2), an owner shall be eligible to re-
ceive cost-share assistance from a State forester
under the program if the owner—
‘‘(i) develops a management plan in
accordance with subsection (f) that—
‘‘(I) addresses site-specific activi-
ties and practices; and
‘‘(II) is approved by the State for-
ester;
‘‘(ii) agrees to implement approved ac-
tivities in accordance with the management
plan for a period of not less than 10 years,
unless the State forester approves a modi-
fication to the management plan; and
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‘‘(iii) except as provided in subpara-
graph (B), owns not more than 1,000 acres
of nonindustrial private forest land.
‘‘(B) EXCEPTION FOR SIGNIFICANT PUBLIC
BENEFITS.—The Secretary may approve the pro-
vision of cost-share assistance to an owner that
owns more than 1,000 but less than 5,000 acres
of nonindustrial private forest land if the Sec-
retary, in consultation with the State forester,
determines that significant public benefits will
accrue as a result of the approval.
‘‘(2) PAYMENT FOR PLAN DEVELOPMENT.—The
Secretary, acting through a State forester, may pro-
vide cost-share assistance to an owner to develop a
management plan.
‘‘(3) LIMITATIONS.—An owner shall receive no
cost-share assistance for management of nonindustrial
private forest land under this section if the owner re-
ceives cost-share assistance for that land under—
‘‘(A) the forestry incentives program under
section 4;
‘‘(B) the stewardship incentives program
under section 6; or
‘‘(C) any conservation program adminis-
tered by the Secretary.
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‘‘(4) RATE; SCHEDULE.—Subject to paragraph
(5), the Secretary, in consultation with the State for-
ester, shall determine the rate and timing of cost-
share payments.
‘‘(5) AMOUNT.—
‘‘(A) PERCENTAGE
OF
COST.—Subject to
subparagraph (B), a cost-share payment shall
not exceed the lesser of an amount equal to—
‘‘(i) 75 percent of the total cost of im-
plementing the project or activity; or
‘‘(ii) such lesser percentage of the total
cost of implementing the project or activity
as is determined by the appropriate State
forester.
‘‘(B) AGGREGATE
PAYMENT
LIMIT.—The
Secretary shall determine the maximum aggre-
gate amount of cost-share payments that an
owner may receive under this section.
‘‘(f) MANAGEMENT PLAN.—An owner that seeks to par-
ticipate in the program shall—
‘‘(1) submit to the State forester a management
plan that—
‘‘(A) meets the requirements of this section;
and
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‘‘(B)(i) is prepared by, or in consultation
with, a professional resource manager;
‘‘(ii) identifies and describes projects and
activities to be carried out by the owner to pro-
tect soil, water, air, range, and aesthetic quality,
recreation, timber, water, wetland, and fish and
wildlife resources on the land in a manner that
is compatible with the objectives of the owner;
‘‘(iii) addresses any criteria established by
the applicable State and the applicable Com-
mittee; and
‘‘(iv)(I) at a minimum, applies to the por-
tion of the land on which any project or activity
funded under the program will be carried out; or
‘‘(II) in a case in which a project or activ-
ity described in subclause (I) may affect acreage
outside the portion of the land on which the
project or activity is carried out, applies to all
land of the owner that is in forest cover and that
may be affected by the project or activity; and
‘‘(2) agree that all projects and activities con-
ducted on the land shall be consistent with the man-
agement plan.
‘‘(g) APPROVED ACTIVITIES.—
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‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the State forester and the appropriate Com-
mittee, shall develop for each State a list of approved
forest activities and practices eligible for cost-share
assistance that meets the purposes of the program de-
scribed in subsection (d).
‘‘(2) TYPES OF ACTIVITIES.—Approved activities
and practices under paragraph (1) may consist of ac-
tivities and practices for—
‘‘(A) the establishment, management, main-
tenance, and restoration of forests for shelterbelts,
windbreaks, aesthetic quality, and other con-
servation purposes;
‘‘(B) the sustainable growth and manage-
ment of forests for timber production;
‘‘(C) the restoration, use, and enhancement
of forest wetland and riparian areas;
‘‘(D) the protection of water quality and
watersheds through—
‘‘(i) the planting of trees in riparian
areas; and
‘‘(ii) the enhanced management and
maintenance of native vegetation on land
vital to water quality;
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‘‘(E) the preservation, restoration, or devel-
opment of habitat for plants, fish, and wildlife;
‘‘(F)(i) the control, detection, monitoring,
and prevention of the spread of invasive species
and pests on nonindustrial private forest land;
and
‘‘(ii) the restoration of nonindustrial pri-
vate forest land affected by invasive species and
pests;
‘‘(G) the conduct of other management ac-
tivities, such as the reduction of hazardous fuel
use, that reduce the risks to forests posed by, and
that restore, recover, and mitigate the damage to
forests caused by, fire or any other catastrophic
event, as determined by the Secretary;
‘‘(H) the development of management plans;
‘‘(I) the acquisition by the State of perma-
nent easements to maintain forest cover and pro-
tect important forest values; and
‘‘(J) the conduct of other activities approved
by the Secretary, in consultation with the State
forester and the appropriate Committees.
‘‘(h) FAILURE TO COMPLY.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a procedure to recover cost-share payments made
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under this section in any case in which the recipient
of the payment fails—
‘‘(A) to implement a project or activity in
accordance with the management plan; or
‘‘(B) comply with any requirement of this
section.
‘‘(2) ADDITIONAL
AUTHORITY.—The authority
under paragraph (1) shall be in addition to, and not
in lieu of, any other authority available to the Sec-
retary.
‘‘(i) REPORTS.—
‘‘(1) INTERIM
REPORT.—Not later than 21⁄2
years after the date on which funds are made avail-
able to implement a State priority plan under sub-
section (c), the State implementing the plan shall sub-
mit to the Secretary an interim report describing the
status of projects and activities funded under the plan
as of that date.
‘‘(2) FINAL
REPORT.—Not later than 5 years
after the date on which funds are made available to
implement a State priority plan under subsection (c),
the State implementing the plan shall submit to the
Secretary a final report describing the status of all
projects and activities funded under the plan as of
that date.
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‘‘(j) DISTRIBUTION.—
‘‘(1) 
IN
GENERAL.—The 
Secretary, 
acting
through State foresters, shall distribute funds avail-
able for cost sharing under the program based on a
nationwide funding formula developed under para-
graph (2).
‘‘(2) FORMULA.—In developing the formula re-
ferred to in paragraph (1), the Secretary shall—
‘‘(A) assess public benefits that would result
from the distribution; and
‘‘(B) consider—
‘‘(i) the total acreage of nonindustrial
private forest land in each State;
‘‘(ii) the potential productivity of that
land, as determined by the Secretary;
‘‘(iii) the number of owners eligible for
cost sharing in each State;
‘‘(iv) the opportunities to enhance non-
timber resources on that land, including—
‘‘(I) the protection of riparian
buffers and forest wetland;
‘‘(II) the preservation of fish and
wildlife habitat;
‘‘(III) the enhancement of soil,
air, and water quality; and
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‘‘(IV) the preservation of aesthetic
quality and opportunities for outdoor
recreation;
‘‘(v) the anticipated demand for timber
and nontimber resources in each State;
‘‘(vi) the need to improve forest health
to minimize the damaging effects of cata-
strophic fire, insects, disease, or weather;
‘‘(vii) the need and demand for agro-
forestry practices in each State;
‘‘(viii) the need to maintain and en-
hance the forest landbase; and
‘‘(ix) the need for afforestation, refor-
estation, and timber stand improvement.
‘‘(k) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this section, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of Agriculture to carry
out this section $48,000,000, to remain available
until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
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to carry out this section the funds transferred under
paragraph (1), without further appropriation.’’.
SEC. 807. FOREST LEGACY PROGRAM.
Section 7(l) of the Cooperative Forestry Management
Act of 1978 (16 U.S.C. 2103c(l)) is amended by adding at
the end the following:
‘‘(3) STATE
AUTHORIZATION.—Notwithstanding
any other provision of this Act, a State may author-
ize any local government, or any qualified organiza-
tion that is defined in section 170(h)(3) of the Inter-
nal Revenue Code of 1986 and organized for at least
1 of the purposes described in clause (i), (ii), or (iii)
of section 170(h)(4)(A) of that Code, to acquire in
land in the State, in accordance with this section, 1
or more interests in conservation easements to carry
out the Forest Legacy Program in the State.’’.
SEC. 808. FOREST FIRE RESEARCH CENTERS.
(a) FINDINGS.—Congress finds that—
(1) there is an increasing threat of fire to mil-
lions of acres of forest land and rangeland throughout
the United States;
(2) this threat is especially great in the interior
States of the western United States, where the Forest
Service estimates that 39,000,000 acres of National
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Forest System land are at high risk of catastrophic
wildfire;
(3)(A) the degraded condition of forest land and
rangeland is often the consequence of land manage-
ment practices that emphasize the control and preven-
tion of fires; and
(B) the land management practices disrupted the
occurrence of frequent low-intensity fires that periodi-
cally remove flammable undergrowth;
(4) as a result of the land management
practices—
(A) some forest land and rangeland in the
United States no longer function naturally as
ecosystems; and
(B) drought cycles and the invasion of in-
sects and disease have resulted in vast areas of
dead or dying trees, overstocked stands, and the
invasion of undesirable species;
(5)(A) population movement into wildland-
urban interface areas exacerbate the fire danger;
(B) the increasing number of larger, more in-
tense fires pose grave hazards to human health, safety,
property, and infrastructure in the areas; and
(C) smoke from wildfires, which contain fine
particulate matter and other hazardous pollutants,
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pose substantial health risks to people living in the
areas;
(6)(A) the budgets and resources of Federal,
State, and local entities supporting firefighting efforts
have been stretched to their limits;
(B) according to the Comptroller General, the av-
erage cost of attempting to put out fires in the inte-
rior West grew by 150 percent, from $134,000,000 in
fiscal year 1986 to $335,000,000 in fiscal year 1994;
and
(C) the costs of preparedness, including the costs
of maintaining a readiness force to fight fires, rose
about 70 percent, from $189,000,000 in fiscal year
1992 to $326,000,000 in fiscal year 1997;
(7) diminishing Federal resources (including the
availability of personnel) have limited the ability of
Federal fire researchers—
(A) to respond to management needs; and
(B) to use technological advancements for
analyzing fire management costs;
(8) the Federal fire research program is funded
at approximately 1⁄3 of the amount that is required
to address emerging fire problems, resulting in the
lack of a cohesive strategy to address the threat of cat-
astrophic wildfires; and
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(9) there is a critical need for cost-effective in-
vestments in improved fire management technologies.
(b) FOREST FIRE RESEARCH CENTERS.—The Forest
and Rangeland Renewable Resources Research Act of 1978
(16 U.S.C. 1641 et seq.) is amended by adding at the end
the following:
‘‘SEC. 11. FOREST FIRE RESEARCH CENTERS.
‘‘(a) IN GENERAL.—Subject to the availability of ap-
propriations, the Secretary of Agriculture, acting through
the Chief of the Forest Service (referred to in this section
as the ‘Secretary’) shall establish at least 2 forest fire re-
search centers at institutions of higher education (which
may include research centers in existence on the date of en-
actment of this section) that—
‘‘(1) have expertise in natural resource develop-
ment; and
‘‘(2) are located in close proximity to other Fed-
eral natural resource, forest management, and land
management agencies.
‘‘(b) LOCATIONS.—Of the forest fire research centers es-
tablished under subsection (a)—
‘‘(1) at least 1 center shall be located in Cali-
fornia, Idaho, Montana, Oregon, or Washington; and
‘‘(2) at least 1 center shall be located in Arizona,
Colorado, Nevada, New Mexico, or Wyoming.
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‘‘(c) DUTIES.—At each of the forest fire research cen-
ters established under subsection (a), the Secretary shall
provide for—
‘‘(1) the conduct of integrative, interdisciplinary
research into the ecological, socioeconomic, and envi-
ronmental impact of fire control and the use of man-
agement of ecosystems and landscapes to facilitate fire
control; and
‘‘(2) the development of mechanisms to rapidly
transfer new fire control and management tech-
nologies to fire and land managers.
‘‘(d) ADVISORY COMMITTEE.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Interior, shall establish
a committee composed of fire and land managers and
fire researchers to determine the areas of emphasis
and establish priorities for research projects conducted
at forest fire research centers established under sub-
section (a).
‘‘(2) ADMINISTRATION.—The Federal Advisory
Committee Act (5 U.S.C. App.) and section 102 of the
Agricultural Research, Extension, and Education Re-
form Act of 1998 (7 U.S.C. 7612) shall not apply to
the committee established under paragraph (1).
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section.’’.
SEC. 809. WILDFIRE PREVENTION AND HAZARDOUS FUEL
PURCHASE PILOT PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) the damage caused by wildfire disasters has
been equivalent in magnitude to the damage resulting
from the Northridge earthquake, Hurricane Andrew,
and the recent flooding of the Mississippi River and
the Red River;
(2) more than 20,000 communities in the United
States are at risk from wildfire and approximately
11,000 of those communities are located near Federal
land;
(3) the accumulation of heavy forest fuel loads
continues to increase as a result of disease, insect in-
festations, and drought, further increasing the risk of
fire each year;
(4) modification of forest fuel load conditions
through the removal of hazardous fuels would—
(A) minimize catastrophic damage from
wildfires;
(B) reduce the need for emergency funding
to respond to wildfires; and
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(C) protect lives, communities, watersheds,
and wildlife habitat;
(5) the hazardous fuels removed from forest land
represent an abundant renewable resource, as well as
a significant supply of biomass for biomass-to-energy
facilities;
(6) the United States should invest in tech-
nologies that promote economic and entrepreneurial
opportunities in processing forest products removed
through hazardous fuel reduction activities; and
(7) the United States should—
(A) develop and expand markets for tradi-
tionally underused wood and other biomass as
an outlet for value-added excessive forest fuels;
and
(B) commit resources to support planning,
assessments, and project reviews to ensure that
hazardous fuels management is accomplished ex-
peditiously and in an environmentally sound
manner.
(b) DEFINITIONS.—In this section:
(1) BIOMASS-TO-ENERGY
FACILITY.—The term
‘‘biomass-to-energy facility’’ means a facility that
uses forest biomass or other biomass as a raw mate-
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rial to produce electric energy, useful heat, or a trans-
portation fuel.
(2) ELIGIBLE COMMUNITY.—The term ‘‘eligible
community’’ means—
(A) any town, township, municipality, or
other similar unit of local government (as deter-
mined by the Secretary), or any area represented
by a nonprofit corporation or institution orga-
nized under Federal or State law to promote
broad-based economic development, that—
(i) has a population of not more than
10,000 individuals;
(ii) is located within a county in
which at least 15 percent of the total pri-
mary and secondary labor and proprietor
income is derived from forestry, wood prod-
ucts, and forest-related industries, such as
recreation, forage production, and tourism;
and
(iii) is located near forest land, the
condition of which land the Secretary deter-
mines poses a substantial present or poten-
tial hazard to—
(I) the safety of a forest ecosystem;
(II) the safety of wildlife; or
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(III) in the case of a wildfire, the
safety of firefighters, other individuals,
and communities; and
(B) any county that is not contained within
a metropolitan statistical area that meets the
conditions described in clauses (ii) and (iii) of
subparagraph (A).
(3) FOREST
BIOMASS.—The term ‘‘forest bio-
mass’’ means fuel and biomass accumulation from
precommercial thinnings, slash, and brush on forest
land.
(4) HAZARDOUS
FUEL.—The term ‘‘hazardous
fuel’’ means any excessive accumulation of forest bio-
mass or other biomass on public or private forest land
in the wildland-urban interface (as defined by the
Secretary) that—
(A) is located near an eligible community;
(B) is designated as condition class 2 or 3
under the report of the Forest Service entitled
‘‘Protecting People and Sustainable Resources in
Fire-Adapted Ecosystems’’, dated October 13,
2000) (including any related maps); and
(C) the Secretary determines poses a sub-
stantial present or potential hazard to—
(i) the safety of a forest ecosystem;
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(ii) the safety of wildlife; or
(iii) in the case of wildfire, the safety
of firefighters, other individuals, and com-
munities.
(5) 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).
(6) NATIONAL FIRE PLAN.—The term ‘‘National
Fire Plan’’ means the plan prepared by the Secretary
of Agriculture and the Secretary of the Interior enti-
tled ‘‘Managing the Impact of Wildfires on Commu-
nities and the Environment’’ and dated September 8,
2000.
(7) PERSON.—The term ‘‘person’’ includes—
(A) a community;
(B) an Indian tribe;
(C) a small business, microbusiness, or
other business that is incorporated in the United
States; and
(D) a nonprofit organization.
(8) 
SECRETARY.—The 
term 
‘‘Secretary’’
means—
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(A) the Secretary of Agriculture (or a des-
ignee), with respect to National Forest System
land and private land in the United States; and
(B) the Secretary of the Interior (or a des-
ignee) with respect to Federal land under the ju-
risdiction of the Secretary of the Interior or an
Indian tribe.
(c) WILDFIRE PREVENTION AND HAZARDOUS FUEL
PURCHASE PILOT PROGRAM.—
(1) GRANTS.—
(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Secretary may
make grants to—
(i) persons that operate existing or new
biomass-to-energy facilities to offset the costs
incurred by those persons in purchasing
hazardous fuels derived from public and
private forest land adjacent to eligible com-
munities; and
(ii) persons in rural communities that
are seeking ways to improve the use of, or
add value to, hazardous fuels.
(B) SELECTION CRITERIA.—The Secretary
shall select recipients for grants under subpara-
graph (A)(i) based on—
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(i) planned purchases by the recipients
of hazardous fuels, as demonstrated by the
recipient through the submission to the Sec-
retary of such assurances as the Secretary
may require;
(ii) the level of anticipated benefits of
those purchases in reducing the risk of
wildfires;
(iii) the extent to which the biomass-to-
energy facility avoids adverse environ-
mental impacts, including cumulative im-
pacts, over the expected life of the biomass-
to-energy facility; and
(iv) the demonstrable level of antici-
pated benefits for eligible communities, in-
cluding the potential to develop thermal or
electric energy resources or affordable energy
for communities.
(2) GRANT AMOUNTS.—
(A) IN GENERAL.—A grant under subpara-
graph (A)(i) shall—
(i) be based on—
(I) the distance required to trans-
port hazardous fuels to a biomass-to-
energy facility; and
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(II) the cost of removal of haz-
ardous fuels; and
(ii) be in an amount that is at least
equal 
to 
the 
product 
obtained 
by
multiplying—
(I) the number of tons of haz-
ardous fuels delivered to a grant re-
cipient; by
(II) an amount that is at least $5
but not more than $10 per ton of haz-
ardous fuels, as determined by the Sec-
retary taking into consideration the
factors described in clause (i).
(B) LIMITATION ON INDIVIDUAL GRANTS.—
(i) IN GENERAL.—Except as provided
in clause (ii), a grant under subparagraph
(A) shall not exceed $1,500,000 for any bio-
mass-to-energy facility for any fiscal year.
(ii) SMALL
BIOMASS-TO-ENERGY
FA-
CILITIES.—A biomass-to-energy facility that
has an annual production of 5 megawatts
or less shall not be subject to the limitation
under clause (i).
(3) MONITORING OF GRANT RECIPIENT ACTIVI-
TIES.—
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(A) IN GENERAL.—As a condition of receipt
of a grant under this subsection, a grant recipi-
ent shall keep such records as the Secretary may
require, including records that—
(i) completely and accurately disclose
the use of grant funds; and
(ii) describe all transactions involved
in the purchase of hazardous fuels derived
from forest land.
(B) ACCESS.—On notice by the Secretary,
the operator of a biomass-to-energy facility that
purchases or uses hazardous fuels with funds
from a grant under this subsection shall provide
the Secretary with—
(i) reasonable access to the biomass-to-
energy facility; and
(ii) an opportunity to examine the in-
ventory and records of the biomass-to-energy
facility.
(4) MONITORING OF EFFECT OF TREATMENTS.—
(A) IN GENERAL.—To determine and docu-
ment the environmental impact of hazardous fuel
removal, the Secretary shall monitor—
(i) environmental impacts of activities
carried out under this subsection; and
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(ii) Federal land from which haz-
ardous fuels are removed and sold to a bio-
mass-to-energy facility under this sub-
section.
(B) EMPLOYMENT.—
(i) IN
GENERAL.—The Comptroller
General 
of 
the 
United 
States 
shall
monitor—
(I) the number of jobs created in
or near eligible communities as a re-
sult of the implementation of this sub-
section;
(II) the opportunities created for
small businesses and microbusinesses
as a result of the implementation of
this subsection;
(III) the types and amounts of en-
ergy supplies created as a result of the
implementation of this subsection; and
(IV) energy prices for eligible
communities.
(ii) REPORT.—Beginning in fiscal
year 2003, the Comptroller General of the
United States shall submit to the Committee
on Energy and Natural Resources and the
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Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee
on Resources and the Committee on Agri-
culture of the House of Representatives an
annual report that describes the informa-
tion obtained through monitoring under
clause (i).
(5) REVIEW AND REPORT.—
(A) IN
GENERAL.—Not later than Sep-
tember 30, 2004, the Comptroller General shall
submit to each of the committees described in
paragraph (4)(B)(ii) a report that describes the
results and effectiveness of the pilot program.
(B) REPORTS
BY
SECRETARY.—The Sec-
retary shall submit to each of the committees de-
scribed in paragraph (4)(B)(ii) an annual re-
port describing the results of the pilot program
that includes—
(i) an identification of the size of each
biomass-to-energy facility that receives a
grant under this section; and
(ii) the haul radius associated with
each grant.
(C) TECHNICAL FEASIBILITY REPORT.—Not
later than December 1, 2003, the Secretary of
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Agriculture, in cooperation with the Forest Prod-
ucts Lab and the Economic Action Program of
the Forest Service, shall submit to each of the
committees described in paragraph (4)(B)(ii) a
report that describes—
(i) the technical feasibility of the use
by small-scale biomass energy units of
small-diameter trees and forest residues as a
source of fuel;
(ii) the environmental impacts relating
to the use of small-diameter trees and forest
residues as described in clause (i); and
(iii) any social or economic benefits of
small-scale biomass energy units for rural
communities.
(6) GRANTS TO OTHER PERSONS.—
(A) IN GENERAL.—In addition to biomass-
to-energy facilities, the Secretary may make
grants under this subsection to persons in rural
communities that are seeking ways to improve
the use of, or add value to, hazardous fuels.
(B) SELECTION.—The Secretary shall select
recipients of grants under subparagraph (A)
based on—
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(i) the extent to which the grant recipi-
ent avoids environmental impacts; and
(ii) the demonstrable level of antici-
pated benefits to rural communities, includ-
ing opportunities for small businesses and
microbusinesses and the potential for new
job creation, that may result from the provi-
sion of the grant.
(C) MONITORING.—With respect to a grant
made under this paragraph—
(i) the monitoring provisions described
in paragraph (3) and applicable to bio-
mass-to-energy facilities shall apply; and
(ii) the Secretary shall monitor the en-
vironmental impacts of projects funded by
grants provided under this paragraph.
(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $50,000,000 for each of fiscal years
2002 through 2006.
(d) LONG-TERM FOREST STEWARDSHIP CONTRACTS
FOR HAZARDOUS FUELS REMOVAL.—
(1) ANNUAL ASSESSMENT OF TREATMENT ACRE-
AGE.—
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(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, not later than March
1 of each of fiscal years 2002 through 2006, the
Secretary shall submit to Congress an assessment
of the number of acres of National Forest System
land recommended to be treated during the sub-
sequent fiscal year using stewardship end result
contracts authorized by paragraph (3).
(B) COMPONENTS.—The assessment shall—
(i) be based on the treatment schedules
contained in the report entitled ‘‘Protecting
People and Sustaining Resources in Fire-
Adapted Ecosystems’’, dated October 13,
2000, and incorporated into the National
Fire Plan;
(ii) identify the acreage by condition
class, type of treatment, and treatment year
to achieve the restoration goals outlined in
the report within 10-, 15-, and 20-year time
periods;
(iii) give priority to condition class 3
areas (as described in subsection (b)(4)(B)),
including modifications in the restoration
goals based on the effects of—
(I) fire;
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(II) hazardous fuel treatments
under the National Fire Plan; or
(III) updates in data;
(iv) provide information relating to the
type of material and estimated quantities
and range of sizes of material that shall be
included in the treatments;
(v) describe the land allocation cat-
egories in which the contract authorities
shall be used; and
(vi) give priority to areas described in
subsection (b)(4)(A).
(2) FUNDING RECOMMENDATION.—The Secretary
shall include in the annual assessment under para-
graph (1) a request for funds sufficient to implement
the recommendations contained in the assessment
using stewardship end result contracts described in
paragraph (3) in any case in which the Secretary de-
termines that the objectives of the National Fire Plan
would best be accomplished through forest stewardship
end result contracting.
(3) STEWARDSHIP END RESULT CONTRACTING.—
(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Secretary may
enter into not more than 28 stewardship end re-
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sult contracts to implement the National Fire
Plan on National Forest System land based on
the treatment schedules provided in the annual
assessments 
conducted 
under 
paragraph
(1)(B)(i).
(B) PERIOD
OF
CONTRACTS.—The con-
tracting goals and authorities described in sub-
sections (b) through (g) of section 347 of the De-
partment of the Interior and Related Agencies
Appropriations Act, 1999 (commonly known as
the ‘‘Stewardship End Result Contracting Dem-
onstration Project’’) (16 U.S.C. 2104 note; Pub-
lic Law 105–277), shall apply to contracts en-
tered into under this paragraph, except that 14
of the 28 contracts entered into under subpara-
graph (A) shall be subject to the conditions
that—
(i) funds from the contract, and any
offset value of forest products that exceeds
the value of the resource improvement treat-
ments carried out under the contract, shall
be deposited in the Treasury of the United
States;
(ii) section 347(c)(3)(A) of the Depart-
ment of the Interior and Related Agencies
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Appropriations 
Act, 
1999 
(commonly
known as the ‘‘Stewardship End Result
Contracting Demonstration Project’’) (16
U.S.C. 2104 note; Public Law 105–277)
shall not apply to those contracts; and
(iii) the implementation shall be ac-
complished using separate contracts for the
harvesting or collection, and sale, of mer-
chantable material.
(C) STATUS REPORT.—Beginning with the
assessment required under paragraph (1) for fis-
cal year 2003, the Secretary shall include in the
annual assessment under paragraph (1) a status
report of the stewardship end result contracts en-
tered into under this paragraph.
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of
fiscal years 2002 through 2006.
(e) EXCLUDED AREAS.—In carrying out this section,
the Secretary shall—
(1) because of sensitivity of natural, cultural, or
historical resources, designate areas to be excluded
from any program under this section; and
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(2) carry out this section only in the wildland-
urban interface, as defined by the Secretary.
(f) TERMINATION OF AUTHORITY.—The authority pro-
vided under this section shall terminate on September 30,
2006.
SEC. 810. CHESAPEAKE BAY WATERSHED FORESTRY PRO-
GRAM.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 9 (16 U.S.C. 2105) the
following:
‘‘SEC. 9A. CHESAPEAKE BAY WATERSHED FORESTRY PRO-
GRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) AGREEMENT.—The term ‘Agreement’ means
the Chesapeake 2000 Agreement, an interstate agree-
ment the purpose of which is to correct the nutrient-
related problems in the Chesapeake Bay by 2010.
‘‘(2) BAY-AREA STATE.—
‘‘(A) IN
GENERAL.—The term ‘Bay-area
State’ means a State any part of which is lo-
cated in the watershed of the Chesapeake Bay.
‘‘(B) 
INCLUSION.—The 
term 
‘Bay-area
State’ includes the District of Columbia.
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‘‘(3) CHESAPEAKE BAY EXECUTIVE COUNCIL.—
The term ‘Council’ means the Chesapeake Bay Execu-
tive Council.
‘‘(4) DIRECTOR.—The term ‘Director’ means the
Director of Chesapeake Bay watershed forestry efforts
designated under subsection (b)(2)(A).
‘‘(5) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
‘‘(A) the government of a Bay-area State
(or a political subdivision); and
‘‘(B) an organization such as an edu-
cational institution or a community or conserva-
tion organization.
‘‘(6) ELIGIBLE
PROJECT.—The term ‘eligible
project’ means a project the purpose of which is to—
‘‘(A) improve wildlife habitat and water
quality through the establishment, protection,
and stewardship of riparian and wetland forests;
‘‘(B) improve the capacity of a State or
nonprofit organization to implement forest con-
servation, restoration, and stewardship actions;
‘‘(C) develop and implement a watershed
management plan that addresses forest conserva-
tion and restoration actions;
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‘‘(D) provide outreach and assistance to
private landowners and communities to restore
or protect watersheds through the enhancement of
forests;
‘‘(E) develop and implement communica-
tion, education, or technology transfer programs
that broaden public understanding of the value
of trees and forests and management of trees and
forests in sustaining and restoring watershed
health; and
‘‘(F) conduct applied research, inventory,
assessment, or monitoring activities.
‘‘(7) PROGRAM.—The term ‘program’ means the
Chesapeake Bay watershed forestry program estab-
lished under subsection (b)(1).
‘‘(8) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Chief
of the Forest Service.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
the Chesapeake Bay watershed forestry program to
provide technical and financial assistance to the
Council, Bay-area States, local governments, and
nonprofit organizations to carry out eligible projects.
‘‘(2) DIRECTOR.—
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‘‘(A) IN
GENERAL.—The Secretary shall
designate an employee of the Forest Service to
serve as the Director for Chesapeake Bay water-
shed forestry efforts.
‘‘(B) DUTIES.—The Director shall work in
cooperation with the Secretary to carry out the
purposes of the program described in paragraph
(1).
‘‘(c) CHESAPEAKE WATERSHED FORESTRY GRANTS.—
‘‘(1) IN
GENERAL.—In carrying out the pro-
gram, the Secretary, in coordination with the Direc-
tor, may provide grants to assist eligible entities in
carrying out eligible projects.
‘‘(2) COST SHARING.—The amount of a grant
awarded under this subsection shall not exceed 75
percent of the total cost of the eligible project.
‘‘(3) ADDITIONAL
REQUIREMENTS.—The Sec-
retary, in consultation with the Director, may pre-
scribe any requirements and procedures necessary to
carry out this subsection.
‘‘(d) CHESAPEAKE WATERSHED FOREST ASSESSMENT
AND CONSERVATION STUDY.—
‘‘(1) IN GENERAL.—The Director, in cooperation
with the Council, shall conduct a Chesapeake Bay wa-
tershed forestry research and assessment study that—
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‘‘(A) assesses the extent and location of for-
est loss and fragmentation;
‘‘(B) identifies critical forest land that
should be protected to achieve the purposes of the
Agreement;
‘‘(C) prioritizes afforestation needs;
‘‘(D) recommends—
‘‘(i) management strategies based on
actions carried out and information ob-
tained under subparagraphs (A) through
(C) to expand conservation and stewardship
of the forest ecosystem in the Chesapeake
Bay watershed; and
‘‘(ii) ways in which the Federal Gov-
ernment can work with State, county, local,
and private entities to conserve critical for-
ests, including recommendations on the fea-
sibility of establishing new units of the Na-
tional Forest System; and
‘‘(E) identifies further inventory, assess-
ment, and research needed to achieve the pur-
poses of the Agreement.
‘‘(2) REPORT.—Not later than 2 years after the
date of enactment of this section, the Director shall
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submit to Congress a comprehensive report on the re-
sults of the study under paragraph (1).
‘‘(e) CHESAPEAKE BAY URBAN WATERSHED FOR-
ESTRY RESEARCH COOPERATIVE PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with the Director, may establish a comprehensive
Chesapeake Bay urban watershed forestry research co-
operative program to provide technical and financial
assistance to eligible entities.
‘‘(2) PURPOSES.—The purposes of the coopera-
tive program shall be—
‘‘(A) to meet the need of the urban popu-
lation of the Chesapeake Bay watershed in man-
aging forest land in urban and urbanizing areas
through a combination of—
‘‘(i) applied research;
‘‘(ii) demonstration projects;
‘‘(iii) implementation guidelines; and
‘‘(iv) training and education;
‘‘(B) to coalesce information from local
managers, Federal, State, and private research-
ers, and state-of-the-art technology to answer
critical urban forestry questions relating to air
and water quality and watershed health; and
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‘‘(C) to provide a link between research and
urban and community forestry policy, planning,
and management.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section—
‘‘(1) $3,000,000 for fiscal year 2002; and
‘‘(2) $3,500,000 for each of fiscal years 2003
through 2006.’’.
SEC. 811. ENHANCED COMMUNITY FIRE PROTECTION.
(a) FINDINGS.—Congress finds that—
(1) the severity and intensity of wildfires have
increased dramatically over the past few decades as a
result of past fire and land management policies;
(2) the record 2000 fire season is a prime exam-
ple of what can be expected if action is not taken to
reduce the risk of catastrophic wildfires;
(3) wildfires threaten not only the forested re-
sources of the United States, but also the thousands
of communities intermingled with wildland in the
wildland-urban interface;
(4) wetland forests provide essential ecological
services, such as filtering pollutants, buffering impor-
tant rivers and estuaries, and minimizing flooding,
that make the protection and restoration of those for-
ests worthy of special focus;
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(5) the National Fire Plan, if implemented to
achieve appropriate priorities, is the proper, coordi-
nated, and most effective means to address the issue
of wildfires;
(6) while adequate authorities exist to address
the problem of wildfires at the landscape level on Fed-
eral land, there is limited authority to take action on
most private land where the largest threat to life and
property lies; and
(7) there is a significant Federal interest in en-
hancing the protection of communities from wildfire.
(b) ENHANCED COMMUNITY FIRE PROTECTION.—The
Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 10 (16 U.S.C. 2106) the following:
‘‘SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.
‘‘(a) COOPERATIVE MANAGEMENT RELATING TO WILD-
FIRE THREATS.—Notwithstanding section 7 of the Federal
Fire Prevention and Control Act of 1974 (15 U.S.C. 2206),
the Secretary may cooperate with State foresters and equiv-
alent State officials to—
‘‘(1) assist in the prevention, control, suppres-
sion, and prescribed use of fires (including through
the provision of financial, technical, and related as-
sistance);
‘‘(2) protect communities from wildfire threats;
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‘‘(3) enhance the growth and maintenance of
trees and forests in a manner that promotes overall
forest health; and
‘‘(4) ensure the continued production of all forest
resources, including timber, outdoor recreation oppor-
tunities, wildlife habitat, and clean water, through
conservation of forest cover on watersheds, shelterbelts,
and windbreaks.
‘‘(b) COMMUNITY AND PRIVATE LAND FIRE ASSIST-
ANCE PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a program to be known as the ‘community and pri-
vate land fire assistance program’ (referred to in this
section as the ‘Program’)—
‘‘(A) to focus the Federal role in promoting
optimal firefighting efficiency at the Federal,
State, and local levels;
‘‘(B) to provide increased assistance to Fed-
eral projects that establish landscape level protec-
tion from wildfires;
‘‘(C) to expand outreach and education pro-
grams concerning fire prevention to homeowners
and communities; and
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‘‘(D) to establish defensible space against
wildfires around the homes and property of pri-
vate landowners.
‘‘(2) ADMINISTRATION AND IMPLEMENTATION.—
The Program shall be administered by the Secretary
and, with respect to non-Federal land described in
paragraph (3), carried out through the State forester
or equivalent State official.
‘‘(3) COMPONENTS.—The Secretary may carry
out under the Program, on National Forest System
land and non-Federal land determined by the Sec-
retary in consultation with State foresters and
Committees—
‘‘(A) fuel hazard mitigation and prevention;
‘‘(B) invasive species management;
‘‘(C) multiresource wildfire and community
protection planning;
‘‘(D) community and landowner education
enterprises, including the program known as
‘FIREWISE’;
‘‘(E) market development and expansion;
‘‘(F) improved use of wood products; and
‘‘(G) restoration projects.
‘‘(4) PRIORITY.—In entering into contracts to
carry out projects under the Program, the Secretary
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shall give priority to contracts with local persons or
entities.
‘‘(c) AUTHORITY.—The authority provided under this
section shall be in addition to any authority provided under
section 10.
‘‘(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary to carry
out this section $35,000,000 for each of fiscal years 2002
through 2006.’’.
SEC. 812. WATERSHED FORESTRY ASSISTANCE PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) there has been a dramatic shift in public at-
titudes and perceptions about forest management,
particularly in the understanding and practice of
sustainable forest management;
(2) it is commonly recognized that proper stew-
ardship of forest land is essential to—
(A) sustain and restore watershed health;
(B) produce clean water; and
(C) maintain healthy aquatic systems;
(3) forests are increasingly important to the pro-
tection and sustainability of drinking water supplies
for more than 1/2 of the population of the United
States;
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(4) forest loss and fragmentation in urbanizing
areas are contributing to flooding, degradation of
urban stream habitat and water quality, and public
health concerns;
(5) scientific evidence and public awareness with
respect to the manner in which forest management
can positively affect water quality and quantity, and
the manner in which trees, forests, and forestry prac-
tices (such as forest buffers) can serve as solutions to
water quality problems in rural and urban areas, are
increasing;
(6) the application of forestry best management
practices developed at the State level has been found
to greatly facilitate the achievement of water quality
goals;
(7) significant efforts are underway to revisit
and make improvements on needed forestry best man-
agement practices;
(8) according to the report of the Forest Service
numbered FS–660 and entitled ‘‘Water and the Forest
Service’’, forests are a requirement for maintenance of
clean water because—
(A) approximately 66 percent of the fresh-
water resources of the United States originate on
forests; and
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(B) forests cover approximately 1/3 of the
land area of the United States;
(9) because almost 500,000,000 acres, or ap-
proximately 2/3, of the forest land of the United
States is owned by non-Federal entities, a significant
burden is placed on private forest landowners to pro-
vide or maintain the clean water needed by the public
for drinking, swimming, fishing, and a number of
other water uses;
(10) because the decisions made by individual
landowners and communities will affect the ability to
maintain the health of rural and urban watersheds in
the future, there is a need to integrate forest manage-
ment, conservation, restoration, and stewardship in
watershed management;
(11) although water management is the primary
responsibility of States, the Federal Government has
a responsibility to promote and encourage the ability
of States and private forest landowners to sustain the
delivery of clean, abundant water from forest land;
(12) as of the date of enactment of this Act, the
availability of Federal assistance to support forest
landowners to achieve the water goals identified in
many Federal laws (including regulations) is lacking;
and
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(13) increased research for, education for, and
technical and financial assistance provided to, forest
landowners and communities that relate to the protec-
tion of watersheds and improvement of water quality,
are needed to realize the expectations of the general
public for clean water and healthy aquatic systems.
(b) PURPOSES.—The purposes of this section are to—
(1) improve the understanding of landowners
and the public with respect to the relationship be-
tween water quality and forest management;
(2) encourage landowners to maintain tree cover
and use tree plantings and vegetative treatments as
creative solutions to water quality and quantity prob-
lems associated with varying land uses;
(3) enhance and complement source water protec-
tion in watersheds that provide drinking water for
municipalities;
(4) establish new partnerships and collaborative
watershed approaches to forest management, steward-
ship, and protection; and
(5) provide technical and financial assistance to
States to deliver a coordinated program that through
the provision of technical, financial, and educational
assistance to qualified individuals and entities—
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(A) enhances State forestry best manage-
ment practices programs; and
(B) protects and improves water quality on
forest land.
(c) PROGRAM.—The Cooperative Forestry Assistance
Act of 1978 is amended by inserting after section 5A (as
added by section 805) the following:
‘‘SEC. 5B. WATERSHED FORESTRY ASSISTANCE PROGRAM.
‘‘(a) ESTABLISHMENT.—Subject to the availability of
appropriations, the Secretary shall establish a watershed
forestry assistance program (referred to in this section as
the ‘program’) to provide to States, through State foresters
(as defined in section 6A), technical, financial, and related
assistance to—
‘‘(1) expand forest stewardship capacities and
activities through State forestry best management
practices and other means at the State level; and
‘‘(2) prevent water quality degradation, and ad-
dress watershed issues, on non-Federal forest land.
‘‘(b) WATERSHED FORESTRY EDUCATION, TECHNICAL
ASSISTANCE, AND PLANNING.—
‘‘(1) PLAN.—
‘‘(A) IN
GENERAL.—In carrying out the
program, the Secretary shall cooperate with
State foresters to develop a plan, to be adminis-
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tered by the Secretary and implemented by State
foresters, to provide technical assistance to assist
States in preventing and mitigating water qual-
ity degradation.
‘‘(B) PARTICIPATION.—In developing the
plan under subparagraph (A), the Secretary
shall encourage participation of interested mem-
bers of the public (including nonprofit private
organizations and local watershed councils).
‘‘(2) COMPONENTS.—The plan described in para-
graph (1) shall include provisions to—
‘‘(A) build and strengthen watershed part-
nerships focusing on forest land at the national,
State, regional, and local levels;
‘‘(B) provide State forestry best manage-
ment practices and water quality technical as-
sistance directly to private landowners;
‘‘(C) provide technical guidance relating to
water quality management through forest man-
agement in degraded watersheds to land man-
agers and policymakers;
‘‘(D)(i) complement State nonpoint source
assessment and management plans established
under section 319 of the Federal Water Pollution
Control Act (33 U.S.C. 1329); and
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‘‘(ii) provide enhanced opportunities for co-
ordination and cooperation among Federal and
State agencies having responsibility for water
and watershed management under that Act; and
‘‘(E) provide enhanced forest resource data
and support for improved implementation of
State 
forestry 
best 
management 
practices,
including—
‘‘(i) designing and conducting effective-
ness and implementation studies; and
‘‘(ii) meeting in-State water quality
assessment needs, such as the development of
water quality models that correlate the
management of forest land to water quality
measures and standards.
‘‘(c) WATERSHED
FORESTRY
COST-SHARE
PRO-
GRAM.—
‘‘(1) ESTABLISHMENT.—In carrying out the pro-
gram, the Secretary shall establish a watershed for-
estry cost-share program, to be administered by the
Secretary and implemented by State foresters, to pro-
vide grants and other assistance for eligible programs
and projects described in paragraph (2).
‘‘(2) ELIGIBLE
PROGRAMS
AND
PROJECTS.—A
community, nonprofit group, or landowner may re-
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ceive a grant or other assistance under this subsection
to carry out a State forestry best management prac-
tices program or a watershed forestry project if the
program or project, as determined by the Secretary—
‘‘(A) is consistent with—
‘‘(i) State nonpoint source assessment
and management plan objectives established
under section 319 of the Federal Water Pol-
lution Control Act (33 U.S.C. 1329); and
‘‘(ii) the cost-share requirements of this
section; and
‘‘(B) is designed to address critical forest
stewardship, watershed protection, and restora-
tion needs of a State through—
‘‘(i) the use of trees and forests as solu-
tions to water quality problems in urban
and agricultural areas;
‘‘(ii) community-based planning, in-
volvement, and action through State, local
and nonprofit partnerships;
‘‘(iii) the application of and dissemi-
nation of information on forestry best man-
agement practices relating to water quality;
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‘‘(iv) watershed-scale forest manage-
ment activities and conservation planning;
and
‘‘(v) the restoration of wetland and
stream side forests and establishment of ri-
parian vegetative buffers.
‘‘(3) ALLOCATION.—
‘‘(A) IN GENERAL.—After taking into con-
sideration the criteria described in subparagraph
(B), the Secretary shall allocate among States,
for award by State foresters under paragraph
(4), the amounts made available to carry out
this subsection.
‘‘(B) CRITERIA.—The criteria referred to in
subparagraph (A) are—
‘‘(i) the number of acres of forest land,
and land that could be converted to forest
land, in each State;
‘‘(ii) the nonpoint source assessment
and management plans of each State, as de-
veloped under section 319 of the Federal
Water Pollution Control Act (33 U.S.C.
1329);
‘‘(iii) the acres of wetland forests that
have been lost or degraded or cases in which
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forests may play a role in restoring wetland
resources;
‘‘(iv) the number of non-Federal forest
landowners in each State; and
‘‘(v) the extent to which the priorities
of States are designed to achieve a reason-
able range of the purposes of the program
and, as a result, contribute to the water-re-
lated goals of the United States.
‘‘(4) AWARD OF GRANTS AND ASSISTANCE.—
‘‘(A) IN
GENERAL.—In implementing the
program under this subsection, the State forester,
in coordination with the State Coordinating
Committee established under section 19(b), shall
provide annual grants and cost-share assistance
to communities, nonprofit groups, and land-
owners to carry out eligible programs and
projects described in paragraph (2).
‘‘(B) APPLICATION.—A community, non-
profit group, or landowner that seeks to receive
cost-share assistance under this subsection shall
submit to the State forester an application, in
such form and containing such information as
the State forester may prescribe, for the assist-
ance.
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‘‘(C) PRIORITIZATION.—In awarding cost-
share assistance under this subsection, the Sec-
retary shall give priority to eligible programs
and projects that are identified by the State for-
esters and the State Stewardship Committees as
having a greater need for assistance.
‘‘(D) AWARD.—On approval by the Sec-
retary of an application under subparagraph
(B), the State forester shall award to the appli-
cant, from funds allocated to the State under
paragraph (3), such amount of cost-share assist-
ance as is requested in the application.
‘‘(5) COST SHARING.—
‘‘(A) FEDERAL SHARE.—The Federal share
of the cost of carrying out any eligible program
or project under this subsection shall not exceed
75 percent, of which not more than 50 percent
may be in the form of assistance provided under
this subsection.
‘‘(B) NON-FEDERAL SHARE.—The non-Fed-
eral share of the cost of carrying out any eligible
program or project under this subsection may be
provided in the form of cash, services, or in-kind
contributions.
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‘‘(d) WATERSHED FORESTER.—A State may use a
portion of the funds made available to the State under sub-
section (e) to establish and fill a position of ‘Watershed For-
ester’ to lead State-wide programs and coordinate water-
shed-level projects.
‘‘(e) FUNDING.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to carry out this section $20,000,000 for
each of fiscal years 2002 through 2006.
‘‘(2) ALLOCATION.—Of the funds made available
under paragraph (1)—
‘‘(A) 75 percent shall be used to carry out
subsection (c); and
‘‘(B) 25 percent shall be used to carry out
provisions of this section other than subsection
(c).’’.
SEC. 813. SUBURBAN AND COMMUNITY FORESTRY AND
OPEN SPACE INITIATIVE.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 7 (16 U.S.C. 2103c) the
following:
‘‘SEC. 7A. SUBURBAN AND COMMUNITY FORESTRY AND
OPEN SPACE INITIATIVE.
‘‘(a) DEFINITIONS.—In this section:
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‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means a State (including a political subdivision)
or nonprofit organization that the Secretary deter-
mines under subsection (c)(1)(A)(ii) is eligible to re-
ceive a grant under subsection (c)(2).
‘‘(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) PRIVATE FOREST LAND.—The term ‘private
forest land’ means land that is—
‘‘(A)(i) covered by trees; or
‘‘(ii) suitable for growing trees, as deter-
mined by the Secretary;
‘‘(B) suburban, as determined by the Sec-
retary; and
‘‘(C) owned by—
‘‘(i) a private entity; or
‘‘(ii) an Indian tribe.
‘‘(4) PROGRAM.—The term ‘program’ means the
Suburban and Community Forestry and Open Space
Initiative established by subsection (b).
‘‘(5) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Chief
of the Forest Service.
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‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—There is established within
the Forest Service a program to be known as the
‘Suburban and Community Forestry and Open Space
Initiative’.
‘‘(2) PURPOSE.—The purpose of the program is
to provide assistance to eligible entities to carry out
projects and activities to—
‘‘(A) conserve private forest land and main-
tain working forests in suburban environments;
and
‘‘(B) provide communities a means by
which to address significant suburban sprawl.
‘‘(c) GRANT PROGRAM.—
‘‘(1) IDENTIFICATION OF ELIGIBLE PRIVATE FOR-
EST LAND.—
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with State foresters or equivalent State
officials and State or county planning offices,
shall establish criteria for—
‘‘(i) the identification, subject to sub-
paragraph (B), of private forest land in
each State that may be conserved under this
section; and
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‘‘(ii) the identification of eligible enti-
ties.
‘‘(B) CONDITIONS
FOR
ELIGIBLE
PRIVATE
FOREST LAND.—Private forest land identified for
conservation under subparagraph (A)(i) shall be
land that is—
‘‘(i) located in an area that is affected,
or threatened to be affected, by significant
suburban sprawl, as determined by—
‘‘(I) the appropriate State forester
or equivalent State official; and
‘‘(II) the planning office of the
State or county in which the private
forest land is located; and
‘‘(ii) threatened by present or future
conversion to nonforest use.
‘‘(2) GRANTS.—
‘‘(A) PROJECTS AND ACTIVITIES.—
‘‘(i) IN
GENERAL.—In carrying out
this section, the Secretary shall award
grants to eligible entities to carry out a
project or activity described in clause (ii).
‘‘(ii) TYPES.—A project or activity re-
ferred to in clause (i) is a project or activ-
ity that—
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‘‘(I) is carried out to conserve pri-
vate forest land and contain signifi-
cant suburban sprawl; and
‘‘(II) provides for guaranteed pub-
lic access to land on which the project
or activity is carried out, unless the
appropriate State forester or equiva-
lent State official and the State or
county planning office request, and
provide justification for the request,
that the requirement be waived.
‘‘(B) APPLICATION; STEWARDSHIP PLAN.—
An eligible entity that seeks to receive a grant
under this section shall submit for approval—
‘‘(i) to the Secretary, in such form as
the Secretary shall prescribe, an application
for the grant (including a description of
any private forest land to be conserved
using funds from the grant); and
‘‘(ii) to the State forester or equivalent
State official, a stewardship plan that de-
scribes the manner in which any private
forest land to be conserved using funds from
the grant will be managed in accordance
with this section.
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‘‘(C) APPROVAL OR DISAPPROVAL.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), as soon as practicable after the date on
which the Secretary receives an application
under subparagraph (B)(i) or a resubmis-
sion under subclause (II)(bb), the Secretary
shall—
‘‘(I)(aa) approve the application;
and
‘‘(bb) award a grant to the appli-
cant; or
‘‘(II)(aa) disapprove the applica-
tion; and
‘‘(bb) provide the applicant a
statement that describes the reasons
why the application was disapproved
(including a deadline by which the ap-
plicant may resubmit the application).
‘‘(ii) PRIORITY.—In awarding grants
under this section, the Secretary shall give
priority to applicants that propose to fund
projects and activities that promote, in ad-
dition to the primary purposes of con-
serving private forest land and containing
significant suburban sprawl—
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‘‘(I) the sustainable management
of private forest land;
‘‘(II) community and school edu-
cation programs and curricula relating
to sustainable forestry; and
‘‘(III) community involvement in
determining the objectives for projects
or activities that are funded under this
section.
‘‘(3) COST SHARING.—
‘‘(A) IN GENERAL.—The amount of a grant
awarded under this section to carry out a project
or activity shall not exceed 50 percent of the
total cost of the project or activity.
‘‘(B) ASSURANCES.—As a condition of re-
ceipt of a grant under this section, an eligible
entity shall provide to the Secretary such assur-
ances as the Secretary determines are sufficient
to demonstrate that the share of the cost of each
project or activity that is not funded by the
grant awarded under this section has been se-
cured.
‘‘(C) FORM.—The share of the cost of car-
rying out any project or activity described in
subparagraph (A) that is not funded by a grant
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awarded under this section may be provided in
cash or in kind.
‘‘(d) USE OF GRANT FUNDS FOR PURCHASES OF LAND
OR EASEMENTS.—
‘‘(1) PURCHASES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), funds made available, and
grants awarded, under this section may be used
to purchase private forest land or interests in
private forest land (including conservation ease-
ments) only from willing sellers at fair market
value.
‘‘(B) SALES AT LESS THAN FAIR MARKET
VALUE.—A sale of private forest land or an in-
terest in private forest land at less than fair
market value shall be permitted only on certifi-
cation by the landowner that the sale is being
entered into willingly and without coercion.
‘‘(2) TITLE.—Title to private forest land or an
interest in private forest land purchased under para-
graph (1) may be held, as determined appropriate by
the Secretary, by—
‘‘(A) a State (including a political subdivi-
sion of a State); or
‘‘(B) a nonprofit organization.
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section—
‘‘(1) $50,000,000 for fiscal year 2003; and
‘‘(2) such sums as are necessary for each fiscal
year thereafter.’’.
SEC. 814. GENERAL PROVISIONS.
Section 13 of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2109) is amended by striking subsection
(f) and inserting the following:
‘‘(f) GRANTS, CONTRACTS, 
AND
OTHER
AGREE-
MENTS.—
‘‘(1) IN
GENERAL.—In accordance with para-
graph (2), the Secretary may make such grants and
enter into such contracts, agreements, or other ar-
rangements as the Secretary determines are necessary
to carry out this Act.
‘‘(2) ASSISTANCE.—Notwithstanding any other
provision of this Act, the Secretary, with the concur-
rence of the applicable State forester or equivalent
State official, may provide assistance under this Act
directly to any public or private entity, organization,
or individual—
‘‘(A) through a grant; or
‘‘(B) by entering into a contract or coopera-
tive agreement.’’.
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SEC. 815. STATE FOREST STEWARDSHIP COORDINATING
COMMITTEES.
Section 19(b) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2113(b)) is amended—
(1) in paragraph (1)(B)(i), by inserting ‘‘United
States Fish and Wildlife Service,’’ before ‘‘Forest
Service’’; and
(2) in paragraph (2)—
(A) in subparagraph (C), by striking ‘‘and’’
at the end;
(B) in subparagraph (D), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(E) submit to the Secretary, the Committee
on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, an annual report
that provides—
‘‘(i) the list of members on the Com-
mittee described in paragraph (1)(B); and
‘‘(ii) for those members that may be in-
cluded on the Committee, but are not in-
cluded because a determination that it is
not practicable to include the members has
been made, an explanation of the reasons
for that determination.’’.
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SEC. 816. USDA NATIONAL AGROFORESTRY CENTER.
(a) IN GENERAL.—Section 1243 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (16 U.S.C.
1642 note; Public Law 101–624) is amended—
(1) by striking the section heading and inserting
the following:
‘‘SEC. 1243. USDA NATIONAL AGROFORESTRY CENTER.’’;
and
(2) in subsection (a)—
(A) by striking ‘‘SEMIARID’’ and inserting
‘‘USDA NATIONAL’’; and
(B) by striking ‘‘Semiarid’’ and inserting
‘‘USDA National’’.
(b) PROGRAM.—Section 1243(b) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (16 U.S.C.
1642 note; Public Law 101–624) is amended—
(1) by inserting ‘‘the Institute of Tropical For-
estry and the Institute of Pacific Islands Forestry of
the Forest Service,’’ after ‘‘entities,’’;
(2) in paragraph (1), by striking ‘‘on semiarid
lands’’;
(3) in paragraph (3), by striking ‘‘from semiarid
land’’;
(4) by striking paragraph (4) and inserting the
following:
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‘‘(4) collect information on the design and instal-
lation of forested riparian and upland buffers to—
‘‘(A) protect water quality; and
‘‘(B) manage water flow;’’;
(5) in paragraphs (6) and (7), by striking ‘‘on
semiarid lands’’ each place it appears;
(6) by striking paragraph (8) and inserting the
following:
‘‘(8) provide international leadership in the
worldwide development and exchange of agroforestry
practices;’’;
(7) in paragraph (9), by striking ‘‘on semiarid
lands’’;
(8) in paragraph (10), by striking ‘‘and’’ at the
end;
(9) in paragraph (11), by striking the period at
the end and inserting ‘‘; and’’; and
(10) by adding at the end the following:
‘‘(12) quantify the carbon storage potential of
agroforestry practices such as—
‘‘(A) windbreaks;
‘‘(B) forested riparian buffers;
‘‘(C) silvopasture timber and grazing sys-
tems; and
‘‘(D) alley cropping.’’.
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SEC. 817. OFFICE OF TRIBAL RELATIONS.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 19 (16 U.S.C. 2113) the
following:
‘‘SEC. 19A. OFFICE OF TRIBAL RELATIONS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 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).
‘‘(2) OFFICE.—The term ‘Office’ means the Office
of Tribal Relations established under subsection
(b)(1).
‘‘(3) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Chief
of the Forest Service.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
within the Forest Service the Office of Tribal Rela-
tions.
‘‘(2) DIRECTOR.—The Office shall be headed by
a Director, who shall—
‘‘(A) be appointed by the Secretary, in con-
sultation with interested Indian tribes; and
‘‘(B) report directly to the Secretary.
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‘‘(3) ADMINISTRATIVE SUPPORT.—The Secretary
shall ensure, to the maximum extent practicable, that
adequate staffing and funds are made available to en-
able the Director to carry out the duties described in
subsection (c).
‘‘(c) DUTIES OF THE DIRECTOR.—
‘‘(1) IN GENERAL.—The Director shall—
‘‘(A) provide advice to the Secretary on all
issues, policies, actions, and programs of the
Forest 
Service 
that 
affect 
Indian 
tribes,
including—
‘‘(i) consultation with tribal govern-
ments;
‘‘(ii) programmatic review for equi-
table tribal participation;
‘‘(iii) monitoring and evaluation of re-
lations between the Forest Service and In-
dian tribes;
‘‘(iv) the coordination and integration
of programs of the Forest Service that affect,
or are of interest to, Indian tribes;
‘‘(v) training of Forest Service per-
sonnel for competency in tribal relations;
and
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‘‘(vi) the development of legislation af-
fecting Indian tribes;
‘‘(B) coordinate organizational responsibil-
ities within the administrative units of the For-
est Service to ensure that matters affecting the
rights and interests of Indian tribes are handled
in a manner that is—
‘‘(i) comprehensive;
‘‘(ii) responsive to tribal needs; and
‘‘(iii) consistent with policy guidelines
of the Forest Service;
‘‘(C)(i) develop generally applicable policies
and procedures of the Forest Service pertaining
to Indian tribes; and
‘‘(ii) monitor the application of those poli-
cies and procedures throughout the administra-
tive regions of the Forest Service;
‘‘(D) provide such information or guidance
to personnel of the Forest Service that are re-
sponsible for tribal relations as is required, as
determined by the Secretary;
‘‘(E) exercise such direct administrative au-
thority pertaining to tribal relations programs
as may be delegated by the Secretary;
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‘‘(F) for the purpose of coordinating pro-
grams and activities of the Forest Service with
programs and actions of other agencies or de-
partments that affect Indian tribes, consult
with—
‘‘(i) other agencies of the Department
of Agriculture, including the Natural Re-
sources Conservation Service; and
‘‘(ii) 
other 
Federal 
agencies,
including—
‘‘(I) the Department of the Inte-
rior; and
‘‘(II) the Environmental Protec-
tion Agency;
‘‘(G) submit to the Secretary an annual re-
port on the status of relations between the Forest
Service and Indian tribes that includes, at a
minimum—
‘‘(i) an examination of the participa-
tion of Indian tribes in programs adminis-
tered by the Secretary;
‘‘(ii) a description of the status of ini-
tiatives being carried out to improve work-
ing relationships with Indian tribes; and
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‘‘(iii) recommendations for improve-
ments or other adjustments to operations of
the Forest Service that would be beneficial
in strengthening working relationships with
Indian tribes; and
‘‘(H) carry out such other duties as the Sec-
retary may assign.
‘‘(d) COORDINATION.—In carrying out this section, the
Office and other offices within the Forest Service shall con-
sult on matters involving the rights and interests of Indian
tribes.’’.
SEC. 818. ASSISTANCE TO TRIBAL GOVERNMENTS.
The Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2101 et seq.) is amended by adding at the end the
following:
‘‘SEC. 21. ASSISTANCE TO TRIBAL GOVERNMENTS.
‘‘(a) DEFINITION OF INDIAN TRIBE.—In this section,
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).
‘‘(b) ESTABLISHMENT.—The Secretary may provide fi-
nancial, technical, educational and related assistance to In-
dian tribes for—
‘‘(1) tribal consultation and coordination with
the Forest Service on issues relating to—
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‘‘(A) tribal rights and interests on National
Forest System land (including national forests
and national grassland);
‘‘(B) coordinated or cooperative manage-
ment of resources shared by the Forest Service
and Indian tribes; and
‘‘(C) provision of tribal traditional, cul-
tural, or other expertise or knowledge;
‘‘(2) projects and activities for conservation edu-
cation and awareness with respect to forest land
under the jurisdiction of Indian tribes;
‘‘(3) technical assistance for forest resources
planning, management, and conservation on land
under the jurisdiction of Indian tribes; and
‘‘(4) the acquisition by Indian tribes, from will-
ing sellers, of conservation interests (including con-
servation easements) in forest land and resources on
land under the jurisdiction of the Indian tribes.
‘‘(c) IMPLEMENTATION.—
‘‘(1) IN GENERAL.—Not later than 18 months
after the date of enactment of this section, the Sec-
retary shall promulgate regulations to implement sub-
section (b) (including regulations for determining the
distribution of assistance under that subsection).
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‘‘(2) CONSULTATION.—In developing regulations
under paragraph (1), the Secretary shall engage in
full, open, and substantive consultation with Indian
tribes and representatives of Indian tribes.
‘‘(d) COORDINATION WITH THE SECRETARY OF THE
INTERIOR.—The Secretary shall coordinate with the Sec-
retary of the Interior during the establishment, implementa-
tion, and administration of subsection (b) to ensure that
programs under that subsection—
‘‘(1) do not conflict with tribal programs pro-
vided under the authority of the Department of the
Interior; and
‘‘(2) meet the goals of the Indian tribes.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section such
sums as are necessary for fiscal year 2002 and each fiscal
year thereafter.’’.
SEC. 819. SUDDEN OAK DEATH SYNDROME.
(a) FINDINGS.—Congress finds that—
(1) tan oak, coast live oak, Shreve’s oak, and
black oak trees are among the most beloved features
of the topography of California and the Pacific North-
west and efforts should be made to protect those trees
from disease;
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(2) the die-off of those trees, as a result of the ex-
otic Phytophthora fungus, is approaching epidemic
proportions;
(3) very little is known about the new species of
Phytophthora, and scientists are struggling to under-
stand the causes of sudden oak death syndrome, the
methods of transmittal, and how sudden oak death
syndrome can best be treated;
(4) the Phytophthora fungus has been found
on—
(A) Rhododendron plants in nurseries in
California; and
(B) wild huckleberry plants, potentially en-
dangering the commercial blueberry and cran-
berry industries;
(5) sudden oak death syndrome threatens to cre-
ate major economic and environmental problems in
California, the Pacific Northwest, and other regions,
including—
(A) the increased threat of fire and fallen
trees;
(B) the cost of tree removal and a reduction
in property values; and
(C) loss of revenue due to—
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(i) restrictions on imports of oak prod-
ucts and nursery stock; and
(ii) the impact on the commercial rho-
dodendron, blueberry, and cranberry indus-
tries; and
(6) Oregon and Canada have imposed an emer-
gency quarantine on the importation of oak trees, oak
products, and certain nursery plants from California.
(b) RESEARCH, MONITORING, AND TREATMENT
OF
SUDDEN OAK DEATH SYNDROME.—
(1) IN GENERAL.—The Secretary of Agriculture
(referred to in this section as the ‘‘Secretary’’) shall
carry out a sudden oak death syndrome research,
monitoring, and treatment program to develop meth-
ods to control, manage, or eradicate sudden oak death
syndrome from oak trees on public and private land.
(2) RESEARCH, MONITORING, AND
TREATMENT
ACTIVITIES.—In carrying out the program under
paragraph (1), the Secretary may—
(A) conduct open space, roadside, and aer-
ial surveys;
(B) provide monitoring technique work-
shops;
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(C) develop baseline information on the dis-
tribution, condition, and mortality rates of oaks
in California and the Pacific Northwest;
(D) maintain a geographic information sys-
tem database;
(E) conduct research activities, including
research on forest pathology, Phytophthora ecol-
ogy, forest insects associated with oak decline,
urban forestry, arboriculture, forest ecology, fire
management, silviculture, landscape ecology, and
epidemiology;
(F) evaluate the susceptibility of oaks and
other vulnerable species throughout the United
States; and
(G) develop and apply treatments.
(c) MANAGEMENT, REGULATION, AND FIRE PREVEN-
TION.—
(1) IN GENERAL.—The Secretary shall conduct
sudden oak death syndrome management, regulation,
and fire prevention activities to reduce the threat of
fire and fallen trees killed by sudden oak death syn-
drome.
(2) MANAGEMENT, REGULATION, AND FIRE PRE-
VENTION
ACTIVITIES.—In carrying out paragraph
(1), the Secretary may—
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(A) conduct hazard tree assessments;
(B) provide grants to local units of govern-
ment for hazard tree removal, disposal and recy-
cling, assessment and management of restoration
and mitigation projects, green waste treatment
facilities, reforestation, resistant tree breeding,
and exotic weed control;
(C) increase and improve firefighting and
emergency response capabilities in areas where
fire hazard has increased due to oak die-off;
(D) treat vegetation to prevent fire, and as-
sessment of fire risk, in areas heavily infected
with sudden oak death syndrome;
(E) conduct national surveys and inspec-
tions of—
(i) commercial rhododendron and blue-
berry nurseries; and
(ii) 
native 
rhododendron 
and
huckleberry plants;
(F) provide for monitoring of oaks and
other vulnerable species throughout the United
States to ensure early detection; and
(G) provide diagnostic services.
(d) EDUCATION AND RESEARCH.—
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(1) IN GENERAL.—The Secretary shall conduct
education and outreach activities to make informa-
tion available to the public on sudden death oak syn-
drome.
(2) EDUCATION AND OUTREACH ACTIVITIES.—In
carrying out paragraph (1), the Secretary may—
(A) develop and distribute educational ma-
terials for homeowners, arborists, urban foresters,
park 
managers, 
public 
works 
personnel,
recreationists, nursery workers, landscapers, na-
turists, firefighting personnel, and other individ-
uals, as the Secretary determines appropriate;
(B) design and maintain a website to pro-
vide information on sudden oak death syndrome;
and
(C) provide financial and technical support
to States, local governments, and nonprofit orga-
nizations providing information on sudden oak
death syndrome.
(e) SUDDEN OAK DEATH SYNDROME ADVISORY COM-
MITTEE.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—The Secretary shall es-
tablish a Sudden Oak Death Syndrome Advisory
Committee (referred to in this subsection as the
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‘‘Committee’’) to assist the Secretary in carrying
out this section.
(B) MEMBERSHIP.—
(i) 
COMPOSITION.—The 
Committee
shall consist of—
(I) 1 representative of the Animal
and Plant Health Inspection Service,
to be appointed by the Administrator
of the Animal and Plant Health In-
spection Service;
(II) 1 representative of the Agri-
cultural Research Service, to be ap-
pointed by the Administrator of the
Agricultural Research Service;
(III) 1 representative of the Forest
Service, to be appointed by the Chief of
the Forest Service;
(IV) 2 individuals appointed by
the Secretary from each of the States
affected by sudden oak death syndrome;
and
(V) any individual, to be ap-
pointed by the Secretary, in consulta-
tion with the Governors of the affected
States, that the Secretary determines—
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(aa) has an interest or exper-
tise in sudden oak death syn-
drome; and
(bb) would contribute to the
Committee.
(ii) DATE
OF
APPOINTMENTS.—The
appointment of a member of the Committee
shall be made not later than 90 days after
the date of enactment of this Act.
(C) INITIAL MEETING.—Not later than 30
days after the date on which all members of the
Committee have been appointed, the Committee
shall hold the initial meeting of the Committee.
(2) DUTIES.—
(A) IMPLEMENTATION
PLAN.—The Com-
mittee shall prepare a comprehensive implemen-
tation plan to address the management, control,
and eradication of sudden oak death syndrome.
(B) REPORTS.—
(i) INTERIM REPORT.—Not later than
1 year after the date of enactment of this
Act, the Committee shall submit to Congress
the implementation plan prepared under
paragraph (1).
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(ii) FINAL REPORT.—Not later than 3
years after the date of enactment of this Act,
the Committee shall submit to Congress a
report that contains—
(I) a summary of the activities of
the Committee;
(II) an accounting of funds re-
ceived and expended by the Committee;
and
(III) findings and recommenda-
tions of the Committee.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated for each of fiscal years 2002
through 2006—
(1) to carry out subsection (b), $7,500,000, of
which not more than $1,500,000 shall be used for
treatment;
(2) to carry out subsection (c), $6,000,000;
(3) to carry out subsection (d), $500,000; and
(4) to carry out subsection (e), $250,000.
SEC. 820. INDEPENDENT INVESTIGATION OF FIREFIGHTER
FATALITIES.
In the case of each fatality of an officer or employee
of the Forest Service that occurs due to wildfire entrapment
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or burnover, the Inspector General of the Department of Ag-
riculture shall—
(1) conduct an investigation that does not rely
on, and is completely independent of, any investiga-
tion of the fatality that is conducted by the Forest
Service; and
(2) submit to Congress and the Secretary of Ag-
riculture a report on the fatality.
SEC. 821. ADAPTIVE ECOSYSTEM RESTORATION OF ARI-
ZONA AND NEW MEXICO FORESTS AND WOOD-
LANDS.
(a) FINDINGS.—Congress finds that—
(1) fire suppression, logging, and overgrazing
have degraded the ecological conditions of forests and
woodlands in Arizona and New Mexico;
(2) some of those forests and woodlands contain
unnaturally high quantities of biomass that are sub-
ject to large, high intensity wildfires that endanger
human lives and livelihoods and ecological sustain-
ability;
(3) degraded forests and woodlands have led to—
(A) declining biodiversity;
(B) decreased stream and spring flows;
(C) impaired watershed values;
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(D) increased susceptibility to insects and
diseases;
(E) increases in mortality in the oldest
trees; and
(F) degraded habitats for wildlife and hu-
mans;
(4) healthy forest and woodland ecosystems—
(A) minimize the threat of unnatural wild-
fire;
(B) improve wildlife habitat;
(C) increase tree, grass, forb, and shrub pro-
ductivity;
(D) enhance watershed values; and
(E) provide a basis for economically and
environmentally sustainable uses;
(5) forest and woodland treatments intended to
restore degraded ecosystems should be developed using
the best available scientific knowledge;
(6) treatments not supported by sound science
may fail to achieve long-term ecosystem health and
resource restoration objectives;
(7)(A) scientific research must be integrated with
ongoing land management activities; and
(B) restoration techniques must be continually
reevaluated and adapted to reflect new knowledge and
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to meet the practical needs of land managers and
communities developing and implementing restora-
tion treatments; and
(8) scientific knowledge must be translated and
transferred to land managers, resource specialists,
communities, and stakeholders that collaborate in the
development and implementation of those treatments.
(b) PURPOSES.—The purposes of this section are—
(1) to—
(A) improve the ecological health, resource
values, and sustainability of forest and woodland
ecosystems in Arizona and New Mexico; and
(B) reduce the threat of unnatural wildfire,
disease, and insect infestations in those States;
(2) to restore ecosystem structure and function so
that ecosystems will—
(A) support biodiversity;
(B) enhance watershed values;
(C) increase water flow to seeps and
springs; and
(D) increase tree, grass, forb, and shrub
vigor and growth to provide sustainable eco-
nomic activities for current and future genera-
tions;
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(3) to develop the scientific knowledge to inform
the design of adaptive ecosystem management restora-
tion treatments that will restore long-term ecological
health to forests and woodlands in the States; and
(4) to encourage collaboration among land man-
agement agencies, communities, and interest groups
in developing, implementing, and monitoring adapt-
ive ecosystem management restoration treatments that
are ecologically sound, economically viable, and so-
cially responsible.
(c) DEFINITIONS.—In this section:
(1) ADAPTIVE
ECOSYSTEM
MANAGEMENT.—The
term ‘‘adaptive ecosystem management’’ means man-
agement practiced by engaging researchers, land man-
agers, resource specialists, policy analysts, decision-
makers, nonprofit organizations, and communities in
conducting collaborative large-scale management ex-
periments that seek to restore ecosystem health while
seeking unexplored opportunities to enhance natural
resource values.
(2) ECOLOGICAL INTEGRITY.—The term ‘‘ecologi-
cal integrity’’ includes a critical range of variability
in biodiversity, ecological processes and structures, re-
gional and historical context, and sustainable forestry
practices in forests and woodlands.
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(3) ECOLOGICAL RESTORATION.—The term ‘‘eco-
logical restoration’’ means the process of assisting the
recovery and management of ecological integrity.
(4) INSTITUTE.—The term ‘‘Institute’’ means an
institute established under subsection (d)(1).
(5) LAND
MANAGEMENT
AGENCY.—The term
‘‘land management agency’’ means a Federal, State,
local, or tribal land management agency.
(6) PRACTITIONER.—The term ‘‘practitioner’’
means a person or entity that practices natural re-
source management.
(7) 
SECRETARIES.—The 
term 
‘‘Secretaries’’
means—
(A) the Secretary of Agriculture, acting
through the Chief of the Forest Service; and
(B) the Secretary of the Interior.
(8) STATE.—The term ‘‘State’’ means—
(A) the State of Arizona; and
(B) the State of New Mexico.
(d) ESTABLISHMENT OF INSTITUTES.—
(1) IN GENERAL.—The Secretary of Agriculture,
in consultation with the Secretary of the Interior,
shall establish—
(A) an Ecological Restoration Institute in
Flagstaff, Arizona; and
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(B) an Institute at a college or university
in the State of New Mexico selected by the Sec-
retary of Agriculture, in consultation with the
Secretary of the Interior.
(2) SCOPE OF RESEARCH; TRANSFER OF INFOR-
MATION.—Each Institute shall—
(A) plan, conduct, or otherwise arrange for
applied ecosystem management research that—
(i) assists in answering questions iden-
tified by land managers, practitioners, and
others concerned with land management;
and
(ii) will be useful in the development
and implementation of practical, science-
based, ecological restoration treatments;
(B) translate scientific knowledge into com-
munication tools that are easily understood by
land managers, natural resource professionals,
and concerned citizens; and
(C) provide similar information to land
managers and other interested persons.
(3) COOPERATION.—Each Institute shall cooper-
ate with—
(A) researchers at colleges and universities
in the States that have demonstrated capabilities
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for research, information dissemination, con-
tinuing education, and undergraduate and grad-
uate training, to develop broad capacity to im-
plement ecological restoration in forest and
woodland ecosystems; and
(B) other organizations and entities in the
region (such as the Western Governors’ Associa-
tion, Southwest Strategy group, the Southwest
Fire Management Board, and the Arizona Gov-
ernor’s Forest Health/Fire Plan Advisory Com-
mittee), to increase and accelerate efforts to re-
store forest ecosystem health and abate unnatural
and unwanted wildfire.
(4) APPROVAL
OF
ANNUAL
WORK
PLAN; REQ-
UISITE ASSURANCES.—As a condition to the receipt of
funds made available under subsection (g), for each
fiscal year, each Institute shall submit to the Sec-
retary of Agriculture, for review by the Secretary of
Agriculture, in consultation with the Secretary of the
Interior, an annual work plan that includes assur-
ances, satisfactory to the Secretaries, that the pro-
posed work will serve the information needs of—
(A) land managers;
(B) practitioners;
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(C) concerned citizens and communities;
and
(D) the States.
(e) COOPERATION BETWEEN INSTITUTES AND FED-
ERAL AGENCIES.—In carrying out this section, the Sec-
retary of Agriculture, in consultation with the Secretary of
the Interior—
(1) shall encourage other Federal departments,
agencies, and instrumentalities to use and take ad-
vantage of, on a cooperative basis, the expertise and
capabilities that are available through the Institutes;
(2) shall encourage cooperation and coordination
with other Federal programs relating to—
(A) ecological restoration; and
(B) wildfire risk reduction;
(3) may (notwithstanding chapter 63 of title 31,
United States Code)—
(A) enter into contracts, cooperative agree-
ments, interagency personal agreements; and
(B) carry out other transactions;
(4) may accept funds from other Federal depart-
ments, agencies, and instrumentalities to supplement
or fully fund grants made, and contracts entered into,
by the Secretaries;
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(5) may promulgate such regulations as the Sec-
retaries consider appropriate;
(6) may support a program of internships for
qualified individuals at the undergraduate and grad-
uate levels to carry out the educational and training
objectives of this section; and
(7) shall encourage professional education and
public information activities relating to the purposes
of this section.
(f) MONITORING AND EVALUATION.—
(1) IN GENERAL.—Not later than 5 years after
the date of enactment of this Act, and every 5 years
thereafter, the Secretary, in consultation with the Sec-
retary of the Interior, shall complete a detailed eval-
uation of each Institute—
(A) to ensure, to the maximum extent prac-
ticable, that the research, communication tools,
and information transfer activities of the Insti-
tute meet the needs of—
(i) land managers;
(ii) practitioners;
(iii) concerned citizens and commu-
nities; and
(iv) the States; and
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(B) to determine whether continued provi-
sion of Federal assistance to the Institute is war-
ranted.
(2) STANDARDS FOR RECEIPT OF FINANCIAL AS-
SISTANCE.—If, as a result of an evaluation under
paragraph (1), the Secretary, in consultation with the
Secretary of the Interior, determines that an Institute
does not qualify for further Federal assistance under
this section, the Institute shall receive no further Fed-
eral assistance under this section until such time as
the qualifications of the Institute are reestablished to
the satisfaction of the Secretaries.
(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000 for each fiscal year.
TITLE IX—ENERGY
SEC. 901. FINDINGS.
Congress finds that—
(1) there are many opportunities for the agricul-
tural sector and rural areas to produce renewable en-
ergy and increase energy efficiency;
(2) investments in renewable energy and energy
efficiency—
(A) enhance the energy security and inde-
pendence of the United States;
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(B) increase farmer and rancher income;
(C) promote rural economic development;
(D) provide environmental and public
health benefits such as cleaner air and water;
and
(E) improve electricity grid reliability,
thereby reducing the likelihood of blackouts and
brownouts, particularly during peak usage peri-
ods;
(3) the public strongly supports renewable energy
generation and energy efficiency improvements as an
important component of a national energy strategy;
(4)(A) the Federal Government is the country’s
largest consumer of a vast array of products, spend-
ing in excess of $200,000,000,000 per year;
(B) purchases and use of products by the Federal
Government have a significant effect on the environ-
ment; and
(C) accordingly, the Federal Government should
lead the way in purchasing biobased products so as
to minimize environmental impacts while supporting
domestic producers of biobased products;
(5) the agricultural sector is a leading producer
of biobased products to meet domestic and inter-
national needs;
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(6) agriculture can play a significant role in the
development of fuel cell and hydrogen-based energy
technologies, which are critical technologies for a
clean energy future;
(7)(A) wind energy is 1 of the fastest growing
clean energy technologies; and
(B) there are tremendous economic development
and environmental quality benefits to be achieved by
developing both large-scale and small-scale wind
power projects on farms and in rural communities;
(8) farm-based renewable energy generation can
become one of the major cash crops of the United
States, improving the livelihoods of hundreds of thou-
sands of family farmers, ranchers, and others and re-
vitalizing rural communities;
(9)(A) evidence continues to mount that in-
creases in atmospheric concentrations of greenhouse
gases are contributing to global climate change; and
(B) agriculture can help in climate change miti-
gation by—
(i) storing carbon in soils, plants, and for-
ests;
(ii) producing biofuels, chemicals, and
power to replace fossil fuels and petroleum-based
products; and
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(iii) reducing emissions by capturing gases
from animal feeding operations, changing agri-
cultural land practices, and becoming more en-
ergy efficient;
(10) because agricultural production is energy-
intensive, it is incumbent on the Federal Government
to aid the agricultural sector in reducing energy con-
sumption and energy costs;
(11)(A) one way to help farmers, ranchers, and
others reduce energy use is through professional en-
ergy audits;
(B) energy audits provide recommendations for
improved energy efficiency that, when acted on, offer
an effective means of reducing overall energy use and
saving money; and
(C) energy savings of 10 to 30 percent can typi-
cally be achieved, and greater savings are often real-
ized; and
(12) rural electric utilities are often geographi-
cally well situated to develop renewable and distrib-
uted energy supplies, enabling the utilities to diver-
sify their energy portfolios and afford their members
or customers alternative energy sources, which many
such members and customers desire.
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SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT
ACT.
The Consolidated Farm and Rural Development Act
(as amended by section 649) is amended by adding at the
end the following:
‘‘Subtitle L—Clean Energy
‘‘SEC. 388A. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) BIOMASS.—
‘‘(A) IN
GENERAL.—The term ‘biomass’
means any organic material that is available on
a renewable or recurring basis.
‘‘(B) 
INCLUSIONS.—The 
term 
‘biomass’
includes—
‘‘(i) dedicated energy crops;
‘‘(ii) trees grown for energy produc-
tion;
‘‘(iii) wood waste and wood residues;
‘‘(iv) plants (including aquatic plants,
grasses, and agricultural crops);
‘‘(v) residues;
‘‘(vi) fibers;
‘‘(vii) animal wastes and other waste
materials; and
‘‘(viii) fats and oils.
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‘‘(C) EXCLUSIONS.—The term ‘biomass’
does not include—
‘‘(i) paper that is commonly recycled;
or
‘‘(ii) unsegregated garbage.
‘‘(2) RENEWABLE ENERGY.—The term ‘renewable
energy’ means energy derived from a wind, solar, bio-
mass, geothermal, or hydrogen source.
‘‘(3) RURAL SMALL BUSINESS.—The term ‘rural
small business’ has the meaning that the Secretary
shall prescribe by regulation.
‘‘CHAPTER 1—BIOBASED PRODUCT
DEVELOPMENT
‘‘SEC. 388B. BIOBASED PRODUCT PURCHASING REQUIRE-
MENT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 
ADMINISTRATOR.—The 
term 
‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency.
‘‘(2) BIOBASED PRODUCT.—The term ‘biobased
product’ means a commercial or industrial product,
as determined by the Secretary (other than food or
feed), that uses biological products or renewable do-
mestic agricultural materials (including plant, ani-
mal, and marine materials) or forestry materials.
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‘‘(3) 
ENVIRONMENTALLY
PREFERABLE.—The
term ‘environmentally preferable’, with respect to a
biobased product, refers to a biobased product that
has a lesser or reduced effect on human health and the
environment 
when 
compared 
with 
competing
nonbiobased products that serve the same purpose.
‘‘(b) BIOBASED PRODUCT PURCHASING.—
‘‘(1) MANDATORY
PURCHASING
REQUIREMENT
FOR LISTED BIOBASED PRODUCTS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), not later than 180 days after
the date of enactment of this subtitle, the head of
each Federal agency shall ensure that, in pur-
chasing any product, the Federal agency pur-
chases a biobased product, rather than a com-
parable nonbiobased product, if the biobased
product is listed on the list of biobased products
published under subsection (c)(1).
‘‘(B) BIOBASED PRODUCT NOT REASONABLY
COMPARABLE.—A Federal agency shall not be re-
quired to purchase a biobased product under sub-
paragraph (A) if the purchasing employee sub-
mits to the Secretary and the Administrator of
the Office of Federal Procurement Policy a writ-
ten determination that the biobased product is
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not reasonably comparable to nonbiobased prod-
ucts in price, performance, or availability.
‘‘(C) CONFLICTING
REQUIREMENTS.—The
Secretary and the Administrator shall jointly
promulgate regulations with which Federal agen-
cies shall comply in cases of a conflict between
the biobased product purchasing requirement
under subparagraph (A) and a purchasing re-
quirement under any other provision of law.
‘‘(2) PURCHASING
OF
NONLISTED
BIOBASED
PRODUCTS.—The head of each Federal agency is en-
couraged to purchase, to the maximum extent prac-
ticable, available biobased products that are not listed
on the list of biobased products published under sub-
section (c)(1) when the Federal agency is not required
to purchase a biobased product that is on the list.
‘‘(c) ADMINISTRATIVE ACTION.—
‘‘(1) LIST OF BIOBASED PRODUCTS.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the date of enactment of this subtitle,
and annually thereafter, the Secretary, in con-
sultation with the Administrator and the Direc-
tor of the National Institute of Standards and
Technology, shall publish a list of biobased prod-
ucts.
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‘‘(B) 
ENVIRONMENTALLY
PREFERABLE
BIOBASED PRODUCTS.—The Secretary shall not
include on the list under paragraph (1) biobased
products that are not environmentally preferable,
as determined by the Secretary.
‘‘(C) GRANTS.—The Secretary may award
grants to, or enter into contracts or cooperative
agreements with, eligible persons, businesses, or
institutions (as determined by the Secretary) to
assist in collecting data concerning the evalua-
tion of and lifecycle analyses of biobased prod-
ucts for use in making the determinations nec-
essary to carry out this paragraph.
‘‘(2) GUIDANCE.—Not later than 240 days after
the date of enactment of this subtitle, the Office of
Federal Procurement Policy and Federal Acquisition
Regulation Council shall make the Federal Acquisi-
tion Regulation consistent with subsection (b).
‘‘(d) EDUCATION
AND OUTREACH PROGRAM.—The
Secretary, in cooperation with the Defense Acquisition Uni-
versity and the Federal Acquisition Institute, shall conduct
education programs for all Federal procurement officers re-
garding biobased products and the requirements of sub-
section (b).
‘‘(e) LABELING.—
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‘‘(1) IN GENERAL.—The Secretary shall develop
a program, similar to the Energy Star program of
the Department of Energy and the Environmental
Protection Agency, under which the Secretary author-
izes producers of environmentally preferable biobased
products to use a label that identifies the products as
environmentally preferable biobased products.
‘‘(2) ENVIRONMENTALLY PREFERABLE BIOBASED
PRODUCTS.—The Secretary shall monitor and take
appropriate action regarding the use of labels under
paragraph (1) to ensure that the biobased products
using the labels do not include biobased products that
are not environmentally preferable, as determined by
the Secretary.
‘‘(3) CONTRACTING.—In carrying out paragraph
(1), the Secretary may contract with appropriate en-
tities with expertise in product labeling and standard
setting.
‘‘(f) GOAL.—It shall be the goal of each Federal agency
for each fiscal year to purchase biobased products of an ag-
gregate value that is not less than 5 percent of the aggregate
value of all products purchased by the Federal agency dur-
ing the preceding fiscal year.
‘‘(g) REPORTS.—As soon as practicable after the end
of each fiscal year, the Secretary and the Office of Federal
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Procurement Policy shall jointly submit to Congress an an-
nual report that, for the fiscal year, describes the extent of—
‘‘(1) compliance by each Federal agency with
subsection (b); and
‘‘(2) the success of each Federal agency in achiev-
ing the goal established under subsection (f).
‘‘(h) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $2,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to assist
in the development of new and emerging technologies for
the conversion of biomass into petroleum substitutes, so as
to—
‘‘(1) develop transportation and other fuels and
chemicals from renewable sources;
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‘‘(2) reduce the dependence of the United States
on imported oil;
‘‘(3) reduce greenhouse gas emissions;
‘‘(4) diversify markets for raw agricultural and
forestry products; and
‘‘(5) create jobs and enhance the economic devel-
opment of the rural economy.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) ADVISORY
COMMITTEE.—The term ‘Advi-
sory Committee’ means the Biomass Research and De-
velopment Technical Advisory Committee established
by section 306 of the Biomass Research and Develop-
ment Act of 2000 (7 U.S.C. 7624 note; Public Law
106–224).
‘‘(2) 
BIOREFINERY.—The 
term 
‘biorefinery’
means equipment and processes that—
‘‘(A) convert biomass into fuels and chemi-
cals; and
‘‘(B) may produce electricity.
‘‘(3) BOARD.—The term ‘Board’ means the Bio-
mass Research and Development Board established by
section 305 of the Biomass Research and Development
Act of 2000 (7 U.S.C. 7624 note; Public Law 106–
224).
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‘‘(4) 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).
‘‘(c) GRANTS.—The Secretary shall award grants to el-
igible entities to assist in paying the cost of development
and construction of biorefineries to carry out projects to
demonstrate the commercial viability of 1 or more processes
for converting biomass to fuels or chemicals.
‘‘(d) ELIGIBLE ENTITIES.—A corporation, farm coop-
erative, association of farmers, national laboratory, univer-
sity, State energy agency or office, Indian tribe, or consor-
tium comprised of any of those entities shall be eligible to
receive a grant under subsection (c).
‘‘(e) COMPETITIVE BASIS FOR AWARDS.—
‘‘(1) IN GENERAL.—The Secretary shall award
grants under subsection (c) on a competitive basis in
consultation with the Board and Advisory Committee.
‘‘(2) SELECTION CRITERIA.—
‘‘(A) IN GENERAL.—In selecting projects to
receive 
grants 
under 
subsection 
(c), 
the
Secretary—
‘‘(i) shall select projects based on the
likelihood that the projects will demonstrate
the commercial viability of a process for
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converting biomass into fuels or chemicals;
and
‘‘(ii) may consider the likelihood that
the projects will produce electricity.
‘‘(B) FACTORS.—The factors to be consid-
ered under subparagraph (A) shall include—
‘‘(i) the potential market for the prod-
uct or products;
‘‘(ii) the quantity of petroleum the
product will displace;
‘‘(iii) the level of financial participa-
tion by the applicants;
‘‘(iv) the availability of adequate fund-
ing from other sources;
‘‘(v) the beneficial impact on resource
conservation and the environment;
‘‘(vi) the participation of producer as-
sociations and cooperatives;
‘‘(vii) the timeframe in which the
project will be operational;
‘‘(viii) the potential for rural economic
development;
‘‘(ix) the participation of multiple eli-
gible entities; and
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‘‘(x) the potential for developing ad-
vanced industrial biotechnology approaches.
‘‘(f) COST SHARING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amount of a grant for a project award-
ed under subsection (c) shall not exceed 30 percent of
the cost of the project.
‘‘(2) INCREASED GRANT AMOUNT.—The Secretary
may increase the amount of a grant for a project
under subsection (c) to not more than 50 percent in
the case of a project that the Secretary finds particu-
larly meritorious.
‘‘(3) FORM OF GRANTEE SHARE.—
‘‘(A) IN GENERAL.—The grantee share of
the cost of a project may be made in the form
of cash or the provision of services, material, or
other in-kind contributions.
‘‘(B) LIMITATION.—The amount of the
grantee share of the cost of a project that is made
in the form of the provision of services, material,
or other in-kind contributions shall not exceed 25
percent of the amount of the grantee share deter-
mined under paragraph (1).
‘‘(g) FUNDING.—
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‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $15,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388D. BIODIESEL FUEL EDUCATION PROGRAM.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) biodiesel fuel use can help reduce greenhouse
gas emissions and public health risks associated with
air pollution;
‘‘(2) biodiesel fuel use enhances energy security
by reducing petroleum consumption;
‘‘(3) biodiesel fuel is nearing the transition from
the research and development phase to commercializa-
tion;
‘‘(4) biodiesel fuel is still relatively unknown to
the public and even to diesel fuel users; and
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‘‘(5) education of, and provision of technical
support to, current and future biodiesel fuel users will
be critical to the widespread use of biodiesel fuel.
‘‘(b) ESTABLISHMENT.—The Secretary shall, under
such terms and conditions as are appropriate, offer 1 or
more competitive grants to eligible entities to educate Fed-
eral, State, regional, and local government entities and pri-
vate entities that operate vehicle fleets, other interested enti-
ties (as determined by the Secretary), and the public about
the benefits of biodiesel fuel use.
‘‘(c) ELIGIBLE ENTITIES.—To receive a grant under
subsection (b), an entity—
‘‘(1) shall be a nonprofit organization; and
‘‘(2) shall have demonstrated expertise in bio-
diesel fuel production, use, and distribution.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—Of the
funds of the Commodity Credit Corporation, the Secretary
shall make available $5,000,000 for each fiscal year 2003
through 2006.
‘‘CHAPTER 2—RENEWABLE ENERGY
DEVELOPMENT AND ENERGY EFFICIENCY
‘‘SEC. 388E. RENEWABLE ENERGY DEVELOPMENT LOAN AND
GRANT PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Rural Business Cooperative Service, in addition to exer-
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cising authority to make loans and loan guarantees under
other law, shall establish a program under which the Sec-
retary shall make loans and loan guarantees and competi-
tively award grants to assist farmers and ranchers in
projects to establish new, or expand existing, farmer or
rancher cooperatives, or other rural business ventures (as
determined by the Secretary), to—
‘‘(1) enable farmers and ranchers to become own-
ers of sources of renewable electric energy and market-
ers of electric energy produced from renewable sources;
‘‘(2) provide new income streams for farmers
and ranchers;
‘‘(3) increase the quantity of electricity available
from renewable energy sources; and
‘‘(4) provide environmental and public health
benefits to rural communities and the United States
as a whole.
‘‘(b) OWNERSHIP REQUIREMENT.—At least 51 percent
of the interest in a rural business venture assisted with a
grant under subsection (a) shall be owned by farmers or
ranchers.
‘‘(c) MAXIMUM AMOUNT OF LOANS AND GRANTS.—
‘‘(1) LOANS.—The amount of a loan made or
guaranteed for a project under subsection (a) shall
not exceed $10,000,000.
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‘‘(2) GRANTS.—The amount of a grant made for
a project under subsection (a) shall not exceed
$200,000 for a fiscal year.
‘‘(d) COST SHARING.—
‘‘(1) IN GENERAL.—The total amount of loans
made or guaranteed or grants awarded under sub-
section (a) for a project shall not exceed 50 percent
of the cost of the activity funded by the loan or grant.
‘‘(2) FORM OF GRANTEE SHARE.—
‘‘(A) IN GENERAL.—The grantee share of
the cost of the activity may be made in the form
of cash or the provision of services, material, or
other in-kind contributions.
‘‘(B) LIMITATION.—The amount of the
grantee share of the cost of an activity that is
made in the form of the provision of services,
material, or other in-kind contributions shall not
exceed 25 percent of the amount of the grantee
share, as determined under paragraph (1).
‘‘(e) INTEREST RATE.—A loan made or guaranteed
under subsection (a) shall bear an interest rate that does
not exceed 4 percent.
‘‘(f) USE OF FUNDS.—
‘‘(1) PERMITTED USES.—
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‘‘(A) GRANTS.—A recipient of a grant
awarded under subsection (a) may use the grant
funds to develop a business plan or perform a
feasibility study to establish a viable marketing
opportunity for renewable electric energy genera-
tion and sale.
‘‘(B) LOANS.—A recipient of a loan or loan
guarantee under subsection (a) may use the loan
funds to provide capital for start-up costs associ-
ated with the rural business venture or the pro-
motion of the aggregation of renewable electric
energy sources.
‘‘(2) PROHIBITED USES.—A recipient of a loan,
loan guarantee, or grant under subsection (a) shall
not use the loan or grant funds for planning, repair,
rehabilitation, acquisition, or construction of a build-
ing.
‘‘(g) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $16,000,000, to remain available until expended.
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‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘(3) LOAN AND INTEREST SUBSIDIES.—In the
case of a loan or loan guarantee under subsection (a),
the Secretary shall use funds under paragraph (1) to
pay the cost of loan and interest subsidies necessary
to carry out this section.
‘‘SEC. 388F. ENERGY AUDIT AND RENEWABLE ENERGY DE-
VELOPMENT PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Rural Business Cooperative Service, shall make competitive
grants to eligible entities to enable the eligible entities to
carry out a program to assist farmers, and ranchers, and
rural small businesses (as determined by the Secretary) in
becoming more energy efficient and in using renewable en-
ergy technology.
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to carry
out a program under subsection (a) include—
‘‘(1) a State energy or agricultural office;
‘‘(2) a regional or State-based energy organiza-
tion or energy organization of an Indian tribe (as de-
fined in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b));
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‘‘(3) a land-grant college or university (as de-
fined in section 1404 of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3103)) or other college or university;
‘‘(4) a farm bureau or organization;
‘‘(5) a rural electric cooperative or utility;
‘‘(6) a nonprofit organization; and
‘‘(7) any other entity, as determined by the Sec-
retary.
‘‘(c) MERIT REVIEW.—
‘‘(1) MERIT
REVIEW
PANEL.—The Secretary
shall establish a merit review panel to review applica-
tions for grants under subsection (a) that uses the ex-
pertise of other Federal agencies (including the De-
partment of Energy and the Environmental Protec-
tion Agency), industry, and nongovernmental organi-
zations.
‘‘(2) SELECTION CRITERIA.—In reviewing appli-
cations of eligible entities to receive grants under sub-
section (a), the merit review panel shall consider—
‘‘(A) the ability and expertise of the eligible
entity in providing professional energy audits
and renewable energy assessments;
‘‘(B) the geographic scope of the program
proposed by the eligible entity;
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‘‘(C) the number of farmers, ranchers, and
rural small businesses to be assisted by the pro-
gram;
‘‘(D) the potential for energy savings and
environmental and public health benefits result-
ing from the program; and
‘‘(E) the plan of the eligible entity for edu-
cating farmers, ranchers, and rural small busi-
nesses on the benefits of energy efficiency and re-
newable energy development.
‘‘(d) USE OF GRANT FUNDS.—A recipient of a grant
under subsection (a) shall use the grant funds to—
‘‘(1)(A) conduct energy audits for farmers,
ranchers, and rural small businesses to provide farm-
ers, ranchers, and rural small businesses rec-
ommendations for energy efficiency and renewable en-
ergy development opportunities; and
‘‘(B) conduct workshops on that subject as ap-
propriate;
‘‘(2) make farmers, ranchers, and rural small
businesses aware of, and ensure that they have access
to—
‘‘(A) financial assistance under section
388G; and
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‘‘(B) other Federal, State, and local finan-
cial assistance programs for which farmers,
ranchers, and rural small businesses may be eli-
gible; and
‘‘(3) arrange private financial assistance to
farmers, ranchers, and rural small businesses on fa-
vorable terms.
‘‘(e) COST SHARING.—
‘‘(1) IN GENERAL.—A recipient of a grant under
subsection (a) that conducts an energy audit for a
farmer, rancher, or rural small business under sub-
section (d)(1) shall require that, as a condition to the
conduct of the energy audit, the farmer, rancher, or
rural small business pay at least 25 percent of the
cost of the audit.
‘‘(2) IMPLEMENTATION OF RECOMMENDATIONS.—
If a farmer, rancher, or rural small business substan-
tially implements the recommendations made in con-
nection with an energy audit, the Secretary may re-
imburse the farmer, rancher, or rural small business
the amount that is equal to the share of the cost paid
by the farmer, rancher, or rural small business under
paragraph (1).
‘‘(f) REPORTS.—The Secretary shall submit to the
Committee on Agriculture of the House of Representatives
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and the Committee on Agriculture, Nutrition, and Forestry
of the Senate an annual report on the implementation of
this section.
‘‘(g) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $15,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388G. LOANS, LOAN GUARANTEES, AND GRANTS TO
FARMERS, RANCHERS, AND RURAL SMALL
BUSINESSES FOR RENEWABLE ENERGY SYS-
TEMS AND ENERGY EFFICIENCY IMPROVE-
MENTS.
‘‘(a) IN GENERAL.—In addition to exercising author-
ity to make loans and loan guarantees under other law,
the Secretary shall make loans, loan guarantees, and grants
to farmers, ranchers, and rural small businesses to—
‘‘(1) purchase renewable energy systems; and