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subsection (j) to encourage, in accordance with the plan of
each State described in subsection (c)—
‘‘(1) the investment in practices to establish, re-
store, protect, manage, maintain, and enhance the
health and productivity of the nonindustrial private
forest land in the United States;
‘‘(2) the occurrence of afforestation, reforestation,
improvement of poorly stocked stands, timber stand
improvement, practices necessary to improve seedling
growth and survival, and growth enhancement prac-
tices as needed to enhance and sustain the long-term
productivity of timber and nontimber forest resources
to—
‘‘(A) meet projected public demand for for-
est resources; and
‘‘(B) provide environmental benefits;
‘‘(3) the protection of riparian buffers and forest
wetland;
‘‘(4) the maintenance and enhancement of fish
and wildlife habitat;
‘‘(5) the enhancement of soil, air, and water
quality;
‘‘(6) through the use of agroforestry practices, the
reduction of soil erosion and maintenance of soil
quality;
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‘‘(7) the maintenance and enhancement of the
forest landbase;
‘‘(8) the reduction of the threat of catastrophic
wildfires; and
‘‘(9) the preservation of aesthetic quality and op-
portunities for outdoor recreation.
‘‘(e) ELIGIBILITY.—
‘‘(1) COST-SHARE ASSISTANCE.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (2), an owner shall be eligible to re-
ceive cost-share assistance from a State forester
under the program if the owner—
‘‘(i) develops a management plan in
accordance with subsection (f) that—
‘‘(I) addresses site-specific activi-
ties and practices; and
‘‘(II) is approved by the State for-
ester;
‘‘(ii) agrees to implement approved ac-
tivities in accordance with the management
plan for a period of not less than 10 years,
unless the State forester approves a modi-
fication to the management plan; and
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‘‘(iii) except as provided in subpara-
graph (B), owns not more than 1,000 acres
of nonindustrial private forest land.
‘‘(B) EXCEPTION FOR SIGNIFICANT PUBLIC
BENEFITS.—The Secretary may approve the pro-
vision of cost-share assistance to an owner that
owns more than 1,000 but less than 5,000 acres
of nonindustrial private forest land if the Sec-
retary, in consultation with the State forester,
determines that significant public benefits will
accrue as a result of the approval.
‘‘(2) PAYMENT FOR PLAN DEVELOPMENT.—The
Secretary, acting through a State forester, may pro-
vide cost-share assistance to an owner to develop a
management plan.
‘‘(3) LIMITATIONS.—An owner shall receive no
cost-share assistance for management of nonindustrial
private forest land under this section if the owner re-
ceives cost-share assistance for that land under—
‘‘(A) the forestry incentives program under
section 4;
‘‘(B) the stewardship incentives program
under section 6; or
‘‘(C) any conservation program adminis-
tered by the Secretary.
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‘‘(4) RATE; SCHEDULE.—Subject to paragraph
(5), the Secretary, in consultation with the State for-
ester, shall determine the rate and timing of cost-
share payments.
‘‘(5) AMOUNT.—
‘‘(A) PERCENTAGE
OF
COST.—Subject to
subparagraph (B), a cost-share payment shall
not exceed the lesser of an amount equal to—
‘‘(i) 75 percent of the total cost of im-
plementing the project or activity; or
‘‘(ii) such lesser percentage of the total
cost of implementing the project or activity
as is determined by the appropriate State
forester.
‘‘(B) AGGREGATE
PAYMENT
LIMIT.—The
Secretary shall determine the maximum aggre-
gate amount of cost-share payments that an
owner may receive under this section.
‘‘(f) MANAGEMENT PLAN.—An owner that seeks to par-
ticipate in the program shall—
‘‘(1) submit to the State forester a management
plan that—
‘‘(A) meets the requirements of this section;
and
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‘‘(B)(i) is prepared by, or in consultation
with, a professional resource manager;
‘‘(ii) identifies and describes projects and
activities to be carried out by the owner to pro-
tect soil, water, air, range, and aesthetic quality,
recreation, timber, water, wetland, and fish and
wildlife resources on the land in a manner that
is compatible with the objectives of the owner;
‘‘(iii) addresses any criteria established by
the applicable State and the applicable Com-
mittee; and
‘‘(iv)(I) at a minimum, applies to the por-
tion of the land on which any project or activity
funded under the program will be carried out; or
‘‘(II) in a case in which a project or activ-
ity described in subclause (I) may affect acreage
outside the portion of the land on which the
project or activity is carried out, applies to all
land of the owner that is in forest cover and that
may be affected by the project or activity; and
‘‘(2) agree that all projects and activities con-
ducted on the land shall be consistent with the man-
agement plan.
‘‘(g) APPROVED ACTIVITIES.—
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‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the State forester and the appropriate Com-
mittee, shall develop for each State a list of approved
forest activities and practices eligible for cost-share
assistance that meets the purposes of the program de-
scribed in subsection (d).
‘‘(2) TYPES OF ACTIVITIES.—Approved activities
and practices under paragraph (1) may consist of ac-
tivities and practices for—
‘‘(A) the establishment, management, main-
tenance, and restoration of forests for shelterbelts,
windbreaks, aesthetic quality, and other con-
servation purposes;
‘‘(B) the sustainable growth and manage-
ment of forests for timber production;
‘‘(C) the restoration, use, and enhancement
of forest wetland and riparian areas;
‘‘(D) the protection of water quality and
watersheds through—
‘‘(i) the planting of trees in riparian
areas; and
‘‘(ii) the enhanced management and
maintenance of native vegetation on land
vital to water quality;
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‘‘(E) the preservation, restoration, or devel-
opment of habitat for plants, fish, and wildlife;
‘‘(F)(i) the control, detection, monitoring,
and prevention of the spread of invasive species
and pests on nonindustrial private forest land;
and
‘‘(ii) the restoration of nonindustrial pri-
vate forest land affected by invasive species and
pests;
‘‘(G) the conduct of other management ac-
tivities, such as the reduction of hazardous fuel
use, that reduce the risks to forests posed by, and
that restore, recover, and mitigate the damage to
forests caused by, fire or any other catastrophic
event, as determined by the Secretary;
‘‘(H) the development of management plans;
‘‘(I) the acquisition by the State of perma-
nent easements to maintain forest cover and pro-
tect important forest values; and
‘‘(J) the conduct of other activities approved
by the Secretary, in consultation with the State
forester and the appropriate Committees.
‘‘(h) FAILURE TO COMPLY.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a procedure to recover cost-share payments made
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under this section in any case in which the recipient
of the payment fails—
‘‘(A) to implement a project or activity in
accordance with the management plan; or
‘‘(B) comply with any requirement of this
section.
‘‘(2) ADDITIONAL
AUTHORITY.—The authority
under paragraph (1) shall be in addition to, and not
in lieu of, any other authority available to the Sec-
retary.
‘‘(i) REPORTS.—
‘‘(1) INTERIM
REPORT.—Not later than 21⁄2
years after the date on which funds are made avail-
able to implement a State priority plan under sub-
section (c), the State implementing the plan shall sub-
mit to the Secretary an interim report describing the
status of projects and activities funded under the plan
as of that date.
‘‘(2) FINAL
REPORT.—Not later than 5 years
after the date on which funds are made available to
implement a State priority plan under subsection (c),
the State implementing the plan shall submit to the
Secretary a final report describing the status of all
projects and activities funded under the plan as of
that date.
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‘‘(j) DISTRIBUTION.—
‘‘(1) 
IN
GENERAL.—The 
Secretary, 
acting
through State foresters, shall distribute funds avail-
able for cost sharing under the program based on a
nationwide funding formula developed under para-
graph (2).
‘‘(2) FORMULA.—In developing the formula re-
ferred to in paragraph (1), the Secretary shall—
‘‘(A) assess public benefits that would result
from the distribution; and
‘‘(B) consider—
‘‘(i) the total acreage of nonindustrial
private forest land in each State;
‘‘(ii) the potential productivity of that
land, as determined by the Secretary;
‘‘(iii) the number of owners eligible for
cost sharing in each State;
‘‘(iv) the opportunities to enhance non-
timber resources on that land, including—
‘‘(I) the protection of riparian
buffers and forest wetland;
‘‘(II) the preservation of fish and
wildlife habitat;
‘‘(III) the enhancement of soil,
air, and water quality; and
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‘‘(IV) the preservation of aesthetic
quality and opportunities for outdoor
recreation;
‘‘(v) the anticipated demand for timber
and nontimber resources in each State;
‘‘(vi) the need to improve forest health
to minimize the damaging effects of cata-
strophic fire, insects, disease, or weather;
‘‘(vii) the need and demand for agro-
forestry practices in each State;
‘‘(viii) the need to maintain and en-
hance the forest landbase; and
‘‘(ix) the need for afforestation, refor-
estation, and timber stand improvement.
‘‘(k) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this section, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of Agriculture to carry
out this section $48,000,000, to remain available
until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
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to carry out this section the funds transferred under
paragraph (1), without further appropriation.’’.
SEC. 807. FOREST LEGACY PROGRAM.
Section 7(l) of the Cooperative Forestry Management
Act of 1978 (16 U.S.C. 2103c(l)) is amended by adding at
the end the following:
‘‘(3) STATE
AUTHORIZATION.—Notwithstanding
any other provision of this Act, a State may author-
ize any local government, or any qualified organiza-
tion that is defined in section 170(h)(3) of the Inter-
nal Revenue Code of 1986 and organized for at least
1 of the purposes described in clause (i), (ii), or (iii)
of section 170(h)(4)(A) of that Code, to acquire in
land in the State, in accordance with this section, 1
or more interests in conservation easements to carry
out the Forest Legacy Program in the State.’’.
SEC. 808. FOREST FIRE RESEARCH CENTERS.
(a) FINDINGS.—Congress finds that—
(1) there is an increasing threat of fire to mil-
lions of acres of forest land and rangeland throughout
the United States;
(2) this threat is especially great in the interior
States of the western United States, where the Forest
Service estimates that 39,000,000 acres of National
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Forest System land are at high risk of catastrophic
wildfire;
(3)(A) the degraded condition of forest land and
rangeland is often the consequence of land manage-
ment practices that emphasize the control and preven-
tion of fires; and
(B) the land management practices disrupted the
occurrence of frequent low-intensity fires that periodi-
cally remove flammable undergrowth;
(4) as a result of the land management
practices—
(A) some forest land and rangeland in the
United States no longer function naturally as
ecosystems; and
(B) drought cycles and the invasion of in-
sects and disease have resulted in vast areas of
dead or dying trees, overstocked stands, and the
invasion of undesirable species;
(5)(A) population movement into wildland-
urban interface areas exacerbate the fire danger;
(B) the increasing number of larger, more in-
tense fires pose grave hazards to human health, safety,
property, and infrastructure in the areas; and
(C) smoke from wildfires, which contain fine
particulate matter and other hazardous pollutants,
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pose substantial health risks to people living in the
areas;
(6)(A) the budgets and resources of Federal,
State, and local entities supporting firefighting efforts
have been stretched to their limits;
(B) according to the Comptroller General, the av-
erage cost of attempting to put out fires in the inte-
rior West grew by 150 percent, from $134,000,000 in
fiscal year 1986 to $335,000,000 in fiscal year 1994;
and
(C) the costs of preparedness, including the costs
of maintaining a readiness force to fight fires, rose
about 70 percent, from $189,000,000 in fiscal year
1992 to $326,000,000 in fiscal year 1997;
(7) diminishing Federal resources (including the
availability of personnel) have limited the ability of
Federal fire researchers—
(A) to respond to management needs; and
(B) to use technological advancements for
analyzing fire management costs;
(8) the Federal fire research program is funded
at approximately 1⁄3 of the amount that is required
to address emerging fire problems, resulting in the
lack of a cohesive strategy to address the threat of cat-
astrophic wildfires; and
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(9) there is a critical need for cost-effective in-
vestments in improved fire management technologies.
(b) FOREST FIRE RESEARCH CENTERS.—The Forest
and Rangeland Renewable Resources Research Act of 1978
(16 U.S.C. 1641 et seq.) is amended by adding at the end
the following:
‘‘SEC. 11. FOREST FIRE RESEARCH CENTERS.
‘‘(a) IN GENERAL.—Subject to the availability of ap-
propriations, the Secretary of Agriculture, acting through
the Chief of the Forest Service (referred to in this section
as the ‘Secretary’) shall establish at least 2 forest fire re-
search centers at institutions of higher education (which
may include research centers in existence on the date of en-
actment of this section) that—
‘‘(1) have expertise in natural resource develop-
ment; and
‘‘(2) are located in close proximity to other Fed-
eral natural resource, forest management, and land
management agencies.
‘‘(b) LOCATIONS.—Of the forest fire research centers es-
tablished under subsection (a)—
‘‘(1) at least 1 center shall be located in Cali-
fornia, Idaho, Montana, Oregon, or Washington; and
‘‘(2) at least 1 center shall be located in Arizona,
Colorado, Nevada, New Mexico, or Wyoming.
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‘‘(c) DUTIES.—At each of the forest fire research cen-
ters established under subsection (a), the Secretary shall
provide for—
‘‘(1) the conduct of integrative, interdisciplinary
research into the ecological, socioeconomic, and envi-
ronmental impact of fire control and the use of man-
agement of ecosystems and landscapes to facilitate fire
control; and
‘‘(2) the development of mechanisms to rapidly
transfer new fire control and management tech-
nologies to fire and land managers.
‘‘(d) ADVISORY COMMITTEE.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Interior, shall establish
a committee composed of fire and land managers and
fire researchers to determine the areas of emphasis
and establish priorities for research projects conducted
at forest fire research centers established under sub-
section (a).
‘‘(2) ADMINISTRATION.—The Federal Advisory
Committee Act (5 U.S.C. App.) and section 102 of the
Agricultural Research, Extension, and Education Re-
form Act of 1998 (7 U.S.C. 7612) shall not apply to
the committee established under paragraph (1).
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section.’’.
SEC. 809. WILDFIRE PREVENTION AND HAZARDOUS FUEL
PURCHASE PILOT PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) the damage caused by wildfire disasters has
been equivalent in magnitude to the damage resulting
from the Northridge earthquake, Hurricane Andrew,
and the recent flooding of the Mississippi River and
the Red River;
(2) more than 20,000 communities in the United
States are at risk from wildfire and approximately
11,000 of those communities are located near Federal
land;
(3) the accumulation of heavy forest fuel loads
continues to increase as a result of disease, insect in-
festations, and drought, further increasing the risk of
fire each year;
(4) modification of forest fuel load conditions
through the removal of hazardous fuels would—
(A) minimize catastrophic damage from
wildfires;
(B) reduce the need for emergency funding
to respond to wildfires; and
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(C) protect lives, communities, watersheds,
and wildlife habitat;
(5) the hazardous fuels removed from forest land
represent an abundant renewable resource, as well as
a significant supply of biomass for biomass-to-energy
facilities;
(6) the United States should invest in tech-
nologies that promote economic and entrepreneurial
opportunities in processing forest products removed
through hazardous fuel reduction activities; and
(7) the United States should—
(A) develop and expand markets for tradi-
tionally underused wood and other biomass as
an outlet for value-added excessive forest fuels;
and
(B) commit resources to support planning,
assessments, and project reviews to ensure that
hazardous fuels management is accomplished ex-
peditiously and in an environmentally sound
manner.
(b) DEFINITIONS.—In this section:
(1) BIOMASS-TO-ENERGY
FACILITY.—The term
‘‘biomass-to-energy facility’’ means a facility that
uses forest biomass or other biomass as a raw mate-
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rial to produce electric energy, useful heat, or a trans-
portation fuel.
(2) ELIGIBLE COMMUNITY.—The term ‘‘eligible
community’’ means—
(A) any town, township, municipality, or
other similar unit of local government (as deter-
mined by the Secretary), or any area represented
by a nonprofit corporation or institution orga-
nized under Federal or State law to promote
broad-based economic development, that—
(i) has a population of not more than
10,000 individuals;
(ii) is located within a county in
which at least 15 percent of the total pri-
mary and secondary labor and proprietor
income is derived from forestry, wood prod-
ucts, and forest-related industries, such as
recreation, forage production, and tourism;
and
(iii) is located near forest land, the
condition of which land the Secretary deter-
mines poses a substantial present or poten-
tial hazard to—
(I) the safety of a forest ecosystem;
(II) the safety of wildlife; or
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(III) in the case of a wildfire, the
safety of firefighters, other individuals,
and communities; and
(B) any county that is not contained within
a metropolitan statistical area that meets the
conditions described in clauses (ii) and (iii) of
subparagraph (A).
(3) FOREST
BIOMASS.—The term ‘‘forest bio-
mass’’ means fuel and biomass accumulation from
precommercial thinnings, slash, and brush on forest
land.
(4) HAZARDOUS
FUEL.—The term ‘‘hazardous
fuel’’ means any excessive accumulation of forest bio-
mass or other biomass on public or private forest land
in the wildland-urban interface (as defined by the
Secretary) that—
(A) is located near an eligible community;
(B) is designated as condition class 2 or 3
under the report of the Forest Service entitled
‘‘Protecting People and Sustainable Resources in
Fire-Adapted Ecosystems’’, dated October 13,
2000) (including any related maps); and
(C) the Secretary determines poses a sub-
stantial present or potential hazard to—
(i) the safety of a forest ecosystem;
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(ii) the safety of wildlife; or
(iii) in the case of wildfire, the safety
of firefighters, other individuals, and com-
munities.
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
(6) NATIONAL FIRE PLAN.—The term ‘‘National
Fire Plan’’ means the plan prepared by the Secretary
of Agriculture and the Secretary of the Interior enti-
tled ‘‘Managing the Impact of Wildfires on Commu-
nities and the Environment’’ and dated September 8,
2000.
(7) PERSON.—The term ‘‘person’’ includes—
(A) a community;
(B) an Indian tribe;
(C) a small business, microbusiness, or
other business that is incorporated in the United
States; and
(D) a nonprofit organization.
(8) 
SECRETARY.—The 
term 
‘‘Secretary’’
means—
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(A) the Secretary of Agriculture (or a des-
ignee), with respect to National Forest System
land and private land in the United States; and
(B) the Secretary of the Interior (or a des-
ignee) with respect to Federal land under the ju-
risdiction of the Secretary of the Interior or an
Indian tribe.
(c) WILDFIRE PREVENTION AND HAZARDOUS FUEL
PURCHASE PILOT PROGRAM.—
(1) GRANTS.—
(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Secretary may
make grants to—
(i) persons that operate existing or new
biomass-to-energy facilities to offset the costs
incurred by those persons in purchasing
hazardous fuels derived from public and
private forest land adjacent to eligible com-
munities; and
(ii) persons in rural communities that
are seeking ways to improve the use of, or
add value to, hazardous fuels.
(B) SELECTION CRITERIA.—The Secretary
shall select recipients for grants under subpara-
graph (A)(i) based on—
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(i) planned purchases by the recipients
of hazardous fuels, as demonstrated by the
recipient through the submission to the Sec-
retary of such assurances as the Secretary
may require;
(ii) the level of anticipated benefits of
those purchases in reducing the risk of
wildfires;
(iii) the extent to which the biomass-to-
energy facility avoids adverse environ-
mental impacts, including cumulative im-
pacts, over the expected life of the biomass-
to-energy facility; and
(iv) the demonstrable level of antici-
pated benefits for eligible communities, in-
cluding the potential to develop thermal or
electric energy resources or affordable energy
for communities.
(2) GRANT AMOUNTS.—
(A) IN GENERAL.—A grant under subpara-
graph (A)(i) shall—
(i) be based on—
(I) the distance required to trans-
port hazardous fuels to a biomass-to-
energy facility; and
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(II) the cost of removal of haz-
ardous fuels; and
(ii) be in an amount that is at least
equal 
to 
the 
product 
obtained 
by
multiplying—
(I) the number of tons of haz-
ardous fuels delivered to a grant re-
cipient; by
(II) an amount that is at least $5
but not more than $10 per ton of haz-
ardous fuels, as determined by the Sec-
retary taking into consideration the
factors described in clause (i).
(B) LIMITATION ON INDIVIDUAL GRANTS.—
(i) IN GENERAL.—Except as provided
in clause (ii), a grant under subparagraph
(A) shall not exceed $1,500,000 for any bio-
mass-to-energy facility for any fiscal year.
(ii) SMALL
BIOMASS-TO-ENERGY
FA-
CILITIES.—A biomass-to-energy facility that
has an annual production of 5 megawatts
or less shall not be subject to the limitation
under clause (i).
(3) MONITORING OF GRANT RECIPIENT ACTIVI-
TIES.—
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(A) IN GENERAL.—As a condition of receipt
of a grant under this subsection, a grant recipi-
ent shall keep such records as the Secretary may
require, including records that—
(i) completely and accurately disclose
the use of grant funds; and
(ii) describe all transactions involved
in the purchase of hazardous fuels derived
from forest land.
(B) ACCESS.—On notice by the Secretary,
the operator of a biomass-to-energy facility that
purchases or uses hazardous fuels with funds
from a grant under this subsection shall provide
the Secretary with—
(i) reasonable access to the biomass-to-
energy facility; and
(ii) an opportunity to examine the in-
ventory and records of the biomass-to-energy
facility.
(4) MONITORING OF EFFECT OF TREATMENTS.—
(A) IN GENERAL.—To determine and docu-
ment the environmental impact of hazardous fuel
removal, the Secretary shall monitor—
(i) environmental impacts of activities
carried out under this subsection; and
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(ii) Federal land from which haz-
ardous fuels are removed and sold to a bio-
mass-to-energy facility under this sub-
section.
(B) EMPLOYMENT.—
(i) IN
GENERAL.—The Comptroller
General 
of 
the 
United 
States 
shall
monitor—
(I) the number of jobs created in
or near eligible communities as a re-
sult of the implementation of this sub-
section;
(II) the opportunities created for
small businesses and microbusinesses
as a result of the implementation of
this subsection;
(III) the types and amounts of en-
ergy supplies created as a result of the
implementation of this subsection; and
(IV) energy prices for eligible
communities.
(ii) REPORT.—Beginning in fiscal
year 2003, the Comptroller General of the
United States shall submit to the Committee
on Energy and Natural Resources and the
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Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee
on Resources and the Committee on Agri-
culture of the House of Representatives an
annual report that describes the informa-
tion obtained through monitoring under
clause (i).
(5) REVIEW AND REPORT.—
(A) IN
GENERAL.—Not later than Sep-
tember 30, 2004, the Comptroller General shall
submit to each of the committees described in
paragraph (4)(B)(ii) a report that describes the
results and effectiveness of the pilot program.
(B) REPORTS
BY
SECRETARY.—The Sec-
retary shall submit to each of the committees de-
scribed in paragraph (4)(B)(ii) an annual re-
port describing the results of the pilot program
that includes—
(i) an identification of the size of each
biomass-to-energy facility that receives a
grant under this section; and
(ii) the haul radius associated with
each grant.
(C) TECHNICAL FEASIBILITY REPORT.—Not
later than December 1, 2003, the Secretary of
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Agriculture, in cooperation with the Forest Prod-
ucts Lab and the Economic Action Program of
the Forest Service, shall submit to each of the
committees described in paragraph (4)(B)(ii) a
report that describes—
(i) the technical feasibility of the use
by small-scale biomass energy units of
small-diameter trees and forest residues as a
source of fuel;
(ii) the environmental impacts relating
to the use of small-diameter trees and forest
residues as described in clause (i); and
(iii) any social or economic benefits of
small-scale biomass energy units for rural
communities.
(6) GRANTS TO OTHER PERSONS.—
(A) IN GENERAL.—In addition to biomass-
to-energy facilities, the Secretary may make
grants under this subsection to persons in rural
communities that are seeking ways to improve
the use of, or add value to, hazardous fuels.
(B) SELECTION.—The Secretary shall select
recipients of grants under subparagraph (A)
based on—
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(i) the extent to which the grant recipi-
ent avoids environmental impacts; and
(ii) the demonstrable level of antici-
pated benefits to rural communities, includ-
ing opportunities for small businesses and
microbusinesses and the potential for new
job creation, that may result from the provi-
sion of the grant.
(C) MONITORING.—With respect to a grant
made under this paragraph—
(i) the monitoring provisions described
in paragraph (3) and applicable to bio-
mass-to-energy facilities shall apply; and
(ii) the Secretary shall monitor the en-
vironmental impacts of projects funded by
grants provided under this paragraph.
(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $50,000,000 for each of fiscal years
2002 through 2006.
(d) LONG-TERM FOREST STEWARDSHIP CONTRACTS
FOR HAZARDOUS FUELS REMOVAL.—
(1) ANNUAL ASSESSMENT OF TREATMENT ACRE-
AGE.—
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(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, not later than March
1 of each of fiscal years 2002 through 2006, the
Secretary shall submit to Congress an assessment
of the number of acres of National Forest System
land recommended to be treated during the sub-
sequent fiscal year using stewardship end result
contracts authorized by paragraph (3).
(B) COMPONENTS.—The assessment shall—
(i) be based on the treatment schedules
contained in the report entitled ‘‘Protecting
People and Sustaining Resources in Fire-
Adapted Ecosystems’’, dated October 13,
2000, and incorporated into the National
Fire Plan;
(ii) identify the acreage by condition
class, type of treatment, and treatment year
to achieve the restoration goals outlined in
the report within 10-, 15-, and 20-year time
periods;
(iii) give priority to condition class 3
areas (as described in subsection (b)(4)(B)),
including modifications in the restoration
goals based on the effects of—
(I) fire;
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(II) hazardous fuel treatments
under the National Fire Plan; or
(III) updates in data;
(iv) provide information relating to the
type of material and estimated quantities
and range of sizes of material that shall be
included in the treatments;
(v) describe the land allocation cat-
egories in which the contract authorities
shall be used; and
(vi) give priority to areas described in
subsection (b)(4)(A).
(2) FUNDING RECOMMENDATION.—The Secretary
shall include in the annual assessment under para-
graph (1) a request for funds sufficient to implement
the recommendations contained in the assessment
using stewardship end result contracts described in
paragraph (3) in any case in which the Secretary de-
termines that the objectives of the National Fire Plan
would best be accomplished through forest stewardship
end result contracting.
(3) STEWARDSHIP END RESULT CONTRACTING.—
(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Secretary may
enter into not more than 28 stewardship end re-
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sult contracts to implement the National Fire
Plan on National Forest System land based on
the treatment schedules provided in the annual
assessments 
conducted 
under 
paragraph
(1)(B)(i).
(B) PERIOD
OF
CONTRACTS.—The con-
tracting goals and authorities described in sub-
sections (b) through (g) of section 347 of the De-
partment of the Interior and Related Agencies
Appropriations Act, 1999 (commonly known as
the ‘‘Stewardship End Result Contracting Dem-
onstration Project’’) (16 U.S.C. 2104 note; Pub-
lic Law 105–277), shall apply to contracts en-
tered into under this paragraph, except that 14
of the 28 contracts entered into under subpara-
graph (A) shall be subject to the conditions
that—
(i) funds from the contract, and any
offset value of forest products that exceeds
the value of the resource improvement treat-
ments carried out under the contract, shall
be deposited in the Treasury of the United
States;
(ii) section 347(c)(3)(A) of the Depart-
ment of the Interior and Related Agencies
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Appropriations 
Act, 
1999 
(commonly
known as the ‘‘Stewardship End Result
Contracting Demonstration Project’’) (16
U.S.C. 2104 note; Public Law 105–277)
shall not apply to those contracts; and
(iii) the implementation shall be ac-
complished using separate contracts for the
harvesting or collection, and sale, of mer-
chantable material.
(C) STATUS REPORT.—Beginning with the
assessment required under paragraph (1) for fis-
cal year 2003, the Secretary shall include in the
annual assessment under paragraph (1) a status
report of the stewardship end result contracts en-
tered into under this paragraph.
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of
fiscal years 2002 through 2006.
(e) EXCLUDED AREAS.—In carrying out this section,
the Secretary shall—
(1) because of sensitivity of natural, cultural, or
historical resources, designate areas to be excluded
from any program under this section; and
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(2) carry out this section only in the wildland-
urban interface, as defined by the Secretary.
(f) TERMINATION OF AUTHORITY.—The authority pro-
vided under this section shall terminate on September 30,
2006.
SEC. 810. CHESAPEAKE BAY WATERSHED FORESTRY PRO-
GRAM.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 9 (16 U.S.C. 2105) the
following:
‘‘SEC. 9A. CHESAPEAKE BAY WATERSHED FORESTRY PRO-
GRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) AGREEMENT.—The term ‘Agreement’ means
the Chesapeake 2000 Agreement, an interstate agree-
ment the purpose of which is to correct the nutrient-
related problems in the Chesapeake Bay by 2010.
‘‘(2) BAY-AREA STATE.—
‘‘(A) IN
GENERAL.—The term ‘Bay-area
State’ means a State any part of which is lo-
cated in the watershed of the Chesapeake Bay.
‘‘(B) 
INCLUSION.—The 
term 
‘Bay-area
State’ includes the District of Columbia.
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‘‘(3) CHESAPEAKE BAY EXECUTIVE COUNCIL.—
The term ‘Council’ means the Chesapeake Bay Execu-
tive Council.
‘‘(4) DIRECTOR.—The term ‘Director’ means the
Director of Chesapeake Bay watershed forestry efforts
designated under subsection (b)(2)(A).
‘‘(5) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
‘‘(A) the government of a Bay-area State
(or a political subdivision); and
‘‘(B) an organization such as an edu-
cational institution or a community or conserva-
tion organization.
‘‘(6) ELIGIBLE
PROJECT.—The term ‘eligible
project’ means a project the purpose of which is to—
‘‘(A) improve wildlife habitat and water
quality through the establishment, protection,
and stewardship of riparian and wetland forests;
‘‘(B) improve the capacity of a State or
nonprofit organization to implement forest con-
servation, restoration, and stewardship actions;
‘‘(C) develop and implement a watershed
management plan that addresses forest conserva-
tion and restoration actions;
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‘‘(D) provide outreach and assistance to
private landowners and communities to restore
or protect watersheds through the enhancement of
forests;
‘‘(E) develop and implement communica-
tion, education, or technology transfer programs
that broaden public understanding of the value
of trees and forests and management of trees and
forests in sustaining and restoring watershed
health; and
‘‘(F) conduct applied research, inventory,
assessment, or monitoring activities.
‘‘(7) PROGRAM.—The term ‘program’ means the
Chesapeake Bay watershed forestry program estab-
lished under subsection (b)(1).
‘‘(8) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Chief
of the Forest Service.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
the Chesapeake Bay watershed forestry program to
provide technical and financial assistance to the
Council, Bay-area States, local governments, and
nonprofit organizations to carry out eligible projects.
‘‘(2) DIRECTOR.—
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‘‘(A) IN
GENERAL.—The Secretary shall
designate an employee of the Forest Service to
serve as the Director for Chesapeake Bay water-
shed forestry efforts.
‘‘(B) DUTIES.—The Director shall work in
cooperation with the Secretary to carry out the
purposes of the program described in paragraph
(1).
‘‘(c) CHESAPEAKE WATERSHED FORESTRY GRANTS.—
‘‘(1) IN
GENERAL.—In carrying out the pro-
gram, the Secretary, in coordination with the Direc-
tor, may provide grants to assist eligible entities in
carrying out eligible projects.
‘‘(2) COST SHARING.—The amount of a grant
awarded under this subsection shall not exceed 75
percent of the total cost of the eligible project.
‘‘(3) ADDITIONAL
REQUIREMENTS.—The Sec-
retary, in consultation with the Director, may pre-
scribe any requirements and procedures necessary to
carry out this subsection.
‘‘(d) CHESAPEAKE WATERSHED FOREST ASSESSMENT
AND CONSERVATION STUDY.—
‘‘(1) IN GENERAL.—The Director, in cooperation
with the Council, shall conduct a Chesapeake Bay wa-
tershed forestry research and assessment study that—
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‘‘(A) assesses the extent and location of for-
est loss and fragmentation;
‘‘(B) identifies critical forest land that
should be protected to achieve the purposes of the
Agreement;
‘‘(C) prioritizes afforestation needs;
‘‘(D) recommends—
‘‘(i) management strategies based on
actions carried out and information ob-
tained under subparagraphs (A) through
(C) to expand conservation and stewardship
of the forest ecosystem in the Chesapeake
Bay watershed; and
‘‘(ii) ways in which the Federal Gov-
ernment can work with State, county, local,
and private entities to conserve critical for-
ests, including recommendations on the fea-
sibility of establishing new units of the Na-
tional Forest System; and
‘‘(E) identifies further inventory, assess-
ment, and research needed to achieve the pur-
poses of the Agreement.
‘‘(2) REPORT.—Not later than 2 years after the
date of enactment of this section, the Director shall
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submit to Congress a comprehensive report on the re-
sults of the study under paragraph (1).
‘‘(e) CHESAPEAKE BAY URBAN WATERSHED FOR-
ESTRY RESEARCH COOPERATIVE PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with the Director, may establish a comprehensive
Chesapeake Bay urban watershed forestry research co-
operative program to provide technical and financial
assistance to eligible entities.
‘‘(2) PURPOSES.—The purposes of the coopera-
tive program shall be—
‘‘(A) to meet the need of the urban popu-
lation of the Chesapeake Bay watershed in man-
aging forest land in urban and urbanizing areas
through a combination of—
‘‘(i) applied research;
‘‘(ii) demonstration projects;
‘‘(iii) implementation guidelines; and
‘‘(iv) training and education;
‘‘(B) to coalesce information from local
managers, Federal, State, and private research-
ers, and state-of-the-art technology to answer
critical urban forestry questions relating to air
and water quality and watershed health; and
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‘‘(C) to provide a link between research and
urban and community forestry policy, planning,
and management.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section—
‘‘(1) $3,000,000 for fiscal year 2002; and
‘‘(2) $3,500,000 for each of fiscal years 2003
through 2006.’’.
SEC. 811. ENHANCED COMMUNITY FIRE PROTECTION.
(a) FINDINGS.—Congress finds that—
(1) the severity and intensity of wildfires have
increased dramatically over the past few decades as a
result of past fire and land management policies;
(2) the record 2000 fire season is a prime exam-
ple of what can be expected if action is not taken to
reduce the risk of catastrophic wildfires;
(3) wildfires threaten not only the forested re-
sources of the United States, but also the thousands
of communities intermingled with wildland in the
wildland-urban interface;
(4) wetland forests provide essential ecological
services, such as filtering pollutants, buffering impor-
tant rivers and estuaries, and minimizing flooding,
that make the protection and restoration of those for-
ests worthy of special focus;
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(5) the National Fire Plan, if implemented to
achieve appropriate priorities, is the proper, coordi-
nated, and most effective means to address the issue
of wildfires;
(6) while adequate authorities exist to address
the problem of wildfires at the landscape level on Fed-
eral land, there is limited authority to take action on
most private land where the largest threat to life and
property lies; and
(7) there is a significant Federal interest in en-
hancing the protection of communities from wildfire.
(b) ENHANCED COMMUNITY FIRE PROTECTION.—The
Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 10 (16 U.S.C. 2106) the following:
‘‘SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.
‘‘(a) COOPERATIVE MANAGEMENT RELATING TO WILD-
FIRE THREATS.—Notwithstanding section 7 of the Federal
Fire Prevention and Control Act of 1974 (15 U.S.C. 2206),
the Secretary may cooperate with State foresters and equiv-
alent State officials to—
‘‘(1) assist in the prevention, control, suppres-
sion, and prescribed use of fires (including through
the provision of financial, technical, and related as-
sistance);
‘‘(2) protect communities from wildfire threats;
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‘‘(3) enhance the growth and maintenance of
trees and forests in a manner that promotes overall
forest health; and
‘‘(4) ensure the continued production of all forest
resources, including timber, outdoor recreation oppor-
tunities, wildlife habitat, and clean water, through
conservation of forest cover on watersheds, shelterbelts,
and windbreaks.
‘‘(b) COMMUNITY AND PRIVATE LAND FIRE ASSIST-
ANCE PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a program to be known as the ‘community and pri-
vate land fire assistance program’ (referred to in this
section as the ‘Program’)—
‘‘(A) to focus the Federal role in promoting
optimal firefighting efficiency at the Federal,
State, and local levels;
‘‘(B) to provide increased assistance to Fed-
eral projects that establish landscape level protec-
tion from wildfires;
‘‘(C) to expand outreach and education pro-
grams concerning fire prevention to homeowners
and communities; and
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‘‘(D) to establish defensible space against
wildfires around the homes and property of pri-
vate landowners.
‘‘(2) ADMINISTRATION AND IMPLEMENTATION.—
The Program shall be administered by the Secretary
and, with respect to non-Federal land described in
paragraph (3), carried out through the State forester
or equivalent State official.
‘‘(3) COMPONENTS.—The Secretary may carry
out under the Program, on National Forest System
land and non-Federal land determined by the Sec-
retary in consultation with State foresters and
Committees—
‘‘(A) fuel hazard mitigation and prevention;
‘‘(B) invasive species management;
‘‘(C) multiresource wildfire and community
protection planning;
‘‘(D) community and landowner education
enterprises, including the program known as
‘FIREWISE’;
‘‘(E) market development and expansion;
‘‘(F) improved use of wood products; and
‘‘(G) restoration projects.
‘‘(4) PRIORITY.—In entering into contracts to
carry out projects under the Program, the Secretary
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shall give priority to contracts with local persons or
entities.
‘‘(c) AUTHORITY.—The authority provided under this
section shall be in addition to any authority provided under
section 10.
‘‘(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary to carry
out this section $35,000,000 for each of fiscal years 2002
through 2006.’’.
SEC. 812. WATERSHED FORESTRY ASSISTANCE PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) there has been a dramatic shift in public at-
titudes and perceptions about forest management,
particularly in the understanding and practice of
sustainable forest management;
(2) it is commonly recognized that proper stew-
ardship of forest land is essential to—
(A) sustain and restore watershed health;
(B) produce clean water; and
(C) maintain healthy aquatic systems;
(3) forests are increasingly important to the pro-
tection and sustainability of drinking water supplies
for more than 1/2 of the population of the United
States;
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(4) forest loss and fragmentation in urbanizing
areas are contributing to flooding, degradation of
urban stream habitat and water quality, and public
health concerns;
(5) scientific evidence and public awareness with
respect to the manner in which forest management
can positively affect water quality and quantity, and
the manner in which trees, forests, and forestry prac-
tices (such as forest buffers) can serve as solutions to
water quality problems in rural and urban areas, are
increasing;
(6) the application of forestry best management
practices developed at the State level has been found
to greatly facilitate the achievement of water quality
goals;
(7) significant efforts are underway to revisit
and make improvements on needed forestry best man-
agement practices;
(8) according to the report of the Forest Service
numbered FS–660 and entitled ‘‘Water and the Forest
Service’’, forests are a requirement for maintenance of
clean water because—
(A) approximately 66 percent of the fresh-
water resources of the United States originate on
forests; and
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(B) forests cover approximately 1/3 of the
land area of the United States;
(9) because almost 500,000,000 acres, or ap-
proximately 2/3, of the forest land of the United
States is owned by non-Federal entities, a significant
burden is placed on private forest landowners to pro-
vide or maintain the clean water needed by the public
for drinking, swimming, fishing, and a number of
other water uses;
(10) because the decisions made by individual
landowners and communities will affect the ability to
maintain the health of rural and urban watersheds in
the future, there is a need to integrate forest manage-
ment, conservation, restoration, and stewardship in
watershed management;
(11) although water management is the primary
responsibility of States, the Federal Government has
a responsibility to promote and encourage the ability
of States and private forest landowners to sustain the
delivery of clean, abundant water from forest land;
(12) as of the date of enactment of this Act, the
availability of Federal assistance to support forest
landowners to achieve the water goals identified in
many Federal laws (including regulations) is lacking;
and
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(13) increased research for, education for, and
technical and financial assistance provided to, forest
landowners and communities that relate to the protec-
tion of watersheds and improvement of water quality,
are needed to realize the expectations of the general
public for clean water and healthy aquatic systems.
(b) PURPOSES.—The purposes of this section are to—
(1) improve the understanding of landowners
and the public with respect to the relationship be-
tween water quality and forest management;
(2) encourage landowners to maintain tree cover
and use tree plantings and vegetative treatments as
creative solutions to water quality and quantity prob-
lems associated with varying land uses;
(3) enhance and complement source water protec-
tion in watersheds that provide drinking water for
municipalities;
(4) establish new partnerships and collaborative
watershed approaches to forest management, steward-
ship, and protection; and
(5) provide technical and financial assistance to
States to deliver a coordinated program that through
the provision of technical, financial, and educational
assistance to qualified individuals and entities—
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(A) enhances State forestry best manage-
ment practices programs; and
(B) protects and improves water quality on
forest land.
(c) PROGRAM.—The Cooperative Forestry Assistance
Act of 1978 is amended by inserting after section 5A (as
added by section 805) the following:
‘‘SEC. 5B. WATERSHED FORESTRY ASSISTANCE PROGRAM.
‘‘(a) ESTABLISHMENT.—Subject to the availability of
appropriations, the Secretary shall establish a watershed
forestry assistance program (referred to in this section as
the ‘program’) to provide to States, through State foresters
(as defined in section 6A), technical, financial, and related
assistance to—
‘‘(1) expand forest stewardship capacities and
activities through State forestry best management
practices and other means at the State level; and
‘‘(2) prevent water quality degradation, and ad-
dress watershed issues, on non-Federal forest land.
‘‘(b) WATERSHED FORESTRY EDUCATION, TECHNICAL
ASSISTANCE, AND PLANNING.—
‘‘(1) PLAN.—
‘‘(A) IN
GENERAL.—In carrying out the
program, the Secretary shall cooperate with
State foresters to develop a plan, to be adminis-
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tered by the Secretary and implemented by State
foresters, to provide technical assistance to assist
States in preventing and mitigating water qual-
ity degradation.
‘‘(B) PARTICIPATION.—In developing the
plan under subparagraph (A), the Secretary
shall encourage participation of interested mem-
bers of the public (including nonprofit private
organizations and local watershed councils).
‘‘(2) COMPONENTS.—The plan described in para-
graph (1) shall include provisions to—
‘‘(A) build and strengthen watershed part-
nerships focusing on forest land at the national,
State, regional, and local levels;
‘‘(B) provide State forestry best manage-
ment practices and water quality technical as-
sistance directly to private landowners;
‘‘(C) provide technical guidance relating to
water quality management through forest man-
agement in degraded watersheds to land man-
agers and policymakers;
‘‘(D)(i) complement State nonpoint source
assessment and management plans established
under section 319 of the Federal Water Pollution
Control Act (33 U.S.C. 1329); and
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‘‘(ii) provide enhanced opportunities for co-
ordination and cooperation among Federal and
State agencies having responsibility for water
and watershed management under that Act; and
‘‘(E) provide enhanced forest resource data
and support for improved implementation of
State 
forestry 
best 
management 
practices,
including—
‘‘(i) designing and conducting effective-
ness and implementation studies; and
‘‘(ii) meeting in-State water quality
assessment needs, such as the development of
water quality models that correlate the
management of forest land to water quality
measures and standards.
‘‘(c) WATERSHED
FORESTRY
COST-SHARE
PRO-
GRAM.—
‘‘(1) ESTABLISHMENT.—In carrying out the pro-
gram, the Secretary shall establish a watershed for-
estry cost-share program, to be administered by the
Secretary and implemented by State foresters, to pro-
vide grants and other assistance for eligible programs
and projects described in paragraph (2).
‘‘(2) ELIGIBLE
PROGRAMS
AND
PROJECTS.—A
community, nonprofit group, or landowner may re-
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ceive a grant or other assistance under this subsection
to carry out a State forestry best management prac-
tices program or a watershed forestry project if the
program or project, as determined by the Secretary—
‘‘(A) is consistent with—
‘‘(i) State nonpoint source assessment
and management plan objectives established
under section 319 of the Federal Water Pol-
lution Control Act (33 U.S.C. 1329); and
‘‘(ii) the cost-share requirements of this
section; and
‘‘(B) is designed to address critical forest
stewardship, watershed protection, and restora-
tion needs of a State through—
‘‘(i) the use of trees and forests as solu-
tions to water quality problems in urban
and agricultural areas;
‘‘(ii) community-based planning, in-
volvement, and action through State, local
and nonprofit partnerships;
‘‘(iii) the application of and dissemi-
nation of information on forestry best man-
agement practices relating to water quality;
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‘‘(iv) watershed-scale forest manage-
ment activities and conservation planning;
and
‘‘(v) the restoration of wetland and
stream side forests and establishment of ri-
parian vegetative buffers.
‘‘(3) ALLOCATION.—
‘‘(A) IN GENERAL.—After taking into con-
sideration the criteria described in subparagraph
(B), the Secretary shall allocate among States,
for award by State foresters under paragraph
(4), the amounts made available to carry out
this subsection.
‘‘(B) CRITERIA.—The criteria referred to in
subparagraph (A) are—
‘‘(i) the number of acres of forest land,
and land that could be converted to forest
land, in each State;
‘‘(ii) the nonpoint source assessment
and management plans of each State, as de-
veloped under section 319 of the Federal
Water Pollution Control Act (33 U.S.C.
1329);
‘‘(iii) the acres of wetland forests that
have been lost or degraded or cases in which
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forests may play a role in restoring wetland
resources;
‘‘(iv) the number of non-Federal forest
landowners in each State; and
‘‘(v) the extent to which the priorities
of States are designed to achieve a reason-
able range of the purposes of the program
and, as a result, contribute to the water-re-
lated goals of the United States.
‘‘(4) AWARD OF GRANTS AND ASSISTANCE.—
‘‘(A) IN
GENERAL.—In implementing the
program under this subsection, the State forester,
in coordination with the State Coordinating
Committee established under section 19(b), shall
provide annual grants and cost-share assistance
to communities, nonprofit groups, and land-
owners to carry out eligible programs and
projects described in paragraph (2).
‘‘(B) APPLICATION.—A community, non-
profit group, or landowner that seeks to receive
cost-share assistance under this subsection shall
submit to the State forester an application, in
such form and containing such information as
the State forester may prescribe, for the assist-
ance.
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‘‘(C) PRIORITIZATION.—In awarding cost-
share assistance under this subsection, the Sec-
retary shall give priority to eligible programs
and projects that are identified by the State for-
esters and the State Stewardship Committees as
having a greater need for assistance.
‘‘(D) AWARD.—On approval by the Sec-
retary of an application under subparagraph
(B), the State forester shall award to the appli-
cant, from funds allocated to the State under
paragraph (3), such amount of cost-share assist-
ance as is requested in the application.
‘‘(5) COST SHARING.—
‘‘(A) FEDERAL SHARE.—The Federal share
of the cost of carrying out any eligible program
or project under this subsection shall not exceed
75 percent, of which not more than 50 percent
may be in the form of assistance provided under
this subsection.
‘‘(B) NON-FEDERAL SHARE.—The non-Fed-
eral share of the cost of carrying out any eligible
program or project under this subsection may be
provided in the form of cash, services, or in-kind
contributions.
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‘‘(d) WATERSHED FORESTER.—A State may use a
portion of the funds made available to the State under sub-
section (e) to establish and fill a position of ‘Watershed For-
ester’ to lead State-wide programs and coordinate water-
shed-level projects.
‘‘(e) FUNDING.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to carry out this section $20,000,000 for
each of fiscal years 2002 through 2006.
‘‘(2) ALLOCATION.—Of the funds made available
under paragraph (1)—
‘‘(A) 75 percent shall be used to carry out
subsection (c); and
‘‘(B) 25 percent shall be used to carry out
provisions of this section other than subsection
(c).’’.
SEC. 813. SUBURBAN AND COMMUNITY FORESTRY AND
OPEN SPACE INITIATIVE.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 7 (16 U.S.C. 2103c) the
following:
‘‘SEC. 7A. SUBURBAN AND COMMUNITY FORESTRY AND
OPEN SPACE INITIATIVE.
‘‘(a) DEFINITIONS.—In this section:
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‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means a State (including a political subdivision)
or nonprofit organization that the Secretary deter-
mines under subsection (c)(1)(A)(ii) is eligible to re-
ceive a grant under subsection (c)(2).
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(3) PRIVATE FOREST LAND.—The term ‘private
forest land’ means land that is—
‘‘(A)(i) covered by trees; or
‘‘(ii) suitable for growing trees, as deter-
mined by the Secretary;
‘‘(B) suburban, as determined by the Sec-
retary; and
‘‘(C) owned by—
‘‘(i) a private entity; or
‘‘(ii) an Indian tribe.
‘‘(4) PROGRAM.—The term ‘program’ means the
Suburban and Community Forestry and Open Space
Initiative established by subsection (b).
‘‘(5) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Chief
of the Forest Service.
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‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—There is established within
the Forest Service a program to be known as the
‘Suburban and Community Forestry and Open Space
Initiative’.
‘‘(2) PURPOSE.—The purpose of the program is
to provide assistance to eligible entities to carry out
projects and activities to—
‘‘(A) conserve private forest land and main-
tain working forests in suburban environments;
and
‘‘(B) provide communities a means by
which to address significant suburban sprawl.
‘‘(c) GRANT PROGRAM.—
‘‘(1) IDENTIFICATION OF ELIGIBLE PRIVATE FOR-
EST LAND.—
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with State foresters or equivalent State
officials and State or county planning offices,
shall establish criteria for—
‘‘(i) the identification, subject to sub-
paragraph (B), of private forest land in
each State that may be conserved under this
section; and
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‘‘(ii) the identification of eligible enti-
ties.
‘‘(B) CONDITIONS
FOR
ELIGIBLE
PRIVATE
FOREST LAND.—Private forest land identified for
conservation under subparagraph (A)(i) shall be
land that is—
‘‘(i) located in an area that is affected,
or threatened to be affected, by significant
suburban sprawl, as determined by—
‘‘(I) the appropriate State forester
or equivalent State official; and
‘‘(II) the planning office of the
State or county in which the private
forest land is located; and
‘‘(ii) threatened by present or future
conversion to nonforest use.
‘‘(2) GRANTS.—
‘‘(A) PROJECTS AND ACTIVITIES.—
‘‘(i) IN
GENERAL.—In carrying out
this section, the Secretary shall award
grants to eligible entities to carry out a
project or activity described in clause (ii).
‘‘(ii) TYPES.—A project or activity re-
ferred to in clause (i) is a project or activ-
ity that—
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‘‘(I) is carried out to conserve pri-
vate forest land and contain signifi-
cant suburban sprawl; and
‘‘(II) provides for guaranteed pub-
lic access to land on which the project
or activity is carried out, unless the
appropriate State forester or equiva-
lent State official and the State or
county planning office request, and
provide justification for the request,
that the requirement be waived.
‘‘(B) APPLICATION; STEWARDSHIP PLAN.—
An eligible entity that seeks to receive a grant
under this section shall submit for approval—
‘‘(i) to the Secretary, in such form as
the Secretary shall prescribe, an application
for the grant (including a description of
any private forest land to be conserved
using funds from the grant); and
‘‘(ii) to the State forester or equivalent
State official, a stewardship plan that de-
scribes the manner in which any private
forest land to be conserved using funds from
the grant will be managed in accordance
with this section.
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‘‘(C) APPROVAL OR DISAPPROVAL.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), as soon as practicable after the date on
which the Secretary receives an application
under subparagraph (B)(i) or a resubmis-
sion under subclause (II)(bb), the Secretary
shall—
‘‘(I)(aa) approve the application;
and
‘‘(bb) award a grant to the appli-
cant; or
‘‘(II)(aa) disapprove the applica-
tion; and
‘‘(bb) provide the applicant a
statement that describes the reasons
why the application was disapproved
(including a deadline by which the ap-
plicant may resubmit the application).
‘‘(ii) PRIORITY.—In awarding grants
under this section, the Secretary shall give
priority to applicants that propose to fund
projects and activities that promote, in ad-
dition to the primary purposes of con-
serving private forest land and containing
significant suburban sprawl—
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‘‘(I) the sustainable management
of private forest land;
‘‘(II) community and school edu-
cation programs and curricula relating
to sustainable forestry; and
‘‘(III) community involvement in
determining the objectives for projects
or activities that are funded under this
section.
‘‘(3) COST SHARING.—
‘‘(A) IN GENERAL.—The amount of a grant
awarded under this section to carry out a project
or activity shall not exceed 50 percent of the
total cost of the project or activity.
‘‘(B) ASSURANCES.—As a condition of re-
ceipt of a grant under this section, an eligible
entity shall provide to the Secretary such assur-
ances as the Secretary determines are sufficient
to demonstrate that the share of the cost of each
project or activity that is not funded by the
grant awarded under this section has been se-
cured.
‘‘(C) FORM.—The share of the cost of car-
rying out any project or activity described in
subparagraph (A) that is not funded by a grant
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awarded under this section may be provided in
cash or in kind.
‘‘(d) USE OF GRANT FUNDS FOR PURCHASES OF LAND
OR EASEMENTS.—
‘‘(1) PURCHASES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), funds made available, and
grants awarded, under this section may be used
to purchase private forest land or interests in
private forest land (including conservation ease-
ments) only from willing sellers at fair market
value.
‘‘(B) SALES AT LESS THAN FAIR MARKET
VALUE.—A sale of private forest land or an in-
terest in private forest land at less than fair
market value shall be permitted only on certifi-
cation by the landowner that the sale is being
entered into willingly and without coercion.
‘‘(2) TITLE.—Title to private forest land or an
interest in private forest land purchased under para-
graph (1) may be held, as determined appropriate by
the Secretary, by—
‘‘(A) a State (including a political subdivi-
sion of a State); or
‘‘(B) a nonprofit organization.
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section—
‘‘(1) $50,000,000 for fiscal year 2003; and
‘‘(2) such sums as are necessary for each fiscal
year thereafter.’’.
SEC. 814. GENERAL PROVISIONS.
Section 13 of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2109) is amended by striking subsection
(f) and inserting the following:
‘‘(f) GRANTS, CONTRACTS, 
AND
OTHER
AGREE-
MENTS.—
‘‘(1) IN
GENERAL.—In accordance with para-
graph (2), the Secretary may make such grants and
enter into such contracts, agreements, or other ar-
rangements as the Secretary determines are necessary
to carry out this Act.
‘‘(2) ASSISTANCE.—Notwithstanding any other
provision of this Act, the Secretary, with the concur-
rence of the applicable State forester or equivalent
State official, may provide assistance under this Act
directly to any public or private entity, organization,
or individual—
‘‘(A) through a grant; or
‘‘(B) by entering into a contract or coopera-
tive agreement.’’.
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SEC. 815. STATE FOREST STEWARDSHIP COORDINATING
COMMITTEES.
Section 19(b) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2113(b)) is amended—
(1) in paragraph (1)(B)(i), by inserting ‘‘United
States Fish and Wildlife Service,’’ before ‘‘Forest
Service’’; and
(2) in paragraph (2)—
(A) in subparagraph (C), by striking ‘‘and’’
at the end;
(B) in subparagraph (D), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(E) submit to the Secretary, the Committee
on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, an annual report
that provides—
‘‘(i) the list of members on the Com-
mittee described in paragraph (1)(B); and
‘‘(ii) for those members that may be in-
cluded on the Committee, but are not in-
cluded because a determination that it is
not practicable to include the members has
been made, an explanation of the reasons
for that determination.’’.
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SEC. 816. USDA NATIONAL AGROFORESTRY CENTER.
(a) IN GENERAL.—Section 1243 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (16 U.S.C.
1642 note; Public Law 101–624) is amended—
(1) by striking the section heading and inserting
the following:
‘‘SEC. 1243. USDA NATIONAL AGROFORESTRY CENTER.’’;
and
(2) in subsection (a)—
(A) by striking ‘‘SEMIARID’’ and inserting
‘‘USDA NATIONAL’’; and
(B) by striking ‘‘Semiarid’’ and inserting
‘‘USDA National’’.
(b) PROGRAM.—Section 1243(b) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (16 U.S.C.
1642 note; Public Law 101–624) is amended—
(1) by inserting ‘‘the Institute of Tropical For-
estry and the Institute of Pacific Islands Forestry of
the Forest Service,’’ after ‘‘entities,’’;
(2) in paragraph (1), by striking ‘‘on semiarid
lands’’;
(3) in paragraph (3), by striking ‘‘from semiarid
land’’;
(4) by striking paragraph (4) and inserting the
following:
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‘‘(4) collect information on the design and instal-
lation of forested riparian and upland buffers to—
‘‘(A) protect water quality; and
‘‘(B) manage water flow;’’;
(5) in paragraphs (6) and (7), by striking ‘‘on
semiarid lands’’ each place it appears;
(6) by striking paragraph (8) and inserting the
following:
‘‘(8) provide international leadership in the
worldwide development and exchange of agroforestry
practices;’’;
(7) in paragraph (9), by striking ‘‘on semiarid
lands’’;
(8) in paragraph (10), by striking ‘‘and’’ at the
end;
(9) in paragraph (11), by striking the period at
the end and inserting ‘‘; and’’; and
(10) by adding at the end the following:
‘‘(12) quantify the carbon storage potential of
agroforestry practices such as—
‘‘(A) windbreaks;
‘‘(B) forested riparian buffers;
‘‘(C) silvopasture timber and grazing sys-
tems; and
‘‘(D) alley cropping.’’.
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SEC. 817. OFFICE OF TRIBAL RELATIONS.
The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 19 (16 U.S.C. 2113) the
following:
‘‘SEC. 19A. OFFICE OF TRIBAL RELATIONS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(2) OFFICE.—The term ‘Office’ means the Office
of Tribal Relations established under subsection
(b)(1).
‘‘(3) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Chief
of the Forest Service.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
within the Forest Service the Office of Tribal Rela-
tions.
‘‘(2) DIRECTOR.—The Office shall be headed by
a Director, who shall—
‘‘(A) be appointed by the Secretary, in con-
sultation with interested Indian tribes; and
‘‘(B) report directly to the Secretary.
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‘‘(3) ADMINISTRATIVE SUPPORT.—The Secretary
shall ensure, to the maximum extent practicable, that
adequate staffing and funds are made available to en-
able the Director to carry out the duties described in
subsection (c).
‘‘(c) DUTIES OF THE DIRECTOR.—
‘‘(1) IN GENERAL.—The Director shall—
‘‘(A) provide advice to the Secretary on all
issues, policies, actions, and programs of the
Forest 
Service 
that 
affect 
Indian 
tribes,
including—
‘‘(i) consultation with tribal govern-
ments;
‘‘(ii) programmatic review for equi-
table tribal participation;
‘‘(iii) monitoring and evaluation of re-
lations between the Forest Service and In-
dian tribes;
‘‘(iv) the coordination and integration
of programs of the Forest Service that affect,
or are of interest to, Indian tribes;
‘‘(v) training of Forest Service per-
sonnel for competency in tribal relations;
and
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‘‘(vi) the development of legislation af-
fecting Indian tribes;
‘‘(B) coordinate organizational responsibil-
ities within the administrative units of the For-
est Service to ensure that matters affecting the
rights and interests of Indian tribes are handled
in a manner that is—
‘‘(i) comprehensive;
‘‘(ii) responsive to tribal needs; and
‘‘(iii) consistent with policy guidelines
of the Forest Service;
‘‘(C)(i) develop generally applicable policies
and procedures of the Forest Service pertaining
to Indian tribes; and
‘‘(ii) monitor the application of those poli-
cies and procedures throughout the administra-
tive regions of the Forest Service;
‘‘(D) provide such information or guidance
to personnel of the Forest Service that are re-
sponsible for tribal relations as is required, as
determined by the Secretary;
‘‘(E) exercise such direct administrative au-
thority pertaining to tribal relations programs
as may be delegated by the Secretary;
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‘‘(F) for the purpose of coordinating pro-
grams and activities of the Forest Service with
programs and actions of other agencies or de-
partments that affect Indian tribes, consult
with—
‘‘(i) other agencies of the Department
of Agriculture, including the Natural Re-
sources Conservation Service; and
‘‘(ii) 
other 
Federal 
agencies,
including—
‘‘(I) the Department of the Inte-
rior; and
‘‘(II) the Environmental Protec-
tion Agency;
‘‘(G) submit to the Secretary an annual re-
port on the status of relations between the Forest
Service and Indian tribes that includes, at a
minimum—
‘‘(i) an examination of the participa-
tion of Indian tribes in programs adminis-
tered by the Secretary;
‘‘(ii) a description of the status of ini-
tiatives being carried out to improve work-
ing relationships with Indian tribes; and
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‘‘(iii) recommendations for improve-
ments or other adjustments to operations of
the Forest Service that would be beneficial
in strengthening working relationships with
Indian tribes; and
‘‘(H) carry out such other duties as the Sec-
retary may assign.
‘‘(d) COORDINATION.—In carrying out this section, the
Office and other offices within the Forest Service shall con-
sult on matters involving the rights and interests of Indian
tribes.’’.
SEC. 818. ASSISTANCE TO TRIBAL GOVERNMENTS.
The Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2101 et seq.) is amended by adding at the end the
following:
‘‘SEC. 21. ASSISTANCE TO TRIBAL GOVERNMENTS.
‘‘(a) DEFINITION OF INDIAN TRIBE.—In this section,
the term ‘Indian tribe’ has the meaning given the term in
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b).
‘‘(b) ESTABLISHMENT.—The Secretary may provide fi-
nancial, technical, educational and related assistance to In-
dian tribes for—
‘‘(1) tribal consultation and coordination with
the Forest Service on issues relating to—
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‘‘(A) tribal rights and interests on National
Forest System land (including national forests
and national grassland);
‘‘(B) coordinated or cooperative manage-
ment of resources shared by the Forest Service
and Indian tribes; and
‘‘(C) provision of tribal traditional, cul-
tural, or other expertise or knowledge;
‘‘(2) projects and activities for conservation edu-
cation and awareness with respect to forest land
under the jurisdiction of Indian tribes;
‘‘(3) technical assistance for forest resources
planning, management, and conservation on land
under the jurisdiction of Indian tribes; and
‘‘(4) the acquisition by Indian tribes, from will-
ing sellers, of conservation interests (including con-
servation easements) in forest land and resources on
land under the jurisdiction of the Indian tribes.
‘‘(c) IMPLEMENTATION.—
‘‘(1) IN GENERAL.—Not later than 18 months
after the date of enactment of this section, the Sec-
retary shall promulgate regulations to implement sub-
section (b) (including regulations for determining the
distribution of assistance under that subsection).
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‘‘(2) CONSULTATION.—In developing regulations
under paragraph (1), the Secretary shall engage in
full, open, and substantive consultation with Indian
tribes and representatives of Indian tribes.
‘‘(d) COORDINATION WITH THE SECRETARY OF THE
INTERIOR.—The Secretary shall coordinate with the Sec-
retary of the Interior during the establishment, implementa-
tion, and administration of subsection (b) to ensure that
programs under that subsection—
‘‘(1) do not conflict with tribal programs pro-
vided under the authority of the Department of the
Interior; and
‘‘(2) meet the goals of the Indian tribes.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section such
sums as are necessary for fiscal year 2002 and each fiscal
year thereafter.’’.
SEC. 819. SUDDEN OAK DEATH SYNDROME.
(a) FINDINGS.—Congress finds that—
(1) tan oak, coast live oak, Shreve’s oak, and
black oak trees are among the most beloved features
of the topography of California and the Pacific North-
west and efforts should be made to protect those trees
from disease;
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(2) the die-off of those trees, as a result of the ex-
otic Phytophthora fungus, is approaching epidemic
proportions;
(3) very little is known about the new species of
Phytophthora, and scientists are struggling to under-
stand the causes of sudden oak death syndrome, the
methods of transmittal, and how sudden oak death
syndrome can best be treated;
(4) the Phytophthora fungus has been found
on—
(A) Rhododendron plants in nurseries in
California; and
(B) wild huckleberry plants, potentially en-
dangering the commercial blueberry and cran-
berry industries;
(5) sudden oak death syndrome threatens to cre-
ate major economic and environmental problems in
California, the Pacific Northwest, and other regions,
including—
(A) the increased threat of fire and fallen
trees;
(B) the cost of tree removal and a reduction
in property values; and
(C) loss of revenue due to—
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(i) restrictions on imports of oak prod-
ucts and nursery stock; and
(ii) the impact on the commercial rho-
dodendron, blueberry, and cranberry indus-
tries; and
(6) Oregon and Canada have imposed an emer-
gency quarantine on the importation of oak trees, oak
products, and certain nursery plants from California.
(b) RESEARCH, MONITORING, AND TREATMENT
OF
SUDDEN OAK DEATH SYNDROME.—
(1) IN GENERAL.—The Secretary of Agriculture
(referred to in this section as the ‘‘Secretary’’) shall
carry out a sudden oak death syndrome research,
monitoring, and treatment program to develop meth-
ods to control, manage, or eradicate sudden oak death
syndrome from oak trees on public and private land.
(2) RESEARCH, MONITORING, AND
TREATMENT
ACTIVITIES.—In carrying out the program under
paragraph (1), the Secretary may—
(A) conduct open space, roadside, and aer-
ial surveys;
(B) provide monitoring technique work-
shops;
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(C) develop baseline information on the dis-
tribution, condition, and mortality rates of oaks
in California and the Pacific Northwest;
(D) maintain a geographic information sys-
tem database;
(E) conduct research activities, including
research on forest pathology, Phytophthora ecol-
ogy, forest insects associated with oak decline,
urban forestry, arboriculture, forest ecology, fire
management, silviculture, landscape ecology, and
epidemiology;
(F) evaluate the susceptibility of oaks and
other vulnerable species throughout the United
States; and
(G) develop and apply treatments.
(c) MANAGEMENT, REGULATION, AND FIRE PREVEN-
TION.—
(1) IN GENERAL.—The Secretary shall conduct
sudden oak death syndrome management, regulation,
and fire prevention activities to reduce the threat of
fire and fallen trees killed by sudden oak death syn-
drome.
(2) MANAGEMENT, REGULATION, AND FIRE PRE-
VENTION
ACTIVITIES.—In carrying out paragraph
(1), the Secretary may—
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(A) conduct hazard tree assessments;
(B) provide grants to local units of govern-
ment for hazard tree removal, disposal and recy-
cling, assessment and management of restoration
and mitigation projects, green waste treatment
facilities, reforestation, resistant tree breeding,
and exotic weed control;
(C) increase and improve firefighting and
emergency response capabilities in areas where
fire hazard has increased due to oak die-off;
(D) treat vegetation to prevent fire, and as-
sessment of fire risk, in areas heavily infected
with sudden oak death syndrome;
(E) conduct national surveys and inspec-
tions of—
(i) commercial rhododendron and blue-
berry nurseries; and
(ii) 
native 
rhododendron 
and
huckleberry plants;
(F) provide for monitoring of oaks and
other vulnerable species throughout the United
States to ensure early detection; and
(G) provide diagnostic services.
(d) EDUCATION AND RESEARCH.—
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(1) IN GENERAL.—The Secretary shall conduct
education and outreach activities to make informa-
tion available to the public on sudden death oak syn-
drome.
(2) EDUCATION AND OUTREACH ACTIVITIES.—In
carrying out paragraph (1), the Secretary may—
(A) develop and distribute educational ma-
terials for homeowners, arborists, urban foresters,
park 
managers, 
public 
works 
personnel,
recreationists, nursery workers, landscapers, na-
turists, firefighting personnel, and other individ-
uals, as the Secretary determines appropriate;
(B) design and maintain a website to pro-
vide information on sudden oak death syndrome;
and
(C) provide financial and technical support
to States, local governments, and nonprofit orga-
nizations providing information on sudden oak
death syndrome.
(e) SUDDEN OAK DEATH SYNDROME ADVISORY COM-
MITTEE.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—The Secretary shall es-
tablish a Sudden Oak Death Syndrome Advisory
Committee (referred to in this subsection as the
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‘‘Committee’’) to assist the Secretary in carrying
out this section.
(B) MEMBERSHIP.—
(i) 
COMPOSITION.—The 
Committee
shall consist of—
(I) 1 representative of the Animal
and Plant Health Inspection Service,
to be appointed by the Administrator
of the Animal and Plant Health In-
spection Service;
(II) 1 representative of the Agri-
cultural Research Service, to be ap-
pointed by the Administrator of the
Agricultural Research Service;
(III) 1 representative of the Forest
Service, to be appointed by the Chief of
the Forest Service;
(IV) 2 individuals appointed by
the Secretary from each of the States
affected by sudden oak death syndrome;
and
(V) any individual, to be ap-
pointed by the Secretary, in consulta-
tion with the Governors of the affected
States, that the Secretary determines—
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(aa) has an interest or exper-
tise in sudden oak death syn-
drome; and
(bb) would contribute to the
Committee.
(ii) DATE
OF
APPOINTMENTS.—The
appointment of a member of the Committee
shall be made not later than 90 days after
the date of enactment of this Act.
(C) INITIAL MEETING.—Not later than 30
days after the date on which all members of the
Committee have been appointed, the Committee
shall hold the initial meeting of the Committee.
(2) DUTIES.—
(A) IMPLEMENTATION
PLAN.—The Com-
mittee shall prepare a comprehensive implemen-
tation plan to address the management, control,
and eradication of sudden oak death syndrome.
(B) REPORTS.—
(i) INTERIM REPORT.—Not later than
1 year after the date of enactment of this
Act, the Committee shall submit to Congress
the implementation plan prepared under
paragraph (1).
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(ii) FINAL REPORT.—Not later than 3
years after the date of enactment of this Act,
the Committee shall submit to Congress a
report that contains—
(I) a summary of the activities of
the Committee;
(II) an accounting of funds re-
ceived and expended by the Committee;
and
(III) findings and recommenda-
tions of the Committee.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated for each of fiscal years 2002
through 2006—
(1) to carry out subsection (b), $7,500,000, of
which not more than $1,500,000 shall be used for
treatment;
(2) to carry out subsection (c), $6,000,000;
(3) to carry out subsection (d), $500,000; and
(4) to carry out subsection (e), $250,000.
SEC. 820. INDEPENDENT INVESTIGATION OF FIREFIGHTER
FATALITIES.
In the case of each fatality of an officer or employee
of the Forest Service that occurs due to wildfire entrapment
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or burnover, the Inspector General of the Department of Ag-
riculture shall—
(1) conduct an investigation that does not rely
on, and is completely independent of, any investiga-
tion of the fatality that is conducted by the Forest
Service; and
(2) submit to Congress and the Secretary of Ag-
riculture a report on the fatality.
SEC. 821. ADAPTIVE ECOSYSTEM RESTORATION OF ARI-
ZONA AND NEW MEXICO FORESTS AND WOOD-
LANDS.
(a) FINDINGS.—Congress finds that—
(1) fire suppression, logging, and overgrazing
have degraded the ecological conditions of forests and
woodlands in Arizona and New Mexico;
(2) some of those forests and woodlands contain
unnaturally high quantities of biomass that are sub-
ject to large, high intensity wildfires that endanger
human lives and livelihoods and ecological sustain-
ability;
(3) degraded forests and woodlands have led to—
(A) declining biodiversity;
(B) decreased stream and spring flows;
(C) impaired watershed values;
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(D) increased susceptibility to insects and
diseases;
(E) increases in mortality in the oldest
trees; and
(F) degraded habitats for wildlife and hu-
mans;
(4) healthy forest and woodland ecosystems—
(A) minimize the threat of unnatural wild-
fire;
(B) improve wildlife habitat;
(C) increase tree, grass, forb, and shrub pro-
ductivity;
(D) enhance watershed values; and
(E) provide a basis for economically and
environmentally sustainable uses;
(5) forest and woodland treatments intended to
restore degraded ecosystems should be developed using
the best available scientific knowledge;
(6) treatments not supported by sound science
may fail to achieve long-term ecosystem health and
resource restoration objectives;
(7)(A) scientific research must be integrated with
ongoing land management activities; and
(B) restoration techniques must be continually
reevaluated and adapted to reflect new knowledge and
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to meet the practical needs of land managers and
communities developing and implementing restora-
tion treatments; and
(8) scientific knowledge must be translated and
transferred to land managers, resource specialists,
communities, and stakeholders that collaborate in the
development and implementation of those treatments.
(b) PURPOSES.—The purposes of this section are—
(1) to—
(A) improve the ecological health, resource
values, and sustainability of forest and woodland
ecosystems in Arizona and New Mexico; and
(B) reduce the threat of unnatural wildfire,
disease, and insect infestations in those States;
(2) to restore ecosystem structure and function so
that ecosystems will—
(A) support biodiversity;
(B) enhance watershed values;
(C) increase water flow to seeps and
springs; and
(D) increase tree, grass, forb, and shrub
vigor and growth to provide sustainable eco-
nomic activities for current and future genera-
tions;
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(3) to develop the scientific knowledge to inform
the design of adaptive ecosystem management restora-
tion treatments that will restore long-term ecological
health to forests and woodlands in the States; and
(4) to encourage collaboration among land man-
agement agencies, communities, and interest groups
in developing, implementing, and monitoring adapt-
ive ecosystem management restoration treatments that
are ecologically sound, economically viable, and so-
cially responsible.
(c) DEFINITIONS.—In this section:
(1) ADAPTIVE
ECOSYSTEM
MANAGEMENT.—The
term ‘‘adaptive ecosystem management’’ means man-
agement practiced by engaging researchers, land man-
agers, resource specialists, policy analysts, decision-
makers, nonprofit organizations, and communities in
conducting collaborative large-scale management ex-
periments that seek to restore ecosystem health while
seeking unexplored opportunities to enhance natural
resource values.
(2) ECOLOGICAL INTEGRITY.—The term ‘‘ecologi-
cal integrity’’ includes a critical range of variability
in biodiversity, ecological processes and structures, re-
gional and historical context, and sustainable forestry
practices in forests and woodlands.
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(3) ECOLOGICAL RESTORATION.—The term ‘‘eco-
logical restoration’’ means the process of assisting the
recovery and management of ecological integrity.
(4) INSTITUTE.—The term ‘‘Institute’’ means an
institute established under subsection (d)(1).
(5) LAND
MANAGEMENT
AGENCY.—The term
‘‘land management agency’’ means a Federal, State,
local, or tribal land management agency.
(6) PRACTITIONER.—The term ‘‘practitioner’’
means a person or entity that practices natural re-
source management.
(7) 
SECRETARIES.—The 
term 
‘‘Secretaries’’
means—
(A) the Secretary of Agriculture, acting
through the Chief of the Forest Service; and
(B) the Secretary of the Interior.
(8) STATE.—The term ‘‘State’’ means—
(A) the State of Arizona; and
(B) the State of New Mexico.
(d) ESTABLISHMENT OF INSTITUTES.—
(1) IN GENERAL.—The Secretary of Agriculture,
in consultation with the Secretary of the Interior,
shall establish—
(A) an Ecological Restoration Institute in
Flagstaff, Arizona; and
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(B) an Institute at a college or university
in the State of New Mexico selected by the Sec-
retary of Agriculture, in consultation with the
Secretary of the Interior.
(2) SCOPE OF RESEARCH; TRANSFER OF INFOR-
MATION.—Each Institute shall—
(A) plan, conduct, or otherwise arrange for
applied ecosystem management research that—
(i) assists in answering questions iden-
tified by land managers, practitioners, and
others concerned with land management;
and
(ii) will be useful in the development
and implementation of practical, science-
based, ecological restoration treatments;
(B) translate scientific knowledge into com-
munication tools that are easily understood by
land managers, natural resource professionals,
and concerned citizens; and
(C) provide similar information to land
managers and other interested persons.
(3) COOPERATION.—Each Institute shall cooper-
ate with—
(A) researchers at colleges and universities
in the States that have demonstrated capabilities
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for research, information dissemination, con-
tinuing education, and undergraduate and grad-
uate training, to develop broad capacity to im-
plement ecological restoration in forest and
woodland ecosystems; and
(B) other organizations and entities in the
region (such as the Western Governors’ Associa-
tion, Southwest Strategy group, the Southwest
Fire Management Board, and the Arizona Gov-
ernor’s Forest Health/Fire Plan Advisory Com-
mittee), to increase and accelerate efforts to re-
store forest ecosystem health and abate unnatural
and unwanted wildfire.
(4) APPROVAL
OF
ANNUAL
WORK
PLAN; REQ-
UISITE ASSURANCES.—As a condition to the receipt of
funds made available under subsection (g), for each
fiscal year, each Institute shall submit to the Sec-
retary of Agriculture, for review by the Secretary of
Agriculture, in consultation with the Secretary of the
Interior, an annual work plan that includes assur-
ances, satisfactory to the Secretaries, that the pro-
posed work will serve the information needs of—
(A) land managers;
(B) practitioners;
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(C) concerned citizens and communities;
and
(D) the States.
(e) COOPERATION BETWEEN INSTITUTES AND FED-
ERAL AGENCIES.—In carrying out this section, the Sec-
retary of Agriculture, in consultation with the Secretary of
the Interior—
(1) shall encourage other Federal departments,
agencies, and instrumentalities to use and take ad-
vantage of, on a cooperative basis, the expertise and
capabilities that are available through the Institutes;
(2) shall encourage cooperation and coordination
with other Federal programs relating to—
(A) ecological restoration; and
(B) wildfire risk reduction;
(3) may (notwithstanding chapter 63 of title 31,
United States Code)—
(A) enter into contracts, cooperative agree-
ments, interagency personal agreements; and
(B) carry out other transactions;
(4) may accept funds from other Federal depart-
ments, agencies, and instrumentalities to supplement
or fully fund grants made, and contracts entered into,
by the Secretaries;
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(5) may promulgate such regulations as the Sec-
retaries consider appropriate;
(6) may support a program of internships for
qualified individuals at the undergraduate and grad-
uate levels to carry out the educational and training
objectives of this section; and
(7) shall encourage professional education and
public information activities relating to the purposes
of this section.
(f) MONITORING AND EVALUATION.—
(1) IN GENERAL.—Not later than 5 years after
the date of enactment of this Act, and every 5 years
thereafter, the Secretary, in consultation with the Sec-
retary of the Interior, shall complete a detailed eval-
uation of each Institute—
(A) to ensure, to the maximum extent prac-
ticable, that the research, communication tools,
and information transfer activities of the Insti-
tute meet the needs of—
(i) land managers;
(ii) practitioners;
(iii) concerned citizens and commu-
nities; and
(iv) the States; and
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(B) to determine whether continued provi-
sion of Federal assistance to the Institute is war-
ranted.
(2) STANDARDS FOR RECEIPT OF FINANCIAL AS-
SISTANCE.—If, as a result of an evaluation under
paragraph (1), the Secretary, in consultation with the
Secretary of the Interior, determines that an Institute
does not qualify for further Federal assistance under
this section, the Institute shall receive no further Fed-
eral assistance under this section until such time as
the qualifications of the Institute are reestablished to
the satisfaction of the Secretaries.
(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000 for each fiscal year.
TITLE IX—ENERGY
SEC. 901. FINDINGS.
Congress finds that—
(1) there are many opportunities for the agricul-
tural sector and rural areas to produce renewable en-
ergy and increase energy efficiency;
(2) investments in renewable energy and energy
efficiency—
(A) enhance the energy security and inde-
pendence of the United States;
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(B) increase farmer and rancher income;
(C) promote rural economic development;
(D) provide environmental and public
health benefits such as cleaner air and water;
and
(E) improve electricity grid reliability,
thereby reducing the likelihood of blackouts and
brownouts, particularly during peak usage peri-
ods;
(3) the public strongly supports renewable energy
generation and energy efficiency improvements as an
important component of a national energy strategy;
(4)(A) the Federal Government is the country’s
largest consumer of a vast array of products, spend-
ing in excess of $200,000,000,000 per year;
(B) purchases and use of products by the Federal
Government have a significant effect on the environ-
ment; and
(C) accordingly, the Federal Government should
lead the way in purchasing biobased products so as
to minimize environmental impacts while supporting
domestic producers of biobased products;
(5) the agricultural sector is a leading producer
of biobased products to meet domestic and inter-
national needs;
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(6) agriculture can play a significant role in the
development of fuel cell and hydrogen-based energy
technologies, which are critical technologies for a
clean energy future;
(7)(A) wind energy is 1 of the fastest growing
clean energy technologies; and
(B) there are tremendous economic development
and environmental quality benefits to be achieved by
developing both large-scale and small-scale wind
power projects on farms and in rural communities;
(8) farm-based renewable energy generation can
become one of the major cash crops of the United
States, improving the livelihoods of hundreds of thou-
sands of family farmers, ranchers, and others and re-
vitalizing rural communities;
(9)(A) evidence continues to mount that in-
creases in atmospheric concentrations of greenhouse
gases are contributing to global climate change; and
(B) agriculture can help in climate change miti-
gation by—
(i) storing carbon in soils, plants, and for-
ests;
(ii) producing biofuels, chemicals, and
power to replace fossil fuels and petroleum-based
products; and
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(iii) reducing emissions by capturing gases
from animal feeding operations, changing agri-
cultural land practices, and becoming more en-
ergy efficient;
(10) because agricultural production is energy-
intensive, it is incumbent on the Federal Government
to aid the agricultural sector in reducing energy con-
sumption and energy costs;
(11)(A) one way to help farmers, ranchers, and
others reduce energy use is through professional en-
ergy audits;
(B) energy audits provide recommendations for
improved energy efficiency that, when acted on, offer
an effective means of reducing overall energy use and
saving money; and
(C) energy savings of 10 to 30 percent can typi-
cally be achieved, and greater savings are often real-
ized; and
(12) rural electric utilities are often geographi-
cally well situated to develop renewable and distrib-
uted energy supplies, enabling the utilities to diver-
sify their energy portfolios and afford their members
or customers alternative energy sources, which many
such members and customers desire.
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SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT
ACT.
The Consolidated Farm and Rural Development Act
(as amended by section 649) is amended by adding at the
end the following:
‘‘Subtitle L—Clean Energy
‘‘SEC. 388A. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) BIOMASS.—
‘‘(A) IN
GENERAL.—The term ‘biomass’
means any organic material that is available on
a renewable or recurring basis.
‘‘(B) 
INCLUSIONS.—The 
term 
‘biomass’
includes—
‘‘(i) dedicated energy crops;
‘‘(ii) trees grown for energy produc-
tion;
‘‘(iii) wood waste and wood residues;
‘‘(iv) plants (including aquatic plants,
grasses, and agricultural crops);
‘‘(v) residues;
‘‘(vi) fibers;
‘‘(vii) animal wastes and other waste
materials; and
‘‘(viii) fats and oils.
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‘‘(C) EXCLUSIONS.—The term ‘biomass’
does not include—
‘‘(i) paper that is commonly recycled;
or
‘‘(ii) unsegregated garbage.
‘‘(2) RENEWABLE ENERGY.—The term ‘renewable
energy’ means energy derived from a wind, solar, bio-
mass, geothermal, or hydrogen source.
‘‘(3) RURAL SMALL BUSINESS.—The term ‘rural
small business’ has the meaning that the Secretary
shall prescribe by regulation.
‘‘CHAPTER 1—BIOBASED PRODUCT
DEVELOPMENT
‘‘SEC. 388B. BIOBASED PRODUCT PURCHASING REQUIRE-
MENT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 
ADMINISTRATOR.—The 
term 
‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency.
‘‘(2) BIOBASED PRODUCT.—The term ‘biobased
product’ means a commercial or industrial product,
as determined by the Secretary (other than food or
feed), that uses biological products or renewable do-
mestic agricultural materials (including plant, ani-
mal, and marine materials) or forestry materials.
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‘‘(3) 
ENVIRONMENTALLY
PREFERABLE.—The
term ‘environmentally preferable’, with respect to a
biobased product, refers to a biobased product that
has a lesser or reduced effect on human health and the
environment 
when 
compared 
with 
competing
nonbiobased products that serve the same purpose.
‘‘(b) BIOBASED PRODUCT PURCHASING.—
‘‘(1) MANDATORY
PURCHASING
REQUIREMENT
FOR LISTED BIOBASED PRODUCTS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), not later than 180 days after
the date of enactment of this subtitle, the head of
each Federal agency shall ensure that, in pur-
chasing any product, the Federal agency pur-
chases a biobased product, rather than a com-
parable nonbiobased product, if the biobased
product is listed on the list of biobased products
published under subsection (c)(1).
‘‘(B) BIOBASED PRODUCT NOT REASONABLY
COMPARABLE.—A Federal agency shall not be re-
quired to purchase a biobased product under sub-
paragraph (A) if the purchasing employee sub-
mits to the Secretary and the Administrator of
the Office of Federal Procurement Policy a writ-
ten determination that the biobased product is
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not reasonably comparable to nonbiobased prod-
ucts in price, performance, or availability.
‘‘(C) CONFLICTING
REQUIREMENTS.—The
Secretary and the Administrator shall jointly
promulgate regulations with which Federal agen-
cies shall comply in cases of a conflict between
the biobased product purchasing requirement
under subparagraph (A) and a purchasing re-
quirement under any other provision of law.
‘‘(2) PURCHASING
OF
NONLISTED
BIOBASED
PRODUCTS.—The head of each Federal agency is en-
couraged to purchase, to the maximum extent prac-
ticable, available biobased products that are not listed
on the list of biobased products published under sub-
section (c)(1) when the Federal agency is not required
to purchase a biobased product that is on the list.
‘‘(c) ADMINISTRATIVE ACTION.—
‘‘(1) LIST OF BIOBASED PRODUCTS.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the date of enactment of this subtitle,
and annually thereafter, the Secretary, in con-
sultation with the Administrator and the Direc-
tor of the National Institute of Standards and
Technology, shall publish a list of biobased prod-
ucts.
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‘‘(B) 
ENVIRONMENTALLY
PREFERABLE
BIOBASED PRODUCTS.—The Secretary shall not
include on the list under paragraph (1) biobased
products that are not environmentally preferable,
as determined by the Secretary.
‘‘(C) GRANTS.—The Secretary may award
grants to, or enter into contracts or cooperative
agreements with, eligible persons, businesses, or
institutions (as determined by the Secretary) to
assist in collecting data concerning the evalua-
tion of and lifecycle analyses of biobased prod-
ucts for use in making the determinations nec-
essary to carry out this paragraph.
‘‘(2) GUIDANCE.—Not later than 240 days after
the date of enactment of this subtitle, the Office of
Federal Procurement Policy and Federal Acquisition
Regulation Council shall make the Federal Acquisi-
tion Regulation consistent with subsection (b).
‘‘(d) EDUCATION
AND OUTREACH PROGRAM.—The
Secretary, in cooperation with the Defense Acquisition Uni-
versity and the Federal Acquisition Institute, shall conduct
education programs for all Federal procurement officers re-
garding biobased products and the requirements of sub-
section (b).
‘‘(e) LABELING.—
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‘‘(1) IN GENERAL.—The Secretary shall develop
a program, similar to the Energy Star program of
the Department of Energy and the Environmental
Protection Agency, under which the Secretary author-
izes producers of environmentally preferable biobased
products to use a label that identifies the products as
environmentally preferable biobased products.
‘‘(2) ENVIRONMENTALLY PREFERABLE BIOBASED
PRODUCTS.—The Secretary shall monitor and take
appropriate action regarding the use of labels under
paragraph (1) to ensure that the biobased products
using the labels do not include biobased products that
are not environmentally preferable, as determined by
the Secretary.
‘‘(3) CONTRACTING.—In carrying out paragraph
(1), the Secretary may contract with appropriate en-
tities with expertise in product labeling and standard
setting.
‘‘(f) GOAL.—It shall be the goal of each Federal agency
for each fiscal year to purchase biobased products of an ag-
gregate value that is not less than 5 percent of the aggregate
value of all products purchased by the Federal agency dur-
ing the preceding fiscal year.
‘‘(g) REPORTS.—As soon as practicable after the end
of each fiscal year, the Secretary and the Office of Federal
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Procurement Policy shall jointly submit to Congress an an-
nual report that, for the fiscal year, describes the extent of—
‘‘(1) compliance by each Federal agency with
subsection (b); and
‘‘(2) the success of each Federal agency in achiev-
ing the goal established under subsection (f).
‘‘(h) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $2,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to assist
in the development of new and emerging technologies for
the conversion of biomass into petroleum substitutes, so as
to—
‘‘(1) develop transportation and other fuels and
chemicals from renewable sources;
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‘‘(2) reduce the dependence of the United States
on imported oil;
‘‘(3) reduce greenhouse gas emissions;
‘‘(4) diversify markets for raw agricultural and
forestry products; and
‘‘(5) create jobs and enhance the economic devel-
opment of the rural economy.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) ADVISORY
COMMITTEE.—The term ‘Advi-
sory Committee’ means the Biomass Research and De-
velopment Technical Advisory Committee established
by section 306 of the Biomass Research and Develop-
ment Act of 2000 (7 U.S.C. 7624 note; Public Law
106–224).
‘‘(2) 
BIOREFINERY.—The 
term 
‘biorefinery’
means equipment and processes that—
‘‘(A) convert biomass into fuels and chemi-
cals; and
‘‘(B) may produce electricity.
‘‘(3) BOARD.—The term ‘Board’ means the Bio-
mass Research and Development Board established by
section 305 of the Biomass Research and Development
Act of 2000 (7 U.S.C. 7624 note; Public Law 106–
224).
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‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(c) GRANTS.—The Secretary shall award grants to el-
igible entities to assist in paying the cost of development
and construction of biorefineries to carry out projects to
demonstrate the commercial viability of 1 or more processes
for converting biomass to fuels or chemicals.
‘‘(d) ELIGIBLE ENTITIES.—A corporation, farm coop-
erative, association of farmers, national laboratory, univer-
sity, State energy agency or office, Indian tribe, or consor-
tium comprised of any of those entities shall be eligible to
receive a grant under subsection (c).
‘‘(e) COMPETITIVE BASIS FOR AWARDS.—
‘‘(1) IN GENERAL.—The Secretary shall award
grants under subsection (c) on a competitive basis in
consultation with the Board and Advisory Committee.
‘‘(2) SELECTION CRITERIA.—
‘‘(A) IN GENERAL.—In selecting projects to
receive 
grants 
under 
subsection 
(c), 
the
Secretary—
‘‘(i) shall select projects based on the
likelihood that the projects will demonstrate
the commercial viability of a process for
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converting biomass into fuels or chemicals;
and
‘‘(ii) may consider the likelihood that
the projects will produce electricity.
‘‘(B) FACTORS.—The factors to be consid-
ered under subparagraph (A) shall include—
‘‘(i) the potential market for the prod-
uct or products;
‘‘(ii) the quantity of petroleum the
product will displace;
‘‘(iii) the level of financial participa-
tion by the applicants;
‘‘(iv) the availability of adequate fund-
ing from other sources;
‘‘(v) the beneficial impact on resource
conservation and the environment;
‘‘(vi) the participation of producer as-
sociations and cooperatives;
‘‘(vii) the timeframe in which the
project will be operational;
‘‘(viii) the potential for rural economic
development;
‘‘(ix) the participation of multiple eli-
gible entities; and
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‘‘(x) the potential for developing ad-
vanced industrial biotechnology approaches.
‘‘(f) COST SHARING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amount of a grant for a project award-
ed under subsection (c) shall not exceed 30 percent of
the cost of the project.
‘‘(2) INCREASED GRANT AMOUNT.—The Secretary
may increase the amount of a grant for a project
under subsection (c) to not more than 50 percent in
the case of a project that the Secretary finds particu-
larly meritorious.
‘‘(3) FORM OF GRANTEE SHARE.—
‘‘(A) IN GENERAL.—The grantee share of
the cost of a project may be made in the form
of cash or the provision of services, material, or
other in-kind contributions.
‘‘(B) LIMITATION.—The amount of the
grantee share of the cost of a project that is made
in the form of the provision of services, material,
or other in-kind contributions shall not exceed 25
percent of the amount of the grantee share deter-
mined under paragraph (1).
‘‘(g) FUNDING.—
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‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $15,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388D. BIODIESEL FUEL EDUCATION PROGRAM.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) biodiesel fuel use can help reduce greenhouse
gas emissions and public health risks associated with
air pollution;
‘‘(2) biodiesel fuel use enhances energy security
by reducing petroleum consumption;
‘‘(3) biodiesel fuel is nearing the transition from
the research and development phase to commercializa-
tion;
‘‘(4) biodiesel fuel is still relatively unknown to
the public and even to diesel fuel users; and
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‘‘(5) education of, and provision of technical
support to, current and future biodiesel fuel users will
be critical to the widespread use of biodiesel fuel.
‘‘(b) ESTABLISHMENT.—The Secretary shall, under
such terms and conditions as are appropriate, offer 1 or
more competitive grants to eligible entities to educate Fed-
eral, State, regional, and local government entities and pri-
vate entities that operate vehicle fleets, other interested enti-
ties (as determined by the Secretary), and the public about
the benefits of biodiesel fuel use.
‘‘(c) ELIGIBLE ENTITIES.—To receive a grant under
subsection (b), an entity—
‘‘(1) shall be a nonprofit organization; and
‘‘(2) shall have demonstrated expertise in bio-
diesel fuel production, use, and distribution.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—Of the
funds of the Commodity Credit Corporation, the Secretary
shall make available $5,000,000 for each fiscal year 2003
through 2006.
‘‘CHAPTER 2—RENEWABLE ENERGY
DEVELOPMENT AND ENERGY EFFICIENCY
‘‘SEC. 388E. RENEWABLE ENERGY DEVELOPMENT LOAN AND
GRANT PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Rural Business Cooperative Service, in addition to exer-
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cising authority to make loans and loan guarantees under
other law, shall establish a program under which the Sec-
retary shall make loans and loan guarantees and competi-
tively award grants to assist farmers and ranchers in
projects to establish new, or expand existing, farmer or
rancher cooperatives, or other rural business ventures (as
determined by the Secretary), to—
‘‘(1) enable farmers and ranchers to become own-
ers of sources of renewable electric energy and market-
ers of electric energy produced from renewable sources;
‘‘(2) provide new income streams for farmers
and ranchers;
‘‘(3) increase the quantity of electricity available
from renewable energy sources; and
‘‘(4) provide environmental and public health
benefits to rural communities and the United States
as a whole.
‘‘(b) OWNERSHIP REQUIREMENT.—At least 51 percent
of the interest in a rural business venture assisted with a
grant under subsection (a) shall be owned by farmers or
ranchers.
‘‘(c) MAXIMUM AMOUNT OF LOANS AND GRANTS.—
‘‘(1) LOANS.—The amount of a loan made or
guaranteed for a project under subsection (a) shall
not exceed $10,000,000.
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‘‘(2) GRANTS.—The amount of a grant made for
a project under subsection (a) shall not exceed
$200,000 for a fiscal year.
‘‘(d) COST SHARING.—
‘‘(1) IN GENERAL.—The total amount of loans
made or guaranteed or grants awarded under sub-
section (a) for a project shall not exceed 50 percent
of the cost of the activity funded by the loan or grant.
‘‘(2) FORM OF GRANTEE SHARE.—
‘‘(A) IN GENERAL.—The grantee share of
the cost of the activity may be made in the form
of cash or the provision of services, material, or
other in-kind contributions.
‘‘(B) LIMITATION.—The amount of the
grantee share of the cost of an activity that is
made in the form of the provision of services,
material, or other in-kind contributions shall not
exceed 25 percent of the amount of the grantee
share, as determined under paragraph (1).
‘‘(e) INTEREST RATE.—A loan made or guaranteed
under subsection (a) shall bear an interest rate that does
not exceed 4 percent.
‘‘(f) USE OF FUNDS.—
‘‘(1) PERMITTED USES.—
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‘‘(A) GRANTS.—A recipient of a grant
awarded under subsection (a) may use the grant
funds to develop a business plan or perform a
feasibility study to establish a viable marketing
opportunity for renewable electric energy genera-
tion and sale.
‘‘(B) LOANS.—A recipient of a loan or loan
guarantee under subsection (a) may use the loan
funds to provide capital for start-up costs associ-
ated with the rural business venture or the pro-
motion of the aggregation of renewable electric
energy sources.
‘‘(2) PROHIBITED USES.—A recipient of a loan,
loan guarantee, or grant under subsection (a) shall
not use the loan or grant funds for planning, repair,
rehabilitation, acquisition, or construction of a build-
ing.
‘‘(g) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $16,000,000, to remain available until expended.
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‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘(3) LOAN AND INTEREST SUBSIDIES.—In the
case of a loan or loan guarantee under subsection (a),
the Secretary shall use funds under paragraph (1) to
pay the cost of loan and interest subsidies necessary
to carry out this section.
‘‘SEC. 388F. ENERGY AUDIT AND RENEWABLE ENERGY DE-
VELOPMENT PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Rural Business Cooperative Service, shall make competitive
grants to eligible entities to enable the eligible entities to
carry out a program to assist farmers, and ranchers, and
rural small businesses (as determined by the Secretary) in
becoming more energy efficient and in using renewable en-
ergy technology.
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to carry
out a program under subsection (a) include—
‘‘(1) a State energy or agricultural office;
‘‘(2) a regional or State-based energy organiza-
tion or energy organization of an Indian tribe (as de-
fined in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b));
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‘‘(3) a land-grant college or university (as de-
fined in section 1404 of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3103)) or other college or university;
‘‘(4) a farm bureau or organization;
‘‘(5) a rural electric cooperative or utility;
‘‘(6) a nonprofit organization; and
‘‘(7) any other entity, as determined by the Sec-
retary.
‘‘(c) MERIT REVIEW.—
‘‘(1) MERIT
REVIEW
PANEL.—The Secretary
shall establish a merit review panel to review applica-
tions for grants under subsection (a) that uses the ex-
pertise of other Federal agencies (including the De-
partment of Energy and the Environmental Protec-
tion Agency), industry, and nongovernmental organi-
zations.
‘‘(2) SELECTION CRITERIA.—In reviewing appli-
cations of eligible entities to receive grants under sub-
section (a), the merit review panel shall consider—
‘‘(A) the ability and expertise of the eligible
entity in providing professional energy audits
and renewable energy assessments;
‘‘(B) the geographic scope of the program
proposed by the eligible entity;
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‘‘(C) the number of farmers, ranchers, and
rural small businesses to be assisted by the pro-
gram;
‘‘(D) the potential for energy savings and
environmental and public health benefits result-
ing from the program; and
‘‘(E) the plan of the eligible entity for edu-
cating farmers, ranchers, and rural small busi-
nesses on the benefits of energy efficiency and re-
newable energy development.
‘‘(d) USE OF GRANT FUNDS.—A recipient of a grant
under subsection (a) shall use the grant funds to—
‘‘(1)(A) conduct energy audits for farmers,
ranchers, and rural small businesses to provide farm-
ers, ranchers, and rural small businesses rec-
ommendations for energy efficiency and renewable en-
ergy development opportunities; and
‘‘(B) conduct workshops on that subject as ap-
propriate;
‘‘(2) make farmers, ranchers, and rural small
businesses aware of, and ensure that they have access
to—
‘‘(A) financial assistance under section
388G; and
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‘‘(B) other Federal, State, and local finan-
cial assistance programs for which farmers,
ranchers, and rural small businesses may be eli-
gible; and
‘‘(3) arrange private financial assistance to
farmers, ranchers, and rural small businesses on fa-
vorable terms.
‘‘(e) COST SHARING.—
‘‘(1) IN GENERAL.—A recipient of a grant under
subsection (a) that conducts an energy audit for a
farmer, rancher, or rural small business under sub-
section (d)(1) shall require that, as a condition to the
conduct of the energy audit, the farmer, rancher, or
rural small business pay at least 25 percent of the
cost of the audit.
‘‘(2) IMPLEMENTATION OF RECOMMENDATIONS.—
If a farmer, rancher, or rural small business substan-
tially implements the recommendations made in con-
nection with an energy audit, the Secretary may re-
imburse the farmer, rancher, or rural small business
the amount that is equal to the share of the cost paid
by the farmer, rancher, or rural small business under
paragraph (1).
‘‘(f) REPORTS.—The Secretary shall submit to the
Committee on Agriculture of the House of Representatives
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and the Committee on Agriculture, Nutrition, and Forestry
of the Senate an annual report on the implementation of
this section.
‘‘(g) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $15,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388G. LOANS, LOAN GUARANTEES, AND GRANTS TO
FARMERS, RANCHERS, AND RURAL SMALL
BUSINESSES FOR RENEWABLE ENERGY SYS-
TEMS AND ENERGY EFFICIENCY IMPROVE-
MENTS.
‘‘(a) IN GENERAL.—In addition to exercising author-
ity to make loans and loan guarantees under other law,
the Secretary shall make loans, loan guarantees, and grants
to farmers, ranchers, and rural small businesses to—
‘‘(1) purchase renewable energy systems; and
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‘‘(2) make energy efficiency improvements.
‘‘(b) ELIGIBILITY OF FARMERS AND RANCHERS.—To
be eligible to receive a grant under subsection (a) for a fiscal
year, a farmer or rancher shall have produced not more
than $1,000,000 in market value of agricultural products
during the preceding fiscal year, as determined by the Sec-
retary.
‘‘(c) COST SHARING.—
‘‘(1) RENEWABLE ENERGY SYSTEMS.—
‘‘(A) IN GENERAL.—
‘‘(i) GRANTS.—The amount of a grant
made under subsection (a) for a renewable
energy system shall not exceed 30 percent of
the cost of the renewable energy system.
‘‘(ii) MAXIMUM AMOUNT OF COMBINED
GRANT AND LOAN.—The combined amount
of a grant and loan made or guaranteed
under subsection (a) for a renewable energy
system shall not exceed 60 percent of the
cost of the renewable energy system.
‘‘(B) 
FACTORS.—In 
determining 
the
amount of a grant or loan under subparagraph
(A), the Secretary shall take into consideration—
‘‘(i) the type of renewable energy sys-
tem to be purchased;
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‘‘(ii) the estimated quantity of energy
to be generated or displaced by the renew-
able energy system;
‘‘(iii) the expected environmental bene-
fits of the renewable energy system;
‘‘(iv) the extent to which the renewable
energy system will be replicable; and
‘‘(v) other factors as appropriate.
‘‘(2) ENERGY EFFICIENCY IMPROVEMENTS.—
‘‘(A) IN GENERAL.—
‘‘(i) GRANTS.—The amount of a grant
made under subsection (a) for an energy ef-
ficiency improvement shall not exceed 25
percent of the cost of the energy efficiency
improvement.
‘‘(ii) MAXIMUM AMOUNT OF COMBINED
GRANT AND LOAN.—The combined amount
of a grant and loan made or guaranteed
under subsection (a) for an energy efficiency
project shall not exceed 50 percent of the
cost of the energy efficiency improvement.
‘‘(B) 
FACTORS.—In 
determining 
the
amount of a grant or loan under subparagraph
(A), the Secretary shall take into consideration—
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‘‘(i) the estimated length of time it
would take for the energy savings generated
by the improvement to equal the cost of the
improvement;
‘‘(ii) the amount of energy savings ex-
pected to be derived from the improvement;
and
‘‘(iii) other factors as appropriate.
‘‘(d) INTEREST RATE.—A loan made or guaranteed
under subsection (a) shall bear interest at a rate not exceed-
ing 4 percent.
‘‘(e) ENERGY AUDIT AND RENEWABLE ENERGY DE-
VELOPMENT PROGRAM.—
‘‘(1) PREFERENCE.—In making loans, loan
guarantees, and grants under subsection (a), the Sec-
retary shall give preference to participants in the en-
ergy audit and renewable energy development pro-
gram under section 388F.
‘‘(2) RESERVATION OF FUNDING.—The Secretary
shall reserve at least 25 percent of the funds made
available to carry out this section for each of fiscal
years 2002 through 2006 to participants in the en-
ergy audit and renewable energy development pro-
gram under section 388F.
‘‘(f) FUNDING.—
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‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $33,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘(3) LOAN AND INTEREST SUBSIDIES.—In the
case of a loan or loan guarantee under subsection (a),
the Secretary shall use funds under paragraph (1) to
pay the cost of loan and interest subsidies necessary
to carry out this section.
‘‘SEC. 388H. HYDROGEN AND FUEL CELL TECHNOLOGIES
PROGRAM.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) fuel cells are a highly efficient, clean, and
flexible technology for generating electricity from hy-
drogen that promises to improve the environment,
electricity reliability, and energy security;
‘‘(2)(A) because fuel cells can be made in any
size, fuel cells can be used for a wide variety of farm
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applications, including powering farm vehicles,
equipment, houses, and other operations; and
‘‘(B) much of the initial use of fuel cells is likely
to be in remote and off-grid applications in rural
areas; and
‘‘(3) hydrogen is a clean and flexible fuel that
can play a critical role in storing and transporting
energy produced on farms from renewable sources (in-
cluding biomass, wind, and solar energy).
‘‘(b) GRANT PROGRAM.—The Secretary of Agriculture,
in consultation with the Secretary of Energy, shall establish
a program under which the Secretary of Agriculture shall
competitively award grants to, or enter into contracts or
cooperative agreements with, eligible entities for—
‘‘(1) projects to demonstrate the use of hydrogen
technologies and fuel cell technologies in farm, ranch,
and rural applications; and
‘‘(2) as appropriate, studies of the technical, en-
vironmental, and economic viability, in farm, ranch,
and rural applications, of innovative hydrogen and
fuel cell technologies not ready for demonstration.
‘‘(c) ELIGIBLE ENTITIES.—Under subsection (b), the
Secretary may make a grant to or enter into a contract
or cooperative agreement with—
‘‘(1) a Federal research agency;
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‘‘(2) a national laboratory;
‘‘(3) a college or university or a research founda-
tion maintained by a college or university;
‘‘(4) a private organization with an established
and demonstrated capacity to perform research or
technology transfer;
‘‘(5) a State agricultural experiment station;
‘‘(6) an individual; or
‘‘(7) a consortium comprised of entities described
in paragraphs (1) through (6).
‘‘(d) SELECTION CRITERIA.—In selecting projects for
grants, contracts, and cooperative agreements under sub-
section (b)(1), the Secretary shall give preference to projects
that demonstrate technologies that—
‘‘(1) are innovative;
‘‘(2) use renewable energy sources;
‘‘(3) generate both usable electricity and heat;
‘‘(4) provide significant environmental benefits;
‘‘(5) are likely to be economically competitive;
and
‘‘(6) have potential for commercialization as
mass-produced, farm- or ranch-sized systems.
‘‘(e) COST SHARING.—The amount of financial assist-
ance provided for a project under a grant, contract, or coop-
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erative agreement under subsection (b) shall not exceed 50
percent of the cost of the project.
‘‘(f) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subtitle, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $5,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘SEC. 388I. TECHNICAL ASSISTANCE FOR FARMERS AND
RANCHERS TO DEVELOP RENEWABLE EN-
ERGY RESOURCES.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Cooperative State Research, Education, and Extension
Service in consultation with the Natural Resources Con-
servation Service, regional biomass programs under the De-
partment of Energy, and other entities as appropriate, may
provide for education and technical assistance to farmers
and ranchers for the development and marketing of renew-
able energy resources.
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‘‘(b) ADMINISTRATIVE
EXPENSES.—The Secretary
may retain up to 4 percent of the amounts made available
for each fiscal year to carry out this section to pay adminis-
trative expenses incurred in carrying out this section.
‘‘CHAPTER 3—CARBON 
SEQUESTRATION
RESEARCH, DEVELOPMENT, AND DEM-
ONSTRATION PROGRAM
‘‘SEC. 388J. RESEARCH.
‘‘(a) BASIC RESEARCH.—
‘‘(1) IN GENERAL.—Subject to the availability of
appropriations, the Secretary shall carry out research
to promote understanding of—
‘‘(A) the net sequestration of organic carbon
in soils and plants (including trees); and
‘‘(B) net emissions of other greenhouse gases
from agriculture.
‘‘(2) AGRICULTURAL RESEARCH SERVICE.—The
Secretary, acting through the Agricultural Research
Service, shall collaborate with other Federal agencies
in developing data and carrying out research address-
ing carbon losses and gains in soils and plants (in-
cluding trees) and net emissions of methane and ni-
trous oxide from cultivation and animal management
activities.
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‘‘(3) COOPERATIVE
STATE
RESEARCH, 
EDU-
CATION, AND EXTENSION SERVICE.—
‘‘(A) IN GENERAL.—The Secretary, acting
through the Cooperative State Research, Edu-
cation, and Extension Service, shall establish a
competitive grant program to carry out research
on the matters described in paragraph (1) by eli-
gible entities.
‘‘(B) ELIGIBLE ENTITIES.—Under subpara-
graph (A), the Secretary may make a grant to—
‘‘(i) a Federal research agency;
‘‘(ii) a national laboratory;
‘‘(iii) a college or university or a re-
search foundation maintained by a college
or university;
‘‘(iv) a private research organization
with an established and demonstrated ca-
pacity to perform research or technology
transfer;
‘‘(v) a State agricultural experiment
station;
‘‘(vi) a State forestry agency that has
developed or is developing a forest carbon
sequestration program; or
‘‘(vii) an individual.
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‘‘(C) CONSULTATION
ON
RESEARCH
TOP-
ICS.—Before issuing a request for proposals for
basic research under paragraph (1), the Coopera-
tive State Research, Education, and Extension
Service shall consult with the Agricultural Re-
search Service and the Forest Service to ensure
that proposed research areas are complementary
with and do not duplicate other research projects
funded by the Department or other Federal agen-
cies.
‘‘(D) 
ADMINISTRATIVE
EXPENSES.—The
Secretary may retain up to 4 percent of the
amounts made available for each fiscal year to
carry out this subsection to pay administrative
expenses incurred in carrying out this sub-
section.
‘‘(b) APPLIED RESEARCH.—
‘‘(1) IN
GENERAL.—The Secretary shall carry
out applied research in the areas of soil science,
agronomy, agricultural economics, forestry, and other
agricultural sciences to—
‘‘(A) promote understanding of—
‘‘(i) how agricultural and forestry
practices affect the sequestration of organic
and inorganic carbon in soils and plants
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(including trees) and net emissions of other
greenhouse gases;
‘‘(ii) how changes in soil carbon pools
in soils and plants (including trees) are
cost-effectively measured, monitored, and
verified; and
‘‘(iii) how public programs and pri-
vate market approaches can be devised to
incorporate carbon sequestration in a
broader societal greenhouse gas emission re-
duction effort;
‘‘(B) develop methods for establishing base-
lines for measuring the quantities of carbon and
other greenhouse gases sequestered; and
‘‘(C) evaluate leakage, performance, and
permanence issues.
‘‘(2) REQUIREMENTS.—To the maximum extent
practicable, applied research under paragraph (1)
shall—
‘‘(A) use existing technologies and methods;
and
‘‘(B) provide methodologies that are acces-
sible to a nontechnical audience.
‘‘(3) MINIMIZATION
OF
ADVERSE
ENVIRON-
MENTAL IMPACTS.—All applied research under para-
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graph (1) shall be conducted with an emphasis on
minimizing adverse environmental impacts.
‘‘(4) NATURAL RESOURCES AND THE ENVIRON-
MENT.—The Secretary, acting through the Natural
Resources Conservation Service and the Forest Serv-
ice, shall collaborate with other Federal agencies in
developing new measuring techniques and equipment
or adapting existing techniques and equipment to en-
able cost-effective and accurate monitoring and
verification, for a wide range of agricultural and for-
estry practices, of—
‘‘(A) changes in carbon content in soils and
plants (including trees); and
‘‘(B) net emissions of other greenhouse
gases.
‘‘(5) COOPERATIVE
STATE
RESEARCH, 
EDU-
CATION, AND EXTENSION SERVICE.—
‘‘(A) IN GENERAL.—The Secretary, acting
through the Cooperative State Research, Edu-
cation, and Extension Service and the Forest
Service, shall establish a competitive grant pro-
gram to encourage research on the matters de-
scribed in paragraph (1) by eligible entities.
‘‘(B) ELIGIBLE ENTITIES.—Under subpara-
graph (A), the Secretary may make a grant to—
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‘‘(i) a Federal research agency;
‘‘(ii) a national laboratory;
‘‘(iii) a college or university or a re-
search foundation maintained by a college
or university;
‘‘(iv) a private research organization
with an established and demonstrated ca-
pacity to perform research or technology
transfer;
‘‘(v) a State agricultural experiment
station;
‘‘(vi) a State forestry agency that has
developed or is developing a forest carbon
sequestration program; or
‘‘(vii) an individual.
‘‘(C) CONSULTATION
ON
RESEARCH
TOP-
ICS.—Before issuing a request for proposals for
applied research under paragraph (1), the Coop-
erative State Research, Education, and Exten-
sion Service and the Forest Service shall consult
with the Natural Resources Conservation Service
and the Agricultural Research Service to ensure
that proposed research areas are complementary
with and do not duplicate research projects fund-
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ed by the Department of Agriculture or other
Federal agencies.
‘‘(D) 
ADMINISTRATIVE
EXPENSES.—The
Secretary, acting through the Cooperative State
Research, Education, and Extension Service,
may retain up to 4 percent of the amounts made
available for each fiscal year to carry out this
subsection to pay administrative expenses in-
curred in carrying out this subsection.
‘‘(c) RESEARCH CONSORTIA.—
‘‘(1) IN GENERAL.—The Secretary may designate
not more than 2 research consortia to carry out re-
search projects under this section, with the require-
ment that the consortia propose to conduct basic re-
search under subsection (a) and applied research
under subsection (b) .
‘‘(2) SELECTION.—The consortia shall be selected
on a competitive basis by the Cooperative State Re-
search, Education, and Extension Service.
‘‘(3) ELIGIBLE
CONSORTIUM
PARTICIPANTS.—
Entities eligible to participate in a consortium
include—
‘‘(A) a college or university or a research
foundation maintained by a college or univer-
sity;
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‘‘(B) a private research institution;
‘‘(C) a State agency;
‘‘(D) an Indian tribe (as defined in section
4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b));
‘‘(E) an agency of the Department of Agri-
culture;
‘‘(F) a research center of the National Aero-
nautics and Space Administration, the Depart-
ment of Energy, or any other Federal agency;
‘‘(G) an agricultural business or organiza-
tion with demonstrated expertise in areas cov-
ered by this section; and
‘‘(H) a representative of the private sector
with demonstrated expertise in the areas.
‘‘(4) RESERVATION
OF
FUNDING.—If the Sec-
retary designates 1 or 2 consortia, the Secretary shall
reserve for research projects carried out by the consor-
tium or consortia not more than 25 percent of the
amounts made available to carry out this section for
a fiscal year.
‘‘(d) STANDARDS
FOR
MEASURING
CARBON
AND
OTHER GREENHOUSE GAS CONTENT.—
‘‘(1) CONFERENCE.—Not later than 3 years after
the date of enactment of this subtitle, the Secretary
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shall convene a conference of key scientific experts on
carbon sequestration from various sectors (including
the government, academic, and private sectors) to—
‘‘(A) discuss benchmark standards for meas-
uring the carbon content of soils and plants (in-
cluding trees) and net emissions of other green-
house gases;
‘‘(B) propose techniques and modeling ap-
proaches for measuring carbon content with a
level of precision that is agreed on by the par-
ticipants in the conference; and
‘‘(C) evaluate results of analyses on base-
line, permanence, and leakage issues.
‘‘(2) DEVELOPMENT
OF
BENCHMARK
STAND-
ARDS.—
‘‘(A) IN GENERAL.—The Secretary shall de-
velop benchmark standards for measuring the
carbon content of soils and plants (including
trees) based on—
‘‘(i) information from the conference
under paragraph (1);
‘‘(ii) research conducted under this sec-
tion; and
‘‘(iii) other information available to
the Secretary.
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‘‘(B) OPPORTUNITY
FOR
PUBLIC
COM-
MENT.—The Secretary shall provide an oppor-
tunity for the public to comment on the bench-
mark standards developed under subparagraph
(A).
‘‘(3) REPORT.—Not later than 180 days after the
conclusion of the conference under paragraph (1), the
Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the
Senate a report on the results of the conference.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $25,000,000 for
each of fiscal years 2002 through 2006.
‘‘(2) ALLOCATION.—
‘‘(A) IN GENERAL.—Of the amounts made
available to carry out this section for a fiscal
year, at least 50 percent shall be allocated for
competitive grants by the Cooperative State Re-
search, Education, and Extension Service.
‘‘(B) 
ADMINISTRATIVE
EXPENSES.—The
Secretary may retain up to 4 percent of the
amounts made available for each fiscal year to
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carry out this section to pay administrative ex-
penses incurred in carrying out this section.
‘‘SEC. 388K. DEMONSTRATION PROJECTS AND OUTREACH.
‘‘(a) DEMONSTRATION PROJECTS.—
‘‘(1) 
DEVELOPMENT
OF
MONITORING
PRO-
GRAMS.—
‘‘(A) IN GENERAL.—The Secretary, in co-
operation with local extension agents, experts
from land grant universities, and other local ag-
ricultural or conservation organizations, shall
develop user-friendly programs that combine
measurement tools and modeling techniques into
integrated packages to monitor the carbon se-
questering benefits of conservation practices and
net changes in greenhouse gas emissions.
‘‘(B) BENCHMARK LEVELS OF PRECISION.—
The Secretary shall administer programs devel-
oped under subparagraph (A) in a manner that
achieves, to the maximum extent practicable,
benchmark levels of precision in the measure-
ment, in a cost-effective manner, of benefits and
changes described in subparagraph (A).
‘‘(2) PROJECTS.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish a program under which the monitoring
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programs developed under paragraph (1) are
used in projects to demonstrate the feasibility of
methods 
of 
measuring, 
verifying, 
and
monitoring—
‘‘(i) changes in organic carbon content
and other carbon pools in soils and plants
(including trees); and
‘‘(ii) net changes in emissions of other
greenhouse gases.
‘‘(B) EVALUATION OF IMPLICATIONS.—The
projects under subparagraph (A) shall include
evaluation of the implications for reassessed
baselines, carbon or other greenhouse gas leakage,
and the permanence of sequestration.
‘‘(C) SUBMISSION
OF
PROPOSALS.—Pro-
posals for projects under subparagraph (A) shall
be submitted by the appropriate agency of each
State, in consultation with interested local juris-
dictions and State agricultural and conservation
organizations.
‘‘(D) LIMITATION.—Not more than 10
projects under subparagraph (A) may be ap-
proved in conjunction with applied research
projects under section 388J(b) until benchmark
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measurement and assessment standards are es-
tablished under section 388J(d).
‘‘(b) OUTREACH.—
‘‘(1) 
IN
GENERAL.—The 
Secretary, 
acting
through the Cooperative State Research, Education,
and Extension Service, shall widely disseminate in-
formation about the economic and environmental ben-
efits that can be generated by adoption of conserva-
tion practices that increase sequestration of carbon
and reduce emissions of other greenhouse gases.
‘‘(2) PROJECT RESULTS.—The Secretary, acting
through the Cooperative State Research, Education,
and Extension Service, shall provide for the dissemi-
nation to farmers, ranchers, private forest land-
owners, and appropriate State agencies in each State
of information concerning—
‘‘(A) the results of demonstration projects
under subsection (a)(2); and
‘‘(B) the manner in which the methods dem-
onstrated in the projects might be applicable to
the operations of the farmers, ranchers, private
forest landowners, and State agencies.
‘‘(3) POLICY OUTREACH.—The Secretary, acting
through the Cooperative State Research, Education,
and Extension Service, shall disseminate information
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on the connection between global climate change miti-
gation strategies and agriculture and forestry, so that
farmers, ranchers, private forest landowners, and
State agencies may better understand the global im-
plications of the activities of the farmers, ranchers,
private forest landowners, and State agencies.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $10,000,000 for
each of fiscal years 2002 through 2006.
‘‘(2) ALLOCATION.—Of the amounts made avail-
able to carry out this section for a fiscal year, at least
50 percent shall be allocated for demonstration
projects under subsection (a)(2).’’.
SEC. 903. BIOMASS RESEARCH AND DEVELOPMENT ACT OF
2000.
(a) FUNDING.—The Biomass Research and Develop-
ment Act of 2000 (7 U.S.C. 7624 note; Public Law 106–
224) is amended—
(1) in section 307, by striking subsection (f);
(2) by redesignating section 310 as section 311;
and
(3) by inserting after section 309 the following:
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‘‘SEC. 310. FUNDING.
‘‘(a) TRANSFERS BY THE SECRETARY OF THE TREAS-
URY.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this subsection, and on Octo-
ber 1, 2002, and each October 1 thereafter through
October 1, 2005, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this title
$15,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this title the funds transferred under
paragraph (1), without further appropriation.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to amounts transferred under subsection (a), there are
authorized to be appropriated to carry out this title
$49,000,000 for each of fiscal years 2002 through 2006.’’.
(b) TERMINATION OF AUTHORITY.—Section 311 of the
Biomass Research and Development Act of 2000 (7 U.S.C.
7624 note; Public Law 106–224) (as redesignated by sub-
section (a)) is amended by striking ‘‘December 31, 2005’’
and inserting ‘‘September 30, 2006’’.
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SEC. 904. RURAL ELECTRIFICATION ACT OF 1936.
Title I of the Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.) is amended by adding at the end the
following:
‘‘SEC. 20. FINANCIAL AND TECHNICAL ASSISTANCE FOR RE-
NEWABLE ENERGY PROJECTS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) RENEWABLE ENERGY.—The term ‘renewable
energy’ means energy derived from a wind, solar, bio-
mass, geothermal, or hydrogen source.
‘‘(2) RURAL AREA.—The term ‘rural area’ in-
cludes any area that is not within the boundaries
of—
‘‘(A) a city, town, village, or borough hav-
ing a population of more than 20,000; or
‘‘(B) an urbanized area (as determined by
the Secretary).
‘‘(b) LOANS, LOAN GUARANTEES, AND GRANTS.—The
Secretary shall make loans, loan guarantees, and grants to
rural electric cooperatives and other rural electric utilities
(as determined by the Secretary) to promote the develop-
ment of economically and environmentally sustainable re-
newable energy projects to serve the needs of rural commu-
nities or for rural economic development.
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‘‘(c) INTEREST RATE.—A loan made or guaranteed
under subsection (b) shall bear interest at a rate not exceed-
ing 4 percent.
‘‘(d) USE OF FUNDS.—
‘‘(1) GRANTS.—A recipient of a grant under sub-
section (a) may use the grant funds to pay up to 75
percent of the cost of an economic feasibility study or
technical assistance for a renewable energy project.
‘‘(2) LOANS.—If a renewable energy project is
determined to be economically feasible, a recipient of
a loan or loan guarantee under subsection (a) may
use the loan funds to pay a percentage of the cost of
the project determined by the Secretary.
‘‘(e) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this section, and on October
1, 2002, and each October 1 thereafter through Octo-
ber 1, 2005, out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this sec-
tion $9,000,000, to remain available until expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
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‘‘(3) LOAN AND INTEREST SUBSIDIES.—In the
case of a loan or loan guarantee under subsection (a),
the Secretary shall use funds under paragraph (1) to
pay the cost of loan and interest subsidies necessary
to carry out this section.’’.
SEC. 905. CARBON SEQUESTRATION DEMONSTRATION PRO-
GRAM.
(a) FINDINGS.—Congress finds that—
(1) greenhouse gas emissions resulting from
human activity present potential risks and potential
opportunities for agricultural and forestry produc-
tion;
(2) there is a need to identify cost-effective meth-
ods that can be used in the agricultural and forestry
sectors to reduce the threat of climate change;
(3) deforestation and other land use changes ac-
count 
for 
approximately 
1,600,000,000 
of 
the
7,900,000,000 metric tons of the average annual
worldwide quantity of carbon emitted during the
1990s;
(4) ocean and terrestrial systems each sequestered
approximately 2,300,000,000 metric tons of carbon
annually, resulting in a sequestration of 60 percent of
the annual human-induced emissions of carbon dur-
ing the 1990s;
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(5) there are opportunities for increasing the
quantity of carbon that can be stored in terrestrial
systems through improved, human-induced agricul-
tural and forestry practices;
(6) increasing the carbon content of soil helps to
reduce erosion, reduce flooding, minimize the effects of
drought, prevent nutrients and pesticides from wash-
ing into water bodies, and contribute to water infil-
tration, air and water holding capacity, and good
seed germination and plant growth;
(7) tree planting and wetland restoration could
play a major role in sequestering carbon and reduc-
ing greenhouse gas concentrations in the atmosphere;
(8) nitrogen management is a cost-effective meth-
od of addressing nutrient overenrichment in the estu-
aries of the United States and of reducing emissions
of nitrous oxide;
(9) animal feed and waste management can be
cost-effective methods to address water quality issues
and reduce emissions of methane; and
(10) there is a need to—
(A) demonstrate that carbon sequestration
in soils, plants, and forests and reductions in
greenhouse gas emissions through nitrogen and
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animal feed and waste management can be
measured and verified; and
(B) develop and refine quantification,
verification, and auditing methodologies for car-
bon sequestration and greenhouse gas emission
reductions on a project by project basis.
(b) PROGRAM.—Title IV of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7621 et seq.) (as amended by section 750) is amended by
adding at the end the following:
‘‘SEC. 412. CARBON SEQUESTRATION DEMONSTRATION
PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE
PROJECT.—The term ‘eligible
project’ means a project that is likely to result in—
‘‘(A) demonstrable reductions in net emis-
sions of greenhouse gases; or
‘‘(B) demonstrable net increases in the
quantity of carbon sequestered in soils and for-
ests.
‘‘(2) ENVIRONMENTAL TRADE.—The term ‘envi-
ronmental trade’ means a transaction between an
emitter of a greenhouse gas and an agricultural pro-
ducer or farmer-owned cooperative under which the
emitter pays to the agricultural producer or farmer-
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owned cooperative a fee to sequester carbon or other-
wise reduce emissions of greenhouse gases.
‘‘(3) PANEL.—The term ‘panel’ means the panel
of experts established under subsection (b)(4)(A).
‘‘(4) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting in consultation
with—
‘‘(A) the Under Secretary of Agriculture for
Natural Resources and Environment;
‘‘(B) the Under Secretary of Agriculture for
Research, Education, and Economics;
‘‘(C) the Chief Economist of the Depart-
ment; and
‘‘(D) the panel.
‘‘(b) DEMONSTRATION PROGRAM.—
‘‘(1) ESTABLISHMENT.—Subject to the avail-
ability of appropriations, the Secretary shall establish
a program to provide grants, on a competitive, cost-
shared basis, to agricultural producers, non-industrial
private forest owners and farmer-owned cooperatives,
to assist in paying the costs incurred in measuring,
estimating, monitoring, verifying, auditing, and test-
ing methodologies involved in environmental trades
(including costs incurred in employing certified inde-
pendent third persons to carry out those activities).
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‘‘(2) CONDITIONS FOR RECEIPT OF GRANT.—As a
condition of the acceptance of a grant under para-
graph (1), an agricultural producer, non-industrial
forest owner and farmer-owned cooperatives shall—
‘‘(A) establish a carbon and greenhouse gas
monitoring, verification, and reporting system
that meets such requirements as the Secretary
shall prescribe; and
‘‘(B) under the system and through the use
of an independent third party for any necessary
monitoring, verifying, reporting, and auditing,
measure and report to the Secretary the quantity
of carbon sequestered, or the quantity of green-
house gas emissions reduced, as a result of the
conduct of an eligible project.
‘‘(3) CRITERIA FOR AWARD OF GRANT.—
‘‘(A) IN GENERAL.—In awarding a grant
for an eligible project under paragraph (1), the
Secretary shall take into consideration—
‘‘(i) the likelihood of the eligible project
in succeeding in achieving greenhouse gas
emissions reductions and net carbon seques-
tration increases; and
‘‘(ii) the usefulness of the information
to be obtained from the eligible project in
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determining how best to quantify, monitor,
and verify sequestered carbon or reductions
in greenhouse gas emissions.
‘‘(B) ELIGIBILITY CRITERIA.—To be eligible
for a grant under paragraph (1), a project shall
(as determined by the Secretary)—
‘‘(i) be designed to—
‘‘(I) achieve long-term sequestra-
tion of carbon or long-term reductions
in greenhouse gas emissions;
‘‘(II) address concerns regarding
leakage and permanence; or
‘‘(III) promote additionality; and
‘‘(ii) not involve—
‘‘(I) the reforestation of land that
has been deforested since 1990; or
‘‘(II) the conversion of native
grassland.
‘‘(C) PRIORITY
CRITERIA.—The Secretary
shall give priority in awarding a grant under
paragraph (1) to an eligible project that—
‘‘(i) involves multiple parties, a whole
farm approach, or any other approach, such
as the aggregation of land areas, that
would—
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‘‘(I) increase the environmental
benefits or reduce the transaction costs
of the eligible project; and
‘‘(II) reduce the costs of meas-
uring, monitoring, and verifying any
net sequestration of carbon or net re-
duction in greenhouse gas emissions;
and
‘‘(ii) provides certain benefits, such as
improvements in—
‘‘(I) soil fertility;
‘‘(II) wildlife habitat;
‘‘(III) water quality;
‘‘(IV) soil erosion management;
‘‘(V) the use of renewable resources
to produce energy;
‘‘(VI) the avoidance of ecosystem
fragmentation; and
‘‘(VII) the promotion of ecosystem
restoration with native species.
‘‘(4) PANEL.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish a panel to provide advice and rec-
ommendations to the Secretary with respect to
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criteria for awarding grants under this sub-
section.
‘‘(B) COMPOSITION.—The panel shall be
composed of the following representatives, to be
appointed by the Secretary:
‘‘(i) Experts from each of—
‘‘(I) the Department;
‘‘(II) the Environmental Protec-
tion Agency; and
‘‘(III) the Department of Energy.
‘‘(ii) Experts from nongovernmental
and academic entities.
‘‘(5) PAYMENT OF GRANT FUNDS.—The Secretary
shall provide a grant awarded under this section in
such number of installments as is necessary to ensure
proper implementation of an eligible project.
‘‘(c) DISSEMINATION OF INFORMATION.—As soon as
practicable after the date of enactment of this section, the
Secretary shall establish an Internet site through which ag-
ricultural producers, non-industrial private forest owners
and farmer-owned cooperatives may obtain information
concerning—
‘‘(1) potential environmental trades; and
‘‘(2) activities of the Secretary under this sec-
tion.
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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$20,000,000 for each of fiscal years 2002 through 2006, of
which $1,000,000 for each of fiscal years 2002 through 2006
shall be made available to carry out farmer-owned coopera-
tive carbon environmental trade pilot projects, in accord-
ance with this section.’’.
SEC. 906. SENSE OF CONGRESS CONCERNING NATIONAL
RENEWABLE FUELS STANDARD.
It is the sense of Congress that—
(1) Congress supports and encourages adoption
of a national renewable fuels program, under which
the motor vehicle fuel placed into commerce by a re-
finer, blender, or importer shall be composed of renew-
able fuel measured according to a statutory formula
for specified calendar years; and
(2) the Secretary of Agriculture should ensure
that the policies and programs of the Department of
Agriculture promote the production of fuels from re-
newable fuel sources.
SEC. 907. SENSE OF CONGRESS CONCERNING THE BIO-
ENERGY PROGRAM OF THE DEPARTMENT OF
AGRICULTURE.
It is the sense of Congress that—
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(1) ethanol and biofuel production capacity will
be needed to phase out the use of methyl tertiary butyl
ether in gasoline and the dependence of the United
States on foreign oil; and
(2) the bioenergy program of the Department of
Agriculture under part 1424 of title 7, Code of Fed-
eral Regulations, should be continued and expanded.
TITLE X—MISCELLANEOUS
Subtitle A—Country of Origin and
Quality Grade Labeling
SEC. 1001. COUNTRY OF ORIGIN LABELING.
The Agricultural Marketing Act of 1946 (7 U.S.C.
1621 et seq.) is amended by adding at the end the following:
‘‘Subtitle D—Country of Origin
Labeling
‘‘SEC. 281. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) BEEF.—The term ‘beef’ means meat pro-
duced from cattle (including veal).
‘‘(2) COVERED COMMODITY.—
‘‘(A) IN GENERAL.—The term ‘covered com-
modity’ means—
‘‘(i) muscle cuts of beef, lamb, and
pork;
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‘‘(ii) ground beef, ground lamb, and
ground pork;
‘‘(iii) farm-raised fish;
‘‘(iv) wild fish;
‘‘(v) a perishable agricultural com-
modity; and
‘‘(vi) peanuts.
‘‘(B) EXCLUSIONS.—The term ‘covered com-
modity’ does not include—
‘‘(i) processed beef, lamb, and pork food
items; and
‘‘(ii) frozen entrees containing beef,
lamb, and pork.
‘‘(3) FARM-RAISED FISH.—The term ‘farm-raised
fish’ includes—
‘‘(A) farm-raised shellfish; and
‘‘(B) fillets, steaks, nuggets, and any other
flesh from a farm-raised fish or shellfish.
‘‘(4) FOOD SERVICE ESTABLISHMENT.—The term
‘food service establishment’ means a restaurant, cafe-
teria, lunch room, food stand, saloon, tavern, bar,
lounge, or other similar facility operated as an enter-
prise engaged in the business of selling food to the
public.
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‘‘(5) LAMB.—The term ‘lamb’ means meat, other
than mutton, produced from sheep.
‘‘(6) PERISHABLE
AGRICULTURAL
COMMODITY;
RETAILER.—The terms ‘perishable agricultural com-
modity’ and ‘retailer’ have the meanings given the
terms in section 1(b) of the Perishable Agricultural
Commodities Act, 1930 (7 U.S.C. 499a(b)).
‘‘(7) PORK.—The term ‘pork’ means meat pro-
duced from hogs.
‘‘(8) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Agri-
cultural Marketing Service.
‘‘(9) WILD FISH.—
‘‘(A) IN
GENERAL.—The term ‘wild fish’
means naturally-born or hatchery-raised fish
and shellfish harvested in the wild.
‘‘(B) INCLUSIONS.—The term ‘wild fish’ in-
cludes a fillet, steak, nugget, and any other flesh
from wild fish or shellfish.
‘‘(C) EXCLUSIONS.—The term ‘wild fish’ ex-
cludes net-pen aquacultural or other farm-raised
fish.
‘‘SEC. 282. NOTICE OF COUNTRY OF ORIGIN.
‘‘(a) IN GENERAL.—
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‘‘(1) REQUIREMENT.—Except as provided in
subsection (b), a retailer of a covered commodity shall
inform consumers, at the final point of sale of the cov-
ered commodity to consumers, of the country of origin
of the covered commodity.
‘‘(2) UNITED STATES COUNTRY OF ORIGIN.—A
retailer of a covered commodity may designate the
covered commodity as having a United States country
of origin only if the covered commodity—
‘‘(A) in the case of beef, lamb, and pork, is
exclusively from an animal that is exclusively
born, raised, and slaughtered in the United
States;
‘‘(B) in the case of farm-raised fish, is
hatched, raised, harvested, and processed in the
United States;
‘‘(C) in the case of wild fish, is—
‘‘(i) harvested in waters of the United
States, a territory of the United States, or
a State; and
‘‘(ii) processed in the United States, a
territory of the United States, or a State,
including the waters thereof; and
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‘‘(D) in the case of a perishable agricultural
commodities or peanut, is exclusively produced
in the United States.
‘‘(3) WILD FISH AND FARM-RAISED FISH.—The
notice of country of origin for wild fish and farm-
raised fish shall distinguish between wild fish and
farm-raised fish.
‘‘(b) EXEMPTION
FOR FOOD SERVICE ESTABLISH-
MENTS.—Subsection (a) shall not apply to a covered com-
modity if the covered commodity is—
‘‘(1) prepared or served in a food service estab-
lishment; and
‘‘(2)(A) offered for sale or sold at the food service
establishment in normal retail quantities; or
‘‘(B) served to consumers at the food service es-
tablishment.
‘‘(c) METHOD OF NOTIFICATION.—
‘‘(1) IN GENERAL.—The information required by
subsection (a) may be provided to consumers by
means of a label, stamp, mark, placard, or other clear
and visible sign on the covered commodity or on the
package, display, holding unit, or bin containing the
commodity at the final point of sale to consumers.
‘‘(2) LABELED
COMMODITIES.—If the covered
commodity is already individually labeled for retail
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sale regarding country of origin, the retailer shall not
be required to provide any additional information to
comply with this section.
‘‘(d) AUDIT VERIFICATION SYSTEM.—The Secretary
may require that any person that prepares, stores, handles,
or distributes a covered commodity for retail sale maintain
a verifiable recordkeeping audit trail that will permit the
Secretary to ensure compliance with the regulations pro-
mulgated under section 284.
‘‘(e) INFORMATION.—Any person engaged in the busi-
ness of supplying a covered commodity to a retailer shall
provide information to the retailer indicating the country
of origin of the covered commodity.
‘‘(f) CERTIFICATION OF ORIGIN.—
‘‘(1) MANDATORY
IDENTIFICATION.—The Sec-
retary shall not use a mandatory identification sys-
tem to verify the country of origin of a covered com-
modity.
‘‘(2) EXISTING CERTIFICATION PROGRAMS.—To
certify the country of origin of a covered commodity,
the Secretary may use as a model certification pro-
grams in existence on the date of enactment of this
Act, including—
‘‘(A) the carcass grading and certification
system carried out under this Act;
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‘‘(B) the voluntary country of origin beef la-
beling system carried out under this Act;
‘‘(C) voluntary programs established to cer-
tify certain premium beef cuts;
‘‘(D) the origin verification system estab-
lished to carry out the child and adult care food
program established under section 17 of the
Richard B. Russell National School Lunch Act
(42 U.S.C. 1766); or
‘‘(E) the origin verification system estab-
lished to carry out the market access program
under section 203 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5623).
‘‘SEC. 283. ENFORCEMENT.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), section 253 shall apply to a violation of this subtitle.
‘‘(b) WARNINGS.—If the Secretary determines that a
retailer is in violation of section 282, the Secretary shall—
‘‘(1) notify the retailer of the determination of
the Secretary; and
‘‘(2) provide the retailer a 30-day period, begin-
ning on the date on which the retailer receives the no-
tice under paragraph (1) from the Secretary, during
which the retailer may take necessary steps to comply
with section 282.
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‘‘(c) FINES.—If, on completion of the 30-day period
described in subsection (c)(2), the Secretary determines that
the retailer has willfully violated section 282, after pro-
viding notice and an opportunity for a hearing before the
Secretary with respect to the violation, the Secretary may
fine the retailer in an amount determined by the Secretary.
‘‘SEC. 284. REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary may promulgate
such regulations as are necessary to carry out this subtitle.
‘‘(b) PARTNERSHIPS WITH STATES.—In promulgating
the regulations, the Secretary shall, to the maximum extent
practicable, enter into partnerships with States with en-
forcement infrastructure to carry out this subtitle.
‘‘SEC. 285. APPLICATION.
‘‘This subtitle shall apply to the retail sale of a covered
commodity beginning on the date that is 180 days after
the date of the enactment of this subtitle.’’.
SEC. 1002. QUALITY GRADE LABELING OF IMPORTED MEAT
AND MEAT FOOD PRODUCTS.
The Agricultural Marketing Act of 1946 (7 U.S.C.
1621 et seq.) (as amended by section 1001) is amended by
adding at the end the following:
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‘‘Subtitle E—Commodity-Specific
Grading Standards
‘‘SEC. 291. DEFINITION OF SECRETARY.
‘‘In this subtitle, the term ‘Secretary’ means the Sec-
retary of Agriculture.
‘‘SEC. 292. QUALITY GRADE LABELING OF IMPORTED MEAT
AND MEAT FOOD PRODUCTS.
‘‘An imported carcass, part thereof, meat, or meat food
product (as defined by the Secretary) shall not bear a label
that indicates a quality grade issued by the Secretary.
‘‘SEC. 293. REGULATIONS.
‘‘The Secretary shall promulgate such regulations as
are necessary to ensure compliance with, and otherwise
carry out, this subtitle.’’.
Subtitle B—Crop Insurance
SEC. 1011. EQUAL CROP INSURANCE TREATMENT OF POTA-
TOES AND SWEET POTATOES.
Section 508(a)(2) of the Federal Crop Insurance Act
(7 U.S.C. 1508(a)(2)) is amended in the first sentence by
striking ‘‘and potatoes’’ and inserting ‘‘, potatoes, and sweet
potatoes’’.
SEC. 1012. CONTINUOUS COVERAGE.
Section 508(e)(4) of the Federal Crop Insurance Act
(7 U.S.C. 1508(e)(4)) is amended—
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(1) in the paragraph heading, by striking ‘‘TEM-
PORARY PROHIBITION’’ and inserting ‘‘PROHIBITION’’;
and
(2) by striking ‘‘through 2005’’ and inserting
‘‘and subsequent’’.
SEC. 1013. QUALITY LOSS ADJUSTMENT PROCEDURES.
Section 508(m)(3) of the Federal Crop Insurance Act
(7 U.S.C. 1508(m)(3)) is amended—
(1) by striking ‘‘The Corporation’’ and inserting
the following:
‘‘(A) REVIEW.—The Corporation’’; and
(2) by striking ‘‘Based on’’ and inserting the fol-
lowing:
‘‘(B) 
PROCEDURES.—Effective 
beginning
not later than the 2003 reinsurance year, based
on’’.
SEC. 1014. CONSERVATION REQUIREMENTS.
(a) HIGHLY ERODIBLE LAND CONSERVATION.—Sec-
tion 1211(1) of the Food Security Act of 1985 (16 U.S.C.
3811(1)) is amended—
(1) in subparagraph (A), by striking ‘‘produc-
tion flexibility’’;
(2) by redesignating subparagraphs (C) and (D)
as subparagraphs (D) and (E), respectively; and
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(3) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) an indemnity payment under the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et
seq.);’’.
(b) WETLAND CONSERVATION.—Section 1221(b) of the
Food Security Act of 1985 (16 U.S.C. 3821(b)) is
amended—
(1) in paragraph (1), by striking ‘‘production
flexibility’’;
(2) by redesignating paragraphs (2) and (3) as
paragraphs (5) and (6), respectively; and
(3) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) A farm storage facility loan made under
section 4(h) of the Commodity Credit Corporation
Charter Act (15 U.S.C. 714b(h)).
‘‘(3) A disaster payment.
‘‘(4) An indemnity payment under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.).’’.
(c) CONTROLLED SUBSTANCES PRODUCTION CON-
TROL.—Section 519(b) of the Controlled Substances Act (21
U.S.C. 889(b)) is amended—
(1) in paragraph (1)—
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(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) contract payments under a contract,
marketing assistance loans, and any type of
price support or payment made available under
the Agricultural Market Transition Act (7
U.S.C. 7201 et seq.), the Commodity Credit Cor-
poration Charter Act (15 U.S.C. 714 et seq.), or
any other Act;’’;
(B) by striking subparagraphs (C) and (D)
and inserting the following:
‘‘(C) an indemnity payment under the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et seq.);
‘‘(D) a disaster payment; or’’;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(3) during the crop year—
‘‘(A) a payment made pursuant to a con-
tract entered into under the environmental qual-
ity incentives program under chapter 4 of sub-
title D of title XII of the Food Security Act of
1985 (16 U.S.C. 3839aa et seq.);
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‘‘(B) a payment under any other provision
of subtitle D of title XII of that Act (16 U.S.C.
3830 et seq.);
‘‘(C) a payment under section 401 or 402 of
the Agricultural Credit Act of 1978 (16 U.S.C.
2201, 2202); or
‘‘(D) a payment, loan, or other assistance
under section 3 or 8 of the Watershed Protection
and Flood Prevention Act (16 U.S.C. 1003 and
1006a).’’.
Subtitle C—Animal Health
Protection
SEC. 1021. SHORT TITLE.
This subtitle may be cited as the ‘‘Animal Health Pro-
tection Act’’.
SEC. 1022. FINDINGS.
Congress finds that—
(1) the prevention, detection, control, and eradi-
cation of diseases and pests of animals are essential
to protect—
(A) animal health;
(B) the health and welfare of the people of
the United States;
(C) the economic interests of the livestock
and related industries of the United States;
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(D) the environment of the United States;
and
(E) interstate commerce and foreign com-
merce of the United States in animals and other
articles;
(2) animal diseases and pests are primarily
transmitted by animals and articles regulated under
this subtitle;
(3) the health of animals is affected by the meth-
ods by which animals and articles are transported in
interstate commerce and foreign commerce;
(4) the Secretary must continue to conduct re-
search on animal diseases and pests that constitute a
threat to the livestock of the United States; and
(5)(A) all animals and articles regulated under
this subtitle are in or affect interstate commerce or
foreign commerce; and
(B) regulation by the Secretary and cooperation
by the Secretary with foreign countries, States or
other jurisdictions, or persons are necessary—
(i) to prevent and eliminate burdens on
interstate commerce and foreign commerce;
(ii) to regulate effectively interstate com-
merce and foreign commerce; and
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(iii) to protect the agriculture, environment,
economy, and health and welfare of the people of
the United States.
SEC. 1023. DEFINITIONS.
In this subtitle:
(1) ANIMAL.—The term ‘‘animal’’ means any
member of the animal kingdom (except a human).
(2) ARTICLE.—The term ‘‘article’’ means any
pest or disease or any material or tangible object that
could harbor a pest or disease.
(3) DISEASE.—The term ‘‘disease’’ means—
(A) any infectious or noninfectious disease
or condition affecting the health of livestock; or
(B) any condition detrimental to produc-
tion of livestock.
(4) ENTER.—The term ‘‘enter’’ means to move
into the commerce of the United States.
(5) EXPORT.—The term ‘‘export’’ means to move
from a place within the territorial limits of the
United States to a place outside the territorial limits
of the United States.
(6) FACILITY.—The term ‘‘facility’’ means any
structure.
(7) IMPORT.—The term ‘‘import’’ means to move
from a place outside the territorial limits of the
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United States to a place within the territorial limits
of the United States.
(8) 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).
(9) INTERSTATE COMMERCE.—The term ‘‘inter-
state commerce’’ means trade, traffic, or other
commerce—
(A) between a place in a State and a place
in another State, or between places within the
same State but through any place outside that
State; or
(B) within the District of Columbia or any
territory or possession of the United States.
(10) LIVESTOCK.—The term ‘‘livestock’’ means
all farm-raised animals.
(11) MEANS OF CONVEYANCE.—The term ‘‘means
of conveyance’’ means any personal property used for
or intended for use for the movement of any other per-
sonal property.
(12) MOVE.—The term ‘‘move’’ means—
(A) to carry, enter, import, mail, ship, or
transport;
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(B) to aid, abet, cause, or induce carrying,
entering, importing, mailing, shipping, or trans-
porting;
(C) to offer to carry, enter, import, mail,
ship, or transport;
(D) to receive in order to carry, enter, im-
port, mail, ship, or transport;
(E) to release into the environment; or
(F) to allow any of the activities described
in this paragraph.
(13) PEST.—The term ‘‘pest’’ means any of the
following that can directly or indirectly injure, cause
damage to, or cause disease in livestock:
(A) A protozoan.
(B) A plant.
(C) A bacteria.
(D) A fungus.
(E) A virus or viroid.
(F) An infectious agent or other pathogen.
(G) An arthropod.
(H) A parasite.
(I) A prion.
(J) A vector.
(K) An animal.
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(L) Any organism similar to or allied with
any of the organisms described in this para-
graph.
(14) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(15) STATE.—The term ‘‘State’’ means any of
the States, the District of Columbia, the Common-
wealth of Puerto Rico, Guam, the Commonwealth of
the Northern Mariana Islands, the Virgin Islands of
the United States, or any territory or possession of
the United States.
(16) THIS SUBTITLE.—Except when used in this
section, the term ‘‘this subtitle’’ includes any regula-
tion or order issued by the Secretary under the au-
thority of this subtitle.
(17) 
UNITED
STATES.—The 
term 
‘‘United
States’’ means all of the States.
SEC. 1024. RESTRICTION ON IMPORTATION OR ENTRY.
(a) IN GENERAL.—The Secretary may prohibit or
restrict—
(1) the importation or entry of any animal, arti-
cle, or means of conveyance, or use of any means of
conveyance or facility, if the Secretary determines
that the prohibition or restriction is necessary to pre-
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vent the introduction into or dissemination within
the United States of any pest or disease of livestock;
(2) the further movement of any animal that has
strayed into the United States if the Secretary deter-
mines that the prohibition or restriction is necessary
to prevent the introduction into or dissemination
within the United States of any pest or disease of
livestock; and
(3) the use of any means of conveyance in con-
nection with the importation or entry of livestock if
the Secretary determines that the prohibition or re-
striction is necessary because the means of conveyance
has not been maintained in a clean and sanitary con-
dition or does not have accommodations for the safe
and proper movement of livestock.
(b) REGULATIONS.—The Secretary may promulgate
regulations requiring that any animal imported or entered
be raised or handled under post-importation quarantine
conditions by or under the supervision of the Secretary for
the purpose of determining whether the animal is or may
be affected by any pest or disease of livestock.
(c) DESTRUCTION OR REMOVAL.—
(1) IN GENERAL.—The Secretary may order the
destruction or removal from the United States of—
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(A) any animal, article, or means of con-
veyance that has been imported but has not en-
tered the United States if the Secretary deter-
mines that destruction or removal from the
United States is necessary to prevent the intro-
duction into or dissemination within the United
States of any pest or disease of livestock;
(B) any animal or progeny of any animal,
article, or means of conveyance that has been im-
ported or entered in violation of this subtitle; or
(C) any animal that has strayed into the
United States if the Secretary determines that
destruction or removal from the United States is
necessary to prevent the introduction into or dis-
semination within the United States of any pest
or disease of livestock.
(2) REQUIREMENTS OF OWNERS.—
(A) ORDERS TO DISINFECT.—The Secretary
may require the disinfection of—
(i) a means of conveyance used in con-
nection with the importation of an animal;
(ii) an individual involved in the im-
portation of an animal and personal arti-
cles of the individual; and
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(iii) any article used in the importa-
tion of an animal.
(B) FAILURE TO COMPLY WITH ORDERS.—
If an owner fails to comply with an order of the
Secretary under this section, the Secretary
may—
(i) take remedial action, destroy, or re-
move from the United States the animal or
progeny of any animal, article, or means of
conveyance as authorized under paragraph
(1); and
(ii) recover from the owner the costs of
any care, handling, disposal, or other action
incurred by the Secretary in connection
with the remedial action, destruction, or re-
moval.
SEC. 1025. EXPORTATION.
(a) IN GENERAL.—The Secretary may prohibit or
restrict—
(1) the exportation of any animal, article, or
means of conveyance if the Secretary determines that
the prohibition or restriction is necessary to prevent
the dissemination from or within the United States of
any pest or disease of livestock;
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(2) the exportation of any livestock if the Sec-
retary determines that the livestock is unfit to be
moved;
(3) the use of any means of conveyance or facil-
ity in connection with the exportation of any animal
or article if the Secretary determines that the prohibi-
tion or restriction is necessary to prevent the dissemi-
nation from or within the United States of any pest
or disease of livestock; or
(4) the use of any means of conveyance in con-
nection with the exportation of livestock if the Sec-
retary determines that the prohibition or restriction
is necessary because the means of conveyance has not
been maintained in a clean and sanitary condition or
does not have accommodations for the safe and proper
movement and humane treatment of livestock.
(b) REQUIREMENTS OF OWNERS.—
(1) ORDERS TO DISINFECT.—The Secretary may
require the disinfection of—
(A) a means of conveyance used in connec-
tion with the exportation of an animal;
(B) an individual involved in the expor-
tation of an animal and personal articles of the
individual; and
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(C) any article used in the exportation of
an animal.
(2) FAILURE TO COMPLY WITH ORDERS.—If an
owner fails to comply with an order of the Secretary
under this section, the Secretary may—
(A) take remedial action with respect to the
animal, article, or means of conveyance referred
to in paragraph (1); and
(B) recover from the owner the costs of any
care, handling, disposal, or other action incurred
by the Secretary in connection with the remedial
action.
(c) CERTIFICATION.—The Secretary may certify the
classification, quality, quantity, condition, processing, han-
dling, or storage of any animal or article intended for ex-
port.
SEC. 1026. INTERSTATE MOVEMENT.
The Secretary may prohibit or restrict—
(1) the movement in interstate commerce of any
animal, article, or means of conveyance if the Sec-
retary determines that the prohibition or restriction
is necessary to prevent the introduction or dissemina-
tion of any pest or disease of livestock; and
(2) the use of any means of conveyance or facil-
ity in connection with the movement in interstate
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commerce of any animal or article if the Secretary
determines that the prohibition or restriction is nec-
essary to prevent the introduction or dissemination of
any pest or disease of livestock.
SEC. 1027. SEIZURE, QUARANTINE, AND DISPOSAL.
(a) IN GENERAL.—The Secretary may hold, seize,
quarantine, treat, destroy, dispose of, or take other remedial
action with respect to—
(1) any animal or progeny of any animal, arti-
cle, or means of conveyance that—
(A) is moving or has been moved in inter-
state commerce or has been imported and en-
tered; and
(B) the Secretary has reason to believe may
carry, may have carried, or may have been af-
fected with or exposed to any pest or disease of
livestock at the time of movement or that is oth-
erwise in violation of this subtitle;
(2) any animal or progeny of any animal, arti-
cle, or means of conveyance that is moving or is being
handled, or has moved or has been handled, in inter-
state commerce in violation of this subtitle;
(3) any animal or progeny of any animal, arti-
cle, or means of conveyance that has been imported,
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and is moving or is being handled or has moved or
has been handled, in violation of this subtitle; or
(4) any animal or progeny of any animal, arti-
cle, or means of conveyance that the Secretary finds
is not being maintained, or has not been maintained,
in accordance with any post-importation quarantine,
post-importation condition, post-movement quar-
antine, or post-movement condition in accordance
with this subtitle.
(b) EXTRAORDINARY EMERGENCIES.—
(1) IN GENERAL.—Subject to paragraph (2), if
the Secretary determines that an extraordinary emer-
gency exists because of the presence in the United
States of a pest or disease of livestock and that the
presence of the pest or disease threatens the livestock
of the United States, the Secretary may—
(A) hold, seize, treat, apply other remedial
actions 
to, 
destroy 
(including 
preventative
slaughter), or otherwise dispose of, any animal,
article, facility, or means of conveyance if the
Secretary determines the action is necessary to
prevent the dissemination of the pest or disease;
and
(B) prohibit or restrict the movement or use
within a State, or any portion of a State of any
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animal or article, means of conveyance, or facil-
ity if the Secretary determines that the prohibi-
tion or restriction is necessary to prevent the dis-
semination of the pest or disease.
(2) STATE ACTION.—
(A) IN GENERAL.—The Secretary may take
action in a State under this subsection only on
finding that measures being taken by the State
are inadequate to control or eradicate the pest or
disease, after review and consultation with—
‘‘(i) the Governor or an appropriate
animal health official of the State; or
‘‘(ii) in the case of any animal, article,
facility, or means of conveyance under the
jurisdiction of an Indian tribe, the head of
the Indian tribe.
(B) NOTICE.—Subject to subparagraph (C),
before any action is taken in a State under sub-
paragraph (A), the Secretary shall—
(i) notify the Governor, an appropriate
animal health official of the State, or head
of the Indian tribe of the proposed action;
(ii) issue a public announcement of the
proposed action; and
(iii) publish in the Federal Register—
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(I) the findings of the Secretary;
(II) a description of the proposed
action; and
(III) a statement of the reasons
for the proposed action.
(C) NOTICE AFTER ACTION.—If it is not
practicable to publish in the Federal Register the
information 
required 
under 
subparagraph
(B)(iii) before taking action under subparagraph
(A), the Secretary shall publish the information
as soon as practicable, but not later than 10
business days, after commencement of the action.
(c) QUARANTINE, DISPOSAL, OR OTHER REMEDIAL
ACTION.—
(1) IN
GENERAL.—The Secretary, in writing,
may order the owner of any animal, article, facility,
or means of conveyance referred to in subsection (a)
or (b) to maintain in quarantine, dispose of, or take
other remedial action with respect to the animal, arti-
cle, facility, or means of conveyance, in a manner de-
termined by the Secretary.
(2) FAILURE TO COMPLY WITH ORDERS.—If the
owner fails to comply with the order of the Secretary,
the Secretary may—
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(A) seize, quarantine, dispose of, or take
other remedial action with respect to the animal,
article, facility, or means of conveyance under
subsection (a) or (b); and
(B) recover from the owner the costs of any
care, handling, disposal, or other remedial action
incurred by the Secretary in connection with the
seizure, quarantine, disposal, or other remedial
action.
(d) COMPENSATION.—
(1) IN GENERAL.—Except as provided in para-
graph (3), the Secretary shall compensate the owner
of any animal, article, facility, or means of convey-
ance that the Secretary requires to be destroyed under
this section.
(2) AMOUNT.—
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the compensation shall be
based on the fair market value, as determined by
the Secretary, of the destroyed animal, article,
facility, or means of conveyance.
(B) LIMITATION.—Compensation paid any
owner under this subsection shall not exceed the
difference between—
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(i) the fair market value of the de-
stroyed animal, article, facility, or means of
conveyance; and
(ii) any compensation received by the
owner from a State or other source for the
destroyed animal, article, facility, or means
of conveyance.
(C) REVIEWABILITY OF DETERMINATION.—
The determination by the Secretary of the
amount to be paid under this subsection shall be
final and not subject to judicial review.
(3) EXCEPTIONS.—No payment shall be made by
the Secretary under this subsection for—
(A) any animal, article, facility, or means
of conveyance that has been moved or handled by
the owner in violation of an agreement for the
control and eradication of diseases or pests or in
violation of this subtitle;
(B) any progeny of any animal or article,
which animal or article has been moved or han-
dled by the owner of the animal or article in vio-
lation of this subtitle;
(C) any animal, article, or means of con-
veyance that is refused entry under this subtitle;
or
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(D) any animal, article, facility, or means
of conveyance that becomes or has become af-
fected with or exposed to any pest or disease of
livestock because of a violation of an agreement
for the control and eradication of diseases or
pests or a violation of this subtitle by the owner.
SEC. 1028. INSPECTIONS, SEIZURES, AND WARRANTS.
(a) GUIDELINES.—The activities authorized by this
section shall be carried out consistent with guidelines ap-
proved by the Attorney General.
(b) WARRANTLESS INSPECTIONS.—The Secretary may
stop and inspect, without a warrant, any person or means
of conveyance moving—
(1) into the United States, to determine whether
the person or means of conveyance is carrying any
animal or article regulated under this subtitle;
(2) in interstate commerce, on probable cause to
believe that the person or means of conveyance is car-
rying any animal or article regulated under this sub-
title; or
(3) in intrastate commerce from any State, or
any portion of a State, quarantined under section
1027(b), on probable cause to believe that the person
or means of conveyance is carrying any animal or
article quarantined under section 1027(b).
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(c) INSPECTIONS WITH WARRANTS.—
(1) IN
GENERAL.—The Secretary may enter,
with a warrant, any premises in the United States
for the purpose of making inspections and seizures
under this subtitle.
(2) APPLICATION
AND
ISSUANCE
OF
WAR-
RANTS.—
(A) IN GENERAL.—On proper oath or affir-
mation showing probable cause to believe that
there is on certain premises any animal, article,
facility, or means of conveyance regulated under
this subtitle, a United States judge, a judge of a
court of record in the United States, or a United
States magistrate judge may issue a warrant for
the entry on premises within the jurisdiction of
the judge or magistrate to make any inspection
or seizure under this subtitle.
(B) EXECUTION.—The warrant may be ap-
plied for and executed by the Secretary or any
United States marshal.
SEC. 1029. DETECTION, CONTROL, AND ERADICATION OF
DISEASES AND PESTS.
(a) IN GENERAL.—The Secretary may carry out oper-
ations and measures to detect, control, or eradicate any pest
or disease of livestock (including the drawing of blood and
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diagnostic testing of animals), including animals at a
slaughterhouse, stockyard, or other point of concentration.
(b) COMPENSATION.—The Secretary may pay a claim
arising out of the destruction of any animal, article, or
means of conveyance consistent with the purposes of this
subtitle.
SEC. 1030. VETERINARY ACCREDITATION PROGRAM.
(a) IN GENERAL.—The Secretary may establish a vet-
erinary accreditation program that is consistent with this
subtitle, including the establishment of standards of conduct
for accredited veterinarians.
(b) CONSULTATION.—The Secretary shall consult with
State animal health officials regarding the establishment of
the veterinary accreditation program.
SEC. 1031. COOPERATION.
(a) IN GENERAL.—To carry out this subtitle, the Sec-
retary may cooperate with other Federal agencies, States
or political subdivisions of States, national governments of
foreign countries, local governments of foreign countries, do-
mestic or international organizations, domestic or inter-
national associations, Indian tribes, and other persons.
(b) RESPONSIBILITY.—The person or other entity co-
operating with the Secretary shall be responsible for the au-
thority necessary to carry out operations or measures—
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(1) on all land and property within a foreign
country or State, or under the jurisdiction of an In-
dian tribe, other than on land and property owned or
controlled by the United States; and
(2) using other facilities and means, as deter-
mined by the Secretary.
(c) SCREWWORMS.—
(1) IN GENERAL.—The Secretary may, independ-
ently or in cooperation with national governments of
foreign countries or international organizations or as-
sociations, produce and sell sterile screwworms to any
national government of a foreign country or inter-
national organization or association, if the Secretary
determines that the livestock industry and related in-
dustries of the United States will not be adversely af-
fected by the production and sale.
(2) PROCEEDS.—
(A) 
INDEPENDENT
PRODUCTION
AND
SALE.—If the Secretary independently produces
and sells sterile screwworms under paragraph
(1), the proceeds of the sale shall be—
(i) deposited into the Treasury of the
United States; and
(ii) credited to the account from which
the operating expenses of the facility pro-
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ducing the sterile screwworms have been
paid.
(B) 
COOPERATIVE
PRODUCTION
AND
SALE.—
(i) IN GENERAL.—If the Secretary co-
operates 
to 
produce 
and 
sell 
sterile
screwworms under paragraph (1), the pro-
ceeds of the sale shall be divided between the
United States and the cooperating national
government or international organization
or association in a manner determined by
the Secretary.
(ii) ACCOUNT.—The United States por-
tion of the proceeds shall be—
(I) deposited into the Treasury of
the United States; and
(II) credited to the account from
which the operating expenses of the fa-
cility producing the sterile screwworms
have been paid.
(d) COOPERATION IN PROGRAM ADMINISTRATION.—
The Secretary may cooperate with State authorities, Indian
tribe authorities, or other persons in the administration of
regulations for the improvement of livestock and livestock
products.
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(e) CONSULTATION WITH OTHER FEDERAL AGEN-
CIES.—
(1) IN GENERAL.—The Secretary shall consult
with the head of a Federal agency with respect to any
activity that is under the jurisdiction of the Federal
agency.
(2) LEAD
AGENCY.—The Department of Agri-
culture shall be the lead agency with respect to issues
related to pests and diseases of livestock.
SEC. 1032. REIMBURSABLE AGREEMENTS.
(a) AUTHORITY TO ENTER INTO AGREEMENTS.—The
Secretary may enter into reimbursable fee agreements with
persons for preclearance of animals or articles at locations
outside the United States for movement into the United
States.
(b) FUNDS COLLECTED FOR PRECLEARANCE.—Funds
collected for preclearance activities shall—
(1) be credited to accounts that may be estab-
lished by the Secretary for carrying out this section;
and
(2) remain available until expended for the
preclearance activities, without fiscal year limitation.
(c) PAYMENT OF EMPLOYEES.—
(1) IN
GENERAL.—Notwithstanding any other
law, the Secretary may pay an officer or employee of
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the Department of Agriculture performing services
under this subtitle relating to imports into and ex-
ports from the United States for all overtime, night,
or holiday work performed by the officer or employee
at a rate of pay determined by the Secretary.
(2) REIMBURSEMENT.—
(A) IN GENERAL.—The Secretary may re-
quire a person for whom the services are per-
formed to reimburse the Secretary for any ex-
penses paid by the Secretary for the services
under this subsection.
(B) USE
OF
FUNDS.—All funds collected
under this subsection shall—
(i) be credited to the account that in-
curs the costs; and
(ii) remain available until expended,
without fiscal year limitation.
(d) LATE PAYMENT PENALTIES.—
(1) COLLECTION.—On failure by a person to re-
imburse the Secretary in accordance with this section,
the Secretary may assess a late payment penalty
against the person, including interest on overdue
funds, as required by section 3717 of title 31, United
States Code.
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(2) USE OF FUNDS.—Any late payment penalty
and any accrued interest shall—
(A) be credited to the account that incurs
the costs; and
(B) remain available until expended, with-
out fiscal year limitation.
SEC. 1033. ADMINISTRATION AND CLAIMS.
(a) ADMINISTRATION.—To carry out this subtitle, the
Secretary may—
(1) acquire and maintain real or personal prop-
erty;
(2) employ a person;
(3) make a grant; and
(4) notwithstanding chapter 63 of title 31,
United States Code, enter into a contract, cooperative
agreement, memorandum of understanding, or other
agreement.
(b) TORT CLAIMS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may pay a tort claim, in the
manner authorized by the first paragraph of section
2672 of title 28, United States Code, if the claim
arises outside the United States in connection with
an activity authorized under this subtitle.
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(2) REQUIREMENTS.—A claim may not be al-
lowed under this subsection unless the claim is pre-
sented in writing to the Secretary not later than 2
years after the date on which the claim arises.
SEC. 1034. PENALTIES.
(a) CRIMINAL PENALTIES.—Any person that know-
ingly violates this subtitle, or that knowingly forges, coun-
terfeits, or, without authority from the Secretary, uses, al-
ters, defaces, or destroys any certificate, permit, or other
document provided under this subtitle shall be guilty of a
misdemeanor, and, on conviction, shall be fined in accord-
ance with title 18, United States Code, imprisoned not more
than 1 year, or both.
(b) CIVIL PENALTIES.—
(1) IN GENERAL.—Any person that violates this
subtitle, or that forges, counterfeits, or, without au-
thority from the Secretary, uses, alters, defaces, or de-
stroys any certificate, permit, or other document pro-
vided under this subtitle may, after notice and oppor-
tunity for a hearing on the record, be assessed a civil
penalty by the Secretary that does not exceed the
greater of—
(A)(i) $50,000 in the case of any indi-
vidual, except that the civil penalty may not ex-
ceed $1,000 in the case of an initial violation of
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this subtitle by an individual moving regulated
articles not for monetary gain;
(ii) $250,000 in the case of any other per-
son for each violation; and
(iii) $500,000 for all violations adjudicated
in a single proceeding; or
(B) twice the gross gain or gross loss for
any violation or forgery, counterfeiting, or unau-
thorized use, alteration, defacing or destruction
of a certificate, permit, or other document pro-
vided under this subtitle that results in the per-
son’s deriving pecuniary gain or causing pecu-
niary loss to another person.
(2) FACTORS IN DETERMINING CIVIL PENALTY.—
In determining the amount of a civil penalty, the
Secretary shall take into account the nature, cir-
cumstance, extent, and gravity of the violation or vio-
lations and the Secretary may consider, with respect
to the violator—
(A) the ability to pay;
(B) the effect on ability to continue to do
business;
(C) any history of prior violations;
(D) the degree of culpability; and
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(E) such other factors as the Secretary con-
siders to be appropriate.
(3) SETTLEMENT
OF
CIVIL
PENALTIES.—The
Secretary may compromise, modify, or remit, with or
without conditions, any civil penalty that may be as-
sessed under this subsection.
(4) FINALITY OF ORDERS.—
(A) FINAL ORDER.—The order of the Sec-
retary assessing a civil penalty shall be treated
as a final order reviewable under chapter 158 of
title 28, United States Code.
(B) REVIEW.—The validity of the order of
the Secretary may not be reviewed in an action
to collect the civil penalty.
(C) INTEREST.—Any civil penalty not paid
in full when due under an order assessing the
civil penalty shall thereafter accrue interest until
paid at the rate of interest applicable to civil
judgments of the courts of the United States.
(c) SUSPENSION
OR REVOCATION
OF ACCREDITA-
TION.—
(1) IN GENERAL.—The Secretary may, after no-
tice and opportunity for a hearing on the record, sus-
pend or revoke the accreditation of any veterinarian
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accredited under this subtitle that violates this sub-
title.
(2) FINAL ORDER.—The order of the Secretary
suspending or revoking accreditation shall be treated
as a final order reviewable under chapter 158 of title
28, United States Code.
(3) SUMMARY SUSPENSION.—
(A) IN GENERAL.—Notwithstanding para-
graph (1), the Secretary may summarily sus-
pend the accreditation of a veterinarian who the
Secretary has reason to believe has violated this
subtitle.
(B) HEARINGS.—The Secretary shall pro-
vide the accredited veterinarian with a subse-
quent notice and an opportunity for a prompt
post-suspension hearing on the record.
(d) LIABILITY FOR ACTS OF AGENTS.—In the con-
struction and enforcement of this subtitle, the act, omission,
or failure of any officer, agent, or person acting for or em-
ployed by any other person within the scope of the employ-
ment or office of the officer, agent, or person, shall be
deemed also to be the act, omission, or failure of the other
person.
(e) GUIDELINES
FOR CIVIL PENALTIES.—The Sec-
retary shall coordinate with the Attorney General to estab-
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lish guidelines to determine under what circumstances the
Secretary may issue a civil penalty or suitable notice of
warning in lieu of prosecution by the Attorney General of
a violation of this subtitle.
SEC. 1035. ENFORCEMENT.
(a) COLLECTION OF INFORMATION.—
(1) IN
GENERAL.—The Secretary may gather
and compile information and conduct any inspection
or investigation that the Secretary considers to be
necessary for the administration or enforcement of
this subtitle.
(2) SUBPOENAS.—
(A) IN GENERAL.—The Secretary shall have
power to issue a subpoena to compel the attend-
ance and testimony of any witness and the pro-
duction of any documentary evidence relating to
the administration or enforcement of this subtitle
or any matter under investigation in connection
with this subtitle.
(B) LOCATION
OF
PRODUCTION.—The at-
tendance of any witness and production of docu-
mentary evidence relevant to the inquiry may be
required from any place in the United States.
(C) ENFORCEMENT.—
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(i) IN
GENERAL.—In case of disobe-
dience to a subpoena by any person, the
Secretary may request the Attorney General
to invoke the aid of any court of the United
States within the jurisdiction in which the
investigation is conducted, or where the per-
son resides, is found, transacts business, is
licensed to do business, or is incorporated,
to require the attendance and testimony of
any witness and the production of documen-
tary evidence.
(ii) NONCOMPLIANCE.—In case of a re-
fusal to obey a subpoena issued to any per-
son, a court may order the person to appear
before the Secretary and give evidence con-
cerning the matter in question or to produce
documentary evidence.
(iii) CONTEMPT.—Any failure to obey
the order of the court may be punished by
the court as contempt of the court.
(D) COMPENSATION.—
(i) WITNESSES.—A witness summoned
by the Secretary under this subtitle shall be
paid the same fees and mileage that are
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paid to a witness in a court of the United
States.
(ii) DEPOSITIONS.—A witness whose
deposition is taken, and the person taking
the deposition, shall be entitled to the same
fees that are paid for similar services in a
court of the United States.
(E) PROCEDURES.—
(i) PUBLICATION.—The Secretary shall
publish procedures for the issuance of sub-
poenas under this section.
(ii) REVIEW.—The procedures shall in-
clude a requirement that subpoenas be re-
viewed for legal sufficiency and, to be effec-
tive, be signed by the Secretary.
(iii) DELEGATION.—If the authority to
sign a subpoena is delegated to an agency
other than the Office of Administrative Law
Judges, the agency receiving the delegation
shall seek review of the subpoena for legal
sufficiency outside that agency.
(b) AUTHORITY OF ATTORNEY GENERAL.—The Attor-
ney General may—
(1) prosecute, in the name of the United States,
all criminal violations of this subtitle that are re-
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ferred to the Attorney General by the Secretary or are
brought to the notice of the Attorney General by any
person;
(2) bring an action to enjoin the violation of or
to compel compliance with this subtitle, or to enjoin
any interference by any person with the Secretary in
carrying out this subtitle, in any case in which the
Secretary has reason to believe that the person has
violated, or is about to violate this subtitle or has
interfered, or is about to interfere, with the actions of
the Secretary; or
(3) bring an action for the recovery of any un-
paid civil penalty, funds under a reimbursable agree-
ment, late payment penalty, or interest assessed
under this subtitle.
(c) COURT JURISDICTION.—
(1) IN
GENERAL.—The United States district
courts, the District Court of Guam, the District Court
of the Northern Mariana Islands, the District Court
of the Virgin Islands, the highest court of American
Samoa, and the United States courts of the other ter-
ritories and possessions are vested with jurisdiction
in all cases arising under this subtitle.
(2) VENUE.—Any action arising under this sub-
title may be brought, and process may be served, in
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the judicial district where a violation or interference
occurred or is about to occur, or where the person
charged with the violation, interference, impending
violation, impending interference, or failure to pay
resides, is found, transacts business, is licensed to do
business, or is incorporated.
(3) EXCEPTION.—Paragraphs (1) and (2) do not
apply to subsections (b) and (c) of section 1034.
SEC. 1036. REGULATIONS AND ORDERS.
The Secretary may promulgate such regulations, and
issue such orders, as the Secretary determines necessary to
carry out this subtitle.
SEC. 1037. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
title.
(b) TRANSFER OF FUNDS.—
(1) IN GENERAL.—In connection with an emer-
gency under which a pest or disease of livestock
threatens any segment of agricultural production in
the United States, the Secretary may transfer from
other appropriations or funds available to the agen-
cies or corporations of the Department of Agriculture
such funds as the Secretary determines are necessary
for the arrest, control, eradication, or prevention of
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the spread of the pest or disease of livestock and for
related expenses.
(2) AVAILABILITY.—Any funds transferred under
this subsection shall remain available until expended,
without fiscal year limitation.
(c) USE OF FUNDS.—In carrying out this subtitle, the
Secretary may use funds made available to carry out this
subtitle for—
(1) printing and binding, without regard to sec-
tion 501 of title 44, United States Code;
(2) the employment of civilian nationals in for-
eign countries; and
(3) the construction and operation of research
laboratories, quarantine stations, and other buildings
and facilities for special purposes.
SEC. 1038. REPEALS AND CONFORMING AMENDMENTS.
(a) REPEALS.—The following provisions of law are re-
pealed:
(1) Public Law 97–46 (7 U.S.C. 147b).
(2) Section 101(b) of the Act of September 21,
1944 (7 U.S.C. 429).
(3) The Act of August 28, 1950 (7 U.S.C. 2260).
(4) Section 919 of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 U.S.C. 2260a).
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(5) Section 306 of the Tariff Act of 1930 (19
U.S.C. 1306).
(6) Sections 6 through 8 and 10 of the Act of Au-
gust 30, 1890 (21 U.S.C. 102 through 105).
(7) The Act of February 2, 1903 (21 U.S.C. 111,
120 through 122).
(8) Sections 2 through 9, 11, and 13 of the Act
of May 29, 1884 (21 U.S.C. 112, 113, 114, 114a,
114a–1, 115 through 120, 130).
(9) The first section and sections 2, 3, and 5 of
the Act of February 28, 1947 (21 U.S.C. 114b, 114c,
114d, 114d–1).
(10) The Act of June 16, 1948 (21 U.S.C. 114e,
114f).
(11) Public Law 87–209 (21 U.S.C. 114g, 114h).
(12) Section 2506 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (21 U.S.C. 114i).
(13) The third and fourth provisos of the fourth
paragraph under the heading ‘‘BUREAU OF ANIMAL
INDUSTRY’’ of the Act of May 31, 1920 (21 U.S.C.
116).
(14) The first section and sections 2, 3, 4, and
6 of the Act of March 3, 1905 (21 U.S.C. 123 through
127).
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(15) The first proviso under the heading ‘‘GEN-
ERAL
EXPENSES, BUREAU
OF ANIMAL INDUSTRY’’
under the heading ‘‘BUREAU OF ANIMAL INDUS-
TRY’’ of the Act of June 30, 1914 (21 U.S.C. 128).
(16) The fourth proviso under the heading ‘‘SAL-
ARIES AND EXPENSES’’ under the heading ‘‘ANIMAL
AND PLANT HEALTH INSPECTION SERVICE’’ of title I
of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appro-
priations Act, 2001 (21 U.S.C. 129).
(17) The third paragraph under the heading
‘‘MISCELLANEOUS’’ of the Act of May 26, 1910 (21
U.S.C. 131).
(18) The first section and sections 2 through 6
and 11 through 13 of Public Law 87–518 (21 U.S.C.
134 through 134h).
(19) Public Law 91–239 (21 U.S.C. 135 through
135b).
(20) Sections 12 through 14 of the Federal Meat
Inspection Act (21 U.S.C. 612 through 614).
(21) Chapter 39 of title 46, United States Code.
(b) CONFORMING AMENDMENTS.—
(1) Section 414(b) of the Plant Protection Act (7
U.S.C. 7714(b)) is amended—