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 
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 
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‘‘(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. 
‘‘(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-
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100 
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 
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-
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101 
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. 506. REAUTHORIZATION OF AND INCREASED FUNDING 
FOR WILDLIFE HABITAT INCENTIVE PRO-
GRAM. 
(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) $85,000,000 in fiscal year 2007; 
‘‘(B) $100,000,000 in fiscal year 2008; 
‘‘(C) $140,000,000 in fiscal year 2009; 
‘‘(D) $200,000,000 in each of fiscal years 
2010 and 2011; and 
‘‘(E) $300,000,000 in each of fiscal years 
2012 and 2013.’’. 
(b) FUNDING SET-ASIDE FOR LONG-TERM AGREE-
MENTS.—Section 1240N(b)(2) of such Act (16 U.S.C. 
3839bb–1(b)(2)) is amended by striking subparagraph 
(B) and inserting the following: 
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102 
‘‘(B) FUNDS
FOR
LONG-TERM
AGREE-
MENTS.—To the maximum extent practicable, 
the Secretary shall use 25 percent of the funds 
made available under section 1241(a)(7) for a 
fiscal year to carry out during that fiscal year 
contracts and agreements described in subpara-
graph (A).’’. 
(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-
section: 
‘‘(d) INCENTIVE PAYMENTS AND PROGRAM PRIOR-
ITIES.— 
‘‘(1) PRIORITIES.—In carrying out this section, 
the Secretary shall give priority to agreements and 
contracts that will— 
‘‘(A) protect or restore habitat for a feder-
ally or State-listed rare, threatened, endan-
gered, and candidate species; or 
‘‘(B) further the goals and objectives of a 
State’s 
comprehensive 
wildlife 
conservation 
strategy. 
‘‘(2) INCENTIVE
PAYMENTS
FOR
CERTAIN 
AGREEMENTS
AND
APPLICATIONS.—In a case in 
which the Secretary enters into an agreement or 
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