in the applications and to prioritize the most cost-effective 
applications, as required by section 1240C(1).’’. 
(d) EVALUATION
OF
APPLICATIONS
FOR
COST- 
SHARE PAYMENTS AND INCENTIVE PAYMENTS.—Section 
1240C of such Act (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. 
‘‘In evaluating applications for cost-share payments 
and incentive payments, the Secretary shall— 
‘‘(1) 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 achieving the 
anticipated environmental benefits of the project; 
‘‘(2) prioritize applications based on how effec-
tively and comprehensively the project addresses the 
designated resource concern or resource concerns; 
‘‘(3) reward higher levels of environmental per-
formance, such as advanced levels of management 
within land management practices; 
‘‘(4) develop criteria for evaluating applications 
that will ensure that national, State, and local con-
servation priorities are effectively addressed; and 
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‘‘(5) prioritize applications that will improve en-
vironmental performance on existing operations.’’. 
(e) CONSERVATION INNOVATION GRANTS.—Section 
1240H of such Act (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) by striking ‘‘and’’ at the end of para-
graph (2); 
(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.’’; 
and 
(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. 
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‘‘(e) FUNDING.—In addition to amounts made avail-
able under section 1241(a)(6) to carry out this chapter, 
the Secretary shall use funds of the Commodity Credit 
Corporation to carry out this section in the following 
amounts: 
‘‘(1) 40,000,000 for fiscal year 2008. 
‘‘(2) 50,000,000 for fiscal year 2009. 
‘‘(3) 60,000,000 for fiscal year 2010. 
‘‘(4) 75,000,000 for each of fiscal years 2011 
through 2013.’’. 
(f) FUNDING UNDER GROUND AND SURFACE WATER 
CONSERVATION PROGRAM.—Subsection (c) section 1240I 
of such Act (16 U.S.C. 3839aa–9) is amended to read as 
follows: 
‘‘(c) 
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 2013. These funds are in addition to 
amounts made available under section 1241(a)(6) to carry 
out this chapter.’’. 
(g) FOREST CONSERVATION AND PERFORMANCE IN-
CENTIVES FOR STATES.—Chapter 4 of subtitle D of title 
XII of such Act is amended by adding at the end the fol-
lowing new sections: 
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‘‘SEC. 1240J. PROMOTION OF FOREST STEWARDSHIP PRAC-
TICES. 
‘‘(a) COST-SHARE PAYMENTS AND INCENTIVE PAY-
MENTS.—In carrying out the program under this chapter, 
the Secretary shall promote forest stewardship by pro-
viding cost-share payments and incentive payments to 
non-industrial private forest owners to carry out eligible 
conservation activities, to— 
‘‘(1) improve water quality; 
‘‘(2) improve habitat for at-risk species; 
‘‘(3) restore ecologically important forest types; 
or 
‘‘(4) control invasive species. 
‘‘(b) PRIORITY.—The Secretary shall give priority to 
projects that involve multiple landowners implementing el-
igible conservation activities in a coordinated way to ad-
dress the purposes described in subsection (a). 
‘‘(c) 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 million for each of fiscal 
years 2011 and 2012; and 
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‘‘(E) $100 million for fiscal year 2013. 
‘‘(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 2013, 10 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) collaborate with other Federal and State 
agencies, local governments, educational institutions, 
and for-profit and nonprofit organizations to mon-
itor and evaluate the environmental outcomes associ-
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