‘‘(6) MANAGEMENT
COSTS.—The Secretary 
shall pay 75 percent of the cost of management ac-
tivities, including control of invasive species, re-
quired under a contract entered into under this sub-
chapter.’’. 
(g) WILDLIFE CRITERIA.—Section 1234(c)(3)(B) of 
such Act (16 U.S.C. 3834(c)(3)(B)) is amended by insert-
ing before the period the following: ‘‘, taking into consider-
ation the recommendations of States concerning species 
or ecosystems that are State priorities for recovery or res-
toration’’. 
(h) RARE
AND
DECLINING
HABITAT.—Section 
1234(c) of such Act (16 U.S.C. 3834(c)) is amended by 
adding at the end the following new paragraph: 
‘‘(5) RARE
AND
DECLINING
HABITAT.—The 
Secretary may approve a request by a State to es-
tablish continuous enrollment categories for rare and 
declining habitat in specific areas of the State to 
benefit specific State or federally listed threatened 
or endangered species.’’. 
(i) 
RENTAL
PAYMENT
LIMITATIONS.—Section 
1234(f) of such Act (16 U.S.C. 3834(f)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod at the end the following: ‘‘, except that the Sec-
retary may waive this payment limitation for persons 
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participating in a conservation reserve enhancement 
program or cooperative conservation project if the 
Secretary determines such a waiver is necessary to 
achieve the objectives of the conservation reserve en-
hancement program or project’’; and 
(2) in paragraph (4), by adding at the end the 
following new subparagraph: 
‘‘(C) IRRIGATED
LAND.—In determining 
the amount of annual rental payments for own-
ers and operators seeking to enroll irrigated 
land in a conservation reserve enhancement 
program, the Secretary shall consider the aver-
age rental rate for irrigated land in the area.’’. 
SEC. 203. WETLANDS RESERVE PROGRAM. 
(a) MAXIMUM ENROLLMENT.—Section 1237(b)(1) of 
the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) 
is amended— 
(1) by striking ‘‘2,275,000 acres’’ and inserting 
‘‘5,000,000 acres’’; and 
(2) by striking ‘‘250,000 acres’’ and inserting 
‘‘320,000 acres’’. 
(b) RIPARIAN AREAS.—Section 1237(d) of such Act 
(16 U.S.C. 3837(d)) is amended by striking paragraph (3) 
and inserting the following new paragraph: 
‘‘(3) riparian areas.’’. 
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(c) WETLAND EASEMENT CONSERVATION PLAN.— 
Section 1237A(b)(3) of such Act (16 U.S.C. 3837a(b)(3)) 
is amended by inserting before the semicolon at the end 
the following: ‘‘, including activities necessary to maintain 
hydrologic, habitat, and other functional values’’. 
(d) COST-SHARE AND MANAGEMENT ASSISTANCE.— 
Section 1237C of such Act (16 U.S.C. 3837c) is amend-
ed— 
(1) in subsection (a)(1), by inserting ‘‘including 
necessary hydrologic and habitat maintenance activi-
ties,’’ after ‘‘values,’’; and 
(2) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(4) MANAGEMENT
COSTS.—The Secretary 
may make payments to owners to cover up to the 
full actual cost of undertaking any ongoing or peri-
odic management activities necessary to maintain 
the hydrologic, habitat, and other functional values 
of wetland enrolled in the wetlands reserve pro-
gram.’’. 
(e) EASEMENT
PRIORITY
AND
STATE
ALLOCA-
TION.—Section 1237C of such Act (16 U.S.C. 3837c) is 
amended— 
(1) in subsection (d), by striking ‘‘wildlife.’’ and 
inserting ‘‘wildlife, particularly rare, threatened, en-
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dangered, or candidate species for furthering the 
goals and objectives of the State comprehensive wild-
life conservation strategy, or improving water qual-
ity.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(e) ALLOCATION TO STATES.—In making alloca-
tions to States to carry out this subchapter, the Secretary 
shall consider to what degree each State gives priority— 
‘‘(1) to protecting and restoring habitat for mi-
gratory birds and other wildlife, particularly rare 
species, including threatened, endangered, and can-
didate species; 
‘‘(2) to furthering the goals and objectives of 
the State comprehensive wildlife conservation strat-
egy; and 
‘‘(3) to improving water quality.’’. 
(f) CONFORMING AMENDMENT.—Section 1237(c) of 
such Act (16 U.S.C. 3837(c)) is amended by striking 
‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 204. FUNDING FOR FARMLAND PROTECTION PRO-
GRAM. 
Paragraph (4) of subsection (a) of section 1241 of 
the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended to read as follows: 
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‘‘(4) The farmland protection program under 
subchapter B of chapter 2, using $300,000,000 in 
each of fiscal years 2008 through 2012.’’. 
SEC. 205. GRASSLAND RESERVE PROGRAM. 
(a) EXTENSION AND FUNDING.—Paragraph (5) of 
section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended to read as follows: 
‘‘(5) The grassland reserve program under sub-
chapter C of chapter 2.’’. 
(b) ANNUAL ENROLLMENT LEVELS AND PRIORITY 
FOR LONG-TERM CONTRACTS.—Subsection (b) of section 
1238N of such Act (16 U.S.C. 3838n) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) ANNUAL ENROLLMENT LEVELS.—To the 
maximum extent practicable, the Secretary shall en-
roll in the grassland reserve program— 
‘‘(A) 1,000,000 acres in calendar year 
2008; 
‘‘(B) 1,500,000 acres in calendar year 
2009; 
‘‘(C) 2,000,000 acres in calendar year 
2010; 
‘‘(D) 2,500,000 acres in calendar year 
2011; and 
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‘‘(E) 3,000,000 acres in calendar year 
2012 and each calendar year thereafter.’’; and 
(2) by striking paragraph (3) and inserting the 
following new paragraph: 
‘‘(3) PRIORITY FOR LONG-TERM AGREEMENTS 
AND EASEMENTS.—Of the total number of acres en-
rolled in the program at any one time through the 
methods described in paragraph (2)(A), the Sec-
retary shall ensure that at least 60 percent of the 
acres were enrolled through the use of 30-year rental 
agreements and permanent and long-term easements 
described in clause (ii) of such paragraph.’’. 
(c) ENROLLMENT OF CONSERVATION RESERVE PRO-
GRAM LAND.—Section 1238N of such Act (16 U.S.C. 
3838n) is amended by adding at the end the following new 
subsection: 
‘‘(d) ENROLLMENT
OF CONSERVATION RESERVE 
PROGRAM LAND.— 
‘‘(1) ENROLLMENT
AUTHORIZED.—Subject to 
the eligibility requirements of subsection (c) and all 
other requirements of this subchapter, land enrolled 
in the conservation reserve program may be enrolled 
in the grassland reserve program if the Secretary de-
termines that the land is of high ecological value and 
under significant threat of conversion to other uses. 
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‘‘(2) MAXIMUM ENROLLMENT.—The number of 
acres of conservation reserve program land enrolled 
under this subsection in a calendar year shall not ex-
ceed 10 percent of the total number of acres enrolled 
in the grassland reserve program in that calendar 
year. 
‘‘(3) PROHIBITION ON DUPLICATION OF PAY-
MENTS.—Land enrolled in the program under this 
subsection shall no longer be eligible for payments 
under the conservation reserve program.’’. 
(d) BIODIVERSITY
AND
ALLOCATIONS.—Section 
1238O of such Act (16 U.S.C. 3838o) is amended— 
(1) redesignating subsection (d) as subsection 
(f); and 
(2) by inserting after subsection (c) the fol-
lowing new subsections: 
‘‘(d) BIODIVERSITY.—In emphasizing support for 
biodiversity consistent with the requirements of subsection 
(c), the Secretary shall give priority to agreements and 
easements that protect and restore habitat for rare, 
threatened, endangered, and candidate species. 
‘‘(e) ALLOCATIONS.—In making allocations to States 
to carry out this subchapter, the Secretary shall con-
sider— 
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‘‘(1) to what extent the State evaluates and 
ranks applications for easements and agreements 
consistent with the requirements of subsection (c); 
‘‘(2) the total number of acres of grassland in 
the State that are under threat of conversion to 
other uses, including conversion to more intensive 
agricultural use as well as conversion to non-
agricultural use; 
‘‘(3) the total number of acres of grassland in 
the State that provide important habitat for feder-
ally listed threatened or endangered species and 
other wildlife species of concern; 
‘‘(4) to what extent the State implements the 
program to ensure that, to the maximum extent 
practicable, the program results in the conservation 
of large tracts of contiguous grasslands; and 
‘‘(5) to what extent the State prioritizes enroll-
ment of grasslands that are adjacent to other land 
under permanent protection, such as State or Fed-
eral land or land covered by a conservation ease-
ment.’’. 
(e) USE
OF PRIVATE ORGANIZATIONS
OR STATE 
AGENCIES.—Section 1238Q of such Act (16 U.S.C. 
3838q) is amended— 
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(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) AUTHORITY TO USE PRIVATE ORGANIZATIONS 
OR STATES.—The Secretary may permit a private con-
servation or land trust organization (referred to in this 
section as a ‘private organization’) or a State agency to 
own, write, and enforce an easement under this sub-
chapter, in lieu of the Secretary, subject to the right of 
the Secretary to conduct periodic inspections and enforce 
the easement, if— 
‘‘(1) the Secretary determines that granting the 
permission will promote protection of grassland, land 
that contains forbs, and shrubland; 
‘‘(2) the owner authorizes the private organiza-
tion or State agency to hold and enforce the ease-
ment; and 
‘‘(3) the private organization or State agency 
agrees to assume the costs incurred in administering 
and enforcing the easement, including the costs of 
restoration or rehabilitation of the land as specified 
by the owner and the private organization or State 
agency.’’; 
(2) in subsection (b), by striking ‘‘hold’’ and in-
serting ‘‘own, write,’’; 
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(3) in subsection (c), by striking ‘‘hold’’ and in-
serting ‘‘own, write,’’; and 
(4) by striking subsection (d) and inserting the 
following new subsections: 
‘‘(d) PROHIBITIONS
ON
LIMITATIONS.—Notwith-
standing any provision of State law to the contrary, a con-
servation easement held by the United States, held by a 
private organization under this section, or held by its suc-
cessors or assigns under this section shall not be limited 
in duration or scope or be defeasible by— 
‘‘(1) the conservation easement being in gross 
or appurtenant; 
‘‘(2) the management of the conservation ease-
ment having been delegated or assigned to a non- 
Federal entity; or 
‘‘(3) any requirement under State law for re- 
recordation or renewal of the easement. 
‘‘(e) RULE
OF CONSTRUCTION.—Notwithstanding 
any provision of State law to the contrary, a conservation 
easement shall be construed to effectuate the Federal pur-
poses for which the conservation easement was acquired 
and, in interpreting the terms of the conservation ease-
ment, there shall be no presumption favoring the conserva-
tion easement holder or fee owner. 
‘‘(f) REASSIGNMENT.— 
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‘‘(1) REASSIGNMENT REQUIRED.—If a private 
organization holding an easement on land under this 
subchapter terminates, the owner of the land subject 
to the easement shall reassign, not later than 30 
days after termination of the private organization, 
the easement— 
‘‘(A) to another private organization ap-
proved by the Secretary; or 
‘‘(B) to the Secretary. 
‘‘(2) NOTIFICATION
OF
SECRETARY.—If an 
easement is reassigned to another private organiza-
tion under paragraph (1), the owner and the new or-
ganization shall notify the Secretary in writing, not 
later than 60 days after the date of reassignment, 
that the reassignment has been made. If the notifi-
cation is not provided, the easement shall revert to 
the control of the Secretary.’’. 
(f) SPECIAL GRASSLANDS RESERVE ENHANCEMENT 
PROGRAM.—Subchapter C of chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 is amended 
by inserting after section 1238Q (16 U.S.C. 3838q) the 
following new section: 
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‘‘SEC. 1238R. GRASSLANDS RESERVE ENHANCEMENT PRO-
GRAM. 
‘‘The Secretary may enter into such agreements for 
payments to States, including political subdivisions and 
agencies of States, that the Secretary determines will ad-
vance the purposes of the grassland reserve program. Sec-
tion 1305(d) of the Agricultural Reconciliation Act of 
1987 (Public Law 100–203; 7 U.S.C. 1308 note) does not 
apply to payments received by a State or political subdivi-
sion or agency thereof in connection with such an agree-
ment.’’. 
SEC. 206. WILDLIFE HABITAT INCENTIVE PROGRAM. 
(a) EXTENSION AND FUNDING.—Section 1241(a)(7) 
of the Food Security Act of 1985 (16 U.S.C. 3841(a)(7)) 
is amended by striking subparagraphs (A) through (D) 
and inserting the following new subparagraphs: 
‘‘(A) $100,000,000 in fiscal year 2008; 
‘‘(B) $140,000,000 in fiscal year 2009; 
‘‘(C) $200,000,000 in each of fiscal years 
2010 and 2011; and 
‘‘(D) $300,000,000 in fiscal year 2012.’’. 
(b) LONG-TERM AGREEMENTS AND CONTRACTS.— 
Subsection (b)(2) of section 1240N of such Act (16 U.S.C. 
3839bb–1) is amended— 
(1) in subparagraph (A), by striking ‘‘in addi-
tion to amounts provided under paragraph (1)’’ and 
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inserting ‘‘in an amount up to 100 percent of the ac-
tual cost of any practice required by the agreement 
or contract’’; and 
(2) in subparagraph (B), by striking ‘‘not more 
than 15 percent’’ and inserting ‘‘25 percent’’. 
(c) INCENTIVE PAYMENTS
AND PROGRAM PRIOR-
ITIES.—Section 1240N of such Act (16 U.S.C. 3839bb– 
1) is amended by adding at the end the following new sub-
sections: 
‘‘(d) INCENTIVE PAYMENTS FOR AGREEMENTS BEN-
EFITTING LISTED SPECIES.—In a case in which the Sec-
retary enters into an agreement or contract to protect and 
restore habitat for a federally or State-listed endangered, 
threatened, or candidate species, the Secretary may pro-
vide incentive payments to landowners to protect and re-
store the habitat, including the cost of management activi-
ties needed during the term of the agreement or contract. 
‘‘(e) PRIORITIES.—In carrying out this section, the 
Secretary shall give priority to agreements and contracts 
that— 
‘‘(1) protect and restore habitat for rare, 
threatened, endangered, and candidate species; or 
‘‘(2) further the goals and objectives of the 
State comprehensive wildlife conservation strategy. 
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‘‘(f) ALLOCATIONS.—In making allocations to States 
to carry out this chapter, the Secretary shall consider to 
what degree each State— 
‘‘(1) gives priority to the protection and res-
toration of habitat for rare, threatened, endangered, 
and candidate species and for furtherance of the 
State comprehensive wildlife conservation strategy 
under subsection (e); and 
‘‘(2) complies with the wildlife action plan for 
the State under subsection (f). 
‘‘(g) COOPERATIVE AGREEMENTS.—To the max-
imum extent practicable, the Secretary shall enter into co-
operative agreements with State wildlife and natural re-
sources agencies to implement this section, including deliv-
ery of technical assistance.’’. 
SEC. 207. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
(a) EXTENSION.— 
(1) FUNDING
EXTENSION
AND
INCREASE.— 
Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended by striking para-
graph (6) and inserting the following new para-
graph: 
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‘‘(6) The environmental quality incentives pro-
gram under chapter 4, using, to the maximum ex-
tent practicable— 
‘‘(A) $1,400,000,000 in fiscal year 2008; 
‘‘(B) $1,600,000,000 in fiscal year 2009; 
‘‘(C) $1,800,000,000 in each of fiscal 
years 2010 and 2011; and 
‘‘(D) $2,000,000,000 in fiscal year 2012.’’. 
(2) CONFORMING AMENDMENTS.—Chapter 4 of 
subtitle D of title XII of such Act is amended— 
(A) in section 1240B(a)(1) (16 U.S.C. 
3839aa–2(a)(1)), by striking ‘‘2007’’ and in-
serting ‘‘2012’’; and 
(B) in subsection 1240G (16 U.S.C. 
3839aa–7), by striking ‘‘2007’’ and inserting 
‘‘2012’’. 
(b) DEMONSTRATION OF STRUCTURAL AND LAND 
MANAGEMENT PRACTICES.— 
(1) ELIGIBILITY.—Section 1240B(a)(2) of the 
Food Security Act of 1985 (16 U.S.C. 3839aa– 
(a)(2)) is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(B) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; and 
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(C) by adding at the end the following new 
subparagraph: 
‘‘(C) a producer that demonstrates a struc-
tural or land management practice, including 
project monitoring, measurement, outreach, or 
education shall be eligible to receive cost-share 
or incentive payments.’’. 
(2) CONFORMING AMENDMENTS.—(A) Section 
1240(3) of such Act (16 U.S.C. 3839aa(3)) is 
amended by striking ‘‘and maintain’’ and inserting 
‘‘, maintain, and demonstrate’’. 
(B) Section 1240F(1) of such Act (16 U.S.C. 
3839aa–6(1)) is amended by striking ‘‘and imple-
menting’’ and inserting ‘‘, implementing, or dem-
onstrating’’. 
(c) PREDATOR DETERRENCE.—Section 1240B(a) of 
the Food Security Act of 1985 (16 U.S.C. 3839aa–(a)) 
is amended by adding at the end the following paragraph: 
‘‘(3) PREDATOR
DETERRENCE.—A producer 
that implements practices or other measures as part 
of a system of proactive predator deterrence for 
large carnivores, including the use of range riders, 
removal of carcasses, and installation of electric 
fencing around calving areas, shall be eligible to re-
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ceive cost-share or incentive payments under this 
chapter.’’. 
(d) BIDDING DOWN.—Section 1240B(c) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa–2(c)) is amended 
by inserting before the period at the end the following: 
‘‘, except that this prohibition does not relieve the Sec-
retary of the obligation to ensure that cost-effectiveness 
is prioritized in the evaluation of offers and payments, as 
provided by section 1240C(1)’’. 
(e) INCENTIVE PAYMENT RATES.—Section 1240B(e) 
of the Food Security Act of 1985 (16 U.S.C. 3839aa– 
2(e)(2)) is amended— 
(1) in paragraph (1), by adding at the end the 
following new sentence: ‘‘The Secretary shall estab-
lish different rates to accommodate variation in the 
cost of practices and product value.’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) RATES FOR COMPONENT PRACTICES.—The 
Secretary shall develop additional incentive payment 
rates for components of a practice that promotes 
residue, nutrient, pest, invasive species, or air qual-
ity management. The amount and rate of incentive 
payments for a component practice shall be scaled 
according to the anticipated level of impact of that 
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practice on the priority resource concerns, such that 
more advanced management practices that yield 
greater environmental benefit will receive higher 
payments.’’. 
(f) ALLOCATION OF FUNDING.—Section 1240B(g) of 
the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) 
is amended by adding at the end the following new sen-
tence: ‘‘When making initial allocations of funds to States 
to make cost-share and incentive payments under this 
chapter, the Secretary shall consider to what degree pro-
ducers in each State are under pressure to comply with 
existing local, State, or Federal environmental regulations, 
or may have to comply with such regulations in the fu-
ture.’’. 
(g) EVALUATION
OF
APPLICATIONS
FOR
COST- 
SHARE PAYMENTS AND INCENTIVE PAYMENTS.—Section 
1240C of the Food Security Act of 1985 (16 U.S.C. 
3839aa–3) is amended to read as follows: 
‘‘SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST- 
SHARE 
PAYMENTS 
AND 
INCENTIVE 
PAY-
MENTS. 
‘‘(a) PRIORITIES AND CRITERIA.—In evaluating ap-
plications for cost-share payments and incentive pay-
ments, the Secretary shall— 
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‘‘(1) prioritize applications based on how effec-
tively and comprehensively designated resource con-
cerns are addressed; 
‘‘(2) prioritize applications based on their over-
all level of cost-effectiveness to ensure that the con-
servation practices, systems, and approaches pro-
posed are the most efficient means of producing the 
proposed project’s anticipated environmental bene-
fits; 
‘‘(3) reward higher levels of environmental per-
formance, such as advanced levels of management 
within management practices; and 
‘‘(4) develop criteria for evaluating applications 
that will ensure that national, State, and local con-
servation priorities are effectively addressed. 
‘‘(b) WILDLIFE.—In evaluating applications for cost- 
share payments and incentive payments related to projects 
intended primarily to improve wildlife habitat, the Sec-
retary, in addition to meeting the requirements of sub-
section (a), shall give priority to applications that protect 
and restore habitat for rare, threatened, endangered, and 
candidate species or further the goals and objectives of 
the State comprehensive wildlife conservation strategy.’’. 
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(h) SUPPORT FOR PROGRAM PLANS.—Section 1240F 
of the Food Security Act of 1985 (16 U.S.C. 3839aa–6) 
is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) developing partnerships with other agen-
cies and contracting with technical assistance pro-
viders to supplement Department expertise and 
staffing capacity as necessary.’’. 
(i) CONSERVATION INNOVATION GRANTS.—Section 
1240H of the Food Security Act of 1985 (16 U.S.C. 
3839aa–8) is amended— 
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’; 
(2) in subsection (b)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (A); and 
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(ii) by adding at the end the following 
new subparagraph: 
‘‘(C) alternative energy projects, such as 
solar and wind power energy systems and con-
version of equipment to run on bio-fuels, to re-
duce greenhouse gas emissions and reliance on 
fossil fuels in farm operations;’’. 
(C) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(4) include a plan for technology transfer.’’; 
(3) by adding at the end the following new sub-
sections: 
‘‘(d) TECHNOLOGY TRANSFER.—To the maximum 
extent practicable, the Secretary shall ensure efficient, ef-
fective transfer of innovative technologies and approaches 
demonstrated through projects that receive funding under 
this section. 
‘‘(e) FUNDING.—Of the amounts made available 
under section 1241(a)(6) to carry out this chapter, the 
Secretary shall use to carry out this section— 
‘‘(1) $40,000,000 for fiscal year 2008; 
‘‘(2) $50,000,000 for fiscal year 2009; 
‘‘(3) $60,000,000 for fiscal year 2010; and 
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‘‘(4) $75,000,000 for each of fiscal years 2011 
and 2012.’’. 
(j) FUNDING UNDER GROUND AND SURFACE WATER 
CONSERVATION PROGRAM.—Section 1240I of the Food 
Security Act of 1985 (16 U.S.C. 3839aa–9) is amended 
by striking subsection (c) and inserting the following new 
subsection: 
‘‘(b) 
FUNDING.—The 
Secretary 
shall 
use 
$100,000,000 of the funds of the Commodity Credit Cor-
poration to carry out this section for each of fiscal years 
2008 through 2012. These funds are in addition to 
amounts made available under section 1241(a)(6) to carry 
out this chapter.’’. 
(k) AIR QUALITY IMPROVEMENT AND PERFORMANCE 
INCENTIVES FOR STATES.—Chapter 4 of subtitle D of 
title XII of such Act is amended by adding at the end 
the following new sections: 
‘‘SEC. 1240J. AIR QUALITY IMPROVEMENT. 
‘‘(a) AVAILABILITY OF COST-SHARE PAYMENTS AND 
INCENTIVE PAYMENTS.—In carrying out this chapter, the 
Secretary shall promote air quality by providing cost-share 
payments and incentive payments to individual producers 
to address air quality concerns associated with agriculture. 
‘‘(b) ELIGIBLE PRACTICES, COST-SHARE.— 
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‘‘(1) REDUCTION OF EMISSIONS OF CRITERIA 
POLLUTANTS AND AIRBORNE TOXINS.—In addition 
to practices eligible for cost-share payments under 
this chapter, the Secretary shall provide cost-share 
payments to producers under this section for mobile 
or stationary equipment, including engines, used in 
an agricultural operation that will reduce emissions 
of criteria pollutants and airborne toxins. 
‘‘(2) CONSIDERATIONS.—In evaluating applica-
tions for cost-share assistance for equipment de-
scribed in paragraph (1), the Secretary shall 
prioritize assistance for equipment that— 
‘‘(A) is the most cost-effective in address-
ing air quality concerns; and 
‘‘(B) will assist producers in meeting State 
or local regulatory requirements related to air 
quality. 
‘‘(c) LOCATIONS.—In order for producers to receive 
payments under this section, a project must be located in 
a county— 
‘‘(1) that is in non-attainment for ambient air 
quality standards for ozone, particulate matter, or 
both; 
‘‘(2) in which there is air quality degradation, 
recognized by a State or local regulating agency, to 
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which agricultural emissions significantly contribute; 
or 
‘‘(3) in which the Secretary determines that 
pesticide drift is a priority concern. 
‘‘(d) PRIORITY.—The Secretary shall give priority to 
projects that— 
‘‘(1) involve multiple producers implementing 
eligible conservation activities in a coordinated way 
to promote air quality; or 
‘‘(2) are designed to encourage broad adoption 
of innovative approaches, including approaches in-
volving the use of innovative technologies and inte-
grated pest management, so long as the technologies 
do not have the unintended consequence of compro-
mising other environmental goals. 
‘‘(e) FUNDING.— 
‘‘(1) AMOUNTS.—The Secretary shall use funds 
of the Commodity Credit Corporation to carry out 
this section in the following amounts: 
‘‘(A) $25,000,000 for fiscal year 2008; 
‘‘(B) $45,000,000 for fiscal year 2009; 
‘‘(C) $60,000,000 for fiscal year 2010; 
‘‘(D) $75,000,000 for fiscal year 2011; 
and 
‘‘(E) $100,000,000 for fiscal year 2012. 
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‘‘(2) RELATION TO OTHER FUNDS.—The funds 
made available under paragraph (1) are in addition 
to amounts made available under section 1241(a)(6) 
to carry out this chapter. 
‘‘SEC. 1240K. PERFORMANCE INCENTIVES FOR STATES. 
‘‘(a) HIGH LEVEL OF PERFORMANCE BONUS.—For 
each of fiscal years 2008 through 2012, 20 percent of the 
funds made available under this chapter shall be reserved 
by the Secretary for bonus allocations to States that dem-
onstrate a high level of performance in implementing the 
environmental quality incentives program. 
‘‘(b) SPECIAL
CONSIDERATIONS.—In evaluating 
State performance under subsection (a), the Secretary 
shall reward States that— 
‘‘(1) consistently meet the requirements of sec-
tion 1240C in evaluating offers and payments; 
‘‘(2) dedicate a portion of their annual environ-
mental quality incentives program allocation to 
multi-producer cooperative efforts to address specific 
resource concerns; 
‘‘(3) demonstrate effective and efficient pro-
gram delivery, including the provision of adequate 
technical assistance to all program participants 
through appropriate staffing and through coopera-
tion with other Federal, State, Tribal, and local 
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agencies, for-profit and nonprofit organizations, and 
individuals with demonstrated expertise in the plan-
ning and implementation of conservation practices, 
systems, and approaches; 
‘‘(4) collaborate with other Federal and State 
agencies, local governments, educational institutions, 
and for-profit and nonprofit organizations to evalu-
ate the environmental outcomes associated with im-
plementation of the environmental quality incentives 
program; 
‘‘(5) ensure broad participation in State Tech-
nical Committees; and 
‘‘(6) ensure that priorities established at the 
State level are effectively addressed by local work 
groups.’’. 
SEC. 208. COOPERATIVE CONSERVATION PARTNERSHIP 
INITIATIVE. 
(a) ESTABLISHMENT OF GRANT PROGRAM.—Subtitle 
D of title XII of the Food Security Act of 1985 is amend-
ed by adding at the end the following new chapter: 
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‘‘CHAPTER 6—COOPERATIVE CONSERVA-
TION PARTNERSHIP INITIATIVE 
‘‘SEC. 1240W. COOPERATIVE CONSERVATION PARTNERSHIP 
INITIATIVE. 
‘‘(a) GRANTS
AND AGREEMENTS.—The Secretary 
shall make grants and enter into agreements for not short-
er than two-year or longer than five-year terms with eligi-
ble entities specified in subsection (c) to preferentially en-
roll producers in one or more of the programs specified 
in subsection (b) to carry out special projects and initia-
tives through which multiple producers and other inter-
ested persons cooperate to address specific resources of 
concern related to agricultural production on a local, 
State, or regional scale. 
‘‘(b) COVERED PROGRAMS.—The conservation pro-
grams referred to in subsection (a) are the following: 
‘‘(1) Conservation reserve program, but only 
the continuous signup portion of the program. 
‘‘(2) Conservation reserve enhancement pro-
gram. 
‘‘(3) Environmental quality incentives program. 
‘‘(4) Farmland protection program. 
‘‘(5) Grassland reserve program. 
‘‘(6) Ground and surface water conservation 
program. 
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