717 
(2) by adding at the end the following: 
‘‘(b) HIGHLY FRACTIONATED LAND.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary of Agriculture may make and insure 
loans in accordance with section 309 of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1929) to eligible purchasers of highly fractionated 
land pursuant to section 205(c) of the Indian Land 
Consolidation Act (25 U.S.C. 2204(c)). 
‘‘(2) EXCLUSION.—Section 4 shall not apply to 
trust land, restricted tribal land, or tribal corpora-
tion land that is mortgaged in accordance with para-
graph (1).’’. 
TITLE VI—RURAL 
DEVELOPMENT 
Subtitle A—Consolidated Farm and 
Rural Development Act 
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER 
FACILITY GRANTS. 
Section 306(a)(2)(B)(vii) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) 
is amended by striking ‘‘2002 through 2007’’ and insert-
ing ‘‘2008 through 2012’’. 
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SEC. 6002. SEARCH GRANTS. 
(a) IN GENERAL.—Section 306(a)(2) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1926(a)(2)) is amended by adding at the end the fol-
lowing: 
‘‘(C) SPECIAL
EVALUATION
ASSISTANCE 
FOR
RURAL
COMMUNITIES
AND
HOUSEHOLDS 
PROGRAM.— 
‘‘(i) IN
GENERAL.—The Secretary 
may establish the Special Evaluation As-
sistance 
for 
Rural 
Communities 
and 
Households (SEARCH) program, to make 
predevelopment planning grants for feasi-
bility studies, design assistance, and tech-
nical assistance, to financially distressed 
communities in rural areas with popu-
lations of 2,500 or fewer inhabitants for 
water and waste disposal projects described 
in paragraph (1), this paragraph, and 
paragraph (24). 
‘‘(ii) TERMS.— 
‘‘(I) DOCUMENTATION.—With re-
spect to grants made under this sub-
paragraph, the Secretary shall require 
the lowest amount of documentation 
practicable. 
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‘‘(II) 
MATCHING.—Notwith-
standing any other provisions in this 
subsection, the Secretary may fund up 
to 100 percent of the eligible costs of 
grants provided under this subpara-
graph, as determined by the Sec-
retary. 
‘‘(iii) FUNDING.—The Secretary may 
use not more than 4 percent of the total 
amount of funds made available for a fiscal 
year for water, waste disposal, and essen-
tial community facility activities under this 
title to carry out this subparagraph. 
‘‘(iv) RELATIONSHIP
TO
OTHER
AU-
THORITY.—The funds and authorities pro-
vided under this subparagraph are in addi-
tion to any other funds or authorities the 
Secretary may have to carry out activities 
described in clause (i).’’. 
(b) CONFORMING AMENDMENT.—Subtitle D of title 
VI of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 2009ee et seq.) is repealed. 
SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS. 
Section 306(a)(11)(D) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is 
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amended by striking ‘‘1996 through 2007’’ and inserting 
‘‘2008 through 2012’’. 
SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND 
LOAN GUARANTEES. 
Section 306(a)(19)(C)(ii) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) 
is amended by striking ‘‘April’’ and inserting ‘‘June’’. 
SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE 
BROADBAND. 
Section 306(a)(20)(E) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(20)(E)) is 
amended— 
(1) by striking ‘‘state’’ and inserting ‘‘State’’; 
and 
(2) by striking ‘‘dial-up Internet access or’’. 
SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT 
RIDER PROGRAM. 
Section 306(a)(22)(C) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(22)(C)) is 
amended by striking ‘‘$15,000,000 for fiscal year 2003’’ 
and inserting ‘‘$25,000,000 for fiscal year 2008’’. 
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SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL 
COMMUNITY FACILITIES. 
Section 306(a)(25) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(25)) is amend-
ed— 
(1) in subparagraph (A)— 
(A) by striking ‘‘tribal colleges and univer-
sities’’ and inserting ‘‘an entity that is a Tribal 
College or University’’; and 
(B) by striking ‘‘tribal college or univer-
sity’’ and inserting ‘‘Tribal College or Univer-
sity’’; 
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) FEDERAL
SHARE.—The Secretary 
shall establish the maximum percentage of the 
cost of the facility that may be covered by a 
grant under this paragraph, except that the 
Secretary may not require non-Federal financial 
support in an amount that is greater than 5 
percent of the total cost of the facility.’’; and 
(3) in subparagraph (C), by striking ‘‘2003 
through 2007’’ and inserting ‘‘2008 through 2012’’. 
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SEC. 
6008. 
EMERGENCY 
AND 
IMMINENT 
COMMUNITY 
WATER ASSISTANCE GRANT PROGRAM. 
Section 306A(i)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended 
by striking ‘‘2003 through 2007’’ and inserting ‘‘2008 
through 2012’’. 
SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VIL-
LAGES IN ALASKA. 
(a) IN GENERAL.—Section 306D(d)(1) of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1926d(d)(1)) is amended by striking ‘‘2001 through 
2007’’ and inserting ‘‘2008 through 2012’’. 
(b) RURAL
COMMUNITIES
ASSISTANCE.—Section 
4009 of the Solid Waste Disposal Act (42 U.S.C. 6949) 
is amended by adding at the end the following: 
‘‘(e) ADDITIONAL APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this section for the Denali 
Commission to provide assistance to municipalities 
in the State of Alaska $1,500,000 for each of fiscal 
years 2008 through 2012. 
‘‘(2) ADMINISTRATION.—For the purpose of 
carrying out this subsection, the Denali Commission 
shall— 
‘‘(A) be considered a State; and 
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‘‘(B) comply with all other requirements 
and limitations of this section.’’. 
SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FI-
NANCE THE CONSTRUCTION, REFURBISHING, 
AND SERVICING OF INDIVIDUALLY-OWNED 
HOUSEHOLD 
WATER 
WELL 
SYSTEMS 
IN 
RURAL AREAS FOR INDIVIDUALS WITH LOW 
OR MODERATE INCOMES. 
Section 306E of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926e) is amended— 
(1) 
in 
subsection 
(b)(2)(C), 
by 
striking 
‘‘$8,000’’ and inserting ‘‘$11,000’’; and 
(2) in subsection (d), by striking ‘‘2003 through 
2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6011. INTEREST RATES FOR WATER AND WASTE DIS-
POSAL FACILITIES LOANS. 
Section 307(a)(3) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1927(a)(3)) is amended 
by adding at the end the following: 
‘‘(E) INTEREST RATES FOR WATER AND 
WASTE DISPOSAL FACILITIES LOANS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii) and notwithstanding 
subparagraph (A), in the case of a direct 
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loan for a water or waste disposal facil-
ity— 
‘‘(I) in the case of a loan that 
would be subject to the 5 percent in-
terest rate limitation under subpara-
graph (A), the Secretary shall estab-
lish the interest rate at a rate that is 
equal to 60 percent of the current 
market yield for outstanding munic-
ipal obligations with remaining peri-
ods to maturity comparable to the av-
erage maturity of the loan, adjusted 
to the nearest 1⁄8 of 1 percent; and 
‘‘(II) in the case of a loan that 
would be subject to the 7 percent limi-
tation under subparagraph (A), the 
Secretary shall establish the interest 
rate at a rate that is equal to 80 per-
cent of the current market yield for 
outstanding 
municipal 
obligations 
with remaining periods to maturity 
comparable to the average maturity of 
the loan, adjusted to the nearest 1⁄8 of 
1 percent. 
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‘‘(ii) EXCEPTION.—Clause (i) does not 
apply to a loan for a specific project that 
is the subject of a loan that has been ap-
proved, but not closed, as of the date of 
enactment of this subparagraph.’’. 
SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE. 
(a) IN GENERAL.—Section 310B of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1932) is 
amended— 
(1) by striking ‘‘SEC. 310B. (a)’’ and inserting 
the following: 
‘‘SEC. 310B. ASSISTANCE FOR RURAL ENTITIES. 
‘‘(a) LOANS TO PRIVATE BUSINESS ENTERPRISES.— 
‘‘(1) DEFINITIONS.—In this subsection:’’; 
(2) in subsection (a)— 
(A) by moving the second and fourth sen-
tences so as to appear as the second and first 
sentences, respectively; 
(B) in the sentence beginning ‘‘As used in 
this subsection, the’’ (as moved by subpara-
graph (A)), by striking ‘‘As used in this sub-
section, the’’ and inserting the following: 
‘‘(A) AQUACULTURE.—The’’; 
(C) in the sentence beginning ‘‘For the 
purposes of this subsection, the’’, by striking 
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‘‘For the purposes of this subsection, the’’ and 
inserting the following: 
‘‘(B) SOLAR ENERGY.—The’’; 
(D) in the sentence beginning ‘‘The Sec-
retary may also’’— 
(i) by striking ‘‘The Secretary may 
also’’ and inserting the following: 
‘‘(2) LOAN PURPOSES.—The Secretary may’’; 
(ii) by inserting ‘‘and private invest-
ment funds that invest primarily in cooper-
ative organizations’’ after ‘‘or nonprofit’’; 
(iii) by striking ‘‘of (1) improving’’ 
and inserting ‘‘of— 
‘‘(A) improving’’; 
(iv) by striking ‘‘control, (2) the’’ and 
inserting ‘‘control; 
‘‘(B) the’’; 
(v) by striking ‘‘areas, (3) reducing’’ 
and inserting ‘‘areas; 
‘‘(C) reducing’’; 
(vi) by striking ‘‘areas, and (4) to’’ 
and inserting ‘‘areas; and 
‘‘(D) to’’; 
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(E) in the sentence beginning ‘‘Such 
loans,’’, by striking ‘‘Such loans,’’ and inserting 
the following: 
‘‘(3) LOAN GUARANTEES.—Loans described in 
paragraph (2),’’; and 
(F) in the last sentence, by striking ‘‘No 
loan’’ and inserting the following: 
‘‘(4) MAXIMUM
AMOUNT
OF
PRINCIPAL.—No 
loan’’; and 
(3) in subsection (g)— 
(A) in paragraph (1), by inserting ‘‘, in-
cluding guarantees described in paragraph 
(3)(A)(ii)’’ before the period at the end; 
(B) in paragraph (3)(A)— 
(i) by striking ‘‘(A) IN GENERAL.— 
The Secretary’’ and inserting the following: 
‘‘(A) ELIGIBILITY.— 
‘‘(i) IN
GENERAL.—The Secretary’’; 
and 
(ii) by adding at the end the fol-
lowing: 
‘‘(ii) EQUITY.—The Secretary may 
guarantee a loan made for the purchase of 
preferred stock or similar equity issued by 
a cooperative organization or a fund that 
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invests primarily in cooperative organiza-
tions, if the guarantee significantly bene-
fits 1 or more entities eligible for assist-
ance for the purposes described in sub-
section (a)(1), as determined by the Sec-
retary.’’; and 
(C) in paragraph (8)(A)(ii), by striking ‘‘a 
project—’’ and all that follows through the end 
of subclause (II) and inserting ‘‘a project 
that— 
‘‘(I)(aa) is in a rural area; and 
‘‘(bb) provides for the value- 
added processing of agricultural com-
modities; or 
‘‘(II) significantly benefits 1 or 
more entities eligible for assistance for 
the purposes described in subsection 
(a)(1), as determined by the Sec-
retary.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 307(a)(6)(B) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 
1927(a)(6)(B)) is amended by striking clause (ii) 
and inserting the following: 
‘‘(ii) section 310B(a)(2)(A); and’’. 
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‘‘(6) GRANT PERIOD.— 
‘‘(A) IN GENERAL.—A grant awarded to a 
center that has received no prior funding under 
this subsection shall be made for a period of 1 
year. 
‘‘(B) MULTIYEAR
GRANTS.—If the Sec-
retary determines it to be in the best interest 
of the program, the Secretary shall award 
grants for a period of more than 1 year, but 
not more than 3 years, to a center that has suc-
cessfully met the parameters described in para-
graph (5), as determined by the Secretary.’’. 
(c) AUTHORITY TO EXTEND GRANT PERIOD.—Sec-
tion 310B(e) of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1932(e)) is amended— 
(1) by redesignating paragraphs (7), (8), and 
(9) as paragraphs (8), (9), and (12), respectively; 
and 
(2) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.— 
The Secretary may extend for 1 additional 12-month 
period the period in which a grantee may use a 
grant made under this subsection.’’. 
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(d) COOPERATIVE RESEARCH PROGRAM.—Section 
310B(e) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1932(e)) is amended by inserting after 
paragraph (9) (as redesignated by subsection (c)(1)) the 
following: 
‘‘(10) COOPERATIVE
RESEARCH
PROGRAM.— 
The Secretary shall enter into a cooperative research 
agreement with 1 or more qualified academic institu-
tions in each fiscal year to conduct research on the 
effects of all types of cooperatives on the national 
economy.’’. 
(e) ADDRESSING NEEDS
OF MINORITY COMMU-
NITIES.—Section 310B(e) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(e)) is amended by 
inserting after paragraph (10) (as added by subsection 
(d)) the following: 
‘‘(11) ADDRESSING NEEDS OF MINORITY COM-
MUNITIES.— 
‘‘(A) DEFINITION OF SOCIALLY DISADVAN-
TAGED GROUP.—In this paragraph, the term 
‘socially disadvantaged group’ has the meaning 
given the term in section 355(e). 
‘‘(B) RESERVATION OF FUNDS.— 
‘‘(i) 
IN
GENERAL.—If 
the 
total 
amount appropriated under paragraph 
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(12) for a fiscal year exceeds $7,500,000, 
the Secretary shall reserve an amount 
equal to 20 percent of the total amount ap-
propriated for grants for cooperative devel-
opment centers, individual cooperatives, or 
groups of cooperatives— 
‘‘(I) that serve socially disadvan-
taged groups; and 
‘‘(II) a majority of the boards of 
directors or governing boards of which 
are comprised of individuals who are 
members of socially disadvantaged 
groups. 
‘‘(ii) INSUFFICIENT APPLICATIONS.— 
To the extent there are insufficient appli-
cations to carry out clause (i), the Sec-
retary shall use the funds as otherwise au-
thorized by this subsection.’’. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—Para-
graph (12) of section 310B(e) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1932(e)) (as redes-
ignated by subsection (c)(1)) is amended by striking 
‘‘1996 through 2007’’ and inserting ‘‘2008 through 
2012’’. 
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SEC. 6014. GRANTS TO BROADCASTING SYSTEMS. 
Section 310B(f)(3) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(f)(3)) is amended 
by striking ‘‘2002 through 2007’’ and inserting ‘‘2008 
through 2012’’. 
SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICUL-
TURAL FOOD PRODUCTS. 
Section 310B(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(g)) is amended by add-
ing at the end the following: 
‘‘(9) LOCALLY OR REGIONALLY PRODUCED AG-
RICULTURAL FOOD PRODUCTS.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) LOCALLY OR REGIONALLY PRO-
DUCED AGRICULTURAL FOOD PRODUCT.— 
The term ‘locally or regionally produced 
agricultural food product’ means any agri-
cultural food product that is raised, pro-
duced, and distributed in— 
‘‘(I) the locality or region in 
which the final product is marketed, 
so that the total distance that the 
product is transported is less than 
400 miles from the origin of the prod-
uct; or 
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‘‘(II) the State in which the 
product is produced. 
‘‘(ii) UNDERSERVED
COMMUNITY.— 
The term ‘underserved community’ means 
a community (including an urban or rural 
community and an Indian tribal commu-
nity) that has, as determined by the Sec-
retary— 
‘‘(I) limited access to affordable, 
healthy foods, including fresh fruits 
and vegetables, in grocery retail stores 
or farmer-to-consumer direct markets; 
and 
‘‘(II) a high rate of hunger or 
food insecurity or a high poverty rate. 
‘‘(B) LOAN AND LOAN GUARANTEE PRO-
GRAM.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall make or guarantee loans to individ-
uals, cooperatives, cooperative organiza-
tions, businesses, and other entities to es-
tablish and facilitate enterprises that proc-
ess, distribute, aggregate, store, and mar-
ket locally or regionally produced agricul-
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tural food products to support community 
development and farm and ranch income. 
‘‘(ii) REQUIREMENT.—The recipient 
of a loan or loan guarantee under clause 
(i) shall include in an appropriate agree-
ment with retail and institutional facilities 
to which the recipient sells locally or re-
gionally produced agricultural food prod-
ucts a requirement to inform consumers of 
the retail or institutional facilities that the 
consumers are purchasing or consuming lo-
cally or regionally produced agricultural 
food products. 
‘‘(iii) PRIORITY.—In making or guar-
anteeing a loan under clause (i), the Sec-
retary shall give priority to projects that 
have components benefitting underserved 
communities. 
‘‘(iv) REPORTS.—Not later than 2 
years after the date of enactment of this 
paragraph and annually thereafter, 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 re-
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port that describes projects carried out 
using loans or loan guarantees made under 
clause (i), including— 
‘‘(I) the characteristics of the 
communities served; and 
‘‘(II) resulting benefits. 
‘‘(v) RESERVATION OF FUNDS.— 
‘‘(I) IN GENERAL.—For each of 
fiscal years 2008 through 2012, the 
Secretary shall reserve not less than 5 
percent of the funds made available to 
carry out this subsection to carry out 
this subparagraph. 
‘‘(II) AVAILABILITY OF FUNDS.— 
Funds reserved under subclause (I) 
for a fiscal year shall be reserved until 
April 1 of the fiscal year.’’. 
SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR 
RURAL AREAS. 
Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended by adding 
at the end the following: 
‘‘(i) APPROPRIATE TECHNOLOGY TRANSFER
FOR 
RURAL AREAS PROGRAM.— 
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‘‘(1) DEFINITION OF NATIONAL NONPROFIT AG-
RICULTURAL
ASSISTANCE
INSTITUTION.—In this 
subsection, the term ‘national nonprofit agricultural 
assistance institution’ means an organization that— 
‘‘(A) is described in section 501(c)(3) of 
the Internal Revenue Code of 1986 and exempt 
from taxation under 501(a) of that Code; 
‘‘(B) has staff and offices in multiple re-
gions of the United States; 
‘‘(C) has experience and expertise in oper-
ating national agriculture technical assistance 
programs; 
‘‘(D) expands markets for the agricultural 
commodities produced by producers through the 
use of practices that enhance the environment, 
natural resource base, and quality of life; and 
‘‘(E) improves the economic viability of ag-
ricultural operations. 
‘‘(2) ESTABLISHMENT.—The Secretary shall es-
tablish a national appropriate technology transfer 
for rural areas program to assist agricultural pro-
ducers that are seeking information to— 
‘‘(A) reduce input costs; 
‘‘(B) conserve energy resources; 
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‘‘(C) diversify operations through new en-
ergy crops and energy generation facilities; and 
‘‘(D) expand markets for agricultural com-
modities produced by the producers by using 
practices that enhance the environment, natural 
resource base, and quality of life. 
‘‘(3) IMPLEMENTATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out the program under this subsection by 
making a grant to, or offering to enter into a 
cooperative agreement with, a national non-
profit agricultural assistance institution. 
‘‘(B) GRANT AMOUNT.—A grant made, or 
cooperative agreement entered into, under sub-
paragraph (A) shall provide 100 percent of the 
cost of providing information described in para-
graph (2). 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this subsection $5,000,000 for each of fiscal years 
2008 through 2012.’’. 
SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 
Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) (as amended by section 
6016) is amended by adding at the end the following: 
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‘‘(j) 
RURAL
ECONOMIC
AREA
PARTNERSHIP 
ZONES.—Effective beginning on the date of enactment of 
this subsection through September 30, 2012, the Sec-
retary shall carry out those rural economic area partner-
ship zones administratively in effect on the date of enact-
ment of this subsection in accordance with the terms and 
conditions contained in the memorandums of agreement 
entered into by the Secretary for the rural economic area 
partnership zones, except as otherwise provided in this 
subsection.’’. 
SEC. 6018. DEFINITIONS. 
(a) RURAL AREA.—Section 343(a) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1991(a)) is amended by striking paragraph (13) and in-
serting the following: 
‘‘(13) RURAL AND RURAL AREA.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) through (G), the terms ‘rural’ and 
‘rural area’ mean any area other than— 
‘‘(i) a city or town that has a popu-
lation of greater than 50,000 inhabitants; 
and 
‘‘(ii) any urbanized area contiguous 
and adjacent to a city or town described in 
clause (i). 
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‘‘(B) 
WATER
AND
WASTE
DISPOSAL 
GRANTS
AND
DIRECT
AND
GUARANTEED 
LOANS.—For the purpose of water and waste 
disposal grants and direct and guaranteed loans 
provided under paragraphs (1), (2), and (24) of 
section 306(a), the terms ‘rural’ and ‘rural 
area’ mean a city, town, or unincorporated area 
that has a population of no more than 10,000 
inhabitants. 
‘‘(C) COMMUNITY
FACILITY
LOANS
AND 
GRANTS.—For the purpose of community facil-
ity direct and guaranteed loans and grants 
under paragraphs (1), (19), (20), (21), and 
(24) of section 306(a), the terms ‘rural’ and 
‘rural area’ mean any area other than a city, 
town, or unincorporated area that has a popu-
lation of greater than 20,000 inhabitants. 
‘‘(D) AREAS RURAL IN CHARACTER.— 
‘‘(i) 
APPLICATION.—This 
subpara-
graph applies to— 
‘‘(I) an urbanized area described 
in subparagraphs (A)(ii) and (F) 
that— 
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‘‘(aa) has 2 points on its 
boundary that are at least 40 
miles apart; and 
‘‘(bb) is not contiguous or 
adjacent to a city or town that 
has a population of greater than 
150,000 inhabitants or an urban-
ized area of such city or town; 
and 
‘‘(II) an area within an urbanized 
area 
described 
in 
subparagraphs 
(A)(ii) and (F) that is within 1⁄4-mile 
of a rural area described in subpara-
graph (A). 
‘‘(ii) 
DETERMINATION.—Notwith-
standing any other provision of this para-
graph, on the petition of a unit of local 
government in an area described in clause 
(i) or on the initiative of the Under Sec-
retary for Rural Development, the Under 
Secretary may determine that a part of an 
area described in clause (i) is a rural area 
for the purposes of this paragraph, if the 
Under Secretary finds that the part is 
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rural in character, as determined by the 
Under Secretary. 
‘‘(iii) ADMINISTRATION.—In carrying 
out this subparagraph, the Under Sec-
retary for Rural Development shall— 
‘‘(I) not delegate the authority to 
carry out this subparagraph; 
‘‘(II) consult with the applicable 
rural development State or regional 
director of the Department of Agri-
culture and the governor of the re-
spective State; 
‘‘(III) provide to the petitioner 
an opportunity to appeal to the Under 
Secretary a determination made under 
this subparagraph; 
‘‘(IV) release to the public notice 
of a petition filed or initiative of the 
Under Secretary under this subpara-
graph not later than 30 days after re-
ceipt of the petition or the commence-
ment of the initiative, as appropriate; 
‘‘(V) make a determination under 
this subparagraph not less than 15 
days, and not more than 60 days, 
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after the release of the notice under 
subclause (IV); 
‘‘(VI) submit to the Committee 
on Agriculture of the House of Rep-
resentatives and the Committee on 
Agriculture, Nutrition, and Forestry 
of the Senate an annual report on ac-
tions taken to carry out this subpara-
graph; and 
‘‘(VII) terminate a determination 
under this subparagraph that part of 
an area is a rural area on the date 
that data is available for the next de-
cennial census conducted under sec-
tion 141(a) of title 13, United States 
Code. 
‘‘(E) EXCLUSIONS.—Notwithstanding any 
other provision of this paragraph, in deter-
mining which census blocks in an urbanized 
area are not in a rural area (as defined in this 
paragraph), the Secretary shall exclude any 
cluster of census blocks that would otherwise be 
considered not in a rural area only because the 
cluster is adjacent to not more than 2 census 
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blocks that are otherwise considered not in a 
rural area under this paragraph. 
‘‘(F) URBAN AREA GROWTH.— 
‘‘(i) 
APPLICATION.—This 
subpara-
graph applies to— 
‘‘(I) any area that— 
‘‘(aa) is a collection of cen-
sus blocks that are contiguous to 
each other; 
‘‘(bb) has a housing density 
that the Secretary estimates is 
greater than 200 housing units 
per square mile; and 
‘‘(cc) is contiguous or adja-
cent to an existing boundary of a 
rural area; and 
‘‘(II) any urbanized area contig-
uous and adjacent to a city or town 
described in subparagraph (A)(i). 
‘‘(ii) ADJUSTMENTS.—The Secretary 
may, by regulation only, consider— 
‘‘(I) an area described in clause 
(i)(I) not to be a rural area for pur-
poses of subparagraphs (A) and (C); 
and 
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‘‘(II) an area described in clause 
(i)(II) not to be a rural area for pur-
poses of subparagraph (C). 
‘‘(iii) APPEALS.—A program applicant 
may appeal an estimate made under clause 
(i)(I) based on appropriate data for an 
area, as determined by the Secretary. 
‘‘(G) HAWAII
AND
PUERTO
RICO.—Not-
withstanding any other provision of this para-
graph, within the areas of the County of Hono-
lulu, Hawaii, and the Commonwealth of Puerto 
Rico, the Secretary may designate any part of 
the areas as a rural area if the Secretary deter-
mines that the part is not urban in character, 
other than any area included in the Honolulu 
Census Designated Place or the San Juan Cen-
sus Designated Place.’’. 
(b) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the Secretary shall prepare and 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that— 
(1) assesses the various definitions of the term 
‘‘rural’’ and ‘‘rural area’’ that are used with respect 
to programs administered by the Secretary; 
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(2) describes the effects that the variations in 
those definitions have on those programs; 
(3) make recommendations for ways to better 
target funds provided through rural development 
programs; and 
(4) determines the effect of the amendment 
made by subsection (a) on the level of rural develop-
ment funding and participation in those programs in 
each State. 
SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNER-
SHIP. 
Section 378 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2008m) is amended— 
(1) in subsection (g)(1), by striking ‘‘2003 
through 2007’’ and inserting ‘‘2008 through 2012’’; 
and 
(2) in subsection (h), by striking ‘‘the date that 
is 5 years after the date of enactment of this sec-
tion’’ and inserting ‘‘September 30, 2012’’. 
SEC. 6020. HISTORIC BARN PRESERVATION. 
(a) GRANT PRIORITY.—Section 379A(c) of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
2008o(c)) is amended— 
(1) in paragraph (2)— 
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(A) in subparagraphs (A) and (B), by 
striking ‘‘a historic barn’’ each place it appears 
and inserting ‘‘historic barns’’; and 
(B) in subparagraph (C), by striking ‘‘on 
a historic barn’’ and inserting ‘‘on historic 
barns (including surveys)’’; 
(2) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; and 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) PRIORITY.—In making grants under this 
subsection, the Secretary shall give the highest pri-
ority to funding projects described in paragraph 
(2)(C).’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
379A(c)(5) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2008o(c)(5)) (as redesignated by sub-
section (a)(2)) is amended by striking ‘‘2002 through 
2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMIT-
TERS. 
Section 379B(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008p(d)) is amended by 
striking ‘‘2002 through 2007’’ and inserting ‘‘2008 
through 2012’’. 
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SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE 
PROGRAM. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981 et seq.) is amended by add-
ing at the end the following: 
‘‘SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE 
PROGRAM. 
‘‘(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) MICROENTREPRENEUR.—The term ‘micro-
entrepreneur’ means an owner and operator, or pro-
spective owner and operator, of a rural microenter-
prise who is unable to obtain sufficient training, 
technical assistance, or credit other than under this 
section, as determined by the Secretary. 
‘‘(3) MICROENTERPRISE DEVELOPMENT ORGA-
NIZATION.—The term ‘microenterprise development 
organization’ means an organization that— 
‘‘(A) is— 
‘‘(i) a nonprofit entity; 
‘‘(ii) an Indian tribe, the tribal gov-
ernment of which certifies to the Secretary 
that— 
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‘‘(I) no microenterprise develop-
ment organization serves the Indian 
tribe; and 
‘‘(II) no rural microentrepreneur 
assistance program exists under the 
jurisdiction of the Indian tribe; or 
‘‘(iii) a public institution of higher 
education; 
‘‘(B) provides training and technical assist-
ance to rural microentrepreneurs; 
‘‘(C) facilitates access to capital or another 
service described in subsection (b) for rural 
microenterprises; and 
‘‘(D) has a demonstrated record of deliv-
ering services to rural microentrepreneurs, or 
an effective plan to develop a program to de-
liver services to rural microentrepreneurs, as 
determined by the Secretary. 
‘‘(4) MICROLOAN.—The term ‘microloan’ means 
a business loan of not more than $50,000 that is 
provided to a rural microenterprise. 
‘‘(5) PROGRAM.—The term ‘program’ means 
the rural microentrepreneur assistance program es-
tablished under subsection (b). 
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‘‘(6) RURAL
MICROENTERPRISE.—The term 
‘rural microenterprise’ means— 
‘‘(A) a sole proprietorship located in a 
rural area; or 
‘‘(B) a business entity with not more than 
10 full-time-equivalent employees located in a 
rural area. 
‘‘(b) RURAL
MICROENTREPRENEUR
ASSISTANCE 
PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a rural microentrepreneur assistance pro-
gram to provide loans and grants to support micro-
entrepreneurs in the development and ongoing suc-
cess of rural microenterprises. 
‘‘(2) PURPOSE.—The purpose of the program is 
to provide microentrepreneurs with— 
‘‘(A) the skills necessary to establish new 
rural microenterprises; and 
‘‘(B) continuing technical and financial as-
sistance related to the successful operation of 
rural microenterprises. 
‘‘(3) LOANS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make loans to microenterprise development or-
ganizations for the purpose of providing fixed 
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interest rate microloans to microentrepreneurs 
for startup and growing rural microenterprises. 
‘‘(B) LOAN TERMS.—A loan made by the 
Secretary to a microenterprise development or-
ganization under this paragraph shall— 
‘‘(i) be for a term not to exceed 20 
years; and 
‘‘(ii) bear an annual interest rate of at 
least 1 percent. 
‘‘(C) LOAN
LOSS
RESERVE
FUND.—The 
Secretary shall require each microenterprise de-
velopment organization that receives a loan 
under this paragraph to— 
‘‘(i) establish a loan loss reserve fund; 
and 
‘‘(ii) maintain the reserve fund in an 
amount equal to at least 5 percent of the 
outstanding balance of such loans owed by 
the microenterprise development organiza-
tion, until all obligations owed to the Sec-
retary under this paragraph are repaid. 
‘‘(D) DEFERRAL OF INTEREST AND PRIN-
CIPAL.—The Secretary may permit the deferral 
of payments on principal and interest due on a 
loan to a microenterprise development organiza-
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tion made under this paragraph for a 2-year pe-
riod beginning on the date the loan is made. 
‘‘(4) GRANTS.— 
‘‘(A) GRANTS TO SUPPORT RURAL MICRO-
ENTERPRISE DEVELOPMENT.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall make grants to microenterprise devel-
opment organizations to— 
‘‘(I) provide training, operational 
support, business planning, and mar-
ket development assistance, and other 
related services to rural microentre-
preneurs; and 
‘‘(II) 
carry 
out 
such 
other 
projects and activities as the Sec-
retary determines appropriate to fur-
ther the purposes of the program. 
‘‘(ii) SELECTION.—In making grants 
under clause (i), the Secretary shall— 
‘‘(I) place an emphasis on micro-
enterprise development organizations 
that serve microentrepreneurs that 
are located in rural areas that have 
suffered significant outward migra-
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tion, as determined by the Secretary; 
and 
‘‘(II) ensure, to the maximum ex-
tent practicable, that grant recipients 
include microenterprise development 
organizations— 
‘‘(aa) of varying sizes; and 
‘‘(bb) that serve racially and 
ethnically diverse populations. 
‘‘(B) GRANTS
TO
ASSIST
MICROENTRE-
PRENEURS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall make grants to microenterprise devel-
opment organizations to provide mar-
keting, management, and other technical 
assistance to microentrepreneurs that— 
‘‘(I) received a loan from the 
microenterprise development organiza-
tion under paragraph (3); or 
‘‘(II) are seeking a loan from the 
microenterprise development organiza-
tion under paragraph (3). 
‘‘(ii) MAXIMUM AMOUNT OF GRANT.— 
A microenterprise development organiza-
tion shall be eligible to receive an annual 
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grant under this subparagraph in an 
amount equal to not more than 25 percent 
of 
the 
total 
outstanding 
balance 
of 
microloans made by the microenterprise 
development organization under paragraph 
(3), as of the date the grant is awarded. 
‘‘(C) ADMINISTRATIVE
EXPENSES.—Not 
more than 10 percent of a grant received by a 
microenterprise development organization for a 
fiscal year under this paragraph may be used to 
pay administrative expenses. 
‘‘(c) ADMINISTRATION.— 
‘‘(1) COST SHARE.— 
‘‘(A) FEDERAL
SHARE.—Subject to sub-
paragraph (B), the Federal share of the cost of 
a project funded under this section shall not ex-
ceed 75 percent. 
‘‘(B) MATCHING
REQUIREMENT.—As a 
condition of any grant made under this sub-
paragraph, the Secretary shall require the 
microenterprise development organization to 
match not less than 15 percent of the total 
amount of the grant in the form of matching 
funds, indirect costs, or in-kind goods or serv-
ices. 
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‘‘(C) FORM
OF
NON-FEDERAL
SHARE.— 
The non-Federal share of the cost of a project 
funded under this section may be provided— 
‘‘(i) in cash (including through fees, 
grants (including community development 
block grants), and gifts); or 
‘‘(ii) in the form of in-kind contribu-
tions. 
‘‘(2) OVERSIGHT.—At a minimum, not later 
than December 1 of each fiscal year, a microenter-
prise development organization that receives a loan 
or grant under this section shall provide to the Sec-
retary such information as the Secretary may re-
quire to ensure that assistance provided under this 
section is used for the purposes for which the loan 
or grant was made. 
‘‘(d) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use to carry out this section, to remain avail-
able until expended— 
‘‘(A) $4,000,000 for each of fiscal years 
2009 through 2011; and 
‘‘(B) $3,000,000 for fiscal year 2012. 
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‘‘(2) DISCRETIONARY FUNDING.—In addition to 
amounts made available under paragraph (1), there 
are authorized to be appropriated to carry out this 
section $40,000,000 for each of fiscal years 2009 
through 2012.’’. 
SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OP-
PORTUNITIES FOR INDIVIDUALS WITH DIS-
ABILITIES IN RURAL AREAS. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981 et seq.) (as amended by 
section 6022) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OP-
PORTUNITIES FOR INDIVIDUALS WITH DIS-
ABILITIES IN RURAL AREAS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) INDIVIDUAL
WITH
A
DISABILITY.—The 
term ‘individual with a disability’ means an indi-
vidual with a disability (as defined in section 3 of 
the Americans with Disabilities Act of 1990 (42 
U.S.C. 12102)). 
‘‘(2) INDIVIDUALS
WITH
DISABILITIES.—The 
term ‘individuals with disabilities’ means more than 
1 individual with a disability. 
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‘‘(b) GRANTS.—The Secretary shall make grants to 
nonprofit organizations, or to a consortium of nonprofit 
organizations, to expand and enhance employment oppor-
tunities for individuals with disabilities in rural areas. 
‘‘(c) ELIGIBILITY.—To be eligible to receive a grant 
under this section, a nonprofit organization or consortium 
of nonprofit organizations shall have— 
‘‘(1) a significant focus on serving the needs of 
individuals with disabilities; 
‘‘(2) demonstrated knowledge and expertise 
in— 
‘‘(A) employment of individuals with dis-
abilities; and 
‘‘(B) advising private entities on accessi-
bility issues involving individuals with disabil-
ities; 
‘‘(3) expertise in removing barriers to employ-
ment for individuals with disabilities, including ac-
cess to transportation, assistive technology, and 
other accommodations; and 
‘‘(4) existing relationships with national organi-
zations focused primarily on the needs of rural 
areas. 
‘‘(d) USES.—A grant received under this section may 
be used only to expand or enhance— 
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‘‘(1) employment opportunities for individuals 
with disabilities in rural areas by developing national 
technical assistance and education resources to as-
sist small businesses in a rural area to recruit, hire, 
accommodate, and employ individuals with disabil-
ities; and 
‘‘(2) self-employment and entrepreneurship op-
portunities for individuals with disabilities in a rural 
area. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$2,000,000 for each of fiscal years 2008 through 2012.’’. 
SEC. 6024. HEALTH CARE SERVICES. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981 et seq.) (as amended by 
section 6023) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 379G. HEALTH CARE SERVICES. 
‘‘(a) PURPOSE.—The purpose of this section is to ad-
dress the continued unmet health needs in the Delta re-
gion through cooperation among health care professionals, 
institutions of higher education, research institutions, and 
other individuals and entities in the region. 
‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘eligible entity’ means a consortium of re-
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gional institutions of higher education, academic health 
and research institutes, and economic development entities 
located in the Delta region that have experience in ad-
dressing the health care issues in the region. 
‘‘(c) GRANTS.—To carry out the purpose described 
in subsection (a), the Secretary may award a grant to an 
eligible entity for – 
‘‘(1) the development of – 
‘‘(A) health care services; 
‘‘(B) health education programs; and 
‘‘(C) health care job training programs; 
and 
‘‘(2) the development and expansion of public 
health-related facilities in the Delta region to ad-
dress longstanding and unmet health needs of the 
region. 
‘‘(d) USE.—As a condition of the receipt of the grant, 
the eligible entity shall use the grant to fund projects and 
activities described in subsection (c), based on input solic-
ited from local governments, public health care providers, 
and other entities in the Delta region. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Secretary to carry 
out this section, $3,000,000 for each of fiscal years 2008 
through 2012.’’. 
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U.S.C. 2009bb(4)) is amended by inserting ‘‘Missouri 
(other than counties included in the Delta Regional Au-
thority),’’ after ‘‘Minnesota,’’. 
(b) ESTABLISHMENT.—Section 383B of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
2009bb–1) is amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(4) FAILURE TO CONFIRM.— 
‘‘(A) 
FEDERAL
MEMBER.—Notwith-
standing any other provision of this section, if 
a Federal member described in paragraph 
(2)(A) has not been confirmed by the Senate by 
not later than 180 days after the date of enact-
ment of this paragraph, the Authority may or-
ganize and operate without the Federal mem-
ber. 
‘‘(B) INDIAN CHAIRPERSON.—In the case 
of the Indian Chairperson, if no Indian Chair-
person is confirmed by the Senate, the regional 
authority shall consult and coordinate with the 
leaders of Indian tribes in the region concerning 
the activities of the Authority, as appropriate.’’; 
(2) in subsection (d)— 
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(A) in paragraph (1), by striking ‘‘to es-
tablish priorities and’’ and inserting ‘‘for 
multistate cooperation to advance the economic 
and social well-being of the region and to’’; 
(B) in paragraph (3), by striking ‘‘local de-
velopment districts,’’ and inserting ‘‘regional 
and local development districts or organizations, 
regional boards established under subtitle I,’’; 
(C) in paragraph (4), by striking ‘‘coopera-
tion;’’ and inserting ‘‘cooperation for— 
‘‘(i) renewable energy development 
and transmission; 
‘‘(ii) transportation planning and eco-
nomic development; 
‘‘(iii) information technology; 
‘‘(iv) movement of freight and individ-
uals within the region; 
‘‘(v) federally-funded research at insti-
tutions of higher education; and 
‘‘(vi) 
conservation 
land 
manage-
ment;’’; 
(D) by striking paragraph (6) and insert-
ing the following: 
‘‘(6) enhance the capacity of, and provide sup-
port for, multistate development and research orga-
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nizations, local development organizations and dis-
tricts, and resource conservation districts in the re-
gion;’’; and 
(E) in paragraph (7), by inserting ‘‘renew-
able energy,’’ after ‘‘commercial,’’. 
(3) in subsection (f)(2), by striking ‘‘the Fed-
eral cochairperson’’ and inserting ‘‘a cochairperson’’; 
(4) in subsection (g)(1), by striking subpara-
graphs (A) through (C) and inserting the following: 
‘‘(A) for each of fiscal years 2008 and 
2009, 100 percent; 
‘‘(B) for fiscal year 2010, 75 percent; and 
‘‘(C) for fiscal year 2011 and each fiscal 
year thereafter, 50 percent.’’. 
(c) INTERSTATE COOPERATION FOR ECONOMIC OP-
PORTUNITY AND EFFICIENCY.— 
(1) IN GENERAL.—Subtitle G of the Consoli-
dated Farm and Rural Development Act is amend-
ed— 
(A) 
by 
redesignating 
sections 
383C 
through 383N (7 U.S.C. 2009bb–2 through 
2009bb–13) as sections 383D through 383O, 
respectively; and 
(B) by inserting after section 383B (7 
U.S.C. 2009bb–1) the following: 
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‘‘SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC 
OPPORTUNITY AND EFFICIENCY. 
‘‘(a) IN GENERAL.—The Authority shall provide as-
sistance to States in developing regional plans to address 
multistate economic issues, including plans— 
‘‘(1) to develop a regional transmission system 
for movement of renewable energy to markets out-
side the region; 
‘‘(2) to address regional transportation con-
cerns, including the establishment of a Northern 
Great Plains Regional Transportation Working 
Group; 
‘‘(3) to encourage and support interstate col-
laboration on federally-funded research that is in the 
national interest; and 
‘‘(4) to establish a Regional Working Group on 
Agriculture Development and Transportation. 
‘‘(b) ECONOMIC ISSUES.—The multistate economic 
issues referred to in subsection (a) shall include— 
‘‘(1) renewable energy development and trans-
mission; 
‘‘(2) transportation planning and economic de-
velopment; 
‘‘(3) information technology; 
‘‘(4) movement of freight and individuals within 
the region; 
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‘‘(5) federally-funded research at institutions of 
higher education; and 
‘‘(6) conservation land management.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 383B(c)(3)(B) of the Consoli-
dated Farm and Rural Development Act (7 
U.S.C. 2009bb–1(c)(3)(B)) is amended by 
striking ‘‘383I’’ and inserting ‘‘383J’’. 
(B) Section 383D(a) of the Consolidated 
Farm and Rural Development Act (as redesig-
nated by paragraph (1)(A)) is amended by 
striking ‘‘383I’’ and inserting ‘‘383J’’. 
(C) Section 383E of the Consolidated 
Farm and Rural Development Act (as so redes-
ignated) is amended— 
(i) in subsection (b)(1), by striking 
‘‘383F(b)’’ and inserting ‘‘383G(b)’’; and 
(ii) in subsection (c)(2)(A), by strik-
ing ‘‘383I’’ and inserting ‘‘383J’’. 
(D) Section 383G of the Consolidated 
Farm and Rural Development Act (as so redes-
ignated) is amended— 
(i) in subsection (b)— 
(I) in paragraph (1), by striking 
‘‘383M’’ and inserting ‘‘383N’’; and 
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(II) in paragraph (2), by striking 
‘‘383D(b)’’ and inserting ‘‘383E(b)’’; 
(ii) in subsection (c)(2)(A), by strik-
ing ‘‘383E(b)’’ and inserting ‘‘383F(b)’’; 
and 
(iii) in subsection (d)— 
(I) by striking ‘‘383M’’ and in-
serting ‘‘383N’’; and 
(II) by striking ‘‘383C(a)’’ and 
inserting ‘‘383D(a)’’. 
(E) Section 383J(c)(2) of the Consolidated 
Farm and Rural Development Act (as so redes-
ignated) is amended by striking ‘‘383H’’ and 
inserting ‘‘383I’’. 
(d) ECONOMIC
AND
COMMUNITY
DEVELOPMENT 
GRANTS.—Section 383D of the Consolidated Farm and 
Rural Development Act (as redesignated by subsection 
(c)(1)(A)) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘trans-
portation and telecommunication’’ and inserting 
‘‘transportation, renewable energy transmission, 
and telecommunication’’; and 
(B) by redesignating paragraphs (1) and 
(2) as paragraphs (2) and (1), respectively, and 
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moving those paragraphs so as to appear in nu-
merical order; and 
(2) in subsection (b)(2), by striking ‘‘the activi-
ties in the following order or priority’’ and inserting 
‘‘the following activities’’. 
(e) SUPPLEMENTS
TO
FEDERAL
GRANT
PRO-
GRAMS.—Section 383E(a) of the Consolidated Farm and 
Rural Development Act (as redesignated by subsection 
(c)(1)(A)) is amended by striking ‘‘, including local devel-
opment districts,’’. 
(f) MULTISTATE AND LOCAL DEVELOPMENT DIS-
TRICTS
AND ORGANIZATIONS
AND NORTHERN GREAT 
PLAINS INC.—Section 383F of the Consolidated Farm 
and Rural Development Act (as redesignated by sub-
section (c)(1)(A)) is amended— 
(1) by striking the section heading and insert-
ing ‘‘MULTISTATE AND LOCAL DEVELOPMENT 
DISTRICTS AND ORGANIZATIONS AND NORTH-
ERN GREAT PLAINS INC.’’; and 
(2) by striking subsections (a) through (c) and 
inserting the following: 
‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DE-
VELOPMENT DISTRICT OR ORGANIZATION.—In this sec-
tion, the term ‘multistate and local development district 
or organization’ means an entity— 
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‘‘(1) that— 
‘‘(A) is a planning district in existence on 
the date of enactment of this subtitle that is 
recognized by the Economic Development Ad-
ministration of the Department of Commerce; 
or 
‘‘(B) is— 
‘‘(i) organized and operated in a man-
ner that ensures broad-based community 
participation and an effective opportunity 
for other nonprofit groups to contribute to 
the development and implementation of 
programs in the region; 
‘‘(ii) a nonprofit incorporated body or-
ganized or chartered under the law of the 
State in which the entity is located; 
‘‘(iii) a nonprofit agency or instru-
mentality of a State or local government; 
‘‘(iv) a public organization established 
before the date of enactment of this sub-
title under State law for creation of multi-
jurisdictional, area-wide planning organiza-
tions; 
‘‘(v) a nonprofit agency or instrumen-
tality of a State that was established for 
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the purpose of assisting with multistate co-
operation; or 
‘‘(vi) a nonprofit association or com-
bination of bodies, agencies, and instru-
mentalities 
described 
in 
clauses 
(ii) 
through (v); and 
‘‘(2) that has not, as certified by the Authority 
(in consultation with the Federal cochairperson or 
Secretary, as appropriate)— 
‘‘(A) inappropriately used Federal grant 
funds from any Federal source; or 
‘‘(B) appointed an officer who, during the 
period in which another entity inappropriately 
used Federal grant funds from any Federal 
source, was an officer of the other entity. 
‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL 
DEVELOPMENT DISTRICTS AND ORGANIZATIONS.— 
‘‘(1) IN GENERAL.—The Authority may make 
grants for administrative expenses under this section 
to multistate, local, and regional development dis-
tricts and organizations. 
‘‘(2) CONDITIONS FOR GRANTS.— 
‘‘(A) MAXIMUM AMOUNT.—The amount of 
any grant awarded under paragraph (1) shall 
not exceed 80 percent of the administrative ex-
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penses of the multistate, local, or regional de-
velopment district or organization receiving the 
grant. 
‘‘(B) MAXIMUM
PERIOD.—No grant de-
scribed in paragraph (1) shall be awarded for a 
period greater than 3 years. 
‘‘(3) LOCAL
SHARE.—The contributions of a 
multistate, local, or regional development district or 
organization for administrative expenses may be in 
cash or in kind, fairly evaluated, including space, 
equipment, and services. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a local development district shall operate 
as a lead organization serving multicounty areas in 
the region at the local level. 
‘‘(2) 
DESIGNATION.—The 
Federal 
cochair-
person may designate an Indian tribe or multijuris-
dictional organization to serve as a lead organization 
in such cases as the Federal cochairperson or Sec-
retary, as appropriate, determines appropriate.’’. 
(g) DISTRESSED COUNTIES AND AREAS AND NON-
DISTRESSED COUNTIES.—Section 383G of the Consoli-
dated Farm and Rural Development Act (as redesignated 
by subsection (c)(1)(A)) is amended— 
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(1) in subsection (b)(1), by striking ‘‘75’’ and 
inserting ‘‘50’’; 
(2) by striking subsection (c); 
(3) by redesignating subsection (d) as sub-
section (c); and 
(4) in subsection (c) (as so redesignated)— 
(A) in the subsection heading, by inserting 
‘‘RENEWABLE
ENERGY,’’ 
after‘‘TELECOMMUNICATION’’; and 
(B) by inserting ‘‘, renewable energy,’’ 
after ‘‘telecommunication,’’. 
(h) DEVELOPMENT PLANNING PROCESS.—Section 
383H of the Consolidated Farm and Rural Development 
Act (as redesignated by subsection (c)(1)(A)) is amend-
ed— 
(1) in subsection (c)(1), by striking subpara-
graph (A) and inserting the following: 
‘‘(A) multistate, regional, and local devel-
opment districts and organizations; and’’; and 
(2) in subsection (d)(1), by striking ‘‘State and 
local 
development 
districts’’ 
and 
inserting 
‘‘multistate, regional, and local development districts 
and organizations’’. 
(i) PROGRAM
DEVELOPMENT
CRITERIA.—Section 
383I(a)(1) of the Consolidated Farm and Rural Develop-
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ment Act (as redesignated by subsection (c)(1)(A)) is 
amended by inserting ‘‘multistate or’’ before ‘‘regional’’. 
(j) AUTHORIZATION OF APPROPRIATIONS.—Section 
383N(a) of the Consolidated Farm and Rural Develop-
ment Act (as redesignated by subsection (c)(1)(A)) is 
amended by striking ‘‘2002 through 2007’’ and inserting 
‘‘2008 through 2012’’. 
(k) TERMINATION OF AUTHORITY.—Section 383O of 
the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended by strik-
ing ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM. 
(a) ISSUANCE AND GUARANTEE OF TRUST CERTIFI-
CATES.—Section 384F(b)(3)(A) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009cc–5(b)(3)(A)) 
is amended by striking ‘‘In the event’’ and inserting the 
following: 
‘‘(i) AUTHORITY TO PREPAY.—A de-
benture may be prepaid at any time with-
out penalty. 
‘‘(ii) REDUCTION
OF
GUARANTEE.— 
Subject to clause (i), if’’. 
(b) FEES.—Section 384G of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009cc–6) is 
amended— 
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(1) in subsection (a), by striking ‘‘such fees as 
the Secretary considers appropriate’’ and inserting 
‘‘a fee that does not exceed $500’’; 
(2) in subsection (b), by striking ‘‘approved by 
the Secretary’’ and inserting ‘‘that does not exceed 
$500’’; and 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘The’’ 
and inserting ‘‘Except as provided in paragraph 
(3), the’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) shall not exceed $500 for any fee col-
lected under this subsection.’’; and 
(C) by adding at the end the following: 
‘‘(3) PROHIBITION ON COLLECTION OF CERTAIN 
FEES.—In the case of a license described in para-
graph (1) that was approved before July 1, 2007, 
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the Secretary shall not collect any fees due on or 
after the date of enactment of this paragraph.’’. 
(c) RURAL BUSINESS INVESTMENT COMPANIES.— 
Section 384I(c) of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2009cc–8(c)) is amended— 
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) TIME FRAME.—Each rural business invest-
ment company shall have a period of 2 years to meet 
the capital requirements of this subsection.’’. 
(d) FINANCIAL INSTITUTION INVESTMENTS.—Sec-
tion 384J of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2009cc–9) is amended— 
(1) in subsection (a)(1), by inserting ‘‘, includ-
ing an investment pool created entirely by such bank 
or savings association’’ before the period at the end; 
and 
(2) in subsection (c), by striking ‘‘15’’ and in-
serting ‘‘25’’. 
(e) CONTRACTING OF FUNCTIONS.—Section 384Q of 
the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009cc–16) is repealed. 
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(f) FUNDING.—The Consolidated Farm and Rural 
Development Act is amended by striking section 384S (7 
U.S.C. 2009cc–18) and inserting the following: 
‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There is authorized to be appropriated to carry out 
this subtitle $50,000,000 for the period of fiscal years 
2008 through 2012.’’. 
SEC. 6028. RURAL COLLABORATIVE INVESTMENT PRO-
GRAM. 
Subtitle I of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 2009dd et seq.) is amended to read 
as follows: 
‘‘Subtitle I—Rural Collaborative 
Investment Program 
‘‘SEC. 385A. PURPOSE. 
‘‘The purpose of this subtitle is to establish a regional 
rural collaborative investment program— 
‘‘(1) to provide rural regions with a flexible in-
vestment vehicle, allowing for local control with Fed-
eral oversight, assistance, and accountability; 
‘‘(2) to provide rural regions with incentives 
and resources to develop and implement comprehen-
sive strategies for achieving regional competitiveness, 
innovation, and prosperity; 
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‘‘(3) to foster multisector community and eco-
nomic development collaborations that will optimize 
the asset-based competitive advantages of rural re-
gions with particular emphasis on innovation, entre-
preneurship, and the creation of quality jobs; 
‘‘(4) to foster collaborations necessary to pro-
vide the professional technical expertise, institutional 
capacity, and economies of scale that are essential 
for the long-term competitiveness of rural regions; 
and 
‘‘(5) to better use Department of Agriculture 
and other Federal, State, and local governmental re-
sources, and to leverage those resources with private, 
nonprofit, and philanthropic investments, in order to 
achieve measurable community and economic pros-
perity, growth, and sustainability. 
‘‘SEC. 385B. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) BENCHMARK.—The term ‘benchmark’ 
means an annual set of goals and performance 
measures established for the purpose of assessing 
performance in meeting a regional investment strat-
egy of a Regional Board. 
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
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Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
‘‘(3) NATIONAL
BOARD.—The term ‘National 
Board’ means the National Rural Investment Board 
established under section 385C(c). 
‘‘(4) NATIONAL
INSTITUTE.—The term ‘Na-
tional Institute’ means the National Institute on Re-
gional Rural Competitiveness and Entrepreneurship 
established under section 385C(b)(2). 
‘‘(5) REGIONAL
BOARD.—The term ‘Regional 
Board’ means a Regional Rural Investment Board 
described in section 385D(a). 
‘‘(6) 
REGIONAL
INNOVATION
GRANT.—The 
term ‘regional innovation grant’ means a grant made 
by the Secretary to a certified Regional Board under 
section 385F. 
‘‘(7) 
REGIONAL
INVESTMENT
STRATEGY 
GRANT.—The term ‘regional investment strategy 
grant’ means a grant made by the Secretary to a 
certified Regional Board under section 385E. 
‘‘(8) RURAL HERITAGE.— 
‘‘(A) IN GENERAL.—The term ‘rural herit-
age’ means historic sites, structures, and dis-
tricts. 
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‘‘(B) INCLUSIONS.—The term ‘rural herit-
age’ includes historic rural downtown areas and 
main streets, neighborhoods, farmsteads, scenic 
and historic trails, heritage areas, and historic 
landscapes. 
‘‘SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF 
RURAL COLLABORATIVE INVESTMENT PRO-
GRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a Rural Collaborative Investment Program to support 
comprehensive regional investment strategies for achieving 
rural competitiveness. 
‘‘(b) DUTIES OF SECRETARY.—In carrying out this 
subtitle, the Secretary shall— 
‘‘(1) appoint and provide administrative and 
program support to the National Board; 
‘‘(2) establish a national institute, to be known 
as the ‘National Institute on Regional Rural Com-
petitiveness and Entrepreneurship’, to provide tech-
nical assistance to the Secretary and the National 
Board regarding regional competitiveness and rural 
entrepreneurship, 
including 
technical 
assistance 
for— 
‘‘(A) the development of rigorous analytic 
programs to assist Regional Boards in deter-
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mining the challenges and opportunities that 
need to be addressed to receive the greatest re-
gional competitive advantage; 
‘‘(B) the provision of support for best 
practices developed by the Regional Boards; 
‘‘(C) the establishment of programs to sup-
port the development of appropriate governance 
and leadership skills in the applicable regions; 
and 
‘‘(D) the evaluation of the progress and 
performance of the Regional Boards in achiev-
ing benchmarks established in a regional invest-
ment strategy; 
‘‘(3) work with the National Board to develop 
a national rural investment plan that shall— 
‘‘(A) create a framework to encourage and 
support a more collaborative and targeted rural 
investment portfolio in the United States; 
‘‘(B) establish a Rural Philanthropic Ini-
tiative, to work with rural communities to cre-
ate and enhance the pool of permanent philan-
thropic resources committed to rural community 
and economic development; 
‘‘(C) cooperate with the Regional Boards 
and State and local governments, organizations, 
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‘‘(C) programs to support the development 
of appropriate governance and leadership skills 
in the region; and 
‘‘(D) a review and evaluation of the per-
formance of the Regional Boards (including 
progress in achieving benchmarks established in 
a regional investment strategy) in an annual re-
port submitted to— 
‘‘(i) the Committee on Agriculture of 
the House of Representatives; and 
‘‘(ii) the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The 
Secretary shall establish within the Department of Agri-
culture a board to be known as the ‘National Rural Invest-
ment Board’. 
‘‘(d) DUTIES OF NATIONAL BOARD.—The National 
Board shall— 
‘‘(1) not later than 180 days after the date of 
establishment of the National Board, develop rules 
relating to the operation of the National Board; and 
‘‘(2) provide advice to— 
‘‘(A) the Secretary and subsequently re-
view the design, development, and execution of 
the National Rural Investment Plan; 
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‘‘(B) Regional Boards on issues, best prac-
tices, and emerging trends relating to rural de-
velopment; and 
‘‘(C) the Secretary and the National Insti-
tute on the development and execution of the 
program under this subtitle. 
‘‘(e) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The National Board shall 
consist of 14 members appointed by the Secretary 
not later than 180 days after the date of enactment 
of the Food, Conservation, and Energy Act of 2008. 
‘‘(2) SUPERVISION.—The National Board shall 
be subject to the general supervision and direction of 
the Secretary. 
‘‘(3) SECTORS
REPRESENTED.—The National 
Board shall consist of representatives from each 
of— 
‘‘(A) nationally recognized entrepreneur-
ship organizations; 
‘‘(B) regional strategy and development or-
ganizations; 
‘‘(C) community-based organizations; 
‘‘(D) elected members of local govern-
ments; 
‘‘(E) members of State legislatures; 
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‘‘(F) primary, secondary, and higher edu-
cation, job skills training, and workforce devel-
opment institutions; 
‘‘(G) the rural philanthropic community; 
‘‘(H) financial, lending, venture capital, 
entrepreneurship, and other related institutions; 
‘‘(I) private sector business organizations, 
including chambers of commerce and other for- 
profit business interests; 
‘‘(J) Indian tribes; and 
‘‘(K) cooperative organizations. 
‘‘(4) SELECTION OF MEMBERS.— 
‘‘(A) IN GENERAL.—In selecting members 
of the National Board, the Secretary shall con-
sider recommendations made by— 
‘‘(i) the chairman and ranking mem-
ber of each of the Committee on Agri-
culture of the House of Representatives 
and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate; 
‘‘(ii) the Majority Leader and Minor-
ity Leader of the Senate; and 
‘‘(iii) the Speaker and Minority Lead-
er of the House of Representatives. 
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‘‘(B) EX-OFFICIO MEMBERS.—In consulta-
tion with the chairman and ranking member of 
each of the Committee on Agriculture of the 
House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate, the Secretary may appoint not more 
than 3 other officers or employees of the Execu-
tive Branch to serve as ex-officio, nonvoting 
members of the National Board. 
‘‘(5) TERM OF OFFICE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term of office of a member of 
the National Board appointed under paragraph 
(1)(A) shall be for a period of not more than 
4 years. 
‘‘(B) STAGGERED TERMS.—The members 
of the National Board shall be appointed to 
serve staggered terms. 
‘‘(6) INITIAL APPOINTMENTS.—Not later than 
1 year after the date of enactment of the Food, Con-
servation, and Energy Act of 2008, the Secretary 
shall appoint the initial members of the National 
Board. 
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‘‘(7) VACANCIES.—A vacancy on the National 
Board shall be filled in the same manner as the 
original appointment. 
‘‘(8) COMPENSATION.—A member of the Na-
tional Board shall receive no compensation for serv-
ice on the National Board, but shall be reimbursed 
for related travel and other expenses incurred in car-
rying out the duties of the member of the National 
Board in accordance with section 5702 and 5703 of 
title 5, United States Code. 
‘‘(9) CHAIRPERSON.—The National Board shall 
select a chairperson from among the members of the 
National Board. 
‘‘(10) FEDERAL
STATUS.—For purposes of 
Federal law, a member of the National Board shall 
be considered a special Government employee (as de-
fined in section 202(a) of title 18, United States 
Code). 
‘‘(f) ADMINISTRATIVE SUPPORT.—The Secretary, on 
a reimbursable basis from funds made available under sec-
tion 385H, may provide such administrative support to 
the National Board as the Secretary determines is nec-
essary. 
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‘‘SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS. 
‘‘(a) IN GENERAL.—A Regional Rural Investment 
Board shall be a multijurisdictional and multisectoral 
group that— 
‘‘(1) represents the long-term economic, com-
munity, and cultural interests of a region; 
‘‘(2) is certified by the Secretary to establish a 
rural investment strategy and compete for regional 
innovation grants; 
‘‘(3) is composed of residents of a region that 
are broadly representative of diverse public, non-
profit, and private sector interests in investment in 
the region, including (to the maximum extent prac-
ticable) representatives of— 
‘‘(A) units of local, multijurisdictional, or 
State government, including not more than 1 
representative from each State in the region; 
‘‘(B) nonprofit community-based develop-
ment organizations, including community devel-
opment financial institutions and community 
development corporations; 
‘‘(C) agricultural, natural resource, and 
other asset-based related industries; 
‘‘(D) in the case of regions with federally 
recognized Indian tribes, Indian tribes; 
‘‘(E) regional development organizations; 
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‘‘(F) private business organizations, in-
cluding chambers of commerce; 
‘‘(G)(i) institutions of higher education (as 
defined in section 101(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001(a))); 
‘‘(ii) tribally controlled colleges or univer-
sities (as defined in section 2(a) of Tribally 
Controlled College or University Assistance Act 
of 1978 (25 U.S.C. 1801(a))); and 
‘‘(iii) tribal technical institutions; 
‘‘(H) workforce and job training organiza-
tions; 
‘‘(I) other entities and organizations, as 
determined by the Regional Board; 
‘‘(J) cooperatives; and 
‘‘(K) consortia of entities and organiza-
tions described in subparagraphs (A) through 
(J); 
‘‘(4) represents a region inhabited by— 
‘‘(A) more than 25,000 individuals, as de-
termined in the latest available decennial census 
conducted under section 141(a) of title 13, 
United States Code; or 
‘‘(B) in the case of a region with a popu-
lation density of less than 2 individuals per 
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square mile, at least 10,000 individuals, as de-
termined in that latest available decennial cen-
sus; 
‘‘(5) has a membership of which not less than 
25 percent, nor more than 40 percent, represents— 
‘‘(A) units of local government and Indian 
tribes described in subparagraphs (A) and (D) 
of paragraph (3); 
‘‘(B) nonprofit community and economic 
development organizations and institutions of 
higher education described in subparagraphs 
(B) and (G) of paragraph (3); or 
‘‘(C) private business (including chambers 
of commerce and cooperatives) and agricultural, 
natural resource, and other asset-based related 
industries described in subparagraphs (C) and 
(F) of paragraph (3); 
‘‘(6) has a membership that may include an of-
ficer or employee of a Federal agency, serving as an 
ex-officio, nonvoting member of the Regional Board 
to represent the agency; and 
‘‘(7) has organizational documents that dem-
onstrate that the Regional Board will— 
‘‘(A) create a collaborative public-private 
strategy process; 
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‘‘(B) develop, and submit to the Secretary 
for approval, a regional investment strategy 
that meets the requirements of section 385E, 
with benchmarks— 
‘‘(i) to promote investment in rural 
areas through the use of grants made 
available under this subtitle; and 
‘‘(ii) to provide financial and technical 
assistance to promote a broad-based re-
gional development program aimed at in-
creasing and diversifying economic growth, 
improved community facilities, and im-
proved quality of life; 
‘‘(C) implement the approved regional in-
vestment strategy; 
‘‘(D) provide annual reports to the Sec-
retary and the National Board on progress 
made in achieving the benchmarks of the re-
gional investment strategy, including an annual 
financial statement; and 
‘‘(E) select a non-Federal organization 
(such as a regional development organization) 
in the local area served by the Regional Board 
that has previous experience in the management 
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of Federal funds to serve as fiscal manager of 
any funds of the Regional Board. 
‘‘(b) URBAN AREAS.—A resident of an urban area 
may serve as an ex-officio member of a Regional Board. 
‘‘(c) DUTIES.—A Regional Board shall— 
‘‘(1) create a collaborative planning process for 
public-private investment within a region; 
‘‘(2) develop, and submit to the Secretary for 
approval, a regional investment strategy; 
‘‘(3) develop approaches that will create perma-
nent resources for philanthropic giving in the region, 
to the maximum extent practicable; 
‘‘(4) implement an approved strategy; and 
‘‘(5) provide annual reports to the Secretary 
and the National Board on progress made in achiev-
ing the strategy, including an annual financial state-
ment. 
‘‘SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS. 
‘‘(a) IN GENERAL.—The Secretary shall make re-
gional investment strategy grants available to Regional 
Boards for use in developing, implementing, and maintain-
ing regional investment strategies. 
‘‘(b) REGIONAL INVESTMENT STRATEGY.—A re-
gional investment strategy shall provide— 
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‘‘(1) an assessment of the competitive advan-
tage of a region, including— 
‘‘(A) an analysis of the economic condi-
tions of the region; 
‘‘(B) an assessment of the current eco-
nomic performance of the region; 
‘‘(C) an overview of the population, geog-
raphy, workforce, transportation system, re-
sources, environment, and infrastructure needs 
of the region; and 
‘‘(D) such other pertinent information as 
the Secretary may request; 
‘‘(2) an analysis of regional economic and com-
munity development challenges and opportunities, 
including— 
‘‘(A) incorporation of relevant material 
from other government-sponsored or supported 
plans and consistency with applicable State, re-
gional, and local workforce investment strate-
gies or comprehensive economic development 
plans; and 
‘‘(B) an identification of past, present, and 
projected Federal and State economic and com-
munity development investments in the region; 
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‘‘(3) a section describing goals and objectives 
necessary to solve regional competitiveness chal-
lenges and meet the potential of the region; 
‘‘(4) an overview of resources available in the 
region for use in— 
‘‘(A) establishing regional goals and objec-
tives; 
‘‘(B) developing and implementing a re-
gional action strategy; 
‘‘(C) identifying investment priorities and 
funding sources; and 
‘‘(D) identifying lead organizations to exe-
cute portions of the strategy; 
‘‘(5) an analysis of the current state of collabo-
rative public, private, and nonprofit participation 
and investment, and of the strategic roles of public, 
private, and nonprofit entities in the development 
and implementation of the regional investment strat-
egy; 
‘‘(6) a section identifying and prioritizing vital 
projects, programs, and activities for consideration 
by the Secretary, including— 
‘‘(A) other potential funding sources; and 
‘‘(B) recommendations for leveraging past 
and potential investments; 
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‘‘(7) a plan of action to implement the goals 
and objectives of the regional investment strategy; 
‘‘(8) a list of performance measures to be used 
to evaluate implementation of the regional invest-
ment strategy, including— 
‘‘(A) the number and quality of jobs, in-
cluding self-employment, created during imple-
mentation of the regional rural investment 
strategy; 
‘‘(B) the number and types of investments 
made in the region; 
‘‘(C) the growth in public, private, and 
nonprofit investment in the human, community, 
and economic assets of the region; 
‘‘(D) changes in per capita income and the 
rate of unemployment; and 
‘‘(E) other changes in the economic envi-
ronment of the region; 
‘‘(9) a section outlining the methodology for use 
in integrating the regional investment strategy with 
the economic priorities of the State; and 
‘‘(10) such other information as the Secretary 
determines to be appropriate. 
‘‘(c) MAXIMUM AMOUNT OF GRANT.—A regional in-
vestment strategy grant shall not exceed $150,000. 
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‘‘(d) COST SHARING.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
of the share of the costs of developing, maintaining, 
evaluating, implementing, and reporting with respect 
to a regional investment strategy funded by a grant 
under this section— 
‘‘(A) not more than 40 percent may be 
paid using funds from the grant; and 
‘‘(B) the remaining share shall be provided 
by the applicable Regional Board or other eligi-
ble grantee. 
‘‘(2) FORM.—A Regional Board or other eligi-
ble grantee shall pay the share described in para-
graph (1)(B) in the form of cash, services, materials, 
or other in-kind contributions, on the condition that 
not more than 50 percent of that share is provided 
in the form of services, materials, and other in-kind 
contributions. 
‘‘SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM. 
‘‘(a) GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall pro-
vide, on a competitive basis, regional innovation 
grants to Regional Boards for use in implementing 
projects and initiatives that are identified in a re-
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gional rural investment strategy approved under sec-
tion 385E. 
‘‘(2) TIMING.—After October 1, 2008, the Sec-
retary shall provide awards under this section on a 
quarterly funding cycle. 
‘‘(b) ELIGIBILITY.—To be eligible to receive a re-
gional innovation grant, a Regional Board shall dem-
onstrate to the Secretary that— 
‘‘(1) the regional rural investment strategy of a 
Regional Board has been reviewed by the National 
Board prior to approval by the Secretary; 
‘‘(2) the management and organizational struc-
ture of the Regional Board is sufficient to oversee 
grant projects, including management of Federal 
funds; and 
‘‘(3) the Regional Board has a plan to achieve, 
to the maximum extent practicable, the perform-
ance-based benchmarks of the project in the regional 
rural investment strategy. 
‘‘(c) LIMITATIONS.— 
‘‘(1) AMOUNT RECEIVED.—A Regional Board 
may not receive more than $6,000,000 in regional 
innovation grants under this section during any 5- 
year period. 
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‘‘(2) DETERMINATION OF AMOUNT.—The Sec-
retary shall determine the amount of a regional in-
novation grant based on— 
‘‘(A) the needs of the region being ad-
dressed by the applicable regional rural invest-
ment strategy consistent with the purposes de-
scribed in subsection (f)(2); and 
‘‘(B) the size of the geographical area of 
the region. 
‘‘(3) GEOGRAPHIC DIVERSITY.—The Secretary 
shall ensure that not more than 10 percent of fund-
ing made available under this section is provided to 
Regional Boards in any State. 
‘‘(d) COST-SHARING.— 
‘‘(1) LIMITATION.—Subject to paragraph (2), 
the amount of a grant made under this section shall 
not exceed 50 percent of the cost of the project. 
‘‘(2) WAIVER OF GRANTEE SHARE.—The Sec-
retary may waive the limitation in paragraph (1) 
under special circumstances, as determined by the 
Secretary, including— 
‘‘(A) a sudden or severe economic disloca-
tion; 
‘‘(B) significant chronic unemployment or 
poverty; 
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‘‘(C) a natural disaster; or 
‘‘(D) other severe economic, social, or cul-
tural duress. 
‘‘(3) OTHER FEDERAL ASSISTANCE.—For the 
purpose of determining cost-share limitations for any 
other Federal program, funds provided under this 
section shall be considered to be non-Federal funds. 
‘‘(e) PREFERENCES.—In providing regional innova-
tion grants under this section, the Secretary shall give— 
‘‘(1) a high priority to strategies that dem-
onstrate significant leverage of capital and quality 
job creation; and 
‘‘(2) a preference to an application proposing 
projects and initiatives that would— 
‘‘(A) advance the overall regional competi-
tiveness of a region; 
‘‘(B) address the priorities of a regional 
rural investment strategy, including priorities 
that— 
‘‘(i) promote cross-sector collabora-
tion, public-private partnerships, or the 
provision of interim financing or seed cap-
ital for program implementation; 
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‘‘(ii) exhibit collaborative innovation 
and entrepreneurship, particularly within a 
public-private partnership; and 
‘‘(iii) represent a broad coalition of in-
terests described in section 385D(a); 
‘‘(C) include a strategy to leverage public 
non-Federal and private funds and existing as-
sets, including agricultural, natural resource, 
and public infrastructure assets, with substan-
tial emphasis placed on the existence of real fi-
nancial commitments to leverage available 
funds; 
‘‘(D) create quality jobs; 
‘‘(E) enhance the role, relevance, and 
leveraging potential of community and regional 
foundations in support of regional investment 
strategies; 
‘‘(F) demonstrate a history, or involve or-
ganizations with a history, of successful 
leveraging of capital for economic development 
and public purposes; 
‘‘(G) address gaps in existing basic serv-
ices, including technology, within a region; 
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‘‘(H) address economic diversification, in-
cluding 
agricultural 
and 
non-agriculturally 
based economies, within a regional framework; 
‘‘(I) improve the overall quality of life in 
the region; 
‘‘(J) enhance the potential to expand eco-
nomic development successes across diverse 
stakeholder groups within the region; 
‘‘(K) include an effective working relation-
ship with 1 or more institutions of higher edu-
cation, tribally controlled colleges or univer-
sities, or tribal technical institutions; 
‘‘(L) help to meet the other regional com-
petitiveness needs identified by a Regional 
Board; or 
‘‘(M) protect and promote rural heritage. 
‘‘(f) USES.— 
‘‘(1) LEVERAGE.—A Regional Board shall 
prioritize projects and initiatives carried out using 
funds from a regional innovation grant provided 
under this section, based in part on the degree to 
which members of the Regional Board are able to le-
verage additional funds for the implementation of 
the projects. 
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